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                                                                   EXHIBIT 10.18

                     AMENDMENT NO. 1 TO SEGUE SOFTWARE, INC.
                         1998 EMPLOYEE STOCK OPTION PLAN

         This AMENDMENT NO. 1 TO SEGUE SOFTWARE, INC. 1998 EMPLOYEE STOCK OPTION
PLAN (the "Amendment"), is made as of December 17, 1999. Capitalized terms used
herein and not otherwise defined shall have the meaning provided in the Plan, as
hereinafter defined. Reference is made to the Segue Software, Inc. 1998 Employee
Stock Option Plan (the "Plan"), adopted by the board of directors of Segue
Software, Inc. (the "Company") as of November 23, 1998.

         Section 1.  Amendment.  The Plan is amended as set forth below:

         (a)      The following language in Section 3 of the Plan is deleted in
                  its entirety:

                           "1,000,000"

                  and is replaced in its entirety by the following:

                           "one million two hundred fifty thousand (1,250,000)"

         Except as expressly amended hereby, the Plan remains in full force and
effect in accordance with its terms.

         Section 2.  Governing Law.  This Amendment shall be construed under and
governed by the internal laws of the Commonwealth of Massachusetts.

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                                                                   Exhibit 10.19

                                                        NOV 12 1999

                                      LEASE

THIS LEASE is made on the 5th day of November, 1999, by and between Albright
Properties, a tenancy in common (hereinafter called "Lessor") and Segue
Software, Inc., a Delaware corporation (hereinafter called "Lessee").

IN CONSIDERATION OF THE MUTUAL PROMISES HEREIN CONTAINED, THE PARTIES AGREE AS
FOLLOWS:

 1.      Premises. Lessor leases to Lessee, and Lessee leases from Lessor, upon
         the terms and conditions herein set forth, those certain Premises
         ("Premises") situated in the Town of Los Gatos, County of Santa Clara,
         California, as outlined in Exhibit "A" attached hereto and described as
         follows: approximately 15,600 square feet known as 90 Albright Way, Los
         Gatos, California, and the related parking areas. Lessee shall have the
         use on an additional five parking spaces adjacent to the Premises as
         shown on Exhibit "A" which are located on the adjacent property owned
         by an affiliate of Lessor.

 2.      Term. The term of this Lease shall be for five (5) years, commencing on
         January 15, 2000 and ending on January 14, 2005, unless sooner
         terminated pursuant to any provision hereof. Lessee and its contractors
         shall have access to the Premises sixty (60) days prior to the
         Commencement for the purposes of installing furniture, cabling, phone
         systems and other functions necessary for its business, provided that
         such early access does not interfere with Lessor's completion of the
         improvements specified in Section 7 below.

3.       Rent. Lessee shall pay to Lessor rent for the Premises Thirty-Seven
         Thousand Four Hundred Forty and 00/100 Dollars ($37,440.00) per month
         in lawful money of the United States of America, subject to adjustment
         as provided below. Rent shall be paid without deduction or offset,
         prior notice, or demand, at such place as may be designated from time
         to time by Lessor as follows: $37,440.00 shall be paid upon execution
         of the Lease, which sum represents the amount of the first month's
         rent. A deposit of $112,320.00 as a Security Deposit shall be made by
         Lessee and held by Lessor pursuant to Paragraph 5 of this Lease, and
         shall be paid upon execution of the Lease. Monthly rent shall be paid
         in advance on the first (1st) day of each calendar month as follows:

              Period                                 Monthly Rent/NNN
              ------                                 ----------------
         1/15/00 - 1/14/01                           $37,440.00
         1/15/01 - 1/14/02                           $38,563.00

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         1/15/02 - 1/14/03                           $39,720.00
         1/15/03 - 1/14/04                           $40,912.00
         1/15/04 - 1/15/05                           $42,139.00

         Rent for any period during the term hereof which is for less than one
         (1) full month shall be a pro-rata portion of the monthly rent payment.
         Lessee acknowledges that late payment by Lessee to Lessor of rent or
         any other payment due Lessor will cause Lessor to incur costs not
         contemplated by this Lease, the exact amount of such costs being
         extremely difficult and impracticable to fix. Such costs include,
         without limitation, processing and accounting charges, and late charges
         that may be imposed on Lessor by the terms of any encumbrance and note
         secured by any encumbrance covering the Premises. Therefore, if any
         installment of rent or other payment due from Lessee is not received by
         Lessor within five (5) days following the date it is due and payable,
         Lessee shall pay to Lessor an additional sum of ten percent (10%) of
         the overdue amount as a late charge. Notwithstanding anything contained
         in this paragraph, if Lessee is delinquent in the payment of Rent and
         is subject to a late charge, Lessor agrees to waive the late charge if
         the Rent or Additional Rent due is paid within five (5) days of
         Lessor's written notice to Lessee of the delinquent amount owed and
         provided Lessee has not been delinquent in its payment of Rent or
         Additional Rent owed under this Lease during the twelve (12) month
         period preceding the rent delinquency in question. However, Lessor
         shall only be obligated to notify Lessee once of its intent to assess a
         late charge in any twelve (12) month period. The parties agree that
         this late charge represents a fair and reasonable estimate of the costs
         that Lessor will incur by reason of late payment by Lessee. Acceptance
         of any late charge shall not constitute a waiver of Lessee's default
         with respect to the overdue amount, nor prevent Lessor from exercising
         any of the other rights and remedies available to Lessor.

                  If, for any reason whatsoever, Lessor cannot deliver
         possession of the Premises on the commencement date set forth in
         Paragraph 2 above, this Lease shall not be void or voidable, nor shall
         Lessor be liable to Lessee for any loss or damage resulting therefrom;
         but in such event, Lessee shall not be obligated to pay rent until
         possession of the Premises is tendered to Lessee and the commencement
         and termination dates of this Lease shall be revised to conform to the
         date of Lessor's delivery of possession. In the event that Lessor shall
         permit Lessee to occupy the Premises prior to the commencement date of
         the term, such occupancy shall be subject to all of the provisions of
         this Lease, with the exception of the obligation to pay rent at the
         same monthly rate as that prescribed for the first month of the Lease
         term. See also the provision in Section 7 below for a rent abatement in
         the event of delay in completion of certain improvements.

         A. All taxes, insurance premiums, Outside Area Charges, late charges,
            costs and expenses which Lessee is required to pay hereunder,
            together with all interest and

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                  penalties that may accrue thereon in the event of Lessee's
                  failure to pay such amounts, and all reasonable damages,
                  costs, and attorney's fees and expenses which Lessor may incur
                  by reason of any default of Lessee or failure on Lessee's part
                  to comply with the terms of this Lease, shall be deemed to be
                  additional rent (hereinafter, "Additional Rent"), and, in the
                  event of non-payment by Lessee, Lessor shall have all of the
                  rights and remedies with respect thereto as Lessor has for the
                  non-payment of monthly installment of rent.

