Document:

Exhibit 10.10

 

 

 

 

Lease between

Sobrato Interests III and Siebel Systems, Inc.

Building 3 - 2207 Bridgepointe Parkway, San Mateo

 

 

SectionPage #

Parties*

Premises
*
Definitions
*

Description
*

Use
*
Permitted Uses
*

Uses Prohibited
*

Advertisements and
Signs*

Covenants, Conditions and
Restrictions*

Term and Rental
*
Base Monthly Rent
*

Rental Adjustment
*

Late Charges
*

Security Deposit
*

Construction
*
Building Shell Plans
*

Tenant Improvement
Plans*

Tenant Improvement
Pricing*

Change Orders
*

Building Shell Costs
*

Tenant Improvement
Costs*

Construction
*

General Contractor Overhead &
Profit*

Tenant Delays
*

Insurance
*

Punch List &
Warranty*

Other Work by Tenant
*

Acceptance of Possession and
Covenants to Surrender*
Delivery and
Acceptance*

Condition Upon
Surrender*

Failure to Surrender
*

Alterations and
Additions*
Tenant's Alterations
*

Free From Liens
*

Compliance With Governmental
Regulations*

Maintenance of
Premises*
Landlord's Obligations
*

Tenant's Obligations
*

Landlord and Tenant's Obligations
Regarding Reimbursable Operating Costs
*

Reimbursable Operating
Costs*

Tenant's Allocable
Share*

Exclusions to Reimbursable
Operating Costs*

Waiver of Liability*

Tenant's Right to
Audit*

Hazard Insurance
*
Tenant's Use
*

Landlord's Insurance
*

Tenant's Insurance
*

Waiver
*

Taxes
*

Utilities
*

Toxic Waste and Environmental
Damage*
Tenant's
Responsibility*

Tenant's Indemnity Regarding
Hazardous Materials*

Landlord's Indemnity Regarding
Hazardous Materials*

Actual Release by
Tenant*

Environmental
Monitoring*

Tenant's Default
*
Remedies
*

Right to Re-enter
*

Abandonment
*

No Termination
*

Non-Waiver
*

Performance by
Landlord*

Landlord's  Liability
*
Limitation on Landlord's
Liability*

Limitation on Tenant's
Recourse*

Indemnification of
Landlord*

Destruction of
Premises*
Landlord's Obligation to
Restore*

Limitations on Landlord's
Restoration Obligation*

Tenant's Rights with Respect to a
Destruction of the Premises*

Condemnation
*

Assignment or Sublease
*
Consent by Landlord
*

Assignment or Subletting
Consideration*

No Release
*

Reorganization of
Tenant*

Permitted Transfers
*

Effect of Default
*

Effects of Conveyance
*

Successors and Assigns
*

Option to Extend the Lease
Term*
Grant and Exercise of
Option*

Determination of Fair Market
Rental*

Resolution of a Disagreement over
the Fair Market Rental*

Personal to Tenant
*

Option to Extend the Lease
Term*

Right of First Offering to
Purchase*
Grant and Exercise of
Option*

Exclusions
*

General Provisions
*
Attorney's Fees
*

Authority of Parties
*

Brokers
*

Choice of Law
*

Dispute Resolution
*

Entire Agreement
*

Entry by Landlord
*

Estoppel Certificates
*

Exhibits
*

Interest
*

Modifications Required by
Lender*

No Presumption Against
Drafter*

Notices
*

Property Management
*

Rent
*

Representations
*

Rights and Remedies
*

Severability
*

Submission of Lease
*

Subordination
*

Survival of
Indemnities*

Time
*

Transportation Demand Management
Programs*

EXHIBIT A - Premises and Project -
Initial Buildout*

EXHIBIT B - Not
Applicable*

EXHIBIT C - Declaration of
Covenants and Grant of Easements*

EXHIBIT D - Shell Plans and
Specifications*

EXHIBIT E - Building Shell
Definition*

EXHIBIT F - Tenant Improvement
Plans and Specifications*

EXHIBIT G - Subordination,
Nondisturbance and Attornment Agreement*

1.Parties:    THIS LEASE, is entered
into on this 11th day of June, 1999, ("Effective Date") between
SOBRATO INTERESTS III, a California Limited Partnership, whose address is 10600
North De Anza Boulevard, Suite 200, Cupertino, CA  95014-2075 and SIEBEL
SYSTEMS, INC., a Delaware Corporation, whose address is 1855 South Grant Street,
San Mateo, California, CA  94402-2667, hereinafter called respectively Landlord
and Tenant.

2.Premises:    

A.Definitions.    

i.Building. The term
"Building" shall mean that five (5) story steel frame building
containing approximately 167,505 rentable square feet and all Tenant
Improvements installed therein to be constructed by Landlord and leased by
Tenant pursuant to the terms of this Lease in the location labeled as Building 3
on Exhibit "A" and commonly known as 2207 Bridgepointe Parkway.

ii.Building 1. The term "Building
1" shall mean that five (5) story steel frame building containing
approximately 141,496 rentable square feet to be constructed by Landlord and
leased by Tenant pursuant to a separate lease between the Parties dated March
11, 1999 ("Building 1 Lease") in the location labeled as Building 1 on
Exhibit "A" attached hereto and commonly known as 2215
Bridgepointe Parkway

iii.Building 2.    The term
"Building 2" shall mean that five (5) story steel frame building
containing approximately 141,496 rentable square feet to be constructed by
Landlord and leased by Tenant pursuant to a separate lease between the Parties
dated March 11, 1999 ("Building 2 Lease") in the location labeled as
Building 2 on Exhibit "A" and commonly known as 2211
Bridgepointe Parkway.

iv.Common Area.    The term
"Common Area" shall mean that certain real property beneath and
surrounding the Building, Building 1 and Building 2 consisting of an underground
parking garage of approximately 455 parking spaces, on-grade parking lots
consisting of approximately 255 parking spaces, an above grade parking structure
to total approximately 850 parking spaces, and the recreation areas and the
adjacent landscaped site areas as shown on Exhibit "A"..

Landlord shall have the power to allocate to each tenant in
the Project, the number of parking spaces in the podium garage, above-grade
parking structure or other portions of the Project as to which Tenant may have
the use in connection with its Building; provided that (i) such allocation is
requested by at least one (1) tenant in the Project, (ii) Landlord shall not
allocate to Tenant materially less than the Tenant's prorata share of parking
calculated on the basis of the square footage of the buildings in the Project,
and (iii) Landlord shall allocate parking in a manner so as to maximize the
adjacency of parking to each building. Landlord shall further retain the right
to restrict an appropriate amount of the parking for visitors of the Project or
for car pooling (as may be required by a TDM program).  At the request of Tenant
or any other tenant in the Project, Landlord further agrees to restrict up to
ten (10) spaces per building for key employees of Tenant (or of other tenants in
the Project) or for other reasonable uses.  Tenant shall be responsible for
seeing that the total number of vehicles parked in the Project by employees and
invitees of Tenant does not exceed the number of total spaces allocated to the
Building.

v.Project.    The term
"Project" shall be that certain  real property consisting of
approximately 10.8 acres at the corner of Bridgepointe Circle and Bridgepointe
Parkway in San Mateo, California  and all improvements constructed thereon
consisting at full buildout of the Building, Building 2, Building 3 and the
Common Area as shown in Exhibit "B". 

vi.Premises.    The term
"Premises" shall mean the Building and a non-exclusive right to use
the Common Area. Unless expressly provided otherwise, the term Premises as used
herein shall include the Tenant Improvements (defined in Section 5.B)
constructed by Tenant pursuant to Section 5.B.

B.Grant:    Landlord hereby leases the
Premises to Tenant, and Tenant hires the Premises from Landlord. 

C.Recordation of Parcel Map and Declaration:
 Tenant consents to recordation by Landlord of a Parcel Map (Parcel
Map") and a Declaration of Covenants, Conditions and Restrictions
("Declaration").  The Parcel Map and the Declaration shall be
substantially in the form attached hereto as Exhibit "C" with
such changes as may be may be desired by Landlord or Landlord's lenders to
facilitate the operation, construction, financing, sale and/or leasing of the
Project, provided such changes do not materially and adversely affect Tenant's
use of the Premises, and with such changes as may be required by the city or
other governmental authority having jurisdiction over the Project.   Landlord is
seeking approval of the Parcel Map and Declaration to subdivide the existing
parcel into the four lots to facilitate Landlord's operation, construction,
financing, lease and/or sale of the Project as individual buildings.  Landlord's
failure to obtain approval of the Parcel Map or Declaration shall in no way
invalidate this Lease.  In the event the Parcel Map and Declaration are recorded
by Landlord, the Section 2.A.vi shall be replaced by following:  The term
"Premises" shall mean (i) the land area within Lot 3; (ii) the
Building; and (iii) the nonexclusive right to use the Common Area in accordance
with the terms and conditions of the Declaration and this Lease.  This Lease
shall be subject and subordinate in all respects to the Declaration, as the same
may be amended from time to time.  Tenant covenants and agrees to refrain from
doing or causing to be done, or permitting any thing or act to be done, which
would constitute a default under the Declaration or which would or might make
Landlord liable for any damages, claims or penalty. All assessments charged to
the Premises pursuant to the Declaration, (other than those assessments which
represent: the costs required to be paid and borne by Landlord under the express
terms of this Lease (such as Landlord's maintenance costs pursuant to Section
8.A; fines, penalties and costs of suit charged by the Association, to the
extent not caused by Tenant's breach of this Lease or violation of the
Declaration; reimbursements to the Association for diminution of the
Association's insurance proceeds, to the extent not caused by Tenant's violation
of the insurance provisions of the Declaration; and assessments levied against
the Premises because of the nonpayment of assessments levied on other lots
within the Project other than the Premises) shall constitute a part of Tenant's
Allocable Share of Reimbursable Operating Costs pursuant to Article 8 of this
Lease.

Following recordation of the Declaration, if owners and
occupants of Building 1 or Building 2 are violating the terms and conditions of
the Declaration and such violation materially and adversely affects Tenant's
rights under this Lease, then within a reasonable time following Tenant's
request, Landlord shall take reasonable steps to enforce the provisions of the
Declaration relating to such violation, in accordance with the procedures
established in the Declaration, the cost of which shall be a Reimbursable
Operating Cost pursuant to Article 8 of this Lease.

3.Use:    

A.Permitted Uses:    Tenant shall use the
Premises only for the following purposes and shall not change the use of the
Premises without the prior written consent of Landlord:  General office uses
including research and development and other incidental uses (such incidental
uses shall include without limitation, a gymnasium and/or a cafeteria for use of
Tenant's employees). Tenant shall use only the number of parking spaces
allocated to Tenant under this Lease. Following recordation of the Declaration,
if occupants of Building 1 or Building 2 are using parking spaces in excess of
the number of spaces to which they are entitled under the Declaration, then
within a reasonable time following Tenant's request, Landlord shall seek to
enforce the provisions of the Declaration relating to such excessive use, in
accordance with the procedures established in the Declaration, the cost of which
shall be a Reimbursable Operating Cost pursuant to Article 8 of this Lease.
Prior to recording the Declaration, Landlord shall cause the Declarants of the
Declaration to confirm in writing for the benefit of Tenant that the signs and
window coverings to be installed pursuant to Section 3.C of this Lease are
approved by the Declarants. Landlord shall promptly send to Tenant all notices
received from the Association pertaining to the Association's entry onto the
Premises and Common Area, insurance coverage affecting the Premises, and
assessments levied against the Premises.  All commercial trucks and delivery
vehicles shall be (i) loaded and unloaded in a manner which does not interfere
with the businesses of other occupants of the Project, and (ii) permitted to
remain on the Project only so long as is reasonably necessary to complete the
loading and unloading.  Landlord makes no representation or warranty that any
specific use of the Premises desired by Tenant is permitted pursuant to any
Laws.

B.Uses Prohibited:    Tenant shall not commit
or suffer to be committed on the Premises any waste, nuisance, or other act or
thing which may disturb the quiet enjoyment of any other tenant in or around the
Premises, nor allow any sale by auction or any other use of the Premises for an
unlawful purpose. Tenant shall not (i) damage or overload the electrical,
mechanical or plumbing systems of the Premises, (ii) attach, hang or suspend
anything from the ceiling, walls or columns of the building or set any load on
the floor in excess of the load limits for which such items are designed, or
(iii) generate dust, fumes or waste products which create a fire or health
hazard or damage the Premises or in the soils surrounding the Building.  No
materials, supplies, equipment, finished products or semi-finished products, raw
materials or articles of any nature, or any waste materials, refuse, scrap or
debris, shall be stored upon or permitted to remain on any portion of the
Premises outside of the Building without Landlord's prior approval, which
approval may be withheld in its sole discretion.  

C.Advertisements and Signs:    Tenant shall be
permitted to place two (2) signs mounted on the building, one monument sign
within the Common Area, and any directional signs necessary within the Common
Area, provided such signs are approved by the city or other governing authority.
Tenant shall be entitled to additional signage on Building 1 and Building 2
pursuant to the leases for these buildings.  Any sign placed on the Premises
shall be removed by Tenant, at its sole cost, prior to the Expiration Date or
promptly following the earlier termination of the lease, and Tenant shall
repair, at its sole cost, any damage or injury to the Premises caused thereby,
and if not so removed, then Landlord may have same so removed at Tenant's
expense.

D.Covenants, Conditions and Restrictions: 
This Lease is subject to the effect of (i) easements, mortgages or deeds of
trust, ground leases, rights of way of record and any other matters or documents
of record; and (ii) any zoning laws of the city, county and state where the
Building is situated (collectively referred to herein as
"Restrictions") and Tenant will conform to and will not violate the
terms of any such Restrictions.  

Tenant acknowledges that as to certain matters set forth
in this Lease, the Association (defined in the Declaration) has or will have
rights of approval or disapproval. If any matter requiring the Association's
approval is submitted to Landlord by Tenant for Landlord's approval, Landlord
shall respond to Tenant in a timely fashion.  If Landlord approves such matter
and such matter further requires the Association's approval, Landlord shall
promptly submit the same to  the Association, as applicable.  In no event,
however, shall Landlord's disapproval be deemed unreasonable if the Association
has disapproved of such matter nor shall Landlord have any liability to Tenant
by reason thereof.

4.Term and Rental:    

A.Base Monthly Rent:    The term ("Lease
Term") shall be for one hundred forty four (144) months, commencing on
substantial completion of construction as finally determined pursuant to Section
5.G (the "Commencement Date") estimated to occur on November 1, 2000,
and ending one hundred forty four (144) months thereafter, ("Expiration
Date"). Notwithstanding the foregoing, (i) in no event shall the
Commencement Date be less than forty five (45) days following the Commencement
Date for Building 1; and (ii) in the event Sobrato Construction acts as general
contractor for the Tenant Improvements, should substantial completion of the
Premises occur between November 2, 2000 and December 31, 2000, the Commencement
Date of the Lease shall be deemed to be January 1, 2001. Notwithstanding the
fact that the Lease Term begins on the Commencement Date, this Lease and all of
the obligations of Landlord and Tenant shall be binding and in full force and
effect from and after the Effective Date except for those obligations which
begin on the Commencement Date.  In addition to all other sums payable by Tenant
under this Lease, Tenant shall pay as base monthly rent ("Base Monthly
Rent") for the Premises the amount of Three Hundred Seventy Eight Thousand
Eight Hundred Ninety Six Dollars ($378,896.00).  Base Monthly Rent and Tenant's
payment of operating expenses and taxes pursuant to Section 8 shall be payable
beginning on the Commencement Date in advance on or before the first day of each
calendar month during the Lease Term.  All sums payable by Tenant under this
Lease shall be paid to Landlord in lawful money of the United States of America,
without offset or deduction and without prior notice or demand, at the address
specified in Section 1 of this Lease or at such place or places as may be
designated in writing by Landlord during the Lease Term.  Base Monthly Rent for
any period less than a calendar month shall be a pro rata portion of the monthly
installment.

B.Rental Adjustment:  

(i)For Variation in Rentable Square Feet:
Upon Substantial Completion of construction, the Building shall be measured
(from outside wall to outside wall including all areas covered by a structural
roof), and if the actual square footage differs from 167,505 square feet, the
initial Base Monthly Rent hereunder shall be adjusted to the product of Two and
262/1000 Dollars ($2.262) and the actual rentable square feet of the Building.

(ii)Periodic Adjustment:    Beginning
thirty (30) months after the Commencement Date for Building 1, and every thirty
(30) months thereafter, the then-payable Base Monthly Rent shall be increased by
seven and 50/100 percent (7.50%).

C.Late Charges:    Tenant hereby acknowledges
that late payment by Tenant to Landlord of Base Monthly Rent and other sums due
hereunder will cause Landlord to incur costs not contemplated by this Lease, the
exact amount of which is extremely difficult to ascertain.  Such costs include
but are not limited to:  administrative, processing, accounting, and late
charges which may be imposed on Landlord by the terms of any contract, revolving
credit, mortgage, or trust deed covering the Premises.  Accordingly, if any
installment of Base Monthly Rent or other sum due from Tenant shall not be
received by Landlord or its designee within ten (10) days after the rent is due,
Tenant shall pay to Landlord a late charge equal to five (5%) percent of such
overdue amount, which late charge shall be due and payable on the same date that
the overdue amount was due. The parties agree that such late charge represents a
fair and reasonable estimate of the costs Landlord will incur by reason of late
payment by Tenant, excluding interest and attorneys fees and costs.  If any rent
or other sum due from Tenant remains delinquent for a period in excess of thirty
(30) days then, in addition to such late charge, Tenant shall pay to Landlord
interest on any rent that is not paid when due at the Agreed Interest Rate
specified in Section 21.J following the date such amount became due until
paid.  Acceptance by Landlord of such late charge shall not constitute a waiver
of Tenant's default with respect to such overdue amount nor prevent Landlord
from exercising any of the other rights and remedies granted hereunder.  In the
event that a late charge is payable hereunder, whether or not collected, for
three (3) consecutive installments of Base Monthly Rent, then the Base Monthly
Rent shall automatically become due and payable quarterly in advance, rather
than monthly, notwithstanding any provision of this Lease to the contrary.
After four (4) quarterly installments have been paid on time, rent shall again
be payable monthly.  

D.Security Deposit:    

(i)Amount: Tenant shall deposit with
Landlord a letter of credit ("Letter of Credit") in a form reasonably
acceptable to Landlord in the amount of Eight Million Four Hundred Thousand
Dollars ($8,400,000.00) to secure Tenant's obligation to complete Tenant
Improvements in the Building pursuant to this Lease.  Upon Landlord's receipt of
evidence reasonably satisfactory to Landlord of lien free completion of the
Tenant Improvements and that Tenant has fully paid for the cost of all of Tenant
Improvements for the Building, the Letter of Credit shall be cancelled and
returned to Tenant by Landlord.  Notwithstanding the foregoing, in the event
Tenant elects to defer construction on a portion of the non-core Tenant
Improvements in the Building (as provided further and restricted in Section
5.B), Landlord shall not require Tenant to continue to post the Letter of Credit
after payment in full for all other Tenant Improvements associated with the
Building.

(ii)   Use by Landlord:     Landlord shall
be entitled to draw against the full amount of the Letter of Credit at any time
provided only that Landlord certifies to the issuer of the Letter of Credit that
Tenant has failed to make a payment for Tenant Improvement costs as provided in
5.F, that Tenant has failed to timely renew or extend the Letter of Credit as
required by this subsection (ii), or that Tenant has failed to amend the Letter
of Credit or obtain a new Letter of Credit as required by this subsection (ii)
and such failure has not been cured within ten (10) days following Landlord's
notice to Tenant.  Tenant shall keep the Letter of Credit in effect at all times
prior to payment in full for the Tenant Improvements for the Building.  At least
sixty (60) days prior to expiration of any Letter of Credit, the term thereof
shall be renewed or extended for a period until Tenant has paid in full for the
Tenant Improvements for the Building.  Subject to the notice requirement and
cure period provided herein, Tenant's failure to so renew or extend the Letter
of Credit shall be a material default of this Lease by Tenant entitling Landlord
to draw down on the entire amount of the Letter of Credit.  Any amounts drawn on
the Letter of Credit shall be used to pay for the cost of the Tenant
Improvements.  In the event the Letter of Credit is drawn by Landlord, and the
proceeds used to pay for the completion of the Tenant Improvements in the
Building, after Landlord's completion of the Tenant Improvements in the
Building, Landlord shall refund to Tenant any excess proceeds from the Letter of
Credit.  In the event of termination of Landlord's interest in this Lease,
Landlord may deliver the Letter of Credit to Landlord's successor in interest in
the Premises and thereupon be relieved of further responsibility with respect to
the Letter of Credit.  Except as provided herein, no other security deposit
shall be required by Tenant.

(iii)  Letter of Credit Fee:  Landlord and
Tenant agree to share equally in the fee charged to provide the Letter of
Credit.  In no event, however, shall Landlord's share of the fee exceed the sum
of Forty Two Thousand Dollars ($42,000.00) per annum.  

5.Construction :

A.Building Shell Plans: The Building Shell shall
be constructed in accordance with the Building Shell plans and guideline
specifications prepared by Korth Sunseri Hagey ("Shell Architect").
The design development drawings for the Building Shell are attached hereto as
Exhibit "D" ("Preliminary Shell Plans and
Specifications").  The Shell Permit Drawings (i) shall be consistent with
the Preliminary Shell Plans in all material respects, and (ii) shall provide for
materials to be of a quality consistent with a "Class A" office
project the where materials are not currently specified in the Preliminary Shell
Plans.  Landlord's affiliated construction company, Sobrato Construction
Corporation shall act as the general contractor on the Building Shell and shall
contract for the installation of the pile foundation system and shall begin this
work immediately following the Effective Date.  Upon completion of the Tenant
Improvement Plans, Landlord and Tenant shall select a general contractor
("General Contractor") on the basis of a competitive bid of the cost
to construct the Tenant Improvements. Landlord and Sobrato Construction shall
use commercially reasonable efforts to ensure effective coordination between the
General Contractor selected to construct the Tenant Improvements and Sobrato
Construction Corporation. Landlord shall cause Sobrato Construction and the
General Contractor to complete construction of the Building Shell and the Tenant
Improvements.  The Building Shell shall include those items set forth in the
attached Exhibit "E" ("Building Shell Definition")
which scope includes the cost of the parking structures.  In the event of a
conflict between Exhibit "D" and Exhibit "E",
Exhibit "E" shall govern.

B.Tenant Improvement Plans:    Tenant, at
Tenant's sole cost and expense, will hire an interior architect ("Interior
Architect") to prepare plans and outline specifications to be attached as
Exhibit "F" ("Tenant Improvement Plans and
Specifications") with respect to the construction of improvements to the
interior premises ("Tenant Improvements").  The Tenant Improvement
Plans and Specifications plans shall be completed for all aspects of the work by
January 1, 2000, with all detail necessary for submittal to the city and for
construction and shall include any information required by the relevant agencies
regarding Tenant's use of Hazardous Materials if applicable.  The Tenant
Improvements shall consist of all items not included within the scope of the
Building Shell Definition. All Tenant Improvements affecting or otherwise
related to the Building Core will be subject to Landlord's reasonable approval.
The "Building Core" shall include those items typically associated in
the industry with an office building core including elevators, restrooms, fire
sprinklers, HVAC and electrical systems distributed to each floor, exiting stair
finishes and a finished building lobby.  As to the balance of the Tenant
Improvements, Landlord shall not have rights of approval, however, Tenant
Improvement Plans shall provide for the creation of finished office space ready
for occupancy with a minimum buildout in all areas of the Premises consisting
of: (i) fire sprinklers, (ii) floorcoverings, (iii) overhead ceiling system (iv)
distribution of the HVAC system, (v) overhead florescent lighting, and (vi) any
other work required by the City of San Mateo necessary to obtain a Certificate
of Occupancy.  Tenant shall have the right to defer installation of the Tenant
Improvements not associated with the Building Core in up to twenty percent (20%)
of the rentable square footage of the Building.  Except as provided in the
preceding sentence, Tenant shall have no rights or ability to delay installation
of any of the Tenant Improvements.  The Tenant Improvement Plans and
Specifications shall be prepared in sufficient detail to allow General
Contractor to construct the Tenant Improvements.  The General Contractor shall
construct the Tenant Improvements in accordance with all Tenant Improvement
Plans and Specifications. The Tenant Improvements shall not be removed or
altered by Tenant without the prior written consent of Landlord as provided in
Section 7.  Tenant shall have the right to depreciate and claim and collect any
investment tax credits in the Tenant Improvements during the Lease Term.  Tenant
shall further retain the right to encumber its leasehold interest with a first
priority security interest, provided such lienholder has no right to remove any
Tenant Improvements installed by Tenant pursuant to this Lease in the event of a
default by Tenant under such encumbrance.  Upon expiration of the Lease Term or
any earlier termination of the Lease, the Tenant Improvements shall become the
property of Landlord and shall remain upon and be surrendered with the Premises,
and title thereto shall automatically vest in Landlord without any payment
therefore.

C.Tenant Improvement Pricing. Within ten (10)
days after completion of the Tenant Improvements Plans and Specifications,
Landlord shall cause the General Contractor to submit to Tenant competitive bids
from at least three (3) subcontractors for each aspect of the work in excess of
Fifty Thousand and No/100 Dollars ($50,000.00) related to the Tenant
Improvements.  Landlord shall cause the General Contractor to utilize the low
bid in each case unless Tenant approves General Contractor's use of another
subcontractor, and the cost of the Tenant Improvements shall be based upon
construction expenses equal to (i) the bid amounts as approved by Tenant, (ii) a
reasonable contingency approved by Tenant to protect the General Contractor
against cost overruns, and (iii) the general contractor fee specified in Section
5.H below ("Tenant Improvement Budget").  Upon Tenant's written
approval of the Tenant Improvement Budget, which approval shall not be
unreasonably withheld or delayed, Landlord and Tenant shall be deemed to have
given their respective approvals of the final Tenant Improvement Plans and
Specifications on which the cost estimate was made, and General Contractor shall
proceed with the construction of the Tenant Improvements in accordance with the
terms of Section 5.G below.  If Tenant does not specifically approve or
disapprove the bids within ten (10) business days, Tenant shall be deemed to
have approved the bids.

D.Change Orders:   Tenant shall have the right
to order changes in the manner and type of construction of the Tenant
Improvements. Upon request and prior to Tenant's submitting any binding change
order, Landlord shall cause the General Contractor to promptly provide Tenant
with written statements of the cost to implement and the time delay and
increased construction costs associated with any proposed change order, which
statements shall be binding on General Contractor.  If no time delay or
increased construction cost amount is noted on the written statement, the
parties agree that there shall be no adjustment to the construction cost or the
Commencement Date associated with such change order.  If ordered by Tenant,
Landlord shall cause the General Contractor to implement such change order and
the cost of constructing the Tenant Improvements shall be increased or decreased
in accordance with the cost statement previously delivered by General Contractor
to Tenant for any such change order.  In no event, however, shall Tenant have
the right to eliminate the minimum buildout requirements specified in Section
5.B above.

E. Building Shell Costs:   Landlord shall pay
all costs associated with the Building Shell.

F. Tenant Improvement Costs:     Tenant shall
pay all costs associated with the Tenant Improvements.  The cost of Tenant
Improvements shall consist of only the following to the extent actually incurred
by General Contractor in connection with the construction of Tenant
Improvements:  construction costs, all permit fees, construction taxes or other
costs imposed by governmental authorities related to the Tenant Improvements,
and General Contractor overhead and profit as described in Section 5.H below.
During the course of construction of Tenant Improvements, Landlord may deliver
to Tenant not more than once each calendar month a written request for payment
prepared by the General Contractor ("Progress Invoice") which shall
include and be accompanied by General Contractor's certified statements setting
forth the amount requested, certifying the percentage of completion of each item
for which reimbursement is requested, and if requested by Tenant, a certificate
from Landlord's Architect certifying the percentage completion.  Tenant shall
pay the amount due pursuant to the Progress Invoice less a ten percent (10%)
retention directly to the General Contractor, within thirty (30) days after
Tenant's receipt of the above items. All costs for Tenant Improvements shall be
fully documented to and verified by Tenant.

