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                                                                    EXHIBIT 10.4

                             BUSINESS COMPLEX LEASE

Lease Preparation Date:    September 14, 2000
Lessor:                    AOPP Acquisition Corp. Two, A California Corporation
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Lessee:                    Microislet, Inc., A Delaware Corporation
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Guarantor:                 N/A
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1.       LEASE TERMS

         1.01. Premises: The leased Premises located within the Project as
indicated on Exhibit "A-1" and outlined on Exhibit "A-2" contains approximately
2,264 rentable square feet. The address of the leased Premises is: 6540 Lusk
Blvd., Suite C250, San Diego, CA 92121

         1.02. Building: The Premises is located in the Building indicated on
Exhibit "A-2" and contains 83,002 rentable square feet and is part of the
Project.

         1.03. Project: The Project, as indicated on Exhibit "A-3", which
consists of all buildings on the Property, of which the Premises is a part is
commonly referred to as: 6540 Lusk Blvd., San Diego, CA 92121
And contains approximately 83,002 rentable square feet.

         1.04. Property: The Premises, the Project, and all Lessor's land
thereunder or appurtenant thereto as described in Exhibit "A" represent the
Property.

         1.05. Lessee's Notice Address: Lessee's Notice Address is the address
of the leased Premises as stated in Paragraph 1.01 above unless otherwise
specified here: Same as 1.01

         1.06. Lessor's Notice Address: Lessors Notice Address is: 6370 Lusk
Blvd., Suite F211, San Diego, CA 92121

         1.07. Lessee's Permitted Use: Lessee and Lessor agree that Lessee may
only use the Premises for the following purpose(s): Offices for biotech company

         1.08. Lease Term: The Lease Term commences on October 1, 2000 and ends
on September 30, 2002 ( 24 months, and -0- days).

         1.09. Base Rent: During the original term of this Lease, Base Rent
shall be paid monthly in lawful money of the United States of America, in the
amounts specified below, during the applicable periods noted:

$  -0-         Beginning October 1, 2000      Ending October 31, 2000
$  3,736.00    Beginning November 1, 2000     Ending September 30, 2001
$  3,922.00    Beginning October 1, 2001      Ending September 30, 2002
$  N/A         Beginning N/A                  Ending N/A

         1.10. Security Deposit: $ 7472.00 payable in lawful money of the United
States of America.

         1.11. Lease Documentation Fee: $ 50.00

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         1.12. Additional Monthly Rent Charge: $ N/A for N/A including, but not
limited to the provisions of Paragraphs 3, 4, 5 and 6.

         1.13. Proportionate Share: Lessee's Proportionate Share of the Project,
which represents the approximate Proportionate share of the Premises to the
Project is .0273 Lessee's Proportionate Share of the Building within which it is
located, which represents the approximate proportionate share of the Premises to
the Building is .0273 . Proportionate Share may be adjusted during the Lease
Term if the size of the Project, Premises or Building changes.

         1.14. Expense Base Year: Lessee's Expense Base Year is 2001

         1.15. Broker(s): Tim Rickers, VOIT Commercial, 4370 La Jolla Village
Dr., Suite 980, San Diego, CA 92122

         1.16. Additional Attachments: Provisions and Exhibits

2.       LETTING; CONDITION; POSSESSION

         2.01. Lessor leases to Lessee, and Lessee leases from Lessor, the
Premises, as indicated in Paragraph 1.01 in consideration of Lessee's payment of
Base Rent and other payments hereunder subject to all of the terms, covenants
and conditions of this Lease and all recorded matters, laws, ordinances and
governmental regulations and orders. Lessee's possession and occupancy of the
Premises constitutes Lessee's acknowledgment that it has satisfied itself with
respect to the overall condition of the Premises, the present and future
suitability of the Premises for Lessee's intended use and the substantial
completion of Lessor constructed Lessee Improvements, if any, consistent with
Paragraph 10 below and specifically set forth in Exhibit "B".

         2.02. Lessee shall only use the Premises for its permitted use. Lessee
shall not occupy or use the Premises or any part thereof for other than its
permitted use and not for any use or purpose which is unlawful or deemed by
Lessor to be disreputable in any manner or dangerous to life, limb or property.

         2.03. Unless otherwise provided herein, any statement of square footage
set forth in this Lease is an approximation which Lessor and Lessee agree is
reasonable for all purposes and shall be the basis for this Lease. Lessor
reserves the right to change Lessee's proportionate share to reflect any
increase or decrease in the common area. Any use of the terms "rentable" and
"usable" is for convenience only, and such descriptions represent Lessor's
interpretation of such terms. If there are no Tenant Improvements or Exhibit B
is not attached hereto, then Lessee accepts the Premises in "AS-IS" condition
and Lessor shall have no obligation to provide or pay for any repair or other
work therein, except as stated in this Lease; and Lessee shall obtain and
deliver to Lessor a certificate of occupancy for the Premises from the
appropriate governmental authority.

         2.04. Lessor will deliver, where applicable, all systems in the
Premises to Lessee with existing plumbing, electrical, fire sprinkler, lighting,
air conditioning, heating and mechanical, in good working condition. Lessee has
thirty (30) days after the Lease Term commences, or Lessee's occupancy,
whichever is sooner, to notify Lessor, in writing, of any non-operative items,
and Lessor will promptly rectify same at Lessor's sole cost. However, if Lessee
does not give Lessor written notice of any non-operative items within this
notification period, all repairs to the Premises which are Lessee's
responsibility per Paragraph 11.01 of this Lease will become the obligation of
Lessee at Lessee's sole cost and expense.

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         2.05. On the date Lessee takes possession of the Premises, to Lessor's
best knowledge, all Lessor-constructed Lessee Improvements on or in the Premises
as set forth in Exhibit "B", if any, will comply with all then applicable
governmental agency laws, codes, regulations, ordinances, covenants and
restrictions. However, Lessor makes no warranty nor accepts any responsibility
for specifically meeting such compliance presently or in the future with respect
to any Lessee activity, including but not limited to: a.) any Lessee
Improvements or Lessee Alterations, as defined in Paragraph 10 below, made or to
be made by Lessee or at Lessee's direction; b.) Lessee's Permitted Use; c.)
Lessee's occupancy of the Premises and/or the Property; and d.) the presence of
Lessee's employees, agents, contractors, suppliers, invitees or licensees on or
about the Property.

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         2.06. If for any reason Lessor cannot deliver possession of the
Premises on the Commencement Date of the Lease Term, Lessor will not be subject
to any liability nor will the validity of this Lease be affected in any manner.
However, if Lessee has not caused such delay, there will be a proportionate
adjustment of rent to cover the period between the Commencement Date of the
Lease Term and the actual date when possession is delivered, and based on the
actual date possession is delivered, both the commencement and ending dates of
the Lease Term, and the Beginning and Ending dates of each Applicable Period,
shall be adjusted accordingly, while the lengths of the Lease Term and each
Applicable Period shall remain constant. If for any reason possession of the
Premises is not delivered within ninety (90) days of the date the Lease Term
commences, Lessor or Lessee, (provided Lessee is not the cause of such delay),
may cancel this Lease with written notification. If for any reason Lessee fails
to take possession of the Premises within fifteen (15) days after Lessor
notifies Lessee in writing that the Premises is ready for Lessee's occupancy,
Lessee will be in Breach, as defined in Paragraph 20.02 below, of this Lease.

         2.07. Subject to Paragraph 10.05 and Lessor's right to retain
improvements, upon termination of this Lease, Lessee agrees to return the
Premises to Lessor in the same condition as received by Lessee as of the
original date Lessor delivers the Premises to Lessee, normal wear and tear
excepted.

         2.08. If Lessee, with Lessor's prior written consent, occupies the
Premises prior to the Commencement Date, Lessee's occupancy of the Premises
shall be subject to all the provisions of the Lease. Early occupancy of the
Premises shall not advance the expiration date of the Lease. Lessee shall not
pay Base Rent during the early occupancy period but all other charges shall
begin to accrue on the date of such early occupancy. Lessee shall, however,
provide Lessor with evidence of insurance coverage pursuant to Paragraph 12,
prior to such early occupancy.

3.       BASE RENT

         3.01. On or before the first day of each calendar month of the Lease
Term, Lessee will pay to Lessor in lawful monies of the United States of
America, without deduction or offset, prior notice or demand, Base Rent at the
place Lessor designates, However, the first month's Base Rent and the Security
Deposit will be due and payable concurrently with Lessee's execution of this
Lease.

         3.02. If indicated in Exhibit "B", Base Rent includes an amortized
estimation of Lessor's cost of making Lessee Improvements on Lessee's behalf
which, subject to the terms and conditions of this Lease, shall be paid in equal
installments as part of Base Rent by Lessee over the Lease Term. Subject to the
provisions of Exhibit "B", should Lessor and Lessee agree to any additional
Lessee Improvements not included in this estimate or if actual Lessee
Improvement costs and expenses exceed this estimate, Lessor may increase Base
Rent according to the terms and conditions outlined in Exhibit "B".

4.       ADDITIONAL RENT

         4.01. Unless otherwise specifically stated, any charge payable by
Lessee under this Lease other than Base Rent is called "Additional Rent".
Additional Rent is to be paid concurrently with and subject to the same terms
and conditions of Base Rent. The term "rent" whenever used in this Lease means
Base Rent, Additional Rent and/or any other monies payable by Lessee under the
terms of this Lease. In the event any rent payable under this Lease commences or
ends on a day other than the first day of a calendar month, the actual number of
days in the prorated month will be used as the basis for the calculation.

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         4.02. "Operating Expenses" as used herein shall include all costs and
expenses, operation, maintenance, and repair of the Premises, Building, Project
and Property, or any part thereof, incurred by Lessor including but not limited
to: (1) Property supplies, materials, labor, equipment, and tools; (2)
Lessor-incurred utility and service costs and expenses (as further described in
Paragraph 4.03B below), security, janitorial, and all applicable service and
maintenance agreements; (3) Property related legal, accounting, and consulting
fees, costs and expenses; (4) insurance premiums for all policies deemed
necessary by Lessor and/or its lenders, and all deductible amounts under such
policies (as further described in Paragraph 4.03C below); (5) costs and expenses
of operating, maintaining, and repairing common areas of the Property, including
but not limited to, hallways, restrooms, conference rooms, exercise rooms,
equipment and telephone rooms, driving, parking and other paved or unpaved areas
(including but not limited to, resurfacing and striping), landscaped areas
(including but not limited to, tree trimming), walkways, building exteriors
(including but not limited to, painting and roof repairs), signs and
directories, and elevators and stairways; (6) capital improvements and
replacements (including all financing costs and interest charges) which have
been made to improve the operating efficiency of the Property; (7) capital
improvements and replacements (including but not limited to, all financing costs
and interest charges) required by any governmental authority or law including
but not limited to, compliance required under the Americans with Disabilities
Act of 1990; (8) compensation (including but not limited to, any payroll taxes,
worker's compensation for employees, and customary employee benefits) of all
persons, including independent contractors, who perform duties, or render
services on behalf of, or in connection with the Property, or any part thereof,
including but not limited to, Property operations, maintenance, repair, and
rehabilitation; (9) Property management fees; (10) Real Property Taxes (as
further described in Paragraph 4.03A, below), provided, however, wherever the
Lessee and/or any other lessee of space within the Property has agreed in its
lease or otherwise to provide any item of such services partially or entirely at
its own expense, or wherever in the Lessor's judgment any such significant item
of expense is not incurred with respect to or for the benefit of all of the
space within the Property, in allocating the Operating Expenses pursuant to the
foregoing provisions of this subsection the Lessor shall make an appropriate
adjustment, as aforesaid, so as to avoid allocating to the Lessee or to such
other lessee (as the case may be) those Operating Expenses covering such
services already being provided by the Lessee or by such other lessee at its own
expense, or to avoid allocating to all of the net rentable space within the
Property those Operating Costs incurred only with respect to a portion thereof,
as aforesaid. All Operating Expenses other than taxes, utilities and insurance
are here referred to as Common Area Expenses (CAM).

4.03.

                  4.03A. A "Real Property Taxes" as used herein shall include
any fee, license, tax, late fee, levy, charge, assessment, penalty (if a result
of Lessee's delinquency or negligence), or surcharge (hereinafter individually
and/or collectively referred to as "Tax") imposed by any authority (including
but not limited to, any federal, state, county, or local government, or any
school, agricultural, lighting, drainage, or other improvement district, or
public or private association) having the direct or indirect power to tax and
where such Tax is imposed against the Property, or any part thereof, or Lessor
in connection with its ownership or operation of the Property, including but not
limited to, (1) any Tax on Lessor's right to receive, or the receipt of, rent or
income from the Property, or any part thereof, or Tax against Lessor's business
of leasing the Property; (2) any Tax by any authority for services or
maintenance provided to the Property, or any part thereof, including but not
limited to, fire protection, streets, sidewalks, and utilities; (3) any Tax on
real estate or personal property levied with respect to the Property, or any
part thereof, and any fixtures and equipment and other property of Lessor or the
Property used in connection with the operation, maintenance or repair of the
Property; (4) any Tax imposed on this transaction, or based upon a reassessment
of the Property, or any part thereof, due to a change in ownership or transfer
of all or part of Lessor's interest in the Property, or any part thereof and,
(5) any Tax replacing, substituting for, or in addition to any Tax previously
included with this definition. Real Property Taxes do not include: (1) Lessor's
federal or state income, franchise, inheritance, or estate taxes; or (2)
Lessee's personal property taxes (taxes charged against Lessee's trade fixtures,
furnishings, equipment, or other personal property) which are the sole
responsibility of Lessee, and shall be billed directly to, and paid in a timely
manner by Lessee.

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                  4.03B. "Utility and Service Costs" as used herein shall
include all Lessor incurred utility and service costs and expenses including,
but not limited to water, electricity, gas, heating, lighting, steam sewer,
waste disposal, air conditioning, heating and ventilation.

                  4.03C. "Insurance" as used herein shall include all insurance
premiums for all policies deemed necessary by Lessor and/or its lenders,
including but not limited to, worker's compensation, liability, commercial
general liability, automobile, rental interruption insurance and any and all
additional endorsements, extended coverage, riders under or attached to such
policies.

