Document:

<PAGE>

                                                                    EXHIBIT 10.9
================================================================================

                                     Lease

                            FREMONT TECHNOLOGY PARK

================================================================================

                                    Between

                           APPLIED FIBER OPTICS, INC.

                                    (Tenant)

                                      and

                         CARRAMERICA REALTY CORPORATION

                                   (Landlord)
<PAGE>

                                     LEASE

     THIS LEASE (the "Lease") is made as of August 27, 1998 (dated for reference
                      -----
purposes only) between CarrAmerica Realty Corporation, a Maryland corporation
(the "Landlord") and the Tenant as named in the Schedule below.  The term
      --------
"Project" means the six buildings (the "Project Buildings") and other
 -------                                -----------------
improvements commonly known as the "Fremont Technology Park'' located in
                                    -----------------------
Fremont, California, as more particularly described in Exhibit A.  The
                                                       ---------
"Premises" means that portion of the Project Buildings described in the Schedule
 --------
and cross-hatched on Exhibit A, attached hereto.  Those Project Buildings in
                     ---------
which the Premises are located shall be collectively referred to herein as the
"Building", and the other Project Buildings shall be referred to herein as the
 --------
"Other Buildings").  The following schedule (the "Schedule") is an integral part
 ---------------                                  --------
of this Lease.  Terms defined in this Schedule shall have the same meaning
throughout the Lease.

     The following schedule (the "Schedule") is an integral part of this Lease.
                                  --------
Terms defined in this Schedule shall have the same meaning throughout the Lease.

                                   SCHEDULE

1.   Tenant: Applied Fiber Optics, Inc., a California corporation
2.   Premises: 46420 - 46430 Fremont Boulevard, City of Fremont, County of
     Alameda.  California
3.   Rentable Square Feet of the Premises: 54,153 rsf
4.   Tenant's Proportionate Share: 100% of Building and 18.62% of Project (based
     upon a total of 290,840 rentable square feet in the Project)
5.   Lease Deposit: Prepaid Rent = $70,398.90 and Security Deposit = $509,037.80
     (of which up to $422,393.00 may be in the form of a Letter of Credit)
6.   Permitted Use: Office, research, development, final assembly of parts
     manufactured elsewhere, storage, distribution of fiber optic products
7.   Tenant's Real Estate Broker for this Lease: CPS, the Commercial Property
     Services Company
8.   Landlord's Real Estate Broker for this Lease: None
9.   Tenant Improvements, if any: See Section 3.A
10.  Term: Seven Years
11.  Commencement Date: April 1, 1999; provided if Tenant occupies any portion
     of the Premises prior to such date for the purpose of conducting its
     business activities therein, then the Commencement Date shall be revised to
     be the earliest date on which Tenant commenced such business activities
     within the Premises
12.  Termination Date: March 31, 2006; provided if the Commencement Date is
     accelerated as a result of Tenant conducting its business activities within
     the Premises prior to April 1, 1999, then the Termination Date shall be
     also accelerated to be the date which is 84 months after the revised
     Commencement Date, unless the revised Commencement Date is not the first
     day of the month, in which case the Termination Date shall be the date
     which is 84 months after the first day of the calendar month immediately
     following the revised Commencement Date
13.  Parking Spaces: 201
14.  Guarantor: None

                                       1
<PAGE>

15.  Base Rent:

<TABLE>
<CAPTION>
Period                               Monthly Base Rent         Annual Base Rent
------                               -----------------         ----------------
<S>                                  <C>                       <C>
Months 1 through 12 99-00               $70,398.90               $  844,786.80
Months 13 through 24 00-01              $73,106.55               $  877,278.60
Months 25 thought 36 01-02              $75,814.20               $  909,770.40
Months 37 thought 48 02-00              $78,521.85               $  942,262.20
Months 49 thought 60 02-04              $81,229.50               $  974,754.00
Months 61 thought 72 04-05              $83,937.15               $1,007,245.80
Months 73 through 84 05-07              $86,644.80               $1,039,737.60
</TABLE>

LIST OF EXHIBITS:

Exhibit A:   Project Site Plan

Exhibit B:   Landlord's Signage Standards

Exhibit C:   Tenant Improvement Agreement

Exhibit D:   Tenant Improvement Illustrations/Specifications

Exhibit E:   Rules and Regulations

Exhibit F:   Mortgages Currently Affecting the Project

             1.  LEASE AGREEMENT.  On the terms stated in this Lease, Landlord
                 ---------------
leases the Premises to Tenant, and Tenant leases the Premises from Landlord, for
the Term beginning on the Commencement Date and ending on the Termination Date
unless extended or sooner terminated pursuant to this Lease.

                    A.   Commencement Date. The commencement date ("Commencement
                         -----------------
     Date") for this Lease shall be the date set forth in the Schedule. The
     Commencement Date shall not be dependent upon the completion of the "Tenant
     Improvements" (as defined in Section 3).

                    B.   Termination Date. The termination date ("Termination
                         ----------------
     Date") of this Lease shall be the date set forth in the Schedule.

             2.  RENT.
                 ----

                    A.   Types of Rent.  Tenant shall pay the following Rent in
                         -------------
     the form of a check or via wire transfer to Landlord pursuant to
     instructions to be delivered by Landlord to Tenant prior to the
     Commencement Date.

                              (i)    Base Rent in monthly installments in
                                     ---------
          advance, the first monthly installment payable concurrently with the
          execution of this Lease and

                                       2
<PAGE>

          thereafter on or before Ac first day of each month of the Term in the
          amount set forth on the Schedule.

                              (ii)   Operating Cost Share Rent in an amount
                                     -------------------------
          equal to the Tenant's Proportionate Share of the Operating Costs for
          the applicable fiscal year of the Lease, paid monthly in advance in an
          estimated amount. Definitions of Operating Costs and Tenant's
          Proportionate Share, and the method for billing and payment of
          Operating Cost Share Rent are set form in Sections 2B, 2C and 2D.

                              (iii)  Tax Share Rent in an amount equal to the
                                     --------------
          Tenant's Proportionate Share of the Taxes for the applicable fiscal
          year of this Lease, paid monthly in advance in an estimated amount. A
          definition of Taxes and the method for billing and payment of Tax
          Share Rent are set forth in Sections 2B, 2C and 2D.

                              (iv)   Additional Rent in the amount of all costs,
                                     ---------------
          expenses, liabilities, and amounts which Tenant is required to pay
          under this Lease, excluding Base Rent, Operating Cost Share Rent, and
          Tax Share Rent, but including any interest for late payment of any
          item of Rent.

                              (v)    Rent as used in this Lease means Base Rent,
                                     ----
          Operating Cost Share Rent, Tax Share Rent and Additional Rent.
          Tenant's agreement to pay Rent is an independent covenant, with no
          right of setoff, deduction or counterclaim of any kind.

                    B.   Payment of Operating Cost Share Rent and Tax Share
     Rent.

                              (i)    Payment of Estimated Operating Cost Share
                                     -----------------------------------------
          Rent and Tax Share Rent. Landlord shall estimate the Operating Costs
          -----------------------
          and Taxes of the Project by April 1 of each fiscal year, or as soon as
          reasonably possible thereafter. Landlord may revise these estimates
          whenever it obtains more accurate information, such as the final real
          estate tax assessment or tax rate for the Project. Within ten (10)
          days after receiving the original or revised estimate from Landlord,
          Tenant shall pay Landlord one-twelfth (1/12th) of Tenant's
          Proportionate Share of this estimate, multiplied by the number of
          months that have elapsed in the applicable fiscal year to the date of
          such payment including the current month, minus payments previously
          made by Tenant for the months elapsed. On the first day of each month
          thereafter, Tenant shall pay Landlord one-twelfth (l/12th) of Tenant's
          Proportionate Share of this estimate, until a new estimate becomes
          applicable.

                              (ii)   Correction of Operating Cost Share Rent.
                                     ---------------------------------------
          Landlord shall deliver to Tenant a report for the previous fiscal year
          (the "Operating Cost Report") by May 15 of each year, or as soon as
                ---------------------
          reasonably possible thereafter, setting form (a) the actual Operating
          Costs incurred, (b) the amount of Operating Cost Share Rent due from
          Tenant, and (c) the amount of Operating Cost Share Rent paid by
          Tenant. Within twenty (20) days after such delivery, Tenant shall pay
          to Landlord the amount due minus the amount paid. If the amount paid
          exceeds the amount due, Landlord shall apply the excess to Tenant's
          payments of
<PAGE>

          Operating Cost Share Rent next coming due, or refund such excess for
          any overpayments made during the last year of the Term within thirty
          (30) days of the date on which the Operating Cost Report for such year
          is completed.

                              (iii)  Correction of Tax Share Rent. Landlord
                                     ----------------------------
          shall deliver to Tenant a report for the previous fiscal year (the
          "Tax Report") by May 15 of each year, or as soon as reasonably
          possible thereafter, setting forth (a) the actual Taxes, (b) the
          amount of Tax Share Rent due from Tenant, and (c) the amount of Tax
          Share Rent paid by Tenant. Within twenty (20) days after such
          delivery, Tenant shall pay to Landlord the amount due from Tenant
          minus the amount paid by Tenant. If the amount paid exceeds the amount
          due, Landlord shall apply the excess to Tenant's payments of Tax Share
          Rent next coming due, or refund such excess for any overpayments made
          during the last year of the Term within thirty (30) days of the date
          on which the Tax Report for such year is completed.

                    C.   Definitions.

                              (i)    Included Operating Costs. "Operating Costs"
                                     ------------------------   ---------------
          means any expenses, costs and disbursements of any kind other than
          Taxes, paid or incurred by Landlord in connection with the management,
          maintenance, operation, insurance, repair and other related activities
          in connection with any part of the Project and of the personal
          property, fixtures, machinery, equipment, systems and apparatus used
          in connection therewith, including the cost of providing those
          services required to be furnished by Landlord under this Lease and a
          management fee in an amount equal to three percent (3%) of the monthly
          Base Rent payable hereunder. Operating Costs shall also include the
          costs of any capital improvements which are intended to reduce
          Operating Costs (but only to the extent of any actual savings realized
          from such improvements) or improve safety, and those made to keep the
          Project in compliance with governmental requirements applicable from
          time to time or to replace existing capital improvements, facilities
          and equipment within the Building or the common areas of the Project,
          such as the roof membrane and resurfacing of the parking areas
          (collectively, "Included Capital Items"); provided, that the costs of
                          ----------------------
          any Included Capital Item shall be amortized by Landlord, together
          with an amount equal to interest at ten percent (10%) per annum, over
          the estimated useful life of such item and such amortized costs are
          only included in Operating Costs for that portion of the useful life
          of the Included Capital Item which falls within the Term, unless the
          cost of the Included Capital Item is less than Ten Thousand Dollars
          ($10,000) in which case it shall be expensed in the year in which it
          was incurred. If Landlord elects to maintain earthquake insurance,
          then in the event of an earthquake any deductibles payable by Tenant
          hereunder with respect to the Premises shall be amortized over the
          remaining Term of the Lease and paid monthly by Tenant as part of the
          Operating Cost Share Rent. If the Project contains more than one
          building, then Operating Costs shall include (i) all Operating Costs
          fairly allocable to the Building, including all Operating Costs paid
          with respect to the maintenance, repair, replacement and use of the
          Building, and (ii) a proportionate share (based on the gross rentable
          area of the Building as
<PAGE>

          a percentage of the gross leasable area of all of the Buildings in the
          Project) of all Operating Costs which relate to the Project in general
          and arc not fairly allocable to any one building in the Project.

