Document:

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                                                                    EXHIBIT 10.6
                                INDUSTRIAL LEASE

                                       For

                               Centerpark Plaza I

                                 By and Between

                       Landlord: Spieker Properties, L.P.

                                       and

                           Tenant: Artest Corporation
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                             BASIC LEASE INFORMATION
                                 INDUSTRIAL NET
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<S>                                                               <C>
LEASE DATE:                                                  June 5, 2000

TENANT:                                                      Artest Corporation, a California corporation

TENANT'S NOTICE ADDRESS:                                     6696 Mesa Ridge Road, Suite A
                                                             San Diego, CA  92121

TENANT'S BILLING ADDRESS:                                    6696 Mesa Ridge Road, Suite A
                                                             San Diego, CA  92121

TENANT CONTACT:   Mr.  Rom Agotti                            PHONE NUMBER:     858/597-6028
                                                             FAX NUMBER:       858/597-8432

LANDLORD:                                                    Spieker Properties, L.P., a California limited
                                                             partnership

LANDLORD'S NOTICE ADDRESS:                                   9255 Towne Centre Drive, Suite 100
                                                             San Diego, CA  92121

LANDLORD'S REMITTANCE ADDRESS:                               Department 11371
                                                             P.O.  Box 60077
                                                             Los Angeles, CA  90060-0077

Project Description:                                         Centerpark Plaza One, containing four single story
                                                             industrial buildings, as more fully described in
                                                             Exhibit "B".

Building Description:                                        One single story industrial building located at
                                                             6696 Mesa Ridge Road, San Diego, CA 92121, as more
                                                             fully described in Exhibit "B".

Premises:                                                    Approximately 12,618 rentable square feet in Suite A of
                                                             the Building

Permitted Use:                                               Warehouse, office, light assembly and R&D, as permitted
                                                             under existing zoning

Parking Density:                                             3.7 spaces per 1,000 rentable square feet

Scheduled Term Commencement Date:                            July 1, 2000

Scheduled Length of Term:                                    60 months

Scheduled Term Expiration Date:                              June 30, 2005

Rent:

     Base Rent:                                              $11,987.00
                                                             (subject to adjustment as provided in Paragraph 39.A.
                                                             hereof)

Estimated First Year Operating Expenses:                     $2,776.00 per month

Security Deposit:                                            $14,432.00

Tenant's NAICS Code:                                         __________

Tenant's Proportionate Share:

     Of Building:                                            62.10%

     Of Project:                                             15.16%
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The foregoing Basic Lease Information is incorporated into and made a part of
this Lease. Each reference in this Lease to any of the Basic Lease Information
shall mean the respective information above and shall be construed to
incorporate all of the terms provided under the particular Lease paragraph
pertaining to such information. In the event of any conflict between the Basic
Lease Information and the Lease, the latter shall control.

                                     2.
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LANDLORD                                    TENANT

Spieker Properties, L.P.,                   Artest Corporation,
a California limited partnership            a California corporation

By:    Spieker Properties, Inc.,
       a Maryland corporation,              By:    /s/ Rom Angotti
       its general partner                         -----------------------
                                                   Rom Angotti
                                                   Its:   Vice President

By:    /s/ Richard L. Romney
       -----------------------------------
       Richard L.  Romney
       Its:   Senior Vice President

                                       3.
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                                TABLE OF CONTENTS

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         Basic Lease Information .................................................................................2
         Table of Contents........................................................................................4
1.       Premises.................................................................................................5
2.       Possession And Lease Commencement........................................................................5
3.       Term.....................................................................................................5
4.       Use......................................................................................................5
5.       Rules And Regulations....................................................................................6
6.       Rent.....................................................................................................7
7.       Operating Expenses.......................................................................................7
8.       Insurance And Indemnification...........................................................................10
9.       Waiver Of Subrogation...................................................................................12
10.      Landlord's Repairs And Maintenance......................................................................12
11.      Tenant's Repairs And Maintenance........................................................................13
12.      Alterations.............................................................................................13
13.      Signs...................................................................................................14
14.      Inspection/Posting Notices..............................................................................15
15.      Services And Utilities..................................................................................15
16.      Subordination...........................................................................................16
17.      Financial Statements....................................................................................16
18.      Estoppel Certificate....................................................................................17
19.      Security Deposit........................................................................................17
20.      Limitation Of Tenant's Remedies.........................................................................17
21.      Assignment And Subletting...............................................................................17
22.      Authority...............................................................................................20
23.      Condemnation............................................................................................20
24.      Casualty Damage.........................................................................................20
25.      Holding Over............................................................................................21
26.      Default.................................................................................................22
27.      Liens...................................................................................................24
28.      Substitution............................................................................................24
29.      Transfers By Landlord...................................................................................24
30.      Right Of Landlord To Perform Tenant's Covenants.........................................................24
31.      Waiver..................................................................................................24
32.      Notices.................................................................................................25
33.      Attorneys' Fees.........................................................................................25
34.      Successors And Assigns..................................................................................25
35.      Force Majeure...........................................................................................25
36.      Surrender Of Premises...................................................................................26
37.      Hazardous Materials.....................................................................................26
38.      Miscellaneous...........................................................................................27
39.      Additional Provisions...................................................................................29
40.      Jury Trial Waiver.......................................................................................29
         Signatures..............................................................................................29
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Exhibits:

         Exhibit A    Rules and Regulations
         Exhibit B    Site Plan, Property Description
         Exhibit C    Lease Improvement Agreement
         Exhibit D    Hazardous Materials Questionnaire

                                       4.
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                                      LEASE

         THIS LEASE is made as of the 5th day of June, 2000, by and between
Spieker Properties, L.P., a California limited partnership (hereinafter called
"Landlord"), and Artest Corporation, a California corporation, (hereinafter
called "Tenant").

                                  1. PREMISES

         Landlord leases to Tenant and Tenant leases from Landlord, upon the
terms and conditions hereinafter set forth, those premises (the "Premises")
outlined in red on Exhibit B and described in the Basic Lease Information. The
Premises shall be all or part of a building (the "Building") and of a project
(the "Project"), which may consist of more than one building and additional
facilities, as described in the Basic Lease Information. The Building and
Project are outlined in blue and green respectively on Exhibit B. Landlord and
Tenant acknowledge that physical changes may occur from time to time in the
Premises, Building or Project, and that the number of buildings and additional
facilities which constitute the Project may change from time to time, which may
result in an adjustment in Tenant's Proportionate Share, as defined in the Basic
Lease Information, as provided in Paragraph 7.A.

                      2. POSSESSION AND LEASE COMMENCEMENT

A.       [Deleted from Form Lease]

B. Construction of Improvements. If this Lease pertains to a Building to be
constructed or improvements to be constructed within a Building, the provisions
of this Paragraph 2.B. shall apply in lieu of the provisions of Paragraph 2.A.
above and the term commencement date ("Term Commencement Date") shall be the
earlier of the date on which: (1) Tenant takes possession of some or all of the
Premises; or (2) the improvements to be constructed or performed in the Premises
by Landlord (if any) shall have been substantially completed in accordance with
the plans and specifications, if any, described on Exhibit C however in no event
shall the Lease Commencement Date be later than July 1, 2000. Tenant's taking of
possession of the Premises or any part thereof shall constitute Tenant's
confirmation of substantial completion for all purposes hereof, whether or not
substantial completion of the Building or Project shall have occurred. If for
any reason Landlord cannot deliver possession of the Premises to Tenant on the
scheduled Term Commencement Date, Landlord shall not be subject to any),
liability therefor, nor shall Landlord be in default hereunder nor shall such
failure affect the validity of this Lease, and Tenant agrees to accept
possession of the Premises at such time as such improvements have been
substantially completed, which date shall then be deemed the Term Commencement
Date. Tenant shall not be liable for any Rent for any period prior to the Term
Commencement Date (but without affecting any obligations of Tenant under any
improvement agreement appended to this Lease). In the event of any dispute as to
substantial completion of work performed or required to be performed by
Landlord, the certificate of Landlord's architect or general contractor shall be
conclusive. Substantial completion shall have occurred notwithstanding Tenant's
submission of a punchlist to Landlord, which Tenant shall submit, if at all,
within three (3) business days after the Term Commencement Date or otherwise in
accordance with any improvement agreement appended to this Lease. Upon
Landlord's request, Tenant

                                       5.
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shall promptly execute and return to Landlord a "Start-Up Letter" in which
Tenant shall agree, among other things, to acceptance of the Premises and to the
determination of the Term Commencement Date, in accordance with the terms of
this Lease, 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. TERM

         The term of this Lease (the "Term") shall commence on the Term
Commencement Date and continue in full force and effect for the number of months
specified as the Length of Term in the Basic Lease Information or until this
Lease is terminated as otherwise provided herein. If the Term Commencement Date
is a date other than the first day of the calendar month, the Term shall be the
number of months of the Length of Term in addition to the remainder of the
calendar month following the Term Commencement Date.

                                     4. USE

A. General. Tenant shall use the Premises for the permitted use specified in the
Basic Lease Information ("Permitted Use") and for no other use or purpose.
Tenant shall control Tenant's employees, agents, customers, visitors, invitees,
licensees, contractors, assignees and subtenants (collectively, "Tenant's
Parties") in such a manner that Tenant and Tenant's parties cumulatively do not
exceed the parking density specified in the Basic Lease Information (the
"Parking Density") at any time. So long as Tenant is occupying the Premises,
Tenant and Tenant's Parties shall have the nonexclusive right to use, in common
with other parties occupying the Building or Project, the parking areas,
driveways and other common areas of the Building and Project, subject to the
terms of this Lease and such rules and regulations as Landlord may from time to
time prescribe. Landlord reserves the right, without notice or liability to
Tenant, and without the same constituting an actual or constructive eviction, to
alter or modify the common areas from time to time, including the location and
configuration thereof, and the amenities and facilities which Landlord may
determine to provide from time. Tenant, its employees, agents and invitees shall
have access to the Premises twenty-four (24) hours a day, seven (7) days a week.

B. Limitations. Tenant shall not permit any odors, smoke, dust, gas, substances,
noise or vibrations to emanate from the Premises or from any portion of the
common areas as a result of Tenant's or any Tenant's Party's use thereof, nor
take any action which would constitute a nuisance or would disturb, obstruct or
endanger any other tenants or occupants of the Building or Project or elsewhere,
or interfere with their use of their respective premises or common areas.
Storage outside the Premises of materials, vehicles or any other items is
prohibited. Tenant shall not use or allow the Premises to be used for any
immoral, improper or unlawful purpose, nor shall Tenant cause or maintain or
permit any nuisance in, on or about the Premises. Tenant shall not commit or
suffer the commission of any waste in, on or about the Premises. Tenant shall
not allow any sale by auction upon the Premises, or place any loads upon the
floors, walls or ceilings which could endanger the structure, or place any
harmful substances in the drainage system of the Building or Project. No waste,
materials or refuse shall be dumped upon or permitted to remain outside the
Premises except in trash containers placed inside exterior enclosures designated
for that purpose by Landlord. Landlord shall not be responsible to Tenant for
the non-compliance by any other tenant or occupant of the Building or Project
with any of the above-referenced rules or any other terms or provisions of such
tenant's or occupant's lease or other contract.

C. Compliance with Regulations. By entering the Premises, Tenant accepts the
Premises in the condition existing as of the date of such entry. Tenant shall at
its sole cost and expense strictly comply with all existing or future applicable
municipal, state and federal and other governmental statutes, rules,
requirements, regulations, laws and ordinances, including zoning ordinances and
regulations, and covenants, easements and restrictions of record governing and
relating to the use, occupancy or possession of the Premises, to Tenant's use of
the common areas, or to the use, storage, generation or disposal of Hazardous
Materials (hereinafter defined) (collectively "Regulations"). Tenant shall at
its sole cost and expense obtain any and all licenses or permits necessary for
Tenant's use of the Premises. Tenant shall at its sole cost and expense promptly
comply with the requirements of any board of fire underwriters or other similar
body now or hereafter constituted. Tenant shall not do or permit anything to be
done in, on, under or about the Project or bring or keep anything which will in
any way increase the rate of any insurance upon the Premises, Building or
Project or upon any contents therein or cause a cancellation of said insurance
or otherwise affect said insurance in any manner. Tenant shall indemnify, defend
(by counsel reasonably acceptable to Landlord), protect and hold Landlord
harmless from and against any loss, cost, expense, damage, attorneys' fees or
liability arising out of the failure of Tenant to comply with any Regulation.
Tenant's obligations pursuant to the foregoing indemnify shall survive the
expiration or earlier termination of this Lease. Notwithstanding anything to the
contrary in this Section 4.C. or elsewhere in this Lease, Tenant shall have

                                       6.
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no obligation to perform any alteration, modification or improvement to the
Premises which is required by law and is of a structural or capital nature
unless such alteration, modification or improvement is required due to either
Tenant's use of the Premises for other than the use stipulated in the Basic
Lease Information Section of this Lese, or any alteration, modifications or
improvements voluntarily made to the Premises by Tenant. In addition, Landlord
represents to the best of their knowledge that the Building is currently in
compliance with the Americans with Disability Act.

                            5. RULES AND REGULATIONS

         Tenant shall faithfully observe and comply with the building rules and
regulations attached hereto as Exhibit A and any other rules and regulations and
any modifications or additions thereto which Landlord may from time to time
prescribe in writing for the purpose of maintaining the proper care,
cleanliness, safety, traffic flow and general order of the premises or the
Building or Project. Tenant shall cause Tenant's Parties to comply with such
rules and regulations. Landlord shall not be responsible to Tenant for the
non-compliance by any other tenant or occupant of the Building or Project with
any of such rules and regulations, any other tenant's or occupant's lease or any
Regulations.

                                    6. RENT

A. Base Rent. Tenant shall pay to Landlord and Landlord shall receive, without
notice or demand throughout the Term, Base Rent as specified in the Basic Lease
Information, payable in monthly installments in advance on or before the first
day of each calendar month, in lawful money of the United States, without
deduction or offset whatsoever, at the Remittance Address specified in the Basic
Lease Information or to such other place as Landlord may from time to time
designate in writing. Base Rent for the first full month of the Term shall be
paid by Tenant upon Tenant's execution of this Lease. If the obligation for
payment of Base Rent commences on a day other than the first day of a month,
then Base Rent shall be prorated and the prorated installment shall be paid on
the first day of the calendar month next succeeding the Term Commencement Date.
The Base Rent payable by Tenant hereunder is subject to adjustment as provide
elsewhere in this Lease, as applicable. As used herein, the term "Base Rent"
shall mean the Base Rent specified in the Basic Lease Information as it may be
so adjusted from time to time.

B. Additional Rent. All monies other than Base Rent required to be paid by
Tenant hereunder, including, but not limited to, Tenant's Proportionate Share of
Operating Expenses, as specified in Paragraph 7 of this Lease, charges to be
paid by Tenant under Paragraph 15, the interest and late charge described in
Paragraphs 26.D. and E., and any monies spent by Landlord pursuant to Paragraph
30, shall be considered additional rent ("Additional Rent"). "Rent" shall mean
Base Rent and Additional Rent.

                             7. OPERATING EXPENSES

A. Operating Expenses. In addition to the Base Rent required to be paid
hereunder, Tenant shall pay as Additional Rent, Tenant's Proportionate Share of
the Building and/or Project (as applicable), as defined in the Basic Lease
Information, of Operating Expenses (defined below) in the manner set forth
below. Tenant shall pay the applicable Tenant's Proportionate Share of each such
Operating Expenses. Landlord and Tenant acknowledge that if the number of
buildings which constitute the Project increases or decreases, or if physical
changes are made to the Premises, Building or Project or the configuration of
any thereof, Landlord may at its discretion reasonably adjust Tenant's
Proportionate Share of the Building or Project to reflect the change. Landlord's
determination of Tenant's proportionate Share of the Building and of the Project
shall be conclusive so long as it is reasonably and consistently applied.
"Operating Expenses" shall mean all expenses and costs of every kind and nature
which Landlord shall pay or become obligated to pay, because of or in connection
with the ownership, management, maintenance, repair, preservation, replacement
and operation of the Building or Project and its supporting facilities and such
additional facilities now and in subsequent years as may be determined by
Landlord to be necessary or desirable to the Building and/or Project (as
determined in a reasonable manner) other than those expenses and costs which are
specifically attributable to Tenant or which are expressly made the financial
responsibility of Landlord or specific tenants of the Building or Project
pursuant to this Lease. Operating Expenses shall include, but are not limited
to, the following:

(1)      Taxes. All real property taxes and assessments, possessory interest
         taxes, sales taxes, personal property taxes, business or license taxes
         or fees, gross receipts taxes, service payments in lieu of such taxes
         or fees, annual or periodic license or use fees, excises, transit
         charges, and other impositions, general and special, ordinary and
         extraordinary, unforeseen as well as foreseen, of any kind (including
         fees

                                       7.
<PAGE>

"in-lieu" of any such tax or assessment) which are now or hereafter assessed,
levied, charged, confirmed, or imposed by any public authority upon the Building
or Project, its operations or the Rent (or any portion or component thereof), or
any tax, assessment or fee imposed in substitution, partially or totally, of any
of the above. Operating Expenses shall also include any taxes, assessments,
reassessments, or other fees or impositions with respect to the development,
leasing, management, maintenance, alteration, repair, use or occupancy by Tenant
of the Premises, Building or Project or any portion thereof, including, without
limitation, by or for Tenant, and all increases therein or reassessments thereof
whether the increases or reassessments result from increased rate and/or
valuation (whether upon a transfer of the Building or Project or any portion
thereof or any interest therein or for any other reason). Operating Expenses
shall not include inheritance or estate taxes imposed upon or assessed against
the interest of any person in the Project, or taxes computed upon the basis of
the net income of any owners of any interest in the Project. If it shall not be
lawful for Tenant to reimburse Landlord for all or any part of such taxes, the
monthly rental payable to Landlord under this Lease shall be revised to net
Landlord the same net rental after imposition of any such taxes by Landlord as
would have been payable to Landlord prior to the payment of any such taxes.

(2) Insurance. All insurance premiums and costs, including, but not limited to,
any deductible amounts, premiums and other costs of insurance incurred by
Landlord, including for the insurance coverage set forth in Paragraph 8.A.
herein.

(3) Common Area Maintenance.

     (a) Repairs, replacements, and general maintenance of and for the Building
and project and public and common areas and facilities of and comprising the
Building and Project, including, but not limited to, the roof and roof membrane,
elevators, mechanical rooms, alarm systems, pest extermination, landscaped
areas, parking and service areas, driveways, sidewalks, truck staging areas,
rail spur areas, fire sprinkler systems, sanitary and storm sewer lines, utility
services, heating/ventilation/air conditioning systems, electrical, mechanical
or other systems, telephone equipment and wiring servicing, plumbing, lighting,
and any other items or areas which affect the operation or appearance of the
Building or Project, which determination shall be at Landlord's discretion,
except for those items to the extent paid for by the proceeds of insurance; and
those items attributable solely or jointly to specific tenants of the Building
or Project.

