Document:

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                                                                   EXHIBIT 10.13

                                STANDARD SUBLEASE

                   American Industrial Real Estate Association

1. PARTIES. This Sublease, dated, for reference purposes only, September 5,
1997, is made by and between Telesensory, a California corporation (herein
called "Sublessor") and Matrix Micro Assembly Corporation a California
corporation (herein called "Sublessee")

2. PREMISES. Sublessor hereby subleases to Sublessee and Sublessee hereby
subleases from Sublessor for the term, at the rental, and upon all of the
conditions set forth herein, that certain real property situated in the County
of Santa Clara State of California, commonly known as 522 Almanor and described
as a portion of an approximately 82,544 square foot tilt-up concrete building.
APPROXIMATELY 20,731 RENTABLE SQUARE FEET PER EXHIBIT B CONSISTING OF Said real
property, including the land and all improvements thereon, is hereinafter called
the "Premises"

        3.1 TERM. The term of this Sublease shall be for sixty-three (63) months
commencing on October 15, 1997 and ending on January 14, 2003 unless sooner
terminated pursuant to any provision hereof

        3.2 DELAY IN COMMENCEMENT. Notwithstanding said commencement date, if
for any reason Sublessor cannot deliver possession of the Premises to Sublessee
on said date, Sublessor shall not be subject to any liability therefore, nor
shall such failure affect the validity of this Lease or the obligations of
Sublessee hereunder or extend the term hereof, but in such case Sublessee shall
not be obligated to pay rent until possession of the Premises is tendered to
Sublessee, provided, however, that if Sublessor shall not have delivered
possession of the Premises within sixty (60) days from said commencement date,
Sublessee may, at Sublessee's option, by notice in writing to Sublessor within
ten (10) days thereafter, cancel this Sublease, in which event the parties shall
be discharged from all obligations thereunder. If Sublessee occupies the
Premises prior to said commencement date, such occupancy shall be subject to all
provisions hereof, such occupancy shall not advance the termination date and
Sublessee shall pay rent for such period at the initial monthly rates set forth
below.

        See Addendum 1, items A and B.

Rent for any period during the term hereof which is for less than one month
shall be a prorata portion of the monthly installment. Rent shall be payable in
lawful money of the United States to Sublessor at the address stated herein or
to such other persons or at such other places as Sublessor may designate in
writing.

5. SECURITY DEPOSIT. Sublessee shall deposit with Sublessor upon execution
hereof $32,000.00 as security for Sublessee's faithful performance of
Sublessee's obligations hereunder. If Sublessee fails to pay rent or other
charges due hereunder, or otherwise defaults with respect to any provision of
this Sublease. Sublessor may use, apply or retain all or any portion of said
deposit for the payment of any rent or other charge in default or for the
payment of any other sum to which Sublessor may become obligated by reason of
Sublessee's default, or to compensate Sublessor for any loss or damage which
Sublessor may suffer thereby. If Sublessor so uses or applies all or any portion
of said deposit. Sublessee shall within ten (10) days after written demand
therefore deposit cash with Sublessor in an amount sufficient to restore said
deposit to the full amount hereinabove stated and Sublessee's failure to do so
shall be a material breach of this Sublease Sublessor shall not be

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required to keep said deposit separate from its general accounts. If Sublessee
performs all of Sublessee's obligations hereunder, said deposit, or so much
thereof as has not theretofore been applied by Sublessor, shall be returned,
without payment of interest or other increment for its use to Sublessee (or at
Sublessor's option, to the last assignee, if any, of Sublessee's interest
hereunder) at the expiration of the term hereof, and after Sublessee has vacated
the Premises No trust relationship is created herein between Sublessor and
Sublessee with respect to said Security Deposit.

6. USE.

        6.1 Use The Premises shall be used and occupied only for as per
paragraph 11A of the Master Lease and for no other purpose

        6.2 COMPLIANCE WITH LAW.

               (a) Sublessor warrants to Sublessee that the Premises, in its
existing state, but without regard to the use for which Sublessee will use the
premises, does not violate any applicable building code regulation or ordinance
at the time that this Sublease is executed. In the event that it is determined
?? this warranty has been violated, then it shall be the obligation of the
Sublessor, after written notice from Sublessee, to promptly at Sublessor's sole
cost and expense, rectify any such violation. In the event that Sublessee does
not give to Sublessor written notice of the violation of this warranty within 1
year from the commencement of the term of this Sublease, it shall be
conclusively deemed that such violation did not exist and the correction of the
same shall be the obligation of the Sublessee.

               (b) Except as provided in paragraph 6.2(a), Sublessee shall, at
Sublessee's expense, comply promptly with all applicable statutes ordinances,
rules regulations, orders, restrictions of record, and requirements in effect
during the term or any part of the term hereof regulating the use by Sublessee
of the Premises Sublessee shall not use or permit the use of the Premises in any
manner that will tend to create waste or a nuisance or, if there shall be more
than one tenant of the building containing the Premises, which shall tend to
disturb such other tenants.

        6.3 CONDITION OF PREMISES. Except as provided in paragraph 6.2(a)
Sublessee hereby accepts the Premises in their condition existing as of the date
of the execution hereof, subject to all applicable zoning, municipal, county and
state laws, ordinances, and regulations governing and regulating the use of the
Premises, and accepts this Sublease subject thereto and to all matters disclosed
thereby and by any exhibits attached hereto Sublessee acknowledges that neither
Sublessor nor Sublessor's agents have made any representation or warranty as to
the suitability of the Premises for the conduct of Sublessee's business.

7. MASTER LEASE

        7.1 Sublessor is the lessee of the Premises by virtue of a lease,
hereinafter referred to as the "Master Lease", a copy of which is attached
hereto marked Exhibit 1, dated August 1, 1997 wherein Pace Properties, a
California Limited Partnership is lessor, hereinafter referred to as the "Master
Lessor"

        7.2 This Sublease is and shall be at all times subject and subordinate
to the Master Lease

        7.3 The terms, conditions and respective obligations of Sublessor and
Sublessee to each other under this Sublease shall be the terms and conditions of
the Master Lease except for those provisions of the Master Lease which are
directly contradicted by this Sublease in which event the terms of this Sublease
document shall control over the Master Lease. Therefore, for the purposes of
this Sublease, wherever in the Master Lease the word "Lessor" is used it shall
be deemed to mean the Sublessor herein and wherever in the Master Lease the word
"Lessee" is used it shall be deemed to mean the Sublessee herein.

        7.4 During the term of this Sublease and for all periods subsequent for
obligations which have arisen prior to the termination of this Sublease
Sublessee does hereby expressly assume and agree to perform and comply with for
the benefit of Sublessor and Master Lessor, each and ever obligation of
Sublessor under the Master Lease which are not superceded by provisions of this
Sublease.

(c) American Industrial Real Estate Association 1978

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        7.5 The obligations that Sublessee has assumed under paragraph 7.4
hereof are hereinafter referred to as the "Sublessee's Assumed Obligations". The
obligations that Sublessee has not assumed under paragraph 7.4 hereof are
hereinafter referred to as the "Sublessor's Remaining Obligations".

        7.6 Sublessee shall hold Sublessor free and harmless of and from all
liability, judgments, costs, damages claims or demands, including reasonable
attorneys fees, arising out of Sublessee's failure to comply with or perform
Sublessee's Assumed Obligations.

        7.7 Sublessor agrees to maintain the Master Lease during the entire term
of this Sublease, subject, however to any earlier termination of the Master
Lease without the fault of the Sublessor, and to comply with or perform
Sublessor's Remaining Obligations and to hold Sublessee free and harmless of and
from all liability, judgments, costs, damages, claims or demands arising out of
Sublessor's failure to comply with or perform Sublessor's Remaining Obligations.

        7.8 Sublessor represents to Sublessee that the Master Lease is in full
force and effect and that no default exists on the part of any party to the
Lease

8. ASSIGNMENT OF SUBLEASE AND DEFAULT.

        8.1 Sublessor hereby assigns and transfers to Master Lessor the
Sublessor's interest in this Sublease and all rentals and income arising
therefrom, subject however to terms of Paragraph 8.2 hereof.

        8.2 Master Lessor, by executing this document, agrees that until a
default shall occur in the performance of Sublessor's Obligations under the
Master Lease, that Sublessor may receive, collect and enjoy the rents accruing
under this Sublease. However, if Sublessor shall default in the performance of
its obligations to Master Lessor then Master Lessor may, at its option, receive
and collect, directly from Sublessee all rent owing and to be owed under this
Sublease Master Lessor shall not, by reason of this assignment of the Sublease
nor by reason of the collection of the rents from the Sublessee, be deemed
liable to Sublessee for any failure of the Sublessor to perform and comply with
Sublessor's Remaining Obligations.

        8.3 Sublessor hereby irrevocably authorizes and directs Sublessee, upon
receipt of any written notice from the Master Lessor stating that a default
exists in the performance of Sublessor's obligations under the Master Lease, to
pay to Master Lessor the rents due and to become due under the Sublease
Sublessor agrees that Sublessee shall have the right to rely upon any such
statement and request from Master Lessor and that Sublessee shall pay such rents
to Master Lessor without any obligation or right to inquire as to whether such
default exists and notwithstanding any notice from or claim from Sublessor to
the contrary and Sublessor shall have no right or claim against Sublessee for
any such rents so paid by Sublessee.

        8.4 No changes or modifications shall be made to this Sublease without
the consent of Master Lessor.

9. CONSENT OF MASTER LESSOR.

        9.1 In the event that the Master Lease requires that Sublessor obtain
the consent of Master Lessor to any subletting by Sublessor then this Sublease
shall not be effective unless, within 10 days of the date hereof, Master Lessor
signs this Sublease thereby giving its consent to this Subletting.

        9.2 In the event that the obligations of the Sublessor under the Master
Lease have been guaranteed by third parties then this Sublease nor the Master
Lessor's consent, shall not be effective unless, within 10 days of the date
hereof, said guarantors sign this Sublease thereby giving guarantor consent to
this Sublease and the terms thereof.

        9.3 In the event that Master Lessor does give such consent then.

               (a) Such consent will not release Sublessor of its obligations or
after the primary liability of Sublessor to pay the rent and perform and comply
with all of the obligations of Sublessor to be performed under the Master Lease.

               (b) The acceptance of rent by Master Lessor from Sublessee or any
one else liable under the Master Lease shall not be deemed a waiver by Master
Lessor of any provisions of the Master Lease.

               (c) The consent to this Sublease shall not constitute a consent
to any subsequent subletting or assignment.

               (d) In the event of any default of Sublessor under the Master
Lease, Master Lessor may proceed directly against Sublessor, any guarantors or
any one else liable under the Master Lease or this Sublease without first
exhausting Master Lessor's remedies against any other person or entity liable
thereon to Master Lessor.

               (e) Master Lessor may consent to subsequent sublettings and
assignments of the Master Lease or this Sublease or any amendments ??
modifications thereto without notifying Sublessor nor any one else liable under
the Master Lease and without obtaining their consent and such action shall not
relieve such persons from liability.

               (f) In the event that Sublessor shall default in its obligations
under the Master Lease, then Master Lessor and Sublessee shall each attorn to
the other and shall execute such documents as may be required to effectuate that
relationship in which event Master Lessor shall undertake the obligations of
Sublessor under this Sublease from the time of the exercise of said option to
termination of this Sublease but Master Lessor shall

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not be liable for any prepaid rents nor any security deposit paid by Sublessee,
nor shall Master Lessor be liable for any other defaults of the Sublessor under
the Sublease.

        9.4 The signatures of the Master Lessor and any Guarantors of Sublessor
at the end of this document shall constitute their consent to the terms of this
Sublease.

        9.5 Master Lessor acknowledges that, to the best of Master Lessor's
knowledge, no default presently exists under the Master Lease of obligations to
be performed by Sublessor and that the Master Lease is in full force and effect.

        9.6 In the event that Sublessor defaults under its obligations to be
performed under the Master Lease by Sublessor, Master Lessor agrees to deliver
to Sublessee a copy of any such notice of default Sublessee shall have the right
to cure any default of Sublessor described in any notice of default within ten
days after service of such notice of default on Sublessee. If such default is
cured by Sublessee then Sublessee shall have the right of reimbursement and
offset from and against Sublessor.

10. BROKERS FEE.

11. ATTORNEY'S FEES. If any party or the Broker named herein brings an action to
enforce the terms hereof or to declare rights hereunder, the prevailing party in
any such action, on trial and appeal, shall be entitled to his reasonable
attorney's fees to be paid by the losing party as fixed by the Court. The
provision of this paragraph shall inure to the benefit of the Broker named
herein who seeks to enforce a right hereunder.

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12. ADDITIONAL PROVISIONS. [If there are no additional provisions draw a line
from this point to the next printed word after the space left here If there are
additional provisions place the same here.]

        Addendum 1 is attached and made a part of this Sublease and is comprised
        of items A through N, Exhibit A, Exhibit B

        IF THIS SUBLEASE HAS BEEN FILLED IN IT HAS BEEN PREPARED FOR SUBMISSION
        TO YOUR ATTORNEY FOR HIS APPROVAL. NO REPRESENTATION OR RECOMMENDATION
        IS MADE BY THE REAL ESTATE BROKER OR ITS AGENTS OR EMPLOYEES AS TO THE
        LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS SUBLEASE OR
        THE TRANSACTION RELATING THERETO.

Executed at                            Telesensory, a California corporation
           --------------------        -------------------------------------
on 9/29/97                             By /s/ Signature Illegible
   -------

address 455 North Bernardo Avenue      By
        -------------------------        ---------------------------------------
Mountain View, CA 94086                "Sublessor" (Corporate Seal)
-----------------------

Executed at                            Matrix Micro Assembly Corp., a
           ----------------------      ------------------------------
                                       California Corporation

on 9/26/97                             By /s/ Signature Illegible
   -------
address 3350 Scott Boulevard, #49      By
        -------------------------        ---------------------------------------

Santa Clara, CA 95054                  "Sublessee" (Corporate Seal)
---------------------

Executed at                            Pace Properties, a California Limited
           ----------------------      -----------------------------------------
                                       Partnership

on 10-1-97                             By
-------                                   --------------------------------------

address 1505 Wessex Avenue             By /s/ Signature Illegible
        ------------------

Los Altos, CA 94024                    "Master Lessor" (Corporate Seal)
-------------------

Executed at
           ----------------------      -----------------------------------------
on
   ------------------------------      -----------------------------------------
address
        -------------------------      -----------------------------------------
                                       "Guarantors"
---------------------------------
                                                                    Form 401 778

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, 345 So. Figueroa St. M-1, Los Angeles, CA 90071 (213)
        687-8777.

(c) 1978 - by American Industrial Real Estate Association All rights reserved No
part of these works may be reproduced in any form without permission in writing

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                             ADDENDUM 1 TO SUBLEASE

        This Addendum 1 shall be attached to and made a part of that certain
        Sublease by and between Telesensory Corporation, a California
        corporation ("Sublessor") and Matrix Micro Assembly Corporation, a
        California corporation ("Sublessee") for that certain Premises located
        at 520 Almanor, Sunnyvale, California, dated September 5, 1997, for
        reference purposes only.

        A.     Rent Schedule

               The parties acknowledge and understand that the exact measurement
               of the demised Premises remains to be determined as provided in
               Item 2 of the Sublease, which may not occur until after occupancy
               by Sublessee. The parties will initially use twenty thousand
               (20,000) square feet as their best approximation of the size of
               the demised Premises, but all payments made or due as Rent shall
               be adjusted (up or down as the case may be) following the final
               determination of the size of the Premises, such adjustments to be
               due and payable to Sublessor, or credited to Sublessee, at the
               next Rental due date following such determination. Rent payable
               by Sublessee to Sublessor for use of the premises shall be due
               and payable in advance on the first day of each month, with
               appropriate pro-ration for the second the last months of the
               tenancy, as follows.

                 During the first 3 months:           $0.80 per square foot.
                 During the 4th through 15th months:  $1.40 per square foot.
                 During the 16th through 27th months: $1.45 per square foot.
                 During the 28th through 39th months: $1.50 per square foot.
                 During the 40th through 51st months: $1.55 per square foot.
                 During the 52nd through 63rd months: $1.60 per square foot.

        B.     Sublessee shall pay Sublessor upon the execution hereof
               Forty-eight Thousand and 00/100ths Dollars ($48,000.00), which
               shall be applied as base rent for the such portion of the rent
               due for the first 3-4 months as it will cover, upon determination
               of the actual size of the Premises.

        C.     Sublessee shall, in addition, be liable for the actual cost of
               telephone service and any other utilities or services directly
               provided or metered to, or for the sole benefit of, the demised
               Premises; and a proportionate share (based on square footage) of
               all building or yard exterior maintenance (including landscaping
               services), commonly-metered utilities (electricity, gas, water)
               and those common-area charges and any other cost, taxes, etc.)
               for which Sublessor is obligated to reimburse Master Lessor under
               the Master Lease. If in Sublessor's sole discretion Sublessee's
               use of electrical and or water is in excess of that normally used
               for light manufacturing then Landlord may require Sublessee to
               install at Sublessee's cost, separate meters in the sublet
               premises and to pay their actual use of same.*

        D.     Condition of Premises - Allowance for Tenant Improvements

               Notwithstanding the provisions of item 6.3, Sublessor will, at
               its own expense and in conformance with applicable law, construct
               a demising wall in the approximate location shown on the attached
               Exhibit B, which shall be substantially completed prior to the
               occupancy date stated herein. In addition, Sublessor shall
               provide Sublessee with an allowance of One Hundred Seventeen
               Thousand Five Hundred and 00/100ths Dollars ($117,500.00) for the
               purpose of permitting Sublessee to construct its own interior
               improvements in the demised premises.

* However, should the Sublessee seperate the power, the Sublessor will provide
the Sublessee with $5,000.00 of the cost of the demising. As part of the
electrical seperation process, the Sublessor hereby gives the Sublessee the
right to remove various electrical transformers and panels in the Sublessor's
space and place them in the Sublessee's space. The Sublessor will have the right
to review and approve the removal of any specific item from its space.

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               TENANT IMPROVEMENTS SHALL BE HANDLED AS PER PARAGRAPH 13.
               ALTERATIONS. Any such improvements for which such Landlord's
               agreement cannot be obtained shall be deemed special and unique
               to Sublessee's occupancy and use, shall not be paid for out of
               the allowance provided by Sublessor, and shall be removed at
               Sublessee's expense at the termination of its tenancy, if
               required by either Sublessor or Master Lessor. Sublessee or
               Sublessee's general contractor shall be required prior to
               commencement of construction to post a performance bond in the
               amount of the tenant improvement contract to be performed by
               Sublessee's contractor. Sublessee shall provide conditional and
               unconditional lien releases from all contractors, subcontractors
               and material suppliers in accordance with CC section 3262 and
               shall provide certificates of completion for work for which
               payment is requested. Upon receipt of these, Sublessor shall pay
               these approved costs and invoices within ten (10) days of receipt
               until the improvement allowance is used.

               The stage of completion of any such Sublessee improvements shall
               not be a factor deemed to cause a delay in delivery of possession
               pursuant to item 3.2 of the Sublease.

        E.     Parking. Sublessee shall be entitled to a proportionate number of
               unassigned parking spaces on the premises as relate to the area
               of the demised premises as a portion of the whole premises, to be
               located in reasonable proximity to the various entrances to the
               demised premises, and SUBLESSOR SHALL PROVIDE SUBLESSEE SIXTY
               (60) PARKING SPACES IN CLOSE PROXIMITY TO THE SUBLET PREMISES

        F.     Signage. Sublessee shall be entitled to install, at its own
               expense and in the vicinity of the demised Premises, such signage
               as is permitted by the Master Lease and the City of Sunnyvale. In
               any case where such signage is limited by sign area, Sublessee
               shall be entitled to its own sign area in the same proportion as
               the demised Premises bear to the entire premises at 520 Almanor.

        G.     Brokerage Fee: Sublessor and Sublessee acknowledge that CPS and
               Grubb and Ellis are the only brokers involved in this transaction
               and that each shall indemnify the other against any and all
               claims of brokers other than CPS and Grubb and Ellis. CPS
               represents only the Sublessor and Grubb and Ellis represents only
               the Sublessee and neither represents the others' client.

        H.     After architects determination of the size of the Premises as
               outlined in Paragraph 2 of the sublease, the Sublessee's
               proportionate share of additional costs and expenses shall be
               determined by dividing this determination by 82,544 (e.g. 20,000
               / 82,544 = 24.23%). 25.1% 20,731/82544

        I.     Sublessee shall not be entitled to share any bonus rent in the
               event of a sublease (modification of paragraph 26E Master Lease).

        J.     Permitted Alterations: Sublessee shall not be allowed to make any
               alterations to the Premises without the prior written consent of
               Sublessor and master lessor (modification of Paragraph 13F Master
               Lease).

        K.     Holding Over: In the event of a hold over, Sublessee shall pay
               Sublessor 120% of the monthly rent payable during the last month
               of the term of the Sublease.

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        M.     Sublessee shall have an option to extend the term of the Sublease
               throughout the remainder of the initial term under the Master
               Lease, if written notice is received by Sublessor no earlier than
               Two Hundred Ten (210) days, nor later than One Hundred Eighty
               (180) days prior to the expiration of the initial Sublease term.
               The rent shall be at the then current market for similar
               buildings with similar tenant improvements and amenities in the
               Sunnyvale area, but in no event less than the last month's rent
               payable under the initial Sublease, and shall increase by six
               cents ($0.06) per square foot per month at each 12th month
               anniversary thereafter.

        N.     Should Sublessor elect to vacate and sublease the Premises which
               it occupies while this Sublease is still in effect, and Sublessee
               is not in default under the Sublease, Sublessee shall have a
               Right of First Refusal to sublease Sublessor's Premises, subject
               to, Master Lessor's approvals as would be required for any
               sublessee under the Master Lease.

                                *except those constructed at Sublessee's expense

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<PAGE>   9

                                   EXHIBIT "A"

                                      LEASE

                                 BY AND BETWEEN

                PACE PROPERTIES, A CALIFORNIA LIMITED PARTNERSHIP

                                   (Landlord)

                                       AND

                TELESENSORY CORPORATION, A CALIFORNIA CORPORATION

                                    (Tenant)

                     For the 82,554 Square Feet Premises at

                     520 Almanor Avenue, Sunnyvale, CA 94086

                                                                       APPROVED:

<PAGE>   10
                                      LEASE

                                Table of Contents

<TABLE>
<CAPTION>
PARAGRAPH                                                                PAGE
---------                                                                ----
<S>                                                                      <C>
1. PARTIES                                                               1

2. PREMISES                                                              1

3. DEFINITIONS                                                           1

               A. Alterations
               B. Building

               C. (Intentionally Left Out)
               D. Commencement Date
               E. Common Area

               F. HVAC
               G. Interest Rate
               H. Landlord's Agents
               I. Monthly Rent
               J. Real Property Taxes
               K. Rent
               L. Security Deposit
               M. Assignment and Sublease
               N. Tenant Improvements
               O. Tenant Improvements Allowance
               P. Tenant's Percentage
               Q. Tenant's Personal Property
               R. Term

4. LEASE TERM                                                            2

               A. Term

               B. Alternative Term Provisions
               C. Commencement Date Memorandum
               D. Tenant Delays
               E. Early Entry
               F. Termination

5. RENT                                                                  3

               A. Monthly Rent
               B. Adjustments
               C. Additional Rent
               D. Prorations

6. LATE PAYMENT CHARGES                                                  4

7. SECURITY DEPOSIT                                                      4

8. HOLDING OVER                                                          4

9. TENANT IMPROVEMENTS                                                   4

10. CONDITIONS OF PREMISES                                               5

11. USE OF THE PREMISES                                                  5

               A. Tenant's Use
               B. Compliance

12. QUIET ENJOYMENT                                                      6

13. ALTERATIONS                                                          6

               A. Permitted Alterations
               B. Notice
</TABLE>

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        7.5 The obligations that Sublessee has assumed under paragraph 7.4
hereof are hereinafter referred to as the "Sublessee's Assumed Obligations. The
obligations that Sublessee has not assumed under paragraph 7.4 hereof are
hereinafter referred to as the "Sublessor's Remaining Obligations.

        7.6 Sublessee shall hold Sublessor free and harmless of and from all
liability, judgments, costs, damages claims or demands, including reasonable
attorneys fees, arising out of Sublessee's failure to comply with or perform
Sublessee's Assumed Obligations.

        7.7 Sublessor agrees to maintain the Master Lease during the entire term
of this Sublease, subject, however to any earlier termination of the Master
Lease without the fault of the Sublessor, and to comply with or perform
Sublessor's Remaining Obligations and to hold Sublessee free and harmless of and
from all liability, judgments, costs, damages, claims or demands arising out of
Sublessor's failure to comply with or perform Sublessor's Remaining Obligations.

        7.8 Sublessor represents to Sublessee that the Master Lease is in full
force and effect and that no default exists on the part of any party to the
Master Lease.

8. ASSIGNMENT OF SUBLEASE AND DEFAULT.

        8.1 Sublessor hereby assigns and transfers to Master Lessor the
Sublessor's interest in this Sublease and all rentals and income arising
therefrom subject however to terms of Paragraph 8.2 hereof.

        8.2 Master Lessor, by executing this document, agrees that until a
default shall occur in the performance of Sublessor's Obligations under the
Master Lease that Sublessor may receive, collect and enjoy the rents accruing
under this Sublease. However, I Sublessor shall default in the performance of
its obligations to Master Lessor then Master Lessor may, at its option, receive
and collect, directly from Sublessee all rent owing and to be owed under this
Sublease Master Lessor shall not, by reason of this assignment of the Sublease
nor by reason of the collection of the rents from the Sublessee, be deemed
liable to Sublessee for any failure of the Sublessor to perform and comply with
Sublessor's Remaining Obligations.

        8.3 Sublessor hereby irrevocably authorizes and directs Sublessee, upon
receipt of any written notice from the Master Lessor stating that a default
exists in the performance of Sublessor's obligations under the Master Lease, to
pay to Master Lessor the rents due and to become due under the Sublease
Sublessor agrees that Sublessee shall have the right to rely upon any such
statement and request from Master Lessor and that Sublessee shall pay such rents
to Master Lessor without any obligation or right to inquire as to whether such
default exists and notwithstanding any notice from or claim from Sublessor to
the contrary and Sublessor shall have no right or claim against Sublessee for
any such rents so paid by Sublessee.

        8.4 No changes or modifications shall be made to this Sublease without
the consent of Master Lessor.

9. CONSENT OF MASTER LESSOR.

        9.1 In the event that the Master Lease requires that Sublessor obtain
the consent of Master Lessor to any subletting by Sublessor then this Sublease
shall not be effective unless, within 10 days of the date hereof, Master Lessor
signs this Sublease thereby giving its consent to this Subletting.

        9.2 In the event that the obligations of the Sublessor under the Master
Lease have been guaranteed by third parties then this Sublease, nor the Master
Lessor's consent, shall not be effective unless, within 10 days of the date
hereof, said guarantors sign this Sublease thereby giving guarantors consent to
this Sublease and the terms thereof.

        9.3 In the event that Master Lessor does give such consent then

               (a) Such consent will not release Sublessor of its obligations or
alter the primary liability of Sublessor to pay the rent and perform and comply
with all of the obligations of Sublessor to be performed under the Master Lease.

               (b) The acceptance of rent by Master Lessor from Sublessee or any
one else liable under the Master Lease shall not be deemed a waiver by Master
Lessor of any provisions of the Master Lease.

               (c) The consent to this Sublease shall not constitute a consent
to any subsequent subletting or assignment.

               (d) In the event of any default of Sublessor under the Master
Lease, Master Lessor may proceed directly against Sublessor, any guarantors or
any one else liable under the Master Lease or this Sublease without first
exhausting Master Lessor's remedies against any other person or entity liable
thereon to Master Lessor.

               (e) Master Lessor may consent to subsequent sublettings and
assignments of the Master Lease or this Sublease or any amendments or
modifications thereto without notifying Sublessor nor any one else liable under
the Master Lease and without obtaining their consent and such action shall not
relieve such persons from liability.

               (f) In the event that Sublessor shall default in its obligations
under the Master Lease, then Master Lessor at its option and without being
obligated to do so, may require Sublessee to attorn to Master Lessor in which
event Master Lessor shall undertake the obligations of Sublessor under this
Sublease from the time of the exercise of said

<PAGE>   12

option to termination of this Sublease but Master Lessor shall not be liable for
any prepaid rents nor any security deposit paid by Sublessee, nor shall Master
Lessor be liable for any other defaults of the Sublessor under the Sublease.

