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                                                                  EXHIBIT 10.7.2

                         STANDARD OFFICE LEASE - GROSS
                  AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION
                                     [LOGO]

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

     1.1 Parties: This Lease, dated, for reference purposes only, June 20, 2001,
                                                                  --------------
is made by and between Scott Boulevard Associates, (herein called "Lessor") and
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Nassda Corporation, doing business under the name of Nassda Corporation,
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(herein called "Lessee").

     1.2 Premises: Suite Numbers(s) 205,              floors, consisting of
                                    ---  ------------
approximately 4,220 feet, more or less, as defined in paragraph 2 and as shown

on Exhibit "A" hereto (the "Premises").

     1.3 Building: Commonly described as being located at 2975 Scott Boulevard,
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in the City of Santa Clara , County of Santa Clara, State of CA, as more
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particularly described in Exhibit n/a hereto, and as defined in paragraph 2.
                                  ---
     1.4 Use: Office, sales marketing, research and development, and other
              ------------------------------------------------------------
legally related uses
--------------------------------------------------, subject to paragraph 6.

     1.5 Term: Two (2) years, Three (3) months commencing August 1, 2001
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("Commencement Date") and ending October 31, 2003, as defined in paragraph 3.
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     1.6 Base Rent: 13,715.00 per month, payable on the first day of each month,
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per paragraph 4.1
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     1.7 Base Rent Increase: On August 1, 2002 the monthly Base Rent payable
                                --------------
under paragraph 1.6 above shall be adjusted as provided in Lease Addendum.

     1.8 Rent Paid Upon Execution: $13,715.00
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for August 1 through August 31, 20001
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     1.9  Security Deposit: $27,430.00
                            ---------------------------------------------------
     1.10 Lessee's Share of Operating Expense Increase: 19.4% as defined in
                                                        -----
paragraph 4.2.

2. Premises, Parking and Common Areas.

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

     2.2 Vehicle Parking: So long as Lessee is not in default, and subject to
the rules and regulations attached hereto, and as established by Lessor from
time to time, Lessee shall be entitled to rent and use 17 parking spaces in the
                                                       --
Office Building Project at the monthly rate applicable from time to time for
monthly parking as set by Lessor and/or its licensee.

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

         2.2.2 The monthly parking rate per parking space will be $ n/a per
                                                                    ---
month.

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

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

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

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

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

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

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

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

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

3. Term.

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

   3.2 Delay in Possession. Notwithstanding said Commencement Date, if for any
reason Lessor cannot deliver possession of the Premises to Lessee on said date
and subject to paragraph 3.2.2, Lessor shall not be subject to any liability
therefor, nor shall such failure affect the validity of this Lease or the
obligations of Lesee hereunder or extend the term hereof; but in such case,
Lessee shall not be obligated to pay rent or perform any other obligation of
Lessee under the terms of this Lease, except as may be otherwise provided in
this Lease, until possession of the Premises is tendered to Lessee, as
hereinafter defined; provided, however, that if Lessor shall not have delivered
possession of the Premises within sixty (60) days following said Commencement

                                                        Initials:  SW
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                                  Page 1 of 11

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Date, as the same may be extended under the terms of a Work Letter executed
by Lessor and Lessee, Lessee may, at Lessee's option, by notice in writing to
Lessor within ten (10) days thereafter, cancel this Lease, in which event the
parties shall be discharged from all obligations hereunder, provided, however,
that, as to Lessee's obligations, Lessee first reimburses Lessor for all costs
incurred for Non-Standard Improvements and, as to Lessor's obligations, Lessor
shall return any money previously deposited by Lessee (less any offsets due
Lessor for Non-Standard Improvements); and provided further, that if such
written notice by Lessee is not received by Lessor within said ten (10) day
period, Lessee's right to cancel this Lease hereunder shall terminate and be of
no further force or effect.

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

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

        3.3  Early Possession. If Lessee occupies the Premises prior to said
Commencement Date, such occupancy shall be subject to all provisions of this
Lease, such occupancy shall not change the termination date, and Lessee shall
pay rent for such occupancy.

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

4.  Rent

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

        4.2 Operating Expense Increase. Lessee shall pay to Lessor during the
term hereof, in addition to the Base Rent, Lessee's Share, as hereinafter
defined, of the amount by which all Operating Expenses, as hereinafter defined,
for each Comparison Year exceeds the amount of all Operating Expenses for the
Base Year, such excess being hereinafter referred to as the "Operating Expense
Increase", in accordance with the following provisions:

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

             (b) "Base Year" is defined as the calendar year in which the Lease
term commences.

             (c) "Comparison Year" is defined as each calendar year during the
term of the Lease subsequent to the Base Year; provided, however, Lessee shall
have no obligation to pay a share of the Operating Expense Increase applicable
to the first twelve (12) months of the Lease Term (other than such as are
mandated by a governmental authority, as to which government mandated expenses
Lessee shall pay Lessee's Share, notwithstanding they occur during the first
twelve (12) months). Lessee's Share of the Operating Expense Increase for the
first and last Comparison Years of the Lease Term shall be prorated according to
that portion of such Comparison Year as to which Lessee is responsible for a
share of such increase.

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

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

                     (aa) The Common Areas, including their surfaces, coverings,
decorative items, carpets, drapes and window coverings, and including parking
areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways,
stairways, parkways, driveways, landscaped areas, striping, bumpers, irrigation
systems, Common Area lighting facilities, building exteriors and roofs, fences
and gates;
                     (bb) All heating, air conditioning, plumbing, electrical
systems, life safety equipment, telecommunication and other equipment used in
common by, or for the benefit of, lessees or occupants of the Office Building
Project, including elevators and escalators, tenant directories, fire detection
systems including sprinkler system maintenance and repair;

                 (ii) Trash disposal, janitorial and security services;

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

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

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

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

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

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

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

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

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

        (g) Lessee's Share of Operating Expense increase shall be payable by
Lessee within ten (10) days after a reasonably detailed statement of actual
expenses is presented to Lessee by Lessor. At Lessor's option, however, an
amount may be estimated by Lessor from time to time in advance of Lessee's Share
of the operating Expense Increase for any Comparison Year, and the same shall be
payable monthly or quarterly, as Lessor shall designate, during each Comparison
Year of the Lease term, on the same day as the Base Rent is due hereunder. In
the event that Lessee pays Lessor's estimate of Lessee's Share of Operating
Expense Increase as aforesaid, Lessor shall deliver to Lessee within sixty
(60) days after the expiration of each Comparison Year a reasonably detailed
statement showing Lessee's Share of the actual Operating Expense Increase on
said statement, Lessee shall be entitled to credit the amount of such
overpayment against Lessee's Share of Operating Expense Increase next falling
due. If Lessee's payments under this paragraph during said Comparison Year were
less than Lessee's Share as indicated on said statement, Lessee shall pay to
Lessor the amount of the deficiency within ten (10) days after delivery by
Lessor to Lessee of said statement. Lessor and Lessee shall forthwith adjust
between them by cash payment any balance determined by exist with respect to
that portion of the last Comparison Year for which Lessee is responsible as to
Operating Expense Increases, notwithstanding that the Lease term may have
terminated before the end of such Comparison Year.

