Document:

EXHIBIT 10.17

                               AGREEMENT OF LEASE

                                     Between

                                   SEMEX, INC.

                                       and

                              PENNWALT CORPORATION

<PAGE>
                               AGREEMENT OF LEASE
                                     Between
                                   SEMEX, INC.
                                       and
                              PENNWALT CORPORATION

                                Table of Contents
                                -----------------

                                                                       Page
                                                                       ----
1.     PREMISES . . . . . . . . . . . . . . . . . . . . . . . . . . . .   1
2.     TERM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   1
       (a)     Initial Term . . . . . . . . . . . . . . . . . . . . . .   1
       (b)     Extension. . . . . . . . . . . . . . . . . . . . . . . .   1
       (c)     Option to Terminate. . . . . . . . . . . . . . . . . . .   2
       (d)     Entry by Tenant Prior to Term. . . . . . . . . . . . . .   2
3.     RENOVATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . .   2
       (a)     Renovation by Landlord . . . . . . . . . . . . . . . . .   2
       (b)     Renovation by Tenant . . . . . . . . . . . . . . . . . .   3
       (c)     Elevator Installation. . . . . . . . . . . . . . . . . .   3
4.     USE OF PREMISES. . . . . . . . . . . . . . . . . . . . . . . . .   4
5.     RENT AND OTHER PAYMENTS BY TENANT. . . . . . . . . . . . . . . .   4
       (a)     Minimum Rent, Initial Term . . . . . . . . . . . . . . .   4
       (b)     Extension Term . . . . . . . . . . . . . . . . . . . . .   4
       (c)     Capital Improvements . . . . . . . . . . . . . . . . . .   5
       (d)     Termination Charge . . . . . . . . . . . . . . . . . . .   6
6.     ADDITIONAL RENT. . . . . . . . . . . . . . . . . . . . . . . . .   7
7.     INSURANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . .  10
       (a)     Fire and Other Insurance . . . . . . . . . . . . . . . .  10
       (b)     Liability. . . . . . . . . . . . . . . . . . . . . . . .  10
       (c)     Evidence of Payment. . . . . . . . . . . . . . . . . . .  11
       (d)     Waiver of Subrogation; Rights under
               Insurance Policies . . . . . . . . . . . . . . . . . . .  11
       (e)     Blanket Policies . . . . . . . . . . . . . . . . . . . .  11
       (f)     Increase of Premium. . . . . . . . . . . . . . . . . . .  12
       (g)     Self Insurance . . . . . . . . . . . . . . . . . . . . .  12
8.     TENANT'S FIXTURES. . . . . . . . . . . . . . . . . . . . . . . .  12
9.     SIGNS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  12
10.    REPAIRS AND MAINTENANCE  . . . . . . . . . . . . . . . . . . . .  13
11.    ALTERATIONS AND ADDITIONS BY TENANT  . . . . . . . . . . . . . .  15
12.    LANDLORD'S RIGHT OF ENTRY  . . . . . . . . . . . . . . . . . . .  16
13.    NET LEASE  . . . . . . . . . . . . . . . . . . . . . . . . . . .  17
14.    UTILITY CHARGES  . . . . . . . . . . . . . . . . . . . . . . . .  17
15.    GOVERNMENTAL REGULATIONS . . . . . . . . . . . . . . . . . . . .  17
16.    MECHANIC'S LIENS . . . . . . . . . . . . . . . . . . . . . . . .  18
       (a)     No Liens . . . . . . . . . . . . . . . . . . . . . . . .  18
       (b)     Discharge of Liens . . . . . . . . . . . . . . . . . . .  18
       (c)     Waiver of Liens. . . . . . . . . . . . . . . . . . . . .  18
       (d)     No Consent of Landlord Intended. . . . . . . . . . . . .  18

                                      (i)
<PAGE>
17.     DAMAGE BY FIRE OR OTHER CASUALTY. . . . . . . . . . . . . . . .  19
18.     INDEMNIFICATION . . . . . . . . . . . . . . . . . . . . . . . .  20
19.     CONDEMNATION. . . . . . . . . . . . . . . . . . . . . . . . . .  21
        (a)     Condemnation of Entire Premises . . . . . . . . . . . .  21
        (b)     Partial Condemnation. . . . . . . . . . . . . . . . . .  21
        (c)     Termination . . . . . . . . . . . . . . . . . . . . . .  22
        (d)     Award . . . . . . . . . . . . . . . . . . . . . . . . .  22
20.     NON-ABATEMENT OF RENT . . . . . . . . . . . . . . . . . . . . .  22
21.     QUIET ENJOYMENT . . . . . . . . . . . . . . . . . . . . . . . .  22
22.     ASSIGNMENT AND SUBLETTING . . . . . . . . . . . . . . . . . . .  22
23.     NONDISTURBANCE. . . . . . . . . . . . . . . . . . . . . . . . .  23
24.     MEMORANDUM OF LEASE; TENANT'S CERTIFICATE . . . . . . . . . . .  23
25.     CURING TENANTS' DEFAULTS. . . . . . . . . . . . . . . . . . . .  24
26.     NOTICES . . . . . . . . . . . . . . . . . . . . . . . . . . . .  24
27.     SURRENDER . . . . . . . . . . . . . . . . . . . . . . . . . . .  25
28.     DEFAULTS -  REMEDIES. . . . . . . . . . . . . . . . . . . . . .  25
29.     GRACE PERIOD. . . . . . . . . . . . . . . . . . . . . . . . . .  27
30.     BROKERS . . . . . . . . . . . . . . . . . . . . . . . . . . . .  27
31.     ADVERSE POSSESSION. . . . . . . . . . . . . . . . . . . . . . .  27
32.     CONDITION OF TITLE AND OF PREMISES. . . . . . . . . . . . . . .  28
33.     DEFINITIONS AND CONSTRUCTION. . . . . . . . . . . . . . . . . .  28
        (a)     Definition of "Landlord". . . . . . . . . . . . . . . .  28
        (b)     Definition of "Tenant". . . . . . . . . . . . . . . . .  28
        (c)     Definition of "Mortgage" and
               "Mortgagee". . . . . . . . . . . . . . . . . . . . . . .  28
        (d)     Definition of "Mechanic's Lien" . . . . . . . . . . . .  29
        (e)     Definition of "Person". . . . . . . . . . . . . . . . .  29
        (f)     Definition of "Proportionate Share" . . . . . . . . . .  29
        (g)     Consents. . . . . . . . . . . . . . . . . . . . . . . .  29
34.     ENTIRE AGREEMENT. . . . . . . . . . . . . . . . . . . . . . . .  29
35.     WORKLETTER. . . . . . . . . . . . . . . . . . . . . . . . . . .  30
36.     CAPTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . .  30
37.     COVENANT REGARDING TAX EXEMPT FINANCING . . . . . . . . . . . .  30

                                    EXHIBITS
                                    --------

EXHIBIT  A  -  The  Premises
EXHIBIT  B  -  The  Tract
EXHIBIT  C  -  Landlord's  Work
EXHIBIT  D  -  Subordination,  Non-Disturbance  and
               Attornment  Agreement
EXHIBIT  E  -  Workletter

                                      (ii)
<PAGE>
          THIS  AGREEMENT  OF  LEASE  (this "Lease") is made this 20 day of May,
                                                                  --
1986,  by  and  between  SEMEX, INC., a wholly owned subsidiary of SETON COMPANY
(hereinafter  called  "Landlord")  and  PENNWALT CORPORATION (hereinafter called
"Tenant").

Intending  to  be  legally  bound,  the  parties  hereto  agree  as  follows:

          1.     PREMISES.  Landlord  leases  a  building  (hereinafter  called
                 --------
"Building  B"  a  tract  of  ground  located at 950 Forge Avenue, Norristown, PA
19403,  which  is  more  fully described by metes and bounds on Exhibit B hereto
(hereinafter  called  the  "Tract").  Landlord  does  hereby demise and let unto
Tenant  and  Tenant  does  hereby lease and take from Landlord, for the term and
upon  the terms, covenants, conditions and provisions set forth herein, all that
certain  portion  of Building B as indicated on Exhibit A hereto, which contains
approximately  41,274  square  feet,  and which shall be renovated in accordance
with  Paragraph  3 hereof (hereinafter called the "Premises"), and together with
the  right,  in  common  with  the  other  occupants  of  the  Tract, to use the
driveways,  sidewalks, loading and parking areas on the Tract.  Tenant shall not
use  more  than  its Proportionate Share (as hereinafter defined) of the parking
spaces available on the Tract.  Tenant acknowledges that Landlord is considering
subdividing  and/or  modifying the boundaries of the Tract to exclude Building A
and  Building  C  and/or  to  add  or  delete unimproved land.  Tenant agrees to
cooperate  with  Landlord  in  the  modification  of  the  Tract so long as such
modification  does  not  impair  Tenant's  beneficial use of the Premises or the
financial cost of this Lease.  In the event that the Tract is modified, Tenant's
Proportionate  Share  shall  be  appropriately  adjusted.

          2.   TERM.
               ----

               (a)     Initial  Term.  The  term of this Lease shall commence on
                       -------------
August 1, 1986 (herein the "Commencement Date") and, unless sooner terminated in
accordance  with  the terms hereof, the term of this Lease shall end without the
necessity  for notice from either party to the other on January 31, 1990 (herein
the  "Expiration  Date").

               (b)     Extension. Tenant shall have an option to extend the term
                       ---------
of  this Lease for an additional five years at a rent calculated as set forth in
Paragraph 5(b) below, upon giving Landlord written notice at least twelve months
prior  to  the  expiration of the initial term. Further extension of the term of
this  Lease  shall  be  by  mutual  consent  of  the  parties  in  writing.

<PAGE>
               (c)     Option  to  Terminate.  Tenant  shall  have the option to
                       ---------------------
terminate  this Lease at any time through the first thirty months of the initial
term, upon giving Landlord six months prior written notice no later than the end
of  the  twenty-fourth month of the initial term, such termination to occur only
in  the  event that the technical performance of the clean room is inadequate to
meet  Tenant's  requirements  in  the Piezo Film Venture. Upon such termination,
Tenant  will  pay  a  termination  charge  as set forth in Paragraph 5(d) below.

               (d)     Entry  by Tenant Prior to Term. Tenant and its authorized
                       ------------------------------
agents,  employees  and  contractors  shall at all reasonable times prior to the
Commencement  Date  of  this Lease have the right, at Tenant's own risk, expense
and responsibility, to enter the Premises for the purpose of taking measurements
and  installing  its  furnishings  and  equipment and commencing the renovations
contemplated by Paragraph 3(b), provided that in so doing it shall not interfere
with  or  delay  the  work  to  be performed hereunder by Landlord. Tenant shall
describe  in  writing  for  Landlord  prior  to installation all furnishings and
equipment  and  other  work  to  be  performed.

          3.   RENOVATIONS.
               -----------

               (a)     Renovation  by Landlord.  The Premises shall be renovated
                       -----------------------
by  Landlord  in accordance with Exhibit C, including bringing the clean room up
to a class 10,000 level (prior to Tenant's occupancy) as certified by a mutually
acceptable  testing firm.  Landlord shall have no responsibility for maintenance
of  the  clean  room  class  10,000 level subsequent to the certification by the
testing firm. Prior to Tenant's occupancy, Landlord shall repair and replace the
components  of  the clean room mechanical system and general HVAC systems as may
be  necessary  to  qualify those systems under the Approved Maintenance Contract
(as  defined  in  Paragraph  10(a)). Prior to Tenant's occupancy, Landlord shall
also  make  such  repairs  and  replacements to the other utility and mechanical
systems  within  the  Premises  which  are defective or inoperable as Tenant may
reasonably  request  as  a  condition  to  Tenant  assuming  the  maintenance
responsibilities  therefor  as provided in Paragraph 10(h). New filters shall be
installed in the HVAC systems at Landlord's expense prior to Tenant's occupancy.
Landlord  will  also  provide  the  existing lockers on the Premises, a demising
wall,  and  a  new hot water boiler system as more fully described on Exhibits C
and  E.  All  necessary  construction  as  required hereunder to be performed by
Landlord  shall  be  commenced  promptly and the Premises shall be substantially
completed,  ready  for occupancy and use by Tenant, on or before August 1, 1986;
provided,  however,  that  the  time  for substantial completion of the Premises
shall be extended for

                                       -2-
<PAGE>
additional  periods  of  time  equal  to the time lost by Landlord or Landlord's
contractors, subcontractors or suppliers due to strikes or other labor troubles,
governmental restrictions and limitations, scarcity, unavailability or delays in
obtaining  fuel, labor or materials, war or other national emergency, accidents,
floods,  defective  materials,  fire  damage  or  other  casualties,  weather
conditions,  or  any  cause  similar  or  dissimilar to the foregoing beyond the
reasonable  control  of  Landlord  or  Landlord's contractors, subcontractors or
suppliers, and in such event the Commencment Date shall be extended for a period
equal  to the period of such delay. All construction shall be done in a good and
workmanlike  manner  and  shall  comply  at  the  time  of  completion  with all
applicable  laws,  ordinances,  regulations  and  orders  of the federal, state,
county  or  other  governmental  authorities  having  jurisdiction  thereof.

               (b)     Renovation  by  Tenant. Tenant shall renovate and improve
                       ----------------------
the Premises in accordance with its requirements, using that portion required of
$1,0537,000  made  available  to  it by Seton Company for the purpose of capital
improvements  and  in  compliance  with  Paragraph  11  herein.  Such  proposed
improvements  shall  be submitted by Tenant to Landlord, and shall be subject to
Landlord's  approval  prior  to  any work commencing. Seton Company shall not be
obligated  to  provide  any funds to Tenant for capital improvements the cost of
which  is  incurred after January 31, 1988. Tenant anticipates spending not less
than  $753,000  of  such  funds  by  November 30, 1986, and covenants to provide
Landlord  with  written  notice on or before September 1, 1986 as to the minimum
amount  which  Tenant  will  spend  by  November  30,  1986.

               (c)     Elevator Installation. Tenant shall have the right at any
                       ---------------------
time,  at  its  sole cost and expense, to install an elevator in the Premises in
the  existing  elevator  shaft.  Such  installation  shall  be  subject  to  the
requirements  of  Paragraph  11  hereof,  provided that notwithstanding anything
contained  in  Paragraph  11,  the elevator shall become a permanent part of the
Premises  upon the termination of this Lease. Tenant shall be solely responsible
for  the maintenance, repair and licensing of the elevator, and shall return the
elevator to Landlord at the end of the term of this Lease in good working order.
Tenant shall be entitled to recover, as a credit (the "Elevator Credit") against
minimum  rent  under  Paragraph  5,  up  to  a maximum of $37,000 of the cost of
installing the elevator. The Elevator Credit shall be calculated by dividing the
lesser  of the cost of the elevator or $37,000 by the number of months remaining
in  the  term  of  this  Lease  (including  the  extension term) at the time the
elevator is operational, such amount to be credited against monthly installments
of  minimum  rent  commencing  on the first of the following month. The Elevator
Credit  shall  not  affect  the

                                       -3-
<PAGE>
calculation  of  any  rent  increase  payable under Paragraph 5(b), although the
Elevator  Credit  may  be applied against such increased rent. In the event that
Tenant  does  not  exercise  its  right  to  extend the term of this Lease under
Paragraph  2(b)  or if this Lease is terminated by Landlord because of a default
of  Tenant,  then  Tenant  shall  forfeit  any  remaining  Elevator  Credit.

         4.     USE  OF  PREMISES.  Tenant may use the  facilities for the Piezo
                -----------------
Film  Venture,  with  appurtenant offices and other facilities, or for any other
lawful  use provided that (a) Tenant shall give Landlord prior written notice of
any  change  in  use,  and  (b)  such  other  use  shall not be objectionable to
Landlord,  shall not violate any reasonable use covenants applying to the Tract,
and  shall  not  be  prohibited  by  Sections 103(b)(6)(O) and lO3(b)(18) of the
Internal  Revenue  Code  of  1954,  as  amended.

          5.     RENT  AND  OTHER  PAYMENTS  BY  TENANT.
                 --------------------------------------

               (a)     Minimum  Rent,  Initial  Term. Tenant shall pay a minimum
                       -----------------------------
annual  rent of Three Hundred Seventy-Eight Thousand Seven Hundred Sixty Dollars
($378,760.00)  without  notice  or  demand and without set-off, in equal monthly
installments  of  Thirty-One  Thousand  Five  Hundred  Sixty-Three  Dollars  and
Thirty-Three  Cents  ($31,563.33) on the first day of each calendar month during
the  term of this Lease. If the Commencement Date shall fall on a day other than
the first day of the calendar month, the rent shall be apportioned pro rata on a
per diem basis for the period between the Commencement Date and the first day of
the  following  calendar  month  and  such apportioned sum shall be paid on such
Commencement Date. Rent shall be paid in lawful currency of the United States of
America  to  Landlord at 849 Broadway, Newark, NJ 07104, or to such other person
and  such  other  place  as  Landlord  may  designate  in  writing.

               (b)     Extension  Term. If Tenant exercises its option to extend
                       ---------------
this  Lease as provided for in Paragraph 2(b) above, the minimum annual rent for
the  first  18  months  of  the  extension term shall be the same as the minimum
annual  rent  under Paragraph 5(a) above; but thereafter the minimum annual rent
shall  be  increased  as  provided below for the 19th through 39th months of the
extension  term  and  increased  again  for  the 40th through 60th months of the
extension  term.  Each increase in the minimum annual rent shall be equal to the
sum  of  (i)  the minimum annual rent payable prior to such increase (the "Prior
Minimum  Rent")  plus  (ii)  a  sum  equal to the product of fifty percent (50%)
multiplied  by  the  percentage  change  in  the  "Consumer  Price  Index"  (as
hereinafter  defined) as measured from the "Base Index" (as hereinafter defined)
to  the  "Comparison  Index"  (as  hereinafter defined), multiplied by the Prior
Minimum  Rent; provided,

                                       -4-
<PAGE>
however,  that in no event shall the annual minimum rent be reduced by the terms
and  conditions  of  this subparagraph; and further provided that the first rent
increase  only  hereunder  shall  not  be  less than 7.5% nor more than 15%. For
purposes  of  the  foregoing  calculation:

             (1)   "Consumer Price Index" shall be the CPI-W, Urban Wage Earners
          and  Clerical  Workers - Philadelphia;  (1967 = 100), published by the
          United  States Bureau of Labor Statistics or any successor index. This
          index  is published monthly. In the event that this index is no longer
          published,  the  parties  agree  to  substitute  a  comparable  index.

             (2)   "Base Index" shall be the Consumer Price Index for the second
          month preceding the month in which the Commencement Date occurs in the
          case of  the first minimum annual rent increase, or for the 16th month
          of  the  extension  term  in  the  case  of  the second such increase.

             (3)   "Comparison Index" shall be the Consumers Price Index for the
          second month preceding the first month in which the particular minimum
          annual  rent  increase  is  to  be  effective.

Landlord  shall provide Tenant with a calculation of the increase in the minimum
annual  rent  as  soon as reasonably possible. This statement will set forth (i)
the  total  cost  of living increase and the method of calculating the same, and
(ii)  the  portion of the cost of living increase due from Tenant, if any, since
the effective date of such increase. Until such statement is received by Tenant,
Tenant  shall  continue  to pay monthly rent based upon the prior minimum annual
rent.  Following the receipt of such statement, Tenant shall (a) promptly make a
retroactive  payment  to Landlord equal to the amount of the increase applicable
to  the months preceding the delivery of such statement which are subject to the
increase  and  (b)  thereafter pay Landlord, on the first day of each succeeding
month,  1/12th  of  said  increased  minimum  annual  rent.

               (c)     Capital  Improvements.  The funds made available by Seton
                        ---------------------
Company to Tenant for capital improvements to the Premises pursuant to Paragraph
3(b)  shall  bear interest thereon as the same are disbursed by Seton Company at
the  Interest Rate (as hereinafter defined). Interest on the outstanding balance
shall  be  payable  monthly  in  arrears  by  Tenant  to Seton Company with each
installment of rent. The entire principal amount of the funds disbursed together
with  all  accrued

                                       -5-
<PAGE>
and unpaid interest shall be payable on the last day of the initial term of this
Lease;  provided  that Tenant shall have the right to prepay in whole or in part
the  outstanding  principal  balance  without  penalty on the first of any month
commencing  February 1, 1988. For purposes of the foregoing, the "Interest Rate"
shall be the announced "prime rate" of First Pennsylvania Bank N.A. less one and
one-half  percent  (1.5%).  In  calculating  the  interest due in any month, the
Interest Rate shall be set as of the first of such month and applied against the
weighted  average  balance of funds disbursed and outstanding during such month.
Said  amount  shall be payable on the first of the following month. Tenant shall
include  with  each  payment a written verification of the Interest Rate for the
month  to  which the payment relates together with a calculation of the interest
due  and  owing.

               In  the  event Landlord sells the Premises prior to the repayment
in  full  of  the  funds  advanced  under  Paragraph 3(b) plus interest, (i) the
provisions of this Paragraph and Paragraph 3(b) shall be deleted from this Lease
and  reduced  to a simple loan agreement and note in form mutually acceptable to
Seton  Company  and Tenant so that the obligations of Seton Company and Pennwalt
Corporation  under  this  Paragraph  and  Paragraph  3(b),  including  without
limitation  the  balance of the term of the loan, shall continue as if such sale
had  not  occurred,  and  (ii)  Semex,  Inc.  shall not be obligated to make any
further  advances  under  Paragraph  3(b)  provided that if Seton Company's bond
financing  is  assumed by the purchaser of the Premises, such purchaser shall be
obligated  to  fund the balance, if any, of such monies under the same terms and
conditions  as  would have applied to Semex, Inc. if such sale had not occurred.

               (d)     Termination  Charge.  In  the event Tenant shall exercise
                       -------------------
its  option  to  terminate this Lease pursuant to Paragraph 2(c) above, it shall
pay Landlord a termination charge equal, to the sum of (i) the unpaid portion of
the  capital  improvements  funds provided by Landlord as set forth in Paragraph
3(b)  above,  and  (ii)  the  difference  between  the  minimum  annual rent for
thirty-three  months and the minimum annual rent paid through the effective date
of  termination. Tenant shall make the payments required under this subparagraph
in  a single payment to Landlord on the first day of the month in which the term
of  this Lease will expire by virtue of the exercise of such termination option.

                                      -6-
<PAGE>
          6.     ADDITIONAL  RENT.
                 ----------------

               (a)     Tenant  agrees  to  pay to Landlord as additional rent an
amount,  on  an  annual  basis, determined by multiplying Tenant's Proportionate
Share  (as  defined  in  Paragraph  33(f))  times the sum of Operating Costs and
Impositions  for  the Tract for each calendar year during the term of the Lease.
Except as hereinafter provided, such amount shall be payable annually within 30
days  after  receipt  by  Tenant of a statement therefor. For each calendar year
during  the  term  of this Lease, Landlord may provide to Tenant a projection of
Tenant's  Proportionate  Share for such year of Operating Costs and Impositions,
and  thereafter  Tenant  shall  pay  as additional rent with each installment of
minimum  rent,  1/12th  of  such  projected Tenant's Proportionate Share. In the
event  that such statement is given after January 1 of any calendar year, Tenant
shall  (a) continue to make payments based on any prior projection until the new
projection  is received, (b) when such new projection is received, promptly make
a  retroactive  payment  with  respect to prior months during such year, and (c)
thereafter  make  future  payments  on the basis of the new projection. Landlord
shall have the right at any time during a calendar year to adjust its projection
of  Operating  Costs and Impositions, and upon Tenant being notified of any such
new  projection,  Tenant  shall  similar  make  a  retroactive  payment, and all
subsequent  payments  of  additional  rent shall be based on the new projection.
Landlord  shall,  within  150 days (or as soon thereafter as possible) after the
close  of  each  calendar year, provide to Tenant a statement of Tenant's actual
Proportionate  Share of Operating Costs and Impositions. If the sum of estimated
payments previously made by Tenant are less than Tenant's Proportionate Share of
actual Operating Costs and Impositions, Tenant shall promptly pay the deficiency
to  Landlord.  However,  if  the sum of such estimated payments exceeds Tenant's
Proportionate  Share  of  actual  Operating Costs and Impositions, then Landlord
shall  credit  the  amount  of  such overpayment to the next rent due under this
Lease.  If  only  part  of  the calendar year shall fall within the term of this
Lease, the amount computed as additional rent with respect to such calendar year
shall be prorated. Tenant shall have the right, at its cost, and upon reasonable
notice,  to examine the books and records of Landlord relating to any cost to be
borne  by  Tenant  hereunder.

               (b)     The  defined  terms  used  in  this  Paragraph 6 have the
following meanings:

                    (1)  "Operating  Costs"  shall  mean  all  direct  costs  of
               operation and maintenance of the buildings and related facilities
               on  the  Tract (as

                                       -7-
<PAGE>
               determined  by  standard  accounting  practices)  that  are to be
               shared  by  Tenant  under  Paragraphs 7(a), 10(c) and 10(e). Such
               costs  shall include without limitation: water and sewer charges,
               including  assessments  and  service;  any  increase in insurance
               premiums  as  provided  in  Paragraph  7(a);  the cost of grounds
               maintenance  and  operation and repair; snow removal and lawn and
               general  grounds  upkeep  including  paving  maintenance  and
               replacement; landscaping maintenance and replacement; electricity
               for  outdoor  lighting;  repair,  maintenance  and replacement of
               grounds;  the  cost  of  any  capital  improvements  made for the
               purpose  of  reducing  operating  expenses,  which  cost shall be
               amortized  over  such  reasonable  period  as  Landlord  shall
               determine,  together  with interest on the unamortized balance at
               the  rate  equal  to  the announced "prime rate" being charged by
               First  Pennsylvania  Bank,  N.A., or such higher rate as may have
               been  paid  by  Landlord  on  funds  borrowed  for the purpose of
               constructing  such capital improvements (provided that the amount
               of  such  amortization  shall not exceed the savings on an annual
               basis).  Items  of  Operating  Costs  which  are  not exclusively
               incurred  with respect to the buildings on the Tract by reason of
               the  nature  of  the  items  or  otherwise,  shall  be  equitably
               allocated  by  Landlord  among  the  buildings to  which the same
               relate or for whose benefit the same have been incurred, and only
               the  portion  allocated  to  the  buildings on the Tract shall be
               included  in  calculating  Operating  Costs.  The term "Operating
               Costs"  shall not include utility service to be paid for directly
               by  Tenant  as  hereafter  provided,  depreciation, interest, net
               income,  franchise  or  capital  stock taxes payable by Landlord,
               executive  salaries,  real  estate  brokers'  commissions, or the
               costs  of services not uniformly available to all. tenants of the
               Tract.

                    (2) "Impositions" shall mean all levies, taxes, assessments,
               water  and  sewer  rents  and  charges, liens, license and permit
               fees, charges for public utilities and all other charges, imposts
               or  burdens  of  whatsoever  kind  and  nature,  whether  or  not
               particularized  by name, and whether general or special, ordinary
               or  extraordinary,  foreseen  or  unforeseen,  which  at any time
               during  the  term  of  this  Lease  may  be  created,  levied,

                                       -8-
<PAGE>
               assessed, conformed, adjudged, imposed or charged by any federal,
               state  or  municipal government or public authority, or under any
               law,  ordinance  or regulation thereof or of any public authority
               whatsoever,  including,  among  others, all special tax bills and
               all  special, general or other assessments, liens or charges made
               on  local  or  general  improvements or under any governmental or
               public power or authority whatsoever, upon or with respect to the
               Tract  and  the  buildings  or  any  improvements now constructed
               thereon  (but  excluding  any  Impositions on future additions or
               improvements  to  the  Tract  except  as  hereinafter  provided).

               (c)     Notwithstanding  the  foregoing, Tenant shall pay 100% of
all  Impositions  specifically  and separately assessed against the improvements
made  by  Tenant  under  Paragraph  3(b) or directly upon this Lease or the rent
payable hereunder or amounts payable by any subtenants or other occupants of the
Premises,  or  upon this transaction or any documents to which Tenant is a party
or  successor  in  interest, or against Landlord because of Landlord's estate or
interest  herein. In the event that the Premises are separately assessed for any
type  of  Imposition,  Tenant shall pay 100% of such Imposition and that type of
Imposition  shall  be  deleted  entirely  from  the  calculation  of  Tenant's
Proportionate  Share  of  Impositions  with  respect  to  the  entire  Tract.

