Document:

<PAGE>

                          MODIFIED FULL SERVICE LEASE

         THIS LEASE ("Lease") dated for references purposes only is made between
PS BUSINESS PARKS , L.P., a California limited ,Partnership ("Landlord"), and
Fluid Audio Network. Inc,. a Delaware Commotion ("Tenant"), as of March 3, 2005
(the "date of this Lease").

                            BASIC LEASE INFORMATION

PROJECT:    CULVER CITY - 5751-5859 UPLANDER WAY/ 5800-5860 HANNUM AVENUE,
            CULVER CITY, CA 90230

BUILDING:   Culver City - 5813A Uplander Way., Culver City, CA 90230

PREMISE 5813A DESCRIPTION OF PREMISES: (the Premises is on Exhibit A-1) In
addition to Tenant's rights to use and occupy the Premises as hereinafter
specified, the "Building" is depicted on Exhibit A-2" the "Project" or
"Property" is depicted on Exhibit "A-3" and is commonly referred to as Culver
City and contains approximately 146.402 rentable square feet.

RENTABLE AREA OF PREMISES: approximately  2.632  square feet

PERMITTED USE:  OFFICE USE FORA SOFTWARE DEVELOPMENT COMPANY. AND NO OTHER USE.

SCHEDULED TERM COMMENCEMENT DATE:  April 1. 2005

SCHEDULED INITIAL TERM: 36 months SCHEDULED TERM EXPIRATION DATE: March 31, 2008

BASE RENT:
         (a) Initial Annual Base Rent $ 47,376.00
         (b) Initial Monthly Installment of Base Rent $3,948.00
         (c) Subject to increase pursuant to Paragraph 3.1(b) as follows:

             April 1, 21006-March 31, 2007  $4.079,60
             April 1, 21007- March 31, 2008  $4,211 20

SECURITY DEPOSIT: $  11.844.00

EXPENSE BASE YEAR: TENANT'S EXPENSE BASE YEAR IS:  2005

TOTAL INITIAL MONTHLY PAYMENT: $  3.948.00

TENANT'S PROPORTIONATE SHARE OF BUILDING:  .0412  OF PROJECT:  .0179

PARKING DENSITY:   3 spaces per 1,000 rentable square feet of the Premises
                   unreserved in common with other tenants.

BROKERS: Britt Shuford t Andy McMullen. Lenord & Ohren and Matthew Brainard,
         Bailes &Associates

TENANT'S SIC CODE:  8900

TENANT CONTACT: Name:  Justin F Beckett
                Telephone Number:  (213) 841-9622
                FAX:_____________________________

ADDRESSES FOR NOTICES : To: Tenant               To: Landlord
                        5813A Uplander Way       2599E 28th Street Suite 202/204
                        Culver City. CA 90230    Signal Hill. CA 90755
                        Attn:  Justin F Beckett  Attn:  Sandra Witcher
                        FAX:_______________      FAX:  562-421-6101/562-492-9991

TENANT'S BILLING ADDRESS (If different from Notice Address]:____________________

LANDLORD'S REMTITANCE ADDRESS: PS Business Parks LP. Dent 42520(.)05,
                               Los Angeles, CA 90084-2520

GUARANTOR:  N/A

         IN WITNESS WHEREOF, the parties hereto have executed this Lease,
consisting of the foregoing Basic Lease Information, the following Standard
Lease Provisions consisting of Paragraphs 1 through 31 (the "Standard Lease
Provisions") and Exhibits "A", "A-1", "A-2", "A-3", "B", "C", "D", "D-I", and
Provision #29 - No Smoking all of which are incorporated herein by this
reference (collectively, this "Lease"). In the event of any conflict between the
provisions of the Basic Lease Information and the provisions of the Standard
Lease Provisions, the Standard Lease Provisions shall control.

                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------
                                       1
<PAGE>

          THIS LEASE, WHETHER OR NOT EXECUTED BY TENANT, IS SUBJECT TO
ACCEPTANCE BY LANDLORD, - ACTING BY ITSELF OR BY ITS AGENT BY THE SIGNATURE ON
THIS LEASE OF ITS SENIOR VICE PRESIDENT, C.., VICE PRESIDENT, REGIONAL MANAGER
OR DIRECTOR OF LEASING.

"Landlord"                              "Tenant"

PS BUSINESS PARKS, L.P.,                Fluid Audio Network, Inc.,
a California limited partnership,       a Delaware Corporation

                                        By: /s/ Justin F. Beckett
                                            -----------------------------------
By: /s/ Andrew Mircovich                    Justin F. Beckett     3/25/05
    ------------------------------          Its: CEO
    Andrew Mircovich                        Date:
    Its: Regional Manager                   By: /s/ Robert Buch
    Date: 9-8-05                            Its: COO
                                            Date: 3-28-05

Landlord Fed. ID #: 95-4609260

1. Automatic Payments: Unless Landlord otherwise directs in writing, all
payments of Base Rent and the monthly estimated payments of Tenant's
Proportionate Share of Operating Expenses shall may be made by automatic debit
electronic payment. Tenant shall execute such documents, provide such
information, and follow such procedures as are requested by Landlord from time
to time to facilitate such payments. If, by reason of insufficient funds or
other reason, any such payment is not fully made and received, such event shall
be deemed a failure of Tenant to make the required payment. Payment shall be
deemed made by Tenant on the date funds are actually received by Landlord;
provided, if tenant is. then in default, Landlord shall have the right to return
all or a part of any payment received within ten (10) business days of receipt,
in which event the returned amount shall be deemed to have not been paid by
Tenant or received by Landlord. Receipt of any funds pursuant to this Paragraph
shall not constitute a waiver by Landlord of any Default by Tenant whether or
not such Default Is known to Landlord.

2. Lease of Premises

         2.01 Landlord leases to Tenant, and Tenant leases from Landlord, the
Premises, upon the terms of this Lease. The Premises are leased "AS IS' except
only for the improvements, if any, which are to be constructed by Landlord
pursuant to Exhibit "B." Any such improvements to be constructed by Landlord
pursuant to Exhibit "B" are herein referred to as "Landlord's Work". Tenant
acknowledges that neither Landlord nor any agent of Landlord has made any
representation or warranty regarding the Premises. The square footages set forth
in this Lease are approximate and agreed. Use of the terms "rentable" and
"usable" is for convenience only and represents Landlord's interpretation
of such terms. Landlord will deliver the Premises to Tenant with existing
plumbing, electrical, fire sprinkler, lighting, air conditioning, heating and
mechanical systems located in the Premises, if any, in good working condition
and in compliance with all applicable governmental codes and regulations.

         2.02 Landlord's Work, if any, shall be installed by Landlord in
compliance with all then applicable codes. Tenant, at its sole expense, agrees
to comply with ail laws, codes, ordinances, and other legal requirements
(including covenants and restrictions) applicable to the Premises (herein
"Laws"). Tenant agrees to cause the Premises to comply with all Laws, including
by making any changes to the Premises necessitated by any Tenant activity,
including but not limited to changes required by (a) any Tenant Improvements or
Tenant Alterations (as defined below), or (b) any use of the Premises or
Property by Tenant; provided, Landlord reserves the right to accomplish such
changes itself at the expense of Tenant. If any activity of Tenant necessitates
changes to the Project other than the Premises, then Landlord shall elect that
Landlord accomplish the same at the expense of Tenant or that Tenant accomplish
the same at its own expense.

         2.03 If for any reason Landlord cannot deliver possession of the
Premises on the estimated Commencement Date of the Lease Term, Landlord will not
be subject to any liability nor will the validity of this Lease be affected in
any manner. Rather, the Commencement Date shall be delayed until delivery of
possession in which event the expiration date of the Lease Term shall be
extended to include the same number of full calendar months as set forth in
Basic Lease Information above (plus any partial first month); provided, in the
event delivery of possession is delayed by any act, omission or request of
Tenant, then the Premises shall be deemed to have been delivered (and the
Commencement Date shall occur) on the earlier of the actual date of delivery or
the date delivery would have occurred absent the number of days of such delay
attributable to Tenant and the term shall then be for such number of full
calendar months (plus any partial first month). If for any reason possession of
the Premises is not delivered within ninety, (90) days of scheduled Commencement
Date set forth in Basic Lease Information above, Landlord or Tenant may
terminate this Lease by written notice given after such ninety (90) day period
but prior to delivery of possession; provided, such ninety (90) day period shall
be extended by (a) the number of days of delays attributable to Tenant
(including but not limited to delays In approvals of plans or cost estimates,
delays related to changes in plans requested by Tenant whether or not approved
by Landlord, delays caused by Tenant installing any "Tenant Improvements,"
delays caused by other early entry or early occupancy by Tenant, and/or Other
delays attributable to Tenant), plus (b) the number of days of delays caused by
events beyond the reasonable control of Landlord (including but not limited to
fire, earthquake, other casualty, inclement weather, acts of God, shortages of
labor or material, lead times on ordered items, strike, acts or omissions of
government, and/or delays in governmental permits, inspections or approvals).
Any such termination shall be without liability of Landlord to Tenant. Any such
termination by Tenant shall be Tenant's sole remedy for delay in delivery of
possession.
                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       2
<PAGE>

         7.02 Landlord shall be responsible for providing all trash receptacles
and pickup for the Premises. In the event of any excessive trash in or outside
the Premises, as determined by Landlord in its sole discretion, Landlord will
have the right to remove such excess trash, charge all costs and expenses
attributable to its removal to Tenant. Tenant will not cause, maintain or permit
any outside storage on or about the Property without prior written consent by
Landlord, which consent shall not be unreasonably withheld, conditioned or
delayed. In the event of any unauthorized outside storage by Tenant, Landlord
will have the right, without notice, in addition to such other rights and
remedies it may have, to remove any such storage at the expense of Tenant.

8. Parking

         All parking will comply with the terms and conditions of this Lease and
the parking rules and regulations included in Exhibit "D." Tenant will have a
non-exclusive privilege to use those parking spaces designated by Landlord for
public parking. Vehicles parked in public parking areas will be no larger than
full-sized passenger automobiles or standard pickup trucks. Landlord reserves
the right, without notice to Tenant, to tow away at Tenant's sole cost and
expense any vehicles parked in any parking area for any continuous period of 24
hours or more, or earlier. if Landlord, in its sole discretion, determines such
parking to be a hazard or inconvenience to other Tenants or Landlord, or
violates any rules or regulations or posted notices related to parking. Landlord
shall not be responsible for enforcing Tenant's parking rights against third
parties. From time to time, Landlord reserves the right upon written notice to
Tenant, to change the location, the availability and nature of parking spaces,
establish reasonable time limits on parking, and, on an equitable basis, to
assign specific spaces with or without charge to Tenant as Additional Rent. The
parking privileges granted to Tenant are personal to Tenant; Tenant shall not
assign or sublet parking privileges.

9. Utilities and Services

         9.01 Subject to the other provisions of this Lease, the following
services are provided.

                  A.       Electricity, water, and elevator service (If
                           elevators presently serve the Premises) are provided.

                  B.       Heating and air conditioning are provided 8:00 a.m.
                           to 6:00 p.m, weekdays and 9:00 a.m. to 1:00 p.m.
                           Saturdays, except holidays. If Tenant desires such
                           service during other hours, Tenant must prearrange
                           the same with Landlord and pay an additional charge
                           not to exceed the actual cost for such service.