     (b) Repairs, replacements, and general maintenance shall include the cost
of any improvements made to or assets acquired for the Project or Building that
in Landlord's discretion may reduce any other Operating Expenses, including
present or future repair work, are reasonably necessary for the health and
safety of the occupants of the Building or Project, or for the operation of the
Building systems, services and equipment, or are required to comply with any
Regulation, such costs or allocable portions thereof to be amortized over such
reasonable period as Landlord shall determine, together with interest of the
unamortized balance at the publicly announced "prime rate" charged by Wells
Fargo Bank, N.A. (San Francisco) or its successor at the time such improvements
or capital assets are constructed or acquired, plus two (2) percentage points,
or in the absence of such prime rate, then at the U.S. Treasury six-month market
note (or bond, if so designated) rate as published by any national financial
publication selected by Landlord, plus four (4) percentage points, but in no
event more than the maximum rate permitted by law, plus reasonable financing
charges.

     (c) Payment under or for any easement, license, permit, operating
agreement, declaration, restrictive covenant or instrument relating to the
Building or Project.

     (d) All expenses and rental related to services and costs of supplies,
materials and equipment used in operating, managing and maintaining the
Premises, Building and Project, the equipment therein and the adjacent
sidewalks, driveways, parking and service areas, including, without limitation,
expenses related to service agreements regarding security, fire and other alarm
systems, janitorial services to the extent not addressed in Paragraph 11 hereof,
window cleaning, elevator maintenance, Building exterior maintenance,
landscaping and expenses related to the administration, management and operation
of the Project, including without limitation salaries, wages and benefits and
management office rent.

     (e) The cost of supplying any services and utilities which benefit all or a
portion of the Premises, Building or Project to the extent not addressed in
Paragraph 15 hereof.

                                       8.
<PAGE>

     (f) Legal expenses and the cost of audits by certified public accountants;
provided, however, that legal expenses chargeable as Operating Expenses shall
not include the cost of negotiating leases, collecting rents, evicting tenants
nor shall it include costs incurred in legal proceedings with or against any
tenant or to enforce the provisions of any lease.

     (g) A management and accounting cost recovery fee equal to five percent
(5%) of the sum of the Project's revenues.

If the rentable area of the Building and/or Project is not fully occupied during
any fiscal year of the Term as determined by Landlord, an adjustment shall be
made in Landlord's discretion in computing the Operating Expenses for such year
so that Tenant pays an equitable portion of all variable items (e.g., utilities,
janitorial services and other component expenses that are affected by variations
in occupancy levels) of Operating Expenses, as reasonably determined by
Landlord; provided, however, that in no event shall Landlord be entitled to
collect in excess of one hundred percent (100%) of the total Operating Expenses
from all of the tenants in the Building or Project, as the case may be.

Operating Expenses shall not include the cost of providing tenant improvements
or other specific costs incurred for the account of, separately billed to and
paid by specific tenants of the Building or Project, the initial construction
cost of the Building, or debt service on any mortgage or deed of trust recorded
with respect to the Project other than pursuant to Paragraph 7.A.(3)(b) above.
Notwithstanding anything herein to the contrary, in any instance wherein
Landlord, in Landlord's sole discretion, deems Tenant to be responsible for any
amounts greater than Tenant's Proportionate Share, Landlord shall have the right
to allocate costs in any manner Landlord deems appropriate.

The above enumeration of services and facilities shall not be deemed to impose
an obligation of Landlord to make available or provide such services or
facilities except to the extent if any that Landlord has specifically agreed
elsewhere in this Lease to make the same available or provide the same. Without
limiting the generality of the foregoing, Tenant acknowledges and agrees that it
shall be responsible for providing adequate security for its use of the
Premises, the Building and the Project and that Landlord shall have no
obligation or liability with respect thereto, except to the extent if any that
Landlord has specifically agreed elsewhere in this Lease to provide the same.

         In addition, notwithstanding anything in the definition of Operating
         Expenses in this Lease to the contrary, Operating Expenses shall not
         include the following, except to the extent specifically provided:

         (i)      Repairs, alterations, additions, improvements or replacements
                  made to rectify or correct any defect in the design, materials
                  or workmanship of the Building or to comply with any
                  requirements of any governmental authority in effect as of the
                  Term Commencement Date other than corrections required under
                  the American with Disabilities Act that affect the Building or
                  its common areas.

         (ii)     Costs of capital improvements, replacements or equipment and
                  any depreciation or amortization expenses thereon, except to
                  the extent included in Operating Expenses in Paragraph 7.A of
                  this Lease;

         (v)      Costs, including, permit, license and inspection costs,
                  incurred with respect to the installation of tenant or other
                  occupant improvements made for tenants or other occupants in
                  the Building or the Project or incurred in renovating or
                  otherwise improving, decorating, painting or redecorating
                  vacant space for or the premises of other tenants or other
                  occupants of the Building;

         (vi)     Costs incurred to test, survey, cleanup, contain, abate,
                  remove or otherwise remedy Hazardous Materials (define in
                  Section 37.A) from the Premises, Building or Project unless
                  the Hazardous Materials were in or on the Premises, Building
                  or Project because of Tenant's gross negligence or intentional
                  acts.

B. Payment of Estimated Operating Expenses. "Estimated Operating Expenses" for
any particular year shall mean Landlord's estimate of the Operating Expenses for
such fiscal year made with respect to such fiscal year as hereinafter provided.
Landlord shall have the right from time to time to revise its fiscal year and
interim accounting periods so long as the periods as so revised are reconciled
with prior periods in a reasonable manner. During the last month of each fiscal
year during the Term, or as soon thereafter as practicable, Landlord shall give
Tenant written notice of the Estimated Operating Expenses for the ensuing fiscal
year. Tenant shall pay Tenant's Proportionate Share of the Estimated Operating
Expenses with installments of Base Rent for the fiscal year to which the
Estimated Operating Expenses applies in monthly installments on the first day of
each calendar month during such year, in advance. Such payment shall be
construed to be Additional Rent for all purposes hereunder. If at any time
during the course of the fiscal year, Landlord determines that Operating
Expenses are projected to vary from

                                       9.
<PAGE>

the then Estimated Operating Expenses by more than five percent (5%),
Landlord may, by written notice to Tenant, revise the Estimated Operating
Expenses for the balance of such fiscal year, and Tenant's monthly installments
for the remainder of such year shall be adjusted so that by the end of such
fiscal year Tenant has paid to Landlord Tenant's Proportionate Share of the
revised Estimated Operating Expenses for such year, such revised installment
amounts to be Additional Rent for all purposes hereunder.

C. Computation of Operating Expense Adjustment. "Operating Expense Adjustment"
shall mean the difference between Estimated Operating Expenses and actual
Operating Expenses for any fiscal year determined as hereinafter provided.
Within one hundred twenty (120) days after the end of each fiscal year, or as
soon thereafter as practicable, Landlord shall deliver to Tenant a statement of
actual Operating Expenses for the fiscal year just ended, accompanied by a
computation of Operating Expense Adjustment. If such statement shows that
Tenant's payment based upon Estimated Operating Expenses is less than Tenant's
Proportionate Share of Operating Expenses, then Tenant shall pay to Landlord the
difference within twenty (20) days after receipt of such statement, such payment
to constitute Additional Rent for all purposes hereunder. If such statement
shows that Tenant's payments of Estimated Operating Expenses exceed Tenant's
Proportionate Share of Operating Expenses, then (provided that Tenant is not in
default under this Lease) Landlord shall pay to Tenant the difference within
twenty (20) days after delivery of such statement to Tenant. If this Lease has
been terminated or the Term hereof has expired prior to the date of such
statement, then the Operating Expense Adjustment shall be paid by the
appropriate party within twenty (20) days after the date of delivery of the
statement. Should this Lease commence or terminate at any time other than the
first day of the fiscal year, Tenant's Proportionate Share of the Operating
Expense Adjustment shall be prorated based on a month of 30 days and the number
of calendar months during such fiscal year that this Lease is in effect.
Notwithstanding anything to the contrary contained in Paragraph 7.A or 7.B,
Landlord's failure to provide any notices or statements within the time periods
specified in those paragraphs shall in no way excuse Tenant from its obligation
to pay Tenant's Proportionate Share of Operating Expenses.

D. Net Lease. This shall be a triple net Lease and Base Rent shall be paid to
Landlord absolutely net of all costs and expenses, except as specifically
provided to the contrary in this Lease. The provisions for payment of Operating
Expenses and the Operating Expense Adjustment are intended to pass on to Tenant
and reimburse Landlord for all costs and expenses of the nature described in
Paragraph 7.A. incurred in connection with the ownership, management,
maintenance, repair, preservation, replacement and operation of the Building
and/or Project and its supporting facilities and such additional facilities now
and in subsequent years as may be determined by Landlord to be necessary or
desirable to the Building and/or Project.

E. Tenant Audit. If Tenant shall dispute the amount set forth in any statement
provided by Landlord under Paragraph 7.B. or 7.C. above, Tenant shall have the
right, not later than twenty (20) days following receipt of such statement and
upon the condition that Tenant shall first deposit with Landlord the full amount
in dispute, to cause Landlord's books and records with respect to Operating
Expenses for such fiscal year to be audited by certified public accountants
selected by Tenant and subject to Landlord's reasonable right of approval. The
Operating Expense Adjustment shall be appropriately adjusted of the basis of
such audit. If such audit discloses a liability for a refund in excess of ten
percent (10%) of Tenant's Proportionate Share of the Operating Expenses
previously reported, the cost of such audit shall be borne by Landlord;
otherwise the cost of such audit shall be paid by Tenant. If Tenant shall not
request an audit in accordance with the provisions of this Paragraph 7.E. within
twenty (20) days after receipt of Landlord's statement provided pursuant to
Paragraph 7.B. or 7.C., such statement shall be final and binding for all
purposes hereof. Tenant acknowledges and agrees that any information revealed in
the above described audit may contain proprietary and sensitive information and
that significant damage could result to Landlord if such information were
disclosed to any party other than Tenant's auditors. Tenant shall not in any
manner disclose, provide or make available any information revealed by the audit
to my person or entity without Landlord's prior written consent, which consent
may be withheld by Landlord in its sole and absolute discretion. The information
disclosed by the audit will be used by Tenant solely for the purpose of
evaluating Landlord's books and records in connection with this Paragraph 7.E.

                        8. INSURANCE AND INDEMNIFICATION

A. 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"

                                      10.
<PAGE>

         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 of 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.

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

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

         (2) Liability Insurance. Commercial General Liability insurance
         covering bodily injury and property damage liability occurring in or
         about the Premises or arising out of the use and occupancy of the
         Premises and the Project, and any part of either, and any areas
         adjacent thereto, and the business operated by Tenant or by any other
         occupant or the Premises. Such insurance shall include contractual
         liability coverage insuring all of Tenant's indemnity obligations under
         this Lease. Such coverage shall have a minimum combined single limit of
         liability of at least Two Million Dollars ($2,000,000.00), and a
         minimum general aggregate limit of Three Million Dollars
         ($3,000,000.00), with an "Additional Insured-Managers or Lessors of
         Premises Endorsement" and the "Amendment of the Pollution Exclusion
         Endorsement." All such policies shall be written to apply to all bodily
         injury (including death), property damage or loss, personal and
         advertising injury and other covered loss, however occasioned,
         occurring during the policy term, shall be endorsed to add Landlord and
         any party holding all interest to which this Lease may be subordinated
         as an additional insured, and shall provide that such coverage shall be
         "primary" and non-contributing with any insurance maintained by
         Landlord, which shall be excess insurance only. Such coverage shall
         also contain endorsements including employees as additional insureds if
         not covered by Tenant's Commercial General Liability Insurance. All
         such insurance shall provide for the severability of interests of
         insureds; and shall be written on an "occurrence" basis, which shall
         afford coverage for all claims based on acts, omissions, injury and
         damage, which occurred or arose (or the onset of which occurred or
         arose) in whole or in part during the policy period.

         (3) Workers' Compensation and Employers' Liability Insurance. Workers'
         Compensation Insurance as required by any Regulation, and Employers'
         Liability Insurance in amounts not less than One Million Dollars
         ($1,000,000) each accident for bodily injury by accident; One Million
         Dollars ($1,000,000) policy limit for bodily injury by disease; and One
         Million Dollars ($1,000,000) 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 coverages described in this
         Paragraph 8.B shall be endorsed to (i) provide Landlord with thirty
         (30) days' notice of cancellation or change in terms; and (ii) waive
         all rights of subrogation by the insurance carrier against Landlord. If
         at any time during the Term the amount or coverage of insurance which
         Tenant is required to carry under this Paragraph 8.B is, in

                                      11.
<PAGE>

         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 Paragraph 8.B. All insurance policies required to
         be carried by Tenant under this Lease shall be written by companies
         rated A X or better in "Best's Insurance Guide" and authorized to do
         business in the State of California. In any event deductible amounts
         under all insurance policies required to be carried by Tenant under
         this Lease shall not exceed Five Thousand Dollars ($5,000.00) 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 hereunder, procure the same for the
         account of Tenant, and the cost thereof shall be paid to Landlord as
         Additional Rent.

C. Indemnification. Tenant shall indemnify, defend by counsel reasonably
acceptable to Landlord, protect and hold Landlord, Spieker Properties, Inc., and
each of their respective directors, shareholders, partners, lenders, members,
managers, contractors, affiliates, and employees (collectively, "Landlord
Indemnities") harmless from and against any and all claims, liabilities, losses,
costs, loss of rents, liens, damages, injuries or expenses, including reasonable
attorneys' and consultants' fees and court costs, demands, causes of action, or
judgments, directly or indirectly arising out of or related to: (1) claims of
injury to or death of persons or damage to property or business loss occurring
or resulting directly or indirectly from the use or occupancy of the Premises,
Building or Project by Tenant or Tenant's Parties, or from activities or
failures to act of Tenant or Tenant's Parties; (2) claims arising from work or
labor performed, or for materials or supplies furnished to or at the request of
Tenant in connection with performance of any work done for the account of Tenant
within the Premises or Project; (3) claims arising from any breach or default on
the part of Tenant in the performance of any covenant contained in this Lease;
and (4) claims arising from the negligence or intentional acts or omissions of
Tenant or Tenant's Parties. The foregoing indemnity by Tenant shall not be
applicable to claims to the extent arising from the gross negligence or willful
misconduct of Landlord. Landlord shall not be liable to Tenant and Tenant hereby
waives all claims against Landlord for any injury to or death of or damage to
any person or property or business loss in or about the Premises, Building or
Project by or from any cause whatsoever (other than Landlord's gross negligence
or willful misconduct) and, without limiting the generality of the foregoing,
whether caused by water leakage of any character from the roof, walls, basement
or other portion of the Premises, Building or Project, or caused by gas, fire,
oil or electricity in, on or about the Premises, Building or Project, acts of
God or of third parties, or any matter outside of the reasonable control of
Landlord. The provisions of this Paragraph shall survive the expiration or
earlier termination of this Lease.

         Landlord shall indemnify, defend by counsel reasonably acceptable to
         Tenant, protect and hold Tenant harmless from and against any and all
         claims, liabilities, losses, costs, damages, injuries or expenses,
         including reasonable attorneys' and consultants' fees and court costs,
         demands, causes of action, or judgments arising out of or relating to
         the gross negligence or willful misconduct of Landlord or Landlord's
         agents, employees or invitees. Notwithstanding the foregoing or
         anything to the contrary contained in this Lease, Landlord shall in no
         event be liable to Tenant and Tenant hereby waives all claims against
         Landlord for any injury or damage to any person or property in or about
         the Premises, Building or Project, including without limitation the
         common areas, whether caused by theft, fire, rain or water leakage of
         any character from the roof, walls, plumbing, sprinklers, pipes,
         basement or any other portion of the Premises, Building or Project, or
         caused by gas, fire, oil or electricity in, on or about the Premises,
         Building or Project, or from any other systems except in each case to
         the extent caused by the gross negligence or willful misconduct of
         Landlord, or by acts of God (including without limitation flood or
         earthquake), acts of a public enemy, riot, strike, insurrection, war,
         court order, requisition or order of governmental body or authority or
         from any other cause whatsoever, or for any damage or inconvenience
         which may arise through repair, subject to and except as expressly
         otherwise provided in Paragraph 9 or 10 of this Lease except to the
         extent caused directly by the gross negligence or willful misconduct of
         Landlord. In addition, Landlord shall in no event be liable for (i)
         injury to Tenant's business or any loss of income or profit therefrom
         or from consequential damages, or (ii) sums up to the amount of
         insurance proceeds received by Tenant. The foregoing indemnity by
         Landlord shall not be applicable to claims to the extent arising from
         the negligence or willful misconduct of Tenant or Tenant's Parties. The
         foregoing indemnity by Landlord shall survive the expiration or earlier
         termination of this Lease.

                                      12.
<PAGE>

                            9. 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 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. LANDLORD'S REPAIRS AND MAINTENANCE

         Landlord shall maintain in good repair, reasonable wear and tear
excepted, the structural soundness of the roof, foundations, and exterior walls
of the Building. The term "exterior walls" as used herein shall not include
windows, glass or plate glass, doors, dock bumpers or dock plates, special store
fronts or office entries. Any damage caused by or repairs necessitated by any
negligence or act of Tenant or Tenant's Parties may be repaired by Landlord at
Landlord's option and Tenant's expense. Tenant shall immediately give Landlord
written notice of any defect or need of repairs in such components of the
Building for which Landlord is responsible, after which Landlord shall have a
reasonable opportunity and the right to enter the Premises at all reasonable
times to repair same. Landlord's liability with respect to any defects, repairs,
or maintenance for which Landlord is responsible under any of the provisions of
this Lease shall be limited to the cost of such repairs or maintenance, and
there shall be no abatement of rent and no liability of Landlord by reason of
any injury to or interference with Tenant's business arising from the making of
repairs, alterations or improvements in or to any portion of the Premises, the
Building or the Project or to fixtures, appurtenances or equipment in the
Building, except as provided in Paragraph 24. By taking possession of the
Premises, Tenant accepts them "as is," as being in good order, condition and
repair and the condition in which Landlord is obligated to deliver them and
suitable for the Permitted Use and Tenant's intended operations in the Premises,
whether or not any notice of acceptance is given.

                      11. TENANT'S REPAIRS AND MAINTENANCE

         Tenant shall at all times during the Term at Tenant's expense maintain
all parts or the Premises and such portions of the Building as are within the
exclusive control of Tenant in it first-class, good, clean and secure condition
and promptly make all necessary repairs and replacements, as determined by
Landlord, including but not limited to, all windows, glass, doors, walls,
including demising walls, and wall finishes, floors and floor covering, heating,
ventilating and air conditioning systems, ceiling insulation, truck doors,
hardware, dock bumpers, dock plates and levelers, plumbing work and fixtures,
downspouts, entries, skylights, smoke hatches, roof vents, electrical and
lighting systems, and fire sprinklers, with materials and workmanship of the
same character, kind and quality as the original. Tenant shall at Tenant's
expense also perform regular removal of trash and debris. If Tenant uses rail
and if required by the railroad company, Tenant agrees to sign a joint
maintenance agreement governing the use of the rail spur, if any. Tenant shall,
at Tenant's own expense, enter into a regularly scheduled preventative
maintenance/service contract with a maintenance contractor for servicing all hot
water, heating and air conditioning systems and equipment within or serving the
Premises. The maintenance contractor and the contract must be approved by
Landlord. The service contract must include all services suggested by the
equipment manufacturer within the operation/maintenance manual and must become
effective and a copy thereof delivered to Landlord within thirty (30) days after
the Term Commencement Date. Landlord may, upon notice to Tenant, enter into such
a service contract of behalf of Tenant or perform the work and in either case
charge Tenant the cost thereof along with a reasonable amount for Landlord's
overhead. Notwithstanding anything to the contrary contained herein, Tenant
shall, at its expense, promptly repair any damage to the Premises or the
Building or Project resulting from or caused by any negligence or act of Tenant
or Tenant's Parties. Nothing herein shall expressly or by implication render
Tenant Landlord's agent or contractor to effect any repairs or maintenance
required of Tenant under this Paragraph 11, as to all of which Tenant shall be
solely responsible.