G. Construction:    The Building Shell and
Tenant Improvements shall be deemed substantially complete ("Substantially
Complete" or "Substantial Completion") when the Building Shell
and Tenant Improvements have been substantially completed in accordance with the
Shell Plans and Specifications and Tenant Improvement Plans and Specifications,
as evidenced by the completion of a final inspection or the issuance of a
certificate of occupancy or its equivalent by the appropriate governmental
authority for the Building Shell and Tenant Improvements, and the issuance of a
certificate by the Architect certifying that the Building Shell and Tenant
Improvements have been completed in accordance with the plans.  Installation of
(i) Tenant's data and phone cabling, (ii) Tenant's furniture, or (iii) the
exterior landscaping shall not be required in order to deem the Premises
Substantially Complete.  Any prevention, delay or stoppage due to strikes,
lockouts, inclement weather unusual for the season it which it occurs, labor
disputes, inability to obtain labor, materials, fuel or reasonable substitutes
therefor, governmental restrictions, regulations, controls, civil commotion,
fire or other act of God, and another causes beyond the reasonable control of
Landlord (except financial inability) shall extend the dates contained in this
Section 5.G by a period equal to the period of any said prevention, delay or
stoppage.  

If Landlord cannot obtain building permits or
Substantially Complete construction by the dates set forth herein, this Lease
shall not be void or voidable nor shall Landlord be liable for any loss or
damage resulting therefrom.  Notwithstanding anything to the contrary contained
herein, if Landlord has not delivered the Premises substantially completed to
Tenant on or before November, 1, 2001 ("Termination Date"), Tenant
shall have the right to cancel this Lease by providing Landlord written notice
within sixty (60) days following the Termination Date as Tenant's sole and
exclusive remedy for such failure.  In such event, Landlord shall return the
Letter of Credit to Tenant and thereafter neither party shall have any further
liability to the other under this Lease.

H. General Contractor Overhead & Profit:
As compensation to General Contractor for its services related to
construction of the Building Shell and Tenant Improvements, General Contractor
shall receive a fee based upon the cost of construction determined and agreed
upon by Landlord and Tenant at the time of the competitive bid of the Tenant
Improvements.  Except as provided therein, Landlord or General Contractor shall
not receive any other fee or payment from Tenant in connection with General
Contractor's services.

I.Tenant Delays:    A "Tenant Delay"
shall mean any delay in Substantial Completion of the Building as a result of
any of the following: (i) Tenant's failure to complete or approve the Tenant
Improvement Plans by the dates set forth in Section 5.B, (ii) Tenant's failure
to approve the bids for construction by the dates set forth in Section 5.C,
(iii) changes to the plans requested by Tenant which delay the progress of the
work, (iv) Tenant's request for materials components, or finishes which are not
available in a commercially reasonable time given the anticipated Commencement
Date, (v) Tenant's failure to make a progress payment for Tenant Improvements as
provided in Section 5.F after notice from Landlord and expiration of the
applicable cure period, (vi) Tenant's request for more than one (1) rebidding of
the cost of all or a portion of the work, and (vii) any errors or omissions in
the Tenant Improvement Plans provided by Tenant's architect unless caused by
misinformation provided by Landlord, Landlord's Architect or the General
Contractor.  Notwithstanding anything to the contrary set forth in this Lease,
and regardless of the actual date the Premises are Substantially Complete, the
Commencement Date shall be deemed to be the date the Commencement Date would
have occurred if no Tenant Delay had occurred as reasonable determined by
Landlord.  In addition, if a Tenant Delay results in an increase in the cost of
the labor or materials, Tenant shall pay the cost of such increases.  

J. Insurance:     Sobrato Construction
Corporation and General Contractor shall each procure (as a cost of the Building
Shell or the Tenant Improvements as applicable) a "Broad Form"
liability insurance policies in the amount of Three Million Dollars
($3,000,000.00).  Landlord shall also procure (as a cost of the Building Shell)
builder's risk insurance for the full replacement cost of the Building Shell and
Tenant Improvements while the Building and Tenant Improvements are under
construction, up until the date that the fire insurance policy described in
Section 9 is in full force and effect.

K. Punch List & Warranty:   After the
Building Shell and Tenant Improvements are Substantially Complete, Landlord
shall cause Sobrato Construction Corporation and/or the General Contractor to
immediately correct any construction defect or other "punch list" item
which Tenant brings to Landlord's attention.  All such work shall be performed
so as to reasonably minimize the interruption to Tenant and its activities on
the Premises. Sobrato Construction Corporation shall provide a standard
contractor's warranty with respect to the Building Shell for one (1) year from
the Commencement Date. The General Contractor shall provide a standard
contractor's warranty with respect to the Tenant Improvements for one (1) year
from the Commencement Date.  Such warranties shall exclude routine maintenance,
damage caused by Tenant's negligence or misuse, and acts of God. Notwithstanding
anything to the contrary in this Lease, Landlord warrants that on the
commencement of the term hereof, (i) the Premises shall comply with all laws,
codes, ordinances and other governmental requirements then applicable to the
Building Shell and the Common Area, (ii) all components of the Building Shell
shall be in good working order, condition, and repair, and (iii) the Premises,
the Project, and the land and groundwater thereunder, shall be free of
contamination by any Hazardous Materials then regulated by any applicable local,
state, or federal law not caused by Tenant.  In the event of any breach of any
of the foregoing warranties, Landlord shall promptly rectify the same at its
sole cost and expense and shall indemnify, defend, and hold Tenant harmless from
and against any damages, liability, suits, losses, claims, actions, costs or
expenses (including attorneys' and consultants' fees and costs) suffered by
Tenant in connection with any such breach.

L.   Other Work by Tenant:   All work not
described in the Shell Plans and Specifications or Tenant Improvement Plans and
Specifications, such as furniture, telephone equipment, telephone wiring and
office equipment work, shall be furnished and installed by Tenant at Tenant's
cost.  Prior to Substantial Completion, Tenant shall be obligated to (i) provide
active phone lines to any elevators, and (ii) contract with a firm to monitor
the fire system.  When the construction of the Tenant Improvements has proceeded
to the point where Tenant's work of installing its fixtures and equipment in the
Premises can be commenced, General Contractor shall notify Tenant and shall
permit Tenant and its authorized representatives and contractors access to the
Premises before the Commencement Date for the purpose of installing Tenant's
trade fixtures and equipment.  

6.Acceptance of Possession and Covenants to
Surrender:    

A.Delivery and Acceptance:    On the
Commencement Date, Landlord shall deliver and Tenant shall accept possession of
the Premises and enter into occupancy of the Premises on the Commencement Date.
Except as otherwise specifically provided herein, Tenant agrees to accept
possession of the Premises in its then existing condition, subject to all
Restrictions and without representation or warranty by Landlord except as
provided in Section 5.K above.  Tenant's taking possession of any part of the
Premises shall be deemed to be an acceptance of any work of improvement done by
Landlord in such part as complete and in accordance with the terms of this Lease
except for (i) "Punch List" type items of which Tenant has given
Landlord written notice prior to the time Tenant takes possession, and (ii)
Landlord's warranties provided in Section 5.K above.  Within thirty (30) days
after the Commencement Date, Tenant agrees to occupy at least a one (1) floor of
the Premises.

B.Condition Upon Surrender:    Tenant further
agrees on the Expiration Date or on the sooner termination of this Lease, to
surrender the Premises to Landlord in good condition and repair, normal wear and
tear excepted.  In this regard, "normal wear and tear" shall be
construed to mean wear and tear caused to the Premises by the natural aging
process which occurs in spite of prudent application of the commercially
reasonable standards for maintenance, repair replacement, and janitorial
practices, and does not include items of neglected or deferred maintenance.  In
any event, Tenant shall cause the following to be done prior to the Expiration
Date or sooner termination of this Lease: (i) all interior walls shall be free
of holes and gouges, (ii) all tiled floors shall be cleaned and waxed, (iii) all
carpets shall be cleaned and shampooed, (iv) all broken, marred, stained or
nonconforming acoustical ceiling tiles shall be replaced, (v) all cabling placed
above the ceiling by Tenant or Tenant's contractors shall be removed, (vi) all
windows shall be washed; (vii) the HVAC system shall be serviced by a reputable
and licensed service firm and left in "good operating condition and
repair" as so certified by such firm, (viii) the plumbing and electrical
systems and lighting shall be placed in good order and repair (including
replacement of any burned out, discolored or broken light bulbs, ballasts, or
lenses. On or before the Expiration Date or sooner termination of this Lease,
Tenant shall remove all its personal property and trade fixtures from the
Premises.  All property and fixtures not so removed shall be deemed as abandoned
by Tenant.  Tenant shall ascertain from Landlord within ninety (90) days before
the Expiration Date whether Landlord desires to have the Premises or any parts
thereof restored to their condition as of the Commencement Date, or to cause
Tenant to surrender all Alterations (as defined in Section 7) in place to
Landlord.  If Landlord shall so desire, and provided that at the time Landlord
gave its consent to their installation, Landlord also notified Tenant that such
removal would be required, Tenant shall, at Tenant's sole cost and expense,
remove such Alterations as Landlord requires and shall repair and restore said
Premises or such parts thereof before the Expiration Date. Such repair and
restoration shall include causing the Premises to be brought into compliance
with all applicable building codes and laws in effect at the time of the removal
to the extent such compliance is necessitated by the repair and restoration
work.  In no event, however, shall Tenant be required to remove any portion of
the initial Tenant Improvements installed in accordance with the terms of this
Lease. 

C.Failure to Surrender:    If the Premises are
not surrendered at the Expiration Date or sooner termination of this Lease,
Tenant shall be deemed in a holdover tenancy pursuant to this Section 6.C and
Tenant shall indemnify, defend, and hold Landlord harmless against loss or
liability resulting from delay by Tenant in so surrendering the Premises
including, without limitation, any claims made by any succeeding tenant founded
on such delay and costs incurred by Landlord in returning the Premises to the
required condition, plus interest at the Agreed Interest Rate. Any
holding over after the termination or Expiration Date with Landlord's express
written consent, shall be construed as month-to-month tenancy, terminable on
thirty (30) days written notice from either party, and Tenant shall pay as Base
Monthly Rent to Landlord a rate equal to one hundred twenty five percent (125%)
of the Base Monthly Rent due in the month preceding the termination or
Expiration Date, plus all other amounts payable by Tenant under this Lease.  Any
holding over shall otherwise be on the terms and conditions herein specified,
except those provisions relating to the Lease Term and any options to extend or
renew, which provisions shall be of no further force and effect following the
expiration of the applicable exercise period.  If Tenant remains in possession
of the Premises after expiration or earlier termination of this Lease without
Landlord's consent, Tenant's continued possession shall be on the basis of a
tenancy at sufferance and Tenant shall pay as rent during the holdover period an
amount equal to one hundred fifty percent (150%) of the Base Monthly Rent due in
the month preceding the termination or Expiration Date, plus all other amounts
payable by Tenant under this Lease.  This provision shall survive the
termination or expiration of the Lease.

7.Alterations and Additions:     

A.Tenant's Alterations:    Tenant shall not
make, or suffer to be made, any alteration or addition to the Premises
("Alterations"), or any part thereof, without obtaining Landlord's
prior written consent and delivering to Landlord the proposed architectural and
structural plans for all such Alterations at least fifteen (15) days prior to
the start of construction. If such Alterations affect the structure of the
Building, Tenant additionally agrees to reimburse Landlord its reasonable out-
of-pocket costs incurred in reviewing Tenant's plans. Notwithstanding anything
to the contrary contained in this lease, Tenant shall be entitled to construct
Alterations which cost Tenant less than One Hundred Thousand Dollars
($100,000.00) in the aggregate each year, without obtaining Landlord's consent,
provided such Alterations do not affect the exterior of the Premises or
adversely affect the structural integrity or life safety systems of the
Premises.  Tenant shall not proceed to make such Alterations until Tenant has
obtained all required governmental approvals and permits, and provides Landlord
reasonable security, in form reasonably approved by Landlord, to protect
Landlord against mechanics' lien claims.  Tenant agrees to provide Landlord (i)
written notice of the anticipated and actual start-date of the work, (ii) a
complete set of half-size (15" X 21") vellum as-built drawings, and
(iii) a certificate of occupancy for the work upon completion of the Alterations
if required by applicable law.  All Alterations shall be constructed in
compliance with all applicable building codes and laws including, without
limitation, the Americans with Disabilities Act of 1990.  Upon the Expiration
Date, all Alterations, except movable furniture and trade fixtures, shall become
a part of the realty and belong to Landlord but shall nevertheless be subject to
removal by Tenant as provided in Section 6 above.  Alterations which are not
deemed as trade fixtures include heating, lighting, electrical systems, air
conditioning, walls, carpeting, or any other installation which has become an
integral part of the Premises.  All Alterations shall be maintained, replaced or
repaired by Tenant at its sole cost and expense.

B.Free From Liens:    Tenant shall keep the
Premises free from all liens arising out of work performed, materials furnished,
or obligations incurred by Tenant or claimed to have been performed for Tenant.
In the event Tenant fails to discharge any such lien within fifteen (15) days
after receiving notice of the filing, Landlord shall be entitled to discharge
the lien at Tenant's expense and all resulting reasonable costs incurred by
Landlord, including reasonable attorney's fees shall be due from Tenant as
additional rent.

C.Compliance With Governmental Regulations:
The term Laws or Governmental Regulations shall include all federal, state,
county, city or governmental agency laws, statutes, ordinances, standards,
rules, requirements, or orders now in force or hereafter enacted, promulgated,
or issued.  The term also includes government measures regulating or enforcing
public access, traffic mitigation, occupational, health, or safety standards for
employers, employees, landlords, or tenants. Tenant, at Tenant's sole expense
shall make all repairs, replacements, alterations, or improvements needed to
comply with all Governmental Regulations except as otherwise expressly provided
in this Lease.  The judgment of any court of competent jurisdiction or the
admission of Tenant in any action or proceeding against Tenant (whether Landlord
be a party thereto or not) that Tenant has violated any such law, regulation or
other requirement in its use of the Premises shall be conclusive of that fact as
between Landlord and Tenant.

 

8.Maintenance of Premises:

A.Landlord's Obligations:    Landlord at its
sole cost and expense, shall maintain in good condition, order, and repair, and
replace as and when necessary, the foundation, exterior load bearing walls glass
curtainwall, and roof structure of the Building Shell. Landlord further agrees
to perform repairs and  replacements to the Common Area to maintain the Common
Area in good condition, order and repair (subject to Tenant's reimbursement
obligation). Tenant acknowledges and agrees that the Association formed pursuant
to the Declaration may perform the maintenance, repair and restoration
obligations of Landlord under this Section 8.A and other sections of this Lease
on behalf of Landlord and other owners of any portion of the Project, in
discharge of Landlord's maintenance, repair and restoration obligations under
this Lease.  As to increases in annual assessments or the imposition of a
special assessment under the Declaration which would require the vote of the
Owners (as defined in the Declaration), Landlord agrees to vote in favor or such
assessments to the extent Landlord reasonably determines such sums are required
to maintain the Premises in the condition required by this Lease.
Notwithstanding the foregoing, in the event that Tenant leases from Landlord all
of the space then developed within the Project, Tenant shall have the right to
perform the repairs, replacements and maintenance of the Common Area and pay
such costs directly.

B.Tenant's Obligations:    Subject to Sections
15 and 16, Tenant shall clean, maintain, repair and replace when necessary the
Building and every part thereof through regular inspections and servicing,
including but not limited to: (i) all plumbing and sewage facilities, (ii) all
heating ventilating and air conditioning facilities and equipment, (iii) all
fixtures, interior walls floors, carpets and ceilings, (iv) all electrical
facilities and equipment, (v) all automatic fire extinguisher equipment, (vi)
all elevator equipment, and (vii) the roof membrane system.   All wall surfaces
and floor tile are to be maintained in an as good a condition as when Tenant
took possession free of holes, gouges, or defacements.   With respect to items
(ii), (vi) and (vii) above, Tenant shall provide Landlord a copy of a service
contract between Tenant and a licensed service contractor providing for periodic
maintenance of all such systems or equipment in conformance with the
manufacturer's recommendations.  Tenant shall provide Landlord upon request, a
copy of such preventive maintenance contracts and paid invoices for the
recommended work if requested by Landlord.

C.Landlord and Tenant's Obligations Regarding
Reimbursable Operating Costs:    Notwithstanding the provisions of Sections
8, 9, 10 and 11 of this Lease, Tenant agrees to reimburse Landlord for Tenant's
Allocable Share (as defined in Section 8.E below) of the expenses resulting from
Landlord's payment of Reimbursable Operating Costs (as defined in Section 8.D
below) in connection with the Premises or in connection with the Project which
are not otherwise Landlord's obligation hereunder. Tenant agrees to pay its
Allocable Share of the Reimbursable Operating Costs as additional rental within
ten (10) business days of written invoice from Landlord.

D.Reimbursable Operating Costs:    For
purposes of calculating Tenant's Allocable Share of Building and Project Costs,
the term "Reimbursable Operating Costs" is defined as all reasonable
costs and expenses of the nature hereinafter described which are incurred by
Landlord in connection with ownership and operation of the Building or the
Project in which the Premises are located.  All costs and expenses shall be
determined in accordance with generally accepted accounting principles which
shall be consistently applied, including but not limited to the following:  (i)
common area utilities, including water, power, telephone, heating, lighting, air
conditioning, ventilating, and Building utilities to the extent not separately
metered; (ii) common area maintenance and service agreements for the Building
and/or Project and the equipment therein, including without limitation, common
area janitorial services, alarm and security services, exterior window cleaning,
and maintenance of the sidewalks, landscaping, waterscape, roof membrane,
parking garages and parking areas, driveways, service areas, mechanical rooms,
elevators, and the building exterior; (iii) insurance premiums and costs,
including without limitation, the premiums and cost of fire, casualty and
liability coverage and rental abatement and earthquake (if available at
commercially reasonable rates) insurance applicable to the Building or Project;
(iv) repairs, replacements and general maintenance (excluding repairs and
general maintenance paid by proceeds of insurance or by Tenant or other third
parties, and repairs or alterations attributable solely to tenants of the
Building or Project other than Tenant); and (v) all real estate taxes and
assessment installments or other impositions or charges which may be levied on
the Building or Project, upon the occupancy of the Building or Project and
including any substitute or additional charges which may be imposed during, or
applicable to the Lease Term including real estate tax increases due to a sale,
transfer or other change of ownership of the Building or Project, as such taxes
are levied or appear on the City and County tax bills and assessment rolls.
Landlord shall have no obligation to provide guard services or other security
measures for the benefit of the Project.  Tenant assumes all responsibility for
the protection of Tenant and Tenant's Agents from acts of third parties;
provided, however, that nothing contained herein shall prevent Landlord, at its
sole option, from providing security measures for the Project.  This is a
"Net" Lease, meaning that Base Monthly Rent is paid to Landlord net of
all costs and expenses, except as provided otherwise in this Lease.  The
provision for payment of Reimbursable Operating Costs by means of periodic
payment of Tenant's Allocable Share of Building and/or Project Costs is intended
to pass on to Tenant and reimburse Landlord for all costs of operating and
managing the Building and/or Project.

E.Tenant's Allocable Share:    For purposes of
prorating Reimbursable Operating Costs which Tenant shall pay, Tenant's
Allocable Share of Reimbursable Operating Costs shall be computed by multiplying
the Reimbursable Operating Costs by a fraction, the numerator of which is the
rentable square footage of the Premises and the denominator of which is either
the total rentable square footage of the Building if the service or cost is
allocable only to the Building, or the total square footage of the buildings
completed within the Project if the service or cost is allocable to the entire
Project.  Tenant's obligation to share in Reimbursable Operating Costs shall be
adjusted to reflect the Lease Commencement and Expiration dates and is subject
to recalculation in the event of expansion of the Building or Project.

F.Exclusions to Reimbursable Operating Costs:
Notwithstanding anything to the contrary contained in this Lease, the
following costs and expenses shall not be included within Reimbursable Operating
Costs:  (i) Leasing commissions, attorneys' fees, costs, disbursements, and
other expenses incurred in connection with negotiations or disputes with
tenants, or in connection with leasing, renovating, or improving space for
tenants or other occupants or prospective tenants or other occupants of the
Project; (ii) The cost of any service sold to any tenant (including Tenant) or
other occupant for which Landlord is entitled to be reimbursed as an additional
charge or rental over and above the basic rent and escalations payable under the
lease with that tenant; (iii) Any depreciation on the Project; (iv) Expenses in
connection with services or other benefits of a type that are not provided to
Tenant but which are provided another tenant or occupant of the Project; (v)
Costs incurred due to Landlord's violation of any terms or conditions of the
Declaration, this Lease or any other lease relating to the Project; (vi)
Overhead profit increments paid to Landlord's subsidiaries or affiliates for
services on or to the building or for supplies or other materials to the extent
that the cost of the services, supplies, or materials exceeds the cost that
would have been paid had the services, supplies, or materials been provided by
unaffiliated parties on a competitive basis; (vii) All interest, loan fees, and
other carrying costs related to any mortgage or deed of trust or related to any
capital item, and all rental and other payable due under any ground or
underlying lease, or any lease for any equipment ordinarily considered to be of
a capital nature (except janitorial equipment which is not affixed to the
Project.); (viii) Any compensation paid to clerks, attendants, or other persons
in commercial concessions operated by Landlord; (ix) Advertising and promotional
expenditures; (x) Costs of repairs and other work occasioned by fire, windstorm,
or other casualty of a nature required to be insured against under this Lease in
excess of the deductible; (xi) Any costs, fines, or penalties incurred due to
violations by Landlord of any governmental rule or authority, this Lease or any
other lease in the Project, or due to Landlord's negligence or willful
misconduct; (xii) Property management fees; (xiii) Costs for sculpture,
paintings, or other objects of art (and insurance thereon or extraordinary
security in connection therewith); (xiv) The cost of correcting any building
code or other violations which were violations prior to the Commencement Date of
this Lease; (xv) The cost of containing, removing, or otherwise remediating any
contamination of the Project (including the underlying land and ground water) by
any Hazardous Materials where such contamination was not caused by Tenant.

F.Waiver of Liability:     Failure by Landlord
to perform any defined services, or any cessation thereof, when such failure is
caused by accident, breakage, repairs, strikes, lockout or other labor
disturbances or labor disputes of any character or by any other cause, similar
or dissimilar, shall not render Landlord liable to Tenant in any respect,
including damages to either person or property, nor be construed as an eviction
of Tenant, nor cause an abatement of rent, nor relieve Tenant from fulfillment
of any covenant or agreement hereof.  Should any equipment or machinery utilized
in supplying the services listed herein break down or for any cause cease to
function properly, upon receipt of written notice from Tenant of any deficiency
or failure of any services, Landlord shall use reasonable diligence to repair
the same promptly, but Tenant shall have no right to terminate this Lease and
shall have no claim for rebate of rent or damages on account of any
interruptions in service occasioned thereby or resulting therefrom.  Tenant
waives the provisions of California Civil Code Sections 1941 and 1942 concerning
the Landlord's obligation of tenantability and Tenant's right to make repairs
and deduct the cost of such repairs from the rent.  Landlord shall not be liable
for a loss of or injury to person or property, however occurring, through or in
connection with or incidental to furnishing, or its failure to furnish, any of
the foregoing unless causes by its gross negligence or willful misconduct.

G.  Tenant's Right to Audit:   Tenant shall have
the right to audit at Landlord's local offices, at Tenant's expense, Landlord's
accounts and records relating to Reimbursable Operating Costs.   Such audit
shall be conducted by a certified public accountant approved by Landlord, which
approval shall not be unreasonably withheld. If such audit reveals that Landlord
has overcharged Tenant, the amount overcharged shall be paid to Tenant within 30
days after the audit is concluded, together with interest thereon at the rate of
ten percent (10.0%) per annum, from the date paid by Tenant until payment of the
overcharge is made to Tenant. In addition, if the amount paid by Tenant exceeds
the Reimbursable Operating Costs which should have been charged to Tenant by
more than five percent (5.0%), the cost of the audit shall be paid by
Landlord.

9.Hazard Insurance:    

A.Tenant's Use:    Tenant shall not use or
permit the Premises, or any part thereof, to be used for any purpose other than
that for which the Premises are hereby leased; and no use of the Premises shall
be made or permitted, nor acts done, which will cause an increase in premiums or
a cancellation of any insurance policy covering the Project or any part thereof,
nor shall Tenant sell or permit to be sold, kept, or used in or about the
Premises, any article prohibited by the standard form of fire insurance
policies.  Tenant shall, at its sole cost, comply with all requirements of any
insurance company or organization necessary for the maintenance of reasonable
fire and public liability insurance covering the Premises and appurtenances.

B.Landlord's Insurance:    Landlord agrees to
purchase and keep in force fire, extended coverage insurance in an amount equal
to the replacement cost of the Building as determined by Landlord's insurance
company's appraisers. If required by the holder of the first deed of trust on
the property, such fire and property damage insurance may be endorsed to cover
loss caused by such additional perils against which Landlord may elect to
insure, including earthquake and/or flood, and shall contain reasonable
deductibles which, in the case of earthquake and flood insurance may be up to
15% of the replacement value of the property.  Additionally Landlord may
maintain a policy of (i) commercial general liability insurance insuring
Landlord (and such others designated by Landlord) against liability for personal
injury, bodily injury, death and damage to property occurring or resulting from
an occurrence in, on or about the Premises or Project in an amount as Landlord
determines is reasonably necessary for its protection, and (ii) rental lost
insurance covering a twelve (12) month period. Tenant agrees to pay Landlord as
additional rent, on demand, the full cost of said insurance and any insurance
costs allocable to the Building pursuant to the Declaration as evidenced by
insurance billings to Landlord, and in the event of damage covered by said
insurance, the amount of any commercially reasonable deductible under such
policy.  Payment shall be due to Landlord within thirty (30) days after written
invoice to Tenant.  It is understood and agreed that Tenant's obligation under
this Section will be prorated to reflect the Lease Commencement and Expiration
Dates. Tenant acknowledges and agrees that the Association formed pursuant to
the Declaration may procure all or any portion of the insurance required to be
maintained by Landlord under this Lease on behalf of Landlord and in discharge
of Landlord's obligation to procure such insurance under this Lease, under one
or more policies procured by the Association from time to time for the benefit
of Landlord and other owners of any portion of the Project, the cost of which
shall be paid by Tenant pursuant to this section 9.B, provided that the cost to
Tenant shall not be greater than that which Tenant would have had to pay if
Landlord obtained such coverage directly.

C.Tenant's Insurance:    Tenant agrees, at its
sole cost, to insure its personal property, Tenant Improvements and Alterations
for their full replacement value (without depreciation) and to obtain worker's
compensation and public liability and property damage insurance for occurrences
within the Premises with a combined single limit of not less than Five Million
Dollars ($5,000,000.00).  Tenant's liability insurance shall be primary
insurance containing a cross-liability endorsement, and shall provide coverage
on an "occurrence" rather than on a "claims made" basis.
Tenant shall name Master Landlord, Landlord and their respective lenders as an
additional insured and shall deliver evidence of insurance and renewal
certificates to Landlord.  All such policies shall provide for thirty (30) days'
prior written notice to Landlord of any cancellation, termination, or reduction
in coverage.  