         4.04. If the Operating Expenses incurred by Lessor for any "Expense
Comparison Year" (defined as each calendar year after Lessee's Expense Base
Year) are greater than those incurred in Lessee's Expense Base Year, then Lessee
will pay as Additional Rent an amount equal to the difference multiplied by
Lessee's Proportionate Share. In the event of any partial Expense Comparison
Year, Lessee will pay the increase, if any, based on the actual number of
elapsed applicable days. All Operating Expenses will be adjusted to reflect an
average Project occupancy level of eighty percent (80%) during any calendar year
in which the Project is not at least eighty percent (80%) occupied. Operating
Expense Estimates and Actualized Operating Expenses will be determined as
outlined in 4.05A, 4.05B below and subject to the provisions of 4.07.

         4.05. Lessee's Operating Expense estimates shall be determined as
follows:

                  4.05A. Lessee's Operating Expense estimates: On or about April
1st of each calendar year, Lessor will provide Lessee with a statement of: (1)
Lessee's annual share of estimated Operating Expenses for the then current
calendar year; (2) Lessee's new monthly Operating Expense estimate for the then
current year; and, (3) Lessee's retroactive estimate correction billing (for the
period of January 1st through the date immediately prior to the commencement
date of Lessee's new monthly Operating Expense estimate) for the difference
between Lessee's new and previously billed monthly Operating Expense estimates
for the then current year.

                           4.05A(1). Annual estimate share: Lessee's annual
share of estimated Operating Expenses for the then current calendar year shall
be determined by multiplying Lessor's estimated total Operating Expenses for the
then current calendar year, by Lessee's Proportionate Share (of the Project or
Building, as applicable) identified in Paragraph 1.13.

                           4.05A(2). Monthly Operating Expense estimate:
Lessee's new monthly Operating Expense estimate for the then current calendar
year shall be calculated by dividing Lessee's annual share of estimated
Operating Expenses, as determined above, by 12.

                           4.05A(3). Retroactive estimate correction: Lessee's
share of the change in Operating Expense estimates retroactive to January Sit of
each year shall be determined as follows: For the then current calendar year,
the total of Lessee monthly Operating Expense estimates billed prior to the
commencement of Lessee's new monthly Operating Expense estimate shall be
subtracted from Lessee's new monthly Operating Expense estimate multiplied by
the number of elapsed months within the same period.

                  4.05B. Lessee's share of actualized annual Operating Expenses:
On or about April 1st of each year, Lessor will provide Lessee with a statement
reflecting the total Operating Expenses for the calendar year just ended. If the
total of Lessee's Operating Expense estimates billed for the calendar year just
ended are less than Lessee's share of the actualized Operating Expenses for the
calendar year just ended, the statement will indicate the payment amount and
date due. If Lessee has paid more than its share of Operating Expenses for the
preceding calendar year, Lessor will credit the overpayment towards Lessee's
future Operating Expense obligations.

         4.06. Under this Lease, monthly Operating Expense estimates,
retroactive estimate corrections, and Lessee's share of actualized annual
Operating Expenses are considered Additional Rent. Monthly Operating Expense
estimates are due on the Sit of each month and shall commence in the month
specified by Lessor. Lessee's retroactive estimate correction, and actualized
annual Operating Expense charges, if any, shall be due, in full, on the date(s)
specified by Lessor.

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         4.07. Lessee will not be entitled to any reduction, refund, offset,
allowance or rebate should any Real Property Taxes be retroactively reduced,
credited, abated or exempted by any direct or indirect taxing authority for any
prior taxation or assessment period. If Lessor fails to provide Lessee with an
Operating Expense statement by April 1st of any calendar year, or elects not to
bill Lessee its share of actualized Operating Expenses, and/or Operating
Expenses estimate(s), or estimate increase(s) for any period of time, Lessor's
right to bill and collect these charges from Lessee at a later time is not
waived.

         4.08. Whether now in force or hereafter in force, Lessee will pay as
Additional Rent its share of any duties, levies or fees resulting from any
statutes or regulations, or interpretations thereof, enacted by any governing
authority which pertains to Lessor's or Lessee's use, ownership, occupancy or
alteration of the Premises, Project, or Property, or any part thereof. Lessee's
share of such duties or fees will be based on Lessee's Proportionate Share as
indicated in Paragraph 1.13, or other equitable method determined by Lessor in
its sole discretion. In the event the Property, or any part thereof, shares
common Operating Expenses, commonly used areas, land or other items not
exclusive to the Property, Lessor shall allocate and bill Lessee its share of
any costs and expenses attributable to such sharing on an equitable basis, as
determined by Lessor in its sole discretion.

         4.09. In the event Lessee wishes to audit any Lessee rent charge, such
a review shall be performed only at a time and location designated solely by
Lessor, and only if Lessee is not in Default, as defined in Paragraph 20.02
below at the time of the audit request and/or at any time during the course of
the audit. Lessor and Lessee agree that any Lessee audit must be conducted
within six (6) months of the date the rent charge becomes due, and if this audit
is not conducted within this period of time, Lessee's right to audit is waived,
and the rent charge, as originally billed, including all calculations used as
the basis for the Base Year or expense stop shall be deemed conclusive and final
for all purposes under this Lease.

5.       LATE CHARGES

         Any installment, including any partial installment, of Base Rent,
Additional Rent, rent or any other rent charge payable which is not received by
Lessor within five (5) days after it becomes due, shall be considered past due,
and shall constitute a default per Paragraph 20.02 below and Lessee shall,
without the necessity of notification from Lessor, pay Lessor a late charge
equal to fifty dollars ($50.00) or ten percent (10%) of the then delinquent
amount, whichever is greater. Additionally, a fifty dollar ($50.00) handling fee
will be paid to Lessor by Lessee for each bank returned check which return shall
constitute a Default, and Lessee will be required to make all future payments to
Lessor by money order or cashiers check. The acceptance of late charges and
returned check charges by Lessor will in no way constitute a waiver of Lessee's
Default with respect to any overdue amount nor prevent Lessor from exercising
any of its rights or remedies resulting from such late payment.

6.       SECURITY DEPOSIT

         6.01. Upon Lessee's execution of this Lease, Lessee will deposit with
Lessor an initial Security Deposit in the amount specified in Paragraph 1.10 as
security for Lessee's full and faithful performance of every provision under
this Lease. Lessor will not be required to keep the Security Deposit separate
from its general funds and has no obligation or liability for payment of
interest thereon (except when required by law). Any time the Base Rent increases
during the Lease Term, Lessee will deposit additional monies with Lessor as an
addition to the Security Deposit so that the total amount of the Security
Deposit will at all times at a minimum bear the same proportion to the then
current Base Rent as the initial Security Deposit bears to the initial Base Rent
set forth in Paragraph 1.09. Such additional Security Deposit monies will be due
and payable concurrently with the next payment of Base Rent, after receipt of
written notice from Lessor of the need to increase this Security Deposit as
required by this Paragraph.

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         6.02. In no event will Lessee have the right to apply any part of the
Security Deposit to any amounts payable under the terms of this Lease nor is it
a measure of Lessor's damages in event of a Default or Breach by Lessee. If
Lessee fails to pay any rent due herein, or otherwise is in Default or in Breach
of any provision of this Lease, Lessor may use, apply or retain all or any
portion of the Security Deposit for the payment of any amount due Lessor, or to
compensate Lessor, for any loss or damage suffered by Lessee's Default or
Breach. Within five (5) days after written notification by Lessor, Lessee will
pay monies to Lessor sufficient to restore the Security Deposit to the full
amount required under this Lease.

         6.03. Within sixty (60) days (or as otherwise prescribed by law) after
the expiration or earlier termination of the Lease Term and after Lessee has
vacated the Premises, Lessor will return to Lessee that portion of the Security
Deposit not used or applied by Lessor to fulfill any and all of Lessee's
obligations under this Lease.

         6.04. At any time during the Lease Term, within ten (10) days after
written request from Lessor, Lessee shall deliver to Lessor such financial
statements as Lessor reasonably requires to verify the net worth of Lessee or
any assignee, subtenant, or guarantor of Lessee. In addition, Lessee shall
deliver to any lender designated by Lessor any financial statements required by
such lender to facilitate the financing or refinancing of the Property. Lessee
represents and warrants to Lessor that each financial statement is a true and
accurate statement as of the date of such statement. All financial statements
shall be confidential and shall be used only for the purposes set forth in this
Lease.

7.       USE OF PREMISES; QUIET ENJOYMENT; TRASH

         7.01. The Premises will be used and occupied only for Lessee's
Permitted Use, as described in Paragraph 1.07. Lessee agrees it has negotiated
its Permitted Use in a fair and reasonable manner and, as so written, the
Permitted Use is enforceable for all purposes under this Lease. Further, Lessee
expressly waives the right to challenge the validity of its Permitted Use,
including but not limited to,, as defined in Paragraph 20. below, challenges
which pertain to Default or Breach of this Lease, mitigation of damages, and any
and all Transfers under this Lease.

         7.02. Lessee will comply with all conditions and covenants of this
Lease, and all applicable governmental agency laws, codes, regulations,
ordinances, covenants and restrictions affecting the Property or any part
thereof. Lessee will not use or permit the use of the Premises, the Property or
any part thereof, in a manner that is unlawful, diminishes the appearance or
aesthetic quality of any part of the Property, creates waste or a nuisance,
disturbs Lessor, other lessees or any neighboring property occupants, or causes
damage to the Property, or any part thereof, or to any neighboring property,
persona! property or person. Any animals, excepting guide dogs, on or about the
Property or any part thereof are expressly prohibited.

         7.03. Lessor agrees that so long as Lessee performs all of its
obligations under the Lease, Lessee's possession, quiet enjoyment and use of the
Premises for the term of the Lease will not be disturbed by Lessor, subject only
to the provisions of the Lease.

         7.04. Lessor-provided trash receptacles are for the common use of all
lessees, however, such receptacles are neither intended for use by any lessee
who generates excessive trash, trade or otherwise, nor for trash generated by
Lessee off the Premises. In the event of any excessive trash receptacle use by
Lessee, as determined by Lessor in its sole discretion, Lessor will have the
right to remove such excess trash, charge all costs and expenses attributable to
its removal to Lessee, and require Lessee to obtain, at its sole cost and
expense, its own trash receptacles, to be placed in a location designated by
Lessor for Lessee's specific use. Under no circumstances may any "Hazardous
Materials", as defined in Paragraph 14 below, any materials not permitted by
law, any materials improperly or illegally handled, stored, contained or
released, or any materials which are not permitted by Lessor, as determined in
its sole discretion, be disposed of in any trash receptacles located in or about
the Property. Lessee will not cause, maintain or permit any outside storage on
or about the Property without prior written consent by Lessor, which consent, if
given, may be revoked at any time. In the event of any unauthorized outside
storage by Lessee, Lessor will have the right, without notice, in addition to
such other rights and remedies it may have, to remove any such storage and
charge all direct and associated costs and expenses to Lessee.

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8.       PARKING

         All parking will comply with the terms and conditions of this Lease and
the parking criteria set forth in Exhibit "D". Unless otherwise stated, Lessee,
its employees, agents, contractors, suppliers, invitees and licensees will have
a non-exclusive privilege, in conjunction with Lessor, other lessees of the
Property. and such other persons as Lessor may designate, to use those parking
spaces designated by Lessor for public parking. Vehicles parked in public
parking areas will be no larger than full-sized passenger automobiles or pick-up
trucks. Larger vehicles, if permitted in writing by Lessor, will be parked,
loaded and unloaded in locations designated by Lessor. Lessor reserves the
right, without notice to Lessee, to tow away at Lessee's sole cost and expense
any vehicles parked in any parking area for any continuous period of 24 hours or
more, or earlier if Lessor, in its sole discretion, determines such parking to
be a hazard or inconvenience to other lessees or Lessor, upon prior written
notice to Lessee, or violates any rules or regulations or posted notices related
to parking. Lessor shall not be responsible for enforcing Lessee's parking
rights against third parties. From time to time, Lessor reserves the right, upon
written notice to Lessee, to change the location, the availability and nature of
parking spaces, establish reasonable time limits on parking, and, on an
equitable basis, assign specific spaces with or without charge to Lessee as
Additional Rent.

9.       UTILITIES

         9.01. SERVICED SPACE: Lessor will provide to the Premises between the
hours of 8:00 a.m. and 6:00 p.m., Monday through Friday, (other than on New
Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas Day) during the Term; and between 9:00 a.m. and 1:00 p.m. Saturday or
during any other time periods or days that Lessor may establish or change from
time to time:

                  A. Heat, air-conditioning and/or gas as appropriate,
electricity and water suitable, in Lessor's opinion, for the Premises. If Lessee
uses any utility service in excess of normal office use, which Lessor may
determine in its sole discretion, Lessor reserves the right to charge Lessee for
such excess use and/or separately meter such service and charge Lessee for all
installation costs and expenses.

                  B. Such janitorial services as are, in Lessor's sole
discretion, commercially reasonable.

                  C. Elevator service, if the Project is equipped with an
elevator, provided twenty-four (24) hours each day, subject to any rules and
regulations enacted by Lessor.

         9.02. Lessor shall not be obligated to provide to or for the benefit of
the Premises any of the services referred to in the provisions of this paragraph
other than during the hours referred to herein. If the Landlord elects in its
sole discretion to provide or make available such services other than during
such hours, and if the Lessee utilizes any of them, Lessee shall pay to Lessor
as Additional Rent the amount from time to time charged by Lessor therefor, as
set forth on the written schedule of such charges provided by the Lessor to the
Lessee.

         9.03. In the event it is not possible for Lessee to pay directly for
any utility service, the utility service may, at Lessor's discretion, be
obtained in Lessor's name, and Lessee will pay Lessor, as Additional Rent,
Lessor's best estimate of Lessee's share of such utility costs and expenses,
Lessor's best estimate will be determined by Lessor in its sole discretion and
will be subject to change as Lessor deems necessary. Periodically during the
Lease Term, Lessor will compare Lessee's utility estimates to actual utility
costs and expenses incurred, and bill or credit, whichever is applicable, Lessee
for any difference. Lessor reserves the right to separately meter any such
service not so separately metered at Lessee's sole cost and expense at any time
during the Lease Term, at which time Lessee shall be directly responsible for
payment of such expense directly to the utility service provider, if possible.