          If the Project is not fully occupied during any portion of any fiscal
year, Landlord may adjust (an "Equitable Adjustment") Operating Costs to equal
                               --------------------
what would have been incurred by Landlord had the Project been fully occupied.
This Equitable Adjustment shall apply only to Operating Costs which are variable
based, upon the occupancy of the Project (i.e., they increase as occupancy of
the Project increases).  Landlord may incorporate the Equitable Adjustment in
its estimates of Operating Costs.

          If Landlord does not furnish any particular service whose cost would
have constituted an Operating Cost to a tenant other than Tenant who has
undertaken to perform such service itself, Operating Costs shall be increased by
the amount which Landlord would have incurred if it had furnished the service to
such tenant.

                              (ii)   Excluded Operating Costs. Operating Costs
                                     ------------------------
          shall not include:

                                     (a)  costs of alterations of tenant
                                          premises;

                                     (b)  costs of capital improvements other
                                          than Included Capital Items;

                                     (c)  interest and principal payments on
                                          mortgages or any other debt costs, or
                                          rental payments on any ground lease of
                                          the Project;

                                     (d)  real estate brokers' leasing
                                          commissions;

                                     (e)  legal fees, space planner fees and
                                          advertising expenses incurred with
                                          regard to leasing the Building or
                                          portions thereof;

                                     (f)  any cost or expenditure for which
                                          Landlord is reimbursed, by insurance
                                          proceeds or otherwise, except by
                                          Operating Cost Share Rent;

                                     (g)  the cost of any service furnished to
                                          any tenant of the Project which
                                          Landlord does not make available to
                                          Tenant;

                                     (h)  depreciation and amortization (except
                                          on any Included Capital Items in the
                                          manner described above;

                                     (i)  franchise or income taxes imposed upon
                                          Landlord, except to the extent imposed
                                          in lieu of all or any part of Taxes;
<PAGE>

                                     (j)  costs of correcting defects in
                                          construction of the Building (as
                                          opposed to the cost of normal repair,
                                          maintenance and replacement expected
                                          with the construction materials and
                                          equipment installed in the Building in
                                          light of their specifications);

                                     (k)  legal and auditing fees which are for
                                          the benefit of Landlord such as
                                          collecting delinquent rents, preparing
                                          tax returns and other financial
                                          statements, and audits other than
                                          those incurred in connection with the
                                          preparation of reports required
                                          pursuant to Section 2B above;

                                     (l)  the wages of any employee for services
                                          not related directly to the
                                          management, maintenance, operation and
                                          repair of the Building;

                                     (m)  fines, penalties and interest;

                                     (n)  any cost for the investigation,
                                          monitoring, removal, cleanup or other
                                          remediation of any Hazardous
                                          Substances discovered in, on or under
                                          the Building or the Project, which was
                                          not caused or contributed to by
                                          Tenant, provided that costs incurred
                                          to respond to a governmental or quasi-
                                          governmental order or mandate shall be
                                          an Included Operating Cost if the
                                          Project is not identified as a source
                                          of such contamination (e.g., all
                                          property owners are required to
                                          conduct routine groundwater monitoring
                                          on their property regardless of
                                          whether their property was or is a
                                          source of any contamination);

                                     (o)  repairs, maintenance or other work
                                          occasioned by condemnation, fire or
                                          other casualty;

                                     (p)  repairs or other work occasioned by
                                          the gross negligence or intentional
                                          misconduct of Landlord or Landlord's
                                          employees, agents or contractors;

                                     (q)  fines, penalties or other costs
                                          incurred due to violations by Landlord
                                          or any other tenant of any
                                          Governmental Requirements;

                                     (r)  costs incurred in connection with the
                                          initial construction of the Building
                                          Shell (as defined below);

                                     (s)  any amounts paid to a person, firm,
                                          corporation, or other entity related
                                          to Landlord which is in excess
<PAGE>

                                          of the amount charged by unaffiliated
                                          parties for comparable goods or
                                          services;

                                     (t)  costs incurred by Landlord for the
                                          operation of Landlord's corporation or
                                          other business entity as opposed to
                                          the operation of the Project, such as
                                          accounting and legal expenses incurred
                                          in connection with selling,
                                          syndicating, financing, mortgaging or
                                          hypothecating Landlord's interest in
                                          the Project or with resolving
                                          employer-employee disputes between
                                          Landlord and its employees; and

                                     (u)  structural repairs to the Building to
                                          the extent they are not required as a
                                          result of Tenant's acts or omissions.

                              (iii)  Taxes. "Taxes" means any and all taxes,
                                     -----   -----
          assessments and charges of any kind, general or special, ordinary or
          extraordinary, levied against the Project, which Landlord shall pay or
          become obligated to pay in connection with the ownership, leasing,
          renting, management, use, occupancy, control or operation of the
          Project or of the personal property, fixtures, machinery, equipment,
          systems and apparatus used in connection therewith. Taxes shall
          include real estate taxes, personal property taxes, sewer rents, water
          rents, special or general assessments, transit taxes, ad valorem
          taxes, and any tax levied on the rents hereunder or the interest of
          Landlord under this Lease (the "Rent Tax"). Taxes shall also include
          all reasonable fees and other reasonable costs and expenses paid by
          Landlord in reviewing any tax and in seeking a refund or reduction of
          any Taxes, whether or not the Landlord is ultimately successful. Taxes
          shall also include any assessments or fees paid to any business park
          owners association, or similar entity, which are imposed against the
          Project pursuant to any Covenants, Conditions and Restrictions
          ("CC&R's") recorded against the Land and any installments of principal
          and interest required to pay any existing or future general or special
          assessments for public improvements, services or benefits, and any
          increases resulting from reassessments imposed in connection with any
          change in ownership or new construction.

          For any year, the amount to be included in Taxes (a) from taxes or
assessments payable in installments, shall be the amount of the installments
(with any interest) due and payable during such year, and (b) from all other
Taxes, shall at Landlord's election be the amount accrued, assessed, or
otherwise imposed for such year or the amount due and payable in such year.  Any
refund or other adjustment to any Taxes by the taxing authority shall apply
during the year for which the adjustment was made (i.e., if Taxes for any tax
year during the Term are adjusted, then such adjustment (whether it involves a
refund or additional payment) shall be made to or by Tenant.  Taxes shall not
include any net income (except Rent Tax), capital, stock, succession, transfer,
franchise, gift, estate or inheritance tax, except to the extent that such tax
shall be imposed in lieu of any portion of Taxes.
<PAGE>

                              (iv)   Lease Year. "Lease Year" means each
                                     ----------   ----------
          consecutive twelve-month period beginning with the Commencement Date,
          except that if the Commencement Date is not the first day of a
          calendar month, then the first Lease Year shall be the period from the
          Commencement Date through the final day of the twelve months after the
          first day of the following month, and each subsequent Lease Year shall
          be the twelve months following the prior Lease Year.

                              (v)    Fiscal Year. "Fiscal Year" means the
                                     -----------   -----------
          calendar year, except that the first fiscal year and the last fiscal
          year of the Term may be a partial calendar year.

                    D.   Computation of Base Rent and Rent Adjustments.

                              (i)    Prorations. If this Lease begins on a day
                                     ----------
          other than the first day of a month, the Base Rent, Operating Cost
          Share Rent and Tax Share Rent shall be prorated for such partial month
          based on the actual number of days in such month. If this Lease begins
          on a day other than the first day, or ends on a day other than the
          last day, of the fiscal year, Operating Cost Share Rent and Tax Share
          Rent shall be prorated for the applicable fiscal year.

                              (ii)   Default Interest. Any sum due from Tenant
                                     ----------------
          to Landlord not paid when due shall bear interest from the date due
          until paid at the lesser of eighteen percent (18%) per annum or the
          maximum rate permitted by law.

                              (iii)  Rent Adjustments. The square footage of the
                                     ----------------
          Premises and the Building set forth in the Schedule are conclusively
          deemed to be the actual square footage thereof, without regard to any
          subsequent remeasurement of the Premises or the Building. If any
          Operating Cost paid in one fiscal year relates to more than one fiscal
          year, Landlord may proportionately allocate such Operating Cost among
          the related fiscal years.

                              (iv)   Books and Records. Landlord shall maintain
                                     -----------------
          books and records reflecting the Operating Costs and Taxes in
          accordance with sound accounting and management practices. Tenant and
          its certified public accountant shall have the right to inspect
          Landlord's records at Landlord's office upon at least seventy-two (72)
          hours' prior notice during normal business hours during the one
          hundred twenty (120) days following the respective delivery of the
          Operating Cost Report or the Tax Report. The results of any such
          inspection shall be kept strictly confidential by Tenant and its
          agents, and Tenant and its certified public accountant must agree
          their contract for such services, to such confidentiality restrictions
          and shall specifically agree that the results shall not be made
          available to any other tenant of the Project. Unless Tenant sends to
          Landlord any written exception to either such report within said one
          hundred twenty (120) day period, such report shall be deemed final and
          accepted by Tenant. Tenant shall pay the amount shown on both reports
          in the manner prescribed in this Lease, whether or not Tenant takes
          any such written exception, without any prejudice to such exception.
          If Tenant makes a timely exception, Landlord shall cause its outside
          certified public accountant or shall select and cause another firm
          with at least five (5) years of experience in auditing the books and
          records of commercial office
<PAGE>

          projects to issue a final and conclusive resolution of Tenant's
          exception. Tenant shall pay the cost of such certification unless
          Landlord's original determination of annual Operating Costs or Taxes
          in the aggregate overstated the amounts thereof by more than five
          percent (5%).

                    (v)  Miscellaneous.  So long as Tenant is in default of any
                         -------------
          obligation under this Lease, Tenant shall nor be entitled to any
          refund of any amount from Landlord. If this Lease is terminated for
          any reason prior to the annual determination of Operating Cost Share
          Rent or Tax Share Rent, either pay shall pay the full amount due to
          the other within fifteen (15) days after Landlord's notice to Tenant
          of the amount when it is determined. Landlord may commingle any
          payments made with respect to Operating Cost Share Rent or Tax Share
          Rent, without payment of interest.