        9.4 The signatures of the Master Lessor and any Guarantors of Sublessor
at the end of this document shall constitute their consent to the terms of this
Sublease.

        9.5 Master Lessor acknowledges that, to the best of Master Lessor's
knowledge, no default presently exists under the Master Lease of obligations to
be performed by Sublessor and that the Master Lease is in full force and effect.

        9.6 In the event that Sublessor defaults under its obligations to be
performed under the Master Lease by Sublessor Master Lessor agrees to deliver to
Sublessee a copy of any such notice of default Sublessee shall have the right to
cure any default of Sublessor described in any notice of default within ten days
after service of such notice of default on Sublessee. If such default is cured
by Sublessee then Sublessee shall have the right of reimbursement and offset
from and against Sublessor.

10. BROKERS FEE.

11. ATTORNEY'S FEES. If any party or the Broker named herein brings an action to
enforce the terms hereof or to declare rights hereunder, the prevailing party in
any such action on trial and appeal, shall be entitled to his reasonable
attorney's fees to be paid by the losing party as fixed by the Court. The
provision of this paragraph shall inure to the benefit of the Broker named
herein who seeks to enforce a right hereunder.

<PAGE>   13
<TABLE>
<CAPTION>
PARAGRAPH                                                                   PAGE
---------                                                                   ----
<S>                                                                          <C>
26. ASSIGNMENT AND SUBLETTING                                                14

               A. Landlord's Consent
               B. Assignment and Sublease Form
               C. No Waiver
               D. Information to be Furnished
               E. Landlord's Alternatives

               F. Sublease or Assignment Profit and Expenses
               G. Executed Counterpart

27. DEFAULT                                                                  15

               A. Tenant's Default
               B. Remedies
               C. Landlord's Default

28. SUBORDINATION                                                            16

                A. Documentation
                B. Attornment

29. NOTICES                                                                  17

30. ATTORNEYS' FEES                                                          17

31. ESTOPPEL CERTIFICATES                                                    17

32. TRANSFER OF THE PREMISES BY LANDLORD                                     18

33. LANDLORD'S RIGHT TO PERFORM TENANT'S COVENANTS                           18

34. TENANT'S REMEDY                                                          18

35. MORTGAGEE PROTECTION                                                     18

36. BROKERS                                                                  18

37. ACCEPTANCE                                                               19

38. RECORDING                                                                19

39. QUITCLAIM                                                                19

40. MODIFICATIONS FOR LENDER                                                 19

41. PARKING                                                                  19

42. LEASE CONTINGENCY                                                        19

43. OPTION TO EXTEND TERM                                                    19

44. GENERAL                                                                  20

               A. Captions
               B. Executed Copy
               C. Time
               D. Separability
               E. Choice of Law

               F. Gender; Singular, Plural
               G. Binding Effect
               H. Waiver
               I. Entire Agreement
               J. Authority
               K. Exhibits

TABLE OF EXHIBITS

               EXHIBIT A The Premises
               EXHIBIT B Work Letter Agreement and Plans
               EXHIBIT C Commencement Date Memorandum
</TABLE>

                                       iii

<PAGE>   14
                                      LEASE

        1. Parties.

        This Lease (the "Lease"), dated, for reference purposes only, August 1,
        1997, is entered into by and between Pace Properties ("Landlord"), whose
        address is 1505 Wessex Avenue, Los Altos, California, 94024 and
        TeleSensory, Corporation, A California Corporation ("Tenant"), whose
        address is 455 N Bernardo Avenue, Mountain View, California, 94086.

        2. Premises.

        Landlord hereby leases to Tenant and Tenant hereby leases from Landlord
those certain premises consisting of approximately eighty two thousand five
hundred fifty four (82,554) square feet, as shown in EXHIBIT A (the "Premises")
in that certain building, commonly known as 520 Almanor Avenue in the City of
Sunnyvale, County of Santa Clara, California, 94086, (the "Building") as further
defined in Paragraph 3.B., located on that certain real property consisting of
approximately four and forty-seven hundredths (4.47) acres (the "Property"),
together with a right in common to the Common Area as defined Paragraph 3.E. The
Building and the Property are collectively the Premises.

        3. Definitions.

        The following terms shall have the following meanings in this Lease:

        A. Alterations. Any alterations, additions or improvements made in, on
or about the Building or the Premises after the Commencement Date, including,
but not limited to, lighting, heating, ventilating, air conditioning,
electrical, partitioning, drapery and carpentry installations.

        B. Building. That certain concrete tilt-up building on the Premises
consisting of approximately eighty two thousand five hundred fifty four (82,554)
square feet.

        C. (Intentionally left blank)

        D. Commencement Date. The Commencement Date of this Lease shall be the
first day of the Lease term determined in accordance with Paragraph 4.A. or
4.B., as the case may be.

        E. Common Area. All areas and facilities within the Property provided
and designated by Landlord for the general use and convenience of Tenant and
other tenants and occupants of any part of the Property, including, without
limitation, those portions of the Building for the general use and convenience
of all tenants of the Building such as hallways, stairs, elevators, entrances
and exits, rest rooms, appurtenant equipment serving the Building,
fire/sprinkler alarm systems, parking areas, sidewalks, landscaped areas,
service areas, trash disposal facilities, and similar areas and facilities,
subject to the reasonable rules and regulations and changes therein from time to
time promulgated by Landlord governing the use of the Common Area.

        F. HVAC. Heating, ventilating and air conditioning.

        G. Interest Rate. Ten percent (10%) per annum, however, in no event to
exceed the maximum rate of interest permitted by law.

        H. Landlord's Agents. Landlord's authorized agents, partners,
subsidiaries, directors, officers, and employees.

        I. Monthly Rent. The rent payable pursuant to Paragraph 5.A., as
adjusted from time to time pursuant to the terms of this Lease.

        J. Real Property Taxes. Any form of assessment, license, fee, rent tax,
levy, penalty (if a result of Tenant's delinquency), or tax (other than net
income, estate, succession, inheritance, transfer or franchise taxes), imposed
by any authority having the direct or indirect power to tax, or by any city,
county, state or federal government or any improvement or other district or
division thereof, whether such tax is: (i) determined by the area of the
Premises or any part thereof or the rent and other sums payable hereunder by
Tenant or by other tenants, including, but not limited to, any gross income or
excise tax levied by any of the foregoing authorities with respect to receipt of
such rent or other sums due under this Lease; (ii) upon any legal or equitable
interest of Landlord in the property or

                                        1

<PAGE>   15
the Premises or any part thereof; (iii) upon this transaction or any document to
which Tenant is a party creating or transferring any interest in the Premises;
(iv) levied or assessed in lieu of, in substitution for, or in addition to,
existing or additional taxes against the Premises whether or not now customary
or within the contemplation of the parties; or (v) surcharged against the
parking area.

        K. Rent. Monthly Rent plus the Additional Rent defined in Paragraph 5.B.

        L. Security Deposit. That amount paid by Tenant pursuant to Paragraph 7.

        M. Assignment or Sublease. An Assignment or a Sublease shall be as
defined in California Civil Code Section 1995.020(e).

        N. Tenant Improvements. Those certain improvements to the Premises to be
constructed by Landlord pursuant to EXHIBIT B.

        O. Tenant Improvements Allowance. The cost allowance provided by
Landlord for the construction of the Tenant Improvements as further described in
EXHIBIT B.

        P. Tenant's Percentage. The percentage of the area of the Premises to
the total area of the Building. Tenant's Percentage is agreed to be one hundred
percent (100%) for the purpose of this Lease.

        Q. Tenant's Personal Property. Tenant's trade fixtures, furniture,
equipment and other personal property in the Premises.

        R. Term. The term of this Lease set forth in Paragraph 4.A., as it may
be extended hereunder pursuant to any options to extend granted herein.

        4. Lease Term.

               A. Term. The Term shall be a period of eight (8) years and zero
(0) months, beginning on the Commencement Date of August 1, 1997, subject to the
provisions of Paragraph 4.B., and terminating on July 31, 2005, unless sooner
terminated. Tenant agrees that if Landlord, for any reason whatsoever, is unable
to deliver possession of the Premises on the Commencement Date, Landlord shall
not be liable to Tenant for any loss or damage therefrom, nor shall this Lease
be void or voidable except as provided for in paragraph 4.F. In such event, the
Commencement Date, termination date and all other dates of this Lease shall be
extended to conform to the time of Landlord's tender of possession of the
Premises to Tenant and Tenant shall not be obligated to pay Monthly Rent or
other sums due Landlord hereunder until possession of the Premises is tendered
to Tenant.

               B. Alternative Term Provisions. If at the date of execution of
this Lease, Landlord and Tenant have agreed that Landlord shall construct or
install any Tenant Improvements to the Premises as set forth in EXHIBIT B the
Commencement Date shall be determined as provided in this Paragraph 4.B., and
the termination date shall be eight (8) years and zero (0) months after the
Commencement Date. The Commencement Date of this Lease shall be the later of the
following:

                      (i) Ten (10) days after the date Landlord's architect and
general contractor have both certified in writing to Tenant that all work
described in the plans approved by Landlord and Tenant for the Tenant
Improvements to be constructed pursuant to EXHIBIT B has been substantially
completed in accordance with such plans and the permit has been successfully
finaled by the City; or

                      (ii) sixty (60) days after the execution of the Lease has
passed, but in no event later than,

                      (iii) The date Tenant commences occupancy of the Premises
for the purpose of conducting Tenant's business as defined in paragraph 11.A.

               C. Commencement Date Memorandum. If the Commencement Date is
determined pursuant to Paragraph 4.B. when the actual Commencement Date is
determined, the parties shall execute a Commencement Date Memorandum setting
forth such date in the form shown in EXHIBIT C.

               D. Tenant Delays. If the Commencement Date is to be determined
pursuant to Paragraph 4.B. and if the Commencement Date has not occurred on or
before August 1, 1997, due to the fault of Tenant, then, beginning on September
1, 1997 and continuing on the first day of each calendar month thereafter until
the Commencement Date, Tenant shall

                                        2

<PAGE>   16
pay to Landlord the Monthly Rent set forth in Paragraph 5.A. Payments for any
partial month shall be prorated on the basis of a thirty (30) day month. Delays
"due to the fault" of Tenant shall include those caused by:

                      (i) Tenant's failure to furnish information to Landlord
for the preparation of plans and drawings for the Tenant Improvements in
accordance with EXHIBIT B;

                      (ii) Tenant's request for special materials, finishes or
installations which are not readily available;

                      (iii) Tenant's failure to reasonably approve plans and
working drawings in accordance with EXHIBIT B;

                      (iv) Tenant's changes in plans and/or working drawings
after their approval by Landlord;

                      (v) Tenant's failure to approve cost estimates if such
approvals are required pursuant to EXHIBIT B;

                      (vi) Tenant's failure to complete any of its own
improvement work to the extent Tenant delays completion by the City of its final
inspection and approval of the Tenant Improvement Work described in EXHIBIT B;
or

                      (vii) Interference with Landlord's work caused by Tenant
or by Tenant's contractors or subcontractors.

               E. Early Entry. Tenant is permitted to occupy the Premises prior
to the Commencement Date for the purpose of fixturing or any other purpose
permitted by Landlord, such early entry shall be at Tenant's sole risk and
subject to all the terms and provisions hereof, except for the payment of
Monthly Rent which shall commence on the Commencement Date. Landlord shall have
the right to impose such additional conditions on Tenant's early entry as
Landlord shall deem appropriate, and shall further have the right to require
that Tenant execute an early entry agreement containing such conditions prior to
Tenant's early entry.

               F. Termination. Either party, at its option, may terminate this
Lease by giving written notice of its election to terminate to the other party
if the Commencement Date has not occurred on or before November 1, 1997 through
no fault of the terminating party. If Landlord is unable to delivery the
Premises for reasons not enumerated in paragraph 4.D. and Tenant elects to
terminate, then monies paid to Landlord by Tenant shall be refunded within ten
(10) days of Landlord's receipt of Tenant's termination notice.

        5. Rent.

               A. Monthly Rent. Tenant shall pay to Landlord, in lawful money of
the United States, for each calendar month of the Term, Monthly Rent in the
amount of subject to adjustment as provided in Paragraph 5.B., in advance, on
the first day of each calendar month, without abatement, deduction, claim,
offset, prior notice or demand. Landlord hereby acknowledges receipt of Tenant's
payment of Monthly Rent for the first month of the Term in the amount of
One-hundredths Dollars ($ ).

               B. Adjustments. On the first day of every twelfth (12) calendar
month of the Term the Monthly Rent shall be adjusted as follows:

<TABLE>
<CAPTION>
                   Months                  Monthly Rent
                   ------                  ------------
<S>                                        <C>
                   13-24                   $
                   25-36                   $
                   37-48                   $
                   49-60                   $
                   61-72                   $
                   73-84                   $
                   85-96                   $
</TABLE>

               C. Additional Rent. All monies required to be paid by Tenant
under this Lease, including, without limitation, Real Property Taxes pursuant to
Paragraph 15., repair and maintenance charges pursuant to Paragraph 17.,
however, the repair and maintenance

                                        3

<PAGE>   17
responsibilities of the Tenant will not include the replacement of capital
improvements, and insurance premiums pursuant to Paragraph 22., shall be deemed
Additional Rent.

               D. Prorations. If the Commencement Date is not the first (1st)
day of a month, or if the termination date of this Lease is not the last day of
a month, a prorated installment of Monthly Rent based on a thirty (30) day month
shall be paid for the fractional month during which the Lease commences or
terminates.

        6. Late Payment Charges.

Tenant acknowledges that late payment by Tenant to Landlord of Rent and other
charges provided for under this Lease will cause Landlord to incur costs not
contemplated by this Lease, the exact amount of such costs being extremely
difficult or impracticable to fix. Such costs include, but are not limited to,
processing and accounting charges, and late charges that may be imposed on
Landlord by the terms of any encumbrance and notes secured by any encumbrance
covering the Premises, or late charges and penalties due to late payment of Real
Property Taxes due on the Premises. Therefore, if any installment of Rent or any
other charge due from Tenant is not received by Landlord within ten (10) days of
the date when due, Tenant shall pay to Landlord an additional sum equal to five
percent (5%) of the amount overdue as a late charge for every month or portion
thereof that the Rent or other charges remain unpaid. The parties agree that
this late charge represents a fair and reasonable estimate of the costs that
Landlord will incur by reason of default with respect to the overdue amount, nor
prevent Landlord from exercising any of the other rights and remedies available
to Landlord.

Initials:

/s/ Signature Illegible
-----------------------               --------------------
Landlord                              Tenant

        7. Security Deposit.

Tenant has deposited with Landlord the sum of ( ) as the Security Deposit for
the full and faithful performance of every provision of this Lease to be
performed by Tenant. If Tenant defaults with respect to any provision of this
Lease, Landlord may apply all or any part of the Security Deposit for the
payment of any Rent or other sum in default, the repair of such damage to the
Premises or the payment of any other amount which Landlord may spend or become
obligated to spend by reason of Tenant's default or to compensate Landlord for
any other loss or damage which Landlord may suffer by reason of Tenant's default
to the full extent permitted by law. If any portion of the Security Deposit is
so applied, Tenant shall, within ten (10) days after written demand therefor,
deposit cash with Landlord in an amount sufficient to restore the Security
Deposit to its original amount, and Tenant's failure to do so shall be a default
under this Lease. The Security Deposit, at all times during the initial lease
term of the Lease or any extension thereto, shall be equal to the then current
Monthly Rent. The difference in the Security Deposit amount shall be paid by
Tenant on the first day of the month the Monthly Rent increases. Landlord shall
not be required to keep the Security Deposit separate from its general funds,
and Tenant shall not be entitled to interest on the Security Deposit. If Tenant
is not otherwise in default, the Security Deposit or any balance thereof shall
be returned to Tenant within thirty (30) days of termination of the Lease.

        8. Holding Over.

If Tenant remains in possession of all or any part of the Premises after the
expiration of the Term, with the express or implied consent of Landlord, such
tenancy shall be month-to-month only and shall not constitute a renewal or
extension for any further term. In such event, Monthly Rent shall be increased
to an amount equal to one hundred twenty percent (120%) of the Monthly Rent
payable during the last month of the Term, and any other sums due hereunder
shall be payable in the amount and at the times specified in this Lease. Such
month-to-month tenancy shall be subject to every other term, condition, and
covenant contained herein.

        9. Tenant Improvements.

If Tenant Improvements are to be constructed, within the Premises by Landlord,
Landlord agrees to construct such Tenant Improvements pursuant to the terms of
EXHIBIT B. All improvements constructed by Landlord pursuant to Exhibit B shall
be the sole property of Landlord and Tenant shall have no responsibility to
remove the same at the termination of the Lease or any extension thereof.

                                        4

<PAGE>   18
        10. Condition of Premises.

Landlord has agreed to construct Tenant Improvements and deliver the Premises in
accordance with Exhibit B, and within ten (10) days after Tenant has received
written notice from Landlord that substantial completion of the Tenant
Improvements has occurred, Tenant shall conduct a walk through inspection of the
Premises with Landlord and complete a punch-list of items needing additional
work by Landlord. Other than the items specified in the punch-list, by taking
possession of the Premises, Tenant shall be deemed to have accepted the Premises
in good, clean and completed condition and repair, subject to all applicable
laws, codes and ordinances except for latent defects not discoverable without
destructive investigation. The punch-list to be prepared by Tenant shall not
include any damage to the Premises caused by Tenant's move-in, which damage
shall be repaired or corrected by Tenant, at its-expense. Tenant acknowledges
that neither Landlord nor its Agents have made any representations or warranties
as to the suitability or fitness of the Premises for the conduct of Tenant's
business or for any other purpose, nor has Landlord or its Agents agreed to
undertake any Alterations or construct any Tenant Improvements to the Premises
except as expressly provided in this Lease. If Tenant fails to submit a
punchlist to Landlord within such ten (10) day period, it shall be deemed that
there are no items needing additional work or repair. Landlord's contractor
shall complete all reasonable punch-list items within thirty (30) days after the
walk through inspection or as soon as practicable thereafter. Upon completion of
such punch-list items, Tenant shall approve such completed items in writing to
Landlord. If Tenant fails to approve such items within seven (7) days of
completion, such items shall be deemed approved by Tenant.

        11. Use of the Premises.

               A. Tenant's Use. Tenant shall use the Premises solely for the
general office, sales, marketing, electronic manufacturing, assembly and test,
research and development, shipping and receiving purposes and related legal
purposes and shall not use the Premises for any other purpose without obtaining
the prior written consent of Landlord.

               B. Compliance.

                      (i) Tenant shall not use the Premises or suffer or permit
anything to be done in or about the Premises which will in any way conflict with
any law, statute, zoning restriction, ordinance or governmental law, rule,
regulation or requirement of duly constituted public authorities now in force or
which may hereafter be in force, or the requirements of the Board of Fire
Underwriters or other similar body now or hereafter constituted relating to or
affecting the condition, use or occupancy of the Premises. Tenant shall not
commit any public or private nuisance or any other act or thing which might or
would disturb the quiet enjoyment of any other tenant of Landlord or any
occupant of nearby property. Tenant shall place no loads upon the floors, walls
or ceilings in excess of the maximum designed load determined by Landlord or
which endanger the structure; nor place any harmful liquids in the drainage
systems; nor dump or store waste materials or refuse or allow such to remain
outside the Building proper, except in the enclosed trash areas provided. Tenant
shall not store or permit to be stored or otherwise placed any other material of
any nature whatsoever outside the Building.

                      (ii) In particular, Tenant, at its sole cost, shall comply
with all laws, ordinances, restrictions, and regulations relating to the
storage, release, generation, manufacture, treatment, transportation, use, and
disposal of hazardous, toxic or radioactive matter, including those materials
that may be hazardous to the public safety and health and thwart protection of
the environment and as may be further defined as any hazardous or toxic
substance, material, or waste that is or becomes regulated by the United States,
the State of California, or any local government authority having jurisdiction
over the Premises. Hazardous or Toxic Material includes: (a) any hazardous
substance as that term is defined in the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (CERCLA) (42 United States Code sections
9601-9675); (b) Hazardous Waste as that term is defined in the Resource
Conservation and Recovery Act of 1976 (RCRA) (42 United States Code sections
6901-6992k); (c) Any pollutant, contaminant, or hazardous, dangerous, or toxic
chemical, material, or substance, within the meaning of any other applicable
federal, state, or local law, regulation, ordinance, or requirement (including
consent decrees and administrative orders imposing liability or standards of
conduct concerning any hazardous, dangerous, or toxic waste, substance, or
material, now or hereafter in effect); (d) Petroleum products; (e) Radioactive
material, including any source, special nuclear, or byproduct material as
defined in 42 United States Code sections 2011-2297g-4; (f) Asbestos in any form
or condition; and (g) Polychlorinated biphenyls (PCBs) and substances or
compounds containing PCBs and as they may be amended from time to time
(collectively "Toxic Materials"). If Tenant does or has knowledge of the

                                        5

<PAGE>   19
storage, release, generation, manufacture, treatment, transportation, use, and
disposal of any Toxic Materials, Tenant shall notify Landlord in writing at
least ten (10) days prior to their first appearance on the Premises and Tenant's
failure to do so shall be a default under the Lease. Tenant shall immediately
notify landlord in writing and provide copies upon receipt of all written
complaints, claims, citations, demands, inquiries, reports, or notices relating
to the condition of the Premises or compliance with environmental laws. Tenant
shall be solely responsible for and shall defend, indemnify and hold Landlord
and its Agents harmless from and against all claims, costs and liabilities,
including attorneys' fees and costs, arising out of or in connection with its
storage, use and disposal of Toxic Materials. Tenant shall further be solely
responsible for and shall defend, indemnify and hold Landlord and its Agents
harmless from and against any all claims, costs, and liabilities, including
attorneys' fees and costs, arising out of or in connection with a Phase I
Environmental Study, the removal, clean-up and restoration work and materials
necessary to return the Premises and any other property of whatever nature to
their condition existing prior to the appearance of the Toxic Materials on the
Premises. Tenant's obligations hereunder shall survive the termination of this
Lease.

        12. Quiet Enjoyment.

        Landlord covenants that Tenant, upon performing the terms, conditions
and covenants of this Lease, shall have quiet and peaceful possession of the
Premises as against any person claiming the same by, through or under Landlord.

        13. Alterations

               A. Permitted Alterations. After the Commencement Date, Tenant
shall not make or permit any Alterations in, on or about the Premises, except
for non structural Alterations not exceeding Five Thousand Dollars ($5,000.00)
in cost, without the prior written consent of Landlord, and according to plans
and specifications approved in writing by Landlord, which consent shall not be
unreasonably withheld. Notwithstanding the foregoing Tenant shall not, without
the prior written consent of Landlord, make any:

                      (i) Alterations to the exterior of the Building;

                      (ii) Alterations to and penetrations of the roof of the
Building; and

                      (iii) Alterations visible from outside the Premises,
including the Common Area, to which Landlord may withhold Landlord's consent on
wholly esthetic grounds.

All Alterations shall be installed at Tenant's sole expense, in compliance with
all applicable laws, by a licensed contractor, shall be done in a good and
workmanlike manner conforming in quality and design with the Premises existing
as of the Commencement Date, and shall not diminish the value of either the
Building or the Premises. All Alterations made by Tenant shall be and become the
property of Landlord upon installation and shall not be deemed Tenant's Personal
Property; provided, however, that Landlord may, at its option, require that
Tenant, at Tenant's expense, within ninety (90) days of the termination of the
Lease remove any or all non structural Alterations installed by Tenant and
return the Premises to their condition as of the Commencement Date of this
Lease, normal wear and tear excepted and subject to the provisions of Paragraph
24. Within the last four months of the Lease Term or any agreed extension
thereof, Tenant may request in writing that Landlord identify in writing those
modifications that Landlord has the right to demand the removal of by Tenant.
Landlord shall respond within sixty (60) days of receipt of such request,
advising Tenant in writing as to which of such modifications Landlord wishes to
have removed, so that Tenant may have the opportunity to remove them prior to
expiration of the Lease Term. If Tenant gives this written request to Landlord
within the time provided, then Tenant shall be relieved of any obligation to
remove any other modifications not specified for removal. Notwithstanding any
other provision of this Lease, Tenant shall be solely responsible for the
maintenance and repair of any and all Alterations made by it to the Premises.

               B. Notice. Tenant shall give Landlord written notice of Tenant's
intention to perform work on the Premises which might result in any claim of
lien at least twenty (20) days prior to the commencement of such work to enable
Landlord to post and record a Notice of Non responsibility or other notice
deemed proper before the commencement of any such work. If Tenant fails to
remove any lien filed against the Premises in connection with any work performed
or claimed to have been performed by or at the direction of Tenant within ten
(10) days from the date of filing, then Landlord may do so at Tenant's expense
and Tenant's reimbursement to Landlord for such amount shall be deemed
Additional Rent. Such reimbursement shall include all sums disbursed, incurred
or

                                        6

<PAGE>   20
deposited by Landlord, including Landlord's costs, expenses and reasonable
attorneys' fees with interest thereon at the Interest Rate.

        14. Surrender of the Premises.

Upon the expiration or earlier termination of the Term, Tenant shall surrender
the Premises to Landlord in its condition existing as of the Commencement Date,
normal wear and tear and fire or other casualty excepted, with all interior
walls repaired if marked or damaged, the HVAC equipment serviced within ninety
(90) of termination and repaired by a reputable and licensed service firm as
needed, and all floors cleaned, all to the reasonable satisfaction of Landlord.
In the event Tenant has used, stored, manufactured, or transported toxic
substances in Tenant's manufacturing process as defined by Federal and State Law
or local ordinances in or about the Premises during the term of this Lease or
any extension thereof, Landlord shall conduct a Phase I Environmental Study in
order to determine if such toxic substances have caused any deleterious effect
on the Premises. The cost of the Phase I Environmental Study shall be split
between Landlord and Tenant on a 50/50 basis. Tenant shall, at Tenant's sole
expense, continue with any recommended investigations and studies and mitigate
any problems as prescribed in the Phase I or subsequent reports. Tenant shall
remove from the Premises all of Tenant's Alterations required to be removed
pursuant to Paragraph 13., and all Tenant's Personal Property and repair any
damage and perform any restoration work caused by such removal. If Tenant fails
to remove such Alterations and Tenant's Personal Property, and such failure
continues after the termination of this Lease, Landlord may retain such property
and all rights of Tenant with respect to it shall cease, or Landlord may place
all or any portion of such property in public storage for Tenant's account.
Tenant shall be liable to Landlord for costs of removal of any such Alterations
and Tenant's Personal Property and storage and transportation costs of same, and
the cost of repairing and restoring the Premises, together with interest at the
Interest Rate from the date of expenditure by Landlord.

        15. Real Property Taxes.

               A. Payment by Tenant. On or before April 1 and December 1 of each
calendar year during the Term, Tenant shall pay to Landlord, as Additional Rent,
Tenant's Percentage of all Real Property Taxes as set forth on the County
assessor's tax statement for the Property. Landlord shall give Tenant at least
fifteen (15) days' prior written notice of the amount so due. Upon Landlord's
receipt of the Real Property Tax payment from Tenant and other tenants of the
Property, Landlord shall pay the taxes to the County. If Tenant fails to pay
Tenant's Percentage of the Real Property Taxes on or before April 1 and December
1, respectively, Tenant shall pay to Landlord any penalty incurred by such late
payment. Tenant shall pay Tenant's Percentage of any Real Property Tax not
included within the County tax assessor's tax statement within ten (10) days
after being billed for same by Landlord. If Tenant shall fail to pay any Real
Property Tax payment on time, such overdue amount shall bear interest at the
Interest Rate until paid. The foregoing dates are based on the dates established
by the County as the dates on which Real Property Taxes become delinquent if not
paid. If such delinquency dates change, the dates on which Tenant must pay
Tenant's Percentage of such taxes shall be at least ten (10) days prior to the
delinquency dates.

               B. New Taxes. Tenant and Landlord acknowledge that Proposition 13
was adopted by the voters of the State of California in the June, 1978 election
and that assessments, taxes, fees, levies and charges may be imposed by
governmental agencies for such purposes as fire protection, street, sidewalk,
road, utility construction and maintenance, refuse removal and for other
governmental services which may formerly have been provided without charge to
property owners or occupants. It is the intention of the parties that all new
and increased assessments, taxes, fees, levies and charges due to Proposition 13
or any other cause are to be included within the definition of Real Property
Taxes for purposes of this Lease.