                                12. ALTERATIONS

A. Tenant shall not make, or allow to be made, any alterations, physical
additions, improvements or partitions, including without limitation the
attachment of any fixtures or equipment, in, about or to the Premises
("Alterations") without obtaining the prior written consent of Landlord, which
consent shall not be unreasonably withheld with respect to proposed Alterations
which: (a) comply with all applicable Regulations; (b) are, in Landlord's
opinion, compatible with the Building or the Project and its mechanical,
plumbing, electrical, heating/ventilation/air conditioning systems, and will not
cause the Building or Project or such systems to be required to be modified to
comply with any Regulations (including, without limitation, the Americans With

                                      13.
<PAGE>

Disabilities Act); and (c) will not interfere with the use and occupancy of any
other portion of the Building or Project by any other tenant or its invitees.
Specifically, but without limiting the generality of the foregoing, Landlord
shall have the right of written consent for all plans and specifications for the
proposed Alterations, construction means and methods, all appropriate permits
and licenses, any contractor or subcontractor to be employed on the work of
Alterations, and the time for performance of such work, and may impose rules and
regulations for contractors and subcontractors performing such work. Tenant
shall also supply to Landlord any documents and information reasonably requested
by Landlord in connection with Landlord's consideration of a request for
approval hereunder. Notwithstanding the foregoing, Tenant shall have the right,
without consent of, but upon at least ten (10) business days' prior written
notice (as provided under Paragraph 12.B below) to, Landlord, to make
non-structural, Alterations within the interior of the Premises (and which are
not visible from the outside of the Premises), which do not impair the value of
the Building, and which cost, in the aggregate, less than Fifteen Thousand
Dollars ($15,000.00) in any twelve (12) month period during the Term of this
Lease, provided that such Alterations shall nevertheless be subject to all of
the remaining requirements of this Paragraph 12, including without limitation ,
subparagraphs (a) through (c) above, other than the requirement of Landlord's
prior consent. In addition all Alterations shall be performed by duly licensed
contractors or subcontractors reasonably acceptable to Landlord, proof of
insurance shall be submitted to Landlord as required under Paragraph 8.B above,
and Landlord reserves the right to impose reasonable rules and regulations for
contractors and subcontractors. Tenant shall, if requested by Landlord, promptly
furnish Landlord with complete as-built plans and specifications for any
Alterations performed by Tenant to the Premises, at Tenant's sole cost and
expense. Tenant shall cause all Alterations to be accomplished in a first-class,
good and workmanlike manner, and to comply with all applicable Regulations and
Paragraph 27 hereof. Tenant shall at Tenant's sole expense, perform any
additional work required under applicable Regulations due to the Alterations
hereunder. No review or consent by Landlord of or to any proposed Alteration or
additional work shall constitute a waiver of Tenant's obligations under this
Paragraph 12. Tenant shall reimburse Landlord for all costs which Landlord may
incur in connection with granting approval to Tenant for any such Alterations,
including any costs or expenses which Landlord may incur in electing to have
outside architects and engineers review said plans and specifications. All such
Alterations shall remain the property of Tenant until the expiration or earlier
termination of this Lease, at which time they shall be and become the property
of Landlord; provided, however, that Landlord may, at Landlord's option, upon
notifying Tenant at the time of granting permission for Alterations require that
Tenant, at Tenant's expense, remove any or all Alterations made by Tenant and
restore the Premises by the expiration or earlier termination of this Lease, to
their condition existing prior to the construction of any such Alterations. All
such removals and restoration shall be accomplished in a first-class and good
and workmanlike manner so as not to cause any damage to the Premises or Project
whatsoever. If Tenant fails to remove such Alterations or Tenant's trade
fixtures or furniture or other personal property, Landlord may keep and use them
or remove any of them and cause them to be stored or sold in accordance with
applicable law, at Tenant's sole expense. In addition to and wholly apart from
Tenant's obligation to pay Tenant's proportionate Share of Operating Expenses,
Tenant shall be responsible for and shall pay prior to delinquency any taxes or
governmental service fees, possessory interest taxes, fees or charges in lieu of
any such taxes, capital levies, or other charges imposed upon, levied with
respect to or assessed against its fixtures or personal property, on the value
of Alterations within the Premises, and on Tenant's interest pursuant to this
Lease, or any increase in any of the foregoing based on such Alterations. To the
extent that any such taxes are not separately assessed or billed to Tenant,
Tenant shall pay the amount thereof as invoiced to Tenant by Landlord.

Notwithstanding the foregoing, at Landlord's option (but without obligation),
all or any portion of the Alterations shall be performed by Landlord for
Tenant's account and Tenant shall pay Landlord's estimate of the cost thereof
(including a reasonable charge for Landlord's overhead and profit) prior to
commencement of the work. In addition, at Landlord's election and
notwithstanding the foregoing, however, Tenant shall pay to Landlord the cost of
removing any such Alterations and restoring the Premises to their original
condition such cost to include a reasonable charge for Landlord's overhead and
profit as provided above, and such amount may be deducted from the Security
Deposit or any other sums or amounts held by Landlord under this Lease.

B. In compliance with Paragraph 27 hereof, at least ten (10) business 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.

                                      14.
<PAGE>

                                   13. SIGNS

Tenant shall not place, install, affix, paint or maintain any signs, notices,
graphics or banners whatsoever or any window decor which is visible in or from
public view or corridors, the common areas or the exterior of the Premises or
the Building, in or on any exterior window or window fronting upon any common
areas or service area or upon any truck doors or man doors without Landlord's
prior written approval which Landlord shall have the right to withhold in its
absolute and sole discretion; provided that Tenant's name shall be included in
any Building-standard door and directory signage, if any, in accordance with
Landlord's Building signage program, including without limitation, payment by
Tenant of any fee charged by Landlord for maintaining such signage, which fee
shall constitute Additional Rent hereunder. Any installation of signs, notices,
graphics or banners on or about the Premises or Project approved by Landlord
shall be subject to any Regulations and to any other requirements imposed by
Landlord. Tenant shall remove all such signs or graphics by the expiration or
any earlier termination of this Lease. Such installations and removals shall be
made in such manner as to avoid injury to or defacement of the Premises,
Building, or Project and any other improvements contained therein, and Tenant
shall repair any injury or defacement including without limitation discoloration
caused by such installation or removal.

                         14. INSPECTION/POSTING NOTICES

After twenty-four hour advance notice, except in emergencies where no such
notice shall be required, Landlord and Landlord's agents and representatives,
shall have the right to enter the Premises to inspect the same, to clean, to
perform such work as may be permitted or required hereunder, to make repairs,
improvements or alterations to the Premises, Building or Project or to other
tenant spaces therein, to deal with emergencies, to post such notices as may be
permitted or required by law to prevent the perfection of liens against
Landlord's interest in the Project or to exhibit the Premises to prospective
tenants, purchasers, encumbrancers or to others, or for any other purpose as
Landlord may deem necessary or desirable; provided, however, that Landlord shall
use reasonable efforts not to unreasonably interfere with Tenant's business
operations. Tenant shall not be entitled to any abatement of Rent by reason of
the exercise of any such right of entry. Tenant waives any claim for damages for
any injury or inconvenience to or interference with Tenant's business, any loss
of occupancy or quiet enjoyment of the Premises, and any other loss occasioned
thereby. Landlord shall at all times have and retain a key with which to unlock
all the doors in, upon and about the Premises, excluding Tenant's vaults and
safes or special security areas (designated in advance), and landlord shall have
the right to use any and all means which Landlord may deem necessary or proper
to open said doors in an emergency, in order to obtain entry to any portion of
the Premises, and any entry to the Premises or portions thereof obtained by
Landlord by any of said means, or otherwise, shall not be construed to be a
forcible or unlawful entry into, or detainer of, the Premises, or an eviction,
actual or constructive, of Tenant from the Premises or any portions thereof. At
any time within six (6) months prior to the expiration of the Term or following
any earlier termination of this Lease or agreement to terminate this Lease.
Landlord shall have the right to erect on the Premises, Building and/or Project
a suitable sign indicating that the Premises are available for lease.

                           15. SERVICES AND UTILITIES

A. Tenant shall (where practicable) contract for and pay directly when due, for
all water, gas, heat, air conditioning, light, power, telephone, sewer,
sprinkler charges, cleaning, waste disposal and other utilities and services
used on or from the Premises, together with any taxes, penalties, surcharges or
the like pertaining thereto, and maintenance charges for utilities and shall
furnish all electric light bulbs, ballasts and tubes. If any such services are
not separately billed or metered to Tenant, Tenant shall pay an equitable
proportion, as determined in good faith by Landlord, of all charges billed or
metered with other premises. All sums payable under this Paragraph 15 shall
constitute Additional Rent hereunder.

B. Tenant acknowledges that Tenant has inspected and accepts the water,
electricity, heat and air conditioning and other utilities and services being
supplied or furnished to the Premises as of the date Tenant takes possession of
the Premises, if any, as being sufficient in their present condition, "as is,"
for the Permitted Use, and for Tenant's intended operations in the Premises.
Tenant agrees to keep and cause to be kept closed all window covering when
necessary because of the sun's position, and Tenant also agrees at all times to
cooperate fully with Landlord and to abide by all of the regulations and
requirements which Landlord may prescribe for the proper functioning and
protection of electrical, heating, ventilating and air conditioning systems.
Wherever heat-generating machines, excess lighting or equipment are used in the
Premises which affect the temperature otherwise maintained by the air
conditioning system, Landlord reserves

                                      15.
<PAGE>

the right to install supplementary air conditioning units in the Premises and
the cost thereof, including the cost of installation and the cost of operation
and maintenance thereof, shall be paid by Tenant to Landlord upon demand by
Landlord.

C. Tenant shall not without written consent of Landlord use any apparatus,
equipment or device in the Premises, including without limitation, computers,
electronic data processing machines, copying machines, and other machines, using
excess lighting or using electric current, water, or any other resource in
excess of or which will in any way increase the amount of electricity, water, or
any other resource being furnished or supplied for the use of the Premises for
reasonable and normal office use, in each case as of the date Tenant takes
possession of the Premises and as determined by Landlord, or which will require
additions or alterations to or interfere with the Building power distribution
systems; nor connect with electric current, except through existing electrical
outlets in the Premises or water pipes, any apparatus, equipment or device for
the purpose of using electrical current, water, or any other resource. If Tenant
shall require water or electric current or any other resource in excess of that
being furnished or supplied for the use of the Premises as of the date Tenant
takes possession of the Premises, if any, as determined by Landlord, Tenant
shall first procure the written consent of Landlord which Landlord may refuse,
to the use thereof, and Landlord may cause a special meter to be installed in
the Premises so as to measure the amount of water, electric current or other
resource consumed for any such other use. Tenant shall pay directly to Landlord
upon demand as an addition to and separate from payment or Operating Expenses
the cost of all such additional resources, energy, utility service and meters
(and of installation, maintenance and repair thereof and of any additional
circuits or other equipment necessary to furnish such additional resources,
energy, utility or service). Landlord may add to the separate or metered charge
a recovery of additional expense incurred in keeping account of the excess
water, electric current or other resource so consumed. Landlord shall in no case
be liable for any damages directly or indirectly resulting from nor shall the
Rent or any monies owed Landlord under this Lease herein reserved be abated by
reason of: (a) the installation, use or interruption of use of any equipment
used in connection with the furnishing of any such utilities or services, or any
change in the character or means of supplying or providing any such utilities or
services or any supplier thereof, (b) the failure to furnish or delay in
furnishing any such utilities or services when such failure or delay is caused
by acts of God or the elements, labor disturbances or any character, or
otherwise, or because of any interruption of service due to Tenant's use of
water, electric current or other resource in excess of that being supplied or
furnished for the use of the Premises as of the date Tenant takes possession of
the Premises or (c) the inadequacy, limitation, curtailment, rationing or
restriction on use of water, electricity, gas or any other form of energy or any
other service or utility whatsoever serving the Premises or Project otherwise;
or (d) the partial or total unavailability of any such utilities or services to
the Premises or the Building or the diminution in the quantity or quantity
thereof, whether by Regulation or otherwise; or (e) any interruption in Tenant's
business operations as a result of any such occurrence; nor shall any such
occurrence constitute an actual or constructive eviction of Tenant or a breach
of an implied warranty by Landlord. Landlord shall further have no obligation to
protect or preserve any apparatus, equipment or device installed by Tenant in
the Premises, including without limitation by providing additional or
after-hours heating or air conditioning. Landlord shall be entitled to cooperate
voluntarily and in a reasonable manner with the efforts of national, state or
local governmental agencies or utility suppliers in reducing energy or other
resource consumption. The obligation to make services available hereunder shall
be subject to the limitations of any such voluntary, reasonable program. In
addition, Landlord reserves the right to change the supplier or provider of any,
such utility or service from time to time. Landlord may, but shall not be
obligated to, upon notice to Tenant, contract with or otherwise obtain any
electrical or other such service for or with respect to the Premises or Tenant's
operations therein from any supplier or provider of any such service. Tenant
shall cooperate with Landlord and any supplier or provider of such services
designated by Landlord from time to time to facilitate the delivery of such
services to Tenant at the Premises and to the Building and Project, including
without limitation allowing Landlord and Landlord's suppliers or providers, and
their respective agents and contractors, reasonable access to the Premises for
the purpose of installing, maintaining, repairing, replacing or upgrading such
service or any equipment or machinery associated therewith.

                               16. SUBORDINATION

Without the necessity of any additional document being executed by Tenant for
the purpose of effecting a subordination, this Lease shall be and is hereby
declared to be subject and subordinate at all times to: (a) all ground leases or
underlying leases which may now exist or hereafter be executed affecting the
Premises and/or the land upon which the Premises and Project are situated, or
both; and (b) any mortgage or deed of trust which may now exist or be placed
upon the Building, the Project and/or the land upon which the Premises or the
Project are situated, or said ground leases or underlying leases, or Landlord's
interest or estate in any of said items which is specified as security.
Notwithstanding the foregoing, Landlord shall have the right to subordinate or
cause to be subordinated any such ground leases or underlying leases or any such
liens to this Lease. If any ground lease or underlying lease terminates for any
reason or any mortgage or deed of trust is foreclosed or a conveyance in lieu of
foreclosure is

                                      16.
<PAGE>

made for any reason, Tenant shall, notwithstanding any subordination, attorn to
and become the Tenant of the successor in interest to Landlord provided that
Tenant shall not be disturbed in its possession under this Lease by such
successor in interest so long as Tenant is not in default under this Lease.
Within ten (10) days after request by Landlord, Tenant shall execute and deliver
any additional documents evidencing Tenant's attornment or the subordination of
this Lease with respect to any such ground leases or underlying leases or any
such mortgage or deed of trust, in the form requested by Landlord or by any
ground landlord, mortgagee, or beneficiary under a deed of trust, subject to
such nondisturbance requirement. If requested in writing by Tenant, Landlord
shall use commercially reasonable efforts to obtain a subordination,
nondisturbance and attornment agreement for the benefit of Tenant reflecting the
foregoing from any ground landlord, mortgagee or beneficiary, at Tenant's
expense, subject to such other terms and conditions as the ground landlord,
mortgagee or beneficiary may require.

                            17. FINANCIAL STATEMENTS

         At the request of Landlord from time to time, Tenant shall provide to
Landlord Tenant's and any guarantor's current Financial statements or other
information discussing financial worth of Tenant and any guarantor, which
Landlord shall use solely for purposes of this Lease and in connection with the
ownership, management, financing and disposition of the Project.

                            18. ESTOPPEL CERTIFICATE

         Tenant agrees from time to time, within ten (10) days after request of
Landlord, to deliver to Landlord, or Landlord's designee, an estoppel
certificate stating that this Lease is in full force and effect, that this Lease
has not been modified (or stating all modifications, written or oral, to this
Lease), the date to which Rent has been paid, the unexpired portion of this
Lease, that there are no current defaults by Landlord or Tenant under this Lease
(or specifying any such defaults), that the leasehold estate granted by this
Lease is the sole interest of Tenant in the Premises and/or the land at which
the Premises are situated, and such other matters pertaining to this Lease as
may be reasonably requested by Landlord or any mortgagee, beneficiary, purchaser
or prospective purchaser of the Building or Project or any interest therein.
Failure by Tenant to execute and deliver such certificate shall constitute an
acceptance of the Premises and acknowledgment by Tenant that the statements
included are true and correct without exception. Tenant agrees that if Tenant
fails to execute and deliver such certificate within such ten (10) day period,
Landlord may execute and deliver such certificate on Tenant's behalf and that
such certificate shall be binding on Tenant. Landlord and Tenant intend that any
statement delivered pursuant to this Paragraph may be relied upon by any
mortgagee, beneficiary, purchaser or prospective purchaser of the Building or
Project or any interest therein. The Parties agree that Tenant's obligation to
furnish such estoppel certificates in a timely fashion is a material inducement
for Landlord's execution of, this Lease, and shall be an event of default
(without any cure period that might be provided under Paragraph 26.A(3) of this
Lease) if Tenant fails to fully comply or makes any material misstatement in any
such certificate.

                              19. SECURITY DEPOSIT

Tenant agrees to deposit with Landlord upon execution of this Lease, a security
deposit as stated in the Basic Lease Information (the "Security Deposit"), which
sum shall be held and owned by landlord, without obligation to pay interest, as
security for the performance of Tenant's covenants and obligations under this
Lease. The Security Deposit is not an advance rental deposit or a measure of
damages incurred by Landlord in case of Tenant's default. Upon the occurrence of
any event of default by Tenant, Landlord may from time to time, without
prejudice to any other remedy provided herein or by law, use such fund as a
credit to the extent necessary to credit against any arrears of Rent or other
payments due to landlord hereunder, and any other damage, injury, expense or
liability caused by such event of default, and Tenant shall pay to Landlord, on
demand, the amount so applied in order to restore the Security Deposit to its
original amount. Although the Security Deposit shall be deemed the property of
Landlord, any remaining balance of such deposit shall be returned by Landlord to
Tenant at such time within thirty (30) days after termination of this Lease that
all of Tenant's obligations under this Lease have been fulfilled, reduced by
such amounts as may be required by Landlord to remedy defaults on the part of
Tenant in the payment of Rent or other obligations of Tenant under this Lease,
to repair damage to the Premises, Building or Project caused by Tenant or any
Tenant's Parties and to clean the Premises. Landlord may use and commingle the
Security Deposit with other funds of Landlord. 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.