          3. CONSTRUCTION OF BUILDING SHELL.  TENANT IMPROVEMENTS AND
             --------------------------------------------------------
POSSESSION.
----------
               A.   Construction of Building Shell.  Landlord, in its sole and
                    ------------------------------
     absolute discretion, shall select a general contractor ("General
                                                              -------
     Contractor") to construct the "Building Shell" (as defined below) for the
     -----------                    --------------
     Building in accordance with the final drawings, plans and specifications
     (the "Final Plans") dated August 20, 1998 prepared by DES Architects
           -----------
     ("Architect").  As of the date hereof, Tenant has received and approved
       ---------
     such Final Plans, Tenant may submit changes to the Final Plans for
     Landlord's approval; provided that Landlord shall have no obligation to
     approve such change request if it would (i) require a change to the permits
     or approvals previously received by Landlord for the Project, (ii) cause a
     material architectural modification to the Building Shell, or (iii) cause
     any delay in the construction of any portion of the Project not to be
     occupied by Tenant. The "Building Shell" shall mean the building structure,
                              --------------
     exterior walls, exterior glass, floor slab, roof, parking lot, parking lot
     lighting, landscaping and the base for the monument sign for the Building
     (the "Monument Sign"). As part of the construction of the Building
           -------------
     Shell, Landlord shall also be responsible for bringing phone, gas,
     electric, plumbing, fire and water service to the Building (i.e., stubbed
     but not distributed), installing the main fire sprinkler trunks (i.e.,
     installed but not distributed or "dropped"), and the pull section and meter
     box for utilities. The base for the Monument Sign shall comply with
     Landlord's Signage Standards attached hereto as Exhibit B). Landlord shall
                                                     ---------
     be responsible for all costs associated with the construction of the
     Building Shell, including the design and permitting costs associated with
     the Building Shell. The Building Shell does not include any elevators,
     stairs, HVAC, roof screens or thermal insulation. In the event of any
     conflict between the Preliminary Plans and/or Final Plans and the
     definition of "Building Shell" contained herein, the parties agree that the
     definitions contained in this Lease shall control any improvements made by
     Landlord which do not constitute part of the "Building Shell" shall be
     deemed to be part of the "Tenant Improvements".
                               -------------------

               B.   Construction of Tenant Improvements.  Except as provided in
                    -----------------------------------
     Section 3.C below, Landlord shall have no responsibility for the
     construction of the Tenant Improvement. Tenant, at Tenant's sole cost and
     expense (but subject to Section 3.C
<PAGE>

     below), shall cause the Tenant Improvements to be constructed within the
     Building in accordance with the "Tenant Improvement Agreement" attached
                                      ----------------------------
     hereto as Exhibit C and the "Tenant Improvement Guidelines", attached
               ---------          -----------------------------
     hereto as Exhibit D.  Commencing on the "Access Date" (as defined in the
               ---------                      -----------
     Tenant Improvement Agreement, Tenant shall be granted access to the
     Premises to commence construction of the Tenant Improvements Landlord
     agrees that Tenant may choose to not construct the interior Tenant
     Improvements all at once (i.e., Tenant may choose to perform certain
     interior Tenant Improvements within the Premises at a later date, subject
     to the limitations set forth in Section 3.C below).

               C.   Tenant Improvement Allowance.  Landlord shall provide the
                    ----------------------------
following "Tenant Improvement Allowance" in connection with the construction of
           ----------------------------
the Tenant Improvements on the terms and conditions set forth below. All of the
Tenant Improvement Allowance must be used on or prior to September 30, 1999 and
Landlord shall have no obligation to make any portion of the Tenant Improvement
Allowance available to Tenant after such date. The Tenant Improvement Allowance
shall be applied by Landlord against the costs and expenses incurred in
connection with the performance of the Tenant Improvement work, including
without limitation, the design, permitting, procurement of supplies and
materials, construction and installation of the Tenant Improvements.

                    (i)  First Level Tenant Improvement Allowance.  Included in
                         ----------------------------------------
          the Base Rent payable hereunder, Landlord shall provide up to
          $1,083,060.00 (i.e., $20.00 per square foot of the Building) (the
          "First Level Tenant Improvement Allowance").
           ----------------------------------------

                    (ii) Second Level Tenant Improvement Allowance.  A second
                         -----------------------------------------
          level Tenant Improvement Allowance ("Second Level Tenant Improvement
                                               -------------------------------
          Allowance") of up to $433,224.00 (i.e., $8.00 per square foot of the
          ---------
          Building) shall be also made available by Landlord to Tenant for the
          construction of the Tenant Improvements; provided that for each dollar
          ($1.00) of the Second Level Tenant Improvement Allowance used by
          Landlord for the Tenant Improvements, the monthly Base Rent payable
          hereunder shall be increased by $0.0166 per square foot per month.
          Thus, if all of the Second Level Tenant Improvement Allowance is used,
          the initial monthly Base Rent payable hereunder would be increased by
          $7,191.52 (i.e., $433,224.00 x $0.0166/sq.ft.). In the event any
          portion of the Second Level Tenant Improvement Allowance is used,
          Landlord and Tenant agree to execute an amendment to this Lease to
          increase the amount of Base Rent payable hereunder in the manner
          described above and at such time Tenant shall be required to pay to
          Landlord in a single cash lump sum all Base Rent increases for those
          months which preceded the date of such amendment.

               D.   Tenant's Possession/Condition of Premises and Project.
                    -----------------------------------------------------
     Tenant's taking possession of any portion of the Premises shall be
     conclusive evidence that the Premises and Project were in good order,
     repair and condition, subject only to those "punch list items" noted in
     writing to Landlord within the thirty (30) day period immediately following
     the Commencement Date, and to latent construction defects noted
<PAGE>

     in writing to Landlord within the twelve (12) month period immediately
     following the Commencement Date. Landlord shall correct any punch list
     items and/or latent construction defects which are timely noted by Tenant
     in writing to Landlord as soon as commercially reasonable following
     Landlord's receipt of Tenant's written notice regarding the same.

          4.  SERVICES AND UTILITIES.  Tenant shall promptly pay, as the same
              ----------------------
become due, all charges for water, gas, electricity, telephone, sewer service,
waste pick-up and any other utilities, materials and services furnished directly
to or used by Tenant on or about the Premises during the Term, including without
limitation, (i) meter, use and/or connection fees, hook-up fees, or standby fees
(excluding any connection fees or hook-up fees which relate to making the
existing electrical, gas, and water service available to the Premises as of the
Commencement Date), and (ii) penalties for discontinued interrupted service. If
any utility service is not separately metered to the Premises, then Tenant shall
pay its pro rata share of the cost of such utility service with all others
served by the service not separately metered. However, if Landlord reasonably
determines that Tenant is using a disproportionate amount of any utility service
not separately metered. then Landlord at its election may (i) periodically
charge Tenant, as Additional Rent, a sum equal to Landlord's reasonable estimate
of the cost of Tenant's excess use of such utility service, or (ii) install, at
Tenant's expense, a separate meter to measure the utility service supplied to
the Premises. Any interruption or cessation of utilities resulting from any
causes, including any entry for repairs pursuant to this Lease, and any
renovation, redecoration or rehabilitation of any area of the Project shall not
render Landlord liable for damages to either person or property or for
interruption or loss to Tenant's business, nor be construed as an eviction of
Tenant, nor work an abatement of any portion of Rent, nor relieve Tenant from
fulfillment of any covenant or agreement hereof; provided, however, in the event
that an interruption of the Project services causes the Premises (or any portion
thereof) to be untenantable for a period of at least five (5) consecutive
business days, and such interruption was caused by the negligence or willful
misconduct of Landlord or its agents, employees or contractors, then monthly
Rent shall be proportionately abated for such untenantable portion of the
Premises.

          5.   ALTERATIONS.
               -----------

                    A.  Landlord's Consent and Conditions.  Tenant shall not
                        ---------------------------------
make any improvements or alterations to the Premises (the "Work") without in
                                                           ----
each instance submitting plans and specifications for the Work to Landlord and
obtaining Landlord's prior written consent, unless (a) the cost thereof is less
than $20.000, (b) such Work does not impact the base structural components or
systems of the Building, (c) such Work will not impact any other tenant's
premises, and (d) such Work is not visible from outside the Premises.  However,
even if Landlord's prior written consent is not required Tenant shall provide
Landlord with prior written notice at least five (5) days in advance of
commencing the Work so that Landlord may post and record a notice of
nonresponsibility or other notices deemed appropriate before the commencement or
such Work.  Tenant shall pay Landlord's actual out-of-pocket costs incurred, if
any, for the review of all of the plans and all other items submitted by Tenant.
<PAGE>

          Tenant shall pay for the cost of all Work, including the cost of any
and all approvals, permits, fees and other charges which may be required as a
condition of performing such Work.

          The following requirements shall apply to all Work:

                    (i)   Prior to commencement, Tenant shall furnish to
          Landlord building permits, certificates of insurance satisfactory to
          Landlord, and for any Work costing in excess of $20.000, at Landlord's
          request, security for payment of all costs.

                    (ii)  Tenant shall perform all Work so as to maintain peace
          and harmony among other contractors serving the Project and shall
          avoid interference with other work to be performed or services to be
          rendered in the Project.

                    (iii) The Work shall be performed in a good and workmanlike
          manner, meeting the standard for construction and quality of materials
          in the Building, and shall comply with all insurance requirements and
          all applicable governmental laws, ordinances and regulations
          ("Governmental Requirements").
            -------------------------

                    (iv)  Tenant shall perform all Work so as to minimize or
          prevent disruption to other tenants, and Tenant shall comply with all
          reasonable requests of Landlord in response to complaints from other
          tenants.

                    (v)   Tenant shall perform all Work in compliance with any
          reasonable "Policies, Rules and Procedures for Construction Projects"
          which may be in effect at the time the Work is performed so long as
          Tenant has received written notice of the same at the time Landlord
          gives its consent to the Work.

                    (vi)  Tenant shall permit Landlord to supervise all Work.
          Landlord may charge a supervisory fee not to exceed fifteen percent
          (15%) of labor, material, and all other costs of the Work, if
          Landlord's employees or contractors perform the Work.

                    (vii) Upon completion, Tenant shall furnish Landlord with
          contractor's affidavits and full and final statutory waivers of liens,
          as-built plans and specifications, and receipted bills covering all
          labor and materials, and all other close-out documentation related to
          the Work, including any other information required under any
          "Policies, Rules and Procedures for Construction Projects" which may
          be in effect at such time.

               B.  Damage to Systems.  If any part of the mechanical,
                   -----------------
     electrical or other systems in the Premises (e.g., HVAC, life safety or
     automatic fire extinguisher/sprinkler system) shall be damaged during the
     performance of the Work, Tenant shall promptly notify Landlord, and
     Landlord shall repair such damage at Tenant's expense, but only to the
     extent (i) such damage was not caused by Landlord or Landlord's employees,
     agents or contractors, or (ii) such costs are not covered by insurance
     carried by Landlord or Tenant pursuant to Section 9). Landlord may also at
     any reasonable time make any repairs or alterations which Landlord deems
     necessary for the safety or protection of the Project, or which Landlord is
     required to make by any court or pursuant to any
<PAGE>

     Governmental Requirement. The cost of any repairs made by Landlord on
     account of Tenant's default, or on account of the misuse or neglect by
     Tenant or its invitees, contractors or agents anywhere in the Project,
     shall become Additional Rent payable by Tenant on demand.

