Document:

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                                                                    EXHIBIT 10.5

                           BASIC LEASE INFORMATION
                                  OFFICE NET

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LEASE DATE:                                           August 13, 1998

TENANT:                                               Logic Vision, Inc., a California corporation

TENANT'S NOTICE ADDRESS:                              101 Metro Drive
                                                      Suite #300
                                                      San Jose, CA 95110

TENANT'S BILLING ADDRESS:                             101 Metro Drive
                                                      Suite #300
                                                      San Jose, CA 95110

TENANT CONTACT:    Tim Conley,                        PHONE NUMBER:  (408) 453-0146
                   Vice President, Finance &          FAX NUMBER:  (408) 573-7640
                   CFO
LANDLORD:                                             Spieker Properties, L.P., a California  limited partnership

LANDLORD'S NOTICE ADDRESS:                            151 Metro Drive
                                                      San Jose, CA 95110

LANDLORD'S REMITTANCE ADDRESS:                        P.O. Box 45587
                                                      Department #11521
                                                      San Francisco, CA 94145-0687

Project Description:                                  The three building complex, including connecting arcades, with
                                                      an associated parking structure currently known as Metro Plaza and
                                                      located on Metro Drive between North First Street and Technology Drive,
                                                      commonly known as 24, 101 and 181 Metro Drive,  CA 95110.

Premises:                                             Approximately 17,690 rentable square feet of office space (which
                                                      includes a portion of the Building's common area) located on the third
                                                      floor of the building commonly known as 101 Metro Drive, Suite #300,
                                                      San Jose, CA as outlined in the attached Exhibit B.

Permitted Use:                                        General office administrative use.

Occupancy Density:                                    71 People

Parking Density:                                      4/1000 sq.ft.

Scheduled Term Commencement Date:                     October 1, 1998

Scheduled Length of Term:                             18 Months

Scheduled Term Expiration Date:                       March 31, 2000
Rent:

     Base Rent:                                       $31,134.00 per month
                                                      (subject to adjustment as provided in Paragraph 39 hereof)

     Estimated First Year Operating Expenses:         $13,091.00 per month

Security Deposit:                                     $46,000.00

Tenant's Proportionate Share:

     Of Building:                                     4.516% of 391,687 total building square footage

     Of Project:                                      4.301% of 411,286 total project square footage
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The foregoing Basic Lease Information is incorporated into and made a part of
this Lease. Each reference in this Lease to any of the Basic Lease Information
shall mean the respective information above and shall be construed to
incorporate all of the terms provided under the particular Lease paragraph
pertaining to such information. In the event of any conflict between the Basic
Lease Information and the Lease, the latter shall control.
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LANDLORD                                TENANT
Spieker Properties, L.P.,               Logic Vision, Inc.
a California limited partnership        a California corporation

By: Spieker Properties, Inc.,
    a Maryland corporation,             By: /s/ Timothy G Conley
    its general partner                    --------------------------
                                           Tim Conley
                                           Its: Vice President, Finance & CFO

By:  /s/ J. D. Russell
    ----------------------------
    Joseph D. Russell, Jr.
    Its: Regional Senior Vice President

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                              TABLE OF CONTENTS
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     Basic Lease Information....................................    1
     Table of Contents..........................................    2
1    Premises...................................................    4
2.   Possession And Lease Commencement..........................    4
3.   Term.......................................................    4
4.   Use........................................................    4
5.   Rules And Regulations......................................    5
6.   Rent.......................................................    5
7.   Operating Expenses.........................................    5
8.   Insurance And Indemnification..............................    7
9.   Waiver Of Subrogation......................................    8
10.  Landlord's Repairs And Maintenance.........................    8
11.  Tenant's Repairs And Maintenance...........................    9
12.  Alterations................................................    9
13.  Signs......................................................    9
14.  Inspection/Posting Notices.................................    9
15.  Services And Utilities.....................................   10
16.  Subordination..............................................   10
17.  Financial Statements.......................................   11
18.  Estoppel Certificate.......................................   11
19.  Security Deposit...........................................   11
20.  Limitation Of Tenant's Remedies............................   11
21.  Assignment And Subletting..................................   11
22.  Authority..................................................   12
23.  Condemnation...............................................   12
24.  Casualty Damage............................................   13
25.  Holding Over...............................................   13
26.  Default....................................................   14
27.  Liens......................................................   15
28.  Substitution...............................................   15
29.  Transfers By Landlord......................................   15
30.  Right Of Landlord To Perform Tenant's Covenants............   15
31.  Waiver.....................................................   15
32.  Notices....................................................   15
33.  Attorneys' Fees............................................   16
34.  Successors And Assigns.....................................   16
35.  Force Majeure..............................................   16
36.  Surrender Of Premises......................................   16
37.  Parking....................................................   16
38.  Miscellaneous..............................................   17
39.  Additional Provisions......................................   19
40.  Jury Trial Waiver..........................................   19
41.  After Hours Building Services And Amenities................   19
42.  Non-Standard Lighting Fixtures.............................   19
43.  Parking....................................................   19
44.  Signage....................................................   19
45.  Ground Lease...............................................   19
     Signatures.................................................   20
     Addenda #1 - Rent..........................................   21
     Addenda #2 - Confidentiality...............................   21
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Exhibits:

     Exhibit A................................  Rules and Regulations
     Exhibit B..................................  Outline of Premises
     Exhibit C...............  Tenant Improvements and Specifications
     Exhibit D..................................  Propety Description
     Exhibit E.........................................  Ground Lease

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                                     LEASE

THIS LEASE is made as of the 13th day of August 1998, by and between Spieker
Properties, L.P., a California limited partnership (hereinafter called
"Landlord"), and Logic Vision, Inc., a California corporation (hereinafter
called "Tenant").

                                1.    PREMISES

     Landlord leases to Tenant and Tenant leases from Landlord, upon the terms
and conditions hereinafter set forth, those premises (the "Premises") outlined
in red on Exhibit B and described in the Basic Lease Information. The Premises
shall be all or part of a building (the "Building") and of a project (the
"Project"), which may consist of more than one building and additional
facilities, as described in the Basic Lease Information. Landlord and Tenant
acknowledge that physical changes may occur from time to time in the Premises,
Building or Project, and that the number of buildings and additional facilities
which constitute the Project may change from time to time, which may result in
an adjustment in Tenant's Proportionate Share, as defined in the Basic Lease
Information, as provided in Paragraph 7.A.

                    2.    POSSESSION AND LEASE COMMENCEMENT

A.   Existing Improvements. If this Lease pertains to a Premises in which the
interior improvements have already been constructed ("Existing Improvements"),
the provision of this Paragraph 2.A. shall apply and the term commencement date
("Term Commencement Date") shall be the earlier of the date on which: (1) Tenant
takes possession of some or all of the Premises; or (2) Landlord notifies Tenant
that Tenant may occupy the Premises,. If, for any reason Landlord cannot deliver
possession of the Premises to Tenant on the scheduled Term Commencement Date,
Landlord shall not be subject to any liability therefor, nor shall Landlord be
in default hereunder nor shall such failure affect the validity of this Lease,
and Tenant agrees to accept possession of the Premises at such time as Landlord
is able to deliver the same, which date shall then be deemed the Term
Commencement Date. Tenant shall not be liable for any Rent (defined below) for
any period prior to the Term Commencement Date. Tenant acknowledges that Tenant
has inspected and accepts the Premises in their present condition, "as is," and
as suitable for, the Permitted Use (as defined below), and for Tenant's intended
operations in the Premises. Tenant agrees that the Premises and other
improvements are in good and satisfactory condition as of when possession was
taken. Tenant further acknowledges that no representations as to the condition
or repair of the Premises nor promises to alter, remodel or improve the Premises
have been made by Landlord or any agents of Landlord unless such are expressly
set forth in this Lease. Upon Landlord's request, Tenant shall promptly execute
and return to Landlord a "Start-Up Letter" in which Tenant shall agree, among
other things, to acceptance of the Premises and to the determination of the Term
Commencement Date, in accordance with the terms of this Lease, but Tenant's
failure or refusal to do so shall not negate Tenant's acceptance of the Premises
or affect determination of the Term Commencement Date.

B.   Construction of Improvements. If this Lease pertains to a Building to be
constructed or improvements to be constructed within a Building, the provisions
of this Paragraph 2.B. shall apply in lieu of the provisions of Paragraph 2.A.
above and the term commencement date ("Term Commencement Date") shall be the
earlier of the date on which: (1) Tenant takes possession of some or all of the
Premises; or (2) the improvements to be constructed or performed in the Premises
by Landlord (if any) shall have been substantially completed in accordance with
the plans and specifications, if any, described on Exhibit C and Tenant's taking
of possession of the Premises or any part thereof shall constitute Tenant's
confirmation of substantial completion for all purposes hereof, whether or not
substantial completion of the Building or Project shall have occurred. If for
any reason Landlord cannot deliver possession of the Premises to Tenant on the
scheduled Term Commencement Date, Landlord shall not be subject to any liability
therefor, nor shall Landlord be in default hereunder nor shall such failure
affect the validity of this Lease, and Tenant agrees to accept possession of the
Premises at such time as such improvements have been substantially completed,
which date shall then be deemed the Term Commencement Date. Tenant shall not be
liable for any Rent for any period prior to the Term Commencement Date (but
without affecting any obligations of Tenant under any improvement agreement
appended to this Lease). In the event of any dispute as to substantial
completion of work performed or required to be performed by Landlord, the
certificate of Landlord's architect or general contractor shall be conclusive.
Substantial completion shall have occurred notwithstanding Tenant's submission
of a punchlist to Landlord, which Tenant shall submit, if at all, within three
(3) business days after the Term Commencement Date or otherwise in accordance
with any improvement agreement appended to this Lease. Upon Landlord's request,
Tenant shall promptly execute and return to Landlord a "Start-Up Letter" in
which Tenant shall agree, among other things, to acceptance of the Premises and
to the determination of other Term Commencement Date, in accordance with the
terms of this Lease, but Tenant's failure or refusal to do so shall not negate
Tenant's acceptance of the Premises or affect determination of the Term
Commencement Date.

                                  3.    TERM

     The term of this Lease (the "Term") shall commence on the Term Commencement
Date and continue in full force and effect for the number of months specified as
the Length of Term in the Basic Lease Information or until this Lease is
terminated as otherwise provided herein. If the Term Commencement Date is a date
other than the first day of the calendar month, the Term shall be the number of
months of the Length of Term in addition to the remainder of the calendar month
following the Term Commencement Date.

                                   4.    USE

A.   General. Tenant shall use the Premises for the permitted use specified in
the Basic Lease Information ("Permitted Use") and for not other use or purpose.
Tenant shall control Tenant's employees, agents, customers, visitors, invitees,
licensees, contractors, assignees and subtenants (collectively, "Tenant's
Parties") in such a manner that Tenant and Tenant's Parties cumulatively do not
exceed the occupant density (the "Occupant Density) or the parking density (the
"Parking Density") specified in the Basic Lease Information at any time. Tenant
shall pay the Parking Charge specified in the Basic Lease Information as
Additional Rent (as hereinafter defined) hereunder. So long as Tenant is
occupying the Premises, Tenant and Tenant's Parties shall have the nonexclusive
right to use, in common with other parties occupying the Building or Project,
the parking areas, driveways and other common areas of the Building and Project,
subject to the terms of this Lease and such rules and regulations as Landlord
may from time to time prescribe. Landlord reserves the right, without notice or
liability to Tenant, and without the same constituting an actual or constructive
eviction, to alter or modify the common areas from time to time, including the
location and configuration thereof, and the amenities and facilities which
Landlord may determine to provide from time to time.

B.   Limitations. Tenant shall not permit any odors, smoke, dust, gas,
substances, noise or vibrations to emanate from the Premises or from any portion
of the common areas as a result of Tenant's or any Tenant's Party's use thereof,
nor take any action which would constitute a nuisance or would disturb, obstruct
or endanger any other tenants or occupants of the Building or Project or
elsewhere, or interfere with their use of their respective premises or common
areas. Storage outside the Premises of materials, vehicles or any other

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items is prohibited. Tenant shall not use or allow the Premises to be used for
any immoral, improper or unlawful purpose, nor shall Tenant cause or maintain or
permit any nuisance in, on or about the Premises. Tenant shall not commit or
suffer the commission of any waste in, on or about the Premises. Tenant shall
not allow any sale by auction upon the Premises, or place any loads upon the
floors, walls or ceilings which could endanger the structure, or place any
harmful substances in the drainage system of the Building or Project. No waste
materials or refuse shall be dumped upon or permitted to remain outside the
Premises. Landlord shall not be responsible to Tenant for the non-compliance by
any other tenant or occupant of the Building or Project with any of the above-
referenced rules or any other terms or provisions of such tenant's or occupant's
lease or other contract.

C.   Compliance with Regulations. By entering the Premises, Tenant accepts the
Premises in the condition existing as of the date of such entry. Tenant shall at
its sole cost and expense strictly comply with all existing or future applicable
municipal, state and federal and other governmental statutes, rules,
requirements, regulations, laws and ordinances, including zoning ordinances and
regulations, and covenants, easements and restrictions of record governing and
relating to the use, occupancy or possession of the Premises, to Tenant's use of
the common areas, or to the use, storage, generation or disposal of Hazardous
Materials (hereinafter defined) (collectively "Regulations"). Tenant shall at
its sole cost and expense obtain any and all licenses or permits necessary for
Tenant's use of the Premises. Tenant shall at its sole cost and expense promptly
comply with the requirements of any board of fire derwriters or other similar
body now or hereafter constituted. Tenant shall not do or permit anything to be
done in, on, under or about the Project or bring or keep anything which will in
any way increase the rate of any insurance upon the Premises, Building or
Project or upon any contents therein or cause a cancellation of said insurance
or otherwise affect said insurance in any manner. Tenant shall indemnify,
defined (by counsel reasonably acceptable to Landlord), protect and hold
Landlord harmless from and against any loss, cost, expense, damage, attorneys'
fees or liability arising out of the failure of Tenant to comply with any
Regulation. Tenant's obligations pursuant to the foregoing indemnity shall
survive the expiration or earlier termination of this Lease.