                  C.       Five days per week janitorial service, periodic
                           window cleaning, supplies for Building operation, and
                           other customary services.

         If Tenant uses any utility or service In excess of normal usage levels,
as determined by Landlord In its sole discretion, Landlord shall have the right
to charge Tenant for such excess use and to charge Tenant the cost to separately
meter such use.

         9.02 Landlord will not be liable or deemed in Landlord Default, nor
will there be any abatement of rent or right to terminate this Lease, for (a)
any interruption or reduction of utilities, utility services or
telecommunication services, (b) any telecommunications or other company (whether
selected by Landlord or Tenant) failing to provide such utilities or services or
providing the same defectively, and/or (c) any utility interruption in the
nature of blackouts, brownouts, or rolling interruptions. Tenant agrees to
comply with any energy conservation programs required by law or implemented by
Landlord. Tenant acknowledges that utility and service costs and availability
may fluctuate significantly, due to power shortages or other events and factors,
and Tenant accepts the risks of such fluctuations. Landlord reserves the right,
in its sole discretion, to designate, at any time, the utility and service
providers for Tenant's use within the Property; no such designation shall impose
liability upon Landlord.

         9.03 Tenant has satisfied itself as to the adequacy of any Landlord
owned utility equipment and the quantity of telephone lines and other service
connections to the Building available for Tenant's use.

10. Tenant Improvements; Tenant Alterations and Mechanic's Liens

         10.01 Any Improvements to be constructed In the Premises by Tenant
prior to Tenant initially commencing use of the Premises are referred to
throughout this Lease as 'Tenant Improvements. All Tenant Improvements will be
performed in accordance with the terms and conditions outlined in Exhibit "B"
and also in accordance with the provisions t forth in this Paragraph 10
regarding Tenant Alterations.

         10.02 The following provisions apply to "Tenant Alterations' which
means and includes (a) any alterations or improvements to the Premises
undertaken by Tenant (other than nonstructural installation of equipment or
trade fixtures), (b) any utility Installations at the Premises undertaken by
Tenant, and (c) any repair, restoration, replacement, or maintenance work at the
Premises undertaken by Tenant whether or not Tenant is required to undertake
such work pursuant to this Lease. Tenant shall not commence any Tenant
Alteration without first obtaining the prior written consent of Landlord in each
instance which consent shall not be unreasonably withheld, conditioned or
delayed in Landlord's reasonable discretion. Tenant shall submit such
information regarding the intended Tenant Alteration as Landlord may reasonably
require, and no request for consent shall be deemed complete until such
information is delivered. The following provisions apply to all Tenant
Alterations.

                  (a)      Tenant shall hire a licensed general contractor who,
                           in turn, shall hire only licensed subcontractors. All
                           work shall be conducted expeditiously and be
                           completed within a reasonable time.

                  (b)      Tenant shall obtain all required permits and deliver
                           a copy of the same to Landlord. Tenant shall install
                           all Tenant Alterations in strict compliance with all
                           permits, any plans approved by Landlord, and all
                           conditions to Landlord's approval.
                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       3
<PAGE>

                  (c)      Unless Landlord elects otherwise in its applicable
                           prior written consent, Tenant shall remove each
                           Tenant Alteration at the end of this Lease or Tenants
                           right of possession and restore the Premises to its
                           prior condition, all at Tenant's expense.

                  (d)      Tenant shall deliver to Landlord, within ten (10)
                           days following installation of each Tenant
                           Alteration, (w) accurate, reproducible as-built
                           plans, (x) proof of final Inspection and approval by
                           all governmental authorities, (y) complete lien
                           waivers for all costs of the Tenant Alteration, and
                           (z) a copy of a recorded notice of completion.

         10.03 Landlord shall have the right to inspect all Tenant Alterations.
Tenant shall pay to Landlord a fee equal to 3% of total project cost to
compensate Landlord for review of plans, inspection of work, and other
activities regarding any Tenant Alterations. Approval of any plans or inspection
of any work is for the sole benefit of Landlord and is not a representation by
Landlord that any work is suitable or complies with applicable requirements.
Landlord's approval of any Tenant Improvements and Tenant Alterations and/or
Landlord's approval or designation of any general contractor, subcontractor,
supplier or other project participant will not create any liability whatsoever
on the part of Landlord.

         10.04 Tenant shall pay all costs of Tenant Alterations as and when due.
Tenant shall not allow any lien to be filed. Tenant shall obtain advance lien
waivers and third-party beneficiary agreements from all contractors,
subcontractors, suppliers, and others providing equipment, labor, materials, or
services, in the form reasonably required by Landlord. If any lien is filed,
then, without waiver of any other right or remedy, Landlord shall have the right
to cause such lien to be removed by any means allowed by law, including bond,
deposit, and/or payment of the underlying claim. All sums expended by Landlord
in connection with such lien and/or its removal, including attorney fees, shall
be immediately due from Tenant to Landlord, together with interest at the rate
of 10%.

         10.05 All Tenant Improvements and Tenant Alterations are part of the
realty and belong to Landlord. Tenant shall be solely responsible to insure all
Tenant Alterations and to restore the same following any casualty. As a
condition of Landlord consenting to any Tenant Improvements or Tenant
Alterations, Landlord reserves the right, at any time: (i) to require Tenant to
pay an amount determined by Landlord to cover the costs of demolishing part or
all of any Tenant Improvements or Tenant Alterations and/or the cost of
returning the Premises to their condition before any such work commenced (normal
wear and tear excepted); and/or (ii) to elect to make Tenant the owner of all or
any specified part of the Tenant Improvements or Tenant Alterations and/or to
require Tenant, upon termination of this Lease, to remove none, all, or part of
the same at its sole cost and expense. The provisions of this Paragraph shall
survive the termination of this Lease.

         10.06 Notwithstanding any other provision of this Lease, Tenant shall
remove, at, or prior to the expiration or termination of this Lease, at its
expense, all wiring and cabling installed at the Premises which shall have been
installed by Tenant or which Landlord shall have installed pursuant to this
Lease or at the request of Tenant. Such wiring and cabling shall include but not
be limited to (a) wiring and cabling above the ceiling panels, behind or within
walls, and under or within floors, (b) wiring and cabling for voice, data,
security or other purposes, (c) wiring and cabling installed pursuant this
Paragraph 10, pursuant to Exhibit B, or otherwise, and (d) all related
Installations, equipment and items whatsoever.

11. Repairs

         11.01 Subject to Paragraph 11.02 below, Tenant shall, at all times and
at its sole cost and expense, keep ail parts of the Premises (including Tenant
Improvements and Tenant Alterations) in good order, and in a neat, clean and
safe condition. If Tenant does not perform required maintenance, Landlord shall
have the right, without waiver of Default nor of any other right or remedy, to
perform such obligations of Tenant on Tenant's behalf, and Tenant will reimburse
Landlord for any costs incurred immediately upon demand.

         11.02 Landlord shall perform all repairs required in the Premises. All
costs incurred by Landlord in making such repairs shall be Operating Expenses;
provided, Tenant shall reimburse Landlord for 100% of any such costs incurred by
Landlord (a) due to the act or omission of Tenant (including but not limited to
clogging of plumbing, stain removal, and repair of damage to the Premises), or
(b) for repairs or maintenance in excess of or other than routine Building
standard repairs and maintenance as determined by Landlord In its sole
'discretion (for example, maintenance of any above standard dedicated HVAC unit
repair of built-in appliances, or periodic replacing of above standard light
bulbs). Tenant expressly waives the benefit of any statute or other legal right
now or hereafter in effect which would otherwise afford Tenant the right to make
repairs at Landlord's expense, whether by deduction of rent or otherwise, or to
terminate this Lease because of Landlord's failure to keep the Property, or any
part thereof in good order, condition and repair.

12. Insurance

         12.01 Tenant will not do or permit anything to be done within or about
the Premises or the Property which will increase the existing rate of any
insurance on any portion of the Property or cause the cancellation of any
insurance policy covering any portion of the Property. Tenant will, at its sole
cost and expense, comply with any requirements of any insurer of Landlord.

         12.02 Tenant agrees to maintain policies of insurance described in this
Paragraph. Landlord reserves the right, from time to time, to require additional
Coverages (including, for example, flood Insurance, if the Premises is located
in a flood hazard zone), and/or to require higher amounts of coverages. No
insurance policy of Tenant shall have a deductible greater than $25,000.

     (a)  Workers' Compensation            Statutory Requirements
          Employer's Liability             Not less than $1,000,000.00

     (b)  Commercial General Liability     Not less than $1,000,000.00
                                           combined single limit per occurrence
                                           Not less than $2,000,000.00 aggregate
                                           this location
                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       4
<PAGE>

The Commercial General Liability policies shall insure on an occurrence and not
a claims-made basis and cover the Premises, Project and Property. Such policies
shall cover liability arising from premises, operations, independent
contractors, products-completed operations, personal injury, advertising injury
and liability assumed under an insured contract (specifically insuring
performance of the indemnity obligations-of Tenant hereunder); such policies
shall not be .excess, nor exclude pollution or employment-related practices.

     (c)  Automobile Liability           Not less than $300,000.00 combined
                                         single limit including property
                                         damage

     (d)  "Causes of Loss -- Special Form" coverage including endorsements for
          flood coverage, earthquake sprinkler leak coverage, and such
          endorsements and supplemental coverages as Landlord may reasonably
          require from lime to time. This insurance coverage must be upon the
          Premises and all property owned by Tenant, for which Tenant is legally
          liable, which Tenant is obligated to repair and restore hereunder,
          and/or which was installed at the expense of or at the request of
          Tenant, including but not limited to, any Tenant Improvements, Tenant
          Alterations, furniture, fixtures, equipment, installations and any
          other personal property of Tenant, in an amount not less than their
          full replacement value. All proceeds of this insurance shall only be
          used for the repair and replacement of property so insured; Tenant
          hereby assigns to Landlord all Its rights to receive any proceeds of
          such insurance policies attributable to any Tenant Improvements and
          Tenant Alterations if this Lease is terminated due to damage or
          destruction.

     (e)  Garage Liability Insurance: In the event Tenant uses any part of the
          Premises or Property to store or to perform work on vehicles, Tenant
          shall maintain garage liability insurance in such form and amount as
          Landlord may reasonably require from time to time.

The limits of the insurance coverage required under this Lease will not limit
the liability of Tenant nor relieve Tenant of any obligation hereunder. All
insurance to be carried by Tenant will be primary to, and non-contributory with,
Landlord's insurance, and contain cross-liability endorsements and Will in
addition to the above coverage specifically insure Landlord against any damage
or loss that may result either directly or indirectly from any default of Tenant
under Paragraph 14 (Hazardous Materials) herein. Any similar insurance carried
by Landlord will be considered excess Insurance only.