               C.  No Liens.  Tenant has no authority to cause or permit any
                   --------
     lien or encumbrance of any kind to affect Landlord's interest in the
     Project; any such lien or encumbrance shall attach to Tenant's interest
     only. If any mechanic's lien shall be filed or claim of lien made for work
     or materials furnished to Tenant, then Tenant shall at its expense within
     ten (10) days after receipt of written notice from Landlord either
     discharge or contest the lien or claim. If Tenant contests the lien or
     claim, then Tenant shall (i) within such ten (10) day period, provide
     Landlord adequate security for the lien or claim, (ii) contest the lien or
     claim in good faith by appropriate proceedings that operate to stay its
     enforcement, and (iii) pay promptly any final adverse judgment entered in
     any such proceeding. If Tenant does not comply with these requirements,
     Landlord may discharge the lien or claim, and the amount paid, as well as
     attorney's fees and other expenses incurred by Landlord, shall become
     Additional Rent payable by Tenant on demand.

               D.  Ownership of Improvements.  All Work as defined in this
                   -------------------------
     Section 5, including partitions, hardware, equipment, machinery, and all
     other improvements installed or constructed in the Premises by Tenant
     (collectively, "Tenant's Property"), shall (i) remain Tenant's legal
                     -----------------
     property during shall (i) remain Tenant's legal property during the Term of
     this Lease and shall be insured solely by Tenant pursuant to Section 8C(2),
     and become Landlord's property upon the termination of this Lease without
     compensation to Tenant (with the exception of any trade fixtures,
     furniture, moveable equipment and other personal property which shall
     remain Tenant's legal property and shall be removed by Tenant at the end of
     the Term or earlier termination of the Lease pursuant to Section 5.E
     below), and (ii) at Landlord's election (which shall be made at the time
     Landlord gives its consent to the performance of such construction or
     installation work, including the Tenant Improvements), Landlord may require
     that Tenant's Property either (a) be surrendered to Landlord with the
     Premises at the termination of the Lease or of Tenant's right to
     possession, or (b) be removed in accordance with Subsection 5E below.

               E.  Removal Upon Termination.  Upon the termination of this
                   ------------------------
     Lease or Tenant's right of possession Tenant shall remove from the Premises
     and Project its trade fixtures, furniture, moveable equipment and other
     personal property, any improvements and Tenant's Property which Landlord
     has elected to be removed by Tenant pursuant to Section 5D, and any
     improvements by Tenant to any portion of the Project other than the
     Premises. Unless otherwise specified by Landlord at the time Landlord
     approves the plans for the Tenant Improvements, Tenant shall not be
     required to remove any of the initial Tenant Improvements constructed
     within the Premises pursuant to Exhibit C. Tenant shall repair all damage
     caused by the installation or removal of the foregoing items. If Tenant
     does not timely remove such property, then Tenant shall be conclusively
     presumed to have, at Landlord's election (i) conveyed such property to
     Landlord without compensation or (ii) abandoned such property, and Landlord
     may dispose of or score any part thereof in any manner at Tenant's sole
     cost, without waiving Landlord's right to
<PAGE>

     claim from Tenant all expenses arising out of Tenant's failure to remove
     the property, and without liability to Tenant or any other person. Landlord
     shall have no duty to be a bailee of any such personal property. If
     Landlord elects abandonment. Tenant shall pay to Landlord, upon demand, any
     expenses incurred for disposition.

          6. USE OF PREMISES.
             ---------------

               A.  Limitation on Use.  Tenant shall use the Premises only for
                   -----------------
     the Permitted Use stated in the Schedule. Tenant shall not allow any use of
     the Premises which will negatively affect the cost of coverage of
     Landlord's insurance on the Project. Tenant shall not allow any inflammable
     or explosive liquids or materials to be kept on the Premises. Tenant shall
     not allow any use of the Premises which would cause the value or utility of
     any part of the Premises to diminish or would unreasonably interfere with
     any other tenant or with the operation of the Project by Landlord. Tenant
     shall not permit any nuisance or waste upon the Premises, or allow any
     offensive noise or odor in or around the Premises. At the end of each
     business day, or more frequently if necessary, Tenant shall deposit all
     garbage and other trash (excluding any inflammable, explosive and/or
     hazardous materials) in trash bins or containers approved by Landlord in
     locations designated by Landlord from time to time. If any governmental
     authority shall deem the Premises to be a "place of public accommodation"
     under the Americans with Disabilities Act or any other comparable law as a
     result of Tenant's use, Tenant shall either modify its use to cause such
     authority to rescind its designation or be responsible for any alterations,
     structural or otherwise, required to be made to the Building or the
     Premises under such laws; provided that Tenant shall have no obligation to
     make any alterations to rectify any non-compliance matter which existed as
     of the Commencement Date.

               B.  Signs.  Tenant shall not place on any portion of the
                   -----
     Premises any sign, placard, lettering, banner, displays or other
     advertising or communicative material which is visible from the exterior of
     the Building without the prior written approval of Landlord. Any approved
     signs shall strictly conform to all Governmental Restrictions, any CC&R's
     recorded against the Project, and any sign criteria which may be
     established by Landlord and in effect at the time, and shall be installed
     (and removed upon the Termination Date) at Tenant's expense. Tenant shall
     maintain such signs in good condition and repair. Landlord current Signage
     Standards are attached hereto as Exhibit B.

               C.  Parking.  Tenant shall have the right to park in the
                   -------
     Project's parking facilities in common with other tenants of the Project
     upon terms and conditions, as may from time to time be established by
     Landlord. Tenant agrees not to overburden the parking facilities and agrees
     to cooperate with Landlord and other tenants in the Project in the use of
     the parking facilities. Landlord reserves the right in its discretion to
     determine whether the parking facilities are becoming crowded and to
     allocate and assign parking spaces among Tenant and the other tenants in
     the Project. Landlord shall not be liable to Tenant, nor shall this Lease
     be affected, if any parking is impaired by moratorium, initiative,
     referendum, law, ordinance, regulation or order passed, issued or made by
     any governmental or quasi-governmental body.
<PAGE>

               D.   Prohibition Against Use of Roof and Structure of Building.
                    ---------------------------------------------------------
     During the period in which Tenant leases the entire space within the
     Building, Tenant shall have access to the roof of the Building to perform
     its obligations hereunder and for the installation, maintenance and repair
     of a satellite dish. other telecommunications and/or HVAC equipment
     (collectively "Roof Equipment") for Tenant's own use (i.e.. Tenant shall
     not rent space on the roof to third parties). Tenant shall not install any
     Roof Equipment on any of the roofs without the prior written consent of
     Landlord, which consent shall not be unreasonably withheld. Tenant shall
     obtain all necessary approvals at its sole expense and comply with all
     applicable Governmental Requirements and any reasonable installation and
     screening requirements imposed by Landlord. For instance, the Roof
     Equipment shall be screened so that it is not visible from the public
     streets surrounding the Project. Any work performed by Tenant on the roof
     shall be subject to the terms and conditions set forth in Section 5 (i.e.,
     the Alterations provision). Tenant shall be solely responsible for
     repairing any damage to the roof and or Building caused by Tenant's
     installation, operation or removal of such Roof Equipment. Upon the
     termination of this Lease for any reason, or the expiration of this Lease
     as to such Building, Tenant, at its sole cost and expense, shall at
     Landlord's request, remove any or all of the Roof Equipment from me
     Building(s) and repair any damage caused to the roof or Building during
     such removal. Tenant's use of the roof (including any Roof Equipment
     located thereon) shall not interfere with any other Tenant's use and
     enjoyment of its space within the Project. Nothing herein shall limit
     Landlord's rights under Section 11.N, or require Landlord to obtain
     Tenant's consent prior to exercising such rights.

          7. GOVERNMENTAL REQUIREMENTS AND BUILDING RULES.  Tenant shall comply
             --------------------------------------------
with all Governmental Requirements applying to its use of the Premises. Tenant
shall also comply with all reasonable rules for the Project which may be
established and amended from time to time by Landlord. The present rules and
regulations are contained in Exhibit E. Notwithstanding the foregoing, Tenant
shall not be responsible for making any capital or structural improvements to
the Premises, unless such improvements are required solely as a result of any
other alterations or improvements made by Tenant, or Tenant's particular use;
provided that such costs to the extent they are Included Capital Items may be
amortized and passed through to Tenant (and, if applicable, other tenants in the
Project) pursuant to the terms and conditions set forth in Section 2). Failure
by another tenant to comply with the rules or failure by Landlord to enforce
them shall not relieve Tenant of its obligation to comply with the rules or make
Landlord responsible to Tenant in any way. Landlord shall use reasonable efforts
to apply the rules and regulations uniformly with respect to Tenant and tenants
in the Project under leases containing rules and regulations similar to this
Lease. In the event of alterations and repairs performed by Tenant, Tenant shall
comply with the provisions of Section 5 of this Lease and any applicable
"Policies, Rules and Regulations for Construction Projects" which may be
established by Landlord and in effect at the time.

          8. REPAIR AND MAINTENANCE.
             ----------------------

                    A.   Landlord's Obligations.  Landlord shall keep in good
                         ----------------------
     order, condition and repair (i) the structural parts of the Building, which
     structural pans include only the foundation and subflooring of the Building
     and the structural condition of the roof and
<PAGE>

     the exterior walls of the Building (but excluding the interior surfaces of
     exterior walls and exterior and interior of all windows, doors, ceiling and
     plateglass which shall be maintained and repaired by Tenant), (ii) the roof
     membrane, and (iii) the common areas of the Project. The costs incurred by
     Landlord to perform the foregoing obligations to the extent they are deemed
     "Operating Costs" (as defined in Section 2C) shall be passed through to
     Tenant and other tenants in the Project, except that any damage to any of
     the foregoing caused by the negligence or willful acts or omissions of
     Tenant or of Tenant's agents, employees or invitees, or by reason of the
     failure of Tenant to perform or comply with any terms of this Lease, or
     caused by Tenant or Tenant's agents, employees or contractors during the
     performance of the Work shall be repaired by Landlord, solely at Tenant's
     expense, or at Landlord's election, such repairs shall be made by Tenant,
     at Tenant's expense, with contractors approved by Landlord. It is an
     express condition precedent to all obligations of Landlord to repair and
     maintain that Tenant shall have notified Landlord of the need for such
     repairs or maintenance. Tenant waives the provisions of Sections 1941 and
     1942 of the California Civil Code and any similar or successor law
     regarding Tenant's right to make repairs and deduct the expenses of such
     repairs from the Rent due under this Lease.