               C. Separate Parcel. Any obligation on the part of Tenant to pay
all Real Property Taxes shall be conditioned upon the Property being taxed as a
separate parcel. If the Property is not assessed as a separate parcel, then
Landlord shall equitably apportion the Real Property Taxes assessed against the
real property which includes the Property, and Tenant shall pay Tenant's
Percentage of the amount of Real Property Taxes apportioned to the Property.

               D. Tax on Improvements. Tenant shall pay any increase in Real
Property Taxes resulting from any and all Alterations and Tenant Improvements of
any kind whatsoever placed in, on or about the Premises for the benefit of, at
the request of, or by Tenant.

                                        7
<PAGE>   21
               E. Proration. Tenant's liability to pay Real Property Taxes shall
be prorated on the basis of a 365-day year to account for any fractional portion
of a fiscal tax year included at the commencement or expiration of the Term.
With respect to any assessments which may be levied against or upon the
Property, or which under the laws then in force may be evidenced by improvements
or other bonds or may be paid in annual installments, only the amount of such
annual installment (with appropriate proration for any partial year) and
interest due thereon shall be included within the computation of the annual Real
Property Taxes levied against the Premises.

               F. Payment on Expiration of Term. If this Lease terminates on a
date earlier than the end of a fiscal tax year, Landlord shall deliver to Tenant
a statement setting forth the amount of Real Property Taxes to be paid by Tenant
adjusted to the date of termination which shall be paid within five (5) days of
such receipt.

               G. Personal Property Taxes. Tenant shall pay prior to delinquency
all taxes assessed or levied against Tenant's Personal Property in, on or about
the Premises or elsewhere. When possible, Tenant shall cause its Personal
Property to be assessed and billed separately from the real or personal property
of Landlord. If Landlord shall receive any such tax bills or notices of
assessment or reassessment in connection with Tenant's Personal Property, it
shall immediately forward such bills to Tenant.

               H. Failure to Pay. Tenant's failure to pay any of the charges
required to be paid under this paragraph shall constitute a default under this
Lease.

               I. Reassessment. In the event of any reassessment of the Premises
or any portion thereof, including in connection with any improvements performed
by Landlord for Tenant or by Tenant for itself (with Landlord's consent), other
than the minimum permitted annual reassessments permitted by Proposition 13, for
which landlord is provided with a Notice of Reassessment by the County Assessor,
Landlord shall notify Tenant of said Notice in a timely manner, and Tenant shall
have the right, at its sole expense and with knowledge of and communication with
Landlord, to protest or appeal such reassessment. Landlord shall cooperate with
Tenant in executing documents as may be required in protesting a reassessment.

        16. Utilities and Services.

        Tenant shall be responsible for and shall pay promptly all charges for
water, gas, electricity, telephone, refuse pickup, janitorial service and all
other utilities, materials and services furnished directly to or used by Tenant
in, on or about the Premises during the Term, together with any taxes thereon.
Landlord shall not be liable in damages or otherwise for any failure or
interruption of any utility service or other service furnished to the Premises,
except that resulting from the willful misconduct of Landlord. No such failure
or interruption shall entitle Tenant to terminate this Lease or withhold rent or
other sums due hereunder.

        17. Repair and Maintenance.

               A. Building.

                      (i) Landlord's Obligations. Landlord shall keep in good
order, condition and repair the structural parts of the Building, which
structural parts include only the foundation, exterior walls (excluding the
interior of all walls and the exterior and interior of all windows, doors, plate
glass, showcases and interior ceiling), and subflooring of the Premises, except
for any damage thereto caused by the negligence or willful acts or omissions of
Tenant or of Tenant's agents, employees or invitees, or by reason of the failure
of Tenant to perform or comply with any terms, conditions or covenants in this
Lease, or caused by Alterations made by Tenant or by Tenant's agents, employees
or contractors. It is an express condition precedent to all obligations of
Landlord to repair and maintain that Tenant shall have notified Landlord in
writing of the need for such repairs or maintenance.

                      (ii) Tenant's Obligations. Tenant shall at all times and
at its own expense clean, keep and maintain in good, safe and sanitary order,
condition and repair every part of the Building which is not within Landlord's
obligation pursuant to Paragraph 17.A.(i). Tenant's repair and maintenance
obligations shall include, without limitation, all plumbing and sewage
facilities within the Premises, fixtures, interior walls, floors, ceilings,
windows, store front, doors, entrances, plate glass, showcases, skylights, all
electrical facilities and equipment, including lighting fixtures, lamps, fans
and any exhaust equipment and systems, any automatic fire extinguisher equipment
within the Premises, electrical motors and all other appliances and equipment of
every kind and nature located in,

                                        8
<PAGE>   22
upon or about the Premises. All glass, both interior and exterior, is at the
sole risk of Tenant, and any broken glass shall promptly be replaced by Tenant
at Tenant's expense with glass of the same kind, size and quality. Tenant shall
obtain HVAC systems preventive maintenance contracts with bi-monthly service,
which shall be subject to the reasonable approval of Landlord and paid for by
Tenant, and which shall provide for and include replacement of filters, oiling
and lubricating of machinery, parts replacement, adjustment of drive belts, oil
changes and other preventive maintenance. Tenant shall have the benefit of all
warranties available to Landlord regarding the equipment in such HVAC systems.

               B. Common Area.

                      (i) Landlord's Obligations. Landlord shall maintain the
Common Area including those portions of the Building within the Common Area,
including the exterior walls, (excluding the interior of all walls and the
exterior and interior of all windows, doors, ceiling and plateglass), and the
roof of the Building. The manner in which the Common Area shall be maintained
and the expenditures therefor shall be at the sole discretion of Landlord.
Landlord shall at all times have exclusive control of the Common Area and may at
any time temporarily close any part thereof, exclude and restrain anyone from
any part thereof, except the bona fide customers, employees and invitees of
Tenant who use the Common Area in accordance with the rules and regulations as
Landlord may from time to time promulgate, and may change the configuration or
location of the Common Area. In exercising any such rights, Landlord shall make
a reasonable effort to minimize any disruption of Tenant's business. Landlord
shall have the right to re configure the parking area and ingress to and egress
from the parking area, and to modify the directional flow of traffic of the
parking area.

                      (ii) Tenant to Pay Common Area Expenses. Tenant shall pay,
as Additional Rent, Tenant's Percentage of all reasonable costs and expenses as
may be paid or incurred by Landlord in maintaining, operating and repairing the
Common Area (the "Common Area Expenses") during the Term. The Common Area
Expenses may include, without limitation, the cost of any policies of insurance
covering the Common Area, and the cost of labor, materials, supplies and
services used or consumed in operating, maintaining, and repairing the Common
Area including, without limitation, the following:

                      (1) Maintaining and repairing landscaping and sprinkler
systems;

                      (2) Maintaining and repairing concrete walkways and paved
parking areas;

                      (3) Maintaining and repairing signs and site lighting; and

                      (4) Pest control, janitorial and sweeping services.

                      (iii) Monthly Payments. From and after the Commencement
Date, Tenant shall to Landlord on the first day of each calendar month of the
Term an amount estimated by Landlord to be Tenant's Percentage of the monthly
Common Area Expenses. The foregoing estimated monthly charge may be adjusted by
Landlord at the end of any calendar quarter on the basis of Landlord's
experience and reasonably anticipated costs. Any such adjustment shall be
effective as of the calendar month next succeeding receipt by Tenant of written
notice of such adjustment.

                      (iv) Accounting. Within one hundred twenty (120) days
following the end of each calendar year Landlord shall furnish Tenant a
statement of the actual Common Area Expenses for the calendar year and the
payments made by Tenant with respect to such period. If Tenant's payments for
the Common Area Expenses do not equal the amount of the actual Common Area
Expenses, Tenant shall pay Landlord the deficiency within ten (10) days after
receipt of such statement. If Tenant's payments exceed the actual Common Area
Expenses, Landlord shall either offset the excess against the Common Area
Expenses next thereafter to become due to Landlord, or shall refund the amount
of the overpayments to Tenant, in cash, as Landlord shall elect. There shall be
appropriate adjustments of the Common Area Expenses as of the Commencement Date
and expiration of the Term. Upon request, Tenant shall have the right to receive
copies of and to examine the actual invoices and other supporting documentation
associated with such Common Area Expenses, to verify their validity hereunder.

               C. Waiver. Tenant waives the provisions of Sections 1941 and 1942
of the California Civil Code and any similar or successor law regarding Tenant's
right to make repairs and deduct the expenses of such repairs from the Rent due
under this Lease.

                                        9
<PAGE>   23
               D. Compliance with Governmental Regulations. Tenant shall, at its
own cost and expense, promptly and properly observe and comply with, including
the making by Tenant of any Alteration to the Premises, all present and future
orders, regulations, directions, rules, laws, ordinances, and requirements of
all governmental authorities (including, without limitation state, municipal,
county and federal governments and their departments, bureaus, boards and
officials) arising from the use or occupancy of, or applicable to, the Premises
or privileges appurtenant to or in connection with the enjoyment of the
Premises.

               E. Failure to Pay. Failure of Tenant to pay any of the charges
required to be paid under this paragraph shall constitute a default under this
Lease.

        18. Fixtures.

        Tenant shall, at its own expense, provide, install and maintain in good
condition all its Personal Property required in the conduct of its business in
the Premises.

        19. Liens.

        Tenant shall keep the Premises free from any liens arising out of any
work performed, materials furnished or obligations incurred by or on behalf of
Tenant and hereby indemnifies and holds Landlord and its Agents harmless from
all liability and cost, including attorneys' fees and costs, in connection with
or arising out of any such lien or claim of lien. Tenant shall cause any such
lien imposed to be released of record by payment or posting of a proper bond
acceptable to Landlord within ten (10) days after the earlier of imposition of
the lien or written request by Landlord. Tenant shall give Landlord written
notice of Tenant's intention to perform work on the Premises which might result
in any claim of lien at least twenty (20) days prior to the commencement of such
work to enable Landlord to post and record a Notice of Non responsibility or
other notice deemed proper before the commencement of any such work. If Tenant
fails to so remove said lien within the prescribed ten (10) day period, then
Landlord may do so at Tenant's expense and Tenant's reimbursement to Landlord
for such amounts shall be deemed Additional Rent. Such reimbursement shall
include all sums disbursed, incurred or deposited by Landlord including
Landlord's costs, expenses and reasonable attorneys' fees with interest thereon
at the Interest Rate.

        20. Landlord's Right to Enter the Premises.

        Tenant shall permit Landlord and its Agents to enter the Premises at all
reasonable times with reasonable notice, except for emergencies in which case no
notice shall be required, to inspect the same, to post Notices of Non
responsibility and similar notices and "For Sale" signs, to show the Premises to
interested parties such as prospective lenders and purchasers, to make necessary
Alterations or repairs, to discharge Tenant's obligations hereunder when Tenant
has failed to do so within a reasonable time after written notice from Landlord,
and at any reasonable time within one hundred and eighty (180) days prior to the
expiration of the Term, to place upon the Premises ordinary "For Lease" signs
and to show the Premises to prospective tenants. The above rights are subject to
reasonable security regulations of Tenant, and to the requirement that Landlord
shall at all times act in a manner to cause the least possible interference with
Tenant's business.

        21. Signs.

Landlord shall provide space for Tenant's identification sign over the main
entrance and on an exterior monument sign in the Common Area. Tenant shall have
no right to maintain a Tenant identification sign in any other location in, on
or about the Building or the Premises and shall not display or erect any other
Tenant identification sign, display or other advertising material that is
visible from the exterior of the Building. The size, design, color and other
physical aspects of the Tenant identification sign shall be subject to the
Landlord's written approval prior to installation, which shall not be
unreasonably withheld, the CC&R's, and any appropriate municipal or other
governmental approvals. The cost of the sign, its installation, maintenance and
removal expense shall be Tenant's sole expense. If Tenant fails to maintain its
sign, or, if Tenant fails to remove its sign upon termination of this Lease,
Landlord may do so at Tenant's expense and Tenant's reimbursement to Landlord
for such amounts shall be deemed Additional Rent. Such reimbursement shall
include all sums disbursed, incurred or deposited by Landlord including
Landlord's costs, expenses and reasonable attorneys' fees with interest thereon
at the Interest Rate.

                                       10
<PAGE>   24
        22. Insurance.

               A. Indemnification. Tenant hereby agrees to defend, indemnify and
hold harmless Landlord and its Agents from and against any and all damage, loss,
liability or expense including, without limitation, attorneys' fees and legal
costs suffered directly or by reason of any claim, suit or judgment brought by
or in favor of any person or persons for damage, loss or expense due to, but not
limited to, bodily injury and property damage sustained by such person or
persons which arises out of, is occasioned by or in any way attributable to the
use or occupancy of the Property or any part thereof and adjacent areas by the
Tenant, the acts or omissions of the Tenant, its agents, employees or any
contractors brought onto the Premises by the Tenant, except to the extent caused
by the sole negligence or willful misconduct of Landlord or its Agents. Tenant
agrees that the obligations assumed herein shall survive this Lease.

               B. Tenant's Insurance. Tenant agrees to maintain in full force
and effect at all times during the Term, at its own expense, for the protection
of Tenant and Landlord, as their interests may appear, policies of insurance
issued by a responsible carrier or carriers acceptable to Landlord which afford
the following coverages:

                      (i) Worker's compensation - Statutory limits.

                      (ii) Employer's liability - Not less than One Hundred
Thousand and no/100ths Dollars ($100,000.00).

                      (iii) Comprehensive general liability insurance including
blanket contractual liability broad form property damage, personal injury,
completed operations, products liability, in an amount not less than Three
Million and no/100ths Dollars ($3,000,000.00) combined single limit for both
bodily injury and property damage and fire damage legal in an amount not less
than one hundred thousand ($100,000.00) naming Landlord and its Agents as
additional insureds.

                      (iv) "All Risk" property insurance (including, without
limitation, vandalism, malicious mischief, inflation endorsement, sprinkler
leakage endorsement, and boiler and machinery coverage) on Tenant's Personal
Property located on or in the Premises, and any Alterations constructed or
installed on the Premises by Tenant. Such insurance shall be in the full amount
of the replacement cost, as the same may from time to time increase as a result
of inflation or otherwise, and shall be in a form providing coverage comparable
to the coverage provided in the standard ISO All-Risk form. As long as this
Lease is in effect, the proceeds of such policy shall be used for the repair and
replacement of such items so insured. Landlord shall have no interest in the
insurance proceeds on Tenant's Personal Property.

                      (v) Boiler and machinery insurance including but not
limited to steam pipes, pressure pipes, condensation return pipes and other
pressure vessels and HVAC equipment in an amount satisfactory to Landlord.

               C. Premises Insurance. During the Term Landlord shall maintain
"All Risk" property insurance (including, at Landlord's option, earthquake
coverage, inflation endorsement, sprinkler leakage endorsement, and boiler and
machinery coverage) on the Premises, general liability for the Premises and
Common Area, excluding coverage of all Tenant's Personal Property located on or
in the Premises, but including the any Tenant Improvements. In the event
Landlord opts to insure the Premises for earthquake coverage, then, in the event
of a claim, Landlord shall be responsible for the payment of the deductible of
such insurance. Tenant's cost for earthquake insurance shall not exceed ten
thousand dollars ($10,000.00) per year. All such insurance shall also include
insurance against loss of rents and/or abatement of rent on an "All Risk" basis,
including, at Landlord's option, earthquake, in an amount equal to the Monthly
Rent and Additional Rent, and any other sums payable under the Lease, for a
period of at least twelve (12) months commencing on the date of loss. Such
insurance shall name Landlord and its Agents as named insureds and include a
lender's loss payable endorsement in favor of Landlord's lender (Form 438 BFU
Endorsement). Tenant shall reimburse Landlord for Tenant's Percentage of
Landlord's annual cost of said insurance as Additional Rent, monthly on the
first day of each calendar month of the Term, prorated for any partial month, or
on such other periodic basis as Landlord shall elect. If the Premises insurance
premiums are increased after the Commencement Date due to an increase in premium
rates, due to an increase in the valuation of the Building or its replacement
cost, or due to Tenant's use of the Premises, Tenant shall pay such increase
within ten (10) days of notice of such increase.

                                       11

<PAGE>   25
               D. Certificates. Tenant shall deliver to Landlord at least thirty
(30) days prior to the time such insurance is first required to be carried by
Tenant, and thereafter at least thirty (30) days prior to expiration of each
such policy, certificates of insurance evidencing the above coverage with limits
not less than those specified above. The certificates shall expressly provide
that the interest of Landlord therein shall not be affected by any breach of
Tenant of any policy provision for which such certificates evidence coverage.
Further, all certificates shall expressly provide that no less than ten (10)
days' or the greatest period of time typically provided by insurance carriers
prior written notice shall be given Landlord in the event of cancellation of the
coverages evidenced by such certificates.

               E. Co-Insurer. If, on account of the failure of Tenant to comply
with the foregoing provisions, Landlord is adjudged a co-insurer by its
insurance carrier, then, any loss or damage Landlord shall sustain by reason
thereof, including attorneys' fees and costs, shall be borne by Tenant and shall
be immediately paid by Tenant upon receipt of a bill therefor and evidence of
such loss.

               F. No Limitation of Liability. Landlord and its Agents make no
representation that the limits of liability specified to be carried by Tenant
under this Lease are adequate to protect Tenant. If Tenant believes that any
such insurance coverage is insufficient, Tenant shall provide, at its own
expense, such additional insurance as Tenant deems adequate.

               G. Insurance Requirements. All such insurance shall be in a form
satisfactory to Landlord and shall be carried with companies that have a general
policy holder's rating of not less than "A-" and a financial rating of not less
than Class "X" in the most current edition of Best's Insurance Reports; shall
provide that such policies shall not be subject to material alteration which
results in a material reduction of coverage or cancellation except after at
least thirty (30) days' prior written notice and ten (10) days for non-pay
cancellations or the maximum period insurance carriers provide to Landlord; The
policy or policies, or duly executed certificates for them, shall be deposited
with Landlord prior to the Commencement Date, and upon renewal of such policies,
not less than thirty (30) days prior to the expiration of the term of such
coverage. If Tenant fails to procure and maintain the insurance required
hereunder, Landlord may, but shall not be required to, order such insurance at
Tenant's expense and Tenant's reimbursement to Landlord for such amounts shall
be deemed Additional Rent. Such reimbursement shall include all sums disbursed,
incurred or deposited by Landlord including Landlord's costs, expenses and
reasonable attorneys' fees with interest thereon at the Interest Rate.

               H. Landlord's Disclaimer. Landlord and its Agents shall not be
liable for any loss or damage to persons or property resulting from fire,
explosion, falling plaster, glass, tile or sheet rock, steam, gas, electricity,
water or rain which may leak from any part of the Premises, or from the pipes,
appliances or plumbing works therein or from the roof, street or subsurface or
whatsoever, unless caused by or due to the sole negligence or willful acts of
Landlord. Tenant shall give prompt written notice to Landlord in case of a
casualty, accident or repair needed in the Premises.

               I. Failure to Pay. The failure of Tenant to obtain and pay for
any insurance required to be obtained and paid for by it hereunder shall be
deemed a default under this Lease.

        23. Waiver of Subrogation.

        Landlord and Tenant each hereby waive all rights of recovery against the
other on account of loss and damage occasioned to such waiving party for its
property or the property of others under its control to the extent that such
loss or damage is insured against under any insurance policies which may be in
force at the time of such loss or damage. Tenant and Landlord shall, upon
obtaining policies of insurance required hereunder, give notice to the insurance
carrier that the foregoing mutual waiver of subrogation is contained in this
Lease and Tenant and Landlord shall cause each insurance policy obtained by such
party to provide that the insurance company waives all right of recovery by way
of subrogation against either Landlord or Tenant in connection with any damage
covered by such policy.

        24. Damage or Destruction.

               A. Landlord's Obligation to Rebuild. If the Premises or the
Building is damaged or destroyed, Landlord shall promptly and diligently repair
the same unless it has the right to terminate this Lease as provided herein and
it elects to so terminate.

                                       12

<PAGE>   26
               B. Landlord's Right to Terminate. Landlord shall have the right
to terminate this Lease in the event any of the following events occurs:

                      (i) Insurance proceeds are not available to pay one
hundred percent (100%) of the cost of such repair, excluding the deductible for
which Tenant shall be responsible (deductible shall not exceed $2,000.00 per
occurrence except for earthquake insurance as provided for in paragraph 22.C.);

                      (ii) The Premises or the Building cannot, with reasonable
diligence, be fully repaired by Landlord within one hundred twenty (120) days
after the date of the damage or destruction; or

                      (iii) The Premises or Building cannot be safely repaired
because of the presence of hazardous factors, including, but not limited to,
earthquake faults, radiation, chemical waste and other similar dangers.

If Landlord elects to terminate this Lease, Landlord may give Tenant written
notice of its election to terminate within thirty (30) days after such damage or
destruction, and this Lease shall terminate fifteen (15) days after the date
Tenant receives such notice. If Landlord elects not to terminate the Lease,
Landlord shall promptly, following the date of such damage or destruction,
commence the process of obtaining necessary permits and approvals, and shall
commence repair of the Premises or the Building as soon as practicable and
thereafter prosecute the same diligently to completion, in which event this
Lease will continue in full force and effect. All insurance proceeds from
insurance under Paragraph 22., excluding proceeds for trade fixtures, equipment
and other personal property of Tenant, shall be disbursed and paid to Landlord.
Tenant shall be required to pay to Landlord the amount of any deductible payable
in connection with any insured casualties, unless the casualty was caused by the
sole negligence or willful misconduct of Landlord.

               C. Limited Obligation to Repair. Landlord's obligation, should it
elect or be obligated to repair or rebuild, shall be limited to the basic
Premises and the Tenant Improvements-existing at the time of such damage or
destruction.

               D. Abatement of Rent. Rent shall be temporarily abated
proportionately, but only to the extent of any proceeds received by Landlord
from loss of rent and/or rental abatement insurance described in Paragraph
22.C., during any period when, by reason of such damage or destruction, Landlord
reasonably determines that there is substantial interference with Tenant's use
of the Building, having regard to the extent to which Tenant may be required to
discontinue Tenant's use of the Building. Such abatement shall commence upon
such damage or destruction and end upon substantial completion by Landlord-of
the repair or reconstruction which Landlord is obligated or undertakes to do.
Tenant shall not be entitled to any compensation or damages from Landlord for
loss of the use of the Premises, damage to Tenant's Personal Property or any
inconvenience occasioned by such damage, repair or restoration. Tenant hereby
waives the provisions of Section 1932, Subdivision 2, and Section 1933,
Subdivision 4, of the California Civil Code, and the provisions of any similar
law hereinafter enacted.

               E. Damage Near End of Term. Anything herein to the contrary
notwithstanding, If the Premises or the Building is destroyed or damaged during
the last twenty-four (24) months of the Term, then Landlord may, at its option,
cancel and terminate this Lease as of the date of the occurrence of such damage.
If Landlord does not elect to so terminate this Lease, the repair of such damage
shall be governed by Paragraphs 24.A. or 24.B., as the case may be. If this
Lease is terminated, Landlord may keep all the insurance proceeds resulting from
such damage, except for those proceeds payable under policies obtained by Tenant
which specifically insure Tenant's Personal Property.

               F. Replacement Cost. The determination in good faith by Landlord
of the estimated cost of repair of any damage, of the replacement cost, or of
the time period required for repair shall be conclusive for the purposes of this
paragraph.

        25. Condemnation.

               A. Total Taking Termination. If title to all of the Property or
so much thereof is taken for any public or quasi-public use under any statute or
by right of eminent domain so that reconstruction of the Property will not, in
Landlord's and Tenant's mutual opinion, result in the Property being reasonably
suitable for Tenant's continued occupancy for the uses and purposes permitted by
this Lease, this Lease shall terminate as of the date that possession of the
Property or part thereof be taken.

                                       13

<PAGE>   27
               B. Partial Taking. If any part of the Premises is taken and the
remaining part is reasonably suitable for Tenant's continued occupancy for the
purposes and uses permitted by this Lease, this Lease shall, as to the part so
taken, terminate as of the date that possession of such part of the Premises is
taken. The Rent and other sums payable hereunder shall be reduced in the same
proportion that the floor area of the portion of the Premises so taken (less any
addition thereto by reason of any reconstruction) bears to the original floor
area of the Premises. Landlord shall, at its own cost and expense, make all
necessary repairs or alterations to the Premises so as to make the portion of
the Premises not taken a complete architectural unit. Such work shall not,
however, exceed the scope of the work done by Landlord in originally
constructing the Premises. Rent and other sums payable hereunder shall be
temporarily abated during such restoration proportionately in the degree to
which Tenant's use of Premises is impaired.

               C. No Apportionment of Award. No award for any partial or entire
taking shall be apportioned. Tenant assigns to Landlord its interest in any
award which may be made in such taking or condemnation, together with any and
all rights of Tenant arising in or to the same or any part thereof. Nothing
contained herein shall be deemed to give Landlord any interest in or require
Tenant to assign to Landlord any separate award made to Tenant for the taking of
Tenant's Personal Property, for the interruption of Tenant's business, or its
moving costs, or for the loss of its goodwill.

               D. Temporary Taking. No temporary taking of the Premises shall
terminate this Lease or give Tenant any right to any abatement of Rent. Any
award made to Tenant by reason of such temporary taking shall belong entirely to
Tenant and Landlord shall not be entitled to share therein. Each party agrees to
execute and deliver to the other all instruments that may be required to
effectuate the provisions of this paragraph.

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

        26. Assignment and Subletting.

               A. Landlord's Consent. Tenant shall not enter into an Assignment
or Sublease without Landlord's prior written consent, which consent shall not be
unreasonably withheld. Any attempted or purported Assignment or Sublease without
Landlord's prior written consent shall be void and confer no rights upon any
third person and, at Landlord's election, shall terminate this Lease.

               B. Assignment or Sublease Form. Each Assignment or Sublease to
which Landlord has consented shall be by an instrument in writing in a form
satisfactory to Landlord, and shall be executed by Tenant and Subtenant. Each
Subtenant shall agree in writing, for the benefit of Landlord, to assume, to be
bound by, and to perform the terms, conditions and covenants of this Lease to be
performed by Tenant. Notwithstanding anything contained herein, Tenant shall not
be released from personal liability for the performance of each term, condition
and covenant of this Lease by reason of Landlord's consent to an Assignment or
Sublease unless Landlord specifically grants such release in writing.

               C. No Waiver. Consent by Landlord to one such Assignment or
Sublease shall not be deemed to be a consent to any subsequent Assignment or
Sublease.

               D. Information to be Furnished. If Tenant desires at any time to
Assign or Sublease the Premises or any portion thereof, it shall first notify
Landlord of its desire to do so and shall submit in writing to Landlord: (i) the
name of the proposed Subtenant; (ii) the nature of the proposed Subtenant's
business to be carried on in the Premises; (iii) the terms and provisions of the
proposed Assignment or Sublease and a copy of the proposed Assignment or
Sublease form containing a description of the subject premises; and (iv) such
financial information, including financial statements, as Landlord may
reasonably request concerning the proposed Subtenant.

               E. Landlord's Alternatives. At any time within ten (10) days
after Landlord's receipt of the information specified in Paragraph 26.D.,
Landlord may, by written notice to Tenant, elect: (i) to consent to the
Assignment or Sublease by Tenant; or (ii) to refuse its consent to the
Assignment or Sublease.

If Landlord fails to elect any of the alternatives set forth in Paragraph
26.E.(i) and (ii) above within the ten (10) day period, it shall be deemed that
Landlord has refused its consent to the Assignment or Sublease.

                                       14

<PAGE>   28
If Landlord consents to the Assignment or Sublease, Tenant may thereafter enter
into a valid Assignment or Sublease of the Premises or portion thereof, upon the
terms and conditions and with the proposed Subtenant set forth in the
information furnished by Tenant to Landlord pursuant to Paragraph 26.D.,
subject, however, upon the condition that any excess of the Subrent (Profit)
over the Rent required to be paid by Tenant hereunder for that pro rata portion
of the building shall be split on a 50/50 basis between Landlord and Tenant. Any
such Profit to be paid to Landlord pursuant hereto shall be payable to Landlord
as and with the Monthly Rent payable to Landlord hereunder pursuant to Paragraph
5.A.