 4.      Option to Extend Term.

         A.       Lessee shall have the option to extend the term on all the
                  provisions contained in this Lease for one three-year periods
                  ("extended term(s)") at an adjusted rental calculated as
                  provided in Subparagraph B below on the condition that:

                  (a)      Lessee has given to Lessor written notice of exercise
                           of that option ("option notice") at least six (6)
                           months but no more than twelve (12) months before
                           expiration of the initial term or extended term(s),
                           as the case may be.

                  (b)      Lessee is not in default in the performance of any of
                           the terms and conditions of the Lease on the date of
                           giving the option notice, and Lessee is not in
                           default on the date that the extended term is to
                           commence.

         B.       Monthly rent for the extended term shall be the then
                  prevailing market rent for similar buildings in the immediate
                  area.

         C.       In no event shall the monthly rent for any extended term(s) be
                  less than the Monthly Rent paid immediately prior to such
                  extended term(s). The option to extend shall be personal to
                  Lessee, and shall not be transferable or assignable to any
                  other person or entity. If Lessee has exercised its option to
                  extend, the phrase "Lease term" as used in this Lease shall
                  mean the initial term of the Lease and the extended term(s).

 5.      Security Deposit. Lessor acknowledges that Lessee has deposited with
         Lessor a Security Deposit in the sum of $112,320.00, in the form of
         cash or an irrevocable letter of credit in form acceptable to Lessor,
         to secure the full and faithful performance by Lessee of each term,
         covenant, and condition of this Lease. If Lessee shall at any time fail
         to make any payment or fail to keep or perform any term, covenant, or
         condition on its part to be made or performed or kept under this Lease,
         Lessor may, but shall not be obligated to and without waiving or
         releasing Lessee from any obligation under this Lease, use, apply, or
         retain the whole or any part of said Security Deposit (a) to the extent
         of any sum due to

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         Lessor; or (b) to compensate Lessor for any loss, damage, attorneys'
         fees or expense sustained by Lessor due to Lessee's default. In such
         event, Lessee shall, within five (5) days of written demand by Lessor,
         remit to Lessor sufficient funds to restore the Security Deposit to its
         original sum. No interest shall accrue on the Security Deposit. Should
         Lessee comply with all the terms, covenants, and conditions of this
         Lease and, at the end of the term of this Lease, leave the Premises in
         the condition required by this Lease, then said Security Deposit or any
         balance thereof, less any sums owing to Lessor, shall be returned to
         Lessee within fifteen (15) days after the termination of this Lease and
         vacancy of the Premises by Lessee. Lessor can maintain the Security
         Deposit separate and apart from Lessor's general funds, or can
         co-mingle the Security Deposit with the Lessor's general and other
         funds.

 6.      Use of the Premises. The Premises shall be used exclusively for the
         purpose of general office and research and development of computer
         related products.

                  Lessee shall not use or permit the Premises, or any part
         thereof, to be used for any purpose or purposes other than the purpose
         for which the Premises are hereby leased; and no use shall be made or
         permitted to be made of the Premises, nor acts done, which will
         increase the existing rate of insurance upon the building in which the
         Premises are located, or cause a cancellation of any insurance policy
         covering said building, or any part thereof, nor shall Lessee sell or
         permit to be kept, used, or sold, in or about the Premises, any article
         which may be prohibited by the standard form of fire insurance
         policies. Lessee shall not commit or suffer to be committed any waste
         upon the Premises or any public or private nuisance or other act or
         thing which may disturb the quiet enjoyment of any other tenant in the
         building in which the premises are located; nor, without limiting the
         generality of the foregoing, shall Lessee allow the Premises to be used
         for any improper, immoral, unlawful, or objectionable purpose.

                  Lessee shall not place any harmful liquids in the drainage
         system of the Premises or of the building of which the Premises form a
         part. No waste materials or refuse shall be dumped upon or permitted to
         remain upon any part of the Premises outside of the building proper
         except in trash containers placed inside exterior enclosures designated
         for that purpose by Lessor, or inside the building proper where
         designated by Lessor. No materials, supplies, equipment, finished or
         semi-finished products, raw materials, or articles of any nature shall
         be stored upon or permitted to remain on any portion of the Premises
         outside of the building proper. Lessee shall comply with all the
         covenants, conditions, and/or restrictions ("C.C. & R.'s") affecting
         the Premises

                  Lessor represents and warrants to Lessee that to the best of
         its knowledge there are no Toxic or Hazardous materials present on, at
         or under the Premises, which shall be deemed to include underlying land
         and groundwater, at the time of Lessee's occupancy.

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         Lessor shall indemnify, defend and hold harmless Lessee, its partners,
         directors, officers, employees, lenders, and successors against all
         claims, obligations, liabilities, demands, damages, judgements, and
         costs, including reasonable attorneys' fees arising from or in
         connection with any prior Toxic or Hazardous materials that existed
         prior to Lessee's occupancy of the Premises.

                  Lessee in turn represents to Lessor that it does not now and
         will not in the future permit the use or storage on the Premises of
         Toxic or Hazardous materials, excluding, however basic janitorial,
         maintenance and office supplies, and materials commonly used in
         connection with Lessee's business as described in paragraph 6 hereof.
         For purposes of this paragraph 6 "Toxic or Hazardous Materials" shall
         mean any product, substance, chemical, material or waste whose
         presence, nature, quality and/or intensity or existence, use,
         manufacture, disposal, transportation, spill, release or effect, either
         by itself or in combination with other materials expected to be on the
         leased premises, is either (i) potentially injurious to the public
         health, safety or welfare, the environment, or the leased premises;
         (ii) regulated or monitored by any governmental authority; or (iii) a
         basis for potential liability of Lessee and Lessor to any governmental
         agency or third party under any applicable statute or common law
         theory. "Toxic or Hazardous Materials" shall include, but not be
         limited to, hydrocarbons, petroleum, gasoline, crude oil or any
         products or by-products thereof.

                  Lessee hereunder shall be responsible for and indemnify, and
         hold Lessor and its partners, directors, officers, employees, lenders,
         successors and assigns harmless from all claims, obligations,
         liabilities, demands, damages, judgments and costs, including
         reasonable attorneys' fees arising at any time during or in connection
         with Lessee's causing or permitting any materials referred to under any
         governmental provisions or regulatory scheme as "hazardous" or "toxic"
         or which contain petroleum, gasoline, or other petroleum product, to be
         brought upon, stored, manufactured, generated, handled, disposed, or
         used on, under or about the Premises. Lessee's and Lessor's obligations
         hereunder shall survive the termination of this Lease.

                  If, at any time during the term of this Lease, Lessor suspects
         that toxic waste, spillage, or other contaminants may be present on the
         Premises, Lessor may order a soils report, or its equivalent, and
         Lessee shall pay such costs within fifteen (15) days from the date upon
         which it is determined that such contamination was caused by Lessee. If
         any such toxic waste, spillage, or other contaminants are found upon
         the Premises, and it is determined that such contamination was caused
         by Lessee, Lessee shall deposit with Lessor, within fifteen (15) days
         of notice from Lessor to Lessee to do so, the amount necessary to
         remove the substances and remedy the problem.

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                  Lessee shall abide by all laws, ordinances, and statutes, as
         they now exist or may hereafter be enacted by legislative bodies having
         jurisdiction thereof, relating to its use and occupancy of the
         Premises.

