Document:

EXHIBIT 10.53

                                  OFFICE LEASE

         THIS OFFICE LEASE ("Lease") is made between SPIEKER PROPERTIES, L.P., a
California limited partnership ("Landlord"),  and E*Comnetrix, Inc, a California
corporation ("Tenant"), as of June 21, 2001 (the "date of this Lease").

                             BASIC LEASE INFORMATION

Project:            Watergate Office Towers

Building:           2000 Powell Street

Description  of Premises:  Suite:1205 (the Premises is as outlined in red or as
shown in cross-hatching on Exhibit B)

Rentable Area OF PREMISES:  approximately 1,601 rentable square feet

Permitted Use: General office

Scheduled Term Commencement Date: August 1, 2001

Scheduled Initial Term: 60 months  SCHEDULED EXPIRATION DATE: July 31, 2006

Base Rent:

(a)  Initial Annual Base Rent $54,754.20
(b)  Initial Monthly Installment of Base Rent: $4,562.85
(c)  Subject to increase pursuant to Paragraph  3.1(b) as follows:

                          8/1/01 -  7/31/02  $4,562.85 per month
                          8/1/02 -  7/31/03  $4,699.74 per month
                          8/1/03 -  7/31/04  $4,840.73 per month
                          8/1/04 -  7/31/05  $4,985.95 per month
                          8/1/05 -  7/31/06  $5,135.53 per month

Security Deposit: $ 10,000.00 as provided in Paragraph 5 herein.

Base Year for Operating Expenses: Calendar Year 2001

Tenant's Proportionate Share of Building: 0.004%     of Project:  N/A%

PARKING DENSITY:  Three (3) spaces per 1,000 usable square
                  feet of the Premises

OCCUPANCY  DENSITY:  Four (4)  persons  per 1,000  rentable  square  feet of the
Premises

TENANT'S NAICS CODE:_________________________

TENANT CONTACT:   Name: Mark Smith
                  Telephone Number: (510) 272-0434
                  FAX:  (510) 272-0658

Addresses for Notices :  To:  Tenant                   To:  Landlord
                         5858 Horton Street            2200 Powell Street
                         ------------------            ------------------
                         Emeryville, CA 94608          Suite 200
                         --------------------          ---------
                         Attn: President               Emeryville, CA 94608
                                                       --------------------
                         FAX:  (510) 272-0658          Attn: Vice President
                                                       FAX:  (510) 594-5600

TENANT'S BILLING ADDRESS [If different from Notice Address]:

LANDLORD'S REMITTANCE ADDRESS: PO Box 45587 Dept. 11473, San Francisco, CA 94145

Guarantor:  N/A

     IN WITNESS WHEREOF, the parties hereto have executed this Lease, consisting
of  the  foregoing  Basic  Lease  Information,   the  following  Standard  Lease
Provisions   consisting  of  Paragraphs  1  through  21  (the  "Standard   Lease
Provisions") and Exhibits A, B, C, D and E all of which are incorporated  herein
by this reference  (collectively,  this  "Lease").  In the event of any conflict
between the provisions of the Basic Lease  Information and the provisions of the
Standard Lease Provisions, the Standard Lease Provisions shall control.

   "Landlord"                                      "Tenant"

    SPIEKER PROPERTIES, L.P.,                      E*Comnetrix, Inc,
    a California limited partnership,              a California corporation

    By:  Spieker Properties, Inc.,
    a Maryland corporation, its general partner    By:_________________________
                                                       Mark Smith
     By:                                           Its:President and Chief
        ------------------------------                 Financial Officer
        John R. Winther
    Its:Sr. Vice President                         Date:_______________________
        ------------------------------

    Date:

<PAGE>

                            STANDARD LEASE PROVISIONS

1.  Premises.  Landlord  hereby  leases to Tenant and Tenant  hereby leases from
Landlord,  subject to all of the terms and  conditions  set forth herein,  those
certain premises (the "Premises")  described in the Basic Lease  Information and
as outlined in red or as shown in the  cross-hatched  markings on the floor plan
attached hereto as Exhibit B. The parties agree that for all purposes  hereunder
the  Premises  shall be  stipulated  to  contain  the  number of square  feet of
rentable area described in the Basic Lease Information. The Premises are located
in that certain  office  building (the  "Building")  whose street  address is as
shown in the Basic Lease  Information.  The  Building is located on that certain
land which is also  improved  with  landscaping,  parking  facilities  and other
improvements and appurtenances.  Such land,  together with all such improvements
and  appurtenances  and the  Building,  are all or part of a  project  which may
consist of more than one building and additional facilities, as described in the
Basic Lease  Information  (collectively  referred  to herein as the  "Project").
However,  Landlord  reserves the right to make such  changes,  additions  and/or
deletions to such land, the Building and the Project and/or the common areas and
parking or other facilities thereof as it shall determine from time to time.

2. Term.

     (a) Unless earlier terminated in accordance with the provisions hereof, the
term of this  Lease  (the  "Term")  shall  be as set  forth in the  Basic  Lease
Information; provided, however, in the event the Term Commencement Date (defined
below)  occurs on a date  other than the first day of a  calendar  month,  there
shall be added to the Term the partial  month  ("Partial  Lease Month") from the
Term  Commencement  Date to (but not  including)  the first day of the  calendar
month following the Term Commencement Date.

     (b) Subject to the  provisions of this Paragraph 2, the Term shall commence
on the date (the  "Term  Commencement  Date")  which is the  earlier of the date
Landlord  delivers the Premises to Tenant or the date Tenant takes possession or
commences use of any portion of the Premises for any business purpose (including
moving in). If this Lease  contemplates the construction of tenant  improvements
in the  Premises by Landlord,  Landlord  shall be deemed to have  delivered  the
Premises to Tenant on the date determined by Landlord's  space planner to be the
date of  substantial  completion  of the work to be  performed  by Landlord  (as
described in the Improvement  Agreement,  if any,  attached hereto as Exhibit C)
(the "Improvement Agreement").  Notwithstanding the foregoing, in the event that
Landlord is delayed in delivering  the Premises by reason of any act or omission
of Tenant,  the Term  Commencement Date shall be (unless Tenant takes possession
or commences use of the Premises prior thereto) the date the Premises would have
been  delivered by Landlord had such Tenant caused  delay(s) not occurred.  This
Lease shall be a binding contractual  obligation effective upon execution hereof
by Landlord  and Tenant,  notwithstanding  the later  commencement  of the Term.
Tenant  acknowledges that Tenant has inspected and accepts the Premises in their
present  condition,  "as is",  except  for  tenant  improvements  (if any) to be
constructed by Landlord in the Premises  pursuant to the Improvement  Agreement,
if any.

     (c) In the event the Term  Commencement  Date is delayed or otherwise  does
not occur on the Scheduled Term  Commencement  Date specified in the Basic Lease
Information,  this Lease  shall not be void or  voidable,  the Term shall not be
extended  (except as provided in  Paragraph  2(a)),  and  Landlord  shall not be
liable  to Tenant  for any loss or damage  resulting  therefrom;  provided  that
Tenant shall not be liable for any Rent (defined  below) for any period prior to
the Term  Commencement  Date except as may  otherwise be provided in this Lease.
Landlord may deliver to Tenant  Landlord's  standard form "Start-Up  Letter" for
Tenant's  acknowledgment  and confirmation of the Term Commencement Date. Tenant
shall execute and deliver such Start-Up  Letter to Landlord within five (5) days
after receipt thereof, but Tenant's failure or refusal to do so shall not negate
Tenant's  acceptance  of the  Premises  or  affect  determination  of  the  Term
Commencement Date.

3. Rent and Operating Expenses.

   3.1  Base Rent

   (a)   Subject to the provisions of this  Paragraph 3.1,  Tenant agrees to pay
during the Term as Base Rent for the  Premises  the sums  specified in the Basic
Lease Information (as increased from time to time as provided in the Basic Lease
Information or as may otherwise be provided in this Lease) ("Base Rent").

   (b)   Base Rent shall increase as set forth in the Basic Lease Information or
as may otherwise be provided in this Lease.

   (c)   Except as expressly provided to the contrary herein, Base Rent shall be
payable in equal consecutive monthly installments, in advance, without deduction
or offset,  commencing on the Term Commencement Date and continuing on the first
day  of  each  calendar  month  thereafter.  However,  the  first  full  monthly
installment of Base Rent shall be payable upon Tenant's execution of this Lease.
If the Term  Commencement  Date is a day other  than the first day of a calendar
month,  then the Rent for the  Partial  Lease  Month (the  "Partial  Lease Month
Rent") shall be prorated  based on a month of 30 days.  The Partial  Lease Month
Rent  shall be  payable  by Tenant on the first day of the  calendar  month next
succeeding the Term  Commencement  Date. Base Rent, all forms of additional rent
payable  hereunder by Tenant and all other  amounts,  fees,  payments or charges
payable  hereunder by Tenant  (collectively,  "Additional  Rent") shall (i) each
constitute rent payable hereunder (and shall sometimes  collectively be referred
to herein as "Rent"),  (ii) be payable to Landlord in lawful money of the United
States when due without any prior  demand  therefor,  except as may be expressly
provided to the contrary herein,  and (iii) be payable to Landlord at Landlord's
Remittance  Address  set forth in the Basic Lease  Information  or to such other
person or to such other place as  Landlord  may from time to time  designate  in
writing to Tenant.  Any Rent or other  amounts  payable  to  Landlord  by Tenant
hereunder  for any  fractional  month shall be  prorated  based on a month of 30
days.

     3.2 Operating Expenses.

     (a) Subject to the  provisions of this Lease,  Tenant shall pay to Landlord
pursuant to this  Paragraph 3.2 as  Additional  Rent an amount equal to Tenant's
Proportionate Share (defined below) of the excess, if any, of Operating Expenses
(defined  below)  allocable to each Expense Year (defined  below) over Operating
Expenses  allocable  to the Base Year (the "Base  Year")  specified in the Basic
Lease Information ("Base Year Operating Expenses"). Base Year Operating Expenses
shall  not  include  market-wide   labor-rate  increases  due  to  extraordinary
circumstances,  including, but not limited to, boycotts and strikes, and utility
rate increases due to extraordinary circumstances including, but not limited to,
conservation  surcharges,  boycotts,  embargoes or other shortages, or amortized
costs  relating  to capital  improvements.  "Tenant's  Proportionate  Share" is,
subject  to  the  provisions  of  this  Paragraph  3.2,  the  percentage  number
(representing  the Premises' share of the Building and the Project) set forth in
the Basic Lease  Information.  An "Expense  Year" is any calendar year after the
Base Year any portion of which falls within the Term.

                                       1
<PAGE>

         (b)  "Operating  Expenses"  means all costs,  expenses and  obligations
incurred or payable by Landlord  because of or in connection with the operation,
ownership,  repair, replacement,  restoration,  management or maintenance of the
Project during or allocable to the Base Year or an Expense Year (as  applicable)
during  the  Term  (other  than  costs,  expenses  or  obligations  specifically
attributable  to Tenant or other  tenants of the  Building or  Project),  all as
determined by sound accounting  principles  reasonably  selected by Landlord and
consistently applied, including without limitation the following:

             (i) All  property  taxes, assessments, charges or impositions and
other similar governmental ad valorem or other charges levied on or attributable
to the Project(including personal and real  property  contained  therein) or its
ownership, operation or transfer, and all taxes, charges, assessments or similar
impositions  imposed in lieu or substitution  (partially or totally) of the same
(collectively,  "Taxes"). "Taxes" shall also include (A) all taxes, assessments,
levies,  charges or impositions on any interest of Landlord in the Project,  the
Premises or in this Lease, or on the occupancy or use of space in the Project or
the  Premises;  or on the  gross or net  rentals  or  income  from the  Project,
including,  without  limitation,  any gross income tax, excise tax, sales tax or
gross  receipts tax levied by any federal,  state or local  governmental  entity
with  respect to the receipt of Rent;  or (B) any  possessory  taxes  charged or
levied in lieu of real estate taxes; and

           (ii) The cost of all utilities,supplies, equipment, tools, materials,
service contracts,  janitorial services, waste and refuse disposal, landscaping,
and  insurance  (with the nature and extent of such  insurance  to be carried by
Landlord to be  determined  by Landlord  in its sole and  absolute  discretion);
insurance  deductibles;  compensation  and  benefits  of all persons who perform
services connected with the operation, management,  maintenance or repair of the
Project;  personal property taxes on and maintenance and repair of equipment and
other personal property; costs and fees for administration and management of the
Project,  whether  by  Landlord  or  by an  independent  contractor,  and  other
management  office  operational  expenses;  rental  expenses for or a reasonable
allowance  for  depreciation  of,  personal  property  used  in  the  operation,
management, maintenance or repair of the Project, license, permit and inspection
fees;  and all  inspections,  activities,  alterations,  improvements  or  other
matters  required by any  governmental  or  quasi-governmental  authority  or by
Regulations  (defined below),  for any reason,  including,  without  limitation,
capital  improvements,  whether  capitalized  or  not;  all  capital  additions,
repairs,  replacements  and  improvements  made to the  Project  or any  portion
thereof  by  Landlord  (A) of a  personal  property  nature  and  related to the
operation, repair, maintenance or replacement of systems, facilities,  equipment
or  components  of (or which  service)  the  Project or  portions  thereof,  (B)
required or  provided  in  connection  with any  existing  or future  applicable
municipal,  state, federal or other governmental statutes, rules,  requirements,
regulations,   laws,  standards,   orders  or  ordinances   including,   without
limitation,  zoning  ordinances and  regulations,  and covenants,  easements and
restrictions of record (collectively,  "Regulations"), (C) which are designed to
improve the operating  efficiency of the Project,  or (D) determined by Landlord
to be required to keep pace or be consistent  with safety or health  advances or
improvements  (with such  capital  costs to be  amortized  over such  periods as
Landlord  shall  determine  with a return on  capital at such rate as would have
been paid by Landlord on funds  borrowed  for the purpose of  constructing  such
capital  items);  common area repair,  resurfacing,  replacement,  operation and
maintenance;  security  systems  or  services,  if any,  deemed  appropriate  by
Landlord  (but without  obligation  to provide the same);  and any other cost or
expense  incurred  or payable by  Landlord  in  connection  with the  operation,
ownership,  repair, replacement,  restoration,  management or maintenance of the
Project.