               F. Sublease or Assignment Profit and Expenses. Prior to splitting
the Profit as prescribed in the above paragraph, Tenant may deduct the amount of
Tenant's cash expenses in connection with Assignment or Sublease. Expenses that
may be deducted include tenant improvements, commissions paid, marketing and
legal fees as commercially typical.

               G. Executed Counterpart. No Assignment or Sublease shall be valid
nor shall any Subtenant take possession of the Premises until an executed
counterpart of the Assignment or Sublease agreement has been delivered to
Landlord.

        27. Default.

               A. Tenant's Default. At the option of Landlord, a default under
this Lease by Tenant shall exist if any of the following events shall occur:

                      (i) If Tenant shall have failed to pay Rent or any other
sum required to be paid hereunder when due; provided, however, that Tenant may
cure said default at any time prior to a termination of this Lease by Landlord
by paying all Rent and other expenses or charges then due together with interest
at the Interest Rate from the due date through the date of payment; or

                      (ii) If Tenant shall have failed to perform any term,
covenant or condition of this Lease except those requiring the payment of money,
and Tenant shall have failed to cure such breach within fifteen (15) days after
written notice from Landlord where such breach could reasonably be cured within
such fifteen (15) day period; provided, however, that where such failure could
not reasonably be cured within the fifteen (15) day period, that Tenant shall
not be in default if it has commenced such performance within the fifteen (15)
day period and diligently thereafter prosecutes the same to completion; or

                      (iii) If Tenant shall have assigned its assets for the
benefit of its creditors; or

                      (iv) If the sequestration or attachment of or execution on
any material part of Tenant's Personal Property essential to the conduct of
Tenant's business shall have occurred, and Tenant shall have failed to obtain a
return or release of such Personal Property within thirty (30) days thereafter,
or prior to sale pursuant to such sequestration, attachment or levy, whichever
is earlier; or

                      (v) If Tenant shall have failed to continuously or
uninterruptedly conduct its business in the Premises, or shall have abandoned or
vacated the Premises; or

                      (vi) If a court shall have made or entered any decree or
order other than under the bankruptcy laws of the United States adjudging Tenant
to be insolvent; or approving as properly filed a petition seeking
reorganization of Tenant; or directing the winding up or liquidation of Tenant
and such decree or order shall have continued for a period of thirty (30) days;
or

                      (vii) If Tenant shall have failed to comply with the
provisions of Paragraphs 28.

and 31.

               B. Remedies. Upon a default, Landlord shall have the following
remedies, in addition to all other rights and remedies provided by law or
otherwise provided in this Lease, to which Landlord may resort cumulatively or
in the alternative:

                      (i) Landlord may continue this Lease in full force and
effect, and this Lease shall continue in full force and effects as long as
Landlord does not terminate this Lease, and Landlord shall have the right to
collect Rent when due.

                                       15
<PAGE>   29
                      (ii) Landlord may terminate Tenant's right to possession
of the Premises at any time by giving written notice to that effect, and relet
the Premises or any part thereof. Tenant shall be liable immediately to Landlord
for all costs Landlord incurs in reletting the Premises or any part thereof,
including, without limitation, broker's commissions, expenses of cleaning and
redecorating the Premises required by the reletting and like costs. Reletting
may be for a period shorter or longer than the remaining term of this Lease. No
act by Landlord other than giving written notice to Tenant shall terminate this
Lease. Acts of maintenance, efforts to relet the Premises or the appointment of
a receiver on Landlord's initiative to protect Landlord's interest under this
Lease shall not constitute a termination of Tenant's right to possession. On
termination, Landlord has the right to remove all Tenant's Personal Property and
store same at Tenant's cost and to recover from Tenant as damages:

                      (a) The worth at the time of award of unpaid Rent and
other sums due and payable which had been earned at the time of termination;
plus

                      (b) The worth at the time of award of the amount by which
the unpaid Rent and other sums due and payable which would have been payable
after termination until the time of award exceeds the amount of such Rent loss
that Tenant proves could have been reasonably avoided; plus

                      (c) The worth at the time of award of the amount by which
the unpaid Rent and other sums due and payable for the balance of the Term after
the time of award exceeds the amount of such Rent loss that Tenant proves could
be reasonably avoided; plus

                      (d) Any other amount necessary which is to compensate
Landlord for all the detriment proximately caused by Tenant's failure to perform
Tenant's obligations under this Lease, or which, in the ordinary course of
things, would be likely to result therefrom, including, without limitation, any
costs or expenses incurred by Landlord: (i) in retaking possession of the
Premises; (ii) in maintaining, repairing, preserving, restoring, replacing,
cleaning, altering or rehabilitating the Premises or any portion thereof,
including such acts for reletting to a new tenant or tenants; (iii) for leasing
commissions; or (iv) for any other costs necessary or appropriate to relet the
Premises; plus

                      (e) At Landlord's election, such other amounts in addition
to or in lieu of the foregoing as may be permitted from time to time by the laws
of the State of California.

                      The "worth at the time of award" of the amounts referred
to in Paragraphs 27.B.(ii)(a) and 27.B.(ii)(b) is computed by allowing interest
at the Interest Rate on the unpaid rent and other sums due and payable from the
termination date through the date of award. The "worth at the time of award" of
the amount referred to in Paragraph 27.B.(ii)(c) is computed by discounting such
amount at the discount rate of the Federal Reserve Bank of San Francisco at the
time of award plus one percent (1%). Tenant waives redemption or relief from
forfeiture under California Code of Civil Procedure Sections 1174 and 1179, or
under any other present or future law, in the event Tenant is evicted or
Landlord takes possession of the Premises by reason of any default of Tenant
hereunder.

                      (iii) Landlord may, with or without terminating this
Lease, enter the Premises and remove all persons and property from the Premises;
such property may be removed and stored in a public warehouse or elsewhere at
the cost of and for the account of Tenant. No re-entry or taking possession of
the Premises by Landlord pursuant to this paragraph shall be construed as an
election to terminate this Lease unless a written notice of such intention is
given to Tenant.

               C. Landlord's Default. Landlord shall not be deemed to be in
default in the performance of any obligation required to be performed by it
hereunder unless and until it has failed to perform such obligation within
thirty (30) days after receipt of written notice by Tenant to Landlord
specifying the nature of such default; provided, however, that if the nature of
Landlord's obligation is such that more than thirty (30) days are required for
its performance, then Landlord shall not be deemed to be in default if it shall
commence such performance within such thirty (30) day period and thereafter
diligently prosecute the same to completion.

        28. Subordination.

               A. Documentation. This Lease is subject and subordinate to ground
and underlying leases, mortgages and deeds of trust (collectively
"Encumbrances") which now affect the Premises, to the CC&R's and to all
renewals, modifications, consolidations,

                                       16

<PAGE>   30

replacements and extensions thereof; provided, however, if the holder or holders
of any such Encumbrance ("Holder") shall require that this Lease to be prior and
superior thereto, within seven (7) days of written request of Landlord to
Tenant, Tenant shall execute, have acknowledged and deliver any and all
documents or instruments, in the form presented to Tenant, which Landlord or
Holder deems necessary or desirable for such purposes. Landlord shall have the
right to cause this Lease to be and become and remain subject and subordinate to
any and all Encumbrances which are now or may hereafter be executed covering the
Premises or any renewals, modifications, consolidations, replacements or
extensions thereof, for the full amount of all advances made or to be made
thereunder and without regard to the time or character of such advances,
together with interest thereon and subject to all the terms and provisions
thereof; provided only, that in the event of termination of any such lease or
upon the foreclosure of any such mortgage or deed of trust, so long as Tenant is
not in default, Holder shall enter into a recognition and attornment agreement
with Tenant as long as Tenant shall pay the Rent and observe and perform all the
provisions of this Lease to be observed and performed by Tenant. Within ten (10)
days after Landlord's written request, Tenant shall execute any and all
documents required by Landlord or the Holder required to effectuate such
subordination to make this Lease subordinate to any lien of the Encumbrance. If
Tenant fails to do so, such failure shall constitute an irrevocable appointment
of Landlord as Tenant's attorney-in-fact and to act in Tenant's name, place and
stead.

               B. Attornment. Notwithstanding anything to the contrary set forth
in this paragraph, Tenant hereby attorns and agrees to attorn to any entity
purchasing or otherwise acquiring the Premises at any sale or other proceeding
or pursuant to the exercise of any other rights, powers or remedies under such
Encumbrance.

        29. Notices.

        Any notice or demand required or desired to be given under this Lease
shall be in writing and shall be personally served or in lieu of personal
service may be given by mail. If given by mail, such notice shall be deemed to
have been given when seventy-two (72) hours have elapsed from the time when such
notice was deposited in the United States mail, registered or certified, and
postage prepaid, addressed to the party to be served. At the date of execution
of this Lease, the addresses of Landlord and Tenant are as set forth in
Paragraph 1. After the Commencement Date, the address of Tenant shall be the
address of the Premises. Either party may change its address by giving notice of
same in accordance with this paragraph.

        30. Attorneys' Fees.

        If either party brings any action or legal proceeding for damages for an
alleged breach of any provision of this Lease, to recover rent, or other sums
due, to terminate the tenancy of the Premises or to enforce, protect or
establish any term, condition or covenant of this Lease or right of either
party, the prevailing party shall be entitled to recover as a part of such
action or proceedings, or in a separate action brought for that purpose,
reasonable attorneys' fees and costs.

        Notwithstanding the foregoing and in addition thereto, Landlord shall be
entitled to immediate receipt from Tenant for each breach hereof of such
reasonable attorneys' fees, but not less than Fifty and no/100ths Dollars
($50.00), as may be incurred in connection with each notice or demand delivered
to Tenant pursuant to Paragraph 29. Tenant agrees that such sums constitute
reimbursement to Landlord only of the reasonable costs to Landlord of the
preparation and delivery of each notice caused by Tenant's breach hereunder.

        31. Estoppel Certificates.

        Tenant shall within seven (7) days following written request by
Landlord:

                      (i) Execute and deliver to Landlord any documents,
including estoppel certificates, in the form prepared by Landlord (a) 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 (b) acknowledging that there are not,
to Tenant's knowledge, any uncured defaults on the part of Landlord, or, if
there are uncured defaults on the part of the Landlord, stating the nature of
such uncured defaults, and (c) evidencing the status of the Lease as may be
required either by a lender making a loan to Landlord to be secured by deed of
trust or mortgage covering the Premises or a purchaser of the Premises from
Landlord.

                                       17
<PAGE>   31
Tenant's failure to deliver an estoppel certificate within seven (7) days after
delivery of Landlord's written request therefor shall be conclusive upon Tenant
(a) that this Lease is in full force and effect, without modification except as
may be represented by Landlord, (b) that there are now no uncured defaults in
Landlord's performance and (c) that no Rent has been paid in advance.

If Tenant fails to so deliver a requested estoppel certificate within the
prescribed time, such failure shall constitute an irrevocable appointment of
Landlord as Tenant's attorney-in-fact to act in Tenant's name, place and stead
to execute such estoppel certificate.

                      (ii) Deliver to Landlord the current financial statements
of Tenant, and financial statements of the two (2) years prior to the current
financial statements year, with an opinion of a certified public accountant,
including a balance sheet and profit and loss statement for the most recent
prior year, all prepared in accordance with generally accepted accounting
principles consistently applied.

        32. Transfer of the Premises by Landlord.

        In the event of any conveyance of the Premises and assignment by
Landlord of this Lease, Landlord shall be and is hereby entirely released from
all liability under any and all of its covenants and obligations contained in or
derived from this Lease occurring after the date of such conveyance and
assignment.

        33. Landlord's Right to Perform Tenant's Covenants.

        If Tenant shall at any time fail to make any payment or perform any
other act on its part to be made or performed under this Lease, Landlord may,
but shall not be obligated to and without waiving or releasing Tenant from any
obligation of Tenant under this Lease, make such payment or perform such other
act to the extent Landlord may deem desirable, and in connection therewith, pay
expenses and employ counsel. All sums so paid by Landlord and all penalties,
interest and costs in connection therewith shall be due and payable by Tenant on
the next day after any such payment by Landlord, together with interest thereon
at the Interest Rate from such date to the date of payment thereof by Tenant to
Landlord, plus collection costs and attorneys' fees. Landlord shall have the
same rights and remedies for the nonpayment thereof as in the case of default in
the payment of Rent.

        34. Tenant's Remedy.

        If Landlord shall fail to perform any covenant, term, or condition of
this Lease upon Landlord's part to be performed, Tenant shall be required to
deliver to Landlord written notice of the same. If, as a consequence of such
default, Tenant shall recover a money judgment against Landlord, such judgment
shall be satisfied only out of the proceeds of sale received upon execution of
such judgment and levied thereon against the right, title and interest of
Landlord in the Premises and out of Rent or other income from such property
receivable by Landlord or out of consideration received by Landlord from the
sale or other disposition of all or any part of Landlord's right, title or
interest in the Premises, and neither Landlord nor its Agents shall be liable
for any deficiency.

        35. Mortgagee Protection.

        In the event of any default on the part of Landlord, Tenant will give
notice by registered or certified mail to any beneficiary of a deed of trust or
mortgagee of a mortgage covering the Premises, and shall offer such beneficiary
or mortgagee a reasonable opportunity to cure the default, including time to
obtain possession of the Premises by power of sale or a judicial foreclosure, if
such should prove necessary to effect a cure.

        36. Brokers.

        Tenant warrants and represents that it has had no dealings with any real
estate broker or agent in connection with the negotiation of this Lease, except
for CPS representing Tenant and JMI Commercial representing Landlord, and that
it knows of no other real estate broker or agent who is or might be entitled to
a commission in connection with this Lease. Tenant agrees to indemnify and hold
harmless Landlord and its Agents harmless from and against any and all
liabilities or expenses, including attorneys' fees and costs, arising out of or
in connection with claims made by any other broker or individual for commissions
or fees resulting from Tenant's execution of this Lease if such claim arises
because of alleged action, contract, or commitment made by Tenant.

                                       18
<PAGE>   32
        37. Acceptance.

        Delivery of this Lease, duly executed by Tenant, constitutes an offer to
lease the Premises, and under no circumstances shall such delivery be deemed to
create an option or reservation to lease the Premises for the benefit of Tenant.
This Lease shall only become effective and binding upon full execution hereof by
Landlord and delivery of a signed copy to Tenant. Upon acceptance of Tenant's
offer to lease under the terms hereof and receipt by Landlord of the Security
Deposit in connection with Tenant's submission of said offer, Landlord shall be
entitled to retain such deposit and apply same to damages, costs and expenses
incurred by Landlord if Tenant fails to occupy the Premises. If Landlord
declines said offer, any such deposit shall be returned to Tenant.

        38. Recording.

        Neither party shall record this Lease nor a short form memorandum
thereof.

        39. Quitclaim.

        Upon any termination of this Lease, Tenant shall, at Landlord's request,
execute, have acknowledged and deliver to Landlord a quitclaim deed of the
Premises.

        40. Modifications for Lender.

        If, in connection with obtaining financing for the Premises or any
portion thereof, Landlord's lender shall request reasonable modification to this
Lease as a condition to such financing, Tenant shall not unreasonably withhold,
delay or defer its consent thereto, provided such modifications do not
materially adversely affect Tenant's rights hereunder.

        41. Parking.

        Tenant shall have the right to park in the Building's parking facilities
of the Building upon terms and conditions as may from time to time be
established by Landlord. Tenant agrees not to overburden the parking facilities
and agrees to cooperate with Landlord in the use of the parking facilities.

        42. Lease Contingency.

        It is understood by both the Landlord and Tenant that this Lease is
expressly conditioned upon the successful completion and execution by all
parties to a termination agreement for a Lease between the Landlord and Steven
Sherman, HLS Duplication, et al as Tenant and Nimbus Corporation as a Subtenant.
Said termination agreement shall be completed and executed within ten (10)
working days of the Agreement Date. If a termination agreement has not been
completed, executed, and a valid copy delivered to Tenant within the time
provided, either party to this Lease may terminate the Lease and the Tenant
shall be refunded all monies paid to Landlord, and neither party shall have any
further obligation to the other.

        43. Option to Extend Term.

        Providing Lessee is not in default with any of the terms, provisions, or
conditions of this Lease, Lessee shall have the right to extend the term of this
Lease for one additional three year period following the expiration of the
original term, by giving written notice of Lessee's intent to exercise the
option to Lessor at least 120 days prior to the expiration of the original term
or 120 days prior to the expiration of the then extended term. At the beginning
of the extended term, the Monthly Base Rent shall be adjusted to reflect 95% of
the then prevailing market rent at the time each option is exercised.

        The parties shall have thirty (30) days after Lessor receives the option
notice in which to agree on Monthly Base Rent during the extended term. If the
parties agree on the Monthly Base Rent for the extended term during that period,
they shall immediately execute an Addendum to this Lease stating the Monthly
Base Rent.

        If the parties are unable to agree on the Fair market rent for the
extended term within that period, then within ten (10) days after the expiration
of that period each party, at its cost and by giving notice to the other party,
shall appoint a real estate appraiser with at least 5 years' full time
commercial appraisal experience in the area in which the Premises are located to
appraise and set the fair market rent for the Premises. If a party does not
appoint an appraiser within ten (10) days after the other party has given notice
of the name of its appraiser, the single appraiser appointed shall be the sole
appraiser and shall set the fair market rent for the Premises. If the two
appraisers are appointed by the parties as stated in

                                       19
<PAGE>   33
this paragraph, they shall meet promptly and attempt to set the fair market rent
for the Premises. If they are unable to agree within thirty (30) days after the
second appraiser has been appointed, they shall attempt to elect a third
appraiser meeting the qualifications stated in this paragraph within ten (10)
days after the last day the two appraisers are given to set the fair market rent
for the Premises. If they are unable to agree on the third appraiser, either of
the parties to this Lease by giving ten (10) days' notice to the other party can
apply to the American Arbitration Association for the purpose of selecting the
third appraiser. Each of the parties shall bear one half of the cost of
appointing the third appraiser and of paying the third appraiser's fee. The
third appraiser, however selected, shall be a person who has not previously
acted in any capacity for either party.

        Within thirty (30) days after the selection of the third appraiser, a
majority of the appraisers shall set the fair market rent for the Premises. If a
majority of the appraisers are unable to do so within the stipulated period of
time, the appraisal which is neither highest nor lowest shall be the fair market
rent for the Premises.

        If a fair market rent is established by appraisal as provided above, the
appraiser(s) shall so notify the parties and 95% of the agreed fair market rent
for the extended term shall be set forth in an Addendum and attached to this
Lease.

        44. General.

               A. Captions. The captions and headings used in this Lease are for
the purpose of convenience only and shall not be construed to limit or extend
the meaning of any part of this Lease.

               B. Executed Copy. Any fully executed copy of this Lease shall be
deemed an original for all purposes.

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

               D. Separability. In case any one or more of the provisions
contained herein, except for the payment of Rent, shall for any reason be held
to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not affect any other provision of this
Lease, but this Lease shall be construed as if such invalid, illegal or
unenforceable provision had not been contained herein.

               E. Choice of Law. This Lease shall be construed and enforced in
accordance with the laws of the State of California. The language in all parts
of this Lease shall in all cases be construed as a whole according to its fair
meaning and not strictly for or against either Landlord or Tenant.

               F. Gender: Singular, Plural. When the context of this Lease
requires, the neuter gender includes the masculine, the feminine, a partnership
or corporation or joint venture, and the singular includes the plural.

               G. Binding Effect. The covenants and agreement contained in this
Lease shall be binding on the parties hereto and on their respective successors
and assigns to the extent this Lease is assignable.

               H. Waiver. The waiver by Landlord of any breach of any term,
condition or covenant, of this Lease shall not be deemed to be a waiver of such
provision or any subsequent breach of the same or any other term, condition or
covenant of this Lease. The subsequent acceptance of Rent hereunder by Landlord
shall not be deemed to be a waiver of any preceding breach at the time of
acceptance of such payment. No covenant, term or condition of this Lease shall
be deemed to have been waived by Landlord unless such waiver is in writing
signed by Landlord.

               I. Entire Agreement. This Lease is the entire agreement between
the parties, and there are no agreements or representations between the parties
except as expressed herein. Except as otherwise provided herein, no subsequent
change or addition to this Lease shall be binding unless in writing and signed
by the parties hereto.

               J. Authority. If Tenant is a corporation or a partnership, each
individual executing this Lease on behalf of said corporation or partnership, as
the case may be, represents and warrants that he is duly authorized to execute
and deliver this Lease on behalf of said entity in accordance with its corporate
bylaws, statement of partnership or certificate of limited partnership, as the
case may be, and that this Lease is binding upon said entity in accordance with
its terms. Landlord, at its option, may require a copy of such

                                       20
<PAGE>   34
written authorization to enter into this Lease. The failure of Tenant to deliver
the same to Landlord within seven (7) days of Landlord's request therefor shall
be deemed a default under this Lease.

               K. Exhibits. All exhibits, amendments, riders and addendums
attached hereto are hereby incorporated herein and made a part hereof. THIS
LEASE is effective as of the date the last signatory necessary to execute the
Lease shall have executed this Lease.

TENANT:                          TeleSensory, Corporation, a California
                                 Corporation

Dated:                           7-7-97
------

                                 /s/ Signature Illegible
                                 -----------------------------------------------
By: Its:

By:                              Yakov G. Soloveychik
                                 ------------------------

                                 Sr. VP & General Manager BPD TSC
Its:                             -----------------------------------------------

LANDLORD:                        Pace Properties, a California Limited
                                 Partnership

Dated                            7-7-97
                                 -----------------------------------------------

By: Its:                         General Partner
                                 -----------------------------------------------

                                 /s/ Signature Illegible
                                 -----------------------------------------------
By:

Its:                             -----------------------------------------------

Dated                            -----------------------------------------------

By: Its:                         General Partner
                                 -----------------------------------------------

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

                                       21
<PAGE>   35
                                [EXHIBIT OMITTED]

<PAGE>   36
                                    EXHIBIT B

                              Work Letter Agreement

In connection with the Tenant Improvements to be installed on the Premises
reference in paragraph 9. of the Lease, the parties hereby agree as follows:

1.      Major Improvements

1.1     Landlord shall retain the services of an architect for the completion of
        final working architectural and engineering plans and specifications for
        the Tenant Improvements to be constructed on the Premises in accordance
        with paragraph 9. of the lease ("Final Plans and Specifications").
        Tenant shall cooperate diligently with the architect, and shall furnish
        (within five (5) business days following the execution of the Lease set
        forth in the Lease), all information required by the architect for
        completion of the Final Plans and Specifications. Landlord and Tenant
        shall indicate their approval of the Final Plans and Specifications by
        initialing them within ten (10) business days of the execution of the
        Lease set forth in the Lease and attaching them hereto as Exhibit B-1.
        Either party shall have the right to terminate this Lease upon written
        notice to the other party, in the event the Final Plans and
        Specifications are not approved by Tenant and Landlord in writing within
        the time frame provided. Upon completion of Final Plans and
        Specifications and approval thereof by Landlord and Tenant, Landlord
        shall commence with said work.

1.2.    Identified area of approximately 50'x110' to be walled in, have dropped
        ceiling added with office lighting, finished floor equivalent to other
        office areas on premises, and air conditioning and electrical.

1.3.    Electrical to include electric duplex outlets at 12' intervals on entire
        perimeter, approximately 12" from ground level.

1.4.    The Landlord shall complete, in a good and workmanlike manner and in
        accordance with all building ordinances and codes, construction of the
        Tenant Improvements at Landlord's sole expense excepting any
        improvements that Tenant may require as a result of modifying the use of
        the Premises (i.e.: additional office build out) which shall be Tenant's
        sole expense. In no event shall the Tenant Improvements include any
        installation of any trade fixtures, equipment, furniture, furnishings,
        telephone equipment, alarm equipment or other personal property to be
        used in the Premises by Tenant.

1.5.    No revisions to the approved Final Plans and Specifications shall be
        made by either Landlord or Tenant unless approved in writing by both
        parties. Any work desired by Tenant in addition to the Final Plans and
        Specifications and which is approved in writing by both parties shall be
        paid by Tenant within five (5) days of being presented a completed
        invoice or progress payment invoices for such work by the Landlord. Any
        additional construction and improvement work mandated by governmental
        authorities persuant to the Final Plans and Specifications shall also be
        paid by Tenant within five (5) days of being presented an invoice for
        such work by Landlord except that work required to the exterior of the
        building or within the landscaping and parking areas shall be the sole
        responsibility of the Landlord. If any such mandated work in any way
        alters or in addition to the original Plans and Specification and the
        parties cannot agree to such alterations and/or additions, the Landlord
        shall have sole and exclusive authority to construct and complete such
        mandated work and its obligations under paragraph 9. of the Lease The
        Tenant shall be responsible for the payment thereof as set forth in this
        paragraph 1.5.

2.      Painting

2.1.    Interior office walls to be cleaned, patched and painted to good
        commercial standards.

2.2.    Four (4) gallons each of any major color used in such interior
        repainting are to be left for Tenant for use in maintaining premises in
        good condition.

3.      Suspended ceilings

3.1.    All missing, damaged, water-stained or dirty panels to be replaced.

3.2.    Bent, damaged or dirty t-bar to be cleaned or replaced as appropriate.

4.      Carpeting

4.1.    All carpeted areas to be stretched and cleaned.

                                  Exhibit B - 1

<PAGE>   37
4.2.    Any areas displaying noticeable wear, color fading (as demonstrated by
        gross disparities in color between different areas) or other damage or
        disrepair requires replacement with best-match color and comparable
        grade of carpeting.

5.      Tiled floors

5.1.    Missing or damaged tiles to be replaced, including where cracked or
        uneven (may require smoothing floor underneath if reasonably and
        economically feasible).

5.2.    Floors to be thoroughly cleaned.

5.3.    Anti-skid finish to be applied (not a "high gloss wax," which is deemed
        too slippery for safety purposes).

6.      Concrete floors

6.1.    Bolts protruding from concrete floors are to be removed and/or brought
        down to smooth floor level by filing.

6.2.    All concrete floors are to be cleaned, patched as needed, and sealed to
        good industrial standards.

7.      Lighting

7.1.    All light bulbs to be operating (i.e., burnt-out bulbs are to be
        replaced).

7.2.    Bulbs in "yellow room" to be replaced with ordinary cool-white
        fluorescent.

8.      HVAC and Space Heaters

8.1.    System is to be inspected, serviced and cleaned.

8.2.    Any damaged or missing grills, grates, ductwork, and filters, etc. is to
        be repaired or replaced as needed, including specific damage noted near
        far end of warehouse area.

8.3.    Ceiling inlets and returns are to be cleaned where there is accumulation
        of dirt and debris.

8.4.    All thermostats and space heaters to be repaired as needed to bring to
        good working order.

9.      Structural Matters

9.1.    Roof: all leaks to be fixed to good quality prior to occupancy. Landlord
        shall, notwithstanding any damage caused by or protrusions made by
        Tenant, repair any leaks to the roof as soon as possible after the first
        appreciable rain fall within the first year of the Lease.

9.2.    All "mid-floor" non-structural (non-load-bearing) columns, pipes of any
        type, pedestal-type electrical service, and the like are to be removed.

9.3.    All PVC piping for water or other fluids is to be removed.

9.4.    Rack and pallet near "chiller area" may be left in place on premises, at
        no additional cost to Tenant, but if so, Tenant must be advised of this
        at time of Lease Execution. If left in place, the racks shall be the
        property of the Landlord.

9.5.    All other rack and pallet, including associated sprinkler systems (main
        warehouse area) are to be removed. However, Tenant will permit them to
        be left in place at no cost to Tenant, and will itself pay for any
        needed moving or removal, provided that (a) Removal thereof by Landlord
        is not required at termination of lease; and (b) Tenant is free to
        relocate, remove, discard or otherwise dispose of such items, if done in
        a workmanlike manner and with permits if required; and (c) Tenant is
        advised of intention to leave such items at time of execution of the
        Lease.

9.6.    The "chiller" equipment within the Premises must be removed in its
        entirety, including all associated piping and wiring (back to the
        nearest junction box), and including the pedestal on which the pumps and
        tanks are mounted, except that related equipment on the roof shall be
        left in place, with no further liability or expense to the Tenant or
        Nimbus in connection with such equipment.

                                  Exhibit B - 2

<PAGE>   38
10.     Signage

10.1.   "Nimbus" name in plastic sign over entryway and in monument near street
        to be removed, but leaving frame in place and in good serviceable
        condition so that Tenant can later insert its own name at its own
        expense.