4.3 Rent Increase.

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5.  Security Deposit. Lessee shall deposit with Lessor upon execution hereof the
security deposit set forth in paragraph 1.9 of the Basic Lease Provisions as
security for Lessee's faithful performance of Lessee's obligations hereunder. If
Lessee fails to pay rent or other charges due hereunder, or otherwise defaults
with respect to any provision of this Lease, Lessor may use, apply or retain all
or any portion of said deposit for the payment of any rent or other charge in
default for the payment of any other sum to which Lessor may become obligated by
reason of Lessee's default, or to compensate Lessor for any loss or damage which
Lessor may suffer thereby. If Lessor so uses or applies all or any portion of
said deposit, Lessee shall within ten (10) days after written demand therefor
deposit cash with Lessor in an amount sufficient to restore said deposit to the
full amount then required of Lessee. If the monthly Base Rent shall, from time
to time, increase during the term of this Lease, Lessee shall, at the time of
such increase, deposit with Lessor additional money as a security deposit so
that the total amount of the security deposit held by Lessor shall at the times
bear the same proportion to the then current Base Rent as the initial security
deposit bears to the initial Base Rent set forth in paragraph 1.6 of the Basic
Lease Provision. Lessor shall not be required to keep said security deposit
separate from its general accounts. If Lessee performs all of Lessee's
obligations hereunder, said deposit, or so much thereof as has not heretofore
been applied by Lessor, shall be returned, without payment of interest or other
increment for its use, to Lessee (or, at Lessor's option, to the last assignee,
if any, of Lessee's interest hereunder) at the expiration of the term hereof,
and after Lessee has vacated the Premises. No trust relationship is created
herein between Lessor and Lessee with respect to said Security Deposit.

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

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

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

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

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

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

  7.2 Lessee's Obligations.
        (a) Notwithstanding Lessor's obligation to keep the Premises in good
condition and repair, Lessee shall be responsible for payment of the cost
thereof to Lessor as additional rent for that portion of the cost of any
maintenance and repair of the Premises, or any equipment (wherever located) that
serves only Lessee or the Premises, to the extent such cost is attributable to
causes beyond normal wear and tear. Lessee shall be responsible for the cost of
painting, repairing or replacing wall coverings, and to repair or replace any
Premises improvements that are not ordinarily a part of the Building or that are
in the cost of which is otherwise Lessee's responsibility hereunder.

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

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

                                                             Initials: ________

                                  Page 3 of 11

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Lessor, Lessor may, at any time during the term of this Lease, require that
Lessee remove any part or all of the same.

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

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

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

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

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

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

8. Insurance; Indemnity.

   8.1 Liability Insurance - Lessee. Lessee shall, at Lessee's expense, obtain
and keep in force during the term of this Lease a policy of Comprehensive
General Liability Insurance utilizing an Insurance Services Office standard form
with Broad Form General Liability Endorsement (GL0404), or equivalent, in an
amount of not less than $1,000,000 per occurrence of bodily injury and property
damage combined or in a greater amount as reasonably determined by Lessor and
shall insure Lessee with Lessor as an additional insured against liability
arising out of the use, occupancy or maintenance of the Premises. Compliance
with the above requirement shall not, however, limit the liability of Lessee
hereunder.

   8.2 Liability Insurance - Lessor. Lessor shall obtain and keep in force
during the term of this Lease a policy of Combined Single Limit Bodily Injury
and Broad Form Property Damage Insurance, plus coverage against such other risks
Lessor deems advisable from time to time, insuring Lessor, but not Lessee.
against liability arising out of the ownership, use, occupancy or maintenance of
the Office Building Project in an amount not less than $5,000,000,00 per
occurrence.

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

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

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

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

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

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

<PAGE>

damages arising from any act or neglect of any other lessee, occupant or user
of the Office Building Project, nor from the failure of Lessor to enforce the
provisions of any other lease of any other lessee of the Office Building
Project.

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

9. Damage or Destruction.

     9.1 Definitions.

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

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

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

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

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

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

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

     9.2 Premises Damage; Premises Building Partial Damage.

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

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

     9.3 Premises Building Total Destruction; Office Building Project Total
Destruction. Subject to the provisions of paragraphs 9.4 and 9.5, if at any
time during the term of this Lease there is damage, whether or not it is an
Insured Loss, which falls into the classifications of either (i) Premises
Building Total Destruction, or (ii) Office Building Project Total Destruction,
then Lessor may at Lessor's option either (i) repair such damage or
destruction as soon as reasonably possible at Lessor's expense (to the extent
the required materials are readily available through usual commercial channels)
to its condition existing at the time of the damage, but not Lessee's fixtures,
equipment or tenant improvements, and this Lease shall continue in full force
and effect, or (ii) give written notice to Lessee within thirty (30) days after
the date of occurrence of such damage of Lessor's intention to cancel and
terminate this Lease, in which case this Lease shall terminate as of the date of
the occurrence of such damage.

     9.4 Damage Near End of Term.

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

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

     9.5 Abatement of Rent; Lessee's Remedies.

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

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

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

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

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

10. Real Property Taxes.

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

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

     10.3 Definition of "Real Property Tax". As used herein, the term "real
property tax" shall include any form of real estate tax or assessment, general,
special, ordinary or extraordinary, and any license fee, commercial rental tax,
improvement bond or bonds, levy or tax (other than inheritance, personal income
or estate taxes) imposed on the Office Building Project or any portion thereof
by any authority having the direct or indirect power to tax, including any city,
county, state or federal government, or any school, agricultural, sanitary,
fire, street, drainage or other improvement district thereof, as against any
legal or equitable interest of Lessor in the Office Building Project or in any
portion thereof, as against Lessor's right to rent or other income therefrom,
and as against Lessor's business of leasing the Office Building Project. The
term "real property tax" shall also include any tax, fee, levy, assessment or
charge (i) in

<PAGE>

substitution of, partially or totally, any tax, fee, levy, assessment or charge
hereinabove included within the definition of "real property tax", or (ii) the
nature of which was hereinbefore included within the definition of "real
property tax", or (iii) which is imposed for a service or right not charged
prior to June 1, 1978, or, if previously charged, has been increased since June
1, 1978, or (iv) which is imposed as a result of a change in ownership, as
defined by applicable local statutes for property tax purposes, of the Office
Building Project or which is added to a tax or charge hereinbefore included
within the definition of real property tax by reason of such change of
ownership, or (v) which is imposed by reason of this transaction, any
modifications or changes hereto, or any transfers hereof.

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

     10.5 Personal Property Taxes.

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

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

11. Utilities.

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

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

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

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

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

12. Assignment and Subletting.

     12.1 Lessor's Consent Required. Lessee shall not voluntarily or by
operation of law assign, transfer, mortgage, sublet, or otherwise transfer or
encumber all or any part of Lessee's interest in the Lease or in the Premises,
without Lessor's prior written consent, which Lessor shall not unreasonably
withhold. Lessor shall respond to Lessee's request for consent hereunder in a
timely manner and any attempted assignment, transfer, mortgage, encumbrance or
subletting without such consent shall be void, and shall constitute a material
default and breach of this Lease without the need for notice to Lessee under
paragraph 13.1. "Transfer" within the meaning of this paragraph 12 shall include
the transfer or transfers aggregating: (a) if Lessee is a corporation, more than
twenty-five percent (25%) of the voting stock of such corporation, or (b) if
Lessee is a partnership, more than twenty-five percent (25%) of the profit and
loss participation in such partnership.