                                      17.
<PAGE>

                      20. LIMITATION OF TENANT'S REMEDIES

The obligations and liability of Landlord to Tenant for any default by Landlord
under the terms of this Lease are not personal obligations of Landlord or of the
individual or other partners of Landlord or its or their partners, directors,
officers, or shareholders, and Tenant agrees to look solely to Landlord's
interest in the Project for the recovery of any amount from Landlord, and shall
not look to other assets of Landlord nor seek recourse against the assets of the
individual or other partners of Landlord or its or their partners, directors,
officers or shareholders. Any lien obtained to enforce any such judgment and any
levy of execution thereon shall be subject and subordinate to any lien, mortgage
or deed or trust of the Project. Under no circumstances shall Tenant have the
right to offset against or recoup Rent or other payments due and to become due
to Landlord hereunder except as expressly provided in this Lease, which Rent
orand other payments shall be absolutely due and payable hereunder in accordance
with the terms hereof. 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 or otherwise,
notwithstanding anything to the contrary contained in this Lease.

                         21. ASSIGNMENT AND SUBLETTING

A.          (1) General.  This Lease has been negotiated to be and is granted
         as an accommodation to Tenant. Accordingly, this Lease is personal to
         Tenant, and Tenant's rights granted hereunder do not include the right
         to assign this Lease or sublease the Premises, or to receive any
         excess, either in installments or lump sum, over the Rent which is
         expressly reserved by Landlord as hereinafter provided, except as
         otherwise expressly hereinafter provided. Tenant shall not assign or
         pledge this Lease or sublet the Premises or any part thereof, whether
         voluntarily or by operation of law, or permit the use or occupancy of
         the Premises of any part thereof by anyone other than Tenant, or suffer
         or permit any such assignment, pledge, subleasing or occupancy, without
         Landlord's prior written consent except as provided herein. If Tenant
         desires to assign this Lease or sublet any or all of the Premises,
         Tenant shall give Landlord written notice (the "Transfer Notice") at
         least sixty (60) days prior to the anticipated effective date of the
         proposed assignment or sublease, which shall contain all of the
         information reasonably requested by Landlord to address Landlord's
         decision criteria specified hereinafter. Landlord shall then have a
         period of thirty (30) days following receipt of the Transfer Notice to
         notify Tenant in writing that Landlord elects either: (i) to terminate
         this Lease as to the space so affected as of the date so requested by
         Tenant: or (ii) to consent to the proposed assignment or sublease,
         subject, however, to Landlord's prior written consent of the proposed
         assignee or subtenant and of any related documents or agreements
         associated with the assignment or sublease. If Landlord should fail to
         notify Tenant in writing of such election within said period, Landlord
         shall be deemed to have waived option (i) above, but written consent by
         Landlord of the proposed assignee or subtenant shall still be required.
         If Landlord does not exercise option (i) above, Landlord's consent to a
         proposed assignment or sublease shall not be unreasonably withheld.
         Consent to any assignment or subletting shall not constitute consent to
         any subsequent transaction to which this Paragraph 21 applies.

         (2)   Conditions of Landlord's Consent. Without limiting the other
         instances in which it may be reasonable for Landlord to withhold
         Landlord's consent to an assignment or subletting, Landlord and Tenant
         acknowledge that it shall be reasonable for Landlord to withhold
         Landlord's consent in the following instances: if the proposed assignee
         does not agree to be bound by and assume the obligations of Tenant
         under this Lease in form and substance satisfactory to Landlord; the
         use of the Premises by such proposed assignee or subtenant would not be
         a Permitted Use or would violate any exclusivity or other arrangement
         which Landlord has with any other tenant or occupant or any Regulation
         or would increase the Occupancy Density or Parking Density of the
         Building or Project, or would otherwise result in an undesirable tenant
         mix for the Project as determined by Landlord; the proposed assignee or
         subtenant is not of sound financial condition as determined by Landlord
         in Landlord's sole discretion; the proposed assignee or subtenant is a
         governmental agency; the proposed assignee or subtenant does not have a
         good reputation as a Tenant of property or a good business reputation;
         the proposed assignee or subtenant is a person with whom Landlord is
         negotiating to lease space in the Project or is a present tenant of the
         Project; the assignment or subletting would entail any Alterations
         which would lessen the value of the leasehold improvements in the
         Premises or use of any Hazardous Materials or other noxious use or use
         which may disturb other tenants of the Project; or Tenant is in default
         or any obligation of Tenant under this Lease, Tenant has defaulted
         under this Lease on three (3) or more occasions during any twelve (12)
         months preceding the date that Tenant shall request consent. Failure by
         or refusal of Landlord to consent to a proposed assignee or subtenant
         shall not cause a termination of this Lease. Upon a termination under
         Paragraph 21.A.(1)(i), Landlord may lease the Premises to any party,
         including parties with whom Tenant has negotiated an assignment or
         sublease, without incurring any liability to Tenant. At the option of

                                      18.
<PAGE>

         Landlord, a surrender and termination of this Lease shall operate as an
         assignment to Landlord of some or all subleases or subtenancies.
         Landlord shall exercise this option by giving notice of that assignment
         to such subtenants on or before the effective date of the surrender and
         termination. In connection with each request for assignment or
         subletting, Tenant shall pay to Landlord Landlord's standard fee for
         approving such requests, as well as all costs incurred by Landlord or
         any mortgagee or ground lessor in approving each such request and
         effecting any such transfer, including, without limitation, reasonable
         attorneys' fees.

         (3)    Permitted Transfers. An "Affiliate" means any entity that (i)
         controls, is controlled by, or is under common control with Tenant,
         (ii) results from the transfer of all or substantially all of Tenant's
         assets or stock, or (iii) results from the merger or consolidation of
         Tenant with another entity. "Control" means the direct or indirect
         ownership of more than fifty percent (50%) of any voting securities of
         an entity or possession of the right to vote more than fifty percent
         (50%) of the voting interest in the ordinary direction of the entity's
         affairs. Notwithstanding anything to the contrary contained in this
         Lease, Landlord's consent is not required for and Landlord's recapture
         rights shall not apply to any assignment of this Lease or sublease of
         all or a portion of the Premises to an Affiliate so long as the
         following conditions are met: (a) at least ten (10) business days
         before any such assignment or sublease, Landlord receives written
         notice of such assignment or sublease (as well as any documents or
         information reasonably requested by Landlord regarding the proposed
         intended transfer and the transferee); (b) Tenant is not then in
         default under this Lease; (c) if the transfer is an assignment or any
         other transfer to an Affiliate other than a sublease, the intended
         assignee assumes in writing all of Tenant's obligations under this
         Lease relating to the Premises in form satisfactory to Landlord or, if
         the transfer is a sublease, the intended subleasee accepts the
         subblease in form satisfactory to Landlord; (d) the intended transferee
         has a tangible net worth, as evidenced by financial statements
         delivered to Landlord and certified by an independent certified public
         accountant in accordance with generally accepted accounting principles
         that are consistently applied, at least equal to or greater than
         Tenant's tangible net worth at the time of notice to Landlord; (e) the
         Premises shall continue to be operated solely for the use specified in
         the Basic Lease Information; and (f) Tenant shall pay to Landlord all
         costs reasonably incurred by Landlord or any mortgagee or ground lessor
         for such assignment or subletting, including, without limitation,
         reasonable attorneys' fees. No transfer to an Affiliate in accordance
         with this subparagraph shall relieve Tenant named herein of any
         obligation under this Lease or alter the primary liability of Tenant
         named herein for the payment of Rent or for the performance of any
         other obligation to be performed by Tenant, including the obligations
         contained in Paragraph 25 with respect to any Affiliate.

                  Notwithstanding anything to the contrary in this Lease, the
                  transfer of outstanding capital stock or other listed equity
                  interests or the purchase of outstanding capital stock or
                  other listed equity interest or the purchase of equity
                  interests issued in an initial public offering of stock, by
                  persons or parties other than "insiders" within the meaning of
                  the Securities Exchange Act of 1934, as amended, through the
                  "over-the-counter" market or any recognized national or
                  international securities exchange shall not be included in
                  determining whether control has been transferred.

B. Bonus Rent. Any Rent or other consideration realized by Tenant under any such
sublease or assignment in excess of' the Rent payable hereunder, after
amortization of a reasonable brokerage commission incurred by Tenant, shall be
divided and paid, ten percent (10%) to Tenant, ninety percent (90%) to Landlord.
In any subletting or assignment undertaken by Tenant, Tenant shall diligently
seek to obtain the maximum rental amount available in the marketplace for
comparable space available for primary leasing.

C. Corporation. If Tenant is a Corporation, a transfer of corporate shares by
sale, assignment, bequest, inheritance, operation of law or other disposition
(including such a transfer to or by a receiver or trustee in federal or state
bankruptcy, insolvency or other proceedings) resulting in a change in the
present control of such corporation or any of its parent corporations by the
person or persons owning a majority of said corporate shares, shall constitute
an assignment for purposes of this Lease.

D. Unincorporated Entity. If Tenant is a partnership, joint venture,
unincorporated limited liability company or other unincorporated business form,
a transfer of the interest of persons, firms or entities responsible for
managerial control of Tenant by sale, assignment, bequest, inheritance,
operation of law or other disposition, so as to result in a change in the
present control of said entity and/or of the underlying beneficial interests of
said entity and/or a change in the identity of the persons responsible for the
general credit obligations of said entity shall constitute an assignment for all
purposes of this Lease.

E. Liability. No assignment or subletting by Tenant, permitted or otherwise,
shall relieve Tenant of any obligation under this Lease or any guarantor of this
Lease of any liability under its guaranty or alter the primary

                                      19.
<PAGE>

liability of the Tenant named herein for the payment of Rent or for the
performance of any other obligations to be performed by Tenant, including
obligations contained in Paragraph 25 with respect to any assignee or subtenant.
Landlord may collect rent or other amounts or any portion thereof from any
assignee, subtenant, or other occupant of the Premises, permitted or otherwise,
and apply the net rent collected to the Rent payable hereunder, but no such
collection shall be deemed to be a waiver of this Paragraph 21, or the
acceptance of the assignee, subtenant or occupant as tenant, or a release of
Tenant from the further performance by Tenant of the obligations of Tenant under
this Lease or any guarantor of this Lease of any liability under its guaranty.
Any assignment or subletting which conflicts with the provisions hereof shall be
void.

                                 22. AUTHORITY

Landlord represents and warrants that it has full right and authority to enter
into this Lease and to perform all of Landlord's obligations hereunder and that
all persons signing this Lease on its behalf are authorized to do. Tenant and
the person or persons, if any, signing on behalf of Tenant, jointly and
severally represent and warrant that Tenant has full right and authority to
enter into this Lease, and to perform all of Tenant's obligations hereunder, and
that all persons signing this Lease on its behalf are authorized to do so.

                                23. CONDEMNATION

A.   Condemnation Resulting in Termination. If the whole or any substantial part
of the Premises should be taken or condemned for any public use under any
Regulation, or by right of eminent domain, or by private purchase in lieu
thereof, and the taking would prevent or materially interfere with the Permitted
Use of the Premises, either party shall have the right to terminate this Lease
at its option. If any material portion of the Building or Project is taken or
condemned for any public use under any Regulation, or by right of eminent
domain, or by private purchase in lieu thereof, Landlord may terminate this
Lease at its option. In either of such events, the Rent shall be abated during
the unexpired portion of this Lease, effective when the physical taking of said
Premises shall have occurred.

B.   Condemnation Not Resulting in Termination. If a portion of the Project of
which the Premises are a part should be taken or condemned for any public use
under any Regulation, or by right of eminent domain, or by private purchase in
lieu thereof, and the taking prevents or materially interferes with the
Permitted Use of the Premises, and this Lease is not terminated as provided in
Paragraph 23.A. above, the Rent payable hereunder during the unexpired portion
of this Lease shall be reduced, beginning on the date when the physical taking
shall have occurred, to such amount as may be fair and reasonable under all of
the circumstances, but only after giving Landlord credit for all sums received
or to be received by Tenant by the condemning authority. Notwithstanding
anything to the contrary contained in this Paragraph, if the temporary use or
occupancy of any part of the Premises shall be taken or appropriated under power
of eminent domain during the Term, this Lease shall be and remain unaffected by
such taking or appropriation and Tenant shall continue to pay in full all Rent
payable hereunder by Tenant during the term; in the event of any such temporary
appropriation or taking, Tenant shall be entitled to receive that portion of any
award which represents compensation for the use of or occupancy of the Premises
during the Term.

C.   Award. Landlord shall be entitled to (and Tenant shall assign to Landlord)
any and all payment, income, rent, award or any interest therein whatsoever
which may be paid or made in connection with such taking or conveyance and
Tenant shall have no claim against Landlord, or otherwise for any sums paid by
virtue of such proceedings, whether or not attributable to the value of any
unexpired portion of this Lease, except as expressly provided in this Lease.
Notwithstanding the foregoing, any compensation specifically and separately
awarded Tenant for Tenant's personal property and moving costs, shall be and
remain the property of Tenant.

D.   Waiver of CCP ss.1265.130. Each party waives the provisions of California
Civil Code Procedure Sectin 1265.130 allowing either party to petition the
superior court to terminate this Lease as a result of a partial taking.

                              24. CASUALTY DAMAGE

A.  General. If the Premises or Building should be damaged or destroyed by fire,
tornado, or other casualty (collectively, "Casualty"), Tenant Shall give
immediate written notice thereof to Landlord. Within thirty (30) days after
Landlord's receipt of' such notice, Landlord shall notify Tenant whether in
Landlord's estimation material restoration of the Premises can reasonably be
made within one hundred eighty (180) days from the date of

                                      20.
<PAGE>

such notice and receipt of required permits for such restoration. Landlord's
determination shall be binding on Tenant.

B. Within 180 Days. If the Premises or Building should be damaged by Casualty to
such extent that material restoration call in Landlord's estimation be
reasonably completed within one hundred eighty (180) days after the date of such
notice and receipt of required permits for such restoration, this Lease shall
not terminate. Provided that insurance proceeds are received by Landlord to
fully repair the damage, Landlord shall proceed to rebuild and repair the
premises diligently and in the manner determined by Landlord, except that
Landlord shall not be required to rebuild, repair or replace any part of any
Alterations which may have been placed oil or about the Premises or paid for by
Tenant. If the Premises are untenantable in whole or in part following such
damage, the Rent payable hereunder during the period in which they, are
untenantable shall be abated proportionately, but only to the extent of rental
abatement insurance proceeds received by Landlord during the time and to the
extent the Premises are unfit for occupancy.

C. Greater than 180 Days. If the Premises or Building should be damaged by
Casualty to such extent that rebuilding or repairs cannot in Landlord's
estimation be reasonably completed within one hundred eighty (180) days after
the date of such notice and receipt of' required permits for such rebuilding or
repair, then Landlord shall have the option of either: (1) terminating this
Lease effective upon the date of the occurrence of such damage, in which event
the Rent shall be abated during the unexpired portion of this Lease: or (2)
electing to rebuild or repair the Premises diligently and in the manner
determined by Landlord. Landlord shall notify Tenant of its election within
thirty (30) days after Landlord's receipt of notice of the damage or
destruction. Notwithstanding the above, Landlord shall not be required to
rebuild, repair or replace any part of any Alterations which may have been
placed, on or about the Premises or paid for by Tenant. If the Premises are
untenantable in whole or in part following such damage, the Rent payable
hereunder during the period in which they are untenantable shall be abated
proportionately, but only to the extent of rental abatement insurance proceeds
received by Landlord during the time and to the extent the Premises are unfit
for occupancy.

D. Tenant's Fault. Notwithstanding anything herein to the contrary, it' the
Premises or any other portion of the Building are damaged by Casualty resulting
from the fault, negligence, or breach of this Lease by Tenant or any of Tenant's
Parties, Base Rent and Additional Rent shall not be diminished during the repair
of such damage and Tenant shall be liable to Landlord for the cost and expense
of the repair and restoration of the Building caused thereby to the extent such
cost and expense is not covered by insurance proceeds.

E. Insurance Proceeds. Notwithstanding anything herein to the contrary, if the
Premises or Building are damaged or destroyed and if the holder of any
indebtedness secured by a mortgage or deed of trust covering the Premises
requires that the insurance proceeds be applied to such indebtedness, then
landlord shall have the right to terminate this Lease by delivering written
notice of termination to Tenant within thirty (30) days after the date of notice
to Landlord that said damage or destruction is not fully covered by insurance or
such requirement is made by any such holder, as the case may be, whereupon this
Lease shall terminate.

F. Waiver. This Paragraph 24 shall be Tenant's sole and exclusive remedy in the
event of damage or destruction to the Premises or the Building. As a material
inducement to Landlord entering into this Lease, Tenant hereby waives any rights
it may have under Sections 1932, 1933(4), 1941 or 1942 of the Civil Code of'
California with respect to any destruction of the Premises, Landlord's
obligation for tenantability of the Premises and Tenant's right to make repairs
and deduct the expenses of such repairs, or under any similar law, statute or
ordinance now or hereafter in effect.

G. Tenant's Personal Property. In the event of any damage or destruction of the
Premises or the Building, under no circumstances shall Landlord be required to
repair any injury or damage to, or make any repairs to or replacements of
Tenant's personal property.

                                25. HOLDING OVER

Unless Landlord expressly consents in writing to Tenant's holding over, Tenant
shall be unlawfully and illegally, in possession of the Premises, whether or not
landlord accepts any rent from Tenant or any other person while Tenant remains
in possession of the Premises without Landlord's written consent. If Tenant
shall retain possession of the premises or any portion thereof without
Landlord's consent following the expiration of this Lease or sooner termination
for any reason, then Tenant shall pay to Landlord for each day of such retention
triple the amount of daily rental as of the last month prior to the ate of
expiration or earlier termination., Tenant shall also indemnify,

                                      21.
<PAGE>

defend, protect and hold Landlord harmless from any loss, liability or cost,
including consequential and incidental damages and reasonable attorneys' fees,
incurred by Landlord resulting from delay by Tenant in surrendering the
Premises, including, without limitation, any claims made by the succeeding
tenant founded on such delay. Acceptance of Rent by landlord following
expiration or earlier termination of this Lease, or following demand by Landlord
for possession of the Premises, shall not constitute a renewal of this Lease,
and nothing contained in this Paragraph 25 shall waive Landlord's right of
reentry or any other right. Additionally, if upon expiration or earlier
termination of this Lease, or following demand by landlord for possession of the
Premises, Tenant has not fulfilled its obligation with respect to repairs and
cleanup of the Premises or any other Tenant obligations as set forth in this
Lease, then Landlord shall have the right to perform any such obligations as it
deems necessary at Tenant's sole cost and expense, and any time required by
landlord to complete such obligations shall be considered a period ofholding
over and the terms of this Paragraph 25 shall apply. The provisions of this
Paragraph 25 shall survive any expiratio or earlier termination of this Lease.