10.2.   "Nimbus" name identification to be removed from entry door(s) and other
        locations as appropriate.

10.3.   Office signage which references specific employee names, departments,
        etc., and file holders and other accessories affixed to walls, are to be
        removed preparatory to patching and repairing any damage caused by their
        removal.

11.     Rest Rooms

11.1.   Accepted in "as is" condition, subject to operability and freedom from
        leaks for all fixtures (see next item).

11.2.   All toilets, sinks and other plumbing fixtures are to be operable, with
        no observed leaks whether on or off, or when flushed. All partitions in
        rest rooms are to be properly secured to the walls.

11.3.   Existing rest rooms are to be adequate for premises for "normal
        occupancy." Any additional work on rest rooms (including handicapped
        access and additional fixtures) necessitated by Tenant's subdivision of
        premises for purposes of subleasing and/or due to the additional build
        out of office space is to be done at Tenant's expense, with permits, in
        a good workmanlike manner. Any and all modifications to the Premises,
        prior to commencement of work, shall have Landlord's written permission,
        which shall not unreasonably be withheld.

12.     Compressors and Compressed Air Supply

12.1.   The smaller compressor near the loading dock is to remain with the
        premises, as Landlord's Property.

12.2.   In all situations where a compressed air outlet "hangs" in the middle of
        a workspace (away from walls), including where there are non-structural
        support columns to which they are affixed, the piping is to be "backed
        up" so that it is concealed above the false ceiling, and such support
        columns are to be removed.

12.3.   In all situations where a compressed air outlet is affixed to a wall or
        structural support member, generally with a valve at that point, the
        piping is to be left in place, but with no additional piping extending
        away from the wall.

12.4.   The compressor system is to be checked and confirmed to hold pressure to
        customary commercial standards.

13.     Electrical apparatus and wiring

13.1.   The three motion-sensitive electrically-operated doors on the premises
        are to remain, and are to be confirmed as being in good working order.

13.2.   Electrical drop cords removed by the former tenant are to be left on
        premises for possible use by Tenant but shall remain the property of
        Landlord.

13.3.   Currently-installed drop cords and communication wires are to remain in
        place.

13.4.   All electrical junction boxes and outlet boxes which are securely
        mounted to an existing wall or other fixture of the Premises are to
        remain in place, and to be repaired where necessary.

13.5.   Existing safety (emergency) lighting to remain in place, unless
        relocation is required in connection with build-out.

14.     "Wet Room"

14.1.   Shower and eye bath are to be left in place.

14.2.   All equipment, pedestals, the concrete barrier in the north east corner
        and the sump are to be removed, and the floor returned to smooth
        concrete surface condition with proper rebar reinforcement where needed,
        with a similar sealing as exists on the balance of floor in the wet
        room.

14.3.   Wall-mounted fresh water piping to be left in place to the valve only.

                                  Exhibit B - 3

<PAGE>   39
14.4.   Vent hood and associated ducting to be removed.

14.5.   All PVC piping and existing ductwork and exhaust systems to be removed
        in the wet room and all ceiling areas throughout.

14.6.   Room to be well-ventilated which should generally be at ceiling level
        (one duct now reaches to floor level) with proper registers and/or
        covers over.

14.7.   Room to be thoroughly cleansed of any noxious or potentially-harmful
        chemicals, so that Tenant's use is unimpaired.

15.     Miscellaneous

15.1.   The large space recently opened in the wall between the printing room
        and the warehouse is to be closed up, with appearance to match the
        surrounding walls. The floor to ceiling wall in the center of the
        building shall be re-sheet rocked, tapped, and painted where damaged.
        All walls damaged shall be properly patched and repaired as needed.

15.2.   Drawings and plans for the premises' electrical and HVAC systems are to
        be provided for Tenant's use.

15.3.   A clearly-marked and labeled set of keys is to be provided for all
        exterior and interior keyed doors, with additional copies where readily
        available, including for keyed electrical panels.

15.4.   Lessor is to provide a copy of recent (within one year) Fire Department
        inspection of the sprinkler system, or to arrange for such inspection
        prior to occupancy.

15.5.   All roll-up doors and dock levelers are to be repaired as needed based
        on prior damage, and ensured to be in operating status.

15.6.   Existing window blinds as observed during walk-through to be cleaned and
        remain with premises. In at least two observed cases, repair or
        replacement is required.

15.7.   The exterior of the premises is to be cleared of all debris, pallets,
        construction materials, and the like.

15.8.   The exterior small fenced storage areas at the rear of the property,
        against the back property line, are to be cleared of contents and the
        fencing and gates shall be repaired.

15.9.   Internal chain link fencing currently installed is to be left in place.

15.10.  All provisions herein related to removal or capping of existing
        equipment, plumbing or piping shall be subject to recommendations or
        requirements provided by a qualified hazardous materials engineer or
        equivalent, or governmental authority, and any such requirements shall
        supersede any other provisions in this Exhibit.

16.     Cafeteria

16.1.   Tenant shall have Landlord's permission to install additional cafeteria
        equipment in the employee cafeteria area, to meet its needs, subject to
        obtaining any and all permits and doing all work in a good workmanlike
        manner. This lease is not subject to Tenant obtaining permission for the
        installation of the same. If any modification to the Premises is
        required, then Tenant shall, prior to commencing with the work, obtain
        Landlord's written permission, which shall not be unreasonably withheld.

                                  Exhibit B - 4

<PAGE>   40
16.2.   Tenant customarily licenses a non-employee vendor to operate its
        cafeteria, for use by its own employees only. This is not to be deemed a
        sublease of the premises.

TENANT:                          TeleSensory, Corporation, a California
                                 Corporation

Dated:                           7-7-97
                                 -----------------------------------------------

By: Its:                         /s/ Signature Illegible
                                 -----------------------------------------------

By:                              Yakov G. Soloveychil VP & General Manager
                                 BPD TS
                                 -----------------------------------------------

Its:                             -----------------------------------------------

LANDLORD:                        Pace Properties, A California Limited
                                 Partnership

Dated                            7-7-97
                                 -----------------------------------------------

By: Its:                         General Partner
                                 -----------------------------------------------

By:                              /s/ Signature Illegible
                                 -----------------------------------------------

Its:                             -----------------------------------------------

Dated                            -----------------------------------------------

By: Its:                         General Partner
                                 -----------------------------------------------

By:
                                 -----------------------------------------------

Its:                             -----------------------------------------------

                                  Exhibit B - 5<PAGE>   1
                                                                   EXHIBIT 10.15

                                  OFFICE LEASE

                     BASIC DEFINITIONS AND LEASE PROVISIONS
                                    (Office)

               A.     The following list sets out certain defined terms and
certain financial and other information pertaining to the lease:

               1.     "Date of Lease": May 26,1998

               2.     "Landlord": Aetna Life Insurance Company

               3.     Landlord's address: 12001 N. Central Expressway, Suite
                      650, Dallas, TX. 75243

                      Contact: Allegis Realty Investors, LLC, Agent

                      Telephone: (972) 437-9778   Facsimile: (972) 783-2329

               4.     "Tenant": Stanford Microdevices, Inc.

               5.     Tenant's address: 522 Almanor Ave., Sunny Vale, CA 94086

                      Contact: Greg Baker

                      Telephone: (972) 669-0340   Facsimile: (972) 669-8150

               6.     Tenant's trade name: Stanford Microdevices, Inc.

               7.     "Building": Landlord's property located in the City of
Richardson, Dallas County, Texas, which property is described or shown on
Exhibit "A", attached to the Lease.

               8.     "Premises": A unit in the Building containing
approximately 2,889 square feet in rentable area (measured by calculating
lengths and widths to the exterior of outside walls and to the center of
interior walls, without deduction for any columns or projections necessary to
the building, and, if applicable, a proportionate share of any common areas
located on the floor(s) on which the Premises is located and a proportionate
share of any of the Building's public areas, management office, engineer's
office, and mechanical spaces, e.g., service areas housing communications, HVAC,
plumbing, fire protection and elevator equipment), being known as 1202 E.
Arapaho, Suite 102 and being described or shown on Exhibit "B", attached to the
Lease. With regard to Exhibit "B", the parties agree that the exhibit is
attached solely for the purpose of locating the Building and the Premises within
the Building and that no representation, warranty, or covenant is to be implied
by any other information shown on the exhibit (i.e., any information as to
buildings, tenants or prospective tenants, etc. is subject to change at any
time). Should a party desire to measure the square footage of the Premises, it
must do so at the time of construction of any leasehold improvements prior to
the Commencement Date, or if no leasehold improvements are to be constructed,
then prior to the Commencement Date. If such measurement reflects a different
number, then, subject to the other party's verification of the number, the
parties agree to make adjustments based on such measurement. In the event of a
dispute regarding the method of calculation, the parties agree that the
standards for measurement set by the Building Owners and Managers Association
("BOMA") shall govern and control. If no measurement is made prior to the
Commencement Date, then the parties to this Lease will be deemed to have
accepted the number contained herein as the square footage of rentable area of
the Premises throughout the Lease Term, subject to adjustment only for any
subsequent additions or deletions of space.

               9.     "Commencement Date": If Tenant is to perform the
construction of leasehold improvements, then the Commencement Date shall be as
set forth in Section 9. a. In all other instances

        a.     The earlier of (i) ________________days after the Premises are
               delivered to Tenant (as defined in Exhibit "E" attached to this
               lease), it being Landlord's estimate that the premises will be
               delivered to Tenant on or before __________________, 19_; or (ii)
               ____, 19 ___.

<PAGE>   2

        b.     July 1, 1998, subject to extension for any delay other than a
               Tenant Delay (as defined in Exhibit "E").

               10.    "Lease Term": Commencing on the Commencement Date and
continuing for 36 months after the Commencement Date; provided that if the
Commencement Date is a date other than the first day of a calendar month, then
the Lease Term shall be extended so that it expires at the end of the calendar
month following the expiration of the months noted herein.

Stanford Microdevices, Inc
Office Lease 1
Version 97.1 (TX)

<PAGE>   3

               11.    "Base Rental": The total Base Rental for the Lease Term is
$123,504.75, payable as follows:

<TABLE>
<CAPTION>
               Month(s)    Amount per s.f.   Amount per year   Amount per month
<S>            <C>         <C>               <C>               <C>
                1-12       $14.00            $40,446.00        $3,370.50
               13-24       $14.25            $41,168.25        $3,430.69
               25-36       $14.50            $41,890.50        $3,490.75
</TABLE>

               12.    "Base Expense Stop": An amount equal to actual operating
expenses incurred during the calendar year 1998.

               13.    "Tenant's Pro Rata Share": 4.24%, which is the percentage
obtained by dividing (a) the square footage of rentable area of the Premises
(2,889 sf) by (b) the square footage of rentable area of the Building (68,063
sf).

               14.    "Prepaid Rental": $3,370.50, being an estimate of the Base
Rental, for the 1 month of the Lease Term, such prepaid rental being due and
payable upon execution of this Lease.

               15.    "Security Deposit": $3,490.75, such Security Deposit being
due and payable upon execution of this Lease.

               16.    "Permitted Use": General Office in connection with
tenant's business operations only and for no other use or purpose. Tenant
acknowledges that the above specification of a "Permitted Use" means only that
Landlord has no objection to the specified use and does not include any
representation or warranty by Landlord that such specified use complies with
applicable laws and/or requires special governmental permits.

               17.    "Rent" or "rental": All amounts due from Tenant to
Landlord under Section 4.5 of the Lease), are deemed to be "rent" or "rental".

               18.    "Brokers": Insignia/ESG of Texas, Inc. and Henry S. Miller
Commercial

        B.     The foregoing Basic Lease Information is incorporated into and
made a part of the lease. If any conflict exists between any Basic Lease
Information and the Lease, then the Lease shall control.

        IN WITNESS WHEREOF, Landlord and Tenant have entered into and executed
this Lease on the Date of the Lease written above.

LANDLORD:                                       TENANT:

AETNA LIFE INSURANCE COMPANY                    STANFORD MICRODEVICES, INC.

By: Allegis Realty Investors, LLC,              By: /s/ Signature Illegible
    Its Investment Advisor and Agent

                                                Printed Name: S.D. Ocampo
                                                              ------------
By: /s/ Signature Illegible                     Title: ??
   -------------------------------------               ---
   Joseph E. Gaukler, Sr. Vice President

Stanford Microdevices, Inc
Office Lease 2
Version 97.1 (TX)

<PAGE>   4

                                 LEASE AGREEMENT

        This LEASE AGREEMENT (the "Lease") is entered into as of the Date of the
Lease between AETNA LIFE INSURANCE COMPANY ("Landlord") and STANFORD
MICRODEVICES, INC. ("Tenant").

                                    ARTICLE 1

                     BASIC DEFINITIONS AND LEASE PROVISIONS

        1.1 The definitions and basic provisions set forth in the Basic
Definitions and Lease Provisions executed by Landlord and Tenant, and attached
hereto, are incorporated herein by reference for all purposes.

                                    ARTICLE 2

                                   LEASE GRANT

        2.1 Subject to the terms and conditions of this Lease, Landlord leases
to Tenant, and Tenant leases from Landlord, the Premises for the Lease Term.

        2.2 In addition, Tenant is granted the non-exclusive right to use in
common with the other tenants and occupants the parking and other common areas
of the Building, as such may be modified from time to time by Landlord. The
grant herein provided shall not include any easement for light or air.

                                    ARTICLE 3

                      DELIVERY OF THE PREMISES; LEASE TERM

        3.1 The Lease Term shall be for the period of time specified in the
Basic Definitions and Lease Provisions, beginning on the Commencement Date, as
such date may be adjusted herein, and expiring on the Expiration Date. If this
Lease is executed before the Premises become vacant, or otherwise available, or
if any present tenant or occupant of the Premises holds over, and Landlord
cannot acquire possession of the Premises to deliver to Tenant, or if Landlord
is obligated to construct leasehold improvements in the Premises under the
provisions of Exhibit "E", but is unable to complete the leasehold improvements
by the Commencement Date due to an unavoidable delay, as defined in Exhibit "E",
then Landlord shall not be deemed to be in default hereunder, and Tenant agrees
to accept possession on such date as Landlord is able to deliver possession and
the Commencement Date shall be postponed accordingly. Thereafter, this Lease
shall continue for the full number of months set forth in the Lease Term. Except
for a postponement of the Commencement Date, this Lease shall not be affected by
any failure to deliver possession as a result of an event noted above and Tenant
shall have no claim for damages against Landlord as a result thereof, all of
which claims are hereby waived and released by Tenant.

        3.2 If Tenant takes possession of the Premises prior to the Commencement
Date for any reason, then such possession shall be subject to all the terms and
conditions of the Lease and Tenant shall pay Base Rental and other rent to
Landlord on a per diem basis for each day of occupancy prior to the Commencement
Date at the rate payable for the first month of the Lease Term. Tenant shall
not, however, be obligated to pay Base Rental and other rent to Landlord prior
to the Commencement Date if such early occupancy is only for the purpose of
constructing leasehold improvements if Tenant is required to do so under the
provisions of Exhibit "E".

        3.3 By taking possession of the Premises, it shall be conclusive
evidence that Tenant has inspected the Premises (and has sufficient knowledge
and expertise to make such inspection or has caused the Premises to be inspected
on its behalf by one or more persons with such knowledge and expertise), that
Tenant has accepted the Premises and Building as being in good and satisfactory
condition, suitable for the purposes herein intended and that the same comply
fully with Landlord's covenants and obligations under the Lease with respect to
the construction of leasehold improvements, except for any punchlist items
agreed to in writing by Landlord and Tenant, if Landlord performed the
construction of leasehold improvements. Tenant acknowledges and agrees that
Landlord has made no representation or warranty, express or implied, as to the
habitability, suitability, quality, condition or fitness of the Premises or
Building, and Tenant waives, to the extent permitted by applicable law, any
defects in the Premises or Building and any claims arising therefrom, save and
except those arising from any construction or repair obligations of

<PAGE>   5

Landlord expressly provided for in the Lease.

        3.4 Following the Commencement Date, Landlord shall prepare a
Commencement Date Letter in the form attached hereto as Exhibit "F" setting
forth the Commencement Date, Expiration Date, and confirming Tenant's acceptance
of the Premises and that Landlord has performed all of its obligations with
respect to delivery of the Premises, except as to any punchlist items previously
specified in writing and related to any construction performed by Landlord.
Tenant shall execute and deliver the Commencement Date Letter to Landlord within
ten (10) days after delivery by Landlord.

                                    ARTICLE 4

                                      RENT

        4.1 Tenant promises and agrees to pay Landlord at Landlord's address set
forth in the Lease, or such other address as Landlord may provide to Tenant, the
Base Rental and all other rent charged under this

Stanford Microdevices, Inc
Office Lease 3
Version 97.1 (TX)

<PAGE>   6

Lease without deduction or set off, for each month of the entire Lease Term. The
first monthly installment of Base Rental shall be payable by Tenant to Landlord
contemporaneously with the execution of the Lease, and thereafter, a monthly
installment of Base Rental, as may be adjusted in accordance with the provisions
of the Lease, shall be due and payable, in advance, without notice or demand on
or before the first day of each succeeding calendar month during the Lease Term.
The Base Rental for any fractional month at the beginning or end of the Lease
Term shall be prorated.

        4.2 The Base Rental is determined, in part, on Landlord's estimate of
Basic Costs incurred by Landlord each year in connection with its ownership,
operation and management of the Building. In the event that the Basic Costs
increase, or are estimated by Landlord to increase, above the levels charged to
Landlord on the Date of the Lease, Landlord shall charge to Tenant and Tenant
agrees to pay as additional rental Tenant's Pro Rata Share of any such increases
in Basic Costs in accordance with the provisions of Exhibit "C".

        4.3 The Security Deposit shall be paid to Landlord contemporaneously
with the execution of the Lease. Landlord shall hold the Security Deposit
without liability for interest and as security for the performance by Tenant of
Tenant's covenants and obligations under the Lease, it being expressly
understood that such deposit shall not be considered an advance payment of
rental or a measure of Landlord's damages in case of default by Tenant. Upon the
occurrence of any Event of Default by Tenant, Landlord may, from time to time,
without prejudice to any other remedy, use the Security Deposit to the extent
necessary to make good any arrearage of rent and any other damage, injury,
expense or liability caused to Landlord by such Event of Default. Following any
such application of the Security Deposit, Tenant shall pay to Landlord on demand
the amount so applied in order to restore the Security Deposit to its original
amount. If Tenant is not then in default of this Lease, any remaining balance of
the Security Deposit shall be returned by Landlord to Tenant upon termination of
the Lease. If Landlord transfers its interest in the Premises during the Lease
Term, Landlord may assign the Security Deposit to the transferee and thereafter
shall have no further liability for the return of the Security Deposit.

        4.4 Tenant hereby acknowledges that late payment to Landlord of rent due
hereunder will cause Landlord to incur costs and inconvenience not contemplated
by the Lease, the exact amount of which will be extremely difficult to
ascertain. If any rent due from Tenant is not received by Landlord or Landlord's
designated agent within ten (10) days after its due date, then Tenant shall pay
to Landlord as a late charge ten percent (10%) of such overdue amount, plus any
attorney's fees incurred by Landlord by reason of Tenant's failure to pay rent
when due hereunder. The parties hereby agree that such late charges represent a
fair and reasonable estimate of the cost that Landlord will incur by reason of
Tenant's late payment. Landlord's acceptance of such late charges shall not
constitute a waiver of Tenant's default with respect to such overdue amount or
estop Landlord from exercising any of the other rights and remedies granted
hereunder.

        4.5 All payments required of Tenant under the Lease shall bear interest,
beginning on the day after the due date until paid at the lesser of Twenty-One
percent (21%) per annum or the maximum lawful rate ("Default Interest"). In no
event, however, shall the charges permitted under this paragraph or elsewhere in
the Lease, to the extent the same are considered to be interest under applicable
law, exceed the maximum lawful rate of interest.

        4.6 No payment by Tenant or receipt by Landlord of a lesser amount than
the rent due under this lease shall be deemed to be other than on account of the
earliest rent due hereunder, nor shall any endorsement or statement on any check
or any letter accompanying any check or payment as rent be deemed an accord and
satisfaction, and Landlord may accept such check or payment without prejudice to
Landlord's right to recover the balance of such rent or to pursue any other
remedy provided in this lease or at law or in equity.

                                    ARTICLE 5

                                    SERVICES

        5.1 Provided no Event of Default exists, Landlord shall use all
reasonable efforts to furnish to Tenant the following services: (i) water (hot
and cold) at those points of supply provided for general use of tenants of the
Building; (ii) heated and refrigerated air conditioning ("HVAC") as appropriate,
during Normal Business Hours (which shall be on generally accepted business days
from 12:00am to 11:59pm, Monday through Sunday), and at such temperatures and in
such amounts as are reasonably considered by Landlord to be standard; (iii)
janitorial service comparable to that provided in other office buildingson
business days (if Tenant's use or floor covering or other leasehold improvements
require special services, then Tenant shall, at Landlord's option, either retain
another cleaning contractor to perform such services [with Landlord's reasonable
approval] or pay the

<PAGE>   7

additional cost reasonably determined by Landlord attributable to the special
services, as additional rent) and such window washing as may from time to time
in Landlord's judgment be reasonably required; (iv) if a multi-floor building,
then elevators for ingress and egress to the floor on which the Premises are
located, in common with other tenants, provided that Landlord may reasonably
limit the number of elevators in operation at times other than during customary
business hours and on holidays; (v) replacement of Building-standard light bulbs
and fluorescent tubes; and (vi) electrical current other than for lighting or
equipment requiring more than 110 volts, or other than for lighting or equipment
with electrical energy consumption that exceeds normal office usage as
reasonably determined by Landlord. If Tenant desires any HVAC service after
Normal Business Hours, such service shall be supplied to Tenant upon the written
request of Tenant delivered to Landlord before 3 p.m. on the business day before
the service is to be provided, and Tenant shall pay to Landlord the cost of such
service with the next due installment of monthly rent after Landlord has
delivered to Tenant an invoice therefor.

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        5.2 Tenant shall not install any electrical equipment requiring special
wiring or voltage in excess of 110 volts or otherwise exceeding Building
capacity unless approved in advance by Landlord. If approved, Landlord shall use
reasonable efforts to furnish electrical current for such lighting or equipment
through the then-existing feeders and risers serving the Building and the
Premises, and Tenant shall pay to Landlord the cost of such service with the
next due installment(s) of monthly rent after Landlord has delivered to Tenant
an invoice therefor. Landlord may determine the amount of such additional
consumption and potential consumption by either or both: (i) a survey of
Tenant's potential usage of electricity and that of standard or average tenant
usage of electricity in the Building performed by a reputable consultant
selected by Landlord and paid for by Tenant; or (ii) a separate meter in the
Premises installed, maintained, and read by Landlord, at Tenant's expense. In no
event will the use of electricity in the Premises exceed the capacity of
existing feeders and risers to or wiring in the Premises. If additional risers
or wiring are required to meet Tenant's excess electrical requirements,
Landlord, it's reasonable judgment, may elect to permit same at the sole cost
and expense of Tenant, provided such additional feeders, risers or wirings shall
not cause permanent damage or injury to the Building or the Premises, cause or
create a dangerous or hazardous condition, entail excessive or unreasonable
alterations, repairs, or expenses, or interfere with or disturb other tenants of
the Building. If Tenant uses machines or equipment in the Premises which affect
the standard temperature otherwise maintained by the air conditioning system,
Landlord may install supplemental air conditioning units or other supplemental
equipment in the Premises, and the cost thereof, including the cost of
installation, operation, use, and maintenance, shall be paid by Tenant to
Landlord with the next due installment of rent after Landlord has delivered to
Tenant an invoice therefor.

        5.3 Landlord's obligation to furnish services under Section 5.1 shall be
subject to the rules and regulations of the supplier of such services and
governmental rules and regulations. Landlord may, upon not less than thirty (30)
days' prior written notice to Tenant, discontinue any such service to the
Premises, provided Landlord first arranges for a direct connection thereof
through the supplier of such service. Tenant shall, however, be responsible for
contracting with the supplier of such service and for paying all deposits for,
and costs relating to, such service.

        5.4 Failure to any extent to furnish any service described above or any
stoppage or interruption of those services resulting from any cause shall not
render Landlord liable in any respect for damages, nor be construed as an
eviction of Tenant or work an abatement of rent, nor relieve Tenant from
fulfillment of any covenant or agreement contained in the Lease.

                                    ARTICLE 6

                                       USE

        6.1 Tenant shall use the Premises only for the Permitted Use unless
Landlord consents to another use such consent not be unreasonably withheld.
Tenant will not occupy or use the Premises, or permit any portion of the
Premises to be occupied or used, for any business or purpose other than the
Permitted Use or for any use or purpose which is unlawful or deemed to be
disreputable in any manner, or dangerous to life, limb or property, or
extrahazardous on account of fire, nor permit anything to be done which will in
any way increase the premiums for insurance coverage on the Building or contents
therein, or invalidate any insurance coverage on the Building. Tenant will
conduct its business and control its agents, employees and invitees in such a
manner as not to create any nuisance, nor interfere with, annoy or disturb other
tenants or Landlord, in the management of the Building. Tenant will not commit
waste and will maintain the Premises in a clean, healthful and safe condition
and will comply with all laws, ordinances, orders, rules and regulations (state,
federal, municipal, insurance and other agencies or bodies having any
jurisdiction thereof) with reference to the use, condition or occupancy of the
Premises, including, without limitation, all environmental, health and safety
laws and the Americans with Disabilities Act. Tenant will secure at its own
expense all permits and licenses required for the transaction of business from
the Premises in accordance with the Permitted Use. Tenant will receive or take
delivery of goods or merchandise and will remove all garbage and trash only in
the manner and areas reasonably prescribed by Landlord from time to time. Tenant
will not display or sell merchandise outside the exterior walls and doorways of
the Premises and may not use such areas for storage. Tenant will not keep any
substance or carry on or permit any operation which might emit offensive odors
or conditions into other parts of the Building or use any apparatus which might
make undue noise or vibrations in the Building. Tenant further agrees not to
install any exterior lighting, amplifiers or similar devices or use in or about
the Premises an advertising medium which may be heard or seen outside the
Premises, such as flashing lights, searchlights, loudspeakers, phonographs or
radio broadcasts.

        6.2 Tenant will, and will cause all its employees, agents, contractors
and invitees

<PAGE>   9

to, comply fully with all reasonable rules and regulations of the Building
adopted by Landlord from time to time. A copy of the rules and regulations for
the Building, existing on the Date of the Lease, are attached hereto as Exhibit
"D". Landlord shall at all times have the right to change such rules and
regulations or to promulgate other rules and regulations in such reasonable
manner as may be deemed advisable for the safety, care, or cleanliness of the
Building or Premises, and for the preservation of good order therein, all of
which rules and regulations, changes and amendments will be forwarded to Tenant
in writing and shall be carried out and observed by Tenant, provided such rules
and regulations are not in conflict with the terms of this lease.

                                    ARTICLE 7

                                     SIGNAGE

        7.1 Tenant shall not install any signs, window or door lettering or
advertising media of any type in, on or about the Premises or any part thereof,
except for such tenant identification information as Landlord permits to be
included or shown on any directory maintained in the front lobby of the Building
and adjacent to

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the access door or doors to the Premises or such other items as Landlord
approves. Should Landlord agree in writing to any of the foregoing items, Tenant
agrees to maintain same in good condition and repair at all times.

                                    ARTICLE 8

                                  COMMON AREAS

        8.1 The use and occupation by Tenant of the Premises shall include the
use in common with others entitled thereto of the common areas. The term "common
areas" shall mean those portions of the Building intended for the common use of
all tenants including, among other facilities, the parking areas, service roads,
loading facilities, sidewalks, and such other facilities as may be designated by
Landlord from time to time as common areas, subject, however, to the terms and
conditions of this Lease and to the rules and regulations governing the use of
the common areas as prescribed from time to time by Landlord. Landlord shall
have the right from time to time to change the area, level, location and
arrangement of the common areas.

        8.2 The common areas shall at all times be subject to the exclusive
control and management of Landlord. Landlord shall police the common areas and
maintain them in good condition and repair throughout the Lease Term.

        8.3 All common areas and facilities, which Tenant may be permitted to
use are to be used under a revocable license, and if such areas are diminished,
Landlord shall not be subject to any liability nor shall Tenant be entitled to
any compensation or diminution or abatement of rent, nor shall the diminution of
such areas be deemed constructive or actual eviction.