         12.03 Tenant will name Landlord (and, at Landlord's request, any
mortgagee) and Landlord's agents as additional insureds on all insurance
policies required of Tenant under this Lease, other than Workers Compensation,
Employers Liability, Automobile liability, and Fire and Extended coverage
(except on Tenant. Improvements or Tenant Alterations to the Premises for which
Landlord shall be named an additional insured) insuring Landlord and such other
additional insureds regardless of any defenses the insurer may have against
Tenant and regardless of whether the subject claim is also made against Tenant
All insurance policies carried by Tenant will permit the insured, prior to, any
loss, to agree with a third party to waive any claim it might have against said
third party without invalidating the coverage under the insurance policy, and
will release Landlord (and such affiliates and subsidiaries, and all officers,
partners, directors, and employees of Landlord and/or of any sub subsidiary or
affiliate), from any claims ms for damage any person, to the Property of which
the Premises are a part, any existing Improvements, Tenant Improvements and
Tenant Alterations to the Premises, and to any furniture, fixtures, equipment,
installations and any other personal property of Tenant caused by or resulting
from, risks which are to be insured against by Tenant under this Lease,
regardless of cause.

         12.04 Tenant will deliver to Landlord (and, at Landlord's request, to
any mortgagee or to any other third party), simultaneously with its execution of
this Lease and thereafter at least thirty (30) days prior to expiration,
cancellation or change in insurance, certificates of insurance evidencing, at a
minimum, the coverage specified in Paragraph 12.02. All such certificates shall
be in form and substance satisfactory to Landlord, shall affirmatively
demonstrate all coverages and requirements set forth in this Lease, shall
contain no disclaimers of coverage, and shall include a firm and unconditional
obligation to give to Landlord at least 10 days' prior written notice prior to
cancellation or change in any coverage. All Insurance required hereunder will be
with companies licensed and authorized to do business in the state in which the
Property is located and holding a "General Policyholders Rating* of "A VIII" or
better, as set forth in the most current Best's Insurance Guide.

         12.05 Landlord will secure and maintain insurance coverage in such
limits as Landlord may deem reasonable in its sole judgment to afford Landlord
adequate protection. The premiums for such coverage are "Insurance Premiums'
under Paragraph 4.03C above. Any proceeds of such insurance shall be the sole
property of Landlord to use as Landlord determines. Landlord makes no
representation that the insurance policies and coverage amounts specified to be
carried by Tenant or Landlord under the terms of this Lease are adequate to
protect Tenant. Tenant will provide, at its own expense, all insurance as Tenant
deems adequate to protect its interests.

         12.06 Without limiting the effect of any other waiver of or limitation
on the liability of Landlord set forth herein, and except as provided in
Paragraph 13 and/or Paragraph 14 below, neither Landlord nor Tenant shall be
liable to the other party or to any insurance company (by way of subrogation or
otherwise) for any loss of or damage to tangible property due to casualty
regardless of negligence. For purposes of this Paragraph 12.08, "Landlord" shall
include Landlord's affiliates and subsidiaries; and all officers, partners,
directors, and employees of Landlord or of any such subsidiary or affiliate.

13. Waiver of Claims and Indemnification

Tenant waives all claims against Landlord for any damage to any property in or
about the Property, for any loss of business or income, and for injury to or
death of any persons, regardless of the cause of any such loss or event
(including negligence) or time of occurrence. Tenant will indemnify, protect,
defend and hold harmless Landlord from and against all claims, losses, damages,
causes of action, costs, expenses and liabilities, including legal fees, arising

                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       5
<PAGE>

out of Tenants occupancy of the Premises or presence on the Property, the
conduct of Tenant's business, any Default by Tenant, and/or any act, omission or
neglect of Tenant, its agents, contractors, employees, suppliers, licensees or
invitees. For purposes of this Paragraph 13, "Landlord" shall include also
Landlord's affiliates arid subsidiaries, and ail officers, partners, directors,
and employees of Landlord or of any such subsidiary or affiliate.

14.  Hazardous Materials

         14.01 "Hazardous Materials" will mean any substance commonly referred
to, or defined in any Law, as a hazardous material or hazardous substance (or
other similar term), including but not be limited to, chemicals, solvents,
petroleum products, flammable materials, explosives, asbestos, urea
formaldehyde, PCB's, chlorofluorocarbons, freon or radioactive materials. Tenant
will not cause or permit any Hazardous Materials to be brought upon, kept,
stored, discharged, released or used in, under or about any portion of the
Property by Tenant, or its agents without the prior written consent of Landlord,
which consent may be withheld or conditioned in Landlord's sole discretion;
provided, Tenant may bring into the Premises small amounts of Hazardous
Materials (such as cleaning products and copy toner) which are readily available
to Tenant by unregulated retail purchase if the same are necessary In Tenant's
normal business operations. if Tenant brings any Hazardous Materials to the
Premises or Property, with or without the prior written consent of Landlord
(without waiver of the requirement of prior written consent), Tenant shall: (1)
use such Hazardous Material only as is reasonably necessary to Tenants business,
in small, properly labeled quantities; (2) handle, use, keep, store, and dispose
of such Hazardous Material using the highest accepted industry standards and in
compliance with all applicable Laws; (3) maintain at all times with Landlord a,
copy of the most current MSDS sheet for each such Hazardous Material; and (4)
comply with such other rules and requirements Landlord may from time to time
impose. Upon expiration or earlier termination of this Lease, Tenant will, at
Tenant's sole cost and expense, cause all Hazardous Materials brought to the
Premises or the Property by Tenant, its agents, contractors, employees,
suppliers, licensees or invitees, to be removed from the Property in compliance
with any and all applicable Laws. Landlords represents to Landlord's actual
knowledge, there are currently no Hazardous Materials at or under the Premises,
the Building or the Project in violation of applicable Laws.

         14.02 If Tenant or its agents violate the provisions of this Paragraph
14, or performs any act or omission which contaminates or expands the scope of
contamination of the Premises, the Property, or any part thereof, the underlying
groundwater, or any property adjacent to the Property, then Tenant will
promptly, at Tenants expense, take all investigatory and/or remedial action
(collectively called 'Remediation") that is necessary to fully clean up, remove
and dispose of such Hazardous Materials and any contamination so caused and
shall do so in compliance with any applicable Laws. Tenant will also repair any
damage to the Premises and any other affected portion(s) of the Property caused
by such contamination and Remediation.

         14.03 Tenant shall immediately provide to Landlord written notice of
any investigation or claim arising out of the use by Tenant of Hazardous
Materials at the Property or the violation of any provision of this Paragraph 14
and shall keep Landlord fully advised regarding the same. Tenant shill provide
to Landlord all reports regarding the use of Hazardous Materials by Tenant at
the Property and any Incidents regarding the same, regardless of whether any
such documentation is considered by Tenant to be confidential. Landlord retains
the right to participate in any legal actions affecting the Property involving
Hazardous Materials.

         14.04 Tenant will indemnify, protect, defend and forever hold Landlord,
its lenders and ground Landlord, if any, and the Premises, the Property, or any
portion thereof, harmless from any and all damages, causes of action, fines,
losses, liabilities, judgments, penalties, claims, and other costs arising out
of any failure of Tenant to observe any covenants of this Paragraph 14 of this
Lease. All provisions of this Paragraph 14 shall survive the expiration of this
Lease and any termination of this Lease or of Tenants right of possession. For
purposes of this Paragraph 14.04, "Landlord" shall include also Landlord's
affiliates and subsidiaries, and all officers, partners, directors, and
employees of Landlord or of any such subsidiary or affiliate.

15. Landlord's Access

         Landlord, its agents, contractors, consultants, servants and employees,
will have the right to enter the Premises at any time in the case of an
emergency, and otherwise at reasonable times, upon 24-hour written or verbal
notice to examine the Premises, perform-work in the Premises, show the Premises
during the last six months of the Term, exercise any right or remedy, or for any
other purpose. For each of these purposes, Landlord will at all times have and
retain any necessary keys. Tenant will not alter any lock or install new or
additional locks or bolts on any door in or about the Premises without obtaining
Landlord's prior written approval and will, in each event, furnish Landlord with
a new key. Access by Landlord will not give Tenant the right to terminate this
Lease, and will be without abatement of rent or liability on the part of
Landlord.

16. Damage or Destruction

         16.01 If the Premises is damaged or destroyed by fire or other
casualty, Tenant will immediately give written notice to Landlord of the
casualty. Landlord will have the right to terminate this Lease following a
casualty if any of the following occur. (i) insurance proceeds actually paid to
Landlord and available for use are not sufficient to pay the full cost to fully
repair the damage; (ii) Landlord determines that the Premises or the Building
cannot be fully repaired within 180 days; (iii) the Premises are damaged or
destroyed within the last twelve (12) months of the Lease Term; (iv) Tenant is
In Default of this Lease at the time of the casualty, (v) Landlord would be
required under this Lease to abate or reduce Tenant's rent for a period in
excess of six (6) months if the repairs were undertaken; or (vi) the Project, or
the Building In which the Premises is located, is damaged such that the cost of
repair of the same would exceed 1079 of the replacement cost of the same. If
Landlord elects to terminate this Lease, Landlord will be entitled to retain all
applicable Tenant insurance proceeds excepting those attributable to Tenant's
furniture, fixtures, equipment, and any other personal property.

         16.02 if this Lease is not terminated pursuant to Paragraph 16.01,
Landlord will repair the Premises and this lease shall continue. The repair
obligation' of Landlord shall be limited to repair of the Premises excluding any
Tenant improvements, Tenant Alterations, and any personal property and trade
fixtures of Tenant. During the period of repair, rent will be abated or reduced
in proportion to the degree to which Tenant's use of the Premises is impaired,

                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       6
<PAGE>

as reasonably determined by Landlord, not to exceed the total amount of rent
loss insurance proceeds, directly attributable to Tenants Premises, Landlord has
received. However, rent will not be abated if Tenant or any of its agents is the
cause of the casualty.

17. Transfer (Assignment/Subletting)

         17.01 Tenant will not, voluntarily or by operation of law, assign,
sell, convey, sublet or otherwise transfer all or any part of Tenants right or
interest in this Lease, or allow any other person or entity to occupy or use all
or any part of the Premises (collectively called "Transfer") without first
obtaining the written consent of Landlord which may be withheld or conditioned
by Landlord in its sole reasonable discretion. Any Transfer without the prior
written consent of Landlord shall be void. Tenant shall have the right to
assign, sublet or otherwise transfer its interest in this Lease, with Landlord's
consent, to an Affiliate of Tenant. For purpose of this Article, an "Affiliate"
is a corporation or other entity into or which Tenant is merged or consolidated
or to which substantially all of Tenant's stock or assets are transferred or
which controls, is controlled by, or is under common control with, Tenant, if a
principle purpose of the merge or transfer is not the assignment of this Lease
and Tenant's successor had net worth not less than the net worth of Tenant on
the date of execution of this Lease. Tenant shall provide to Landlord all
information requested by Landlord concerning a Transfer, If Landlord has not
granted consent in writing to a Transfer within thirty (30) days of Tenant's
request hereunder and delivery of all such information, Landlord will be deemed
to have rejected Tenants request. In no event shall Tenant mortgage, encumber,
pledge or assign for security purposes all or any part of Its interest in this
Lease.