               (d)     If  any  Imposition  shall  be created, levied, assessed,
adjudged,  imposed,  charged  or  become a lien with respect to a period of time
beginning  before  the  Commencement Date or ending after the expiration of this
Lease  (other  than  by  reason of breach of any of the terms hereof by Tenant),
then  Tenant  shall  be  required  to  pay  only  that part of its share of such
Imposition  which  is  proportionate  to  the  length of said period which falls
within the term of this Lease. If Landlord is permitted to pay (by the assessing
and  collecting  authorities  and  by  all  mortgagees)  any  Imposition  in
installments, only those installments due during the term of this Lease shall be
considered in the foregoing calculations. Nothing herein contained shall require
Tenant  to  pay any income or excess profits taxes assessed against Landlord, or
any  corporation  capital  stock  and  franchise  taxes  imposed  upon Landlord.

               (e)     Contest.  Tenant,  without  postponement  of payment, may
                       -------
bring  proceedings  to  contest  the  validity or amount of any Imposition or to
recover  payments  therefor,  provided  that  Tenant shall save Landlord and all
other tenants of the building

                                       -9-
<PAGE>
harmless  from  all  costs  and  expenses  in  connection with such proceedings.
Landlord  shall  cooperate  with  Tenant with respect to such proceedings to the
extent  reasonably  necessary,  but  all  costs,  fees  and expenses incurred in
connection  with  such  proceedings  shall be borne by Tenant. Tenant shall give
Landlord  written advance notice  of Tenant's intention to take any such action.

          7.   INSURANCE.
               ---------

               (a)     Fire  and  Other  Insurance.  Landlord shall maintain and
                       ---------------------------
keep  in  effect  throughout  the  term  of this Lease insurance against loss or
damage  to  all buildings and all other improvements now or hereafter located on
the  Tract  by  fire  and such other casualties as may be included within either
fire and extended coverage insurance or all-risk insurance in an amount equal to
the  full  insurable value thereof, and may maintain rent insurance, plate glass
insurance,  war  risk insurance (when available) and other such insurance as may
reasonably  be required from time to time by any mortgagee or as may be required
generally  by  mortgage  lending  institutions. Tenant shall pay to Landlord, as
additional  rent  hereunder,  upon demand, its Proportionate Share of any future
increase  in  the premiums for such insurance over the amounts payable as of the
Commencement  Date.  Tenant  shall  maintain  throughout  the term of this Lease
boiler  insurance  on the boiler serving the Premises in an amount equal to that
customarily  carried  on  similar  boilers in similar operations. Such insurance
shall  name  Landlord  as an additional insured and shall meet (and Tenant shall
comply  with) the requirements of the last four sentences of Paragraph 7(b). All
equipment  purchased by Tenant with funds provided under Paragraph 3(b) shall be
insured,  maintained  and operated, at Tenant's sole cost and expense, as may be
required  by  the  terms  of  Seton  Company's  bond  financing.

               (b)     Liability.  Tenant,  at  Tenant's  sole cost and expense,
                       ---------
shall  maintain  and  keep  in  effect  throughout  the  term  insurance against
liability for bodily injury (including death) or property damage in or about the
Premises,  the  common  areas of Building "B" and the common areas of the Tract,
under  a  policy  of  commercial  general  public liability insurance, with such
limits  for  each  occurrence,  in  the  aggregate  and  for personal injury and
property  damage  as  is  reasonable  and  is  customarily  carried  on  similar
operations.  The policies of commercial general public liability insurance shall
name  Landlord  as an additional insured. Each policy required by this Paragraph
7(b) shall provide that it shall not be cancellable without at least thirty (30)
days  prior  written  notice  to  Landlord  and  to  any  mortgagee  named in an

                                      -10-
<PAGE>
endorsement  thereto and shall be issued by a insurer licensed to do business in
the  state  where  the Premises are located. At least five (5) days prior to the
Commencement  Date  of  this  Lease,  Tenant  shall  provide  Landlord  with  a
certificate  evidencing  such  insurance and shall deliver a renewal certificate
to  Landlord  and at least thirty (30) days before any such policy expires. Each
such  policy  shall  provide that no such act or omission of Tenant shall affect
the  obligation  of  the  insurer  to pay the full amount of any loss sustained.

               (c)     Evidence  of  Payment.  If  Tenant  shall fail, refuse or
                       ---------------------
neglect to obtain or to maintain any insurance that it is required to provide or
to  furnish Landlord with satisfactory evidence of payment of the premium on any
such policy within the time required as set forth above, Landlord shall have the
right,  at  Landlord's  option, upon five (5) days notice to Tenant, to purchase
such  insurance  and  to  pay  the  premiums  thereon  or to pay the premiums on
insurance  which Tenant should have paid for. All such payments made by Landlord
shall  be  recoverable  by  Landlord  from  Tenant  on demand as additional rent
hereunder  together  with  interest  at the rate of ten percent (10%) per annum,
from  the  respective  dates  of  Landlord's  making  the  payments.

               (d)     Waiver  of  Subrogation; Rights under Insurance Policies.
                       --------------------------------------------------------
Each  of  the  parties  hereto  hereby  releases the other, to the extent of the
releasing party's insurance coverage, from any and all liability for any loss or
damage  covered  by  such  insurance which may be inflicted upon the property of
such  party  even  if such loss or damage shall be brought about by the fault or
negligence  of the other party, its agents or employees; provided, however, that
this  release  shall  be effective only with respect to loss or damage occurring
during  such  time as the appropriate policy of insurance shall contain a clause
to  the  effect  that  this release shall not affect said policy or the right of
the  insured to recover thereunder. If any policy does not permit such a waiver,
and  if  the  party to benefit therefrom requests that such a waiver be obtained
and  has  first  obtained  such a waiver benefitting the other party, such other
party  shall  endeavor  to  obtain  an  endorsement  to  its  insurance policies
permitting such waiver of subrogation if it is available and if such policies do
not  provide  therefor. If an additional premium is charged for such waiver, the
party  benefitting therefrom, if it desires to have the waiver, agrees to pay to
the  other  the  amount  of  such  additional premium promptly upon being billed
therefor.

               (e)     Blanket  Policies. Tenant may carry any insurance that it
                       -----------------
is  required  to provide under a blanket policy for the risks and in the minimum
amounts  above  specified.

                                      -11-
<PAGE>
               (f)     Increase  of  Premium. Tenant will not do or suffer to be
                       ---------------------
done,  or  keep  or suffer to be kept, anything in, upon, or about the Premises,
the  Building  B or the Tract which will contravene Landlord's policies insuring
against  loss  or  damage by fire or other hazards (including but not limited to
public liability) or which will prevent Landlord from procuring such policies in
companies  acceptable  to  Landlord.  If  anything  done,  omitted to be done or
suffered  to  be  done  by Tenant, or kept or suffered by Tenant to be kept, in,
upon,  or  about  the  Premises, Building B or the Tract shall cause the rate of
fire or other insurance on the Premises, Building B, the Tract or other property
of  Landlord  in  companies  acceptable  to  Landlord to be increased beyond the
otherwise  prevailing  rate from time to time applicable to the Premises for use
for  the purposes permitted under this Lease, Tenant will pay the amount of such
increase promptly upon Landlord's demand. If Tenant's use of the Premises at any
time  includes  any process, procedure, equipment, or materials which render the
Premises  uninsurable,  Tenant shall be in default of its obligations under this
Lease and Landlord shall have available to it all remedies provided in Paragraph
28  hereunder.

               (g)     Self  Insurance. Notwithstanding anything to the contrary
                       ---------------
contained herein, so long as Tenant shall have positive earnings from continuing
operations  (excluding  extraordinary  charges),  Tenant shall have the right to
self-insure all or any part of the insurance required to be maintained by Tenant
hereunder.  Tenant  shall  make  Landlord  whole  for any loss suffered during a
period  of self insurance to the extent that Landlord could have recovered under
a  policy  which  otherwise  would have been required to have been maintained by
Tenant  hereunder.

          8.     TENANT'S  FIXTURES.  Subject to the provisions of Paragraphs 11
                 ------------------
and  16 hereof, Tenant shall have the right to install in the Premises any trade
fixtures and equipment and to remove any or all such fixtures and equipment from
time  to  time  during  the  term of this Lease; provided, however, that no such
installation or removal shall affect the structural portions of the Premises and
that Tenant shall repair and restore any damage or injury to the Premises caused
by  the  installation  and/or  removal  of any such fixtures and equipment, such
repair  and  restoration to be made to a standard at least to place the Premises
in  the same condition it would have been had Tenant not made such installations
and/or  removals.

          9.     SIGNS.  Except  for  signs  which are located wholly within the
                 -----
interior of the Premises and which are not visible from the exterior of Building
B,  no  signs  shall be placed,

                                     - 12 -
<PAGE>
erected, maintained or painted at any place upon the Premises, without the prior
written  consent  of  Landlord as to the size, design, color, location, content,
illumination,  composition  or material and mobility thereof. All signs shall be
maintained by Tenant in good condition during the term of this Lease, and Tenant
shall  remove  all  signs  at the termination of this Lease and shall repair and
restore  any  damage  caused  by  the  installation  and/or  removal  thereof.

          10.     REPAIRS  AND  MAINTENANCE.
                  -------------------------

               (a)     Except  as specifically otherwise provided below, Tenant,
at  its  sole cost and expense and throughout the term of this Lease, shall keep
and  maintain  the  Premises in good order and condition and shall promptly make
all  repairs, renewals and replacements necessary to keep and maintain such good
order  and  condition,  normal  wear  and  tear  excepted,  and  subject  to the
provisions  of Paragraph 17. All repairs, renewals and replacement shall utilize
materials  and  equipment  which are at least equal in quality and usefulness to
those originally used in constructing the Premises. Tenant shall obtain prior to
the  Commencement  Date  a  standard  maintenance  contract  on  the  clean room
mechanical  system  and the HVAC system serving the Premises in a  form mutually
acceptable  to  Landlord  and  Tenant  (the "Approved Maintenance Contract") and
shall  subsequently  maintain  at  all  times  during  the  term of this Lease a
maintenance contract on the clean room mechanical system and HVAC system serving
the  Premises which provides coverage at least equal to the Approved Maintenance
Contract  (or  in  lieu of carrying such a contract, Tenant shall be responsible
for  any  repairs  or  maintenance which would have been covered by the Approved
Maintenance  Contract).  Tenant  will  be responsible for changing filters after
Landlord's  initial  installation  of  new  filters.

               (b)     Landlord,  throughout  the  term hereof and at Landlord's
sole  cost  and  expense,  shall  make  all  necessary repairs to the structure,
including  the roof and walls, of Building B; provided, that Landlord shall have
no  responsibility  to make any repair unless and until Tenant notifies Landlord
in  writing  of  the  need  for such repair and provided, further, that Landlord
shall  have  no  responsibility  to  repair any damage which arises out of or is
caused  by any negligence or abuse, of Tenant or any employee, agent, contractor
or  invitee  of  Tenant,  or  by Tenant's installations in or upon the Premises.

               (c)     Landlord,  throughout  the term of this lease, shall make
all  necessary  repairs to any driveways, sidewalks, curbs, loading, parking and
landscaped  areas,  and  other  similar improvements on the Tract, provided that
Landlord shall have no

                                     - 13 -
<PAGE>
responsibility to make any repair unless and until Tenant or any other tenant of
Building  B  notifies  Landlord  in  writing of the need for such repair. Tenant
shall  pay as additional rent its Proportionate Share of the cost of all repairs
specified  in this Paragraph (c) and similar repairs to Buildings A and C on the
Tract,  upon  being  billed  therefor  by  Landlord, except for (i) repairs made
necessary  because  of  any  abuse  by or any negligent acts or omissions of any
tenant of the Tract or such tenant's employees, agents, contractors or invitees,
and  (ii)  repairs which under generally accepted accounting practices should be
capitalized.

          (d)     Landlord agrees to perform all repair work in such a manner so
as  to  minimize  to  the  extent  practicable  any  inconvenience,  annoyance,
disturbance  or  other damages to Tenant's ongoing business operations. Landlord
agrees  to  give  Tenant  reasonable  advance notice of such work, except in the
event  of  an  emergency.

          (e)     Landlord shall keep and maintain all common areas of the Tract
in  a  clean  and  orderly  condition, free of accumulation of dirt and rubbish,
shall  keep  and  maintain all landscaped areas in a neat and orderly condition,
and  shall  perform all necessary snow removal to clear sidewalks, parking areas
and  access  ways.  Tenant  shall pay its Proportionate Share of the cost of all
work  to  be  performed by Landlord pursuant to this Paragraph (e) as additional
rent,  upon  being  billed  therefor  by  Landlord.

          (f)     Tenant shall keep and maintain all portions of the Premises in
a  clean and orderly condition, free of accumulation of dirt and rubbish. Tenant
shall  not  use  or  permit  the  use of any portion of the Premises for outdoor
storage.  Tenant  shall  arrange  for  and shall pay for janitorial services and
trash  collection required to keep the Premises in a neat and clean condition at
all  times.

          (g)     Tenant  at its election shall install or otherwise arrange for
security  by  personnel, electronic or other means of the Premises and shall pay
for  all  charges  in connection therewith, including any additional electrical,
renovation,  maintenance,  or  any  other kind of labor or work required for the
installation and maintenance of such system, whether as an initial or continuing
charge.

          (h)     Notwithstanding anything to the contrary contained herein, any
repairs  or  replacements to the clean room mechanical system not covered by the
Approved  Maintenance  Contract  (except  for  repairs  or replacements required
because  of

                                     - 14 -
<PAGE>
Tenant's  negligence  for  which Tenant shall have sole responsibility) shall be
performed  by  or  at the direction of Tenant, with the consent of Landlord, and
the  cost  thereof  shall be allocated between Tenant and Landlord based on that
portion of the economic life of the repair or replacement which falls within the
term  of  this  Lease  (including any extensions if and when exercised) and that
portion  of  the  economic  life  of the cost, repair or replacement which falls
outside  of  the  term  of  this  Lease,  respectively.  Tenant  shall be solely
responsible  for  the  cost,  repair and maintenance of any additional cleanroom
mechanical  equipment  added to the clean room by Tenant to upgrade or otherwise
modify the system. Tenant shall also make all necessary repairs and replacements
to  all  utility  and  mechanical systems within the Premises (including rooftop
HVAC  units  to  the  extent  not  covered by the Approved Maintenance Contract)
serving  only  the Premises; provided that Landlord shall be responsible for the
repair  of  any  catastrophic  failure  to  such  system  which,  in  Landlord's
reasonable  opinion,  was  not  caused  by  Tenant's  negligence  or by Tenant's
modification  or  alteration  of  such  system.

          11.     ALTERATIONS  AND ADDITIONS BY TENANT. Tenant shall not make or
                  ------------------------------------
permit  to  be  made any alterations, improvements or additions to the Premises,
Building  B  or the Tract, without on each occasion first presenting to Landlord
plans  and  specifications  therefor, including appropriate building permits and
other licenses required, and obtaining Landlord's prior written consent thereto;
except  that  after  the  initial  renovation Tenant may make minor alterations,
improvements or additions to the interior of the Premises without the consent of
Landlord;  provided that Tenant notifies Landlord at least 10 days in advance of
commencing  such  work. Landlord agrees not to withhold any required consent if:
(i)  Tenant supplies Landlord with plans and specifications for the alterations,
improvements,  or additions and any necessary permits therefor at least ten (10)
days in advance thereof; (ii) such alterations, improvements or additions do not
impair  the  structural  strength of Building B, or reduce its value, or overtax
any  of  the  mechanical systems in place at the Commencement Date; (iii) Tenant
shall  take  or  cause  to  be taken all steps that are required by Paragraph 16
hereof  and  that  are  required  or  permitted  by  law  in  order to avoid the
imposition of any mechanic's, laborer's or materialmen's lien upon the Premises,
Building  B  or  the  Tract;  and  (iv)  the  occupants  of the Tract and of any
adjoining  real  estate owned by Landlord are not disturbed or annoyed by reason
thereof.  All,  or  any part of the alterations, improvements and additions made
pursuant to this Paragraph 11 may be removed by Tenant at the end of the term of
this  Lease.  Tenant  shall  remove  any  such  alterations,  improvements  and
additions  at  the  end  of  the  term of this

                                     - 15 -
<PAGE>
Lease  at  the  request  of  Landlord,  provided  that  at the time of giving of
Landlord's  consent  to  such  alteration,  improvement  or  addition,  Landlord
reserved  the right to so request such removal. In each case Tenant shall repair
and restore the portion of the Premises affected by such removal to its original
condition.  Any  alterations, improvements and additions not so removed shall be
and  become  part  of  the Premises and the property of Landlord without payment
therefor  by  Landlord  shall  be surrendered to Landlord upon the expiration or
earlier  termination  of  the  term  of  this  Lease.

          Without limiting the generality of the foregoing, Landlord consents to
the installation by Tenant of a chiller, a nitrogen tank, and a propane tank and
related  improvements  which  shall  be located outside Building B in a location
mutually  acceptable  to  Landlord  and  Tenant.  Tenant acknowledges Landlord's
desire  to maintain the first class appearance of the exterior of Building B and
agrees  to comply with Landlord's reasonable requirements as to the location and
screening  of  such  facilities.

     12.     LANDLORD'S  RIGHT  OF  ENTRY.
             -----------------------------

               (a)     Tenant  shall  permit  Landlord  and  the  authorized
representatives  of  Landlord  and of any mortgagee or any prospective mortgagee
to  enter Premises at all reasonable times for the purpose of: (i) inspecting it
and  (ii) making any necessary repairs thereto or to Building B or the Tract and
performing  any  work  therein.  Landlord  shall  give Tenant reasonable advance
notice  of any such entry, and all persons so entering shall be accompanied by a
representative  of  Tenant,  except  in  the  case  of  an  emergency.  Landlord
acknowledges that Tenant intends to use confidential and proprietary information
and  manufacturing  processes  in  the  Premises,  and agrees, at the request of
Tenant,  to  cause  all  persons so entering the Premises to sign an appropriate
confidentiality  agreement  supplied  by  Tenant. Nothing herein shall imply any
duty  upon  the part of the Landlord to do any work or to make any repairs which
under  any  provision  of  this Lease Tenant may be required to perform, and the
performance  thereof  by  Landlord  shall  not  constitute  a waiver of Tenant's
default  in  failing  to  perform  the  same.

               (b)     Landlord  shall have the right at all reasonable times to
enter  and  to  exhibit  the Premises for the purposes of sale or mortgage, and,
during the last twelve (12) months of the term of this Lease (as the same may be
extended)  or  at  any  time  after  this  Lease has been properly terminated as
provided  for  in  this  Lease,  to enter and to exhibit them to any prospective
tenant.

                                     - 16 -
<PAGE>
          13.     NET LEASE. This Lease is a "net lease" and Landlord is not and
                  ---------
shall  not  be  required  to render any services of any kind to Tenant except as
expressly  set  forth  herein.

          14.     UTILITY  CHARGES.   Tenant shall be solely responsible for and
                  ----------------
shall pay promptly all rents, costs and charges for any separately metered water
service,  sewer  service, gas, electricity, light, heat, steam, power, telephone
and  other  communication  services,  and  any  and all other separately metered
utility  or service rendered or supplied upon or in connection with the Premises
or  used  or  consumed  in  or  servicing  the  Premises and all other costs and
expenses  involved  in  the care, management and use of  the Premises throughout
the  term  of  this lease, and Tenant shall indemnify Landlord and save Landlord
harmless  against  any  costs,  liability  or damages on such account. Utilities
serving the Premises which are not separately metered shall be an Operating Cost
under  Paragraph  6.

          15.     GOVERNMENTAL  REGULATIONS.  Throughout  the term of this Lease
                  -------------------------
at  its  sole  cost  and  expense,  Tenant shall  comply promptly with all laws,
ordinances, notices, orders, rules, regulations and requirements of all federal,
state  and  municipal  governments  and all departments, commissions, boards and
offices  thereof,  and  with  all  notices, orders, rules and regulations of the
National  Board  of  Fire  Underwriters  or  any  other  body  now  or hereafter
constituted  exercising  similar  functions,  relating to all or any part of the
interior  of  the Premises, or to use or manner of use of the Premises or to the
fixtures  and  equipment  upon  the  Premises,  whether any of the foregoing are
foreseen  or  unforeseen,  or ordinary or extraordinary; provided, however, that
Tenant  shall  not be required to comply with the foregoing laws, ordinances and
notices  with  respect to any deficiencies in the Premises (including Landlord's
work  under  Paragraph 3(a) but excluding any work performed by Tenant) existing
at  the  time  of  the  Commencement  Date  or  to  otherwise  make  any capital
improvements  or  repairs  to  the Premises unless the need for such compliance,
improvements or repairs arises out of or is caused by the particular use, manner
or  occupancy  of  the Premises  by Tenant or any employee, agent, contractor or
invitee  of  Tenant (as opposed to a requirement generally applicable to office,
warehouse,  or  manufacturing  use)  or by Tenant's installations in or upon the
Premises. Without limiting the generality of the foregoing, Tenant shall keep in
force  at  all times all licenses, consents and permits necessary for the lawful
use  of  the Premises for the operations conducted therein. Tenant shall pay all
personal  property  taxes, income taxes, license fees, and other taxes which are
or  may  be  assessed,  levied  or  imposed  upon  Tenant in connection with the
operation of its business upon the Premises, and Tenant shall observe and comply
with  the

                                      -17-
<PAGE>
requirements  of  all  public  liability,  fire  and other policies of insurance
covering  the  Premises  or  the  equipment  thereon.

          16.     MECHANIC'S  LIENS.
                  -----------------

               (a)     No  Liens. Tenant will not create or permit to be created
                       ---------
or  remain,  and will charge, any mechanic's lien arising out of work contracted
for  by Tenant, and Tenant will not suffer any other matter or thing whereby the
estate, right and interest of Landlord in the Premises or any part thereof might
be  impaired;  provided that any mechanic's lien, notice of intention, or notice
of  refusal,  may be discharged in accordance with Paragraph 16(b); and provided
further  that Tenant shall not be responsible for any mechanic's lien filed as a
result  of  work  done  by  or  for  Landlord.

               (b)     Discharge of Liens. If any mechanic's lien shall be filed
                       ------------------
at  any  time,  Tenant,  within  fifteen  (15)  days  after notice of the filing
thereof,  will  cause  it  to be discharged or record by payment, deposit, bond,
order  of  a  court  of competent  jurisdiction or otherwise. If Tenant fails to
cause  any such lien to be discharged within such fifteen (15) day period, then,
in  addition  to  any  other  right  or  remedy,  Landlord may, but shall not be
obligated  to,  discharge  such  lien after giving Tenant an additional ten (10)
days notice by paying the amount claimed to be due or by procuring the discharge
of  such  lien  by  deposit  or  by  bonding proceedings, and in any such event,
Landlord  shall be entitled, if Landlord so elects, to compel the prosecution of
any  action  for the foreclosure of such lien by the lienor with interest, costs
and  allowances.  Any  amount  so  paid  by  Landlord and all costs and expenses
incurred by Landlord in connection therewith, together with interest thereon, at
the  rate of ten percent (10%) per annum from the respective dates of Landlord's
making of the payments and incurring of the costs and expenses, shall constitute
additional  rent  payable by Tenant under this Lease and shall be paid by Tenant
to  Landlord  on  demand.

               (c)     Waiver of Liens. Notwithstanding anything to the contrary
                       ---------------
set  forth  in this Paragraph, prior to the making of any alterations, additions
or  improvements  to  the  Premises, Tenant shall, if allowed by applicable law,
cause  to  be  duly  filed  and  recorded in the appropriate offices a waiver of
mechanics'  liens.

               (d)     No  Consent  of  Landlord  Intended. Nothing contained in
                       -----------------------------------
this  Lease  shall  be deemed or construed in any way to constitute a consent or
request  of  Landlord,  express  or  implied,  to any contractor, subcontractor,
laborer or materialmen

                                      -18-
<PAGE>
for  the  performance  of  any  labor or the furnishing of any materials for any
specific  alteration,  addition,  improvement  or  repair, or to give Tenant any
right,  power  or  authority  to  contract  for  or  permit the rendering of any
services  or  the furnishing of any materials that would give rise to the filing
or  any  mechanic's lien, or to evidence Landlord's consent to the imposition of
any  mechanic's  lien.

          17.     DAMAGE  BY  FIRE  OR  OTHER  CASUALTY.
                  -------------------------------------

               If  the  Premises  shall be damaged or destroyed by fire or other
casualty,  Tenant  shall  promptly notify Landlord, and Landlord, subject to the
conditions  hereafter  set  forth in this Paragraph 17, shall repair, rebuild or
replace such damage and restore the Premises substantially the same condition in
which  they were immediately prior to such damage or destruction. The work shall
be  commenced promptly and completed with due diligence, taking into account the
time  required  by  Landlord  to effect a settlement with, and procure insurance
proceeds  from,  the  insurer.  The  time  for  commencement  and  completion of
restoration  shall  be  extended for a period equal to any time lost by Landlord
because  of causes beyond Landlord's reasonable control (which shall not include
any  time  required  to  settle  with insurers). The net amount of any insurance
proceeds (excluding rent insurance proceeds) recovered (or which would have been
recoverable had Landlord maintained an all risk policy in the amount of the full
insurable  value  of  Building  B) by reason of the damage or destruction of the
Premises  in  excess of the cost of adjusting the insurance claim and collecting
the  insurance  proceeds  (such  excess amount being hereinafter called the "net
insurance  proceeds")  shall  be  applied  towards  the  reasonable  cost  of
restoration.  Landlord  shall not be responsible for the repair, restoration, or
replacement  of  the fixtures, improvements, alterations, furniture or any other
property  owned,  installed  or  made by Tenant including without limitation any
property  required  by  Tenant  under  Paragraph  3(b).

               Notwithstanding anything contained herein to the contrary, in the
event  of  any  damage  or  destruction  to  the  Premises, (a) if the damage or
destruction  is to the office and warehouse area only, this Lease shall continue
and  Landlord shall be responsible for providing Tenant with substitute space of
equal  utility  and  value  in  Building  A or Building C, if available, or in a
nearby  facility, until the Premises are repaired, and (b) in the event that the
cleanroom  is  damaged  (i)  Landlord  may elect to provide substitute cleanroom
space in Building A with adjacent warehouse and office space, all equal at value
and  utility  to  the  Premises,  in  which  case this Lease shall be amended to
reflect the permanent substitution of such new

                                      -19-
<PAGE>
space  for  the  Premises  or  (ii)  if  Landlord does not or cannot so elect to
provide  such  substitute  space,  Tenant shall have the right to terminate this
Lease  in  the  event that the cleanroom is not repaired within the longer of 90
days  from  the  date  of damage or the date on which Tenant has available to it
sufficient process equipment so that it could, but for the unavailability of the
cleanroom,  commence  commercial  production.

               In  the  event  that  this Lease is not terminated as a result of
such damage or destruction, and provided further that such damage or destruction
was  not  a  result  of Tenant's negligence, all rent payable hereunder shall be
equitably  abated during the repair period based upon the extent of the Premises
which  are  not  useable  and  the  relative  value  of  such  space.

          18.     INDEMNIFICATION.
                  ---------------

               (a)     Tenant  shall and does hereby indemnify and save harmless
Landlord  from  and  against  any  and  all claims by or on behalf of any person
arising  from (i) any breach or default on the part of Tenant in the performance
of  any  covenant or agreement on the part of Tenant to be performed pursuant to
the  terms  of this Lease, or (ii) the breach of any law by Tenant, or (iii) any
act  or  negligence  of  Tenant  or  any  of  its agents, contractors, servants,
employees,  licensees  or  invitees.  Tenant  also indemnifies Landlord from and
against all costs, expenses and liabilities incurred in connection with any such
claim  or any action or proceeding brought thereon (including without limitation
the fees of attorneys, investigators and experts); and if any such claim, action
or  proceeding is brought against Landlord, Tenant upon notice from Landlord and
at  Tenant's  cost  and  expense  shall  resist  or defend such claim, action or
proceeding  or  shall  cause  it  to  be  resisted  or  defended  by an insurer.

               (b)     Landlord  shall  and  does  hereby  indemnify  and  save
harmless  Tenant  from  and  against  any  and all claims by or on behalf of any
person  arising  from  (i)  any breach or default on the part of Landlord in the
performance of any covenant or agreement on the part of Landlord to be performed
pursuant  to the terms of this Lease, or (ii) the breach of any law by Landlord,
or  (iii)  any  act or negligence of Landlord or any of its agents, contractors,
servants,  employees,  licensees  or  invitees. Landlord also indemnifies Tenant
from and against all costs, expenses and liabilities incurred in connection with
any  such  claim  or any action or proceeding brought thereon (including without
limitation  the  fees  of attorneys, investigators and experts); and if any such
claim, action or proceeding is brought against Tenant, Landlord upon notice from
Tenant  and  at

                                      -20-
<PAGE>
Landlord's  cost  and  expense  shall  resist  or  defend  such claim, action or
proceeding  or  shall  cause  it  to  be  resisted  or  defended  by an insurer.