7.       Improvements:

         A. Allowance: Subject to completion of the Initial Improvements, as
         defined below, Lessee takes the Premises in "AS IS" condition. Lessor
         shall provide Lessee with an allowance of $78,000.00 for building
         related improvements (i.e. so-called "hard costs" including, but not
         limited to, interior walls, alterations required for code compliance,
         painting and carpeting). Said allowance shall not be used for so-called
         "soft costs" or tenant specific improvements such as cabling and
         moving. In addition, Lessor shall contribute $5,000 towards the cost of
         bringing the restrooms to ADA compliance.

         B. Plans: The Lessee's architect shall prepare plans for the initial
         tenant improvements and specification for finishes (i.e. paint and
         carpet) to be made to the Premises by the Lessor (the "Initial
         Improvements"). The Initial Improvements shall be performed Lessor's
         general contractor. The Initial Improvements shall be divided into two
         categories (i) the "Basic Work" shall consist of painting, carpeting
         and other basic alterations to prepare the Premises for occupancy, and
         (ii) the "Additional Work" shall consist of additional improvements
         which may be completed after the Basic Work. The plans of the Initial
         Improvements shall be subject to the reasonable approval of the Lessor,
         and shall be submitted to Lessor by November 19, 1999.

         C. Cost Proposals and Schedule: After the completion and approval of
         the plans and specifications for the Initial Improvements, and by
         December 10, 1999 at the latest, the Lessor shall cause Lessor's
         general contractor to present for review and approval by Lessee a
         proposal for execution of the Initial Improvements including specified
         prices and estimated completion deadlines. The process of constructing
         the Initial Improvements shall be a so-called "open book" process with
         Lessee entitled to review and be informed of all components of expenses
         incurred, and to review and approve proposed prices and the identity of
         all subcontractors. Lessor will make a reasonable effort to provide
         multiple proposals from multiple subcontractors for each component of
         the Initial Improvements.

         D. Construction Deadlines: The deadline for completion of the Basic
         Work is the commencement date set forth in Paragraph 2 above.
         Notwithstanding anything to the contrary in this Lease, the rent and
         Additional Rent payable by Lessee shall be abated on a per diem basis
         for any delay in the substantial completion of the Basic Work (which is
         not a delay otherwise attributable to Lessee) beyond the commencement
         date set forth in Paragraph 2 above, provided that Basic Network is
         limited to carpet, paint,

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         minor modifications to the stairway, and minor modifications to the
         restrooms, none of which require a permit. Lessor shall complete the
         Additional Work with reasonable diligence. In any event, if any portion
         of the Initial Work is not complete on or before April 1, 2000, the
         Lessee shall have the right to have the remaining work completed by a
         contractor designated by Lessee, provided that Lessee is not the cause
         of the delays. and proposed subcontractor's to complete the Basic Work.
         Lessor shall complete the Additional Work with reasonable diligence. In
         any event, if any portion of the Initial Work is not complete on or
         before April 1, 1999, the Lessee shall have the right to have the
         remaining work completed by a contractor designated by Lessee.

         E. Reimbursement: The allowances, as described above, shall be applied
         by Lessor to the expense of completing the Initial Work. Lessee shall
         be responsible for all cost of the Initial Work in excess of the
         allowances, as described above, and which is accordance with a price
         proposal or change order approved in writing by Lessee. Lessee shall
         reimburse Lessor for such excess cost upon substantial completion of
         the Initial Work, with an appropriate reserve (not to exceed 10%) held
         back for any "punch list" items incomplete at that time. Lessor shall
         submit a written request for reimbursement with reasonably adequate
         documentation of all expenses incurred in completing the Initial
         Improvements.

         F. Procedures: Lessor and Lessor's general contractor shall cooperate
         with Lessee's architect as a supervisor of the Initial Improvements and
         on scheduling matters and change orders. Lessee shall designate a
         representative for the construction process. In connection with the
         construction of the Initial Improvements, each party agrees that it
         will respond within five business days to any written request for
         approval and that a failure to respond within ten business days to any
         written request for approval shall be deemed an approval of the request
         in question.

         G. Lessor's Work: Lessor shall warrant the at the time of occupancy,
         the HVAC, electrical, lighting, mechanical and structural components of
         the building are in good working order.

8.       Taxes and Assessments.

         A. Lessee shall pay before delinquency any and all taxes, assessments,
         license fees, and public charges levied, assessed, or imposed upon or
         against Lessee's fixtures, equipment, furnishings, furniture,
         appliances, and personal property installed or located on or within the
         Premises. Lessee shall cause said fixtures, equipment, furnishings,
         furniture, appliances, and personal property to be assessed and billed
         separately from the real property of Lessor. If any of Lessee's said
         personal property shall be assessed with Lessor's real property, Lessee
         shall pay to Lessor the taxes attributable to Lessee within

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         ten (10) days after receipt of a written statement from Lessor setting
         forth the taxes applicable to Lessee's property.

         B. All property taxes or assessments levied or assessed by or hereafter
         levied or assessed by any governmental authority against the Premises
         or any portion of such taxes or assessments which becomes due or
         accrued during the term of this Lease shall be paid by Lessor. Lessee
         shall pay to Lessor Lessee's proportionate share of such taxes or
         assessments within ten (10) days of receipt of Lessor's invoice
         demanding such payment. Lessee's liability hereunder shall be prorated
         to reflect the commencement and termination dates of this Lease.

9.       Insurance.

         A. Indemnity. During and with respect to the term of this Lease, Lessee
         agrees to indemnify, defend and save Lessor against and hold Lessor
         harmless from any and all demands, claims, causes of action, judgments,
         obligations, or liabilities, and all reasonable expenses incurred in
         investigating or resisting the same (including reasonable attorneys'
         fees) on account of, or arising out of, the condition, use, or
         occupancy of the Premises. This Lease is made on the express condition
         that Lessor shall not be liable for, or suffer loss by reason of,
         injury to person or property, from whatever cause, in any way connected
         with the condition, use, or occupancy of the Premises, during and with
         respect to the term of this Lease, specifically including, without
         limitation, any liability for injury to the person or property of
         Lessee, its agents, officers, employees, licensees, and invitees.

         B. Liability Insurance. Lessee shall, at its expense, obtain and keep
         in force during the term of this Lease a policy of Commercial General
         Liability insurance insuring Lessor and Lessee, with cross-liability
         endorsements, against any liability arising out of the condition, use,
         or occupancy of the Premises and all areas appurtenant thereto,
         including parking areas and property insurance to cover Lessee's
         personal property, equipment, inventory, fixtures and tenant
         improvements on the Premises. Such insurance shall be in an amount
         satisfactory to Lessor of not less than one million dollars
         ($1,000,000) for each occurrence for bodily injury and physical damage
         to the property and two million dollars ($2,000,000) general aggregate
         limit. The insurance shall be with companies approved by Lessor, which
         approval Lessor agrees not to withhold unreasonably. Prior to
         possession, Lessee shall deliver to Lessor a certificate of insurance
         and endorsement evidencing the existence of the policy which (1) names
         Lessor as an additional insured, (2) shall not be canceled or altered
         without thirty (30) days' prior written notice to Lessor, (3) insures
         performance of the indemnity set forth in Section A of Paragraph 9, and
         (4) coverage is primary and any coverage by Lessor is in excess
         thereto.