           (iii)  Notwithstanding  anything in this Lease to the contrary,in no
event shall the component of Operating Expenses for any Expense Year consisting
of electrical costs be less than the component of Base Year Operating  Expenses
consisting of electrical costs.

     (c) Variable items of Operating Expenses (e.g.,  expenses that are affected
by  variations  in  occupancy  levels) for the Base Year and each  Expense  Year
during which actual  occupancy of the Project is less than  ninety-five  percent
(95%) of the rentable area of the Project shall be  appropriately  adjusted,  in
accordance with sound  accounting  principles,  to reflect  ninety-five  percent
(95%) occupancy of the existing rentable area of the Project during such period.

     (d) Prior to or shortly  following  the  commencement  of (and from time to
time during) each Expense Year of the Term following the Term Commencement Date,
Landlord  shall have the right to give to Tenant a written  estimate of Tenant's
Proportionate  Share of the projected excess, if any, of the Operating  Expenses
for the Project for such year over the Base Year Operating Expenses.  Commencing
with the first  day of the  calendar  month  following  the month in which  such
estimate was delivered to Tenant,  Tenant shall pay such estimated  amount (less
amounts,  if any,  previously paid toward such excess for such year) to Landlord
in equal  monthly  installments  over the  remainder of such  calendar  year, in
advance on the first day of each month during such year (or remaining months, if
less than all of the year  remains).  Subject to the  provisions  of this Lease,
Landlord  shall  endeavor to furnish to Tenant within a reasonable  period after
the end of  each  Expense  Year,  a  statement  (a  "Reconciliation  Statement")
indicating  in  reasonable  detail the  excess,  if any, of  Operating  Expenses
allocable to such Expense Year over Base Year Operating Expenses and the parties
shall,  within  thirty  (30) days  thereafter,  make any  payment  or  allowance
necessary to adjust Tenant's estimated payments to Tenant's actual share of such
excess as indicated by such annual Reconciliation Statement.

     (e)  Tenant  shall  pay ten (10)  days  before  delinquency  all  taxes and
assessments  levied against any personal property or trade fixtures of Tenant in
or about the  Premises.  If any such taxes or  assessments  are  levied  against
Landlord  or  Landlord's  property  or if the  assessed  value of the Project is
increased by the inclusion therein of a value placed upon such personal property
or trade  fixtures,  Tenant  shall,  within ten (10) days of  demand,  reimburse
Landlord for the taxes and assessments so levied against  Landlord,  or any such
taxes, levies and assessments resulting from such increase in assessed value.

     (f) Any delay or failure of  Landlord  in (i)  delivering  any  estimate or
statement described in this Paragraph 3.2, or (ii) computing or billing Tenant's
Proportionate  Share of excess  Operating  Expenses  shall not (A)  constitute a
waiver of its right to  subsequently  deliver  such  estimate  or  statement  or
require any increase in Rent  contemplated  by this Paragraph 3.2, or (B) in any
way waive or impair the  continuing  obligations  of Tenant under this Paragraph
3.2.  Provided that Tenant is not then in default  under this Lease,  subject to
compliance with Landlord's  standard  procedures for the same, Tenant shall have
the right, upon the condition that Tenant shall first pay to Landlord the amount
in  dispute,  to have  independent  certified  public  accountants  of  national
standing (who are not compensated on a contingency  basis) of Tenant's selection
(and subject to Landlord's  reasonable  approval)  review  Landlord's  Operating
Expense  books and records  relating to the Expense Year subject to a particular
Reconciliation  Statement  during the  sixty-day  period  following  delivery to
Tenant of the  Reconciliation  Statement  for such Expense  Year. If such review
discloses  a liability  for a refund in excess of ten percent  (10%) of Tenant's
Proportionate Share of Operating Expenses previously reported,  the cost of such
review shall be borne by Landlord; otherwise such cost shall be borne by Tenant.
Tenant  waives  the right to  dispute  or  contest,  and shall  have no right to
dispute or contest, any matter relating to the calculation of Operating Expenses
or other forms of Rent under this  Paragraph  3.2 with  respect to each  Expense
Year for  which a  Reconciliation  Statement  is given to  Tenant if no claim or
dispute with respect thereto is asserted by Tenant in writing to Landlord within
sixty  (60)  days  of  delivery  to  Tenant  of  the  original  or  most  recent
Reconciliation Statement with respect thereto.

                                       2
<PAGE>

4. Delinquent Payment;  Handling Charges. In the event Tenant is more than three
(3) days late in paying any amount of Rent or any other  payment  due under this
Lease,  Tenant shall pay Landlord,  within ten (10) days of  Landlord's  written
demand  therefor,  a late charge equal to five  percent  (5%) of the  delinquent
amount,  or $150.00,  whichever amount is greater.  In addition,  any amount due
from Tenant to Landlord  hereunder which is not paid within ten (10) days of the
date due shall bear  interest at an annual rate (the  "Default  Rate")  equal to
twelve percent (12%).

5. Security Deposit.  Contemporaneously with the execution of this Lease, Tenant
shall pay to Landlord the amount of Security  Deposit (the  "Security  Deposit")
specified  in the Basic  Lease  Information,  which shall be held by Landlord to
secure  Tenant's  performance of its obligations  under this Lease.  Landlord is
hereby granted a security  interest in the Security  Deposit in accordance  with
applicable provisions of the California Commercial Code. The Security Deposit is
not an advance payment of Rent or a measure or limit of Landlord's  damages upon
a default by Tenant or an Event of Default (defined  below).  If Tenant defaults
with  respect to any  provision  of this Lease,  Landlord  may, but shall not be
required to, use,  apply or retain all or any part of the  Security  Deposit (a)
for the payment of any Rent or any other sum in default,  (b) for the payment of
any other amount which Landlord may spend or become obligated to spend by reason
of such default by Tenant, and (c) to compensate  Landlord for any other loss or
damage which  Landlord  may suffer by reason of such  default by Tenant.  If any
portion of the Security Deposit is so used or applied,  Tenant shall, within ten
(10) days after demand  therefor by Landlord,  deposit with  Landlord cash in an
amount  sufficient to restore the Security  Deposit to the amount required to be
maintained by Tenant hereunder.  Within a reasonable period following expiration
or the sooner termination of this Lease,  provided that Tenant has performed all
of its  obligations  hereunder,  Landlord  shall return to Tenant the  remaining
portion of the Security  Deposit.  The  Security  Deposit may be  commingled  by
Landlord with Landlord's other funds, and no interest shall be paid thereon.  If
Landlord  transfers its interest in the  Premises,  then Landlord may assign the
Security Deposit to the transferee and thereafter Landlord shall have no further
liability or obligation  for the return of the Security  Deposit.  Tenant hereby
waives the provisions of Section  1950.7 of the  California  Civil Code, and all
other  provisions  of  any  Regulations,  now or  hereinafter  in  force,  which
restricts  the amount or types of claim that a landlord may make upon a security
deposit or imposes  upon a landlord  (or its  successors)  any  obligation  with
respect to the handling or return of security deposits. Provided that Tenant has
not been in Default  during the Term of the Lease,  at any time after the end of
the thirtieth  (30th) month  following the Term  Commencement  Date,  Tenant may
request,  by providing  written notice to Landlord,  a reduction in the Security
Deposit to an amount equal to Five thousand and No/100 Dollars ($5,000.00).

6. Landlord's Obligations.

         6.1 Services.  Subject to the provisions of this Lease,  Landlord shall
furnish to Tenant  during the Term (a) city or  utility  company  water at those
points of supply  provided for general use of the tenants of the  Building;  (b)
subject to mandatory and  voluntary  Regulations,  heating and air  conditioning
during ordinary business hours of generally  recognized business days designated
by Landlord  (which in any event shall not include  Saturdays,  Sundays or legal
holidays)  ("Business  Hours) for the Building at such  temperatures and in such
amounts as Landlord reasonably  determines is appropriate for normal comfort for
normal office use in the Premises;  (c)  janitorial  services to the Premises on
weekdays, other than on legal holidays, for Building-standard installations; (d)
nonexclusive  passenger  elevator service;  and (e) adequate  electrical current
during such  Business  Hours for  equipment  that does not require more than 110
volts and whose  electrical  energy  consumption  does not exceed  normal office
usage in a premises of the size of the Premises,  as determined by Landlord.  If
Tenant  desires any of the services  specified in this Paragraph 6.1 at any time
other  than  during  Business  Hours,  then  subject  to such  nondiscriminatory
conditions and standards as Landlord  shall apply to the same,  upon the written
request of Tenant,  such services shall be supplied to Tenant in accordance with
Landlord's customary procedures for the Building, including such advance request
deadlines as Landlord  shall require from time to time,  and Tenant shall pay to
Landlord Landlord's then customary charge for such services within ten (10) days
after Landlord has delivered to Tenant an invoice  therefor.  Landlord  reserves
the right to change the  supplier or provider of any such  service  from time to
time.  Tenant  shall  not have the  right to  obtain  any such  service  for the
Premises directly from a supplier or provider of such service except as provided
in Paragraph 6.4 below.

         6.2 Excess  Utility  Use.  Landlord  shall not be  required  to furnish
electrical  current for, and Tenant shall not install or use, without Landlord's
prior written consent,  any equipment (a) that requires more than 110 volts, (b)
whose  operation  is in excess of, or  inconsistent  with,  the  capacity of the
Building (or existing  feeders and risers to, or wiring in, the Premises) or (c)
whose electrical energy  consumption  exceeds normal office usage of up to three
(3) watts of connected load per usable square foot ("Standard  Usage").  Subject
to the provisions of this Paragraph 6.2, if Tenant's  consumption of electricity
exceeds the  electricity  to be provided  by  Landlord  above or Standard  Usage
(which  shall be  determined  by separate  metering to be  installed at Tenant's
expense or by such other method as Landlord  shall  reasonably  select),  Tenant
shall  pay  to  Landlord  Landlord's  then  customary  charge  for  such  excess
consumption  within  ten (10) days after  Landlord  has  delivered  to Tenant an
invoice therefor.

         6.3 Restoration of Services.  Following  receipt of Tenant's request to
do so, Landlord shall use good faith efforts to restore any service specifically
to be provided  under  Paragraph  6.1 that becomes  unavailable  and which is in
Landlord's  reasonable control to restore;  provided,  however,  that in no case
shall  the  unavailability  of  such  services  or any  other  service  (or  any
diminution in the quality or quantity  thereof) or any  interference in Tenant's
business  operations within the Premises render Landlord liable to Tenant or any
person  using or  occupying  the Premises  under or through  Tenant  (including,
without  limitation,  any  contractor,  employee,  agent,  invitee or visitor of
Tenant) (each, a "Tenant Party") for any damages of any nature whatsoever caused
thereby,  constitute a constructive  eviction of Tenant,  constitute a breach of
any implied warranty by Landlord, or entitle Tenant to any abatement of Tenant's
rental obligations hereunder.

         6.4  Telecommunications  Services.  Tenant may contract separately with
providers of  telecommunications  or cellular products,  systems or services for
the Premises. Even though such products, systems or services may be installed or
provided by such  providers in the Building,  in  consideration  for  Landlord's
permitting such providers to provide such services to Tenant, Tenant agrees that
Landlord  and the  Landlord  Indemnitees  (defined  below)  shall in no event be
liable to Tenant or any Tenant  Party for any  damages of any nature  whatsoever
arising out of or relating to the products, systems or services provided by such
providers (or any failure,  interruption,  defect in or loss of the same) or any
acts  or  omissions  of  such  providers  in  connection  with  the  same or any
interference in Tenant's business caused thereby. Tenant waives and releases all
rights and  remedies  against  Landlord and the  Landlord  Indemnitees  that are
inconsistent with the foregoing.