                                  26. DEFAULT

A.            Events of Default. The occurrence of any of the following shall
constitute an event of default on the part of Tenant:

         (1)  Abandonment. Abandonment or vacation of the Premises for a
         continuous period in excess of five (5) days and failure to pay rent.
         Tenant waives any right to notice Tenant may have under Section 1951.3
         of the Civil Code of I the State of' California, the terms of this
         Paragraph 26.A. being deemed such notice to Tenant as required by said
         Section 1951.3.

         (2)  Nonpayment of Rent. Failure to pay any installment of Rent or any
         other amount due and payable hereunder upon the date when said payment
         is due and after any applicable cure period provided by California Law,
         as to which time is of the essence.

         (3)  Other Obligations. Failure to perform any obligation, agreement or
         covenant under this Lease other than those matters specified in
         subparagraphs (1) and (2) of this Paragraph 26.A., and in Paragraphs 8,
         16, 18 and 25, such failure continuing for fifteen (15) days after
         written notice of such failure, unless it is commercially unreasonably
         to cure within such time period, in which case Tenant shall then have
         forty-five (45) days to cure such default, as to which time is of the
         essence.

         (4) General Assignment. A general assignment by Tenant for the benefit
         of creditors.

         (5) Bankruptcy. The filing of any voluntary petition in bankruptcy by
         Tenant, or the filing of an involuntary petition by Tenant's creditors,
         which involuntary petition remains undischarged for a period of thirty
         (30) days. If under applicable law, the trustee in bankruptcy or Tenant
         has the right to affirm this Lease and continue to perform the
         obligations of Tenant hereunder, such trustee or Tenant shall, in such
         time period as may be permitted by the bankruptcy court having
         jurisdiction, cure all defaults of Tenant hereunder outstanding as of
         the date of the affirmance of this Lease and provide to Landlord such
         adequate assurances as may be necessary to ensure Landlord of the
         continue performance of Tenant's obligations under this Lease.

         (6) Receivership. The employment of a receiver to take possession of
         substantially all of Tenant's assets or the Premises, if such
         appointment remains undismissed or undischarged for a period of fifteen
         (15) days after the order therefor.

         (7) Attachment. The attachment, execution or other judicial seizure of
         all or substantially all of Tenant's assets or Tenant's leasehold of
         the Premises, if such attachment or other seizure remains undismissed
         or undischarged for a period of fifteen (15) days after the levy
         thereof.

         (8) Insolvency. The admission by Tenant in writing of its inability to
         pay its debts as they become due.

B.       Remedies Upon Default.

         (1) Termination. In the event of the occurrence of any event of
         default, Landlord shall have the right to give a written termination
         notice to Tenant, and of the date specified in such notice, Tenant's
         right to possession shall terminate, and this Lease shall terminate
         unless on or before such date all Rent in arrears

                                      22.
<PAGE>

         and all costs and expenses incurred by or of behalf of Landlord
         hereunder shall have been paid by Tenant and all other events of
         default of this Lease by Tenant at the time existing shall have been
         fully remedied to the satisfaction of Landlord. At any time after such
         termination, Landlord may recover possession of the premises or, any
         part thereof and expel and remove therefrom Tenant and any other person
         occupying the same, including any subtenant or subtenants
         notwithstanding Landlord's consent to any Sublease, by any lawful
         means, and again repossess and enjoy the Premises without prejudice to
         any of the remedies that Landlord may have under this Lease, or at law
         or equity by any reason of Tenant's default or of such termination.
         Landlord hereby reserves the right, but shall not have the obligation,
         to recognize the continued possession of any subtenant. The delivery or
         surrender to Landlord by or on behalf of Tenant of keys, entry codes,
         or other means to bypass security at the Premises shall not terminate
         this Lease.

         (2) Continuation After Default. Even though an event of default may
         have occurred, this Lease shall continue in effect for so long as
         Landlord does not terminate Tenant's right to possession under
         Paragraph 26.B.(1) hereof ` Landlord shall have the remedy described in
         California Civil Code Section 195 1.11 ("Landlord may continue this
         Lease in effect after Tenant's breach and abandonment and recover Rent
         as it becomes due, if Tenant has the right to sublet or assign, subject
         only to reasonable limitations"), or any successor code section.
         Accordingly, if Landlord does not elect to terminate this Lease on
         account of any event of default by Tenant, Landlord may enforce all of
         Landlord's rights and remedies under this Lease, including the right to
         recover Rent as it becomes due. Acts of maintenance, preservation or
         efforts to lease the Premises or the appointment of a receiver under
         application of Landlord to protect Landlord's interest under this
         I-ease or other entry by Landlord upon the Premises shall not
         constitute all election to terminate Tenant's right to possession.

         (3) Increased Security Deposit. If Tenant is in default under paragraph
         26.A.(2) hereof and such default remains uncured for ten (10) days
         after such occurrence or such default occurs more than three times in
         any twelve (12) month period, Landlord may require that Tenant increase
         the Security Deposit to the amount of three times the current month's
         Rent at the time of the most recent default.

C.  Damages After Default. Should Landlord terminate this Lease pursuant to the
provisions of Paragraph 26.B.(1) hereof, Landlord shall have the rights and
remedies of a Landlord provided by Section 1951.2 of the Civil Code of the State
of California, or any successor code sections. Upon such termination, in
addition to any other rights and remedies to which Landlord may be entitled
under applicable law or at equity, Landlord shall be entitled to recover from
Tenant: (1) the worth at the time of award of the unpaid Rent and other amounts
which had been earned at the time of termination, (2) the worth at the time of
award of the amount by which the unpaid Rent and other amounts that would have
been earned after the date of termination until the time of award exceeds the
amount of such Rent loss that Tenant proves could have been reasonably avoided;
(3) the worth at the time of award of the amount by which the unpaid Rent and
other amounts for the balance of the Term after the time of award exceeds the
amount of such Rent loss that the Tenant proves could be reasonably avoided; and
(4) any other amount and court costs necessary to compensate Landlord for all
detriment proximately caused by Tenant's failure to perform Tenant's obligations
under this Lease or which, in the ordinary course of things, would be likely to
result therefrom. The "worth at the time of award" as used in (1) and (2) above
shall be computed at the Applicable Interest Rate (defined below). The "worth at
the time of award" as used in (3) above shall be computed by discounting such
amount at the Federal Discount Rate of the Federal Reserve Bank of San Francisco
at the time of award plus one percent (1%). If this Lease provides for any
periods during the Term during which Tenant is not required to pay Base Rent or
if Tenant otherwise receives a Rent concession, then upon the occurrence of ail
event or default, Tenant shall owe to Landlord the full amount of such Base Rent
or value of such Rent concession, plus interest at the Applicable Interest Rate,
calculated from the date that such Base Rent or Rent concession would have been
payable.

D. Late Charge. In addition to its other remedies, Landlord shall have the tight
without notice or demand to add to the amount of any payment required to be made
by Tenant hereunder, and which is not paid and received by Landlord on or before
the first day of each calendar month, in amount equal to five percent (5%) of
the delinquent amount, or $150.00, whichever amount is greater, for each month
or portion thereof that the delinquency remains outstanding to compensate
Landlord for the loss of the use of the amount not paid and the administrative
costs caused by the delinquency, the parties agreeing that Landlord's damage by
virtue of such delinquencies would be extremely difficult and impracticable to
compute and the amount stated herein represents a reasonable estimate thereof.
Any waiver by Landlord of any late charges or failure to claim the same shall
not constitute a waiver of other late charges or any other remedies available to
Landlord.

                                      23.
<PAGE>

E.   Interest. Interest shall accrue on all sums not paid when due hereunder at
the lesser of eighteen percent (18%) per annum or the maximum interest late
allowed by law ("Applicable Interest Rate") from the due date until paid.

F.   Remedies Cumulative. All of Landlord's rights, privileges and elections or
remedies are cumulative and not alternative, to the extent permitted by law and
except as otherwise provided herein.

G.   Replacement of Statutory Notice Requirements. When this Lease requires
service of a notice, that notice shall replace rather than supplement any
equivalent or similar statutory notice, including any notice required by
California Code of Civil Procedure Section 1161 or any similar or successor
statute. When a statute requires service of a notice in a particular manner,
service of that notice (or a similar notice required by this Lease) in the
manner required by this Paragraph 26 shall replace and satisfy the statutory
service-of-notice procedures, including those required by California Code of
Civil procedure Section 1162 or any similar or successor statute.

                                   27. LIENS

Tenant shall at all times keep the Premises and the Project free from liens
arising out of or related to work or services performed, materials or supplies
furnished or obligations incurred by or on behalf of Tenant or in connection
with work made, suffered or (lone by or oil behalf of Tenant in or on the
Premises or Project. If Tenant shall not, within ten (10) days following the
imposition of any such lien, cause the same to be released of record by payment
or posting of a proper bond, Landlord shall have, in addition to all other
remedies provided herein and by law, the right, but not the obligation, to cause
the same to be released by such means as Landlord shall deem proper, including
payment of the claim giving rise to such lien. All sums paid by Landlord on
behalf of Tenant and all expenses incurred by Landlord in connection therefor
shall be payable to Landlord by Tenant oil demand with interest at the
Applicable Interest Rate as Additional Rent. Landlord shall have the right at
all times to post and keep posted on the Premises any notices permitted or
required by law, or which Landlord shall deem proper, for the protection of
Landlord, the Premises, the Project and any other party having an interest
therein, from mechanics' and materialmen's liens, and Tenant shall give Landlord
not less than ten(10) business days prior written notice of the commencement of
any work in the Premises or Project which could lawfully give rise to a claim
for mechanics' or materialmen's liens to permit Landlord to post and record a
timely notice of non-responsibility, as Landlord may elect to proceed or as the
law may from time to time provide, for which purpose, if Landlord shall so
determine, Landlord may enter the Premises. Tenant shall not remove any such
notice posted by Landlord without Landlord's consent, and in any event not
before completion of the work which could lawfully give rise to a claim for
mechanics' or materialmen's liens.

                                28. SUBSTITUTION

         [Deleted from Form Lease.]

                           29. TRANSFERS BY LANDLORD

In the event of a sale or conveyance by Landlord of the Building or a
foreclosure by any creditor of Landlord, the same shall operate to release
Landlord from any liability upon any of the covenants or conditions, express or
implied, herein contained in favor of Tenant, to the extent required to be
performed after the passing of title to Landlord's successor-in-interest. In
such event, Tenant agrees to look solely to the responsibility of the
successor-in-interest of Landlord under this Lease with respect to the
performance of the covenants and duties of "Landlord" to be performed after the
passing of title to Landlord's successor-in-interest. This Lease shall not be
affected by any such sale and Tenant agrees to attorn to the purchaser or
assignee. Landlord's successor(s)-in-interest shall not have

                                      24.
<PAGE>

liability to Tenant with respect to the failure to perform any of the
obligations of "Landlord," to the extent required to be performed prior to the
date such successor(s)-in-interest became the owner of the Building.

              30. RIGHT OF LANDLORD TO PERFORM TENANT'S COVENANTS

All covenants and agreements to be performed by Tenant under any of the terms of
this Lease shall be performed by Tenant at Tenant's sole cost and expense and
without any abatement of Rent. If Tenant shall fail to pay any sum of money,
other than Base Rent, required to be paid by Tenant hereunder or shall fail to
perform any other act oil Tenant's part to be performed hereunder, including
Tenant's obligations under Paragraph 11 hereof, and Such failure shall continue
for fifteen (15) days after notice thereof by Landlord, in addition to the other
rights and remedies of Landlord, Landlord may make any such payment and perform
any such act on Tenant's part. In the case of an emergency, no prior
notification by Landlord shall be required. Landlord may take Such actions
without any obligation and without releasing Tenant from any of Tenant's
obligations. All sums so paid by Landlord and all incidental posts incurred by
Landlord and interest thereon at the Applicable Interest Rate, from the date of
payment by Landlord, shall be paid to Landlord on demand as Additional Rent.

                                   31. WAIVER

If either Landlord or Tenant waives the performance of any term, covenant or
condition contained in this Lease, such waiver shall not be deemed to be a
waiver of any subsequent breach of the same or any other term, covenant or
condition contained herein, OF Constitute a Course of dealing contrary to the
expressed terms of this Lease. The acceptance of Rent by Landlord shall not
constitute a waiver of any preceding breach by Tenant of any term, covenant or
condition of this Lease, regardless of Landlord's knowledge of such preceding
breach at the time Landlord accepted such Rent. Failure by Landlord to enforce
any of the terms, covenants or conditions of this Lease for any length of time
shall not be deemed to waive or decrease the right of Landlord to insist
thereafter upon strict performance by Tenant. Waiver by Landlord of any term,
covenant or condition contained in this Lease may only be made by a written
document signed by Landlord, based upon full knowledge of the circumstances.

                                  32. NOTICES

Each provision of this Lease or of any applicable governmental laws, ordinances,
regulations and other requirements with reference to sending, mailing, or
delivery of any notice or the making of any payment by Landlord or Tenant to the
other shall be deemed to be complied with when and if the following steps are
taken:

A. Rent. All Rent and other payments required to be made by Tenant to Landlord
hereunder shall be payable to Landlord at Landlord's Remittance Address set
forth in the Basic Lease Information, or at such other address as Landlord may
specify from time to time by written notice delivered in accordance herewith.
Tenant's obligation to pay Rent and any other amounts to Landlord under the
terms of this Lease shall not be deemed satisfied until such Rent and other
amounts have been actually received by Landlord

B. Other. All notices, demands, consents and approvals which may or are required
to be given by either party to the other hereunder shall be in writing and
either personally delivered, sent by commercial overnight courier, mailed,
certified or registered, postage prepaid or sent by facsimile with confirmed
receipt (and with an original sent by commercial overnight courier), and in each
case addressed to the party to be notified at the Notice Address for such party
as specified in the Basic Lease Information or to such other place as the party
to be notified may front time to time designate by at least fifteen (15) days
notice to the notifying party. Notices shall be deemed served upon receipt or
refusal to accept delivery. Tenant appoints as its agent to receive the service
of all default notices and notice of commencement of unlawful detainer
proceedings file person in charge of or apparently in Charge Of Occupying the
Premises at the time, and, if there is no such person, then such service may be
made by attaching the same oil the main entrance of the Premises.

C. Required Notices. Tenant shall immediately notify Landlord in writing of any
notice of a violation or a potential or alleged violation of any Regulation that
relates to the Premises or the Project, or of any inquiry, investigation,
enforcement or other action that is instituted or threatened by any governmental
or regulatory agency against Tenant or any other occupant of the Premises, or
any claim that is instituted or threatened by any third party that relates to
the Premises or the Project.

                                      25.
<PAGE>

                              33. ATTORNEYS' FEES

If Landlord places the enforcement of this Lease, or any part thereof, or the
collection of any Rent due, or to become due hereunder, or recovery of
possession of the Premises in the hands of an attorney, Tenant shall pay to
Landlord, upon demand, Landlord's reasonable attorneys' fees and court costs,
whether incurred at trial, appeal or review. 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 reasonable
attorneys' fees, to be fixed by the court, and said costs and attorneys' fees
shall be a part of the judgment in said action.

                           34. SUCCESSORS AND ASSIGNS

This Lease shall be binding upon and inure to the benefit of Landlord, its
successors and assigns, and shall be binding upon and inure to the benefit of
Tenant, its successors, and to the extent assignment is approved by Landlord as
provided hereunder, Tenant's assigns.

                               35. FORCE MAJEURE

If performance by a party of any portion of this Lease is made impossible by any
prevention, delay, or stoppage caused by strikes, lockouts, labor disputes, acts
of God, inability to obtain services, labor, or materials or reasonable
substitutes for those items, government actions, civil commotions, fire or other
casualty, or other causes beyond the reasonable control of the party obligated
to perform, performance by that party for a period equal to the period of that
prevention, delay, or stoppage is excused. Tenant's obligation to pay Rent,
however, is not excused by this Paragraph 35.

                           36. SURRENDER OF PREMISES

Tenant shall, upon expiration or sooner termination of this Lease, surrender the
Premises to Landlord in the same condition as existed on the date Tenant
originally took possession thereof, including, but not limited to, all interior
walls cleaned all holes in walls repaired, all carpets shampooed and cleaned,
all HVAC equipment in operating order and in good repair, and all floors
cleaned, and free of any Tenant-introduced marking or painting, all to the
reasonable satisfaction of Landlord. Tenant shall remove all of its debris from
the Project. At or before the time of surrender, Tenant shall comply with the
terms of Paragraph 12.A. hereof with respect to Alterations to the Premises and
all other matters addressed in such Paragraph. If the Premises are not so
surrendered at the expiration or sooner termination of this Lease, the
provisions of Paragraph 25 hereof shall apply. All keys to the Premises or any
part thereof shall be surrendered to Landlord upon expiration or sooner
termination of the Term. Tenant shall give written notice to Landlord at least
thirty (30) days prior to vacating the Premises and shall meet with Landlord for
a joint inspection of the Premises at the time of vacating, but nothing
contained herein shall be construed as an extension of the Term or as a consent
by Landlord to any holding over by Tenant. In the event of Tenant's failure to
give such notice or participate in such joint inspection, Land lord's inspection
at or after Tenant's vacating the Premises shall conclusively be deemed correct
for purposes of determining Tenant's responsibility for repairs and restoration.
Any delay caused by Tenant's failure to carry out its obligations under this
Paragraph 36 beyond the term hereof, shall constitute unlawful and illegal
possession of Premises under Paragraph 25 hereof.

                            37. HAZARDOUS MATERIALS

A. General Restrictions. Tenant shall conduct its business and shall cause each
Tenant Party to act in such a manner as to (,a) not release or permit (lie
release of any Hazardous Material in, under, on or about the Premises or
Project, or (b) not use, store, generate, treat, discharge, disperse, handle,
manufacture, transport or dispose of (collectively, "Handle") any Hazardous
Materials (other than incidental amounts of customary cleaning and office
supplies) in or about the Premises or Project without the prior written consent
of Landlord, which consent Landlord may withhold in its sole and absolute
discretion ("Hazardous Materials Consent Requirements"). "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) petroleum or
petroleum derivative, (iii) a flammable explosive, (iv) a radioactive material
or waste, (v) a polychlorinated biphenyl, (vi) asbestos or asbestos containing
material, (vii) infectious waste, or (viii) a carcinogen.

                                      26.
<PAGE>

B. Required Disclosures. Prior to Tenant (and at least five (5) days prior to
any assignee or any subtenant of Tenant) taking possession of any part of the
Premises, and oil each anniversary of the Term Commencement Date (each such date
is hereinafter referred to as a "Disclosure Date"), until and including (lie
first Disclosure Date occurring after the expiration or sooner termination of
this Lease, Tenant shall disclose to Landlord in writing the names and amounts
of all Hazardous, Materials, or any combination thereof, which were Handled oil,
in, under or about the Premises or Project for the twelve (12) month period
prior to such Disclosure Date, or which Tenant intends to Handle on, under or
about the Premises during the twelve (12) month period following the Disclosure
Date by executing and delivering to Landlord a "Hazardous Materials
Questionnaire", in the form attached hereto as Exhibit D (as updated and
modified by Landlord, from time to time). Tenant's disclosure obligations under
this Paragraph 37.13 shall include a requirement that, to the extent any
information contained in a Hazardous Materials Questionnaire previously
delivered by Tenant shall become inaccurate in any material respect, Tenant
shall immediately deliver to Landlord a new updated Hazardous Materials
Questionnaire.