                                       8
<PAGE>

         9.04. Lessor will not be liable or deemed in Default or Breach, nor
will there be any abatement of rent, for any interruption or reduction of
utilities, utility services or telecommunication services. Additionally, Lessee
agrees to comply with any energy conservation programs implemented by Lessor by
reason of enacted laws or ordinances, or otherwise.

         9.05. Lessor reserves the right, in its sole discretion, to designate,
at any time, Lessee's utility equipment and service providers for any utility
available for Lessee's use within the Property.

         9.06. By execution of this Lease, Lessee acknowledges it has satisfied
itself as to the adequacy of any Lessor owned telephone equipment, if any, and
the quantity of telephone lines and service connections to the Building
available for Lessee's use, Should Lessee require additional equipment, lines or
wiring, beyond the initial installation of the outside line to the building
itself, any and all associated costs and expense will be borne directly by
Lessee and be subject to the provisions of this Lease and Lessor's written
approval. Additionally prior to termination of this Lease, Lessee at its sole
cost and expense, will remove all equipment, both above and below the ceiling to
the phone closet where applicable, (if required by Lessor), including but not
limited to, all lines, wiring and all telephone boards belonging to Lessee and
restore the Premises to the same condition as before such installation.

         9.07. Lessee acknowledges and agrees that the number and installation
of telephone lines to its Premises, including any telephone, telecommunication
or other communication equipment (specifically including any antennas, towers
(microwave or otherwise) or other exterior equipment of any nature) which either
utilizes telephone or telecommunications equipment or technology or in any other
manner affects Lessor's ability to provide telephone or communications
facilities to the Project is subject to Lessor's approval, which will not be
unreasonably withheld. Additionally, in the event that Lessee wishes additional
telephone, telecommunication or other communication lines or access after the
date of Lessee's execution of this Lease, no such additional lines or access
shall be permitted nor other telephone, telecommunication or communication
related equipment installed without first securing the prior written consent of
Lessor, which will not be unreasonably withheld. Any telecommunications
installation shall be subject to the following:

(1) Lessor shall incur no expense whatsoever with respect to any aspect of
Lessee's need for additional access or equipment, including without limitation,
the costs of installation, consultants, materials, permits, service, etc.

(2) Prior to the commencement of any work in or about the Building to install
such additional access, lines or equipment, Lessee shall agree to abide by such
rules and regulations, as solely determined by Lessor.

(3) Lessor reasonably determines that there is sufficient space in the Building
for the placement of all of the lines, access and equipment.

(4) Lessee agrees to compensate Lessor the reasonable amount determined by
Lessor for space used in the Building for the storage and maintenance of the
equipment, if any lies outside the leased Premises, and for all costs that may
be incurred by Lessor in arranging for access by the Lessee's personnel,
security for Lessee's equipment, and any other such costs as Lessor may expect
to incur.

(5) Any other requirements Lessor may deem reasonable.

The refusal of Lessor to consent to any request shall not be deemed a Default or
Breach by Lessor of its obligation under this Lease nor be grounds for any
termination or offset by Lessee. Lessee agrees that to the extent service by any
telephone or communication equipment is interrupted, curtailed, or discontinued,
Lessor shall have no obligation or liability with respect thereto and it shall
be the sole obligation of Lessee at its expense to obtain substitute service,

                                       9
<PAGE>

but only with Lessor's prior written permission, which shall not be unreasonably
withheld. Lessor's consent under this section shall not be deemed a warranty or
representation by Lessor as to the availability or suitability of the present or
future telephone or communications equipment, connections, compatibility or
space available for any additional equipment, lines or access. The provisions of
this clause may be enforced solely by the Lessee and Lessor, and are not for the
benefit of another party, specifically, without limitation, no telephone or
telecommunications provider shall be deemed a third party beneficiary of the
Lease.

10.      LESSEE IMPROVEMENTS; LESSEE ALTERATIONS AND MECHANIC'S LIENS

         10.01. Any improvements constructed under this Lease on behalf of
Lessee or at Lessee's expense prior to Lessor's initial delivery of the Premises
are referred to throughout this Lease as "Lessee Improvements". All Lessee
Improvements will be performed in accordance with the terms and conditions
outlined in Exhibit "B". Upon substantial completion, as determined by Lessor,
of the Lessee Improvements outlined in Exhibit "B", Lessor will be relieved of
any further obligation to alter, change, decorate or improve the Premises, or
any part thereof.

         10.02. Lessor's prior written consent is required for any: (a) Lessee
constructed Lessee Improvements; and (b) any alterations, utility installations,
additions, or other improvements made by Lessee, at its sole cost and expense,
after Lessor's initial delivery of the Premises (hereafter collectively referred
to as Lessee Alterations). Lessors consent will be conditioned upon its approval
of. (i) Lessee's contractor(s); (ii) detailed plans and work specifications of
Lessee Alterations; and (iii) certificates of insurance from Lessee's
contractor(s) for commercial general liability, automobile liability and
property damage insurance with limits not less than $2,000,000 / $250,000 /
$500,000 respectively endorsed to show Lessor as an additional insured
evidencing Lessor's requirement to be notified at least thirty (30) days in
advance of any change, expiration or cancellation of any such policies along
with proof of a current worker's compensation policy. In addition, Lessee must
obtain all approvals and permits required by any and all governmental
authorities and provide same to Lessor prior to commencement of any work, and
after work commences must comply with all conditions of such approvals and
permits and perform work in a prompt and expeditious manner with good and
sufficient materials. Lessor also retains the right, as a condition of its
consent, to require Lessee to provide Lessor with a lien and completion bond in
a form acceptable to Lessor in an amount equal to one and one-half times the
estimated cost of Lessee constructed Lessee Improvements and Lessee Alterations
and/or require the inclusion of Lessor's non-responsibility language in all
contracts in a form approved by Lessor. Lessor shall be entitled to a contract
management fee of 15% of the total cost of such construction. Lessee will give
Lessor a minimum of fifteen (15) days prior written notice to the commencement
of any Lessee constructed Lessee Improvements and Lessee Alterations to allow
Lessor sufficient time in which to post notices of non-responsibility or no
liability for work then in progress in, on, or about the Premises as provided by
law. Upon completion of any improvements, all alterations or additions, Lessee
shall deliver to Lessor accurate, reproducible as-built plans of such
construction.

         10.03. Lessor's approval of any Lessee constructed Lessee Improvements
and Lessee Alterations will not create any liability whatsoever on the part of
Lessor. By way of example and without limitation, Lessor's approval of Lessee's
plans and work specifications will not create any responsibility or liability on
the part of Lessor for their sufficiency, completeness or compliance with any
and all governmental laws, codes, regulations, ordinances, covenants and
restrictions (including without reservation any and all provisions of the
Americans with Disabilities Act of 1990 applicable to the Property, or any part
thereof).

         10.04. Lessee will pay when due, all claims for services, labor and
materials furnished by, or at the request of Lessee, including any claims which
are secured by any mechanic's or materialmen's or other lien against the
Property, or any interest therein. Lessee agrees that should any lien be posted
on the Property due to work performed, materials furnished, or obligations
incurred by Lessee, or its employees, agents, contractors, suppliers, invitees
or licensees, Lessee will immediately notify Lessor and proceed to remove such
lien. Lessee further acknowledges that it will remain liable to Lessor and
indemnify Lessor for any costs and expenses or damages to Lessor or the Property
or any interest therein as a result of such lien(s). If Lessee, in good faith,
contests the validity of any such lien, claim or demand, Lessee will, at its
sole expense, defend and protect itself, Lessor and the Property, or any part
thereof. To ensure such protection of Lessor and the Property and any part
thereof, Lessor may, at its sole option, require Lessee to provide Lessor with a
surety bond satisfactory to Lessor in an amount deemed appropriate by Lessor
which will indemnify Lessor against any liability and ensure the Property, or

                                       10
<PAGE>

any part thereof, is free from the effect of such a lien or claim. In addition,
Lessor may require Lessee to pay all legal fees of Lessor's attorney(s) of
choice and any other associated costs and expenses should Lessor decide it is in
its best interest to participate in such an action. If Lessee fails to keep the
Property, or any part thereof, free from any lien or provide a Lessor approved
surety bond, then, in addition to any other rights and remedies available to
Lessor, Lessor may take any action necessary to discharge such a lien, including
but not limited to, payment to the claimant on whose behalf the lien was filed,
and regardless of the corrective action taken by Lessor, Lessee will be liable
to Lessor for all costs and expenses of such action to discharge the lien,
including, but not limited to, any legal fees and costs.

         10.05. All Lessee Improvements and Lessee Alterations are part of the
realty and belong to Lessor. As a condition of Lessor consenting to any Lessee
Improvements or Lessee Alterations, Lessor reserves the right, at any time to:
(i) require Lessee to pay an amount determined by Lessor to cover the costs of
demolishing part or all of any Lessee Improvements or Lessee Alterations and or
the cost of returning the Premises to their condition before any such work
commenced (normal wear and tear excepted); or (ii) elect to make Lessee the
owner of all or any specified part and, upon termination of this Lease, require
Lessee to remove same at its sole cost and expense. The provisions of this
Paragraph shall survive the termination of this Lease.

         10.06. Lessee may, without prior written consent of Lessor, make
non-structural installations within the Premises of its trade fixtures,
equipment, and machinery in conformance with all applicable governing agency
laws, codes, regulations, ordinances, covenants and restrictions, and they may
be removed upon termination of this Lease provided the Premises are restored to
its condition at the commencement of this Lease and no material damage to the
Premises will occur. All such installations shall be made by a licensed and
bonded contractor, approved by Lessor, with all permits obtained when required
by law.

         10.07. Lessor retains the right to construct or permit construction of
improvements, and/or Lessee Alterations, for new and existing lessees and to
alter any commonly used areas in or about the Property. Notwithstanding anything
which may be contained in this Lease, Lessee understands this right of Lessor
and agrees that such construction will not be deemed to constitute a Default or
a Breach of this Lease by Lessor. Lessee waives any such claims which it might
have arising from such construction.

11.      REPAIRS

         11.01. Lessee will, at all times and at its sole cost and expense, keep
all parts of the Premises in good order, condition and repair, and all equipment
and facilities within or serving the Premises, including but not limited to:
windows, glass and plate glass, doors and office entry(s), walls and finish
work, floors and floor coverings, plumbing work and fixtures. Lessee will keep
the Premises and every part thereof in good order, condition and repair
regardless of whether any portion of the Premises requiring repairs, or the
means of repairing same are reasonably or readily accessible. Additionally,
Lessee shall be obligated to maintain and repair the Premises whether the need
for such repairs or maintenance occurs as a result of Lessee's use, any prior
use, vandalism, acts of third parties, Force Majeure or the age of the Premises.
The standard for comparison of condition will be the condition of the Premises
as of the original date of Lessor's delivery of the Premises and failure to meet
such standard shall create the need to repair. All Lessee repairs will be made
by a licensed and bonded contractor, approved by Lessor, with permits and any
other governmental agency approvals and requirements obtained and observed, and
conform to all requirements of Paragraph 10.02 herein. Lessor's maintenance and
repair obligations are limited to air-conditioning and other equipment,
facilities and areas used in common with other lessees, exterior walls,
foundations and exterior roofs which Lessor agrees to repair and maintain on
behalf of Lessee unless such repairs are due to negligent or intentional acts of
Lessee or its employees, agents, contractors, suppliers, invitees or licensees.

                                       11
<PAGE>

         11.02. Lessee expressly waives the benefit of any statute or other
legal right now or hereafter in effect which would otherwise afford Lessee the
right to make repairs at Lessor's expense. whether by deduction of rent or
otherwise, or to terminate this Lease because of Lessor's failure to keep the
Property, or any part thereof in good order, condition and repair. If Lessee
does not keep the Premises in good order, condition, conforming to and
consistent with Lessor-specified standard colors, materials and quality, or
fails to make any Lessor required maintenance or repairs, Lessor reserves the
right to perform such obligations of Lessee on Lessee's behalf, and Lessee will
reimburse Lessor for any direct and indirect costs and expenses incurred
immediately upon demand. Failure by Lessee to pay for such costs and expenses
within five (5) days of written notification by Lessor is a Breach of this
Lease.

12.      INSURANCE

         12.01. Except as expressly provided as Lessee's Permitted Use, or as
otherwise consented to by Lessor in writing, Lessee will not do or permit
anything to be done within or about the Premises or the Property which will
increase the existing rate Of any insurance on any portion of the Property or
cause the cancellation of any insurance policy covering any portion of the
Property. Lessee will not keep, use or sell, or permit anyone to keep, use or
sell, anything in or about the Premises, which may be prohibited by the standard
form of fire and other insurance policies. Lessee will, at its sole cost and
expense, comply with any requirements of any insurer of Lessor and of Lessee.

         12.02. Lessee agrees to maintain in full force and effect at all times
during the Lease Term, at its sole cost and expense, for the protection of
Lessee and Lessor, policies of insurance which afford the following coverage.
<TABLE>
<CAPTION>
<S>                                         <C>
    (a)  Worker's Compensation              Statutory Requirements
         Employer's Liability               Not less than $1,000,000.00
    (b)  Commercial General Liability       Not less than $1,000,000.00 per occurrence
                                            Not less than $2,000,000.00 aggregate this location

Commercial policies shall insure on an occurrence and not a claims-made basis
and cover the Premises, Project and Property. The policy shall cover liability
arising from premises, operations, independent contractors, products completed
operations, personal injury, advertising injury and liability assumed under an
insured contract and not be excess, nor exclude pollution or employment-related
practices.