          19.     CONDEMNATION.
                  ------------

               (a)     Condemnation  of  Entire Premises. If all of the Premises
                       ---------------------------------
is  taken  or  condemned  for  a  public  or quasi-public use (a sale in lieu of
condemnation  to be deemed a taking or condemnation), this Lease shall terminate
as  of  the  date title to  the condemned real estate vests in the condemnor and
the  rent  herein  reserved  shall  be apportioned and paid in full by Tenant to
Landlord  to  that  date and all rent prepaid for periods beyond that date shall
forthwith  be  repaid  by  Landlord  to  Tenant.

               (b)     Partial  Condemnation.  If  only  part of the Premises is
                       ---------------------
taken  or  condemned  for  a  public  or  quasi-public  use  (a  sale in lieu of
condemnation  to  be  deemed  a taking or condemnation), and if the Premises are
restored  pursuant  to  the  provision  of this Paragraph (b), there shall be an
equitable  abatement for the balance of the term of the minimum annual rent (and
correspondingly the monthly installments thereof)  according to the value of the
Premises  before  and after the taking. In the event that the parties are unable
to  agree  upon  the amount of such abatement, either party may submit the issue
for  arbitration in Montgomery County, Commonwealth of Pennsylvania, pursuant to
the  rules  then  obtaining  of  the  American  Arbitration  Association and the
determination  or award rendered by the arbitrator(s) shall be final, conclusive
and binding upon the parties and not subject to appeal, and judgment thereon may
be  entered in any court of competent jurisdiction. If only part of the Premises
is  taken or condemned for a public or quasi-public use, the net proceeds of any
condemnation  award  recovered  by  reason  of any taking or condemnation of the
buildings  in  excess  of the cost of collecting the award and in excess of the
difference  between  the  market  value  of  the  Tract,  buildings  and  other
improvements  immediately  prior  to  the  taking or condemnation and the market
value  of  the  Tract,  buildings  and  other  improvements  immediately  after
restoration  of  the  damage  caused  by the taking or condemnation (such excess
being  hereinafter  called  the  "net  condemnation  proceeds") shall be applied
towards  the  reasonable cost of restoring the Premises, the buildings and other
improvements  damaged  by  reason  of  the  taking  or  condemnation. If the net
condemnation  proceeds  are  more  than  adequate,  the  amount by which the net
condemnation  proceeds  exceed  the  cost  of  restoration  will  be retained by
Landlord  or  applied  to  repayment  of  any  mortgage secured by the Premises.

                                      -21-
<PAGE>
          (c)     Termination.  If  the Premises as proposed to be restored will
                  -----------
not  be  suitable  for  Tenant's  continuing  operations,  Tenant  may  elect to
terminate  this  Lease effective as of the date of the taking. Any such election
by  Tenant shall be in writing given not more than 30 days after Tenant receives
Landlord's  proposal  for  restorations.  Notwithstanding  the foregoing, if the
Premises  cannot,  in  Landlord's opinion, be restored to an economically viable
facility  as  a  result  of  such  condemnation or taking, Landlord may elect to
terminate  this  Lease effective as of the date of the taking. Any such election
by  Landlord  shall  be in writing given not more than 90 days after the date of
the  taking.

          (d)     Award.  In  the event this Lease is terminated pursuant to the
                  -----
provisions  of  this  Paragraph  19, Tenant shall have the right to make a claim
against  the  condemnor for the  removal expenses, business dislocation damages,
moving expenses and leasehold improvements, provided and to the extent, however,
that  such  claims  or  payments do not reduce the sums otherwise payable by the
condemnor  to  Landlord.  Except  as  aforesaid, Tenant hereby waives all claims
against Landlord and all claims against the condemnor, and Tenant hereby assigns
to  Landlord all claims against the condemnor including, without limitation, all
claims  for  leasehold  damages  and  diminution  in value of Tenant's leasehold
interest.

          20.     NON-ABATEMENT  OF  RENT.
                  -----------------------

               Except  as  hereinbefore  expressly  provided,  there shall be no
abatement,  diminution  or reduction of the minimum annual rent, additional rent
or  other  sums  payable  hereunder  for  any  cause  whatsoever.

          21.     QUIET  ENJOYMENT. Tenant, upon paying the annual minimum rent,
                  ----------------
additional  rent and other charges herein provided for and observing and keeping
all  covenants,  agreements  and conditions of this Lease on its part to be kept
shall  quietly have and enjoy the Premises during the term of this Lease without
hindrance  or  molestation  by  anyone claiming by or through Landlord, subject,
however,  to  the  exceptions,  reservations  and  conditions  of  this  Lease.

          22.     ASSIGNMENT  AND SUBLETTING. Tenant shall not assign, mortgage,
                  --------------------------
pledge  or  encumber this lease, or sublet the whole or any part of the Premises
except  in  accordance with this Paragraph 22. Tenant shall not sublet or assign
all  or  part  of  the  Premises during the initial term of the Lease. If Tenant
desires to assign or sublet all or any part of the Premises during the extension
term, Tenant shall give Landlord written

                                      -22-
<PAGE>
notice  thereof.  Landlord  shall  have the option, within 30 days of receipt of
such  notice,  to (i) amend this Lease so as to remove the space to be sublet or
assigned  from  the Premises in whole or in part, in which case this Lease shall
continue with rent equitably abated as to the remainder of the space, if any, in
the  Premises,  or  (ii) permit Tenant to so assign or sublease all or a part of
the  Premises,  provided  that  Landlord  shall  have  the  right to approve the
identity  of  any assignee or subtenant, which approval shall not be withheld if
(a)  the operations and reputation of any proposed assignee or subtenant are not
objectionable  to Landlord, and (b) the proposed assignee or subtenant would not
negatively  affect the tax-free status of Landlord's financing. This prohibition
against  assigning  or  subletting  shall  be construed to include a prohibition
against  any  assignment  or subletting by operation of law. In the event of any
assignment  or subletting of this Lease made with or without Landlord's consent,
Tenant,  nevertheless,  shall  remain  liable  for the performance of all of the
terms,  conditions  and  covenants  of  this  Lease.  In the case of a permitted
assignment, Tenant shall require any assignee to execute and deliver to Landlord
an  assumption  of  liability  agreement in form satisfactory to Landlord (which
assumption  agreement shall not discharge Tenant from its continuing obligations
hereunder), including an assumption by the assignee of all of the obligations of
Tenant  and  the assignee's ratification of and agreement to be bound by all the
provisions  of  this  Lease. In the case of a permitted subletting, Tenant shall
require  the  sublessee to execute a sublease in a form satisfactory to Landlord
whereby the sublessee agrees to be bound by and comply with all of the terms and
conditions  of  this  Lease.

          23.     NONDISTURBANCE. Within the earlier of 60 days of the execution
                  --------------
hereof  on  the  Commencement  Date,  Landlord  shall  deliver  to  Tenant  a
Subordination,  Non-disturbance  and  Attornment  Agreement from every mortgagee
substantially  in the form as Exhibit D hereto. If Landlord fails to supply said
Agreement  for  any  reason whatsoever, Tenant shall have the right to terminate
this Lease, by giving Landlord written notice thereof within 70 days of the date
of  the  execution  of  the  Lease.  If Tenant does not exercise its right to so
terminate within said 70 day period, Tenant's right to terminate shall be deemed
to  have  been  waived  and  this  Lease shall continue in full force and effect
without  any  obligation  on  Landlord  to  supply  said  Agreement.

          24.     MEMORANDUM  OF  LEASE;  TENANT'S  CERTIFICATE.
                  ---------------------------------------------

               (a)     Tenant, at any time and from time to time and within five
(5)  days  after  Landlord's  written  request,  shall

                                      -23-
<PAGE>
execute,  acknowledge and deliver to Landlord a short form or memorandum of this
Lease  for  recording  purposes.

               (b)     Each  party, at any time and from time to time and within
five  (5)  days  after  the  other  party's  written  request,  shall  execute,
acknowledge  and  deliver  to  the  requesting  party  a  written  instrument in
recordable  form  certifying  whether this Lease is unmodified and in full force
and effect (or if there have been modifications, whether it is in full force and
effect  as  modified  and  stating  the  modifications);  stating  whether  the
improvements  required  by  Paragraph 3(a) above have been completed; certifying
whether  Tenant  has  accepted  possession  of the Premises; stating the date on
which  the  term  of  this Lease commenced and the dates to which annual minimum
rent,  additional  rent  and  other  charges  have been paid in advance, if any;
stating  whether,  to  the  best knowledge of the signer of such instrument, the
requesting  party is in default in the performance of any covenant, agreement or
condition  contained  in  this  Lease; certifying any other condition reasonably
requested  by  or required by mortgagee or prospective mortgagee or purchaser or
subtenant  or assignee of the Premises or any interest therein; and stating that
it  is  understood  that  such instrument may be relied upon by any mortgagee or
prospective  mortgagee  or purchaser or subtenant or assignee of the Premises or
any  interest therein or by any assignee of Landlord's interest in this lease or
by any assignee of any mortgagee. The foregoing instrument shall be addressed to
the  requesting  party  and to any mortgagee, prospective mortgagee,  purchaser,
subtenant,  assignee  or  other  party  specified  by  the  requesting  party.

          25.     CURING TENANTS' DEFAULTS. If Tenant shall be in default in the
                  ------------------------
performance  of  any  of  its  obligations  hereunder,  Landlord  (without  any
obligation  to  do  so),  in  addition to any other rights it may have in law or
equity,  and after written notice to Tenant except in the case of emergency, may
elect  to  cure  such  default  on  behalf of Tenant, and Tenant shall reimburse
Landlord  upon  demand for any sums paid or costs incurred by Landlord in curing
such  default,  including  interest, at the rate of ten percent (10%) per annum,
from  the  respective  dates of Landlord's making the payments and incurring the
costs,  which  sums  and  costs  together  with interest thereon shall be deemed
additional  rent  payable  hereunder  and  shall  be  payable  upon  demand.

          26.     NOTICES.  All  notices,  demands,  requests,  consents,
                  -------
certificates  and  waivers  required or permitted hereunder from either party to
the  other shall be in writing and sent by Federal Express or similar guaranteed
overnight  delivery  service.  Notices to Landlord shall be addressed to Paul A.

                                      -24-
<PAGE>
Fertell,  President,  Seton  Company,  849 Broadway, Newark, NJ 07104. Notice to
Tenant  shall  be  addressed  to  Dr.  William  B.  Tuemmler, Vice President and
Technical Director, Pennwalt Corporation, 900 First Avenue, King of Prussia, Pa.
19406-0018  with  a  copy  to  Warren  J.  Gregory,  Manager Corporate Services,
Pennwalt Corporation, Three Parkway, Philadelphia, Pa. 19102, with a carbon copy
to  any mortgagee or other party designated by Landlord. Either party may at any
time,  in  the  manner  set  forth  for giving notices to the other, set forth a
different  address to which notices to it shall be sent. Notices shall be deemed
to  have  been given one business day after the same is sent as evidenced by the
sender's  receipt  from  the  delivery  service.

          27.     SURRENDER.
                  ---------

               At  the  expiration  or  earlier  termination of the term hereof,
Tenant shall promptly yield up, clean and neat, and in the same condition, order
and repair in which they are required to be kept throughout the term hereof, the
Premises  and  all  improvements,  alterations  and additions thereto subject to
Paragraphs  8  and  11.

          28.     DEFAULTS-REMEDIES.
                  -----------------

               (a)     If  Tenant  does  not  pay  in  full when due and without
demand any and all installments of annual minimum rent or additional rent or any
other  charges  or  payments  whether  or  not  herein  included  as  rent;  or

               (b)     If  Tenant  violates  or  fails  to  perform or otherwise
breaks  any agreement, term, covenant or condition herein contained or any other
obligation  herein  imposed  upon  Tenant;  or

               (c)     If Tenant abandons the Premises or removes or attempts to
remove Tenant's goods or property therefrom other than in the ordinary course of
business  without having first paid to Landlord in full all minimum annual rent,
additional  rent and other charges that may have become due as well as all which
will  become  due  thereafter;  or

               (d)     If  Tenant  becomes insolvent or bankrupt in any sense or
makes  an assignment for the benefit of creditors for any such purpose, or files
a petition in bankruptcy or reorganization or for any arrangement with creditors
under any federal or state act, or files a bill in equity or otherwise initiates
proceedings in any court for the appointment of a receiver, trustee, liquidator,
custodian, conservator or similar official for any of Tenant's assets, or if any

                                      -25-
<PAGE>
of  the real or personal property of Tenant shall be levied upon by any sheriff,
marshal,  or  constable;  or

          (e)  If  a  petition  in  bankruptcy  or  for reorganization or for an
arrangement  with  creditors  under  any  federal  or state act is filed against
Tenant  or  if a bill in equity or other proceeding is filed in any court by any
creditor  of  Tenant  for  the  appointment  of a receiver, trustee, liquidator,
custodian,  conservator  or  similar  official  for  any  of  Tenant's  assets;

          Then  Landlord  shall  have  the  following  rights:

          (1)  To  accelerate  the  whole or any part of the rent for the entire
     unexpired  balance of the term of this Lease, as well as all other charges,
     payments,  costs  and  expenses  herein  agreed  to  be  paid by Tenant; or

          (2)  To  re-enter  the  Premises and remove all persons and all or any
     property  therefrom,  either  by  summary  dispossess proceedings or by any
     suitable action or proceeding at law, and repossess and enjoy the Premises,
     together  with all additions, alterations and improvements. Upon recovering
     possession  of  the Premises by reason of or based upon or arising out of a
     default  on  the part of Tenant, Landlord may, at Landlord's option, either
     terminate  this  Lease  or  make  such  alterations  and  repairs as may be
     necessary  in order to relet the Premises and may relet the Premises or any
     part  or  parts thereof, either in Landlord's name or otherwise, for a term
     or  terms  which may at Landlord's option be less than or exceed the period
     which  would  otherwise  have  constituted  the balance of the term of this
     Lease and at such rent or rents and upon such other terms and conditions as
     in  Landlord's  sole  discretion  may  seem advisable and to such person or
     persons as may in Landlord's discretion seem best; upon each such reletting
     all rents received by Landlord from such reletting shall be applied: first,
     to  the  payment  of  any  indebtedness  other than rent due hereunder from
     Tenant  to  Landlord;  second,  to the payment of any costs and expenses of
     such  reletting, including brokerage fees and attorney's fees and all costs
     of  such  alterations  and  repairs;  third, to the payment of rent due and
     unpaid  hereunder;  and  the residue, if any, shall be held by Landlord and
     applied  in  payment  of  future  rent  as  it  may  become due and payable
     hereunder.  If  such  rentals  received  from  such  reletting  during  any

                                     - 26 -
<PAGE>
     month  shall  be  less  than  that  to  be paid during that month by Tenant
     hereunder,  Tenant  shall  pay  any  such  deficiency  to  Landlord.

No  waiver  by  Landlord of any breach by Tenant herein shall be a waiver of any
subsequent  breach,  nor  shall any forbearance by Landlord to seek a remedy for
any  breach  by  Tenant  be a waiver by Landlord of any rights and remedies with
respect  to  such  or any subsequent breach. Landlord's rights hereunder are not
exclusive  of  any  other  right  provided  hereunder  or  by  law.

          29. GRACE PERIOD. Notwithstanding anything hereinabove stated, neither
              ------------
party  hereto  will  exercise  any right or remedy provided for in this Lease or
allowed  by  law  because  of any  default of the other, unless such party shall
have  first  given  written  notice  thereof  to  the other, and, if the default
consists  of  a failure to pay money, the other shall have failed to pay the sum
or  sums  due  within  a period of seven (7) days thereafter, or, if the default
consists  of  something  other  than  the  failure  to  pay  money  which cannot
reasonably  be  cured within ten (10) days, the other shall have failed to begin
to  cure such default within ten (10) days thereafter and to thereafter continue
actively  and  diligently in good faith with the correction of the default until
it  is  fully cured; provided, however, that no such notice from Landlord and no
such  grace  period  shall be required more than two (2) times during any twelve
(12)  month  period.

          30.  BROKERS.  Tenant  represents and warrants to Landlord that Tenant
               -------
has  had no dealings, negotiations or consultations with respect to the Premises
or  this  transaction with any broker or finder which it has engaged and that no
broker  or  finder  called  the  Premises to Tenant's attention for lease except
Landlord's  brokers,  Jackson-Cross Co. and Coldwell Banker, or took any part in
any  dealings,  negotiations  or  consultations  with  respect  to the Premises.
Landlord  and  Tenant each represent and warrant to the other that except as set
forth  herein  neither of them has employed any broker, agent or finder relating
to  this  Lease.  Landlord  shall indemnify and hold Tenant harmless, and Tenant
shall indemnify and hold Landlord harmless, from and against any claim or claims
from  brokerage  or  other  commissions arising from or out of any breach of the
foregoing  representations  and  warranty  by  the  respective  indemnitors.

          31. ADVERSE POSSESSION. Tenant shall not suffer or permit the Premises
              ------------------
or any portion thereof to be used by the public, as such, without restriction or
in  such  manner  as  might  reasonably  tend  to impair Landlord's title to the
Premises  or  in such manner as might reasonably make possible a claim or claims

                                     - 27 -
<PAGE>
of  adverse  usage  or  adverse possession by the public, as such, or of implied
dedication  of  the  Premises  or  any  portion  thereof.

          32. CONDITION OF TITLE AND OF PREMISES. Landlord represents that it is
              ----------------------------------
the  owner of the Tract and that the use specified in this Lease is permitted by
the  zoning  regulations  of  Lower Providence Township applicable to the Tract.

          33.  DEFINITIONS  AND  CONSTRUCTION.
               ------------------------------

               (a)  Definition of "Landlord". The word "Landlord" is used herein
                    ------------------------
to  include  the  Landlord named above as well as it successors and assigns, and
any  other  subsequent  owner  of  the  Premises, as well as the heirs, personal
representatives  or successors and assigns of any such subsequent owner, each of
whom shall have the same rights, remedies, powers, authorities and privileges as
he  would have had had he originally signed this lease as Landlord, but any such
person,  whether or not named herein, shall have no liability hereunder after he
ceases  to  hold  title  to  the Premises, except for obligations which may have
theretofore  accrued.  Neither  Landlord  nor any principal of Landlord, whether
disclosed  or undisclosed, shall have any personal liability with respect to any
of  the  provisions  of  this  lease  of the Premises, and if the Landlord is in
breach  or  default  with  respect to Landlord's obligations under this Lease or
otherwise,  Tenant  shall  look solely to the equity of Landlord in the Premises
for  the  satisfaction  of  Tenant's  remedies.

               (b)  Definition  of "Tenant". The word "Tenant" is used herein to
                    -----------------------
include  the  Tenant  named above as well as its successors and assigns, each of
which  shall  be  under  the same obligations, liabilities and disabilities, and
each  of  which  shall  have the same rights, privileges and powers, as it would
have  possessed had it originally signed this lease as Tenant. Each and every of
the  persons  named  above  as  Tenant  shall  be  bound  formally by the terms,
covenants  and  agreements contained herein. However, no such rights, privileges
or  powers  shall  inure  to  the benefit of any assignee of Tenant immediate or
remote,  unless  the  assignment  to  such  assignee  is  permitted  hereunder.

               (c) Definition of "Mortgage" and "Mortgagee". The word "mortgage"
                   ----------------------------------------
is  used herein to include any lien or encumbrance on the Premises, the Tract or
the  buildings  and  improvements  thereon  or  on any part of or interest in or
appurtenance  to  any of the foregoing, including without limitation, any ground
rent  or  ground  lease if Landlord's interest is or becomes a leasehold estate.
The  word  "mortgagee"  is  used  herein  to include the holder of any mortgage,
including

                                     - 28 -
<PAGE>
any  ground  lessor  if  Landlord's  interest  is or becomes a leasehold estate.
Wherever  any  right  is  given  to  a mortgagee, that right may be exercised on
behalf  of  such  mortgagee by any representative or servicing agent of any such
mortgagee.

               (d)  Definition  of "Mechanic's Lien". The term "mechanic's lien"
                    --------------------------------
shall  mean  any  lien imposed upon the Premises, the Tract or the buildings and
improvements  thereon  or  any interest therein under the Pennsylvania Mechanics
Lien  Law  of  1963.

               (e)  Definition  of "Person". The word "person" is used herein to
                    -----------------------
include  a  natural  person  or  persons,  a  partnership  or  partnerships,  a
corporation  or  corporations, an association or associations and any other form
of  business  association  or  entity.

               (f)  Definition of "Proportionate Share". Tenant's "Proportionate
                    -----------------------------------
Share"  of  any  Imposition,  cost,  charge,  rent,  expense or payment shall be
calculated,  unless  otherwise  specified,  by multiplying the relevant sum by a
fraction, the numerator of which shall be the floor area of the Premises and the
denominator of which shall be the total floor area of Buildings "A", "B" and "C"
as  set  forth  on  Exhibit  A hereto. For the purposes of this paragraph, it is
estimated  that  the  total  floor  area  of  Buildings  "A",  "B"  and  "C" is
approximately  194,480  square  feet  and that the floor area of the Premises is
approximately  41,274  square  feet. Proportionate Share is therefore 21.2%, but
such  factor  may be revised based upon further calculations. Such recalculation
shall  be  reduced  to  writing  and  appended  hereto.

               (g)  Consents.  So  long  as  no  default  has  occurred  and  is
                    --------
continuing  by the requesting party, whenever  in this Lease a consent, approval
or  similar  action  is  required  by a party, such consent, approval or similar
action  shall  not  be  unreasonably  withheld  or  delayed.

          34.  ENTIRE  AGREEMENT.  This  Lease  represents  the entire agreement
               -----------------
between  the  parties  hereto  and there are no collateral or oral agreements or
understandings  between  Landlord  and  Tenant with respect to the Premises, the
building  or  the  Tract.  No  rights, easements or licenses are acquired in the
Premises  or  any  land  adjacent  to  the  Premises by Tenant by implication or
otherwise  except  as  expressly set forth in the provisions of this Lease. This
Lease  shall  not  be  modified in any manner except by an instrument in writing
executed  by  the  parties.  The  masculine (or neuter) pronoun, singular number

                                     - 29 -
<PAGE>
shall  include  the  masculine, feminine and neuter genders and the singular and
plural  number.

          35. WORKLETTER. The letters and schedules attached hereto as Exhibit E
              ----------
covering  the  separation  of  utilities and the other matters set forth therein
shall  supersede  the  general  provisions  of  this Lease dealing with the same
subject  matter.

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

          37.  COVENANT  REGARDING  TAX  EXEMPT  FINANCING.  Seton  Company's
               -------------------------------------------
acquisition  and  renovation of the Premises has been financed with the proceeds
of  variable  Rate  Demand  Industrial  Development Revenue Bonds (Seton Company
Project)  Series  1984  issued  by  the Montgomery County Industrial Development
Authority.  Tenant  hereby  agrees  (a) not to make any capital expenditure with
respect to the Premises in excess of $550,000, except for (i) expenditures under
Paragraph  3(b),  (ii)  equipment purchased after January 1, 1982 to be moved in
having  an equipment cost exclusive of installation and rigging of not more than
$996,000,  and (iii) equipment purchased prior to January 1, 1982, (b) not to do
anything  which  would endanger the tax exempt status of the interest payable on
the  Bonds,  and (c) to file with the Internal Revenue Service, such statements,
applications, elections or other written filings as Seton Company may request in
order  to

                                     - 30 -
<PAGE>
establish  and/or  maintain  the  tax  exempt status of the interest referred to
herein.

          IN  WITNESS  WHEREOF,  the parties hereto have executed this Lease the
day  and  year  first  above  written.

                                           LANDLORD:   SEMEX, INC.

                                           By: /s/
                                              ----------------------------------
                                              Title

                                           TENANT:   PENNWALT CORPORATION

                                           By: /s/
                                              ----------------------------------
                                              Title

                                     - 31 -
<PAGE>
                                 FIRST AMENDMENT
                                       TO
                               AGREEMENT OF LEASE

This  Agreement made this 18th day of October, 1994 by and between SEMEX INC., a
wholly  owned  subsidiary  of  Seton  Company  ("Landlord") and AMP INCORPORATED
("Tenant").

                                   WITNESSETH:

     WHEREAS,  Penwalt  Corporation,  as  Tenant  entered  in  a  certain  lease
agreement  with  Semex, Inc., dated May 20, 1986 for approximately 41,274 square
feet  of  space at 950 Forge Avenue, Norristown, Pennsylvania (the "Lease"), and

     WHEREAS,  Tenant has, in accordance with the lease, exercised its option to
extend  the  Lease  for  five  years,  and

     WHEREAS,  Tenant  has  assigned  its  interests in the Lease to Elf Atochem
Sensors,  Inc.,  which  assignment  was  consented to by Landlord on October 24,
1990.

     WHEREAS,  Elf  Atochem Sensors, Inc., as tenant, has assigned its interests
in  the Lease to AMP Incorporated, which assignment was consented to by Landlord
on  February  19,  1993.

     WHEREAS,  Landlord  and  Tenant  desire  to  amend  the  Lease.

     NOW  THEREFORE,  in  consideration of the mutual covenants, conditions, and
agreements  hereunder  contained and intending to be legally bound, Landlord and
Tenant  agree  to  the  following  conditions:

     1.   The  Lease term shall be extended for three (3) years, which extension
          shall  begin  February  1,  1995  and  expire  on  January  31,  1998.

     2.   Effective  May  15,  1994,  the Premises shall be amended to be 61,402
          square  feet,  and Tenant shall lease the Premises, as amended herein,
          in  its  "as  is"  condition.

     3.   Minimum  Rent  from May 5, 1994 to January 31, 1995 shall be increased
          from  Four  Hundred  Forty  One  Thousand,  Three  Hundred  and  Five
          ($441,305.00)  Dollars, per year, to Five Hundred Thirty One Thousand,
          Eight  Hundred  Eighty One ($531,881.00) Dollars, per year, payable in
          monthly  installments  in  accordance with the terms and conditions of
          the  Lease.

     4.   Minimum  Rent  from February 1, 1995 to January 31, 1998 shall be Four
          Hundred  Thousand,  One  Hundred  Thirty One Dollars ($400,131.00) per
          year,  fixed  until  the  expiration  of  the  term as amended herein,
          payable  in  monthly  installments  in  accordance  with  the  Lease.

<PAGE>
     5.   Effective  May  15,  1994, Proportionate Share as defined in Paragraph
          33(f)  of  the  Lease,  shall  be  amended  to  be  31.57%.

     6.   The  Elevator  Credit  found  in  paragraph  3(c) shall be eliminated.

     7.   Paragraph  37  shall  be  eliminated.

     8.   Environmental  Matters.
          ----------------------

          (a)  Tenant  shall  not  engage  in  operations  at the Premises which
          involve  the  manufacture,  refining,  disposal,  or  transportation
          activities  with  respect  to  "hazardous  substances" as such term is
          defined  under  the Comprehensive Environmental Response, Compensation
          and  Liability Act ("CERCLA"), as amended, 42 US 9601 et seq. Landlord
          and Tenant agree that, incidental to operations conducted by Tenant at
          the  Premises,  Tenant  may  generate,  treat,  store  and/or  handle
          hazardous  substances,  including  raw  materials.  Tenant  agrees  to
          conduct  such  activities  in  compliance  to  all applicable laws and
          regulations.  As  of  June  1, 1994, Landlord acknowledges that Tenant
          generates  various  amounts of waste lab chemicals, isopropanol, waste
          oils,  and  waste  silver,  incidental to performing operations at the
          Premises,  and  that  Tenant  will continue to generate, treat, store,
          and/or  handle  those  or  other  wastes  in  conjunction  with  its
          manufacturing  operations.

          (b)  In the event there occurs a discharge of any hazardous substance,
          Tenant  shall  promptly  give  Landlord  notice  thereof  and  shall
          thereafter proceed with diligence to remediate the discharge and clean
          up  the  Premises to regulatory levels. If reasonably indicated by the
          presence  of hazardous substances on the Premises, which are caused by
          Tenant,  Landlord  may  require,  at  Tenant's  expense,  reasonable
          inspections  and  testing of the Premises  by Landlord's environmental
          consultant  in  order  to  assure  that  the  Premises  do not contain
          hazardous  substances  in  violation  of  applicable  law.

     (c)  This Article shall survive the expiration or sooner termination of the
          Lease.