C. Additional Obligations. If any Hazardous Materials shall be released into the
environment comprising or surrounding the Project in connection with the acts,
omissions or operations of Tenant or any Tenant Party, Tenant shall at its sole
expense promptly prepare a remediation plan therefor consistent with applicable
Regulations and recommended industry practices (and approved by Landlord and all
governmental agencies having jurisdiction) to fully remediate such release, and
thereafter shall prosecute the remediation plan so approved to completion with
all reasonable diligence and to the satisfaction of Landlord and applicable
governmental agencies. If any Hazardous Materials are Handled in, under, on or
about the Premises during the Term, or if Landlord determines in good faith that
any release of any Hazardous Material or violation of Hazardous Materials
Regulations may have occurred in, on, under or about the Premises during the
Term, Landlord may require Tenant to at Tenant's sole expense, (i) retain a
qualified environmental consultant reasonably satisfactory to Landlord to
conduct it reasonable investigation (an "Environmental Assessment") of a nature
and scope reasonably a approved in writing in advance by Landlord with respect
to the existence of any, Hazardous Materials in, on, under or about the Premises
and providing a review of all Hazardous Materials activities of Tenant and the
Tenant Parties, and (ii) provide to Landlord a reasonably detailed, written
report, prepared in accordance with the institutional real estate standards, of
the Environmental Assessment.

D. Indemnity. Tenant shall indemnify, defend (by counsel reasonably acceptable
to Landlord), protect and hold Landlord harmless from and against any and all
claims, liabilities, losses, costs, loss of rents, liens, damages, injuries or
expenses (including attorneys' and consultants' fees and court costs), demands,
causes of action, or judgments directly or indirectly arising out of or related
to the use, generation, storage, release, or disposal of Hazardous Materials by
Tenant or any of Tenant's Parties in, on, under or about the Premises, the
Building or the Project or surrounding land or environment, which indemnity
shall include, without limitation, damages for personal or bodily injury,
property damage, damage to the environment or natural resources occurring on or
off the Premises, losses attributable to diminution in value or adverse effects
on marketability, (the cost of any investigation, monitoring, government
oversight, repair, removal, remediation, restoration, abatement, and disposal,
and the preparation of any closure or other required plans, whether such action
is required or necessary prior to or following the expiration or earlier
termination of this Lease. Neither the consent by Landlord to the use,
generation, storage, release or disposal of Hazardous Materials nor the strict
compliance by Tenant with all laws pertaining to Hazardous Materials shall
excuse Tenant from Tenant's obligation of indemnification pursuant to this
Paragraph 37.D. Tenant's obligations pursuant to the foregoing indemnity shall
survive the expiration or earlier termination of this Lease.

                               38. MISCELLANEOUS

A. General. The term "Tenant" or any pronoun used in place thereof shall
indicate and include the masculine or feminine, the singular or plural number,
individuals, firms or corporations, and their respective successors, executors,
administrators and permitted assigns, according to the context hereof.

B. Time. Time is of the essence regarding this Lease and all of its provisions.

C. Choice of Law. This Lease shall in all respects be governed by the laws of
the State of California.

D. Entire Agreement. This Lease, together with its Exhibits, addenda and
attachments and the Basic Lease Information, contains all the agreements of the
parties hereto and supersedes any previous negotiations. There have been no
representations made by the Landlord or understandings made between the parties
other than those set forth in this Lease and its Exhibits, addenda and
attachments and the Basic Lease information.

                                      27.
<PAGE>

E. Modification. This Lease may not be modified except by a written instrument
signed by the parties hereto. Tenant accepts the area of the Premises as
specified in the Basic Lease Information as the approximate area of the Premises
for all purposes under this Lease, and acknowledges and agrees that no other
definition of the area (rentable, usable or otherwise) of the Premises shall
apply. Tenant shall in no event be entitled to a recalculation of the square
footage of the Premises, rentable, usable or otherwise, and no recalculation, if
made, irrespective of its purpose, shall reduce Tenant's obligations under this
Lease in any manner, including without limitation the amount of Base Rent
payable by Tenant or Tenant's Proportionate Share of the Building and of the
Project.

F. Severability. If, for any reason whatsoever, any of the provisions hereof
shall be unenforceable or ineffective, all of the other provisions shall be and
remain in full force and effect.

G. Recordation. Tenant shall not record this Lease or a short form memorandum
hereof.

H. Examination of 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.

I. Accord and Satisfaction. No payment by Tenant of a lesser amount than the
total Rent due nor any endorsement of any check or letter accompanying any check
or payment of Rent shall be deemed an accord and satisfaction of full payment of
Rent, and Landlord may accept such payment without prejudice to Landlord's right
to recover the balance of such Rent or to pursue other remedies. All offers by
or on behalf of Tenant of accord and satisfaction are hereby rejected in
advance.

J. Easements. Landlord may grant easements on the Project and dedicate for
public use portions of the Project without Tenant's consent; provided that no
such grant or dedication shall materially interfere with Tenant's Permitted Use
of the Premises. Upon Landlord's request, Tenant shall execute, acknowledge and
deliver to Landlord documents, instruments, maps and plats necessary to
effectuate Tenant's covenants hereunder.

K. Drafting and Determination Presumption. The parties acknowledge that this
Lease has been agreed to by both the parties, that both Landlord and Tenant have
consulted with attorneys with respect to the terms of this Lease and that no
presumption shall be created against Landlord because Landlord drafted this
Lease. Except as otherwise specifically set forth in this Lease, with respect to
any consent, determination or estimation of Landlord required or allowed in this
Lease or requested of Landlord, Landlord's consent, determination or estimation
shall be given or made solely by Landlord in Landlord's good faith opinion,
whether or not objectively reasonable. If Landlord fails to respond to any
request for its consent within the time period, if any, specified in this Lease,
Landlord shall be deemed to have disapproved such request.

L. Exhibits. The Basic Lease Information, and the Exhibits, addenda and
attachments attached hereto are hereby incorporated herein by this reference and
made a part of this Lease as though fully set forth herein.

M. No Light, Air or View Easement. Any diminution or shutting off of light, air
or view by any structure which may be erected on lands adjacent to or in
vicinity of the Building shall in no way affect this Lease or impose any
liability on Landlord.

N. No Third Party Benefit. This Lease is a contract between Landlord and Tenant
and nothing herein is intended to create any third party benefit.

O. Quiet Enjoyment. Upon payment by Tenant of the Rent, and upon the observance
and performance of all of the other covenants, terms and conditions of Tenant's
part to be observed and performed, Tenant shall peaceably and quietly hold and
enjoy the Premises for the term hereby demised without hindrance or interruption
by Landlord or any other person or persons lawfully or equitably claiming by,
through or under Landlord, subject, nevertheless, to all of the other terms and
conditions of this Lease. Landlord shall not be liable for any hindrance,
interruption, interference or disturbance by other tenants or third persons, nor
shall Tenant be released from any obligations under this Lease because of such
hindrance, interruption, interference or disturbance.

P. Counterparts. This Lease may be executed in any number of counterparts, each
of which shall be deemed an original.

Q. Multiple Parties. If more than one person or entity is named herein as
Tenant, such multiple parties shall have joint and several responsibility to
comply with the terms of this Lease.

                                      28.
<PAGE>

R. Prorations. 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. As used
herein, the term "fiscal year" shall mean the calendar year or such other fiscal
year as Landlord may deem appropriate.

                           39. ADDITIONAL PROVISIONS

A. Base Rent Adjustment. Base Rent shall be adjusted annually on July 1st by a
four percent (4.0%) increase as follows:

                    July 1, 2001 - June 30, 2002 - $12,467.00

                    July 1, 2002 - June 30, 2003 - $12,965.00

                    July 1, 2003 - June 30, 2004 - $13,484.00

                    July 1, 2004 - June 30, 2005 - $14,023.00

                             40. JURY TRIAL WAIVER

EACH PARTY HERETO (WHICH INCLUDES ANY ASSIGNEE, SUCCESSOR HEIR OR PERSONAL
REPRESENTATIVE OF A PARTY) SHALL NOT SEEK A JURY TRIAL, HEREBY WAIVES TRIAL BY
JURY, AND HEREBY FURTHER WAIVES ANY OBJECTION TO VENUE IN THE COUNTY IN WHICH
THE BUILDING IS LOCATED, AND AGREES AND CONSENTS TO PERSONAL JURISDICTION OF THE
COURTS OF THE STATE IN WHICH THE PROPERTY IS LOCATED, IN ANY ACTION OR
PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY HERETO AGAINST THE OTHER ON ANY
MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE
RELATIONSHIP OF LANDLORD AND TENANT, TENANT'S USE OR OCCUPANCY OF THE PREMISES,
OR ANY CLAIM OF INJURY OR DAMAGE, OR THE ENFORCEMENT OF ANY REMEDY UNDER ANY
STATUTE, EMERGENCY OR OTHERWISE, WHETHER ANY OF THE FOREGOING IS BASED ON THIS
LEASE OR ON TORT LAW. EACH PARTY REPRESENTS THAT IT HAS HAD THE OPPORTUNITY TO
CONSULT WITH LEGAL COUNSEL CONCERNING THE EFFECT OF THIS PARAGRAPH 40. THE
PROVISIONS OF THIS PARAGRAPH 40 SHALL SURVIVE THE EXPIRATION OR EARLIER
TERMINATION OF THIS LEASE.

IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day
and the year first above written.

                                    LANDLORD

                                    Spieker Properties, L.P.,
                                    a California limited partnership

                                    By: Spieker Properties, Inc.,
                                        a Maryland corporation,
                                        its general partner

                                        By: /s/ Richard L. Romney
                                            --------------------------
                                            Richard L. Romney
                                            Its:  Senior Vice President

                                    Date:  6/8/00

                                    TENANT

                                    Artest Corporation,
                                    a California corporation

                                    By: /s/ Rom Angotti
                                        ---------------------------
                                        Rom Angotti
                                        Its:  Vice President

                                      29.
<PAGE>

                                    EXHIBIT A
                                Industrial Lease
                              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 constructed 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.

2.        No sign, placard, banner, picture, name, advertisement or notice,
         visible front 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.        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.       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

                                      A-1
<PAGE>

         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.

7.        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.

8.        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 except in strict accordance with the terms of the Lease.

9.        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.

10.       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 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, 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.

11.       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.

12.       Landlord will direct electricians as to where and how telephone,
         telegraph or 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, telephone, call
         boxes and other office equipment affixed to the Premises shall be
         subject to the prior written approval of Landlord.

13.       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.

14.       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.

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 person
         employed to move such equipment in or out of the Building must be
         acceptable to Landlord.

15.      Each tenant shall store all of its trash and garbage within the
         interior of the Premises or as otherwise directed by Landlord from time
         to time. 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.

                                      A-2
<PAGE>

16.      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.

17.      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.

18.      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.

19.      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.

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

21.      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 of the Premises closed.

22.      Landlord reserves the right to designate the use of the parking
         spaces of the Project. Tenant or Tenant's guests shall park between
         designated parking lines only, and shall not occupy two parking spaces
         with one car. No trucks, truck tractors, trailers or fifth wheel are
         allowed to be parked anywhere at any time within the Project other than
         in Tenant's own truck dock well. 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 or loading areas. Any tenant found
         parking in such designated visitor or reserved parking areas or loading
         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.

23.      No Tenant is allowed to unload, unpack, pack or in any way
         manipulate any products, materials or goods in the common areas of the
         Project including the packing and driveway areas of the Project. All
         products, goods and materials must be manipulated, handled, kept, and
         stored within the Tenant's Premises and not in any exterior areas,
         including, but not limited to, exterior dock platforms, against the
         exterior of the Building, parking areas and driveway areas of the
         Project. Tenant also agrees to keep the exterior of the Premises clean
         and free of nails, wood, pallets, packing materials, barrels and any
         other debris produced from their operation. All products, materials and
         goods are to enter and exit the Premises by being loaded or unloaded
         through dock high doors into trucks and or trailers, over dock high
         loading platforms into trucks and or trailers or loaded or unloaded
         into trucks and or trailers within the Premises through grade level
         door access.

24.      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.

25.      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.

26.      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, not prevent Landlord from
         thereafter enforcing any such Rules and Regulations against any or all
         tenants of the Building.

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

                                      A-3
<PAGE>

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.

                                      A-4
<PAGE>

                                      B-2.

                                    EXHIBIT B

                                    SITE PLAN

                             [Diagram of Floor Plan]

                                      B-1
<PAGE>

                                   EXHIBIT B-1

                                    PREMISES

                              [Diagram of Premises]

                                      B-2
<PAGE>

                                    EXHIBIT C

         This Lease Improvement Agreement ("Improvement Agreement") sets forth
the terms and conditions relating to construction of the initial tenant
improvements described in the Plans to be prepared and approved as provided
below (the "Tenant Improvements") in the Premises. Capitalized terms used but
not otherwise defined herein shall have the meanings set forth in the Lease (the
"Lease") to which this Improvement Agreement is attached and forms a part.

1.    Base Building Work. The "Base Building Work" described on Schedule 1 to
this Exhibit C, if any, has been or will be performed by Landlord at Landlord's
sole cost and expense.

2.    Plans and Specifications.

     2.1 Tenant shall retain the services of ArchCAD (the "Space Planner") to
prepare a detailed space plan (the "Space Plan") mutually satisfactory to
Landlord and Tenant for the construction of the Tenant Improvements in the
Premises. Tenant shall submit the Space Plan and any proposed revisions thereto
to Landlord for Landlord's approval.

     2.2 Based on the approved Space Plan, Tenant shall cause the Space Planner
to prepare detailed plans, specifications and working drawings mutually
satisfactory to Landlord and Tenant for the construction of the Tenant
Improvements (the "Plans"). Landlord and Tenant shall diligently pursue the
preparation of the Plans. Tenant shall submit the Plans and any proposed
revisions thereto, including the estimated cost of the Tenant Improvements. All
necessary revisions to the Space Plan and the Plans shall be made within two (2)
business days after Landlord's response thereto. This procedure shall be
repeated until Landlord ultimately approves the Space Plan and Plans.

     2.3 Tenant shall be responsible for ensuring that the Plans are compatible
with the design, construction and equipment of the Building, comply with
applicable Regulations and the Standards (defined below), and contain all such
information as may be required to show locations, types and requirements for all
heat loads, people loads, floor loads, power and plumbing, regular and special
HVAC needs, telephone communications, telephone and electrical outlets,
lighting, light fixtures and related power, and electrical and telephone
switches, B.T.U. calculations, electrical requirements and special receptacle
requirements. The Plans shall also include mechanical, electrical, plumbing,
structural and engineering drawings mutually satisfactory to Landlord and Tenant
which shall be prepared by ArchCAD. Notwithstanding Landlord's preparation,
review and approval of the Space Plan and the Plans and any revisions thereto,
Landlord shall have no responsibility or liability whatsoever for any errors or
omissions contained in the Space Plan or Plans or all revisions thereto, or to
verify dimensions or conditions, or for the quality, design or compliance with
applicable Regulations of any improvements described therein or constructed in
accordance therewith. Tenant hereby waives all claims against Landlord relating
to, or arising out of the design or construction of, the Tenant Improvements.

     2.4 Landlord may approve or disapprove the Space Plan or Plans or any
proposed revision thereto submitted to Landlord in Landlord's reasonable
discretion. Landlord's criteria for approvals shall be based on reasonable
criteria established from time to time by Landlord, but Landlord will be deemed
to have acted reasonably if Landlord's disapproval is predicated upon (i) effect
of the structural integrity of the Building, (ii) possible damage to the
Building's mechanical, electrical, plumbing and HVAC systems, (iii)
non-compliance with applicable laws, codes and regulations, (iv) incompatibility
with the base building plans, (v) failure to use materials required by
pertaining to Standards, and (vi) effect of the exterior of the Building or any
of the Building's common areas. Landlord shall not be deemed to have approved
the Space Plan, the Plans, or any proposed revisions thereto, unless approved by
Landlord in writing. Landlord shall approve or disapprove any Space Plan, Plans
or proposed revisions thereto submitted to Landlord for Landlord's approval
within three (3) business days after Landlord's receipt thereof. If Landlord has
not approved in writing any Space Plan, Plans, or proposed revisions thereto
submitted to Landlord within five (5) business days after Landlord's receipt
thereof, Landlord shall be deemed to have disapproved the same.

3.    Specifications for Standard Tenant Improvements.

      [Deleted from Form Lease]

                                      C-1
<PAGE>

4.    Tenant Improvement Cost.

     4.1 The cost of the Tenant Improvements shall be paid for by Tenant,
including, without limitation, the cost of: Standards; space plans and studies;
architectural and engineering fees; permits, approvals and other governmental
fees; labor, material, equipment and supplies; construction fees and other
amounts payable to contractors or subcontractors, taxes; off-site improvements;
remediation and preparation of the Premises for construction of the Tenant
Improvements; taxes; filing and recording fees; premiums for insurance and
bonds; attorneys' fees; financing costs; and all other costs expended or to be
expended in the construction of the Tenant Improvements, including those costs
incurred for construction of elements of the Tenant Improvements in the
Premises, which construction was performed by Landlord prior to the execution of
the Lease or for materials comprising the Tenant Improvements which were
purchased by Landlord prior to the execution of the Lease.

     4.2 Provided Tenant is not in default under the Lease, including this
Improvement Agreement, Landlord shall contribute a one-time tenant improvement
allowance not to exceed $75,708.00 ("Tenant Improvement Allowance") toward the
cost of the initial Tenant Improvements. Provided Tenant is not then in default
under the Lease, including this Improvement Agreement, Landlord shall disburse
the Tenant Improvement Allowance to Tenant upon completion of construction of
the Tenant Improvements and upon receipt by Landlord of a certificate of
completion executed by the Space Planner and Tenant's contractor, and
unconditional mechanics' lien releases (which mechanics' lien releases shall be
executed by the subcontractors, labor suppliers and materialmen in addition to
Tenant's contractor), in each case in form and substance satisfactory to
Landlord, and all appropriate bills and supporting documentation for the work
ordered by Tenant or its contractor or any subcontractor.

     4.3 In the event the estimated cost of the design and construction of the
Tenant Improvements exceeds the Tenant Improvement Allowance, Tenant shall pay
such excess cost to Landlord within ten (10) days after Tenant's execution of
the construction contract with Tenant's contractor, which amount shall be
disbursed by Landlord concurrently with the Tenant Improvement Allowance and
shall not bear interest. No credit shall be given to Tenant if the cost of the
Tenant Improvements is less than the Tenant Improvement Allowance.

     4.4 If the cost of the Tenant Improvements increases after the Tenant's
approval of the Plans due to the requirements of any governmental agency or
applicable Regulation or for any other reason, Tenant shall pay Landlord the
amount of such increase to Landlord within ten (10) business days after Tenant
is apprised of such increase, which amount shall be disbursed by Landlord
concurrently with the Tenant Improvement Allowance and shall not bear interest.