D.Waiver:    Landlord and Tenant hereby waive
all rights each may have against the other on account of any loss or damage
sustained by Landlord or Tenant, as the case may be, or to the Premises or its
contents, which may arise from any risk covered by their respective insurance
policies (or which would have been covered had such insurance policies been
maintained in accordance with this Lease) as set forth above.  The parties shall
use their reasonable efforts to obtain from their respective insurance companies
a waiver of any right of subrogation which said insurance company may have
against Landlord, Master Landlord or Tenant, as the case may be.

10.Taxes:    Tenant shall be liable for and shall
pay as additional rental, prior to delinquency, the following:  (i) all taxes
and assessments levied against Tenant's personal property and trade or business
fixtures; (ii) all real estate taxes and assessment installments or other
impositions or charges which may be levied on the Premises or upon the occupancy
of the Premises, including any substitute or additional charges which may be
imposed applicable to the Lease Term; and (iii) real estate tax increases due to
an increase in assessed value resulting from a sale, transfer or other change of
ownership of the Premises as it appears on the City and County tax bills during
the Lease Term.  Tenant's obligation under this Section shall be prorated to
reflect the Lease Commencement and Expiration Dates.  If, at any time during the
Lease Term a tax, excise on rents, business license tax or any other tax,
however described, is levied or assessed against Landlord as a substitute or
addition, in whole or in part, for taxes assessed or imposed on land or
Buildings, Tenant shall pay and discharge its pro rata share of such tax or
excise on rents or other tax before it becomes delinquent; except that this
provision is not intended to cover net income taxes, inheritance, gift or estate
tax imposed upon Landlord.  In the event that a tax is placed, levied, or
assessed against Landlord and the taxing authority takes the position that
Tenant cannot pay and discharge its pro rata share of such tax on behalf of
Landlord, then at Landlord's sole election, Landlord may increase the Base
Monthly Rent by the exact amount of such tax and Tenant shall pay such increase.
If by virtue of any application or proceeding brought by or on behalf of
Landlord, there results a reduction in the assessed value of the Premises during
the Lease Term, Tenant agrees to reimburse Landlord for all costs incurred by
Landlord in connection with such application or proceeding, not to exceed the
amount of any savings realized by Tenant.  In the event the Project is not
subdivided as provided in Section 2.C and the tax bill covers the entire
Project, the real estate taxes and assessments shall be prorated as provided in
Section 8.E.

11.Utilities:    Tenant shall pay directly to the
providing utility all water, gas, electric, telephone, and other utilities
supplied to the Premises.  Landlord shall not be liable for loss of or injury to
person or property, however occurring, through or in connection with or
incidental to furnishing or the utility company's failure to furnish utilities
to the Premises unless caused by Landlord's gross negligence of willful
misconduct, and Tenant shall not be entitled to abatement or reduction of any
portion of Base Monthly Rent or any other amount payable under this Lease.

12.Toxic Waste and Environmental Damage:    

A.Tenant's Responsibility:    Without the
prior written consent of Landlord, Tenant shall not bring, use, or permit upon
the Premises, or generate, create, release, emit, or dispose (nor permit any of
the same) from the Premises any chemicals, toxic or hazardous gaseous, liquid or
solid materials or waste, including without limitation, material or substance
having characteristics of ignitability, corrosivity, reactivity, or toxicity or
substances or materials which are listed on any of the Environmental Protection
Agency's lists of hazardous wastes or which are identified in Division 22 Title
26 of the California Code of Regulations as the same may be amended from time to
time or any wastes, materials or substances which are or may become regulated by
or under the authority of any applicable local, state or federal laws,
judgments, ordinances, orders, rules, regulations, codes or other governmental
restrictions, guidelines or requirements.  ("Hazardous Materials")
except for those substances customary in typical office uses for which no
consent shall be required.  In order to obtain consent, Tenant shall deliver to
Landlord its written proposal describing the toxic material to be brought onto
the Premises, measures to be taken for storage and disposal thereof, safety
measures to be employed to prevent pollution of the air, ground, surface and
ground water.  Landlord's approval may be withheld in its reasonable judgment.
In the event Landlord consents to Tenant's use of Hazardous Materials on the
Premises or such consent is not required, Tenant represents and warrants that it
shall comply with all Governmental Regulations applicable to Hazardous Materials
including doing the following:  (i) adhere to all reporting and inspection
requirements imposed by Federal, State, County or Municipal laws, ordinances or
regulations and will provide Landlord a copy of any such reports or agency
inspections; (ii) obtain and provide Landlord copies of all necessary permits
required for the use and handling of Hazardous Materials on the Premises; (iii)
enforce Hazardous Materials handling and disposal practices consistent with
industry standards; (iv) surrender the Premises free from any Hazardous
Materials arising from Tenant's bringing, using, permitting, generating,
creating, releasing, emitting or disposing of Hazardous Materials; and (v)
properly close the facility with regard to Hazardous Materials including the
removal or decontamination of any process piping, mechanical ducting, storage
tanks, containers, or trenches which have come into contact with Hazardous
Materials and obtain a closure certificate from the local administering agency
prior to the Expiration Date.

B.Tenant's Indemnity Regarding Hazardous
Materials:    Tenant shall, at its sole cost and expense,  comply with all
laws pertaining to, and shall with counsel reasonably acceptable to Landlord,
indemnify, defend and hold harmless Landlord, Master Landlord and their
trustees, shareholders, directors, officers, employees, partners, affiliates,
and agents from, any claims, liabilities, costs or expenses incurred or suffered
by Landlord arising from the bringing, using, permitting, generating, emitting
or disposing of Hazardous Materials by Tenant or a third party through the
surface soils of the Premises during the Lease Term or the violation of any
Governmental Regulation or environmental law, by Tenant or Tenant's Agents.
Tenant's indemnification and hold harmless obligations include, without
limitation, the following arising from the bringing, using, permitting,
generating, emitting or disposing of Hazardous Materials by Tenant or a third
party through the surface soils of the Premises during the Lease Term or the
violation of any Governmental Regulation or environmental law, by Tenant or
Tenant's Agents.:  (i) claims, liability, costs or expenses resulting from or
based upon administrative, judicial (civil or criminal) or other action, legal
or equitable, brought by any private or public person under common law or under
the Comprehensive Environmental Response, Compensation and Liability Act of 1980
("CERCLA"), the Resource Conservation and Recovery Act of 1980
("RCRA") or any other Federal, State, County or Municipal law,
ordinance or regulation; (ii) claims, liabilities, costs or expenses pertaining
to the identification, monitoring, cleanup, containment, or removal of Hazardous
Materials from soils, riverbeds or aquifers including the provision of an
alternative public drinking water source; (iii) all costs of defending such
claims; (iv) losses attributable to diminution in the value of the Premises or
the Building; (v) loss or restriction of use of rentable space in the Building;
(vi) Adverse effect on the marketing of any space in the Building; and (vi) all
other liabilities, obligations, penalties, fines, claims, actions (including
remedial or enforcement actions of any kind and administrative or judicial
proceedings, orders or judgments), damages (including consequential and punitive
damages), and costs (including attorney, consultant, and expert fees and
expenses) resulting from the release or violation.  This indemnification shall
survive the expiration or termination o this Lease.

C.Landlord's Indemnity Regarding Hazardous
Materials:    Landlord shall with counsel reasonably acceptable to Tenant,
indemnify, defend and hold harmless Tenant and Tenant's shareholders, directors,
officers, employees, partners, affiliates, and agents from, any claims,
liabilities, costs or expenses incurred or suffered by Tenant arising from the
bringing, using, permitting, generating, emitting or disposing of Hazardous
Materials by Landlord or the violation of any Governmental Regulation or
environmental law, by Landlord or Landlord's Agents.  Landlord's indemnification
and hold harmless obligations include, without limitation, the following:  (i)
claims, liability, costs or expenses resulting from or based upon
administrative, judicial (civil or criminal) or other action, legal or
equitable, brought by any private or public person under common law or under the
Comprehensive Environmental Response, Compensation and Liability Act of 1980
("CERCLA"), the Resource Conservation and Recovery Act of 1980
("RCRA") or any other Federal, State, County or Municipal law,
ordinance or regulation; (ii) claims, liabilities, costs or expenses pertaining
to the identification, monitoring, cleanup, containment, or removal of Hazardous
Materials from soils, riverbeds or aquifers including the provision of an
alternative public drinking water source; (iii) all costs of defending such
claims; and (iv) all other liabilities, obligations, penalties, fines, claims,
actions (including remedial or enforcement actions of any kind and
administrative or judicial proceedings, orders or judgments), damages (including
consequential and punitive damages), and costs (including attorney, consultant,
and expert fees and expenses) resulting from the release or violation.  This
indemnification shall survive the expiration or termination o this Lease. 

C.Actual Release by Tenant:    Tenant agrees
to notify Landlord of any lawsuits or orders which relate to the remedying of or
actual release of Hazardous Materials on or into the soils or ground water at or
under the Premises.  Tenant shall also provide Landlord all notices required by
Section 25359.7(b) of the Health and Safety Code and all other notices required
by law to be given to Landlord in connection with Hazardous Materials.  Without
limiting the foregoing, each party shall also deliver to the other party, within
twenty (20) days after receipt thereof, any written notices from any
governmental agency alleging a material violation of, or material failure to
comply with, any federal, state or local laws, regulations, ordinances or
orders, the violation of which or failure to comply with poses a foreseeable and
material risk of contamination of the ground water or injury to humans (other
than injury solely to Tenant, Tenant's Agents and employees within the
Building).

In the event of any release on or into the Premises
or into the soil or ground water under the Premises, the Building or the Project
of any Hazardous Materials used, treated, stored or disposed of by Tenant or
Tenant's Agents, Tenant agrees to comply, at its sole cost, with all laws,
regulations, ordinances and orders of any federal, state or local agency
relating to the monitoring or remediation of such Hazardous Materials.  In the
event of any such release of Hazardous Materials Tenant shall immediately give
verbal and follow-up written notice of the release to Landlord, and Tenant
agrees to meet and confer with Landlord and its Lender to attempt to eliminate
and mitigate any financial exposure to such Lender and resultant exposure to
Landlord under California Code of Civil Procedure Section 736(b) as a result of
such release, and promptly to take reasonable monitoring, cleanup and remedial
steps given, inter alia, the historical uses to which the Property has and
continues to be used, the risks to public health posed by the release, the then
available technology and the costs of remediation, cleanup and monitoring,
consistent with acceptable customary practices for the type and severity of such
contamination and all applicable laws.  Nothing in the preceding sentence shall
eliminate, modify or reduce the obligation of Tenant under 12.B of this Lease to
indemnify and hold Landlord and Master Landlord harmless from any claims
liabilities, costs or expenses incurred or suffered by them rising from the
bringing, using, permitting, generating, emitting or disposing of Hazardous
Materials by Tenant or a third party through the surface soils of the Premises
during the Lease Term or the violation of any Governmental Regulation or
environmental law, by Tenant or Tenant's Agents.  Tenant shall provide Landlord
prompt written notice of Tenant's monitoring, cleanup and remedial steps.

In the absence of an order of any federal, state or local
governmental or quasi-governmental agency relating to the cleanup, remediation
or other response action required by applicable law, any dispute arising between
Landlord and Tenant concerning Tenant's obligation to Landlord under this
Section 12.C concerning the level, method, and manner of cleanup, remediation or
response action required in connection with such a release of Hazardous
Materials shall be resolved by mediation and/or arbitration pursuant to the
provisions of Section 21.E of this Lease.

D.Environmental Monitoring:     Landlord and
its agents shall have the right to inspect, investigate, sample and monitor the
Premises including any air, soil, water, ground water or other sampling or any
other testing, digging, drilling or analysis to determine whether Tenant is
complying with the terms of this Section 12 provided reasonable grounds to
suspect a violation exist.  If Landlord discovers that Tenant is not in
compliance with the terms of this Section 12, any such reasonable costs incurred
by Landlord, including attorneys' and consultants' fees, shall be due and
payable by Tenant to Landlord within thirty (30) days following Landlord's
written demand therefore.

13.Tenant's Default:    The occurrence of any of
the following shall constitute a material default and breach of this Lease by
Tenant:  (i) Tenant's failure to pay any rent including additional rent or any
other payment due under this Lease within ten (10) days following Landlord's
notice of nonpayment, (ii) the abandonment of the Premises by Tenant; (iii)
Tenant's failure to observe and perform any other required provision of this
Lease, where such failure continues for thirty (30) days after written notice
from Landlord, provided, however, that if the nature of the default is such that
it cannot reasonably be cured within the 30-day period, Tenant shall not be
deemed in default if it commences within such period to cure, and thereafter
diligently prosecutes the same to completion; (iv) Tenant's making of any
general assignment for the benefit of creditors; (v) the filing by or against
Tenant of a petition to have Tenant adjudged a bankrupt or of a petition for
reorganization or arrangement under any law relating to bankruptcy (unless, in
the case of a petition filed against Tenant, the same is dismissed after the
filing); (vi) the appointment of a trustee or receiver to take possession of
substantially all of Tenant's assets located at the Premises or of Tenant's
interest in this Lease, where possession is not restored to Tenant within sixty
(60) days; (vii) the attachment, execution or other judicial seizure of
substantially all of Tenant's assets located at the Premises or of Tenant's
interest in this Lease, where such seizure is not discharged within sixty (60)
days; (viii) a default by Tenant under the Building 2 Lease (if then leased by
Tenant from Landlord), or (ix) a default by Tenant under the Building 1 Lease
(if leased by Tenant from Landlord).

A.Remedies:    In the event of any such
default by Tenant, then in addition to other remedies available to Landlord at
law or in equity, Landlord shall have the immediate option to terminate this
Lease and all rights of Tenant hereunder by giving written notice of such
intention to terminate.  In the event Landlord elects to so terminate this
Lease, Landlord may recover from Tenant all the following:  (i) the worth at
time of award of any unpaid rent which had been earned at the time of such
termination; (ii) the worth at 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 for the same period that Tenant proves
could have been reasonably avoided; (iii) the worth at time of award of the
amount by which the unpaid rent for the balance of the Lease Term after the time
of award exceeds the amount of such rental loss that Tenant proves could be
reasonably avoided; (iv) any other amount necessary to compensate Landlord for
all detriment proximately caused by Tenant's failure to perform its obligations
under this Lease, or which in the ordinary course of things would be likely to
result therefrom; including the following:  (x) reasonable expenses for
repairing, altering or remodeling the Premises if such expenses are necessary to
relet the Premises, (y) reasonable broker's fees, advertising costs or other
expenses of reletting the Premises, and (z) costs of carrying the Premises such
as taxes, insurance premiums, utilities and security precautions and assessments
due under the Declaration, and (v) at Landlord's election, such other reasonable
amounts in addition to or in lieu of the foregoing as may be permitted by
applicable California law.  The term "rent", as used herein, is
defined as the minimum monthly installments of Base Monthly Rent and all other
sums required to be paid by Tenant pursuant to this Lease, all such other sums
being deemed as additional rent due hereunder.  As used in (i) and (ii) above,
"worth at the time of award" shall be computed by allowing interest at
a rate equal to the discount rate of the Federal Reserve Bank of San Francisco
plus five (5%) percent per annum.  As used in (iii) above, "worth at the
time of award" shall be computed by discounting such amount at the discount
rate of the Federal Reserve Bank of San Francisco at the time of award plus one
(1%) percent.  

B.Right to Re-enter:     In the event of any
such default by Tenant, Landlord shall have the right, after terminating this
Lease, to re-enter the Premises and remove all persons and property.  Such
property may be removed and stored in a public warehouse or elsewhere at the
cost of and for the account of Tenant, and disposed of by Landlord in any manner
permitted by law.

C.Abandonment:     If Landlord does not elect
to terminate this Lease as provided in Section 13.A or 13.B above, then the
provisions of California Civil Code Section 1951.4, (Landlord may continue the
lease in effect after Tenant's breach and abandonment and recover rent as it
becomes due if Tenant has a right to sublet and assign, subject only to
reasonable limitations) as amended from time to time, shall apply and Landlord
may from time to time, without terminating this Lease, either recover all rental
as it becomes due or relet the Premises or any part thereof for such term or
terms and at such rental or rentals and upon such other terms and conditions as
Landlord in its sole discretion may deem advisable, with the right to make
alterations and repairs to the Premises.  In the event that Landlord elects to
so relet, rentals received by Landlord from such reletting shall be applied in
the following order to:  (i) the payment of any indebtedness other than Base
Monthly Rent due hereunder from Tenant to Landlord; (ii) the payment of any cost
of such reletting; (iii) the payment of the cost of any alterations and repairs
to the Premises; and (iv) the payment of Base Monthly Rent due and unpaid
hereunder.  The residual rentals, if any, shall be held by Landlord and applied
in payment of future Base Monthly Rent as the same may become due and payable
hereunder.  Landlord shall the obligation to market the space but shall have no
obligation to relet the Premises following a default if Landlord has other
comparable available space within the Building or Project.  In the event the
portion of rentals received from such reletting which is applied to the payment
of rent hereunder during any month be less than the rent payable during that
month by Tenant hereunder, then Tenant shall pay such deficiency to Landlord
immediately upon demand.  Such deficiency shall be calculated and paid monthly.
Tenant shall also pay to Landlord, as soon as ascertained, any reasonable costs
and expenses incurred by Landlord in such reletting or in making such
alterations and repairs not covered by the rentals received from such
reletting.

D.No Termination:     Landlord's re-entry or
taking possession of the Premises pursuant to 13.B or 13.C shall not be
construed as an election to terminate this Lease unless written notice of such
intention is given to Tenant or unless the termination is decreed by a court of
competent jurisdiction. Notwithstanding any reletting without termination by
Landlord because of any default by Tenant, Landlord may at any time after such
reletting elect to terminate this Lease for any such default.

E.Non-Waiver:   Landlord may accept Tenant's
payments without waiving any rights under this Lease, including rights under a
previously served notice of default. No payment by Tenant or receipt by Landlord
of a lesser amount than any installment of rent due shall be deemed as other
than payment on account of the amount due.  If Landlord accepts payments after
serving a notice of default, Landlord may nevertheless commence and pursue an
action to enforce rights and remedies under the previously served notice of
default without giving Tenant any further notice or demand.  Furthermore, the
Landlord's acceptance of rent from the Tenant when the Tenant is holding over
without express written consent does not convert Tenant's Tenancy from a tenancy
at sufferance to a month to month tenancy. No waiver of any provision of this
Lease shall be implied by any failure of Landlord to enforce any remedy for the
violation of that provision, even if that violation continues or is repeated.
Any waiver by Landlord of any provision of this Lease must be in writing.  Such
waiver shall affect only the provision specified and only for the time and in
the manner stated in the writing. No delay or omission in the exercise of any
right or remedy by Landlord shall impair such right or remedy or be construed as
a waiver thereof by Landlord.  No act or conduct of Landlord, including, without
limitation, the acceptance of keys to the Premises, shall constitute acceptance
of the surrender of the Premises by Tenant before the Expiration Date.  Only
written notice from Landlord to Tenant of acceptance shall constitute such
acceptance of surrender of the Premises.  Landlord's consent to or approval of
any act by Tenant which requires Landlord's consent or approvals shall not be
deemed to waive or render unnecessary Landlord's consent to or approval of any
subsequent act by Tenant.

F.Performance by Landlord:    If Tenant fails
to perform any obligation required under this Lease or by law or governmental
regulation, Landlord in its sole discretion may, following notice and expiration
of the applicable cure period, without waiving any rights or remedies and
without releasing Tenant from its obligations hereunder, perform such
obligation, in which event Tenant shall pay Landlord as additional rent all sums
paid by Landlord in connection with such substitute performance, including
interest at the Agreed Interest Rate within thirty (30) days of Landlord's
written notice for such payment.

14.Landlord's  Liability:    

A.Limitation on Landlord's Liability:    In the
event of Landlord's failure to perform any of its covenants or agreements under
this Lease, Tenant shall give Landlord written notice of such failure and shall
give Landlord thirty (30) days to cure or commence to cure such failure prior to
any claim for breach or resultant damages, provided, however, that if the nature
of the default is such that it cannot reasonably be cured within the 30-day
period, Landlord shall not be deemed in default if it commences within such
period to cure, and thereafter diligently prosecutes the same to completion.  In
addition, upon any such failure by Landlord, Tenant shall give notice by
registered or certified mail to any person or entity with a security interest in
the Premises ("Mortgagee") that has provided Tenant with notice of its
interest in the Premises, and shall provide Mortgagee a reasonable opportunity
to cure such failure, including such time to obtain possession of the Premises
by power of sale or judicial foreclosure, if such should prove necessary to
effectuate a cure.  Tenant agrees that each of the Mortgagees to whom this Lease
has been assigned is an expressed third-party beneficiary hereof.  Tenant waives
any right under California Civil Code Section 1950.7 or any other present or
future law to the collection of any payment or deposit from Mortgagee or any
purchaser at a foreclosure sale of Mortgagee's interest unless Mortgagee or such
purchaser shall have actually received and not refunded the applicable payment
or deposit.   Tenant Further waives any right to terminate this Lease and to
vacate the Premises on Landlord's default under this Lease.  Tenant's sole
remedy on Landlord's default is an action for damages or injunctive or
declaratory relief.

B.Limitation on Tenant's Recourse:    If
Landlord is a corporation trust, partnership, joint venture, unincorporated
association or other form of business entity: (i) the obligations of Landlord
shall not constitute personal obligations of the officers, directors, trustees,
partners, joint venturers, members, owners, stockholders, or other principals or
representatives except to the extent of their interest in the Premises.  Tenant
shall have recourse only to the interest of Landlord in the Premises or for the
satisfaction of the obligations of Landlord and shall not have recourse to any
other assets of Landlord for the satisfaction of such obligations.

C.Indemnification of Landlord:    As a
material part of the consideration rendered to Landlord, Tenant hereby waives
all claims against Landlord except to the extent caused by Landlord's gross
negligence, willful misconduct or a breach of this Lease for damages to goods,
wares and merchandise, and all other personal property in, upon or about said
Premises and for injuries to persons in or about said Premises, from any cause
arising at any time to the fullest extent permitted by law, and Tenant shall
indemnify and hold Landlord, Master Landlord and their shareholders, directors,
officers, trustees, employees, partners, affiliates and agents exempt and
harmless from any damage or injury to any person, or to the goods, wares and
merchandise and all other personal property of any person, arising from the use
of the Premises, Building, and/or Project by Tenant and Tenant's Agents or from
the failure of Tenant to keep the Premises in good condition and repair as
herein provided, except to the extent due to the gross negligence or willful
misconduct of Landlord.  Further, in the event Landlord is made party to any
litigation due to the acts or omission of Tenant and Tenant's Agents, Tenant
will indemnify, defend (with counsel reasonably acceptable to Landlord) and hold
Landlord harmless from any such claim or liability including Landlord's costs
and expenses and reasonable attorney's fees incurred in defending such claims
except to the extent due to the gross negligence or willful misconduct of
Landlord.

15.Destruction of Premises:    

A.Landlord's Obligation to Restore: In the
event of a destruction of the Premises during the Lease Term Landlord shall
repair the same to the approximate condition which existed prior to such
destruction.  Such destruction shall not annul or void this Lease; however,
Tenant shall be entitled to a proportionate reduction of Base Monthly Rent while
repairs are being made, such proportionate reduction to be based upon the extent
to which the repairs interfere with Tenant's business in the Premises, as
reasonably determined by the Parties. In no event shall Landlord be required to
replace or restore Alterations, Tenant Improvements, Tenant's fixtures or
personal property.  With respect to a destruction which Landlord is obligated to
repair or may elect to repair under the terms of this Section, Tenant waives the
provisions of Section 1932, and Section 1933, Subdivision 4, of the Civil Code
of the State of California, and any other similarly enacted statute, and the
provisions of this Section 15 shall govern in the case of such destruction.  If
Landlord is required to repair the Premises in the event of destruction pursuant
to this Lease, Landlord agrees that it will not vote under the Declaration in
favor or not repairing the Premises or Common Area.

B.Limitations on Landlord's Restoration
Obligation: Notwithstanding the provisions of Section 15.A, Landlord shall
have no obligation to repair, or restore the Premises if any of the following
occur:  (i) if the repairs cannot be made in three hundred sixty five (365) days
from the date of receipt of all governmental approvals necessary under the laws
and regulations of State, Federal, County or Municipal authorities, as
reasonably determined by Landlord, (ii) if the holder of the first deed of trust
or mortgage encumbering the Building elects not to permit the insurance proceeds
payable upon damage or destruction to be used for such repair or restoration,
(iii) the damage or destruction is not fully covered by the insurance maintained
by Landlord, (iv) the damage or destruction occurs in the last twenty four (24)
months of the Lease Term (unless Tenant commits to exercise any available option
to extend the Lease Term pursuant to Section 18 of this Lease), (v) Tenant is in
default pursuant to the provisions of Section 13 beyond expiration of the
applicable cure period, (vi) Tenant has vacated the Premises for more than
ninety (90) days, or (vii) if repair of the Common Area is necessary before
repairs to the Premises can be

performed and Landlord reasonably determines that repairs to
the Common Area will not be made within one hundred eighty (180) days after the
date of the damage and destruction.  In any such event Landlord may elect either
to (i) complete the repair or restoration, or (ii) terminate this Lease by
providing Tenant written notice of its election within sixty (60) days following
the damage or destruction.

C.  Tenant's Rights with Respect to a Destruction of
the Premises:    Notwithstanding anything to the contrary contained in this
Lease:  Landlord shall give notice to Tenant of its election to rebuild or not
to rebuild the Premises within thirty (30) days of casualty to the Premises and
such notice shall specify Landlord's architect's or engineer's reasonable
estimate as to the time required to rebuild or restore the Premises.  If, in the
reasonable opinion of Landlord's architect or engineer, the Premises will take
longer than three hundred sixty five (365) days to rebuild or restore and
Landlord has elected to perform such rebuilding or restoration, Tenant may,
notwithstanding Landlord's election, terminate this Lease by written notice to
Landlord of such termination within five (5) days after its receipt of
Landlord's notice. Such termination shall be effective thirty (30) days after
the giving of Tenant's notice.  If Landlord fails to restore the Premises
(including reasonable means of access thereto) within a period which is sixty
(60) days longer than the period stated in Landlord's notice to Tenant as the
estimated rebuilding period, 'Tenant, at any time thereafter until such
rebuilding is completed, may terminate this Lease by delivering written notice
to Landlord of such termination, in which event this Lease shall terminate as of
the date of the giving of such notice.  If casualty to the Premises occurs
within the last twenty-four months of the term and the period in which Tenant is
obligated to exercise its option to renew the term pursuant to Section 18 has
not expired, Tenant shall have thirty (30) days after the date of casualty in
which to notify Landlord of its election to exercise such renewal option. If
Tenant elects to renew the term as provided above, Landlord shall have no right
to terminate the Lease pursuant to this Section 15.

16.Condemnation:    If any part of the Premises
shall be taken for any public or quasi-public use, under any statute or by right
of eminent domain or private purchase in lieu thereof, and only a part thereof
remains which is susceptible of occupation hereunder, this Lease shall, as to
the part so taken, terminate as of the day before title vests in the condemnor
or purchaser ("Vesting Date") and Base Monthly Rent payable hereunder
shall be adjusted so that Tenant is required to pay for the remainder of the
Lease Term only such portion of Base Monthly Rent as the value of the part
remaining after such taking bears to the value of the entire Premises prior to
such taking.  If all of the Premises or such part thereof be taken so that there
does not remain a portion susceptible for occupation hereunder, this Lease shall
terminate on the Vesting Date.  If part or all of the Premises be taken, all
compensation awarded upon such taking shall go to Landlord, and Tenant shall
have no claim thereto; but Landlord shall cooperate with Tenant, without cost to
Landlord, to recover compensation for damage to or taking of any Alterations,
Tenant Improvements, or for Tenant's moving costs.  Tenant hereby waives the
provisions of California Code of Civil Procedures Section 1265.130 and any other
similarly enacted statue, and the provisions of this Section 16 shall govern in
the case of such taking.