D.   Hazardous Materials. As used in this Lease "Hazardous Materials" shall
include, but not be limited to, hazardous, toxic and radioactive materials and
those substances defined as "hazardous substances," "hazardous materials,"
"hazardous wastes," "toxic substances," or other similar designations in any
Regulation. Tenant shall not cause, or allow any of Tenant's Parties to cause,
any Hazardous Materials to be handled, used, generated, stored, released or
disposed of in, on, under or about the Premises, the Building or the Project or
surrounding land or environment in violation of any Regulations. Tenant must
obtain Landlord's written consent prior to the introduction of any Hazardous
Materials onto the Project. Notwithstanding the foregoing, Tenant may handle,
store, use and dispose of products containing small quantities of Hazardous
Materials for "general office purposes" (such as toner for copiers) to the
extent customary and necessary for the Permitted Use of the Premises; provided
that Tenant shall always handle, store, use, and dispose of any such Hazardous
Materials in a safe and lawful manner and never allow such Hazardous Materials
to contaminate the Premises, Building, or Project or surrounding land or
environment. Tenant shall immediately notify Landlord in writing of any
Hazardous Materials' contamination of any portion of the Project of which Tenant
becomes aware, whether or not caused by Tenant. Landlord shall have the right at
all reasonable times to inspect the Premises and to conduct tests and
investigations to determine whether Tenant is in compliance with the foregoing
provisions, the costs of all such inspections, tests and investigations to be
borne by Tenant. Tenant shall indemnify, defend (by counsel reasonably
acceptable to Landlord), protect and hold Landlord harmless from and against any
and all claims, liabilities, losses, costs, loss of rents, liens, damages,
injuries or expenses (including reasonable attorneys' and constants' fees and
court costs), demands, causes of action, or judgments directly or indirectly
arising out of or related to the use, generation, storage, release, or disposal
of Hazardous Materials by Tenant or any of Tenant's Parties in, on, under or
about the Premises, the Building or the Project or surrounding land or
environment, which indemnity shall include, without limitation, damages for
personal or bodily injury, property damage, damage to the environment or natural
resources occurring on or off the Premises, losses attributable to diminution in
value or adverse effects on marketability, the cost of any investigation,
monitoring, government oversight, repair, removal, remediation, restoration,
abatement, and disposal, and the preparation of any closure or other required
plans, whether such action is required or necessary prior to or following the
expiration or earlier termination of this Lease. Neither the consent by Landlord
to the use, generation, storage, release or disposal of Hazardous Materials nor
the strict compliance by Tenant with all laws pertaining to Hazardous Materials
shall excuse Tenant from Tenant's obligation of indemnification pursuant to this
Paragraph 4.D. Tenant's obligations pursuant to the foregoing indemnity shall
survive the expiration or earlier termination of this Lease.

                          5.    RULES AND REGULATIONS

     Tenant shall faithfully observe and comply with the building rules and
regulations attached hereto as Exhibit A and any other rules and regulations and
any modifications or additions thereto which Landlord may from time to time
prescribe in writing for the purpose of maintaining the proper care,
cleanliness, safety, traffic flow and general order of the Premises or the
Building or Project. Tenant shall cause Tenant's Parties to comply with such
rules and regulations. Landlord shall not be responsible to Tenant for the non-
compliance by any other tenant or occupant of the Building or Project with any
of such rules and regulations, any other tenant's or occupant's lease or any
Regulations.

                                  6.    RENT

A.   Base Rent. Tenant shall pay to Landlord and Landlord shall receive, without
notice or demand throughout the Term, Base Rent as specified in the Basic Lease
Information, payable in monthly installments in advance on or before the first
day of each calendar month, in lawful money of the United States, without
deduction or offset whatsoever, at the Remittance Address specified in the Basic
Lease Information or to such other place as Landlord may from time to time
designate in writing. Base Rent for the first full month of the Term shall be
paid by Tenant upon Tenant's execution of this Lease. If the obligation for
payment of Base Rent commences on a day other than the first day of a month,
then Base Rent shall be prorated and the prorated installment shall be paid on
the first day of the calendar month next succeeding the Term Commencement Date.
The Base Rent payable by Tenant hereunder is subject to adjustment as provided
elsewhere in this Lease, as applicable. As used herein, the term "Base Rent"
shall mean the Base Rent specified in the Basic Lease Information as it may be
so adjusted from time to time. See Addenda #1 attached hereto and made a part
hereof.

B.   Additional Rent. All monies other than Base Rent required to be paid by
Tenant hereunder, including, but not limited to, Tenant's Proportionate Share of
Operating Expenses, as specified in Paragraph 7 of this Lease, charges to be
paid by Tenant under Paragraph 15, the interest and late charge described in
Paragraphs 26.C. and D., and any monies spent by Landlord pursuant to Paragraph
30, shall be considered additional rent ("Additional Rent"). "Rent shall mean
Base Rent and Additional Rent.

                           7.    OPERATING EXPENSES

A.   Operating Expenses. In addition to the Base Rent required to be paid
hereunder, Tenant shall pay as Additional Rent, Tenant's Proportionate Share of
the Building and/or Project (as applicable), as defined in the Basic Lease
Information, of Operating Expenses (defined below) in the manner set forth
below. Tenant shall pay the applicable Tenant's Proportionate Share of each such
Operating Expenses. Landlord and Tenant acknowledge that if the number of
buildings which constitute the Project increases or decreases, or if physical
changes are made to the Premises, Building or Project or the configuration of
any thereof, Landlord may at its discretion reasonably adjust Tenant's
Proportionate Share of the Building or Project to reflect the change. Landlord's
determination of Tenant's Proportionate Share of the Building and of the Project
shall be conclusive so long as it is reasonably and consistently applied.
"Operating Expenses" shall mean all expenses and costs of every kind and nature
which Landlord shall pay or become obligated to pay, because of or

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in connection with the ownership, management, maintenance, repair, preservation,
replacement and operation of the Building or Project and its supporting
facilities and such additional facilities now and in subsequent years as may be
determined by Landlord to be necessary or desirable to the Building and/or
Project (as determined in a reasonable manner) other than those expenses and
costs which are specifically attributable to Tenant or which are expressly made
the financial responsibility of Landlord or specific tenants of the Building or
Project pursuant to this Lease. Operating Expenses shall include, but are not
limited to, the following:

     (1)  Taxes. All real property taxes and assessments, possessory interest
     taxes, sales taxes, personal property taxes, business or license taxes of
     fees, gross receipts taxes, service payments in lieu of such taxes or fees,
     annual or periodic license or use fees, excises, transit charges, and other
     impositions, general and special, ordinary and extraordinary, unforeseen as
     well as foreseen, of any kind (including fees "in-lieu" of any such tax or
     assessment) which are now or hereafter assessed, levied, charged,
     confirmed, or imposed by any public authority upon the Building or Project,
     its operations or the Rent (or any portion or component thereof), or any
     tax, assessment or fee imposed in substitution, partially or totally, of
     any of the above. Operating Expenses shall also include any taxes,
     assessments, reassessments, or other fees or impositions with respect to
     development, leasing, management, maintenance, alteration, repair, use or
     occupancy of the Premises, Building or Project or any portion thereof,
     including, without limitation, by or for Tenant, and all increases therein
     or reassessments thereof whether the increases or reassessments result from
     increased rate and/or valuation (whether upon a transfer of the Building or
     Project or any portion thereof or any interest therein or for any other
     reason). Operating Expenses shall not include inheritance or estate taxes
     imposed upon or assessed against the interest of any person in the Project,
     or taxes computed upon the basis of the net income of any owners of any
     interest in the Project. If it shall not be lawful for Tenant to reimburse
     Landlord for all or any part of such taxes, the monthly rental payable to
     Landlord under this Lease shall be revised to net Landlord the same net
     rental after imposition of any such taxes by Landlord as would have been
     payable to Landlord prior to the payment of any such taxes.

     (2)  Insurance. All insurance premiums and costs, including, but not
     limited to, any deductible amounts, premiums and other costs of insurance
     incurred by Landlord, including for the insurance coverage set forth in
     Paragraph 8.A. herein.

     (3)  Common Area Maintenance.

          (a)  Repairs, replacements, and general maintenance of and for the
          Building and Project and public and common areas and facilities of and
          comprising the Building and Project, including, but not limited to,
          the roof and roof membrane, windows, elevators, restrooms, conference
          rooms, health club facilities, lobbies, mezzanines, balconies,
          mechanical rooms, building exteriors, alarm systems, pest
          extermination, landscaped areas, parking and service areas, driveways,
          sidewalks, loading areas, fire sprinkler systems, sanitary and storm
          sewer lines, utility services, heating/ventilation/air conditioning
          systems, electrical, mechanical or other systems, telephone equipment
          and wiring servicing, plumbing, lighting, and any other items or areas
          which affect the operation or appearance of the Building or Project,
          which determination shall be at Landlord's discretion, except for:
          those items expressly made the financial responsibility of Landlord
          pursuant to Paragraph 10 hereof; those items to the extent paid for by
          the proceeds of insurance; and those items attributable solely or
          jointly to specific tenants of the Building or Project.

          (b)  Repairs, replacements, and general maintenance shall include the
          cost of any capital improvements made to or capital assets acquired
          for the Project or Building that in Landlord's discretion may reduce
          any other Operating Expenses, including present or future repair work,
          are reasonably necessary for the health and safety of the occupants of
          the Building or Project, or are required to comply with any
          Regulation, such costs or allocable portions thereof to be amortized
          over the useful life thereof, together with interest on the
          unamortized balance at the publicly announced "prime rate" charged by
          Wells Fargo Bank, N.A. (San Francisco) or its successor at the time
          such improvements or capital assets are constructed or acquired, plus
          two (2) percentage points, or in the absence of such prime rate, then
          at the U.S. Treasury six-month market note (or bond, if so designated)
          rate as published by any national financial publication selected by
          Landlord, plus four (4) percentage points, but in no event more than
          the maximum rate permitted by law.

          (c)  Payment under or for any easement, license, permit, operating
          agreement, declaration, restrictive covenant or instrument relating to
          the Building or Project.

          (d)  All expenses and rental related to services and costs of
          supplies, materials and equipment used in operating, managing and
          maintaining the Premises, Building and Project, the equipment therein
          and the adjacent sidewalks, driveways, parking and service areas,
          including, without limitation, expenses related to service agreements
          regarding security, fire and other alarm systems, janitorial services,
          window cleaning, elevator maintenance, Building exterior maintenance,
          landscaping and expenses related to the administration, management and
          operation of the Project, including without limitation salaries, wages
          and benefits and management office rent.

          (e)  The cost of supplying any services and utilities which benefit
          all or a portion of the Premises, Building or Project, including
          without limitation services and utilities provided pursuant to
          Paragraph 15 hereof.

          (f)  Legal expenses and the cost of audits by certified public
          accountants; provided, however, that legal expenses chargeable as
          Operating Expenses shall not include the cost of negotiating leases,
          collecting rents, evicting tenants nor shall it include costs incurred
          in legal proceedings with or against any tenant or to enforce the
          provisions of any lease.

          (g)  A management and accounting cost recovery fee equal to five
          percent (5%) of the sum of the Project's base rents and Operating
          Expenses (other than such management and accounting fee).

     If the rentable area of the Building and/or Project is not fully occupied
during any fiscal year of the Term as determined by Landlord, an adjustment may
be made in Landlord's discretion in computing the Operating Expenses for such
year so that Tenant pays an equitable portion of all variable items (e.g.,
utilities, janitorial services and other component expenses that are affected by
variations in occupancy levels) of Operating Expenses, as reasonably determined
by Landlord; provided, however, that in no event shall Landlord be entitled to
collect in excess of one hundred percent (100%) of the total Operating Expenses
from all of the tenants in the Building or Project, as the case may be. Landlord
will gross-up the operating expenses of the Project to 100%.

     Operating Expenses shall not include the cost of providing tenant
improvements or other specific costs incurred for the account of, separately
billed to and paid by specific tenants of the Building or Project, the initial
construction cost of the Building, or debt service on any mortgage or deed of
trust recorded with respect to the Project other than pursuant to Paragraph
7.A.(3)(b) above. Notwithstanding anything herein to the contrary, in any
instance wherein Landlord, in Landlord's sole discretion, deems tenant to be
responsible for any amounts greater than Tenant's Proportionate Share, Landlord
shall have the right to allocate costs in any manner Landlord deems appropriate.

                                       6
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     The above enumeration of services and facilities shall not be deemed to
impose an obligation on Landlord to make available or provide such services or
facilities except to the extent if any that Landlord has specifically agreed
elsewhere in this Lease to make the same available or provide the same.  Without
limiting the generality of the foregoing, Tenant acknowledges and agrees that it
shall be responsible for providing adequate security for its use of the
Premises, the Building and the Project and that Landlord shall have no
obligation or liability with respect thereto, except to the extent if any that
Landlord has specifically agreed elsewhere in this Lease to provide the same.

     B.  Payment of Estimated Operating Expenses. "Estimated Operating Expenses"
for any particular year shall mean Landlord's estimate of the Operating Expenses
for such fiscal year made with respect to such fiscal year as hereinafter
provided. Landlord shall have the right from time to time to revise its fiscal
year and interim accounting periods so long as the periods as so revised are
reconciled with prior periods in a reasonable manner. During the last month of
each fiscal year during the Term, or as soon thereafter as practicable, Landlord
shall give Tenant written notice of the Estimated Operating Expenses for the
ensuing fiscal year. Tenant shall pay Tenant's Proportionate Share of the
Estimated Operating Expenses with installments of Base Rent for the fiscal year
to which the Estimated Operating Expenses applies in monthly installments on the
first day of each calendar month during such year, in advance. Such payment
shall be construed to be Additional Rent for all purposes hereunder. If at any
time during the course of the fiscal year, Landlord determines that Operating
Expenses are projected to vary from the then Estimated Operating Expenses by
more than five percent (5%), Landlord may, by written notice to Tenant, revise
the Estimated Operating Expenses for the balance of such fiscal year, and
Tenant's monthly installments for the remainder of such year shall be adjusted
so that by the end of such fiscal year Tenant has paid to Landlord Tenant's
Proportionate Share of the revised Estimated Operating Expenses for such year,
such revised installment amounts to be Additional Rent for all purposes
hereunder.