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         C. Property Insurance. Lessor shall obtain and keep in force during the
         term of this Lease a policy or policies of insurance covering loss or
         damage to the Premises (which may include earthquake and/or flood
         insurance), in the amount of the full replacement value thereof. Lessee
         shall pay to Lessor its pro-rata share of the cost of said insurance
         within ten (10) days of Lessee's receipt of Lessor's invoice demanding
         such payment. Lessee acknowledges that such insurance procured by
         Lessor shall contain a deductible which reduces Lessee's cost for such
         insurance, and , in the event of loss or damage, Lessee shall be
         required to pay to Lessor the amount of such deductible.

         D. Notwithstanding anything in this Lease to the contrary, Lessor and
         Lessee hereby releases each other and their respective agents,
         employees, successors, assignees and sublessees from all liability for
         injury to any person or damage to any property that is caused by or
         results from a risk which is actually insured against, which is
         required to be insured against under this Lease, or which would
         normally be covered by "all risk" property insurance, without regard to
         the negligence or willful misconduct of the person or entity so
         released. All of Lessor's and Lessee's repair and indemnity obligations
         under this Lease shall be subject to the waiver and release contained
         in this paragraph. Each party shall cause each insurance policy it
         obtains to provide that the insurer thereunder waives all recovery by
         way of subrogation as required herein in connection with any injury or
         damage covered by such policy.

10.      Reimbursable Expenses and Utilities. Lessee shall pay its pro-rata
         share based on square footage of all water, gas, light, heat, power,
         electricity, telephone, trash removal, landscaping, sewer charges, and
         all other services, including normal and customary property management
         fees, supplied to or consumed on the Premises. In the event that any
         such services are billed directly to Lessor, then Lessee shall pay
         Lessor for such expenses within ten (10) days of Lessee's receipt of
         Lessor's invoice demanding payment.

 11.     Repairs and Maintenance.

         A.       Subject to provisions of paragraph 15, Lessor shall keep and
                  maintain in good order, condition and repair the structural
                  elements of the Premises including the roof, roof membrane,
                  paving, floor slab, foundation, exterior walls, landscaping,
                  irrigation and elevators. Lessor shall make such repairs,
                  replacements, alterations or improvements as Lessor deems
                  reasonably necessary with respect to such structural elements
                  and Lessee shall pay to Lessor, within ten days of Lessor's
                  invoice to Lessee therefor, Lessee's pro-rata share of such
                  repairs, replacements, alterations or improvements. In the
                  event that the cost of any replacement or improvement exceeds
                  $25,000 per occurrence, the amount in excess of $25,000 shall
                  be amortized over the useful life of such replacements or
                  improvements. Lessee shall be obligated to pay its pro-rata
                  share of such excess on a monthly

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                  basis, as Additional Rent, or as long as the useful life
                  coincides with the lease term. Notwithstanding the foregoing,
                  if the reason for any repair, replacement, alteration or
                  improvement is caused by Lessee or arises because of a breach
                  of Lessee's obligations under this Lease, then Lessee shall
                  pay 100% of the cost or expense to remedy the same.

         B.       Except as expressly provided in Subparagraph A above, Lessee
                  shall, at its sole cost, keep and maintain the entire Premises
                  and every part thereof, including, without limitation, the
                  windows, window frames, plate glass, glazing, truck doors,
                  doors, all door hardware, interior of the Premises, interior
                  walls and partitions, and electrical, plumbing, lighting,
                  heating, and air conditioning systems in good and sanitary
                  order, condition, and repair. Lessee shall, at all times
                  during the Lease term and at his expense, have in effect a
                  service contract for the maintenance of the heating,
                  ventilating, and air-conditioning (HVAC) equipment with an
                  HVAC repair and maintenance contractor approved by Lessor
                  which provides for periodic inspection and servicing at least
                  once every three (3) months during the term hereof. Lessee
                  shall further provide Lessor with a copy of such contract and
                  all periodic service reports.

                           Should Lessee fail to maintain the Premises or make
                  repairs required of Lessee hereunder forthwith upon notice
                  from Lessor, Lessor, in addition to all other remedies
                  available hereunder or by law, and without waiving any
                  alternative remedies, may make the same, and in that event,
                  Lessee shall reimburse Lessor as additional rent for the cost
                  of such maintenance or repairs on the next date upon which
                  rent becomes due.

                           Lessee hereby expressly waives the provision of
                  Subsection 1 of Section 1932, and Sections 1941 and 1942 of
                  the Civil Code of California and all rights to make repairs at
                  the expense of Lessor, as provided in Section 942 of said
                  Civil Code.

12.      Alterations and Additions. Lessee shall not make, or suffer to be made,
         any alterations, improvements, or additions in, on, or about, or to the
         Premises or any part thereof, without prior written consent of Lessor
         and without a valid building permit issued by the appropriate
         governmental authority. Lessor retains, at his sole option, the right
         to retain a General Contractor of his own choosing to perform all
         repairs, alterations, improvements, or additions in, on, about, or to
         said Premises or any part thereof. As a condition to giving such
         consent, Lessor may require that Lessee agree to remove any such
         alterations, improvements, or additions at the termination of this
         Lease, and to restore the Premises to their prior condition. Any
         alteration, addition, or improvement to the Premises, shall become the
         property of Lessor upon installation, and shall remain upon and be

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         surrendered with the Premises at the termination of this Lease. Lessor
         can elect, however, within thirty (30) days before expiration of the
         term or within five (5) days after termination of the term, to require
         Lessee to remove any alterations, additions, or improvements that
         Lessee has made to the Premises. If Lessor so elects, Lessee shall
         restore the Premises to the condition designated by Lessor in its
         election, before the last day of the term, or within thirty (30) days
         after notice of election is given, whichever is later. Alterations and
         additions which are not to be deemed as trade fixtures include heating,
         lighting, electrical systems, air conditioning, partitioning,
         electrical signs, carpeting, or any other installation which has become
         an integral part of the Premises. In the event that Lessor consents to
         Lessee's making any alterations, improvements, or additions, Lessee
         shall be responsible for the timely posting of notices of non-
         responsibility on Lessor's behalf, which shall remain posted until
         completion of the alterations, additions, or improvements. Lessee's
         failure to post notices of non- responsibility as required hereunder
         shall be a breach of this Lease.

                  Notwithstanding anything to the contrary herein, if, during
         the term hereof, any alteration, addition, or change of any sort
         through all or any portion of the Premises or of the building of which
         the Premises form a part, is required by law, regulation, ordinance, or
         order of any public agency then if such legal requirement is not
         imposed because of Lessee's specific use of the Premises and is not
         "triggered" by Lessee's alterations or Lessee's application for a
         building permit or any other governmental approval (in which instance
         Lessee shall be responsible for 100% of the cost of such improvement),
         Lessor shall be responsible for constructing such improvement and
         Lessee shall be responsible for its proportional share of the cost for
         said improvement, amortized over the useful life of such improvement
         that coincides with the remaining Lease term including any extensions.