17.Assignment or Sublease:    

A.Consent by Landlord:    Except as
specifically provided in this Section 17.E, Tenant may not assign, sublet,
hypothecate, or allow a third party to use the Premises without the express
written consent of Landlord which shall not be unreasonably withheld,
conditioned or delayed.  Except in connection with a Permitted Transfer, in the
event Tenant desires to assign this Lease or any interest herein including,
without limitation, a pledge, mortgage or other hypothecation, or sublet the
Premises or any part thereof, Tenant shall deliver to Landlord (i) executed
counterparts of any agreement and of all ancillary agreements with the proposed
assignee/subtenant, (ii) current financial statements of the transferee covering
the preceding three years if available, (iii) the nature of the proposed
transferee's business to be carried on in the Premises, (iv) a statement
outlining all consideration to be given on account of the Transfer, and (v) a
current financial statement of Tenant.  Landlord may condition its approval of
any Transfer to a certification from both Tenant and the proposed transferee of
all consideration to be paid to Tenant in connection with such Transfer.  At
Landlord's request, Tenant shall also provide additional information reasonably
required by Landlord to determine whether it will consent to the proposed
assignment or sublease.  Landlord shall have a fifteen business (15) day period
following receipt of all the foregoing within which to notify Tenant in writing
that Landlord elects to: (i) terminate this Lease in the event of an assignment
only; (ii) permit Tenant to assign or sublet such space to the named
assignee/subtenant on the terms and conditions set forth in the notice; or (iii)
refuse consent.  If Landlord should fail to notify Tenant in writing of such
election within the 15-day period, Landlord shall be deemed to have elected
option (ii) above.  In the event Landlord elects option (i) above, this Lease
shall expire with respect to such part of the Premises on the date upon which
the proposed sublease was to commence, and from such date forward, Base Monthly
Rent and Tenant's Allocable Share of all other costs and charges shall be
adjusted based upon the proportion that the rentable area of the Premises
remaining bears to the total rentable area of the Premises.  In the event
Landlord elects option (ii) above, Landlord's written consent to the proposed
assignment or sublease shall not be unreasonably withheld, provided and upon the
condition that: (i) the proposed assignee or subtenant is engaged in a business
that is limited to the use expressly permitted under this Lease; (ii) the
proposed assignee or subtenant is a company with sufficient financial worth and
management ability to undertake the financial obligation of this Lease and
Landlord has been furnished with reasonable proof thereof; (iii) the proposed
assignment or sublease is in form reasonably satisfactory to Landlord; (iv)
Tenant reimburses Landlord on demand for any reasonable costs that may be
incurred by Landlord in connection with said assignment or sublease, including
the costs of making investigations as to the acceptability of the proposed
assignee or subtenant and legal costs incurred in connection with the granting
of any requested consent; and (vi) Tenant shall not have advertised or
publicized in any way the availability of the Premises without prior notice to
Landlord.  In the event all or any one of the foregoing conditions are not
satisfied, Landlord shall be considered to have acted reasonably if it withholds
its consent.

B.Assignment or Subletting Consideration:
Any rent or other economic consideration realized by Tenant under any
sublease and assignment, in excess of the rent payable hereunder after deducting
(i) reasonable subletting and assignment costs (ii) the Monthly Amortized Cost
(defined below) of the Tenant Improvements paid by Tenant, and (iii) any
economic consideration received by Tenant for services rendered or personal
property sold or leased, shall be divided and paid fifty percent (50%) to
Landlord and fifty percent (50%) to Tenant.  Monthly Amortized Cost shall be
determined by taking sum paid by Tenant for the Tenant Improvements installed in
the Building and dividing this sum by one hundred forty four (144) months.
Tenant's obligation to pay over Landlord's portion of the consideration
constitutes an obligation for additional rent hereunder.  The above provisions
relating to Landlord's right to terminate the Lease and relating to the
allocation of bonus rent are independently negotiated terms of the Lease which
constitute a material inducement for the Landlord to enter into the Lease, and
are agreed by the parties to be commercially reasonable.  No assignment or
subletting by Tenant shall relieve it of any obligation under this Lease.  Any
assignment or subletting except in connection with a Permitted Transfer which
conflicts with the provisions hereof shall be void.

C.No Release:    Any assignment or sublease
except in connection with a Permitted Transfer shall be made only if and shall
not be effective until the assignee or subtenant shall execute, acknowledge, and
deliver to Landlord an agreement, in form and substance satisfactory to
Landlord, whereby the assignee or subtenant shall assume all the obligations of
this Lease on the part of Tenant to be performed or observed and shall be
subject to all the covenants, agreements, terms, provisions and conditions in
this Lease.  Notwithstanding any such sublease or assignment and the acceptance
of rent by Landlord from any subtenant or assignee, Tenant and any guarantor
shall remain fully liable for the payment of Base Monthly Rent and additional
rent due, and to become due hereunder, for the performance of all the covenants,
agreements, terms, provisions and conditions contained in this Lease on the part
of Tenant to be performed and for all acts and omissions of any licensee,
subtenant, assignee or any other person claiming under or through any subtenant
or assignee that shall be in violation of any of the terms and conditions of
this Lease, and any such violation shall be deemed a violation by Tenant.
Tenant shall indemnify, defend and hold Landlord harmless from and against all
losses, liabilities, damages, costs and expenses (including reasonable attorney
fees) resulting from any claims that may be made against Landlord by the
proposed assignee or subtenant or by any real estate brokers or other persons
claiming compensation in connection with the proposed assignment or sublease,
unless caused by Landlord's breach of this Lease.  

D.Reorganization of Tenant:    The provisions
of this Section 17.D shall apply if Tenant is a corporation and: (i) there is a
dissolution, merger, consolidation, or other reorganization of or affecting
Tenant, where Tenant is not the surviving corporation, or (ii) there is a sale
or transfer to one person or entity (or to any group of related persons or
entities) of stock possessing more than 50% of the total combined voting power
of all classes of Tenant's capital stock issued, outstanding and entitled to
vote for the election of directors, and after such sale or transfer of stock
Tenant's stock is no longer publicly traded. In a transaction under clause (i)
the surviving corporation shall promptly execute and deliver to Landlord an
agreement in form reasonably satisfactory to Landlord under which such
corporation assumes the obligations of Tenant hereunder, and in a transaction
under clause (ii) the transferee shall promptly execute and deliver to Landlord
an agreement in form reasonably satisfactory to Landlord under which such
transferee assumes the obligations of Tenant to the extent accruing after such
transferee's acquisition of Tenant's stock possessing more than 50% of the total
combined voting of all classes of Tenant's capital stock issued, outstanding and
entitled to vote for the election of directors.

E.Permitted Transfers:    Notwithstanding
anything contained in this Section 17, Tenant may enter into any of the
following transfers (a "Permitted Transfer") without Landlord's prior
consent, and Landlord shall not be entitled to terminate the Lease or to receive
any part of any subrent resulting therefrom that would otherwise be due pursuant
to Sections 17.A and 17.B.  Tenant may sublease all or part of the Premises or
assign its interest in this Lease to (i) any person or entity which controls, is
controlled by, or is under common control with the original Tenant to this Lease
by means of an ownership interest of more than 50%; (ii) any person or entity
which results from a merger, consolidation or other reorganization in which
Tenant is not the survivor, so long as the survivor has a net worth at the time
of such transfer sufficient to enable it to meet its obligations under this
Lease; and (iii) any person or entity which purchases or otherwise acquires all
or substantially all of the assets of Tenant so long as such acquiring person or
entity has a net worth at the time of such transfer that is sufficient at the
time of such transfer to enable it to meet its obligations under this Lease.

F.Effect of Default:    In the event of Tenant's
default, Tenant hereby assigns all rents due from any assignment or subletting
to Landlord as security for performance of its obligations under this Lease, and
Landlord may collect such rents as Tenant's Attorney-in-Fact, except that Tenant
may collect such rents unless a default occurs as described in Section 13 above.
A Lease termination due to Tenant's default shall not automatically terminate an
assignment or sublease then in existence; rather at Landlord's election, such
assignment or sublease shall survive the Lease termination, the assignee or
subtenant shall attorn to Landlord, and Landlord shall undertake the obligations
of Tenant under the sublease or assignment; except that Landlord shall not be
liable for prepaid rent, security deposits or other defaults of Tenant to the
subtenant or assignee, or for any acts or omissions of Tenant and Tenant's
Agents.

G.Conveyance by Landlord:    As used in this
Lease, the term "Landlord" is defined only as the owner for the time
being of the Premises, so that in the event of any sale or other conveyance of
the Premises or in the event of a master lease of the Premises, Landlord shall
be entirely freed and relieved of all its covenants and obligations hereunder,
and it shall be deemed and construed, without further agreement between the
parties and the purchaser at any such sale or the master tenant of the Premises,
that the purchaser or master tenant of the Premises has assumed and agreed to
carry out any and all covenants and obligations of Landlord hereunder.  Such
transferor shall transfer and deliver Tenant's security deposit to the purchaser
at any such sale or the master tenant of the Premises, and thereupon the
transferor shall be discharged from any further liability in reference
thereto.

F.Successors and Assigns:    Subject to the
provisions this Section 17, the covenants and conditions of this Lease shall
apply to and bind the heirs, successors, executors, administrators and assigns
of all parties hereto; and all parties hereto shall be jointly and severally
liable hereunder.

18.Option to Extend the Lease Term:

A.Grant and Exercise of Option:    Landlord
grants to Tenant, subject to the terms and conditions set forth in this Section
18.A, two (2) options (the "Options") to extend the Lease Term for an
additional term (the "Option Term").  Each Option Term shall be for a
period of sixty (60) months and shall be exercised, if at all, by written notice
to Landlord no earlier than eighteen (18) months prior to the date the Lease
Term would expire but for such exercise but no later than twelve (12) months
prior to the date the Lease Term would expire but for such exercise, time being
of the essence for the giving of such notice.  If Tenant exercises the first
Option or both of the Options, all of the terms, covenants and conditions of
this Lease except this Section shall apply during the Option Term as though the
expiration date of the Option Term was the date originally set forth herein as
the Expiration Date, provided that Base Monthly Rent for the Premises payable by
Tenant during the Option Term shall be the greater of (i) the average amount of
Base Monthly Rent paid during the initial Lease Term, and (ii) ninety five
percent (95%) of the Fair Market Rental as hereinafter defined.  Notwithstanding
anything herein to the contrary, if Tenant is in monetary or material non-
monetary default after expiration of any applicable cure period under any of the
terms, covenants or conditions of this Lease either at the time Tenant exercises
the Option or at any time thereafter prior to the commencement date of the
Option Term, Landlord shall have, in addition to all of Landlord's other rights
and remedies provided in this Lease, the right to terminate the Option upon
notice to Tenant, in which event the expiration date of this Lease shall be and
remain the Expiration Date.  As used herein, the term "Fair Market
Rental" is defined as the rental and all other monetary payments, including
any escalations and adjustments thereto (including without limitation Consumer
Price Indexing) that Landlord could obtain during the Option Term from a third
party desiring to lease the Premises, based upon the current use and other
potential uses of the Premises, as determined by the rents then being obtained
for new leases of space comparable in age and quality to the Premises in the
locality of the Building. The appraisers shall be instructed that the foregoing
five percent (5%) discount is intended to reduce comparable rents which include
(i) brokerage commissions, (ii) tenant improvement allowances, and (iii) vacancy
costs, to account for the fact that Landlord will not suffer such costs in the
event Tenant exercises its Option.

B.Determination of Fair Market Rental:    If
Tenant exercises the Option, Landlord shall send Tenant a notice setting forth
the Fair Market Rental for the Option Term within thirty (30) days following the
Exercise Date.  If Tenant disputes Landlord's determination of Fair Market
Rental for the Option Term, Tenant shall, within thirty (30) days after the date
of Landlord's notice setting forth Fair Market Rental for the Option Term, send
to Landlord a notice stating that Tenant either elects to terminate its exercise
of the Option, in which event the Option shall lapse and this Lease shall
terminate on the Expiration Date, or that Tenant disagrees with Landlord's
determination of Fair Market Rental for the Option Term and elects to resolve
the disagreement as provided in Section 18.C below.  If Tenant elects to resolve
the disagreement as provided in Section 18.C and such procedures are not
concluded prior to the commencement date of the Option Term, Tenant shall pay to
Landlord as Base Monthly Rent the Fair Market Rental as determined by Landlord
in the manner provided above.  If the Fair Market Rental as finally determined
pursuant to Section 18.C is greater than Landlord's determination, Tenant shall
pay Landlord the difference between the amount paid by Tenant and the Fair
Market Rental as so determined in Section 18.C within thirty (30) days after
such determination.  If the Fair Market Rental as finally determined in Section
18.C is less than Landlord's determination, the difference between the amount
paid by Tenant and the Fair Market Rental as so determined in Section 18.C shall
be credited against the next installments of rent due from Tenant to Landlord
hereunder.

C. Resolution of a Disagreement over the Fair
Market Rental:    Any disagreement regarding Fair Market Rental shall be
resolved as follows:

1.Within thirty (30) days after Tenant's response
to Landlord's notice setting forth the Fair Market Rental, Landlord and Tenant
shall meet at least two (2) times at a mutually agreeable time and place, in an
attempt to resolve the disagreement.

2.If within the 30-day period referred to above,
Landlord and Tenant cannot reach agreement as to Fair Market Rental, each party
shall select one appraiser to determine Fair Market Rental.  Each such appraiser
shall arrive at a determination of Fair Market Rental and submit their
conclusions to Landlord and Tenant within thirty (30) days after the expiration
of the 30-day consultation period described above.

3.If only one appraisal is submitted within the
requisite time period, it shall be deemed as Fair Market Rental.  If both
appraisals are submitted within such time period and the two appraisals so
submitted differ by less than ten percent (10%), the average of the two shall be
deemed as Fair Market Rental.  If the two appraisals differ by more than 10%,
the appraisers shall immediately select a third appraiser who shall, within
thirty (30) days after his selection, make and submit to Landlord and Tenant a
determination of Fair Market Rental.  This third appraisal will then be averaged
with the closer of the two previous appraisals and the result shall be Fair
Market Rental.

4.All appraisers specified pursuant to this
Section shall be members of the American Institute of Real Estate Appraisers
with not less than ten (10) years experience appraising office and industrial
properties in the Santa Clara Valley.  Each party shall pay the cost of the
appraiser selected by such party and one-half of the cost of the third
appraiser.

D.Personal to Tenant:    All Options provided
to Tenant in this Lease are personal and granted to Siebel Systems, Inc. and any
Permitted Transferee and are not exercisable by any third party should Tenant
assign or sublet all or a portion of its rights under this Lease, unless
Landlord consents to permit exercise of any option by any assignee or subtenant,
in Landlord's sole and absolute discretion.  In the event Tenant has multiple
options to extend this Lease, a later option to extend the Lease cannot be
exercised unless the prior option has been so exercised.

19.This section intentionally left blank.

20.  Right Of First Offering To Purchase:    

A.Grant and Exercise of Option: In the event
either or both Master Landlord and Landlord elect to sell their respective
interests in the Building, Master Landlord and Landlord hereby grants Tenant a
right of first offering to purchase their respective interests in the Building
(Master Landlord and Landlord are individually and collectively referred to in
this Section as "Seller").  Prior to Seller offering to sell its
interest in the Building to a third party, Seller shall give Tenant written
notice of such desire and the terms and other information under which Seller
intends to sell the Building.  Provided at the time of exercise, Tenant is not
in default beyond the expiration of any applicable cure period, Tenant shall
have the option, which must be exercised, if at all, by written notice to Seller
within thirty (30) days after Tenant's receipt of Seller's notice, to purchase
its interest in the Building at the sales price and terms of sale specified in
the notice.  In the event Tenant timely exercises such option to purchase its
interest in the Building, Seller shall sell its interest in the Building to
Tenant, and Tenant shall purchase its interest in the Building from Seller in
accordance with the price and terms specified in Seller's notice.  Seller and
Tenant shall, in good faith, attempt to reach agreement on the terms of a
mutually acceptable purchase agreement consistent with the terms set forth in
Seller's notice within thirty (30) days of Seller's notice.  In the event (i)
Seller and Tenant are unable to reach agreement on a mutually acceptable
purchase agreement within such thirty (30) day period or (ii) Tenant fails to
exercise Tenant's option within said thirty (30) day period, Seller shall have
one hundred eighty (180) days thereafter to sell its interest in the Building at
no less than ninety five percent (95%) of the sales price and upon the same or
substantially the same other terms of sale as specified in the notice to Tenant.
In the event Seller fails to sell its interest in the Building within said one
hundred eighty (180) day period or in the event Seller proposes to sell its
interest in the Building at less than ninety five percent (95%) of the sales
price or on other material terms which are more favorable to the prospective
buyer than that proposed to Tenant, Seller shall be required to resubmit such
offer to Tenant in accordance with this Right of First Offering except that
Tenant shall be required to respond to any resubmission within a seven (7) day
period.

B.Exclusions:    This Right of First
Offering shall automatically terminate, (i) upon the expiration or sooner
termination of the Lease, or (ii) in the event of a foreclosure or other
involuntary transfer of Landlord's interest in the Building.   Notwithstanding
the forgoing, this Right of First Offering shall not apply to transfers (but
shall survive such transfers ) of all or a portion of the Building or Project to
(i) John A. Sobrato and/or John M. Sobrato (individually and collectively
"Sobrato"), and (ii) any immediate family member of Sobrato, and (iii)
any trust established, in whole or in art, for the benefit of Sobrato and/or any
immediate family member of Sobrato, (iv) any partnership in which Sobrato or any
immediate family member, either directly or indirectly (e.g., through a
partnership or corporate entity or a trust) retains a general partner interest,
and/or (v) any corporation under the control, either directly or indirectly, by
Sobrato or any immediate family member of Sobrato.

21.General Provisions:

A.Attorney's Fees:    In the event a suit or
alternative form of dispute resolution is brought for the possession of the
Premises, for the recovery of any sum due hereunder, to interpret the Lease, or
because of the breach of any other covenant herein; then the losing party shall
pay to the prevailing party reasonable attorney's fees including the expense of
expert witnesses, depositions and court testimony as part of its costs which
shall be deemed to have accrued on the commencement of such action.  The
prevailing party shall also be entitled to recover all costs and expenses
including reasonable attorney's fees incurred in enforcing any judgment or award
against the other party.  The foregoing provision relating to post-judgment
costs is severable from all other provisions of this Lease.

B.Authority of Parties:   Tenant represents
and warrants that it is duly formed and in good standing, and is duly authorized
to execute and deliver this Lease on behalf of said corporation, in accordance
with a duly adopted resolution of the Board of Directors of said corporation or
in accordance with the by-laws of said corporation, and that this Lease is
binding upon said corporation in accordance with its terms.  At Landlord's
request, Tenant shall provide Landlord with corporate resolutions or other proof
in a form acceptable to Landlord, authorizing the execution of the Lease.

C.Brokers:    Tenant represents it has not
utilized or contacted a real estate broker or finder with respect to this Lease
other than Chris Allen, d/b/a Resource Real Estate Group, which fee shall be
payable by Landlord pursuant to a written agreement and the Parties agree to
indemnify, defend and hold each other harmless against any claim, cost,
liability or cause of action asserted by any other broker or finder.

D.Choice of Law:    This Lease shall be
governed by and construed in accordance with California law.   Except as
provided in Section 21.E, venue shall be Santa Clara County.

E.Dispute Resolution: Landlord and Tenant and
any other party that may become a party to this Lease or be deemed a party to
this Lease including any subtenants agree that, except for any claim by Landlord
for unlawful detainer or any claim within the jurisdiction of the small claims
court (which small claims court shall be the sole court of competent
jurisdiction), any controversy, dispute, or claim of whatever nature arising out
of, in connection with or in relation to the interpretation, performance or
breach of this Lease, including any claim based on contract, tort, or statute,
shall be resolved at the request of any party to this agreement through a two-
step dispute resolution process administered by J.A.M.S. or another judicial
mediation service mutually acceptable to the parties located in Santa Clara
County, California. The dispute resolution process shall involve first,
mediation, followed, if necessary, by final and binding arbitration administered
by and in accordance with the then existing rules and practices of J.A.M.S. or
other judicial mediation service selected. In the event of any dispute subject
to this provision, either party may initiate a request for mediation and the
parties shall use reasonable efforts to promptly select a J.A.M.S. mediator and
commence the mediation. In the event the parties are not able to agree on a
mediator within thirty (30) days, J. A. M. S. or another judicial mediation
service mutually acceptable to the parties shall appoint a mediator. The
mediation shall be confidential and in accordance with California Evidence Code
  1119 et. seq. The mediation shall be held in Santa Clara County, California
and in accordance with the existing rules and practice of J. A. M. S. (or other
judicial and mediation service selected). The parties shall use reasonable
efforts to conclude the mediation within sixty (60) days of the date of either
party's request for mediation.  The mediation shall be held prior to any
arbitration or court action (other than a claim by Landlord for unlawful
detainer or any claim within the jurisdiction of the small claims court which
are not subject to this mediation/arbitration provision and may be filed
directly with a court of competent jurisdiction). Should the prevailing party in
any dispute subject to this Section 19.E attempt an arbitration or a court
action before attempting to mediate, the prevailing party shall not be entitled
to attorney's fees that might otherwise be available to them in a court action
or arbitration and in addition thereto, the party who is determined by the
arbitrator to have resisted mediation, shall be sanctioned by the arbitrator or
judge.

If a mediation is conducted but is unsuccessful, it shall be
followed by final and binding arbitration administered by and in accordance with
the then existing rules and practices of J.A.M.S. or the other judicial and
mediation service selected, and judgment upon any award rendered by the
arbitrator(s) may be entered by any state or federal court having jurisdiction
thereof AS PROVIDED BY CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 1280 ET. SEQ,
AS SAID STATUTES THEN APPEAR, INCLUDING ANY AMENDMENTS TO SAID STATUTES OR
SUCCESSORS TO SAID STATUTES OR AMENDED STATUTES, EXCEPT THAT in no event shall
the parties be entitled to propound interrogatories or request for admissions
during the arbitration process. The arbitrator shall be a retired judge or a
licensed California attorney. The venue for any such arbitration or mediation
shall be in Santa Clara County, California.

NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO
HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE "MEDIATION AND
ARBITRATION OF DISPUTES" PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY
CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE
DISPUTE LITIGATED IN A COURT OR fURY TRIAL.  BY INITIALING IN THE SPACE BELOW
YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE
RIGHTS ARE SPECIFICALLY INCLUDED IN THE "MEDIATION AND ARBITRATION OF DISPUTES"
PROVISION.  IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS
PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE
CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION
IS VOLUNTARY.

WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT
DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE "MEDIATION AND ARBITRATION
OF DISPUTES" PROVISION TO NEUTRAL ARBITRATION.

LANDLORD:  ______       TENANT:  _______

F.Entire Agreement:    This Lease and the
exhibits attached hereto contains all of the agreements and conditions made
between the parties hereto and may not be modified orally or in any other manner
other than by written agreement signed by all parties hereto or their respective
successors in interest.  This Lease supersedes and revokes all previous
negotiations, letters of intent, lease proposals, brochures, agreements,
representations, promises, warranties, and understandings, whether oral or in
writing, between the parties or their respective representatives or any other
person purporting to represent Landlord or Tenant.

G.Entry by Landlord:    Upon prior notice to
Tenant and subject to Tenant's reasonable security regulations, Tenant shall
permit Landlord and his agents to enter into and upon the Premises at all
reasonable times, and without any rent abatement or reduction or any liability
to Tenant for any loss of occupation or quiet enjoyment of the Premises thereby
occasioned, unless caused by Landlord's negligence or willful misconduct, for
the following purposes:  (i) inspecting and maintaining the Premises; (ii)
making repairs, alterations or additions (only if agreed by Tenant) to the
Premises; (iii) erecting additional building(s) and improvements on the land
where the Premises are situated or on adjacent land owned by Landlord; and (iv)
performing any obligations of Landlord under the Lease including remediation of
hazardous materials if determined to be the responsibility of Landlord provided
that Landlord agrees to use reasonable efforts to minimize interference with
Tenant's use.  Tenant shall permit Landlord and his agents, at any time within
one hundred eighty (180) days prior to the Expiration Date (or at any time
during the Lease if Tenant is in default hereunder), to place upon the Premises
"For Lease" signs and exhibit the Premises to real estate brokers and
prospective tenants at reasonable hours.

H.Estoppel Certificates:    At any time during
the Lease Term, each party (the "Responding Party") shall, within ten
(10) days following written notice from the other party (the "Requesting
Party"), execute and deliver to the Requesting Party a written statement
certifying, if true, the following:  (i) that this Lease is unmodified and in
full force and effect (or, if modified, stating the nature of such
modification); (ii) the date to which rent and other charges are paid in
advance, if any; (iii) acknowledging that there are not, to Responding Party's
knowledge, any uncured defaults on Requesting Party's part hereunder (or
specifying such defaults if they are claimed); and (iv) such other information
as Requesting Party may reasonably request.  Any such statement may be
conclusively relied upon by any prospective purchaser or encumbrancer of
Requesting Party's interest in the Premises.  The Responding Party's failure to
deliver such statement within such time shall be conclusive upon the Responding
Party that this Lease is in full force and effect without modification, except
as may be represented by the Requesting Party, and that there are no uncured
defaults in Requesting Party's performance.  Tenant agrees to provide, within
five (5) days of Landlord's request, Tenant's most recent three (3) years of
audited financial statements for Landlord's use in financing the Premises or
Landlord's interest therein.

I.Exhibits:    All exhibits referred to are
attached to this Lease and incorporated by reference.

J.Interest:    All rent due hereunder, if not
paid when due, shall bear interest at the rate of the Reference Rate published
by Bank of America, San Francisco Branch, plus two percent (2%) per annum from
that date until paid in full ("Agreed Interest Rate").  This provision
shall survive the expiration or sooner termination of the Lease.  Despite any
other provision of this Lease, the total liability for interest payments shall
not exceed the limits, if any, imposed by the usury laws of the State of
California.  Any interest paid in excess of those limits shall be refunded to
Tenant by application of the amount of excess interest paid against any sums
outstanding in any order that Landlord requires.  If the amount of excess
interest paid exceeds the sums outstanding, the portion exceeding those sums
shall be refunded in cash to Tenant by Landlord.  To ascertain whether any
interest payable exceeds the limits imposed, any non-principal payment(including
late charges) shall be considered to the extent permitted by law to be an
expense or a fee, premium, or penalty rather than interest.

K.Modifications Required by Lender:     If any
Lender of Landlord or ground lessor of the Real Property Requires a modification
of this Lease that will not increase Tenant's cost or expense or materially or
adversely change Tenant's rights and obligations, this Lease shall be so
modified and Tenant shall execute whatever documents are required and deliver
them to Landlord within ten (10) days after the request.

L.No Presumption Against Drafter:    Landlord
and Tenant understand, agree and acknowledge that this Lease has been freely
negotiated by both parties; and that in any controversy, dispute, or contest
over the meaning, interpretation, validity, or enforceability of this Lease or
any of its terms or conditions, there shall be no inference, presumption, or
conclusion drawn whatsoever against either party by virtue of that party having
drafted this Lease or any portion thereof.