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

     12.3 Terms and Conditions Applicable to Assignment and Subletting.

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

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

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

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

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

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

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

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

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

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

(C)1984 - American Industrial Real Estate Association

                               FULL SERVICE-GROSS
                                    REVISED
                                  Page 6 of 11

                                                            Initials:
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                                                            Form OFG-0/6/84E

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

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

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

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

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

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

13. Default; Remedies.

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

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

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

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

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

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

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

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

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

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

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

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

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

14. Condemnation. If the Premises or any portion thereof or the Office Building
Project are taken under the power of eminent domain, or sold under the threat of
the exercise of said power (all of which are herein called "condemnation"), this
Lease shall terminate as to the part so taken as of the date the condemning
authority takes title or possession, whichever first occurs; provided that is so
much of the Premises or the Office Building Project are taken by such
condemnation as would substantially and adversely affect the operation and
profitability of Lessee's business conducted from the Premises, Lessee shall
have the option, to be exercised only in writing within thirty (30) days after
Lessor shall have given Lessee written notice of such taking (or in the absence
of such notice, within thirty (30) days after the condemning authority shall
have taken possession), to terminate this Lease as of the date the condemning
authority takes such possession. If Lessee does not terminate this Lease in
accordance with the foregoing, this Lease shall remain in full force and effect
as to the portion of the Premises remaining, except that the rent and Lessee's
Share of Operating Expense Increase shall be reduced in the proportion that the
floor

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area of the Premises taken bears to the total floor area of the Premises. Common
Areas taken shall be excluded from the Common Areas usable by Lessee and no
reduction of rent shall occur with respect thereto or by reason thereof. Lessor
shall have the option in its sole discretion to terminate this Lease as of the
taking of possession by the condemning authority, by giving written notice to
Lessee of such election within thirty (30) days after receipt of notice of a
taking by condemnation of any part of the Premises or the Office Building
Project. Any award for the taking of all or any part of the Premises or the
Office Building Project under the power of eminent domain or any payment made
under threat of the exercise of such power shall be the property of Lessor,
whether such award shall be made as compensation for diminution in value of the
leasehold or for the taking of the fee, or as severance damages; provided,
however, that Lessee shall be entitled to any separate award for loss of or
damage to Lessee's trade fixtures, removable personal property and unamortized
tenant improvements that have been paid for by Lessee. For that purpose the cost
of such improvements shall be amortized over the original term of this Lease
excluding any options. In the event that this Lease is not terminated by reason
of such condemnation, Lessor shall to the extent of severance damages received
by Lessor in connection with such condemnation, repair any damage to the
Premises caused by such condemnation except to the extent that Lessee has been
reimbursed therefor by the condemning authority. Lessee shall pay any amount in
excess of such severance damages required to complete such repair.

15.  Broker's Fee.

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

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

     (c) Lessor agrees to pay said fee not only on behalf of Lessor but also on
behalf of any person, corporation, association, or other entity having an
ownership interest in said real property or any part thereof, when such fee is
due hereunder. Any transferee of Lessor's interest in this Lease, whether such
transfer is by agreement or by operation of law, shall be deemed to have assumed
Lessor's obligation under this paragraph 15. Each listing and cooperating broker
shall be a third party beneficiary of the provisions of this paragraph 15 to the
extent of their interest in any commission arising under this Lease and may
enforce that right directly against Lessor; provided, however, that all brokers
having a right to any part of such total commission shall be a necessary party
to any suit with respect thereto.

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

16.  Estoppel Certificate.

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

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

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

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

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

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

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

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

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

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compliance thereof with all applicable laws and regulations in effect during the
term of this Lease.

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

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

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

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

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

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

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

30.  Subordination.

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

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

31.  Attorneys' Fees.

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

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

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

32.  Lessor's Access.

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

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

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

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

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

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

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

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

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

39.  Options.

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

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

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

     39.4 Effect of Default on Options.

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

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

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

40.  Security Measures - Lessor's Reservations.

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

     40.2 Lessor shall have the following rights:

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

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

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

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

     40.3 Lessee shall not:

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

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

41.  Easements.

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

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

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

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

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

(C)1984 - American Industrial Real Estate Association         Initials:
                                                                       ---------
                               FULL SERVICE-GROSS
                                     REVISED                           ---------
                                  Page 10 of 11
                                                                Form OFG-0/6/84E

<PAGE>

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

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

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

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

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

50. PARKING AND OCCUPANCY LIMITS: Parking for cars not to exceed seventeen (17)
cars. Occupancy not to exceed twenty-eight (28) people.

51. AFTER HOUR HVAC USAGE: Rates for after hour HVAC usage are: FIFTEEN DOLLARS
($15) per hour if arranged in advance on a monthly basis. Twenty Dollars ($20)
per hour for use scheduled on a daily basis.

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

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

                LESSOR                                  LESSEE

Scott Boulevard Associates             Nassda Corporation
------------------------------------   -------------------------------------

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

By    /s/ [Illegible]                  By    /s/ Sang Wang
   ---------------------------------      ----------------------------------

Its                                    Its   Chief Executive Officer
    --------------------------------       ---------------------------------

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

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

Executed at                            Executed at        Santa Clara
            ------------------------               -------------------------

on                                     on              6/22/01
   ---------------------------------      ----------------------------------

Address                                Address    2975 Scott Blvd., #110
        ----------------------------          ------------------------------
                                                  Santa Clara, CA 95054
                                              ------------------------------

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

(C)1984 - American Industrial Real Estate Association

                               FULL SERVICE-GROSS
                                    REVISED
                                 Page 11 of 11

                                                            Initials:
                                                                      ---------

                                                                      ---------

                                                            Form OFG-0/6/84E

<PAGE>

                             STANDARD OFFICE LEASE
                                   FLOOR PLAN

                                     [LOGO]

                            [FLOOR PLAN APPEARS HERE]

                                    EXHIBIT A

----------
(C)1984 - American Industrial Real Estate Association

                               FULL SERVICE-GROSS
                                    REVISED

                                                        Initials:
                                                                  -------------

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

<PAGE>

                           RULES AND REGULATIONS FOR
                             STANDARD OFFICE LEASE

                                     [LOGO]

Dated:          June 18, 2001
       --------------------------------

By and Between       Scott Boulevard Associates and Nassda Corporation
               -----------------------------------------------------------------

                                 GENERAL RULES

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

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

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

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

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

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

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

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

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

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

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

     12.  Lessor reserves the right to close and lock the Building on Saturdays,
Sundays and legal holidays, and on other days between the hours of 6:00 P.M. and
7:30 A.M. of the following day. If Lessee uses the Premises during such periods,
Lessee shall be responsible for securely locking any doors it may have opened
for entry.