13.      Acceptance of the Premises and Covenant to Surrender. By entry and
         taking possession of the Premises pursuant to this Lease, Lessee
         accepts the Premises as being in good and sanitary order, condition,
         and repair, and accepts the Premises in their condition existing as of
         date of such entry, and Lessee further accepts any tenant improvements
         to be constructed by Lessor, if any, as being completed in accordance
         with the plans and specifications for such improvements.

                  Lessee agrees on the last day of the term hereof, or on sooner
         termination of this Lease, to surrender the Premises, together with all
         alterations, additions, and improvements which may have been made in,
         to, or on the Premises by Lessor or Lessee, unto Lessor in good and
         sanitary order, condition, and repair, excepting for such wear and tear
         as would be normal for the period of the Lessee's occupancy. Lessee, on
         or before the end of the term or sooner termination of this Lease,
         shall remove all its personal property and trade fixtures from the
         Premises, and all property not so removed shall be

                                       11
<PAGE>

         deemed abandoned by Lessee. Lessee further agrees that at the end of
         the term or sooner termination of this Lease, Lessee, at its sole
         expense, shall have the carpets steam cleaned, the walls and columns
         painted, the flooring waxed, any damaged ceiling tile replaced, the
         windows cleaned, the drapes cleaned, and any damaged doors replaced.

                  If the Premises are not surrendered at the end of the term or
         sooner termination of this Lease, Lessee shall indemnify Lessor against
         loss or liability resulting from delay by Lessee in so surrendering the
         Premises, including, without limitation, any claims made by any
         succeeding tenant founded on such delay.

14.      Default. In the event of any breach of this Lease by the Lessee, or an
         abandonment of the Premises by the Lessee, the Lessor has the option of
         (1.) removing all persons and property from the Premises and
         repossessing the Premises, in which case any of the Lessee's property
         which the Lessor removes from the Premises may be stored in a public
         warehouse or elsewhere at the cost of, and for the account of, Lessee;
         or (2.) allowing the Lessee to remain in full possession and control of
         the Premises. If the Lessor chooses to repossess the Premises, the
         Lease will automatically terminate in accordance with the provisions of
         the California Civil Code, Section 1951.2. In the event of such
         termination of the Lease, the Lessor may recover from the Lessee: (1.)
         the worth at the time of award of the unpaid rent which had been earned
         at the time of termination, including interest at the maximum rate an
         individual is permitted by law to charge; (2.) the worth at the time of
         award of the amount by which the unpaid rent which would have been
         earned after termination until the time of award exceeds the amount of
         such rental loss that the Lessee proves could have been reasonably
         avoided, including interest at the maximum rate an individual is
         permitted by law to charge; (3.) the worth at the time of award of the
         amount by which the unpaid rent for the balance of the term after the
         time of award exceeds the amount of such rental loss that the Lessee
         proves could be reasonably avoided; and (4.) any other amount necessary
         to compensate the Lessor for all the detriment proximately caused by
         the Lessee's failure to perform his obligations under the Lease or
         which, in the ordinary course of things, would be likely to result
         therefrom. "The worth at the time of award," as used in (1.) and (2.)
         of this Paragraph, is to be computed by allowing interest at the
         maximum rate an individual is permitted by law to charge. "The worth at
         the time of award," as used in (3.) of this Paragraph, is to be
         computed by discounting the amount at the discount rate of the Federal
         Reserve Bank of San Francisco at the time of award, plus one percent
         (1%).

                  If the Lessor chooses not to repossess the Premises, but
         allows the Lessee to remain in full possession and control of the
         Premises, then, in accordance with provisions of the California Civil
         Code, Section 1951.4, the Lessor may treat the Lease as being in full
         force and effect, and may collect from the Lessee all rents as they
         become due through the termination date of the Lease, as specified in
         the Lease. For the purpose of

                                       12
<PAGE>

         this paragraph, the following do not constitute a termination of
         Lessee's right to possession: (1.) acts of maintenance or preservation,
         or efforts to relet the property; (2.) the appointment of a receiver on
         the initiative of the Lessor to protect his interest under this Lease.

                  Lessee shall be liable immediately to Lessor for all costs
         Lessor incurs in reletting the Premises, including, without limitation,
         brokers' commissions, expenses of remodeling the Premises required by
         the reletting, and like costs. Reletting can be for a period shorter or
         longer than the remaining term of this Lease. Lessee shall pay to
         Lessor the rent due under this Lease on the dates the rent is due, less
         the rent Lessor receives from any reletting. No act by Lessor allowed
         by this Section shall terminate this Lease unless Lessor notifies
         Lessee that Lessor elects to terminate this Lease. After Lessee's
         default and for as long as Lessor does not terminate Lessee's right to
         possession of the Premises, if Lessee obtains Lessor's consent, Lessee
         shall have the right to assign or sublet its interest in this Lease,
         but Lessee shall not be released from liability. Lessor's consent to a
         proposed assignment or subletting shall not be unreasonably withheld.

                  If Lessor elects to relet the Premises as provided in this
         Paragraph, rent that Lessor receives from reletting shall be applied to
         the payment of: (1.) any indebtedness from Lessee to Lessor other than
         rent due from Lessee; (2.) all costs, including for maintenance,
         incurred by Lessor in reletting; (3.) rent due and unpaid under this
         Lease. After deducting the payments referred to in this Paragraph, any
         sum remaining from the rent Lessor receives from reletting shall be
         held by Lessor and applied in payment of future rent as rent becomes
         due under this Lease. In no event shall Lessee by entitled to any
         excess rent received by Lessor. If, on the date rent is due under this
         Lease, the rent received from reletting is less than the rent due on
         that date, Lessee shall pay to Lessor, in addition to the remaining
         rent due, all costs, including for maintenance, Lessor incurred in
         reletting that remain after applying the rent received from the
         reletting, as provided in this Paragraph.

                  Lessor, at any time after Lessee commits a default, can cure
         the default at Lessee's cost. If Lessor at any time, by reason of
         Lessee's default, pays any sum or does any act that requires the
         payment of any sum, the sum paid by Lessor shall be due immediately
         from Lessee to Lessor at the time the sum is paid, and if paid at a
         later date shall bear interest at the maximum rate an individual is
         permitted by law to charge from the date the sum is paid by Lessor
         until Lessor is reimbursed by Lessee. The sum, together with interest
         on it, shall be additional rent.

                  Rent not paid when due shall bear interest at the maximum rate
         an individual is permitted by law to charge from the date due until
         paid.

                                       13
<PAGE>

15.      Destruction. In the event the Premises are destroyed in whole or in
         part from any cause, Lessor shall either, (1.) rebuild or restore the
         Premises to their condition prior to the damage or destruction or (2.)
         subject to the limitations below, terminate the Lease.