7. Improvements, Alterations, Repairs and Maintenance.

         7.1 Improvements;  Alterations. Any alterations,  additions, deletions,
modifications or utility  installations in, of or to the improvements  contained
within the Premises (collectively, "Alterations") shall be installed at Tenant's
expense  and  only  in  accordance  with  detailed  plans  and   specifications,
construction  methods,  and all appropriate  permits and licenses,  all of which
have been previously submitted to and approved in writing by Landlord,  and by a
professionally  qualified and licensed contractor and subcontractors approved by
Landlord.  No  Alterations  in or to  the  Premises  may  be  made  without  (a)
Landlord's prior written consent and (b) compliance with such  nondiscriminatory
requirements  and  construction   regulations  concerning  such  Alterations  as
Landlord  may  impose  from  time  to  time.  Landlord  will  not be  deemed  to
unreasonably  withhold its consent

                                       3
<PAGE>

to any Alteration that violates Regulations,  may affect or be incompatible with
the Building's  structure or its HVAC, plumbing,  telecommunications,  elevator,
life-safety, electrical, mechanical or other basic systems, or the appearance of
the interior  common areas or exterior of the  Project,  or which may  interfere
with the use or occupancy of any other portion of the Project.  All  Alterations
made in or upon the Premises shall, (i) at Landlord's option,  either be removed
by Tenant prior to the end of the Term (and Tenant shall  restore the portion of
the  Premises  affected  to its  condition  existing  immediately  prior to such
Alteration),  or shall  remain on the  Premises at the end of the Term,  (ii) be
constructed, maintained, insured and used by Tenant, at its risk and expense, in
a  first-class,  good  and  workmanlike  manner,  and  in  accordance  with  all
Regulations,  and (iii)  shall be  subject to  payment  of  Landlord's  standard
alterations  supervision  fee. If any Alteration  made or initiated by Tenant or
the removal thereof shall cause, trigger or result in any portion of the Project
outside  of  the  Premises,  any  portion  of  the  Building's  shell  and  core
improvements  (including restrooms, if any) within the Premises, or any Building
system  inside or outside of the  Premises  being  required by any  governmental
authority  to be  altered,  improved or removed,  or may  otherwise  potentially
affect  such  portions  of the  Project  or any other  tenants  of the  Project,
Landlord  shall have the option (but not the  obligation) of performing the same
at Tenant's expense, in which case Tenant shall pay to Landlord (within ten (10)
days of Landlord's written demand) in advance Landlord's  reasonable estimate of
the cost of such work, and any actual costs of such work in excess of Landlord's
estimate,  plus an  administrative  charge of fifteen percent (15%) thereof.  At
least ten (10) days before  beginning  construction  of any  Alteration,  Tenant
shall give Landlord  written  notice of the expected  commencement  date of that
construction   to   permit   Landlord   to  post  and   record   a   notice   of
non-responsibility.  Upon substantial completion of construction,  if the law so
provides, Tenant shall cause a timely notice of completion to be recorded in the
office of the recorder of the county in which the Building is located.

         7.2 Repairs and Maintenance.  Tenant shall maintain at all times during
the Term the Premises and all portions and  components of the  improvements  and
systems  contained  therein in a first-class,  good,  clean,  safe, and operable
condition,  and shall not  permit or allow to remain  any waste or damage to any
portion of the Premises.  Tenant shall repair or replace, as needed,  subject to
Landlord's direction and supervision,  any damage to the Building or the Project
caused by Tenant or any Tenant Party.  If any such damage occurs  outside of the
Premises  or  relates  to any  Building  system,  or if Tenant  fails to perform
Tenant's  obligations  under this Paragraph 7.2 or under any other  paragraph of
this Lease within ten (10) days' after written  notice from Landlord  (except in
the case of an  emergency,  in which  case no notice  shall be  required),  then
Landlord may elect to perform such  obligations and repair such damage itself at
Tenant's  expense.  The cost of all  repair or  replacement  work  performed  by
Landlord  under this  Paragraph  7.2, plus an  administrative  charge of fifteen
percent (15%) of such cost,  shall be paid by Tenant to Landlord within ten (10)
days of receipt of Landlord's invoice therefor as Additional Rent. Tenant hereby
waives all common law and statutory rights or provisions  inconsistent herewith,
whether now or hereinafter in effect (including,  without  limitation,  Sections
1941,  1941.1,  and 1941.2 of the California Civil Code, as amended from time to
time). Landlord shall use reasonable efforts to maintain the common areas of the
Project  at all times  during  the Term with the cost  thereof  constituting  an
Operating Expense under Paragraph 3.2.

         7.3  Mechanic's  Liens.  Tenant  shall not cause,  suffer or permit any
mechanic's or materialman's  lien, claim, or stop notice to be filed or asserted
against  the  Premises,  the  Building  or any  funds of  Landlord  for any work
performed,  materials furnished,  or obligation incurred by or at the request of
Tenant  or any  Tenant  Party.  If any such  lien,  claim or  notice is filed or
asserted,  then Tenant shall,  within ten (10) days after Landlord has delivered
notice of the same to Tenant,  either (a) pay and  satisfy in full the amount of
(and eliminate of record) the lien,  claim or notice or (b)  diligently  contest
the same and deliver to Landlord a bond or other security  therefor in substance
and amount (and issued by an issuer) satisfactory to Landlord.

8. Use. Tenant shall  continuously  occupy and use the Premises only for general
office use or uses incidental thereto, all of which shall be consistent with the
standards  of a first  class  office  project  (the  "Permitted  Use") and shall
comply,  at  Tenant's  expense,  with  all  Regulations  relating  to  the  use,
condition,  alteration,  improvement,  access to, and occupancy of the Premises,
including  without  limitation,  Regulations  relating  to  Hazardous  Materials
(defined below).  Should any Regulation now or hereafter be imposed on Tenant or
Landlord  by any  governmental  body  relating  to the use or  occupancy  of the
Premises or the Project common areas by Tenant or any Tenant Party or concerning
occupational,  health or safety standards for employers,  employees, or tenants,
then Tenant agrees,  at its sole cost and expense,  to comply promptly with such
Regulations  if such  Regulations  relate to anything  within the Premises or if
compliance with such  Regulations is within the control of Tenant and applies to
an area outside of the  Premises.  Tenant  shall  conduct its business and shall
cause each Tenant  Party to act in such a manner as to (a) not release or permit
the release of any  Hazardous  Material  in,  under,  on or about the Project in
violation of any  Regulations,  (b) use or store any Hazardous  Materials (other
than  incidental  amounts  of  cleaning  and  office  supplies)  in or about the
Premises or (c) not create or permit any nuisance or  unreasonable  interference
with  or  disturbance  of  other  tenants  of the  Project  or  Landlord  in its
management  of the  Project  or (d) not  create  any  occupancy  density  in the
Premises or parking  density  with respect to Tenant and any Tenant Party at the
Project greater than those specified in the Basic Lease Information.  "Hazardous
Material"  means  any  hazardous,  explosive,  radioactive  or toxic  substance,
material or waste which is or becomes  regulated by any local,  state or federal
governmental authority or agency, including, without limitation, any material or
substance  which is (i)  defined or listed as a  "hazardous  waste,"  "extremely
hazardous  waste,"   "restricted   hazardous  waste,"   "hazardous   substance,"
"hazardous material," "pollutant" or "contaminant" under any Regulation,  (ii) a
flammable  explosive,  (iii)  a  radioactive  material,  (iv) a  polychlorinated
biphenyl, (v) asbestos or asbestos containing material, or (vi) a carcinogen.

9. Assignment and Subletting.

         9.1  Transfers;  Consent.  Tenant shall not,  without the prior written
consent of Landlord, (a) assign, transfer,  mortgage,  hypothecate,  or encumber
this Lease or any estate or interest herein, whether directly,  indirectly or by
operation of law,  (b) permit any other  entity to become a Tenant  hereunder by
merger, consolidation, or other reorganization,  (c) if Tenant is a corporation,
partnership,  limited liability company,  limited liability partnership,  trust,
association  or other business  entity (other than a corporation  whose stock is
publicly traded), permit, directly or indirectly,  the transfer of any ownership
interest  in Tenant so as to result in (i) a change in the  current  control  of
Tenant, (ii) a transfer of twenty-five percent (25%) or more in the aggregate in
any twelve (12) month period in the beneficial ownership of such entity or (iii)
a transfer of all or substantially  all of the assets of Tenant,  (d) sublet any
portion of the Premises, or (e) grant any license, concession, or other right of
occupancy of or with respect to any portion of the  Premises,  or (f) permit the
use of the  Premises by any party  other than Tenant or a Tenant  Party (each of
the  events  listed  in  this  Paragraph  9.1  being  referred  to  herein  as a
"Transfer").  If Tenant  requests  Landlord's  consent to any Transfer,  then at
least  twenty (20)  business  days prior to the  effective  date of the proposed
Transfer,  Tenant shall provide Landlord with a written description of all terms
and  conditions  of  the  proposed  Transfer  and  all  consideration   therefor
(including a calculation of the Transfer Profits described below), copies of the
proposed  documentation,  and the following information relating to the proposed
transferee:  name and address;  information reasonably  satisfactory to Landlord
concerning the proposed transferee's business and business history; its proposed
use of the  Premises;  banking,  financial,  and other credit  information;  and
general  references  sufficient  to enable  Landlord to  determine  the proposed
transferee's  creditworthiness  and character.  Landlord shall not  unreasonably
withhold its consent to any  assignment or subletting of the Premises,  provided
that the parties agree that it shall be reasonable  for Landlord to withhold any
such consent if, without limitation,  Landlord determines in good faith that (A)
the  proposed  transferee  is not of a reasonable  financial  standing or is not
creditworthy,  (B) the proposed  transferee is a  governmental  agency,  (D) the
proposed  Transfer  would  result in a breach of any  obligation  of Landlord or
permit any other  tenant in the Project to  terminate  or modify its lease,  (E)
there is then in effect an uncured  Event of  Default,  (F) the  Transfer  would
increase the occupancy  density or parking density of the Project or any portion
thereof,  (G) the  Transfer  would result in

                                       4
<PAGE>

an  undesirable  tenant  mix for the  Project,  as  determined  in good faith by
Landlord,  (H) the proposed  transferee does not enjoy a good  reputation,  as a
business or as a tenant;  or (I) any  guarantor of the Lease does not consent to
such  Transfer in a form  satisfactory  to Landlord.  Any Transfer  made without
Landlord's consent shall be void and, at Landlord's  election,  shall constitute
an Event of  Default  by  Tenant.  Tenant  shall  also,  within ten (10) days of
written demand therefor,  pay to Landlord $500 as a review fee for each Transfer
request, and reimburse Landlord for its reasonable attorneys' fees and all other
costs  incurred  in  connection  with  considering  any request for consent to a
proposed  Transfer.  If  Landlord  consents  to a  proposed  Transfer,  then the
proposed  transferee shall deliver to Landlord Landlord's standard form transfer
consent and  agreement  whereby the proposed  transferee  expressly  assumes the
Tenant's  obligations  hereunder.  Landlord's  consent to a  Transfer  shall not
release Tenant from its  obligations  under this Lease (or any guarantor of this
Lease of its  obligations  with  respect  thereto),  but  rather  Tenant and its
transferee shall be jointly and severally liable for all obligations  under this
Lease allocable to the space subject to such Transfer. Landlord's consent to any
Transfer shall not waive Landlord's  rights as to any subsequent  Transfers.  In
the event of any claim by Tenant that  Landlord  has  breached  its  obligations
under this Paragraph 9.1,  Tenant's remedies shall be limited to recovery of its
out-of-pocket damages and injunctive relief.

         9.2 Cancellation and Recapture. Notwithstanding Paragraph 9.1, Landlord
may (but  shall not be  obligated  to),  within  ten (10)  business  days  after
submission of Tenant's  written request for Landlord's  consent to an assignment
or subletting,  cancel this Lease as to the portion of the Premises  proposed to
be sublet or subject to an assignment of this Lease ("Transfer Space") as of the
date such  proposed  Transfer  is  proposed  to be  effective  and,  thereafter,
Landlord may lease such portion of the  Premises to the  prospective  transferee
(or to any other person or entity or not at all) without liability to Tenant. If
Landlord  shall not cancel this Lease  within such ten (10)  business day period
and notwithstanding any Landlord consent to the proposed Transfer,  Tenant shall
pay to Landlord,  immediately upon receipt thereof, the entire excess ("Transfer
Profits") of all compensation and other consideration paid to or for the benefit
of Tenant (or any affiliate thereof) for the Transfer in excess of Base Rent and
Additional Rent payable by Tenant hereunder (with respect to the Transfer Space)
during  the  remainder  of the Term  (after  straight-line  amortization  of any
reasonable brokerage  commissions and tenant improvement costs paid by Tenant in
connection  with the Transfer over the term of the Transfer).  In any assignment
or subletting  undertaken by Tenant,  Tenant shall diligently seek to obtain the
maximum  rental  amount  available  in  the  marketplace  for  comparable  space
available for primary leasing.

10. Insurance, Waivers, Subrogation and Indemnity.

         10.1 Insurance.  Tenant shall maintain  throughout the Term each of the
insurance  policies  described on Exhibit D attached  hereto and shall otherwise
comply with the obligations and requirements provided on Exhibit D.

         10.2 Waiver of Subrogation.  Landlord and Tenant each waives any claim,
loss or cost it might have  against  the other for any injury to or death of any
person or persons, or damage to or theft,  destruction,  loss, or loss of use of
any  property  (a  "Loss"),  to the extent the same is  insured  against  (or is
required  to be insured  against  under the terms  hereof)  under any "all risk"
property damage insurance policy covering the Building, the Premises, Landlord's
or Tenant's fixtures,  personal property,  leasehold improvements,  or business,
regardless of whether the negligence of the other party caused such Loss.