     C.  Computation of Operating Expense Adjustment.  "Operating Expense
Adjustment" shall mean the difference between Estimated Operating Expenses and
actual Operating Expenses for any fiscal year determined as hereinafter
provided. Within one hundred twenty (120) days after the end of each fiscal
year, or as soon thereafter as practicable, Landlord shall deliver to Tenant a
statement of actual Operating Expenses for the fiscal year just ended,
accompanied by a computation of Operating Expense Adjustment. If such statement
shows that Tenant's payment based upon Estimated Operating Expenses is less than
Tenant's Proportionate Share of Operating Expenses, then Tenant shall pay to
Landlord the difference within twenty (20) days after receipt of such statement,
such payment to constitute Additional Rent for all purposes hereunder. If such
statement shows that Tenant's payments of Estimated Operating Expenses exceed
Tenant's Proportionate Share of Operating Expenses, then (provided that Tenant
is not in default under this Lease) Landlord shall pay to Tenant the difference
within twenty (20) days after delivery of such statement to Tenant. If this
Lease has been terminated or the Term hereof has expired prior to the date of
such statement, then the Operating Expense Adjustment shall be paid by the
appropriate party within twenty (20) days after the date of delivery of the
statement. Should this Lease commence or terminate at any time other than the
first day of the fiscal year, Tenant's Proportionate Share of the Operating
Expense Adjustment shall be prorated based on a month of 30 days and the number
of calendar months during such fiscal year that this Lease is in effect.
Notwithstanding anything to the contrary contained in Paragraph 7.A or 7.B,
Landlord's failure to provide any notices or statement within the time periods
specified in those paragraphs shall in no way excuse Tenant from its obligation
to pay Tenant's Proportionate Share of Operating Expenses. See Addenda #1
attached hereto and made a part hereof.

     D.  Net Lease.  This shall be a triple net Lease and Base Rent shall be
paid to Landlord absolutely net of all costs and expenses, except as
specifically provided to the contrary in this Lease. The provisions for payment
of Operating Expenses and the Operating Expense Adjustment are intended to pas
on to Tenant and reimburse Landlord for all costs and expenses of the nature
described in Paragraph 7.A. incurred in connection with the ownership,
management, maintenance, repair, preservation, replacement and operation of the
Building and/or Project and its supporting facilities and such additional
facilities now and in subsequent years as may be determined by Landlord to be
necessary or desirable to the Building and/or Project.

     E.  Tenant Audit.  If Tenant shall dispute the amount set forth in any
statement provided by Landlord under Paragraph 7.B or 7.C. above, Tenant shall
have the right, not later than twenty (20) business days following receipt of
such statement and upon the condition that Tenant shall first deposit with
Landlord the full amount in dispute, to cause Landlord's books and records with
respect to Operating Expenses for such fiscal year to be audited by certified
public accountants selected by Tenant and subject to Landlord's reasonable right
of approval. The Operating Expense Adjustment shall be appropriately adjusted on
the basis of such audit. If such audit discloses a liability for a refund in
excess of ten percent (10%) of Tenant's Proportionate Share of the Operating
Expenses previously reported, the cost of such audit shall be borne by Landlord;
otherwise the cost of such audit shall be paid by Tenant. If Tenant shall not
request an audit in accordance with the provisions of this Paragraph 7.E. within
twenty (20) business days after receipt of Landlord's statement provided
pursuant to Paragraph 7.B. or 7.C., such statement shall be final and binding
for all purposes hereof.

                      8.    INSURANCE AND INDEMNIFICATION

A.   Landlord's Insurance.  All insurance maintained by Landlord shall be for
the sole benefit of Landlord and under Landlord's sole control.

     (1)   Property Insurance. Landlord agrees to maintain property insurance
     insuring the Building against damage or destruction due to risk including
     fire, vandalism, and malicious mischief in an amount not less than the
     replacement cost thereof, in the form and with deductibles and endorsements
     as selected by Landlord. At its election, Landlord may instead (but shall
     have no obligation to) obtain "All Risk" coverage, and may also obtain
     earthquake, pollution, and/or flood insurance in amounts selected by
     Landlord.

     (2)   Optional Insurance. Landlord, at Landlord's option, may also (but
     shall have no obligation to) carry insurance against loss of rent, in an
     amount equal to the amount of Base Rent and Additional Rent that Landlord
     could be required to abate to all Building tenants in the event of
     condemnation or casualty damage for a period of twelve (12) months.
     Landlord may also (but shall have no obligation to) carry such other
     insurance as Landlord may deem prudent or advisable, including, without
     limitation, liability insurance in such amounts and on such terms as
     Landlord shall determine. Landlord shall not be obligated to insure, and
     shall have no responsibility whatsoever for any damage to, any furniture,
     machinery, goods, inventory or supplies, or other personal property or
     fixtures which Tenant may keep or maintain in the Premises, or any
     leasehold improvements, additions or alterations within the Premises.

B.   Tenant's Insurance

     (1)   Property Insurance.  Tenant shall procure at Tenant's sole cost and
     expense and keep in effect from the date of this Lease and at all times
     until the end of the Term, insurance on all personal property of Tenant and
     all improvements, additions or alterations made by or for Tenant to the
     Premises on an "All Risk" basis, insuring such property for the full
     replacement of such property.

     (2)   Liability Insurance.  Tenant shall procure at Tenant's sole cost and
     expense and keep in effect from the date of this Lease and at all times
     until the end of the Term Commercial General Liability insurance covering
     bodily injury and property

                                       7
<PAGE>

     damage liability occurring in or about the Premises or arising out of the
     use and occupancy of the Premises and the Project, and any part of either,
     and any areas adjacent thereto, and the business operated by Tenant or by
     any other occupant of the Premises. Such insurance shall include
     contractual liability insurance coverage insuring all of Tenant's indemnity
     obligations under this Lease. Such coverage shall have a minimum combined
     single limit of liability of at least Two Million Dollars ($2,000,000.00),
     and a minimum general aggregate limit of Three Million Dollars
     ($3,000,000.00), with an "Additional Insured -Managers or Lessors of
     Premises Endorsement." All such policies shall be written to apply to all
     bodily injury (including death), property damage or loss, personal and
     advertising injury and other covered loss, however occasioned, occurring
     during the policy term, shall be endorsed to add Landlord and any party
     holding an interest to which this Lease may be subordinated as an
     additional insured, and shall provide that such coverage shall be "primary"
     and non-contributing with any insurance maintained by Landlord, which shall
     be excess insurance only. Such coverage shall also contain endorsements
     including employees as additional insureds if not covered by Tenant's
     Commercial General Liability Insurance. All such insurance shall provide
     for the severability of interests of insureds; and shall be written on an
     "occurrence" basis, which shall afford coverage for all claims based on
     acts, omissions, injury and damage, which occurred or arose (or the onset
     of which occurred or arose) in whole or in part during the policy period.

     (3)   Workers' Compensation and Employers' Liability Insurance. Tenant
     shall carry Workers' Compensation Insurance as required by any Regulation,
     throughout the Term at Tenant's sole cost and expense. Tenant shall also
     carry Employers' Liability Insurance in amounts not less than One Million
     Dollars ($1,000,000.00) each accident for bodily injury by accident; One
     Million Dollars ($1,000,000.00) policy limit for bodily injury by disease;
     and One Million Dollars ($1,000,000.00) each employee for bodily injury by
     disease, throughout the Term at Tenant's sole cost and expense.

     (4)   General Insurance Requirements. All coverages described in this
     Paragraph 8.B. shall be endorsed to (i) provide Landlord with thirty (30)
     days' notice of cancellation or change in terms; and (ii) waive all rights
     of subrogation by the insurance carrier against Landlord. If at any time
     during the Term the amount or coverage of insurance which Tenant is
     required to carry under this Paragraph 8.B. is, in Landlord's reasonable
     judgment, materially less than the amount or type of insurance coverage
     typically carried by owners or tenants of properties located in the general
     area in which the Premises are located which are similar to and operated
     for similar purposes as the Premises or if Tenant's use of the Premises
     should change with or without Landlord's consent, Landlord shall have the
     right to require Tenant to increase the amount or change the types of
     insurance coverage required under this Paragraph 8.B. All insurance
     policies required to be carried by Tenant under this Lease shall be written
     by companies rated AX or better in "Best's Insurance Guide" and authorized
     to do business in the State of California. In any event deductible amounts
     under all insurance policies required to be carried by Tenant under this
     Lease shall not exceed Five Thousand Dollars ($5,000.00) per occurrence.
     Tenant shall deliver to Landlord on or before the Term Commencement Date,
     and thereafter at least thirty (30) days before the expiration dates of the
     expired policies, certified copies of Tenant's insurance policies, or a
     certificate evidencing the same issued by the insurer thereunder; and, if
     Tenant shall fail to procure such insurance, or to deliver such policies or
     certificates, Landlord may, at Landlord's option and in addition to
     Landlord's other remedies in the event of a default by Tenant hereunder,
     procure the same for the account of Tenant, and the cost thereof shall be
     paid to Landlord as Additional Rent.

C.   Indemnification. Tenant shall indemnify, defend by counsel reasonably
acceptable to Landlord, protect and hold Landlord harmless from and against any
and all claims, liabilities, losses, costs, loss of rents, liens, damages,
injuries or expenses, including reasonable attorneys' and consultants' fees and
court costs, demands, causes of action, or judgments, directly or indirectly
arising out of or related to (1) claims of injury to or death of persons or
damage to property occurring or resulting directly or indirectly from the use or
occupancy of the Premises, Building or Project by Tenant or Tenant's Parties, or
from activities or failures to act of Tenant or Tenant's Parties; (2) claims
arising from work or labor performed, or for materials or supplies furnished to
or at the request or for the account of Tenant in connection with performance of
any work done for the account of Tenant within the Premises or Project; (3)
claims arising from any breach or default on the part of Tenant in the
performance of any covenant contained in this Lease; and (4) claims arising from
the negligence or intentional acts or omissions of Tenant or Tenant's Parties.
The foregoing indemnity by Tenant shall not be applicable to claims to the
extent arising from the gross negligence or willful misconduct of Landlord.
Landlord shall not be liable to Tenant and Tenant hereby waives all claims
against Landlord for any injury or damage to any person or property in or about
the Premises, Building or Project by or from any cause whatsoever (other than
Landlord's gross negligence or willful misconduct) and, without limiting the
generality of the foregoing, whether caused by water leakage of any character
from the roof, walls, basement or other portion of the Premises, Building or
Project, or caused by gas, fire, oil or electricity in, no or about the
Premises, Building or Project. The provisions of this Paragraph shall survive
the expiration of earlier termination of this Lease. Landlord shall indemnify,
defend by counsel acceptable by Tenant, protect and hold Tenant harmless from
and against any and all liabilities, losses, costs, damages, injuries or
expenses, including reasonable attorneys' fees and court costs, arising out of
or related to the sole negligence or willful misconduct of Landlord.

                          9.   WAIVER OF SUBROGATION

     To the extent permitted by law and without affecting the coverage provided
by insurance to be maintained hereunder or any other rights or remedies,
Landlord and Tenant each waive any right to recover against the other for: (a)
damages for injury to or death of persons; (b) damages to property, including
personal property; (c) damages to the Premises or any part thereof; and (d)
claims arising by reason of the foregoing due to hazards covered by insurance
maintained or required to be maintained pursuant to this Lease to the extent of
proceeds recovered therefrom, or proceeds which would have been recoverable
therefrom in the case of the failure of any party to maintain any insurance
coverage required to be maintained by such party pursuant to this Lease. This
provision is intended to waive fully, any rights and/or claims arising by reason
of the foregoing, but only to the extent that any of the foregoing damages
and/or claims referred to above are covered or would be covered, and only to the
extent of such coverage, by insurance actually carried or required to be
maintained pursuant to this Lease by either Landlord or Tenant. This provision
is also intended to waive fully, and for the benefit of each party, any rights
and/or claims which might give rise to a right of subrogation on any insurance
carrier. Subject to all qualifications of this Paragraph 9, Landlord waives its
rights as specified in this Paragraph 9 with respect to any subtenant that it
has approved pursuant to Paragraph 21 but only in exchange for the written
waiver of such rights to be given by such subtenant to Landlord upon such
subtenant taking possession of the Premises or a portion thereof. Each party
shall cause each insurance policy obtained by it to provide that the insurance
company waives all right of recovery by way of subrogation against either party
in connection with any damage covered by any policy.

                   10.    LANDLORD'S REPAIRS AND MAINTENANCE

     Landlord shall at Landlord's expense maintain in good repair, reasonable
wear and tear excepted, the structural soundness of the roof, foundations, and
exterior walls of the Building. The term "exterior walls" as used herein shall
not include windows, glass or plate glass, doors, special store fronts or office
entries. Any damage caused by or repairs necessitated by any negligence or act
of Tenant or Tenant's parties may be repaired by Landlord at Landlord's option
and Tenant's expense. Tenant shall immediately give Landlord written notice of
any defect or need of repairs in such components of the Building for which
Landlord is responsible, after which Landlord shall have a reasonable
opportunity and the right to enter the Premises at all reasonable times to
repair same. Landlord's liability with respect to any defects, repairs, or
maintenance for which Landlord is responsible under any of the provisions of
this Lease shall be limited to the cost of such repairs or maintenance, and
there shall be no abatement of rent and no liability of Landlord by reason of
any injury to or

                                       8
<PAGE>

interference with Tenant's business arising from the making of repairs,
alterations or improvements in or to any portion of the Premises, the Building
or the Project or to fixtures, appurtenances or equipment in the Building,
except as provided in Paragraph 24. By taking possession of the Premises, Tenant
accepts them "as is," as being in good order, condition and repair and the
condition in which Landlord is obligated to deliver them and suitable for the
Permitted Use and Tenant's intended operations in the Premises, whether or not
any notice of acceptance is given.

                    11.    TENANT'S REPAIRS AND MAINTENANCE

     Tenant shall at all times during the Term at Tenant's expense maintain all
parts of the Premises and such portions of the Building as are within the
exclusive control of Tenant in a first-class, good, clean and secure condition
and promptly make all necessary repairs and replacements, as determined by
Landlord, with materials and workmanship of the same character, kind and quality
as the original. Notwithstanding anything to the contrary contained herein,
Tenant shall, at its expense, promptly repair any damage to the Premises or the
Budding or Project resulting from or caused by any negligence or act of Tenant
or Tenant's Parties.