M.Notices:    All notices, demands, requests,
or consents required to be given under this Lease shall be sent in writing by
U.S. certified mail, return receipt requested, or by personal delivery or by a
nationally recognized overnight courier addressed to the party to be notified at
the address for such party specified in Section 1 of this Lease, or to such
other place as the party to be notified may from time to time designate by at
least fifteen (15) days prior notice to the notifying party.  When this
Lease requires service of a notice, that notice shall replace rather than
supplement any equivalent or similar statutory notice, including any notices
required by Code of Civil Procedure Section 1161 or any similar or successor
statute.  when a statute requires service of a notice in a particular manner,
service of that notice (or a similar notice required by this lease) shall
replace and satisfy the statutory service-of-notice procedures, including those
required by Code of Civil Procedure Section 1162 or any similar or successor
statute.

N.Property Management:    No property
management fee shall be payable to Landlord.

O.Rent:    All monetary sums due from Tenant
to Landlord under this Lease, including, without limitation those referred to as
"additional rent", shall be deemed as rent.

P.Representations:    Tenant acknowledges that
neither Landlord nor any of its employees or agents have made any agreements,
representations, warranties or promises with respect to the Premises or with
respect to present or future rents, expenses, operations, tenancies or any other
matter.  Except as herein expressly set forth herein, Tenant relied on no
statement of Landlord or its employees or agents for that purpose.

Q.Rights and Remedies:    All rights and
remedies hereunder are cumulative and not alternative to the extent permitted by
law, and are in addition to all other rights and remedies in law and in
equity.

R.Severability:    If any term or provision of
this Lease is held unenforceable or invalid by a court of competent
jurisdiction, the remainder of the Lease shall not be invalidated thereby but
shall be enforceable in accordance with its terms, omitting the invalid or
unenforceable term.

S.Submission of Lease:    Submission of this
document for examination or signature by the parties does not constitute an
option or offer to lease the Premises on the terms in this document or a
reservation of the Premises in favor of Tenant.  This document is not effective
as a lease or otherwise until executed and delivered by both Landlord and
Tenant.

T.Subordination:    This Lease is subject and
subordinate to ground and underlying leases, mortgages and deeds of trust
(collectively "Encumbrances") which may now affect the Premises, to
any covenants, conditions or restrictions of record, and to all renewals,
modifications, consolidations, replacements and extensions thereof; provided,
however, if the holder or holders of any such Encumbrance ("Holder")
require that this Lease be prior and superior thereto, within seven (7) days
after written request of Landlord to Tenant, Tenant shall execute, have
acknowledged and deliver 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, Holder agrees to recognize Tenant's rights under this Lease as
long as Tenant is not then in default beyond the expiration of any applicable
cure period and continues to pay Base Monthly Rent and additional rent and
observes and performs all required provisions of this Lease. Within ten (10)
days after Landlord's written request, Tenant shall execute any documents
required by Landlord or the Holder to make this Lease subordinate to any lien of
the Encumbrance.  If Tenant fails to do so, then in addition to such failure
constituting a default by Tenant, it shall be deemed that this Lease is so
subordinated to such Encumbrance. Notwithstanding anything to the contrary in
this Section, 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.

This Lease constitutes a sublease under that certain
Ground Lease dated March 5, 1999 (the "Existing Ground Lease") between The
Sobrato 1979 Revocable Trust, As Amended ("Master Landlord"), as landlord and
Landlord, as tenant, covering all of the real property within the Project, a
copy which has been provided to Tenant, and under the Parcel Lease described in
the next sentence. In connection with the subdivision of the Project as
contemplated by Section 2.C above, it is anticipated that a separate Parcel
Lease (as defined in the Existing Ground Lease) will be entered into between
Master Landlord, as landlord, and Landlord, as tenant, for the lot within which
the Building will be constructed.  As used in this Lease, "Master Lease" shall
mean the Existing Ground Lease, until such time as the Parcel Lease is entered
into, and thereafter shall mean the Parcel Lease. Notwithstanding this Section
21.T above, concurrently with the execution of this Lease by Landlord and
Tenant, Landlord and Tenant shall execute in recordable form, and Landlord shall
cause Master Landlord to execute in recordable form, the Subordination,
Nondisturbance and Attornment Agreement attached hereto as Exhibit "G" (the
"SNDA").  Landlord shall cause the SNDA to be recorded at Landlord's cost in the
Official Records of San Mateo County, California within five (5) days after this
Lease is executed by Landlord and Tenant. Similarly, in connection with the
Parcel Lease, within ten (10) days after Landlord's request, Landlord and Tenant
shall execute in recordable form, and Landlord shall cause Master Landlord to
execute in recordable form, a Subordination, Nondisturbance and Attornment
Agreement substantially in the form of the SNDA (the "Revised SNDA"), modified
to refer to the Parcel Lease, Memorandum of Parcel Lease to be recorded in
connection with the Parcel Lease  and the revised Premises description, rather
than the Original Ground Lease, the Memorandum of Ground Lease referenced in the
SNDA and the original Premises described in this Lease.  Landlord shall cause
the Revised  SNDA to be recorded at Landlord's cost in the Official Records of
San Mateo County, California  immediately after recordation of the Memorandum of
Lease recorded for the Parcel Lease.

Notwithstanding the foregoing, Tenant shall not be
required to subordinate its interest under this Lease unless (i) such
subordination' does not materially increase Tenant's obligations, or materially
decrease its rights under this Lease, and (ii) Landlord first obtains from the
holder of the mortgage, deed of trust, or other instrument of security to which
this Lease is to become subordinated a written agreement that provides
substantially  that as long as Tenant performs its obligations under this Lease,
no foreclosure of, deed given in lieu of foreclosure of, or sale under the
encumbrance, and no steps or procedures taken under the encumbrance, shall
affect Tenant's rights hereunder.

U.Survival of Indemnities:  All
indemnification, defense, and hold harmless obligations of Landlord and Tenant
under this Lease shall survive the expiration or sooner termination of the
Lease.

V.Time:    Time is of the essence
hereunder.

W.Transportation Demand Management
Programs:  Should a government agency or municipality require Landlord to
institute TDM (Transportation Demand Management) facilities and/or program,
Tenant agrees that the cost of TDM imposed facilities required on the Premises,
including but not limited to employee showers, lockers, cafeteria, or lunchroom
facilities, shall be paid by Tenant.  Further, any ongoing costs or expenses
associated with a TDM program which are required for the Premises and not
provided by Tenant, such as an on-site TDM coordinator, shall be provided by
Landlord with such reasonable costs being included as additional rent and
reimbursed to Landlord by Tenant within thirty (30) days after demand. If TDM
facilities and programs are instituted on a Project wide basis, Tenant shall pay
its proportionate share of such costs in accordance with Section 8 above.

 

 

 

IN WITNESS WHEREOF, Landlord and Tenant have executed
this Lease on the day and year first above written. 

Landlord:  SOBRATO INTERESTS IIITenant:
SIEBEL SYSTEMS, INC.

a California Limited Partnershipa Delaware
Corporation

 

By:  _____________________________By:
_____________________________

Its:  General PartnerIts:
_____________________________

 

Master Landlord:  THE SOBRATO 1979 REVOCABLE TRUST

 

By:  _____________________________

Its:  Trustee

 

EXHIBIT "A" - Building and Project

 

Exhibit "B" - Not applicable

 

EXHIBIT "C" - Parcel Map & Declaration of
Covenants and Grant of Easements

 

EXHIBIT "D" - Shell Plans and Specifications

(sheet references to be attached)

 

EXHIBIT "E" - Building Shell Definition

1.Building Structure

(a)All foundations to include footings, piling,
grade beams, foundation walls or other building foundation components required
to support the building structure.

(b)Concrete slab supported on beams and columns above
the parking podium and any other reinforcing or structural connections that may
be necessary or required as specified by structural engineer.

(c)Complete structural framing system comprised of
rolled steel beams, columns, and braced-frame steel construction with corrugated
metal deck and concrete fill,  all members required by code to be fireproofed.
Upper floor systems  provide a minimum of 3" concrete over metal deck and are
designed for an 80 lb. live load plus 20 lb. partition load.  Structural framing
will include intermediate beams for HVAC units at the roof, and for major shafts
on each floor.  A roof screen consistent with the design of the building and
acceptable to the local Building and Planning Departments is included.

(d)Tinted high performance glass including required
caulking and sealants.  Tinted reflective glass window wall system with granite
and stainless steel accents.  Two (2) pair of lobby doors, and two (2) exit
doors per building.  All shell doors will be fitted with electric locks and
conduit to J-boxes ready for connection to the Tenant's security system.

(e)Four (4) ply built up roofing by Owens-Corning,
John Manville, or equal and all flashings over a light weight concrete on
corrugated metal deck roof system.  Title 24 code required roof insulation is
included.

(f)Exterior painting where required with Texcoat
textural paint and all caulking of exterior concrete joints in preparation for
painting.

(g)One (1) steel fire stair at perimeter of building,
and two (2) interior fire stairs which will extent to the roof.

(h)At grade loading area with screening and scissors
lift external of building.

(i)Riser for Building sprinkler system (no sprinkler
grid or drops).

2.Podium Garage Structure

(a)Podium garage structure with access ramps,
fire sprinkler system, emergency exit stairways, and mechanical venting (if
required).

(b)Lighting in podium parking to a minimum level per
code.

3.Sitework

(a)All work outside the building perimeter walls
shall be considered site work for the Building Shell and shall include asphalt
concrete paving, landscaping, landscape irrigation, storm drainage, utility
service laterals, curbs, gutters, sidewalks, specialty paving (if required),
retaining walls, planters, trash enclosure, parking lot and landscape lighting
and other exterior lighting per code.  All fountains and podium landscaping
shall also be considered site work for the Building Shell.

(b)Paving sections for automobile and truck access
shall be according to the Geologic Soils Report.

(c)All parking lot striping to include handicap
spaces and signage.

(d)Underground site storm drainage system shall be
connected to the city storm system main.

4.Plumbing

(a)Underground sanitary sewer lateral connected
to the city sewer main in the street and stubbed to the core of the
building.

(b)Domestic water mains connected to the city water
main in the street and stubbed to the building.

(c)Roof drain leaders and downspouts piped and
connected to the site storm drainage system.

(d)Gas lines connected to the city or public utility
mains and run to gas meters adjacent to, and in close proximity to the building.
Meter supplied by utility company.

5. Electrical

(a)A primary and secondary electrical service
from the street to the building electrical room in the garage podium including
underground conduit, wire feeders, and transformer pads.  Transformer supplied
by utility company.  

(b) Two 4" Underground conduit from the street to the
building for telephone trunk lines by Pacific Telephone. 

(c)Two 4" conduit from the building to each of the
adjacent buildings for future data connections.

(d)An electrically operated landscape irrigation
system, with controller, that is a complete and functioning system.

(e) Underground conduit from the building to the main
fire protection system post indicated valve (PIV) for installation of
supervisory alarm wiring.

6.General

(a)All construction shall conform to State and
Local Building Codes, Title 24 Regulations, and shall be ADA Compliant.

(b)All building shell work shall be constructed as
described above and as show on the drawings listed in the attached Exhibit
(TBD).

(c)All other costs shall be deemed Tenant
Improvements.

EXHIBIT "F" - Tenant Improvement Plans and
Specifications

(sheet references to be attached)

 

EXHIBIT "G" - Subordination, Nondisturbance
and Attornment Agreement1900powell

 

 

 

WATERGATE OFFICE LEASE

 

 

 

 

 

WATERGATE TOWER ASSOCIATES,

A California Limited Partnership,

Landlord

 

 

And

 

 

SCOPUS TECHNOLOGY, INC.,

A California Corporation,

Tenant

 

 

 

 

 

TABLE OF CONTENTS

 

 

 

 

	PARTIES; BASIC LEASE PROVISIONS; DEFINED TERMS

	Parties
	Basic Lease Provisions
	Defined Terms

	PREMISES; COMMON AREAS; TENANT PARKING

	Demise of Premises
	Condition of Premises
	Common Areas
	Tenant Parking

	TERM

	Period
	Term Commencement
	Delayed Occupancy
	Holding Over

	BASE RENT; SECURITY DEPOSIT; OPERATING COSTS; TAXES

	Base Rent
	Security Deposit
	Operating Costs
	Taxes Payable By Tenant
	Late Charges and Interest

	USES

	Authorized
	Suitability
	Insurance
	Laws
	Nuisance
	Rules and Regulations

	SERVICES AND UTILITIES

	Basic Services by Landlord
	Additional Heating and Air Conditioning
	Special Apparatuses
	Interruption in Services
	Tenant's Other Utilities

	TENANT'S ALTERATIONS; PROTECTION AGAINST LIENS

	Landlord's Consent Required
	Removal of Tenant's Alterations
	Protection Against Liens

	MAINTENANCE AND REPAIRS

	Landlord's Obligations
	Tenant's Obligations

	INDEMNITY AND EXEMPTIONS OF LANDLORD

	Indemnity
	Exemption of Landlord From Liability

	INSURANCE

	Tenant's Insurance
	Landlord's Insurance
	Subrogation Waiver

	ASSIGNMENT AND SUBLETTING

	Landlord's Consent Required
	Tenant's Application
	Required Provisions
	Bonus Rent
	Fees for Review
	No Release of Tenant
	Assumption of Obligations
	Deemed Transfers
	Landlord's Option to Recapture

	SUBORDINATION AND ATTORNMENT

	Subordination
	Attornment
	Nonmaterial Amendments

	DEFAULT BY TENANT

	Acts Constituting Default
	Landlord's Remedies

	DEFAULT BY LANDLORD

	Existence of Default
	Mortgagee's Right To Cure
	Judgment Against Landlord

	CONDEMNATION

	Termination Due To Taking
	Award For Taking
	No Termination Due To Taking

	DAMAGE AND DESTRUCTION

	Partial Damage - Insured
	Partial Damage - Uninsured
	Total Destruction
	Landlord's Obligations
	Waiver by Tenant

	DEFINITIONS

	"Base Rent"
	"Base Year"
	"Basic Lease Provisions"
	"Bonus Rent"
	"Building"
	"Commencement Date"
	"Common Areas"
	"Environmental Damages"
	"Environmental Requirements"
	"Expiration Date"
	"Hazardous Materials"
	"Increased Operating Costs'
	"Landlord's Work"
	"Lease Date"
	"Mortgagee"
	"Office Complex"
	"Operating Costs"
	"Overdue Rates"
	"Parking Charge"
	"Parking Facilities"
	"Premises"
	"Rules and Regulations"
	"Security Deposit"
	"Scope of Work"
	"Subsequent Year"
	"Substantial Completion"
	"Taking"
	"Tenant Parking"
	"Tenant's Share"
	"Term"

	MISCELLANEOUS PROVISIONS

	Estoppel Certificates
	Surrender of Premises
	Light and Air
	Waiver
	Attorneys' Fees
	Notices
	Merger
	Substituted Premises
	Headings
	Time and Applicable Law
	Successors and Assigns
	Entry by Landlord
	Entire Agreement
	Severability
	Signs
	Execution by Landlord
	Brokers
	Name of building
	Nonrecordability of Lease
	Construction
	Inability to Perform
	Authority
	Quiet Enjoyment

	EXTRA PARKING PERMITS  
	LETTER OF CREDIT/SECURITY DEPOSIT
	RIGHT TO NEGOTIATE LEASE OF ADDITIONAL SPACE

	Grant of Right
	Notice of Space Requirement
	Exercise of Negotiation Right
	Limitation of Right

22.TERMINATION OF EXISTING LEASE

 

 

 

 

 

 

          WATERGATE OFFICE LEASE

1.      PARTIES BASIC LEASE PROVISIONS; DEFINED TERMS

          1.1     Parties. This Watergate Office Lease ("Lease") is entered
into in the City of Emeryville, County of Alameda, State of California,
between Watergate Tower Associates, a California limited partnership
("Landlord"), and Scopus Technology, Inc,, a California corporation
("Tenant").

          1.2     Basic Lease Provisions. The following Basic Lease Provisions
constitute an integral part of this Lease, and each reference in this
Lease to the Basic Lease Provisions shall mean the provisions set forth
in this Paragraph 1.2. Section references in this Paragraph 1.2 are to
the section in which the particular Basic Lease Provision is first
discussed. In the event of any conflict between the Basic Lease
Provisions and the remainder of the Lease, the latter shall control.

      Lease  Date:          August 24,  1994

      Address of Landlord:  2000 Powell Street,  Suite 1600
                            Emeryville, CA 94608

      Address of Tenant:    Before Lease Execution:
                            1900 Powell Street
                            Suite 900
                            Emeryville, CA  94608

                            After Lease Execution;
                            1900 Powell Street
                            Suite 700
                            Emeryville, CA  94608

Section 2:
      Premises:             Suite 700
      Building:             Watergate Tower 1
                            1900 Powell Street
                            Emeryville, CA  94608

      Premises Rentable Area:     18,539 square feet
      Premises Usable Area:       16,406 square feet
      Building Rentable Area:     215,978 square feet
      Tenant Parking:             Forty-nine (49)
      Extra Parking:              Permits Sixteen (16)
                                  permits subject to Section
                                  19, hereinbelow
      Parking Charge:             $25.00 per permit

Section 3:
      Term:                Five (5) years
      Commencement Date:   October 16, 1994
      Expiration Date:     October 15, 1999

Section 4:
      Base Rent:
                October 16, 1994 - October 31, 1994:
                   $9,722.22
                November 1, 1994 - November 30, 1994:
                   $18,836.80 per month
                December 1, 1994 - December 31, 1994:
                   $23,636.80 per month
                January 1, 1995 - September 30, 1995:
                   $27,577.40 per month
                October 1, 1995 - September 30, 1997:
                   $31,516.34 per month
                October 1, 1997 - October 15,  1999:
                   $32,443.25 per month

      Security Deposit:  $32,443.25, subject to Section 20 hereinbelow

      Base Year:              1995
      Tenant's Share:         8.58 percent

          1.3 Defined Terms. Words and phrases which are capitalized in this
Lease (other than words which are capitalized solely to donate the
beginning of sentences) are defined terms. The definitions of such words
and phrases are set forth in Section 17 of this Lease.

2.      PREMISES COMMON AREAS; TENANT PARKING

           2.1 Demise of Premices. on and subject to the terms, covenants and
conditions set forth in this Lease, Landlord demises the Premises to
Tenant and Tenant rents and hires the Premises from Landlord. The usable
and rentable area of the Premises, and the rentable area of the Building,
for all purposes under this Lease, are stipulated to be as specified in
the Basic Lease Provisions. Landlord shall not be liable to Tenant, nor
shall Tenant have any claim against Landlord or defense to the
enforcement of this Lease, if it is determined that the actual rentable
or usable area of the Premises or the rentable area of the Building
differs from that specified in the Basic Lease Provisions.

          2.2 Condition of Premises. Except as otherwise expressly provided
in a Scope of Work executed by Landlord and Tenant concurrently with
their execution of this Lease, Tenant shall accept the Premises in an "as
is" condition on the date the Term commences and Landlord shall have no
obligation to improve, alter, remodel or otherwise modify the Premises
prior to Tenant's occupancy. Landlord shall construct or install in the
Premises only the improvements specified in the Scope of Work, The Scope
of Work, if any, will be attached as Exhibit B to this Lease, and ,
subject to events of force majeure and Tenant delays, Landlord shall
cause the Substantial Completion of Landlord's Work pursuant to the Scope
of Work on or before the Commencement Date.

          2.3 Common Areas, During the Term, Tenant shall have the
nonexclusive right to use of the Common Areas for their intended and
usual purpose. However, the manner in which the Common Areas are
maintained shall be at the sole reasonable discretion of landlord and use
thereof shall be subject to the Rules and Regulations. Landlord reserves
the right to make alterations, additions or deletions to, or to change
the location of elements of the Common Areas, Building Or Office Complex,
and to use the roof, exterior walls and the area above and beneath the
Premises, together with the right to install, use, maintain and replace
equipment, machinery, pipes, conduits and wiring through the Premises,
which serve other parts of the Building or Office Complex, in a manner
and in locations which do not unreasonably interfere with Tenant's use of
or access to the Premises.

          2.4 Tenant Parking. Tenant shall have the right to obtain the
number of parking permits designated as Tenant Parking in the Basic Lease
Provisions, and each such permit shall authorize Tenant or its employees
to park one passenger automobile in the Parking Facilities. Issuance of
such parking permits shall be subject to Tenant's payment of the Parking
Charge for each permit specified in the Basic Lease Provisions, which
Parking Charge shall be payable on the first day of each calendar month
during the Term and may be increased by Landlord at any time, and from
time to time, during the Term upon not less than thirty (30) days' prior
written notice to Tenant. Tenant and its employees shall at all times
observe such terms and conditions and charges as may be established by
Landlord from time to time concerning the operation and use of the
Parking Facilities. Tenant's employees shall not be entitled to park in
areas located in the Parking Facilities designated by Landlord for
reserved parking or for use by visitors to the Office Complex.

3. TERM

          3.1 Period. The Term shall be for the period specified in the Basic
Lease Provisions. The Term shall commence on the Commencement Date end
shall end on the Expiration Date, as such dates are determined under
Paragraph 3.2 below, unless sooner terminated pursuant to any provision
of this Lease.

          3.2 Term Commencement. The anticipated Commencement Date and the
corresponding Expiration Date are specified in the Basic Lease
Provisions. However, the actual Commencement Date shall be the earlier of
(a) the date Tenant first occupies any part of the Premises, or (b) the
date of Substantial Completion of the Landlord's Work or (c) the date
established by Landlord in the event of a delay by Tenant, as provided in
Paragraph 3.3(b) below; and the Expiration Date shall be adjusted so that
the period between the actual Commencement Date and the Expiration Date
is equal to the Term specified in the Basic Lease Provisions. If the
actual Commencement I-ease Date and the Expiration Date differ from those
inserted in the Base Lease Provisions as of the Lease Date, then promptly
after the Commencement Date Landlord and Tenant shall execute a written
acknowledgment of the Commencement Date and the Expiration Late, and
attach it as Exhibit C to this Lease,

          3.3     Delayed Occupancy.

                         (a) Landlord shall Substantially Complete any Landlord's
Work on or before the Commencement Date specified in the Basic Lease
Provisions, provided, however, that the Commencement Date for purposes of
Landlord's obligation with respect to Landlord's Work shall be extended
one (1) day for each day (i) that the Lease is not fully executed by
August 22, 1994, (ii) that Tenant causes a delay in Landlord's Work, and
(iii) that an event of force majeure delays Landlord's Work. However,
this Lease shall not be void or voidable, nor shall Landlord or its
agents or contractors have any liability to Tenant, by reason of
Landlord's failure to substantially complete Landlord's Work by the
Commencement Date specified in the Basic Lease Provisions, or by reason
of Landlord's failure to deliver possession of the Premises due to any
other cause beyond Landlord's reasonable control, arid postponement of
Tenant's rental obligation prior to delivery of possession of the
Premises shall be Tenant's exclusive remedy and in sole satisfaction of
all claims Tenant might otherwise have by reason of Landlord's failure to
deliver the Premises by the Commencement Date specified in the Basic
Lease Provisions. Notwithstanding the foregoing, if the Premises are not
Substantially Completed on or before the termination date under the
Existing Lease (as defined in Section 22) or the date Tenant's right to
occupy a portion of its existing space on the ninth floor of the Building
under a certain sublease with Preferred Health Network ("Sublease")
expires, provided such delay in Landlord's Work has not been caused by
Tenant and the termination of the Existing Lease or the Sublease, as the
case may be, does not result from Tenant's default, Tenant shall have the
right to continue to occupy its entire existing space on the ninth floor
of the Building on the same terms and conditions as the Existing Lease.

                         (b) Time is of the essence in connection with the
delivery to Landlord of each and every drawing, plan, specification,
schedule or other item required to be given by Tenant to Landlord or to
be approved by Tenant pursuant to the schedule in and provisions of the
Scope of Work. Accordingly, notwithstanding any contrary provision of
this Lease, if Landlord is delayed in the Substantial Completion of
Landlord's Work as a result of (i) Tenant's failure to approve plans,
specifications, changes, cost estimates and other items within the time
limits specified therefor in the Scope of Work, or (ii) any change by
Tenant in said plans, specifications, or other items after the expiration
of such time limits, or ;iii) any default by Tenant relating to its
obligations hereunder or under the Scope of Work, then, in any or all
such instances and without limitation as to any other right or remedy
available to Landlord, Landlord may under clause (c) of Paragraph 3.2
determine in its sole reasonable discretion that the actual Commencement
Date is the date that Substantial Completion of Landlord's Work would
have occurred but for such delay.

          3.4 Holding Over. Tenant shall not be entitled to remain in
possession of the Premises after the Expiration Date or after earlier
termination of this Lease, except with Landlord's prior written consent.
Any such continuance of possession with Landlord's consent shall
constitute a month-to-month tenancy on all of the terms and conditions of
this Lease, except that the Base Rent shall be 150% of the Base Rent in
effect as of the Expiration Date or the earlier termination date. Any
such continuance in possession without Landlord's consent (or after such
consent has been withdrawn upon thirty (30) days' notice to Tenant) shall
constitute an unlawful detention of the Premises; and Tenant shall
indemnify, defend and hold Landlord harmless from all claims, losses or
liability resulting from Landlord's inability to timely deliver
possession of the Premises to any succeeding tenant.

4.      BASE RENT; SECURITY DEPOSIT; OPERATING COSTS; TAXES

          4.1 Base Rent. Tenant shall pay to Landlord as monthly Base Rent
for the Premises, in advance, without deduction, setoff, prior notice or
demand, the sum specified in the Basic Lease Provisions. The first
month's Base Rent shall be paid upon Tenant's execution of this Lease,
and the Base Rent for each calendar month thereafter during the Term
shall be paid on the first day of each such calendar month. If the
Commencement Date occurs ors a day other than the first day of a calendar
month, the Base Rent payable for the first calendar month of the Term
shall be prorated on the basis which the number of days of the Term in
the first month bears to the total number of days in such month; and, in
such case, Tenant shall pay such prorated Base Rent to Landlord on the
Commencement Date, and the first month's Base Rent paid upon execution of
this Lease shall be credited against the Base Rent for the second
calendar month. If the Term ends on a day other than the last day of a
calendar month, the Base Rent payable for the last calendar month of the
Term shall be prorated on the basis which the number of days of the Term
in the last calendar month tears to the total number of days in such
month.

          4.2     Security Deposit.

                         (a) Upon Tenant's execution of this Lease, Tenant shall
deposit with Landlord the sum specified as the Security Deposit in the
Basic Lease Provisions, which shall be held by Landlord as security for
the faithful performance by Tenant of all of the terms, covenants, and
conditions of this Lease, it being expressly understood and agreed that
the Security Deposit is not an advance deposit for rent or a measure of
Landlord's damages in case of Tenant's default. If at any time Tenant's
Base Rent is increased, the Security Deposit shall also be increased by
the same percentage Ds the increase in Base Rent and Tenant shall, within
ten (101 days after receipt of notice of such increase in Base Rent,
deposit cash with Landlord in an amount sufficient to affect such
adjustment.

                         (b)     The Security Deposit may be retained, used or
applied by Landlord to remedy any default by Tenant, to repair damage
caused by Tenant to any part of the Premises or the Building, and to
clean the Premises upon expiration or earlier termination of this Lease,
as well as to reimburse Landlord for any amount which Landlord may 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.
If any portion of the Security Deposit is so used or applied, Tenant
shall, within ten 110) days after written demand therefor, deposit cash
with Landlord in an amount sufficient to restore the Security Deposit to
the full amount required hereunder, and Tenant's failure to do so shall
be a material breach of this Lease. Landlord shall not be required to
keep the Security Deposit separate from its general funds, and Tenant
shall not be entitled to interest on, or any other compensation for,
Landlord's retention of the Security Deposit. Tenant may not elect to
apply any portion of the Security Deposit toward payment of Base Rent or
any other amounts payable by Tenant under this Lease, although Landlord
may elect to do so in the event Tenant is in default or is insolvent, If
Tenant shall fully and faithfully perform every provision of this Lease
to be performed by it, the Security Deposit or any balance thereof shall
be returned to Tenant at Tenant's last known address (or, at Landlord's
option, to the last assignee of -tenant's interest hereunder) within
thirty (30) days after the Term has ended and Tenant has vacated the
Premises.