         10.3  Indemnity.  Subject to Paragraph  10.2,  Tenant shall  indemnify,
defend and hold Landlord, Spieker Properties, Inc., and each of their respective
directors,  shareholders,  partners,  lenders, members,  managers,  contractors,
affiliates and employees (collectively, "Landlord Indemnitees") from and against
all claims, demands, proceedings,  losses, obligations,  liabilities,  causes of
action, suits,  judgments,  damages,  penalties,  costs and expenses (including,
without limitation,  reasonable attorneys' fees and court costs) arising from or
asserted in  connection  with the use or  occupancy of the Premises by Tenant or
any Tenant Party, including, without limitation, by reason of any release of any
Hazardous  Materials by Tenant or any Tenant Party in,  under,  on, or about the
Project,  or any negligence or misconduct of Tenant or of any Tenant Party in or
about the Premises, or Tenant's breach of any of its covenants under this Lease,
except in each case to the extent  arising from the gross  negligence or willful
misconduct  of  Landlord  or any  Landlord  Indemnitee.  Except  to  the  extent
expressly  provided in this Lease,  Tenant hereby waives all claims  against and
releases  Landlord and each  Landlord  Indemnitee  for any injury to or death of
persons,  damage to  property  or  business  loss in any  manner  related to (i)
Tenant's use and  occupancy  of the  Premises,  (ii) acts of God,  (iii) acts of
third parties, or (iv) any matter outside of the reasonable control of Landlord.
This Paragraph 10.3 shall survive termination or expiration of this Lease.

11. Subordination; Attornment.

         11.1  Subordination.  This  Lease is  subject  and  subordinate  to all
present and future ground or master leases of the Project and to the lien of all
mortgages  or deeds  of  trust  (collectively,  "Security  Instruments")  now or
hereafter  encumbering  the Project,  if any, and to all  renewals,  extensions,
modifications, consolidations and replacements thereof, and to all advances made
or  hereafter  to be made upon the  security of any such  Security  Instruments,
unless the holders of any such mortgages or deeds of trust, or the lessors under
such  ground  or  master   leases  (such   holders  and  lessors  are  sometimes
collectively referred to herein as "Holders") require in writing that this Lease
be superior thereto.  Notwithstanding  any provision of this Paragraph 11 to the
contrary,  any Holder of any Security Instrument may at any time subordinate the
lien of its Security Instrument to this Lease without obtaining Tenant's consent
by giving Tenant written notice of such subordination, in which event this Lease
shall be deemed to be senior to the  Security  Instrument  in  question.  Tenant
shall,  within  fifteen  (15) days of  request  to do so by  Landlord,  execute,
acknowledge  and deliver to Landlord such further  instruments  or assurances as
Landlord  may  deem   necessary  or  appropriate  to  evidence  or  confirm  the
subordination  or  superiority  of this Lease to any such  Security  Instrument;
provided,  however,  that at the  request of Tenant made within five (5) days of
any such Landlord request, Landlord shall use commercially reasonable efforts to
obtain  for  the  benefit  of  Tenant  such  Holder's  standard   nondisturbance
agreement.  Tenant hereby irrevocably authorizes Landlord to execute and deliver
in the name of Tenant any such  instrument or  instruments if Tenant fails to do
so within said fifteen (15) day period.

         11.2 Attornment. Tenant covenants and agrees that in the event that any
proceedings are brought for the foreclosure of any mortgage or deed of trust, or
if any  ground or master  lease is  terminated,  it shall  attorn,  without  any
deductions or set-offs  whatsoever,  to the purchaser upon any such  foreclosure
sale, or to the lessor of such ground or master lease, as the case may be, if so
requested to do so by such purchaser or lessor,  and to recognize such purchaser
or lessor as "Landlord" under this Lease. If requested,  Tenant shall enter into
a new  lease  with  that  successor  on the same  terms  and  conditions  as are
contained in this Lease (for the unexpired portion of the Term then remaining).

12.  Rules and  Regulations.  Tenant shall  comply,  and shall cause each Tenant
Party to  comply,  with the  Rules and  Regulations  of the  Building  which are
attached  hereto as  Exhibit  A, and all such  nondiscriminatory  modifications,
additions,  deletions  and  amendments  thereto as Landlord  shall adopt in good
faith from time to time.

                                       5
<PAGE>

13.  Condemnation.  If the  entire  Project  or  Premises  are taken by right of
eminent domain or conveyed by Landlord in lieu thereof (a "Taking"),  this Lease
shall terminate as of the date of the Taking. If any part of the Project becomes
subject to a Taking and such Taking will  prevent  Tenant  from  conducting  its
business in the Premises in a manner  reasonably  comparable  to that  conducted
immediately  before  such  Taking for a period of more than one  hundred  eighty
(180) days,  then Tenant may terminate  this Lease as of the date of such Taking
by giving written  notice to Landlord  within thirty (30) days after the Taking,
and all Rent paid or payable hereunder shall be apportioned between Landlord and
Tenant as of the date of such  Taking.  If any material  portion,  but less than
all, of the Project, Building or the Premises becomes subject to a Taking, or if
Landlord  is required to pay any of the  proceeds  received  for a Taking to any
Holder of any Security  Instrument,  then Landlord may  terminate  this Lease by
delivering  written  notice thereof to Tenant within thirty (30) days after such
Taking,  and all Rent paid or payable  hereunder  shall be  apportioned  between
Landlord  and  Tenant  as of the date of such  Taking.  If this  Lease is not so
terminated,  then Base Rent thereafter payable hereunder shall be abated for the
duration of the Taking in  proportion  to that portion of the Premises  rendered
untenantable by such Taking.  If any Taking occurs,  then Landlord shall receive
the  entire  award or other  compensation  for the land on which the  Project is
situated,  the Project,  and other improvements taken, and Tenant may separately
pursue a claim (to the extent it will not reduce  Landlord's  award) against the
condemnor for the value of Tenant's  personal  property which Tenant is entitled
to remove under this Lease and moving and relocation costs.  Landlord and Tenant
agree that the provisions of this  Paragraph 13 and the remaining  provisions of
this Lease shall  exclusively  govern the rights and  obligations of the parties
with respect to any Taking of any portion of the  Premises,  the  Building,  the
Project or the land on which the  Building is located,  and  Landlord and Tenant
hereby  waive  and  release  each and all of  their  respective  common  law and
statutory  rights  inconsistent  herewith,  whether now or hereinafter in effect
(including, without limitation, Section 1265.130 of the California Code of Civil
Procedure, as amended from time to time).

14. Fire or Other Casualty.

         14.1 Repair Estimate;  Right to Terminate. If all or any portion of the
Premises,  the  Building or the Project is damaged by fire or other  casualty (a
"Casualty"),  Landlord shall, within ninety (90) days after Landlord's discovery
of such damage,  deliver to Tenant its good faith estimate (the "Damage Notice")
of the time period  following  such notice needed to repair the damage caused by
such Casualty.  Landlord may elect to terminate this Lease in any case where (a)
any portion of the Premises or any  material  portion of the Project are damaged
and (b)  either  (i)  Landlord  estimates  in good  faith  that the  repair  and
restoration  of  such  damage  under  Paragraph  14.2   ("Restoration")   cannot
reasonably  be completed  (without  the payment of overtime)  within two hundred
(200) days of Landlord's actual discovery of such damage, (ii) the Holder of any
Security  Instrument  requires the  application  of any insurance  proceeds with
respect  to such  Casualty  to be  applied  to the  outstanding  balance  of the
obligation  secured  by  such  Security  Instrument,  (iii)  the  cost  of  such
Restoration  is not fully  covered by insurance  proceeds  available to Landlord
and/or  payments  received by Landlord  from  tenants,  or (iv) Tenant  shall be
entitled to an abatement of rent under this  Paragraph 14 for any period of time
in excess of thirty-three percent (33%) of the remainder of the Term. Such right
of termination shall be exercisable by Landlord by delivery of written notice to
Tenant at any time following the Casualty until  forty-five  (45) days following
the later of (A) delivery of the Damage  Notice or (B)  Landlord's  discovery or
determination  of any of the events described in clauses (i) through (iv) of the
preceding  sentence,  and shall be  effective  upon  delivery  of such notice of
termination  (or if Tenant has not vacated the Premises,  upon the expiration of
thirty (30) days thereafter).

         14.2 Repair Obligation; Abatement of Rent. Subject to the provisions of
Paragraph 14.1,  Landlord shall, within a reasonable time after the discovery by
Landlord of any damage resulting from a Casualty,  begin to repair the damage to
the Building and the Premises  resulting  from such  Casualty and shall  proceed
with reasonable  diligence to restore the Building and Premises to substantially
the same  condition  as existed  immediately  before such  Casualty,  except for
modifications required by Regulations,  and modifications to the Building or the
Project  reasonably  deemed  desirable  by  Landlord;  provided,  however,  that
Landlord  shall not be required as part of the  Restoration to repair or replace
any of the Alterations,  furniture,  equipment, fixtures, and other improvements
which may have been placed by, or at the request of,  Tenant or other  occupants
in the  Building  or the  Premises.  Landlord  shall have no  liability  for any
inconvenience or annoyance to Tenant or injury to Tenant's  business as a result
of any Casualty,  regardless of the cause  therefor.  Base Rent,  and Additional
Rent payable under  Paragraph  3.2,  shall abate if and to the extent a Casualty
damages the Premises or common areas in the Project  required and  essential for
access thereto and as a result thereof all or a material portion of the Premises
are rendered unfit for occupancy, and are not occupied by Tenant, for the period
of time  commencing  on the date  Tenant  vacates  the  portion of the  Premises
affected on account thereof and continuing  until the date the Restoration to be
performed  by Landlord  with  respect to the Premises  (and/or  required  common
areas)  is  substantially  complete,  as  determined  by  Landlord's  architect.
Landlord  and Tenant  agree that the  provisions  of this  Paragraph  14 and the
remaining  provisions  of this  Lease  shall  exclusively  govern the rights and
obligations of the parties with respect to any and all damage to, or destruction
of, all or any portion of the Premises or the Project by Casualty,  and Landlord
and Tenant hereby waive and release each and all of their respective  common law
and statutory rights inconsistent herewith, whether now or hereinafter in effect
(including,  without limitation,  Sections 1932(2) and 1933(4) of the California
Civil Code, as amended from time to time).

15. Parking. Tenant shall have the right to the nonexclusive use of such portion
of the parking facilities of the Project as are designated by Landlord from time
to time for such purpose for the parking of  passenger-size  motor vehicles used
by Tenant and Tenant Parties only and are not  transferable  without  Landlord's
approval.  The use of such  parking  facilities  shall be subject to the parking
rules  and  regulations  attached  hereto  as  Exhibit  E,  as  such  rules  and
regulations  may be modified by Landlord from time to time,  for the use of such
facilities.

16. Events of Default.  Each of the following  occurrences shall be an "Event of
Default"  and shall  constitute  a material  default and breach of this Lease by
Tenant:  (a) any  failure  by  Tenant  to pay  any  installment  of  Base  Rent,
Additional  Rent or to make any  other  payment  required  to be made by  Tenant
hereunder  when due; (b) the  abandonment or vacation of the Premises by Tenant,
provided,  however,  that unless  Tenant is using the Premises for a retail use,
abandonment or vacation of the Premises shall not be an Event of Default so long
as no other Event of Default has  occurred  hereunder  and  provided  Tenant has
given  Landlord five (5) days' prior written  notice of its intent to vacate the
Premises;  (c) any  failure  by Tenant  to  execute  and  deliver  any  estoppel
certificate  or  other  document  or  instrument   described  in  Paragraphs  10
(insurance),  11  (subordination) or 21.2 (estoppel  certificates)  requested by
Landlord,  where such  failure  continues  for five (5) days after  delivery  of
written notice of such failure by Landlord to Tenant;  (d) any failure by Tenant
to fully  perform any other  obligation  of Tenant under this Lease,  where such
failure continues for thirty (30) days (except where a shorter period of time is
specified  in this Lease,  in which case such  shorter  time period shall apply)
after delivery of written notice of such failure by Landlord to Tenant;  (e) the
voluntary  or  involuntary  filing of a  petition  by or  against  Tenant or any
general partner of Tenant (i) in any bankruptcy or other insolvency  proceeding,
(ii) seeking any relief under any state or federal  debtor relief law, (iii) for
the  appointment  of a liquidator  or receiver for all or  substantially  all of
Tenant's  property  or for  Tenant's  interest  in this  Lease,  or (iv) for the
reorganization or modification of Tenant's capital structure (provided, however,
that if such a petition is filed against  Tenant,  then such filing shall not be
an Event of Default  unless  Tenant fails to have the  proceedings  initiated by
such petition  dismissed within sixty (60) days after the filing  thereof);  (f)
the  default  of any  guarantor  of  Tenant's  obligations  hereunder  under any
guaranty of this Lease,  the  attempted  repudiation  or  revocation of any such
guaranty,  or the  participation  by any  such  guarantor  in  any  other  event
described  in  this  Paragraph  16 (as if this  Paragraph  16  referred  to such
guarantor in place of Tenant); or (g) any other event, act or omission which any
other provision of this Lease  identifies as an Event of Default.  Any notice of
any failure of Tenant  required under this Paragraph 16 shall be in lieu of, and
not in  addition  to, any notice  required  under  Section  1161 et seq.  of the
California Code of Civil Procedure.