                              12.    ALTERATIONS

A.   Tenant shall not make, or allow to be made, any alterations, physical
additions, improvements or partitions, including without limitation the
attachment of any fixtures or equipment, in, about or to the Premises
("Alterations") without obtaining the prior written consent of Landlord, which
consent shall not be unreasonably withheld with respect to proposed Alterations
which: (a) comply with all applicable Regulations; (b) are, in Landlord's
opinion, compatible with the Building or the Project and its mechanical,
plumbing, electrical, heating/ventilation/air conditioning systems, and will not
cause the Building or Project or such systems to be required to be modified to
comply with any Regulations (including, without limitation, the Americans With
Disabilities Act); and (c) will not interfere with the use and occupancy of any
other portion of the Building or Project by any other tenant or its invitees.
Specifically, but without limiting the generality of the foregoing, Landlord
shall have the right of written consent for all plans and specifications for the
proposed Alterations, construction means and methods, all appropriate permits
and licenses, any contractor or subcontractor to be employed on the work of
Alterations, and the time for performance of such work, and may impose rules and
regulations for contractors and subcontractors performing such work. Tenant
shall also supply to Landlord any documents and information reasonably requested
by Landlord in connection with Landlord's consideration of a request for
approval hereunder. Tenant shall cause all Alterations to be accomplished in a
first-class, good and workmanlike manner, and to comply with all applicable
Regulations and Paragraph 27 hereof. Tenant shall at Tenant's sole expense,
perform any additional work required under applicable Regulations due to the
Alterations hereunder. No review or consent by Landlord of or to any proposed
Alteration or additional work shall constitute a waiver of Tenant's obligations
under this Paragraph 12, nor constitute any warranty or representation that the
same complies with all applicable Regulations, for which Tenant shall at all
times be solely responsible. Tenant shall reimburse Landlord for all costs which
Landlord may incur in connection with granting approval to Tenant for any such
Alterations, including any costs or expenses which Landlord may incur in
electing to have outside architects and engineers review said plans and
specifications, and shall pay Landlord an administration fee of fifteen percent
(15%) of the cost of the Alterations as Additional Rent hereunder. All such
Alterations shall remain the property of Tenant until the expiration or earlier
termination of this Lease, at which time they shall be and become the property
of Landlord; provided, however, that Landlord may, at Landlord's option, require
that Tenant, at Tenant's expense, remove any or all Alterations made by Tenant
and restore the Premises by the expiration or earlier termination of this Lease,
to their condition existing prior to the construction of any such Alterations.
All such removals and restoration shall be accomplished in a first-class and
good and workmanlike manner so as not to cause any damage to the Premises or
Project whatsoever. If Tenant fails to remove such Alterations or Tenant's trade
fixtures or furniture or other personal property, Landlord may keep and use them
or remove any of them and cause them to be stored or sold in accordance with
applicable law, at Tenant's sole expense. In addition to and wholly apart from
Tenant's obligation to pay Tenant's Proportionate Share of Operating Expenses,
Tenant shall be responsible for and shall pay prior to delinquency any taxes or
governmental service fees, possessory interest taxes, fees or charges in lieu of
any such taxes, capital levies, or other charges imposed upon, levied with
respect to or assessed against its fixtures or personal priority, on the value
of Alterations within the Premises, and on Tenant's interest pursuant to this
Lease, or any increase in any of the foregoing based on such Alterations. To the
extent that any such taxes are not separately assessed or billed to Tenant,
Tenant shall pay the amount thereof as invoiced to Tenant by Landlord.

     Notwithstanding the foregoing, at Landlord's option (but without
obligation), all or any portion of the Alterations shall be performed by
Landlord for Tenant's account and Tenant shall pay Landlord's estimate of the
cost thereof (including a reasonable charge for Landlord's overhead and profit)
prior to commencement of the work. In addition, at Landlord's election and
notwithstanding the foregoing, however, Tenant shall pay to Landlord the cost of
removing any such Alterations and restoring the Premises to their original
condition such cost to include a reasonable charge for Landlord's overhead and
profit as provided above, and such amount may be deducted from the Security
Deposit or any other sums or amounts held by Landlord under this Lease.

B.   In compliance with Paragraph 27 hereof, at least ten (10) business days
before beginning construction of any Alteration, Tenant shall give Landlord
written notice of the expected commencement date of that construction to permit
Landlord to post and record a notice of non-responsibility. Upon substantial
completion of construction, if the law so provides, Tenant shall cause a timely
notice of completion to be recorded in the office of the recorder of the county
in which the Building is located.

                                 13.    SIGNS

     Tenant shall not place, install, affix paint or maintain any signs,
notices, graphics or banners whatsoever or any window decor which is visible in
or from public view or corridors, the common areas or the exterior of the
Premises or the Building, in or on any exterior window or window fronting upon
any common areas or service area without Landlord's prior written approval which
Landlord shall have the right to withhold in its reasonable discretion; provided
that Tenant's name shall be included in any Building-standard door and directory
signage, if any, in accordance with Landlord's Building signage program,
including without limitation, payment by Tenant of any fee charged by landlord
for maintaining such signage, which fee shall constitute Additional Rent
hereunder. Any installation of signs, notices, graphics or banners on or about
the Premises or Project approved by Landlord shall be subject to any Regulations
and to any other requirements imposed by Landlord. Tenant shall remove all such
signs or graphics by the expiration or any earlier termination of this Lease.
Such installations and removals shall be made in such manner as to avoid injury
to or defacement of the Premises, Building or Project and any other improvements
contained therein, and Tenant shall repair any injury or defacement including
without limitation discoloration caused by such installation or removal.

                       14.    INSPECTION/POSTING NOTICES

     After reasonable notice, except in emergencies where no such notice shall
be required, Landlord and Landlord's agents and representatives, shall have the
right to enter the Premises to inspect the same, to clean, to perform such work
as may be permitted or required hereunder, to make repairs, improvements or
alterations to the Premises, Building or Project or to other tenant spaces
therein, to deal with emergencies, to post such notices as may be permitted or
required by law to prevent the perfection of liens against Landlord's interest
in the Project or to exhibit the Premises to prospective tenants, purchasers,
encumbrancers or to others, or for any other purpose as Landlord may deem
necessary or desirable; provided, however, that Landlord shall use reasonable
efforts not to unreasonably interfere with Tenant's business operations. Tenant
shall not be entitled to any abatement of Rent by reason of the exercise of any
such right of

                                       9
<PAGE>

entry.  Tenant waives any claim for damages for any injury or inconvenience to
or interference with Tenant's business, any loss of occupancy or quiet enjoyment
of the Premises, and any other loss occasioned thereby. Landlord shall at all
times have and retain a key with which to unlock all of the doors in, upon and
about the Premises, excluding Tenant's vaults and safes or special security
areas (designated in advance), and Landlord shall have the right to use any and
all means which Landlord may deem necessary and proper to open said doors in an
emergency, in order to obtain entry to any portion of the Premises, and any
entry to the Premises or portions thereof obtained by Landlord by any of said
means, or otherwise, shall not be construed to be a forcible or unlawful entry
into, or a detainer of, the Premises, or an eviction, actual or constructive, of
Tenant from the Premises or any portions thereof. At any time within six (6)
months prior to the expiration of the Term or following any earlier termination
of this Lease or agreement to terminate this Lease, Landlord shall have the
right to erect on the Premises, Building and/or Project a suitable sign
indicating that the Premises are available for lease.

                         15.    SERVICES AND UTILITIES

     A.  Subject to the provisions elsewhere herein contained and to the rules
and regulations of the Building, Landlord shall furnish to the Premises during
ordinary business hours of generally recognized business days, to be determined
by Landlord (but exclusive, in any event, of Saturdays, Sundays and legal
holidays), water for lavatory and drinking purposes and electricity, heat and
air conditioning as usually furnished or supplied for use of the Premises for
reasonable and normal office use as of the date Tenant takes possession of the
Premises as determined by Landlord (but not including above-standard or
continuous cooling for excessive heat-generating machines, excess lighting or
equipment), janitorial services during the times and in the manner that such
services are, in Landlord's judgment, customarily furnished in comparable office
buildings in the immediate market area, and elevator service, which shall mean
service either by nonattended automatic elevators or elevators with attendants,
or both, at the option of Landlord. Tenant acknowledges that Tenant has
inspected and accepts the water, electricity, heat and air conditioning and
other utilities and services being supplied or furnished to the Premises as of
the date Tenant takes possession of the Premises, as being sufficient for use of
the Premises for reasonable and normal office use in their present condition,
"as is," and suitable for the Permitted Use, and for Tenant's intended
operations in the Premises. Landlord shall have no obligation to provide
additional or after-hours electricity, heating or air conditioning, but if
Landlord elects to provide such services at Tenant's request, Tenant shall pay
to Landlord a reasonable charge for such services as determined by Landlord.
Tenant agrees to keep and cause to be kept closed all window covering when
necessary because of the sun's position, and Tenant also agrees at all times to
cooperate fully with Landlord and to abide by all of the regulations and
requirements which Landlord may prescribe for the proper functioning and
protection of electrical, heating, ventilating and air conditioning systems.
Wherever heat-generating machines, excess lighting or equipment are used in the
Premises which affect the temperature otherwise maintained by the air
conditioning system, Landlord reserves the right to install supplementary air
conditioning units in the Premises and the cost thereof, including the cost of
installation and the cost of operation and maintenance thereof, shall be paid by
Tenant to Landlord upon demand by Landlord.

     B.  Tenant shall not without written consent of Landlord use any apparatus,
equipment or device in the Premises, including without limitation, computers,
electronic data processing machines, copying machines, and other machines, using
excess lighting or using electric current, water, or any other resource in
excess of or which will in any way increase the amount of electricity, water, or
any other resource being furnished or supplied for the use of the Premises for
reasonable and normal office use, in each case as of the date Tenant takes
possession of the Premises as determined by Landlord, or which will require
additions or alterations to or interfere with the Building power distribution
systems; nor connect with electric current, except through existing electrical
outlets in the Premises or water pipes, any apparatus, equipment or device for
the purpose of using electrical current, water, or any other resource. If Tenant
shall require water or electric current or any other resource in excess of that
being furnished or supplied for the use of the Premises as of the date Tenant
takes possession of the Premises as determined by Landlord, Tenant shall first
procure the written consent of Landlord which Landlord may refuse, to the use
thereof, and Landlord may cause a special meter to be installed in the Premises
so as to measure the amount of water, electric current or other resource
consumed for any such other use. Tenant shall pay directly to Landlord as an
addition to and separate from payment of Operating Expenses the cost of all such
additional resources, energy, utility service and meters (and of installation,
maintenance and repair thereof and of any additional circuits or other equipment
necessary to furnish such additional resources, energy, utility or service).
Landlord shall not be liable for any damages directly or indirectly resulting
from nor shall the Rent or any monies owed Landlord under this Lease herein
reserved be abated by reason of: (a) the installation, use or interruption of
use of any equipment used in connection with the furnishing of any such
utilities or services, or any change in the character or means of supplying or
providing any such utilities or services or any supplier thereof; (b) the
failure to furnish or delay in furnishing any such utilities or services when
such failure or delay is caused by acts of God or the elements, labor
disturbances of any character, or any other accidents or other conditions beyond
the reasonable control of Landlord or because of any interruption of service due
to Tenant's use of water, electric current or other resource in excess of that
being supplied or furnished for the use of the Premises as of the date Tenant
takes possession of the Premises; (c) the inadequacy, limitation, curtailment,
rationing or restriction on use of water, electricity, gas or an other form of
energy or any other service or utility whatsoever serving the Premises or
Project, whether by Regulation or otherwise; or (d) the partial or total
unavailability of any such utilities or services to the Premises or the
Building, whether by Regulation or otherwise; nor shall any such occurrence
constitute an actual or constructive eviction of Tenant. Landlord shall further
have no obligation to protect or preserve any apparatus, equipment or device
installed by Tenant in the Premises, including without limitation by providing
additional or after-hours heating or air conditioning. Landlord shall be
entitled to cooperate voluntarily and in a reasonable manner with the efforts of
national, state or local governmental agencies or utility suppliers in reducing
energy or other resource consumption. The obligation to make service available
hereunder shall be subject to the limitations of any such voluntary, reasonable
program. In addition, Landlord reserves the right to change the supplier or
provider of any such utility or service from time to time. Tenant shall have no
right to contract with or otherwise obtain any electrical or other such service
for or with respect to the Premises or Tenant's operations therein from any
supplier or provider of any such service. Tenant shall cooperate with Landlord
and any supplier or provider of such services designated by Landlord from time
to time to facilitate the delivery of such services to Tenant at the premises
and to the Building and Project, including without limitation allowing Landlord
and Landlords suppliers or providers, and their respective agents and
contractors, reasonable access to the Premises for the purpose of installing,
maintaining, repairing, replacing or upgrading such service or any equipment or
machinery associated therewith.

     C.  Tenant shall pay, upon demand, for all utilities furnished to the
Premises, or if not separately billed to or metered to Tenant, Tenant's
Proportionate Share of all charges jointly serving the Project in accordance
with Paragraph 7. All sums payable under this Paragraph 15 shall constitute
Additional Rent hereunder.

                             16.    SUBORDINATION

          Without the necessity of any additional document being executed by
Tenant for the purpose of effecting a subordination, this Lease shall be and is
hereby declared to be subject and subordinate at all times to: (a) all ground
leases or underlying leases which may now exist or hereafter be executed
affecting the Premises and/or the land upon which the Premises and Project are
situated, or both; and (b) any mortgage or deed of trust which may now exist or
be placed upon the Building, the Project and/or the land upon which the Premises
or the Project are situated, or said ground leases or underlying leases, or
Landlord's interest or estate in any of said items which is specified as
security. Notwithstanding the foregoing, Landlord shall have the right to
subordinate or cause to be subordinated any such ground leases or underlying
leases or any such liens to this Lease. If any ground lease or underlying lease
terminates for any reason or any mortgage or

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<PAGE>

deed of trust is foreclosed or a conveyance in lieu of foreclosure is made for
any reason, Tenant shall, notwithstanding any subordination, attorn to and
become the Tenant of the successor in interest to Landlord provided that Tenant
shall not be disturbed in its possession under this Lease by such successor in
interest so long as Tenant is not in default under this Lease. Within ten (10)
days after request by Landlord, Tenant shall execute and deliver any additional
documents evidencing Tenant's attornment or the subordination of this Lease with
respect to any such ground leases or underlying leases or any mortgage or deed
of trust, in the form requested by Landlord or by any ground landlord,
mortgagee, or beneficiary under a deed of trust, subject to such nondisturbance
requirement. If requested in writing by Tenant, Landlord shall use commercially
reasonable efforts to obtain a subordination, nondisturbance and attornment
agreement for the benefit of Tenant reflecting the foregoing from any ground
landlord, mortgagee or beneficiary, at Tenant's expense, subject to such other
terms and conditions as the ground landlord, mortgagee or beneficiary may
require.