                  In the event the Premises are substantially destroyed from any
         cause, Lessor may, at its option and subject to the limitations below,
         terminate the Lease. (As used in the previous sentence substantial
         destruction shall be defined as destruction requiring repairs which
         cost more than 25% of the replacement cost of the entire building which
         includes the Premises.) If Lessor does not give Lessee notice in
         writing within thirty (30) days from the destruction of the Premises of
         its election either to rebuild and restore the Premises, or to
         terminate this Lease, Lessor shall be deemed to have elected to rebuild
         or restore them, in which event Lessor agrees, at its expense, promptly
         to rebuild or restore the Premises to its condition prior to the damage
         or destruction. If Lessor does not complete the rebuilding or
         restoration within one hundred eighty (180) days following the date of
         destruction (such period of time to be extended for delays caused by
         the fault or neglect of Lessee of because of acts of God, acts of
         public agencies, labor disputes, strikes, fires, freight embargoes,
         rainy or stormy weather, inability to obtain materials, supplies or
         fuels, acts of contractors or subcontractors, or delay of the
         contractors or subcontractors due to such causes or other contingencies
         beyond control of Lessor), then Lessee shall have the right to
         terminate this Lease by giving fifteen (15) days prior written notice
         to Lessor. Lessor's obligation to rebuild or restore shall not include
         restoration of Lessee's trade fixtures, equipment, merchandise, or any
         improvements, alterations, or additions made by Lessee to the Premises.

                  Unless this Lease is terminated pursuant to the foregoing
         provisions, this Lease shall remain in full force and effect. Lessee
         hereby expressly waives the provisions of Section 1932, Subdivision 2,
         and Section 1933, Subdivision 4, of the California Civil Code.

16.      Condemnation. If any part of the Premises shall be taken for any public
         or quasi-public use, under any statute of by right of eminent domain,
         or private purchase in lieu thereof, and a part thereof remains, which
         is susceptible of occupation hereunder, this Lease shall, as to the
         part so taken, terminate as of the date title shall vest in the
         condemnor or purchaser, and the rent payable hereunder shall be
         adjusted so that the Lessee shall be required to pay for the remainder
         of the term only such portion of such rent as the value of the part
         remaining after taking such bears to the value of the entire Premises
         prior to such taking. Lessor shall have the option to terminate this
         Lease in the event that such taking causes a reduction in rent payable
         hereunder by fifty percent (50%) or more. If all of the Premises or
         such part thereof be taken so that there does not remain a portion
         susceptible for occupation hereunder, as reasonably necessary for
         Lessee's conduct of its business as contemplated in this Lease, this
         Lease shall thereupon terminate. If a part of

                                       14
<PAGE>

         all of the Premises be taken, all compensation awarded upon such taking
         shall go to the Lessor, and the Lessee shall have no claim thereto, and
         the Lessee hereby irrevocably assigns and transfers to the Lessor any
         right to compensation or damages to which the Lessee may become
         entitled during the term hereof by reason of the purchase or
         condemnation of all or a part of the Premises, except that Lessee shall
         have the right to recover its share of any award or consideration for
         (1.) moving expenses; (2.) loss or damage to Lessee's trade fixtures,
         furnishings, equipment, and other personal property; and (3.) business
         goodwill. Each party waives the provisions of the Code of Civil
         Procedure, Section 1265.130, allowing either party to petition the
         Superior Court to terminate this Lease in the event of a partial taking
         of the Premises.

17.      Free from Liens. Lessee shall (1.) pay for all labor and services
         performed for materials used by or furnished to Lessee, or any
         contractor employed by Lessee with respect to the Premises, and (2.)
         indemnify, defend, and hold Lessor and the Premises harmless and free
         from any liens, claims, demands, encumbrances, or judgments created or
         suffered by reason of any labor or services performed for materials
         used by or furnished to Lessee or any contractor employed by Lessee
         with respect to the Premises, and (3.) give notice to Lessor in writing
         five (5) days prior to employing any laborer or contractor to perform
         services related, or receiving materials for use upon the Premises, and
         (4.) shall post, on behalf of Lessor, a notice of non-responsibility in
         accordance with the statutory requirements of the California Civil
         Code, Section 3904, or any amendment thereof. In the event an
         improvement bond with a public agency in connection with the above is
         required to be posted, Lessee agrees to include Lessor as an additional
         obligee.

18.      Compliance with Laws. Lessee shall, at its own cost, comply with and
         observe all requirements of all municipal, county, state, and federal
         authority now in force, or which may hereafter be in force, pertaining
         to the use and occupancy of the Premises.

19.      Subordination. Lessee agrees that this Lease shall, at the option of
         Lessor, be subjected and subordinated to any mortgage, deed of trust,
         or other instrument of security, which has been or shall be placed on
         the land and building, or land or building of which the Premises form a
         part, and this subordination is hereby made effective without any
         further act of Lessee or Lessor. The Lessee shall, at any time
         hereinafter, on demand, execute any instruments, releases, or other
         documents that may be required by any mortgagee, mortgagor, trustor, or
         beneficiary under any deed of trust, for the purpose of subjecting or
         subordinating this Lease to the lien of any such mortgage, deed of
         trust, or other instrument of security. If Lessee fails to execute and
         deliver any such documents or instruments, Lessee irrevocably
         constitutes and appoints Lessor as Lessee's special attorney-in-fact to
         execute and deliver any such documents or instruments.

                                       15
<PAGE>

                  Lessor shall use its best efforts to obtain a non-disturbance
         agreement in the Lender's standard format.

20.      Abandonment. Lessee shall not vacate or abandon the Premises at any
         time during the term; and if Lessee shall abandon, vacate, or surrender
         said Premises, or be dispossessed by process of law, or otherwise, any
         personal property belonging to Lessee and left on the Premises shall be
         deemed to be abandoned, at the option of Lessor, except such property
         as may be mortgaged to Lessor; provided, however, that Lessee shall not
         be deemed to have abandoned or vacated the Premises so long as Lessee
         continues to pay all rents as and when due, and otherwise performs
         pursuant to the terms and conditions of this Lease.

21.      Assignment and Subletting.

         A. Definitions. For purposes of this Paragraph 21, the following terms
         shall be defined as follows:

         Sublet.      The term "Sublet" shall mean any transfer, sublet,
                      assignment, license or concession agreement, change of
                      ownership, mortgage, or hypothecation of this Lease or the
                      Lessee's interest in the Lease or in and to all or a
                      portion of the Premises, including, but not limited to,
                      bonus money payments (in excess of book value) for
                      Lessee's assets including its trade fixtures, equipment
                      and other personal property, goodwill, general
                      intangibles, and any capital stock or other equity
                      ownership of Lessee.

         Subrent.     The term "Subrent" shall mean any consideration of any
                      kind received, or to be received, by Lessee from a
                      Sublessee if such sums are related to Lessee's interest in
                      this Lease or in the Premises.
         Sublessee.   The term "Sublessee" shall mean the person or entity with
                      whom a Sublet agreement is proposed to be or is made.