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

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

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

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

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

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

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

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

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

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

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

                                 PARKING RULES

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

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

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

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

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

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

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

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

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

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

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

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

(C)1984 - American Industrial Real Estate Association

                                   EXHIBIT B

                               FULL SERVICE-GROSS
                                    REVISED

                                  Page 1 of 1

                                                            Initials:
                                                                      ---------

                                                                      ---------

<PAGE>

                      WORK LETTER TO STANDARD OFFICE LEASE

Dated:  June 18, 2001
       ---------------

By and between:         Scott Boulevard Associates and Nassda Corporation
                ----------------------------------------------------------------

The Premises shall be constructed in accordance with Lessor's Standard
Improvements, as follows:

1.  Partitions

As is.
--------------------------------------------------------------------------------

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

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

2.  Wall Surfaces

Paint/clean as necessary.
--------------------------------------------------------------------------------

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

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

3.  Draperies

As is - in good working order.
--------------------------------------------------------------------------------

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

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

4.  Carpeting

Replace all carpeting with building standard "Aspects Premise"
--------------------------------------------------------------------------------

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

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

5.  Doors

As is - in good working order.
--------------------------------------------------------------------------------

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

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

6.  Electrical and Telephone Outlets

Electrical - As is - in good working order. Telephone outlets - As is - Lessee
--------------------------------------------------------------------------------
responsible upgrade/repair.
--------------------------------------------------------------------------------

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

7.  Ceiling

As is.
--------------------------------------------------------------------------------

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

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

8.  Lighting

All fixtures to be in good working order.
--------------------------------------------------------------------------------

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

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

9.  Heating and Air Conditioning Ducts

To be in good working order.
--------------------------------------------------------------------------------

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

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

10. Sound Proofing

As is.
--------------------------------------------------------------------------------

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

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

11. Plumbing

In good working order.
--------------------------------------------------------------------------------

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

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

12. Entrance Doors

As is - in good working order.
--------------------------------------------------------------------------------

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

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

(C)1984 - American Industrial Real Estate Association

                                   EXHIBIT C

                               FULL SERVICE-GROSS
                                    REVISED
                                  Page 1 of 2

                                                            Initials:
                                                                      ---------

                                                                      ---------

<PAGE>

(C)1984 - American Industrial Real Estate Association

                                   EXHIBIT C

                               FULL SERVICE-GROSS
                                    REVISED
                                  Page 2 of 2

                                                            Initials:
                                                                      ---------

                                                                      ---------

<PAGE>

                                     [LOGO]

                               RENT ADJUSTMENT(S)
                             STANDARD LEASE ADDENDUM

          Dated                     June 20, 2001
                ----------------------------------------------------------

          By and Between (Lessor) Scott Boulevard Associates
                                  ----------------------------------------
                                  ________________________________________

                         (Lessee) Nassda Corporation
                                  ----------------------------------------
                                  ________________________________________

          Address of Premises: 2975 Scott Boulevard, Santa Clara. CA 95054
                              --------------------------------------------
                              ____________________________________________

Paragraph  52
          ----

A.   RENT ADJUSTMENTS:

     The monthly rent for each month of the adjustment period(s) specified below
     shall be increased using the method(s) indicated below:

(Check Method(s) to be Used and Fill in Appropriately)

[X]  1.   Cost of Living Adjustment(s) (COLA)

          a.   On (Fill in COLA Dates): August 1, 2002
                                        ----------------------------------------
________________________________________________________________________________
the Base Rent shall be adjusted by the change, if any, from the Base Month
specified below, in the Consumer Price Index of the Bureau of Labor Statistics
of the U.S. Department of Labor for (select one): [_] CPI W (Urban Wage Earners
and Clerical Workers) or [X] CPI U (All Urban Consumers), for (Fill in Urban
Area): San Francisco/Oakland-All Items Minimum yearly increases will be 3%,
       --------------------------------------------------------------------
maximum yearly increase 6%. All Items (1982-l984 = 100), herein referred to as
---------------------------
"CPI".

          b.   The monthly rent payable in accordance with paragraph A.l.a. of
this Addendum shall be calculated as follows: the Base Rent set forth in
paragraph 1.5 of the attached Lease, shall be multiplied by a fraction the
numerator of which shall be the CPI of the calendar month two months prior to
the month(s) specified in paragraph A.l.a. above during which the adjustment is
to take effect, and the denominator of which shall be the CPI of the calendar
month which is two months prior to (select one): [X] the first month of the term
of this Lease as set forth in paragraph 1.3 ("Base Month") or [_] (Fill in Other
"Base Month"): ____________________.  The sum so calculated shall constitute the
new monthly rent hereunder, but in no event, shall any such new monthly rent be
less than the rent payable for the month immediately preceding the rent
adjustment.

          c.   In the event the compilation and/or publication of the CPI shall
be transferred to any other governmental department or bureau or agency or shall
be discontinued, then the index most nearly the same as the CPI shall be used
to make such calculation. In the event that the Parties cannot agree on such
alternative index, then the matter shall be submitted for decision to the
American Arbitration Association in accordance with the then rules of said
Association and the decision of the arbitrators shall be binding upon the
parties. The cost of said Arbitration shall be paid equally by the Parties.

[_]  II.  Market Rental Value Adjustment(s) (MRV)

          a.   On (Fill in MRV Adjustment Date(s):______________________________
________________________________________________________________________________

the Base Rent shall be adjusted to the "Market Rental Value" of the property as
follows:

               1)   Four months prior to each Market Rental Value Adjustment
Date described above, the Parties shall attempt to agree upon what the new MRV
will be on the adjustment date. If agreement cannot be reached within thirty
days, then:

                    (a)  Lessor and Lessee shall immediately appoint a mutually
acceptable appraiser or broker to establish the new MRV within the next thirty
days. Any associated costs will be split equally between the Parties, or

                    (b)  Both Lessor and Lessee shall each immediately make a
reasonable determination of the MRV and submit such determination, in writing,
to arbitration in accordance with the following provisions:

                         (i)   Within fifteen days thereafter, Lessor and Lessee
shall each select an [_] appraiser or [_] broker ("Consultant" - check one) of
their choice to act as an arbitrator. The two arbitrators so appointed shall
immediately select a third mutually acceptable Consultant to act as a third
arbitrator.

                         (ii)  The Three arbitrators shall within thirty days of
the appointment of the third arbitrator reach a decision as to what the actual
MRV for the Premises is, and whether Lessor's or Lessee's submitted MRV is the
closest thereto. The decision of a majority of the arbitrators shall be binding
on the Parties. The submitted MRV which is determined to be the closest to the
actual MRV shall thereafter be used by the Parties.

                         (iii) If either of the Parties fails to appoint an
arbitrator within the specified fifteen days, the arbitrator timely appointed by
one of them shall reach a decision on his or her own, and said decision shall be
binding on the Parties.

                         (iv)  The entire cost of such arbitration shall be paid
by the party whose submitted MRV is not selected, i.e. the one that is NOT the
closest to the actual MRV.

               2)   Notwithstanding the foregoing, the new MRV shall not be less
than the rent payable for the month immediately preceding the rent adjustment.

          b.   Upon the establishment of each New Market Rental Value:

               1) the new MRV will become the new "Base Rent" for the purpose of
calculating any further Adjustments, and

               2) the first month of each Market Rental Value term shall become
the new `Base Month' for the purpose of calculating any further Adjustments.

[_] III.  Fixed Rental Adjustment(s) (FRA)

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

(C)1997 - American Industrial Real Estate Association

                                RENT ADJUSTMENTS

                                  Page 1 of 2

<PAGE>

The Base Rent shall be increased to the following amounts on the dates set forth
below:

     On (Fill in FRA Adjustment Date(s)):     The New Base Rent shall be:

     _____________________________________    $_________________________________

     _____________________________________    $_________________________________

     _____________________________________    $_________________________________

     _____________________________________    $_________________________________

B.   NOTICE:

     Unless specified otherwise herein, notice of any such adjustments, other
than Fixed Rental Adjustments, shall be made as specified in paragraph 23 of the
Lease.

C.   BROKER'S FEE:

     The Brokers specified in paragraph 1.10 shall be paid a Brokerage Fee for
each adjustment specified above in accordance with paragraph 15 of the Lease.