         17.02 In the event Landlord consents to a Transfer, the Transfer will
not be effective until Landlord receives a fully executed agreement regarding
the Transfer, in a form and of substance acceptable to Landlord, any documents
or Information required by such agreement (including any estoppel certificate
and any subordination agreement required by any lender of Landlord), an amount
equal to all attorneys fees and other expenses of Landlord incurred In
connection with the Transfer, and a Transfer fee in an amount not to exceed
$1,500. Tenant agrees to pay to Landlord an amount equal to all attorneys fees
and other expenses incurred by Landlord not to exceed $1,500 related to a
request for consent to Transfer regardless of whether such consent is granted
and regardless of whether the Transfer is consummated.

         17.03 Any consideration paid to Tenant for assignment of this Lease,
less any reasonable brokerage commission paid by Tenant with respect to such
assignment shall be immediately paid to Landlord. In the event of a sublease of
all or a portion of the Premises, all rents payable by the subtenant in excess
of rents payable hereunder (allocated on a per square foot basis in the event of
a partial sublease) shall be split 50/50 between Tenant and Landlord, excess
rental shall be calculated taking into account straight-line amortization,
without interest, of any reasonable brokerage commission paid by Tenant In
connection with the subject sublease transaction.

         17.04 Landlord may, within thirty (30) days after submission of
Tenant's written request for Landlord's consent proposed to be sublet as of the
date the proposed Transfer was to be effective. If Landlord terminates this
Lease as to only a Transfer, terminate this Lease (or, as to a partial
subletting, terminate this Lease as to the portion of the Premises only a
portion of the Premises, then (a) this Lease shall "cease as to such portion of
the Premises, (b) Tenant shall pay to Landlord all Base Rent and other amounts
accrued through the termination date relating to the portion of the Premises
covered by the proposed Transfer (allocated on an equitable basis determined by
Landlord), and (c) Tenant shall execute, upon request of Landlord, an amendment
hereto setting forth matters related to such partial termination. Landlord may
physically separate the recaptured portion of the Premises and lease such
portion of the Premises to the prospective transferee (or to any other person)
without liability to Tenant.

         17.05 Regardless of whether consent by Landlord is granted in
connection with any Transfer, no Transfer shall release Tenant from any
obligation or liability hereunder; Tenant shall remain primarily liable to pay
all rent and other sums due hereunder to Landlord and to perform all other
obligations hereunder. Similarly, no Transfer, with or without the consent of
Landlord, shall release any guarantor from its obligations under its guaranty.
Upon any assignment or sublease, any rights, options or opportunities granted to
Tenant hereunder to extend or renew the Lease Term, to shorten the Lease Term,
or to lease additional space shall be null and void.

18. Default

         Time is of the essence in the performance of all covenants of Tenant.
Tenant will be in Default if any of the following events occurs and remains
uncured beyond and applicable notice and cure period:

         18.01 Tenant fails to make, as and when due, any payment of Base Rent,
Additional Rent, or any other monetary payment required to be made by Tenant
herein and Tenant does not cure such failure within three (3) days after
Landlord gives written notice of such failure to Tenant provided, if Landlord
has given such a written notice with respect to two (2) payments due in any
calendar year, then the failure by Tenant to pay any other payment due in such
calendar year, on or before the date when first due, shall be a Default
hereunder without any written notice from Landlord and without any grace or cure
period.

         18.02 Landlord discovers that any representation or warranty made by
Tenant or any guarantor was materially false when made or that any financial
statement of Tenant or of any guarantor of this Lease given to Landlord was
materially false.

         18.03 Tenant makes any general arrangement or assignment for the
benefit of creditors, becomes a "debtor in bankruptcy proceeding, is unable to
pay its debts or obligations as they occur, or has an attachment, execution or
other seizure of substantially all of Its assets located at the Property or its
interest in this Lease.

         18.04 Tenant fails to observe, perform or comply with any of the
non-monetary terms, covenants, conditions, provisions or rules and regulations
applicable to Tenant under this Lease other than as specified above in this

                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       7
<PAGE>

Paragraph 18; provided, if such failure (i) is not intentional on the part of
Tenant, (ii) is not the type of failure as to which Landlord shall have
previously given Tenant written notice, (iii) does not constitute a default or
violation under any loan or other agreement to which Landlord is a party, and
(iv) is, in the sole opinion of Landlord, a curable failure, then such failure
shall not be a 'Default' unless Tenant does not cure such failure within ten
(10) days following written notice of ,such failure from Landlord.

         18.05 Any guarantor becomes insolvent, becomes a debtor in a bankruptcy
proceeding, fails to perform any obligation under its guaranty, or attempts to
revoke its guaranty.

19. Remedies of Landlord

         19.01 If Tenant fails to perform any duty or obligation of Tenant under
this Lease, Landlord may at its option, without waiver of Default nor any other
right or remedy, perform any such duty or obligation on Tenant's behalf. The
costs and expenses of any such performance by Landlord will be immediately due
and payable by Tenant upon receipt from Landlord of the reimbursement amount
required.

         19.02 Upon a Default, with or without notice or demand, and without
limiting any other of Landlord's rights or remedies, Landlord may:

               (a)  Terminate this Lease and/or terminate Tenant's right to
                    possession of the Premises. Upon any such termination,
                    Tenant will immediately surrender possession of the Premises
                    to Landlord. On termination of this Lease or Tenant's right
                    of possession, Landlord will be entitled to recover from
                    Tenant (I) the worth at the time of the award of the unpaid
                    rent 'which had been earned at the time of the termination;.
                    (ii) the worth at the time of the award of the amount by
                    which the unpaid rents which would have been earned after
                    termination until the time of award exceeds the amount of
                    such rental loss that Tenant proves could have been avoided;
                    (lie the worth at the time of the award of the amount by
                    which the unpaid rents for the balance of the Lease Term
                    after the time of award exceeds the amount of such rental
                    loss for such period that Tenant proves could be reasonably
                    avoided; and (iv) the worth at the time of the award of any
                    other amount necessary to compensate Landlord for all the
                    damage proximately caused by Tenant's failure to perform its
                    obligations under this Lease, including specifically the
                    unamortized portion of all brokerage commissions paid in
                    connection with this Lease and all costs of Landlord's Work
                    (amortized without interest on a straight line basis over
                    the initial Lease Term), and reimbursement of any free rent,
                    deferred rent or other Lease execution inducement The
                    expiration or termination of this Lease, and/or the
                    termination of Tenant's right to possession, will not
                    release Tenant from any liability under this Lease.

               (b)  Continue the Lease and Tenant's right to possession and
                    recover rent as it becomes due. Acts of maintenance or
                    preservation, efforts to relet the Premises, removal or
                    storage of Tenant's personal property or the appointment of
                    a receiver to protect Landlord's interest under this Lease,
                    will not constitute a termination of Tenant's right to
                    possession.

               (c)  Pursue any other remedy now or hereafter available to
                    Landlord under the laws or judicial decisions of the
                    state wherein the Premises Is located.

         19.03 The "worth at the time of award" referred to in Paragraph
19.02(a)(1), 19.02(a)(ii), and 19.02(a)(iv) will additionally include interest
computed by allowing interest at the rate of 12% per annum (or, if lower, at the
maximum rate allowed by law). The "worth at the time of award" referred to in
Paragraph 19.02(a)(iii) will be computed by discounting the amount at the
discount rate of the Federal Reserve Bank of San Francisco in effect at the time
of award, plus one percent (1%).

         19.04 No right or remedy conferred upon or reserved to Landlord in this
Lease is intended to be exclusive of any right or remedy granted to Landlord by
statute or common law, and each and every such right and remedy will be
cumulative.

20. Condemnation

         If any portion of the Premises or any portion of the Building in which
the Premises is located, or any portion of the Property which would
substantially interfere with Landlord's ownership, or Landlord's or Tenant's
ability to conduct business is taken for any public or quasi-public purpose by
any governmental authority, including but not limited to, by exercise of the
right of appropriation, inverse condemnation, condemnation or eminent domain, or
sold In lieu of such taking, Landlord, at Its option, may terminate this Lease
without recourse by Tenant. If this Lease is not terminated, Landlord will
promptly proceed to restore the Premises and/or any portion of the Property used
in common by ail Tenants to substantially the same condition as prior to such
taking allowing for any reasonable effects of such taking. Should a portion of
the Premises be taken in a case where Landlord does not exercise Its right to
terminate this Lease, Landlord will abate the rent corresponding to the term
during which, and to the part of the Premises which, Tenant is deprived on
account of such taking. Any award for any taking or payment made In lieu of
exercise of such power will be the property of Landlord, whether such award be
made as compensation for diminution, of value of the leasehold or for the taking
of the fee, or as severance damages; however, Tenant will be entitled to any
compensation, separately awarded to Tenant for Tenant's relocation expenses.

21. Estoppel Certificate

         Tenant will execute and deliver to Landlord, within ten (10) days after
written request from Landlord, a written estoppel Certificate in form prepared
by Landlord certifying: (i) that this Lease is unmodified and in full force and
effect (or, modified, specifying each such modification); (ii) the Commencement
Date and expiration of the Lease Term; (iii) the absence or status of any rights
of Tenant to renew, extend, or otherwise alter the Lease Term or to lease
additional space or alter the definition of the Premises; (iv) the date to which
rent and any other charges are paid In advance, if any; (v) that there are not,
to Tenant's knowledge, any uncured Defaults on the part of Landlord, or stating
the nature of any uncured Defaults; (vi) the current Base Rent amount and the
amount and form of the Security Deposit on deposit with Landlord;

                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       8
<PAGE>

(vii) that Landlord has completed any promised improvements to the Premises and
paid any promised improvement allowance (or detailing any work to be performed
or allowance to be paid); and (viii) any other information reasonably requested,
including but not limited to, any requested information regarding Hazardous
Materials. Any such Estoppel Certificate may be relied upon by Landlord, and
also by any actual or prospective, buyer or lender of the Property and any other
third party designated by Landlord (the "Beneficiaries"). If Tenant fails to
execute and deliver such Estoppel Certificate within such ten (10) day period,
then without waiver of Default or of any other right or remedy of Landlord,
landlord shall have the right to deliver to the Beneficiaries a completed
Substitute Estoppel Certificate regarding this Lease certifying the matters
which Tenant was requested to certify in the Estoppel Certificate. A notice
enclosing a copy of the Substitute Estoppel Certificate shall be simultaneously
sent to Tenant. Each statement In the Substitute Estoppel Certificate shall be
deemed true, and shall be binding upon Tenant, unless. Tenant provides, within
five (5) days of the receipt of Landlord's notice, written notice addressed to
Landlord and the Beneficiaries disagreeing with such statement on specific
grounds. Tenant shall defend and indemnify Landlord regarding any claim that a
statement in-the Substitute Estoppel Certificate to which Tenant did not so
disagree is inaccurate.

22. Notices o

         All communications and notices required under, this Lease shall be in
writing and shall be addressed to the respective address of the receiving party
set forth in Basic Lease Information above. Ali notices to Tenant shall be given
by reputable overnight courier, U. S. mail (First Class, postage prepaid), or
hand delivery, and shall be deemed received (I) if mailed, on the earlier of
actual receipt or three (3) days after such mailing, (ii) one business day
following delivery by Landlord to such an overnight courier, or (ii) upon hand
delivery. Any notice to Tenant may also be given' by posting at the Premises and
shall be effective upon such posting. Notices to Landlord shall be sent to
Landlord by U. S. mail, postage prepaid, registered or certified mail with.
return receipt requested to the address indicated in Basic Lease information and
shall be deemed received five (5) days after such mailing. At any time during
the Lease Term, Landlord or Tenant may specify a different. Notice Address by
providing written notification to the other.