                          17.    FINANCIAL STATEMENTS

          Not to exceed two times per calendar year, at the request of Landlord,
Tenant shall provide to Landlord Tenant's and any guarantor's current financial
statements or other information discussing financial worth of Tenant and any
guarantor, which Landlord shall use solely for purposes of this Lease and in
connection with the ownership, management, financing and disposition of the
Project.

                          18.    ESTOPPEL CERTIFICATE

     Tenant agrees from time to time, within ten (10) business days after
request of Landlord, to deliver to Landlord, or Landlord's designee, an estoppel
certificate stating that this Lease is in full force and effect, that this Lease
has not been modified (or stating all modifications, written or oral, to this
Lease) the date to which Rent has been paid, the unexpired portion of this
Lease, that there are no current defaults by Landlord or Tenant under this Lease
(or specifying any such defaults), that threshold estate granted by this Lease
is the sole interest of Tenant in the Premise and/or the land at which the
Premises are situated, and such other matters pertaining to this Lease as may be
reasonably requested by Landlord or any mortgagee, beneficiary, purchaser or
prospective purchaser of the Building or Project or any interest therein.
Failure by Tenant to execute and deliver such certificate shall constitute an
acceptance of the Premises and acknowledgement by Tenant that the statements
included are true and correct without exception.  Tenant agrees that if Tenant
fails to execute and deliver such certificate within such ten (10) business day
period, Landlord may execute and deliver such certificate on Tenant's behalf and
that such certificate shall be binding on Tenant.  Landlord and Tenant intend
that any statement delivered pursuant to this Paragraph may be relied upon by
any mortgagee, beneficiary, purchaser or prospective purchaser of the Building
or Project or any interest therein.  The parties agree that Tenant's obligation
to furnish such estoppel certificates in a timely fashion is a material
inducement for Landlord's execution of this Lease, and shall be an event of
default (without any cure period that might be provided under Paragraph 26.A(3)
of this Lease) if Tenant fails to fully comply or makes any material
misstatement in any such certificate.

                            19.    SECURITY DEPOSIT

     Tenant agrees to deposit with Landlord upon execution of this Lease, a
security deposit as stated in the Basic Lease Information (the "Security
Deposit"), which sum shall be held an downed by Landlord, without obligation to
pay interest, as security for the performance of Tenant's covenants and
obligations under this Lease.  The Security Deposit is not an advance rental
deposit or a measure of damages incurred by Landlord in case of Tenant's
default.  Upon the occurrence of any event of default by Tenant, Landlord may
from time to time, without prejudice to any other remedy provided herein or by
law, use such fund as a credit to the extent necessary to credit against any
arrears of Rent or other payments due to Landlord hereunder, and any other
damage, injury, expense or liability caused by such event of default, and Tenant
shall pay to Landlord, on demand, the amount so applied in order to restore the
Security Deposit to its original amount.  Although the Security Deposit shall be
deemed the property of Landlord, any remaining balance of such deposit shall be
returned by Landlord to Tenant at such time after termination of this Lease that
all of Tenant's obligations under this Lease have been fulfilled, reduced by
such amounts as may be required by Landlord to remedy defaults on the part of
Tenant in the payment of Rent or other obligations of Tenant under this Lease,
to repair damage to the Premises, Building or Project caused by Tenant or any
Tenant's Parties and to clean the Premises.  Landlord may use and commingle the
Security Deposit with other funds of the Landlord.

                    20.    LIMITATION OF TENANT'S REMEDIES

     The obligations and liability of Landlord to Tenant for any default by
Landlord under the terms of this Lease are not personal obligations of Landlord
or of the individual or other partners of Landlord or its or their partners,
directors, officers, or shareholders, and Tenant agrees to look solely to
Landlord's interest in the Project for the recovery of any amount from Landlord,
and shall not look to other assets of Landlord nor seek recourse against the
assets of the individual or other partners of Landlord or its or their partners,
directors, officers or shareholders.  Any lien obtained to enforce any such
judgment and any levy of execution thereon shall be subject and subordinate to
any lien, mortgage or deed of trust on the Project.  Under no circumstances
shall Tenant have the right to offset against or recoup Rent or other payments
due and to become due to Landlord hereunder except as expressly provided in
Paragraph 23.B. below, which Rent and other payments shall be absolutely due and
payable hereunder in accordance with the terms hereof.

                       21.    ASSIGNMENT AND SUBLETTING

A.   (1)  General.  This Lease has been negotiated to be and is granted as an
     accommodation to Tenant. Accordingly, this Lease is personal to Tenant, and
     Tenant's rights granted hereunder do not include the right to assign this
     Lease or sublease the Premises, or to receive any excess, either in
     installments or lump sum, over the Rent which is expressly reserved by
     Landlord as hereinafter provided, except as otherwise expressly hereinafter
     provided. Tenant shall not assign or pledge this Lease or sublet the
     Premises or any part thereof, whether voluntarily or by operation of law,
     or permit the use or occupancy of the Premises or any part thereof by
     anyone other than Tenant, or suffer or permit any such assignment, pledge,
     subleasing or occupancy, without Landlord's prior written consent except as
     provided herein. If Tenant desires to assign this Lease or sublet any or
     all of the Premises, Tenant shall give Landlord written notice (the
     "Transfer Notice") at least thirty (30) days prior to the anticipated
     effective date of the proposed assignment or sublease, which shall contain
     all of the information reasonably requested by Landlord to address
     Landlord's decision criteria specified hereinafter. Landlord shall then
     have a period of ten (10) business days following receipt of the Transfer
     Notice to notify Tenant in writing that Landlord elects either: (i) to
     terminate this Lease as to the space so affected as of the date so
     requested by Tenant; or (ii) to consent to the proposed assignment or
     sublease, subject, however, to Landlord's prior written consent of the
     proposed assignee or subtenant and of any related documents or agreements
     associated with the assignment or sublease. If Landlord should fail to
     notify Tenant in writing of such election within said period, Landlord
     shall be deemed to have waived option (i) above, but written consent by
     Landlord of the proposed assignee or subtenant shall still be required. If
     Landlord does not exercise option (i) above, Landlord's consent to a
     proposed assignment or sublease shall not be unreasonably withheld. Consent
     to any assignment or subletting shall not constitute consent to any
     subsequent transaction to which this Paragraph 21 applies.

     (2)  Conditions of Landlord's Consent. Without limiting the other instances
     in which it may be reasonable for Landlord to withhold Landlord's consent
     in the following instances: if the proposed assignee does not agree to be
     bound by and

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<PAGE>

     assume the obligations of Tenant under this Lease in form and substance
     satisfactory to Landlord; the use of the Premises by such proposed assignee
     or subtenant would not be a Permitted Use or would violate any exclusivity
     or other arrangement which Landlord has with any other tenant or occupant
     or any Regulation or would increase the Occupancy Density or Parking
     Density of the Building or Project, or would otherwise result in an
     undesirable tenant mix for the Project as determined by Landlord; the
     proposed assignee or subtenant is not of sound financial condition as
     determined by Landlord in Landlord's sole discretion; the proposed assignee
     or subtenant is a governmental agency; the proposed assignee or subtenant
     does not have a good reputation as a tenant of property or a good business
     reputation; the proposed assignee or subtenant is a person with whom
     Landlord is negotiating to lease space in the Project or is a present
     tenant of the Project; the assignment or subletting would entail any other
     noxious use or use which may disturb other tenants of the Project; or
     Tenant is in default of any obligation of Tenant under this Lease, or
     Tenant has defaulted under this Lease on three (3) or more occasions during
     any twelve (12) months preceding the date that Tenant shall request
     consent. Failure by or refusal of Landlord to consent to a proposed
     assignee or subtenant shall not cause a termination of this Lease. Upon a
     termination under Paragraph 21.A.(1)(i), Landlord may lease the Premises to
     any party, including parties with whom Tenant has negotiated an assignment
     or sublease, without incurring any liability to Tenant. At the option of
     Landlord, a surrender and termination of this Lease shall operate as an
     assignment to Landlord of some or all subleases or subtenancies. Landlord
     shall exercise this option by giving notice of that assignment to such
     subtenants on or before the effective date of the surrender and
     termination. In connection with each request for assignment or subletting,
     Tenant shall pay to Landlord Landlord's standard fee for approving such
     requests, as well as all costs incurred by Landlord or any mortgagee or
     ground lessor in approving each such request and effecting any such
     transfer, including, without limitation, reasonable attorneys' fees.
     Notwithstanding the provisions of this Paragraph 21, so long as Tenant has
     not assigned the Lease or subleased any portion of the Premises, Tenant
     shall have the right to assign this Lease to any corporation which is
     controlled by, under the control of, or under common control with Tenant,
     or any corporation into which Tenant may be merged or consolidated, or
     which purchases all or substantially all of the assets of Tenant (each an
     "Affiliate of Tenant"); provided, however, (a) Tenant shall not be released
     from its obligations under this Lease, (b) the use by the Affiliate of
     Tenant of the Premises shall be consistent with Paragraph 4 of the Lease,
     (c) Landlord shall be given at least 15 days prior written notice of the
     assignment or sublease, (d) Landlord shall be given a copy of the document
     effecting the assignment or sublease at least 15 days prior to the date on
     which the assignment or sublease shall occur, and (c) from and after the
     date of the assignment and sublease, Tenant shall be jointly and severally
     liable with the Affiliate of Tenant with respect to all obligations of
     Tenant under this Lease.

B.   Bonus Rent.  Any rent or other consideration realized by Tenant under any
such sublease or assignment in excess of the Rent payable hereunder, after
amortization of a reasonable brokerage commission incurred by Tenant, shall be
divided and paid, ten percent (10%) to Tenant, ninety percent (90%) to Landlord.

C.   Corporation.  If Tenant is a corporation, a transfer of corporate shares by
sale, assignment, bequest, inheritance, operation of law or other disposition
(including such a transfer to or by a receiver or trustee in federal or state
bankruptcy, insolvency or other proceedings) resulting in a change in the
present control of such corporation or any of its parent corporations by the
person or persons owning a majority of said corporate shares, shall constitute
an assignment for purposes of this Lease. The transfer of outstanding capital
stock or other listed equity interests, or the purchase of equity interests
issued in an initial public offering of stock, by persons or parties other than
"insiders" within the meaning of the Securities Exchange Act of 1934, as
amended, through the "over-the-counter" market or any recognized national or
international securities exchange, shall not be included in determining whether
Control (as defined below) has been transferred. "Control" shall mean direct or
indirect ownership of fifty percent (50%) or more of all of the voting stock of
a corporation of fifty percent (50%) or more of the legal or equitable interest
in any other business entity, or the power to direct the operations of any
entity (by equity ownership, contract or otherwise).

D.   Unincorporated Entity.  If Tenant is a partnership, joint venture,
unincorporated limited liability company or other unincorporated business form,
a transfer of the interest of persons, firms or entities responsible for
managerial control of Tenant by sale, assignment, bequest, inheritance,
operation of law or other disposition, so as to result in a change in the
present control of said entity and/or of the underlying beneficial interests of
said entity and/or a change in the identity of the persons responsible for the
general credit obligations of said entity shall constitute an assignment for all
purposes of this Lease.

E.   Liability.  No assignment or subletting by Tenant, permitted or otherwise,
shall relieve Tenant of any obligation under this Lease or alter the primary
liability of the Tenant named herein for the payment of Rent or for the
performance of any other obligations to be performed by Tenant, including
obligations contained in Paragraph 25 with respect to any assignee or subtenant.
Landlord may collect rent or other amounts or any portion thereof from any
assignee, subtenant, or other occupant of the Premises, permitted or otherwise,
and apply the net rent collected to the Rent payable hereunder, but no such
collection shall be deemed to be a waiver of this Paragraph 21, or the
acceptance of the assignee, subtenant or occupant as tenant, or a release of
Tenant from the further performance by Tenant of the obligations of Tenant under
this Lease. Any assignment or subletting which conflicts with the provisions
hereof shall be voided.

                              22.      AUTHORITY

  Landlord represents and warrants that it has full right and authority to enter
into this Lease and to perform all of Landlord's obligations hereunder and that
all persons signing this Lease on its behalf are authorized to do. Tenant and
the person or persons, if any, signing on behalf of Tenant, jointly and
severally represent and warrant that Tenant has full right and authority to
enter into this Lease, and to perform all of Tenant's obligations hereunder, and
that all persons signing this Lease on its behalf are authorized to do so.

                             23.      CONDEMNATION

A.   Condemnation Resulting in Termination.  If the whole or any substantial
part of the Premises should be taken or condemned for any public use under any
Regulation, or by right of eminent domain, or by private purchase in lieu
thereof, and the taking would prevent or materially interfere with the Permitted
Use of the Premises, either party shall have the right to terminate this Lease
at its option. If any material portion of the Building or Project is taken or
condemned for any public use under any Regulation, or by right of eminent
domain, or by private purchase in lieu thereof, Landlord may terminate this
Lease at its option. In either of such events, the Rent shall be abated during
the unexpired portion of this Lease, effective when the physical taking of said
Premises shall have occurred.

B.   Condemnation Not Resulting in Termination.  If a portion of the Project of
which the Premises are a part should be taken or condemned for any public use
under any Regulation, or by right of eminent domain, or by private purchase in
lieu thereof, and the taking prevents or materially interferes with the
Permitted Use of the Premises, and this Lease is not terminated as provided in
Paragraph 23.A. above, the Rent payable hereunder during the unexpired portion
of this Lease shall be reduced, beginning on the date when the physical credit
for all sums received or to be received by Tenant by the condemning authority.
Notwithstanding anything to the contrary contained in this Paragraph, if the
temporary use or occupancy of any part of the Premises shall be taken or
appropriated under power of eminent domain during the Term, this Lease shall be
and remain unaffected by such taking or appropriation and Tenant shall continue
to pay in full all Rent payable hereunder by Tenant during the Term; in the
event of any such temporary appropriation or taking, Tenant shall be entitled

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<PAGE>

to receive that portion of any award which represents compensation for the use
of or occupancy of the Premises during the Term, and Landlord shall be entitled
to receive that portion of any award which represents the cost of restoration of
the Premises and the use and occupancy of the Premises.