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

    (d)  "All Risk" coverage including fire and extended coverage, vandalism,
         malicious mischief and any other perils normally covered therein. This
         insurance coverage must be upon the Premises and all property owned by
         Lessee, for which Lessee is legally liable, or which is made at the
         expense of or at the request of Lessee, including but not limited to,
         any Lessee Improvements, Lessee Alterations, furniture, fixtures,
         equipment, installations and any other personal property of Lessee, in
         an amount not less than their full replacement, value, and with a
         deductible not to exceed $1,000.00 per occurrence. All proceeds of this
         insurance shall only be used for the repair and replacement of property
         so insured, and Lessee hereby assigns to Lessor all its rights to
         receive any proceeds of such insurance policies attributable to any
         Lessee Improvements and Lessee Alterations.
</TABLE>

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

         12.03. Lessee will name Lessor (and, at Lessor's request, any
Mortgagee) and each of its officers, subsidiaries, partners, officers,
directors, and employees as additional insureds on all insurance policies
required of Lessee under this Lease, other than Worker's Compensation and Fire
and Extended coverage (except on improvements or alterations to Lessees'
Premises for which Lessor shall be named an additional insured). Such insurance
policies carried by Lessee will include an express waiver of subrogation by the
insurer in favor of Lessor, permit the insured, prior to any loss, to agree with
a third party to waive any claim it might have against said third party without
invalidating the coverage under the insurance policy, and will release Lessor

                                       12
<PAGE>

and any of its agents and employees from any claims for damage to any person, to
the Property of which the Premises are a part, any existing improvements, etc.,
Lessee Improvements and Lessee Alterations to the Premises, and to any
furniture, fixtures, equipment, installations and any other personal property of
Lessee caused by or resulting from, risks which are to be insured against by
Lessee under this Lease, regardless of cause, except for grossly negligent or
intentional acts by Lessor. Lessee's failure to provide evidence of this
required insurance coverage to Lessor shall constitute a Default under this
Lease, and Lessee's failure, at any time during the Lease Term, to maintain, in
full force and effect, this coverage, as required, shall constitute a Breach
under this Lease.

         12.04. Lessee will deliver to Lessor, (and, at Lessor's request any
Mortgagee, Assignee or Receiver) simultaneously with its execution of this
Lease, (and thereafter at least thirty (30) days prior to expiration,
cancellation or change in any Lessor required certificates of insurance),
certificates of insurance evidencing, at a minimum, the coverage specified in
Paragraph 12.02. All insurance required hereunder will be with companies
licensed and authorized to do business in the state in which the Property is
located and holding a "General Policyholders Rating" of "A -, VII" or better, as
set forth in the most current Best's Insurance Guide.

         12.05. Lessor will secure and maintain, at Lessee's expense, insurance
coverage in such limits as Lessor may deem reasonable in its sole judgment to
afford Lessor adequate protection. Lessor's coverage, where applicable, will
contain an express waiver of subrogation.

         12.06. Lessor makes no representation that the insurance policies and
coverage amounts specified to be carried by Lessee or Lessor under the terms of
this Lease are adequate to protect Lessee, and in the event Lessee believes that
such insurance is insufficient, Lessee will provide, at its own expense, such
additional insurance as Lessee deems adequate.

         12.07. As to any insurance proceeds received by Lessor, such proceeds
shall for all purposes be deemed Lessor's sole property, free from any claims of
Lessee, and unless otherwise stated, available for Lessor's exclusive use as it
may alone determine in the exercise of its sole discretion.

13.      INDEMNIFICATION AND WAIVER OF CLAIMS

         Lessee waives all claims against Lessor for any damage to any property
in or about the Property and for injury to any persons, including death
resulting therefrom, regardless of cause or time of occurrence. Lessee will
indemnify, protect, defend and hold harmless Lessor from and against all claims,
losses, damages, costs, expenses and liabilities, including legal fees, arising
out of, involving, or in connection with Lessee's occupancy of the Premises,
presence on the Property, the conducting of Lessee's business and any act,
omission or neglect of Lessee, its agents, contractors, employees, suppliers,
licensees or invitees except for any damage or injury which is the direct result
of the gross or intentional acts by Lessor, its agents, contractors, employees,
suppliers, licensees or invitees. In the event any action or proceeding is
brought against Lessor, its agents, contractors, employees, suppliers, licensees
or invitees, by reason of the foregoing, Lessee, upon notice by Lessor, will
defend Lessor, its agents, contractors, employees, suppliers, licensees or
invitees, at Lessee's sole cost and expense, and by counsel reasonably
satisfactory to Lessor.

14.      HAZARDOUS MATERIALS

         14.01. For purposes of this Lease, "Hazardous Materials" will mean any
product, substance, chemical, material or waste whose presence, nature, quantity
and/or intensity of existence, use, manufacture, disposal, transportation,
spill, release or effect, either by itself or in combination with other
materials expected to be on the Property, now or in the future, is either: (i)
potentially injurious to the public health, safety or welfare, the environment
or the Property, or any part thereof; (ii) regulated or monitored by any
governmental authority; or (iii) a basis for potential liability of Lessor to
any governmental authority or third party. Hazardous Materials will include, but
not be limited to, solvents, petrochemical products, flammable materials,

                                       13
<PAGE>

explosives, asbestos, urea formaldehyde, PCB's, chlorofluorocarbons, freon or
radioactive materials. Lessor, however, grants Lessee permission to keep small
amounts of materials or substances in the Premises which are necessary for
Lessee's normal business operations. Lessee agrees to provide Lessor, prior to
its occupancy of the Premises, a list of all materials and substances, their
locations within the Premises, and methods of storage. Lessee further agrees to
comply with all future requests for information by Lessor including but not
limited to copies of all applicable Material Safety Data Sheets (MSDS sheets).

         14.02. Lessee will not cause or permit any Hazardous Materials to be
brought upon, kept, stored, discharged, released or used in, under or about any
portion of the Property by itself, its agents, employees, contractors,
subcontractors, licensees or invitees, without the prior written consent of
Lessor, and Lessor's consent will be in its sole discretion. Should Lessor grant
such consent, Lessee shall: (1) use such Hazardous Material only as is
reasonably necessary to Lessee's business, in small, properly labeled
quantities; 2) handle, use, keep, store, and dispose of such Hazardous Material
using the highest accepted industry standards and in compliance with all
applicable regulatory agencies and governmental Hazardous Materials
requirements; (3) maintain at all times with Lessor a copy of the most current
MSDS sheet for each such Hazardous Material; and (4) comply with such other
rules and requirements Lessor may from time to time impose.

         14.03. Should Lessor give Lessee its consent to bring on or about the
Property any Hazardous Materials, Lessee will comply with all federal, state and
local laws, ordinances, and rules and regulations relating to Hazardous
Materials, including but not limited to, current rules and regulations or levels
and standards as set from time to time by the Environmental Protection Agency,
the U. S. Occupational Safety and Health Administration, or any other
governmental agency. It is not necessary that any presence or contamination of
the Premises reflect any government mandated threshold or quantity in order for
Lessor to take any action under this Paragraph 14.

         14.04. Upon expiration or earlier termination of this Lease, Lessee
will, at Lessee's sole cost and expense, cause all Hazardous Materials brought
on the Property by Lessee, its agents, contractors, employees, suppliers,
licensees or invitees, to be removed from the Property in compliance with any
and all applicable Hazardous Material disposal laws. If Lessee or its agents,
contractors, employees, suppliers, licensees or invitees, violates the
provisions of this Paragraph 14, or performs any act or omission, or
contaminates, or expands the scope of contamination of the Premises, the
Property, or any part thereof, the underlying groundwater, or any property
adjacent to Lessor's Property, then Lessee will promptly, at Lessee's expense,
take all investigatory and/or remedial action (collectively called
"Remediation") that is necessary to clean up, remove and dispose of such
Hazardous Materials and any contamination so caused in compliance with any
applicable Hazardous Material laws and regulations. Lessee will also repair any
damage to the Premises and any other affected portion(s) of the Property caused
by such Hazardous Material presence, investigation and Remediation.

         14.05. With respect to any Remediation of the Premises, the Property or
any portion thereof, Lessee will provide Lessor with written notice of Lessee's
intended Remediation, including Lessee's method, time and procedure of
Remediation, and Lessor will have the right to require reasonable changes in
such method, time or procedure before Lessee commences any such work. Lessee
will not commence any Remediation of Hazardous Materials in any way connected
with the Property, or any portion thereof, without first notifying Lessor, in
writing, of Lessee's- intention to do so and affording Lessor ample opportunity
to appear, intervene or otherwise appropriately assert and protect Lessor's
interest.

         14.06. Lessee will immediately notify Lessor in writing of any
governmental or regulatory action threatened, any claim, demand, or complaint
made or threatened by any person against Lessee or any portion of the Property
relating to damage, contribution, cost recovery compensation, or loss or injury
resulting from any Hazardous Materials, and any report made to any governmental
authority arising out of any Hazardous Materials on, or removed from, the
Property or any portion thereof. Lessor retains the right to join and
participate, as a party, in any legal actions affecting the Property or any
portion thereof initiated in connection with Hazardous Materials laws.

                                       14
<PAGE>

         14.07. Lessee will indemnify, protect, defend and forever hold Lessor,
its agents, employees, lenders and ground lessor, if any, and the Premises, the
Property, or any portion thereof, harmless from any and all damages, losses,
liabilities, judgments, penalties, claims, obligations, attorneys' and
consultants' fees and any other costs and expenses arising out of any failure of
Lessee, its agents, contractors, employees, suppliers, licensees or invitees to
observe any covenants of this Paragraph 14 of this Lease. Noncompliance by
Lessee with any provisions of this Paragraph 14 shall constitute a Breach under
this Lease, and all provisions of this Paragraph 14 shall survive any
termination of this Lease.

15.      AUCTIONS AND SIGNS

         15.01. Lessee will not conduct, nor permit to be conducted, either
voluntarily or involuntarily, any auction on or about the Property, without
having the express written consent of Lessor, and Lessor will not be obligated
to exercise any standard of reasonableness in determining whether or not to
grant such consent. Should Lessor grant such consent, Lessee will comply with
any requirements of Lessor and any applicable laws governing such an auction.

         15.02. Lessee will not place any Signage on or about the Property, or
on any part thereof, without the prior written consent of Lessor, which Lessor
may withhold in its sole discretion. All approved Lessee Signage will comply
with the terms and conditions of this Lease and the sign criteria set forth in
Exhibit "C" and Exhibit "D", or other criteria which Lessor may establish from
time to time. Non-compliance with any of the provisions of this Paragraph 15,
Exhibit "C" or Exhibit "D" shall constitute a Default under this Lease.

16.      LESSOR'S ACCESS

         16.01. Lessor, its agents, contractors, consultants, servants and
employees, will have the right to enter the Premises at any time in the case of
an emergency, and otherwise at reasonable times to (a) examine the Premises; (b)
perform any obligation to or exercise any right or remedy of Lessor under this
Lease; (c) make repairs, alterations, improvements or additions to the Premises
or to other portions of the Property as Lessor deems necessary or desirable; (d)
perform work necessary to comply with laws, ordinances, rules or regulations of
any governing authority or insurance underwriter; (e) serve, post or keep posted
any notices required or allowed under the provisions of this Lease or by law;
(f) show, at reasonable times, Lessee's Premises to prospective lessees; (g)
post on or about the Premises any ordinary "For Lease" signs during the last
sixty (60) days of the Lease Term; and (h) perform work at Lessee's sole cost
that Lessor deems necessary to prevent waste or deterioration of the Premises
should Lessee fail to commence to make, and diligently pursue to completion, its
required repairs.

         16.02. For each of the purposes described in Paragraph 16.01 above,
Lessor will at all times have and retain any necessary keys with which to unlock
all doors in, upon and about the Premises, excluding Lessee's vaults and safes.
Lessee will not alter any lock or install new or additional locks or bolts on
any door in or about the Premises without obtaining Lessor's prior written
approval and will, in each event, furnish Lessor with a new key. All access
activities of Lessor will be without abatement of rent or liability on the part
of Lessor.

17.      ABANDONMENT

         Lessee will not vacate or abandon the Premises, or permit the Premises
to remain unoccupied for any period longer than fifteen (15) consecutive days
any time during the Lease Term. If Lessee abandons, vacates or surrenders the
Premises, or is dispossessed by process of law, or otherwise, any personal
property belonging to Lessee left in or about the Premises will, at the option
of Lessor, be deemed abandoned and may be disposed of by Lessor.

18.      DAMAGE OR DESTRUCTION

         18.01. If the Premises, or any portion of the Property, is damaged or
destroyed by fire or other casualty, Lessee will immediately give written notice
to Lessor of the casualty and Lessor will promptly repair the damage as set
forth in Paragraph 18.03 unless Lessor has the right to terminate this Lease as
provided in Paragraphs 18.02 and 18.04, and Lessor elects to so terminate.

                                       15
<PAGE>

         18.02. If Lessee, or its agents, contractors, employees, suppliers,
licensees or invitees is not the cause of the casualty, Lessor will have the
right, but not the obligation, to terminate this Lease following a casualty if
any of the following occurs: (i) insurance proceeds (excluding Lessor's
deductible and including Lessee's deductible) together with any additional
monies Lessee elects, at its option, to contribute are not available to Lessor
to pay one hundred percent (100%) of the cost to fully repair the damage; (ii)
Lessor determines that the Premises cannot, with reasonable diligence, within
six (6) months after Lessor obtains knowledge of the casualty, be fully repaired
by Lessor or cannot be safely repaired because of the presence of hazardous
factors and conditions, including but not limited to, Hazardous Materials,
earthquakes, utility outages and any other similar dangers; (iii) the Premises
are damaged or destroyed within the last twelve (12) months of the Lease Term;
(iv) the building within which the Premises is located, or any other portion of
the Property, is damaged or destroyed and Lessor (as determined in its sole
discretion) cannot reasonably complete such repair within six (6) months of
Lessor obtaining knowledge of the casualty; (v) Lessee is in Default or Breach
of this Lease at the time of the casualty; or (vi) Lessor would be required
under Paragraph 18.05 to abate or reduce Lessee's rent for a period in excess of
six (6) months if the repairs were undertaken. If Lessor elects to terminate
this Lease pursuant to this Paragraph 18.02, Lessor will give Lessee written
notice of this election, and fifteen (15) days after Lessee's receipt of such
notice, this Lease will terminate. If Lessor elects to terminate this Lease,
subject to the rights of any mortgagee, Lessor will be entitled to retain all
applicable Lessee insurance proceeds excepting those attributable to Lessee's
furniture, fixtures, equipment, installations, and any other personal property.

         18.03. If Lessee, or its agents, contractors, employees, suppliers,
licensees or invitees is not the cause of the casualty, and Lessor elects not to
terminate this Lease, this Lease will remain in full force and effect, and
Lessor will, within ten (10) days after receipt of all applicable insurance
proceeds and monies required to fully repair 100% of the Premises, begin the
process of obtaining all necessary permits and approvals, and upon receipt
thereof, diligently pursue the repair through completion.