                                       6
<PAGE>

17.  Remedies.  Upon the occurrence of any Event of Default by Tenant,  Landlord
shall have, in addition to any other remedies available to Landlord at law or in
equity (all of which remedies shall be distinct,  separate, and cumulative), the
option to pursue any one (1) or more of the following remedies,  each and all of
which  shall be  cumulative  and  nonexclusive,  without  any  notice  or demand
whatsoever:

     (a)  Terminate  this  Lease,  and  Landlord  may  recover  from  Tenant the
following: (i) the worth at the time of any unpaid rent which has been earned at
the time of such  termination;  plus  (ii) the worth at the time of award of the
amount by which the unpaid rent which would have been earned  after  termination
until the time of award  exceeds  the  amount of such  rental  loss that  Tenant
proves could have been reasonably  avoided;  plus (iii) the worth at the time of
award of the amount by which the unpaid  rent for the  balance of the term after
the time of award  exceeds the amount of such  rental  loss that  Tenant  proves
could have been  reasonably  avoided;  plus (iv) any other  amount  necessary to
compensate Landlord for all the detriment proximately caused by Tenant's failure
to perform its  obligations  under this Lease or which in the ordinary course of
things  would be likely to result  therefrom  (specifically  including,  without
limitation, brokerage commissions and advertising expenses incurred, expenses of
remodeling the Premises or any portion thereof for a new tenant, whether for the
same or a  different  use,  and any  special  concessions  made to  obtain a new
tenant); and (v) at Landlord's election, such other amounts in addition to or in
lieu of the foregoing as may be permitted  from time to time by applicable  law.
The term  "rent" as used in this  Paragraph  17(a)  shall be deemed to be and to
mean all sums of every  nature  required  to be paid by Tenant  pursuant  to the
terms of this Lease,  whether to Landlord  or to others.  As used in  Paragraphs
17(a)(i) and (ii),  above, the "worth at the time of award" shall be computed by
allowing  interest at the Default Rate,  but in no case greater than the maximum
amount of such interest permitted by law. As used in Paragraph 17(a)(iii) above,
the "worth at the time of award" shall be computed by discounting such amount at
the discount  rate of the Federal  Reserve Bank of San  Francisco at the time of
award plus one percent (1%).

     (b)  Landlord  shall have the remedy  described  in  California  Civil Code
Section 1951.4  (lessor may continue  lease in effect after lessee's  breach and
abandonment  and  recover  rent as it  becomes  due,  if lessee has the right to
sublet or assign,  subject  only to  reasonable  limitations).  Accordingly,  if
Landlord  does not elect to  terminate  this  Lease on  account  of any Event of
Default by Tenant,  Landlord may, from time to time,  without  terminating  this
Lease,  enforce all of its rights and remedies  under this Lease,  including the
right to recover all Rent as it becomes due.

     (c) Landlord  shall at all times have the rights and remedies  (which shall
be cumulative with each other and cumulative and in addition to those rights and
remedies  available under  Paragraphs 17(a) and 17(b) above, or any law or other
provision of this Lease),  without  prior demand or notice except as required by
applicable law, to seek any declaratory,  injunctive, or other equitable relief,
and specifically enforce this Lease, or restrain or enjoin a violation or breach
of any provision hereof.

     (d)  Following the  occurrence  of three  instances of payment of Rent more
than ten (10) days late in any twelve  (12) month  period,  the late  charge set
forth in Paragraph 4 shall apply from the date payment was due and Landlord may,
without prejudice to any other rights or remedies  available to it, upon written
notice to  Tenant,  require  that all  remaining  monthly  installments  of Rent
payable under this Lease shall be payable by cashier's check or electronic funds
transfer three (3) months in advance,  and may require that Tenant  increase the
Security  Deposit to an amount equal to three times the current  month's Rent at
the time of the most recent default. In addition,  (i) upon the occurrence of an
Event of Default by Tenant,  if the Premises or any portion  thereof are sublet,
Landlord  may, at its option and in addition and without  prejudice to any other
remedies  herein  provided  or  provided  by  law,  collect  directly  from  the
sublessee(s)  all  rentals  becoming  due to the Tenant  and apply such  rentals
against  other sums due  hereunder  to Landlord;  (ii) without  prejudice to any
other  right or remedy of  Landlord,  if Tenant  shall be in default  under this
Lease,  Landlord may cure the same at the expense of Tenant (A)  immediately and
without notice in the case (1) of emergency, (2) where such default unreasonably
interferes with any other tenant in the Building, or (3) where such default will
result in the violation of any Regulation or the  cancellation  of any insurance
policy  maintained  by  Landlord,  and (B) in any  other  case  if such  default
continues  for ten (10) days  following  the receipt by Tenant of notice of such
default  from  Landlord  and all costs  incurred  by  Landlord  in  curing  such
default(s),   including,   without   limitation,   attorneys'   fees,  shall  be
reimbursable  by Tenant as Rent  hereunder  upon demand,  together with interest
thereon,  from the date such costs were  incurred  by  Landlord,  at the Default
Rate; and (iii) Tenant hereby waives for Tenant and for all those claiming under
Tenant all rights now and  hereafter  existing to redeem by order or judgment of
any court or by any legal  process or writ,  Tenant's  right of occupancy of the
Premises after any termination of this Lease.

18. Surrender of Premises. No act by Landlord shall be deemed an acceptance of a
surrender  of the  Premises,  and no  agreement  to  accept a  surrender  of the
Premises  shall be valid unless it is in writing and signed by Landlord.  At the
expiration  or  earlier  termination  of this  Lease,  Tenant  shall  deliver to
Landlord all keys (including any electronic  access devices and the like) to the
Premises,  and  Tenant  shall  deliver  to  Landlord  the  Premises  in the same
condition  as existed on the date Tenant  originally  took  possession  thereof,
ordinary wear and tear excepted,  provided that ordinary wear and tear shall not
include repair and clean up items.  By way of example,  but without  limitation,
repair and clean up items shall include cleaning of all interior walls,  carpets
and floors,  replacement  of damaged or missing  ceiling or floor tiles,  window
coverings or cover plates, removal of any Tenant-introduced markings, and repair
of all holes and gaps and repainting  required  thereby,  as well as the removal
requirements  below.  In addition,  prior to the  expiration  of the Term or any
sooner termination thereof, (a) Tenant shall remove such Alterations as Landlord
shall  request and shall  restore the portion of the  Premises  affected by such
Alterations and such removal to its condition existing  immediately prior to the
making of such  Alterations,  (b) Tenant  shall  remove  from the  Premises  all
unattached trade fixtures, furniture, equipment and personal property located in
the Premises,  including,  without limitation,  phone equipment, wiring, cabling
and all garbage, waste and debris, and (c) Tenant shall repair all damage to the
Premises  or  the  Project  caused  by  any  such  removal  including,   without
limitation,  full  restoration  of all  holes and gaps  resulting  from any such
removal and repainting  required thereby.  All personal property and fixtures of
Tenant  not  so  removed  shall,  to  the  extent   permitted  under  applicable
Regulations, be deemed to have been abandoned by Tenant and may be appropriated,
sold, stored,  destroyed, or otherwise disposed of by Landlord without notice to
Tenant and without any obligation to account for such items.

19.  Holding  Over.  If Tenant  holds  over  after  the  expiration  or  earlier
termination of the Term hereof,  with or without the express or implied  consent
of Landlord,  Tenant shall become and be only a tenant at  sufferance at a daily
rent equal to  one-thirtieth  of the greater of (a) the then prevailing  monthly
fair market  rental  rate as  determined  by  Landlord in its sole and  absolute
discretion, or (b) two hundred percent (200%) of the monthly installment of Base
Rent (and  estimated  Additional  Rent payable under  Paragraph  3.2) payable by
Tenant  immediately prior to such expiration or termination,  and otherwise upon
the terms, covenants and conditions herein specified,  so far as applicable,  as
reasonably  determined  by  Landlord.  Neither  any  provision  hereof  nor  any
acceptance  by  Landlord  of any Rent  after  any  such  expiration  or  earlier
termination  (including,  without  limitation,  through any "lockbox")  shall be
deemed a consent to any holdover  hereunder or result in a renewal of this Lease
or an  extension  of the  Term,  or any  waiver of any of  Landlord's  rights or
remedies  with respect to such  holdover.  Notwithstanding  any provision to the
contrary  contained herein, (i) Landlord expressly reserves the right to require
Tenant to surrender  possession of the Premises upon the  expiration of the Term
or upon the earlier  termination hereof or at any time during any holdover,  and
the right to assert any remedy at law or in equity to evict  Tenant and  collect
damages in connection with any such holdover,  and (ii) Tenant shall  indemnify,
defend and hold Landlord harmless from and against any and all claims,  demands,
actions,  proceedings,  losses, damages,  liabilities,  obligations,  penalties,
costs and expenses,  including,  without limitation,  all lost profits and

                                       7
<PAGE>

other consequential damages,  attorneys' fees, consultants' fees and court costs
incurred  or  suffered  by or  asserted  against  Landlord by reason of Tenant's
failure to surrender the Premises on the  expiration or earlier  termination  of
this Lease in accordance with the provisions of this Lease.

20.  Substitution  Space.  Upon at least sixty (60) days' prior written  notice,
Landlord may relocate  Tenant within the Project (or to any other facility owned
by Landlord  within the vicinity of the Project) to space which is comparable in
size,  utility and  condition to the  Premises.  If Landlord  relocates  Tenant,
Landlord  shall (a)  reimburse  Tenant  for  Tenant's  reasonable  out-of-pocket
expenses for moving Tenant's furniture, equipment and supplies from the Premises
to the  relocation  space and for  reprinting  Tenant's  stationery  of the same
quality and quantity as Tenant's  stationery  supply on hand immediately  before
Landlord's  notice to Tenant of the exercise of this relocation  right,  and (b)
improve the relocation space with  improvements  substantially  similar to those
Landlord is  committed  to provide or has  provided in the  Premises  under this
Lease.  Upon such  relocation,  the  relocation  space shall be deemed to be the
Premises  and the terms of this Lease shall remain in full force and shall apply
to the relocation space; provided, however, that (i) if the rentable area of the
relocation  space is smaller than  rentable  area of the  Premises,  then Tenant
shall be entitled  (from and after the  relocation  date) to a reduction in Base
Rent in proportion to the reduction in the rentable area of the Premises, with a
corresponding reduction in Tenant's Proportionate Share and (ii) if the rentable
area of the  relocation  space is larger than the rentable area of the Premises,
then the Base Rent and Tenant's Proportionate Share shall not be modified in any
way.

21. Miscellaneous.

         21.1  Landlord   Transfers  and   Liability.   Landlord  may,   without
restriction,  sell,  assign or  transfer in any manner all or any portion of the
Project,  any interest therein or any of Landlord's  rights under this Lease. If
Landlord assigns its rights under this Lease, then Landlord shall  automatically
be released from any further obligations  hereunder,  provided that the assignee
thereof  assumes in writing all of  Landlord's  obligations  hereunder  accruing
after such  assignment.  The  liability of Landlord to Tenant for any default by
Landlord  under the terms of this  Lease or with  respect to any  obligation  or
liability  related to the Premises or the Project shall be recoverable only from
the interest of Landlord in the Project,  and neither Landlord nor any affiliate
thereof shall have any personal  liability  with respect  thereto and in no case
shall Landlord be liable to Tenant for any lost profits,  damage to business, or
any form of special,  indirect or consequential  damage on account of any breach
of this Lease.

         21.2 Estoppel Certificates;  Financial Statements. At any time and from
time to time during the Term, Tenant shall, without charge, execute, acknowledge
and deliver to Landlord within ten (10) days after Landlord's  request therefor,
an  estoppel   certificate   in   recordable   form   containing   such  factual
certifications  and other  provisions  as are found in the estoppel  certificate
forms requested by  institutional  lenders and purchasers.  Tenant agrees in any
case that (a) the foregoing  certificate  may be relied on by anyone  holding or
proposing to acquire any interest in the Project from or through  Landlord or by
any mortgagee or lessor or prospective  mortgagee or lessor of the Project or of
any interest  therein and (b) the form of estoppel  certificate  shall be in the
form  of,  at  Landlord's  election,  the  standard  form  of  such  present  or
prospective  lender,  lessor or  purchaser  (or any form  substantially  similar
thereto),  or any other  form that  Landlord  shall  reasonably  select.  At the
request of Landlord from time to time,  Tenant shall provide to Landlord  within
ten (10)  days of  Landlord's  request  therefor  Tenant's  and any  guarantor's
current financial statements.

         21.3  Notices.  Notices,  requests,  consents  or other  communications
desired or required to be given by or on behalf of Landlord or Tenant under this
Lease shall be effective  only if given in writing and sent by (a) registered or
certified United States mail, postage prepaid, (b) nationally recognized express
mail courier that provides  written evidence of delivery,  fees prepaid,  or (c)
facsimile and United States mail, postage prepaid, and addressed as set forth in
the Basic Lease Information, or at such other address in the State of California
as may be  specified  from time to time,  in writing,  or, if to Tenant,  at the
Premises. Any such notice,  request,  consent, or other communication shall only
be deemed given (i) if sent by  registered  or certified  United States mail, on
the day it is officially delivered to or refused by the intended recipient, (ii)
if sent  by  nationally  recognized  express  mail  courier,  on the  date it is
officially  recorded by such courier,  (iii) if delivered by  facsimile,  on the
date the sender  obtains  written  telephonic  confirmation  that the electronic
transmission was received, or (iv) if delivered personally, upon delivery or, if
refused by the intended recipient, upon attempted delivery.