        8.4 In accordance with the provisions of Exhibit "H", Tenant shall have
the right to park in the parking areas in common with other tenants of the
Building upon such terms and conditions established by Landlord at any time
during the Lease Term, including the imposition of a reasonable parking charge
if required by governmental authority or as otherwise provided for in the Lease.
Tenant agrees not to overburden the parking areas and agrees to cooperate with
Landlord and the other tenants in use of the parking areas. Landlord reserves
the right in its absolute discretion to determine whether the parking areas are
becoming overburdened and to allocate and assign parking spaces among Tenant and
other tenants, and to reconfigure the parking areas and modify the existing
ingress to and egress from the parking areas as Landlord shall deem appropriate.

                                    ARTICLE 9

                                   ALTERATIONS

        9.1 Any leasehold improvements to the Premises contemplated by Landlord
and Tenant to be made prior to the commencement of the Lease Term shall be
performed in accordance with the provisions of Exhibit "E".

        9.2 Other than any leasehold improvements to be made under Section 9.1,
Tenant shall not make, or allow to be made, any alterations, additions or
improvements to the Premises without the prior written approval of Landlord,
which approval shall not be unreasonably withheld. All alterations, additions or
improvements installed on the Premises by either party, including, without
limitation, fixtures, but excluding readily movable trade fixtures, shall become
the property of Landlord at the expiration of the Lease Term, unless Landlord
requests their removal, in which event, Tenant shall remove any such
alterations, additions or improvements and restore the Premises to its original
condition, reasonable wear and tear excepted, at Tenant's expense.

        9.3 Prior to commencing any construction work on the Premises, Tenant
must furnish to Landlord adequate plans and specifications for the written
approval of Landlord. Once approved, Tenant shall not modify the plans and
specifications without, again, obtaining the written approval of Landlord.
Landlord's approval of the plans and specifications shall not be deemed to be a
representation by Landlord that such plans and specifications comply with
applicable insurance requirements, building codes, ordinances, laws or
regulations.

        9.4 All construction work shall be performed only by Landlord or by
contractors and subcontractors approved in writing by Landlord, which approval
shall not be unreasonably withheld. If Landlord does not perform the
construction work, then Tenant shall cause all of its contractors and
subcontractors to procure and maintain insurance coverage against such risks and
in such amounts as Landlord may reasonably require and with such companies

<PAGE>   11

as Landlord may reasonably approve, which approval shall not be unreasonably
withheld. Landlord may also require Tenant to furnish a payment and performance
bond, reasonably satisfactory to Landlord in an amount covering the cost of the
construction work, and/or require Tenant to obtain a waiver and release of liens
from all contractors and subcontractors prior to commencement of the
construction work. Tenant agrees to indemnify Landlord and hold Landlord
harmless against any loss, liability or damage resulting from any such
construction work performed by Tenant or on Tenant's behalf.

        9.5 All construction work by, or on behalf of, Tenant must be performed
in a good and workmanlike manner in accordance with the approved plans and
specifications, lien-free, and in compliance with all governmental laws and
requirements. Tenant shall only utilize new materials of a quality that is equal
or better than the quality of those materials already on the Premises.

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        9.6 Tenant shall not permit any mechanic's liens to be filed against the
Premises or the Building for any work performed, materials furnished, or
obligation incurred by or at the request of Tenant, including, but not limited
to, any work performed, materials furnished, or obligations incurred by or at
the request of Tenant for construction performed under the provisions of Exhibit
"E". If such a lien is filed, then Tenant shall, within ten (10) days after
Landlord has delivered notice of the filing to Tenant, either pay the amount of
the lien or diligently contest such lien, in which event, Tenant shall deliver
to Landlord a bond or other security reasonably satisfactory to Landlord. If
Tenant fails to timely take either such action, then Landlord may, at its
election, pay the lien claim without inquiry as to the validity thereof, and any
amounts so paid, plus Landlord's expenses and an administrative fee equal to
fifteen percent (15%) of the amount paid, shall be paid by Tenant to Landlord as
additional rental within ten (10) days after Landlord has delivered to Tenant an
invoice therefor. No work which Landlord permits Tenant to perform in the
Premises shall be deemed to be for the immediate use or benefit of Landlord so
that no mechanics or other lien shall be allowed against the estate of Landlord
by reason of its consent to such work.

                                   ARTICLE 10

                                     REPAIRS

        10.1 Landlord shall not be required to make any repairs or replacements
of any kind or character on the Premises during the Lease Term except repairs to
the exterior walls, corridors, window, roof and other structural elements and
equipment of the Building, except when such repairs are caused by fire or other
casualty, in which event, the provisions of Article 13 shall govern and control.
Landlord shall not be responsible for termite, or other insect, or vermin
eradication. Subject to the provisions of any waiver contained in Section 12.2,
Landlord shall not be required to make any repairs occasioned by the acts or
negligence of Tenant, its agents, employees, contractors and invitees. Tenant
shall give immediate written notice to Landlord of the need for repairs or
corrections and Landlord shall have a reasonable time to make such repairs or
corrections. Landlord's liability hereunder shall be limited to the cost of such
repairs or corrections. Tenant waives the provisions of any law permitting
Tenant the right to make repairs and deduct the expense of such repairs from the
rent due under the lease.

        10.2 Landlord may, at its option and at the cost and expense of Tenant,
repair or replace any damage or injury done to the Building or any part thereof,
caused by Tenant, its agents, employees, contractors or invitees. Tenant shall
pay such costs, plus an administrative fee equal to Ten percent (10%) of the
costs, to Landlord on the next date an installment of Base Rental is due
following notice from Landlord of the costs. Tenant further agrees throughout
the Lease Term to maintain and keep the interior of the Premises in good repair
and condition at Tenant's expense.

                                   ARTICLE 11

                            ASSIGNMENT AND SUBLETTING

        11.1 Tenant shall not, without the prior written consent of Landlord
(which Landlord may grant or deny in its sole reasonable discretion), (i)
advertise that any portion of the Premises is available for lease, (ii) assign,
transfer, or encumber this Lease or any estate or interest herein, whether
directly or by operation of law, (iii) permit any other entity to become Tenant
hereunder by merger, consolidation, or other reorganization (iv) if Tenant is an
entity other than a corporation whose stock is publicly traded, permit the
transfer of an ownership interest in Tenant so as to result in a change in the
current control of Tenant, (v) sublet any portion of the Premises, (vi) grant
any license, concession, or other right of occupancy of any portion of the
Premises, or (vii) permit the use of the Premises by any parties other than
Tenant (any of the events listed in Sections 11.1(ii) through 11.1(vii) being a
"Transfer"). If Tenant requests Landlord's consent to a Transfer, then Tenant
shall provide Landlord with a written description of all terms and conditions of
the proposed Transfer, copies of the proposed documentation, and the following
information about the proposed transferee: name and address; reasonably
satisfactory information about its business and business history; its proposed
use of the Premises; banking, financial, and other credit information; and
general references sufficient to enable Landlord to determine the proposed
transferee's creditworthiness and character. Tenant shall reimburse Landlord for
its attorneys' fees and other expenses incurred in connection with considering
any request for its consent to a Transfer. If Landlord consents to a proposed
Transfer, then the proposed transferee shall deliver to Landlord a written
agreement whereby it expressly assumes the obligations of Tenant hereunder;
however, any transferee of less than all of the space in the Premises shall be
liable only for the obligations under this Lease that are properly allocable to
the space subject to the Transfer, and only to the extent of the rent it has
agreed to pay Tenant

<PAGE>   13

therefor. Landlord's consent to a Transfer shall not release Tenant from
performing its obligations under this Lease, but rather Tenant and its
transferee shall be jointly and severally liable therefor. Landlord's consent to
any Transfer shall not waive Landlord's rights as to any subsequent Transfers.
If an Event of Default occurs while the Premises or any part thereof are subject
to a Transfer, then Landlord, in addition to its other remedies, may collect
directly from such transferee all rents becoming due to Tenant and apply such
rents against Base Rental and other amounts due under this Lease. Tenant
authorizes its transferees to make payments of rent directly to Landlord upon
receipt of notice from Landlord to do so.

        11.2 Landlord may, by written notice, within thirty (30) days after
submission of Tenant's written request for Landlord's consent to a Transfer,
cancel this Lease (or, as to a subletting or assignment, cancel as to the
portion of the Premises proposed to be sublet or assigned) as of the date the
proposed Transfer was to be effective. If Landlord cancels this Lease as to any
portion of the Premises, then this Lease shall cease for such portion of the
Premises and Tenant shall pay to Landlord all Base Rental and other amounts
accrued through the cancellation date relating to the portion of the Premises
covered by the proposed Transfer and all brokerage commissions paid or payable
by Landlord in connection with this Lease that are allocable to such portion of
the

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Premises. Thereafter, Landlord may lease such portion of the Premises to the
prospective transferee (or to any other person) without liability to Tenant.

        11.3 Tenant shall pay to Landlord, immediately upon receipt thereof, all
compensation received by Tenant for a Transfer that exceeds the Base Rental and
other amounts due under the Lease, excluding any amount due under this Section
11.3 and allocable to the portion of the Premises covered thereby.

        11.4 Landlord may sell, transfer, assign or convey all or any part of
its interest in the Building and the Lease and, in the event Landlord assigns
its interest in this Lease, Landlord shall be released from any further
obligation and liabilities hereunder, and Tenant agrees to attorn and look
solely to Landlord's successor-in-interest for performance of such obligation.

                                   ARTICLE 12

                   INSURANCE; WAIVERS; SUBROGATION; INDEMNITY

        12.1 Tenant shall at its expense procure and maintain throughout the
Lease Term the following insurance policies: (i) commercial general liability
insurance in amounts of not less than $1,000,000 per occurrence, combined single
limit, or such other amounts as Landlord may from time to time reasonably
require, insuring Tenant, Landlord and Landlord's agents against all liability
for injury to or death of a person or persons or damage to property arising from
the use and occupancy of the Premises, (ii) contractual liability insurance
coverage sufficient to cover Tenant's indemnity obligations hereunder, (iii)
casualty insurance, including "all risks" and fire and extended coverage
insurance covering the full value of Tenant's leasehold improvements, personal
property and other property (including the property of others), located in or on
the Premises, (iv) workman's compensation insurance, containing a waiver of
subrogation endorsement reasonably acceptable to Landlord, (v) comprehensive
automobile liability insurance, insuring Tenant, Landlord and Landlord's agents,
(vi) business interruption insurance, and (vii) such other insurance and in such
amounts as Landlord may reasonably require from time to time. Tenant's insurance
shall provide primary coverage to Landlord when any policy issued to Landlord
provides duplicate or similar coverage, and in such circumstance, Landlord's
policy will be excess over Tenant's policy. Tenant shall furnish certificates of
insurance and such other evidence satisfactory to Landlord of the maintenance of
all insurance coverages required hereunder prior to the Commencement Date, and
Tenant shall obtain a written obligation on the part of each insurance company
to notify Landlord at least thirty (30) days before cancellation or a material
change of any such insurance. All such insurance policies shall name Landlord as
additional insured or loss payee, as applicable, and otherwise shall be in form,
and issued by companies, reasonably satisfactory to Landlord and with
deductibles reasonably satisfactory to Landlord. Tenant's failure to maintain
any insurance hereunder shall constitute an Event of Default without any written
notice required of Landlord and, in such event, Landlord shall have the right,
but not the obligation, to purchase any insurance that has lapsed. Should
Landlord elect to purchase insurance on behalf of Tenant, then Tenant shall
reimburse to Landlord the cost of such insurance and an administrative fee of
fifteen percent (15%) of the amount of the premium within ten (10) days of the
date of the notice from Landlord seeking the reimbursement. The policy limits of
any insurance required to be carried by Tenant shall not limit the liability of
Tenant under this Lease.

        12.2 Landlord shall not be liable to Tenant or those claiming by,
through, or under Tenant for any injury to or death of any person or persons or
the damage to or theft, destruction, loss, or loss of use of any property or
inconvenience (a "Loss") caused by casualty, theft, fire, third parties, or any
other matter (including Losses arising through repair or alteration of any part
of the Premises, or failure to make repairs, or from any other cause),
regardless of whether the negligence of any party caused such Loss in whole or
in part. Landlord and Tenant waive any claim each might have against the other
for any damage to or theft, destruction, loss, or loss of use of any property,
to the extent the same is covered under any insurance policy that covers the
Building, the Premises, Landlord's or Tenant's fixtures, personal property,
leasehold improvements, or business, or, in the case of Tenant's waiver, is
required to be insured against under the terms of the Lease, regardless that the
negligence or fault of the other party caused such loss; however, the waiver
shall not apply to the portion of any damage which is not reimbursed by the
damaged party's insurance by reason of the deductible in such party's insurance
coverage, or apply to any coinsurance penalty which Landlord might sustain. Each
party shall cause its insurance carrier to endorse all applicable policies
waiving the carrier's rights of recovery under subrogation or otherwise against
the other party.

        12.3 Subject to the provisions of Section 12.2, Tenant shall defend,
indemnify, and hold harmless Landlord and its employees and agents from and
against all claims, demands, liabilities, causes of action, suits, judgments,
and expenses (including attorneys' fees)

<PAGE>   15

for any Loss arising from an occurrence on the Premises or caused by or
resulting from the condition of the Premises, or from the acts or omissions of
Tenant or Tenant's employees, agents, contractors or invitees, or from Tenant's
failure to perform any of its obligations under this Lease (other than a Loss
arising from the gross negligence or willful misconduct of Landlord or its
employees or agents), even though caused or alleged to be caused by the joint,
comparative, or concurrent negligence or fault of Landlord or its employees and
agents, and even though any such claim, cause of action, or suit is based upon
or alleged to be based upon the strict liability of Landlord or its employees
and agents, provided that this indemnity shall not apply to the gross negligence
or willful misconduct of Landlord or its employees or agents. THIS INDEMNITY
PROVISION IS INTENDED TO INDEMNIFY LANDLORD AND ITS EMPLOYEES AND AGENTS AGAINST
THE CONSEQUENCES OF THEIR OWN NEGLIGENCE OR FAULT (BUT NOT THE GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT OF LANDLORD OR ITS EMPLOYEES OR AGENTS) AS PROVIDED ABOVE
WHEN LANDLORD OR ITS EMPLOYEES AND AGENTS ARE JOINTLY, COMPARATIVELY, OR
CONCURRENTLY NEGLIGENT WITH TENANT.

        12.4 Tenant shall not use, and shall not permit any subtenant, licensee,
concessionaire, employee, agent or invitee (hereinafter collectively "Tenant's
Representatives") to use, any portion of the Premises or

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Building, for the placement, storage, manufacture, disposal or handling of any
hazardous materials (hereinafter defined) unless Tenant complies with all
applicable environmental laws (federal, state or local), including, but not
limited to those for obtaining proper permits. In the event Tenant or Tenant's
Representatives desire to use or place hazardous materials on the Premises it
shall notify Landlord in writing thirty (30) days prior to such proposed use or
placement, and provide the names of the hazardous materials, procedures to
insure compliance with the applicable environmental law and such other
information as Landlord may reasonably request.

        In the event Tenant or Tenant's Representatives places, releases or
discovers any hazardous materials on the Premises or Building in violation of
applicable environmental laws, Tenant shall immediately notify Landlord of such
fact in writing within twenty-four (24) hours of the placement, release or
discovery. Tenant shall not attempt any removal, abatement or remediation of
those hazardous materials on the Premises in violation of applicable
environmental laws, without obtaining the additional written consent of
Landlord, which consent may be specifically conditioned on Landlord's right to
approve the scope, timing and techniques of any such work and the appointment of
all contractors, engineers, inspectors and consultants in connection with any
such work. Tenant shall be responsible for the cost of any removal, abatement
and remediation work of any hazardous materials placed, stored, manufactured,
disposed of or handled by Tenant or Tenant's Representatives on the Premises or
any other portion of the Building and for the cost of any removal, abatement or
remediation of any hazardous materials which might be disturbed or released as a
result of any remodeling or construction in the Premises by Tenant or Tenant's
Representatives. Such costs shall include, without limitation, the cost of any
supervision by Landlord, its employees or agents, in connection with such work.
Tenant shall comply with all environmental laws in connection with any such
removal.

        Tenant shall indemnify Landlord, its shareholders, directors, officers,
employees and agents and hold them harmless, from and against any loss, damage
(including, without limitation, a loss in value of the Building or damages due
to restrictions on marketing contaminated space), cost, liability or expense
(including reasonable attorneys' fees and expenses and court costs) arising out
of the placement, storage, use, manufacture, disposal, handling, removal,
abatement or remediation of any hazardous materials by Tenant or Tenant's
Representatives on the Premises or Building, or any removal, abatement or
remediation of any hazardous materials required hereunder to be performed or
paid for by Tenant, with respect to any portion of the Premises or the Building,
or arising out of any breach by Tenant of its obligations under this paragraph.

        The term "hazardous materials" as used herein shall mean (i) any
"hazardous waste" as defined by the Resource Conservation and Recovery Act of
1976 (42 U.S.C. Section 6901 et seq.), as amended from time to time, and
regulations promulgated thereunder; (ii) any "hazardous substance" as defined by
the Comprehensive Environmental Response, Compensation and Liability Act of 1980
(42 U.S.C. Section 9601, et seq.), as amended from time to time, and regulations
promulgated thereunder; (iii)'asbestos or polychlorinated biphenyls; (iv) any
substance the presence of which on the Building or on the Premises is prohibited
or regulated by any federal, state or local law, regulation, code or rule; and
(v) any other substance which requires special handling or notification of any
federal, state or local governmental entity in its collection, storage,
treatment, or disposal.

        12.5 The indemnification provisions contained in Article 12 shall
survive the termination of this Lease.

                                   ARTICLE 13

                                FIRE AND CASUALTY

        13.1 If the Premises or or Building or any part thereof shall be
materially damaged by fire or other casualty, Tenant shall give prompt written
notice thereof to Landlord and Landlord may, at its option, terminate this Lease
by notifying Tenant in writing of such termination within sixty (60) days after
the date of such damage, in which event the rent hereunder shall be abated as of
the date of such damage. If Landlord does not elect to terminate this Lease,
Landlord shall as soon as reasonably practical after the date of such damage
commence to repair and restore the Building with reasonable diligence (except
that Landlord shall not be responsible for delays outside its control) to
substantially the same condition in which it was immediately prior to the
happening of the casualty, except that Landlord shall not be required to
rebuild, repair or replace any part of Tenant's leasehold improvements (except
to the extent originally paid by Landlord), furniture, furnishings or fixtures
and equipment removable by Tenant under the provisions of this Lease, and the
Lease Term will be extended by the period of time equal to the time to repair
and restore the damage. Tenant agrees to rebuild and restore any leasehold
improvements to the extent not required of Landlord. Tenant shall commence any
such work upon written notice from Landlord. Any insurance which may be carried
by Landlord or Tenant against loss or damage

<PAGE>   17

to the Building or to the Premises shall be for the sole benefit of the party
carrying such insurance and under its sole control.

        13.2 Landlord shall not be liable for any inconvenience or annoyance to
Tenant or injury to the business of Tenant resulting in any way from such damage
or the repair thereof. Subject to the provisions of the remainder of this
paragragh, Landlord shall allow Tenant a fair diminution of rent during the time
and to the extent the Premises are unfit for occupancy. The diminution of rent
shall expire on the date Landlord delivers the Premises to Tenant ready for
occupancy (if Landlord originally provided the leasehold improvements) or (ii)
on the date following an equivalent time allowed Tenant for the construction of
leasehold improvements after Landlord delivered the Premises to Tenant ready for
Tenant to rebuild its leasehold improvements, as contemplated in Exhibit "E" (if
Tenant originally provided the leasehold improvements). If the Premises or any
other portion of the Building is damaged by fire or other casualty

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resulting from the fault or negligence of Tenant or any of Tenant's agents,
employees or invitees, the rent hereunder shall not be diminished during the
repair of such damage and Tenant shall be liable to Landlord for the cost and
expense of the repair and restoration of the Building caused thereby to the
extent such costs and expenses are not covered by insurance proceeds.

                                   ARTICLE 14

                                  CONDEMNATION

        14.1 If all of the Building should be taken for any public or
quasi-public use under any governmental law, ordinance or regulation or by right
of eminent domain or by private purchase in lieu thereof, this Lease shall
terminate and the rent shall be abated during the unexpired portion of the Lease
Term, effective on the date physical possession is taken by the condemning
authority, and Tenant shall have no claim against Landlord for the value of any
unexpired Lease Term.

        14.2 In the event a portion but not all of the Building shall be taken
for any public or quasi-public use under any governmental law, ordinance or
regulation, or by right of eminent domain, by private sale in lieu thereof and
the partial taking or condemnation shall render the Building unsuitable for
continued operation, then Landlord shall have the option, in its sole
discretion, of terminating this Lease or, at Landlord's sole risk and expense,
restoring and reconstructing the Building to the extent necessary to make same
reasonably tenantable. Should Landlord not elect to terminate this Lease, then
Landlord shall restore the Premises and the Lease shall continue in full force
and effect with the rent payable during the unexpired portion of this Lease
being adjusted to such an extent as may be fair and reasonable under the
circumstances, and Tenant shall have no claim against Landlord for the value of
any interrupted portion of this Lease.

        14.3 Landlord shall be entitled to receive all of the compensation
awarded upon a condemnation (or the proceeds of a private sale in lieu thereof)
of all or any part of the Building or the Premises, including any award for the
value of any unexpired Lease Term, and Tenant hereby assigns to Landlord and
expressly waives all claim to any such compensation. However, Tenant reserves
for itself any separate award made for relocation cost or loss of any of
Tenant's trade fixtures, provided no such award shall diminish the amount that
would otherwise be awarded to Landlord.

                                   ARTICLE 15

                       SUBORDINATION, ATTORNMENT, ESTOPPEL

        15.1 This Lease shall be subordinate to any deed of trust, mortgage, or
other security instrument (a "Mortgage"), or any ground lease, master lease, or
primary lease (a "Primary Lease"), that now or hereafter covers all or any part
of the Premises (the mortgagee under any Mortgage or the lessor under any
Primary Lease is referred to herein as "Landlord's Mortgagee"), including any
modifications, renewals or extensions of such Mortgage or Primary Lease.
Notwithstanding the foregoing, Tenant agrees that any such Landlord's Mortgagee
shall have the right at any time to subordinate such Mortgage or Primary Lease
to this Lease on such terms and subject to such conditions as Landlord's
Mortgagee may deem appropriate in its discretion. Tenant agrees upon demand to
execute such further instruments subordinating this Lease or attorning to the
Landlord's Mortgagee as Landlord may request. In the event that Tenant should
fail to execute any subordination or other agreement required by this paragraph,
promptly as requested, Tenant hereby irrevocably constitutes Landlord as its
attorney in fact to execute such instrument in Tenant's name, place and stead,
it being agreed that such power is one coupled with an interest.

        15.2 Tenant shall attorn to any party succeeding to Landlord's interest
in the Premises, whether by purchase, foreclosure, deed in lieu of foreclosure,
power of sale, termination of lease, or otherwise, upon such party's request,
and shall execute such agreements confirming such attornment as such party may
reasonably request.

        15.3 Tenant shall not seek to enforce any remedy it may have for any
default on the part of the Landlord without first giving written notice by
certified mail, return receipt requested, specifying the default in reasonable
detail, to any Landlord's Mortgagee whose address has been given in writing to
Tenant, and affording such Landlord's Mortgagee a reasonable opportunity to
perform Landlord's obligations hereunder.

        15.4 Tenant agrees that, within ten (10) days of written request by
Landlord, it will execute and deliver to such persons as Landlord shall request
a statement in recordable form certifying that this Lease is unmodified and in
full force and effect (or if there have been modifications, that the same is in
full force and effect as so modified), stating the dates to which rent and other
charges payable under this Lease have

<PAGE>   19

been paid, stating that Landlord is not in default hereunder (or if Tenant
alleges a default stating the nature of such alleged default) and further
stating such other matters as Landlord shall reasonably require.

                                   ARTICLE 16

                                EVENTS OF DEFAULT

        16.1 The following shall be deemed to be Events of Default by Tenant
under this Lease:

        (a) Tenant shall fail to pay any installment of Base Rental or any other
rent or monetary sum when due under the provisions of the Lease, and such
failure shall continue for a period of Five (5) days after written notice from
Landlord to tenant.

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        (b) Tenant shall fail to comply with any term, provision or covenant of
this lease, other than the payment of a monetary sum, and such failure shall not
be cured within Twenty (20) days after written notice thereof to Tenant.

        (c) Tenant or any guarantor of Tenant's obligations under this Lease
shall become insolvent, or shall make a transfer in fraud of creditors, or shall
make an assignment for the benefit of creditors.

        (d) Tenant or any guarantor of Tenant's obligations under this Lease
shall file a petition under any state or federal bankruptcy or other insolvency
statutes or Tenant or any guarantor of Tenant's obligations under this Lease
shall be adjudged bankrupt or insolvent in proceeding filed against Tenant or
guarantor thereunder and such adjudication shall not be vacated or set aside
within thirty (30) days.

        (e) A receiver or trustee shall be appointed for all or substantially
all of the assets of Tenant or any guarantor of the obligations of Tenant under
this Lease and such receivership shall not be terminated or stayed within thirty
(30) days.

        (f) Tenant shall do or permit to be done anything which creates a lien
upon the Premises or upon all or any part of the Building.

        (g) Tenant shall desert or vacate any substantial portion of the
premises.

                                   ARTICLE 17

                                    REMEDIES

        17.1 Upon the occurrence of an Event of Default, Landlord shall have the
option to pursue any one or more of the following remedies without any notice or
demand whatsoever, except if required by applicable law:

        (a) Terminate this Lease in which event Tenant shall immediately
surrender the Premises to Landlord, and if Tenant fails to do so, Landlord may,
without prejudice to any other remedy which it may have for possession or
damages, enter upon and take possession and expel or remove Tenant and any other
person who may be occupying said Premises or any part thereof by any lawful
means without being liable for prosecution or any claim for damages therefor,
and Tenant agrees to pay to Landlord, as hereinafter set forth in Section 17.2,
on demand the amount of all loss and damage which Landlord may suffer by reason
of such termination, whether through inability to relet the Premises on
satisfactory terms or otherwise.

        (b) Terminate Tenant's right to possession of the Premises, but not the
Lease, in which event Tenant shall immediately surrender the Premises to
Landlord, and if Tenant fails to do so, Landlord may, without prejudice to any
other remedy which it may have for possession or damages, enter upon and take
possession of the Premises and expel or remove Tenant and any other person who
may be occupying the Premises or any part thereof by any lawful means without
being liable for prosecution or any claim for damages therefor and Tenant agrees
to pay to Landlord, as hereinafter set forth in Section 17.2, on demand the
amount of all loss and damage which Landlord may suffer by reason of such
termination, whether through inability to relet the Premises on satisfactory
terms or otherwise.

        (c) Enter upon the Premises, by any lawful means without terminating the
Lease or Tenant's right to possession and without being liable for prosecution
or any claim for damages therefor, and do whatever Tenant is obligated to do
under the provisions of this Lease, and Tenant agrees to reimburse Landlord on
demand for any expenses which Landlord may incur in thus effecting compliance
with Tenant's obligations under this Lease, plus an administrative fee equal to
fifteen percent (15%) of any expenses incurred by Landlord, and Tenant further
agrees that Landlord shall not be liable for any damages resulting to the Tenant
for such action.

        (d) Not to re-enter the Premises or terminate the Lease, but to allow
Tenant to remain in possession of the Premises, and bring suit against Tenant to
collect the monthly rents and other charges provided in this Lease as they
accrue. Landlord shall have a right to allow such deficiencies of monthly rents
and other charges provided in this Lease to accumulate and to bring an action on
several or all of the accrued deficiencies at one time. Any such suit shall not
prejudice in any way the right of Landlord to bring a similar action for any
subsequent deficiency or deficiencies.

        Tenant agrees that any re-entry into the Premises under the provisions
of subpart (b) of this Section shall not be deemed a termination of the Lease or
an acceptance of the surrender thereof, unless Landlord shall have notified
Tenant in writing that it has so elected to terminate the Lease. Tenant also
agrees that any notice pursuant to an action

<PAGE>   21

for forcible detainer or eviction shall not be deemed to be a termination of the
Lease unless Landlord shall have also notified Tenant in writing that it has so
elected to terminate the Lease. Any election of the remedy provided in subpart
(b) of this Section shall not preclude the subsequent election by Landlord of
the remedy under subpart (a) of this Section.