     4.5 If Tenant requests any change(s) in the Plans after approval of the
estimate of the cost of the Tenant Improvements and any such requested changes
are approved by Landlord in writing in Landlord's sole discretion, Tenant shall
pay Landlord the amount of any cost increases such approved change(s) will cause
in the construction of the Tenant Improvements within three (3) business days
after and as a condition of Landlord's approval of such changes, which amount
shall be disbursed by Landlord concurrently with the Tenant Improvement
Allowance and shall not bear interest.

5.   Construction of Tenant Improvements.

     5.1 Within ten (10) days after Tenant's and Landlord's approval of the
plans including the estimate of the cost of the Tenant Improvements and
Landlord's receipt of payment of any such estimated cost exceeding the amount of
the Tenant Improvement Allowance, Tenant shall cause the contractor to proceed
to secure a building permit and commence construction of the Tenant Improvements
provided that the Building has in Landlord's discretion reached the stage of
construction where it is appropriate to commence construction of the Tenant
Improvements in the Premises.

     5.2 Tenant shall be responsible for obtaining all governmental approvals to
the full extent necessary for the construction and installation of the Tenant
Improvements and for Tenant's occupancy of the Premises, in compliance with all
applicable Regulations. Tenant shall employ James Dowling Construction as the
contractor or such other contractor or contractors as shall be approved by
Landlord in writing to construct the Tenant Improvements in conformance with the
approved Space Plan and Plans. The construction contracts between Tenant and the
approved contractor shall be subject to Landlord's prior reasonable approval and
shall provide for

                                      C-2
<PAGE>

progress payments. The contractor(s) shall be duly licensed and Landlord's
approval of the contractor(s) shall be conditioned, among other things, upon the
contractor's reputation for quality of work, timeliness of performance,
integrity and Landlord's prior experience with such contractor.

     5.3 Without limiting the provisions of Paragraph 35 of the Lease, Landlord
shall not be liable for any direct or indirect damages suffered by Tenant as a
result of delays in construction beyond Landlord's reasonable control,
including, but not limited to, delays due to strikes or unavailability of
materials or labor, or delays caused by Tenant (including delays by the Space
Planner, the contractor or anyone else performing services on behalf of Landlord
or Tenant).

     5.4 All work to be performed on the Premises by Tenant or Tenant's
contractor or agents shall be subject to the following conditions:

     (a) Such work shall proceed upon Landlord's written approval of Tenant's
contractor, and public liability and property damag-e insurance carried by
Tenant's contractor, and shall further be subject to the provisions of
Paragraphs 12 and 27 of the Lease.

     (b) All work shall be done in conformity with a valid building permit when
required, a copy of which shall be furnished to Landlord before such work is
commenced, and in any case, all such work shall be performed in a good and
workmanlike and first-class manner, and in accordance with all applicable
Regulations and the requirements and standards of any insurance underwriting
board, inspection bureau or insurance carrier insuring the Premises pursuant to
the Lease. Notwithstanding any failure by Landlord to object to any such work,
Landlord shall have no responsibility for Tenant's failure to comply with all
applicable Regulations. Tenant shall be responsible for ensuring that
construction and installation of the Tenant Improvements will not affect the
structural integrity of the Building.

     (c) If required by Landlord or any lender of Landlord, all work by Tenant
or Tenant's contractor shall be done with union labor in accordance with all
union labor agreements applicable to the trades being employed.

     (d) Landlord or Landlord's agents shall have the right to inspect the
construction of the Tenant Improvements by Tenant during the progress thereof.
If Landlord shall give notice of faulty construction or any other deviation from
the approved Space Plan or Plans, Tenant shall cause its contractor to make
corrections promptly. However, neither the privilege herein granted to Landlord
to make such inspections, nor the making of such inspections by Landlord, shall
operate as a waiver of any right of Landlord to require good and workmanlike
construction and improvements erected in accordance with the approved Space Plan
or Plans.

     (e) Tenant shall cause its contractor to complete the Tenant Improvements
as soon as reasonably possible.

     (f) Tenant's construction of the Tenant Improvements shall comply with the
following: (i) the Tenant Improvements shall be constructed in strict accordance
with the approved Space Plan or Plans; (ii) Tenant's and its contractor shall
submit schedules of all work relating to the Tenant Improvements to Landlord for
Landlord's approval within two (2) business days following the selection of the
contractor and the approval of the Plans. Landlord shall within five (5)
business days after receipt thereof inform Tenant of any changes which are
necessary and Tenant's contractor shall adhere to such corrected schedule; and
(iii) Tenant shall abide by all rules made by Landlord with respect to the use
of freight, loading dock, and service elevators, storage of materials,
coordination of work with the contractors of other tenants, and any other matter
in connection with this Improvement Agreement, including, without limitation,
the construction of the Tenant Improvements.

     (g) Tenant or Tenant's contractor or agents shall arrange for necessary
utility, hoisting and elevator service with Landlord's contractor and shall pay
such reasonable charges for such services as may be charged by Tenant's or
Landlord's contractor.

     (h) Tenant's entry to the Premises for any purpose, including, without
limitation, inspection or performance of Tenant construction by Tenant's agents,
prior to the date Tenant's obligation to pay rent commences shall be subject to
all the terms and conditions of the Lease except the payment of Rent. Tenant's
entry shall mean entry by Tenant, its officers, contractors, licensees, agents,
servants, employees, guests, invitees, or visitors.

(i) Tenant shall promptly reimburse Landlord upon demand for any reasonable
expense actually incurred by the Landlord by reason of faulty work done by
Tenant or its contractors or by reason of any delays caused by such work, or by
reason of inadequate clean-up.

                                      C-3
<PAGE>

     (j) Tenant hereby indemnifies and holds Landlord harmless with respect to
any and all costs, losses, damages, injuries and liabilities relating in any way
to any act or omission of Tenant or Tenant's contractor or agents, or anyone
directly or indirectly employed by any of them, in connection with the Tenant
Improvements and any breach of Tenant's obligations under this Improvement
Agreement, or in connection with Tenant's non-payment of any amount arising out
of the Tenant Improvements. Such indemnity by Tenant, as set forth above, shall
also apply with respect to any and all costs, losses, damages, injuries, and
liabilities related in any way to Landlord's performance or any ministerial acts
reasonably necessary (i) to permit Tenant to complete the Tenant Improvements,
and (ii) to enable Tenant to obtain any building permit or certificate of
occupancy for the Premises.

     (k) Tenant's contractor and the subcontractors utilized by Tenant's
contractor shall guarantee to Tenant and for the benefit of Landlord that the
portion of the Tenant Improvements for which it is responsible shall be free
from any defects in workmanship and materials for a period of not less than one
(1) year from the date of completion thereof. Each of Tenant's contractor and
the subcontractors utilized by Tenant's contractor shall be responsible for the
replacement or repair, without additional charge, of all work done or furnished
in accordance with its contract that shall become defective within one (1) year
after the later to occur of (i) completion of the work performed by such
contractor of subcontractors and (ii) the Term Commencement Date. The correction
of such work shall include, without additional charge, all additional expenses
and damages incurred in connection with such removal or replacement of all or
any part of the Tenant Improvements, and/or the Building and/or common areas
that may be damaged or disturbed thereby. All such warranties or guarantees as
to materials or workmanship of or with respect to the Tenant Improvements shall
be contained in the construction contract or subcontract and shall be written
such that such guarantees or warranties shall inure to the benefit of both
Landlord and Tenant, as their respective interests may appear, and can be
directly enforced by either. Tenant covenants to give to Landlord any assignment
or other assurances which may be necessary to effect such rights of direct
enforcement.

     (l) Commencing upon the execution of the Lease, Tenant shall hold weekly
meetings at a reasonable time with the Space Planner and the contractor
regarding the progress of the preparation of the Plans and the construction of
the Tenant Improvements, which meetings shall be held at a location designated
by Tenant, and Landlord and/or its agents shall receive prior notice of, and
shall have the right to attend, all such meetings, and upon Landlord's request,
certain of Tenant's contractors shall attend such meetings. One such meeting
each month shall include the review of contractor's current request for payment.

6.   Insurance Requirements.

     6.1 All of Tenant's contractors shall carry worker's compensation insurance
covering all of their respective employees, and shall also carry public
liability insurance, including property damage, all with limits, in form and
with companies as are required to be carried by Tenant as set forth in Paragraph
8 of the Lease.

     6.2 Tenant shall carry "Builder's All Risk" insurance in an amount approved
by Landlord covering the construction of the Tenant Improvements, and such other
insurance as Landlord may require, it being understood and agreed that the
Tenant Improvements shall be insured by Tenant pursuant to Paragraph 8 of the
Lease immediately upon completion thereof. Such insurance shall be in amounts
and shall include such extended coverage endorsements as may be reasonably
required by Landlord including, but not limited to, the requirement that all of
Tenant's contractors shall carry excess liability and Products and Completed
Operation coverage insurance, each in amounts not less than $500,000 per
incident, $1,000,000 in aggregate, and in form and with companies as are
required to be carried by Tenant as set forth in paragraph 8 of the Lease.

     6.3 Certificates for all insurance carried pursuant to this Improvement
Agreement must comply with the requirements of Paragraph 8 of the Lease and
shall be delivered to Landlord before the commencement of construction of the
Tenant Improvements and before the contractor's equipment is moved onto the
site. In the event the Tenant Improvements are damaged by any cause during the
course of the construction thereof, Tenant shall immediately repair the same at
Tenant's sole cost and expense. Tenant's contractors shall maintain all of the
foregoing insurance coverage in force until the Tenant Improvements are fully
completed and accepted by Landlord, except for any product and Completed
Operation Coverage insurance required by Landlord, which is to be maintained for
ten (10) years following completion of the work and acceptance by Landlord and
Tenant. All policies carried under this Paragraph 6 shall insure Landlord and
Tenant, as their interests may appear, as well as the contractors. All insurance
maintained by Tenant's contractors shall preclude subrogation claims by the
insurer against anyone insured thereunder. Such insurance shall provide that it
is primary insurance as respects the owner and that any other insurance
maintained by owner is excess and noncontributing with the insurance required
hereunder. Landlord may, in its discretion, require Tenant to obtain a lien and
completion bond or some alternate form of security satisfactory to Landlord in
an amount sufficient to ensure the lien-free completion of the Tenant
Improvements and naming Landlord as a co-obligee.

                                      C-4
<PAGE>

7.   Completion and Rental Commencement Date.

     7.1 Tenant's obligation to pay Rent under the Lease shall commence on the
Scheduled Term Commencement Date and the Scheduled Term Commencement Date shall
be the Term Commencement Date notwithstanding anything to the contrary contained
in Paragraph 2 of the Lease. However, Landlord Delays (as defined below) shall
extend the Term Commencement Date, but only in the event that substantial
completion of the Tenant Improvements is delayed despite Tenant's reasonable
efforts to adapt and compensate for such delays. In addition, no Landlord Delays
shall be deemed to have occurred unless Tenant has provided notice, in
compliance with the Lease, to Landlord specifying that a delay shall be deemed
to have occurred because of actions, inactions or circumstances specified in the
notice in reasonable detail. If such actions, inactions or circumstances are not
cured by Landlord within one (1) business day after receipt of such notice
("Count Date"), and if such actions, inaction or circumstances otherwise qualify
as a Landlord Delay, then a Landlord Delay shall be deemed to have occurred
commencing as of the Count Date. The Term Commencement Date shall be extended by
one day for each day from the Count Date that a Landlord Delay has occurred, as
calculated as provided above. The term "Landlord Delays," as such term may be
used in this Improvement Agreement, shall mean any delays in the Completion of
the Tenant Improvements which are due to any act or omission of Landlord, its
agents or contractors. Landlord Delays shall include, but shall not be limited
to: (i) delays in the giving of authorizations or approvals by Landlord, (ii)
delays due to the acts or failures to act, of Landlord, its agents or
contractors, where such acts or failures to act delay the completion of the
Tenant Improvements, provided that Tenant acts in a commercially reasonable
manner to mitigate any such delay, (iii) delays due to the interference of
Landlord, its agents or contractors with the completion of the Tenant
Improvements or the failure or refusal of any party to permit Tenant, its agents
and contractors, access to and use of the Building or any Building facilities or
services, including elevators and loading docks, which access and use are
necessary to complete the Tenant Improvements, and (iv) delays due to Landlord's
failure to allow Tenant sufficient access to the Building and/or the Premises
during Tenant's move into the Premises.

     7.2 Within ten (10) days after completion or construction of the Tenant
Improvements, Tenant shall cause a Notice of Completion to be recorded in the
office of the Recorder of the county in which the Building is located in
accordance with Section 3093 of the Civil Code of the State or California or any
successor statute, and shall furnish a copy thereof to Landlord upon such
recordation. If Tenant fails to do so, Landlord may execute and file the same on
behalf of Tenant as Tenant's agent for such purpose, at Tenant's sole cost and
expense. At the conclusion of construction, (i) Tenant shall cause the Space
Planner and the contractor (i) to update the approved working drawings as
necessary to reflect all changes made to the approved working drawings during
the course of construction, (ii) to certify to the best of their knowledge that
the "record-set" of as-built drawings are true and correct, which certification
shall survive the expiration or termination of the Lease, and (c) to deliver to
Landlord two (2) sets of copies of such record set of drawings within ninety
(90) days following issuance of a certificate of occupancy for the Premises, and
(iii) Tenant shall deliver to Landlord a copy of all warranties, guarantees, and
operating manuals and information relating to the improvements, equipment, and
systems in the Premises.

     7.3 A default under this Improvement Agreement shall constitute a default
under the Lease, and the parties shall be entitled to all rights and remedies
under the Lease in the event of a default hereunder by the other party
(notwithstanding that the Term thereof has not commenced).

     7.4 Without limiting the "as-is" provisions of the Lease, except for the
Tenant Improvements, if any, to be constructed by Landlord pursuant to this
Improvement Agreement, Tenant accepts the Premises in its "as-is" condition and
acknowledges that it has had an opportunity to inspect the Premises prior to
signing the Lease.

                                      C-5
<PAGE>

                                   SCHEDULE 1
                                  TO EXHIBIT C

                               BASE BUILDING WORK

                                      NONE

                                      C-6
<PAGE>

                              EXHIBIT D

                        HAZARDOUS MATERIALS QUESTIONNAIRE

This questionnaire is designed to solicit information regarding Tenant's
proposed use, generation, treatment, storage, transfer or disposal of hazardous
or toxic materials, substances or wastes. If this Questionnaire is attached to
or provided in connection with a lease, the reference herein to any such items
shall include all items defined as "Hazardous Materials," "Hazardous
Substances," "Hazardous Wastes," "Toxic Materials," "Toxic Substances," "Toxic
Wastes," or such similar definitions contained in the lease. Please complete the
questionnaire and return it to Landlord for evaluation. If your use of materials
or substances, or generation of wastes is considered to be significant, further
information may be requested regarding your plans for hazardous and toxic
materials management. Your cooperation in this matter is appreciated. If you
have any questions, do not hesitate to call us for assistance.

<TABLE>
<CAPTION>
<S>     <C>                               <C>                  <C>                    <C>

1.       PROPOSED TENANT

         Name (Corporation, Individual, Corporate or Individual DBA, or Public Agency):
                                                                                       ----------------------------

         Artest Corp.
         ----------------------------------------------------------------------------------------------------------

         Standard Industrial Classification Code (SIC):
                                                       ------------------------------------------------------------

         Street Address:                  678 Almanor Ave.
                                          -------------------------------------------------------------------------

         City, State, Zip Code:           Sunnyvale, CA  94086
                                          -------------------------------------------------------------------------

         Contact Person & Title:          Stone Shih, Facilities Manager
                                          -------------------------------------------------------------------------

         Telephone Number:                (408) 731-8778           Facsimile Number:     (408) 731-8770
                                          --------------                                 --------------------------

2.       LOCATION AND ADDRESS OF PROPOSED LEASE

         Street Address:                  6696 Mesa Ridge Rd
                                          -------------------------------------------------------------------------

         City, State, Zip Code:           San Diego, CA  92121
                                          -------------------------------------------------------------------------

         Bordering Streets:               Mesa Run
                                          -------------------------------------------------------------------------

         Streets to which Premises has Access:   Mesa Ridge Rd.
                                                 ------------------------------------------------------------------

3.       DESCRIPTION OF PREMISES

         Floor Area:
                                          -------------------------------------------------------------------------

         Number of Parking Spaces:
                                          -------------------------------------------------------------------------

         Date of Original Construction:
                                          -------------------------------------------------------------------------

         Past Uses of Premises:
                                          -------------------------------------------------------------------------

         Dates and Descriptions of Significant Additions, Alterations or Improvements:
                                                                                           ------------------------

-------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      D-1
<PAGE>

         Proposed Additions, Alterations or Improvements, if any:
                                                                 ---------------

4.          DESCRIPTION OF PROPOSED PREMISES USE

         Describe proposed use and operation of Premises including (i) services
         to be performed, (ii) nature and types of manufacturing or assembly
         processes, if, any, and (iii) the materials or products to be stored at
         the Premises.

         Electronic Testing Service
         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         Will the operation of your business at the Premises involve the use,
         generation, treatment, storage, transfer or disposal of hazardous
         wastes or materials? Do they now? Yes No X If the answer is "yes," or
         if your SIC code number is between 2000 to 4000, please complete
         Section V.

5.          PERMIT DISCLOSURE

         Does or will the operation of any facet of your business at the
         Premises require any permits, licenses or plan approvals from any of
         the following agencies?

           U.S. Environmental Protection Agency         Yes           No   X
                                                           -----        ------

           City or County Sanitation District           Yes           No   X
                                                           -----        ------

           State Department of Health Services          Yes           No   X
                                                           -----        ------

           U.S. Nuclear Regulatory Commission           Yes           No   X
                                                           -----        ------

           Air Quality Management District              Yes           No   X
                                                           -----        ------

           Bureau of Alcohol, Firearms and Tobacco      Yes           No   X
                                                           -----        ------

           City or County Fire Department               Yes           No   X
                                                           -----        ------

           Regional Water Quality Control Board         Yes           No   X
                                                           -----        ------

           Other Governmental Agencies (if yes,         Yes           No   X
                                                           -----        ------

           identify:  ______________________)

         If the answer to any of the above is "yes," please indicate permit or
         license numbers, issuing agency and expiration date or renewal date, if
         applicable.

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         If your answer to any of the above is "yes," please complete Sections
         VI and V11.

                                      D-2
<PAGE>

6.          HAZARDOUS MATERIALS DISCLOSURE

         Will any hazardous or toxic materials or substances be stored on the
         Premises? Yes No X If the answer is "yes," please describe the
         materials or substances to be stored, the quantities thereof and the
         proposed method of storage of the same (i.e., drums, aboveground or
         underground storage tanks, cylinders, other), and whether the material
         is a Solid (S), Liquid (L) or Gas (G):
<TABLE>
<CAPTION>

                                                                                Amount to be
         Material/          Quantity to be                                       Stored on a           Maximum Period of
         Substance        Stored on Premises          Storage Method            Monthly Basis          Premises Storage
       --------------     --------------------    -----------------------    --------------------     --------------------
<S>     <C>              <C>                     <C>                        <C>                       <C>

       --------------     --------------------    -----------------------    --------------------     --------------------

       --------------     --------------------    -----------------------    --------------------     --------------------
</TABLE>

         Attach additional sheets if necessary.