          4.3     Operating Costs. Tenant shall pay to Landlord Tenant's Share
of the Increased Operating Costs as follows:

                         (a) Landlord shall submit to Tenant before January 1 of
each Subsequent Year, or as soon thereafter as Landlord has sufficient
data, a reasonably detailed statement showing the estimated Increased
Operating Costs for such Subsequent Year, which determination shall be
made by Landlord based upon experience with actual costs and
projections. At the first monthly Base Rent payment date following the
submittal of such statement and at each succeeding monthly rent payment
date thereafter during the Subsequent Year, Tenant shall pay to Landlord
an amount equal to one-twelfth (1112th) of the Increased Operating
Costs. If Landlord does not submit said statement to Tenant prior to
January 1 of any Subsequent Year, Tenant shall continue to pay Tenant's
Share of the Increased Operating Costs at the then existing rate until
such statement is submitted and, thereafter, at the monthly Base Rent
payment date next following the submittal of such statement Tenant shall
pay Tenant's Share of the Increased Operating Costs based on the rate
set forth in such statement plus, if the new rate is greater than the
old rate, the difference accrued from January 1 of such Subsequent Year.
Landlord may revise such estimated Increased Operating Costs at the end
of any calendar quarter.

                         (b) On or before March 31 of the second and each
succeeding Subsequent Year or as soon thereafter as Landlord has
sufficient data, Landlord shall submit to Tenant a reasonably detailed
statement showing the actual Building Operating Costs paid or incurred by
Landlord during the previous calendar year. If Tenant's Share of the
actual Increased Operating Costs is less than the amount of Tenant's
Share of the estimated Increased Operating Costs for the previous
Subsequent Year theretofore paid by Tenant, Landlord shall credit such
difference against the next Increased Operating Costs payments coming
due. If Tenant's Share of the actual Increased Operating Costs is more
than the amount of Tenant's Share of the estimated Increased Operating
Costs for such previous Subsequent Year theretofore paid by Tenant,
Tenant shall pay to Landlord the full amount of such difference at the
monthly Base Rent payment date next following the submittal of such
statement to Tenant.

                         (c) If the Expiration Date or the date of earlier
termination of this Lease is other than December 31, the Operating Costs
for both the Base Year and the last Subsequent Year shall be prorated
based on what the number of days in the Term in the last Subsequent Year
bears to 365; and any amounts owed or to be credited pursuant to
Paragraph shall be paid at the time in the last Subsequent Year, or in
the calendar year immediately following the last Subsequent Year, that
such amount is calculated pursuant to Paragraph 4.3(c).

          4.4     Taxes Payable By  Tenant, Tenant shall pay before delinquency
any and all taxes levied or assessed and which become payable by Tenant
(or directly or indirectly by Landlord) during the Term (excluding,
however, state and .federal personal or corporate income taxes measured
by the income of Landlord from all sources, capital stock taxes, and
estate and inheritance taxes, collectively, "Landlord's Taxes"), whether
or not now customary or within the contemplation of the parties hereto,
which are based upon, measured by or otherwise calculated with respect
to: (a) the gross or net rental income of Landlord under this Lease,
including, without limitation, any gross receipts tax levied by any
taxing authority as a supplemental tax, or any other gross income tax or
excise tax levied by any taxing authority with respect to the receipt of
the rental payable hereunder as a supplemental tax, but specifically
excluding Landlord's Taxes; (b1 the value of Tenant's equipment,
furniture, fixtures or other personal property located in the Premises;
(c1 the possession, lease, operation, management, maintenance,
alteration, repair, use or occupancy by Tenant of the Premises or any
portion thereof; (d) the value of any leasehold improvements, alterations
or additions made in or to the Premises, regardless of whether title to
such improvements, alterations or additions shall be in Tenant or
Landlord; or (e) this transaction or any document to which Tenant is a
party creating or transferring an interest or an estate in the Premises.

          4.5 Late Charges and Interest. Ail amounts payable under this Lease
shall be paid in lawful money of the United States of America. Any amount
of Base Rent, Tenant's Share of Increased Operating Costs, Parking
Charges or any other amount payable under this Lease which is not paid
within ten (1 0) days after it is due shall be subject to a late charge
of 5% of the amount unpaid, Any amount due to Landlord that is not paid
when due shall bear interest at the Overdue Rate, except that no interest
shall accrue for the month in which a late charge is assessed. Tenant's
failure to perform any monetary obligations under this Lease shall have
the same consequences as Tenant's failure to pay Base Rent.

5.     USES

          5.1 Authorized. Tenant shall use the Premises solely for general
office purposes and for no other purpose. Tenant shall not use or permit
or suffer the Premises or any part thereof to be used for any purpose
other than the purpose expressly authorized herein.

          5.2 Suitability, Tenant acknowledges that neither Landlord nor any
agent of Landlord has made any representation or warranty with respect to
the Premises, the Building or the Office Complex, or with respect to the
suitability of same for the conduct of Tenant's business, except as
expressly provided in this Lease. Tenant's acceptance of possession of
the Premises shall conclusively establish that the foregoing were at such
time in satisfactory condition.

          5.3 Insurance. Tenant shall not do or suffer anything to be done in
or about the Premises, nor shall Tenant bring or allow anything to be
brought into the Premises, which will in any way increase the rate of any
fire insurance or other insurance upon the Building or its contents,
cause a cancellation of said insurance or otherwise affect said insurance
in any manner: provided, however, that Tenant's business as a computer
software vendor, in particular Tenant's proposed electrical usage as
shown on the Final Plans, shall be deemed to comply with this Section
5.3,

          5.4  Laws. Tenant shall not do or suffer anything to be done in or
about the Premises which will in any way conflict with any law, statute,
ordinance or other governmental rule,  regulation or requirement now in
force or which may be subsequently enacted or promulgated. Tenant shall,
at its sole cost and expense, promptly comply with each and all of said
governmental measures and also with the requirements of any board of fire
underwriters or other similar body now or hereafter constituted to deal
with the condition, use or occupancy of the Premises, excluding
structural changes not related to or affected by Tenant's alterations,
additions or improvements. Without limiting the generality of the
foregoing, Tenant will maintain throughout the Term a copy of the most
current list of chemicals known to the State of California to cause
cancer or reproductive toxicity, as published by the State Health and
Welfare Agency in accordance with the Safe Drinking Water and Toxic
Enforcement Act of 1986 ("Proposition 65"). Tenant will monitor the
chemicals Tenant maintains on the Premises and will comply with both the
warning requirements and the discharge prohibitions of Proposition 65 for
all chemicals on the Premises that appear on such list. The judgment of
any court of competent jurisdiction or the admission 8f Tenant in any
judicial action, regardless of whether Landlord is a party thereto, that
Tenant has violated any of said governmental measures or requirements
shall be conclusive of that fact as between Landlord and Tenant.

          5.5 Nuisance. Tenant shall not place or permit to be placed on any
floor a load exceeding the floor load which such floor was designed to
carry. Tenant also shall not do or suffer anything to be done in or about
the Premises which will in any way obstruct or interfere with the rights
of other tenants or occupants of the Building or injure or annoy said
tenants or occupants, nor shall Tenant use or suffer the Premises to be
used for any unlawful purposes, In no event shall Tenant cause or permit
any nuisance in or about the Premises, and no loudspeakers or similar
devices shall be used without the prior written approval of Landlord,
which approval may be withheld in Landlord's sole discretion. Tenant
shall not commit or suffer to be committed any waste in or upon the
Premises. The provisions of this paragraph are for the benefit of
Landlord only and shall not be construed to be for the benefit of any
tenant or occupant of the Building.

          5.6 Rules and Regulations. Tenant shall comply with the Rules and
Regulations for the Building, together with all modifications and
additions thereto adopted by Landlord from time to time. If there is any
conflict between the Rules and Regulations and the provisions of this
Lease, the provisions of this Lease shall prevail. Subject to Tenant's
right to quiet enjoyment of the Premises under Section 18.23, Landlord
shall not be responsible to Tenant for the nonperformance of any of the
Rules and Regulations by any other tenants or occupants of the Building,

6.      SERVICES AND UTILITIES

          6.1 Basic Services by Landlord. Provided Tenant is not in default
under this Lease, and subject to the provisions elsewhere in this Lease
and to the Rules arid Regulations of the Building, Landlord shall furnish
the Premises with: (a) water, sewage and electricity suitable in
Landlord's judgment for the intended use of the Premises and for the
operation of Tenant's business as a computer software vendor, provided
Tenant's electrical usage does not exceed Tenant's proposed usage as
shown on the Final Plans; (b) heat and air conditioning between 8:00 a.m.
and 5:00 p.m. on days other than Saturdays, Sundays arid generally
recognized holidays, in an amount reasonably required in Landlord's
judgment for the comfortable occupation of the Premises; (c) elevator
service, which shall mean service by non-attended automatic elevators or
elevators with attendants, either or both, at the option of Landlord; and
(d) daily janitorial service (five nights per week) similar to that which
is provided in comparable office buildings in the Oakland/Emeryville
area. Landlord shall maintain the Common Areas in a clean and orderly
manner and in a good state of repair,

          6.2     Additional Heating and Air Conditioning. Landlord shall use
reasonable efforts to provide additional or after-hours heating or air
conditioning at Tenant's request, provided Tenant  pays to Landlord the
cost of such services as determined solely by Landlord based upon
Landlord's reasonable estimates of the costs of such additional services,
plus a reasonable charge (not to exceed ten percent (10%) of the cost of
such services) for Landlord's overhead expense. Tenant shall keep all
draperies closed when necessary because of the sun's position and at all
times reasonably cooperate with Landlord and abide by all the regulations
and requirements which Landlord may prescribe from time to time for the
proper functioning and protection of the heating, ventilating and air
conditioning systems. Whenever heat-generating machines or equipment or
lighting used in the Premises by Tenant affect the temperature otherwise
maintained by the air conditioning system, Landlord shall have the right
to install any machinery and equipment Landlord deems reasonably
necessary to restore the temperature balance in any affected part of the
Building, including but not limited to modifications to the Building's
air conditioning system or installation of supplementary air conditioning
units. Tenant shall pay the cost thereof, including installation and any
additional costs of operation and maintenance occasioned thereby, to
Landlord upon demand.

          6.3 Special Apparatus. Tenant shall not, except with Landlord's
prior written consent, which consent may be withheld in Landlord's sole
discretion, either: (a) use any apparatus or device in the Premises which
will increase the amount of cooling, ventilation, electricity or water
supplied to the Premises beyond that provided as part of Landlord's Work;
or (b) connect with electric current or water pipes any device or
apparatus for the purpose of using electrical current or water, except as
such connections now exist or as may be provided for in the Scope of
Work. If Landlord consents to the use and/or connection of any apparatus
or device described in clauses (a) and (b) above, Landlord may install
meters or similar monitoring devices to measure the amount of utilities
consumed by such apparatus or devices and Tenant shall pay for the cost
of all work and materials required for the installation, maintenance and
use of such meters and monitoring devices. If Landlord elects not to
install a special meter or monitoring device, Landlord shall determine
the amount of additional utilities and resources consumed by such
apparatus tar device based upon Landlord's reasonable estimates and best
judgment, and such determination, made in good faith by Landlord, shall
be conclusive on Tenant. Tenant shall pay to Landlord promptly upon
demand the cost of any excess use of utilities and resources based on the
rates charged by the local public utility company or other supplier
furnishing same, plus any additional expense incurred by Landlord in
keeping account of the foregoing and administering same.

          6.4 Interruption In Service. Landlord shall use diligent efforts to
remedy any interruption in the furnishing of services and utilities.
However, Landlord shall not be in default under this Lease or liable for
any damages directly or indirectly arising from, nor shall the rent be
abated except as provided below by reason of, any failure to provide or
any reduction in any of the above services or utilities if such failure
or reduction is caused by the making of repairs or improvements to the
Premises or the Building, the installation of equipment, acts of God or
the elements, labor disturbances of any character, or any other events or
conditions whatsoever beyond the reasonable control of Landlord, or
rationing or restrictions on the use of said services and utilities due
to energy shortages or other causes, whether or not any of the above
result from acts or omissions of Landlord. Furthermore, Landlord shall be
entitled to cooperate voluntarily in a reasonable manner with the efforts
of national, state or local governmental bodies or utilities suppliers in
reducing energy or other resources consumption. The failure of Landlord
to provide the utilities and services specified in this Section B shall
not constitute a constructive or other eviction of Tenant. If any
interruption in the furnishing of utilities or services to the Premises
materially, adversely affects Tenant's use and occupancy of the Premises,
Tenant shall be entitled to an abatement of Base Rent in proportion to
the interference with Tenant's use and occupancy, only if, and to the
extent that, such interruption continues for more than thirty (30) days.

          6.5 Tenant's Other Utilities. Tenant shall pay prior t0
delinquency for all telephone and all other materials and services not
expressly required to be provided by Landlord, which may be furnished to
or used in, on or about the Premises during the Term.

7.   TENANT'S ALTERATIONS; PROTECTION AGAINST LIENS

          7.1 Landlord's Consent Required, Tenant shall not make or permit to
be made any alterations, additions or improvements to the Premises or any
part thereof, without first obtaining Landlord's written consent. When
applying for such consent, Tenant shall, if required by Landlord, furnish
complete plans and specifications for such alterations, additions or
improvements. All alterations, additions or improvements to the Premises
shall be performed by contractors selected and supervised by Landlord for
Tenant's account and at Tenant's sole cost and expense. Within ten (101
days after receipt of a written statement from Landlord, Tenant shall
reimburse Landlord for all reasonable costs arising in connection with
Landlord's approval of plans and specifications and supervision of
contractors. Landlord shall have the right to require that any contractor
performing alterations, improvements or additions to the Premises shall,
prior to commencement of any work, provide Landlord with a performance
bond and labor and materials payment bond in the amount of the contract
price for the work, naming Landlord and Tenant (and any other persons
designated by Landlord as co-obligees). All alterations, additions,
fixtures and improvements, including without limitation all improvements
made pursuant to a Scope of Work, whether temporary or permanent in
character, made in or upon the Premises either by Landlord or Tenant,
shall at once belong to Landlord and become part of the Premises and
shall remain on the Premises without compensation of any kind to Tenant,
unless Landlord requires their removal under Paragraph 7.2 below. Tenant
shall carry insurance as required by Section 10 covering any
improvements, alterations or additions to the Premises made or paid for
by Tenant except for Landlord's Work described in the Scope of Work, it
being understood and agreed that none of such alterations, additions or
improvements shall be insured by Landlord nor shall Landlord be required
under any provision of this Lease to repair, reconstruct or reinstall any
such alterations, additions or improvements. Movable furniture and
equipment which are removable without material damage to the Building or
the Premises shall remain the property of Tenant.

          7.2 Removal of Tenant's Alterations. Notwithstanding any contrary
provision in this Lease, Tenant shall, upon Landlord's written request
made prior to or within thirty (30i days following the Expiration pate or
the earlier termination of this Lease, promptly remove any alterations,
additions, fixtures or improvements designated by Landlord to be removed
and repair any damage to the Premises resulting from such removal.
Landlord may, in connection with any such removal which might in
Landlord's judgment involve damage to the Promises, require that such
removal be performed by a bonded contractor or other person for whom a
bond satisfactory to Landlord has been furnished covering the cost of
repairing the anticipated damage.

          7.3 Protection Against Liens. Tenant shall keep the Premises, the
Building and the Common Areas free from any liens arising out of work
performed, materials furnished, or obligations incurred by Tenant and
shall indemnify, hold harmless and defend Landlord from any liens and
encumbrances arising out of any work performed or materials furnished by
or at the direction of Tenant, In the event that Tenant shall not,
within twenty (201 days following written notice of the imposition of
any such lien, cause such lien to be released of record by payment or
posting of a proper bond, Landlord shall have, in addition to all other
remedies provided in this Lease and by law, the right, but no
obligation, to cause the same to be released by such means as Landlord
shall deem proper, including payment of the claim giving rise to such
lien. All such sums paid by Landlord and all expenses incurred by it in
connection therewith, including attorneys' fees and costs, shall be
payable by Tenant upon demand with interest at the Overdue Rate from the
date such sums are  paid or expenses incurred by Landlord. Landlord shall
have the right at all times to post and keep posted on the Premises any
notices permitted or required by law, or which Landlord shall deem
proper, for the protection of Landlord and the Premises, and any other
party having an interest therein, from mechanics' and materialmen's
liens, and Tenant shall give to Landlord at least ten (101 business days'
prior written notice of the day of commencement of any work relating to
alterations,  additions or improvements in or to the Premises.

8. MAINTENANCE AND REPAIRS

          8.1 Landlord's Obligations. Subject to Sections 15 and 16, Landlord
shall maintain in good order, condition and repair the structural
portions of the Building including the exterior walls, underflooring and
roof, the basic heating, ventilating, air conditioning, plumbing,
electrical, arid fire detection and security systems, and all other
portions of the Premises not the obligation of Tenant or any other tenant
in the Building. However, if any such maintenance or repair becomes
necessary in whole or in part because of wrongful acts or omissions by
Tenant or Tenant's employees, agents, invitees or customers, or because
of a breaking and entering, Tenant shall pay the entire cost thereof upon
demand. Landlord shall not be liable to Tenant, and rent shall not be
abated, for any failure by Landlord to maintain and repair areas which
are being used in connection with construction of improvements, or for
any failure to make any repairs or perform any maintenance unless such
failure shall continue for an unreasonable time after written notice of
the need therefor is given to Landlord by Tenant. Landlord shall also not
be liable under any circumstances for loss of profits or for injury to or
interference with Tenant's business arising from or in connection with
the making of or the failure of Landlord to make any repairs,
maintenance, alterations or improvements in order to make any repairs,
maintenance, alterations or improvements in or to any portion of the
Building or the Common Areas or in or to fixtures, appurtenances and
equipment therein. Notwithstanding the foregoing. if Landlord fails to
make any repairs or perform any maintenance within a reasonable time
after written notice of the need therefor from Tenant to Landlord, Tenant
may, after giving Landlord at least ten (10) days' prior written notice
of its intent to do so, make necessary repairs or perform necessary
maintenance, provided, however, (a) Tenant's work does not affect
structural elements of the Building or Building systems, and (b) so long
as Landlord is diligently attempting to make the necessary repairs or
perform the necessary maintenance, Tenant shall have no right of
"self-help."

          8.2 Tenant's Obligation,

                         (a) Tenant shall maintain the Premises in good order,
condition and repair including the interior surfaces of the ceilings,
walls and floors, all doors, interior windows, and all special plumbing
pipes, valves and fixtures, electrical wiring, panels, switches, and all
other fixtures and equipment installed for the use of the Premises by or
on behalf of Tenant, including, without limitation, the "PBX Switchboard
Area" and "Computer Labs" shown on the Final Plans (as defined in the
Scope of Work. Tenant expressly waives the benefit of any statute,
ordinance or judicial decision now or hereafter in effect which would
otherwise afford Tenant the right to make repairs at Landlord's expense
or to terminate this Lease because of Landlord's failure to keep the
Premises in good order, condition and repair,

                         (b) Upon the Expiration Date or the earlier termination
of this Lease, Tenant shall surrender the Premises in the same condition
as received, except for ordinary wear and tear and damage by fire,
earthquake, acts of God or the elements, not caused by wrongful act or
omission of Tenant or Tenant's agents, and shall promptly remove or cause
to be removed, at Tenant's expense, from the Premises and the Building
any signs, notices and displays placed by Tenant.

                         (c) Tenant shall repair any damage to the Premises or
the Building caused by or in connection with the removal of any articles
of personal property, business or trade fixtures, machinery, equipment,
cabinetwork, furniture, movable partitions or permanent improvements or
additions, including without limitation, repairing the floor and patching
and painting the walls where required by Landlord to Landlord's
reasonable satisfaction, but excluding any damage caused by reasonable
use. Tenant shall indemnify Landlord against any loss or liability
resulting from delay by Tenant in so surrendering the Premises, including
without limitation, any claims made by any succeeding tenant reasonably
founded on such delay.

                         (d) Tenant shall do all acts required to comply with all
applicable laws, ordinances, regulations and rules of any public
authority relating to Tenant's use and occupancy of the Premises.

                         (e) If Tenant fails to maintain the Premises in good
order, condition and repair, or to comply with applicable laws,
ordinances, regulations or rules, Landlord shall give Tenant written
notice to do such acts as are reasonably required to satisfy its
obligations under this paragraph. If Tenant fails to promptly commence
such work and diligently prosecute it to completion, Landlord shall have
the right after first giving Tenant at least ten (10) days' written
notice (except in an emergency), but no obligation, to do such acts and
expend such funds as are reasonably required to perform such work. Any
amount so expended by Landlord shall be paid by Tenant promptly after
demand with interest at the Overdue Rate from the date of such work.
Landlord shall have no liability to Tenant for any damage, inconvenience
or interference with the use of the Premises by Tenant as a result of
performing any such work.

9.      INDEMNITY AND EXEMPTIONS OF LANDLORD

          9.1 Indemnity. Except as set forth herein, Tenant shall indemnify,
hold harmless, and defend Landlord against arty and all claims of
liability for any death or injury to any person or damage to any property
whatsoever occurring in, on or about the Premises or any part thereof, or
occurring in, on or about any of the Common Areas, to the extent such
injury or damage is cause by the act, negligence, fault or omission of
any duty with respect to the same by Tenant, its agents, contractors,
employees, invitees or customers. Tenant shall further indemnify, hold
harmless and defend Landlord from and against any and all claims, actions
and liabilities arising from (a) any breach or default in the performance
of any obligation on Tenant's part to be performed under this Lease, or
(b) arising from any act or negligence of Tenant, or any of its agents,
contractors, invitees or employees, or (c) any Environmental Damages
arising from the presence of Hazardous Materials upon, within or about
the Premises due to any act or omission of Tenant or any of its agents,
contractors, invitees or employees, or Id) violation of any Environmental
Requirements pertaining to the Premises or the activities therein, and
(e) from and against all costs, attorneys' fees, expenses and liabilities
incurred in the defense of any such claim, action or liability, and any
proceeding brought thereon. In case any action or proceeding be brought
against Landlord by reason of any such claim, Tenant, upon notice from
Landlord, shall defend the same at Tenant's expense by counsel reasonably
satisfactory to Landlord; provided, however, that Tenant shall not be
liable for damage to property or death or injury to persons) occasioned
by the gross negligence or intentional misconduct of Landlord or its
agents or employees unless covered by insurance Tenant is required to
provide.

          9.2 Exemption of Landlord From Liability. Tenant hereby assumes all
risk of damage to property or injury to persons in, upon or about the
Premises from any cause other than the active negligence or intentional
misconduct of Landlord and its agents or employees. Without limiting the
generality of the foregoing, Landlord shall not be liable for injury or
damage which may be sustained by the person, goods, wares, merchandise or
property of Tenant, its employees, invitees or customers, or any other
person in or about the Premises caused by or resulting from fire, steam,
electricity, gas, water or rain, which may leak or flow from or into any
part of the Premises, or from the breakage, leakage, obstruction or other
defects of the pipes, sprinklers, wires, appliances, plumbing, heating,
air conditioning or lighting fixtures of the same, whether the damage or
injury results from conditions arising upon the Premises or upon other
portions of the Building from other sources. Landlord shall not be liable
for any damages arising from any act or omission of any other tenant or
occupant of the Building except to the extent caused by the gross
negligence or  intentional misconduct of Landlord.

10.     INSURANCE

          10.1    Tenant's Insurance.

                         (a) At all times during the Term Tenant shall maintain
in effect policies of casualty insurance covering (i) all alterations,
additions or improvements in, on or to the Premises as may be made or
paid for by Tenant (except for Landlord's Work described in the Scope of
Work), and (11) al( trade fixtures, merchandise and other personal
property from time to time in, on or upon the Premises, in an amount not
less than their actual replacement cost, providing protection against any
peril included within the classification of "Fire and Extended Coverage"
together with insurance against sprinkler damage, vandalism and malicious
mischief, including cost of debris removal and demolition. Replacement
cost for purposes hereof shall be determined by mutual agreement, or
failing such agreement, by an accredited appraiser selected by Landlord,
with the cost of such appraisal to be borne by Tenant. The proceeds of
such insurance shall be used for the repair or replacement of the
property so insured. Upon termination of this Lease following a casualty
as set forth in Section 16, the proceeds under clause (i) above shall be
paid to Landlord, and the proceeds under clause (ii) above shall be paid
to Tenant.

                         (b) At all times during the Term Tenant shall maintain
in effect workers' compensation insurance and comprehensive public
liability and property damage insurance adequate to protect Landlord
against liability for injury to or death of any person or loss or injury
to any property in connection with the activities of Tenant in, on or
about the Premises or with the use, operation or condition of the
Premises. Such insurance at all times shall afford combined single limit
coverage in an amount of not less than Two Million Dollars ($2,000,000).
The limits of such insurance shall not limit the liability of Tenant
under this Lease. All public liability and property damage policies shall
contain a provision that Landlord, although named as an insured, shall
nevertheless be entitled to recovery under said policies for any loss
occasioned to it, its servants, agents or employees by reason of Tenant's
negligence.

                         (c) All insurance required to be carried by Tenant
hereunder shall be issued by responsible insurance companies acceptable
to Landlord and any Mortgagee. All policies of insurance provided for in
this Lease shall be issued by insurance companies licensed to do business
in the State of California, with general policy holder's rating of not
less than "A" and a financial rating of not less than "Class X" as rated
in the most current available "Best's Insurance Reports,' Each policy
shall name Landlord and at Landlord's request any Mortgagee as an
additional insured, as their respective interests may appear, and a
duplicate original of all policies or certificates evidencing the
existence and amounts of such insurance shall be delivered to Landlord by
Tenant at least ten (10) days prior to Tenant's occupancy of the
Premises. All policies of insurance delivered to Landlord must contain a
provision that the company writing said policy will give Landlord thirty
(30) days' written notice in advance of any cancellation or lapse of or
any change in such insurance. All public liability, property damage and
other casualty insurance policies shall be written as primary policies,
not contributing with, and not in excess of coverage which Landlord may
carry. Tenant shall furnish Landlord with renewals or "binders" of any
such policy at least thirty (301 flays prior to the expiration thereof.
If Tenant does not procure and maintain such insurance, Landlord may (but
shall not be required to) obtain such insurance on Tenant's behalf and
charge Tenant the premiums therefor which shall be payable upon demand,
and no such action by Landlord shall constitute a waiver of Tenant's
default hereunder. Tenant may carry such insurance under a blanket
policy, provided such blanket policy expressly affords the coverage
required by this Lease by a Landlord's protective liability endorsement
or otherwise.

                         (d) Every five (5) years during the Term or whenever
Tenant materially improves or alters the Premises, Tenant shall increase
the policy limits for the insurance to be carried by Tenant under this
Section 10 to such amounts as Landlord reasonably determines are
appropriate.