               B.  Tenant's Obligations.  Tenant shall at all times and at its
                   --------------------
     own expense clean, keep and maintain in good order, condition and repair
     every part of the Premises (including Tenant's fixtures and personal
     property) which is not within Landlord's obligation pursuant to Section 8A.
     Tenant's repair and maintenance obligations shall include, all plumbing and
     sewage facilities within the Premises, fixtures, interior walls and
     ceiling, floors, windows, doors, entrances, plateglass. showcases,
     skylights, all electrical facilities and equipment, including lighting
     fixtures, lamps, fans and any exhaust equipment and systems, electrical
     motors and all other appliances and equipment of every kind and nature
     located in, upon or about the Premises. Tenant shall also be responsible
     for all pest control within the Premises. Tenant shall obtain HVAC systems
     preventive maintenance contracts with bimonthly or monthly service in
     accordance with manufacturer recommendations, which shall be subject to the
     reasonable prior written approval of Landlord and paid for by Tenant, and
     which shall provide for and include replacement of filters, oiling and
     lubricating of machinery, parts replacement, adjustment of drive belts, oil
     changes and other preventive maintenance, including annual maintenance of
     duct work, interior unit drains and caulking at sheet metal, and recaulking
     of jacks and vents on an annual basis. Tenant shall have the benefit of all
     warranties available to Landlord regarding the equipment in such HVAC
     systems. Alternatively, Landlord may elect to perform all repairs and
     maintenance itself, at Tenant's expense, to the Building's mechanical,
     electrical or other systems in the Premises (e.g., HVAC, life safety and
     automatic fire extinguisher/sprinkler systems). Landlord may also perform
     any maintenance or repairs itself, at Tenant's expense, to the extent
     Tenant fails to perform such maintenance or repairs as required herein;
     provided that Tenant has failed to complete such repairs within thirty (30)
     days of receipt of Landlord's written notice regarding the same (or
     commenced such repairs within such 30-day period and diligently thereafter
     completed such repairs within sixty (60) days of the receipt of Landlord's
     written notice if the nature of such repairs required more than thirty
     days).

          9. WAIVER OF CLAIMS: INDEMNIFICATION: INSURANCE.
             --------------------------------------------
<PAGE>

               A.   Waiver of Claims.  To the extent permitted by law, Tenant
                    ----------------
     waives any claims it may have against Landlord or its officers, directors,
     employees or agents for business interruption or damage to property
     sustained by Tenant as the result of any act or omission of Landlord, its
     agents or employees. To the extent permitted by law, Landlord waives any
     claims it may have against Tenant or its officers, directors, employees or
     agents for loss of rents (other than Rent) or damage to properly sustained
     by Landlord as the result of any act or omission of Tenant, its agents or
     employees.

               B.   Indemnification.  Tenant shall indemnify, defend and hold
                    ---------------
     harmless Landlord and its officers, directors, employees and agents against
     any claim by any third party for injury to any person or damage to or loss
     of any property occurring in the Project and arising from the use of the
     Premises or from any other act, omission, negligence or intentional
     misconduct of Tenant, its employees, agents, or invitees, excluding any
     claims by third parties for injuries, damages or losses solely and
     proximately caused by the negligence or intentional conduct of Landlord or
     its agents or employees. Tenant's obligations under this section shall
     survive the termination of this Lease.

          Landlord shall indemnify, defend and hold harmless Tenant and its
officers, directors, employees and agents against any claim by any third party
for injury or damage to person or the Premises to the extent caused by the
negligence or intentional misconduct of Landlord or any of Landlord's employees
or agents.  Landlord's obligations under this section shall survive the
termination of this Lease.

               C.   Tenant's Insurance.  Tenant shall maintain insurance as
                    ------------------
     follows, with such other terms, coverages and insurers, as Landlord shall
     reasonably require from time to time, provided such terms and conditions
     shall not exceed those customarily required in similar buildings located in
     the vicinity of the Building:

                    (i)   Commercial general liability insurance, with (a)
contractual liability including the indemnification provisions contained in this
Lease, (b) a severability of interest endorsement, (c) limits of not less than
Two Million Dollars ($2,000.000) combined single limit per occurrence and not
less than Two Million Dollars ($2,000,000) in the aggregate for bodily injury,
sickness or death, and property damage, and umbrella coverage of not less than
Five Million Dollars ($5,000,000).

                    (ii)  Property Insurance against "All Risks" of physical
loss covering the replacement cost of all improvements, fixtures and personal
property and business interruption. Tenant waives all rights of subrogation, and
Tenant's property insurance shall include a waiver of subrogation in favor of
Landlord.

                    (iii) Workers' compensation or similar insurance in form and
amounts required by law, and Employer's Liability with not less than the
following limits:

                    Each Accident                 $500,000
                    Disease--Policy Limit         $500,000
                    Disease-Each Employee         $500,000
<PAGE>

Such insurance shall contain a waiver of subrogation provision in favor of
Landlord and its agents.

          Tenant's insurance shall be primary and not contributory to that
carried by Landlord, its agents, or mortgagee. Landlord, and if any, Landlord's
building manager or agent, mortgagee and ground lessor shall be named as
additional insureds as respects to insurance required of the Tenant in Section
9C(1). The company or companies writing any insurance which Tenant is required
to maintain under this Lease, as well as the form of such insurance, shall at
all times be subject to Landlord's reasonable approval, and any such company
shall be licensed to do business in the state in which the Building is located.
Such insurance companies shall have a A.M. Best rating of A VI or better.

               (iv) Tenant shall cause any contractor of Tenant performing work
on the Premises to maintain insurance as follows, with such other terms,
coverages and insurers, as Landlord shall reasonably require from time to time:

                         (a) Commercial General Liability Insurance, including
                         contractor's liability coverage, contractual liability
                         coverage, completed operations coverage, broad form
                         property damage endorsement, and contractor's
                         protective liability coverage, to afford protection
                         with limits, for each occurrence, of not less than One
                         Million Dollars ($1,000,000) with respect to personal
                         injury, death or property damage.

                         (b) Workers' compensation or similar insurance in form
                         and amounts required by law, and Employer's Liability
                         with not less than the following limits:

                    Each Accident                 $500,000
                    Disease-Policy Limit          $500,000
                    Disease-Each Employee         $500,000

          Such insurance shall contain a waiver of subrogation provision in
favor of Landlord and its agents.

          Tenant's contractor's insurance shall be primary and not contributory
to that carried by Tenant, Landlord, their agents or mortgagees. Tenant and
Landlord, and if any, Landlord's building manager or agent, mortgagee or ground
lessor shall be named as additional insured on Tenant's contractor's insurance
policies.

               D.   Insurance Certificates.  Tenant shall deliver to Landlord
                    ----------------------
     certificates evidence all required insurance no later than five (5) days
     prior to the Commencement Date and each renewal date. Each certificate will
     provide for thirty (30) days prior written notice or cancellation to
     Landlord and Tenant.

               E.   Landlord's Insurance.  Landlord shall maintain "All-Risk"
                    --------------------
     property insurance at replacement cost. including loss of rents, on the
     Building, and commercial general liability insurance policies covering the
     common areas of the Project, each with such terms, coverages and conditions
     as are normally carried by reasonably prudent
<PAGE>

owners of properties similar to the Project. With respect to property insurance.
Landlord and Tenant mutually waive all rights of subrogation, and the respective
"All-Risk" coverage property insurance policies carried by Landlord and Tenant
shall contain enforceable waiver of subrogation endorsements.

     10.  FIRE AND OTHER CASUALTY.
          -----------------------

               A.   Termination. If a fire or other casualty causes damage to
                    -----------
the Building or the Premises, and sufficient insurance proceeds will be
available to Landlord to cover the cost of any restoration to the Building and
the Premises, Landlord shall engage a registered architect to certify within one
(1) month of the casualty to both Landlord and Tenant the amount of time needed
to restore the Building and the Premises to tenantability, using standard
working methods without the payment of overtime and other premiums. If the time
needed exceeds nine (9) months from the date of the casualty, or two (2) months
from the date of the casualty if the restoration would begin during the last
twelve (12) months of the Lease, then in the case of the Premises, either
Landlord or Tenant may terminate this Lease, and in the case of the Building
(during any period in which Tenant does not lease the entire Building), Landlord
may terminate this Lease, by notice to the other party within ten (10) days
after the notifying party's receipt of the architect's certificate. If
sufficient insurance proceeds will not be available to Landlord to cover the
cost of any restoration to the Building or the Premises and the cost of such
restoration will exceed $350,000, then Landlord may terminate this Lease by
written notice to Tenant. Any termination pursuant to this Section 10A shall be
effective thirty (30) days from the date of such termination notice and Rent
shall be paid by Tenant to that date. with an abatement for any portion of the
Premises which has been untenantable after the casualty.

               B.   Restoration. If a casualty causes damage to the Building or
                    -----------
the Premises but this Lease is not terminated for any reason, then subject to
the rights of any mortgagees or ground lessors. Landlord shall obtain the
applicable insurance proceeds and diligently restore the Building and the
Premises subject to current Governmental Requirements. Landlord's obligation,
should it elect or be obligated to repair or rebuild, shall be limited to the
Building Shell and interior improvements substantially similar to the initial
Tenant Improvements; provided in no event shall Landlord have any obligation to
incur more than $25.00 per rentable square foot for such interior improvements.
Tenant shall, at Tenant's expense, replace or fully repair its damaged
improvements (including any Tenant Improvements in excess of $25.00 per rentable
square foot), personal property and fixtures. Rent shall be abated on a per diem
basis during the restoration for any portion of the Premises which is
untenantable, except to the extent that the casualty was caused by the
negligence or intentional misconduct of Tenant, its agents or employees (unless
such rent loss is covered by Landlord's third party insurance coverage). Tenant
shall not be entitled to any compensation or damages from Landlord for loss of
the use of the Premises, damage to Tenant's personal property and trade fixtures
or any inconvenience occasioned by such damage, repair or restoration. Tenant
hereby waives the provisions of Section 1932, Subdivision 2, and Section 1933,
<PAGE>

     Subdivision 4, of the California Civil Code, and the provisions of any
     similar law hereinafter enacted.

          11.  EMINENT DOMAIN. If a part of the Project is taken by eminent
               --------------
domain or deed in lieu thereof which is so substantial that the Premises cannot
reasonably be used by Tenant for the operation of its business, then either
party may terminate this Lease effective as of the date of the taking. If any
substantial opinion of the Project is taken without affecting the Premises, then
Landlord may terminate this Lease as of the date of such taking. Rent shall
abate from the date of the taking in proportion to any part of the Premises
taken. The entire award for a taking of any kind shall be paid to Landlord, and
Tenant shall have no right to share in the award; provided, however, that
nothing contained herein shall be deemed to give Landlord any interest in or
require Tenant to assign to Landlord any separate award made to Tenant for the
taking of Tenant's personal property and trade fixtures, or its relocation
costs. All obligations accrued to the date of the taking shall be performed by
the party liable to perform said obligations as set forth herein.

          12.  RIGHTS RESERVED TO LANDLORD. Landlord may exercise at any time
               ---------------------------
any of the following rights respecting the operation of the Project without
liability to Tenant of any kind:

                    A.   Name.  To change the name of all or any of the
                         ----
     Buildings or the Project, or the street address of the Buildings or the
     suite number(s) of the Premises. Notwithstanding the foregoing. Landlord
     agrees that Tenant shall have the right to change the name of the Project
     during any period in which Tenant leases all of the Project Buildings
     (including a binding obligation to lease those Project Buildings which have
     yet to be built). The name chosen by Tenant shall be subject to Landlord's
     reasonable approval and must contain Tenant's name in it.