         18.04. If Lessee, or its agents, contractors, employees, suppliers,
licensees or invitees is the cause of the casualty, or any portion thereof,
Lessor may elect any of the following: (i) to continue this Lease in full force
and effect; (ii) to make Lessor or Lessee, as determined in Lessor's sole
discretion, responsible for the completion of all, or any portion, of the
repairs necessitated by the casualty, and all such repairs shall be at Lessee's
sole cost and expense; and/or (iii) terminate this Lease with fifteen (15) days
written notice and retain all applicable Lessee insurance proceeds excepting
those specifically attributable to Lessee's furniture, fixtures, equipment,
installations, and other personal property. No election by Lessor of any remedy
hereunder shall be deemed to be a limitation on Lessee's liability

         18.05. If Lessor elects not to terminate this Lease, during the period
of repair, Lessee's rent will be temporarily abated or reduced in proportion to
the degree to which Lessee's use of the Premises is impaired, as determined by
Lessor in its sole discretion, beginning the date Lessor obtains knowledge of
the casualty and ending on the date all repairs affecting Lessee's use of the
Premises are substantially completed, as determined by Lessor in its sole
discretion. However, the total amount of such rent abatement or reduction shall
not exceed the total amount of insurance proceeds, directly attributable to
Lessee's Premises, Lessor may receive from any rental loss insurance coverage it
may carry free from any claim of Lessee. Except for the abatement of rent as
herein described, Lessee will not be entitled to any compensation or damages for
the loss of or interference with Lessee's personal property (including but not
limited to, furniture, fixtures, equipment, and installations), or existing
improvements of the Premises, Lessee Improvements, Lessee Alterations or any
other improvements on or about any portion of the Property, or business, or use,
or access to all or any part of the Premises or the Property resulting from such
damage, destruction or repair, including but not limited to, any consequential
damages, opportunity costs or lost profits incurred or suffered by Lessee. In no
event, however, will Lessor be responsible for any abatement of rent if Lessee,
or its agents, contractors, employees, suppliers, licensees or invitees is the
cause of the casualty, or any part thereof.

                                       16
<PAGE>

19.      TRANSFER (ASSIGNMENT/SUBLETTING)

         19.01. Lessee will not assign, sell, mortgage, encumber, convey,
pledge, sublet or otherwise transfer all or any part of Lessee's right or
interest in this Lease, or allow any other person or entity to occupy or use all
or any part of the Premises (collectively called "Transfer") without first
obtaining the written consent of Lessor. The following shall be deemed a
"Transfer" for purposes of this section: (i) a request by Lessee for an entity
other than itself to become Lessee hereunder by merger, consolidation, or other
reorganization; a transfer of any ownership interest in Lessee (unless Lessee is
an entity whose stock is publicly traded) so as to result in a change in the
current control of Lessee; (ii) a grant of a license, concession, or other right
of occupancy of any portion of the Premises, or (iii) the use of the Premises by
any party other than Lessee. Should Lessee desire a Transfer, Lessee will notify
Lessor in writing of: (i) Lessee's intent to Transfer; (ii) the name of the
proposed transferee; (iii) the nature of the proposed transferee's business to
be conducted on the Premises; (iv) the terms and provisions of the proposed
Transfer, and (v) any other information Lessor may reasonably request concerning
the proposed Transfer; including but not limited to, a statement of net worth,
financial statements covering a specified period of time, environmental reports
and a completed environmental questionnaire supplied by Lessor.

         19.02. Lessee agrees, by way of example and without limitation, that
Lessor may withhold its consent to a proposed Transfer if Lessor in its
reasonable judgment determines that the proposed transferee: (a) is of a
character or is engaged in a business which is not in keeping with Lessor's
standards for the Property, as determined solely by Lessor; (b) has a use which
conflicts with a provision of this Lease or proposes an unacceptable risk to
Lessor, as determined by Lessor; (c) does not meet the then current financial
standards required by Lessor; (d) has been required by any prior lessor, lender
or governmental authority to take a remedial action in connection with Hazardous
Materials contaminating a property; (e) is unacceptable because Lessee is in
Default or Breach under this Lease at the time of the request for Transfer or as
of the effective date of the Transfer. Notwithstanding the foregoing, Lessee's
right to a Transfer is subject to Lessor's approval of Lessee's financial
condition at the time the Transfer is requested by Lessee.

         19.03. In the event Lessor consents to a Transfer, the Transfer will
not be effective until Lessor is in receipt of a fully executed agreement to
Transfer, in a form and of substance acceptable to Lessor, and a Transfer fee of
two hundred and fifty dollars ($250.00) which shall represent Lessee's minimum
liability for such service. The receipt and cashing of any check by Lessor
wherein such check is in a name other than that of Lessee will not constitute a
Transfer. Lessor also reserves the right to collect any rents due under this
Lease directly from the transferee, and such direct collection will not
constitute recognition of the transferee as Lessee or release Lessee or any
guarantor of Lessee from any of its obligations under this Lease. Any
consideration received by Lessee in excess of Lessee's Base Rent (including
additional rent) as a result of a Lessor approved transfer shall be due and
payable to Lessor and any rights of first refusal, options or expansions under
the original lease shall be null and void.

         19.04. Lessor may, within thirty (30) days after submission of Lessee's
written request for Lessor's consent to a Transfer, cancel this Lease (or, as to
a subletting or assignment, cancel as to the portion of the Premises proposed to
be sublet or assigned) as of the date the proposed Transfer was to be effective.
If Lessor cancels this Lease as to any portion of the Premises, then this Lease
shall cease for such portion of the Premises, and Lessee shall pay to Lessor all
Base Rent and other amounts accrued through the cancellation date relating to
the portion of the Premises covered by the proposed Transfer and all brokerage
commissions paid or payable by Lessor in connection with this Lease that are
allocable to such portion of the Premises. Thereafter, Lessor may lease such
portion of the Premises to the prospective transferee (or to any other person)
without liability to Lessee.

         19.05. If Lessor has not agreed in writing to a Transfer within thirty
(30) days of Lessee's request hereunder, Lessor will be deemed to have rejected
Lessee's request.

                                       17
<PAGE>

20.      DEFAULT AND BREACH

         20.01. Lessee's performance of each of Lessee's obligations under this
Lease is a condition as well as a covenant. Lessee's right to continue in
possession of the Premises is conditioned upon such performance. Time is of the
essence in the performance of all covenants and conditions. Lessee's failure to
perform any of its obligations shall put it in Default or Breach under this
Lease.

         20.02. A "Default" is a failure to fulfill any terms, conditions,
covenants or rules under this Lease. A "Breach" is a Default which has no cure
period, stated or otherwise, or a Default which is not cured within the stated
cure period provided under this Lease or set by Lessor. Lessor and Lessee agree
that if an attorney is consulted by Lessor in connection with a Lessee Default
or Breach, $250.00 is a reasonable minimum sum to charge Lessee as Additional
Rent to cover Lessor's legal preparation and service costs. Unless otherwise
stated in this Lease, Lessee will be in Breach if at any time during the Lease
Term:

         (a)      Lessee fails to make any payment of Base Rent, Additional
                  Rent, or any other monetary payment required to be made by
                  Lessee herein and Lessee does not cure such failure within
                  three (3) days after receipt of Lessor's written notice to
                  Lessee.

         (b)      Lessee fails to provide Lessor with proof of insurance or
                  performance or surety bond as required under this Lease; and
                  Lessee does not cure such failure within three (3) days after
                  Lessor's written notice to Lessee.

         (c)      Lessee, at any time during the Lease Term, fails to maintain,
                  in full force and effect, its required insurance coverage.

         (d)      Lessee fails to ensure that life and property are not
                  endangered, as determined by Lessor in its sole discretion.

         (e)      Lessee vacates the Premises without the intention to reoccupy
                  same, or abandons the Premises as further described in
                  Paragraph 17.

         (f)      Lessee fails to observe, perform or comply with any of the
                  non-monetary terms, covenants, conditions, provisions or rules
                  and regulations applicable to Lessee under this Lease and such
                  failure is curable, in the sole opinion of Lessor, and then is
                  not cured within ten (10) days after Lessor's written notice
                  to Lessee; provided, however, that if the nature of Lessee's
                  obligation is such that more than ten (10) days are required
                  for performance, then Lessee will not be in Breach if Lessee
                  commences performance within such ten (10) day period and
                  thereafter diligently, in Lessor's sole opinion, pursues such
                  cure to completion.

         (g)      Lessor discovers that any financial statement of Lessee or of
                  any guarantor of this Lease given to Lessor, was materially
                  false.

         (h)      Lessee makes any general arrangement or assignment for the
                  benefit of creditors, becomes a "debtor" as defined in 11 U.
                  S. Code Section 101 or any successor statute, has
                  substantially all it assets located at the Premises or its
                  interest in this Lease appointed to a receiver or trustee,
                  indicates in Lessors reasonable opinion an inability to pay
                  its debts or obligations as they occur, has an attachment, or
                  execution or other judicial seizure of substantially all of
                  its assets located at the Property or its interest in this
                  Lease.

         (i)      Lessee is in Breach of any other term or condition of this
                  Lease.

21.      REMEDIES OF LESSOR

         21.01. If Lessee fails to perform any duty or obligation of Lessee
under this Lease, Lessor may at its option perform any such duty or obligation
on Lessee's behalf. The costs and expenses of any such performance by Lessor
will be immediately due and payable by Lessee upon receipt from Lessor of the
reimbursement amount required. In the event of a Breach of this Lease by Lessee
as defined in Paragraph 20.02, with or without notice or demand, and without
limiting any other of Lessor's rights or remedies, Lessor may:

                                       18
<PAGE>

         (a)      Terminate Lessee's right to possession of the Premises, in
                  which case this Lease will terminate and Lessee will
                  immediately surrender possession of the Premises to Lessor.
                  Lessor reserves all right and remedies available to it
                  pursuant to the terms and conditions of this Lease as well as
                  under state law (whether by terms of this Lease or otherwise).
                  Lessee hereby grants Lessor the full and free right to enter
                  the Premises with process of law. Lessee releases Lessor of
                  any liability for any damage resulting therefrom and waives
                  any right to claim damage for such re-entry. Lessee also
                  agrees that Lessor's right to re-lease or any other right
                  given to Lessor as a consequence of Lessee's breach hereunder
                  or by operation of law is not relinquished. On such
                  termination, Lessor will be entitled to recover from Lessee:
                  (i) the worth at the time of the award of the unpaid rent
                  which had been earned at the time of the termination; (ii) the
                  worth at the time of the award of the amount by which the
                  unpaid rents which would have been earned after termination
                  until the time of award exceeds the amount of such rental loss
                  that Lessee proves could have been avoided; (iii) the worth at
                  the time of the award of the amount by which the unpaid rents
                  for the balance of the Lease Term after the time of award
                  exceeds the amount of such rental loss for such period that
                  Lessee proves could be reasonably avoided; and (iv) any other
                  amount necessary to compensate Lessor for all the damage
                  proximately caused by Lessee's failure to perform its
                  obligations under this Lease or which in the ordinary course
                  of events would likely result therefrom, including but not
                  limited to, all costs and expenses attributable to recovering
                  possession of the Premises, reletting expenses (including the
                  costs and expenses of any necessary repairs, renovations and
                  alterations to the Premises), costs of carrying the Premises
                  (including but not limited to, Lessor's payment of real
                  property taxes and insurance premiums), actual legal fees and
                  associated costs and expenses, any unearned brokerage
                  commissions paid in connection with this Lease, any
                  unamortized Lessee Improvements, and reimbursement of any
                  deferred rent or other Lease execution inducement.

         (b)      Continue the Lease and Lessee's right to possession and
                  recover rent as it becomes due. Acts of maintenance or
                  preservation, efforts to relet the Premises, removal or
                  storage of Lessee's personal property or the appointment of a
                  receiver to protect Lessor's interest under this Lease, will
                  not constitute a termination of Lessee's right to possession.
                  Lessor agrees to make reasonable efforts to mitigate its
                  damages provided however, Lessor shall not be required to
                  relet any or all of the Premises prior to leasing other vacant
                  space on the Project, nor shall Lessor be required to accept a
                  tenant of lesser financial quality than Lessee was as of the
                  commencement date of this Lease.

         (c)      Pursue any other remedy now or hereafter available to Lessor
                  under the laws or judicial decisions of the State wherein the
                  Premises are located.

         21.02. In the event of bankruptcy of Lessee, or if Lessee becomes a
debtor as defined under the Bankruptcy Code, Lessee assigns to Lessor all its
rights, title and interest in the Premises as security for its obligations under
this Lease. The expiration or termination of this Lease, and/or the termination
of Lessee's right to possession, will not relieve Lessee from any liability
accruing during Lessee's Lease Term or by reason of Lessee's occupancy of the
Premises. Any efforts by Lessor to mitigate the damages caused by Lessee's
Breach of this Lease will not waive Lessor's right to recover damages.

         21.03. The "worth at the time of award" referred to in 21.01(a) (i) and
21.01(a) (ii) will additionally include interest computed by allowing interest
at the maximum rate allowed by law. The "worth at the time of award" referred to
in 21.01(a) (iii) will be computed by discounting the amount at the discount
rate of the Federal Reserve Bank of San Francisco in effect at the time of
award, plus one percent (1 %).

                                       19
<PAGE>

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

22.      ARBITRATION

         In the event any dispute arises regarding matters occurring before,
during or after the term of this agreement, the parties agree that in lieu Of
judicial proceedings, the matter shall be submitted to arbitration, and if not
otherwise resolved, arbitrated in accordance with the rules of the American
Arbitration Association, in a venue nearest to the location of the Leased
Premises. The Lessor and Lessee further agree that such requirement of
arbitration shall not be limited to contractual disputes alone, but shall
pertain to any dispute between Lessor and Lessee, whether arising from contract,
tort, in equity, under statute or administrative resolution, or any other legal
basis. This agreement to arbitrate shall not, however, prohibit Lessor from
exercising its statutory and/or common law rights to proceed against Lessee for
possession of the Premises and damages related thereto, in the nature of
unlawful detainer, ejectment, or any other similar summary proceeding.