        Should Landlord elect to re-enter the Premises under the provisions of
subparts (a) or (b), Landlord shall make reasonable efforts to relet the
Premises. Nothing herein, however, shall prohibit Landlord from leasing any
other vacant space in the Building before leasing the Premises, or from using
its business judgment in respect to the releasing of the Premises. In this
regard, Landlord shall not be required to relet the Premises in part, rather
than a whole, or for a rental rate less than the rental rate then being offered
to prospective tenants for other space in the Building.

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        17.2 Should Landlord at any time terminate this Lease or Tenant's right
to possession for an Event of Default, Landlord shall recover from Tenant, and
Tenant shall be liable and pay to Landlord, as damages a sum equal to the
following:

        (i)    the unpaid monthly rents and other charges provided in this Lease
               and which accrued prior to the date of termination;

        (ii)   an amount equal to the following:

                      (A) Until Landlord is able, through reasonable efforts, to
               relet the Premises under terms satisfactory to Landlord, in its
               sole discretion, Tenant shall pay to Landlord on or before the
               first day of each calendar month, the monthly rentals and other
               charges provided in this Lease. If and after the Premises have
               been relet by Landlord, Tenant shall pay to Landlord on the
               twentieth (20th) day of each calendar month the difference
               between the monthly rentals and other charges provided in this
               Lease for such calendar month and that actually collected by
               Landlord for such month. If it is necessary for Landlord to bring
               suit in order to collect any deficiency, Landlord shall have a
               right to allow such deficiencies to accumulate and to bring an
               action on several or all of the accrued deficiencies at one time.
               Any such suit shall not prejudice in any way the right of
               Landlord to bring a similar action for any subsequent deficiency
               or deficiencies. Any amount collected by Landlord from subsequent
               tenants for any calendar month in excess of the monthly rentals
               and other charges provided in this Lease, shall be credited to
               Tenant, first, in reduction of Tenant's liability for any
               calendar month for which the amount collected by Landlord will be
               less than the monthly rentals and other charges provided in this
               Lease and, then, against Tenant's liability for any other damages
               of Landlord hereunder, and Tenant shall have no right to any
               excess other than the above-described credits; and

                      (B) When Landlord desires, Landlord may demand a final
               settlement, in which event, Landlord shall have a right to, and
               Tenant hereby agrees to pay, the difference between (1) the total
               monthly rents and other charges provided in this Lease for the
               remainder of the Lease Term, and (2) the fair rental value of the
               Premises for such period (determined as of the time of the final
               settlement) such difference discounted to present value using the
               prime rate published in the Wall Street Journal for the region in
               which the Building is located on the date of the final
               settlement; and

        (iii)  all other damages which Landlord may demonstrate it incurred,
               including, without limitation, any and all costs of retaking the
               Premises, costs of maintaining and preserving the Premises after
               such retaking, and costs of reletting the Premises, such as costs
               to repair or restore the Premises and to pay leasing commissions.

        If Landlord elects to exercise the remedy prescribed in Section 17.2(ii)
(A) above, this election shall not prejudice Landlord's right at any time
thereafter to cancel said election in favor of the remedy prescribed in Section
17.2(ii) (B) above.

        As used in Article 17, the phrase "the monthly rentals and other charges
provided in this Lease" shall mean the monthly amount of Base Rental plus the
monthly amount of Tenant's Pro Rata Share of Excess Basic Costs. If Landlord
demands a final settlement, then Landlord shall have the right to estimate
Tenant's Pro Rata share of Excess Basic Costs for the remainder of the Lease
Term.

        Any past due monthly rents and other charges provided in this Lease
shall bear interest at the Default Interest rate, defined elsewhere in the
Lease.

        17.3 Upon the occurrence of an Event of Default, Landlord may alter all
locks and security devices at the Premises and will not be obligated to return
the key to Tenant if Landlord has elected either to terminate this Lease under
Section 17.1(a) or permanently repossess the Premises under Section 17.1(b). If
Landlord alters all locks and security devices at the Premises because of an
Event of Default without electing either to terminate this Lease or permanently
repossess the Premises, then Landlord shall return the key to Tenant only during
the regular business hours of Landlord's property manager and only in the event
Tenant has paid the rent or otherwise performed the obligations necessary to
cure the Event of Default and, further, Tenant provides reasonable assurances to
Landlord evidencing Tenant's ability to perform its remaining obligations under
this Lease. In the event Landlord alters the locks and the keys are not returned
to Tenant, then, upon the prior written request of Tenant accompanied by such
releases and waivers as Landlord may require, Landlord, at its option, may (i)
escort Tenant to the Premises to retrieve

<PAGE>   23

personal belongings and other property not subject to Landlord's lien and
security interest, or (ii) obtain from Tenant a list of such personal belongings
and personal property and advise Tenant of a time and place where such items
will be made available to Tenant. If Landlord elects the latter option, then
Tenant shall reimburse to Landlord the cost of moving and/or storing the items
prior to Landlord's making same available to Tenant.

        17.4 Should Landlord re-enter and take possession of the Premises,
Landlord may, with respect to any and all furniture, fixtures, equipment and
other personal property located on the Premises, exercise one or more of the
following rights: (i) sell the personal property pursuant to any lien retained
by Landlord; (ii) remove the personal property from the Premises (without the
necessity of obtaining a distress warrant, writ of sequestration or other legal
process) and place same in storage and, in such event, Tenant shall be liable to

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Landlord for reasonable costs incurred by Landlord in connection with such
removal and storage and shall indemnify and hold Landlord harmless from all
loss, damage, cost, expense and liability in connection with such removal and
storage; or (iii) dispose of any of the personal property. Should Landlord elect
to dispose of any of the personal property, whether or not such personal
property was first placed in storage, Landlord shall give Tenant written notice
at Tenant's last known address advising Tenant that Landlord will dispose of the
personal property unless Tenant retrieves same within Ten (10) days from the
date of the notice and pays to Landlord any reasonable costs incurred for
storage and/or removal. Landlord shall also have the right to relinquish
possession of all or any portion of such personal property to any person
claiming to be entitled to possession thereof who presents to Landlord a copy of
any instrument represented to Landlord by such person to grant such person the
right to take possession of such personal property, without the necessity on the
part of Landlord to inquire into the authenticity of the copy of the instrument
or of Tenant's or Tenant's predecessor's signature thereon and without the
necessity of Landlord's making any nature of investigation or inquiry as to the
validity of the factual or legal basis upon which such person purports to act;
and Tenant agrees to indemnify and hold Landlord harmless from all cost,
expense, loss, damage and liability incident to Landlord's relinquishment of
possession of all or any portion of such furniture, fixtures, equipment of other
personal property to the person. The rights of Landlord herein stated shall be
in addition to any and all other rights which Landlord has or may hereafter have
a law or in equity, and Tenant stipulates and agrees that the rights herein
granted Landlord are commercially reasonable. Tenant knowingly and irrevocably
waives any claims it may have against Landlord arising from Landlord's removal
and storage of Tenant's personal property in accordance with the provisions of
this paragraph.

        17.5 No re-entry or taking possession of the Premises by Landlord shall
be construed as an election on its part to terminate this Lease, unless a
written notice of such intention shall be given to Tenant. Notwithstanding any
such re-entry or taking possession of the Premises, Landlord may at any time
thereafter elect to terminate this Lease by reason of the Event of Default.
Pursuit of any of the remedies set forth in Article 17 shall not preclude
pursuit of any of the other remedies in Article 17 or any others provided in
this Lease or any other remedies provided by law or in equity. The specific
remedies to which Landlord may resort under this Lease are cumulative and are
not intended to be exclusive of any other remedies to which Landlord may be
lawfully entitled in case of a breach or threatened breach of the Lease. In
addition to any other remedies provided in the Lease, Landlord shall be entitled
to seek injunctive relief to restrain any violation or threatened violation of
the covenants, conditions or provisions of this lease or to compel specific
performance. The pursuit of any remedy provided in this Lease shall not
constitute a forfeiture or waiver of any rent due to Landlord under this Lease
or of any damages accruing to Landlord by reason of the violation of any of the
terms, provisions and covenants contained in this Lease. Landlord's acceptance
of rent following an Event of Default hereunder shall not be construed as
Landlord's waiver of such Event of Default unless such waiver is expressly
stated in writing signed by Landlord. No waiver by Landlord of any violation or
breach of the terms, provisions, and covenants of the Lease shall be deemed or
construed to constitute a waiver of any other violation or breach of any of the
terms, provisions, and covenants of the Lease. No consent by Landlord to any act
of Tenant under this Lease shall be deemed to waive or render unnecessary
consent to any subsequent or similar act. Forbearance by Landlord to enforce one
or more of the remedies herein provided upon an Event of Default shall not be
deemed or construed to constitute a waiver of any other violation or Event of
Default.

        17.6 Landlord and Tenant hereby irrevocably waive, to the extent
permitted by law, any right to trial by jury in any lawsuit, action, proceeding,
or counterclaim brought by either party hereto against the other on any matter
arising out of or connected with this Lease, the acts or omissions of Landlord
or Tenant in connection with this Lease, or Tenant's occupancy and use of the
Premises and the Building.

        17.7 Tenant shall not for any reason withhold or reduce Tenant's
required payments of rent and other charges provided in this Lease, it being
agreed that the obligations of Landlord under this Lease are independent of
Tenant's obligations except as may be otherwise expressly provided. The
immediately preceding sentence shall not be deemed to deny Tenant the pursuit of
all rights granted it under this Lease or at law; however, at the direction of
Landlord, Tenant's claims in this regard shall be litigated in proceedings
different from any litigation involving rent claims or other claims by Landlord
against Tenant (i.e., each party may proceed to a separate judgment without
consideration, counterclaim or offset as to the claims asserted by the other
party).

        17.8 In the event of any default described in subsection (d) of Section
16.1 of this Lease, any assumption and assignment must conform with the
requirements of the Bankruptcy Code which provides, in part, that the Landlord
must be provided with adequate assurance of the following: (i) that the proposed
assignee has sources to pay monthly rents and any

<PAGE>   25

other charges due under this Lease; (ii) that the financial condition and
operating performance of any proposed assignee and its guarantors, if any, shall
be similar to the financial condition and operating performance of Tenant and
its guarantors, if any, as of the date of execution of this Lease; (iii) that
any percentage rent due under this Lease will not decline substantially; (iv)
that any assumption or assignment is subject to all of the provisions of this
Lease (including, but not limited to, restrictions as to use) and will not
breach any such provision contained in any other Lease, financing agreement or
other agreement relating to the Building; and (v) that any assumption or
assignment will not disrupt any tenant mix or balance in the Building.

        (a) In order to provide Landlord with the assurance contemplated by the
Bankruptcy Code, Tenant must fulfill the following obligations, in addition to
any other reasonable obligations that Landlord may require, before any
assumption of this Lease is effective: (i) all defaults under subsection (a) of
Section 16.1 of this Lease must be cured within Twenty (20) days after the date
of assumption; (ii) all other defaults under Section 16.1 of this Lease other
than under subsection (d) of Section 16.1 must be cured within ten (10) days
after the date of assumption; (iii) all actual monetary losses incurred by
Landlord (including, but not

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<PAGE>   26

limited to, reasonable attorneys' fees) must be paid to Landlord within ten (10)
days after the date of assumption; and (iv) Landlord must receive within ten
(10) days after the date of assumption a Security Deposit in the amount of six
(6) months Base Rental (using the Base Rental in effect for the first full month
immediately following the assumption) and an advance prepayment of Base Rental
in the amount of three (3) months Base Rental (using the Base Rental in effect
for the first full month immediately following the assumption), both sums to be
held by Landlord in accordance with the other provisions of this Lease,
including, without limitation, Section 4.3, and deemed to be rent under this
Lease for the purposes of the Bankruptcy Code as amended and from time to time
in effect.

        (b) In the event this Lease is assumed in accordance with the
requirements of the Bankruptcy Code and this Lease, and is subsequently
assigned, then, in addition to any other reasonable obligations that Landlord
may require and in order to provide Landlord with the assurances contemplated by
the Bankruptcy Code, Landlord shall be provided with the following: (i) a
financial statement of the proposed assignee prepared in accordance with
generally accepted accounting principles consistently applied, though on a cash
basis, which reveals a net worth in an amount sufficient, in Landlord's
reasonable judgment, to assure the future performance by the proposed assignee
of Tenant's obligations under this Lease; or (ii) a written guaranty by one or
more guarantors with financial ability sufficient to assure the future
performance of Tenant's obligations under this lease, such guaranty to be in
form and content satisfactory to Landlord and to cover the performance of all of
Tenant's obligations under this Lease.

                                   ARTICLE 18

                               LANDLORD'S DEFAULT

        18.1 Landlord shall be in default under the Lease if Landlord has not
begun and pursued with reasonable diligence the cure of any failure of Landlord
to meet its obligations under the Lease within thirty (30) days of the receipt
by Landlord of written notice from Tenant of the alleged failure to perform.
Tenant hereby waives any right to terminate or rescind this Lease as a result of
Landlord's default as to any covenant or agreement contained in this Lease or as
a result of the breach of any promise or inducement hereof, whether in this
Lease or elsewhere and Tenant hereby agrees that Tenant's sole remedies for
default hereunder and for breach of any promise or inducement shall be limited
to a suit for damages and/or injunctive relief. In addition, Tenant hereby
covenants that, prior to the exercise of any such remedies, it will give the
mortgagees holding mortgages on the project notice and a reasonable time to cure
any default by Landlord.

        18.2 The liability of Landlord to Tenant and Tenant to Landlord for any
default by Landlord under the terms of this Lease shall be limited to Tenant's
or Landlord's actual direct, but not consequential, damages therefor. Tenant
agrees to look solely to the estate and interest of Landlord in the Building for
the collection of any judgment or other judicial process requiring the payment
of money by Landlord in the event of a default or breach by Landlord with
respect to this Lease, and no other assets of Landlord shall be subject to levy
of execution or other procedures for the satisfaction of Tenant's rights.. This
section shall not be deemed to limit or deny any remedies which Tenant may have
in the event of default by Landlord hereunder which do not involve the personal
liability of Landlord.

                                   ARTICLE 19

                           LANDLORD'S CONTRACTUAL LIEN

        19.1 Landlord shall have, at all times, a valid security interest in and
upon the present and future receivables of Tenant and all goods, wares,
equipment, fixtures, furniture, improvements and other personal property of
Tenant presently or which may hereafter be situated on the Premises, and all
proceeds therefrom, and such property shall not be removed therefrom without the
consent of Landlord until all arrearage in rent as well as any and all other
sums of money then due to Landlord hereunder shall first have been paid and
discharged and all the covenants, agreements and conditions hereof have been
fully complied with and performed by Tenant. This contractual lien is in
addition to any and all liens in favor of Landlord and arising under law or
otherwise and is given to secure payment of all rent and other sums of money
becoming due under the Lease from Tenant and to secure payment of any damages or
loss which Landlord may suffer by reason of the breach by Tenant of any
covenant, agreement or condition contained herein and shall survive any
termination of this Lease by reason of a default by Tenant. Upon the occurrence
of any Event of Default by Tenant, Landlord may, in addition to any other
remedies provided herein, enter upon the Premises and take possession of any and
all goods, wares, equipment, fixtures, furniture, improvements and other
personal property of Tenant situated on the Premises, without liability for
trespass or conversion, store same (on or off the Premises or Project) and sell
the same at public or private sale, with or without having such property at the
sale, after giving Tenant reasonable notice of the time and place of any

<PAGE>   27

public sale or of the time after which any private sale is to be made, at which
sale the Landlord or its assigns may purchase unless otherwise prohibited by
law. Without intending to exclude any other manner of giving Tenant reasonable
notice, the requirement of reasonable notice shall be met if such notice is
given in the manner prescribed in this Lease at least five (5) days before the
time of sale unless otherwise required by law. The proceeds from any such
disposition, less any and all expenses connected with the taking of possession,
holding and selling of the property (including reasonable attorneys' fees and
other expenses), shall be applied as a credit against the indebtedness secured
by the security interest granted in this section. Any surplus shall be paid to
Tenant or as otherwise required by law; and the Tenant shall pay any
deficiencies forthwith. Upon request by Landlord, Tenant agrees to execute and
deliver to Landlord within ten (10) days of such request a financing statement
in form sufficient to perfect the security interest of Landlord in the
aforementioned property and proceeds thereof under the provisions of the Uniform
Commercial Code in force in the State of Texas. Landlord may also file a copy of
this Lease to perfect its interest in the personal property of Tenant described
above. Notwithstanding

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the foregoing, Lessor hereby agrees to subordinate it's contractual and
statutory lein to the lein of any party providing financing to, or who leases to
lessee, any equipment or personal property within the premises (and agrees to
execute a written subordination of same in form reasonably acceptable to
Lessor).

                                   ARTICLE 20

                       SURRENDER OF PREMISES; HOLDING OVER

        20.1 No act by Landlord shall be deemed an acceptance of a surrender of
the Premises, and no agreement to accept a surrender of the Premises shall be
valid unless the same is made in writing and signed by Landlord. At the
expiration or termination of this Lease, Tenant shall deliver to Landlord the
Premises "broom-clean" and with all improvements located thereon in good repair
and condition, reasonable wear and tear and condemnation and fire or other
casualty damage not caused by Tenant excepted, and shall deliver to Landlord all
keys to the Premises. Provided that Tenant has performed all of its obligations
hereunder, Tenant may remove all unattached trade fixtures, furniture, and
personal property placed in the Premises by Tenant (but Tenant shall not remove
any such item which was paid for, in whole or in part, by Landlord).
Additionally, Tenant shall remove such alterations, additions, improvements,
trade fixtures, equipment, wiring, and furniture as Landlord may request. Tenant
shall repair all damage caused by such removal. All items not so removed within
five (5) days of the expiration or termination of the lease shall be deemed to
have been abandoned by Tenant and may be appropriated, sold, stored, destroyed,
or otherwise disposed of by Landlord at any time, thereafter, without notice to
Tenant and without any obligation to account for such items. If Landlord incurs
any cost in the storage or removal of any such items, Tenant shall pay to
Landlord on demand any and all such charges. The provisions of this paragraph
shall survive the expiration or termination of the Lease.

        20.2 If Tenant, or any party under Tenant claiming rights to the Lease,
fails to vacate the Premises at the end of the Lease Term, then such possession
shall be an unlawful detainer (Landlord reserving the right to seek an eviction
or removal), no tenancy shall be created, and Tenant shall pay each day during
any holdover period a daily Base Rental equal to the greater of (a) one
thirtieth (1/30th) of one hundred fifty percent (150%) of the monthly Base
Rental payable during the last month of the Lease Term, or (b) the prevailing
rental rate for similar space in the Building, plus, Tenant shall pay any
additional rental due under the other provisions of this Lease during any such
holdover period. In addition to payment of rent, Tenant shall pay to Landlord
all other damages to which Landlord may be entitled as a result of Tenant's
holding over.

                                   ARTICLE 21

                                 RIGHT OF ACCESS

        21.1 Upon reasonable prior notice to tenant, Landlord or Landlord's
representatives shall have the right to enter into and upon the Premises at any
and all reasonable times (i) to inspect, clean or make repairs or alterations or
additions to the Premises as Landlord may deem necessary (but without any
obligation to do so, except as expressly provided elsewhere in the Lease), or
(ii) to show the Premises to prospective tenants, purchasers or lenders; and
Tenant shall not be entitled to any abatement or reduction of rent by reason
thereof, nor shall any such entry be deemed to be an actual or constructive
eviction, unless such entry unreasonably interferes with tenant's use.

                                   ARTICLE 22

                               SUBSTITUTION SPACE

        22.1 From time to time during the Term, Landlord may substitute for the
Premises other space that has an area at least equal to that of the Premises and
is located in the Building or in any other comparable building managed by
Landlord or an affiliate of Landlord (the "Substitution Space").

        22.2 If Landlord exercises such right by giving Tenant notice thereof
("Substitution Notice") at least sixty (60) days before the effective date of
such substitution, then (i) the description of the Premises shall be replaced by
the description of the Substitution Space; and (ii) all of the terms and
conditions of this Lease shall apply to the Substitution Space except that (A)
if the then unexpired balance of the Lease Term shall be less than one (1) year,
then the Lease Term shall be extended so that it shall be one (1) year from the
Substitution Commencement Date (defined below), and (B) if the Substitution
Space contains more square footage than the Premises, then the Base Rental then
in effect shall be increased proportionately (provided that such increase shall
not exceed 105% of the Base Rental due for the Premises) and shall be subject to
adjustment as herein provided. The effective date of such substitution (the
"Substitution Commencement Date") shall be the date specified in the
Substitution Notice or, if Landlord is required to

<PAGE>   29

perform tenant finish work to the Substitution Space under this Article, then
the date on which Landlord substantially completes such tenant finish work. If
Landlord is delayed in performing the tenant finish work by Tenant's actions
(either by Tenant's change in the plans and specifications for such work or
otherwise), then the Substitution Commencement Date shall not be extended and
Tenant shall pay rent for the Substitution Space beginning on the date specified
in the Substitution Notice.

        22.3 Tenant may either accept possession of the Substitution Space in
its "as is" condition as of the Substitution Commencement Date or require
Landlord to alter the Substitution Space in the same manner as the Premises were
altered or were to be altered. Tenant shall deliver to Landlord written notice
of its election within ten (10) days after the Substitution Notice has been
delivered to Tenant. If Tenant fails to timely deliver notice of its election or
if an Event of Default then exists, then Tenant shall be deemed to have elected
to accept possession of the Substitution Space in its "as is" condition. If
Tenant timely elects to require Landlord to alter the Substitution Space, then
(i) notwithstanding Section 22.2, if the then unexpired balance of the Term is
less

Stanford Microdevices, Inc
Office Lease 15
Version 97.1 (TX)

<PAGE>   30

than three (3) years, then the Term shall be extended so that it continues for
three (3) years from the Substitution Commencement Date, and (ii) Tenant shall
continue to occupy the Premises (upon all of the terms of this Lease) until the
Substitution Commencement Date.

        22.4 Tenant shall move from the Premises into the Substitution' Space
and shall surrender possession of the Premises as provided in Section 20.1 by
the Substitution Commencement Date. If Tenant occupies the Premises after the
Substitution Commencement Date, then Tenant's occupancy of the Premises shall be
a tenancy-at-will (and, without limiting all other rights and remedies available
to Landlord, including instituting a forcible detainer suit), Tenant shall pay
Base Rental for the Premises as provided in Section 20.2 and all other rent due
therefor until such occupancy ends; such amounts shall be in addition to the
rent due for the Substitution Space.

        22.5 If Landlord exercises its substitution right, then Landlord shall
reimburse Tenant for Tenant's reasonable out-of-pocket expenses for moving
Tenant's furniture, equipment, supplies and telephone equipment from the
Premises to the Substitution Space and for reprinting Tenant's stationery of the
same quality and quantity of Tenant's stationery supply on hand immediately
prior to Landlord's notice to Tenant of the exercise of this relocation right.
If the Substitution Space contains more square footage than the Premises, and if
the Premises were carpeted, Landlord shall supply and install and equal amount
of carpeting of the same or equivalent quality and color.

                                   ARTICLE 23

                                  MISCELLANEOUS

        23.1 ATTORNEYS' FEES. In case it should be necessary or proper for one
party to bring an action under this Lease against the other, then the party
which does not prevail agrees in each and any such case to pay to the party
which prevails its reasonable attorneys' fees. Furthermore, should it be
necessary for one party to consult an attorney for the enforcement of any of
such party's rights hereunder (including seeking payment of any amounts due
under the Lease) without the necessity of bringing an action, then the other
party, nonetheless, agrees in such event to pay to such party its reasonable
attorneys' fees.

        23.2 TAXES. Tenant shall be liable for all taxes levied or assessed
against personal property, furniture, or fixtures placed by Tenant in the
Premises. If any taxes for which Tenant is liable are levied or assessed against
Landlord or Landlord's property and Landlord elects to pay the same, or if the
assessed value of Landlord's property is increased by inclusion of such personal
property, furniture or fixtures and Landlord elects to pay the taxes based on
such increase, then Tenant shall pay to Landlord, upon demand, that part of such
taxes for which Tenant is primarily liable hereunder.

        23.3 NAME. Tenant shall not, without the written consent of Landlord,
use the name of the Building for any purpose other than as the address of the
business to be conducted by Tenant in the Premises. In no event shall Tenant
acquire any rights in or to such name and Landlord reserves the right from time
to time and at any time to change the name of the Building.

        23.4 FINANCIAL STATEMENTS. Prior to the execution of this Lease, Tenant
has delivered financial statements to Landlord, prepared by a certified public
accountant and certified to be true and correct in all material aspects. Tenant
further agrees to deliver to Landlord updated financial statements from time to
time within ten (10) days of Landlord's written request, each financial
statement certified to be true and correct in all material aspects by an
authorized person on behalf of Tenant.

        23.5 BROKERAGE. Landlord and Tenant each warrant to the other that it
has not dealt with any broker or agent in connection with the negotiation or
execution of this Lease, other than the person(s) listed in the Basic
Definitions and Lease Provisions of this Lease (the "Broker(s)"). Except for any
Broker(s) who shall be compensated in accordance with the provisions of a
separate agreement, Landlord and Tenant each agree to indemnify the other
against all costs, expenses, attorneys' fees, and other liability for
commissions or other compensation claimed by any other broker or agent claiming
the same by, through, or under the indemnifying party.

        23.6 QUIET ENJOYMENT. Provided Tenant has performed all of the terms and
conditions of this Lease to be performed by Tenant, Tenant shall peaceably and
quietly hold and enjoy the Premises for the Term, without hindrance from
Landlord or any party claiming by, through, or under Landlord, subject to the
terms and conditions of this Lease.

        23.7 FORCE MAJEURE. Whenever a period of time is herein prescribed for
action to be taken by either party hereto, such party shall not be liable or
responsible for, and there

<PAGE>   31

shall be excluded from the computation for any such period of time, delays due
to strikes, riots, acts of God, shortages of labor or materials, war,
governmental laws, regulations, or restrictions, or any other causes of any kind
whatsoever which are beyond the control of such party. The foregoing shall not
excuse, however, the timely payment of rent by Tenant under the provisions of
this Lease.

        23.8 NOTICES. All notices and other communications given by one party to
the other under the provisions of this Lease shall be in writing, addressed to
the party at the address provided in the Basic Definitions and Lease Provisions,
and shall be by one of the following: (i) mailed by first class, United States
Mail, postage prepaid, certified, with return receipt requested, (ii) hand
delivered by courier to the intended address, or (iii) sent by prepaid telegram,
cable, facsimile transmission, or telex followed by a confirmatory

Stanford Microdevices, Inc
Office Lease 16
Version 97.1 (TX)

<PAGE>   32

letter or (iv) reputable overnight courier services. Notice sent by certified
mail shall be effective three (3) days after being deposited in the United
States Mail; all other notices shall be effective upon delivery to the address
of the addressee. The parties hereto may change their addresses by giving notice
thereof to the other in conformity with this provision.

        23.9 JOINT AND SEVERAL LIABILITY. If there is more than one Tenant, then
the obligations hereunder imposed upon Tenant shall be joint and several. If
there is a guarantor of Tenant's obligations hereunder, then the obligations
hereunder imposed upon Tenant shall be the joint and several obligations of
Tenant and such guarantor, and Landlord need not first proceed against Tenant
before proceeding against such guarantor nor shall any such guarantor be
released from its guaranty for any reason whatsoever.

        23.10 SEVERABILITY. If any clause or provision of this Lease is illegal,
invalid, or unenforceable under present or future laws, then the remainder of
this Lease shall not be affected thereby and in lieu of such clause or
provision, there shall be added as a part of this Lease a clause of provision as
similar in terms to such illegal, invalid, or unenforceable clause or provision
as may be possible and be legal, valid, and enforceable.

        23.11 AMENDMENTS; CONSTRUCTION AND BINDING EFFECT. This Lease may not be
amended except by instrument in writing signed by Landlord and Tenant. No
provision of this Lease shall be deemed to have been waived by Landlord unless
such waiver is in writing signed by Landlord, and no custom or practice which
may evolve between the parties in the administration of the terms thereof shall
waive or diminish the right of Landlord to insist upon the performance by Tenant
in strict accordance with the terms hereof. The terms and conditions contained
in this Lease shall inure to the benefit of and be binding upon the parties
hereto, and upon their respective successors in interest and legal
representatives, except as otherwise herein expressly provided. This Lease is
for the sole benefit of Landlord and Tenant, and, other than Landlord's
Mortgagee or a successor thereto, no third party shall be deemed a beneficiary
hereof.