23.  Holdover

         If Tenant remains .in possession of all or any part of the Premises
with Landlord's prior written consent after the expiration or termination of
this Lease or of Tenant's right to possession', such possession will constitute
a month-to month tenancy which may be terminated by either Landlord. or Tenant
upon thirty (30) days written notice and will not institute a renewal or
extension of the Lease Term. If Tenant remains In possession after such
expiration or termination without Landlord's prior written permission, such
possession will constitute a tenancy-at-will terminable upon forty-eight (48)
hours' notice by Landlord and will not constitute a month-to-month tenancy nor a
renewal or extension of the Lease Term. In the event of a month-to-month tenancy
or tenancy-at-will under this Paragraph, Tenant's Base Rent will be one hundred
fifty percent (150%) of the Base Rent payable during the last month of the Lease
Term, any other sums due under this Lease will be payable in the amounts and at
the times specified in this Lease, arid all options, rights of refusal,
expansions and/or renewals shall be null and void. My tenancy under this
Paragraph will be subject to every other term, condition and covenant contained
in this Lease. Tenant agrees to defend, indemnify and hold Landlord armless from
any claim or cause of action arising out of related to the failure of Tenant to
surrender possession of the 'remises to Landlord upon the expiration of this
Lease or upon any such termination.

24. crossed out

25. Default by Landlord; Limitation of Liability; Real Estate investment Trust

         25.01 In the event Landlord fails to perform any obligation required
to, be performed under this Lease, Tenant will notify Landlord in writing of
such failure. Landlord shall not be deemed in Landlord Default hereunder unless
and until such notice is actually received by Landlord and Landlord -falls
within thirty (30) days of receipt of such notice to commence to make a good
faith effort to cure the failure or thereafter ceases to pursue such cure to
completion.

         25.02 The obligations of Landlord under this Lease shall be binding
only on the undersigned Landlord and not upon any of its subsidiaries or
affiliates nor upon any partners, investors, trustees, directors, officers,
employees, agents, shareholders, advisors or managers of Landlord in their
individual capacities. With respect to any obligations of Landlord to Tenant
under this Lease and with respect to any liabilities arising at the Property,
Tenant's sole and exclusive remedy shall be a claim against the undersigned
Landlord.

         25.03 In consideration of the benefits accruing hereunder, Tenant on
behalf of itself and all of Its Transferees covenants and agrees that, in the
event of any actual or alleged Landlord Default of this Lease or in the event of
any other claim or cause of action by Tenant, Tenant's recourse against Landlord
for any monetary damages (over and above damages actually paid by available
insurance, if any) will be limited to the lesser of (ao the actual amount of
equity of Landlord In the Property, or (b) the amount of equity Landlord would
have in the Property if the Property were encumbered by debt in an amount equal
to eighty percent (80%) of the value of the Property;o calculations of equity
shall be made as of the Initial date Tenant notifies Landlord of the actual or
alleged Default or other claim. Any judgment against Landlord shall be satisfied
only out of the Property; no other assets of Landlord shall be subject to levy,
execution or other enforcement procedure for the satisfaction of any judgment by
Tenant against Landlord. Any claims by Tenant against Landlord will be limited
to actual damages only and will not, under any circumstances, include lost
profits or consequential damages.
                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       9
<PAGE>

         25.04 If Landlord is a real estate investment trust, and if Landlord in
good faith determines that its status as a real estate investment trust under
the applicable provisions of the Internal Revenue Code of 1986, as heretofore or
hereafter amended, will be jeopardized because of any provision of this Lease;
Landlord may require reasonable amendments to this Lease and Tenant shall not
unreasonably withhold or delay its consent thereto, provided that such
notifications do not in any way, (i) increase the obligations of Tenant under
this Lease or (ii) adversely affect any rights or benefits to Tenant under this
Lease. Landlord shall pay all reasonable costs incurred by Tenant, including
without limitation, legal fees incurred for reviewing any such proposed
modifications.

         25.05 Tenant represents that, to its knowledge, no person or entity who
is a significant indirect owner of Landlord, owns actually or constructively a
10% or more interest in Tenant. Tenant will promptly notify Landlord if it
learns that any such ownership interest exists. Significant owners of Landlord
at this time include Public Storage, inc. and New York Common Retirement Fund.

         25.06 Landlord and any successor Landlord have the right to sell the
Property or any portion of it, or to assign its interest in this o Lease, at any
time and from time to time. Upon the sale or any other conveyance by Landlord of
the Property, or a portion thereof which includes the Premises, Landlord will be
released from all obligations and liability under this Lease arising out of any
act, event, occurrence or omission occurring or existing after the date of such
conveyance.

26.  Subordination

         Without the necessity of any additional document being executed by
Tenant for the purposes of effecting a subordination, end at the election of
Landlord or any mortgagee or any ground Landlord with respect to the land of
which the Premises area part, this Lease will be subject and subordinate at all
times to: (i) all, ground leases or underlying leases which may now exist or
hereafter be executed affecting the Property, and (ii) the lien of any mortgage
or deed of trust which may now exist or hereafter be executed in any amount for
which the Property, ground leases or underlying leases, or Landlord's interest
or estate in any of said items is specified as security. Landlord or any
mortgagee or ground Landlord will have the right, at its election, to
subordinate or cause to be subordinated any ground Tenant or underlying leases
or any such liens to this Lease. If Landlord's interest In the Premises is
acquired by any ground Landlord or mortgagee, or in the event any proceedings
are brought for the foreclosure of, or in the event of exercise of power of sale
under any mortgage or deed of trust made by Landlord covering the Premises, or
in the event a conveyance in lieu of foreclosure is made for any reason, Tenant
will, notwithstanding any subordination and upon the request of such successor
in interest to Landlord, to attorn and become the Tenant of the successor in
interest to Landlord and recognize such successor in interest as the Landlord
under this Lease. Tenant acknowledges that although this Paragraph is
self-executing, Tenant covenants and agrees to execute and deliver, upon demand
by Landlord and In the form requested by Landlord, or any other mortgagee or
ground Landlord, any additional documents evidencing the priority or
subordination of this Lease with respect to any such ground leases or underlying
leases or the lien of any such mortgage or deed of trust. Tenant agrees that any
person or entity who acquires title to the Premises pursuant to a foreclosure of
a deed of rust or mortgage, or deed in lieu thereof, or the termination of an
underlying ground lease or master lease (a "Foreclosing Party"), even if such
Foreclosing Party elects to have Tenant attorn to the Foreclosing Party under
this Lease, shall not be (1) liable for any act or omission of any prior
Landlord or with respect to events occurring prior to, its acquisition of
ownership, (ii) subject to any offsets or defenses which Tenant might have
against any prior Landlord, (iii) bound by prepayment of more than one month's
rent, (iv) liable for any security deposit not actually received by such person
or entity, (v) bound by any amendment or modification to this Lease not
consented to in writing by the holder of the mortgage, deed of trust, ground
lease or master lease or the Foreclosing Party, or (vi) liable for any
obligation or liability accruing under this Lease after the Foreclosing Party
assigns Its interest under this Lease to a third party. Any such Foreclosing
Party is expressly made a third party beneficiary of the foregoing provisions,
and all other provisions of this Lease which are for the benefit of a
Foreclosing Party, which rights shall survive a foreclosure of the deed of trust
or mortgage.

27.  Force Majeure

         Landlord will not be deemed in Landlord Default or have liability to
Tenant, nor will Tenant have any right-to terminate this Lease or abate rent or
assert a claim of partial or constructive eviction, because of Landlord's
failure to perform any of its obligations under this Lease if the failure is due
in part or in full to reasons beyond Landlord's' reasonable control. If this
Lease specifies a time period for performance of an obligation by Landlord, that
time period will m extended by the period of any delay in Landlord's performance
caused by such events as described herein.

28.  Miscellaneous Provisions

         28.01 Whenever the context of this Lease requires, the word "person"
shall include any entity, and the singular shall include the plural and the
plural shall Include the singular. If more than one person or entity is Tenant,
the obligations of each such person or entity under this Lease will be joint and
several. Without diminishing the provisions of Paragraph 17, the terms,
conditions and provisions of this Lease will apply to and bind the heirs,
successors, executors, administrators and assigns of Landlord and Tenant.

         28.02 The captions and headings of this Lease are used for the purpose
of convenience only and shall not be construed to interpret, limit or extend the
meaning of any part of this Lease. This Lease contains ail of the agreements and
conditions made between Landlord and Tenant and may not be modified in any
manner other than by a written agreement signed by both Landlord and Tenant. Any
statements, promises, agreements, warranties or representations, whether oral or
written, not expressly contained herein will in no way bind 'Landlord and Tenant
expressly waives all claims for damages by reason of any statements, promises,
agreements, warranties or representations, if any, not contained In this Lease.
No provision of this Lease shall be deemed to have been waived by Landlord
unless such waiver is in writing signed by a regional vice president or higher
of Landlord or of Landlord's management company, and no custom or practice which
may develop between the parties during the Lease Term shall-waive or diminish
the Landlord's right to enforce strict performance by Tenant of any terms of the
Lease. No waiver by Landlord of a Default by Tenant of any term, covenant or

                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       10
<PAGE>

condition of this Lease will be deemed a waiver of any other term, covenant or
condition of this Lease, or of any subsequent Default by Tenant of the same or
any other term, covenant or condition of this Lease. No delay or omission by
Landlord to seek a remedy for any Tenant Default of this Lease shall be deemed a
waiver by Landlord of its remedies or rights with respect to such Default.
Additionally, regardless of Landlord's knowledge of a Default at the time of
such acceptance, the acceptance of rent. or any other payment by Landlord will
not constitute a waiver by Landlord of any Default by Tenant. The duties and
warranties of Landlord are limited to those expressly stated this Lease and do
not and shall not include any implied duties or implied warranties, now or in
the future. No representations or warranties have been made by Landlord other
than those contained in this Lease. This Lease is governed and construed in
accordance with the laws of the state in which the Premises are located, and
venue of any legal action will be in the county where the Premises are located.

         28.03 Time is of the essence for the performance of each term,
condition and covenant of this Lease.

         28.04 This Lease has been fully reviewed by both parties and shall not
be strictly or adversely construed against the drafter. If any provision
contained herein is determined to be invalid, illegal or unenforceable in any
respect then (a) such provision shall be enforced to the fullest extent allowed,
and (b) such invalidity, illegality, or unenforceability will not affect any
other provision of this Lease.

         28.05 Tenant hereby agrees not to disclose any terms of this Lease
without. the prior written consent of Landlord. Tenant shall not record this
Lease or any short form memorandum hereof.

         28.06 The rights and obligations of the parties under this Lease shall
survive the expiration of this Lease and the termination of this Lease and/or of
Tenant's right of possession.

         28.07 Landlord and Tenant each warrant to the other that it has not
dealt with any broker or agent le connection with this Lease, other than the
person(s) listed in Basic Lease Information above. Landlord and Tenant each
agree to indemnify the other against all costs, expenses, legal fees and other
liability for commissions or other compensation claimed by any other broker or
agent by reason of the act or agreement of the indemnifying party.