     9.   Landlord  shall  contribute  Twenty  Thousand  ($20,000.00) Dollars to
          Tenant  for  Capital  Improvements to the Premises, which shall be due
          Tenant  upon  substantial  completion  of  said  Capital Improvements.
          Should  Landlord  fail  to pay said $20,000.00 to Tenant within thirty
          (30)  days  after  notice  from Tenant, Tenant shall have the right of
          offset  with  respect  to  the next (or any succeeding) monthly rental
          payment  due  Landlord.

                                        2
<PAGE>
     10.  Each  party  in exercising discretion afforded to it under the various
          provisions  of  the Lease shall be reasonable. Where consent of either
          party  is  contemplated,  such consent will not unreasonably withheld.
          Each  party  will  have  a good-faith duty to take reasonable steps to
          mitigate  its  respective  damages.

     11.  Documents,  statements  or  certificates as required to be provided by
          Tenant  shall  be  in  a  form  reasonably  acceptable  to  Tenant.

     12.  Each  party  shall  be  responsible  for  its  own  negligent  acts or
          omissions,  including  those  of  its  respective  employees,  agents,
          contractors  and  sub-contractors, consistent with Paragraph 18 of the
          Lease.

     13.  If  Tenant is not then default, TENANT shall have the option to extend
          the  Lease  for  an additional term of two (2) years by giving written
          notice  to  OWNER.  Rental  during the extension shall be Four Hundred
          Twenty Four Thousand, One Hundred Thirty Eight ($424,138.00) per year,
          payable  in  monthly  installments  according  to  the  Lease.

          In  order  to  exercise  this  option,  TENANT must give OWNER written
          notice  one  hundred eighty (180) days prior to the expiration date of
          the  lease  term.

     14.  All  other  terms  and conditions of this Lease Agreement shall be and
          remain  in  full  force  and  effect during any extension of the Lease
          Agreement.

     IN  WITNESS  WHEREOF, the parties hereto have executed this Agreement under
seal  the  day  and  year  first  above  written.

                                             LANDLORD:

ATTEST:                                      SEMEX,  INC.

/s/  Nancy B. Cox                            By:  /s/
--------------------------------                --------------------------------
(Asst.)  Secretary                              (Vice)  President

                                             Tenant:

ATTEST:                                      AMP  INCORPORATED

/s/  David  F. Henschel                      By:  /s/  William J. Hudson,  Jr.
--------------------------------                --------------------------------
David  F. Henschel, Secretary                   William J. Hudson,  Jr.,
                                                Chief Executive Officer

                                        3
<PAGE>
                                 SECOND AMENDMENT
                                 ----------------
                                       TO
                                       --
                               AGREEMENT OF LEASE
                               ------------------

     THIS  SECOND AMENDMENT is made  this  20  day of  NOV , 1995 by and between
                                          ----        -----
SEMEX,  INC.,  a  wholly  owned subsidiary of Seton Company ("Landlord") and AMP
INCORPORATED  ('Tenant").

                                   WITNESSETH:

     WHEREAS,  Pennwalt  Corporation,  as  tenant has entered in a certain lease
agreement  with  Semex, Inc., dated May 20, 1986 for approximately 41,274 square
feet  of  space at 950 Forge Avenue, Norristown, Pennsylvania (the "Lease"); and

     WHEREAS,  said  tenant  has,  in  accordance  with the Lease, exercised its
option  to  extend  the  Lease  for  five  years;  and

     WHEREAS, said tenant has assigned its interests in the Lease to Elf Atochem
Sensors,  Inc.,  which  assignment  was  consented to by Landlord on October 24,
1990;  and

     WHEREAS,  Elf  Atochem Sensors, Inc., as tenant, has assigned its interests
in  the Lease to AMP Incorporated, which assignment was consented to by Landlord
on  February  19,  1993;  and

     WHEREAS,  the  Lease  was  amended  by  the terms of the First Amendment to
Agreement  of Lease, between Landlord and Tenant, dated October 18, 1994 ("First
Amendment");  and

     WHEREAS,  Landlord  and  Tenant  desire  to  amend  the Lease and the First
Amendment.

     NOW  THEREFORE,  in  consideration of the mutual covenants, conditions, and
agreements  hereunder contained, and INTENDING TO BE LEGALLY BOUND, Landlord and
Tenant  do  hereby  agree  as  follows:

1.   First  Amendment  Option to Extend: Lease Term. Notwithstanding anything to
     ----------------------------------------------
     the  contrary  contained in the Lease or the First Amendment, the following
     provisions  shall  govern:

     (a)  Tenant  hereby  exercises its option to extend the Lease in accordance
          with  the  terms and conditions of the option found in Paragraph 13 of
          the  First  Amendment.

<PAGE>
     (b)  Tenant  and Landlord further agree to extend the term of the Lease for
          one  (1)  additional  year  beyond  the  option to extend described in
          Paragraph  1(a)  above,  so  that  the Lease, as amended herein, shall
          expire  on  January  31,  2001.

2.   Minimum  Rent. Minimum Rent from February 1, 1998 to January 31, 2001 shall
     -------------
     be  increased  from  Four  Hundred  Thousand  One  Hundred  Thirty-one
     ($400,131.00)  Dollars  per  year  to Four Hundred Twenty-four Thousand One
     Hundred  Thirty-eight  ($424,138.00)  Dollars  per  year,  fixed, until the
     expiration  of  the  term  as  amended  herein,  payable  in  equal monthly
     installments  in  accordance  with  the  Lease.

3.   Option To Extend. Notwithstanding anything to the contrary contained in the
     ----------------
     Lease  or  First  Amendment,  the  following  provisions  shall  govern:

     (a)  Provided  Tenant  is not then in material default of the Lease, Tenant
          shall have the option to extend ("Option To Extend") the Lease for one
          (1)  additional term of two (2) years from February 1, 2001, by giving
          Landlord  written  notice  no  less than one hundred eighty (180) days
          prior  to  January  31,  2001.

     (b)  Minimum Rent for the Option To Extend term set forth in Paragraph 3(a)
          above,  shall  be  Four  Hundred  Fifty-five  Thousand  Nine  Hundred
          Forty-eight  and 35/100 ($455,948.35) Dollars per year, fixed, payable
          in  equal  monthly  installments  in  accordance  with  the  Lease.

     (c)  In  the event Tenant shall not exercise the Option To Extend described
          in  Paragraph  3(a)  above,  Tenant shall then pay Landlord Forty-five
          Thousand  Four  Hundred  ($45,400)  Dollars.  If due and owing, Tenant
          shall  make  the  payment required under this subparagraph in a single
          payment  on  or  before  February  10,  2001.

4.   Capital  Improvements. Landlord has received construction drawings prepared
     ---------------------
     by Lockwood Greene Co. from Tenant, detailing Tenant's planned alterations,
     improvements  and  additions ("Capital Improvements") to the Premises; and,
     the  complete  list  of  construction  drawings  received  by  Landlord, is
     attached  to  this  Second  Amendment,  and  made part hereof as Exhibit A.

     Notwithstanding anything to the contrary in the Lease, Landlord consents to
     those  Capital  Improvements contained in the list of construction drawings
     found  in  Exhibit  A,  subject  to  the  following  terms  and conditions:

     (a)  The  terms  and  conditions  found  in  a letter from Seton Company to
          Tenant,  dated  June  7,  1995,  and  attached hereto as Exhibit B and
          incorporated

                                        2
<PAGE>
          herein  by  reference,  which includes, without limitation, Landlord's
          reservation  of  its  right,  in  accordance  with Paragraph 11 of the
          Lease,  to  request  that  Tenant remove Tenant's Capital Improvements
          upon  expiration  of  the  Lease.

     (b)  Tenant  acknowledges  and  agrees  that  Landlord  has  not  evaluated
          Tenant's construction drawings nor design specifications, to determine
          whether or not Tenant's Capital Improvements may impair the structural
          strength  of or overtax any of the mechanical systems of the Premises,
          or Building C; and, Tenant agrees that it shall be responsible for any
          and  all  costs to repair any damage to said structural and mechanical
          systems  which  occur  as  a  result of Tenant's Capital Improvements.

     (c)  Landlord  shall  not  be  responsible for any repair or maintenance of
          Tenant's  Capital  Improvements.

5.   Capital  Improvements  Contribution.  Including  the  Twenty  Thousand
     -----------------------------------
     ($20,000.00)  Dollar contribution due Tenant under Paragraph 1 of the First
     Amendment  to  the  Lease,  Landlord  agrees  to  contribute a total of One
     Hundred  Twenty  Thousand  ($120,000.00)  Dollars  ("Capital  Improvements
     Contribution")  to  the  cost of Tenant's Capital Improvements. The Capital
     Improvements  Contribution shall be delivered to Tenant on or before thirty
     (30)  days  from  the  execution  of  this  Second  Amendment.

6.   Broker.  Landlord's broker in Paragraph 30 of the Lease shall be changed to
     ------
     be  The  Burns  Company.

7.   Miscellaneous.
     -------------

     (a)  The  Lease,  the  First Amendment and this Second Amendment constitute
          the entire agreement of the parties with respect to the subject matter
          thereof and supersedes any prior or contemporaneous representations or
          agreements  not  contained  therein.

     (b)  All  of  the  terms  of  the Lease, except as expressly amended by the
          First  Amendment and this Second Amendment, shall remain in full force
          and  effect hereafter, and are hereby ratified, approved and confirmed
          in  all  respects  by  each  of  the  parties.

     (c)  In  the  case  of  conflicts  between  the  provisions  of  the  First
          Amendment, this Second Amendment and/or the original provisions of the
          Lease,  the  provisions  of this Second Amendment, the First Amendment
          and  the  Lease,  in  that  order,  shall  control.

                                        3
<PAGE>
     (d)  No provision of this Second Amendment may be waived or modified except
          to  the  extent expressly done so in writing signed by the party to be
          bound  thereby.

     (e)  The Lease and the First Amendment are incorporated herein by reference
          thereto,  as  if  set  forth  at  length in this Second Amendment. All
          capitalized  terms used but not defined in this Second Amendment shall
          have  the  same  meaning as assigned to such terms in the Lease or the
          First  Amendment,  as  applicable. The term "Lease" and all references
          thereto,  or  to any portion thereof, as utilized in the Lease or this
          Second  Amendment,  shall  mean  and  refer  to  the  Lease as revised
          pursuant  to  the  First  Amendment  and  this  Second  Amendment.

     (f)  This Second Amendment will only be binding upon the Landlord if Tenant
          executes  a  copy  of this Second Amendment and returns a fully signed
          copy  of  this  Second  Amendment  to  Landlord  by 5:00 p.m., EST, on
          __________,  1995,  time  being  of  the  essence.

     IN  WITNESS WHEREOF, the parties hereto have executed this Second Amendment
under  seal  the  day  and  year  first  above  written.

                                             LANDLORD:

ATTEST:                                      SEMEX,  INC.

/s/  Kathryn  A. Heuer                       By:  /s/
--------------------------------                --------------------------------
                                                (Vice)  President

                                             Tenant:

ATTEST:                                      AMP  INCORPORATED

/s/  David  F. Henschel                      By:  /s/  Javad  K.  Hassan
--------------------------------                --------------------------------
David  F. Henschel, Secretary                   Javad  K.  Hassan
                                                President

<PAGE>
                                    EXHIBIT A
                                       TO
                                SECOND AMENDMENT

The  following were prepared by Lockwood Greene, Planners, Engineers, Architects
and  Managers,  Spartanburg,  South  Carolina.

Specifications
--------------

     Dated:         4.18.95

     Titled:        Amp,  Flexible  Films  Products
                    Group,  Piezo  Film  Sensors,
                    Norristown  PA.
                    Project  Manager  Manual,  Facility
                    modifications  Amp  Bldg.  #261.

Drawings
--------

     Titled:        Amp,  Flexible  Films  Products
                    Group, Piezo Film Sensors,
                    Norristown  PA.
                    Project  Manager  Manual,  Facility
                    modifications  Amp  Bldg.  #261.

ARCHITECTURAL                                                   DATED
-------------                                                   -----

A-1            Notes & Abbreviations                           4.18.95
A-2            Composite Ground Floor Plan                     4.18.95
A-3            Composite Second Floor Plan                     4.18.95
A-4            Roof Plan & Roof Details                        4.18.95
A-5            Ground Floor Plan                               4.18.95
A-6            Ground Floor Plan Area B                        4.18.95
A-7            Second Floor Plan Area A                        4.18.95
A-8            Reflected Ceiling, Floor Plan Area A            4.18.95
A-9            Reflected Ceiling Plan - Ground Floor Area B    4.18.95
A-10           Reflected Ceiling Plan - Second Floor - Area A  4.18.95
A-11           Finish & Door Schedule                          4.18.95
A-12           Miscellaneous Sections & Details                4.18.94

<PAGE>
                                    EXHIBIT A
                                       TO
                                SECOND AMENDMENT

HEATING, VENTILATING, AIR CONDITIONING             DATED
--------------------------------------             -----

HV-1     Abbreviations, Legends, Symbols & Notes  4.18.95

HV-2     Ground Floor Plan Area B                 4.18.95

HV-3     Ground Floor Plan Area A                 4.18.95

HV-4     Upper Level Plan Area B                  4.18.95

HV-5     Upper Level Plan Area A                  4.18.95

HV-6     Roof Plan                                4.18.95

HV-7     Sections                                 4.18.95

HV-8     Details                                  4.18.95

HV-9     Schedules                                4.18.95

PLUMBING & MECHANICAL                         DATED
---------------------                         -----

M-1       Ground Floor Area B               4.18.95

M-2       Ground Floor Area A               4.18.95

M-3       Upper Level Area B                4.18.95

M-4       Upper Level Area A                4.18.95

                                        2
<PAGE>
                                    EXHIBIT A
                                       TO
                                SECOND AMENDMENT

ELECTRICAL                                          DATED
----------                                          -----

E-1         Legend & Luminaire Schedule            4.18.95

E-2         Demolition Plan Ground Floor           4.18.95

E-3         Demolition Plan Second Floor           4.18.95

E-4         Lighting Plan - Ground Floor Area A    4.18.95

E-5         Lighting Plan - Ground Floor Area B    4.18.95

E-6         Lighting Plan - Second Floor Area A    4.18.95

E-7         Power Plan - Second Floor Area B       4.18.95

E-8         Power Plan - Ground Floor Area A       4.18.95

E-9         Power Plan - Ground Floor Area B       4.18.95

E-10        Power Plan - Second Floor Area A       4.18.95

E-11        Power Plan - Roof                      4.18.95

E-12        Panel Board Schedules                  4.18.95

E-13        Auxiliary Systems Ground Floor Ara A   4.18.95

E-14        Auxiliary Systems Ground Floor Area B  4.18.95

E-15        Auxiliary Systems Second Floor Area A  4.18.95

E-16        Auxiliary Systems Second Floor Area B  4.18.95

E-17        Auxiliary Systems Details              4.18.95

Initials:/s/                            /s/
         ---------                      ----------
         AMP, Inc.                      Semex

                                        3
<PAGE>
                                    EXHIBIT B
                                       TO
                                SECOND AMENDMENT

S E T 0 N
          SETON COMPANY - 2500 Monroe Boulevard - Norristown, Pennsylvania 19408
                          Phone  (610) 666-9600  Telecopier  (610) 666-1088
                          Telex 887941

June 7, 1995

Ms.  Kelley  Giannetti
Cost Analyst
Plaza  Film  Sensors
AMP,  Inc.
P.O.  Box  799
Valley  Forge,  PA  19482

RE:   DRAWING  REVIEW
      950  FORGE  AVENUE
      NORRISTOWN,  PA

Dear Kelley:

Semex,  Inc.  has  received  end reviewed the construction drawings shown in the
attached  AMP  Drawings  List  for  planned  improvements  to  the  Forge Avenue
facility.

In  accordance with Paragraph 11 of AMP, Inc.'s lease with Semex, Inc., Semex is
prepared  to provide its prior written consent for the improvements shown in the
AMP  Drawings  List,  subject  to  the  following  conditions:

1.   Semex's  roof  maintenance  contractor  shall have the right to inspect the
     HVAC  curbs  and flashing, as well as the treatment of any other roof cuts,
     prior  to  final  acceptance.

2.   AMP  shall  be  responsible for all roof damage during construction, and be
     required  to  repair  all  roof  leaks  while  construction is in progress.

3.   AMP  shall  install  walking pads or other similar traffic bearing material
     along  delineated  access  paths  used  to service the newly installed HVAC
     units.

4.   The proposed ground level HVAC condensing unit for CRU #1 shall be screened
     with natural planting materials, and placed to permit snow plowing and snow
     stacking.

5.   All  new  and  re-tubed  existing  light fixtures shall be tagged inside to
     indicate  correct  type  of  replacement  bulbs  required.

<PAGE>
Kelley  Giannetti
June  7,  1995
Page  2

6.   AMP  shall  obtain  all  required  building  permits prior to construction.

7.   AMP  shall provide Semex with a written statement from the project's design
     engineers  stating  that,  after  review,  they  have  determined  that the
     existing  electrical  service,  including  feeder,  primary  disconnect and
     transformer are adequate for AMP'S intended purposes, and will meet current
     codes  under  new  loads.

In  addition,  along with the prior consent, Semex reserves the right to request
the  removal  of  any  alteration,  improvements and additions at the end of the
lease.

Sincerely.

/s/  Kathryn  A.  Heuer
Kathryn  A.  Heuer
Insurance  Administrator

cc:  Perry  Trechak
     Bill  Burns

<PAGE>
                               ASSIGNMENT OF LEASE
                               -------------------

     This  Agreement,  effective  the  14TH day of August, 1998, is entered into
                                      -----        ------
between  AMP  Incorporated,  a  corporation  organized  under  the  laws  of the
Commonwealth  of  Pennsylvania  having  its  principal  place of business at 470
Friendship Road, Harrisburg, Pennsylvania, 17111, referred to as "Assignor", and
Measurement  Specialties,  Inc.,  a  corporation organized under the laws of the
State  of  New Jersey, having its principal place of business at 80 Little Falls
Road,  Fairfield,  New  Jersey,  07004,  referred  to  as  "Assignee."

                                    RECITALS
                                    --------

     The  parties  recite  and  declare:

     A.     Assignor  entered  into a lease agreement described below, as Tenant
for  a  term  that  extends  to  January  31,  2001.

     B.     Assignee  desires  to  assume the rights, liabilities, and duties of
Assignor  in  the  lease  agreement.

     In  consideration  of the mutual covenants contained in this Agreement, the
parties  agree  as  follows:

     1.     Assignor  does  grant,  convey,  and  assign  to Assignee all of its
rights  as Tenant in the lease agreement originally entered into on May 20, 1987
by  Semex  Inc.,  a  wholly  owned  subsidiary of Seton Company ("Landlord") and
Pennwalt  Corporation ("Tenant"),  as  amended  on  October  18, 1994 by a First
Amendment  in  which  AMP Incorporated was named as Tenant, having been assigned
its  interest  as  Tenant by assignments previously approved by Landlord, and as
further  amended  on  November  20,  1995  by a Second Amendment also naming AMP
Incorporated  as  Tenant  (which  agreements are collectively referred to as the
"Lease"),  demising  premises known as Building B, 950 Forge Avenue, Norristown,
Pennsylvania  19403,  containing  approximately  61,402  square  feet  as  more
particularly  described  by metes and bounds in Exhibit B to the original Lease.

     2.     Assignee shall have the demised premises during all the remainder of
the  term  of  the  Lease,  and  any renewals or extensions of the Lease, to the
extent, if any, provided in the Lease, and shall abide by the terms of the Lease
and  assume  all  obligations  and  responsibilities of Tenant provided therein.

     3.     Neither  this  Agreement nor the acceptance of rent by Landlord from
Assignee  pursuant  to  this assignment shall release, relieve, or in any manner
modify  the  obligations  and  liabilities  of  Assignor  under  the  terms  and
conditions  of  the  Lease, all of which obligations and liabilities of Assignor
shall  remain  in  force  notwithstanding  this  assignment.

<PAGE>
     4.     Assignee  accepts the assignment made in this instrument and assumes
the  liability  and duty to perform all of the terms and conditions of the Lease
on  the  part  of  the  Assignor  to  be  performed.

     5.     A true, correct and complete copy of the Lease and all modifications
thereto  are  attached  to  this  Assignment, there have been no oral or written
amendments  to  or modifications of the Lease except for the written amendments,
if  any, that are attached hereto, and the Lease represents the entire Agreement
between  Landlord  and  Assignor  regarding  the  Premises.

     6.     The  term  of  the Lease is scheduled to expire on January 31, 2001.

     7.     As  of  the  date hereof, the minimum rent owing for the Premises is
$424,138.00  per year, fixed, until the expiration of the term, payable in equal
monthly  installments,  plus additional rent for Assignee's proportionate  share
of  operating  expenses,  as  set  forth  in  Section  6  of  the  Lease.

     8.     To  Landlord's knowledge, there are no defaults under the Lease, but
Landlord  has  not  made  any investigation or inquiry to ascertain defaults and
therefore  reserves all rights to assert any default that may be found to exist.

     9.     If  Assignor  or  Assignee  employs  an agent in connection with any
sublease  or  further  assignment  involving  all  or  any portion of the leased
premises, they will employ for such purposes the real estate agent stipulated by
Landlord.

     10.    All  alterations,  improvements or additions to the Premises made by
Assignor  have been  approved  by  the  Landlord.

     11.    All  capitalized  terms not  otherwise defined herein shall have the
meaning  ascribed  to  them  in  the  Lease.

     In  witness  whereof and intending to be legally bound, each party to this
assignment has caused it to be executed under seal as of the date above written.

                                          ASSIGNOR
                                          AMP  INCORPORATED

Attest:  /s/                              By:  /s/                       (Seal)
       ----------------------                ----------------------------
                                          James R. Malley, Chairman of the Board

                                          ASSIGNEE
                                          MEASUREMENT  SPECIALTIES,  INC.

Attest: /s/ Kirk J. Dischino              By:  /s/ Joseph R. Mallon, Jr. (Seal)
       ----------------------                ----------------------------

<PAGE>
     The  foregoing  assignment  is  approved by Landlord this 4th day of August
1998.

                                          LANDLORD

Attest:  /s/                              By:  /s/                       (Seal)
       ----------------------                ----------------------------

<PAGE>
                                   MEASUREMENT
                                   SPECIALTIES

July 17, 2000

VIA  FEDERAL  EXPRESS  AND CERTIFIED MAIL
-----------------------------------------

Seton  Company
1000  Madison  Avenue
Norristown,  PA  19403

Attention:  Robert  D.  DeMajistre,  President

Re:    Lease  Renewal

Dear  Mr.  DeMajistre:

Measurement Specialties, Inc. is the current Tenant of certain premises known as
Building  B,  950  Forge  Avenue,  Norristown, Pennsylvania, pursuant to a Lease
Agreement  originally entered into on May 20, 1986 by Semex Inc., a wholly owned
subsidiary  of  Seton  Company,  and Pennwalt Corporation, as amended by a First
Amendment  dated  October 18, 1994 in which AMP Incorporated was named as Tenant
(having  been assigned its interest as Tenant by assignments previously approved
by  Landlord),  and  a  Second  Amendment  dated  November  20,1995 (the "Second
Amendment");  the  tenant's  interest  in  such  Lease,  as  so  amended,  was
subsequently assigned to Measurement Specialties, Inc. by an Assignment of Lease
dated August 14, 1998 between AMP Incorporated and Measurement Specialties, Inc.

Please  be  advised  that,  pursuant  to  Section  3(a) of the Second Amendment,
Measurement  Specialties,  Inc.  is  hereby  exercising its option to extend the
Lease  for  one additional term of two (2) years from February 1,2001 to January
31,2003,  at  a  Minimum  Rent  of  $455,948.35  per  year. The Tenant is not in
material  default  of  the  Lease.

Kindly  indicate your receipt of this letter by signing the enclosed copy in the
space  indicated  below  and  retuning  to  me  at  the  following:

Measurement  Specialties,  Inc
Attn:  Kirk  J.  Dischino
80  Little  Falls  Road
Fairfield,  New  Jersey  07004
Fax  (973)  808-1787

80  Little  Falls  Road
Fairfield,  New  Jersey  07004
Tel:  (973)  808-1819  Fax:  (973)  808-1787
E-mail:  info@msiusa.com
Web site:  www.msiusa.com

<PAGE>LEASE
                            -----

                    TABLE  OF  CONTENTS
                    -------------------

                                                             Page
                                                             ----

         1.  Premises ---------------------------------------   1
         2.  Term and Delivery of Possession ----------------   1
         3.  Rent -------------------------------------------   2
         4.  Security Deposit -------------------------------   3
         5.  Taxes ------------------------------------------   4
         6.  Use --------------------------------------------   5
         7.  Direct Operating Expenses ----------------------   5
         8.  Maintenance and Repairs ------------------------   7
         9.  Alterations ------------------------------------   7
        10.  Mechanics' Liens -------------------------------   9
        11.  Utilities --------------------------------------   9
        12.  Indemnity --------------------------------------   9
        13.  Waiver of Claims -------------------------------   9
        14.  Insurance --------------------------------------  10
        15.  Damage or Destruction --------------------------  12
        16.  Condemnation -----------------------------------  13
        17.  Assignment and Subletting ----------------------  14
        18.  Default by Tenant ------------------------------  15
        19.  Default by Landlord ----------------------------  18
        20.  Advertisements and Signs -----------------------  19
        21.  Entry by Landlord ------------------------------  19
        22.  Subordination and Attornment -------------------  19
        23.  Estoppel Certificates and Financial Statements -  20
        24.  Notices ----------------------------------------  20
        25.  Waiver -----------------------------------------  20
        26.  No Accord and Satisfaction ---------------------  20

<PAGE>
        27.  Attorneys' Fees --------------------------------  21
        28.  Surrender --------------------------------------  21
        29.  Holding Over -----------------------------------  21
        30.  Transfer of Premises by Landlord ---------------  21
        31.  Rules and Regulations of Building --------------  22
        32.  General Provisions -----------------------------  22

EXHIBITS
--------

     Exhibit  "A"     -     Premises

<PAGE>
                                      LEASE
                                      -----

     This Lease, dated January 10, 1986 for reference purposes only, is made and
                       -----------
entered  into  by  and  between  Creekside  Industrial Associates, a partnership
                                 --------------------------------    -----------
("Landlord"), whose address is Creekside Industrial Associates, c/o Hockey Meier
                               -------------------------------------------------
Company,  55  Middlefield Road, #140, Menlo Park, CA 94025, and I. C. Sensors, a
----------------------------------------------------------      -------------
California  Corporation  ("Tenant"), whose present address is 430 Persian Drive,
-----------------------                                       ------------------
Sunnyvale, CA 94086, but from and after the Commencement Date (as defined below)
-------------------
shall  be  the  address  of  the  premises,  which  is  1701 McCarthy Boulevard,
                                                        ------------------------
Milpitas,  CA  94035.
--------------------------------------------------------------------------------

     Landlord  and  Tenant  agree to the terms, covenants and conditions of this
Lease,  as  follows:

     1.     Premises.  Landlord hereby leases to Tenant and Tenant hereby leases
            --------
from  Landlord  for  the  term,  at the rental, and upon all of the other terms,
covenants  and  conditions  set forth herein, all of that property as referenced
                                              ----------------------------------
above  consisting  of  a  building  containing  approximately 33,922 square feet
--------------------------------------------------------------------------------
including  on  site  parking,  situated in the City of Milpitas, County of Santa
----------------------------                           --------            -----
Clara,  State  of  California,  shown  as  Exhibit  "A" attached hereto and more
-----
particularly  described  as  follows:

          PARCEL E as shown on the PARCEL MAP filed for record July 17, 1979, in
          Book  445  of  Maps,  at  pages 51 and 52, Santa Clara County Records.

     The  building  described  above  is  hereafter  called  the  "Building."

     The  portion  of  the Building, or the entire Building, as the case may be,
leased  by  Landlord  to  Tenant  is  hereafter  called  the  "premises."

     The  parcel  of  land  described  above, together with the Building and all
other  improvements  now  or  hereafter  located thereon is hereafter called the
"Project."

     The  portion  of  the  parcel of  land  described  above not covered by the
Building  is  hereafter  called  the  "Outside  Areas."

     Tenant's  Share  as  used  in this Lease means that percentage of the total
number  of  square  feet of leasable space in the Building which is contained in
the  premises,  which  the  parties  agree  is  one  hundred  percent  (100%).
                                                ------------            ----

     2.     Term  and  Delivery  of  Possession.
            -----------------------------------

          2.1  Term.  The  term  of  this  Lease  shall be for sixty months (60)
               -----                                           ------------  --
months,  commencing  on  2/1/86 (the "Commencement Date"), and ending on 1/31/91
                        -------                                          -------
(the  "Expiration  Date"),  unless  sooner terminated pursuant to the provisions
hereof.