        23.12 CAPTIONS. The captions contained in this Lease are for convenience
of reference only, and do not limit or enlarge the terms and conditions of this
Lease.

        23.13 RECORDING. Tenant shall not record or permit to be recorded in the
official records of the county where the Premises are located the Lease or any
memorandum of lease or other document giving notice of the existence of the
Lease.

        23.14 TIME OF ESSENCE. Except as otherwise expressly provided in this
Lease, time is of the essence.

        23.15 GOVERNING LAW; VENUE. The laws of the state in which the Building
is located shall govern the interpretation, validity, performance and
enforcement of this Lease. Venue for any action under this Lease shall be the
county in which rentals are due the building is located.

        23.16 AUTHORITY. If Tenant either party is a corporation or partnership,
the person executing the Lease on behalf of Tenant such party hereby represents
and warrants that (i) he is duly authorized and empowered to execute the Lease
on behalf of Tenant such party, (ii) Tenant has full right and authority to
enter into this Lease, and (iii) upon full execution, this Lease constitutes a
valid and binding obligation of Tenant such party.

        23.17 APPROVAL. Any approval of Landlord required under the provisions
of this Lease must be in writing or it shall not be deemed to be effective and,
if not in writing, then in the making of proof thereof, Landlord shall be
presumed not to have given its approval.

        23.18 NO MERGER. There shall be no merger of the leasehold estate hereby
created with the fee estate in the Premises or any part thereof if the same
person acquires or holds, directly or indirectly, this Lease or any interest in
this Lease and the fee estate in the Premises or any interest in such fee
estate.

        23.19 NO PARTNERSHIP. Nothing in this Lease shall be deemed or construed
by the parties hereto, nor by any third party, as creating the relationship of
principal and agent or of partnership or of joint venture between the parties
hereto, it being understood and agreed that neither the method of computation of
rent, nor any other provision contained herein, nor any acts of the parties
hereto, shall be deemed to create any relationship between the parties hereto
other than the relationship of landlord and tenant.

        23.20 NO OFFER. The submission of this Lease by Landlord to Tenant for
examination shall not be construed as an offer to lease or a reservation of an
option to lease. Further, it is the intention of the parties that Landlord shall
not be bound and Tenant

<PAGE>   33

shall not have any rights under this Lease unless and until Landlord executes a
copy of this Lease and delivers it to Tenant.

        23.21 EXHIBITS. All exhibits and attachments attached hereto are
incorporated herein by this reference. [Check all boxes which apply. Boxes not
checked are of exhibits that do not apply.]

<TABLE>
<S>                                                             <C>
        Exhibit A -  Legal Description                          [/]
        Exhibit B -  Outline of Premises                        [/]
        Exhibit C -  Operating Expense Reimbursement            [/]
        Exhibit D -  Building Rules and Regulations             [/]
        Exhibit E -  Work Letter                                [/]
</TABLE>

Stanford Microdevices, Inc
Office Lease 17
Version 97.1 (TX)

<PAGE>   34

<TABLE>
<S>                                                             <C>
        Exhibit F -  Commencement Date Letter                   [/]
        Exhibit G -  Financing Statement                        [ ]
        Exhibit H -  Parking                                    [/]
        Exhibit I -  Signage                                    [/]
        Exhibit J -  Renewal Option                             [ ]
        Exhibit K -  Right of First Refusal                     [ ]
        Exhibit L -  Guaranty of Lease                          [ ]
</TABLE>

        23.22 ENTIRE AGREEMENT. This Lease, including all exhibits attached
hereto, constitutes the entire agreement between Landlord and Tenant regarding
the subject matter hereof and supersedes all oral statements and prior writings
relating thereto. Except for those set forth in this Lease, no representations,
warranties, or agreements have been made by Landlord, Landlord's agent or
Tenant, anyone of the foregoing to the other with respect to this Lease or the
obligations to Landlord or Tenant in connection therewith.

EXECUTED to be effective on the day and date first written above.

                                     LANDLORD: Aetna Life Insurance Company
                                               by Allegis Reality Investors, LLC
                                               it's Investment Advisor and Agent

                                     By: /s/ Signature Illegible
                                        ----------------------------------------

                                     Printed Name: Joseph R. Gaukler
                                                   -----------------------------

                                     Title: Sr. VP
                                            ------------------------------------

ATTEST:                              TENANT: STANFORD MICRODEVICES, INC.

----------------------------         By: /s/ Signature Illegible
          (Title)                       ----------------------------------------

                                     Printed Name: S.M. ??
                                                   -----------------------------
                                     Title: ??

Stanford Microdevices, Inc
Office Lease 18
Version 97.1 (TX)

<PAGE>   35

                                  EXHIBITS "A"

                                LEGAL DESCRIPTION

Arapaho Business Park X
-----------------------

BEING a tract of land situated and the J. C. Skiles Survey, Abstract No. 1371
and the Baurch Cantrell Survey, Abstract No. 265, City of Richardson, Dallas
County, Texas, and also being all of Lot 4, Block 2 of the replat of Block 2 of
Arapaho Business Park, an additional to the City of Richardson as recorded in
Volume 8'0011, Page 2276, Deed Records, Dallas County, Texas and being more
particularly described as follows:

BEGINNING at the point of intersection of the West R.O.W. line of Presidential
Drive (a 60' R.O.W.) with the South R.O.W. line of Arapaho Road (a 100' R.O.W.);

THENCE, South along the said West R.O.W. line of Presidential Drive a distance
of 411.49 feet to a point for corner;

THENCE S 89 44' 50" W, a distance of 587.85 feet to a point for corner located
on the East R.O.W. line of Glenville Drive (a 80' R.O.W.);

THENCE N 0 15' 10" W, along the said East R.O.W. line of Glenville Drive a
distance of 394.07 feet to an angle point;

THENCE North a distance of 20.0 feet to a point for corner;

THENCE East along the said South R.O.W. line of Arapaho Road a distance of
589.59 feet to the POINT OF BEGINNING and containing 243,026 square feet or 5.58
acres of land, more or less.

Stanford Microdevices, Inc.
Office - Exhibit A
Version 97.1 (TX)

<PAGE>   36

                                [EXHIBIT OMITTED]

Stanford Microdevices, Inc.
Office - Exhibit B
Version 97.1 (TX)

<PAGE>   37

                                   EXHIBIT "C"

                         OPERATING EXPENSE REIMBURSEMENT

        This Exhibit is attached to and made a part of the Lease by and between
AETNA LIFE INSURANCE COMPANY ("Landlord") and STANFORD MICRODEVICES, INC.
("Tenant").

        A.     Tenant shall pay Tenant's Pro-Rata Share of the excess ("Excess")
of actual Basic Costs for a calendar year over (whichever one of the following
is completed shall be applicable):

               (i)    the actual Basic Costs for the calendar year of 1998, or

               (ii)   the sum of $_____ per square foot of rentable area

(the "Expense Stop"). Landlord may make a good faith estimate of the Excess for
any calendar year or part thereof during the Lease Term, and, Tenant shall pay
to Landlord as additional rent along with each monthly payment of Base Rental an
amount equal to the estimated Excess for such calendar year or part thereof
divided by the number of months in such calendar year during the Lease Term.
From time to time during any calendar year, Landlord may revise its estimate of
the Excess and deliver a copy of the revised estimate to Tenant. Thereafter, the
monthly installments of Excess payable by Tenant shall be appropriately
adjusted. In no event will the provisions of Exhibit "C" serve to reduce the
monthly Base Rental.

        B.     Landlord will maintain books and records of all Basic Costs in
accordance with generally accepted accounting for similar types of properties,
applied on a consistent basis. After the end of every calendar year Landlord
will deliver to Tenant a statement ("Annual Cost Statement") setting forth the
actual Basic Costs for the prior calendar year, the actual amount of any Excess
for the prior calendar year, and Tenant's Pro Rata Share. If Tenant owes an
additional amount of Excess over the estimated payments made during the prior
calendar year, this will also be noted in the Annual Cost Statement and Tenant
will pay such amount, as additional rent, with the next due installment of Base
Rental. If the Annual Statement reflects an overpayment, then Landlord will
credit the amount of the overpayment against the next due installments of
additional rent payable under the provisions of this Exhibit "C", or if the
Lease Term has expired, Landlord will refund the difference to Tenant.

        Notwithstanding any expiration or earlier termination of this Lease,
Tenant's obligation to pay Tenant's Pro Rata Share of any Excess shall survive
any expiration or termination of this Lease.

        C.     The term "Basic Costs" shall mean all expenses and disbursements
of every kind (subject to the limitations set forth below) which Landlord
incurs, pays or becomes obligated to pay in connection with the ownership,
operation, management, repair and maintenance (including replacement thereof) of
the Project, including, but not limited to, the following:

               (a)    Wages and salaries of all employees engaged solely in the
        operation, repair, replacement, and maintenance of the Project,
        including taxes, insurance and benefits relating thereto;

               (b)    All supplies and materials used solely in the operation,
        maintenance, repair, replacement, and security of the Project;

               (c)    Annual cost of all capital improvements made to the
        Project which although capital in nature can reasonably be expected to
        reduce the normal operating costs of the Project, as well as all capital
        improvements made to comply with any legal requirements, insurance
        requirements or environmental laws which become effective after the date
        of this Lease, or to benefit or increase the safety and security of the
        Project, as amortized over the useful economic life of such improvements
        as determined by Landlord in its reasonable discretion (without regard
        to the period over which such improvements may be depreciated or
        amortized for federal income tax purposes), and the amortized portion,
        together with interest on the unamortized portion of such improvements
        or expenditures at an interest rate equal to two percent (2%) over the
        interest rate payable on United States Treasury securities having a
        maturity comparable to the period of the amortization at the time

<PAGE>   38

        Landlord incurred the cost, shall be included in operating expenses in
        the year in which the costs are incurred and in any subsequent years,
        during the term of the lease;

               (d)    Cost of all utilities, other than the cost of utilities
        actually reimbursed to Landlord by individual tenants;

               (e)    Cost of any insurance or insurance related expense
        applicable to the Project and Landlord's personal property used in
        connection therewith, including without limitation, the premiums for
        public liability coverage, fire and extended coverage, and rental loss
        coverage;

               (f)    All taxes and assessments and governmental charges whether
        federal, state, county or municipal, and whether they be by taxing
        districts or authorities presently taxing or by others, subsequently
        created or otherwise, and any other taxes and assessments attributable
        to the Project (or its operation), and the grounds, parking areas,
        driveways, and alleys around the Project, excluding, however, federal
        and state taxes on income (collectively, "Taxes"); if the present method
        of taxation changes so that in lieu of the whole or any part of any
        Taxes levied on the Landlord or Project, there is

Stanford Microdevices, Inc.
Office - Exhibit C
Version 97.1 (TX)

<PAGE>   39

        levied on Landlord a capital tax directly on the rents received
        therefrom or a franchise tax, assessment, or charge based, in whole or
        in part, upon such rents for the Project and in lieu of the present
        method of taxation, then all such taxes, assessments, or charges, or the
        part thereof so based, shall be deemed to be included within the term
        "Taxes" for the purposes hereof;

               (g)    Cost of repairs, replacements, and general maintenance of
        the Project; and

               (h)    Cost of service or maintenance contracts with independent
        contractors for the operation, maintenance, repair, replacement, or
        security of the Project (including, without limitation, alarm service,
        window cleaning, and elevator maintenance) (Nothing herein is intended
        to obligate Landlord to provide any security for the Project.).

There are specifically excluded from the definition of the term "Basic Cost"
costs for the following:

               (1)    Capital improvements made to the Project, other than
        capital improvements described above in this Exhibit "C" and except for
        items which, though capital for accounting purposes, are properly
        considered maintenance and repair items, such as painting of common
        areas, replacement of carpet in elevator lobbies, and the like;

               (2)    Repair, replacements and general maintenance paid by
        proceeds of insurance or by Tenant or other third parties, and
        alterations attributable solely to tenants of the Project other than
        Tenant;

               (3)    Debt service on loans to Landlord;

               (4)    Depreciation of the Project;

               (5)    Leasing commissions;

               (6)    Legal expenses, other than those incurred for the general
        benefit of the Building's tenants (e.g., tax disputes);

               (7)    Wages and salaries and benefits of employees above the
        level of Project manager;

               (8)    renovating or otherwise installing tenant improvements for
        occupants of the Project; and

               (9)    correcting defects in the construction of the Project.

        D.     With respect to any calendar year or partial calendar year in
which the Project is not occupied to the extent of 95% of the rentable area
thereof, the Basic Costs for such period shall, for the purposes hereof, be
increased to the amount which would have been incurred had the Project been
occupied to the extent of 95% of the rentable area.

Stanford Microdevices, Inc.
Office - Exhibit C
Version 97.1 (TX)

<PAGE>   40

                                   EXHIBIT "D"

                              RULES AND REGULATIONS

        This Exhibit is attached to and made a part of the Lease by and between
AETNA LIFE INSURANCE COMPANY ("Landlord") and STANFORD MICRODEVICES, INC.
("Tenant").

        A.     The following rules and regulations shall apply to the Building,
including, without limitation the Premises:

        1.     Sidewalks, doorways, vestibules, halls, stairways, and other
similar areas shall not be obstructed by Tenant or used by any Tenant for
purposes other than ingress and egress to and from its Premises. No rubbish,
litter, trash, or material of any nature shall be placed, emptied, or thrown in
those areas. At no time shall Tenant permit Tenant's employees to loiter in
common areas or elsewhere in or about the Building.

        2.     Plumbing, fixtures and appliances shall be used only for the
purposes for which designed, and no sweepings, rubbish, rags or other unsuitable
material shall be thrown or deposited therein. Damage resulting to any such
fixtures or appliances from misuse by Tenant or its agents, employees or
invitees, shall be paid by such Tenant.

        3.     No signs, advertisements or notices shall be painted or affixed
on or to any windows or doors or other part of the Building without the prior
written consent of Landlord, which consent shall not be unreasonably withheld.
No nails, hooks or screws shall be driven or interested in any part of the
Building except by personnel of Landlord or retained by Landlord. No curtains or
other window treatments shall be placed on the glass, without Landlord's prior
approval. No lighting which may be visible from the exterior of the Premises may
be utilized without Landlord's prior approval.

        4.     Landlord may provide and maintain an alphabetical directory for
all tenants in the main lobby of the Building.

        5.     Landlord shall provide all door locks in Tenant's Premises, at
the cost of Tenant, and Tenant shall not place any additional door locks in its
Premises without Landlord's prior written consent, which consent shall not be
unreasonably withheld. Landlord shall furnish to Tenant a reasonable number of
keys to the door lock's in Tenant's Premises free of cost and additional keys,
at Tenant's cost. Tenant shall not make a duplicate of any key. All keys are to
be returned to Landlord at the expiration or earlier termination of this Lease.

        6.     Movement in or out of the Building of furniture or office
equipment, or dispatch or receipt by Tenant of any merchandise or materials
which require use of elevators or stairways, common area loading docks or
movement through the Building entrances or lobby shall be conducted under
Landlord's supervision at such times and in such a manner as Landlord may
reasonably require. At the time of seeking Landlord's approval, Tenant shall
provide to Landlord, in writing, a detailed listing of the activity. Tenant
assumes all risks of and shall be liable for all damage to articles moved and
injury to persons resulting from such activity. If any equipment, property and
personnel of Landlord are damaged or injured as a result of acts in connection
with this activity, then Tenant shall be solely liable for any and all damage or
loss resulting therefrom.

        7.     Landlord may prescribe weight limitations and determine the
locations for safes and other heavy equipment or items, which shall in all cases
be placed in the Building so as to distribute weight in a manner which will
avoid damage to the Building, which may include the use of such supporting
devices as Landlord may require, and which may not in any case exceed the
acceptable floor loading and weight distribution for the Building. All damages
to the Building caused by the installation or removal of any property of a
tenant, or done by a tenant's property while in the Building, shall be repaired
at the expense of such tenant.

        8.     Corridor doors, when not in use, shall be kept closed.

        9.     No birds or animals (except seeing eye dogs) shall be brought
into or kept in, on or about the Premises. No portion of the Premises shall at
any time be used or occupied as sleeping or lodging quarters or for any immoral
or illegal purposes or for any purpose which would tend to injure the reputation
of the Building or impair the value of the Building.

        10.    Tenant shall not commit waste and shall keep its Premises neat
and clean. All trash and debris must be placed in receptacles provided therefor.

<PAGE>   41

        11.    Tenant shall not make or permit any improper, objectionable or
unpleasant noises or odors to emanate from the Premises to other parts of the
Building or otherwise interfere in any way with other tenants or persons having
business with them, shall not solicit business or distribute, or cause to be
distributed, in any portion of the Building any handbills, promotional materials
or other advertising, and shall not conduct or permit any other activities in
the Building that might constitute a nuisance. Tenant shall not do any cooking
or operate a restaurant or food service business from the Premises (other than a
microwave oven for use by its employees or a beverage and/or snack service that
is free or of nominal charge for use by employees and invitees).

Stanford Microdevices, Inc.
Office - Exhibit D
Version 97.1 (TX)

<PAGE>   42

        12.    No machinery of any kind (other than normal office equipment)
shall be operated by Tenant on its Premises without Landlord's prior written
reasonable consent.

        13.    No flammable, explosive or dangerous fluid or substance shall be
used or kept by Tenant in the Premises, except normal amounts used for cleaning.

        14.    Landlord will not be responsible for lost or stolen personal
property, money or jewelry from the Premises or public or common areas
regardless of whether such loss occurs when the area is locked against entry or
not.

        15.    No coin, vending or dispensing machines of any kind may be
maintained in any Premises, except that Tenant may from time to time maintain
soft drink and or snack machines for use by its employees and invitees on a
no-charge or nominal charge basis.

        16.    All mail chutes located in the Building shall be available for
use by Landlord and all tenants of the Building according to the rules of the
United States Postal Service.

        17.    Neither Tenant nor any agent, contractor or employee of Tenant
shall have any right of access to the roof of the Premises or the Building and
neither shall install, repair, place or replace any aerial, fan, air conditioner
or other device on the roof of the Premises or the Building without the prior
written consent of Landlord. Such consent may be expressly conditioned upon
Landlord's supervision of access to the roof and upon such other reasonable
restrictions as Landlord may advise Tenant. Any aerial, fan, air conditioner or
device installed without such written consent shall be subject to removal, at
Tenant's expense, without notice, at any time. Tenant shall be liable for all
damages resulting from the installation or removal of any aerial, fan, air
conditioner or other device.

        18.    Tenant will refer to Landlord for Landlord's reasonable
supervision, approval and control all contractors, contractor representatives,
and installation technicians rendering any service to Tenant, before performance
of any contractual service. Such supervisory action by Landlord shall not render
Landlord responsible for any work performed for Tenant. This provision shall
apply to all work performed in the Building, including, without limitation, the
installation of telephones, computer wiring, cabling, electrical devices,
attachments and installations of any nature. Tenant shall be solely responsible
for complying with all applicable laws, codes and ordinances pursuant to which
such work shall be performed.

        19.    Landlord may from time to time (without any obligation to do so
or liability for not doing so) adopt appropriate and lawful systems and
procedures for the security or safety of the Building, its occupants, entry and
use, or its contents and Tenant, its employees, contractors, agents and invitees
shall comply therewith.

        20.    Canvassing, soliciting, and peddling in or about the Building is
prohibited and Tenant shall cooperate and use reasonable efforts to prevent
same.

        21.    At no time shall Tenant permit or shall Tenant's agents,
employees, contractors, quests, or invitees smoke in any common area of the
Building, unless such common area has been declared a designated smoking area by
Landlord.

        22.    Tenant accepts any and all liability for damages and injuries to
persons and property resulting from the serving and sales of alcoholic beverages
from the Premises. Nothing contained herein shall be construed as the consent of
Landlord to permit the serving or sale of alcoholic beverages on the Premises.

        B.     The Landlord reserves the right to rescind any of these rules and
make such other and further rules and regulations as in the judgment of Landlord
shall from time to time be needed for the safety, protection, care and
cleanliness of the Building, the operation thereof, the preservation of good
order therein, and the protection and comfort of its tenants, their agents,
employees and invitees, which rules when made and notice thereof given to Tenant
shall be binding upon him in like manner as if originally herein prescribed;
provided such rules are reasonable, non-descriminatory and are not in conflict
with the provisions of tenant's lease.

Stanford Microdevices, Inc.
Office Exhibit D
Version 97.1 (TX)

<PAGE>   43

                                   EXHIBIT "E"

                                   WORK LETTER

        This Exhibit is attached to and made a part of the Lease by and between
AETNA LIFE INSURANCE COMPANY ("Landlord") and STANFORD MICRODEVICES, INC.
("Tenant").

The Landlord agrees to provide Tenant with an improvement allowance not to
exceed $15,300.00 or $5.30 per rentable square foot. This allowance is to be
used for specific improvements done to the demised premises only and shall
remain a part of the demised premises upon the expiration of this Lease. Any
residual amount not used shall be returned to the Landlord.

A.      Delivery of the Premises. Subject to unavoidable delays, the Work is
estimated to be substantially completed for delivery of the Premises to Tenant
by the Commencement Date. If an unavoidable delay will prevent the substantial
completion of the Work prior to the scheduled Commencement Date, then Landlord
will notify Tenant in writing. Upon substantial completion of the Work, Landlord
will notify Tenant in writing and afford Tenant an opportunity to inspect the
Premises prior to delivery. At the inspection, Landlord and Tenant will prepare
and agree upon a punchlist of any items that remain to be completed.

        If the Work is substantially completed to permit delivery of the
Premises prior to the Commencement Date, Landlord shall notify Tenant in writing
and, should Tenant elects to take occupancy early, then Tenant may inspect the
Premises and prepare, with Landlord, a punchlist prior to delivery.

Stanford Microdevices, Inc.
Office - Exhibit E
Version 97.1 (TX)

<PAGE>   44

                                   EXHIBIT "F"

                            COMMENCEMENT DATE LETTER

        This Exhibit is attached to and made a part of the Lease by and between
AETNA LIFE INSURANCE COMPANY ("Landlord") and STANFORD MICRODEVICES, INC.
("Tenant").

        1.     The Lease Term commenced on July 29, 1998.

        2.     The Lease Term will expire on July 31, 2001 unless renewed or
               extended.

        3.     Tenant acknowledges that the Work has been completed in
               accordance with the Plans and Specifications and accepts such
               Work, subject to any punch list items being completed.

        4.     Tenant, further, acknowledges that any tenant improvement
               allowance owed to Tenant or other obligations of Landlord to
               Tenant in connection with the Work and all other conditions
               precedent to the commencement of the Lease Term have occurred and
               that the Lease is in full force and effect.

        5.     There are no existing defenses or offsets which, as of the date
               hereof, Tenant has against the enforcement of the Lease by
               Landlord.

        EXECUTED on the _____ day of __________, 19__.

                                     LANDLORD: AETNA LIFE INSURANCE COMPANY
                                               BY ALLEGIS REALTY INVESTORS, LLC
                                               IT'S INVESTMENT ADVISOR AND AGENT

                                            By: /s/ Signature Illegible

                                            Printed Name: Joseph E. Gaukler
                                                          ----------------------

                                            Title: SLVP
                                                   -----------------------------

ATTEST:                              TENANT: STANFORD MICRODEVICES, INC.

-----------------------------        By: /s/ Signature Illegible
          (Title)
                                     Printed Name: Susan Mendord
                                                   -----------------------------
                                     Title: G??elle
                                            ------------------------------------

Stanford Microdevices, Inc.
Office - Exhibit F
Version 97.1 (TX)

<PAGE>   45

                        [EXHIBIT G MISSING FROM ORIGINAL]

<PAGE>   46

                                   EXHIBIT "H"

                                     PARKING

        This Exhibit is attached to and made a part of the Lease by and between
AETNA LIFE INSURANCE COMPANY ("Landlord") and STANFORD MICRODEVICES, INC.
("Tenant").

        Provided that Tenant is not in default under the Lease, Landlord shall
make available to Tenant throughout the Lease Term, parking as designated by the
City of Richardson code for this property type. As consideration for the parking
spaces, Tenant shall pay to Landlord as Additional Rental the amount, if any,
set forth below, together with each monthly payment of Base Rental. Except with
respect to any reserved parking that Landlord may establish from time to time,
all tenant parking will be on a non-reserved, first-come, first-serve basis.
Landlord may elect to establish parking zone(s) or otherwise restrict access to
the parking spaces on the Project and require specific identification and/or
access cards for those vehicles allowed to park in such zone(s) or parking
spaces. Landlord reserves the right upon written notice posted in the parking
areas to temporarily close the parking areas for repairs or alterations as
Landlord may deem appropriate.

        Tenant agrees to pay to Landlord during the Lease Term the parking
charge of $0 per month for each parking space, beginning on the Commencement
Date. A pro rata portion of such parking charge shall be paid for any partial
month during the Lease Term. The parking charge is subject to adjustment from
time to time by Landlord to reflect Landlord's then current market charge, if
any, for parking spaces on the Project. Such adjustment shall be consistent with
industry standards in comparable buildings in the vicinity of the Project and
shall become effective on the first day of the first calendar month following
the delivery of written notice by Landlord to Tenant of the change. Tenant's
obligation to pay the parking charge is considered an obligation to pay rent and
is secured in a like manner to Tenant's obligation to pay rent and the failure
to pay the parking charge shall be deemed a failure to pay rent under the Lease.

        Landlord shall not be liable for any damage to Tenant's vehicles, or
those of any employees, agents, contractors or invitees of Tenant who use the
parking spaces and Tenant hereby waives on behalf of itself and its employees,
agents, contractors and invitees all claims against Landlord, whether based on
negligence or otherwise, and arising out of any loss or damage to vehicles or
other property while located in the parking spaces, or arising out of personal
injury sustained in connection with the use of such parking spaces. Tenant
hereby agrees to advise each of its employees, agents, contractors and invitees
of such waiver of claims.

        The failure to timely pay the parking charge or to comply with any of
the rules and regulations governing the parking shall entitle Landlord, in
addition to any other remedies provided under the Lease, to terminate Tenant's
right to use the parking spaces and tow any vehicles which are in violation of
the rules and regulations at the sole cost and expense of Tenant and without
liability for damages resulting therefrom.

                                               /s/ Signature Illegible
                                        ------------------------------------
                                                  Landlord's initials

                                               /s/ Signature Illegible
                                        ------------------------------------
                                                   Tenant's initials

Stanford Microdevices, Inc.
Office - Exhibit H
Version 97.1 (TX)

<PAGE>   47

                                   EXHIBIT "I"

                               SIGN SPECIFICATIONS

*       21" x 42" Aluminum pan with radius corners - 1" Depth

*       Painted Sherwin Williams 2074

*       Gerber Deep Mahogany Brown Copy & Border

*       4" Copy only - 3 Line Maximum

*       1 1/2" Between Lines of Copy

*       35" Maximum Length of Copy

*       Condensed or expanded copy not accepted - See below

*       Letter style - Halvetica Compact

*       Logos subject to Landlord and Architects' approval, not to be
        unreasonably withheld.

*       Sign drawings must be submitted for Landlord and Architects' written
        approval not to be unreasonably withheld before fabrication.

Our purpose in providing the Tenants with these requirements is to create a good
business image which gives the impression of quality and professionalism.

                                 [CHART OMITTED]

                                                     ABC ABC

                                                     NOT ACCEPTED
                                                     ------------

<PAGE>   48

                                   EXHIBIT "I"

                               SIGN SPECIFICATIONS

*       21" x 42" Aluminum pan with radius corners - 1" Depth

*       Painted Sherwin Williams 2074

*       Gerber Deep Mahogany Brown Copy & Border

*       4" Copy only - 3 Line Maximum

*       1 1/2" Between Lines of Copy

*       35" Maximum Length of Copy

*       Condensed or expanded copy not accepted - See below

*       Letter style - Halvetica Compact

*       Logos subject to Landlord and Architects' approval, not to be
        unreasonably withheld.

*       Sign drawings must be submitted for Landlord and Architects' written
        approval not to be unreasonably withheld before fabrication.

Our purpose in providing the Tenants with these requirements is to create a good
business image which gives the impression of quality and professionalism.

                                 [CHART OMITTED]

                                                     ABC ABC

                                                     NOT ACCEPTED
                                                     ------------

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