         28.08 Tenant shall not permit or allow any activity in the. Premises
which will have an adverse effect on indoor air quality, including smoking and
any remodeling activity or introduction of materials which would have such an
effect. Landlord shall have the right, but not the obligation, to monitor indoor
air quality within the Project Tenant shall take such steps to protect and to
improve indoor air quality as Landlord may reasonably request from time to time.

         28.09 Landlord has no duty to provide security for. any portion of the
Project To the extent Landlord elects to provide any security, Landlord is not
warranting the effectiveness of any security personnel, services, procedures or
equipment and Tenant shall not rely on any such personnel, services, procedures
or equipment Landlord shall not be liable for failure of any such security
personnel, 'services, procedures or equipment to prevent or control, or to
apprehend anyone suspected of, personal injury or property damage in, on or
around the Project.

         28.10 The grant of any consent or approval required from Landlord under
this Lease shall be proved only by proof of a written document signed and
delivered by Landlord expressly setting forth such consent or approval. Unless
otherwise specified herein, any such consent or approval may be withheld in
Landlord's sole discretion. Any consent may be issued subject to conditions
determined by Landlord, in its sole discretion. Notwithstanding any other
provision of this Lease, the sole and exclusive remedy of Tenant for any alleged
or actual improper withholding, delaying or conditioning of any consent or
approval by Landlord shall be the right to specifically enforce any right of
Tenant to require issuance of such consent or approval on conditions allowed by
this Lease; in no event shall Tenant have the right to terminate this Lease, to
collect monetary damages, or to pursue any other remedy for any actual or
alleged improper withholding, delaying or conditioning of any consent or
approval, regardless of whether this Lease requires that such consent or
approval not be unreasonably withheld, conditioned or delayed.

         28.11 Tenant agrees to abide by, keep and observe all Rules and
Regulations set forth in Exhibit "D" and all reasonable additions and amendments
(applied in a non-discriminatory fashion) to the same of which Landlord provides
written notice to Tenant Landlord will not be responsible .to Tenant for any
nonperformance by any other Tenant, occupant or invitee of the Property of any
said Rules and Regulations.

         28.12 Tenant will not place any signage on or about the Property, or on
any part thereof, without the prior written consent of Landlord which Landlord
may withhold or condition in its sole reasonable discretion. Ail Tenant signage
;ill comply with the terms and conditions of this Lease, the sign criteria set
forth in Exhibit "C" and Exhibit "D" or other criteria which Landlord may
establish from time to time.

         28.13 Tenant will not vacate or abandon the Premises, or permit the
Premises to remain unoccupied for any period longer than thirty (30)
consecutive days any time during the Lease Term. If Tenant abandons, vacates,
or surrenders the Premises, or is dispossessed by process of law, or otherwise,
any personal property belonging to Tenant left in or about the Premises will, at
the option of Landlord, be deemed abandoned and may be disposed of by Landlord
at the expense and risk of Tenant.

         28.14 in the event any party to this Lease initiates litigation to
enforce the terms of this Lease or to declare rights under this Lease, the
prevailing party will be entitled to collect its reasonable attorneys fees which
shall include all attorneys fees incurred at and in preparation for discovery,
arbitration, trial, appeal and review, including deposition attorneys fees. This
attorneys fee provision shall also apply to all litigation and other proceedings
in Bankruptcy Court.

         28.15 Submission of this document for examination and signature by
Tenant is not an offer to lease and does not create a reservation or option to
lease. This document will become effective and binding only upon full execution
and delivery by both Tenant and Landlord.

                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       11
<PAGE>

29. No Smoking

Smoking of any kind is strictly prohibited, at all times, at any location on
this property, except in the designated smoking area which is located at the
OUTSIDE PERIMETER OF BUILDING ONLY. Landlord may relocate the designated smoking
area at Its sole discretion, at any time during the term of this Lease.

Provision #30 SECURITY DEPOSIT

Tenant shall be required to pay a security deposit equal to the amount of three
(3) months' rent. One month of the security deposit shall be applied to the
thirteenth (13th) month of rent, only if Tenant has not been in default at any
time during the first twelve (12) months of this Lease.

Provision #31 TENANT IMPROVEMENTS

Landlord, at Landlord's sole cost and expense, shall perform the following:

     -Construct a dividing wall in the existing southerly conference room.
     - Shall patch carpet using-building standard materials.
     - Shall provide three dedicated circuits in Tenant's server room.
     -Tenant shall have the right at Tenant sole costs and expense to install a
     separate air conditioning units for its network server.

Provision #32 ACCESS

Tenant, and Tenant's employees, agents and visitors, shall have access to the
parking facilities, Premises, Building and Project twenty-four (24) hours a day,
seven (7) days per week at no extra cost.

Provision #33 OPTION TO RENEW

Tenant shall have one (1) three (3) years option to extend this Lease. Tenant
shall provide not less than six (6) months prior written notice to extend the
Lease. The rent for the option period shall be Fair Market Rate, with terms and
conditions for comparable office buildings in the area at the time of
commencement of the extended term (per LOI).

                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       12
<PAGE>

                                    Exhibit A
                                    ---------

                         LEGAL DESCRIPTION-- CULVER CITY

The land referred to herein is situated in the County of Los Angeles, State of
California, and is described as follows:

Parcel 1:

Lots 11 to 13 inclusive, of Tract No. 22864, in the city of Culver City, in the
County of Los Angeles, State of California, as per map recorded in Book 880
Pages 49 to 55 inclusive of maps, in the office of the County Recorder of said
County.

Excepting from said land, all metals and minerals and all oil, natural gas,
asphaltum and other hydrocarbons, without right of surface entry, together with
the right to explore and to drill and to produce, extract and take metals and
minerals, oil, natural gas, asphaltum and other hydrocarbons, together with all
rights necessary and convenient thereto for any or all of the above purposes,
including without limiting the generality hereof subsurface rights of way for
drilling, repairing, redrilling, deepening, maintaining, operating, abandoning,
reworking, and removing wells into and through said land, below a plan of 500
feet below the surface thereof and o excepting and reserving the right to
maintain pipes and to transport any such substances and to cross and traverse
from other lands below a depth of 500 feet, as reserved by Home Savings and Loan
Association, a California Corporation, in deed recorded December 30, 1969 as
Instrument No. 261, in Book D-4593.Page 72, Official Records.

Parcel 2:

Parcel 1 of Parcel 2 Map No. 12436, in the city of Culver City, as per map filed
in Book 122 Pages 22 and 23 of parcel maps, in the office of the County Recorder
of said County.

Excepting from said land, all metals and minerals and all oil, natural gas,
asphaltum and other hydrocarbons, without right of surface entry, together with
the right to explore and to drill and to produce, extract and take metals and
minerals, oil, natural gas, asphaltum and other hydrocarbons, together with all
rights necessary and convenient thereto for any or all of the above purposes,
including without limiting the generality hereof subsurface rights of way for
drilling, repairing, rechiling, deepening, maintaining, operating, abandoning,
reworking, and removing wells into and through said land, below a plan of 500
feet below the surface thereof and excepting and reserving the right to maintain
pipes and to transport any such substances and to cross and traverse from other
lands below a depth of 500 feet, as reserved by Home Savings and Loan
Association, a California Corporation, in deed recorded December 10, 1969 as
Instrument No. 261, in Book D-4593 Page 72, Official Records.

                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       13
<PAGE>

                                  EXHIBIT A-1
                                  -----------

                                  [FLOOR PLAN]

                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       14
<PAGE>

                                  EXHIBIT A-2
                                  -----------

                            [RENTAL COMPLEX DRAWING]

                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       15
<PAGE>

                                   EXHIBIT B
                                   ---------

Lessee accepts premises in present condition.

Subject to the provisions of Article 2, Lessee accepts the premises in the
condition they are in at the commencement of this lease and shall maintain said
premises in the same condition, order, and repair, excepting only reasonable
wear and tear, arising from the use under this Agreement. Lessee has examined
and knows the condition of the leased premises and agrees that no
representations, except such as are 'contained herein, have been made to Lessee
respecting the condition of said premises. The taking possession of said
premises by Lessee shall be conclusive that the premises are in good and
satisfactory condition.

                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       16
<PAGE>

                                    Exhibit C
                                    ---------
1.       Sign Criteria

         Lessee shall be allowed to install building standard signage In
         accordance with the applicable county codes end the following criteria
         set forth by PS Business Parks. The location of the signage shall be
         subject to Lessor's prior approval, which shall not be unreasonably
         withheld. All costs associated with the installation and maintenance of
         the signage shall be the sole responsibility of Lessee.

         A.       General Requirements

                  1.       The Lessee shall pay for the sign, lettering,
                           shipping and placement

                  2.       The Lessor shall approve all copy prior to the
                           fabrication of the sign.

                  3.       The Lessor shall direct the placement of all signs
                           and method of attachment to the building.

                  4.       Quantity of Building Identification signs Per
                           building shall be one (1) per business.

                  5.       The Lessee shall be limited to Identifying the
                           business name, and if applicable, secondary
                           description copy.

                  6.       The Lessee shall be responsible for the fulfillment
                           of all requirements for these criteria.

                  7.       All signs shall be fabricated by Lessor-approved
                           vendor.

                  8.       All signage shall be in compliance with all city
                           codes and ordinances.

                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       17
<PAGE>

                                  EXHIBIT "D"
                                  -----------

                             RULES AND REGULATIONS

         1.01 The following Rules and Regulations now in effect govern Lessee's
use of the Premises and any part of the Project or Property used in common by
Lessee. Lessee will be bound by such Rules and Regulations and agrees td cause
Lessee's employees, agents, contractors, suppliers, invitees and licensees to
observe the same.

         1.02 Wherever Lessor provides standard window coverings, such coverings
shall not be altered, removed or replaced by Lessee. Wherever Lessor does not
provide standard window coverings, selection and installation of window
coverings by Lessee shall be subject to Lessor's prior written approval. If
Lessor objects to any Item attached to, or used in connection with or on any
window, other glass area, or interior or exterior wail, Lessee will immediately
upon notification remove such objectionable item or discontinue such use.
Further, Lessee agrees not to place anything in close proximity to any window or
glass area of the Premises which may appear from the outside of the Premises.

         1.03 Lessee will not use any sidewalks, hallways, entrances, elevators,
stairways, exits, lobbies or any other areas used in common by lessees of the
Property other than for normal ingress or egress',. Lessee shall not obstruct
use of any such area. 'Lessor will in all cases retain the right to control and
prevent access to such areas by all persons whose presence in the sole judgment
of Lessor would be prejudicial to the safety, character, reputation and/or
interest of the Property and/or its lessees. Neither lessee nor its employees,
agents, contractors, suppliers, invitees or licensees shalt go on any roof or
ladder, in any mechanical rooms, or climb on any exterior structures of any
nature on the Property without Lessor's prior written consent.

         1.04 Lessor reserves the right, exercisable without notice and without
liability to Lessee, to change the name, street and/or address of any part of
the Property, With the exception of- Lessee's address, Lessee shall not use the
name of the Property or any part thereof in connection with promoting or
advertising Lessee's business. Lessor will have the right to prohibit publicity
by Lessee which in Lessor's opinion Impairs the reputation or marketability of
the Property or any part thereof.