          2.2  Delay  in  Delivery  of  Possession.  Notwithstanding  the
               -----------------------------------
Commencement  Date  set forth in Paragraph 2.1 above, if for any reason Landlord
fails  to  deliver  possession  of the premises to Tenant on said date, Landlord
shall  not  be

                                       1.
<PAGE>
liable  to  Tenant  therefor, nor shall failure extend the term hereof or affect
the validity of this Lease or the obligations of Tenant hereunder, except as set
forth  below,  in the event of any delay in delivery of possession, Tenant shall
not  be  obligated  to pay rent or to perform any of its other obligations under
this  Lease,  except for payment of the security deposit pursuant to Paragraph 5
below,  until  possession  of  the  premises is delivered to Tenant.  Subject to
Paragraph  32.14,  if  Landlord  has not delivered possession of the premises to
Tenant  within  ninety  (90)  days  after  the Commencement Date, Tenant may, by
written  notice to Landlord within five (5) days after expiration of said ninety
(90)  day  period,  terminate  this  Lease,  in which event the parties shall be
released  from  all  further  obligations  hereunder.

     2.3  has  been  omitted.

          2.4  Early  Entry.  If  Tenant  is permitted by Landlord to occupy the
               ------------
premises  prior  to the Commencement Date for the purpose of installing fixtures
or  for  any other purpose permitted by Landlord, such entry shall be subject to
all  of  the  terms and provisions hereof, except for the obligation to pay rent
which  shall  commence  on  the  Commencement  Date.

     3.     Rent.
            -----

          3.1  Initial  Base  Rent.  Tenant  shall  pay  to  Landlord  for  each
               -------------------
calendar  month  of  the term of this Lease, monthly base rent (hereafter called
"Base  Rent"),  in  installments  as  follows:

No  rent  shall  be  due for the period February 1, 1986, through July 31, 1986;
and,

$16,961     on  the  first  day  of  each and every month, in advance, beginning
            August  1,  1986,  and  ending  January  31,  1987;  and,

$22,728     on  the  first  day  of  each and every month, in advance, beginning
            February  1,  1987,  and  ending  January  31,  1988;  and,

$24,464     on  the  first  day  of  each and every month, in advance, beginning
            February  1,  1988,  and  ending  January  31,  1989;  and,

$33,922     on  the  first  day  of  each and every month, in advance, beginning
            February  1,  1989,  and  ending  January  31,  1990;  and,

$35,618     on  the  first  day  of  each and every month, in advance, beginning
            February  1,  1990,  and  ending  January  31,  1991.

                                       2.
<PAGE>
          3.2  has  been  omitted.

          3.3     Manner  of  Payment.  Tenant  shall  pay  to Landlord the rent
                  -------------------
calculated  as  set  forth  above  without  deduction, offset, or abatement, and
without  prior  notice  or  demand, in advance on the first day of each calendar
month  of  the term of this Lease.  Rent shall be payable in lawful money of the
United  States to Landlord at the address stated in Paragraph 1 above or to such
other  persons  or  at  such  other  places  as  Landlord  may from time to time
designate  in  writing.  Tenant's  obligation  to pay rent for any partial month
shall  be  pro  rated  on  the  basis  of  a  thirty  (30)  day  month.

          3.4     Late  Payment Charge.  If any installment of rent or any other
                  --------------------
sum  due  from Tenant is not received by Landlord within ten (10) days after the
due  date,  Tenant shall pay to Landlord an additional sum equal to five percent
(5%)  of  the  amount  overdue as a late charge for every thirty (30) day period
that  the  rent  or  other  sum  remains  unpaid.

     4.     Security  Deposit.  Upon  execution  of  this  Lease,  Tenant  shall
            ------------------
deposit with  Landlord in cash the sum of Ten Thousand Dollars ($10,000.00) (the
                                          --------------------  ----------
"Deposit")  as  security  for  the  faithful performance by Tenant of all of its
obligations  hereunder.  If  Tenant  fails  to  pay  rent  or any other sums due
hereunder,  or  otherwise  defaults with respect to any provision of this Lease,
Landlord  may  use,  apply,  or retain all or any portion of the Deposit for the
payment  of  any rent or other sum in default, or to compensate Landlord for the
payment  of any other sum which Landlord may become obligated to spend by reason
of  Tenant's  default,  or  to compensate Landlord for any expenditures, loss or
damage  which Landlord may suffer thereby. If Landlord so uses or applies all or
any  portion  of  the  Deposit,  Tenant shall within ten (10) days after written
demand  therefor  deposit  with Landlord an amount in cash sufficient to restore
the  Deposit  to  the  full  amount  hereinabove  stated.  Landlord shall not be
required  to keep the Deposit separate from its general funds. The Deposit, less
any  portion  thereof  which  Landlord is entitled to retain, shall be returned,
without  payment  of  interest,  to  Tenant (or at Landlord's option to the last
assignee,  if any, of Tenant's interest hereunder) within thirty (30) days after
the  later  of  the  expiration  of the term hereof, or the date on which Tenant
vacates  the  premises.

                                       3.
<PAGE>
     5.     Taxes.
            ------

          5.1     Tenant's  Personal Property.  Tenant shall pay directly to the
                  ----------------------------
charging  authority  prior  to delinquency all taxes assessed against and levied
upon Tenant's leasehold improvements, trade fixtures, furnishings, equipment and
all  other  personal property and merchandise of Tenant situated in or about the
premises.

          5.2    Real Property Taxes.
                 -------------------

               (a)  Commencing  February  1,  1986 Tenant  shall pay to Landlord
Tenant's  Share  of  all  Real Property Taxes (as hereafter defined) levied with
respect to the Project.  Tenant shall pay to Landlord all Real Property Taxes on
or  before  the  alter of (1) ten (10) days prior to delinquency thereof, or (2)
the  date  on  which  Tenant receives a copy of the tax bill or other reasonable
evidence  of the amount Real Property Taxes due and payable by Tenant hereunder.

               (b)  The term "Real Property Taxes" as used herein shall mean (i)
all  taxes,  assessments,  levies,  and  other  charges  of  any  kind or nature
whatsoever,  general  and  special,  foreseen  and  unforeseen  (including  all
installments  of  principal  and  interest  required  to  pay for any general or
special  assessments  for  public  improvements,  services,  or benefits and any
increases  resulting  from  reassessments caused by any change in ownership, new
construction,  or  change  in  valuation),  now  or  hereafter  imposed  by  any
governmental  or  quasi-governmental  authority  or  special district having the
direct  or  indirect  power  to  tax  or  levy  assessments, which are levied or
assessed  against  or  with  respect  to  (a) the value, occupancy or use of the
Project  (as  now  constructed or as may at any time hereinafter be constructed,
altered,  or  otherwise changed), (b) the fixtures, equipment, and other real or
personal  property of Landlord that are an integral part of the Project, (c) the
gross  receipts,  income,  and  rentals  from the Project, or (d) the use of the
Outside Areas, public utilities, or energy within the Project; (ii) all charges,
levies  or  fees  imposed  by  reason  of  environmental  regulation  or  other
governmental  control  of  the  Project;  (iii)  new excise, transaction, sales,
privilege  or  other  tax  now or hereafter imposed upon Landlord as a result of
this  Lease; and (iv) all costs and fees (including attorneys' fees) incurred by
Landlord  in  contesting  any Real Property Taxes and in negotiating with public
authorities  as to any Real Property Taxes. If at any time during the lease term
the taxation or assessment of the Project prevailing as of the Commencement Date
shall  be  altered  so that in lieu of or in addition to any Real Property Taxes
described above there shall be levied, assessed or imposed (whether by reason of
a  change  in  the  method  of  taxation or assessment, creation of a new tax or
charge,  or  any  other  cause)  an  alternate, substitute, or additional tax or
charge (i) on the value, use or occupancy of the Project, (ii) on or measured by
the  gross  receipts,  income,  or  rentals  from  the Project, or on Landlord's
business of leasing the Project, or (iii) computed in any manner with respect to
the  operation  of the Project, then any such tax or charge, however designated,
shall  be  included  within  the  meaning  of the term "Real Property Taxes" for
purposes  of the Lease. If any Real Property Tax is based upon property or rents
unrelated  to the Project, then only that part of such Real Property Tax that is
fairly allocable to the Project shall be included within the meaning of the term
"Real  Property  Taxes."  Notwithstanding the foregoing, the term "Real Property
Taxes"  shall not include estate, inheritance, transfer, gift or franchise taxes
of  Landlord or the federal or state net income tax imposed on Landlord's income
from  all  sources.

               (c)  Tenant's  liability  to  pay  Real  Property  Taxes shall be
prorated on the basis of a 365-day year to account for any fractional portion of
a  fiscal  tax year included in the Lease term at the commencement or expiration
of  the  term.

                                       4.
<PAGE>

               (d)  If  Landlord's  lender  requires  Landlord to pay any or all
Taxes into an impound account on a periodic basis during the term of this Lease,
Tenant,  on notice from Landlord indicating this requirement, shall pay a sum of
money  toward  its liability under Paragraph 5.2 to Landlord on a periodic basis
in  accordance  with  the  lender's  requirements.

     6.     Use.
            ----

          6.1     Permitted  Uses.  The premises shall be used and occupied only
                  ----------------
for  the  following  purposes:  a business engaged in the research, development,
                                ------------------------------------------------
manufacture,  service,  marketing  and  sales  of electronic devices and related
--------------------------------------------------------------------------------
products  and for any lawful purpose incidental thereto, and for no other use or
--------
purpose  without  Landlord's  prior  written  consent.

          6.2     Compliance  with  Law.
                  ----------------------

               (a)  Landlord warrants to Tenant that as of the Commencement Date
the  premises  do  not  violate  any  applicable  building  code,  regulation or
ordinance.

               (b)  Except  as provided in Paragraph 6.2(a), Tenant shall accept
possession of the premises "as is" in their condition existing as of the date of
Landlord's  delivery  of possession thereof to Tenant, subject to all applicable
laws,  ordinances,  codes,  rules,  orders, directions and regulations of lawful
governmental  authority regulating the use or occupancy of the premises, and all
matters  disclosed  by  any  exhibits  attached  hereto  (collectively  called
"regulations").  Tenant,  at  Tenant's  sole expense, shall promptly comply with
all  such  regulations  as  may  now  or  hereafter  be in effect relating to or
affecting  the  condition,  use or occupancy of the premises, except that Tenant
shall  not  be  required  to make changes to structural elements of the premises
which  are  not  directly  affected  by  Tenant's  improvements to or use of the
premises.

          6.3     Restrictions  on  Use.  Tenant shall not use or permit the use
                  ----------------------
of  the premises in any manner that will tend to create waste on the premises or
constitute  a  nuisance  to  any  other  occupant or user of the Building or any
adjoining  building.  Tenant  shall  not  use  any apparatus, machinery or other
equipment in or about the premises that may cause substantial noise or vibration
or  overload  existing  electrical systems, or otherwise place any unusual loads
upon  the  floors,  walls  or  ceilings  of  the premises which may overload the
premises  or  jeopardize  the  structural  integrity of the Building or any part
thereof.  Tenant  shall not make any penetrations of the roof or exterior of the
Building  without  the  prior  written  approval  of  Landlord.  No materials or
articles  of  any  nature  shall be stored upon any portion of the Outside Areas
unless  located within an enclosure approved by Landlord. Tenant shall not cause
or  permit  any  toxic  wastes  or  by-products or other harmful chemicals to be
discharged  into  the plumbing or sewage system of the Building or onto the land
underlying or adjacent to the Building. Tenant shall neutralize, by filtering or
otherwise,  all  acidic,  oily  or  otherwise toxic fumes or wastes generated by
tenant's  activities  on  the  premises.

          6.4  has  been  omitted.

     7.     Direct  Operating  Expenses.
            ----------------------------

          7.1     Landlord  to  Maintain  and  Control  Outside Areas.  Landlord
                  ---------------------------------------------------
shall  maintain the Outside Areas, together with all facilities and improvements
now  or

                                       5.
<PAGE>
hereafter  located  thereon,  and together with all street improvements or other
improvements  adjacent  thereto  as  may  be  required  from  time  to  time  by
governmental  authority.  The manner in which such areas shall be maintained and
the expenditures therefor shall be at the sole discretion of Landlord.  Landlord
shall  at  all  times have exclusive control of the Outside Areas and may at any
time  temporarily  close  any part thereof, may exclude and restrain anyone from
any  part  thereof  (except  the  bona fide customers, employees and invitees of
Tenant  who  use  the Outside Areas in accordance with the rules and regulations
that  Landlord  may  from  time to time promulgate), and Landlord may change the
configuration of the Outside Areas or the location of facilities thereon so long
as any such change by Landlord does not unreasonably interfere with Tenant's use
of  the  premises.  Landlord  shall  also be entitled to employ third parties to
operate  and maintain all or any part of such areas on such terms and conditions
as  Landlord  shall  in  its  sole  discretion  deem reasonable and proper.  The
surface  parking facilities shall be available for the automobiles of Tenant and
Tenant's  customers,  employees  and  invitees  on a non-assigned, non-exclusive
basis.  In  exercising  any such rights, Landlord shall make a reasonable effort
to  minimize  any  disruption  of  Tenant's  business.

          7.2     Tenant  to  Pay.  Tenant  shall  pay  Tenant's  Share  of such
                  ---------------
reasonable  costs  and  expenses  as  may  be  paid  or  incurred by Landlord in
maintaining,  operating  and repairing the Outside Areas and such adjacent areas
referred  to  in Paragraph 7.1 (hereinafter referred to as the "Direct Operating
Expenses")  during  the  term  of this lease.  The Direct Operating Expenses may
include,  without  limitation,  dues  payable  by Landlord for membership in any
property  owners association formed for the benefit of the Project, and the cost
of  labor,  materials,  supplies  and  service  used or consumed in maintaining,
operating and repairing the Outside Areas and such adjacent areas referred to in
Paragraph  8.1,  including  without  limitation,  the following: (a) landscaping
maintenance  and  replacement;  (b) cleaning and repairing concrete walkways and
patios;  (c)  sweeping  and  repairing  paved  parking  areas; (d) operating and
maintaining  the  parking and landscaping pole lighting, if any; (e) maintaining
all  directional  and  security signs; (f) furnishing water for landscaping; (g)
pest  control service (exterior only); (h) security patrol service (if any); and
(i)  rental  or  depreciation  on  maintenance  and  operating  machinery.

          7.3     Monthly  Payments.  Commencing  February  1, 1986 Tenant shall
                  -----------------
pay  to  Landlord on the first day of each calendar month during the twelve (12)
month  period immediately following the Commencement Date an amount estimated by
Landlord  to  be  one-twelfth of Tenant's Share of the Direct Operating Expenses
for  such  twelve  (12)  month  period.  Landlord  estimates that one-twelfth of
Tenant's  Share  of  the  Direct  Operating Expenses for the initial twelve (12)
month  period  will be Four Hundred Dollars ($400.00).  During each one (1) year
                       ------------------------------
period  after the initial year following the Commencement Date, Tenant shall pay
to  Landlord  on  the  first  day  of  each  calendar  month  thereof in advance
one-twelfth  of  Tenant's  Share  (to  the  nearest  $5.00) of the actual Direct
Operating  Expenses  for  the  one  (1)  year  period immediately prior thereto.
Within  sixty  (60)  days following the end of each calendar year Landlord shall
furnish  Tenant  a statement covering the calendar year and the payments made by
Tenant  with  respect  to  such  period  as  set forth in the Paragraph 7.3.  If
Tenant's  payments  for  said Direct Operating Expenses did not equal the actual
amount  of  said  Direct  Operating  Expenses,  Tenant shall pay to Landlord the
deficiency  within  ten  (10)  days  after  receipt  of such statement.  If said
payments  exceed  the  actual  Direct  Operating Expenses, Landlord shall either
credit  the  excess  against  payment  next thereafter to become due to Landlord
pursuant  to  this  Paragraph  7.3,  or refund the amount of the overpayments to
Tenant,  in  cash,  as Landlord shall elect.  Direct Operating Expenses shall be
prorated as of the Commencement Date and the Expiration Date (or the date of any
sooner  termination  of  the  term of this Lease ) to reflect the portion of the
calendar  year  occurring  within  the  lease  term.

                                       6.
<PAGE>
     8.     Maintenance  and  Repairs.
            --------------------------

          8.1     Tenant's  Obligations.  Except  as  provided  in  Paragraphs
                  ----------------------
6.2(a),  8.2,  15,  and  16, Tenant shall, at Tenant's expense, keep in good and
safe  condition, order and repair the premises and every part thereof, including
without  limitation,  all plumbing, heating, air conditioning, ventilating, fire
sprinklers,  electrical  and  lighting  facilities,  systems,  appliances,  and
equipment  within  the  premises; fixtures, interior walls, interior surfaces of
exterior  walls,  floors,  ceilings,  windows,  doors,  entrances,  all  glass
(including  plate  glass),  and  skylights  located  within the premises. Tenant
shall,  at Tenant's expense, maintain in full force at all times during the term
of  this  Lease  a  heating,  ventilating  and air conditioning ("HVAC") systems
preventive maintenance contract with a qualified service company satisfactory to
Landlord  covering  all HVAC systems servicing the premises, which shall provide
for  and  include  without  limitation  replacement  of  filters,  oiling  and
lubricating  of  machinery,  parts  replacement,  adjustment of drive belts, oil
changes,  weather  proofing  of  all exposed HVAC equipment and ducts, and other
preventive maintenance; provided, however, that Tenant shall have the benefit of
all  warranties  available  to Landlord regarding the equipment in said systems.
Said  contract  shall  call for periodic servicing no less than every sixty (60)
days. Tenant shall provide for the periodic washing of all such windows at least
once every ninety (90) days during the Lease term. Tenant shall furnish Landlord
with copies of all such service contracts, which shall provide that they may not
be  cancelled  or changed without at least thirty (30) days prior written notice
to  Landlord.  All  repairs required to be made by Tenant shall be made promptly
with  new  materials  of  like  kind and quality. If the repair work affects the
structural  parts of the Building, or if the estimate cost of any item of repair
exceeds  $1,000,  then  Tenant shall first obtain Landlord's written approval of
the  scope  of  work,  plans therefor, materials to be used, and the contractor.
Tenant  hereby  waives  the  benefit of any statute now or hereinafter in effect
which  would  otherwise  afford  Tenant  the right to make repairs at Landlord's
expense  or  to  terminate  this Lease because of Landlord's failure to keep the
premises  in  good  condition,  order and repair. Tenant specifically waives all
rights  it  may  have  under  Sections 1932(1), 1941, and 1942 of the California
Civil  Code,  and  any  similar  or  successor  statute  or  law.

          8.2     Landlord's  Obligations.  Landlord  shall,  at  Landlord's
                  -----------------------
expense,  keep  in  good condition, order and repair the foundation and exterior
walls  of the Building (excluding the interior of all walls and the exterior and
interior  of  all windows, doors, plate glass, and show cases), and the exterior
roof  of  the  Building (except that Tenant shall repair at Tenant's expense any
damage  caused  by Tenant's activities on the roof, including but not limited to
the  installation  of air conditioning equipment and/or duct work, or other roof
penetrations,  and  improper flashing or caulking, and any damage to exposed air
conditioning  equipment  and  duct-work  installed  by or for Tenant).  Landlord
shall  exercise  reasonable  diligence  in  performing  such  repairs as soon as
practicable.  However,  Landlord  shall have no obligation to make repairs under
this  Paragraph  8.2 until a reasonable time after Landlord's receipt of written
notice  from  the  Tenant  of  the  need  for such repairs.  Except as otherwise
specifically  provided herein, there shall be no abatement of rent or other sums
payable  by  Tenant  prior  to  or  during  any  repairs  by Tenant or Landlord.

     9.     Alterations.
            ------------

          9.1     Landlord's  Consent  Required.  Tenant  shall  not,  without
                  -----------------------------
Landlord's prior written consent, which shall not be unreasonably withheld, make
any alterations, improvements, additions, or utility installations (collectively

                                       7.
<PAGE>
called  "alterations")  in,  on  or about the premises, except for nonstructural
alterations  which in the aggregate do not exceed Ten Thousand Dollars ($10,000)
in  cost with written notification to Landlord describing said alternations.  As
used  in this Paragraph 9.1, the term "utility installation" means power panels,
wiring,  florescent  fixtures,  space  heaters,  conduits,  air conditioning and
plumbing.  Prior  to  construction  or installation of any alterations, Landlord
may  require  Tenant  to  provide  Landlord,  at  Tenant's  expense,  a lien and
completion  bond in an amount equal to one and one-half times the estimated cost
of such alterations, to insure Landlord against any liability for mechanic's and
materialmen's  liens and to insure completion of the work.  Should Tenant make
any  alterations  without  the  prior  written consent of Landlord, Tenant shall
immediately  remove  the  same  at  Tenant's  expense  upon  demand by Landlord.

          9.2     Plans and Permits.  Any alteration that Tenant shall desire to
                  -----------------
make  in  or about the premises and which requires the consent of Landlord shall
be  presented  to  Landlord  in  written  form, with proposed detailed plans and
specifications  therefor  prepared  at  Tenant's  sole  expense.  Any consent by
Landlord  thereto  shall  be deemed conditioned upon Tenant's acquisition of all
permits  required  to  make  such  alteration  from all appropriate governmental
agencies,  the furnishing of copies thereof to Landlord prior to commencement of
the  work, and the compliance by Tenant with all conditions of said permits in a
prompt and expeditious manner, all at Tenant's sole expense.  Upon completion of
any such alteration, Tenant, at Tenant's sole cost, shall immediately deliver to
Landlord  "as-built"  plans  and  specification  therefor.

          9.3     Construction  Work  Done  by  Tenant.  All  construction  work
                  ------------------------------------
required  or  permitted  to  be  done by Tenant shall be performed by a licensed
contractor  in  a  prompt,  diligent,  and good and workmanlike manner and shall
conform  in quality and design with the premises existing as of the Commencement
Date,  and  shall  not diminish the value of the Building. In addition, all such
construction work shall be performed in compliance with all applicable statutes,
ordinances,  regulations,  codes  and  orders  of  governmental  authorities and
insurers  of  the  premises.  Tenant or its agents shall secure all licenses and
permits  necessary  therefor.

          9.4     Roof  Repairs.  All installation of air conditioning equipment
                  -------------
and  duct  work  requiring penetration of the roof shall be properly flashed and
caulked.  And  electrical or refrigeration conduits or other piping or materials
installed  by  Tenant  in the Building shall be installed beneath the surface of
the  roof  (and  not  on  the  surface of the roof), and Tenant shall thereafter
repair  and  re-roof  the  affected portions of the roof surface.  Any equipment
placed by Tenant on the roof shall be elevated and supported by Tenant so as not
to  inhibit drainage or Landlord's repair of the roof pursuant to Paragraph 8.2.

          9.5     Title  to  Alterations.  Unless  Landlord requires the removal
                  ----------------------
thereof as set forth in Paragraphs 9.1 or 9.6, any alterations which may be made
on the premises, shall upon installation or construction thereof on the premises
become  the  property  of Landlord and shall remain upon and be surrendered with
the  premises at the expiration or sooner termination of the term of this Lease.
Without  limiting  the  generality  of  the  foregoing,  all  heating,  lighting
electrical  (including  all  wiring,  conduits,  main  and  subpanels),  air
conditioning,  partitioning,  drapery,  and carpet installations made by Tenant,
regardless  of  how affixed to the premises, together with all other alterations
that  have  become  an  integral  part  of the premises, shall be and become the
property  of Landlord upon installation, and shall not be deemed trade fixtures,
and  shall remain upon and be surrendered with the premises at the expiration or
sooner  termination  of  this  Lease.  Notwithstanding  the  provisions  of this
Paragraph  9.5,  Tenant's  furnishings, machinery and equipment, other than that
which is affixed to the premises, shall remain the property of Tenant and may be
removed by Tenant, provided Tenant at Tenant's expense immediately after removal
repairs  any  damage  to  the  premises  caused  thereby.

                                       8.
<PAGE>
          9.6    Removal of Alterations. Landlord may elect, by notice to Tenant
                 ----------------------
at  least  thirty  (30) days before expiration of the Lease term, or within five
(5)  days  after  sooner  termination  thereof,  to require Tenant to remove any
alterations  that Tenant has made to the premises and to restore the premises as
hereafter  provided.  If  Landlord so elects, Tenant shall, at its sole expense,
upon  expiration  of  the Lease term or within twenty (20) days after any sooner
termination  thereof, remove such alterations which were approved by Landlord on
the  condition  of subsequent removal at Landlord's election upon termination of
this  Lease,  repair  any damage occasioned thereby, and restore the premises to
the  condition  existing  as of the Commencement Date or such other condition as
may  reasonably  be  designated by Landlord in its election.  The obligations of
Tenant  set forth in this paragraph shall survive the termination of this Lease.

     10.     Mechanics'  Liens.  Tenant  shall pay when due all claims for labor
             -----------------
or  materials furnished or alleged to have been furnished to or for tenant at or
for use in the premises, which claims are or may be secured by any mechanics' or
materialman's  lien  against the premises or any interest therein.  Tenant shall
give Landlord notice of the date of commencement of any work in the premises not
less than ten (10) days prior thereto, and Landlord shall have the right to post
notices  of  non-responsibility  or  similar  notices  in  or on the premises in
connection  therewith.

     11.     Utilities.  Tenant  shall  pay  when  due  directly to the charging
             ---------
authority  all  charges  for  water, gas, electricity, telephone, refuse pickup,
janitorial  services, and all other utilities and services supplied or furnished
to  the premises during the term of this Lease, together with any taxes thereon.
In  no  event  shall Landlord be liable to Tenant for failure or interruption of
any  such  utilities  or  services,  unless  caused by the willful misconduct of
Landlord,  and no such failure or interruption shall entitle Tenant to terminate
this  Lease or to withhold rent or other sums due hereunder.  Landlord shall not
be  responsible  for  providing security guards or other security protection for
all  or any portion of the premises, and Tenant shall at its own expense provide
or  obtain such security services as Tenant shall desire to insure the safety of
the  premises.

     12.     Indemnity.  Tenant  hereby  indemnifies Landlord and holds Landlord
             ---------
harmless  from  and  against  any  and  all  claims for damage, loss, expense or
liability  due  to, but not limited to, bodily injury, including death resulting
at any time therefrom, and/or property damage, now or hereafter arising from any
act,  work  or things done or permitted to be done or otherwise suffered, or any
omission  in  or  about  the  premises,  by Tenant or by any of Tenant's agents,
employees,  contractors, or invitees, or from any breach or default by Tenant in
the  performance  of  any obligation on the part of Tenant to be performed under
the  terms  of  this  Lease,  except to the extent such damage, loss, expense or
liability  is  caused by the sole and active negligence or willful misconduct of
Landlord  or  its employees or agents. Tenant shall also indemnify Landlord from
and  against all damage, loss, expense (including without limitation, attorneys'
fees),  and  liability  incurred  or  suffered  by Landlord in the defense of or
arising  out  of  or  resulting  from any such claim or any action or proceeding
brought  thereon. In the event any action or proceeding shall be brought against
Landlord  by  reason  of  any such claim, Tenant upon notice from Landlord shall
defend  the  same  at  Tenant's  expense  by  counsel reasonably satisfactory to
Landlord.  The  obligations  of Tenant contained in this paragraph shall survive
the  termination  of  this  Lease.

     13.     Waiver of Claims.  Tenant hereby waives any claims against Landlord
             ----------------
for  injury to Tenant's business or ay loss of income therefrom or for damage to
the  goods,  wares,  merchandise  or  other property of Tenant, or for injury or
death  of  Tenant's agents, employees, invitees, or any other person in or about
the  premises  from any cause whatsoever, regardless of whether the same results
from  conditions existing upon the premises or from other sources or places, and

                                       9.
<PAGE>
regardless  of  whether  the  cause  of  such  damage  or injury or the means of
repairing  the  same  is  inaccessible  to  Tenant.

     14.     Insurance.
             ----------

          14.1     Tenant's  Liability  Insurance.  Tenant  shall,  at  Tenant's
                   ------------------------------
expense,  obtain  and  keep  in  force during the term of this Lease a policy of
comprehensive  public  liability  insurance insuring Landlord and Tenant against
any liability arising out of the condition, use, occupancy or maintenance of the
premises.  Such  policy of insurance shall have a combined single limit for both
bodily  injury  and  property  damage  in  an amount not less than Three Million
Dollars ($3,000,000).  The policy shall contain cross liability endorsements and
shall  insure performance by tenant of the indemnity provisions of Paragraph 12.
The  limits  of said insurance shall not, however, limit the liability of Tenant
hereunder.  Not  more  frequently  than  once  each  calendar  year  if,  in the
reasonable  opinion  of  Landlord,  the  amount  of liability insurance required
hereunder  is  not  adequate,  Tenant  shall increase said insurance coverage as
reasonable  required  by  Landlord;  provided  that,  in no event shall any such
increase  result  in  an  increase in the premium therefor of greater than fifty
percent (50%) of the amount of the premium during the preceding year of the term
of  this  Lease.  The  failure  of  Landlord to require any additional insurance
coverage  at  any  time  shall not relieve Tenant from the obligation to provide
increased  coverage  at  any  later  time  or  relieve  Tenant  from  any  other
obligations  under  this  Lease.