C.   Award. Landlord shall be entitled to (and Tenant shall assign to Landlord)
any and all payment, income, rent, award or any interest therein whatsoever
which may be paid or made in connection with such taking or conveyance and
Tenant shall have no claim against Landlord or otherwise for any sums paid by
virtue of such proceedings, whether or not attributable to the value of any
unexpired portion of this Lease, except as expressly provided in this Lease.
Notwithstanding the foregoing, any compensation specifically and separately
awarded Tenant for Tenant's personal property and moving costs, shall be and
remain the property of Tenant.

D.   Waiver of CCP (S)1265.130. Each party waives the provisions of California
Civil Code Procedure Section 1265.130 allowing either party to petition the
superior court to terminate this Lease as a result of a partial taking.

                              24. CASUALTY DAMAGE

A.   General. If the Premises or Building should be damaged or destroyed by
fire, tornado, or other casualty (collectively, "Casualty"), Tenant shall give
immediate written notice thereof to Landlord. Within thirty (30) days after
Landlord's receipt of such notice,, Landlord shall notify Tenant whether in
Landlord's estimation material restoration of the Premises can reasonably be
made within one hundred eighty (180) days from the date of such notice and
receipt of required permits for such restoration. Landlord's determination shall
be binding on Tenant.

B.   Within 120 Days. If the Premises or Building should be damaged by Casualty
to such extent that material restoration can in Landlord's estimation be
reasonably completed within one hundred twenty (120) days after the date of such
notice and receipt of required permits for such restoration, this Lease shall
not terminate. Provided that insurance proceeds are received by Landlord to
fully repair the damage, Landlord shall proceed to rebuild and repair the
Premises in the manner determined by Landlord, except that Landlord shall not be
required to rebuild, repair or replace any part of the Alterations which may
have been placed on or about the Premises by Tenant. If the Premises are
untenantable in whole or in part following such damage, the Rent payable
hereunder during the period in which they are untenantable shall be abated
proportionately, but only to the extent of rental abatement insurance proceeds
received by Landlord during the time and to the extent the Premises are unfit
for occupancy.

C.   Greater than 120 Days. If the Premises or Building should be damaged by
Casualty to such extent that rebuilding or repairs cannot in Landlord's
estimation be reasonably completed within one hundred twenty (120) days after
the date of such notice and receipt of required permits for such rebuilding or
repair, then Landlord shall have the option of either: (1) terminating this
Lease effective upon the date of the occurrence of such damage, in which event
the Rent the Rent shall be abated during the unexpired portion of this Lease; or
(2) electing to rebuild or repair the Premises diligently and in the manner
determined by Landlord. Landlord shall notify Tenant of its election within
thirty (30) days after Landlord's receipt of notice of the damage or
destruction. Notwithstanding the above, Landlord shall not be required to
rebuild, repair or replace any part of any Alterations which may have been
placed, on or about the Premises by Tenant. If the Premises are untenantable in
whole or in part following such damage, the Rent payable hereunder during the
period in which they are untenantable shall be abated proportionately, but only
to the extent of rental abatement insurance proceeds received by Landlord during
the time and to the extent the Premises are unfit for occupancy.

D.   Tenant's Fault. Notwithstanding anything herein to the contrary, if the
Premises or any other portion of the Building are damaged by Casualty resulting
from the fault, negligence, or breach of this Lease by Tenant or any of Tenant's
Parties, Base Rent and Additional Rent shall not be diminished during the repair
of such damage and Tenant shall be liable to Landlord for the cost and expense
of the repair and restoration of the Building caused thereby to the extent such
cost and expense is not covered by insurance proceeds.

E.   Insurance Proceeds. Notwithstanding anything herein to the contrary, if the
Premises or Building are damaged or destroyed and are not fully covered by the
insurance proceeds received by Landlord or if the holder of any indebtedness
secured by a mortgage or deed of trust covering the Premises requires that the
insurance proceeds be applied to such indebtedness, then in either case Landlord
shall have the right to terminate this Lease by delivering written notice of
termination to Tenant within thirty (30) days after the date of notice to
Landlord that said damage or destruction is not fully covered by insurance or
such requirement is made by any such holder, as the case may be, whereupon this
Lease shall terminate.

F.   Waiver. This Paragraph 24 shall be Tenant's sole and exclusive remedy in
the event of damage or destruction to the Premises or the Building. As a
material inducement to Landlord entering into this Lease, Tenant hereby waives
any rights it may have under Sections 1932, 1933(4), 1941 or 1942 of the Civil
Code of California with respect to any destruction of the Premises, Landlord's
obligation for tenantability of the Premises and Tenant's right to make repairs
and deduct the expenses of such repairs, or under any similar law, statute or
ordinance now or hereafter in effect.

G.   Tenant's Personal Property. In the event of any damage or destruction of
the Premises or the Building, under no circumstances shall Landlord be required
to repair any injury or damage to, or make any repairs to or replacements of,
Tenant's personal property.

                               25. HOLDING OVER

   Unless Landlord expressly consents in writing to Tenant's holding over,
Tenant shall be unlawfully and illegality in possession of the Premises without
Landlord's written consent. If Tenant shall retain possession of the Premises or
any portion thereof without Landlord's consent following the expiration of this
Lease or sooner termination for any reason, then Tenant shall pay to Landlord
for each day of such retention double the amount of daily rental as of the last
month prior to the date of expiration or earlier termination. Tenant shall also
indemnify, defend, protect and hold Landlord harmless from any loss, liability
or cost, including consequential and incidental damages and reasonable
attorneys' fees, incurred by Landlord resulting from delay by Tenant in
surrendering the Premises, including, without limitation, any claims made by the
succeeding tenant founded on such delay. Acceptance of Rent by Landlord
following expiration or earlier termination of this Lease, or following demand
by Landlord for possession of the Premises, shall not constitute a renewal of
this Lease, and nothing contained in this Paragraph 25 shall waive Landlord's
right of reentry or any other right. Additionally, if upon expiration or earlier
termination of this Lease, or following demand by Landlord for possession of the
Premises, Tenant has not fulfilled its obligation with respect to repairs and
cleanup of the Premises or any other Tenant obligations as set forth in this
Lease, then Landlord shall have the right to perform any such obligations as it
deems necessary at Tenant's sole cost and expense, and any time required by
Landlord to complete such obligations shall be considered a period of holding
over and the terms of this Paragraph 25 shall apply. The provisions of this
Paragraph 25 shall survive any expiration or earlier termination of this Lease.

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<PAGE>

                                  26. DEFAULT

A.   Events of Default. The occurrence of any of the following shall constitute
     an event of default on the part of Tenant:

     (1)  Abandonment. Abandonment or vacation of the Premises for a continuous
     period in excess of ten (10) days. Tenant waives any right to notice Tenant
     may have under Section 1951.3 of the Civil Code of the State of California,
     the terms of this Paragraph 26.A. being deemed such notice to Tenant as
     required by said Section 1951.3

     (2)  Nonpayment of Rent. Failure to pay any installment of Rent or any
     other amount due and payable hereunder upon the date when said payment is
     due, as to which time of the essence.

     (3)  Other Obligations. Failure to perform any obligation, agreement or
     covenant under this Lease other than those matters specified in
     subparagraphs (1) and (2) of this Paragraph 26.A, such failure continuing
     for fifteen (15) days after written notice of such failure, as to which
     time is of the essence, provided that Tenant shall not be deemed to be in
     default under this Section 26.A.(3) if such default is incapable of cure
     within said period and Tenant has commenced to complete the cure of such
     default within said fifteen (15) day period and is proceeding diligently.

     (4)  General Assignment. A general assignment by Tenant for the benefit of
     creditors.

     (5)  Bankruptcy. The filing of any voluntary petition in bankruptcy by
     Tenant, or the filing of an involuntary petition by Tenant's creditors,
     which involuntary petition remains undischarged for a period of thirty (30)
     days. If under applicable law, the trustee in bankruptcy or Tenant has the
     right to affirm this Lease and continue to perform the obligations of
     Tenant hereunder, such trustee or Tenant shall, in such time period as may
     be permitted by the bankruptcy court having jurisdiction, cure all defaults
     of Tenant hereunder outstanding as of the date of the affirmance of this
     Lease and provide to Landlord such adequate assurances as may be necessary
     to ensure Landlord of the continued performance of Tenant's obligations
     under this Lease.

     (6)  Receivership. The employment of a receiver to take possession of
     substantially all of Tenant's assets or Tenant's leasehold of the Premises,
     if such appointment remains undismissed or undischarged for a period of
     fifteen (15) days after the order therefor.

     (7)  Attachment. The attachment, execution or other judicial seizure of all
     or substantially all of Tenant's assets or Tenant's leasehold of the
     Premises, if such attachment or other seizure remains undismissed or
     undischarged for a period of fifteen (15) days after the levy thereof.

     (8)  Insolvency. The admission by Tenant in writing of its inability to pay
     its debts as they become due.

B.   Remedies Upon Default.

     (1)  Termination. In the event of the occurrence of any event of default,
     Landlord shall have the right to give a written termination notice to
     Tenant, and on the date specified in such notice, Tenant's right to
     possession shall terminate, and this Lease shall terminate unless on or
     before such date all Rent in arrears and all costs and expenses incurred by
     or on behalf of Landlord hereunder shall have been paid by Tenant and all
     other events of default of this Lease by Tenant at the time existing shall
     have been fully remedied to the satisfaction of Landlord. At any time after
     such termination, Landlord may recover possession of the Premises or any
     part thereof and expel and remove therefrom Tenant and any other person
     occupying the same, including any subtenant or subtenants notwithstanding
     Landlord's consent to any sublease, by any lawful means, and again
     repossess and enjoy the Premises without prejudice to any of the remedies
     that Landlord may have under this Lease, or at law or equity by any reason
     of Tenant's default or of such termination. Landlord hereby reserves the
     right, but shall not have the obligation, to recognize the continued
     possession of any subtenant. The delivery or surrender to Landlord by or on
     behalf of Tenant of keys, entry codes, or other means to bypass security at
     the Premises shall not terminate this Lease.

     (2)  Continuation After Default. Even though an event of default may have
     occurred, this Lease shall continue in effect for so long as Landlord does
     not terminate Tenant's right to possession under Paragraph 26.B.(1) hereof,
     and Landlord may enforce all of Landlord's rights and remedies under this
     Lease and at law or in equity, including without limitation, the right to
     recover Rent as it becomes due, and Landlord, without terminating this
     Lease, may exercise all of the rights and remedies of a landlord under
     Section 1951.4 of the Civil Code of the State of California or any
     successor code section. Acts of maintenance, preservation or efforts to
     lease the Premises or the appointment of a receiver under application of
     Landlord to protect Landlord's interest under this Lease or other entry by
     Landlord upon the Premises shall not constitute an election to terminate
     Tenant's right to possession.

     (3)  Increased Security Deposit. If Tenant is in default under Paragraph
     26.A.(2) hereof and such default remains uncured for ten (10) days after
     such occurrence or such default occurs more than three times in any twelve
     (12) month period, Landlord may require that Tenant increase the Security
     Deposit to the amount of three times the current month's Rent at the time
     of the men recent default.

C.   Damages After Default. Should Landlord terminate this Lease pursuant to the
provisions of Paragraph 26.B.(1) hereof, Landlord shall have the rights and
remedies of a Landlord provided by Section 1951.2 of the Civil Code of the State
of California, or any successor code sections. Upon such termination, in
addition to any other rights and remedies to which Landlord may be entitled
under applicable law or at equity, Landlord shall be entitled to recover from
Tenant: (1) the worth at the time of award of the unpaid Rent and other amounts
which had been earned at the time of termination, (2) the worth at the time of
award of the amount by which the unpaid Rent and other amounts that would have
been earned after the date of termination until the time of award exceeds the
amount of such Rent loss that Tenant proves could have been reasonably avoided;
(3) the worth at the time of award of the amount by which the unpaid Rent and
other amounts for the balance of the Term after the time of award exceeds the
amount of such Rent loss that the Tenant proves could be avoided; and (4) any
other amount and court costs necessary to compensate Landlord for all 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. The "worth at the time of award" as used in (1) and (2) above shall
be computed at the Applicable Interest Rate (defined below). The "worth at the
time of award" as used in (3) above shall be computed by discounting such amount
at the Federal Discount Rate of the Federal Reserve Bank of San Francisco at the
time of award plus one percent (1%). If this Lease provides for any periods
during which Tenant is not required to pay Base Rent or if Tenant otherwise
receives a Rent concession, then upon the occurrence of an event fault, Tenant
shall owe to Landlord the full amount of such Base Rent or value of such Rent
concession, plus interest at interest at the Applicable Interest Rate,
calculated from the date that such Base Rent or Rent concession would have been
payable.

D.   Late Charge. In addition to its other remedies, Landlord shall have the
right without notice or demand to add to the amount of any payment required to
be made by Tenant hereunder, and which is not paid and received by Landlord on
or before the first day of each calendar month, an amount equal to ten percent
(10%) of the delinquency for each month or portion thereof that the delinquency
remains

                                       14
<PAGE>

outstanding to compensate Landlord for the loss of the use of the amount not
paid and the administrative costs caused by the delinquency, the parties
agreeing that Landlord's damage by virtue of such delinquencies would be
extremely difficult and impracticable to compute and the amount stated herein
represents a reasonable estimate thereof. Any waiver by Landlord of any late
charges or failure to claim the same shall not constitute a waiver of other late
charges or any other remedies available to Landlord.

E.   Interest. Interest shall accrue on all sums not paid when due hereunder at
the lesser of eighteen percent (18%) per annum or the maximum interest rate
allowed by law ("Applicable Interest Rate") from the due date until paid.

F.   Remedies Cumulative. All rights, privileges and elections or remedies of
the parties arc cumulative and not alternative, to the extent permitted by law
and except as otherwise provided herein.