                    B.   Signs.  To install, modify and/or maintain any signs on
                         -----
     the exterior and in the interior of the Buildings or on the Project, and to
     approve at its sole discretion, prior to installation, any of Tenant's
     signs in the Premises visible from the common areas or the exterior of the
     Building.

                    C.   Window Treatments. To approve, at its discretion, prior
                         -----------------
     to installation, any shades, blinds, ventilators or window treatments of
     any kind, as well as any lighting within the Premises that may be visible
     from the exterior of the Building or any interior common area.

                    D.   Keys. To retain and use at any time passkeys to enter
                         ----
     the Premises or any door within the Premises. Tenant shall not alter or add
     any lock or bolt.

                    E.   Access.  To have access to the Premises with twenty
                         ------
     four hour prior notice (except in the case of an emergency in which case
     Landlord shall have the right to immediate access) to inspect the Premises,
     and to perform its obligations, or make repairs. alterations, additions or
     improvements, as permitted by this Lease.
<PAGE>

                    F.   Preparation for Reoccupancy. To decorate, remodel,
                         ---------------------------
     repair, alter or otherwise prepare the Premises for reoccupancy at any time
     after Tenant abandons the Premises, without relieving Tenant of any
     obligation to pay Rent.

                    G.   Heavy Articles.  To approve the weight, size. placement
                         --------------
     and time and manner of movement within the Building of any safe, central
     filing system or other heavy article of Tenant's property. Tenant shall
     move its property entirely at its own risk.

                    H.   Show Premises.  To show the Premises to prospective
                         -------------
     purchasers, tenants, brokers, lenders, mortgagees, investors, rating
     agencies or others at any reasonable time, provided that Landlord gives at
     least 24 hours prior notice to Tenant and does not materially interfere
     with Tenant's use of the Premises.

                    I.   Relocation of Tenant.  Intentionally omitted.
                         --------------------

                    J.   Use of Lockbox. To designate a lockbox collection agent
                         --------------
     for collections of amounts due Landlord. In that case, the date of payment
     of Rent or other sums shall be the date of the agent's receipt of such
     payment or the date of actual collection if payment is made in the form of
     a negotiable instrument thereafter dishonored upon presentment. However, in
     the event of any monetary default beyond any applicable cure period,
     Landlord may reject any payment for all purposes as of the date of receipt
     or actual collection by mailing to Tenant within 21 days after such receipt
     or collection a check equal to the amount sent by Tenant.

                    K.   Repairs and Alterations. With reasonable prior notice
                         -----------------------
     to Tenant, to make repairs or alterations to the Project and in doing so
     transport any required material through the Premises, to close entrances,
     doors, corridors, elevators and other facilities in the Project, to open
     any ceiling in the Premises, or to temporarily suspend services or use of
     common areas in the Building. Landlord may perform any such repairs or
     alterations during ordinary business hours, except that Tenant may require
     any work in the Premises to be done after business hours if Tenant pays
     Landlord for overtime and any other expenses incurred. Landlord may do or
     permit any work on any nearby building, land, street, alley or way.

                    L.   Landlord's Agents. If Tenant is in default under this
                         -----------------
     Lease, possession of Tenant's funds or negotiation of Tenant's negotiable
     instrument by any of Landlord's agents shall not waive any breach by Tenant
     or any remedies of Landlord under this Lease.

                    M.   Building Services. To install, use and maintain through
                         -----------------
     the Premises, pipes, conduits, wires and ducts serving the Building,
     provided that such installation, use and maintenance does not unreasonably
     interfere with Tenant's use of the Premises.

                    N.   Use of Roof. To permit Landlord (or any entity selected
                         -----------
     by Landlord) to install, operate, maintain and repair any satellite dish,
     antennae, equipment, or other facility on the roof of the Building or to
     use the roof of the Building in any other manner, provided that such
     installation, operation, maintenance, repair or use does not unreasonably
     interfere with Tenant's use of or access to the Premises.
<PAGE>

                    O.   Other Actions.  To take any other action which Landlord
                         -------------
     deems reasonable in connection with the operation, maintenance or
     preservation of the Building and the Project.

          13.  TENANT'S DEFAULT. Any of the following shall constitute a default
               ----------------
by Tenant:

                    A.   Rent Default. Tenant fails to pay any Rent within five
                         ------------
     (5) days after notice that such payment was not paid when due, provided
     that Tenant acknowledges that such notice shall be in lieu of and not in
     addition to any notice required to be given by Landlord to commence an
     unlawful detainer action (or similar eviction proceeding) under the then
     applicable law;

                    B.   Assignment/Sublease or Hazardous Substances Default.
                         ---------------------------------------------------
     Tenant defaults in its obligations under Section 18 Assignment and Sublease
     or Section 29 Hazardous Substances;

                    C.   Other Performance Default. Tenant fails to perform any
                         -------------------------
     other obligation to Landlord under this Lease, and this failure continues
     for thirty (30) days after written notice from Landlord, except that if
     Tenant begins to cure its failure within the thirty (30) day period but
     cannot reasonably complete its cure within such period, then, so long as
     Tenant continues to diligently attempt to cure its failure, the thirty (30)
     day period shall be extended to sixty (60) days. or such lesser period as
     is reasonably necessary to complete the cure;

                    D.   Credit Default.  One of the following credit defaults
                         --------------
     occurs:

                              (i)   Tenant commences any proceeding under any
          law relating to bankruptcy, insolvency, reorganization or relief of
          debts, or seeks appointment of a receiver, trustee, custodian or other
          similar official for the Tenant or for any substantial part of its
          property, or any such proceeding is commenced against Tenant and
          either remains undismissed for a period of thirty (30) days or results
          in the entry of an order for relief against Tenant which is not fully
          stayed within seven (7) days after entry;

                              (ii)  Tenant becomes insolvent or bankrupt, does
          not generally pay its debts as they become due, or admits in writing
          its inability to pay its debts, or makes a general assignment for the
          benefit of creditors;

                              (iii) Any third party obtains a levy or attachment
          under process of law against Tenant's leasehold interest; and
<PAGE>

                    E.   Vacation or Abandonment Default. Tenant vacates or
                         -------------------------------
     abandons the Premises.

          14.  LANDLORD REMEDIES. Upon a default. Landlord shall have the
               -----------------
following remedies, in addition to all other rights and remedies provided by law
or otherwise provided in this Lease, to which Landlord may resort cumulatively
or in the alternative:

                    A.   Termination of Lease or Possession. If Tenant defaults,
                         ----------------------------------
     Landlord may elect by notice to Tenant either to terminate this Lease or to
     terminate Tenant's possession of the Premises without terminating this
     Lease. In either case, Tenant shall immediately vacate the Premises and
     deliver possession to Landlord, and Landlord may repossess the Premises and
     may, at Tenant's sole cost, remove any of Tenant's signs and any of its
     other property, without relinquishing its right to receive Rent or any
     other right against Tenant. In the latter case, this Lease shall continue
     in full force and effect as long as Landlord does not terminate this Lease,
     and Landlord shall have the right to collect Rent when due.

                    B.   Possession Termination Damages. If Landlord elects to
                         ------------------------------
     terminate Tenant's possession without terminating this Lease and Landlord
     takes possession of the Premises itself, then Landlord may relet for
     Tenant's account all or any portion of the Premises for such rent, length
     of time and other terms as Landlord in its sole discretion shall determine,
     without any obligation to do so prior to renting other vacant areas in the
     Building. Tenant shall be liable immediately to Landlord for all costs
     Landlord incurs in reletting the Premises or any part thereof, including,
     without limitation, broker's commissions, expenses of cleaning and
     redecorating the Premises required by the reletting and like costs. Tenant
     shall pay to Landlord the Rent and other sums due under this Lease on the
     date the Rent is due, less the rent and other sums received by Landlord
     from any releasing of the Premises. No act by Landlord other than giving
     written notice to Tenant shall terminate this Lease. Acts of maintenance,
     efforts to relet the Premises or the appointment of a receiver on
     Landlord's initiative to protect Landlord's interest under this Lease shall
     not constitute a termination of Tenant's right to possession.

                    C.   Lease Termination Damages. If Landlord elects to
                         -------------------------
     terminate this Lease, then this Lease shall terminate on the date for
     termination set forth in such notice. Tenant shall immediately vacate the
     Premises and deliver possession to Landlord, and Landlord may repossess the
     Premises and may, at Tenant's sole cost, remove any of Tenant's signs and
     any of its other property, without relinquishing its right to receive Rent
     or any other right against Tenant. On termination, Landlord has the right
     to recover from Tenant as damages:

                              (i)    The worth at the time of award of unpaid
          Rent and other sums due and payable which had been earned at the time
          of termination; plus

                              (ii)   The worth at the time of award of the
          amount by which the unpaid Rent and other sums due and payable which
          after termination until the time of award exceeds the amount of such
          Rent loss that Tenant proves could have been reasonably avoided; plus
<PAGE>

                              (iii)  The worth at the time of award of the
          amount by which the unpaid Rent and other sums due and payable for the
          balance of the Term after the time of award exceeds the amount of such
          Rent loss that Tenant proves could be reasonably avoided; plus

                              (iv)   Any other amount necessary to compensate
          Landlord for all the 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,
          including, without limitation, any costs or expenses incurred by
          Landlord: (i) in retaking possession of the Premises; (ii) in
          maintaining, repairing, preserving, restoring, replacing, cleaning,
          altering or rehabilitating the Premises or any portion thereof,
          including such acts for reletting to a new tenant or tenants; (iii)
          for leasing commissions; or (iv) for any other costs necessary or
          appropriate to relet the Premises; plus

                              (v)    At Landlord's election, such other amounts
          in addition to or in lieu of the foregoing as may be permitted from
          time to time by the laws of the State of California.

          The "worth at the time of award" of the amounts referred to in
Sections 14C(1) and 14C(2) is computed by allowing interest at the maximum rate
permitted by law on the unpaid rent and other sums due and payable from the
termination date through the date of award.  The "worth at the time of award" of
the amount referred to in Section 14C(3) is computed by discounting such amount
at the discount rate of the Federal Reserve Bank of San Francisco at the time of
award plus one percent (1 %).  Tenant waives redemption or relief from
forfeiture under California Code of Civil Procedure Sections 1174 and 1179, or
under any other present or future law, in the event Tenant is evicted or
Landlord takes possession of the Premises by reason of any default of Tenant
hereunder.