23.      SURRENDER OF LEASE NOT MERGER

         Unless specifically stated otherwise in writing by Lessor, the
voluntary or other surrender of this Lease by Lessee, the mutual termination or
cancellation of this Lease, or the termination of this Lease by Lessor due to a
Breach by Lessee, will not work as a merger, and will, at the option of Lessor,
terminate all or any Transfer of the Premises or operate as a Transfer to Lessor
of any or all such Transfers.

24.      PROFESSIONAL FEES, COSTS AND EXPENSES

         24.01. In the event that any party to this Lease initiates an action or
proceeding to enforce the terms of this Lease or to declare the rights of a
party to this Lease, the prevailing party will be entitled to all actual costs
and expenses, including but not limited to, all fees and Costs and expenses of
appraisers, experts, accountants and attorneys, which obligations shall be
deemed to have accrued as of the commencement date of such action or proceeding.
Should Lessor be named as a defendant in any legal action or proceeding brought
against Lessee in connection with, or arising out of, Lessee's occupancy within
the Property, Lessee will pay to Lessor all of Lessors actual costs and expenses
incurred, including its legal fees. Attorneys' fees will not be computed in
accordance with any court fee schedule, but will be the actual amount of any
fees incurred.

         24.02. If Lessor utilizes the services of any attorney with regard to
Lessee's occupancy or tenancy under this Lease, Lessor will be entitled to
reimbursement by Lessee of its legal fees, and all other costs and expenses,
whether or not a legal action is commenced by Lessor.

25.      CONDEMNATION

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

                                       20
<PAGE>

26.      RULES AND REGULATIONS

         Lessee agrees to abide by, keep and observe all rules and regulations
Lessor has set forth in Exhibit "D". Lessor reserves the right to modify and
amend them upon prior written notice to Lessee as it deems necessary and will
not be responsible to Lessee for any nonperformance by any other lessee,
occupant or invitee of the Property of any said rules and regulations. Violation
by Lessee, its employees, agents, contractors, suppliers, invitees or licensees
will be deemed a Default under this Lease.

27.      ESTOPPEL CERTIFICATE

         Lessee will execute and deliver, in a form prepared by Lessor, to
Lessor within ten (10) days after written receipt of notice from Lessor, a
written statement certifying: (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 any other charges are paid in advance, if any;
(iii) acknowledgment that there are not, to Lessee's knowledge, any uncured
Defaults on the part of Lessor, or stating the nature of any uncured Defaults;
(iv) the current Base Rent amount and the amount and form of the Security
Deposit on deposit with Lessor; and (v) any other information as Lessor,
Lessor's agents, mortgagees and prospective purchasers may reasonably request,
including but not limited to, any requested information regarding Hazardous
Materials. Lessee's failure to deliver such statement within ten (10) days of
its receipt will be deemed as Lessee's conclusive confirmation that: (1) this
Lease (including specifically the Base Rent, Additional Rent and Lease Term) is
in full force and effect and without modification except as may be represented
by Lessor; (2) neither Lessor nor Lessee are in Default under the Lease; and (3)
not more than one (1) month's rent charges, if any, are paid in advance. Such
failure shall be deemed, at Lessor's option, a Breach of this Lease.

28.      SALE BY LESSOR

         Upon the sale or any other conveyance by Lessor of the Property, or any
portion thereof, Lessor will be relieved of all liability under any and all of
its covenants and obligations contained in or derived from this Lease or arising
out of any act, encumbrance, occurrence or omission occurring after the date of
such conveyance.

29.      NOTICES

         All written communications and notices required under this Lease shall
be considered sufficiently given and served if sent to: 1) Lessee by U. S. mail
(First Class, postage prepaid), personal delivery or by other reasonable method
(including posting on or about the Premises), unless otherwise required by law,
to the address indicated in Paragraph 1.05 and shall be deemed received three
(3) days after such mailing, personal delivery or posting; 2) Lessor by U. S.
mail (First Class, postage prepaid), registered or certified (unless otherwise
required by law) to the address indicated in Paragraph 1.06 and shall be deemed
received five (5) days after such mailing; and 3) Lessee by facsimile or
overnight delivery and shall be deemed received twenty-four (24) hours after
transmission of such facsimile or placement in an overnight depository. At any
time during the Lease Term, Lessor or Lessee may specify a different Notice
Address by providing written notification to the other.

30.      WAIVER

         No waiver by Lessor of a Default or Breach of any term, covenant or
condition of this Lease by Lessee, will be deemed a waiver of any other term,
covenant or condition of this Lease, or of any subsequent Default or Breach of
Lessee of the same or any other term, covenant or condition of this Lease, nor
will any delay or omission by Lessor to seek a remedy for any Lessee Default or
Breach of this Lease be deemed a waiver by Lessor of its remedies or rights with
respect to such, Default or Breach. Additionally, regardless of Lessors
knowledge of a Default or Breach at the time of accepting rent, the acceptance
of rent by Lessor whether on account of monies or damages due Lessor, or
otherwise, will not constitute a waiver by Lessor of any Default or Breach by
Lessee.

                                       21
<PAGE>

31.      LESSEE'S INTENT; HOLDOVER

         Unless otherwise specified in this Lease, Lessee will give Lessor, not
less than ninety (90) days prior to the expiration date of this Lease Term,
written notice of its intent to remain or vacate the Premises on the expiration
date of this Lease. If Lessee remains in possession of all or any part of the
Premises with Lessor's written consent after the expiration of the Lease Term,
such possession will constitute a month-to-month tenancy, which may be
terminated by either Lessor or Lessee with thirty (30) days written notice and
will not constitute a renewal or extension of the Lease Term. If Lessee remains
in possession after the Lease Term without Lessor's written permission, such
possession will constitute a tenancy-at-will terminable upon forty-eight (48)
hour notice by either Lessee or Lessor and will not constitute a renewal or
extension of the Lease Term. In the event of a month-to-month tenancy or
tenancy-at-will, Lessee's Base Rent will be two hundred percent (200%) of the
Base Rent payable during the last month of the Lease Term, and any other sums
due under this Lease will be payable in the amounts and at the times specified
in this Lease and all options, rights of refusal, expansions and/or renewals
shall be null and void. Such tenancy will be subject to every other term,
condition and covenant contained in this Lease.

32.      RELOCATION OF THE PREMISES

         Lessor may, at any time during the Lease Term, relocate Lessee to
substantially comparable space within the Project. Lessor will give Lessee a
written notice of its intention to relocate the Premises and Lessee will
complete such relocation within the thirty (30) days after receipt of such
written notice. Lessor shall pay all reasonable costs and expenses of such
relocation (excluding any Lessee owned telecommunication equipment, lines,
boards and wiring which Lessee must bear the cost of relocating and installing),
and the terms and conditions of the Lease will remain in full force and effect
except for any actual adjustments in square footage, Base Rent, or Lessee's
Proportionate Share that may result from such relocation. If the space to which
Lessor proposes to relocate the Lessee are not substantially the same in
configuration and finishout as those of the Premises, or if the Base Rent of the
new space is not substantially the same as the prior Base Rent, Lessee may so
notify Lessor, and if Lessor fails to offer other space satisfactory to Lessee,
Lessee may terminate this Lease effective as of the thirtieth (30th) day after
Lessor's initial notice.

33.      DEFAULT BY LESSOR; LIMITATION OF LIABILITY; REAL ESTATE INVESTMENT
         TRUST

         33.01. In the event Lessor is deemed in Default or Breach in the
performance of any obligation required to be performed under this Lease, Lessee
will notify Lessor in writing, pursuant to the provisions of Paragraph 29, of
Lessor's Default or Breach at Lessor's Notice Address as specified in Paragraph
1.06, and within thirty (30) days of receipt of such notice, Lessor will
commence to make a good faith effort to cure the Default or Breach and in a
diligent and prudent manner continue to do so until completion.

         33.02. The obligations of Lessor under this Lease shall be binding only
on Lessor and not upon any of the individual partners, investors, trustees,
directors, officers, employees, agents, shareholders, advisors or managers of
Lessor in their individual capacities, and with respect to any obligations of
Lessor to Lessee, Lessee's sole and exclusive remedy shall be against Lessor.

         33.03. In consideration of the benefits accruing hereunder, Lessee on
behalf of itself and all of its Transferees covenants and agrees that, in the
event of any actual or alleged failure, Default or Breach of this Lease by
Lessor, Lessee's recourse against Lessor for any monetary damages will be
limited to the lesser of Lessor's interest in the Property including, subject to
the prior rights of any mortgagee, Lessors interest in the rents of the
Property, or Lessor's equity interest in the Property if the Property were
encumbered by debt in an amount equal to eighty percent (80%) of its value of
the Property as of the initial date Lessee notifies Lessor of the actual or
alleged failure, Default or Breach, and any insurance proceeds payable to
Lessor. Any action by Lessee will be limited to actual damage only and will not,
under any circumstances, include future profits or consequential damages.

                                       22
<PAGE>

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

34.      SUBORDINATION

         Without the necessity of any additional document being executed by
Lessee for the purposes of effecting a subordination, and at the election of
Lessor or any mortgagee or any ground lessor with respect to the land of which
the Premises are a part, this Lease will be subject and subordinate at all times
to: (i) all ground leases or underlying leases which may now exist or hereafter
be executed affecting the Property and (ii) the lien of any mortgage or deed of
trust which may now exist or hereafter be executed in any amount for which the
Property, ground leases or underlying leases, or Lessor's interest or estate in
any of said items is specified as security. Lessor or any mortgagee or ground
lessor will have the right, at its election, to subordinate or cause to be
subordinated any ground lessee or underlying leases or any such liens to this
Lease. If Lessor's interest in the Premises is acquired by any ground lessor or
mortgagee, or in the event any proceedings are brought for the foreclosure of,
or in the event of exercise of power of sale under, any mortgage or deed of
trust made by Lessor covering the Premises, or in the event a conveyance in lieu
of foreclosure is made for any reason, Lessee will, notwithstanding any
subordination and upon the request of such successor in interest to Lessor,
attorn to and become the Lessee of the successor in interest to Lessor and
recognize such successor in interest as the Lessor under this Lease. Lessee
acknowledges that although this Paragraph 34 is self-executing, Lessee covenants
and agrees to execute and deliver, upon demand by Lessor and in the form
requested by Lessor, or any other mortgagee or ground lessor, any additional
documents evidencing the priority or subordination of this Lease with respect to
any such ground leases or underlying leases or the lien of any such mortgage or
deed of trust. Lessee's failure to timely execute and deliver such additional
documents will, at Lessor's option, constitute a Breach of this Lease.

35.      FORCE MAJEURE

         Lessor will have no liability to Lessee, nor will Lessee have any right
to terminate this Lease or abate rent or assert a claim of partial or
constructive eviction, because of Lessor's failure to perform any of its
obligations under this Lease if the failure is due in part or in full to reasons
beyond Lessor's reasonable control. Such reasons will include but not be limited
to: strike, other labor trouble, fuel, labor or supply shortages, utility
failure or defect, the inability to obtain any necessary governmental permit or
approval (including building permits and certificates of occupancy), war, riot,
mandatory or prohibitive injunction issued in connection with the enforcement of
the Americans with Disabilities Act of 1990, civil insurrection, accidents, acts
of God, any governmental preemption in connection with a national emergency or
any other cause, whether similar or dissimilar, which is beyond the reasonable
control of Lessor. If this Lease specifies a time period for performance of an
obligation by Lessor, that time period will be extended by the period of any
delay in Lessor's performance caused by such events as described herein.

36.      MISCELLANEOUS PROVISIONS

         36.01. Whenever the context of this Lease requires, the neuter, the
masculine and the feminine gender shall include the other, and the word person
shall include partnership or corporation or joint venture, and the singular
shall include the plural and the plural shall include the singular.

         36.02. If more than one person or entity is Lessee, the obligations
imposed on each such person or entity will be joint and several.

                                       23
<PAGE>

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

         36.04. This Lease contains all of the agreements and conditions made
between Lessor and Lessee and may not be modified in any manner other than by a
written agreement signed by both Lessor and Lessee. Any statements, promises,
agreements, warranties or representations, whether oral or written, not
expressly contained herein will in no way bind either Lessor or Lessee, and
Lessor and Lessee expressly waive all claims for damages by reason of any
statements, promises, agreements, warranties or representations, if any, not
contained in this Lease. No provision of this Lease shall be deemed to have been
waived by Lessor unless such waiver is in writing signed by a regional vice
president or higher of Lessor or the management company, and no custom or
practice which may develop between the parties during the Lease Term shall waive
or diminish the Lessor's right to enforce strict performance by Lessee of any
terms of the Lease.

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

         36.06. Except as otherwise expressly noted, each payment required to be
made by Lessee is in addition to and not in substitution for other payments to
be made by Lessee.

         36.07. Subject to Paragraph 19, the terms, conditions and provisions of
this Lease will apply to and bind the heirs, successors, executors,
administrators and assigns of Lessor and Lessee.

         36.08. If any provision contained herein is determined to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality, or
unenforceability will not affect any other provision of this Lease.

         36.09. In consideration of Lessor's covenants and agreements hereunder,
Lessee hereby agrees not to disclose any terms, covenants or conditions of this
Lease to any other non-related party other than its officers, directors,
attorneys or accountants without the prior written consent of Lessor.
Additionally, Lessee shall not record this Lease or any short form memorandum
hereof without the prior written consent of Lessor, which Lessor may withhold in
its sole discretion.

         36.10. The rights and obligations of the parties under this Lease shall
survive its termination.

         36.11. The duties and warranties of Lessor are limited to those
expressly stated in this Lease and does not and shall not include any implied
duties or implied warranties, now or in the future. No representations or
warranties have been made by Lessor other than those contained in this Lease.

         36.12. Lessee promises and it is a condition to the continuance of this
Lease that there will be no discrimination against or segregation of any person
or group of persons on the basis of race, color, sex, creed, national origin or
ancestry in the leasing, subleasing, transferring occupancy, tenure, or use of
the Property, the Premises, or any portion thereof.