Initials: __________                             Initials: /s/ S W
                                                           -----------------
          __________                                       /s/ [ILLEGIBLE]
                                                           -----------------

(C)1997 - American Industrial Real Estate Association

                                RENT ADJUSTMENTS

                                  Page 2 of 2

<PAGE>

                          ADDENDUM TO LEASE - Suite 205

Premises:     2975 Scott Boulevard, Suite 205
Lessor:       Scott Boulevard Associates
Lessee:       Nassda Corporation
Lease Date:   June 18, 2001

This Addendum to Lease is incorporated into and made a part of the Standard
Office Lease-Gross (the Lease), between Lessor and Lessee, for the premise
identified above. As modified by the terms of the Addendum, the provisions of
the Lease shall remain in full force and effect. The terms of this Addendum
shall control over any conflict that may exist with the provisions of the Lease.

Insert to `2.5 - Common Area - Changes

Lessee shall at all times have reasonable ingress to and egress from the
Premises and the right to the number of parking spaces set forth in this Lease,
and Lessor shall not adversely affect the utilities and services available to
Lessee hereunder as a result of exercising Lessor's reserved rights hereunder.

Insert to `3.2.2 - Delays Caused by Lessee

Lessee shall not be deemed to have caused a delay unless Lessee fails to correct
any act or omission by Lessee or its agents within 48 hours after written notice
from Lessor.

Insert to `4.2(d) - Operating Expenses

In addition, "Operating Expenses" shall not include:

     (i)   costs incurred due to the gross negligence or willful misconduct of
Lessor or its agents, employees, contractors or invitees;

     (ii)  payments made under any mortgage, deed of trust or other security
instrument which encumbers all or a portion of Lessor's interest in the Office
Building Project;

     (iii) expenses and penalties (including, without limitation, attorneys
fees) incurred due to Lessor's violation of any mortgage, deed of trust or other
security instrument described in clause (ii) above

     (iv)  the rental value of any management office, engineer's office,
mechanical spaces, and Common Areas (however, this provision shall not be
construed to limit the "load factor"

     (v)   costs incurred in connection with the removal or remediation of any
hazardous materials on, under, in or about the Premises, Building or Office
Building Project;

                                                                               1

<PAGE>

     (vi)   Leasing commission, attorneys' fees, tenant improvement costs,
marketing costs, and other costs and expenses incurred in connection with the
leasing, or the improvement for leasing, of any premises; or

     (viii) costs of Building management's automobiles and travel expenses;
professional, civic or recreational memberships; costs of seminars, conventions
or educational programs; or charitable or political contributions.

The foregoing exclusions from Operating Expenses shall not be construed to limit
Lessee's obligation under other provisions of the Lease to pay or reimburse
Lessor for expenses directly incurred as a result of Lessee's use or occupancy
of, or activities in or about, the Office Building Project.

Insert to `4.3.1 - Rent Increase

The price index to be used for determining the Base Rent adjustments specified
in this Lease shall be the Consumer Price Index of the Bureau of Labor
Statistics of the Department of Labor for All Urban Consumers, San
Francisco-Oakland-San Jose Metropolitan Area, (1982-1984 = 100)) unless changed
pursuant to section 4.3.3.

 Insert to (S)8.1 - Liability Insurance - Lessee

 Lessee's commercial general liability insurance policy shall be in an amount of
 not less than $3,000,000 per occurrence. Lessee may maintain such insurance
 through a policy providing for coverage of not less than $1,OOO,OOO combined
 single limit, with excess/umbrella insurance in an amount necessary to attain
 the required $3,000,000 minimum coverage.

 Insert to `8.7 - Indemnity and `8.8 - Exemption of Lessor from Liability

 The indemnity provided in section 8.7 and the exemption of Lessor from
 liability provided in section 8.8 shall not apply to any claim, expense, damage
 or liability arising from the negligence or willful misconduct of Lessor or
 Lessor's agents, employees, contractors or invitees.

 Insert to `10.3 - Definition of Real Property Tax

 "Real Property Taxes" shall also not include; (i) interest or penalties imposed
 as a result of Lessor's failure to pay any Real Property Tax when due; (ii)
 fees, taxes or assessments imposed on Lessor for the privilege or right to
 conduct its business in general (including, for example, fees paid for Lessor's
 business license) rather than for a permit or license to operate the Office
 Building Project or any equipment or facility therein in particular; or (iii)
 documentary transfer taxes, recording fees, dedications, exactions and other
 payments to governmental authorities in connection with the transfer, sale or
 encumbrance of Lessor's interest in all or a portion of the Office Building
 Project or the acquisition, financing or improvement of additional real Office
 Building Project to the Office Building Project.

                                                                               2

<PAGE>

Insert to '11.3 - Utilities - Hours of Service

Water and electricity shall be provided 24 hours per day, seven days per week.
Heating, ventilation and air-conditioning shall be provided between the hours of
7:30 a.m. through 6:00 p.m., Monday through Friday (holidays excepted).

Insert to `12.1 - Assignment and Subletting - Lessor's Consent Required

The term "Transfer" shall not include a

     (a)  any sale of Lessee's capital stock in any transaction which is
registered pursuant to the Securities Act of 1933, as amended, and the
regulations thereunder, or which is issued for fair value in any transaction
that is exempt from such registration requirements;

     (b)  any sale or transfer of Lessee's capital stock on any public
securities exchange; or

     (c)  any transfer of Lessee's capital stock by or among Tenant's
shareholders or members of their immediate families or any such shareholder's
testamentary or inter vivos trust or upon the death of such shareholder.

Insert to (S)12.2 - Assignment and Subletting - Lessee Affiliate

The provisions of section 12.2 notwithstanding, Lessor's consent shall be
required in the event of an assignment of the Lease or a sublease of the
Premises;

     (a)  to any corporation which controls, is controlled by or is under common
control with Lessee, or to any corporation resulting from the merger or
consolidation with Lessee if, in either case, the consolidated net worth of
Lessee and such corporation is less than $10,000,000.

     (b)  to any person or entity which acquires all the assets of Lessee as
a going concern of the business that is being conducted on the Premises.

Lessor shall not unreasonably withhold or delay its consent to any request for
approval of an assignment or subletting.

Insert to `32 - Lessor's Access

Lessor shall give Lessee reasonable notice prior to exercising its right under
this section and shall observe Lessee's reasonable security requirements;
provided that no notice shall be required for the provision of janitorial
services, security inspections or in case of emergencies. All work in or
affecting the Premises shall be done in a manner to minimize any interference
with the conduct of Lessee's business.

Insert to `49 - Attachments

                                                                               3

<PAGE>

The following documents are attached to and incorporated into this Lease:

     This Addendum
     Exhibit A - Floor Plan
     Exhibit B - Rules and Regulations
     Exhibit C - Work Letter
     Option to Extend Suite 205

                                                                               4

<PAGE>

                          Option to Extend - Suite 205

NOW, THEREFORE, in consideration of the forgoing and the mutual covenants
hereinafter contained, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledge, the parties hereto
agree as follows:

1. Grant of Option: Lessor hereby grants to Lessee the option (the "Option") to
   ----------------
extend the term of the Lease for one period of three (3) years commencing on
November 1, 2003 and ending on October 31, 2006 (the "Option Period"), on and
subject to each of the following terms and conditions:

2. Notice: To exercise the Option, Lessee must give written notice of exercise
   -------
to Lessor at least one hundred twenty (120) days prior to the date on which the
term of the Option would commence, time being of the essence.