               D.   Landlord's Remedies Cumulative. All of Landlord's remedies
                    ------------------------------
     under this Lease shall be in addition to all other remedies Landlord may
     have at law or in equity. Waiver by either party of any breach of any
     obligation by the other party shall be effective only if it is in writing,
     and shall not be deemed a waiver of any other breach, or any subsequent
     breach of the same obligation. Landlord's acceptance of payment by Tenant
     shall not constitute a waiver of any breach by Tenant, and if the
     acceptance occurs after Landlord's notice to Tenant, or termination of the
     Lease or of Tenant's right to possession, the acceptance shall not affect
     such notice or termination. Acceptance of payment by Landlord after
     commencement of a legal proceeding or final judgment shall not affect such
     proceeding or judgment. Landlord may advance such monies and take such
     other actions for Tenant's account as reasonably may be required to cure or
     mitigate any default by Tenant. Tenant shall immediately reimburse Landlord
     for any such advance, and such sums shall bear interest at the default
     interest rate until paid.

               E.   WAIVER OF TRIAL BY JURY. EACH PARTY WAIVES TRIAL BY JURY IN
                    -----------------------
     THE EVENT OF ANY LEGAL PROCEEDING BROUGHT BY THE OTHER IN CONNECTION WITH
     THIS LEASE. EACH PARTY SHALL BRING ANY ACTION AGAINST THE OTHER IN
     CONNECTION WITH THIS LEASE IN A FEDERAL OR STATE COURT LOCATED IN
     CALIFORNIA, CONSENTS TO THE
<PAGE>

     JURISDICTION OF SUCH COURTS, AND WAIVES ANY RIGHT TO HAVE ANY PROCEEDING
     TRANSFERRED FROM SUCH COURTS ON THE GROUND OF IMPROPER VENUE OR
     INCONVENIENT FORUM.

          15.  SURRENDER.  Upon the expiration or earlier termination of this
               ---------
Lease for any reason. Tenant shall surrender the Premises to Landlord in its
condition existing as of the Commencement Date, normal wear and tear and damage
by fire or other casualty excepted, with all interior walls repaired if damaged,
all carpets vacuumed, all broken, marred or nonconforming acoustical ceiling
tiles replaced, all windows washed, the plumbing and electrical systems and
lighting in good order and repair, including replacement of any burned out or
broken light bulb or ballasts, the HVAC equipment serviced and repaired by a
reputable and licensed service firm acceptable to Landlord, and all floors
cleaned, all to the reasonable satisfaction of Landlord. Tenant shall remove
from the Premises all Tenant's personal property and all of Tenant's alterations
required to be removed pursuant to Section 5E, and restore the Premises to its
condition prior to their installation. If Tenant fails to remove any alterations
and/or Tenant's personal property, and such failure continues after the
termination of this Lease, Landlord may retain or dispose of such property and
all rights of Tenant with respect to it shall cease, or Landlord may place all
or any portion of such property in public storage for Tenant's account. Tenant
shall be liable to Landlord for costs of removal of any such alterations and
Tenant's personal property and storage and transportation costs of same, and the
cost of repairing and restoring the Premises, together with interest at the
Interest Rate from the date of expenditure by Landlord. If the Premises are not
so surrendered at the termination of this Lease, Tenant shall indemnify Landlord
against all loss or liability, including attorneys' fees and costs, resulting
from delay by Tenant in so surrendering the Premises.

          16.  HOLDOVER.  Tenant shall have no right to holdover possession of
               --------
the Premises after the expiration or termination of this Lease without
Landlord's prior written consent which Landlord may withhold in its sole and
absolute discretion. If, however, Tenant retains possession of any part of the
Premises after the Term, Tenant shall become a month-to-month tenant for the
entire Premises upon all of the terms of this Lease as might be applicable to
such month-to-month tenancy, except that Tenant shall pay all of Base Rent at
175% the rate in effect immediately prior to such holdover, computed on a
monthly basis for each full or partial month Tenant remains in possession.
Tenant shall also pay Landlord all of Landlord's direct and consequential
damages resulting from Tenant's holdover. No acceptance of Rent or other
payments by Landlord under these holdover provisions shall operate as a waiver
of Landlord's right to regain possession or any other of Landlord's remedies.

          17.  SUBORDINATION TO GROUND LEASES AND MORTGAGES.
               --------------------------------------------

                    A.   Subordination. This Lease shall be subordinate to any
                         -------------
     present or future ground lease or mortgage respecting the Project, and any
     amendments to such ground lease or mortgage, at the election of the ground
     lessor or mortgagee as the case may be, effected by notice to Tenant in the
     manner provided in this Lease. The subordination shall be effective upon
     such notice, but at the request of Landlord or ground lessor or mortgagee.
     Tenant shall within ten (10) days of the request, execute and deliver to
     the requesting party any reasonable documents provided to evidence the
<PAGE>

     subordination. Any mortgagee has the right, at its sole option, to
     subordinate its mortgage to the terms of this Lease, without notice to, nor
     the consent of Tenant. At any time that the Project is made subject to any
     ground lease or mortgage. Landlord shall use commercially reasonable
     efforts to cause the mortgagee or ground lessor to deliver to Tenant a
     subordination non-disturbance agreement ("SNDA") reasonably acceptable to
                                               ----
     Tenant, providing that so long as Tenant is not in default under this Lease
     after the expiration of any applicable notice and cure periods, Tenant may
     remain in possession of the Premises under the terms of this Lease, even if
     the ground-lessor should terminate the ground lease or if the mortgagee or
     its successor should acquire Landlord's title to the Project. Landlord
     shall have no obligation to participate in or otherwise engage in any
     negotiations regarding the SNDA. but if Landlord does so, at Tenant's
     request, then Tenant shall pay Landlord's reasonable attorneys' fees
     incurred in connection with such negotiations within thirty (30) days of
     Tenant's receipt of an invoice therefor.

                    B.   Termination of Ground Lease or Foreclosure of Mortgage.
                         ------------------------------------------------------
     If any ground lease is terminated or mortgage foreclosed or deed in lieu of
     foreclosure given and the ground lessor, mortgagee, or purchaser at a
     foreclosure sale shall thereby become the owner of the Project, Tenant
     shall attorn to such ground lessor or mortgagee or purchaser without any
     deduction or setoff by Tenant, and this Lease shall continue in effect as a
     direct lease between Tenant and such ground lessor, mortgagee or purchaser.
     The ground lessor or mortgagee or purchaser shall be liable only for the
     performance of those obligations of Landlord which accrue during the time
     such ground lessor or mortgagee or purchaser is the owner of the Project.
     At the request of Landlord, ground lessor or mortgagee. Tenant shall
     execute and deliver within ten (10) days of the request any document
     furnished by the requesting party to evidence Tenant's agreement to attorn.

                    C.   Security Deposit. Any ground lessor or mortgagee shall
                         ----------------
     be responsible for the rerun of any security deposit by Tenant only to the
     extent the security deposit is received by such ground lessor or mortgagee.

                    D.   Notice and Right to Cure.  The Project is subject to
                         ------------------------
     any ground lease and mortgage identified with name and address of ground
     lessor or mortgagee in Exhibit F to this Lease (as the same may be amended
                            ---------
     from time to time by written notice to Tenant). Tenant agrees to send by
     registered or certified mail to any ground lessor or mortgagee identified
     either in such Exhibit or in any later notice from Landlord to Tenant a
     copy of any notice of default sent by Tenant to Landlord. If Landlord fails
     to cure such default within the required time period under this Lease, but
     ground lessor or mortgagee begins to cure, within ten (10) days after such
     period and proceeds diligently to complete such cure, then ground lessor or
     mortgagee shall have such additional time as is reasonably necessary to
     complete such cure. including any time necessary to obtain possession if
     possession is necessary to cure, and Tenant shall not begin to enforce its
     remedies so long as the cure is being diligently pursued.

                    E.   Definitions.  As used in this Section 17, "mortgage"
                         -----------
     shall include "trust deed" and "deed of trust", and "mortgagee" shall
     include "trustee", "beneficiary'' and the mortgagee of any ground lessee,
     and "ground lessor," "mortgagee," and
<PAGE>

     "purchaser at a foreclosure sale" shall include, in each case, all of its
     successors and assigns, however remote.

          18.  ASSIGNMENT AND SUBLEASE.
               -----------------------

                    A.   In General. Except in the case of a "Permitted
                         ----------
    Transfer" (as defined below), Tenant shall not, without the prior consent
     of Landlord in each case, (i) make or allow any assignment or transfer, by
     operation of law or otherwise, of any part of Tenant's interest in this
     Lease, (ii) grant or allow any lien or encumbrance, by operation of law or
     otherwise, upon any part of Tenant's interest in this Lease, (iii) sublet
     any part of the Premises, or (iv) permit anyone other than Tenant and its
     employees to occupy any part of the Premises. Tenant shall remain primarily
     liable for all of its obligations under this Lease, notwithstanding any
     assignment or transfer. No consent granted by Landlord shall be deemed to
     be a consent to any subsequent assignment or transfer, lien or encumbrance,
     sublease or occupancy. Tenant shall pay all of Landlord's attorneys' fees
     (which shall not exceed $500.00, as may be adjusted for increases in CPI
     during the Term, unless Tenant challenges such disapproval or conditional
     approval) and other expenses incurred in connection with any consent
     requested by Tenant or in reviewing any proposed assignment or subletting.
     Any assignment or transfer, grant of lien or encumbrance, or sublease or
     occupancy without Landlord's prior written consent shall be void. If Tenant
     shall assign this Lease or sublet the Premises in its entirety to any
     entity other than a Tenant Affiliate (as defined below), any rights of
     Tenant to renew this Lease, extend the Term or to lease additional space in
     the Project shall be extinguished thereby and will not be transferred to
     the assignee or subtenant, all such rights being personal to the Tenant
     named herein. Notwithstanding the foregoing, if no default on the part of
     Tenant has occurred and is continuing (after notice and expiration of
     applicable cure periods), Tenant may assign this Lease or sublet any
     portion of the Premises (hereinafter collectively referred to as a
     "Permitted Transfer") to (i) a parent or subsidiary of Tenant, or an entity
      ------------------
     under common control with Tenant, (ii) an entity into which Tenant is
     merged or consolidated, or (iii) an entity to which substantially all of
     Tenant's assets are transferred (collectively, "Tenant Affiliate"), without
                                                     ----------------
     first obtaining Landlord's written consent and without regard to the
     recapture right in Section 18E, if Tenant notifies Landlord at least ten
     (10) business days prior to the Permitted Transfer and provides Landlord
     with information satisfactory to Landlord in order to determine the net
     worth both of the successor entity and of Tenant immediately prior to such
     assignment, and showing the net worth of the successor to be at least equal
     to the net worth of Tenant.

                    B.   Landlord's Consent. Landlord will not unreasonably
                         ------------------
     withhold its consent to any proposed assignment or subletting. It shall be
     reasonable for Landlord to withhold its consent to any assignment or
     sublease if (i) Tenant is in default under this Lease beyond any applicable
     cure period, (ii) the financial responsibility, nature of business, and
     character of the proposed assignee or subtenant are not all reasonably
     satisfactory to Landlord, (iii) in the reasonable judgment of Landlord the
     purpose for which the assignee or subtenant intends to use the Premises (or
     a portion thereof) is not reasonably consistent with the Other users for
     the Building or Project, or are in violation of the terms of this Lease or
     any other leases in the Project, or (iv) the proposed assignee
<PAGE>

     or subtenant is a government entity. The foregoing shall not exclude any
     other reasonable basis for Landlord to withhold its consent.