         1.05 Lessee shall not keep or allow to be used any foul or noxious gas
or substance in or about the Premises. Nor shall Lessee occupy or use the
Premises in any manner which is objectionable or offensive to other lessees or
Lessor by mason of odor, noise, vibration or interference in any way. My
equipment or device of Lessee which causes noise or vibration that may be
transmitted to any structural portion of the Property or to any part therein to
such a degree as to be objectionable to any lessee or Lessor must be approved in
writing by Lessor prior to its installation and be placed and maintained by
Lessee, at Lessee's expense, on vibration eliminators or other devices
sufficient to eliminate such noise or vibration. Lessee shall keep the Premises
free of mice, ants, bugs and other vermin.

         1.06 Lessee will not use or keep In the Premises, or on or about the
Property, any kerosene, gasoline or flammable or combustible fluid or material
other than those limited quantities necessary for the operation or maintenance
of general office equipment, for which Lessor has been previously advised and
given its consent.

         1.07 Lessor reserves the right to exclude or expel from the Property
any person who, in Lessor's judgement, is intoxicated or under the influence of
liquor or drugs or who is In violation of any of the rules arid regulations of
the Property.

         1.08 Lessee shall not alter or re-key any lock or bolt or install any
new or additional locks or bolts on any doors of the Premises without prior
written consent from Lessor. Upon the termination of its tenancy, Lessee will
provide Lessor with all keys, whether furnished or otherwise procured, and shall
be responsible for the cost of replacing any keys that are lost

         1.09 The Premises will not be used for lodging nor for any improper,
immoral or objectionable purpose. No cooking will be done or permitted on the
Premises or elsewhere on the Property without Lessor's consent, except that the
preparation of coffee, tea, hot chocolate and similar beverages and employee use
of a microwave oven will be permitted, provided that such equipment and use is
in accordance with all applicable federal, state, county and city laws, codes,
ordinances and any manufacturer's guidelines and recommendations.

         1.10 Lessee will not solicit business from other lessees of the,
Property. Canvassing, soliciting, peddling and distribution of handbills or any
other written material is prohibited, and Lessee will cooperate with Lessor to
prevent such activities.

         1.11 Lessee agrees to comply with and not to restrict or impair In any
way, all safety, fire protection and evacuation procedures and regulations
established by Lessor or any governmental agency. Lessee shall not do or permit
any act or bring anything on the Property or any part thereof which shall
obstruct or interfere with the rights of other lessees.

                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       18
<PAGE>

         1.12 Except for the ordinary hanging of pictures and wail decorations,
Lessee will not mark, drive nails, screw, cut or drill into the partitions,
woodwork, ceilings or plaster, or in any way deface, mar, paint or penetrate the
Premises or any part of the Property, except In accordance with the Lessee
Alteration provisions of the Lease. Additionally, Lessee will not affix any
floor covering to the floor of the Premises in any manner except as approved by
Lessor.

         1.13 No electrical wiring, outlets or apparatus shall be Installed or
altered by Lessee, except in accordance with the Lessee Alteration provisions of
the Lease. Lessor reserves the right to direct where and how telephone and other
telecommunication wires are to be Introduced to the Premises. Lessee may not
alter or overburden the designed capacity of any existing electrical outlets.

         1.14 Lessee shalt not place or affix any radio or television antennas,
satellite dishes, loudspeakers or other similar devices, awnings, outside
furniture, etc. on the roof, exterior walls or outside of any building or on any
other pad of the Property without Lessor's prior written 'approval. Additionally
Lessee will not place any signs, advertising, billboards, lighting, or any other
devices or means of advertising or identification on property adjacent to the
Property that in Lessor's opinion obstructs, Impairs, restricts or in any way,
in Lessors opinion, negatively. affects the Property or would not be permitted
by the terms of this Lease or these Rules and Regulations if such action were
taken on the Property.

         1.15 Lessor reserves the right to prescribe the weight, size and
position of all equipment, materials, furniture or other property brought on to
the Property. Such Lessor approved items shall be moved in or about the Property
under the direction of Lessor and in a manner and at such times that will not
inconvenience any lessee. Lessor reserves the right to prohibit or impose
conditions upon the installation of objects which may overload any floor.

         1.16 All parking facilities of the property shall be regulated by
Lessor and may be modified or amended(.) as Lessor deems necessary. Lessee shall
not permit or allow any vehicles that belong to or that are controlled by Lessee
or Lessee's employees, customers or invitees to be loaded, unloaded or parked in
areas other than those designated by Lessor for such activities. Users of the
parking areas will obey all posted signs and not impede the flow of traffic.
Washing, waxing, cleaning or servicing of any vehicle is prohibited. No campers,
recreational vehicles or trailers are permitted and all disabled vehicles must
be removed within 24 hours. Tor Sale" signs 'or any other advertising is not
permitted on or about any parked vehicle. No Vehicles shall be brought into or
kept in the Premises. Lessor reserves the right to tow, without cost or
liability to Lessor, any vehicle: 1) parked in an unauthorized or illegal
parking area or, 2) whose audio theft alarm system remains engaged for an
unreasonable period; and 3) belonging to any violator of any of Lessor's parking
rules and regulations. Further, in addition to all of Its other rights and
remedies, Lessor reserves the right to refuse to permit any person to park
within the Property who violates any of these or any other rules or regulations
which Lessor rosy establish.

         1.17 Lessee shall not do any act which will create any additional costs
to maintain the appearance or cleanliness of any part of the Property. No dirt
or other substances shall be disposed of anywhere on the Property, inducting but
not limited to in any hallways, stairways, elevators or lobbies or on any
parking areas, landscaping, walkways or in any other areas used In common with
other lessees.

         1.18 Lessee assumes any and all responsibility for protecting its
Premises from theft, robbery and pilferage, which includes keeping Premises
doors locked and all doors into common areas such as doors Into entrances,
public corridors, lobbies, etc., closed, except for normal ingress and egress.

         1.19 No signage, notices or advertisements may be placed by leseee
anywhere outside of its Premises and all signage must comply with the Sign
Criteria exhibit attached to and made a part of this Lease and any other terms
and conditions of these Rules and Regulations and the Lease.

          1.20 Lessee shall not use any method of heating or air conditioning
other than as provided by Lessor without Lessors prior written consent.

         1.21 Lessor may prohibit smoking Within Lessee's Premises, the Project,
or any part thereof, and may require Lessee and any of Its agents, employees,
suppliers, customers, guests and invitees who desire to smoke, to smoke within
specifically designated smoking areas which Lessor may change from time to time.
It will be Lessee's sole responsibility to ascertain from Lessor the specific
smoking program in effect at the Property at the time of its lease commencement.
Any smoking program implemented by Lessor will be strictly enforced.

         1.22 Rest room partitions, mirrors, wash basins and other plumbing
fixtures shall not be used for any purpose other than that for which they were
constructed and no sweepings, trash or other substances shall be disposed of
therein. Any damage or Injuries caused by Lessee, its employees, agents,
contractors, suppliers, invitees or licensees shall be borne directly by Lessee.

         1.23 No heavy items may be transported by elevator if such item or
Items exceed the load capacity of the elevator. Lessee's Initial move in and
subsequent deliveries of bulky items, such as furniture, equipment, supplies,
merchandise, safes and similar items will be subject to reasonable scheduling
and approval of persons moving such items by Lessor. Deliveries during normal
office hours shall be limited to normal office supplies and other small items.
Lessee shall be responsible for protecting elevator Interior and exterior
finishes and flooring whenever Items are transported in them on Lessee's behalf.

                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       19
<PAGE>

         1.24 Lessee will not waste electricity, water or air conditioning and
agrees to cooperate fully with Lessor in this regard and to comply with any
Lessor or governmental energy-saving rules, laws and regulations.

         1.25 Lessee understands that air conditioning and heating systems
supply cool air and heat to large zones regulated by zonal thermostats.. Lessor
shall determine the locations of, make any modifications to, and have exclusive
control over all such thermostats, their settings, the zones and all parts of
the system. Lessee agrees to cooperate with other parties within its zone(s) to
maximize the comfort level of all parties and shall not touch, adjust, tamper
with, or otherwise affect any thermostat or any part of the heating/cooling
systems. Lessee will direct all problems related to heating/cooling systems
directly to Lessor.

         1.26 Lessor shall be under no obligation to provide heating or air
conditioning services to the building during off hours (between 6;00-p.m. and
8:00 a.m., Monday through Friday and on nonbusiness days). Lessee may request
additional heating or air conditioning during off hours and, should Lessor agree
to supply such service, Lessee will reimburse Lessor for all costs and expenses
incurred, as determined by Lessor in its sole discretion.

         1.27 Lessor and its agents reserve the right to exclude from the
building any unknown person, or any person otherwise improperly identified.
Lessor shall in no case be liable for any damages for any error with regard to
the admission to or exclusion from the building of any person. In the case of
invasion, mob, riot, public excitement or any other circumstance which Lessor,
in its sole discretion, believes will place lessees and/or the Property fn
jeopardy, l4sor reserves the right to prevent access to the building during the
continuance of same by such action as Lessor may deem appropriate.

         1.28 Lessee's designated representative shall notify Lessor promptly of
any required maintenance Items for which Lessor is responsible. Employees of
Lessor will not perform any work or do anything outside of their regular duties
unless under special instruction by Lessor.

         1.29 No Lessee shall employ any person or persons other than the
janitor of Lessor for the purpose of cleaning' its Premises unless otherwise
agreed to by Lessor In writing. No Lessee shall cause any unnecessary labor by
reason of Lessee's carelessness or indifference In the preservation of good
order and cleanliness. Lessor shall not be responsible to any lessee for any
loss of property on the Premises or on or about the Property, however occurring,
or for any damage done to any effects of any lessee by the janitor or any other
employee or any other person.

         1.30 Neither Lessee nor any of Its employees, agents, contractors,
suppliers, invitees or licensees may use on any portion of the Premises, Project
or Property any hand truck except those equipped with rubber tires and side
guards or such other material-handling equipment as Lessor may approve or
require.

         1.31 These Rules and Regulations impose obligations upon Lessee which
are in addition to the obligations of Lessee set forth in the Lease. Nothing in
these Rules and Regulations will be construed in any way.to diminish or to
waive, in whole or in part, the terms, covenants, agreements and conditions of
the Lease. in the event that provisions of both these Rules and Regulations and
also of the Lease regulate the same subject matter, I Pssee shall comply with
all such. provisions; if any such provisions are in direct conflict, the
provisions of the Lease shall control. Lessor may waive any one or more of these
Rules and Regulations for the benefit of any other lessee, but no such waiver by
Lessor will be construed as a waiver of such Rules and Regulations In favor of
Lessee, nor obligate Lessor to grant any waiver (similar or dissimilar) to
Lessee, nor prevent Lessor from thereafter enforcing any such Rules and
Regulations against any or all of the lessees of the Property. Waiver of one
Rule or Regulation shall not constitute nor require any other waiver of the same
or any other Rule or Regulation. Delay in enforcement by Lessor shall not
constitute a waiver. A waiver by Lessor shall only be established by proof of a
written waiver Issued by Lessor expressly setting forth such waiver.