                  Lessor's Consent. Lessee shall not enter into a Sublet without
         Lessor's prior written consent, which consent shall not be unreasonably
         withheld. Any attempted or purported Sublet without Lessor's prior
         written consent shall be void and confer no rights upon any third
         person and, at Lessor's election, shall terminate this Lease. In
         determining whether or not to consent to a proposed Sublet, Lessor may
         consider the following factors, among others, all of which shall be
         deemed reasonable; (i) whether the proposed Sublessee has a net worth
         equal to or greater than the net worth of Lessee; (ii) whether the
         proposed use of the Premises by the proposed Sublessee is consistent
         with the permitted use for the Premises set forth in Paragraph 6 of
         this Lease; (iii) whether the experience and business reputation of the
         proposed Sublessee is equal to or greater than that of Lessee; (iv)
         whether the rent payable by the Sublessee under the proposed Sublet

                                       16
<PAGE>

         reflects the current fair market rent for the subleased Premises as
         reasonably determined by Lessor; and (v) whether Lessor's consent will
         result in a breach of any other lease or agreement to which Lessor is a
         party affecting the Building. Each Sublessee shall agree in writing,
         for the benefit of Lessor, to assume, to be bound by, and to perform
         the terms and conditions and covenants of this Lease to be performed by
         Lessee. Notwithstanding anything contained herein, Lessee shall not be
         released from liability for the performance of each term, condition and
         covenant of this Lease by reason of Lessor's consent to a Sublet unless
         Lessor specifically grants such release in writing. Consent by Lessor
         to any Sublet unless Lessor specifically grants such release in
         writing. Consent by Lessor to any Sublet shall not be deemed a consent
         to any subsequent Sublet. Lessee shall reimburse Lessor for all
         reasonable costs and attorneys' fees incurred by Lessor in connection
         with the evaluation, processing and/or documentation of any requested
         Sublet, whether or not Lessor's consent is granted. Lessor's reasonable
         costs shall include the cost of any review or investigation by Lessor
         of any hazardous or toxic materials which may be used, stored, or
         disposed of at the Premises by the Sublessee, including fees paid to
         consultants hired to perform such review or investigation.

                  Information to be Furnished. If Lessee desires at any time to
         Sublet the Premises or any portion thereof, it shall first notify
         Lessor of its desire to do so and shall submit in writing to Lessor:
         (i) the name and legal composition of the proposed Sublessee, (ii) the
         nature of the proposed Sublessee's business to be carried on in the
         Premises; (iii) the terms and provisions of the proposed Sublet and a
         copy of the proposed Sublet form containing a description of the
         subject premises; (iv) a statement of all consideration to be paid by
         the Sublessee in connection with the Sublet; (v) a current financial
         statement of Lessee; and (vi) such financial information, including
         financial statements, as Lessor may reasonably request concerning the
         proposed Sublessee.

                  Lessor's Alternatives. At any time within thirty (30) days
         after the Lessor's receipt of the information specified in Paragraph
         21.C., Lessor may, by written notice to Lessee, elect: (i) to consent
         to the Sublet by Lessee; (ii) to refuse its consent to the Sublet, or
         (iii) elect to terminate this Lease, or in the case of a partial
         Sublet, terminate this Lease as to the portion of the Premises proposed
         to be Sublet. If Lessor consents to the Sublet, Lessee may thereafter
         enter into a valid Sublet of the Premises or portion thereof, upon the
         terms and conditions and with the proposed Sublessee set forth in the
         information furnished by Lessee to Lessor pursuant to Paragraph 21.B.,
         subject, however, at Lessor's election, to the condition of any excess
         of the Subrent over the Rent required to be paid by Lessee under this
         Lease shall be split equally between Lessor and Lessee.

                  Proration. If a portion of the Premises is Sublet, the pro
         rata share of the Rent attributable to such partial area of the
         Premises shall be determined by Lessor by dividing the Rent payable by
         Lessee hereunder by the total square footage of the Premises and

                                       17
<PAGE>

         multiplying the resulting quotient (the per square foot rent) by the
         number of square feet of the Premises which are Sublet.

                  Exempt Sublets. Notwithstanding the above, Lessor's prior
         written consent shall not be required for an assignment of this Lease
         to an entity which controls, is controlled by or under common control
         with, Lessee, or an entity into which Lessee merges or consolidates, or
         a entity which purchases all or substantially all of Lessee's assets as
         a combined and going business, provided that (i) Lessee gives Lessor
         prior written notice of the name any such assignee, (ii) at the time of
         such assignment, the assignee has net worth that is equal to or greater
         than the net worth of Lessee immediately prior to such assignment; and
         (iii) the assignee assumes, in writing, for the benefit of Lessor, all
         of Lessee's obligations under the Lease. An assignment or other
         transfer of this Lease to a purchaser of all or substantially all of
         the assets of Lessee shall be deemed a Sublet requiring Lessor's prior
         written consent.

22.      Parking Charges. Lessee agrees to pay upon demand, based on its percent
         of occupancy of the entire Premises, its pro-rata share of any parking
         charges, surcharges, or any other cost hereafter levied or assessed by
         local, state, or federal governmental agencies in connection with the
         use of the parking facilities serving the Premises, including, without
         limitation, parking surcharge imposed by or under the authority of the
         Federal Environmental Protection Agency. Lessor represents that at the
         time of Lease execution, there are no parking charges imposed on the
         Premises.

23.      Insolvency or Bankruptcy. Either (1.) the appointment of a receiver to
         take possession of all or substantially all of the assets of Lessee, or
         (2.) a general assignment by Lessee for the benefit of creditors, or
         (3.) any action taken or suffered by Lessee under any insolvency or
         bankruptcy act shall constitute a breach of this Lease by Lessee. Upon
         the happening of any such event, this Lease shall terminate ten (10)
         days after written notice of termination from Lessor to Lessee. This
         section is to be applied consistent with the applicable state and
         federal law in effect at the time such event occurs.

24.      Lessor Loan or Sale. Lessee agrees promptly following request by Lessor
         to (1.) execute and deliver to Lessor any documents, including estoppel
         certificates presented to Lessee by Lessor, (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 Lessee's knowledge, any uncured
         defaults on the part of Lessor hereunder, and (c.) evidencing the
         status of the Lease as may be required either by a lender making a loan
         to Lessor, to be secured by deed of trust or mortgage covering the
         Premises, or a purchaser of the Premises from Lessor, and (2.) to
         deliver to Lessor the current financial statements of Lessee with an

                                       18
<PAGE>

         opinion of a certified public accountant, including a balance sheet and
         profit and loss statement, for the current fiscal year and the two
         immediately prior fiscal years, all prepared in accordance with
         Generally Accepted Accounting Principles consistently applied. Lessee's
         failure to deliver an estoppel certificate within five (5) business
         days following such request shall constitute a default under this Lease
         and shall be conclusive upon Lessee that this Lease is in full force
         and effect and has not been modified except as may be represented by
         Lessor. If Lessee fails to deliver the estoppel certificates within the
         five (5) business days, Lessee irrevocably constitutes and appoints
         Lessor as its special attorney-in-fact to execute and deliver the
         certificate to any third party.

25.      Surrender of Lease. The voluntary or other surrender of this Lease by
         Lessee, or a mutual cancellation thereof, shall not work a merger nor
         relieve Lessee of any of Lessee's obligations under this Lease, and
         shall, at the option of Lessor, terminate all or any existing Subleases
         or Subtenancies, or may, at the option of Lessor, operate as an
         assignment to him of any or all such Subleases or Subtenancies.