3. Rent: The monthly Base Rent during the Option Period shall be set at the
   -----
"Market Rental value" existing at the commencement of the Option Term. "Market
Rental Value" shall mean the monthly base rental prevailing under leases in
Santa Clara, California for office space that is comparable to the Premises
(taking into account age, size, location, status of improvement and other
relevant factors) for delivery at or about the commencement date of the Option
Term. Lessor shall give Lessee written notice of its good faith determination of
Market Rental Value within fifteen (15) days after receiving Lessee's notice of
Option exercise. In the event that Lessee disagrees with Lessor's determination
of Market Rental Value, then Lessor and Lessee shall meet and attempt to reach
agreement on the Market Rental Value. If Lessor and Lessee are unable to agree
on the Market Rental Value within fifteen (15) days after Lessee receives
Lessor's notice specifying the Market Rental Value, the Option will become null
and void.

4. Oration Period Base Year: During the Option Period, the Base Year under
   -------------------------
section 4.2(b) of the Lease shall be adjusted to the calendar year in which the
Option Period commences (i.e., 2003).

5. Other Terms: As expressly modified by the provisions of this Amendment, all
   ------------
of the terms and conditions of the Lease shall continue to apply during the
Option Period.

6. Conditions to Option: The Option shall be subject to the provisions of
   ---------------------
paragraph 39, including those relating the Lessee's Default set forth in
paragraph 39.4 of the Lease.

7. Personal to Lessee: The Option is personal to the original Lessee and cannot
   -------------------
be assigned or exercised by anyone other than original Lessee or Lessee
Affiliate as defined in section 12.2 of the Lease and only while the original
Lessee or Lessee Affiliate is in pull possession of the Premises.

                                                                          1

<PAGE>

8. Concurrence: The Option may be exercised concurrently with the option for
   ------------
Suite 110 and 109 unless otherwise agreed to by both Lessor and Lessee. The
option may not be exercised prior to the exercise or Option for Suite 110 and
109.

9. As modified by the provisions of its Amendment, all of the terms and
conditions of this Lease shall continue in full force and effect.

10. Each Party represents and warrants to the other that it is duly authorized
to enter into this Amendment and perform its obligations without the consent or
approval of any other party and that the person signing on its behalf is duly
authorized to sign on behalf of such party.

Lessor and Lessee have caused this Amendment to be executed and delivered by
their respective duly authorized offices on the date set forth beneath their
signatures hereto.

Lessor:                                   Lessee:

Scott Boulevard Associates                Nassda Corporation

By: /s/ [ILLEGIBLE]                       By: /s/ Sang Wang
   ---------------------------------         ----------------------------------

Name:_______________________________      Name:   Sang Wang
                                               --------------------------------

Title: [ILLEGIBLE]                        Title:  CEO
      ------------------------------            -------------------------------

Date:     6/22/01                         Date:   6/22/01
     -------------------------------           --------------------------------<PAGE>
                                                                    EXHIBIT 10.8

                         EXCLUSIVE DISTRIBUTOR AGREEMENT

THIS AGREEMENT made this 1 day of October, 1999, by and between Nassda
Corporation, a California corporation with its principal place of business at
625 Ellis Street, Suite 206, Mountain View, CA 94043, U.S.A. ("Company"), and
Marubeni Solutions Corporation, a Japanese corporation with its principal place
of business at Higashi 1-26-20, Shibuya-ku, Tokyo 150-0011, Japan
("Distributor").

     WHEREAS Company wishes to develop export sales of its Software products
defined below;

     WHEREAS Company wishes to appoint Distributor as Company's exclusive
distributor of its Software products in the Territory defined below;

     AND WHEREAS Distributor wishes to act as Company's exclusive distributor of
said Software products;

     NOW, THEREFORE, in consideration of the mutual covenants contained herein,
the parties agree as follows:

1.  DEFINITIONS
    -----------

1.1 Purchase Note(s): "Purchase Note(s)"  shall mean order form or forms of
    ----------------
Distributor which shall be furnished pursuant to Section 4.1 hereof.

1.2 Software: "Software" shall mean those proprietary computer programs
    --------
specified in Schedule A, in machine-readable form furnished by Company to
             ----------
Distributor pursuant to this Agreement, including the Software user manual and
Software specifications in machine readable, printed or other form, and also
including any other updates or enhancements to the foregoing.

1.3 Territory: "Territory" shall mean the country known as Japan.
    ----------

1.4 Warranty Period: "Warranty Period" shall mean a period of [***] months from
    ---------------
the date of the customer's acceptance to Software.

2.  APPOINTMENT
    -----------

2.1 Appointment: Company hereby appoints Distributor as its exclusive
    -----------
distributor in Territory for Software and the related support services therefor,
and Distributor hereby accepts such appointment. Company shall not appoint any
person or entity other than Distributor as its distributor, representative or
agent for Software in Territory. Company shall not sell, transfer, license or
otherwise make available Software to any person or entity other than Distributor
in Territory.

2.2 Inquiries: Any inquiry or order received directly or indirectly by Company
    ---------
originating from Territory with respect to Software shall be promptly referred
to Distributor.

3.   TERM
     ----
     Subject to Section 11 hereof, this Agreement shall remain in effect for a
period of one (1) year commencing on the date first written above and shall be
automatically renewed thereafter on a year-to-year basis unless either party
provides written notice to the other party of its intention not to renew this
Agreement at least [***] prior to the expiration of the original term of
this Agreement or any renewal thereof.

[***] Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

<PAGE>

4.   PAYMENT TERMS
     -------------

4.1  Orders: Company shall furnish Software to Distributor in accordance with
     ------
Purchase Notes submitted to Company. Purchase Notes shall be binding upon the
parties unless Company otherwise notifies Distributor in writing within seven
(7) days after Company's receipt of each Purchase Note. In case of terms and
conditions on each Purchase Note deviate from the provisions on this Agreement,
such Purchase Note shall be required Company's prior written consent. In the
event of any discrepancy between the provisions of this Agreement and any
Purchase Note, the provisions of such Purchase Note shall prevail.

4.2  Prices: Distributor shall pay to Company the prices for Software furnished
     ------
to Distributor hereunder. The currently effective price shall be in listed in
Schedule A. The prices for all Software shall include the cost of packaging for
----------
export. Such prices shall be discounted at the rates set forth in Schedule B.
[***] shall have the [***] to request [***] than [***] set [***] in order to
[***] Distributor to [***] a [***] for [***] in Territory. Any increase of the
prices in Schedule A shall be effective no sooner than [***] after the date
          ----------
of Company's written notice therefor to Distributor. Any decrease of the prices
thereof shall become effective on the date of the Company's written notice.

4.3  Payment: All invoices from Company shall be submitted to Distributor.
     -------
Payment of the prices shall be made by Distributor directly to Company on a
[***] basis from the invoice date.

4.4  Shipment: Software shall be shipped to Distributor and contained in media
     --------
(e.g. floppy disc or magnetic tape) on [***] at [***] address as first written
above, basis.

4.5  Initial Order: Distributor shall submit Purchase Note for [***] copies of
     -------------
Software including all options for distribution purpose.

4.6 Demo Copy: Within two (2) weeks after date first written above, Company
    ---------
shall, [***], provide [***] Software licenses to Distributor, which
Distributor shall use for product demonstration purpose. [***] floating licenses
will be used in Distributor's Tokyo office and [***] floating license in
Distributor's Kansai Office. Distributor will pay [***] license maintenance fee
for [***]. [***] needs to be [***] for the second and the third licenses, [***]
for the first license [***] the [***] year.