         1.32 Lessor reserves the right to adopt such additional reasonable and
nondiscriminatory Rules and Regulations (whether similar or dissimilar to these
Rules and Regulations), and/or such amendments to any Rule or Regulation, as, in
Its judgment, may from time to time be appropriate and Lessee agrees to abide by
all such additional Rules and Regulations and amendments which may be adopted.

                                                                      INITIAL
                                                                       HERE
                                                                      /s/  /s/
                                                                      --------

                                       20Unassociated Document

    Exhibit
      10.2

     

    PLAN
      AND AGREEMENT OF MERGER

    

    

    THIS
      PLAN AND AGREEMENT OF MERGER
      (hereinafter called the “Agreement”), dated as of February 14, 2007, is between
      Fluid Audio Networks, Inc., a Delaware corporation (“PARENT”), and Freedom 20,
      Inc., a Delaware corporation (“SUB”).

    

    WHEREAS,
      on the
      date hereof SUB is a corporation duly organized and existing under the laws
      of
      the State of Delaware, having authorized capital stock of 110,000,000 shares,
      100,000,000 of which are classified and designated as common stock, $0.0001
      par
      value, (“SUB Common Stock”) and 10,000,000 of which are classified and
      designated as preferred stock, $0.0001 par value (the “SUB Preferred
      Stock”);

    

    WHEREAS,
      PARENT
      is a corporation duly organized and existing under the laws of the State of
      Delaware, currently having authorized capital stock of 20,000,000 shares of
      authorized common stock, par value $0.001 (the “PARENT Common Stock”), and
      10,000,000 authorized preferred stock (the “PARENT Preferred
      Stock”);

    

    WHEREAS,
      there
      are 11,340,395 shares of PARENT (“PARENT ISSUED Common Stock”) issued and
      outstanding and wherein PARENT owns 100% of the SUB Common Shares, and such
      shares constitute all of the issued and outstanding capital stock of
      SUB;

    

    WHEREAS,
      the
      directors of SUB and PARENT have determined it advisable and in the best
      interest of each company that the PARENT merge with and into SUB as authorized
      by the statutes of the state of Delaware and upon the terms and subject to
      the
      conditions of this Agreement; and

    

    WHEREAS,
      the
      directors of SUB and PARENT have unanimously approved this Agreement by written
      consent to action in lieu of a meeting and a majority of the shareholders of
      SUB
      and PARENT have approved this Agreement by written consent to action in lieu
      of
      a meeting in accordance with the statutes of the state of Delaware;
      and

    

    NOW
      THEREFORE,
      in
      consideration of the mutual agreements and covenants set forth herein, PARENT
      and SUB hereby agree as follows:

    

    1. Merger.
      Upon
      the terms and subject to the conditions set forth in this Agreement, the PARENT
      shall be merged with and into the SUB (the “Merger”), and SUB shall be the
      surviving corporation (sometimes hereafter referred to as the “Surviving
      Corporation”). The name of the Surviving Corporation shall be Fluid Audio
      Networks, Inc. The Merger shall become effective upon the date and time of
      filing of appropriate certificates of merger and/or this Agreement providing
      for
      the Merger, with the Secretary of State of the State of Delaware, (the
“Effective Time” or the “Effective Date”).

    

    2. Governing
      Documents. The
      Certificate of Incorporation of SUB shall be the Certificate of Incorporation
      of
      the Surviving Corporation without change or amendment until thereafter amended
      in accordance with applicable law. The Bylaws of SUB, as in effect immediately
      prior to the Effective Time, shall be the Bylaws of the Surviving Corporation
      until thereafter amended as provided by law, by such Certificate of
      Incorporation or by such Bylaws.

    

    3. Succession;
      Officers and Directors.
      On the
      Effective Date, the separate corporate existence of the PARENT shall cease
      and
      SUB, as the Surviving Corporation, shall possess all the rights, privileges,
      powers and franchises of a public and private nature and be subject to all
      the
      restrictions, disabilities and duties of the PARENT; and all property, real
      personal and mixed, and all debts due to the PARENT on whatever account, as
      well
      as for share subscriptions and all other things in action belonging to the
      PARENT, shall be vested in the Surviving Corporation; and all and every other
      interest shall be thereafter the property of the Surviving Corporation as they
      were of the PARENT, and the title to any real estate vested by deed or otherwise
      in the PARENT, shall not revert or be in any way impaired by reason of the
      Merger; but all rights of creditors and all liens upon any property of the
      PARENT shall be preserved unimpaired, and all debts, liabilities and duties
      of
      the PARENT shall thence forth attach to the Surviving Corporation and may be
      enforced against it to the same extent as if such debts, liabilities and duties
      had been incurred or contracted by the Surviving Corporation. All corporate
      acts, plans, policies, agreements, arrangements, approvals and authorizations
      of
      the PARENT, its shareholders, board of directors and committees thereof,
      officers and agents which were valid and effective immediately prior to the
      Effective Date, shall be taken for all purposes as the acts, plans, policies,
      agreements, arrangements, approvals and authorizations of SUB and shall be
      as
      effective and binding thereon as the same were with respect to the
      PARENT.

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    The
      directors of PARENT immediately prior to the Effective Time shall be the
      directors of the Surviving Corporation, each to hold office in accordance with
      the Certificate of Incorporation and Bylaws of the Surviving Corporation, and
      the officers of PARENT immediately prior to the Effective Time shall be the
      officers of the Surviving Corporation, in each case until their resignation
      or
      their respective successors are duly elected or appointed and qualified. The
      employees and agents of the PARENT shall become the employees and agents of
      the
      Surviving Corporation entitled to the same rights and benefits which they
      enjoyed as employees and agents of the PARENT.

    

    4. Further
      Assurances.
      From
      time to time, as and when required by SUB, or by its successors and assigns,
      there shall be executed and delivered on behalf of the PARENT such deeds and
      other instruments, and there shall be taken or caused to be taken by it all
      such
      further and other action, as shall be appropriate or necessary in order to
      vest,
      perfect or confirm, of record or otherwise, in SUB the title to and possession
      of all property, interests, assets, rights, privileges, immunities, powers,
      franchises and authority of the PARENT, and otherwise to carry out the purposes
      of this Agreement, and the officers and directors of SUB are fully authorized
      in
      the name and on behalf of SUB or otherwise, to take any and all such action
      and
      to execute, deliver, file, and/or record any and all instruments, papers, and
      documents which shall be or become necessary, proper, or convenient to carry
      out
      or put into effect any of the provisions of this Agreement or of the merger
      herein provided for.

    

    5. Conversion
      and Cancellation of Common Stock.

    

    a. At
      the
      Effective Time, (i) each issued and outstanding share of common stock of Parent
      shall be converted into and become one
      fully
      paid and nonassessable share of common stock, par value $0.0001 per share,
      of
      the Surviving Corporation, and, from and after the Effective Time, the holders
      of all of said issued and outstanding shares of common stock of the Parent
      shall
      automatically be and become holders of shares of the Sub upon the basis above
      specified, whether or not certificates representing said shares are then issued
      and delivered and all shares of stock of the Sub acquired in the merger shall
      for purposes of § 203 of this title be deemed to have been acquired at the time
      that the shares of stock of the Parent converted in the merger were acquired;
      and (ii)
      all
      outstanding warrants of the Parent to purchase shares of the Parent Common
      Stock
      (“Parent Warrants”), immediately prior to the Effective Time that have not been
      surrendered by the holder thereof in exchange for Parent Common Stock, will
      at
      the Effective Time, be
      deemed
      be a warrant (the “Sub Warrants”) to acquire the same number of shares of Sub
      Common Stock as the holder of such Parent
      Warrants
      would have been entitled to receive pursuant to the Merger had such holder
      exercised such Parent
      Warrants
      in full immediately prior to the Effective Time at a price per share of Sub
      Common Stock equal to the exercise price for the shares of Parent
      Common
      Stock otherwise purchasable pursuant to such Parent
      Warrant.
      Schedule 5(a) attached hereto sets forth the name of each holder of Parent
      Warrants,
      the aggregate number of shares of Parent
      Common
      Stock that each such person may purchase pursuant to the exercise of his or
      her
Parent
      Warrants
      and the aggregate number of shares of Sub Common Stock that each such person
      may
      purchase upon exercise of Sub Warrants acquired pursuant to this Section 5(a).
      By its signature hereunder, Sub expressly assumes the obligation to issue Sub
      Common Stock to the holders of Sub Warrants upon exercise thereof, in accordance
      with the provisions of this Section 5(a).

    

    b. At
      the
      Effective Time, each share of common stock of the Sub (a “Share”) owned by the
      Sub as treasury stock or by any subsidiary of the Sub and each Share owned
      by
      the Parent shall be cancelled and retired and shall cease to exist, and no
      consideration shall be delivered in exchange therefor.

    

    c. At
      the
      Effective Time, each issued and outstanding Share of the Parent shall be (other
      than Shares to be cancelled in accordance with Section (d) above) converted
      into
      one share of common stock in the Sub (the “Offer Price”), without surrender of
      the certificate formerly representing such Share (each a “Subs Certificate”) in
      the manner provided in (f) below. From and after the Effective Time, all such
      converted Shares shall no longer be outstanding and shall be deemed to be
      cancelled and retired and shall cease to exist, and each holder of any such
      Shares shall cease to have any rights with respect to any Parent Certificate
      except the right to receive shares in the Sub equal to the number of shares
      owned in the Parent (the “Merger Consideration”).

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    d. After
      the
      Effective Time, each holder of record of common stock of the Parent shall
      receive in exchange therefor the Merger Consideration, and the shares of common
      stock of the Parent shall be cancelled.

    

    e. In
      its
      sole discretion, SUB may elect to round up to the nearest whole share, in lieu
      of issuing fractional shares of SUB Common Stock as a result of the Merger
      or to
      pay the fair market value of such fractional shares to the holders who would
      otherwise be entitled to such fractional shares of SUB Common Stock, as
      determined by its board of directors.

    

    6. Amendment.
      Subject
      to the applicable law, this Agreement may be amended, modified or supplemented
      by written agreement of the parties at any time prior to the Effective
      Date.

    

    7. Abandonment.
      At any
      time prior to the Effective Date, this Agreement may be terminated and the
      Merger may be abandoned by the Board of Directors of SUB, if the Board of
      Directors of SUB determines for any reason in its sole judgment that the
      consummation of the transaction would be inadvisable or not in the best
      interests of SUB and its Shareholders.

    

    8. Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed to be an original and the same agreement.

    

    IN
      WITNESS WHEREOF,
      the
      undersigned Presidents, with the attestations of a Witness, of the respective
      constituent corporations, duly authorized hereunto, have executed this Agreement
      as of the date first above written.

    

    

    
      	
              Freedom
                20, Inc.

              

              /s/
                Justin Beckett

              

              By:_____________________________

              Justin
                Beckett     

              CEO      

            	
              Fluid
                Audio Networks, Inc.

               

              /s/
                Justin Beckett

               

              
                By:_____________________________

                Justin
                  Beckett

                CEO

              

            

    

    
      

    

    

    3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]