         21.4  Payment  by Tenant;  Non-Waiver.  Landlord's  acceptance  of Rent
(including,  without  limitation,  through any "lockbox")  following an Event of
Default shall not waive Landlord's  rights  regarding such Event of Default.  No
waiver by  Landlord  of any  violation  or breach of any of the terms  contained
herein shall waive  Landlord's  rights  regarding  any future  violation of such
terms.  Landlord's  acceptance  of any  partial  payment of Rent shall not waive
Landlord's  rights with regard to the remaining portion of the Rent that is due,
regardless of any endorsement or other statement on any instrument  delivered in
payment of Rent or any writing delivered in connection  therewith;  accordingly,
Landlord's  acceptance  of a partial  payment  of Rent shall not  constitute  an
accord and satisfaction of the full amount of the Rent that is due.

         21.5 Certain Rights Reserved by Landlord.  Landlord hereby reserves and
shall have the  following  rights with  respect to the Premises and the Project:
(a) to  decorate  and to  make  inspections,  repairs,  alterations,  additions,
changes,  or  improvements,  whether  structural or otherwise,  in and about the
Project,  the  Building,  the  Premises or any part  thereof;  to enter upon the
Premises and,  during the  continuance  of any such work, to  temporarily  close
doors, entryways, public space, and corridors in the Project or the Building; to
interrupt or suspend temporarily Building services and facilities; to change the
name of the Building or the Project;  and to change the arrangement and location
of entrances or passageways,  doors, and doorways, corridors, elevators, stairs,
restrooms,  common areas,  or other public parts of the Building or the Project;
(b) to take such  measures as  Landlord  deems  advisable  in good faith for the
security of the Building and its occupants;  to  temporarily  deny access to the
Building to any person;  and to close the Building after ordinary business hours
and on Sundays and Holidays,  subject,  however, to Tenant's right to enter when
the  Building  is closed  after  ordinary  business  hours  under such rules and
regulations  as Landlord may  reasonably  prescribe from time to time during the
Term;  and (c) to enter the Premises at  reasonable  hours (or at any time in an
emergency) to perform repairs,  to take any action authorized  hereunder,  or to
show the Premises to prospective  purchasers or lenders, or, during the last six
(6) months of the Term, prospective tenants.

         21.6  Miscellaneous.  If any  clause  or  provision  of this  Lease  is
illegal,  invalid,  or  unenforceable  under  present or future  laws,  then the
remainder  of this Lease  shall not be affected  thereby.  This Lease may not be
amended  except by  instrument  in writing  signed by Landlord  and  Tenant.  No
provision  of this Lease shall be deemed to have been waived by Landlord  unless
such waiver is in writing signed by Landlord. The terms and conditions contained
in this Lease  shall  inure to the  benefit of and be binding  upon the  parties
hereto,   and  upon  their   respective   successors   in  interest   and  legal
representatives,  except as  otherwise  herein  expressly  provided.  This Lease
constitutes  the entire  agreement  between  Landlord and Tenant  regarding  the
subject  matter hereof and  supersedes  all oral  statements  and prior writings
relating  thereto.  Tenant and the person or persons signing on behalf of Tenant
represent  and warrant  that Tenant has full right and  authority  to enter into
this Lease, and that all persons signing this Lease on its behalf are authorized
to do so. If Tenant is comprised  of more than one party,  each such party shall
be jointly and severally liable for Tenant's  obligations  under this Lease. All
exhibits  and  attachments  attached  hereto  are  incorporated  herein  by this
reference.  This Lease shall be governed by and construed in accordance with the
laws of the State of  California.  In any action which Landlord or Tenant brings
to enforce its respective rights hereunder, the unsuccessful party shall pay all
costs incurred by the prevailing party, including without limitation, reasonable
attorneys'  fees and court

                                       8
<PAGE>

costs.  Tenant  shall not record  this Lease or any  memorandum  hereof.  TO THE
MAXIMUM EXTENT  PERMITTED BY LAW,  LANDLORD AND TENANT EACH WAIVE RIGHT TO TRIAL
BY  JURY  IN ANY  LITIGATION  ARISING  OUT OF OR WITH  RESPECT  TO  THIS  LEASE.
Submission  of this Lease to Tenant  does not  constitute  an option or offer to
lease and this Lease is not effective  otherwise until execution and delivery by
both  Landlord  and  Tenant.  This  Lease  may  be  executed  in any  number  of
counterparts,  each of which shall be deemed an original. Time is of the essence
as to the performance of each covenant hereunder in which time of performance is
a factor.

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                                       9
<PAGE>

                                    EXHIBIT A

                              RULES AND REGULATIONS
                                    EXHIBIT A
                              Rules and Regulations

1.   Driveways,   sidewalks,  halls,  passages,  exits,  entrances,   elevators,
     escalators  and  stairways  shall not be  obstructed  by tenants or used by
     tenants  for any  purpose  other than for  ingress to and egress from their
     respective premises.  The driveways,  sidewalks,  halls,  passages,  exits,
     entrances,  elevators  and  stairways  are not  for the use of the  general
     public and  Landlord  shall in all cases  retain  the right to control  and
     prevent  access thereto by all persons whose  presence,  in the judgment of
     Landlord,  shall be  prejudicial to the safety,  character,  reputation and
     interests  of the  Building,  the Project and its  tenants,  provided  that
     nothing  herein  contained  shall be  construed  to prevent  such access to
     persons with whom any tenant  normally deals in the ordinary course of such
     tenant's business unless such persons are engaged in illegal activities. No
     tenant, and no employees or invitees of any tenant,  shall go upon the roof
     of any  Building,  except as  authorized  by  Landlord.  No tenant,  and no
     employees  or invitees of any tenant  shall move any common area  furniture
     without Landlord's consent.

2.   No sign, placard,  banner, picture, name,  advertisement or notice, visible
     from the  exterior of the  Premises or the  Building or the common areas of
     the Building shall be inscribed,  painted, affixed,  installed or otherwise
     displayed  by Tenant  either on its Premises or any part of the Building or
     Project  without the prior written  consent of Landlord in Landlord's  sole
     and absolute  discretion.  Landlord shall have the right to remove any such
     sign, placard,  banner,  picture,  name,  advertisement,  or notice without
     notice to and at the expense of Tenant,  which were  installed or displayed
     in  violation  of this rule.  If Landlord  shall have given such consent to
     Tenant at any time,  whether  before or after  the  execution  of  Tenant's
     Lease,  such consent  shall in no way operate as a waiver or release of any
     of the  provisions  hereof or of the  Lease,  and shall be deemed to relate
     only to the particular sign, placard,  banner, picture, name, advertisement
     or notice so  consented  to by  Landlord  and  shall  not be  construed  as
     dispensing with the necessity of obtaining the specific  written consent of
     Landlord  with respect to any other such sign,  placard,  banner,  picture,
     name, advertisement or notice.

     All  approved  signs or  lettering  on doors  and walls  shall be  printed,
     painted,  affixed  or  inscribed  at the  expense  of Tenant by a person or
     vendor  approved by Landlord  and shall be removed by Tenant at the time of
     vacancy at Tenant's expense.

3.   The directory of the Building or Project will be provided  exclusively  for
     the display of the name and location of tenants only and Landlord  reserves
     the right to charge  for the use  thereof  and to exclude  any other  names
     therefrom.

4.   No  curtains,   draperies,  blinds,  shutters,  shades,  screens  or  other
     coverings,  awnings,  hangings or decorations shall be attached to, hung or
     placed in, or used in connection  with,  any window or door on the Premises
     without the prior written consent of Landlord.  In any event with the prior
     written consent of Landlord,  all such items shall be installed  inboard of
     Landlord's standard window covering and shall in no way be visible from the
     exterior of the Building.  All electrical  ceiling fixtures hung in offices
     or spaces along the perimeter of the Building must be  fluorescent  or of a
     quality,  type,  design,  and bulb color approved by Landlord.  No articles
     shall be placed or kept on the window  sills so as to be  visible  from the
     exterior  of the  Building.  No  articles  shall be  placed  against  glass
     partitions  or  doors  which  Landlord  considers  unsightly  from  outside
     Tenant's Premises.

5.   Landlord  reserves  the right to exclude from the Building and the Project,
     between  the  hours of 6 p.m.  and 8 a.m.  and at all  hours on  Saturdays,
     Sundays  and legal  holidays,  all  persons  who are not  tenants  or their
     accompanied  guests in the Building.  Each tenant shall be responsible  for
     all  persons  for whom it allows to enter the  Building  or the Project and
     shall be liable to Landlord for all acts of such persons.

     Landlord  and its  agents  shall not be liable  for  damages  for any error
     concerning the admission to, or exclusion from, the Building or the Project
     of any person.

     During the  continuance of any invasion,  mob, riot,  public  excitement or
     other circumstance  rendering such action advisable in Landlord's  opinion,
     Landlord  reserves the right (but shall not be obligated) to prevent access
     to the Building and the Project during the continuance of that event by any
     means it considers  appropriate for the safety of tenants and protection of
     the Building, property in the Building and the Project.

6.   All  cleaning  and  janitorial  services  for the Building and the Premises
     shall be provided  exclusively  through  Landlord.  Except with the written
     consent of  Landlord,  no person or persons  other than those  approved  by
     Landlord  shall be  permitted  to enter the  Building  for the  purpose  of
     cleaning the same.  Tenant shall not cause any unnecessary  labor by reason
     of Tenant's  carelessness or indifference in the preservation of good order
     and cleanliness of its Premises. Landlord shall in no way be responsible to
     Tenant for any loss of property on the Premises,  however occurring, or for
     any damage done to Tenant's  property by the janitor or any other  employee
     or any other person.

7.   Tenant  shall see that all doors of its  Premises  are closed and  securely
     locked and must observe  strict care and caution that all water  faucets or
     water apparatus,  coffee pots or other heat-generating devices are entirely
     shut off before  Tenant or its employees  leave the Premises,  and that all
     utilities  shall  likewise be carefully shut off, so as to prevent waste or
     damage. Tenant shall be responsible for any damage or injuries sustained by
     other  tenants or  occupants  of the Building or Project or by Landlord for
     noncompliance with this rule. On multiple-tenancy floors, all tenants shall
     keep the door or doors to the Building corridors closed at all times except
     for ingress and egress.

8.   Tenant shall not use any method of heating or  air-conditioning  other than
     that supplied by Landlord.  As more specifically provided in Tenant's lease
     of  the   Premises,   Tenant   shall  not  waste   electricity,   water  or
     air-conditioning  and agrees to cooperate fully with Landlord to assure the
     most effective  operation of the Building's  heating and  air-conditioning,
     and shall refrain from  attempting  to adjust any controls  other than room
     thermostats installed for Tenant's use.

9.   Landlord  will furnish  Tenant free of charge with two keys to each door in
     the  Premises.  Landlord  may make a reasonable  charge for any  additional
     keys, and Tenant shall not make or have made additional keys.  Tenant shall
     not alter any lock or access device or install a new or additional  lock or
     access  device  or bolt on any  door of its  Premises,  without  the  prior
     written  consent of Landlord.  If Landlord  shall give its consent,  Tenant
     shall in each case furnish  Landlord with a key for any such lock.  Tenant,
     upon the termination of its tenancy, shall deliver to Landlord the keys for
     all doors which have been furnished to Tenant,  and in the event of loss of
     any keys so furnished, shall pay Landlord therefor.

10.  The restrooms,  toilets,  urinals, wash bowls and other apparatus shall not
     be used for any purpose other than that for which they were constructed and
     no foreign  substance of any kind whatsoever shall be thrown into them. The
     expense of any breakage,  stoppage,  or damage  resulting from violation of
     this rule shall be borne by the tenant who, or whose employees or invitees,
     shall have caused the breakage, stoppage, or damage.

11.  Tenant  shall not use or keep in or on the  Premises,  the  Building or the
     Project any kerosene,  gasoline,  or inflammable  or  combustible  fluid or
     material.

12.  Tenant shall not use, keep or permit to be used or kept in its Premises any
     foul or noxious gas or substance. Tenant shall not allow the Premises to be
     occupied  or used in a manner  offensive  or  objectionable  to Landlord or
     other occupants of the Building by reason of noise, odors and/or vibrations
     or  interfere  in any way  with  other  tenants  or those  having  business
     therein,  nor shall any animals or birds be brought or kept in or about the
     Premises, the Building, or the Project.

<PAGE>

13.  No cooking shall be done or permitted by any tenant on the Premises, except
     that use by the tenant of Underwriters' Laboratory (UL) approved equipment,
     refrigerators  and  microwave  ovens  may be used in the  Premises  for the
     preparation of coffee,  tea, hot chocolate and similar  beverages,  storing
     and heating food for tenants and their  employees  shall be permitted.  All
     uses must be in  accordance  with all  applicable  federal,  state and city
     laws, codes, ordinances, rules and regulations and the Lease.