          14.2     Landlord's  Liability  Insurance.  Landlord  may  maintain  a
                   ---------------------------------
policy  or  policies  of  comprehensive  general  liability  insurance  insuring
Landlord  (and  such  other  persons  as  may be designated by Landlord) against
liability  for  personal  injury,  bodily injury or death and damage to property
occurring  or  resulting  form an occurrence in, on, or about the Project with a
combined  single  limit  of not less than Three Million Dollars ($3,000,000), or
such  greater coverage as Landlord may from time to time determine is reasonably
necessary  for  his  protection.

          14.3     Property  Insurance.
                   --------------------

               (a)  Landlord  shall  obtain and keep in force during the term of
this  Lease  a  policy  or  policies of insurance covering loss or damage to the
Project,  but  excluding  coverage  of  merchandise,  fixtures,  equipment  and
leasehold  improvements  of  Tenant  which  are  not considered part of the real
estate  for  insurance  purposes,  in  the  amount of the full replacement value
thereof,  providing  protection  against  all  perils  included  within  the
classification  of  fire,  extended  coverage,  vandalism,  malicious  mischief,
special  extended perils (all risk), including boiler and machinery coverage and
an  inflation  endorsement,  and  at Landlord's option flood and earthquake.  In
addition,  Landlord  shall  obtain  and  keep  in force, during the term of this
Lease,  a  policy  of  rental  loss  insurance  covering  a  period of one year,
commencing  on  the  date  of  loss,  with  proceeds  payable to Landlord, which
insurance  may  also  cover  all  Taxes,  Direct  Operating  Expenses, insurance
premiums,  and  other  sums  payable  by  Tenant  to Landlord hereunder for said
period.  The  insurance  coverage may include sprinkler leakage insurance if the
Building contains fire sprinklers.  Tenant shall have no interest in or right to
the  proceeds  of  any  such  insurance  carried  by  Landlord.

               (b)  Tenant  shall,  at Tenant's sole expense, obtain and keep in
force  during  the  term  of  this Lease, a policy of fire and extended coverage
insurance  including  a standard "all risk" endorsement, and a sprinkler leakage
endorsement  (if  the  premises  shall  be sprinklered), insuring the inventory,
fixtures,  equipment,  personal  property,  and  leasehold  improvements  and
alterations  of  Tenant  within  the  premises  for  the  full replacement value
thereof,  as  the

                                       10.
<PAGE>
same may increase from time to time due to inflation or otherwise.  The proceeds
from  any  of  such policies shall be used for the repair or replacement of such
items  so  insured  and  Landlord shall have no interest in the proceeds of such
insurance.

          14.4     Payment.  Commencing  February  1,  1986  Tenant shall pay to
                   --------
Landlord,  during  the  term  hereof,  as additional rent, Tenant's Share of the
premiums  for the insurance obtained by Landlord pursuant to Paragraphs 14.2 and
14.3(a).  Notwithstanding the foregoing, Landlord may obtain liability insurance
and  property  insurance  for  the  Project  separately,  or together with other
buildings  and  improvements under blanket policies of insurance.  In the latter
case  Tenant  shall  be  liable  for  only such portion of the premiums for such
blanket  policies  as are allocable to the premises, as reasonably determined by
the  insurer  or  Landlord.  Tenant  shall  pay such premiums to Landlord within
thirty  (30)  days after receipt by Tenant of a copy of the premium statement or
other reasonable evidence of the amount due.  If the term of this Lease does not
expire concurrently with the expiration of the period covered by such insurance,
Tenant's  liability  for  premium  shall  be  prorated  on  an  annual  basis.

          14.5     Insurance Policies.  The insurance required to be obtained by
                   -------------------
Tenant  pursuant  to  Paragraphs 14.1 and 14.3(b) shall be primary insurance and
shall  provide  that the insurer shall be liable for the full amount of the loss
up  to and including the total amount of liability set forth in the declarations
without the right of contribution from any other insurance coverage of Landlord,
(b)  shall  be  in  a  form  satisfactory to Landlord, (c) shall be carried with
companies  acceptable  to Landlord, and (d) shall specifically provide that such
policies  shall  not  be subject to cancellation, reduction of coverage or other
change  except after at least thirty (30) days prior written notice to Landlord.
The  policy  or  policies, or duly executed certificates for them, together with
satisfactory evidence of payment of the premium thereon, shall be deposited with
Landlord  on  or  prior  to the Commencement Date, and upon each renewal of such
policies,  which  shall  be effected not less than thirty (30) days prior to the
expiration  date of the term of such coverage.  Tenant shall not do or permit to
be  done  anything which shall invalidate any of the insurance policies referred
to  in  Paragraphs  14.1,  14.2,  and  14.3.

          14.6     Waiver  of  Subrogation.  Tenant  and  Landlord  each  hereby
                   ------------------------
waives  any  and  all  rights  of  recovery  against  the  other, or against the
officers,  employees,  agents  and  representative  of the other, for loss of or
damage  to the property of the waiving party or the property of others under its
control, where such loss or damage is insured against under any insurance policy
carried  by  Landlord or Tenant and in force at the time of such loss or damage.
Tenant  and  Landlord  shall,  upon obtaining the policies of insurance required
hereunder,  give  notice to the insurance carrier or carriers that the foregoing
mutual  waiver  of  subrogation  is  contained  in  this  Lease.

          14.7     No Limitation of Liability.  Landlord makes no representation
                   ---------------------------
that the limits of liability specified to be carried by Tenant or Landlord under
the  terms  of this Lease are adequate to protect any party.  If Tenant believes
that  the  insurance  coverage  required  under  this  Lease  is insufficient to
adequately  protect  Tenant,  Tenant  shall  provide,  at  its own expense, such
additional  insurance  as  Tenant  deems  adequate.

          14.8     Impounding  of  Premiums.  If  Landlord's  lender  requires
                   -------------------------
Landlord  to  pay insurance premiums into an impound account on a periodic basis
during the term of this Lease, Tenant, upon notice form Landlord indicating this
requirement,  shall  pay  a  sum  of  money  toward  its  liabilities under this
Paragraph  14  to  Landlord  on a periodic basis in accordance with the lender's
requirements.  Landlord  shall  impound  the  insurance  premiums  received from
Tenant  in  accordance  with  the  requirements  of  the  lender.

                                       11.
<PAGE>
     15.     Damage  or  Destruction.
             -----------------------

          15.1     Partial  Damage-Insured.   Subject  to  the  provisions  of
                   -----------------------
Paragraphs  15.3  and 15.4, if the premises or the building, as the case may be,
are  damaged  to  the  extent  of  less  than  eighty  percent (80%) of the then
replacement value thereof (excluding excavations and foundations with respect to
the  Building),  such  damage  was caused by an act or casualty covered under an
insurance  policy  required  to be maintained pursuant to Paragraph 14.2(a), and
the proceeds of such insurance received by Landlord are sufficient to repair the
damage,  Landlord  shall  at  Landlord's  expense  repair such damage as soon as
reasonably  possible  and  this  Lease  shall continue in full force and effect.

          15.2     Partial  Damage-Uninsured.   Subject  to  the  provisions  of
                   ------------------------
Paragraphs  15.3 and 15.4, if at any time during the term hereof the premises or
the  Building,  as  the  case  may  be, are damaged and the proceeds received by
Landlord  are not sufficient to repair such damage, or such damage was caused by
an  act  or  casualty  not  covered  under  an  insurance  policy required to be
maintained by Landlord pursuant to Paragraph 14.2(a), Landlord may at Landlord's
option  either  (a)  repair  such  damage  as  soon  as  reasonably  possible at
Landlord's  expense,  in which event this Lease shall continue in full force and
effect, or (b) give written notice of termination of this Lease to Tenant within
thirty  (30)  days  after  the  date  of the occurrence of such damage, with the
effective  date  of  such  termination  to be the date of the occurrence of such
damage.  In  the  event Landlord gives such notice of termination of this Lease,
Tenant  shall have the right, within ten (10) days after receipt of such notice,
to  agree  in  writing on a basis satisfactory to Landlord to pay for the entire
cost  of  repairing  such  damage less only the amount of insurance proceeds, if
any,  received  by  Landlord,  in which event the notice of termination shall be
ineffective and this Lease shall continue in full force and effect, and Landlord
shall  proceed  to  make  such repairs as soon as reasonably possible. If Tenant
does  not  give  such notice within such ten (10) day period this Lease shall be
terminated  pursuant  to  such  notice  of  termination  by  Landlord.

          15.3     Total  Destruction.  If  at  any  time during the term hereof
                   ------------------
either the premises or the Building is destroyed to the extent of eighty percent
(80%)  or  more of the then replacement value thereof (excluding excavations and
foundations with respect to the Building), from any cause whether or not covered
by  the  insurance  maintained  by  Landlord pursuant to Paragraph 14.2(a), this
Lease  shall  at  the  option  of  Landlord  terminate  as  of  the date of such
destruction.  Landlord  shall  exercise  its  right  to  terminate this Lease by
delivery  of  notice  of termination to Tenant within thirty (30) days after the
date  that  Tenant  notifies  Landlord  of the occurrence of such damage. In the
event  Landlord  does  not  elect  to  terminate  this  Lease, Landlord shall at
Landlord's  expense  repair such damage as soon as reasonably possible, and this
Lease  shall  continue  in  full  force  and  effect.

          15.4     Damage  Near End of Term. If the premises or the Building, as
                   ------------------------
the  case  may be, are destroyed or damaged in whole or in part to the extent of
$50,000  or  more whether from an insured or uninsured casualty, during the last
six  (6)  months  of  the  term of this Lease, Landlord may at Landlord's option
cancel  and  terminate this Lease as of the date of occurrence of such damage by
giving  written  notice  to Tenant of Landlord's election to do so within thirty
(30)  days  after  the  date  of  occurrence  of  such  damage.

          15.5     Abatement  of Rent.  Notwithstanding anything to the contrary
                   ------------------
contained  in  Paragraph  3  or  elsewhere  in  this  Lease, if the premises are
partially  damaged  and  Landlord  repairs  or  restores  them  pursuant  to the
provisions  of  this  Paragraph 15, the rent, including Tenant's Share of Direct
Operating  Expenses,  Taxes,  and  insurance premiums, payable hereunder for the
period

                                       12.
<PAGE>
commencing  on  the occurrence of such damage and ending upon completion of such
repair  or  restoration  shall  be  abated  in proportion to the extent to which
Tenant's  use  of the premises is impaired during the period of repair; provided
that, nothing herein shall be construed to preclude Landlord from being entitled
to  collect  the  full amount of any rental loss insurance proceeds.  Except for
abatement  of  rent, if any, Tenant shall have no claim against Landlord for any
damage  suffered  by  reason  of  any  such  damage,  destruction,  repair  or
restoration.

          15.6     Waiver.  Tenant  waives  the  provisions  of California Civil
                   ------
Code  Sections  1932(2)  and  1933(4),  and  any  similar  or successor statutes
relating  to  termination  of  leases  when the thing leased is substantially or
entirely  destroyed,  and  agrees  that  any  such  occurrence  shall instead be
governed  by  the  terms  of  this  Lease.

          15.7     Tenant's  Property.  Landlord's  obligation  to  rebuild  or
                   ------------------
restore  shall  not  include  restoration of Tenant's trade fixtures, equipment,
merchandise, or any improvements, alterations or additions made by Tenant to the
premises.

          15.8     Notice  of  Damage.  Tenant shall notify Landlord within five
                   ------------------
(5) days after the occurrence thereof of any damage to all or any portion of the
premises.  In  no  event shall Landlord have any obligation to repair or restore
the  premises  pursuant  to  this Paragraph 15 until a reasonable period of time
after  Landlord's  receipt  of notice from Tenant of the nature and scope of any
damage  to  the  premises,  and a reasonable period of time to collect insurance
proceeds  arising from such damage (unless such damage is clearly not covered by
insurance  then  in  effect  covering  the  premises).

          15.9     Replacement  Cost.  The  determination  in  good  faith  by
                   -----------------
Landlord  of  the  estimated cost of repair of any damage, or of the replacement
cost,  shall  be  conclusive  for  purposes  of  this  Paragraph  15.

     16.     Condemnation.
             -------------

          16.1     Partial  Taking.  If  part  of  the premises is taken for any
                   ---------------
public  or  quasi-public  use,  under  any  statute  or  right of eminent domain
(collectively  a  "taking"),  and  a  part  of  the  premises  remains  which is
reasonably  suitable  for Tenant's continued occupancy for the uses permitted by
this  Lease,  and a portion of the parking area within the Project remains which
is  equivalent  to  at  least fifty percent (50%) of the parking area originally
contained  in  the Project, this Lease shall, as to the part so taken, terminate
as of the date the condemnor or purchaser takes possession of the property being
taken,  and  the  rent payable hereunder shall be reduced in the same proportion
that  the  floor  area  of  the  portion  of  the premises so taken bears to the
original  floor  area  of  the  premises.  Landlord  shall,  at its own cost and
expense,  make  all necessary repairs or alterations to the premises in order to
make  the portion of the premises not taken a complete architectural unit.  Such
work  shall  not,  however,  exceed  the  scope  of the work done by Landlord in
originally  constructing  the premises.  Each party hereto waives the provisions
of  California Code of Civil Procedure Section 1265.130 allowing either party to
petition  the  superior  court to terminate this Lease in the event of a partial
taking  of  the  premises.

          16.2     Total  Taking.  If  all of the premises, or such part thereof
                   -------------
is  taken  so  that there does not remain a portion of the premises suitable for
Tenant's  continued  occupancy  for  the  uses permitted hereunder, or more than
fifty  percent  (50%)  of the original parking area within the Project is taken,
such  taking  shall  be treated as a total taking and this Lease shall terminate
upon  the  date  possession  shall  be  taken  by  the  condemning  authority.

                                       13.
<PAGE>
          16.3     Distribution  of  Award.  If a part or all of the premises is
                   -----------------------
taken,  all compensation awarded upon such taking shall belong to and be paid to
Landlord,  except that Tenant shall receive from the award a sum attributable to
Tenant's  improvements or alterations made to the premises by Tenant at Tenant's
expense  with  Landlord's consent in accordance with this Lease which Tenant has
the  right to remove from the premises pursuant to the provisions of this Lease,
but  elects  not to remove; or, if Tenant elects to remove any such improvements
or  alterations made to the premises at Tenant's expense, Tenant shall receive a
sum  for  reasonable removal and relocation costs not to exceed the market value
of  such  improvements  or alterations on the date possession of the premises is
taken.

          16.4     Sale Under Threat of Condemnation.  A sale by Landlord to any
                   ----------------------------------
authority  having  the  power  of  eminent  domain,  either  under  threat  of
condemnation or  while  condemnation  proceedings are pending, shall be deemed a
taking  under  the  power  of  eminent domain for purposes of this Paragraph 16.

     17.     Assignment  and Subletting.  Tenant shall not assign this Lease, or
             ---------------------------
any  interest  therein,  voluntarily  or involuntarily, and shall not sublet the
premises  or any part thereof, or any right or privilege appurtenant thereto, or
suffer  any  other person (the agents and servants of Tenant excepted) to occupy
or  use  the premises, or any portion thereof, without the prior written consent
of  Landlord  in  each  instance  pursuant to the terms and conditions set forth
below,  which  consent  shall  not  unreasonably  be  withheld.

          17.1     Documentation.  Prior  to  any  assignment  or sublease which
                   --------------
Tenant desires to make, Tenant shall provide to Landlord the name and address of
the  proposed  assignee  or  sublessee,  and  true  and  complete  copies of all
documents  relating to Tenant's prospective agreement to assign or sublease, and
shall  specify all consideration to be received by Tenant for such assignment or
sublease  in  the form of lump sum payments, installments of rent, or otherwise.
For  purposes  of  this  Paragraph  17,  the term "consideration" shall include,
without  limitation, all monies or other consideration of any kind, if such sums
are related to Tenant's interest in this Lease or in the premises, including but
not  limited to, bonus money, and payments (in excess of book value thereof) for
Tenant's assets, fixtures, inventory, accounts, good will, equipment, furniture,
general  intangibles, and any capital stock or other equity ownership of Tenant.
Within thirty (30) days after the receipt of such written notice, Landlord shall
either consent in writing to such proposed assignment or sublease subject to the
terms  and  conditions  hereinafter  set forth, or notify Tenant in writing that
Landlord  refuses  such consent, specifying reasonable grounds for such refusal.

          17.2     Terms  and Conditions.  As a condition to Landlord's granting
                   ----------------------
its  consent to any assignment or sublease, (a) Landlord may require that Tenant
pay  to Landlord,  as and when received by Tenant, one-half of the amount of any
excess  of  such  consideration to be received by Tenant in connection with said
assignment  or  subletting  over and above the rental amount fixed by this Lease
and  payable by Tenant to Landlord; provided that Tenant shall first be entitled
to  retain  an  amount of such excess consideration equal to Tenant's reasonable
direct  costs  of  assigning  or  subletting,  including  real  estate brokerage
commissions, if any, and (b) Tenant and the proposed  assignee or sublessee must
demonstrate to Landlord's reasonable satisfaction that the assignee or sublessee
is  financially  responsible  and proposes to use the premises for substantially
the  same  use  or  a  use  which is otherwise satisfactory to Landlord, and the
proposed  use  is  not  injurious to the premises.   Each assignment or sublease
agreement  to  which Landlord has consented shall be an instrument in writing in
form  satisfactory  to  Landlord,  and  shall be executed by both Tenant and the
assignee  or  sublessee,  as  the case may be.  Each such assignment or sublease

                                       14.
<PAGE>
agreement  shall  recite  that it is and shall be subject and subordinate to the
provisions of this Lease, that the assignee or sublessee accepts such assignment
or  sublease  and  agrees to perform all of the obligations of Tenant hereunder,
and  that  the  termination  of  this  Lease shall, at Landlord's sole election,
constitute  a  termination  of  every such assignment or sublease.  In the event
Landlord  shall  consent  to an assignment or sublease, Tenant shall nonetheless
remain primarily liable for all obligations and liabilities of Tenant under this
Lease,  including  but  not  limited  to  the payment of rent.  Tenant agrees to
reimburse  Landlord  upon  demand  for  reasonable  attorneys'  fees incurred by
Landlord  in  connection  with the negotiation, review, and documentation of any
such  requested  assignment  or  subleasing.  Tenant  hereby stipulates that the
foregoing  terms  and  conditions  are  reasonable.

          17.3     Partnership.  If  Tenant  is  a  partnership,  a  transfer,
                   -----------
voluntary  or involuntary, of all or any part of an interest in the partnership,
or  the  dissolution of the partnership, shall be deemed an assignment requiring
Landlord's  prior  written  consent.

          17.4     Corporation.  If  Tenant  is  a corporation, any dissolution,
                   -----------
merger,  consolidation,  or  other  reorganization  of  Tenant, or the transfer,
either  all  at once or in a series of transfers, of a controlling percentage of
the  capital stock of Tenant, or the sale, or series of sales within any one (1)
year  period,  of all or substantially all of Tenant's assets located in, on, or
about  the  premises,  shall  be  deemed an assignment.  The phrase "controlling
percentage"  means  the ownership of, and the right to vote, stock possessing at
least  fifty-one percent (51%) of the total combined voting power of all classes
of  Tenant's  capital  stock  issued,  outstanding, and entitled to vote for the
election  of  directors.

          17.5     Landlord's  Remedies.  Any  assignment  or  sublease  without
                   ---------------------
Landlord's prior written consent shall at Landlord's election be void, and shall
constitute  a  default.  The  consent  by Landlord to any assignment or sublease
shall  not constitute a waiver of the provisions of this Paragraph 17, including
the  requirement  of  Landlord's  prior  written  consent,  with  respect to any
subsequent  assignment  or  sublease.  If  Tenant  shall  purport to assign this
Lease,  or sublease all or any portion of the premises, without Landlord's prior
written  consent,  Landlord  may collect rent from the person or persons then or
thereafter occupying the premises and apply the net amount collected to the rent
reserved  herein,  but no such collection shall be deemed a waiver of Landlord's
rights  and  remedies  under  this  Paragraph  17, or the acceptance of any such
purported  assignee,  sublessee  or  occupant,  or  a release of Tenant from the
further  performance  by  Tenant  of  covenants  on  the  part  of Tenant herein
contained.

          17.6     Encumbrances,  Licenses  and  Concession  Agreements.  Tenant
                   -----------------------------------------------------
shall  not  encumber  its  interest  under  this  Lease  or any rights of Tenant
hereunder,  or  enter into any license or concession agreement respecting all or
any  portion  of  the  premises,  without Landlord's prior written consent which
consent  shall  not unreasonably be withheld subject to the terms and conditions
referred  to  in  paragraph  17.2  above,  and  Tenant's  granting  of  any such
encumbrance, license, or concession agreement shall constitute an assignment for
purposes  of  this  Paragraph  17.

     18.     Default  by  Tenant.
             --------------------

          18.1     Event  of  Default.  The occurrence of any one or more of the
                   -------------------
following  events  (an "Event of Default") shall constitute a default and breach
of  this  Lease  by  Tenant:

                                       15.
<PAGE>
               (a)  The  failure  by  Tenant  to make any payment of rent or any
other payment required to be made by Tenant hereunder, as and when due, and such
failure  shall  not  have  been cured within three (3) days after written notice
thereof from Landlord; provided that, if three or more such failures shall occur
in  any  one  year  period during the Lease term, then each and every succeeding
failure  to  pay any sum payable hereunder when due shall constitute an Event of
Default,  and  Tenant  shall  not  be entitled to a three (3) day cure period or
notice  from  Landlord  with  respect  to  any  such  failure  to  pay;

               (b)  Tenant's  failure  to  perform  any  other term, covenant or
condition  contained  in  this  Lease  and such failure shall have continued for
fifteen  (15)  days  after  written  notice  of such failure is given to Tenant;
provided that, where such failure cannot reasonably be cured within said fifteen
(15)  day  period,  Tenant shall not be in default if Tenant commences such cure
within  said  fifteen  (15)  day period Tenant shall not be in default if Tenant
commences  such  cure  within  said  fifteen  (15)  day  period  and  thereafter
diligently  continues  to  pursue  all  reasonable efforts to complete said cure
until  completion  thereof,

               (c)  Tenant's  failure to inhabit and maintain the premises for a
period  of  more  than  ten (10) consecutive days, or Tenant's removal of all or
substantially  all  of  its  equipment  and other possessions from the premises;

               (d)  Tenant's  assignment  of  its  assets for the benefit of its
creditors;

               (e)  The  sequestration  of,  attachment of, or execution on, any
substantial  part  of the property of Tenant or on any property essential to the
conduct  of  Tenant's  business on the premises, and Tenant shall have failed to
obtain  a return or release on such property within thirty (30) days thereafter,
or  prior  to  sale  pursuant  to  such  sequestration, attachment or execution,
whichever  is  earlier;

               (f)  An  entry  of  any of the following orders by a court having
jurisdiction,  and  such  order shall have continued for a period of thirty (30)
days:  (1)  an  order  for relief in any proceeding under Title 11 of the United
States Code, or an order adjudicating Tenant to be bankrupt or insolvent; (2) an
order  appointing  a  receiver,  trustee  or  assignee  of  Tenant's property in
bankruptcy  or any other proceeding; or (3) an order directing the winding up or
liquidation  of  Tenant;  or

               (g)  The  filing  of  a  petition  to  commence against Tenant an
involuntary  proceeding  under  Title  11  of the United States Code, and Tenant
shall  fail  to  cause  such  petition  to  be dismissed within thirty (30) days
thereafter,  except  when Tenant continues to pay rent per this Lease Agreement.

          18.2     Remedies.  Upon any Event of Default, Landlord shall have the
                   ---------
following remedies, in addition to all other rights and remedies provided by law
or  equity:

               (a)  Landlord  shall be entitled to keep this Lease in full force
and  effect  for  so  long  as  Landlord  does  not  terminate Tenant's right to
possession  (whether  or  not  Tenant  shall  have  abandoned  the premises) and
Landlord  may enforce all of its rights and remedies under this Lease, including
the  right  to  recover rent and other sums as they become due under this Lease,
plus  interest  at  the lesser of fifteen percent (15%) per annum or the highest
rate then allowed by law, from the due date of each installment of rent or other
sum  until  paid;  or

               (b)  Landlord  may  terminate the Tenant's right to possession by
giving  Tenant written notice of termination.  On the giving of the notice, this

                                       16.
<PAGE>
Lease  and  all  of  Tenant's  rights  in  the  premises  shall  terminate.  Any
termination  under  this  paragraph shall not release Tenant from the payment of
any  sum  then  due  Landlord  or  from any claim for damages or rent previously
accrued  or  then  accruing  against  Tenant.

               In  the event this Lease is terminated pursuant to this Paragraph
18.2(b),  Landlord  may  recover  from  Tenant:

                    (1)  the worth at the time of award of the unpaid rent which
had  been  earned  at  the  time  of  termination;  plus

                    (2)  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 for the same period that Tenant
proves  could  have  been  reasonably  avoided;  plus

                    (3)  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  for  the same period that Tenant proves could be
reasonably  avoided;  plus

                    (4)  any  other  amount necessary to compensate Landlord for
all  the  detriment  proximately  caused by Tenant's failure to perform Tenant's
obligations under this Lease, or which in the ordinary course of things would be
likely  to  result  therefrom,  including without limitation, the following: (i)
expenses  for  cleaning,  repairing or restoring the premises; (ii) expenses for
altering,  remodeling  or  otherwise  improving  the premises for the purpose of
reletting,  including  installation  of  leasehold  improvements  (whether  such
installation  be  funded  by a reduction of rent payable by a new tenant, direct
payment  or  allowance to a new tenant, or otherwise); (iii) real estate leasing
commissions,  advertising  costs  and  other expenses of reletting the premises;
(iv)  costs incurred as owner of the premises including without limitation taxes
and insurance premiums thereon, utilities and building security; (v) expenses in
retaking  possession  of the premises; (vi) attorneys' fees and court costs; and
(vii)  any  unamortized  lease  commission  paid  in connection with this Lease.

               The  "worth  at  the time of award" of the amounts referred to in
subparagraphs  (1)  and  (2)  of  this  Paragraph  18.2(b)  shall be computed by
allowing  interest  at  the  lower  of  fifteen  percent (15%) per annum, or the
maximum  rate  then  permitted  by law.  The "worth at the time of award" of the
amount  referred  to  in subparagraph (3) of this paragraph shall be computed by
discounting such amount at the discount rate of the Federal Reserve Board of San
Francisco  at the time of award plus one percent (1%).  The term "time of award"
as  used  in  subparagraphs  (1), (2), and (3) shall mean the date of entry of a
judgment  or  award  against  Tenant  in  an action or proceeding arising out of
Tenant's  breach of this Lease.  The term "rent" as used in this paragraph shall
include all sums required to be paid by Tenant to Landlord pursuant to the terms
of  this  Lease.

               (c)  This  Lease  may  be  terminated  by a judgment specifically
providing for termination, or by Landlord's delivery to Tenant of written notice
specifically  terminating  this Lease.  In no event shall any one or more of the
following  actions by Landlord, in the absence of a written election by Landlord
to  terminate  this Lease, constitute a termination of this Lease or a waiver of
Landlord's  right  to  recover  damages  under  this  Paragraph  18:

                    (1) appointment of a receiver in order to protect Landlord's
interest  hereunder;

                                       17.
<PAGE>
                    (2)  consent to any subletting of the premises or assignment
of  this  Lease  by  Tenant,  whether  pursuant  to provisions hereof concerning
subletting  and  assignment  or  otherwise;  or

                    (3)  any  other  action  by  Landlord  or  Landlord's agents
intended  to mitigate the adverse effects of any breach of this Lease by Tenant,
including  without  limitation  any  action  taken  to maintain and preserve the
premises,  or  any action taken to relet the premises or any portion thereof for
the  account  of  Tenant  and  in  the  name  of  Tenant.

          18.3     No  Relief  From Forfeiture After Default.  Tenant waives all
                   -----------------------------------------
rights  of  redemption  or relief from forfeiture under California Code of Civil
Procedure  Sections 1174 and 1179, and under any other present or future law, in
the  event  Tenant is evicted or Landlord otherwise lawfully takes possession of
the  premises  by  reason  of  any  Event  of  Default.