                                   27. LIENS

   Tenant shall at all times keep the Premises and the Project free from liens
arising out of or related to work or services performed, materials or supplies
furnished or obligations incurred by or on behalf of Tenant or in connection
with work made, suffered or done by or on behalf of Tenant in or on the Premises
or Project. If Tenant shall not, within ten (10) days following the imposition
of any such lien, cause the same to be released of record by payment or posting
of a proper bond, Landlord shall have, in addition to all other remedies
provided herein and by law, the right, but not the obligation, to cause the same
to be released by such means as Landlord shall deem proper, including payment of
the claim giving rise to such lien. All sums paid by Landlord on behalf of
Tenant and all expenses incurred by Landlord in connection therefor shall be
payable to Landlord by Tenant on demand with interest at the Applicable Interest
Rate as Additional Rent. Landlord shall have the right at all times to post and
keep posted on the Premises any notices permitted or required by law, or which
Landlord shall deem proper, for the protection of Landlord, the Premises, the
Project and any other party having an interest therein, from mechanics' and
materialman's liens, and Tenant shall give Landlord not less than ten (10)
business days prior written notice of the commencement of any work in the
Premises or Project which could lawfully give rise to a claim for mechanics' or
materialmen's liens to permit Landlord to post and record a timely notice of
non-responsibility, as Landlord may elect to proceed or as the law may from time
to time provide, for which purpose, if Landlord shall so determine, Landlord may
enter the Premises. Tenant shall not remove any such notice posted by Landlord
without Landlord's consent, and in any event not before completion of the work
which could lawfully give rise to a claim for mechanics' or materialmen's liens.

                               28. SUBSTITUTION

A.   At any time after execution of this Lease, Landlord may substitute for the
Premises other premises in the Project or owned by Landlord in the vicinity of
the Project (the "New Premises") upon not less than sixty (60) days prior
written notice, in which event the New Premises shall be deemed to be the
Premises for all purposes hereunder and this Lease shall be deemed modified
accordingly to reflect the new location and shall remain in full force and
effect as so modified, provided that:

     (1)  The New Premises shall be similar in area and in function for Tenant's
     purposes; and

     (2)  If Tenant is occupying the Premises at the time of such substitution,
     Landlord shall pay the expense of physically moving Tenant, Tenant's
     property and equipment to the New Premises and shall, at Landlord's sole
     cost, improve the New Premises with improvements substantially similar to
     those the Landlord has committed to provide or has provided in the
     Premises.

     The provisions of this Paragraph 28 shall not apply during the initial
     eighteen (18) month lease term.

                           29. TRANSFERS BY LANDLORD

   In the event of a sale or conveyance by Landlord of the Building or a
foreclosure by any creditor of Landlord, the same shall operate to release
Landlord from any liability upon any of the covenants or conditions, express or
implied, herein contained in favor of Tenant, to the extent required to be
performed after the passing of title to Landlord's successor-in-interest. In
such event, Tenant agrees to look solely to the responsibility of the successor-
in-interest of Landlord under this Lease with respect to the performance of the
covenants and duties of "Landlord" to be performed after the passing of title to
Landlord's successor-in-interest. This Lease shall not be affected by any such
sale and Tenant agrees to attorn to the purchaser or assignee. Landlord's
successor(s)-in-interest shall not have liability to Tenant with respect to the
failure to perform any of the obligations of "Landlord," to the extent required
to be performed prior to the date such successor(s)-in-interest became the owner
of the Building.

              30. RIGHT OF LANDLORD TO PERFORM TENANT'S COVENANTS

   All covenants and agreements to be performed by Tenant under any of the terms
of this Lease shall be performed by Tenant at Tenant's sole cost and expense and
without any abatement of Rent. If Tenant shall fail to pay any sum of money,
other than Base Rent, required to be paid by Tenant hereunder or shall fail to
perform any other act on Tenant's part to be performed hereunder, including
Tenant's obligations under Paragraph 11 hereof, and such failure shall continue,
beyond the applicable notice and cure period, in addition to the other rights
and remedies of Landlord, Landlord may make any such payment and perform any
such act on Tenant's part. In the case of an emergency, no prior notification by
Landlord shall be required. Landlord may take such actions without any
obligation and without releasing Tenant from any of Tenant's obligations. All
sums so paid by Landlord and all incidental costs incurred by Landlord and
interest thereon at the Applicable Interest Rate, from the date of payment by
Landlord, shall be paid to Landlord on demand as Additional Rent.

                                  31. WAIVER

   If either Landlord or Tenant waives the performance of any term, covenant or
condition contained in this Lease, such waiver shall not be deemed to be a
waiver of any subsequent breach of the same or any other term, covenant or
condition contained herein, or constitute a course of dealing contrary to the
expressed terms of this Lease. The acceptance of Rent by Landlord shall not
constitute a waiver of any preceding breach by Tenant of any term, covenant or
condition of this Lease, regardless of Landlord's knowledge of such preceding
breach at the time Landlord accepted such Rent. Failure by Landlord to enforce
any of the terms, covenants or conditions of this Lease for any length of time
shall not be deemed to waive or decrease the right of Landlord to insist
thereafter upon strict performance by Tenant. Waiver by Landlord of any term,
covenant or condition contained in this Lease may only be made by a written
document signed by Landlord, based upon full knowledge of the circumstances.

                                  32. NOTICES

   Each provision of this Lease or of any applicable governmental laws,
ordinances, regulations and other requirements with reference to sending,
mailing, or delivery of any notice or the making of any payment by Landlord or
Tenant to the other shall be deemed to be complied with when and if the
following steps are taken:

                                       15
<PAGE>

A.   Rent. All Rent and other payments required to be made by Tenant to Landlord
hereunder shall be payable to Landlord at Landlord's Remittance Address set
forth in the Basic Lease Information, or at such other address as Landlord may
specify from time to time by written notice delivered in accordance herewith.
Tenant's obligation to pay Rent and any other amounts to Landlord under the
terms of this Lease shall not be deemed satisfied until such Rent and other
amounts have been actually received by Landlord.

B.   Other. All notices, demands, consents and approvals which may or are
required to be given by either party to the other hereunder shall be in writing
and either personally delivered, sent by commercial overnight courier, mailed,
certified or registered, postage prepaid or sent by facsimile with confirmed
receipt (and with an original sent by commercial overnight courier), and in each
case addressed to the party to be notified at the Notice Address for such party
as specified in the Basic Lease Information or to such other place as the party
to be notified may from time to time designate by at least fifteen (15) days
notice to the notifying party. Notices shall be deemed served upon receipt or
refusal to accept delivery. Tenant appoints as its agent to receive the service
of all default notices and notice of commencement of unlawful detainer
proceedings the person in charge of or apparently in charge of occupying the
Premises at the time, and, if there is no such person, then such service may be
made by attaching the same on the main entrance of the Premises.

C.   Required Notices. Tenant shall immediately notify Landlord in writing of
any notice of a violation or a potential or alleged violation of any Regulation
that relates to the Premises or the Project, or of any inquiry, investigation,
enforcement or other action that is instituted or threatened by any governmental
or regulatory agency against Tenant or any other occupant of the Premises, or
any claim that is instituted or threatened by any third party that relates to
the Premises or the Project.

                              33. ATTORNEYS' FEES

   If Landlord places the enforcement of this Lease, or any part thereof, or the
collection of any Rent due, or to become due hereunder, or recovery of
possession of the Premises in the hands of an attorney, Tenant shall pay to
Landlord, upon demand, Landlord's reasonable attorneys' fees and court costs,
whether incurred without trial, at trial, appeal or review. In any action which
Landlord or Tenant brings to enforce its respective rights hereunder, the
unsuccessful party shall pay all costs incurred by the prevailing party
including reasonable attorneys' fees, to be fixed by the court and said costs
and attorneys' fees shall be a part of the judgment in said action.

                          34. SUCCESSORS AND ASSIGNS

   This Lease shall be binding upon and inure to the benefit of Landlord, its
successors and assigns, and shall be binding upon and inure to the benefit of
Tenant, its successors, and to the extent assignment is approved by Landlord as
provided hereunder, Tenant's assigns.

                               35. FORCE MAJEURE

   If performance by a party of any portion of this Lease is made impossible by
any prevention, delay, or stoppage caused by strikes, lockouts, labor disputes,
acts of God, inability to obtain services, labor, or materials or reasonable
substitutes for those items, government actions, civil commotions, fire or other
casualty, or other causes beyond the reasonable control of the party obligated
to perform, performance by that party for a period equal to the period of that
prevention, delay, or stoppage is excused. Tenant's obligation to pay Rent,
however, is not excused by this Paragraph 35.

                           36. SURRENDER OF PREMISES

   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, including, but not limited to, all interior
walls cleaned, all interior painted surfaces repainted in the original color
(normal wear and tear excepted), all holes in walls repaired, all carpets
shampooed and cleaned, and all floors cleaned, waxed, and free of any Tenant-
introduced marking or painting, all to the reasonable satisfaction of Landlord.
Tenant shall remove all of its debris from the Project. At or before the time of
surrender, Tenant shall comply with the terms of Paragraph 12.A. hereof with
respect to Alterations to the Premises and all other matters addressed in such
Paragraph. If the Premises are not so surrendered at the expiration or sooner
termination of this Lease, the provisions of Paragraph 25 hereof shall apply.
All keys to the Premises or any part thereof shall be surrendered to Landlord
upon expiration or sooner termination of the Term. Tenant shall give written
notice to Landlord at least thirty (30) days prior to vacating the Premises and
shall meet with Landlord for a joint inspection of the Premises at the time of
vacating, but nothing contained herein shall be construed as an extension of the
Term or as a consent by Landlord to any holding over by Tenant. In the event of
Tenant's failure to give such notice or participate in such joint inspection,
Landlord's inspection at or after Tenant's vacating the Premises shall
conclusively be deemed correct for purposes of determining Tenant's
responsibility for repairs and restoration. Any delay caused by Tenant's failure
to carry' out its obligations under this Paragraph 36 beyond the term hereof,
shall constitute unlawful and illegal possession of Premises under Paragraph 25
hereof.

                                  37. PARKING

   So long as Tenant is occupying the Premises, Tenant and Tenant's Parties
shall have the right, without unreasonable fee or additional rent, to use up to
the number of parking spaces, if any, specified in the Basic Lease Information
on an unreserved, nonexclusive, first come, first served basis, for passenger-
size automobiles, in the parking areas in the Project designated from time to
time by Landlord for use in common by tenants of the Building.

   Tenant may request additional parking spaces from time to time and if
Landlord in its sole discretion agrees to make such additional spaces available
for use by Tenant, such spaces shall be provided on a month-to-month unreserved
and nonexclusive basis (unless otherwise agreed in writing by Landlord), and
subject to such parking charges as Landlord shall determine, and shall otherwise
be subject to such terms and conditions as Landlord may require.

   Tenant shall at all times comply and shall cause all Tenant's Parties and
visitors to comply with all Regulations and any rules and regulations
established from time to time by Landlord relating to parking at the Project,
including any keycard, sticker or other identification or entrance system, and
hours of operation, as applicable.

   Landlord shall have no liability for any damage to property or other items
located in the parking areas of the Project, nor for any personal injuries or
death arising out of the use of parking areas in the Project by Tenant or any
Tenant's Parties. Without limiting the foregoing, if Landlord arranges for the
parking areas to be operated by an independent contractor not affiliated with
Landlord, Tenant acknowledges that Landlord shall have no liability for claims
arising through acts or omissions of such independent contractor. In all events,
Tenant agrees to look first to its insurance carrier and to require that
Tenant's Parties look first to their respective insurance carriers for payment
of any losses sustained in connection with any use of the parking areas.

   Landlord reserves the right to assign specific spaces, and to reserve spaces
for visitors, small cars, disabled persons or for other tenants or guests, and
Tenant shall not park and shall not allow Tenant's Parties to park in any such
assigned or reserved spaces. Tenant may validate visitor parking by such method
as Landlord may approve, at the validation rate from time to time generally
applicable to visitor parking. Landlord also reserves the right to alter,
modify, relocate or close all or any portion of the parking areas in order to
make

                                       16
<PAGE>

repairs or perform maintenance service, or to restripe or renovate the parking
areas, or if required by casualty, condemnation, act of God, Regulations or for
any other reason deemed reasonable by Landlord.

   Tenant shall pay to Landlord (or Landlord's parking contractor, if so
directed in writing by Landlord), as Additional Rent hereunder, the reasonable
monthly charges established from time to time by Landlord for parking in such
parking areas (which shall initially be the charge specified in the Basic Lease
information, as applicable). Such parking charges shall be payable in advance
with Tenant's payment of Basic Rent. No deductions from the monthly parking
charge shall be made for days on which the Tenant does not use any of the
parking spaces entitled to be used by Tenant. The parking charges shall be
comparable to those charged at other class "A" office projects in the local
airport area.

                               38. MISCELLANEOUS

A.   General. The term "Tenant" or any pronoun used in place thereof shall
indicate and include the masculine or feminine, the singular or plural number,
individuals, firms or corporations, and their respective successors, executors,
administrators and permitted assigns, according to the context hereof.

B.   Time. Time is of the essence regarding this Lease and all of its
provisions.

C.   Choice of Law. This Lease shall in all respects be governed by the laws of
the State of California.

D.   Entire Agreement. This Lease, together with its Exhibits, addenda and
attachments and the Basic Lease Information, contains all the agreements of the
parties hereto and supersedes any previous negotiations. There have been no
representations made by the Landlord or understandings made between the parties
other than those set forth in this Lease and its Exhibits, addenda and
attachments and the Basic Lease Information.

E.   Modification. This Lease may not be modified except by a written instrument
signed by the parties hereto. Tenant accepts the area of the Premises as
specified in the Basic Lease Information as the approximate area of the Premises
for all purposes under this Lease, and acknowledges and agrees that no other
definition of the area (rentable, usable or otherwise) of the Premises shall
apply. Tenant shall in no event be entitled to a recalculation of the square
footage of the Premises, rentable, usable or otherwise, and no recalculation, if
made, irrespective of its purpose, shall reduce Tenant's obligations under this
Lease in any manner, including without limitation the amount of Base Rent
payable by Tenant or Tenant's Proportionate Share of the Building and of the
Project.