14.  Except with the prior written  consent of Landlord,  Tenant shall not sell,
     or permit  the sale,  at retail,  of  newspapers,  magazines,  periodicals,
     theater  tickets or any other goods or  merchandise  in or on the Premises,
     nor shall  Tenant carry on, or permit or allow any employee or other person
     to carry on,  the  business  of  stenography,  typewriting  or any  similar
     business  in or from the  Premises  for the  service  or  accommodation  of
     occupants of any other portion of the  Building,  nor shall the Premises be
     used for the storage of  merchandise or for  manufacturing  of any kind, or
     the business of a public barber shop, beauty parlor, nor shall the Premises
     be used for any illegal, improper, immoral or objectionable purpose, or any
     business  or activity  other than that  specifically  provided  for in such
     Tenant's Lease. Tenant shall not accept hairstyling,  barbering, shoeshine,
     nail, massage or similar services in the Premises or common areas except as
     authorized by Landlord.

15.  If  Tenant  requires  telegraphic,  telephonic,  telecommunications,   data
     processing,  burglar alarm or similar services,  it shall first obtain, and
     comply with,  Landlord's  instructions in their  installation.  The cost of
     purchasing,  installation  and  maintenance of such services shall be borne
     solely by Tenant.

16.  Landlord will direct electricians as to where and how telephone,  telegraph
     and  electrical  wires  are to be  introduced  or  installed.  No boring or
     cutting  for wires will be allowed  without  the prior  written  consent of
     Landlord. The location of burglar alarms, telephones,  call boxes and other
     office  equipment  affixed  to the  Premises  shall be subject to the prior
     written approval of Landlord.

17.  Tenant shall not install any radio or television  antenna,  satellite dish,
     loudspeaker  or any other device on the  exterior  walls or the roof of the
     Building, without Landlord's consent. Tenant shall not interfere with radio
     or  television  broadcasting  or  reception  from or in the  Building,  the
     Project or elsewhere.

18.  Tenant shall not mark, or drive nails, screws or drill into the partitions,
     woodwork or drywall or in any way deface the  Premises or any part  thereof
     without Landlord's consent. Tenant may install nails and screws in areas of
     the Premises that have been  identified  for those  purposes to Landlord by
     Tenant  at the  time  those  walls  or  partitions  were  installed  in the
     Premises.  Tenant shall not lay linoleum,  tile,  carpet or any other floor
     covering so that the same shall be affixed to the floor of its  Premises in
     any  manner  except as  approved  in writing by  Landlord.  The  expense of
     repairing any damage resulting from a violation of this rule or the removal
     of any floor  covering  shall be borne by the  tenant by whom,  or by whose
     contractors, employees or invitees, the damage shall have been caused.

19.  No  furniture,   freight,   equipment,   materials,   supplies,   packages,
     merchandise  or other  property will be received in the Building or carried
     up or down the elevators except between such hours and in such elevators as
     shall be designated by Landlord.

     Tenant shall not place a load upon any floor of its Premises  which exceeds
     the load per square foot which such floor was designed to carry or which is
     allowed by law. Landlord shall have the right to prescribe the weight, size
     and position of all safes,  furniture or other heavy equipment brought into
     the Building.  Safes or other heavy objects shall, if considered  necessary
     by  Landlord,  stand on wood  strips of such  thickness  as  determined  by
     Landlord  to be  necessary  to  properly  distribute  the  weight  thereof.
     Landlord  will not be  responsible  for loss of or damage to any such safe,
     equipment or property  from any cause,  and all damage done to the Building
     by moving or maintaining  any such safe,  equipment or other property shall
     be repaired at the expense of Tenant.

     Business machines and mechanical  equipment belonging to Tenant which cause
     noise or vibration that may be transmitted to the structure of the Building
     or to any space therein to such a degree as to be objectionable to Landlord
     or to any tenants in the Building shall be placed and maintained by Tenant,
     at Tenant's expense,  on vibration  eliminators or other devices sufficient
     to  eliminate  noise  or  vibration.  The  persons  employed  to move  such
     equipment in or out of the Building must be acceptable to Landlord.

20.  Tenant shall not install, maintain or operate upon its Premises any vending
     machine without the written consent of Landlord.

21.  There shall not be used in any space, or in the public areas of the Project
     either by Tenant or others,  any hand trucks  except  those  equipped  with
     rubber tires and side guards or such other material  handling  equipment as
     Landlord  may approve.  Tenants  using hand trucks shall be required to use
     the freight  elevator,  or such elevator as Landlord  shall  designate.  No
     other  vehicles  of any kind shall be brought by Tenant  into or kept in or
     about its Premises.

22.  Each tenant  shall store all its trash and garbage  within the  interior of
     the Premises.  Tenant shall not place in the trash boxes or receptacles any
     personal trash or any material that may not or cannot be disposed of in the
     ordinary  and  customary  manner of  removing  and  disposing  of trash and
     garbage in the city,  without  violation of any law or ordinance  governing
     such disposal.  All trash,  garbage and refuse  disposal shall be made only
     through  entry-ways  and  elevators  provided for such purposes and at such
     times as Landlord  shall  designate.  If the  Building  has  implemented  a
     building-wide  recycling  program for tenants,  Tenant shall use good faith
     efforts to participate in said program.

23.  Canvassing,  soliciting,  distribution  of handbills  or any other  written
     material and peddling in the  Building and the Project are  prohibited  and
     each  tenant  shall  cooperate  to prevent the same.  No tenant  shall make
     room-to-room solicitation of business from other tenants in the Building or
     the Project, without the written consent of Landlord.

24.  Landlord  shall  have the right,  exercisable  without  notice and  without
     liability to any tenant, to change the name and address of the Building and
     the Project.

25.  Landlord reserves the right to exclude or expel from the Project any person
     who, in Landlord's judgment,  is under the influence of alcohol or drugs or
     who commits any act in violation of any of these Rules and Regulations.

26.  Without the prior  written  consent of  Landlord,  Tenant shall not use the
     name of the Building or the Project or any  photograph or other likeness of
     the  Building  or the  Project  in  connection  with,  or in  promoting  or
     advertising,   Tenant's   business  except  that  Tenant  may  include  the
     Building's or Project's name in Tenant's address.

27.  Tenant  shall  comply  with all  safety,  fire  protection  and  evacuation
     procedures  and  regulations  established  by Landlord or any  governmental
     agency.

28.  Tenant assumes any and all  responsibility for protecting its Premises from
     theft, robbery and pilferage, which includes keeping doors locked and other
     means of entry to the Premises closed.

29.  The  requirements  of Tenant  will be  attended  to only  upon  appropriate
     application  at the office of the  Building  by an  authorized  individual.
     Employees of Landlord shall not perform any work or do anything  outside of
     their regular duties unless under special  instructions from Landlord,  and
     no employees of Landlord will admit any person (tenant or otherwise) to any
     office without specific instructions from Landlord.

30.  Landlord  reserves the right to designate the use of the parking  spaces on
     the  Project.  Tenant or  Tenant's  guests  shall park  between  designated
     parking lines only,  and shall not occupy two parking  spaces with one car.
     Parking  spaces shall be for passenger  vehicles  only;  no boats,  trucks,
     trailers,

<PAGE>

     recreational  vehicles  or other  types of  vehicles  may be  parked in the
     parking  areas (except that trucks may be loaded and unloaded in designated
     loading  areas).  Vehicles  in  violation  of the above shall be subject to
     tow-away,  at  vehicle  owner's  expense.  Vehicles  parked on the  Project
     overnight  without  prior written  consent of the Landlord  shall be deemed
     abandoned and shall be subject to tow-away at vehicle owner's  expense.  No
     tenant of the Building shall park in visitor or reserved parking areas. Any
     tenant found parking in such designated  visitor or reserved  parking areas
     or  unauthorized  areas  shall be subject to  tow-away  at vehicle  owner's
     expense.  The  parking  areas  shall not be used to provide  car wash,  oil
     changes,  detailing,  automotive  repair or other services unless otherwise
     approved or furnished by Landlord.  Tenant will from time to time, upon the
     request of Landlord,  supply  Landlord with a list of license plate numbers
     of vehicles owned or operated by its employees or agents.

31.  No smoking of any kind shall be  permitted  anywhere  within the  Building,
     including,  without  limitation,  the Premises and those areas  immediately
     adjacent to the entrances  and exits to the Building,  or any other area as
     Landlord elects.  Smoking in the Project is only permitted in smoking areas
     identified by Landlord, which may be relocated from time to time.

32.  If the Building  furnishes common area conferences  rooms for tenant usage,
     Landlord  shall  have  the  right to  control  each  tenant's  usage of the
     conference  rooms,  including  limiting  tenant usage so that the rooms are
     equally available to all tenants in the Building. Any common area amenities
     or facilities shall be provided from time to time at Landlord's discretion.

33.  Tenant  shall not swap or exchange  building  keys or  cardkeys  with other
     employees or tenants in the Building or the Project.

34.  Tenant shall be  responsible  for the  observance  of all of the  foregoing
     Rules and Regulations by Tenant's employees,  agents,  clients,  customers,
     invitees and guests.

35.  These Rules and  Regulations are in addition to, and shall not be construed
     to in any way  modify,  alter or  amend,  in whole or in part,  the  terms,
     covenants,  agreements  and  conditions of any lease of any premises in the
     Project.

36.  Landlord may waive any one or more of these Rules and  Regulations  for the
     benefit of any particular tenant or tenants, but no such waiver by Landlord
     shall be  construed as a waiver of such Rules and  Regulations  in favor of
     any other tenant or tenants, nor prevent Landlord from thereafter enforcing
     any such Rules and Regulations against any or all tenants of the Building.

37.  Landlord  reserves  the right to make such other and  reasonable  rules and
     regulations  as in its  judgment may from time to time be needed for safety
     and security,  for care and cleanliness of the Building and the Project and
     for the  preservation of good order therein.  Tenant agrees to abide by all
     such  Rules and  Regulations  herein  stated and any  additional  rules and
     regulations which are adopted.

<PAGE>

                                    EXHIBIT B

                                   FLOOR PLAN

<PAGE>

                                    EXHIBIT C

                           LEASE IMPROVEMENT AGREEMENT

     1. In consideration of the mutual covenants contained in the Lease of which
this  Exhibit C is a part,  Landlord  agrees to perform  the  following  initial
tenant improvement work in the Premises ("Tenant Improvements")

         Building  standard  paint and carpet shall be installed  throughout the
         Premises.  All wall damage  shall be  repaired.  The  current  interior
         conference room shall be demised into two offices.

     2. All the  Tenant  Improvements  described  above  shall be  performed  by
Landlord at its cost and expense using  Building  Standard  materials and in the
Building  Standard manner.  As used herein,  "Building  Standard" shall mean the
standards  for a particular  item selected from time to time by Landlord for the
Building or such other standards as may be mutually agreed upon between Landlord
and Tenant in writing.

     3. Without limiting the "as-is" provisions of the Lease, Tenant accepts the
Premises  in  its  "as-is"  condition  and  acknowledges  that  Landlord  has no
obligation  to make any changes or  improvements  to the  Premises or to pay any
costs  expended  or to be  expended  in  connection  with  any such  changes  or
improvements,  other than the Tenant  Improvements  specified  in Paragraph 1 of
this Exhibit C.

     4. Tenant  shall not perform any work in the Premises  (including,  without
limitation, cabling, wiring, fixturization, painting, carpeting, replacements or
repairs) except in accordance with Paragraphs 7.1 and 7.3 of the Lease.

<PAGE>

                                    EXHIBIT D

                                    INSURANCE

Tenant's Insurance. Tenant shall, at Tenant's sole cost and expense, procure and
keep in effect from the date of this Lease and at all times until the end of the
Term, the following insurance coverage:

1.   Property  Insurance.  Insurance  on all  personal  property and fixtures of
     Tenant and all  improvements  made by or for Tenant to the  Premises  on an
     "All Risk" or "Special Form" basis, for the full replacement  value of such
     property.

2.   Liability  Insurance.  Commercial General Liability insurance written on an
     ISO CG 00 01 10 93 or equivalent form, on an occurrence  basis,  with a per
     occurrence limit of at least  $2,000,000,  and a minimum general  aggregate
     limit of at least  $3,000,000,  covering  bodily injury and property damage
     liability  occurring in or about the Premises or arising out of the use and
     occupancy  of the  Premises or the  Project by Tenant or any Tenant  Party.
     Such  insurance  shall  include  contractual  liability  coverage  insuring
     Tenant's  indemnity  obligations under this Lease, and shall be endorsed to
     name  Landlord,  any Holder of a Security  Instrument  and any other  party
     specified  by Landlord as an  additional  insured  with regard to liability
     arising out of the ownership, maintenance or use of the Premises.

3.   Worker's  Compensation  and Employer's  Liability  Insurance.  (a) Worker's
     Compensation  Insurance as required by any  Regulation,  and (b) Employer's
     Liability  Insurance in amounts not less than  $1,000,000 each accident for
     bodily  injury by accident and for bodily  injury by disease,  and for each
     employee for bodily injury by disease.

4.   Commercial Auto Liability  Insurance.  Commercial auto liability  insurance
     with a combined limit of not less than One Million Dollars ($1,000,000) for
     bodily injury and property  damage for each accident.  Such insurance shall
     cover liability  relating to any auto (including owned, hired and non-owned
     autos).

5.   Alterations  Requirements.  In the event Tenant shall desire to perform any
     Alterations,  Tenant shall deliver to Landlord,  prior to  commencing  such
     Alterations  (i)  evidence  satisfactory  to Landlord  that Tenant  carries
     "Builder's Risk" insurance covering  construction of such Alterations in an
     amount and form approved by Landlord, (ii) such other insurance as Landlord
     shall nondiscriminatorily  require, and (iii) a lien and completion bond or
     other security in form and amount satisfactory to Landlord.