          18.4     Landlord's  Right to Perform Tenant's Obligations.  If Tenant
                   -------------------------------------------------
shall  at any time fail to make any payment or perform any other act required to
be  made  or  performed by Tenant under this Lease, then Landlord may, but shall
not  be  obligated to, make such payment or perform such other act to the extent
Landlord  may  deem desirable, and may, in connection therewith, pay any and all
expenses  incidental  thereto  and  employ  counsel.  No such action by Landlord
shall be deemed a waiver by Landlord of any rights or remedies Landlord may have
as  a  result of such failure by Tenant, or a release of Tenant from performance
of  such obligation.  All sums so paid by Landlord, including without limitation
all  penalties,  interest  and  costs  in connection therewith, shall be due and
payable  by Tenant to Landlord on the day immediately following any such payment
by  Landlord.  Landlord  shall  have  the  same  rights  and  remedies  for  the
nonpayment  of  any  such  sums  as  Landlord  may be entitled to in the case of
default  by  Tenant  in  the  payment  of  rent.

          18.5     Interest on Past Due Obligations.  Any amount due to Landlord
                   --------------------------------
hereunder  not paid when due shall bear interest at the lower of fifteen percent
(15%)  per  annum,  or  the  highest rate then allowed by law, from the date due
until  paid  in  full.  Payment  of  such  interest shall not excuse or cure any
default  by  Tenant  under  this  Lease.

          18.6     Additional  Rent.  All  sums payable by Tenant to Landlord or
                   ----------------
to  third  parties under this Lease in addition to such sums payable pursuant to
Paragraph 4 hereof shall be payable as additional sums of rent.  For purposes of
any  unlawful  detainer action by Landlord against Tenant pursuant to California
Code  of  Civil  Procedure  Sections  1161-1174,  or  any  similar  or successor
statutes,  Landlord  shall  be  entitled  to  recover as rent not only such sums
specified  in  Paragraph  3 as may then be overdue, but also all such additional
sums  of  rent  as  may  then  be  overdue.

          18.7     Remedies  Not  Exclusive.  No  remedy  or  election hereunder
                   ------------------------
shall  be  deemed exclusive but shall, wherever possible, be cumulative with all
other  remedies  herein  provided  or  permitted  at  law  or  in  equity.

     19.     Default  by  Landlord.
             ----------------------

          19.1     Cure  Period.  Landlord  shall not be deemed to be in default
                   ------------
in  the  performance  of any obligation required to be performed by it hereunder
unless  and  until it has failed to perform such obligation within the period of
time  specifically  provided  herein, or if no period of time has been provided,
then  within  thirty  (30)  days  after  receipt  of written notice by Tenant to
Landlord  specifying  wherein  Landlord  has  failed to perform such obligation;
provided, however, that if the nature of Landlord's obligation is such that more

                                       18.
<PAGE>
than  thirty  (30)  days  are  reasonably required  for  its performance , then
Landlord  shall  not  be  deemed  to  be  in  default  if it shall commence such
performance  within  thirty  (30) day period and thereafter diligently prosecute
the  same  to  completion.

          19.2     Mortgagee  Protection.     In the event of any default on the
                   ---------------------
part  of Landlord, Landlord will provide written notice of default to Tenant and
Tenant  will give notice by registered or certified mail to any beneficiary of a
deed  of trust or mortgagee of a mortgage encumbering the premises whose address
shall  have  been furnished to Tenant, and before Tenant shall have any right to
terminate  this  Lease  Tenant  shall  grant  such  beneficiary  or  mortgagee a
reasonable  period  within  which  to  cure  the default, including a reasonable
period  to  obtain  possession  of  the  premises  by  power of sale or judicial
foreclosure,  if  such  action  is  necessary  to  effect  a  cure.

     20.     Advertisements  and  Signs.     Tenant shall not place or permit to
             ---------------------------
be  placed  any  sign,  display,  advertisement  or  decoration  ("sign") on the
exterior  of  the  Building,  or  elsewhere  on  the premises, without the prior
written  consent  of  Landlord as to the color, size, style, character, content,
and  location  of  each  such sign. Upon termination of this Lease, Tenant shall
remove  any  sign which it has placed on the premises or the Building, and shall
repair  any  damage  caused  by  the  installation  or  removal  of  such  sign.

     21.     Entry by Landlord.     Landlord and its agents shall be entitled to
             ------------------
enter into and upon the premises at all reasonable times, upon reasonable notice
(except  in  the  case  of  an  emergency,  in  which  event  no notice shall be
required),  for  purposes  of  inspecting  or  making  repairs,  alterations  or
additions  to all or any portion thereof, including the erection and maintenance
of  such  scaffolding, canopies, fences and props as may be required, or for the
purposes of posting notices of non-responsibility for alterations, additions, or
repairs, or for the purpose of placing upon the premises any ordinary "for sale"
signs,  and  during  the  ninety (90) day period prior to the expiration of this
Lease,  to  place  upon the premises any usual or ordinary "for lease" signs and
exhibit the premises to prospective tenants at reasonable hours, all without any
abatement  of  rent  and  without  liability  to  Tenant  for  any  injury  or
inconvenience  to or interference with Tenant's business, quiet enjoyment of the
premises,  or  any other loss occasioned thereby.  Landlord's rights of entry as
set  forth  in  this  paragraph  shall  be  subject  to  the reasonable security
regulations  of  Tenant, and to the requirement that Landlord shall at all times
act  in  a  manner  designed  to  minimize  interference  with Tenant's business
activities  on  the  premises.

     22.     Subordination  and  Attornment.
             -------------------------------

          22.1     Subordination.  Tenant  agrees  that  this  Lease may, at the
                   -------------
option  of  Landlord, be subject and subordinate to any mortgage, deed of trust,
or  other  instrument  of  security now of record or which is recorded after the
date  of  this  Lease  affecting  the land and Building, or land or Building, of
which  the premises form a part, and such subordination is hereby made effective
without any further act of Tenant; provided that, no such subordination shall be
effective unless Landlord first obtains from the lender a written agreement that
provides  in  essence that as long as Tenant performs its obligations under this
Lease,  no  foreclosure of , deed given in lieu of foreclosure of, or sale under
the  encumbrance,  and no steps or procedures taken under the encumbrance, shall
affect  Tenant's  rights  under  this Lease.  Tenant shall execute and return to
Landlord the written agreement and any other documents required by the lender to
accomplish  the purposes of this paragraph, within seven (7) days after delivery
thereof  to  Tenant,  and  the  failure of Tenant to execute and return any such
instruments  shall  constitute  a  default  hereunder.

                                       19.
<PAGE>
          22.2     Attornment.  Tenant  shall  attorn  to  any  third  party
                   ----------
purchasing  or otherwise acquiring the premises at any sale or other proceeding,
or  pursuant  to  the  exercise  of  any  rights,  powers  or remedies under any
mortgages or deeds of trust or ground leases now or hereafter encumbering all or
any  part  of  the  premises,  as if such third party had been named as Landlord
under  this  Lease.

     23.     Estoppel  Certificates  and  Financial  Statements.  Tenant  shall
             ---------------------------------------------------
within  seven (7) days following request by Landlord: (a) execute and deliver to
Landlord any documents including estoppel certificates, in the form presented to
Tenant  by  Landlord (1) certifying that this Lease has not been modified or, if
modified,  stating  the  nature  of  such  modification and certifying that this
Lease,  as  so  modified,  is  in full force and effect, (2) stating the date to
which  the  rent  and  other  charges  are  paid  in  advance,  if  at  all, (3)
acknowledging that there are not, to Tenant's knowledge, any uncured defaults on
the  part of Landlord hereunder, or if there are uncured defaults on the part of
Landlord,  stating  the  nature of such uncured defaults, and (4) evidencing the
status  of  this  Lease  as  may be required either by a lender making a loan to
Landlord  to  be secured by a deed of trust or mortgage encumbering the premises
or  a  purchaser  of the premises from Landlord; and (b) deliver to Landlord the
current  financial  statement  of  Tenant  with an opinion of a certified public
accountant,  if  available,  including  a  balance  sheet  and  profit  and loss
statement  for  the  then current fiscal year, and the two (2) immediately prior
fiscal  years (if available), all prepared in accordance with generally accepted
accounting principles consistently applied. Tenant's failure to deliver any such
documents,  including  an estoppel certificate, or any such financial statements
within seven (7) days following such request shall be an Event of Default under
this  Lease.

     24.     Notices.  Any  notice,  approval,  request,  demand,  or  consent
             -------
(collectively  "notice")  required or desired to be given under this Lease shall
be in writing and shall be personally served or delivered by United States mail,
registered  or  certified,  postage  prepaid,  and  addressed to the party to be
served  at  the  last  address  given by that party to the other party under the
provisions  of  this  paragraph.  At  the  date  of execution of this Lease, the
addresses  of Landlord and Tenant are as set forth above in the preamble to this
Lease.  Any  notice delivered by mail pursuant to this paragraph shall be deemed
to  have  been  delivered  three  (3)  days  after  the  posted date of mailing.

     25.     Waiver.  The  waiver  by  either  party  of any breach of any term,
             ------
covenant,  or  condition  herein contained shall not be deemed to be a waiver of
such  term,  covenant  or  condition or any subsequent breach of the same or any
other  term,  covenant or condition herein contained.  The subsequent acceptance
of  rent  hereunder  by  Landlord  shall  not  be  deemed  to be a waiver of any
preceding  breach  by  Tenant  of any term, covenant or condition of this Lease,
other  than  the  failure  of  Tenant  to pay the particular rental so accepted,
regardless  of  Landlord's  knowledge  of  such  preceding breach at the time of
acceptance of such rent.  No term, covenant or condition shall be deemed to have
been  waived  by either party unless such waiver is in writing and signed by the
party  making  such  waiver.

     26.     No  Accord  and  Satisfaction.  No payment by Tenant, or receipt by
             -----------------------------
Landlord,  of an amount which is less than the full amount of rent and all other
sums  payable  by Tenant hereunder at such time shall be deemed to be other than
on  account  of  (a)  the  earliest  of  such  other  sums  due and payable, and
thereafter  (b)  to the earliest rent due and payable hereunder.  No endorsement
or  statement  on  any  check  or any letter accompanying any payment of rent or
such  other  sums  shall  be deemed an accord and satisfaction, and Landlord may
accept  any  such  check  or  payment  without prejudice  to Landlord's right to
receive  payment  of  the  balance of such rent and/or other sums, or Landlord's

                                       20.
<PAGE>
right  to pursue any remedies to which Landlord may be entitled to recover  such
balance.

     27.     Attorneys'  Fees.  If any action or proceeding at law or in equity,
             -----------------
or  an  arbitration  proceeding  (collectively an "action"), shall be brought to
recover  any  rent under this Lease, or for or on account of any breach of or to
enforce  or  interpret any of the terms, covenants, or conditions of this Lease,
or for the recovery of possession of the premises, the prevailing party shall be
entitled  to  recover  from  the  other  party as a part of such action, or in a
separate  action  brought  for  that purpose, its reasonable attorneys' fees and
costs  and  expenses  incurred  in connection with the prosecution or defense of
such  action.  "Prevailing  party"  within  the  meaning of this paragraph shall
include,  without  limitation,  a  party  who brings an action against the other
after  the  other  is in breach or default, if such action is dismissed upon the
other's  payment  of  the  sums  allegedly  due for performance of the covenants
allegedly breached, or if the party commencing such action or proceeding obtains
substantially the relief sought by it in such action, whether or not such action
proceeds  to  a  final  judgment  or  determination.

     28.     Surrender.  Tenant  shall, upon expiration or sooner termination of
             ----------
this  Lease, surrender the premises to Landlord in the same condition as existed
on  the date Tenant originally took possession thereof (reasonable wear and tear
and  damage due to causes beyond the reasonable control of Tenant excepted) with
all  interior  walls cleaned, all holes in walls repaired, all carpets shampooed
and  cleaned,  all HVAC equipment in operating order and in good repair, and all
floors  cleaned  and  waxed,  all  to  the  reasonable satisfaction of Landlord.
Tenant  shall  at  such  time  also  surrender  to Landlord such alterations (as
defined  in  Paragraph  9)  as  Landlord  does  not  require Tenant to remove in
accordance  with  Paragraph  9.6  above.  Tenant, on or before the expiration or
sooner  termination of this Lease, shall remove all of its personal property and
trade  fixtures  from  the  premises,  and  all property not so removed shall be
deemed  abandoned  by  Tenant.  Tenant  shall be liable to Landlord for costs of
removal  of  any such abandoned trade fixtures or equipment of Tenant, or of any
alterations Tenant fails to remove if so required by Landlord, together with the
cost of returning the premises to its condition as of the date Tenant originally
took possession thereof, and the transportation and storage costs of such items.
If  the  premises are not so surrendered at the expiration or sooner termination
of  this  Lease,  Tenant  shall  indemnify  Landlord  against  loss or liability
resulting  from  delay  by  Tenant  in  so  surrendering the premises, including
without  limitation,  any  claims  made by any succeeding tenant founded on such
delay,  losses  to  Landlord  due  to  lost opportunities to lease to succeeding
tenants,  and  attorneys'  fees and costs.  All keys to the premises or any part
thereof  shall  be surrendered to Landlord upon expiration or sooner termination
of  the  Lease  term.

     29.     Holding Over.  This Lease shall terminate without further notice at
             -------------
the  expiration  of the Lease term.  Any holding over by Tenant after expiration
shall not constitute a renewal or extension of the Lease term or give Tenant any
rights  in or to the premises unless otherwise expressly provided in this Lease.
Any  holding  over  after  the  expiration  with  the express written consent of
Landlord  shall be construed to be a tenancy from month to month, at one hundred
twenty-five  percent  (125%)  of the monthly Base Rent for the last month of the
Lease  term, and shall otherwise be on the terms and conditions herein specified
insofar  as  applicable,  unless  otherwise  mutually  agreed  in writing by the
parties.

     30.     Transfer  of  Premises by Landlord.  The term "Landlord" as used in
             -----------------------------------
this  Lease,  so  far as the covenants or obligation on the part of Landlord are
concerned,  shall  be  limited to mean and include only the owner at the time in
question of the fee title to the premises.  In the event of any transfer of such

                                       21.
<PAGE>
fee  title, the Landlord herein named (and in case of any subsequent transfer or
conveyances,  the  then  grantor)  shall  after  the  date  of  such transfer or
conveyance  be automatically freed and relieved of all liability with respect to
performance of any covenants or obligations on the part of Landlord contained in
this  Lease thereafter to be performed; provided, that any funds in the hands of
Landlord or the then grantor at the time of such transfer in which Tenant has an
interest,  shall  be  turned over to the grantee.  The covenants and obligations
contained in this Lease on the part of Landlord shall, subject to the foregoing,
be binding upon each Landlord hereunder only during his or its respective period
of  ownership.

     31.     Rules  and  Regulations  of  Building.
             --------------------------------------

          31.1     The  sash  doors,  sashes,  windows, glass doors, lights, and
skylights  that  reflect  or  admit  light into the halls or other places of the
Building  shall not be covered or obstructed.  The toilets and urinals shall not
be used for any purpose other than those for which they were constructed, and no
rubbish,  newspapers  or other substances of any kind shall be thrown into them.
Waste  and excessive or unusual use of water shall not be allowed.  Tenant shall
not  mark,  drive  nails,  screw or drill into, paint, nor in any way deface the
walls,  ceilings,  partitions, floors, wood, stone or iron work.  The expense of
any  breakage,  stoppage or damage resulting form a violation of this rule shall
be  borne  by  Tenant.

          31.2     No  additional lock or locks shall be placed by Tenant on any
door  in  the  Building unless written consent of Landlord shall have first been
obtained.  All  keys  shall  be  surrendered to Landlord upon termination of the
tenancy.

          31.3     Tenant  and  its guests and employees shall not bring into or
keep  within  the  Building any animal (with the exception of dog guides for the
blind)  or  motorcycle  or  other  motor  vehicle.

          31.4     No  awnings  are  allowed.  Any  window  covering  desired by
Tenant  shall  be  installed  at  its expense and must be of such uniform shape,
color,  material  and  make  as  may  first  be  approved  by  Landlord.

          31.5     Except  for  authorized maintenance personnel, neither Tenant
nor  its  employees  or  invitees  shall  go  upon  the  roof.

          31.6.     Tenant  may  use  or  keep  in  the  building  solvents  and
inflammable  or  combustible  fluid  and  materials as long as such material and
fluids  are  stored  in  accordance with the procedures established by the local
regulatory  authorities.

          31.7     Landlord  shall have the right to prohibit any advertising by
Tenant  which,  in Landlord's reasonable opinion, tends to impair the reputation
of  the  Building,  and  upon written notice from Landlord, Tenant shall refrain
from  or  discontinue  such  advertising.

     32.     General  Provisions.
             --------------------

          32.1     Entire  Agreement.  This  instrument  including  the Exhibits
                   ------------------
attached  hereto  contains all of the agreements and conditions made between the
parties  hereto and may not be modified orally or in any manner other than by an
agreement  in  writing  signed  by all of the parties hereto or their respective
successors  in  interest.  Any  executed  copy  of this Lease shall be deemed an
original  for  all  purposes.

          32.2     Time.  Time is of the essence with respect to the performance
                   -----
of  each  and  every  provision  of this Lease in which time of performance is a
factor.  All  references to days contained in this Lease shall be deemed to mean
calendar  day,  unless  otherwise  specifically  stated.

                                       22.
<PAGE>
          32.3     Captions.  The  captions  and  headings  of  the  numbered
                   ---------
paragraphs  of this Lease are inserted solely for the convenience of the parties
hereto,  and  are  not  a  part  of this Lease and shall have no effect upon the
construction  or  interpretation  of  any  part  hereof.

          32.4     California  Law.  This  Lease  shall  be  construed  and
                   ----------------
interpreted  in  accordance with the laws of the State California.  The language
in  all parts of this Lease shall in all cases be construed as a whole according
to  its  fair meaning and not strictly for or against either Landlord or Tenant,
and  without  to  which  party  prepared  this  Lease.

          32.5     Gender; Singular and Plural.  When required by the context of
                   ----------------------------
this  Lease,  the  neuter includes the masculine, the feminine, a partnership, a
corporation,  or  a  joint  venture,  and the singular shall include the plural.

          32.6     Partial  invalidity.  If  any provision of this Lease is held
                   --------------------
by  a court of competent jurisdiction to be invalid, void, or unenforceable, the
remaind  of  the  provisions hereof shall nonetheless continue in full force and
effect  and  shall  in  no  way  be  affected, impaired, or invalidated thereby.

          32.7     No Warranties.  Any agreements, warranties or representations
                   --------------
not  expressly  contained  herein  shall not bind either Landlord or Tenant, and
Landlord  and  Tenant  expressly  waive  all claims for damages by reason of any
statement, representation, warranty, promise or agreement, if any, not expressly
contained  in  this  Lease.

          32.8     Joint  and  Several  Liability.  If  Tenant  is more than one
                   -------------------------------
person  or  entity,  each  such  person or entity shall be jointly and severally
liable  for  the  obligations  of  Tenant  hereunder.

          32.9     Successors  and Assigns.  The covenants and conditions herein
                   ------------------------
contained,  subject  to the provisions as to assignment, shall apply to and bind
the  heirs,  executors,  administrators, assigns, and any other person or entity
succeeding lawfully, and pursuant to the provisions of this Lease, to the rights
or  obligations  of  either  party  of  all  of  the  parties  hereto.

          32.10     Rules  and  Regulations.  Landlord  may  from  time  to time
                    ------------------------
promulgate  reasonable  rules  and regulations in addition to those set forth in
Paragraph  31  above for the use, safety, care, and cleanliness of the premises,
and the preservation of good order thereon.  Such rules and regulations shall be
binding  upon Tenant upon delivery of a copy thereof to Tenant, and Tenant shall
abide  by  all  such rules and regulations.  If there is a conflict between such
rules and regulations and any of the provisions of this Lease, the provisions of
this  Lease  shall  prevail.

          32.11     Authority.  The  parties  hereby  represent and warrant that
                    ----------
they have all necessary power and authority to execute and deliver this Lease on
behalf  of  Landlord  and  Tenant,  respectively.

          32.12     Memorandum  of  Lease.  Neither  Landlord  nor  Tenant shall
                    ----------------------
record  this  Lease  or a short form memorandum hereof without the prior written
consent  of  the  other.

          32.13     Merger.  The  voluntary or other surrender of this Lease, or
                    -------
a mutual cancellation thereof, shall not work an automatic merger, but shall, at
the  sole  option of Landlord, either terminate all or any existing subleases or
subtenancies,  or  operate  as  an  assignment to Landlord of any or all of such
subleases  or  subtenancies.

                                       23.
<PAGE>
          32.14     Force  Majeure.  Any  prevention  of  or  delay  in  the
                    ---------------
performance  by  a  party  hereto  of its obligations under this Lease caused by
inclement weather, labor disputes (including strikes and lockouts), inability to
obtain materials or reasonable substitutes therefore, governmental restrictions,
regulations, controls, action or inaction, civil commotion, fire or other causes
beyond  the  reasonable  control  of  the  party  obligated  to  perform (except
financial  inability),  shall  excuse  the  performance  by  such  party  of its
obligations  hereunder  (except  the  obligation of Tenant to pay rent and other
sums  hereunder)  for  a  period  of  one  day  for  each  such  day  of  delay.

          32.15     Real  Estate Brokers.  Except for Cunningham  Associates and
                    ---------------------             --------------------------
Cornish and Carey Commercial Real Estate, whose commission or fee shall be  paid
-----------------------------                                          ---------
by  Creekside  Industrial  Associates  in  accordance  with  the provisions of a
-------------------------------------
separate  commission  agreement,  each  party represents that it has not had any
dealings  with  any real estate broker, finder, or other person, with respect to
this Lease, and each party shall hold harmless the other party from all damages,
expenses, and liabilities resulting from any claims that may be asserted against
the other party by any broker, finder, or other person with whom the other party
has  or  purportedly  has  dealt.

          32.16     Additional Paragraphs.  Paragraphs 33 through 35, as well as
                    ----------------------             --         --
the  following  exhibit,  are  added  hereto  and  made  a  part  of this Lease.

          Exhibit  "A"  --  Premises

     IN  WITNESS  WHEREOF,  Landlord  and Tenant have executed this Lease on the
dates  specified  below  immediately  adjacent  to  their respective signatures.
Delivery  of  this  Lease  to  Landlord, duly executed by Tenant, constitutes an
offer  by  Tenant  to  lease  the  premises  as  herein  set forth, and under no
circumstances  shall  such delivery be deemed to create an option or reservation
to  lease  the premises for the benefit of Tenant.  This Lease shall only become
effective and binding upon execution of this Lease by Landlord and delivery of a
signed  copy  to  Tenant.

                                               LANDLORD:

                                               Creekside  Industrial  Associates
                                               ---------------------------------
                                               a  partnership
                                                 -------------------------------

Date:     1/17/86                              By  /s/  Anthony  P.  Meier
      ---------------                            -------------------------------

Date:     1/17/86                              By  Preferred Properties Fund 80,
      ---------------                            -------------------------------
                                               by Montgomery  Realty Company  80
                                               ---------------------------------
                                               by Montgomery  Realty Investments
                                               ---------------------------------
                                              /s/ Anna Cheng - Portfolio Manager
                                               ---------------------------------

                                              TENANT:

                                               I.  C.  Sensors
                                               ---------------------------------
                                               a  California  Corporation
                                                 -------------------------------

Date:     Jan  17,  1986                       By  /s/  Donald  G.  Lynam
      ---------------------                       ------------------------------

Date:                                          By
      ---------------------                       ------------------------------

                                       24.
<PAGE>

     33.     Option  to  Extend.
             -------------------

          33.1     Option.  At  the  expiration of the original term hereof, and
                   -------
provided  Tenant is not then in default hereunder, Tenant may extend the term of
this  Lease  for  an  additional  period  of sixty months (60) months commencing
                                             ------------  --
immediately  following  the Expiration Date (the "Extended Term").  Tenant shall
exercise this option, if at all, by giving Landlord notice of Tenant's intention
to  do  so  at least one hundred eighty (180) days prior to the Expiration Date.
Such extended term shall be upon all of the terms and the Expiration Date.  Such
extended  term shall be upon all of the terms and conditions hereof, except that
the  monthly  rental  for the renewal term shall be ninety five percent (95%) of
the  fair  market rental and shall be determined by negotiation and agreement of
Landlord  and  Tenant.  Unless  expressly  mentioned and approved in the written
consent  of  Landlord  provided  for  by  Paragraph 17 of this Lease, the option
rights  of Tenant under this Paragraph are granted for Tenant's personal benefit
and  may  not  be  assigned  or  transferred  by  Tenant.

          33.2     Extended  Term  Rent.  As of the commencement of the Extended
                   ---------------------
Term,  the  monthly  Base  Rent  for  the  Extended  Term  shall  be  subject to
negotiations  between  Landlord  and  Tenant  as  to  a fair market rental.  The
renegotiated rent will not take into consideration any improvements installed in
the  premises  by  Tenant at Tenant's expense.  In the event the parties fail to
agree  upon  the  amount of the monthly Base Rent for the Extended Term prior to
commencement  thereof,  the  monthly  Base  Rent  for the Extended Term shall be
determined  by  appraisal  in the manner hereafter set forth; provided, however,
that  in no event shall the monthly Base Rent for the Extended Term be less than
the  monthly  Base  Rent  payable hereunder for the last full month of the Lease
term  immediately  preceding  commencement  of  the  Extended  Term.

          In  the  event  it  becomes  necessary under this subparagraph 33.2 to
determine  the  fair  market  monthly  Base  Rent  of the premises by appraisal,
Landlord  and Tenant each shall appoint an experienced real estate appraiser who
shall be a member of the American Institute of Real Estate Appraisers ("AIREA"),
and  such  appraisers shall each determine the fair market monthly Base Rent for
the  premises,  taking  into  account  the  value of the premises and prevailing
comparable  rentals  in  the  area.  Such  appraisers  shall, within twenty (20)
business  days  after  their  appointment , complete their appraisals and submit
their  appraisal reports to Landlord and Tenant. If the fair market monthly Base
Rent  of  the  premises  established  in  the  two (2) appraisals varies by five
percent  (5%)  or  less  of  the  higher rental, the average of the two shall be
controlling.  If  said  fair  market  monthly Base Rent varies by more than five
percent  (5%)  of the higher rental, said appraisers, within ten (10) days after
submission of the last appraisal, shall appoint a third appraiser who shall be a
member  of  the  AIREA.  Such third appraiser shall, within twenty (20) business
days  after his appointment, determine by appraisal the fair market monthly Base
Rent  of  the  premises, taking into account the same factors referred to above,
and  submit his appraisal report to Landlord and Tenant. The fair market monthly
Base  Rent  determined  by  the  third  appraiser  for  the  premises  shall  be
controlling,  unless  it  is  less  than  that  set forth in the lower appraisal
previously  obtained,  in which case the value set forth in said lower appraisal
shall  be controlling, or unless it is greater than that set forth in the higher
appraisal previously obtained, in which case then rental set forth in the higher
appraisal shall be controlling. If either Landlord or Tenant fails to appoint an
appraiser,  or  if  an  appraiser  appointed  by either of them fails, after his
appointment,  to  submit  his appraisal within the required period in accordance
with  the foregoing, the appraisal submitted by the appraiser properly appointed
and  timely submitting his appraisal shall be controlling. If the two appraisers
appoint by Landlord and Tenant are unable to agree upon a third appraiser within
the  required period in accordance with the foregoing, application shall be made
within  twenty  (20)  days thereafter by either Landlord or Tenant to the AIREA,
which  shall  appoint  a member of said institute willing to serve as appraiser.
The  cost  of  all  appraisals under this subparagraph shall be borne equally by
Landlord  and  Tenant.