         Is any modification of the Premises improvements required or planned to
         mitigate the release of toxic or hazardous materials substance or
         wastes into the environment? Yes ____ No ____ If the answer is "yes,"
         please describe the proposed premises modifications:

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------
7.          HAZARDOUS WASTE DISCLOSURE

         Will any hazardous waste, including recyclable waste, be generated by
         the operation of your business at the Premises? Yes No X If the answer
         is "yes," please list the hazardous waste which is expected to be
         generated (or potentially will be generated) at the Premises, its
         hazard class and volume/frequency of generation on a monthly basis.
<TABLE>
<CAPTION>

                                                                                           Maximum Period of
               Waste Name             Hazard Class              Volume/Month               Premises Storage
               ----------             ------------              ------------               ----------------

<S>      <C>                       <C>                     <C>                           <C>
          ---------------------    --------------------     ----------------------        --------------------

          ---------------------    --------------------     ----------------------        --------------------

</TABLE>

         Attach additional sheets if necessary.

         If the answer is "yes," please also indicate if any such wastes are to
         be stored within the Premises and the proposed method of storage (i.e,
         drums, aboveground or underground storage tanks, cylinders, other).

                                      D-3
<PAGE>

               Waste Name            Storage Method
               ----------            --------------

          ---------------------    --------------------

          ---------------------    --------------------

         Attach additional sheets if necessary.

         If the answer is "yes," please also describe the method(s) of disposal
         for each waste. Indicate where disposal will take place including the
         methods, equipment and companies to be used to transport the waste:

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         Is any treatment or processing of hazardous wastes to be conducted at
         the Premises? Yes No X If the answer is "yes," please describe
         proposed treatment/processing methods:

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         Which agencies are responsible for monitoring and evaluating compliance
         with respect to the storage and disposal of hazardous materials or
         wastes at or from the Premises? (Please list all agencies):

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         Have there been any agency enforcement actions regarding Tenant (or any
         affiliate thereof), or any existing Tenant's (or any affiliate's)
         facilities, or any past, pending or outstanding administrative orders
         or consent decrees with respect to Tenant or any affiliate thereof? Yes
         No X If the answer is "yes," have there been any continuing compliance
         obligations imposed on Tenant or its affiliates as a result of the
         decrees or orders? Yes No If the answer is "yes," please describe:

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

                                      D-4
<PAGE>

         Has Tenant or any of its affiliates been the recipient of requests for
         information, notice and demand letters, cleanup and abatement orders,
         or cease and desist orders or other administrative inquiries? Yes No X
         If the answer is "yes," please describe:

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         Are there any pending lawsuits, or have any notices of violations been
         provided to Tenant or its affiliates or with respect to any existing
         facilities pursuant to the citizens suit provisions of any statute? Yes
         No X If the answer is "yes," please describe:

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         Have there been any previous lawsuits against the company regarding
         environmental concerns? Yes No X If the answer is "yes," please
         describe how these lawsuits were resolved:

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         Has an environmental audit ever been conducted at any of your company's
         existing facilities? Yes       No   X  .  If the answer is "yes,"
         please describe:

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         Does your company carry environmental impairment insurance? Yes No . If
         the answer is "yes," what is the name of the carrier and what are the
         effective periods and monetary limits of such coverage?

         -----------------------------------------------------------------------

                                      D-5
<PAGE>

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

8.          EQUIPMENT LOCATED OR TO BE LOCATED AT THE PREMISES

         Is (or will there be) any electrical transformer or other equipment
         containing polychlorinated biphenyls located at the premises? Yes No X
         If the answer is "yes," please specify the size, number and location
         (or proposed location):

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         Is (or will there be) any tank for storage of a petroleum product
         located at the Premises? Yes No If the answer is "yes," please specify
         capacity and contents of tank; permits, licenses and/or approvals
         received or to be received therefor and any spill prevention control or
         conformance plan to be taken in connection therewith:

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

9.          ONGOING ACTIVITIES (APPLICABLE TO TENANTS IN POSSESSION)

         Has any hazardous material, substance or waste spilled, leaked,
         discharged, leached, escaped or otherwise been released into the
         environment at the Premises? Yes No If the answer is "yes," please
         describe including (i) the date and duration of each such release, (ii)
         the material, substance or waste released, (iii) the extent of the
         spread of such release into or onto the air, soil and/or water, (iv)
         any action to clean up the release, (v) any reports or notifications
         made of filed with any federal, state, or local agency, or any
         quasi-governmental agency (please provide copies of such reports or
         notifications) and (vi) describe any legal, administrative or other
         action taken by any of the foregoing agencies or by any other person as
         a result of the release:

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

                                      D-6
<PAGE>

This Hazardous Materials Questionnaire is certified as being true and accurate
and has been completed by the party whose signature appears below on behalf of
Tenant as of the date set forth below.

DATED:      6-6-00
        -------------

                                    Signature /s/ Rom Angotti
                                              ---------------------------------

                                    Print Name                Rom Angotti
                                               --------------------------------

                                    Title                     VP Operations

                                      D-7<PAGE>
                                                                 EXHIBIT 10.11

                              ARTEST CORPORATION
                           INDEMNIFICATION AGREEMENT

          THIS INDEMNIFICATION AGREEMENT (this "Agreement") is made and entered
into this ____ day of August, 2000 between Artest Corporation, a Delaware
corporation (the "Company"), and ((Name)) ("Indemnitee").

          WHEREAS, Indemnitee, a member of the Board of Directors or an officer,
employee or agent of the Company, performs a valuable service in such capacity
for the Company;

          WHEREAS, the stockholders of the Company have adopted Bylaws (the
"Bylaws") providing for the indemnification of the officers, directors,
employees and agents of the Company to the maximum extent authorized by Section
145 of the Delaware General Corporation Law, as amended (the "Code");

          WHEREAS, the Bylaws and the Code, by their non-exclusive nature,
permit contracts between the Company and the members of its Board of Directors,
officers, employees or agents with respect to indemnification of such directors,
officers, employees or agents;

          WHEREAS, in accordance with the authorization as provided by the Code,
the Company either has purchased and presently maintains or intends to purchase
and maintain a policy or policies of Directors and Officers Liability Insurance
("D & O Insurance") covering certain liabilities which may be incurred by its
directors and officers in the performance of their duties as directors and
officers of the Company;

          WHEREAS, as a result of developments affecting the terms, scope and
availability of D & O Insurance there exists general uncertainty as to the
extent of protection afforded members of the Board of Directors or officers,
employees or agents by such D & O Insurance and by statutory and bylaw
indemnification provisions; and

          WHEREAS, in order to induce Indemnitee to continue to serve as a
member of the Board of Directors, officer, employee or agent of the Company, the
Company has determined and agreed to enter into this contract with Indemnitee.

          NOW, THEREFORE, in consideration of Indemnitee's continued service as
a director, officer, employee or agent after the date hereof, and for other good
and valid consideration, the receipt and adequacy of which is hereby
acknowledged, the parties hereto agree as follows:

          1.   Indemnification of Indemnitee.  The Company hereby agrees to
               -----------------------------
hold harmless and indemnify Indemnitee to the fullest extent authorized or
permitted by the provisions of the Code, as may be amended from time to time.

          2.   Additional Indemnity.  Subject only to the exclusions set forth
               --------------------
in Sections 3 and 6(c) hereof, the Company hereby further agrees to hold
harmless and indemnify Indemnitee:
<PAGE>

                    (a)  against any and all expenses (including attorneys'
fees), witness fees, judgments, fines and amounts paid in settlement actually
and reasonably incurred by Indemnitee in connection with any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, administrative
or investigative (including an action by or in the right of the Company) to
which Indemnitee is, was or at any time becomes a party, or is threatened to be
made a party, by reason of the fact that Indemnitee is, was or at any time
becomes a director, officer, employee or agent of the Company or any subsidiary
of the Company, or is or was serving or at any time serves at the request of the
Company as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise;
and

                    (b)  otherwise to the fullest extent as may be provided to
Indemnitee by the Company under the non-exclusivity provisions of Article VII,
Section 6 of the Bylaws of the Company and the Code.

          3.   Limitations on Additional Indemnity.
               -----------------------------------

                    (a)  No indemnity pursuant to Section 2 hereof shall be paid
by the Company:

                     i)   in respect to remuneration paid to Indemnitee if it
shall be determined by a final judgment or other final adjudication that such
remuneration was in violation of law;

                    ii)   on account of any suit in which judgment is rendered
against Indemnitee for an accounting of profits made from the purchase or sale
by Indemnitee of securities of the Company pursuant to the provisions of Section
16(b) of the Securities Exchange Act of 1934 and amendments thereto or similar
provisions of any federal, state or local statutory law;

                   iii)   on account of Indemnitee's conduct which is finally
adjudged to have been knowingly fraudulent or deliberately dishonest or to
constitute willful misconduct;

                    iv)   on account of Indemnitee's conduct which is the
subject of an action, suit or proceeding described in Section 6(c)(ii) hereof;

                     v)   on account of any action, claim or proceeding (other
than a proceeding referred to in Section 7(b) hereof) initiated by the
Indemnitee unless such action, claim or proceeding was authorized in the
specific case by action of the Board of Directors;

                    vi)   if a final decision by a Court having jurisdiction in
the matter shall determine that such indemnification is not lawful (and, in this
respect, both the Company and Indemnitee have been advised that the Securities
and Exchange Commission believes that indemnification for liabilities arising
under the federal securities laws is against public policy and is, therefore,
unenforceable and that claims for indemnification should be submitted to
appropriate courts for adjudication); and

                                       2
<PAGE>

                    vii)  except to the extent the aggregate of losses to be
indemnified thereunder exceeds the sum of (a) such losses for which the
Indemnitee is indemnified pursuant to Section 1 hereof and (b) any additional
amount paid to the Indemnitee pursuant to any D & O Insurance purchased and
maintained by the Company.

               (b)  No indemnity pursuant to Section 1 or 2 hereof shall be paid
by the Company if the action, suit or proceeding with respect to which a claim
for indemnity hereunder is made arose from or is based upon any of the
following:

                    i)    Any solicitation of proxies by Indemnitee, or by a
group of which he was or became a member consisting of two or more persons that
had agreed (whether formally or informally and whether or not in writing) to act
together for the purpose of soliciting proxies, in opposition to any
solicitation of proxies approved by the Board of Directors.

                    ii)   Any activities by Indemnitee that constitute a breach
of or default under any agreement between Indemnitee and the Company.

          4.   Contribution.  If the indemnification provided in Sections 1 and
               ------------
2 hereof is unavailable by reason of a Court decision described in Section
3(a)(vi) hereof based on grounds other than any of those set forth in paragraphs
(i) through (v) of Section 3 (a) hereof, then in respect of any threatened,
pending or completed action, suit or proceeding in which the Company is jointly
liable with Indemnitee (or would be if joined in such action, suit or
proceeding), the Company shall contribute to the amount of expenses (including
attorneys' fees), judgments, fines and amounts paid in settlement actually and
reasonably incurred and paid or payable by Indemnitee in such proportion as is
appropriate to reflect (i) the relative benefits received by the Company on the
one hand and Indemnitee on the other hand from the transaction from which such
action, suit or proceeding arose, and (ii) the relative fault of the Company on
the one hand and of Indemnitee on the other in connection with the events which
resulted in such expenses, judgments, fines or settlement amounts, as well as
any other relevant equitable considerations. The relative fault of the Company
on the one hand and of Indemnitee on the other shall be determined by reference
to, among other things, the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent the circumstances resulting in
such expenses, judgments, fines or settlement amounts. The Company agrees that
it would not be just and equitable if contribution pursuant to this Section 4
were determined by pro rata allocation or any other method of allocation which
does not take account of the foregoing equitable considerations.

          5.   Notification and Defense of Claim.  Not later than thirty (30)
               ---------------------------------
days after receipt by Indemnitee of notice of the commencement of any action,
suit or proceeding, Indemnitee shall, if a claim in respect thereof is to be
made against the Company under this Agreement, notify the Company of the
commencement thereof; but Indemnitee's omission so to notify the Company will
not relieve the Company from any liability which it may have to Indemnitee
otherwise than under this Agreement. With respect to any such action, suit or
proceeding as to which Indemnitee notifies the Company of the commencement
thereof:

               (a)  The Company will be entitled to participate therein at its
own expense.

                                       3
<PAGE>

               (b)  Except as otherwise provided below, to the extent that it
may wish, the Company shall, jointly with any other indemnifying party similarly
notified, be entitled to assume the defense thereof, with counsel reasonably
satisfactory to Indemnitee. After notice from the Company to Indemnitee of its
election to assume the defense thereof, the Company will not be liable to
Indemnitee under this Agreement for any legal or other expenses subsequently
incurred by Indemnitee in connection with the defense thereof, other than
reasonable costs of investigation or as otherwise provided below. Indemnitee
shall have the right to employ its own counsel in such action, suit or
proceeding, but the fees and expenses of such counsel incurred after notice from
the Company of the Company's assumption of the defense thereof shall be at the
expense of Indemnitee unless (i) the employment of counsel by Indemnitee has
been authorized by the Company; (ii) Indemnitee shall have reasonably concluded
that there may be a conflict of interest between the Company and Indemnitee in
the conduct of the defense of such action; or (iii) the Company shall not in
fact have employed counsel to assume the defense of such action; in each of
which cases the fees and expenses of Indemnitee's separate counsel shall be paid
by the Company. The Company shall not be entitled to assume the defense of any
action, suit or proceeding brought by or on behalf of the Company or as to which
Indemnitee shall have made the conclusion provided for in (ii) above.

               (c)  The Company shall not be liable to indemnify Indemnitee
under this Agreement for any amounts paid in settlement of any action or claim
effected without its written consent. The Company shall be permitted to settle
any action except that it shall not settle any action or claim in any manner
which would impose any penalty or limitation on Indemnitee without Indemnitee's
written consent. Neither the Company nor Indemnitee will unreasonably withhold
its consent to any proposed settlement.

          6.   Advancement and Repayment of Expenses.
               -------------------------------------

               (a)  In the event that Indemnitee employs his or her own counsel
pursuant to Sections 5(b)(i) through (iii) above, the Company shall advance to
Indemnitee, prior to any final disposition of any threatened or pending action,
suit or proceeding, whether civil, criminal, administrative or investigative,
any and all reasonable expenses (including legal fees and expenses) incurred in
investigating or defending any such action, suit or proceeding within ten (10)
days after receiving from Indemnitee copies of invoices presented to Indemnitee
for such expenses.

               (b)  Indemnitee agrees that Indemnitee will reimburse the Company
for all reasonable expenses paid by the Company in investigating or defending
any civil or criminal action, suit or proceeding against Indemnitee in the event
and only to the extent it shall be ultimately determined by a final judicial
decision (from which there is no right of appeal) that Indemnitee is not
entitled, under the provisions of the Code, the Bylaws, this Agreement or
otherwise, to be indemnified by the Company for such expenses.

               (c)  Notwithstanding the foregoing, the Company shall not be
required to advance such expenses to Indemnitee in respect of any action arising
from or based upon any of the matters set forth in subsection (b) of Section 3
or if Indemnitee (i) commences any action, suit or proceeding as a plaintiff
unless such advance is specifically approved by a majority of the Board of
Directors or (ii) is a party to an action, suit or proceeding brought by the
Company and approved by a majority of the Board which alleges willful
misappropriation of corporate assets

                                       4
<PAGE>

by Indemnitee, disclosure of confidential information in violation of
Indemnitee's fiduciary or contractual obligations to the Company, or any other
willful and deliberate breach in bad faith of Indemnitee's duty to the Company
or its shareholders.

          7.   Enforcement.
               -----------

               (a)  The Company expressly confirms and agrees that it has
entered into this Agreement and assumed the obligations imposed on the Company
hereby in order to induce Indemnitee to continue as a director, officer,
employee or other agent of the Company, and acknowledges that Indemnitee is
relying upon this Agreement in continuing in such capacity.

               (b)  In the event Indemnitee is required to bring any action to
enforce rights or to collect moneys due under this Agreement and is successful
in such action, the Company shall reimburse Indemnitee for all Indemnitee's
reasonable fees and expenses, including attorney's fees, in bringing and
pursuing such action.

          8.   Subrogation.  In the event of payment under this agreement, the
               -----------
Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all documents required and shall do
all acts that may be necessary to secure such rights and to enable the Company
effectively to bring suit to enforce such rights.

          9.   Continuation of Obligations.  All agreements and obligations of
               ---------------------------
the Company contained herein shall commence upon the date that Indemnitee first
became a member of the Board of Directors or an officer, employee or agent of
the Company, as the case may be, and shall continue during the period Indemnitee
is a director, officer, employee or agent of the Company (or is or was serving
at the request of the Company as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust, employee benefit plan or
other enterprise) and shall continue thereafter so long as Indemnitee shall be
subject to any possible claim or threatened, pending or completed action, suit
or proceeding, whether civil, criminal or investigative, by reason of the fact
that Indemnitee was a director, officer, employee or agent of the Company or
serving in any other capacity referred to herein.

          10.  Survival of Rights.  The rights conferred on Indemnitee by this
               ------------------
Agreement shall continue after Indemnitee has ceased to be a director, officer,
employee or other agent of the Company and shall inure to the benefit of
Indemnitee's heirs, executors and administrators.

          11.  Non-Exclusivity of Rights.  The rights conferred on Indemnitee
               -------------------------
by this Agreement shall not be exclusive of any other right which Indemnitee may
have or hereafter acquire under any statute, provision of the Company's
Certificate of Incorporation or Bylaws, agreement, vote of stockholders or
directors, or otherwise, both as to action in his official capacity and as to
action in another capacity while holding office; provided, however, that this
Agreement shall supersede and replace any prior indemnification agreements
entered into by and between the Company and Indemnitee and that any such prior
indemnification agreement shall be terminated upon the execution of this
Agreement.

          12.  Separability.  Each of the provisions of this Agreement is a
               ------------
separate and distinct agreement and independent of the others, so that if any or
all of the provisions hereof shall be held to be invalid or unenforceable for
any reason, such invalidity or unenforceability

                                       5
<PAGE>

shall not affect the validity or enforceability of the other provisions hereof
or the obligation of the Company to indemnify the Indemnitee to the full extent
provided by the Bylaws or the Code.

          13.  Governing Law.  This Agreement shall be interpreted and
               -------------
enforced in accordance with the laws of the State of Delaware.

          14.  Binding Effect.  This Agreement shall be binding upon
               --------------
Indemnitee and upon the Company, its successors and assigns, and shall inure to
the benefit of Indemnitee, his or her heirs, personal representatives and
assigns and to the benefit of the Company, its successors and assigns.

          15.  Amendment and Termination.  No amendment, modification,
               -------------------------
termination or cancellation of this Agreement shall be effective unless it is in
writing and is signed by both parties hereto.

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
and as of the day and year first above written.

                                        ARTEST CORPORATION

                                        a Delaware corporation

                                        By: ____________________________________

                                        INDEMNITEE

                                        ________________________________________
                                        ((Name))
                                        ((Title))

                              Address:  ________________________________________

                                        ________________________________________

                                       6

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