5.   SUB-LICENSE
     -----------
     Distributor shall execute with its customer a sub-license agreement which
meets the requirements set forth in Schedule C. Distributor shall keep the
                                    ----------
records up-to-date regarding any sub-licenses hereunder and shall make such
records available to Company at Distributor's premises during regular business
hours.

6.   WARRANTIES
     ----------

6.1  Warranties: Company warrants that it is the exclusive owner of, or has the
     ----------
right to license, Software and related documentation. Company also warrants that
each Software will perform in accordance with Company's published specifications
for Warranty Period. Company shall, in accordance with Section 10 hereof provide
Distributor with any enhancements to Software [***] during the Warranty
Period and shall use due diligence to correct any bugs or functional

[***] Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

<PAGE>

defects in Software immediately upon receipt of notice from Distributor of such
bugs or defects. Distributor shall give immediate written notice to Company upon
discovering any defect or being informed of any such bugs or defects by
Customers, and Company's obligation under this warranty shall be to correct or
replace Software containing such bugs or defects [***]. All charges, including,
but not limited to, freight and custom duties, shall be borne by [***] incurred
for replacement of any Software under this Section 6.1.

6.2  Maintenance: Upon Distributor's request, Company shall provide to
     -----------
Distributor at rates specified in Schedule B maintenance services for Software,
                                  ----------
including, but not limited to, answers to routine questions, technical
assistance and advice in the installation and day-to-day use and application of
Software and the provisions of updates or enhancements of Software.

7.   INTELLECTUAL PROPERTY
     ---------------------

7.1  Title to Software: Title to and ownership of Software including all
     -----------------
patents, copyrights and other property rights applicable thereto shall at all
times remain solely and exclusively with Company. Company shall not assign or
transfer such title or ownership in whole or in part without the prior written
or consent of Distributor. Distributor acknowledges that Company has proprietary
interests in Software, and shall not remove or obscure any copyright, patent,
trademark, trade secret or similar notice affixed to any Software.

7.2  Infringement: Company shall, at its expense, defend any suit or proceeding
     ------------
brought against Distributor which is based on a claim that Software or any part
thereof furnished under this Agreement constitutes an infringement of any
intellectual property right, including, but not limited to, patent, copyright or
trademark, of any third party. Company shall indemnify Distributor for all
damages and costs including reasonable attorney's fees, incurred by Distributor
due to such claim or proceeding. In addition to the foregoing, Company shall:
(a) procure for Distributor the right to continue distributing and its customers
the rights to continue using Software; (b) replace same with a non-infringing
Software; or grant Distributor a refund for infringing Software.

8.   UPDATES, ENHANCEMENTS AND DISCONTINUATIONS
     ------------------------------------------

     Company will provide Distributor pursuant to Sub-Section 6.2 hereof, or
[***] during the Warranty Period, with copies of any updates to Software
released by Company for the purpose of correcting Defects, as well as any
enhancements to Software. Company shall notify Distributor of the release of any
new software products produced by Company which are similar to or competitive
with Software and such new products shall be made available for sub-licensing
hereunder and added to Schedule A. Company shall notify Distributor immediately
                       ----------
in the case of updates, enhancements or new products and at least [***] in
advance in the event Company discontinues the distribution of any Software.

9.   MODIFICATIONS
     -------------

     In the event Customers or prospective customers of Distributor request the
modifications to Software and such request is useful to accelerate the
distribution hereunder, Company shall exercise [***] effort to respond to such
request.

10.  WITHOLDING TAX
     --------------

     In accordance with the "Convention between the United States of America and
Japan for the

[***] Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

<PAGE>

Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect
to Taxes on Income" dated March 8, 1971, income tax or duties will be imposed
by the Japanese Government on payments of Software license fees to Company under
this Agreement in the nature of withholding. Distributor may deduct such amount
of tax or duty (ten percent (10%) of price) from the relevant payment to Company
and pay the same to the Japanese Government for the account of Company.

11.   TERMINATION
      ------------

11.1  Termination: Upon the occurrence of any one of the following events, the
      -----------
party not responsible for the event of termination specified below shall, upon
giving the other party written notice and without further obligation other than
as expressly specified herein, have the right to terminate this Agreement; (a)
material breach by either party in fulfilling any one or more of the obligations
undertaken by it pursuant to this Agreement which breach is not cured within
thirty (30) days after notice; (b) either party is declared insolvent or
bankrupt, or makes an assignment of a substantial portion of its assets for the
benefit of creditors; or a trustee, receiver or other officer of court is
appointed to control a substantial portion of the assets of the other party, or
if bankruptcy, liquidation or reorganization proceedings are instituted by or
against the other party; or (c) subject to Section 13 hereof, either party is
prevented from fulfilling its obligations hereunder for a period in excess of
thirty (30) days as a result of the occurrence of an event of Force Majeure.

11.2  Duties upon Termination: Upon the expiration or termination of this
      -----------------------
Agreement for any reason whatsoever: (a) Company shall be responsible for the
provision of all Software support to Customers in Territory and bear all
expenses related thereto; and (b) Company shall reimburse Distributor all prices
paid for all copies of Software and documentation, manuals, etc., related to
Software in Distributor's possession, including all charges for return of the
same to Company.

11.3 Compensation: In the event this Agreement is terminated by, or for
     ------------
reasons attributable to, Company, Distributor shall submit a list of prospective
customers to Company. In the event Company or its designee enters into a
licensing arrangement with any of the customers on such list within [***] after
the day such list is submitted to Company, Company or its designee shall pay
Distributor commission at the rate of [***] of the amount paid by such customer
or customers. Company shall remit such commission by telegraph transfer
remittance to Distributor by Company within [***] after the execution of such
licensing arrangement.

12.  CONFIDENTIALITY
     ---------------

     Company and Distributor agree that, in addition to Software, certain
information supplied by each to the other during the course of this Agreement
may be proprietary or confidential. All such information shall be clearly marked
"confidential", shall be held in confidence by the receiving party during the
Term of this Agreement and shall be used only for the purpose of this Agreement.
All documentation with respect to Software is furnished solely for Distributor's
and Customer's internal use. Distributor may make, and may permit Customers to
make, copies of such documentation to satisfy its internal requirements and
those of Customers, provided that all such copies include an appropriate
copyright and proprietary information notice. All such documentation, and all
copies thereof, shall be maintained in secure premises by Distributor and
Customers, and Distributor and Customers shall take all appropriate measures to
prevent the

[***] Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

<PAGE>

unauthorized disclosure thereof. The confidentiality obligations set forth
herein shall not apply to: (a) disclosures of information required by law; (b)
information known to either party hereto prior to the date first above-written
and not obtained directly from the other party; (c) information required by
Distributor for the purpose of marketing Software in Territory; or (d)
information which now or later becomes available to the public, provided such
occurrence is not the result of an improper act or omission of either party.

13.  FORCE MAJEURE
     -------------
     Any delay or failure in the performance of any part or the whole of this
Agreement by either party hereto shall be excused, subject to Sub-Section 15
hereof, if and to the extent caused by earthquake, typhoon, or other natural
disaster, war, warlike condition, revolution, blockade, embargo or governmental
order, rule or restriction, and the affected part of this Agreement shall be
suspended until the force majeure circumstances have ended.

14.  ASSIGNMENT
     ----------
     Neither this Agreement nor any part hereof may be assigned by either party
without the other party's prior written consent, and any such attempted
assignment shall be null and void. If such other party consents as stated above,
any potential assignee must agree to abide by the terms and conditions of this
Agreement. "Assignment" shall be deemed to include the transfer of substantially
all the assets of, or majority interest in the voting stock of, either party, or
the merger of either party with one or more third parties.