6.   General Insurance  Requirements.  All Tenant's coverages  described in this
     Exhibit D shall be endorsed to (i) provide  Landlord with thirty (30) days'
     notice  of  cancellation  or  change in  terms;  (ii)  waive all  rights of
     subrogation by the insurance carrier against Landlord; and (iii) be primary
     and non-contributing with Landlord's  insurance.  If at any time during the
     Term the amount or coverage of insurance  which Tenant is required to carry
     under this Exhibit D is, in Landlord's reasonable judgment, materially less
     than the amount or type of insurance  coverage  typically carried by owners
     or tenants of properties  located in the general area in which the Premises
     are located  which are similar to and operated for similar  purposes as the
     Premises or if Tenant's use of the Premises  should  change with or without
     Landlord's  consent,  Landlord  shall have the right to  require  Tenant to
     increase  the amount or change  the types of  insurance  coverage  required
     under this  Exhibit D. All  insurance  policies  required  to be carried by
     Tenant under this Lease shall be written by companies  rated AVII or better
     in "Best's  Insurance  Guide" and authorized to do business in the State of
     California.  Deductible amounts under all insurance policies required to be
     carried by Tenant under this Lease shall not exceed $10,000 per occurrence.
     Tenant shall deliver to Landlord on or before the Term  Commencement  Date,
     and thereafter at least thirty (30) days before the expiration dates of the
     expired policies,  certified copies of Tenant's  insurance  policies,  or a
     certificate  evidencing the same issued by the insurer thereunder,  and, if
     Tenant shall fail to procure such insurance, or to deliver such policies or
     certificates,  Landlord  may,  at  Landlord's  option  and in  addition  to
     Landlord's  other  remedies  in the event of a default by Tenant  under the
     Lease,  procure  the same for the account of Tenant,  and the cost  thereof
     (with  interest  thereon at the Default  Rate) shall be paid to Landlord as
     Additional Rent.

Landlord's Insurance. All insurance maintained by Landlord shall be for the sole
benefit of Landlord and under Landlord's sole control.

1.   Property Insurance. Landlord agrees to maintain property insurance insuring
     the Building  against  damage or destruction  due to risk  including  fire,
     vandalism,   and  malicious  mischief  in  an  amount  not  less  than  the
     replacement cost thereof, in the form and with deductibles and endorsements
     as selected by Landlord.  At its election,  Landlord may instead (but shall
     have no  obligation  to) obtain  "All Risk"  coverage,  and may also obtain
     earthquake,  pollution,  and/or  flood  insurance  in amounts  selected  by
     Landlord.

2.   Optional  Insurance.  Landlord,  at Landlord's  option, may also (but shall
     have no  obligation  to) carry (i)  insurance  against loss of rent,  in an
     amount equal to the amount of Base Rent and  Additional  Rent that Landlord
     could  be  required  to  abate  to all  Building  tenants  in the  event of
     condemnation  or casualty  damage for a period of twelve (12)  months;  and
     (ii)  liability  insurance  and such other  insurance  as Landlord may deem
     prudent or advisable, including, without limitation, liability insurance in
     such amounts and on such terms as Landlord shall determine.  Landlord shall
     not be obligated to insure, and shall have no responsibility whatsoever for
     any damage to, any furniture,  machinery,  goods, inventory or supplies, or
     other  personal  property or fixtures  which Tenant may keep or maintain in
     the  Premises,  or any  leasehold  improvements,  additions or  alterations
     within the Premises.

<PAGE>

                                    Exhibit E

PARKING RULES AND REGULATIONS

1.       Cars must be parked entirely within painted stall lines.

2.       All directional signs and arrows must be observed.

3.       All posted speed limits for the parking areas shall be observed.  If no
         speed  limit is posted for an area,  the speed  limit shall be five (5)
         miles per hour.

4.       Parking is prohibited:

         (a)     in areas not striped for parking;

         (b)     in aisles;

         (c)     where "no parking" signs are posted;

         (d)     on ramps;

         (e)     in cross hatched areas; and

         (f)     in such other areas as may be designated by Landlord.

5.       Handicap and visitor stalls shall be used only by handicapped persons
         or visitors,  as applicable.

6.       Parking stickers or any other device or form of identification supplied
         by  Landlord  from time to time (if any) shall  remain the  property of
         Landlord.  Such  parking  identification  device must be  displayed  as
         requested and may not be mutilated in any manner.  The serial number of
         the parking  identification device may not be obliterated.  Devices are
         not transferable and any device may not be obliterated. Devices are not
         transferable  and any device in possession of any  unauthorized  holder
         will be void. There will be a replacement  charge payable by the parker
         and such  parker's  appropriate  tenant equal to the amount posted from
         time to time by Landlord for loss of any  magnetic  parking card or any
         parking sticker.

7.       Every  parker  is  required  to  park  and  lock  his or her own  car.
         All responsibility for damage to cars or persons is assumed by the
         parker.

8.       Loss or theft of parking  identification  devices  must be  reported to
         Landlord,  and a  report  of such  loss or  theft  must be filed by the
         parker at that time. Any parking  identification  devices reported lost
         or stolen found on any  unauthorized  car will be  confiscated  and the
         illegal holder will be subject to  prosecution.  Lost or stolen devices
         found by the parker must be reported to Landlord  immediately  to avoid
         confusion.

9.       Parking  spaces are for the express  purpose of parking one  automobile
         per space.  Washing,  waxing,  cleaning, or servicing of any vehicle by
         the parker and/or such person's agents is prohibited. The parking areas
         shall not be used for  overnight  or other  storage for vehicles of any
         type.

10.      Landlord   reserves  the  right  to  refuse  the  issuance  of  parking
         identification  or access  devices to any tenant  and/or such  tenant's
         employees,  agents, visitors or representatives who willfully refuse to
         comply with the Parking  Rules and  Regulations  and/or all  applicable
         governmental ordinances, laws, or agreements.

11.      Tenant   shall   acquaint   its   employees,    agents,   visitors   or
         representatives with the Parking Rules and Regulations,  as they may be
         in effect from time to time.

12.      Any monthly rental for parking shall be paid one month in advance prior
         to the first day of such  month.  Failure  to do so will  automatically
         cancel parking  privileges,  and a charge of the prevailing  daily rate
         will be due. No deductions or  allowances  from the monthly  rental for
         parking  will  be made  for  days a  parker  does  not use the  parking
         facilities.

13.      Each parker shall pay a reasonable  deposit for any parking card issued
         to such a person.  Such  deposit  shall be paid at the time the parking
         card is issued and shall be forfeited if the parking card is lost. Such
         deposit  shall be returned  without  interest,  at the time such person
         ceases to utilize the parking facilities, upon surrender of the parking
         card. A reasonable  replacement  charge shall be paid to replace a lost
         card and an amount in excess of the  initial  deposit may be charged as
         the replacement fee.EXHIBIT 10.52

                                 PROMISSORY NOTE

$700,000                                                     Seattle, Washington
                                                                    May 30, 2001

     FOR VALUE  RECEIVED,  the undersigned  promise to pay to Centrum  Financial
Services,  Inc., a Washington corporation,  or order, at P.O. Box 2243, Seattle,
Washington  98111-2243,  or at such  other  address  as the  holder  hereof  may
hereafter  direct in  writing,  the sum of SEVEN  HUNDRED  THOUSAND  and  no/100
DOLLARS  ($700,000.00),  In lawful  money of the United  States,  with  interest
thereon  from the date  hereof,  at the rate  hereinafter  provided,  payable as
follows:

     An amount  equal to all then unpaid  accrued  interest on or before the 1st
     day of July,  2001, and a sum equal to all then unpaid accrued  interest on
     or before the same day of each succeeding  calendar month  thereafter until
     such time as this  note is paid in full,  which  payments  are  subject  to
     adjustment as hereinafter  provided.  The undersigned  further agree to pay
     interest  from  the  date  hereof,  on  the  principal  balance,   and  the
     diminishing  amounts thereof,  at a rate equal to 6.00% per annum above the
     prime lending rate  established by Bank of America for commercial  loans in
     the  Seattle  area,  which rate is  presently  set at 7.00% per annum.  The
     interest rate herein shall be adjusted on the date hereof,  and  thereafter
     on the first day of each  succeeding  calendar month, to an amount equal to
     6.00% per annum above the prime  lending rate.  Interest  shall be deducted
     from each monthly  installment and the balance, if any, shall be applied in
     reduction of principal. The monthly payments shall be adjusted, on the date
     the  interest  rate is adjusted as  provided  above,  to a sum equal to the
     amount of interest  which  accrues  monthly  pursuant to this note.  In any
     event, the undersigned agree to pay this note in full on or before December
     1, 2002.

     If Bank of America  ceases to establish a prime  lending rate, or such rate
is otherwise  unavailable,  the holder hereof may choose a reasonably comparable
substitute in its sole discretion.

     If any monthly installment or other payment under this note is not received
by the holder hereof within 5 calendar days after the  installment or payment is
due, the  undersigned  agrees to pay the holder hereof a late charge of 5.00% of
such delinquent installment and/or payment.

     The  undersigned  may prepay  this note in whole,  or in part,  at any time
without penalty.

     The  undersigned  hereby  represents  and warrants to the holder  hereof as
follows:

(1)  That Stock Market Institute of Learning,  Inc., formerly known as Wade Cook
     Services,  Inc., is a corporation  duly organized and existing  pursuant to
     the laws of the State of Nevada, has paid all fees last due said State, and
     is  in  good  standing  therewith;   and  that  Evergreen  Lodging  Limited
     Partnership is a limited  partnership duly organized and existing  pursuant
     to the laws of the State of Nevada,  has paid all fees last due said State,
     and is in good  standing  therewith;  that Five Star  Consulting,  Inc is a
     corporation  duly organized and existing  pursuant to the laws of the State
     of Nevada,  has paid all fees last due said State,  and is in good standing
     therewith,  and is the sole general  partner of Evergreen  Lodging  Limited
     Partnership;  and that the parties signing for the foregoing  entities have
     good and  sufficient  authority  to bind  such  entities  to the  terms and
     conditions  of  this  note  as  well as any  other  documents  executed  in
     connection with the loan that is the subject hereof;

(2)  That the proceeds of this note will be used  exclusively for commercial and
     business purposes only;

PROMISSORY NOTE
Page 1 of 2

<PAGE>

(3)  That this  transaction  has been negotiated and consummated in the State of
     Washington;

(4)  That  all  documents   executed  and  delivered  in  connection  with  this
     transaction have been executed and delivered in the State of Washington;

(5)  That the laws of the State of  Washington  shall  govern the  validity  and
     construction of this note; and

(6)  That the undersigned  have received an opinion of independent  counsel that
     the loan  represented  by this note is not  usurious  under the laws of the
     State of Washington.

     The whole sum of both  principal and interest of this note shall be due and
payable in full,  without further notice,  at the option of the holder hereof in
the event that any of the security for this note,  or any part  thereof,  or any
interest therein, is directly or indirectly, voluntarily or involuntarily, sold,
transferred,  exchanged, or pledged in any way and any of such events shall be a
default under the terms and conditions of this note.

     In the event of a default in the  payment of this note,  or in the event of
any other  default  under the terms  and  conditions  of this note as  described
herein,  the whole sum of both  principal  and  interest  shall  become  due and
payable at once without  further notice at the option of the holder hereof,  and
after any such  default,  this note  shall  bear  interest  at the rate which is
20.00% per annum higher than the interest rate  otherwise  charged in connection
with this Note,  or 36.00% per annum,  whichever is higher.  If by reason of any
default it becomes  necessary for the holder or this note to employ an attorney,
of if an action is  instituted,  the  undersigned  promises  to pay the costs of
collection,  including reasonable  attorney's fees, and agrees, at the option of
the  holder  hereof,  that the  venue of any such  action  shall be laid in King
County,  Washington,  or, at the option of the holder hereof,  in such county or
counties  in which any  security  for this note may be  located.  Failure of the
holder hereof to accelerate  payment of this note shall not  constitute a waiver
of the  exercise  of this right if  default  is not cured or if the  undersigned
again defaults.

     Each and every party to this note, and all persons now or hereafter  liable
for the payment or performance of any of the conditions  hereof,  shall be bound
jointly and severally, and hereby waive presentment,  demand, protest and notice
of  nonpayment  of this note,  and consent that the holder hereof may extend the
time of payment or otherwise modify the terms of payment of any part or whole of
the debt evidenced by this note at the request of any party liable  herein,  and
agree that such consent  shall in no way alter or diminish any  liability of any
party hereon.

     This note is secured by a Deed of Trust of even date on  property in Pierce
County,  Washington,  Assignments  of Deeds of Trust in King and Pierce  County,
Washington, and Ada County, Idaho, as well as a Security Agreement of even date.

                                    STOCK MARKET INSTITUTE OF LEARNING, INC.,
                                    formerly known as Wade Cook Seminars, Inc.

                                    by:  /s/Wade B. Cook
                                         ---------------------------------------
                                         Wade B. Cook, President

                                    EVERGREEN LODGING LIMITED PARTNERSHIP
                                    by:  Five Star Consulting, Inc.,
                                         a Nevada corporation,
                                         General Partner

                                    by:  /s/Wade B. Cook
                                         ---------------------------------------
                                         Wade B. Cook, Presiden

PROMISSORY NOTE
Page 2of 2

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