          10.2 Landlord's Insurance. At all times during the Term Landlord
shall maintain in effect a policy or policies of insurance covering the
Building in an amount not less than ninety percent 190%) of full
replacement cost (exclusive of the cost of excavations, foundations,
footings and all tenant improvements constructed at the request or cost
of Tenant, but inclusive of the cost of building standard tenant
improvements) from time to time during the Term, providing protection
against any peril generally included in the classification "Fire and
Extended Coverage" together with insurance against sprinkler damage,
vandalism and malicious mischief. Landlord's obligation to carry the
insurance provided for herein may be brought within the coverage of any
blanket policy or policies of insurance carried and maintained by
Landlord. In addition to the coverage required by this paragraph,
Landlord shall be entitled to procure (and include the premiums therefor
in Operating Costs) such other types of insurance and in such amounts as
Landlord may deem to be necessary or appropriate.

          10.3 Subrogation Waiver. Landlord and Tenant each hereby waive any
and all rights of recovery against the other or against the officers,
partners, employees, agents and representatives of the other, on account
of loss or damage of such waiving party or its property, or the property
of others under its control, to the extent that such loss or damage is
insured against under any fire and extended coverage insurance policy
which either may have in force at the time of such loss or damage. Tenant
shall, upon obtaining the policies of insurance required under this
Lease, give notice to its insurance carriers) that the foregoing mutual
waiver of subrogation is contained in this Lease. The waivers set forth
herein shall be required and effective only to the extent such waivers
are available from each party's insurer without additional premium; if an
extra charge is incurred to obtain such waiver, it shall be paid by the
party in whose favor the waiver runs within fifteen (15) days after
written notice from the other party, and, if not so paid, such other
party's waiver under this paragraph shall be neither required nor
effective.

11.     ASSIGNMENT AND SUBLETTING

          11.1 Landlord's Consent Required. Tenant shall not sell, assign,
mortgage, pledge, hypothecate, encumber or otherwise transfer this Lease
or any interest therein, and shall not sublet the Premises or any part
thereof, or suffer or permit the Premises or any part thereof to be
occupied by any other person (the agents, employees, and invitees of
Tenant excepted), without the prior written consent of Landlord in each
instance; and any attempt to do so without such consent shall be voidable
and, at Landlord's election, shall constitute a noncurable default under
this Lease. No interest of Tenant in this Lease or the Premises shall be
assignable by operation of law. Subject to the terms and conditions
contained in this section, Landlord shall not unreasonably withhold its
consent to a voluntary assignment of this Lease or a subletting of the
Premises.

          11.2 Tenant's Application If Tenant desires at any time to assign
this Lease or to sublet the Premises or any portion thereof, Tenant shall
submit to Landlord at least thirty (30) days prior to the proposed
effective date of the assignment or sublease, in writing: (a) a notice of
intent to assign or sublease, setting forth the proposed effective date
thereof; (b) the name of the proposed assignee or subtenant;  (c) the
nature of the proposed assignee's or subtenant's business to be carried
on in the Premises; (d) the terms and provisions of the proposed
assignment or sublease; and (e) such financial information as Landlord
may request concerning the proposed assignee or subtenant, including
recent financial statements and bank references. At the time of Tenant's
application to assign the Lease, Tenant may also request Landlord in
writing to be released from liability under this Lease, which request may
or may not be granted in Landlord's sole  discretion.

          11.3 Required Provisions. All assignment or sublease agreements
shall (a) contain such terms as are described in Tenant's notice under
Paragraph 11.2 above or as otherwise agreed by Landlord, (b) prohibit
further assignments or subleases except with Landlord's written consent,
(c) impose the same obligations and conditions on the assignee or
sublessee as are imposed on Tenant by this Lease (except as to rent and
term or as otherwise agreed by Landlord), (d) be expressly subject and
subordinate to each and every provision of this Lease, (e) have a term
that expires on or before the Expiration Date, and (f) provide that
Tenant and/or the assignee or sublessee shall pay Landlord the amount of
any additional costs or expenses incurred by Landlord for repairs,
maintenance or otherwise as a result of any change in the nature of
occupancy caused by the assignment or sublease.

          11.4 Bonus Rent. Landlord shall be entitled to receive all Bonus
Rent payable in connection with any assignment or sublease. Within
fifteen (15) days after written request by Landlord, Tenant shall
provide and certify to Landlord all financial information required for
the calculation of Bonus Rent.

          11.5 Fees for Review. If Landlord retains the services of an
attorney to review any aspect of the proposed assignment or sublease
transaction, Tenant shall pay to Landlord all attorneys' fees reasonably
incurred by Landlord in connection therewith, Tenant shall pay such
attorneys' fees to Landlord within thirty (30) days after written
request therefor.

          11.6 No Release of Tenant. Unless Landlord has specifically
released Tenant in writing from all obligations under the Lease, no
consent of landlord to any assignment or subletting by Tenant shall
relieve Tenant of the obligations to be performed by Tenant under this
Lease, whether accruing before or after such assignment, or subletting,
and notwithstanding any subsequent modification, extension or renewal of
this Lease made with or without Tenant's consent. The consent by Landlord
to any assignment, transfer or subletting shall not relieve Tenant from
the obligations to obtain Landlord's express prior written consent to any
subsequent or other transfer or subletting. The acceptance by Landlord of
payment from any other person shall not be deemed to be a waiver by
Landlord of any provision of this Lease or to be a consent to any
transfer or sublease, or to be a release of Tenant from any obligation
under this Lease. If the Premises or any part thereof is sublet or
occupied by any person other than Tenant, Landlord may, after default by
Tenant, collect the rent from any such transferee, subtenant or occupant
and apply the net amount collected to the rent reserved herein, and no
such action by Landlord shall be deemed a consent to such transfer,
sublease or occupancy.

          11.7 Assumption of Obligations. Each assignee of Tenant shall
assume all obligations of Tenant under this Lease and shall be and remain
liable jointly and severally with Tenant (unless Landlord has
specifically released Tenant in writing from all obligations under the
Lease) for the payment of the rent and the performance of all the terms,
covenants, conditions and agreements herein contained on Tenant's part to
be performed for the Term. No assignment shall be binding on Landlord
unless the assignee or Tenant delivers to Landlord a counterpart of the
assignment instrument in recordable form which contains a covenant of
assumption by the transferee satisfactory in substance and form to
Landlord, consistent with the requirements of this section.
The failure or refusal of any assignee t0 execute such instrument of
assumption shall not release or discharge the assignee from its liability
to Landlord hereunder. Landlord shall have no obligation whatsoever to
perform directly any duty to or respond directly to any request from any
sublessee, it being the obligation of Tenant to administer the terms of
its subleases; provided, however, Landlord shall remain liable to Tenant
to perform all of Landlord's obligations under this Lease.

          11.8 Deemed Transfers. If Tenant is a privately held corporation,
or is an unincorporated association or partnership, the transfer,
assignment or hypothecation of any stock or interest in such
corporation, association or partnership in the aggregate from the Lease
Date in excess of fifty percent (50%) shall be deemed an assignment or
transfer within the meaning of this section.
Tenant may assign this Lease or sublet the Premises or any part thereof
without Landlord's prior written consent to any corporation which
controls Tenant, is controlled by Tenant, or is under common control with
Tenant or to any entity resulting from any reorganization, merger or the
sale of substantially all of Tenant's stock, provided Tenant gives
Landlord at least thirty (301 days' prior written notice of such
subletting or assignment; and such subletting or assignment shall not
release or discharge Tenant from any liability under this Lease.

          11.9 Landlord's Option t Recapture. Landlord reserves the option,
to be exercised by giving notice to Tenant within fifteen (151 days after
receipt of Tenant's notice of intent to assign of sublease to recapture
the portion of the Premises described in Tenant's notice for the
remainder of the Term, and to terminate this Lease with respect to such
recaptured Premises. The effective date of such recapture and termination
shall be as specified in Landlord's notice of exercise of its recapture
option, but shall not be less than thirty (301 days nor more than sixty
(601 days after the delivery of such notice. The option to recapture
reserved to Landlord hereunder shall also arise in the event Tenant
shall, voluntarily or involuntarily, sell, assign, mortgage, pledge,
encumber or otherwise transfer this Lease or any interest herein, or
sublet the Premises or any portion thereof, or suffer or permit the
Premises to be occupied by any third person (the agents, employees,
invitees and customers of Tenant excepted), without first obtaining the
written consent of Landlord and in such event the recapture option shall
apply to the portion of the Premises so affected and be exercisable but
Landlord at any time after the occurrence of the event for which
Landlord's consent was required by not obtained by Tenant. If this Lease
is terminated pursuant to Landlord's recapture option with respect to
only a portion of the Premises, the Base Rent required under this Lease
and Tenant's Share shall be adjusted proportionately based on the
rentable square footage retained by Tenant and the rentable square
footage of the Premises leased by Tenant immediately prior to such
recapture and cancellation, and Landlord and Tenant shall thereupon
execute an amendment of this Lease in accordance therewith. If Landlord
so recaptures a portion of the Premises, it shall construct and erect at
is sole cost such partitions as may be required in Landlord's and
Tenant's reasonable judgment to sever the space retained by Tenant from
the space recaptured by Landlord; provided, however, that Tenant shall
bear the cost of painting, covering or otherwise decorating the surfaces
of such partitions which face the remaining Premises. Landlord may,
without limitation, lease the recaptured portion of the Premises to the
proposed subtenant or assignee, on the same or different terms as were
proposed by Tenant, without liability to Tenant.

12.     SUBORDINATION AND ATTORNMENT

          12.1 Subordination. Upon the written request of Landlord or any
Mortgagee, Tenant will in writing subordinate its rights under this Lease
to the lien of any mortgage or deed of trust now or hereafter in force
against the Premises, the Building or the underlying land and to all
advances made or hereafter to be made upon the security thereof, and to
all extensions, modifications and renewals thereunder. Tenant shall also,
upon Landlord's request, subordinate its rights hereunder t0 any ground
or underlying lease which may now exist or hereafter be executed
affecting the Building and/or the underlying land. Tenant shall have the
right to condition its subordination upon the execution and delivery of
an attornment and nondisturbance agreement, as described in Paragraph
12.2, between the Mortgagee or the lessor under any such ground or
underlying lease and Tenant Tenant shall not subordinate its rights
hereunder to any lien other than that of a first mortgage or first deed
of trust, except with the prior written consent of the Mortgagee holding
such first mortgage or deed of trust.

          12.2 Attornment. Upon the written request of the Landlord or any
Mortgagee or any lessor under a ground or underlying lease, Tenant shall
attorn to any Mortgagee or lessor, provided such Mortgagee or lessor
agrees that if Tenant is not in default under this Lease, Tenant's
possession of the Premises in accordance with the terms of this Lease
shall not be disturbed, Such agreement shall provide, among other things,
(a) that this Lease shall remain in full force and effect, (b) that
Tenant pay rent to said Mortgagee or lessor from the date of said
attornment, (c) that said Mortgagee or lessor shall not be responsible to
Tenant under this Lease except for obligations accruing subsequent to the
date of such attornment, and (d) that Tenant, in the event of foreclosure
or a deed in lieu thereof or a termination of the ground or underlying
lease, will enter into a new lease with the Mortgagee, lessor or other
person having or acquiring title on the same terms and conditions as this
Lease and for the balance of the Term.

          12.3 Nonmaterial Amendments. If any lender should require any
modification of this Lease as a condition of loans secured by a lien on
the Premises, the Building or the land underlying the Building, or if any
such modification is required as a condition to a ground or underlying
lease, Tenant will not unreasonably withhold its approval or execution of
any such modifications, promptly after request by Landlord provided no
such modification shall relate to the rent payable hereunder, the length
of the Term or otherwise materially change the rights or obligations of
Landlord or Tenant.

13.     DEFAULT BY TENANT

          13.1 Acts Constituting Default. In addition to the events specified
as a default elsewhere in this Lease, the failure of Tenant to perform
each covenant made under this Lease, or any abandonment of the Premises
by Tenant, shall constitute a default hereunder. However, Landlord shall
not commence any action to terminate Tenant's right of possession as a
consequence of a default until any period of grace with respect thereto
has elapsed; provided, that any such period of grace shall be in lieu of
and not in addition to the period during which Tenant may cure such
default following the delivery of notice pursuant to California Code of
Civil Procedure Section 1 161.

                         (a) Subject to the limitation expressed in Paragraph
13.1(c), Tenant shall have a period of three (3) days from the date of
written notice from Landlord within which to cure any default in the
payment of any monetary obligations of Tenant under this Lease.

                         (b) Tenant shall have a period of fifteen (15) days from
the date of written notice from Landlord within which to cure any other
default under this Lease which is capable of being cured; provided,
however, that with respect to any default which cannot reasonably be
cured within fifteen (15) days, the default shall not be deemed to be
uncured if Tenant commences to cure within five (5) days from Landlord's
notice and thereafter prosecutes diligently and continuously to
completion all acts required to cure the default.

                         (c) There shall be no period of grace with respect to
any default by Tenant which is not capable of being cured. Landlord and
Tenant stipulate that the following defaults are not capable of being
cured by Tenant: (i) any default which is specified in this Lease as
being incurable; (ii) any unauthorized sale, assignment, mortgage,
pledge, hypothecation, encumbrance or other transfer of this Lease or any
interest herein, or any unauthorized subletting of all or any portion of
the Premises; (iii) the commission of waste by Tenant; (iv) the failure
of Tenant to pay rent or any other monetary obligation of Tenant
hereunder on the due date thereof where such failure occurs on more than
three (3) consecutive occasions or more than six (61 occasions during any
twelve (12) month period; and (v) any other default which is recognized
under California law as being incurable.

          13.2 Landlord's Remedies. If Tenant fails to cure a default, or in
the event of a default which is not capable of being cured by Tenant,
Landlord shall have the following rights and remedies in addition to any
other rights and remedies available to Landlord at law or in equity:

                         (a) Landlord shall have all rights and remedies
provided by California Civil Code Section 1951.2 (or any successor
statute), including but not limited to, recovery of 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 rental loss for
the same period that Tenant proves could be reasonably avoided, as
computed pursuant to subsection (b) of said Section 1951.2;

                         (b) Landlord shall have rights and remedies provided by
California Civil Code Section 1951,4 (or any successor statute), which
allows Landlord to continue this Lease in effect and to enforce all of
its rights and remedies under this Lease, including the right to recover
rent as it becomes due, for so long as Landlord does not terminate
Tenant's right to possession. Acts of maintenance or preservation,
efforts to relet the Premises, or the appointment of a receiver upon the
Landlord's initiative to protect its interest under this Lease shall not
constitute a termination of Tenant's right to possession; and

                         (c) Landlord shall have the right, but not the
obligation, to make any payment or perform any act on Tenant's part as
may be required to cure Tenant's default, without waiving its rights
based upon such default by Tenant and without releasing Tenant from any
of its obligations. All sums so paid and all costs incurred by Landlord,
together with interest thereon at the Overdue Rate from the date of such
payment or the incurrence of such cost by Landlord, whichever occurs
first, shall be paid to Landlord on demand.

14.     DEFAULT BY LANDLORD

          14.1 Existence of Default. Landlord shall not be deemed to be in
default in the performance of any obligation under this Lease unless and
until it has failed to perform such obligation within twenty (20) days
after receipt of written notice by Tenant to Landlord specifying such
failure; provided, however, that if the nature of the Landlord's default
is such that more than twenty (20) days are required for its cure, then
Landlord shall not be deemed to be in default if it commences such cure
within the twenty (20) day period and thereafter diligently prosecutes
such cure to completion,

          14.2 Mortagaee's Right To Cure. Tenant shall give any Mortgagee a
copy, by registered mail, of any notice of default served upon Landlord,
provided that Tenant previously has been notified in writing (by way of
Notice of Assignment of Rents and Leases, or otherwise), of the address
of such Mortgagee. If Landlord fails to cure such default within the time
provided in this Lease, any such Mortgagee shall have an additional
forty-five (45) days within which to cure such default by Landlord, or if
such default cannot be cured within that time, then such additional time
as may be necessary if within that forty-five (45) day period the
Mortgagee has commenced and is pursuing the remedies necessary to cure
such default (including but not limited to commencement of foreclosure
proceedings, if necessary to effect such cure), in which event this Lease
shall not be terminated while such remedies are being so pursued.

          14.3 Judgment Against Landlord. If Tenant recovers any judgment
against Landlord for a default by Landlord under this Lease, the
judgment shall be satisfied only out of the interest of Landlord in the
Building and neither Landlord nor any of its partners, officers,
employees or agents shall be personally liable for any such default or
for any deficiency.

15.     CONDEMNATION

          15.1 Termination Due To Taking. If ail or any part of the Premises
are the subject of a Taking, either Landlord or Tenant may, by written
notice given to the other within thirty (30) days of receipt of notice of
such Taking, elect to terminate this Lease as of the date possession is
transferred pursuant to the Taking; provided, however, that before Tenant
may terminate this Lease for a Taking, such 'faking must be of such an
extent and nature as to substantially impede Tenant's use of the
Premises, If any pan of the Building other than the Premises shall be the
subject of a Taking, Landlord may elect to Terminate this Lease. If there
is a Taking of all or a part of the Parking Facilities and the parking
rights granted to Tenant under Paragraph 2.4 are substantially reduced
thereby, Landlord shall have the right to provide replacement parking to
compensate for such reduction within other parking areas serving the
Office Complex. 1f such replacement parking is not provided, then for a
period of thirty (30) days after Landlord notifies Tenant that such
replacement parking cannot be provided, Tenant shall have the right to
terminate this Lease, effective at a time specified by Tenant not to
exceed thirty (30) days from the date of the notice.

          15.2 No Termination Due To Taking. If a partial Taking of the
Premises does not result in a termination of this Lease, Base Rent,
Tenant's Share of Increased Operating Costs and Tenant's parking rights
shall be reduced in proportion to what the area of the Premises taken
bears to the area of the Premises immediately prior to the Taking. No
temporary taking of the Premises or any part of the Building shall
terminate this Lease, except at Landlord's election, or give Tenant any
right to any abatement of Base Rent or Increased Operating Costs, except
that Base Rent and Operating Costs shall be reduced in accordance with
the preceding sentence during that portion of any temporary Taking of
the Premises lasting more than thirty (301 days. Each party hereto
waives the provisions of California Code of Civil Procedure Section
1265.130 (or any successor statute) allowing either party to file a
petition to terminate this Lease for a partial Taking.

          15.3 Award For Taking. No award for any partial or entire Taking
shall be apportioned, and Tenant hereby assigns to Landlord any and all
rights of Tenant to any portion of the award for a Taking. However,
nothing contained herein shall be deemed to give Landlord any interest
in or to require Tenant to assign to Landlord any award made to Tenant
for taking of personal property belonging to Tenant.

16.     DAMAGE AND DESTRUCTION

          16.1 Partial Damage - Insured. If the Premises or the Building are
damaged by a risk covered under fire and extended coverage insurance
insuring Landlord, then Landlord shall restore such damage provided
insurance proceeds are available to Landlord to pay ninety percent (90%)
or more of the cost of restoration, and provided such restoration by
Landlord can be completed within eight (8) months after the commencement
of work in the opinion of a licensed architect or engineer appointed by
Landlord. 1n such event this Lease shall continue in full force and
effect, except that Tenant shall, so long as the damage is not due to the
act or omission of Tenant, be entitled to an equitable reduction of Bass
Rent and Tenant's Share of Increased Operating Costs while such
restoration takes place, such reduction to be based upon the extent to
which the damage or restoration efforts materially interfere with
Tenant's use of the Premises.

          16.2 Partial Damage - Uninsured. If the Premises or the Building
are damaged by a risk not covered by such insurance or if the insurance
proceeds available to Landlord are less than eighty percent (80%) of the
cost of restoration, or if the restoration cannot be completed within
eight (8) months after the commencement of work in the opinion of the
licensed architect or engineer appointed by Landlord, then Landlord shall
have the option either to (a) repair or restore such damage, this Lease
continuing in full force and effect, with the Base Rent and Tenant's
Share of Increased Operating Costs to be equitably reduced as provided in
Paragraph 16.1, or (b) give notice to Tenant at any time within ninety
(90) days after such damage terminating this Lease as of a date to be
specified in such notice, which date shall be not less than thirty (30)
nor more than sixty (60) days after the giving of such notice. If such
notice is given, this Lease shall expire and any interest of Tenant in
the Premises shall terminate on the date specified in such notice. The
Base Rent and Tenant's Share of Increased Operating Costs during the
period prior to the termination shall be reduced as provided in Paragraph
16.1 and paid up through the date of termination.

          16.3 Total Destruction. if the Premises are totally destroyed or in
Landlord's judgment the Premises cannot be restored as required herein
under applicable laws and regulations, notwithstanding the availability
of insurance proceeds, this Lease shall be terminated effective as of the
date of the damage.

          16.4 Landlord's Obligations. Any restoration by Landlord pursuant
to Paragraphs 16.1 or 16.2 shall be commenced as soon as reasonably
possible after the date of damage and prosecuted diligently to completion
at the earliest possible date. Landlord shall not be required to carry
insurance of any kind on Tenant's property and shall not be required to
repair any injury or damage thereto by fire or other causes, or to make
any restoration or replacement of any paneling, decorations, partitions,
ceilings, floor covering, office fixtures or any other improvements or
property installed in the Premises by or at the direct or indirect
expense of Tenant and Tenant shall be required to restore or replace same
in the event of damage. Tenant shall have no claim against Landlord for
any loss suffered by reason of any such damage, destruction, repair or
restoration. Notwithstanding anything to the contrary contained in this
section, Landlord shall have no obligation to repair, reconstruct or
restore the Premises with respect to damage or destruction as described
in this section occurring during the last twelve (12) months of the Term.

          16.5 Waiver by Tenant. Tenant shall have no right to terminate this
Lease as a result of any statutory provisions now or hereafter in effect
pertaining to the damage and destruction of the Premises or the Building,
except as expressly provided herein, and Tenant expressly waives the
provisions of California Civil Code Sections 1932(2) and 1933(4) with
respect to any damage or destruction of the Premises.

17.     DEFINITIONS

          17.1    "Rase Rent" means the monthly rent payable pursuant to
Paragraph 4.1, and as specified in the Basic Lease Provisions.

          17.2    "Base Year" means the calendar year specified in the Basic
Lease Provisions.

          17.3    "Basic Lease Provisions" means the
provisions contained in Paragraph 1.2 of this Lease.

          17.4 "Bonus Rent" means the excess of (a) all consideration
received by Tenant from an assignment of this Lease or a sublease of all
or any portion of the Premises over (b) the Base Rent, Increased
Operating Costs and other charges payable by Tenant to Landlord under
this Lease (prorated, in the case of a sublease of less than all of the
Premises, to reflect obligations allocable to only the portion of the
Premises so sublet). In determining the total consideration under the
foregoing clause la), Tenant shall be entitled to exclude therefrom
reasonable leasing commissions paid by Tenant to any unaffiliated third
party, payments attributable to the amortization of the cost of
improvements Tenant must make to the Premises at its cost to ready same
for the assignee or sublessee, and other reasonable, out-of-pocket costs
paid by Tenant which are directly related to Tenant's obtaining the
assignment or sublease.

          17.5 "Building" means the highrise office building described in the
Basic Lease Provisions, the parcels of land on which such office building
is situated, all other improvements situated on the land, and all rights
and easements appurtenant thereto. Except where the context requires
otherwise, references to the "Building" shall include the Common Areas
and the Parking Facilities serving the Building and other buildings in
the Office Complex.

          17.6  "Commencement Date" means the date determined pursuant to
Paragraph 3.2 of this Lease for the commencement of the Term.
17.7 "Common Areas" means areas within the Building (including
common corridors and hallways, stairwells, elevators, restrooms, lobbies
and other public areas) and within the Office Complex which are available
for nonexclusive use by Tenant and other tenants of the Building or the
Office Complex.

     17.7 "Common Areas" means areas within the Building (including
common corridors and hallways, stairwells, elevators, restrooms, lobbies
and other public areas) and within the Office Complex which are available
for nonexclusive use by Tenant and other tenants of the Building or the
office Complex.

          17.8 "Environmental Damages" means all claims, judgments, damages,
losses, penalties, fines, liabilities, strict costs and expenses of
defense of any claim and of any settlement or judgment, including without
limitation reasonable attorneys' fees and consultants' fees, any of which
are incurred at any time as a result of the existence of "Hazardous
Material" upon, about, beneath the Premises or migrating or threatening
to migrate to or from the Premises, or the existence of a violation of
"Environmental Requirements" pertaining to the Premises including,
without limitation: (a) damages for personal injury, or injury to
property or natural resources occurring upon or off of the Premises,
foreseeable or unforeseeable, including, without limitation, lost
profits, consequential damages, interest and penalties including but not
limited to claims brought by or on behalf of employees of Tenant, with
respect to which Tenant waives any immunity to which it may be entitled
under any industrial or worker's compensation laws; (b) diminution in the
value of the premises, and damages for the loss of or restriction on the
use of or adverse impact on the marketing of rentable or usable space of
any amenity of the Premises; (c) fees incurred for the services of
attorneys, consultants, contractors, experts, laboratories and all other
costs incurred in connection with the investigation or remediation of
such "Hazardous Materials" or violation of "Environmental Requirements"
including, but not limited to, the preparation of any feasibility studies
or reports or the performance of any cleanup, remedial, removal,
containment, restoration or monitoring work required by any federal,
state or local governmental agency or political subdivision, or
reasonably necessary to make full economic use of the Premises or any
other property or otherwise expended in connection with such conditions,
and including without limitation any attorneys' fees, costs and expenses
incurred in enforcing this agreement or collecting any sums due
hereunder; and (d) liability to any third person or governmental agency
to indemnify such person or agency for costs expended in connection with
the items referenced in subparagraph (c) herein.

          17.9 "Environmental Requirements" means all applicable present and
future statutes, regulations, rules, ordinances, codes, licenses,
permits, orders, approvals, plans, authorizations, concessions,
franchises and similar items, of all governmental agencies, departments,
commissions, boards, bureaus or instrumentalities of the United States,
states and political subdivisions thereof and all applicable judicial and
administrative and regulatory decrees, judgments and orders relating to
the protection of human health, or the environment, including, without
limitation: (a) all requirements, including but not limited to, those
pertaining to reporting, licensing, permitting, investigation and
remediation of emissions, discharges, releases or threatened releases of
"Hazardous Materials," chemical substances, pollutants, contaminants or
hazardous or toxic substances, materials or wastes whether solid, liquid
or gaseous in nature, into the air, surface water, groundwater or land,
or relating to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of chemical substances,
pollutants, contaminants or hazardous or toxic substances, materials, or
wastes, whether solid, liquid or gaseous in nature; and (b) all
requirements pertaining to the protection of the health and safety of
employees or the public.

          17.10 "Expiration Date" means the scheduled date on which the Term
will expire as determined pursuant to Paragraph 3.2 of this Lease.

          17.11 "Hazardous Materials" means any substance (a) the presence of
which requires investigation or remediation under any federal, state or
local statute, regulation, ordinance, order, action or policy; or (b)
which is or becomes defined as a "hazardous waste" or "hazardous
substance" under any federal, state or local statute, regulation or
ordinance or amendments thereto; or (c) which is toxic, explosive,
corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic,
or otherwise hazardous and is or becomes regulated by any governmental
authority, agency, department, commission, board, agency or
instrumentality of the United States, the State of California or any
political subdivision thereof; or (d) the presence of which on the
Premises causes or threatens to cause a nuisance upon the Premises or to
adjacent properties or poses or threatens to pose a hazard to the
Premises or the health or safety of persons on or about the Premises; or
(e) without limitation, which contains gasoline, diesel fuel or other
petroleum hydrocarbons; or (f) which contains polychlorinated bipheynols
(PCBs), asbestos or urea formaldehyde foam insulation.

          17.12 "Increased Operating Costs" means the amount by which the
Operating Costs during any Subsequent Year exceed the Operating Costs
for the Base Year.