         36.13. Lessor and Lessee each warrant to the other that it has not
dealt with any broker or agent in connection with this Lease, other than the
person(s) listed in Paragraph 1.15 above. Except for any broker(s) who shall be
compensated in accordance with the provisions of a separate agreement, Lessor
and Lessee each agree to indemnify the other against all costs, expenses, legal
fees and other liability for commissions or other compensation claimed by any
other broker or agent.

37.      EXAMINATION OF LEASE; GOOD FAITH DEPOSITS

         Submission of this document for examination and signature by Lessee
does not create a reservation or option to lease. Lessee hereby agrees that
Lessor will be entitled to immediately endorse and cash any good faith check(s)
forwarded by Lessee along with this document. It is further agreed that such

                                       24
<PAGE>

cashing of good faith checks by Lessor will not guarantee acceptance of this
document by Lessor, but, in the event Lessor does not accept or execute this
document, the amount of such good faith check(s) will be refunded to Lessee.
This document will become this "Lease" and be effective and binding only upon
full execution by authorized representatives of both Lessee and Lessor as
defined in this Lease. Thereafter, a fully executed copy of this Lease will be
deemed an original for all purposes.

38.      GOVERNING LAW

         This Lease is governed by and construed in accordance with the laws of
the state in which the Premises are located, and venue of any legal action will
be in the county where the Premises are located.

39.      LESSOR'S LIEN

         LESSOR HEREUNDER WILL HAVE THE BENEFIT OF, AND THE RIGHT TO, ANY AND
ALL LESSOR'S LIENS PROVIDED UNDER THE LAW BY WHICH THIS LEASE IS GOVERNED,

40.      SPECIAL PROVISIONS AND EXHIBITS

         Special provisions of this Lease number 41 through 43 are attached
hereto and made a part hereof. The following Exhibits are attached to this Lease
and by this reference made a part hereof: "A", "A-1", "A-2", "A-3", "B", "C",
and "ID".

         IN WITNESS WHEREOF, Lessor and Lessee have executed this Lease as of
the day and year indicated by Lessor's execution date as written below.

         If Lessee is a corporation, each person signing this Lease on behalf of
Lessee represents and warrants that he or she has full authority to do so and
that this Lease binds the corporation. Prior to the execution of this Lease,
Lessee shall deliver to Lessor a certified copy of a resolution of Lessee's
Board of Directors authorizing the execution of this Lease or other evidence of
such authority reasonably acceptable to Lessor. If Lessee is a partnership or
limited liability company, each person or entity signing this Lease for Lessee
represents and warrants that he, she or it is a general partner of the
partnership or limited liability company, as applicable. Lessee shall give
written notice to Lessor of any general partner's or member's withdrawal or
addition. Simultaneous with the delivery of Lessee's signed lease, Lessee shall
deliver to Lessor a copy of Lessee's recorded statement of partnership or
certificate of limited partnership or articles of organization, as applicable.

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

LESSOR:                                        LESSEE:
         AOPP Acquisition Corp. Two            Microislet, Inc.,
         A California Corporation              A Delaware Corporation

         By its agent:
         PS Business Parks, L.P.
         By:      PS Business Parks, L.P.
                  A General Partner

By: /s/ Stephen King                           By: /s/ John Steel
    -------------------------------------          -----------------------------
    Stephen King, Vice President                   John Steel-President/CEO
    TITLE                                          AUTHORIZED SIGNATURE/TITLE

Date: 10/6/00                                      Date: 9/8/00
    LEASE EXECUTION DATE                           LEASE EXECUTION DATE

Lessor Fed. ID #  95-4661839

                                       25
<PAGE>

PROVISION 41                TELEPHONE OR TELECOMMUNICATION LINE ACCESS

         Tenant acknowledges that there are finite number of telephone or
         telecommunication lines available to the premises and the property.
         Tenant further acknowledges that Landlord must be able to provide all
         tenants of the property satisfactory telephone or telecommunication
         lines access in order to provide telephone or communication access and
         service to all tenants. Therefore tenant agrees that it will not apply
         for more than (22) telephone lines to its premises, nor install any
         telephone, telecommunication or other communication equipment
         (specifically including any antennas (tower or microwave) or other
         exterior equipment of any nature) which either utilizes. telephone
         equipment or technology or in any other manner effects Landlord's
         ability to provide telephone or communications facilities or access to
         its tenants other than as listed hereon without the express written
         permission of Landlord. Tenant agrees therefore that;

                  a.       Landlord Consent Required. In the event that Tenant
                           wishes additional telephone, telecommunication or
                           other communication lines or access after the date of
                           Tenant's execution of this Lease, no such additional
                           lines or access shall be permitted nor other
                           telephone, telecommunication or communication related
                           equipment installed without first securing the prior
                           written consent of Landlord.

                  b.       Conditions to Consent. All of the following
                           conditions must be met, as expressed in a written
                           agreement between Tenant and Landlord or by any other
                           means acceptable to Landlord in its reasonable
                           judgment, before Landlord considers whether to give
                           its consent or not:

                           (1) No Expense. Landlord shall incur no expense
                               whatsoever with respect to any aspect of Tenant's
                               need for additional access or equipment,
                               including without limitation, the costs of
                               installation, materials, permits, service, etc.

                           (2) Building Rules. Prior to the commencement of any
                               work in or about the building to install such
                               additional access, lines or equipment, Tenant
                               shall agree to abide by such rules and
                               regulations, job site rules, and such other
                               requirements as reasonably determined by Landlord
                               to be necessary to protect the interest of the
                               building, the Tenants in the Building, and the
                               Landlord, including without limitation, providing
                               security in such form and amount as determined by
                               Landlord;

                           (3) Sufficient Space. Landlord reasonably determines
                               that there is sufficient space in the building
                               for the placement of all of the lines, access and
                               equipment.

                           (4) Tenant is not, nor has been at time during lease
                               term, in breach or default under the lease.

                           (5) Compensation for Space. Tenant agrees to
                               compensate Landlord the reasonable amount
                               determined by Landlord for space used in the
                               building for the storage and maintenance of the
                               equipment, if any lies outside the leased
                               premises, and for all costs that may be incurred
                               by Landlord in arranging for: access by the
                               Tenant's personnel, security for Tenant's
                               equipment, and any other such costs as Landlord
                               may expect to incur.

                  c.       Consent is Not Landlord Warranty. Landlord's consent
                           under this section shall not be deemed any kind of
                           warranty or representation by Landlord, including
                           without limitation, any warranty or representation as
                           to the availability or suitability, of the present or
                           future telephone or communications equipment,
                           connections, compatibility or space available for any
                           additional equipment, lines or access.

                  d.       Tenant Pays Expenses. Tenant acknowledges and agrees
                           that all telephone and telecommunications services
                           desired by Tenant shall be ordered and utilized at
                           the sole expense of Tenant.

<PAGE>

                  e.       Tenant Responsible for Service Interruptions, Tenant
                           agrees that to the extent service by any telephone or
                           communication equipment is interrupted, curtailed, or
                           discontinued, Landlord shall have no obligation or
                           liability with respect thereto and it shall be the
                           sole obligation of Tenant at its expense to obtain
                           substitute service, but only with Landlord's prior
                           written permission.

                  f.       Landlord's Refusal to Consent. Notwithstanding any
                           provision herein to the contrary, the refusal of
                           Landlord to consent to any prospective request shall
                           not be deemed a default or breach by Landlord of its
                           obligation under this Lease unless and until Landlord
                           is adjudicated in a final and unappealable court
                           decision to have acted recklessly or maliciously with
                           respect to its refusal.

                  g.       No Third Party Rights. The provisions or this clause
                           may be enforced solely by the Tenant and Landlord,
                           and are not for the benefit of another party,
                           specifically, without limitation, no telephone or
                           telecommunications provider shall be deemed a third
                           part beneficiary of the Lease.

<PAGE>

PROVISION 42

                           SPECIAL PROVISION TO LEASE

SMOKING. Smoking of any kind is strictly prohibited at all times at any location
on this property, except in the designated smoking area, which is located as
follows:

                         * Exterior of the Building Only

Lessor may relocate the designated smoking area at its sole discretion at any
time during the term of this lease.

PROVISION 43

This lease is contingent on acceptable financials.

<PAGE>

Project #05522/05521
SORRENTO MESA II/LUSK 11
6540/6640/6650 Lusk Blvd.
San Diego, CA 92121

                                    EXHIBIT A
                                LEGAL DESCRIPTION

LOTS 2 AND 3 OF LUSK INDUSTRIAL PARK UNIT NO. 5, IN THE CITY OF SAN DIEGO,
COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 10700,
FILED IN THE OFFICE OF THE COUNTY\RECORDER OF SAN DIEGO COUNTY, AUGUST 16, 1983.

EXCEPT THEREFROM ALL COAL, OIL, GAS, PETROLEUM AND OTHER HYDROCARBON SUBSTANCES
IN AND UNDER SUCH PROPERTY, GRANTOR, ITS SUCCESSORS AND ASSIGNS, RETAINING THE
EXCLUSIVE TITLE AND RIGHT TO REMOVE SAID SUBSTANCES, TOGETHER WITH SOLE RIGHT TO
NEGOTIATE AND CONCLUDE LEASES AND AGREEMENT WITH RESPECT TO ALL SUCH SUBSTANCES
UNDER THE PROPERTY, AND TO USE THOSE PORTIONS OF THE PROPERTY WHICH UNDERLIE A
PLANE PARALLEL TO, AND 500 FEET BELOW, THE PRESENT SURFACE OF THE PROPERTY FOR
THE PURPOSE OF PROSPECTING FOR, DEVELOPING AND/OR EXTRACTING SUCH SUBSTANCES
FROM THE PROPERTY BY MEANS OF WELLS DRILLED INTO OR THROUGH SAID PORTIONS OF THE
PROPERTY FROM DRILL SITES LOCATED ON OTHER PROPERTY, IT BEING EXPRESSLY
UNDERSTOOD AND AGREED THAT GRANTOR, ITS SUCCESSORS AND ASSIGNS SHALL HAVE NO
RIGHT TO ENTER UPON THE SURFACE OF THE PROPERTY OR ANY PORTION THEREOF ABOVE THE
LEVEL OF THE AFORESAID PLANE, AS RESERVED BY LUSK/MIRA MESA, A LIMITED
PARTNERSHIP, IN A DEED RECORDED FEBRUARY 18, 1984, RECORDER'S FILE NO.
84-058807.

<PAGE>

                                  EXHIBIT "A-1"

                     [picture of PS Business Center here]

<PAGE>

                             Exhibit "A-2" / "A-3"

                      [Picture of PS Business Center here]

<PAGE>

                                    EXHIBIT B

Lessee accepts premises in present condition

Subject to the provision of Article 10 , Lessee accepts the premises in the
condition they are in at the commencement of this lease and shall maintain said
premises in the same condition, order, and repair, excepting only reasonable
wear and tear, arising from the use under this Agreement. Lessee has examined
and knows the condition of the leased premises and agrees that no
representations, except such as are contained herein, have been made to Lessee
respecting the condition of said premises. The taking possession of said
premises by Lessee should be conclusive that the premises are in good and
satisfactory condition.

Lessor agrees to paint suite, clean carpet, detail and rekey.

Lessor also agrees to close the opening between Suite C250 and C242.

<PAGE>

                                   EXHIBIT "C"

                                  SIGN CRITERIA

Conformity by Lessee to the following Sign Criteria requirements shall be
strictly enforced and are terms and conditions of the Lease.

1.       GENERAL REQUIREMENTS

         1A.      The term "Signage" as used herein and elsewhere within the
                  Lease shall include, but not be limited to, any signs,
                  placards, banners, pennants, lettering, insignias, trademarks,
                  marquees, art work, and any and all other display and
                  advertising materials.

         1B.      Lessee shall not install or display any Signage anywhere on
                  the Premises, Project or Property without Lessor's prior
                  written consent, which Lessor may withhold in its sole
                  discretion. Such Signage approval by Lessor, shall include,
                  but not be limited to, Lessee Signage installed or displayed
                  on or attached to any glass areas, doors, roofs, walls,
                  landscaped areas, walkways, vehicles, machinery or other
                  apparatus, whether permanently affixed to or from time to time
                  on or about the Property.

         1C.      Lessor reserves the right to designate the location and
                  quantity of all Lessee Signage.

         1D.      The size, design, content, color and other physical aspects of
                  Lessee Signage, as well as the materials, fabrication and
                  installation methods to be employed, must be approved by
                  Lessor, in writing, prior to commencement of any Signage
                  fabrication or installation. No exposed conduit, tubing, "J"
                  box or raceway is permitted on any Lessee Signage: Flashing,
                  moving or audible Lessee Signage is prohibited The
                  composition, size, style, height, color, etc. of Lessor
                  approved signage is attached hereto.

         1E.      All Lessee Signage must comply with any and all governing
                  laws, codes, regulations, covenants and restrictions. No
                  labels will be permitted on the exposed surface of any Lessee
                  Signage, except those labels required by any governing
                  authority.

         1F.      Lessor reserves the right to withdraw its approval and thereby
                  designate as disapproved any previously approved Lessee
                  Signage.

         1G.      All direct, indirect and any associated costs and expenses
                  related to Lessee Signage, including but not limited to,
                  installation, maintenance, removal and restoration of Lessee
                  Signage and any affected areas of the Property, shall be at
                  Lessee's sole cost and expense.

         1H.      Should Lessee fail to maintain its Signage at a standard to be
                  determined by Lessor in its sole discretion, then Lessor may,
                  without any recourse by Lessee or liability by Lessor to
                  Lessee, remove or restore such sub-standard Signage. Any
                  Lessee Signage removed or restored on behalf of Lessee by
                  Lessor, shall be at Lessee's sole cost and expense, payable
                  immediately upon demand by Lessor.

         1I.      Lessor reserves the right to require Lessee to utilize vendors
                  preapproved or designated by Lessor for all Lessee Signage and
                  Signage related matters. In the event Lessor designates,
                  refers or approves a specific sign vendor, Lessor shall not be
                  responsible or liable in any way for any disputes between such
                  vendor and Lessee.

         1J.      Lessor reserves the right to require Lessee to have Signage
                  and, if so required, Lessee Signage must be completed and
                  installed within 60 days after Lessee's Lease Term commences.