F.   Severability. If, for any reason whatsoever, any of the provisions hereof
shall be unenforceable or ineffective, all of the other provisions shall be and
remain in full force and effect.

G.   Recordation. Tenant shall not record this Lease or a short form memorandum
hereof.

H.   Examination of Lease. Submission of this Lease to Tenant does not
constitute an option or offer to lease and this Lease is not effective otherwise
until execution and delivery by both Landlord and Tenant.

I.   Accord and Satisfaction. No payment by Tenant of a lesser amount than the
total Rent due nor any endorsement on any check or letter accompanying any check
or payment of Rent shall be deemed an accord and satisfaction of full payment of
Rent, and Landlord may accept such payment without prejudice to Landlord's right
to recover the balance of such Rent or to pursue other remedies. All offers by
or on behalf of Tenant of accord and satisfaction are hereby rejected in
advance.

J.   Easements. Landlord may grant easements on the Project and dedicate for
public use portions of the Project without Tenant's consent; provided that no
such grant or dedication shall materially interfere with Tenant's Permitted Use
of the Premises. Upon Landlord's request, Tenant shall execute, acknowledge and
deliver to Landlord documents, instruments, maps and plats necessary to
effectuate Tenant's covenants hereunder.

K.   Drafting and Determination Presumption. The parties acknowledge that this
Lease has been agreed to by both the parties, that both Landlord and Tenant have
consulted with attorneys with respect to the terms of this Lease and that no
presumption shall be created against Landlord because Landlord drafted this
Lease. Except as otherwise specifically set forth in this Lease, with respect to
any consent, determination or estimation of Landlord required or allowed in this
Lease or requested of Landlord, Landlord's consent, determination or estimation
shall be given or made solely by Landlord in Landlord's good faith opinion,
whether or not objectively reasonable. If Landlord fails to respond to any
request for its consent within the time period, if any, specified in this Lease,
Landlord shall be deemed to have disapproved such request.

L.   Exhibits. The Basic Lease Information, and the Exhibits, addenda and
attachments attached hereto are hereby incorporated herein by this reference and
made a part of this Lease as though fully set forth herein.

M.   No Light, Air or View Easement. Any diminution or shutting off of light,
air or view by any structure which may be erected on lands adjacent to or in the
vicinity of the Building shall in no way affect this Lease or impose any
liability on Landlord.

N.   No Third Party Benefit. This Lease is a contract between Landlord and
Tenant and nothing herein is intended to create any third party benefit.

O.   Quiet Enjoyment. Upon payment by Tenant of the Rent, and upon the
observance and performance of all of the other covenants, terms and conditions
on Tenant's part to be observed and performed, Tenant shall peaceably and
quietly hold and enjoy the Premises for the term hereby demised without
hindrance or interruption by Landlord or any other person or persons lawfully or
equitably claiming by, through or under Landlord, subject, nevertheless, to all
of the other terms and conditions of this Lease. Landlord shall not be liable
for any hindrance, interruption, interference or disturbance by other tenants or
third persons, nor shall Tenant be released from any obligations under this
Lease because of such hindrance, interruption, interference or disturbance.

P.   Counterparts. This Lease may be executed in any number of counterparts,
each of which shall be deemed an original.

Q.   Multiple Parties. If more than one person or entity is named herein as
Tenant, such multiple parties shall have joint and several responsibility to
comply with the terms of this Lease.

R.   Prorations. Any Rent or other amounts payable to Landlord by Tenant
hereunder for any fractional month shall be prorated based on a month of 30
days. As used herein, the term "fiscal year" shall mean the calendar year or
such other fiscal year as Landlord may deem appropriate.

                                       17
<PAGE>

                           39. ADDITIONAL PROVISIONS

                                       18
<PAGE>

                             40. JURY TRIAL WAIVER

    EACH PARTY HERETO (WHICH INCLUDES ANY ASSIGNEE, SUCCESSOR HEIR OR PERSONAL
REPRESENTATIVE OF A PARTY) SHALL NOT SEEK A JURY TRIAL, HEREBY WAIVES TRIAL BY
JURY, AND HEREBY FURTHER WAIVES ANY OBJECTION TO VENUE IN THE COUNTY IN WHICH
THE BUILDING IS LOCATED, AND AGREES AND CONSENTS TO PERSONAL JURISDICTION OF THE
COURTS OF THE STATE IN WHICH THE PROPERTY IS LOCATED, IN ANY ACTION OR
PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY HERETO AGAINST THE OTHER ON ANY
MATER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE
RELATIONSHIP OF LANDLORD AND TENANT, TENANT'S USE OR OCCUPANCY OF THE PREMISES,
OR ANY CLAIM OF INJURY OR DAMAGE, OR THE ENFORCEMENT OF ANY REMEDY UNDER ANY
STATUTE, EMERGENCY OR OTHERWISE, WHETHER ANY OF THE FOREGOING IS BASED ON THIS
LEASE OR ON TORT LAW. EACH PARTY REPRESENTS THAT IT HAS HAD THE OPPORTUNITY TO
CONSULT WITH LEGAL COUNSEL CONCERNING THE EFFECT OF THIS PARAGRAPH 40. THE
PROVISIONS OF THE PARAGRAPH 40 SHALL SURVIVE THE EXPIRATION OR EARLIER
TERMINATION OF THIS LEASE.

                41. AFTER HOURS BUILDING SERVICES AND AMENITIES

   Landlord provides normal heating, ventilation, and air conditioning (HVAC),
electrical power and use of all other building services and amenities Monday
through Friday, 6:00 AM to 6:00 PM, during generally recognized business days,
as determined by Landlord.

   Tenant acknowledges and agrees that Tenant's use of the Premises outside of
generally recognized business days and hours imposes an additional burden on the
Building's janitorial service, fluorescent light tubes, HVAC, electrical
services, and other common area amenities. After-hours HVAC use, including
administrative fees are currently estimated at Thirty Dollars ($30.00) per hour.

                      42. NON-STANDARD LIGHTING FIXTURES

   All lamp ("light bulb") replacements, subsequent to the original construction
of the Tenant Improvements, for light fixtures other than those defined as
Building Standard, shall be solely performed by Landlord but shall be at the
sole cost of Tenant. Tenant shall reimburse Landlord within thirty (30) days of
receipt of a written invoice for non-standard light fixture lamp replacements.

                                  43. PARKING

   Landlord shall provide Tenant with parking stalls on a non-exclusive,
unreserved basis, on levels B, C and D.

                                  44. SIGNAGE

   Landlord, at its sole cost and expense, shall provide Tenant with Interior
Building signage as follows; (1) Suite Entry sign, as well as (1) Ground Floor
Directory strip and (1) Mezzanine level Directory strip.

                               45. GROUND LEASE

   Tenant acknowledges and agrees that Landlord leases the land underlying the
Project pursuant to a ground lease (the "Ground Lease") under which Landlord is
the lessee and A.O. Cataldi & Son is the lessor, which Ground Lease is more
particularly described on Exhibit E attached hereto. Tenant further acknowledges
that the lease is subject and subordinate to the Ground Lease. Without limiting
any of the provisions of the paragraph 16 or paragraph 43 of the Lease, all uses
of the Premises and each proposed subletting or assignment of the Premises shall
be subject to the terms and conditions of the Ground Lease, and Tenant shall
carry such insurance and in amounts as may be required by the terms and
conditions of the Ground Lease. To the extent same relates to the Premises,
Tenant hereby covenants and agrees to fully perform in a timely manner all
obligations, terms, covenants and conditions imposed upon Landlord as Lessee
under the Ground Lease, except for those involving the payment of "rent" by
Landlord and Lessee thereunder. Without limiting any of the provisions of
paragraph 16 of the Lease, in the event that A.O. Cataldi & Son, to attorn to
A.O. Cataldi & Son or at the option of A.O. Cataldi & Son enter into a new lease
with A.O. Cataldi & Son for the balance of the term hereof and on the same terms
and conditions as are contained in the Lease.

                                       19
<PAGE>

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

                                   LANDLORD

                                   Spieker Properties, L.P.,
                                   a California limited partnership

                                   By:  Spieker Properties, Inc.,
                                        a Maryland corporation,
                                        its general partner

                                        By:  /s/ Joseph D. Russell, Jr.
                                             -----------------------------------
                                             Joseph D. Russell, Jr.
                                             Its: Regional Senior Vice President

                                   Date: August 13, 1998

                                   TENANT

                                   Logic Vision, Inc.
                                   a California corporation

                                   By:  /s/ Timothy Conley
                                        ----------------------------------------
                                        Tim Conley
                                        Its: Vice President, Finance & CFO

                                   Date: August 13, 1998

                                       20
<PAGE>

ADDENDA ATTACHED TO AND MADE A PART OF THAT CERTAIN LEASE AGREEMENT DATED AUGUST
13, 1998 BY AND BETWEEN SPIEKER PROPERTIES, L.P., A CALIFORNIA LIMITED
PARTNERSHIP, AS LANDLORD, AND LOGIC VISION, INC., A CALIFORNIA CORPORATION, AS
TENANT, FOR APPROXIMATELY 17,690 RENTABLE SQUARE FEET OF SPACE LOCATED AT 101
METRO DRIVE, SUITE #300, SAN JOSE, CALIFORNIA.

Addenda 1 - Paragraph 6 - Rent

Rental for the term of the lease shall be as follows:

Months 01 - 09    October 1, 1998 - June 30, 1999    $31,134.00 Net per month
Months 10 - 18    July 1, 1999 - March 31, 2000      $32,903.00 Net per month

   In addition to the net rental above, Tenant shall be responsible for its pro-
rata share of direct operating expenses and taxes which are estimated a year in
advance and collected on a monthly basis. Any increases or decreases necessary
will be made at the end of the operating year. Direct operating expenses through
December 31, 1998 are estimated to be $13,091.00 per month. In no event shall
the 1998 operating expenses exceed $14,007.00 per month. For each consecutive
operating expense year following 1998, in no event shall any increase in
operating expenses exceed 10% over the previous operating year.

Addenda 2 - Confidentiality

   Landlord and Tenant agree that the terms of this Lease Agreement shall be
confidential in nature, and will not be shared with other tenants or members of
the real estate community. In addition, Tenant understands that the terms of
this Lease Agreement are a direct reflection of an alliance between Tenant and
Landlord, where Landlord will be anticipating the opportunity to participate in
Tenant's future growth needs.

                                       21<PAGE>

                                                                    Exhibit 10.6

                              EXTENSION AGREEMENT

EXTENSION AGREEMENT dated January 17, 2000 to be attached to and form a part of
the lease (which together with any amendments, modifications and extensions
thereof is hereinafter called the "Lease'), dated August 13, 1998 between
Spieker Properties, L.P., as Landlord, and Logic Vision, Inc., as Tenant,
covering the premises known as 101 Metro Drive, Suite #300, in San Jose,
California.

Landlord and Tenant hereby agree that the term of the Lease is hereby renewed
and extended for an additional term of five (5) years to commence on the first
day of April, 2000, and to end on the 31st day of March, 2005, on condition that
Landlord and Tenant comply with all the provisions of the covenants and
agreements contained in the Lease, except:

          1)   Rental:                 Base Rent for the premises shall be:

               4/l/2000 - 3/31/2001    $41,040.00 per month plus operating
                                       expenses per Paragraph 7 of the Lease.
                                       Operating expenses through December 31,
                                       2000 are estimated to be $13,798.00 per
                                       month. Direct operating expenses are
                                       estimated a year in advance and collected
                                       on a monthly basis. Any adjustments
                                       necessary (up or down) will be made at
                                       the end of the operating year.

               4/l/2001 - 3/31/2002    $43,093.00 per month plus operating
                                       expenses per Paragraph 7 of the Lease.

               4/l/2002 - 3/31/2003    $45,247.00 per month plus operating
                                       expenses per Paragraph 7 of the Lease.

               4/l/2003 - 3/31/2004    $47,510.00 per month plus operating
                                       expenses per Paragraph 7 of the Lease.

               4/1/2004 - 3/31/2005    $49,885.00 per month plus operating
                                       expenses per Paragraph 7 of the Lease.

          2)   Term and Possession:    Tenant accepts the premises in "as is"
                                       condition.

          3)   Renewal Tenant          Landlord will provide a one-time Tenant
               Improvements:           Improvement Allowance of $141,520.00,
                                       which will be made available to Tenant
                                       between January 1, 2002 and June 30,
                                       2002. Landlord and Tenant shall
                                       coordinate to cause the Renewal Tenant
                                       Improvements to be completed, pursuant to
                                       the terms of Exhibit A attached hereto
                                       and made a part hereof. If Tenant
                                       performs mutually agreed upon Renewal
                                       Tenant Improvements between April 1, 2000
                                       and December 31, 2001, Landlord will
                                       reimburse Tenant for the actual cost of
                                       the Improvements, up to the amount of the
                                       Tenant Improvement Allowance stated above
                                       on January 1, 2002 upon receipt of paid
                                       Renewal Tenant Improvement invoices.
                                       Notwithstanding the provisions of Exhibit
                                       A, attached hereto and made a part
                                       hereof, after June 30, 2002, the Renewal
                                       Tenant Improvements will no longer be
                                       completed at Landlord's cost and expense.

          4)   Security Deposit:       Tenant's existing Security Deposit of
                                       $46,000.00 will increase effective April
                                       1, 2000 by $145,052.00 for a total
                                       Security Deposit of $191,052.00.
<PAGE>

                    5)  Notices:      Tenant or Landlord may send any notice as
                                      required by the Lease via Federal Express
                                      or similar overnight courier service in
                                      lieu of sending notice via United States
                                      certified or registered mail.

                  IN WITNESS WHEREOF, the parties hereto have executed this
                  Extension Agreement as of this ________ day of January, 2000.

                  LANDLORD:

                  SPIEKER PROPERTIES, L.P.,
                  California limited partnership

                    By: Spieker Properties, Inc.,
                    a Maryland corporation

                       By:  /s/ John W. Petersen
                            ---------------------------
                             John W. Petersen
                       Its:  Vice President
                            ---------------------------

                  TENANT:

                  LOGIC VISION, INC.,
                  a California corporation

                  By:  /s/ John H. Barnet
                       ---------------------------------
                        John Barnet
                  Its:  Vice President, Finance & CFO
                       --------------------------------

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