          17.13 "Landlord's Work" means the work, if any, to be performed by
Landlord to ready the Premises for Tenant's occupancy, as specified in
the Scope of Work.

          17.14 "Lease Date" means the date specified in the Basic Lease
Provisions, which shall be the effective date of execution of this Lease
by Landlord and Tenant unless otherwise provided in this Lease.

          17.15 "Mortgagee" means the holder of any mortgage or deed of trust
secured by the Building or the Premises or any portion thereof.

          17.16 "Office Complex" means the development comprised of the three
office buildings commonly known as Watergate Towers I, II and III,
addressed, respectively, as 1900 Powell Street, 2200 Powell Street and
2000 Powell Street, Emeryville, California.

          17.17 "Operating Costs" means all actual costs of ownership,
operation, maintenance, repair and management of the Building, including
the Building's share of all such costs of the Parking Facilities and the
Common Areas which are shared with other buildings in the Office Complex
to be based on Landlord's reasonable allocation among the buildings. If
during the Base Year or any Subsequent Year the Building is less than
ninety-five percent (95%) occupied, those Operating Costs which vary
based on the level of occupancy shall be adjusted upward to reflect, in
Landlord's reasonable judgment, the Operating Costs that would apply
during such year if the Building were at least ninety-five percent (95%)
occupied.

               17.17.1.        Operating Costs shall include:

                              (a) salaries, and other compensation, including payroll
taxes, vacation, holiday and other paid absences, and welfare, retirement
and other fringe benefits, paid to employees, independent contractors or
agents of Landlord engaged in the operation, repair, management or
maintenance of the Building, including (i) elevator operators, (ii)
window cleaners, miscellaneous repair personnel, janitors, cleaning
personnel and porters, (iii) security personnel and caretakers, and (iv)
engineers, mechanics, electricians and plumbers;

                              (b) repairs and maintenance of the Building and the
costs of supplies, tools, materials and equipment for such repairs and
maintenance that are under generally accepted accounting principles not
capitalized;

                              (c) premiums and other charges incurred by Landlord for
insurance on the Building and for Landlord's employees, including (i)
fire and extended coverage insurance, and earthquake, windstorm, flood
and explosion insurance, (ii) public liability and property damage
insurance, (iii) worker's compensation insurance, (iv) boiler and
machinery insurance, sprinkler leakage, water damage and related
liability insurance, and burglary, fidelity and pilferage insurance on
equipment and materials, (v) health, accident and group life insurance,
(vi) such other insurance as is customarily carried by operators of
comparable first-class office buildings in the San Francisco Bay Area;

                              (d) costs incurred for inspection and servicing,
including all outside maintenance contracts necessary for the maintenance
of the Building, such as janitorial and window cleaning, rubbish removal,
exterminating, water treatment, elevator, electrical, plumbing and
mechanical equipment, and the costs of materials, tools, supplies and
equipment used for inspection and servicing of the Building;

                              (e)     costs incurred for electricity, water, gas, fuel
and' other utilities;

                              (f) payroll taxes, federal taxes, state and local
unemployment taxes, and social security taxes paid for the employees of
Landlord engaged in the operation, maintenance and repair of the
Building;

                              (g)     sales, use and excise taxes on goods and services
purchased by Landlord for use in the Building;

                              (h)     license, permit and inspection fees;

               (i)     accounting and legal  fees;

                              (j)     Customary management fees not to exceed five
percent (5%) of the gross revenues of the Building;

                              (k) the annual amortization over its useful life, with
a reasonable salvage value on a straightline basis, of the costs of any
capital improvements made by Landlord and required by any changes in
applicable laws, rules or regulations of any governmental authority
enacted after the Building was completed;

                              (l) the annual amortization over its useful life, with
a reasonable salvage value on a straightline basis, of the costs of any
equipment or capital improvements made by Landlord after the Building was
completed as a labor-saving measure or to accomplish other savings in
operating, repairing, managing or maintaining the Building, but only to
the extent of the savings;

                              (m) the annual amortization, over its useful life on a
straight line basis, of the cost of any exterior window draperies
provided by Landlord and the carpeting in the Common Areas;

                              (n) any costs for substituting work, labor, materials
or services in place of any of the above items, or for any additional
work, labor, materials, services or improvements to comply with any
governmental laws, rules, regulations or other requirements applicable to
the Building enacted after the Building was completed which are
considered operating expenses under generally accepted accounting
principles;

                              (o)     other costs reasonably necessary to maintain,
operate, repair and manage the Building in a first-class mariner and
condition;

                              (p) all real property taxes on the Building, the land
on which the Building is situated, and the various estates in the
Building and a proportion of the real property taxes on the land and
improvements comprising the Parking Facilities and the Common Areas
shared with other buildings in the Office Complex, based on Landlord's
reasonable allocation among the buildings using such facilities and
areas;

                              (q)     all personal property taxes levied on property used
in the operation of the Building;

                              (r) all taxes of every kind and nature whatsoever
levied or assessed in lieu of or in substitution for existing or
additional real or personal property taxes on the Building, land or
personal property other than taxes covered by Paragraph 4.4, including,
but not limited to, any charge, levy, excise or assessment upon
Landlord's business of leasing the Premises or other portions of the
Building or the Parking Facilities; and

                              (s)     the cost to Landlord of contesting the amount,
validity or applicability of any of the foregoing items.

               17.17.2.        Operating Costs shall  exclude:

                              (a)     leasing commissions, costs, disbursements,
attorneys' fees, accounting fees and other expenses incurred for leasing,
renovating or improving space for tenants;

                              (b)     the cost of electricity or other services sold to
tenants for which Landlord is to be reimbursed as a charge over the rent
payable under the leases with such tenants;

                              (c)     costs incurred because Landlord or another tenant
violated the terms of any lease of the Building;

                              (d)    interest on debt or amortization payments on
mortgages or deeds of trust or any other debt for borrowed money, except
as herein expressly permitted;

                              (e) items and services for which Tenant reimburses
Landlord or pays third parties or that Landlord provides selectively to
one or more tenants of the Building other than Tenant without
reimbursement;

                              (f)     advertising and promotional
expenses;

                              (g)     repairs or other work needed because of fire or
other casualty insured against by Landlord;

                              (h)     costs incurred in operating the Parking Facilities
except to the extent the cost of operating the Parking Facilities exceeds
the revenues generated from operation thereof;

                              (i)     nonrecurring costs incurred to remedy structural
defects in the original construction materials or insulation; and

                              (j) costs incurred by Landlord for alterations that are
considered capital improvements under generally accepted accounting
principles except to the extent the same are expressly permitted under
Paragraph 17.17.1

          17.18 "Overdue Rate" means the lesser of; (a) eighteen percent
(18%) per annum; or (b) the maximum rate permitted under applicable
usury law.

          17.19 "Parking Charge" means the monthly amount to be paid by
Tenant for each parking permit issued to Tenant pursuant to Paragraph
2.4, which amount is specified in the Basic Lease Provisions and subject
to increase.

          17.20 "Parking Facilities" means the parking lot(s) and parking
structure(s) located within or adjacent to the Office Complex and
designated by Landlord as serving the Building.

          17.21 "Premises" means the portion of the Building demised by this
Lease, as designated by suite number in the Basic Lease Provisions and
shown on Exhibit A to this Lease.

          17.22 "Rule and Regulations" means the rules and regulations
regulating the use of the Premises, the Common Areas, Parking Facilities
and other portions of the Building promulgated by Landlord from time to
time as provided in paragraph 5.6 of this Lease.

          17.23 "Security Deposit" means the amount specified in the Basic
Lease Provisions, which is to be held by Landlord to secure tenant's
performance of its obligations under this Lease as provided in paragraph
4.2

          17.24 "Scope of Work" means the Scope of Work Agreement if any,
executed by Landlord and Tenant concurrently with their execution of the
Lease, which will de attached as Exhibit B to this Lease and will
establish the full extent of Landlord's Work in readying the Premises for
Tenant's occupancy hereunder.

          17.25 "Subsequent Year" means any calendar
year during the Term after the Base Year.

          17.26 "Substantial Completion" means (a) completion, as determined
in the event of a dispute by Landlord's architect in accordance with AIA
standards, of Landlord's Work except for such items a$ constitute a minor
defect or deficiency which can be completed or corrected after occupancy
without causing any material interference with Tenant's use of the
Premises, and (b) the issuance of a certificate of occupancy by the City
of Emeryville or such other governmental authorization as may be required
for occupancy of the Premises.

          17.27 "Taking" means the taking of property or any interest therein
for public or quasi public use by exercise of the power of eminent domain
or otherwise, or a taking in the nature of inverse condemnation, with or
without litigation, or a transfer of property or any interest therein
pursuant to an agreement entered into under threat of exercise of the
power of eminent domain.

          17.28 "Tenant Parking" means the number of permits to park
passenger automobiles in the Parking Facilities which are to be issued to
Tenant pursuant to paragraph 2.4, and as specified in the Basic Lease
Provisions.

          17.29 "Tenant's Share" means the ratio that the rentable square
footage of the Premises bears to the total rentable square footage of the
Building. If the rentable square footage of the Premises and/or the total
rentable square footage of the Building changes, Tenant's Share shall be
appropriately adjusted so that it at all times reflects the proportion
which the rentable square footage of the Premises bears to the total
rentable square footage of the Building.

          17.30 "Term" means the term of this Lease, including any permitted
extensions or renewals thereof.

18.     MISCELLANEOUS PROVISIONS

          18.1 Estoppel Certificates. Within ten (10) days following any
written request Landlord may make from time to time, Tenant without any
charge therefor, shall execute, acknowledge and deliver a statement
certifying: (a) the Commencement bate of this Lease; (b) the fact that
this Lease is unmodified and in full force and effect (or, if there have
been modifications hereto, that this Lease is in full force and effect,
as modified, and stating the date and nature of such modifications); (c)
the date to which the rent and other sums payable under this Lease have
been paid; (d) the fact that there are no current defaults under this
Lease by either Landlord or Tenant except as specified in the statement;
and (e) such other matters as may be reasonably requested by Landlord.
Landlord and Tenant intend that any statement delivered pursuant to this
paragraph may be relied upon by a mortgagee, beneficiary, purchaser or
prospective purchaser of the Building or any interest therein. Tenant's
failure to deliver any such statement within said ten (10) day period
shall constitute a material default, arid Tenant shall indemnify and hold
Landlord harmless from and against any and all liability, loss, cost,
damage and expense which Landlord may sustain or incur as a result of or
in connection with Tenant's failure or delay in delivering such
statement. If Landlord elects to sell the Building or to obtain loans
secured by a lien on the Building, Tenant, promptly after demand, shall
provide to any such purchaser or lender financial statements of Tenant
reasonably required by the purchaser or lender, The financial statements
so provided shall be kept confidential as to any parties other than the
purchaser or lender.

          18.2 Surrender of Premises. A voluntary or other surrender of this
Lease by Tenant or the mutual cancellation of this Lease shall not work a
merger and shall, at the option of Landlord, terminate all or any
existing subleases or subtenancies, or may, at the option of Landlord,
operate as an assignment to it of any or all such subleases or
subtenancies.

           18.3 Light and Air. No diminution of light, air or view by any
structure which may hereafter be erected (whether or not by Landlord)
shall entitle Tenant to any reduction of rent under this Lease, result in
any liability of Landlord to Tenant, or in any other way affect this
Lease.

          18.4 Waiver. If either Landlord or Tenant waives the performance of
any term, covenant or condition contained in this Lease, such waiver
shall not be deemed to be a waiver of the term, covenant or condition
itself or a waiver of any subsequent breach of the same or any other
term, covenant or condition contained herein. Furthermore, the acceptance
of rent by Landlord shall not constitute a waiver of any preceding breach
by Tenant of any term, covenant or condition of this Lease, regardless of
Landlord's knowledge of such preceding breach at the time Landlord
accepts such rent. Failure by Landlord or Tenant to enforce any of the
terms, covenants or conditions of this Lease for any length of time shall
not be deemed to waive or to decrease the right of Landlord or Tenant, as
the case may be, to insist thereafter upon strict performance by Tenant
the other party, Waiver by Landlord or Tenant of any term, covenant or
condition contained in this Lease may only be made by a written document
signed by the party being bound.

          18.5 Attorneys' Fees, In the event that any action or proceeding
(including arbitration) is brought to enforce or interpret any term,
covenant or condition of this Lease on the part of Landlord or Tenant,
the prevailing party in such action or proceeding (whether after trial or
appeal) shall be entitled to recover from the party not prevailing its
expenses therein, including reasonable attorneys' fees and all allowable
costs. If Landlord is made a party to any action or proceeding commenced
by a third party due to any actual or alleged act or omission of Tenant
or Tenant's agents, employees, contractors, invitees or subtenants,
Tenant shall indemnify and hold Landlord harmless from all costs incurred
in such action or proceeding, including reasonable attorneys' fees.
Subject to the foregoing obligation of Tenant, if Tenant is made a party
to any action or proceeding commenced by a third party due to any actual
or alleged act or omission of Landlord or Landlord's agents, employees,
contractors or invitees, Landlord shall indemnify and hold Tenant
harmless from all costs incurred in such action or proceeding, including
reasonable attorneys' fees. If Tenant requests Landlord's consent to,
approval of or signature on any instrument or agreement which would alter
or affect Landlord's legal rights and duties, Tenant shall reimburse
Landlord upon demand for Landlord's reasonable attorneys' fees incurred
in connection with the review and evaluation of the requested action.

          18.6 Notices. Any notice required or permitted under this Lease
shall be in writing and shall be delivered either personally or by
depositing same in the United States Mail, postage prepaid, registered or
certified, return receipt requested, addressed to the intended recipient
at such party's address set forth in the Basic Lease Provisions or at
such other address as such party has theretofore specified by written
notice delivered in accordance with this paragraph. Any notice delivered
by mail in the manner specified in this paragraph shall be deemed
delivered on the earlier of the third day following deposit thereof in
the United States Mail or on the delivery date shown on the return
receipt prepared in connection therewith; and any such notice specifying
a default by Tenant shall be deemed sufficient for all purposes under
California Code of Civil Procedure Sections 1161 and 1162,
notwithstanding the fact that such notice is not personally served on
Tenant or that such notice does not demand possession of the Premises as
an alternative to Tenant's curing of such default.

          18.7 Merger.   Notwithstanding the acquisition (if same should occur)
by the same party of the title and interests of both Landlord and Tenant
under this Lease, there shall never be a merger of the estates of
Landlord and Tenant under this Lease, but instead the separate estates,
rights, duties and obligations of Landlord and Tenant, as existing
hereunder, shall remain unextinguished and continue, separately, in full
force and effect until this Lease expires or otherwise terminates in
accordance with the express provisions herein contained.

          18.8    Substituted Premises. [Intentionally deleted.]

          18.9 Headings. Words used in neuter gender include the feminine and
masculine, where applicable. If there is more than one Tenant, the
obligations imposed under this Lease upon Tenant shall be joint and
several. The headings and titles to the sections and paragraphs of this
Lease are used for convenience only and shall have no effect upon the
construction or interpretation of this Lease.

          18.10 Time And Applicable Law. Time is of the essence of this Lease
and all of its provisions. This Lease shall in all respects be governed
by and interpreted in accordance with the laws of the State of
California.

          18.11 Successors And Assigns. Each conveyance by Landlord or its
successors in interest of Landlord's interest in the Building or the
Premises prior to the expiration or termination of this Lease shall be
subject to this Lease and shall relieve the grantor of all further
liability or obligations as Landlord, except for such liability or
obligations accruing prior to the date of such conveyance. If any
Security Deposit has been given to Landlord, Landlord shall deliver such
Security Deposit to Landlord's successors in interest, whether such
interest is acquired by sale, transfer, foreclosure, deed in lieu of
foreclosure or otherwise. Subject to the foregoing and to the provisions
of Section 16, the terms, covenants and conditions contained herein shall
be binding upon and inure to the benefit of the heirs, successors,
executors, administrators and assigns of the parties hereto.

          18.12 Entry by Landlord. Landlord and its authorized representative
shall have the right to enter the Premises: (a) to inspect the Premises;
(b) to supply any service provided to Tenant hereunder: (c) to show the
Premises to prospective brokers, agents, purchasers, lenders or tenants;
(d) to post notices of non-responsibility, (e) to alter, improve or
repair the Premises and any other portion of the Building; and (f) to
erect scaffolding and other necessary structures, where required by the
work to be performed, all without reduction or abatement of rent. Tenant
hereby waives any claim for damages for any injury to or interference
with Tenant's business or quiet enjoyment of the Premises or any other
loss occasioned by such entry. Landlord shall at all times have a key to
unlock all doors in and about the Premises, excluding Tenant's vaults and
safes, and Landlord shall have the right to use any means which Landlord
deems proper to open said doors in an emergency, and any such entry to
the Premises shall not under any circumstances be construed or deemed to
be a forcible or unlawful entry into the Premises or a detainer of the
Premises or an eviction of Tenant from any portion of the Premises.

          18.13 Entire Agreement. This Lease, together with its exhibits,
contains all the agreements of the parties hereto and supersedes any
previous negotiations. There have been no representations made by the
Landlord or understandings made between the parties other than those set
forth in this Lease and its exhibits. This Lease may not be modified
except by a written instrument duly executed by the parties hereto.

          18.14 Severability. If any provision of this Lease or the
application of such provision to other persons or circumstances shall not
be affected thereby and shall be enforced to the greatest extent
permitted by law.

          18.15   Signs. Tenant shall not place or permit to be placed in or
upon the Premises where visible from outside the Premises or any part of
the Building, any signs, notices, drapes,  shutters, blinds or window
coatings, or displays of any type without the prior written consent of
Landlord. Landlord shall consent to the location at the cost of Tenant of
a building standard sign on or near the entrance of the Premises and
shall include Tenant in the Building directories located in the Building.
Landlord reserves the right in Landlord's sole discretion to place and
locate on the roof and exterior of the Building and in any area of the
Building not leased to Tenant, such signs, notices, displays and similar
items as Landlord deems appropriate in the proper operation of the
Building,

          18.16 Execution By Landlord. The submission of this document for
examination and negotiation does not constitute an offer to lease, or a
reservation of, or option for, the Premises. This document becomes
effective and binding only upon execution and delivery hereof by Tenant
and by Landlord, No act or omission of any employee or agent of Landlord
or of Landlord's broker shall alter, change or modify any of the
provisions hereof.

          18.17 Brokers. Tenant shall hold Landlord harmless from all damages
(including attorneys' fees and costs) resulting from any claims that may
be asserted against Landlord by any broker, finder, or other person with
whom Tenant has or purportedly has dealt, except the leasing agent for
the Building duly appointed by Landlord.

          18.18 Name of Building. Tenant shall not use the name of the
Building for any purpose other than the address of the business to be
conducted by Tenant in the Premises. Tenant shall not use any picture of
the Building in its advertising, stationery or in any other manner, so as
to imply that the entire Building is leased by Tenant. Landlord expressly
reserves the right at any time to change the name or street address of
the Building without in any manner being liable to Tenant therefor.

          18.19 Nonrecordability of Lease. Tenant agrees that in no event
shall this Lease or a memorandum hereof be recorded without Landlord's
express prior written consent, which consent Landlord may withhold in its
sole discretion.

          18.20 Construction. All provisions hereof, whether covenants or
conditions, shall be deemed to be both covenants and conditions, The
definitions contained in this Lease shall be used to interpret the Lease.
All rights and remedies of Landlord and Tenant shall, except as otherwise
expressly provided, be cumulative and non-exclusive of any other remedy
at law or in equity.

          18.21 Inability To Perform. This Lease and the obligations of
Tenant hereunder shall not be affected or impaired because Landlord is
unable to fulfill any of its obligations hereunder or is delayed in doing
so, if such inability or delay is caused by reason of force majeure,
strike, labor troubles, acts of God, acts of government, unavailability
of materials or labor, or any other cause beyond the control of Landlord.

          18.22 Authority. If Tenant is a corporation, each individual
executing this Lease on behalf of Tenant represents and warrants that
Tenant is qualified to do business in California and that he is duly
authorized to execute and deliver this Lease on behalf of Tenant and
shall deliver appropriate certification to that effect if requested. If
Tenant is a partnership, joint venture, or other unincorporated
association, each individual executing this Lease on behalf of Tenant
represents and warrants that he is duly authorized to execute and deliver
this Lease on behalf of Tenant and that this Lease is binding on Tenant.
Furthermore, Tenant agrees that the execution of any written consent
hereunder, or any written modification or termination of this Lease, by
any general partner of Tenant or any other authorized agent of Tenant,
shall be binding on Tenant.

          18.23 Quiet Enjoyment. So long as Tenant is not in default under
this Lease, Tenant shall have quiet enjoyment of the Premises for the
Term, subject to all the terms and conditions of this Lease and all liens
and encumbrances prior to this Lease.

19. EXTRA PARKING PERMITS

          Tenant, provided Tenant is not in default under this Lease, shall
have the right to utilize sixteen (1 fit extra parking permits at the
then current rate for monthly parking in the parking structure so long as
there is sufficient monthly parking available to reasonably provide for
the proportionate parking requirements of all the tenants within the
Building. If, in Landlord's opinion, there is insufficient parking, then
Landlord reserves the right to revoke the extra parking permits issued.

20.     LETTER OF CREDIT/SECURITY  DEPOSIT

          Within ten (10) days after execution of this Lease, Tenant shall
deposit with Landlord cash in the amount of $1,780.35 to increase the
cash portion of the Security Deposit held by Landlord to $13,233. 60, In
addition, Tenant shall deliver to Landlord a clean, irrevocable letter of
credit issued by a bank reasonably acceptable to Landlord in the amount
of $19,209.65. Such letter of credit shall have an expiration date not
less than one (1) year from the date of issuance and, should Tenant fail
to deliver to Landlord a renewal thereof or a new letter of credit within
thirty (30) days prior to such expiration date, Landlord shall have the
right to draw down the entire letter of credit and retain the proceeds
thereof as a cash Security Deposit. The letter of credit shall permit
partial drawings thereunder and shall be payable upon presentation of a
sight draft and a certificate from Landlord under the terms of the Lease
to draw down the funds requested in such sight draft.

21.     RIGHT TO NEGOTIATE LEASE OF ADDITIONAL  SPACE

          21.1 Grant of Right. During the Term of this Lease and provided
Tenant is not in material default under this Lease, Tenant shall have the
right to negotiate (the "Negotiation Right") to lease additional office
space in the Building as such space becomes available. This Negotiation
Right shall arise and may be exercised only in accordance with the terms
of this section.

          21.2 Notice of Space Requirement. As Tenant requires additional
space, Tenant shall notify Landlord in writing of its additional space
requirements, which notice shall state the number of square feet required
by Tenant (the "Requirement Notice"). Tenant's Negotiation Right shall
become operative upon Landlord's receipt of Tenant's Requirement Notice;
provided, however, that such Negotiation Right shell be subject to any
preexisting options, rights of refusal or rights to negotiate contained
in leases with other tenants. For purposes hereof, a right of refusal or
right to negotiate in another lease shall be deemed to preexist Tenant's
Negotiation Right where the same became operative prior to the date
Tenant delivered its Requirement Notice for additional space as set forth
in a previously delivered Requirement Notice; and such subsequent Notice
shall serve to terminate any previous Requirement Notice and Tenant's
Negotiation Right.

        27.3 Exercise of Negotiation Right. Where Tenant's Negotiation Right
is operative and not subject to any preexisting options, rights of
refusal or rights to negotiate in other leases, the following procedure
shall apply:

                         (a) At such time as office space in the Building encompassing
a square footage equal to or greater than that specified in Tenant's
Requirement Notice is available for lease, Landlord shall give Tenant
notice thereof and shall specify in such notice the additional office
space which is available and the rent and other basic economic terms on
which Landlord is willing to lease such additional office space to Tenant
(the "Offer Notice"), The rent specified in the Offer Notice will be
equal to the then fair market rental value for comparable premises in the
Building.

                         (b) Tenant shall have a period of five (5) business days
after receipt of the Offer Notice within which to notify Landlord in
writing of Tenant's exercise of the Negotiation Right. Should Tenant fail
to so notify Landlord within said five (5) business day period, Tenant's
Negotiation Right shall lapse and Landlord shall be free to deal with the
office space described in the Offer Notice without regard thereto.

                         (c) if Tenant gives Landlord timely notice of Tenant's
exercise of the Negotiation Right (the "Exercise Notice"), Tenant shall
specify in its Exercise Notice (i) the amount of additional office space
Tenant desires to lease (which shall not be less than the amount stated
in Tenant's Requirement Notice), (ii) whether the rent and other basic
economic terms described in the Offer Notice are acceptable to Tenant
and, if not, the rent or other basic economic terms Tenant proposes in
their place, and (iii) any additional terms or conditions Tenant desires
with respect to the lease of such additional office space. Promptly
following Landlord's receipt of Tenant's Exercise Notice, the parties
shall meet to negotiate an amendment to this Lease to expand the Premises
to include the additional office space specified therein (the "Expansion
Amendment"). The Expansion Amendment shall incorporate the terms and
provisions of this Lease except insofar as the same are inconsistent with
the rent and other basic economic terms the parties have negotiated
pursuant to this section or are not reasonably applicable to such
expansion.

                         (d) if the parties fail to mutually agree upon and execute a
definitive Expansion Amendment with in twenty (20) business days after
Tenant's delivery of the Exercise Notice, Tenant's Negotiation Right
shall lapse and Landlord shall be free to deal with the office space
described in Landlord's Offer Notice without regard thereto.

          21.4 Limitation of Right. Nothing in this section shall be
construed to require Landlord to lease to Tenant any portion of any floor
in the Building which would leave Landlord with a remainder of such floor
that was not commercially and economically rentable to third parties.

22.     TERMINATION OF EXISTING LEASE

As of the Commencement Date, Landlord shall terminate the entire
existing direct lease between Landlord and Tenant for a portion of
Tenant's premises on the ninth (9th) floor of the Building dated December
15, 1992, the Amendment to Lease dated April 30, 1993, the Second
Amendment to Lease dated December 21, 1993, and the Third Amendment to
Lease dated February 16, 1994 (collectively, "Existing Lease"),

 
	

TENANT:

	

TENANT:

	

WATERGATE TOWER ASSOCIATES,

	

SCOPUS TECHNOLOGY, INC.,

	

a California limited
partnership

	

a California
corporation

	

By: /s/ F.P. Lathrop, by Sandra L. Hyde

	

By: /s/ S. Sasson

	

Its: General Partner/Attorney-in-Fact

	

Its: Vice President, Operations

                         Exhibit A

                   Drawing of Floor Plan

                         Exhibit B 

                         Scope of  Work

1. Landlord shall be responsible, at its sole cost and expense, for
constructing certain tenant improvements ("Landlord's Work") in
accordance with the final plans and specifications ("Final Plans")
prepared by Carl Mehler & Associates dated as of August 9. 1994, with
general revisions dated August 15, 1994.

2. Any Changes to Landlord's Work from the Final Plans ("Change Orders")
may be made only at Tenant's written request, approved by Landlord.
Tenant shall be responsible for any delay in the Substantial Completion
of Landlord's Work and any increase in the cost of Landlord's Work as a
result of such Change Orders.

3.  Tenant shall be responsible, at its sole cost and expense, for any
telephone and computer installation, including wiring, and for any other
tenant improvements not included in the Final Plans.

 
	

WATERGATE TOWER ASSOCIATES,

	

SCOPUS TECHNOLOGY, INC.,

	

a California limited
partnership

	

a California
corporation

	

By: /s/ F.P. Lathrop, by Sandra L. Hyde

	

By: /s/ S. Sasson

	

Its: General Partner/Attorney-in-Fact

	

Its: Vice President, Operations

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