26.      Attorneys' Fees. If, for any reason, any suit be initiated to enforce
         any provision of this Lease, the prevailing party shall be entitled to
         legal costs, expert witness expenses, and reasonable attorneys' fees,
         as fixed by the court.

27.      Notices. All notices to be given to Lessee may be given in writing,
         personally, or by depositing the same in the United States mail,
         postage prepaid, and addressed to Lessee at the said Premises, whether
         or not Lessee has departed from, abandoned, or vacated the Premises.
         Any notice or document required or permitted by this Lease to be given
         Lessor shall be addressed to Lessor at the address set forth below, or
         at such other address as it may have theretofore specified by notice
         delivered in accordance herewith:

                  LESSOR:   Albright Properties
                            900 Welch Road, Suite 10
                            Palo Alto, California  94304
                            Phone  (650) 322-2121
                            Fax  (650) 322-5029

                  LESSEE:   Gary Stickel
                            Vice President, Administration
                            Segue Software, Inc.
                            201 Spring Street
                            Lexington, MASS  02421
                            Phone (781) 402-1035
                            Fax  (781) 402-1091

                                       19
<PAGE>

28.      Transfer of Security. If any security be given by Lessee to secure the
         faithful performance of all or any of the covenants of this Lease on
         the part of Lessee, Lessor may transfer and/or deliver the security, as
         such, to the purchaser of the reversion, in the event that the
         reversion be sold, and thereupon Lessor shall be discharged from any
         further liability in reference thereto, upon the assumption by such
         transferee of lessor's obligations under this Lease.

29.      Waiver. The waiver by Lessor or Lessee of any breach of any term,
         covenant, or condition, herein contained shall not be deemed to be a
         waiver of such term, covenant, or condition, or any subsequent breach
         of the same or any other term, covenant, or condition herein contained.
         The subsequent acceptance of rent hereunder by lessor shall not be
         deemed to be a waiver of any preceding breach by Lessee of any term,
         covenant, or condition of this Lease, other than the failure of Lessee
         to pay the particular rental so accepted, regardless of Lessor's
         knowledge of such preceding breach at the time of acceptance of such
         rent.

30.      Holding Over. Any holding over after the expiration of the term or any
         extension thereof, with the consent of lessor, shall be construed to be
         a tenancy from month-to-month, at a rental of one and one-half (1 1/2)
         times the previous month's rental rate per month, and shall otherwise
         be on the terms and conditions herein specified, so far as applicable.

31.      Covenants, Conditions, and Restrictions. Not applicable.

32.      Limitation on Lessor's Liability. If Lessor is in default of this
         Lease, and, as a consequence, Lessee recovers a money judgment against
         Lessor, the judgment shall be satisfied only out of the proceeds of
         sale received on execution of the judgment and levy against the right,
         title, and interest of Lessor in the Premises, or in the building,
         other improvements, and land of which the Premises are part, and out of
         rent or other income from such real property receivable by Lessor or
         out of the consideration received by Lessor from the sale or other
         disposition of all or any part of Lessor's right, title, and interest
         in the Premises or in the building, other improvements, and land of
         which the Premises are part. Neither Lessor nor any of the partners
         comprising the partnership designated as Lessor shall be personally
         liable for any deficiency.

33.      Signage. Lessee shall have the right to install exterior building
         signage at its sole cost. Said signage shall be approved by Lessor and
         shall comply with all governmental regulations and building standards.
         Lessee shall be responsible for removing all signage at the end of the
         Lease term and shall restore the affected areas to its original
         condition. -

34.      Miscellaneous.

                                       20
<PAGE>

         A.       Time is of the essence of this Lease, and of each and all of
                  its provisions.

         B.       The term "building" shall mean the building in which the
                  Premises are situated.

         C.       If the building is leased to more than one tenant, then each
                  such tenant, its agents, officers, employees, and invitees,
                  shall have the non-exclusive right (in conjunction with the
                  use of the part of the building leased to such tenant) to make
                  reasonable use of any driveways, sidewalks, and parking areas
                  located on the parcel of land on which the building is
                  situated, except such parking areas as may from time to time
                  be leased for exclusive use by other tenant(s).

         D.       Lessee's such reasonable use of parking areas shall not exceed
                  that percent of the total parking areas which is equal to the
                  ratio which floor space of the Premises bears to floor space
                  of the building.

         E.       The term "assign" shall include the term "transfer."

         F.       The invalidity or unenforceability of any provision of this
                  Lease shall not affect the validity or enforceability of the
                  remainder of this Lease.

         G.       All parties hereto have equally participated in the
                  preparation of this Lease.

         H.       The headings and titles to the Paragraphs of this Lease are
                  not a part of this Lease and shall have no effect upon the
                  construction or interpretation of any part thereof.

         I.       Lessor has made no representation(s) whatsoever to Lessee
                  (express or implied) except as may be expressly stated in
                  writing in this Lease instrument.

         J.       This instrument contains all of the agreements and conditions
                  made between the parties hereto, and may not be modified
                  orally or in any other manner than by agreement in writing,
                  signed by all of the parties hereto or their respective
                  successors in interest.

         K.       It is understood and agreed that the remedies herein given to
                  Lessor shall be cumulative, and the exercise of any one remedy
                  by Lessor shall not be to the exclusion of any other remedy.

         L.       The covenants and conditions herein contained shall, subject
                  to the provisions as to assignment, apply to and bind the
                  heirs, successors, executors, and administrators, and assigns
                  of all the parties hereto; and all of the parties hereto shall
                  jointly and severally be liable hereunder.

                                       21
<PAGE>

         M.       This Lease has been negotiated by the parties hereto and the
                  language hereof shall not be construed for or against either
                  party.

         N.       All exhibits to which reference is made are deemed
                  incorporated into this Lease, whether covenants or conditions,
                  on the part of Lessee shall be deemed to be both covenants and
                  conditions.

         O.       Lessee does hereby warrant and represent to Lessor that Lessee
                  has full right, power and authority to execute this instrument
                  and to effect a valid and binding lease as set forth herein;
                  and the signatory below on behalf of Lessee does hereby
                  warrant and represent to Lessor that said signatory has been
                  duly and validly authorized to execute this instrument on
                  behalf of Lessee.

         P.       Lessor does hereby warrant and represent to Lessee that it is
                  the lawful and sole owner of the Premises and that the Lessor
                  has full right, power and authority to execute this instrument
                  and to effect a valid and binding lease as set forth herein;
                  and the signatory below on behalf of Lessor does hereby
                  warrant and represent to Lessee that said signatory has been
                  duly and validly authorized to execute this instrument on
                  behalf of Lessor.

IN WITNESS WHEREOF, Lessor and Lessee have executed this Lease on the date first
above-written.

LESSOR:                                        LESSEE:
ALBRIGHT PROPERTIES                            SEGUE SOFTWARE, INC.

BY:  \s\ Howard J. White                   BY: \s\ Gary L. Stickel
     ---------------------------------         ---------------------------------
     Howard J. White, III                      Vice President, Human Resources &
                                               Administration

DATE:            11/22/99                     DATE: 11/8/99
     ---------------------------------             -----------------

                                       22
<PAGE>

EXHIBIT A

A site plan of the property to be attached.

                                       23

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