15.  NON-WAIVER
     ----------
     The failure of either party to enforce at any time any provision(s) of this
Agreement shall in no way be considered a waiver of such provision(s), nor shall
such failure affect the validity of this Agreement in any way. The failure of
either party to exercise any such provision(s) shall not be construed as a
waiver of any continuing or succeeding breach of such provision, a waiver of the
provision itself, or a waiver of any other right under this Agreement.

16.  NOTICES
     -------
     Any notice required to be given hereunder shall be in writing and in
English and sent to the addresses first above-written, or such other addresses
as are notified in writing by the parties, by registered mail, cable, telex or
telecopy. Notices shall be deemed to have been given upon the expiration of
seven (7) days after mailing as aforesaid to the addressee (when sent by
registered mail), upon receipt by the addressee (when delivered by hand), on the
next day (when sent by cable) upon confirmation of receipt by answer-back code
(when sent by telex) or upon transmission (when sent by telecopy).

17.  GOVERNING LAW AND TRADE TERMS
     -----------------------------
     This Agreement shall be governed by and construed in accordance with the
laws of State of California, but specifically excluding the provisions of the
1980 U.N. Convention on Contracts for the International Sales of Goods. The
trade terms under this Agreement shall be governed by and interpreted in
accordance with the provisions of the International Commercial Terms
(INCOTERMS), as amended.

18.  ARBITRATION
     -----------
     All disputes, controversies or differences which may arise between the
parties in connection

<PAGE>

with this Agreement shall be settled first by mutual discussion and, only if
that is unavailing, then by arbitration pursuant to the Japan-American Trade
Arbitration Agreement of September 16, 1952, as in force on the date of this
Agreement, by which each party hereto is bound. The place of arbitration shall
be Tokyo, Japan if the demand for arbitration was made by Company and San
Francisco, CA, U.S.A. if such demand was made by Distributor. The award rendered
in the arbitration shall be final and conclusive.

19.  SEVERABILITY
     ------------
     The provisions of this Agreement shall be deemed severable, and if any
provision of this Agreement is found to be invalid by any body of competent
jurisdiction, such invalidity shall not affect the validity of the remaining
provisions hereof.

20.  IMPORT AND EXPORT REGULATIONS
     -----------------------------
     The parties hereto acknowledge and understand that the United States Export
Administration Regulations shall restrict or forbid the re-export of the
Software supplied hereunder and the technical data related thereto from
Territory to other destination specified in such Regulations without the prior
approval of the United States Government. Distributor agrees that it shall
comply any and all provisions of such Regulations and any other applicable laws
and shall also maintain the necessary records required by such Regulations or
such laws.

21.  STATUS OF PARTIES
     -----------------
     The relationship of the parties under this Agreement shall be and at all
times remain one of independent contractors. Neither party shall have the right
to hold itself out to third parties as a representative of, or to enter into
contracts on behalf of, the other party without the prior written consent of the
other party. No agency is to be created by this Agreement.

22.  SECTION HEADINGS
     ----------------
     The section headings used in this Agreement are inserted for the purpose of
convenience only and shall not be construed to limit or extend any provision
hereof.

23.  ENTIRE AGREEMENT
     ----------------
     This Agreement, together with Schedules A through C attached hereto and
made integral parts hereof, constitute the entire agreement between Company and
Distributor and supersede all prior agreement or understanding with respect to
the subject matters hereof. This Agreement shall not be amended, altered or
changed except by a written agreement signed by the parties hereto.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
in duplicate by their duly authorized officers or representatives on the date
first above-written.

Nassda Corporation                               Marubeni Solutions Corporation

/s/  [***]                                       /s/  [***]
------------------------                         ------------------------

By:   [***]                                      By:   [***]
    --------------------                             --------------------

Its:  [***]                                      Its:  [***]
    --------------------                             --------------------

Date: Oct. 1, 1999                               Date: Oct. 1, 1999
     -------------------                              --------------------

[***] Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

<PAGE>

                                   SCHEDULE A
                                   ----------
                               Products and Prices
                               -------------------

<TABLE>
<CAPTION>
                                               Floating                   15% Annual                 Time Based
Product Description                       Perpetual License             Maintenance Fee             Lease Program
-------------------                       -----------------             ---------------             -------------
<S>                                       <C>                           <C>                         <C>
HSIM-SC
(simulates up to 100K transistors)              [***]                        [***]

HSIM-MS
(simulates up to 10M transistors)               [***]                        [***]                      [***]

HSIM-XL
(no elements limitation)                        [***]                        [***]

nWare  Debussy
(Waveform viewer by Novas Software)             [***]                        [***]

</TABLE>

[***]

[***] Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

<PAGE>

                                   SCHEDULE B
                                   ----------
                        Discount Rate & Maintenance Fees
                        ---------------------------------

1.   Discount Rate: [***] discount on the Price List in Schedule A.
     -------------                                      ----------

     *Remark: Both [***] shall [***] and determine [***] for every [***]. If
[***] the [***], then the [***] for the [***] shall be [***]. Both parties
acknowledge and agree that the [***] provided above shall be the [***], but not
constitute any [***] of [***].

2.   Maintenance Fees: The maintenance fees shall be listed in Schedule A.
     ----------------                                          ----------
The [***] discount rate shall be applied to such maintenance fees.

[***] Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

<PAGE>

                                   SCHEDULE C
                                   ----------
                          TERMS OF SUBLICENSE AGREEMENT
                         -----------------------------

Distributor's Sublicense Agreement shall provide, among other things, that:

(a)  The sublicense shall be non-exclusive, non-transferable and, in principle,
     (unless terminated in accordance with the provisions set forth in the
     Sublicense Agreement) perpetual (excluding Time Based License);

(b)  Each sublicense of Software shall be for use only on a single, designated
     CPU (for Node-Lock) or on the designated network with authorized number of
     users (for Floating);

(c)  The customer shall not make copies of Software, except for use on the
     designated CPU or for back-up or archival purposes;

(d)  Company shall retain all title, copyright and other proprietary rights in
     and to Software, including any and all copies, modifications, translations
     and other derivative works that duplicate or are based on Software;

(e)  The customer shall limit use of and access to Software to such of
     customer's employees or contractual persons as are required to be involved
     in the operation and maintenance thereof, provided that the customer shall
     take all reasonable actions as may be necessary to preserve the
     confidentiality of the Software and prevent transfer or disclosure thereof
     to others;

(f)  The customer shall not remove or modify any copyright or proprietary rights
     notice included in or on Software and shall reproduce all such notices on
     any copies of Software or portions thereof, in any form, which customer may
     make;

(g)  The customer shall not decompile, disassemble, or attempt in any way to
     reverse engineer Software;

(h)  The customer shall not directly or indirectly export or re-export any
     Software without first obtaining Distributor's written approval and any
     necessary United States and/or Japanese export license; and

(i)  In addition to the terms and conditions set forth in this Schedule C,
                                                               ----------
     Distributor may include any other terms and conditions in the sublicense
     agreement, provided that such terms and conditions: (i- 1) are, except to
     the extent required by any applicable law in the Territory, consistent with
     the terms and conditions set forth in any subsections above; (i-2) do not
     expand Company's obligations beyond those set forth in the body of this
     Agreement; and (i-3) do not authorize Distributor to incur any liabilities,
     obligations or commitments on behalf of Company.

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