<PAGE>
     34.     Landlord's  Work.  Landlord  shall  perform  the  following work to
             -----------------
prepare  the  premises  for  Tenant's  occupancy:

          34.1     Provide  new  sheet  floor  covering  in  restrooms.
          34.2     Paint  restrooms.
          34.3     All  plumbing  fixtures shall be in good working condition to
                   the  best  of  Landlord's  knowledge.
          34.4     All  lighting  fixtures shall be in good working condition to
                   the  best  of  Landlord's  knowledge.
          34.5     All  air-conditioning  equipment  shall  be  in  good working
                   condition  to the  best of Landlord's knowledge; laminar flow
                   hoods  and  specialty  air  systems  excepted.
          34.6     Landlord  shall  cause  to have removed from the premises the
                   following  equipment:
                      (a)  Degreaser
                      (b)  Chiller  and  still
                      (c)  Carousel

     35.     Tenant's  Work.  Tenant  agrees  to construct, at Tenant's expense,
             ---------------
additional  improvements  as  follows:

          35.1     Installation  of  a floor drain with secondary containment in
                   the  warehouse area  along the drain line towards the rear of
                   the  building.
          35.2     Installation  of  an  outside chemical storage area using the
                   dock access ramp or in such  other area(s) as approved by the
                   regulatory  authorities.  Said  area  shall  be divided  by a
                   cement  block  wall,  curbed  for  secondary containment  and
                   fence  to  provide  security  and  screening.
          35.3     Installation of plastic piping to form a DI water loop within
                   the  perimeter  of  the  existing  clean room and  such other
                   areas  as determined  by  the  Tenant.
          35.4     Removal  of partitions of approximately nine private offices,
                   removal of carpet  in the area and installation of vinyl tile
                   flooring.
          35.5     Installation  of  exhaust  fans  and  ducts through the roof.
                   Tenant  shall  flash  and  re-roof all  penetrations with hot
                   mopping.
          35.6     Installation of a "clean-out" drain in the office/engineering
                   area  near  the  existing  washrooms.

          Landlord  consents to said work, however, said work shall be performed
per  the guidelines of Paragraph 9 herein. Landlord shall not be liable for, nor
is  this  lease  conditioned  upon,  Tenant's  ability  to  perform  said  work.

<PAGE>
FIRST  ADDENDUM  TO  LEASE  AGREEMENT  BETWEEN  CREEKSIDE INDUSTRIAL ASSOCIATES,
LANDLORD,  AND  I.  C.  SENSORS,  INC.,  A CALIFORNIA CORPORATION, TENANT, DATED
JANUARY  31,  1990.

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

This  Lease Addendum is entered into by and between the parties and shall become
a  part  of  that  Lease  Agreement  dated  January  10,  1986.

RECITALS:
--------

     Landlord  and  Tenant agree to extend that Lease Agreement referenced above
for  the  premises  located  at  1701  McCarthy  Boulevard,  Milpitas, CA 94035,
consisting  of  approximately  33,922  square  feet  of  building  plus parking.

     Further, Landlord and Tenant agree that all terms, conditions and covenants
of  that Lease Agreement referenced above shall govern and prevail over the term
of  the  extended  lease  period  with the exception of the following paragraphs
which  shall  govern:

     36.     EXTENDED TERM.  The term for the extended period shall be for sixty
             --------------
(60)  months  commencing  February  1,  1991,  and  ending  January  31,  1996.

     37.     RENTAL  REDUCTION.  As  consideration for extending the lease term,
             ------------------
Landlord  grants  a  rental reduction of the base rent for the final twelve (12)
month  period  of  the initial lease term.  Therefor,  for the period commencing
February  1,  1990 through January 31, 1991, the monthly net rent paid by Tenant
shall  be  $25,441.

     38.     RENTAL  DURING  EXTENDED  TERM.  During the extended term, the base
             -------------------------------
monthly  rent  shall  be:

          $25,441  for  the  period  2/1/91  -  1/31/92
          $26,713  for  the  period  2/1/92  -  1/31/93
          $28,049  for  the  period  2/1/93  -  1/31/94
          $29,451  for  the  period  2/1/94  -  1/31/95
          $30,924  for  the  period  2/1/95  -  1/31/96

All  rents  are  due  on  the  first  day  of  each and every month, in advance.

     39.     LANDLORD'S  WORK.  Landlord  shall  perform the following work in a
             -----------------
timely  manner  and  at  the  reasonable  convenience  of  Tenant.

          1)  Front  Lobby  - The lobby shall be redecorated with new carpeting,
              ------------
wall covering and ceiling tiles.  The ceiling grid shall be cleaned or repainted
as  necessary.

          2)  Exterior  Lighting - Existing light standards shall have installed
              ------------------
new fixtures that illuminate the parking area to reasonable standards of safety.
Building "wall pack lights" shall be checked and bulb size shall be increased or
new  fixtures shall be installed to provide additional illumination.

          3)  Restroom  Addition- An additional men's and women's restroom shall
              ------------------
be  constructed to include: men's restroom - two lavatories, two urinals and two
water  closets;  women's  restroom  -  two  lavatories and two water closets.  A
supply/janitor  closet shall be constructed within the restroom complex.  Tenant
and  Landlord shall mutually designate an area of approximately 20' x 20' at the
rear  of  the  building  for  construction  of  the  restroom  complex.

          4)  Painting  -  All  interior  painted  walls  shall  be  repainted.
              --------

<PAGE>
First  Addendum
I.  S.  Sensors,  Inc.
January  24,  1990
Page  2  of  2

          5) Patio Cover - A partial cover shall be provided over the rear patio
             -----------
eating  area.

     The  design,  specification and color of all materials shall be approved by
the  parties.  All  workmanship  and  materials shall be equal to or better than
existing.

IN  WITNESS  WHEREOF,  Landlord and Tenant have executed these presents, the day
and  year  first  above  written.

LANDLORD                                    TENANT
--------                                    ------

/s/  Anna  Cheng                            /s/  Donald  G.  Lynam
----------------                            ----------------------
Anna  Cheng                                 Donald  G.  Lynam
for  Preferred  Properties  80              CEO
                                            for  I.  C.  Sensors,  Inc.

/s/  Anthony  P.  Meier
-----------------------
Anthony  P.  Meier
for  Creekside  Industrial
Associates

<PAGE>
                                      LEASE
                                      -----

                         CREEKSIDE INDUSTRIAL ASSOCIATES
                         -------------------------------
                                    Landlord

                                  I.C. SENSORS
                         -------------------------------
                                     Tenant

                              ADDRESS OF PREMISES:

                             1701 MCCARTHY BOULEVARD
                               MILPITAS, CA 95035

<PAGE>
                            SECOND ADDENDUM TO LEASE

     This  Second Addendum to Lease (this "Second Addendum") is made and entered
into  by  and  between  Creekside  Industrial  Associates,  a California general
partnership  ("Landlord"),  and  I.C.  Sensors,  Inc.,  a California corporation
("Tenant"),  effective  the  first  day  of  April,  1992.

                                    RECITALS

     A.     Landlord  and  Tenant  have  entered  into  that certain Lease dated
January  10,  1986, as amended by that certain First Addendum to Lease Agreement
dated  January  31,  1990  (collectively  the  "Lease"), respecting the premises
located  at  1701  McCarthy  Boulevard,  Milpitas,  California.

     B.     Landlord  and  Tenant desire to amend the provisions of the Lease as
set forth  below.

                                   AGREEMENT

     NOW,  THEREFORE,  Landlord  and  Tenant  hereby  agree  as  follows:

     1.     Title  to Alterations.  Notwithstanding  the provisions of Paragraph
            ----------------------
9.5  of  the Lease to the contrary, any alterations or improvements which may be
made  on  the premises by Tenant, at Tenant's cost, shall remain the property of
Tenant  until  the  expiration  or earlier termination of the term of the Lease.
Except as expressly set forth above, any such improvement or alteration shall be
subject  to  all  of  the  other  existing  terms  and  conditions of the Lease.

<PAGE>
     2.     No  Further  Modifications.  Except  as expressly  modified  by this
            --------------------------
Second  Addendum,  the  terms  and  conditions of the Lease shall remain in full
force  and  effect.

     IN  WITNESS WHEREOF, Landlord and Tenant have executed this Second Addendum
effective  as  of  the  date  first  above  written.

                                        "Landlord"

                                        Creekside Industrial Associates, a
                                        California  general  partnership

                                        By:  The Meier  Group, a California
                                             limited  partnership,  general
                                             partner

                                             By:
                                                --------------------------------
                                                Anthony  P.  Meier,
                                                General  Partner

                                        Preferred  Properties  Fund  80,  a
                                        California  limited partnership, general
                                        Partner

                                        By:  Montgomery Realty Company - 80, a
                                             California limited partnership, its
                                             general partner

                                          By:  Metric  Realty  Services,  L.P.,
                                               a  Delaware  limited
                                               Partnership,  as  Attorney-in-
                                               Fact

                                             By:  MP  Services,  Inc.,  a
                                                  Delaware  corporation,  its
                                                  general  partner

                                                  By: /s/
                                                     ---------------------------

                                                     Its: Portfolio Manager
                                                         -----------------------

                                        "Tenant"

                                        I.C.  Sensors,  Inc.,  a  California
                                        corporation

                                        By: /s/
                                           -------------------------------------

                                           Its: Vice President
                                               ---------------------------------

<PAGE>
THIRD  ADDENDUM  TO  LEASE  AGREEMENT DATED 1/10/86 BETWEEN CREEKSIDE INDUSTRIAL
ASSOCIATES,  LANDLORD,  AND  I.C.  SENSORS,  INC.,  A  CALIFORNIA  CORPORATION

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

This  Lease  Addendum  is  entered  into on this 24th day of March, 1995, by and
                                                 ----        -----
between  the  parties  and  shall  become  a  part of that Lease Agreement dated
January  10,  1986.

RECITALS:
---------

     Landlord,  Beneficiary  and  Tenant  agree  to  extend that Lease Agreement
referenced  above for the premises located at 1701 McCarthy Boulevard, Milpitas,
CA  94035,  consisting  of  approximately  33,922  square  feet of building plus
parking.

     Further, Landlord, Beneficiary and Tenant agree that all terms, conditions,
and  covenants of that Lease Agreement referenced above shall govern and prevail
over  the  term of the extended lease period with the exception of the following
paragraphs  which  shall  govern:

     39.     EXTENDED  TERM.  The  term  for  the  extended  period shall be for
             --------------
fifty-nine  (59)  months  commencing  February  1, 1996, and ending December 31,
2000.

     40.     RENTAL  DURING EXTENDED TERM.  During  the  extended term, the base
             ----------------------------
monthly rent  shall  be:

               $22,049  for  the  period  02/1/96 - 01/31/97

               $22,897  for  the  period  02/1/97 - 01/31/98
               $23,745  for  the  period  02/1/98 - 01/31/99
               $24,593  for  the  period  02/1/99 - 12/31/99
               $25,442  for  the  period  01/1100 - 12/31/00

All  rents  are  due on the first day of each arid every month, in advance.

     41.     OPTION  TO  EXTEND,  Tenants  shall  have  the option to extend the
             ------------------
extended  term for one (1) five-year term. The term shall commence on January 1,
2001  and  terminate  on  December 31, 2005. Tenant shall notify Landlord of its
election  to  exercise

<PAGE>
this option, in writing, on or before July 1, 2000. The base monthly rent during
the  entire  extended  term  shall  be  $26,290.

     42.     OPTION  TO  PURCHASE.  Tenant shall have the option to purchase the
             --------------------
premises  at  any  time  before  April  1,1996.  The  purchase  price  shall  be
$2,377,000,  with  no  financing  contingencies.

     Tenant  shall  notify  Landlord of its election to purchase, in writing, at
least  30  days  prior to the purchase date. Tenant represents that no brokerage
commissions  shall  be  due  on  its  behalf  for  this  transaction.

     43.     TENANT'S  WORK.  Landlord  shall  allow  Tenant  to  construct  the
             ---------------
following  improvements  to  the  premises:

     -     Upgrade  the  existing  electrical  service  and  distribution.

     -     Increase  water  and  sewer  capacity.

     -     Increase  HVAC  capacity.

     -     Bring  Premises  into  compliance  with  the  ADA.

IN  WITNESS  WHEREOF,  Landlord,  Beneficiary  and  Tenant  have  executed these
presents,  the  day  and  year  first  above  written.

LANDLORD                                       TENANT
--------                                       ------

SEE  SIGNATURE  BLOCK  ATTACHED
-----------------------------------            ---------------------------------
for Creekside Industrial Associates            for  I.  C.  Sensors,  Inc.

                                                     4/12/95
-----------------------------------            ---------------------------------
DATE                                           DATE

BENEFICIARY (See letter dated March 14, 1995 attached to and made a part of this
-----------
Addendum)

-----------------------------------------
Mutual Life Insurance Company of New York

--------------------------
DATE

<PAGE>
THIRD  ADDENDUM  TO  LEASE  AGREEMENT DATED 1/10/86 BETWEEN CREEKSIDE INDUSTRIAL
ASSOSIATES,  LANDLORD,  AND  I.C.  SENSORS,  INC.,  A  CALIFORNIA  CORPORATION

LANDLORD
--------
CREEKSIDE INDUSTRIAL ASSOCIATES

PREFERRED PROPERTIES FUND 80
By: METRIC MANAGEMENT, INC.
    AS AGENT FOR OWNER

/s/  Richard A. Faber
----------------------
     Richard A. Faber
     Vice President

Date: 3/24/95
      -------

<PAGE>
                                GUARANTY OF LEASE

          THIS  GUARANTY  OF  LEASE  ("Guaranty")  is  made  as of June 2000, by
MEASUREMENT  SPECIALTIES, INC., a New Jersey corporation ("Guarantor"), in favor
of  DL  CREEKSIDE  BUSINESS  PARK,  LLC,  a  Delaware  limited liability company
("Landlord"),  with  reference  to  the  following  facts~

          A.  Landlord  is  the owner of certain real property commonly known as
1701  McCarthy  Boulevard,  Milpitas,  CA  94035  (the  "Property").

          B.  I.  C.  Sensors,  Inc., a California corporation ("Tenant") is the
lessee  of  the  Property pursuant to that certain Lease dated January 10, 1986,
between  Tenant  and Creekside Industrial Associates ("CIA"), as amended by that
certain  First Addendum to Lease Agreement between CIA and Tenant, dated January
31,  1990,  that  certain Second Addendum to Lease between CIA and Tenants dated
April 1,1992, and that certain Third Addendum to Lease Agreement between CIA and
Tenant,  dated  March  24,  1995  (collectively,  the  "Lease")

          C.  Tenant  has  requested  Landlord's  consent  to  the  transfer  of
ownership  of all of the outstanding shares of Tenant to Guarantor. Guarantor is
willing  to  execute  this  Guaranty  for  the  express  and intended purpose of
inducing  Landlord  to  consent  to  such  transfer, and in consideration of the
anticipated  benefit  to  Guarantor of obtaining such consent Landlord would not
consent  to such transfer but for the execution and delivery of this Guaranty by
Guarantor.

          D.  Guarantor  is  executing  this  Guaranty  in  consideration of the
anticipated  benefit  of  obtaining  Landlord's  consent  to.

     NOW,  THEREFORE,  for  good  and  valuable  consideration,  the receipt and
sufficiency of which are hereby acknowledged and agreed, Guarantor hereby agrees
as  follows:

     1.  Guaranty. Guarantor does hereby absolutely and unconditionally, jointly
         --------
and  severally  guarantee  to  Landlord  the  prompt payment of all amounts that
Tenant,  or  any  assignee of Tenant's interest under the Lease, may at any time
owe  under  the  Lease,  any  extensions, renewals or modifications thereof, and
further  guarantees  to  Landlord  the  full, prompt and faithful performance by
Tenant, or any assignee of Tenant's interest under the Lease, of each and all of
the  covenants,  terms,  and  conditions  of  the  Lease,  or  any  extensions,
modifications or renewals thereof, to be hereafter performed and kept by Tenant,
or  any  assignee of Tenant's interest under the Lease (all such, obligations of
Tenant  under  the  Lease  are referred to as "Tenant's Obligations"). Guarantor
hereby  agrees  to  indemnify,  defend and hold Landlord harmless of a breach or
default under the Lease by Tenant or any assignee of Tenant's interest under the
Lease,  provided,  that,  Guarantor's  liability to Landlord for any such Claims
shall  be  limited  to  an  amount  equal to the amount of (i) the damages which
Landlord  would  be  entitled  to  receive  under  the Lease as a result of such

<PAGE>
breach  or  default  without  regard  to  the  occurrence  of any event that may
discharge  Tenant  from  liability  therefor (such as the bankruptcy of Tenant),
plus (ii) all reasonable costs and expenses incurred by Landlord in enforcing or
establishing its rights under this Guaranty and/or the Lease, including, without
limitation,  court  costs  and  reasonable  attorneys'  fees  and disbursements.

See  Supplement,  Page  2A.

     2.  Independent  Obligations.  Guarantor's  obligations  hereunder  are
         ------------------------
independent  of  the  obligations of Tenant, or any assignee of the Lease, and a
separate  action  or  actions  may  be  brought and prosecuted against Guarantor
whether  or not action is brought against Tenant or any such assignee or whether
or  not  Tenant  or  any  such assignee be joined in any such action or actions.

     3.  Rights  of  Landlord.  Guarantor authorizes Landlord, without notice or
         --------------------
demand  and  without affecting its liability hereunder, from time to time to (a)
extend, accelerate, or otherwise change the time for any payment provided for in
the  Lease,  or  any covenant, term or condition of the Lease, impair or suspend
the  Landlord's  remedies or rights against Tenant in connection with the Lease,
and  to  consent to any assignment, subletting or reassignment of the Lease; (b)
take  and  hold  security  for  any payment provided for in the Lease or for the
performance  of  any covenant term or condition of the Lease, or exchange, waive
or  release  any  such security; (c) apply such security and direct the order or
manner  of  sale  thereof  as Landlord in its discretion may determine; and (d)
release  or  substitute  Tenant or any other guarantor or other person or entity
liable  in  respect  of  all  or  any part of Tenant's Obligations. Landlord may
without  notice  assign  this  Guaranty,  the Lease, or the rents and other sums
payable  thereunder.  Notwithstanding  any  termination,  renewal, extension  or
holding  over  of  the Lease, this Guaranty shall continue until all of Tenant's
Obligations  have  been fully and completely performed by Tenant or any assignee
of  the  Lease.

Guarantor  shall  not  be released by any act or event which might, but for this
provision  of  this  Guaranty,  be  deemed  a  legal or equitable discharge of a
surety,  or  by  reason  of  any waiver, extension, modification, forbearance or
delay or other act or omission of Landlord or its failure to proceed promptly or
otherwise  as  against  Tenant or Guarantor, or by reason of any action taken or
omitted or circumstance which may or might vary the risk or affect the rights or
remedies  of  Guarantor  as against Tenant, or by reason of any further dealings
between  Tenant  and  Landlord,  whether relating to the Lease or otherwise, and
Guarantor  hereby  expressly  waives and surrenders any defense to its liability
hereunder  based  upon any of the foregoing acts, omissions, things, agreements,
waivers  or  any  of them; it being the purpose and intent of this Guaranty that
the  obligations of Guarantor hereunder are absolute and unconditional under any
and  all  circumstances.

Guarantor  further  agrees  that  to  the  extent  Tenant or Guarantor makes any
payment  to Landlord in connection with Tenant's Obligations and all or any part
of  such  payment  is  subsequently  invalidated,  declared  to be fraudulent or
preferential,  set  aside or required to be repaid by Landlord or paid over to a
trustee,  receiver  or  any  other  entity,  whether under any bankruptcy act or
otherwise  (any  such  payment  is  hereinafter  referred  to as a "Preferential
Payment"),  then  this  Guaranty  shall  continue  to  be  effective or shall be
reinstated,  as the case may be, and, to the extent of such payment or repayment
by  Landlord,  Tenant's  Obligations  or  part  thereof  intended

<PAGE>
to  be  satisfied by such Preferential Payment shall be revived and continued in
full  force  and  effect  as  if  said  Preferential  Payment had not been made.

     4. Waiver of Defenses.  Guarantor  waives (a) any right to require Landlord
        ------------------
to  (i)  proceed  against  Tenant  or any other guarantor or any other person or
entity;  (ii)  proceed  against  or  exhaust  any  security  held from Tenant or
Guarantor;  (iii)  pursue  any  other remedy in Landlord's power which Guarantor
cannot  itself  pursue,  and which would lighten its burden; (b) all statutes of
limitations  as a defense to any action brought against Guarantor by Landlord to
the  fullest  extent  permitted  by  law;  (c)  any defense based upon any legal
disability  of  Tenant,  or  any  assignee  of  the  Lease,  or any discharge or
limitation  of  the  liability  of  Tenant,  or  any  assignee  of the Lease, to
Landlord,  whether  consensual or arising by operation of law or any bankruptcy,
reorganization,  receivership,  insolvency, or debtor-relief proceeding, or from
any other cause; (d)  presentment,  demand,  protest and notice of any kind; and
(e)  any  defense  based upon or arising out of any defense which Tenant, or any
assignee  of  the  Lease,  may have to the payment or performance of any part of
Tenant's  Obligations. Guarantor waives all demands upon and notices to Tenant,
or  any  assignee  of  Tenant's  interest  under  the  Lease,  and to Guarantor,
including  demands  for  performance,  notices  of  non-performance,  notices of
non-payment  and  notice  of  acceptance  of  this  Guaranty.

     5.  Waiver of Subrogation.
         ---------------------

          (a)  Notwithstanding  any  other  prevision  of  this  Guaranty to the
contrary,  until  the  obligations of Tenant under the Lease are fully performed
and paid, Guarantor hereby waives any claims or other rights which Guarantor may
now  have  or  hereafter acquire against Tenant or any other guarantor of all or
any  of  Tenant's  Obligations,  which  claims  or  other  rights arise from the
existence  or  performance of Guarantor's obligations under this Guaranty or the
Lease  (all  such  claims and rights are referred to as "GUARANTOR'S CONDITIONAL
RIGHTS"),  including,  without  limitation,  any  right  of  subrogation,
reimbursement,  exoneration,  contribution,  or  indemnification,  any  right to
participate  in any claim or remedy of Landlord against Tenant or any collateral
which  Landlord now has or hereafter acquires, whether or not such claim, remedy
or  right  arises  in  equity  or  under contract, statute or common law, by any
payment  made hereunder or otherwise, including without limitation, the right to
take  or  receive from Tenant, directly or indirectly, in cash or other property
or  by  setoff  or  in  any other manner, payment or security on account of such
claim or other rights.  If, notwithstanding the foregoing provisions, any amount
shall  be paid to Guarantor on account of any Guarantor's Conditional Rights and
either  (i)  such  amount  is  paid  to  Guarantor  at  any  time  when Tenant's
Obligations shall not have been paid or performed in full, or (ii) regardless of
when such amount is paid to Guarantor, any payment made by Tenant to Landlord is
at  any  time  determined to be a Preferential Payment, then such amount paid to
Guarantor shall be held in trust for the benefit of Landlord and shall forthwith
be  paid  to  Landlord  to  be  credited  and applied upon Tenant's Obligations,
whether  matured  or  unmatured,  in  such  order  as  Landlord, in its sole and
absolute  discretion,  shall  determine.

          (b)  To the extent that any of the provisions of subsection (a) of the
above Section shall not be enforceable, Guarantor agrees that until such time as
Tenant's  Obligations  have  been

<PAGE>
paid  and  performed in full and the period of time has expired during which any
payment  made  by  Tenant  or  Guarantor to Landlord  may  be determined to be a
Preferential  Payment,  Guarantor's Conditional Rights to the extent not validly
waived  shall be subordinate to Landlord's right to full payment and performance
of Tenant's Obligations, and Guarantor shall not enforce Guarantor's Conditional
Rights  during  such  period.

     6.     Costs  and  Expenses  If  Guarantor  fails  to  perform  any  of its
            --------------------
obligations  under  this  Guaranty  or if any dispute arises between the parties
hereto  concerning  the  meaning  or  interpretation  of  any  provision of this
Agreement,  then  the  defaulting  party  or  the  party  not prevailing in such
dispute,  as  the case may be, shall pay any and all costs and expenses incurred
by  the  other  party  on  account  of  such  default  and/or  in  enforcing  or
establishing  its  rights  hereunder, including, without limitation, court costs
and  reasonable  attorneys' fees and disbursements. Any such attorneys' fees and
other  expenses  incurred  by  either party in enforcing a judgment in its favor
under this Agreement shall be recoverable separately from and in addition to any
other  amount  included in such judgment, and such attorneys' fees obligation is
intended  to  be  severable  from  the other provisions of this Agreement and to
survive  and  not  be  merged  into  any  such  judgment.

     7.     Notices.  Any  notice,  demand  or  request by Landlord to Guarantor
            -------
shall  be  in  writing  and  shall  be deemed to have been duly given or made if
personally  delivered,  sent  by  overnight  courier  or  mailed by certified or
registered  mail addressed to Guarantor at the address set forth below. Any such
notice  shall  be  deemed  given  upon  actual receipt (or attempted delivery if
delivery  is  refused.)

                              Guarantor:     Measurement  Specialties,  Inc.
                              ---------

See  Supplement, Page 4 A.                   __________________________________
                                             __________________________________
                                             __________________________________

     8.  Delay; Cumulative Remedies. No delay or failure by Landlord to exercise
         --------------------------
any right or remedy against Tenant or Guarantor will be construed as a waiver of
that  right or remedy. All remedies of Landlord against Tenant and Guarantor are
cumulative.

     9.  Miscellaneous.
         -------------

          (a)  This  Guaranty  shall  bind  Guarantor,  its  heirs,  executors,
successors  and  assigns,  and  shall  inure  to the benefit of Landlord and its
successors  and  assigns.

          (b)  The  invalidity or unenforceability of any one or more provisions
of  this  Guaranty  will  not  affect  any  other  provision.

<PAGE>
          (c)  This Guaranty and each and every term and provision thereof shall
be  construed  in  accordance  with  the  laws  of  the  State  of  California.

     IN  WITNESS  WHEREOF, Guarantor has executed this instrument on the day and
year  first  above  written.

                               Guarantor:  MEASUREMENT SPECIALTIES, INC.,
                                           a  New  Jersey  corporation

                                           By:  /s/  Kirk  Dischino
                                              ----------------------------------

                                           Name:  Kirk  Dischino
                                                --------------------------------

                                           Its:  Chief  Financial  Officer
                                               ---------------------------------

                                           By:
                                              ----------------------------------
                                           Name:
                                                --------------------------------
                                           Its:
                                               ---------------------------------

<PAGE>

                       GUARANTY OF LEASE (THE "GUARANTY")
                                       BY
                          MEASUREMENT SPECIALTIES, INC.
                                   IN FAVOR OF
                         DL CREEKSIDE BUSINESS PARK, LLC

Supplementing  Section  1 of the Guaranty, notwithstanding any term or provision
of  this  Guaranty  to  the  contrary,  this  Guaranty  shall terminate, and the
Guarantor's  obligations  hereunder shall be of no further force or effect, upon
an  assignment  of  the Lease for which the Landlord's prior written consent has
been  given  pursuant  to  Section  17  of  the  Lease.

                                          MEASUREMENT  SPECIALTIES,  INC.,  a
                                          New  Jersey  corporation

                                          By:  /s/  Kirk  Dischino
                                             -----------------------------------
                                             Kirk  Dischino
                                             Chief  Financial  Officer

                                     Page 2A
<PAGE>
Guarantor
---------

Measurement Specialties, Inc.
80 Little Falls Road
Fairfield, New Jersey 07004
Attn: Kirk Dischino, CFO
Fax: 973-808-5619

With copies to:

McCarter & English
100 Mulberry Street
Four Gateway Center
Newark, New Jersey 07001
Attn: Kenneth E. Thompson, Esq.
Fax 973-624-7070

-And-

John Arnold, Esq.
104 Highland Terrace
Woodside, California 94062
Fax : 650-851-7374

                                    Page 4A
<PAGE>
                                    ICSENSORS
                  (a division of Measurement Specialties Inc.)
                               1701 McCarthy Blvd.
                               Milpitas, CA 95035
                              Phone: 408.432.1800
                                Fax: 408.434.6887

CERTIFIED  MAIL,  RETURN  RECEIPT  REQUESTED

May  31,  2000

Ms.  Janine  Roberts
DL  Creekside  Business  Park,  LLC
C/o  DRA  Advisors
220  East  42nd  Street  27th  Floor
New  York,  New  York  10017

RE:  IC  Sensors,  Inc.
     Lease for premises located at 1701 McCarthy Boulevard, Milpitas, California

Dear  Ms.  Roberts:

Pursuant  to  Section  41  of the Lease dated January 10, 1986 between Creekside
Industrial  Associates and IC Sensors, Inc., as amended by the Third Addendum to
Lease  dated  March  24,  1995,  IC Sensors, Inc. hereby exercises its extension
option,  extending  the  term  for  an  additional  five  years.

                                                  Very  truly  yours,

                                                  /s/  Kirk  Dischino
                                                  Kirk  Dischino
                                                  Chief  Financial  Officer

CC:    Craig  B.  Etlin,  Esq.  (via  certified mail, return receipt requested)
       Ms.  Donna  Brown  (via  certified  mail,  return  receipt  requested)

<PAGE>

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