<PAGE>

         1K.      All Lessee Signage shall only contain Lessee's choice of
                  either its legal name or its Trade Name as it appears in the
                  Lease. No Lessee Signage or Lessee Signage content shall
                  create any claim, expressed or implied, of a Transfer as
                  defined in the Lease.

         1L.      Upon expiration or earlier termination of the Lease, or if
                  Lessee installs or displays Signage which does not comply with
                  the terms and conditions of this Sign Criteria, Lessor, in
                  addition to any other remedy, reserves the right to require
                  Lessee to remove, its Signage, or any part thereof, and to
                  require Lessee to repair and restore all areas and surfaces of
                  the Property affected by such removal. Such restoration and
                  repair work shall include, but not be limited to, removal of
                  any associated electrical wiring, patching of damaged areas
                  and painting to match surrounding surfaces. Should Lessee,
                  after demand by Lessor, fall to remove any Signage designated
                  for removal by Lessor or fail to repair and restore any
                  affected areas, Lessor shall have the right to do so at
                  Lessee's sole cost and expense.

<PAGE>

                                   EXHIBIT "C"

                           [graphic of signage here]

A.       General Requirements
         --------------------

1.       The Plaque and installation shall be provided by Landlord. The cost of
         numbering and lettering shall be the responsibility of the Tenant.
2.       Landlord shall approve all copy prior to ordering sign.
3.       Landlord shall direct the placement of all tenant signs and the method
         of attachment to the building corridor.
4.       Tenant shall be responsible for the fulfillment of all requirements for
         this criteria.

B.       GENERAL SPECIFICATIONS
         ----------------------

1.       The signs demension shall be according to Exhibit "C".
2.       Tenant shall be allowed one (1) sign regardless of size of occupancy.
3.       Except as provided herein, no advertising placards, banners, pennants,
         names, insignia, trademarks, or other descriptive material shall be
         affixed or maintained upon any automated machine, glass panes of the
         building, landscaped areas, streets or parking areas.
4.       Tenant shall purchase all signage through Landlord to ensure continuity
         of manufacture and appearance.

<PAGE>

                                   EXHIBIT "D"

                              RULES AND REGULATIONS

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

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

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

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

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

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

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

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

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

<PAGE>

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

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

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

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

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

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

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

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

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

<PAGE>

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

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

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

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

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

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

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

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

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

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

<PAGE>

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

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

         1.31 These Rules and Regulations are in addition to, and will not be
construed to in any way modify or amend, in whole or in part, the terms,
covenants, agreements and conditions of the Lease. Lessor may waive any one or
more of these Rules and Regulations for the benefit of Lessee or any other
lessee, but no such waiver by Lessor will be construed as a waiver of such Rules
and Regulations in favor of Lessee or any other lessee, nor prevent Lessor from
thereafter enforcing any such Rules and Regulations against any or all of the
lessees of the Property.

         1.32 Lessor reserves the right to modify, amend or make such other
reasonable and nondiscriminatory Rules and Regulations as, in its judgment, may
from time to time be needed and Lessee agrees to abide by all such additional
Rules and Regulations which may be adopted.

<PAGE>

                              RULES AND REGULATIONS
                  Fitness Center & Conference Center Agreement

A portion of the Common Areas shall include a Fitness Center and Conference
Center, hereinafter referred to as "Centers". Use of the Centers shall be open
to Lessee during normal business hours or such other hours as Lessor may
reasonably determine. Lessor will not provide any staff to monitor or supervise
the use of the Centers. Use of the Centers shall be solely at the risk of the
individual using the Centers facilities and Lessor shall have no responsibility
for Lessee who shall use the Centers. In the event that Lessor suffers any loss
arising out of the use of the Centers by Lessee, said Lessee shall indemnify
Lessor for my such loss. Lessee agrees to abide by such reasonable rules and
regulations as Lessor may promulgate from time to time concerning use of the
Centers. Lessor, it its sole discretion, shall have the right to revoke Lessee's
privileges should Lessee cause damage, abuse or violate any of the rules and
regulations in this agreement or posted within the Centers. Lessee shall also be
solely responsible to reimburse Lessor for any damage caused by Lessee. Access
to the Centers shall be controlled by means selected by Lessor, The Fitness
Center's use is limited to Lessee and its employees only and under no
circumstances shall Lessee allow access or use of the Fitness Center to a
visitor or any person under the age of 18 years. The Conference Center's use is
limited to Lessee and its employees and may only be accessed by Lessee's
visitors when accompanied by Lessee. Lessor shall have the right to request from
time to time, list of Lessee's employees for the purposes of controlling
unauthorized access to the Centers. Lessee shall notify Lessor when any of
Lessee's employees terminate employment. Initial issuance of keys or other
devices for controlling access to the Centers shall be at $15.00 per card to
Lessee, but Lessor reserves the right to impose a reasonable charge to replace,
repair and/or maintain equipment, furniture, access devices or any other
furnishings pertinent to the Centers. Lessee is entitled to (5) Center access
cards and/or keys, if applicable.

In accordance with the paragraphs of your Lease referring to BASE MONTHLY RENT
and ADDITIONAL RENT, if Base Monthly Rent or any Additional Rent is not paid per
your Lease Agreement, Lessor, in its sole discretion, shall have the right to
suspend and/or revoke all Fitness and Conference Center privileges without
further notice and access will be terminated. If Lessee's privileges are
suspended and revoked, Lessee shall be obligated to pay their pro rata share,
and will receive no reduction or modification of common area maintenance fees.
Reinstatement of Fitness and Conference Center privileges, which is at all times
in the sole discretion of Lessor, may be requested in writing by any suspended
or revoked Lessee. In addition to any and all moneys due and owing under the
Lease, $25.00 per each person reinstated will be charged.

         1. HOURS: Normal business hours for the Centers will be posted within
the Center and shall be subject to reasonable change at the sole discretion of
Lessor. Should Lessee request use of the Center anytime other thin during normal
business hours, Lessor, at its sole discretion, reserves the right to grant
Lessee's request and Lessor also reserves the right to charge Lessee $35.00 per
hour for such use.

         2. ACCESS: Lessee will be issued key(s), access card(s) or access
code(s), at $15.00 per card, to the Fitness Center. Lessee shall reserve in
advance, on a first come first serve basis with Lessor, the day and time they
would like to reserve the Conference Center. Lessee agrees that use of their
key, access card or code number by anyone other than to whom it was issued could
result in the Centers being closed to said Lessee and all access keys, cards and
codes confiscated. Lessor reserves the right to issue new access key, cards or
codes.

         3. USE OF CENTERS FACILITIES: In order to insure that the Centers are
properly maintained, Lessor reserves the right to temporarily close or limit
access to the Centers at any time during the year. Lessor may close the Centers
on legal holidays, open houses or other promotions. Lessee acknowledges and
agrees that alcoholic beverages, illegal drugs, smoking and/or chewing tobacco
is prohibited in both Fitness and Conference Centers. Lessee is responsible for
the disposal of all food, trash and other items brought into or used within the
Conference Center and Lessor shall not be responsible for the clean tip during
normal business hours.

         4. FACILITY RULES: Lessee will, at all times, make sure that the doors
to the Fitness Center, Conference Center, Bathrooms and Showers remain closed
while in use. All users must provide their own towel and dry, off before leaving
the shower area. Lockers ire provided on a per visit basis and Lessor is not
responsible for lost, stolen or damaged items. Locks left on lockers overnight
will be Cut off and contents donated to charity or discarded. Lessee
acknowledges and agrees that Lessor, its officers, agents and employees, will
not be liable for either loss or damage to Lessee's property or personal
possessions within or on the Center premises, including, but not limited to the
parking facilities.

<PAGE>

         5. FITNESS CENTER: Lessee must carry a towel at all times while using
the equipment and/or machinery and will wipe clean all sweat after the use of
equipment and/or machinery. Any person using equipment or machinery shall be
familiar with the proper usage and operation prior to such use. It is the sole
duty of Lessee to check and confirm proper functioning of equipment and/or
machinery prior to any use; Lessor is not responsible for any malfunction,
disrepair, breakage, misuse, or any *claim of injury or loss therefrom. Lessee
hereby agrees that they are voluntarily participating in physical exercise and
should use common sense, only the individual can monitor his or her own personal
physical feelings. Immediately stop any exercise or sports activity if you feel
faint, dizzy, nauseous, or shortness of breath. Lessor makes no warranties and
no representations express or implied, other thin those set forth herein and
Lessee acknowledges and agrees that they have not relied on any warranties or
representations other than those set forth in this Rules and Regulations. Lessee
is aware that participation in a sport or physical exercise may result in
accidents or injury, and Lessee assumes the risk connected with the
participation in a sport or exercise and represents that Lessee is in good
health and suffers from no physical impairment, disability or ailment preventing
Lessee from engaging in any exercise activity, or that will be detrimental to
Lessee's health, safety, comfort or physical condition, or to that of others. It
is advisable that Lessee consult their physician before undertaking the use of
fitness equipment and/or machinery. Lessee acknowledges that Lessor has not and
will not render any medical services including medical diagnosis of Lessee's
physical condition.

         6. INDEMNIFICATION AND WAIVER OF CLAIMS: Lessee waives all claims
against Lessor for damage and/or loss to any real or personal property in or
about the Centers, Property, Project or Premises and for injury to any person,
including-, but not limited to death resulting therefrom, regardless of cause or
time of occurrence. Lessee will defend, indemnify and hold Lessor harmless from
and against all claims, actions, proceedings, expenses, damages and liabilities,
including attorney's fees, arising out of, connected with, or resulting from any
use of the Centers, Property, Project and Premises including and to any personal
property in or about the Centers, Property, Project and Premises by Lessee,
except for any damage or injury which is the direct result of intentional acts
by Lessor, its employees, agents, visitors or licensees.<PAGE>

                                                                    EXHIBIT 10.5

SEQUENOM letterhead

                                    SUBLEASE
                                    --------

PARTIES: This Sublease, dated December 17, 2001, is made between Sequenom, Inc,
("Sublessor"), and Microislet, Inc, ("Sublessee").

DESCRIPTION OF PREMISES: Approximately 4,530 square feet of lab and office space
on the west side of the first floor, located at 11555 Sorrento Valley Road, San
Diego, California, 92121.

COMMENCEMENT DATE OF THIS SUBLEASE: January 1, 2002

LEASE TERM: Twelve (12) months beginning on the Commencement Date (January 1,
2002) and ending on December 31, 2002. Sublessee shall have the option to renew
this Sublease for one (1) additional year, provided that Sublessee gives
Sublessor notice of the same, in writing, prior to January 1, 2003, and provided
that Sublessor has not notified Sublessee in writing before July 1, 2002 that
such Sublease is not available for renewal. At any time after July 1, 2002, and
provided that Sublessee has not exercised its option to renew as set forth in
the preceding sentence, this Sublease may be terminated by either party by
providing six (6) months written notice to the other party. The rental cost to
Sublessee shall be increased at a rate of four percent (4%) per annum, such
increase to be added to the rental cost in monthly installments.

MONTHLY RENT: $9,180 + 40% of electricity bill for first floor (invoiced
monthly)

$Cost breakdown:      $9,060        4,530 ft2 at $2.00 / ft2 rent cost
                        $100        40% shared cost of DI system maintenance
                         $20        Water softener maintenance cost
                      ------
                      $9,180        $Monthly Rent Total

SECURITY DEPOSIT: $9,180

Sublessee agrees that all terms and conditions of Sublessor's master lease,
dated September 23, 1999, with Sorrento Business Complex ("Lessor") (attached
hereto) that are not contrary to or inconsistent with the terms above, are
incorporated herein by reference as if fully set forth herein and are in full
force and effect and are binding upon the parties hereto to this Sublease
Agreement.
<TABLE>
<CAPTION>
<S>                                  <C>         <C>                                  <C>
         MICROISLET, INC.                                        SEQUENOM, INC.
          (SUBLESSEE)                                           (SUBLESSOR)

/s/ H. Harounian                     12/14/01   /s/ Delbert F. Foit, Jr.             12/14/01
------------------------------------ --------   ------------------------------------ --------
   Authorized Signature                Date         Authorized Signature                Date

H. Hartounian                                    Delbert F. Foit, Jr.
------------------------------------             ------------------------------------
   Printed Name                                            Printed Name

 SORRENTO BUSINESS COMPLEX, A LIMITED PARTNERSHIP
 ------------------------------------------------
                 (LESSOR)
 by:  Collins Development Company, General Partner

/s/ William Tribolet                 12/19/01   /s/ Robert Petersen                  12/20/01
------------------------------------ --------   ------------------------------------ --------
   Authorized Signature                Date         Authorized Signature                Date

William Tribolet                                 Robert Petersen
------------------------------------             ------------------------------------
   Printed Name                                            Printed Name
</TABLE>

<PAGE>

                               SUBLEASE AMENDMENT
                               ------------------

WHEREAS, SEQUIENOM, INC. ("Sublessor"), and MICROISLET, INC. ("Sublessee")
previously entered into the Sublease agreement of December 17, 2001 (the
"Sublease"); and

WHEREAS, Sublessor and Sublessee desire to amend the Sublease to provide for its
accelerated termination upon the terms and conditions set forth herein.

NOW THEREFORE, Sublessor and Sublessee mutually covenant and agree and amend the
Sublease as follows:

The Sublease is hereby amended to expire on October 15, 2002. Sublessee agrees
to vacate the leased premises by October 15, 2002 and Sublessee agrees to waive
any and all of its option rights to renew the Sublease. In consideration,
Sublessor agrees that Sublessee shall not be obligated to pay, and Sublessor
waives its right to receive, Monthly Rent (as defined in the Sublease) for the
one and one-half (1 1/2) month period from September 1, 2002 through October 15,
2002.

IN WITNESS W-HEREOF, Sublessor and Sublessee have caused this Sublease Amendment
to be executed as of the date below.

          MICROISLET, INC.                            SEQUENOM, INC.
           (SUBLESSEE)                                 (SUBLESSOR)

/s/ H. Hartounian                            /s/ Delbert F. Foit, Jr.
-----------------------------------          -----------------------------------
Authorized Signature                         Authorized Signature

H. Hartounian                                Delbert F. Foit, Jr.
-----------------------------------          -----------------------------------
Printed Name                                 Printed Name

6/24/02                                      6/25/02
-----------------------------------          -----------------------------------
Date                                         Date

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