                    C.   Procedure.  Tenant shall notify Landlord of any
                         ---------
     proposed assignment or sublease at least fifteen (15) days prior to its
     proposed effective date. The notice shall include the name and address of
     the proposed assignee or subtenant, its corporate affiliates in the case of
     a corporation and its partners in a case of a partnership, an execution
     copy of the proposed assignment or sublease, and sufficient information to
     permit Landlord to determine the financial responsibility and character of
     the proposed assignee or subtenant. As a condition to any effective
     assignment of this Lease, the assignee shall execute and deliver in form
     satisfactory to Landlord at least fifteen (15) days prior to the effective
     date of the assignment, an assumption of all of the obligations of Tenant
     under this Lease. As a condition to any effective sublease, subtenant shall
     execute and deliver in form satisfactory to Landlord at least fifteen (15)
     days prior to the effective date of the sublease, an agreement to comply
     with all of Tenant's obligations under this Lease, and at Landlord's
     option, an agreement (except for the economic obligations which subtenant
     will undertake directly to Tenant) to attorn to Landlord under the terms of
     the sublease in the event this Lease terminates before the sublease
     expires.

                    D.   Change of Management or Ownership. Any transfer of the
                         ---------------------------------
     direct or indirect power to affect the management or policies of Tenant or
     direct or indirect change in 25% or more of the ownership interest in
     Tenant shall constitute an assignment of this Lease.

                    E.   Excess Payments.  If Tenant shall assign this Lease or
                         ---------------
     sublet any part of the Premises for consideration in excess of the pro-rata
     portion of Rent applicable to the space subject to the assignment or
     sublet, then Tenant shall pay to Landlord as Additional Rent 50% of any
     such excess immediately upon receipt; provided that Tenant shall first be
     entitled to recover the reasonable brokerage commissions, advertising,
     legal fees and alteration costs actually incurred by Tenant in connection
     with such assignment or sublet.

                    F.   Recapture.  Except in the case of Permitted Transfer,
                         ---------
     if Tenant proposes to assign this Lease or sublet all or any portion of the
     Premises for the balance of the Term. Landlord may, by giving written
     notice to Tenant within thirty (30) days after receipt of Tenant's notice
     of assignment or subletting, terminate this Lease with respect to the space
     described in Tenant's notice, as of the effective date of the proposed
     assignment or sublease and all obligations under this Lease as to such
     space shall expire except as to any obligations that expressly survive any
     termination of this Lease.

          19.  CONVEYANCE BY LANDLORD.  If Landlord shall at any time transfer
               ----------------------
its interest in the Project or this Lease, Landlord shall be released of any
obligations occurring after such transfer, except the obligation to return to
Tenant any security deposit not delivered to its transferee, and Tenant shall
look solely to Landlord's successors for performance of such obligations. This
Lease shall not be affected by any such transfer.
<PAGE>

          20.  ESTOPPEL CERTIFICATE. Each party shall, within ten (10) days of
               --------------------
receiving a request from the other party, execute, acknowledge in recordable
form. and deliver to the other party or its designee a certificate stating,
subject to a specific statement of any applicable exceptions, that the Lease as
amended to date is in full force and effect, that the Tenant is paying Rent and
other charges on a current basis, and that to the best of the knowledge of the
certifying party, the other party has committed no uncured defaults and has no
offsets or claims. The certifying party may also be required to state the date
of commencement of payment of Rent, the Commencement Date, the Termination Date,
the Base Rent. the current Operating Cost Share Rent and Tax Share Rent
estimates, the status of any improvements required to be completed by Landlord,
the amount of any security deposit, and such other matters as may be reasonably
requested. Failure to deliver such statement within the time required shall be
conclusive evidence against the non-certifying party that this Lease, with any
amendments identified by the requesting party, is in full force and effect, that
there are no uncured defaults by the requesting party, that not more than one
month's Rent has been paid in advance, that the non-certifying party has not
paid any security deposit except as specified in the Lease, and that the non-
certifying party has no claims or offsets against the requesting party.

          21.  LEASE DEPOSIT.  Tenant shall deposit with Landlord on the date
               -------------
Tenant executes and delivers this Lease to Landlord the cash sums set forth in
the Schedule for both Prepaid Rent and Security Deposit, including any Letter of
Credit (collectively, the "Lease Deposit"). Notwithstanding the foregoing,
                           -------------
Landlord agrees that a portion of the Security Deposit not to exceed $422,393.00
may be in the form of a "Letter of Credit", provided that the Letter of Credit
                         ----------------
shall (i) be in the form of an unconditional and irrevocable letter of credit
which is acceptable to Landlord, (ii) name Landlord as beneficiary, (iii)
expressly allow Landlord to draw upon it at any time from time to time by
delivering to the issuer written certification that Landlord is entitled to draw
thereunder as a result of Tenant's default hereunder. (iv) be drawable on an
FDIC-insured financial institution satisfactory to Landlord. and (v) be
redeemable in the state of California in one of the nine counties comprising the
San Francisco-Oakland-San Jose (the "Bay Area"). As of the Commencement Date,
                                     --------
and at all times during the Term, the sum of the amount drawable under the
Letter of Credit and the cash portion of the Security Deposit held by Landlord
shall be equal or greater than the total amount of the Security Deposit as set
forth in the Schedule (i.e., $509,037.80). If Tenant does not provide Landlord
with a substitute Letter of Credit complying with all of the requirements hereof
at least thirty (30) days before the stated expiration date of the current
Letter of Credit, then Landlord shall have the right to draw upon the current
Letter of Credit and hold the funds drawn as part of the Security Deposit. In
the event Landlord notifies Tenant in writing that the bank which issued the
Letter of Credit has become financially unacceptable (e.g., the bank is under
investigation by governmental authorities, has filed bankruptcy or
reorganization proceedings, or has closed two or more of its branches within the
Bay Area), then Tenant shall have thirty (30) days to provide Landlord with a
substitute Letter of Credit complying with all of the requirements hereof. The
cash portion of the Security Deposit and the Letter of Credit are collectively
referred to herein as the "Security Deposit". In the event Tenant initially pays
                           ----------------
the entire Security Deposit to Landlord in cash, then Landlord agrees after its
receives a Letter of Credit which satisfies the requirements set forth above to
promptly refund to Tenant an amount equal to the lesser of: (i) the amount of
the Letter of Credit, or (ii) $422,393.00.
<PAGE>

The Prepaid Rent shall be applied by Landlord against the first full month's
Base Rent payment obligation hereunder. The cash Security Deposit and the Letter
of Credit (collectively, the "Security Deposit") shall be held by Landlord
                              ----------------
during the Term as security for the performance of all of Tenant's obligations
hereunder. If Tenant defaults under this Lease, Landlord may apply all or any
part of the Security Deposit for the payment of any Rent or other sum in
default, the repair of any damage to the Premises caused by Tenant or the
payment of any other amount which Landlord may spend or become obligated to
spend by reason of Tenant's default or to compensate Landlord for any other loss
or damage which Landlord may suffer by reason of Tenant's default to the full
extent permitted by law. Tenant hereby waives any restriction on the use or
application of the Security Deposit by Landlord as set forth in California Civil
Code Section 1950.7. To the extent any portion of the Security Deposit is used,
Tenant shall within five (5) days (ten (10) days in the case of the Letter of
Credit) after demand from Landlord restore the deposit to its full amount.
Landlord may keep the Security Deposit in its general funds and shall not be
required to pay interest to Tenant on the deposit amount. If Tenant shall
perform all of its obligations under this Lease and return the Premises to
Landlord at the end of the Term, Landlord shall return all of the remaining
Security Deposit to Tenant within thirty (30) days after the end of the Term.
The Security Deposit shall not serve as an advance payment of Rent or a measure
of Landlord's damages for any default under this Lease.

          If Landlord transfers its interest in the Project or this Lease,
Landlord may transfer the Security Deposit to its transferee.  Upon such
transfer, Landlord shall have no further obligation to return the Security
Deposit to Tenant, and Tenant's right to the return of the Security Deposit
shall apply solely against Landlord's transferee.

          Notwithstanding the foregoing, Landlord shall return the Letter of
Credit to Tenant if Tenant can demonstrate to the reasonable satisfaction of
Landlord that (i) Tenant's net worth is in excess of Twenty Million Dollars
($20,000,000.00), and (ii) Tenant has had six (6) consecutive profitable
quarters (and thereafter the amount of the Security Deposit required to be
maintained by Tenant hereunder shall be reduced to $86,644.80)

          22.  FORCE MAJEURE.  Neither party shall be in default under this
               -------------
Lease to the extent such party is unable to perform any of its obligations on
account of any prevention, delay, stoppage due to strikes, lockouts, inclement
weather, labor disputes, inability to obtain labor, materials, fuels, energy or
reasonable substitutes therefor, governmental restrictions, regulations,
controls, actions or inaction, civil commotion, fire or other acts of God,
national emergency, or any other cause of any kind beyond the reasonable control
of such party (except financial inability) (collectively "Force Majeure").

          23.  TENANT'S PERSONAL PROPERTY AND TRADE FIXTURES. Intentionally
               ---------------------------------------------
omitted.
<PAGE>

          24.  NOTICES.  All notices, consents, approvals and similar
               -------
communications to be given by one party to the other under this Lease, shall be
given in writing, mailed or personally delivered as follows:

                    A.   Landlord.  To Landlord as follows:
                         --------

                     CarrAmenca Realty Corporation
                     1810 Gateway Drive, Suite 150
                     San Mateo, California 94404
                     Attn: Market Officer

          with a copy to:        CarrAmerica Realty Corporation
                                 1850 K Street.  N.W., Suite 500
                                 Washington, D.C. 20006
                                 Attention: Lease Administration

or to such other person at such other address as Landlord may designate by
notice to Tenant.

                    B.   Tenant.  To Tenant as follows:
                         ------
Prior to the Commencement Date:  Applied Fiber Optics, Inc.
                                 46758 Lakeview Boulevard
                                 Fremont, California 94538
                                 Attention: Wayne Franklin, Director of
                                            Operations

After the Commencement Date:     Applied Fiber Optics, Inc.
                                 46420 Fremont Boulevard
                                 Fremont, California 94538
                                 Attention: Wayne Franklin, Director of
                                            Operations

or to such other person at such other address as Tenant may designate by notice
to Landlord.

Mailed notices shall be sent by United States certified or registered mail, or
by a reputable national overnight courier service, postage prepaid.  Mailed
notices shall be deemed to have been given on the earlier of actual delivery or
three (3) business days after posting in the United States mail in the case of
registered or certified mail, and one business day in the case of overnight
courier.

          25.  QUIET POSSESSION.  So long as Tenant shall perform all of its
               ----------------
obligations under this Lease, Tenant shall enjoy peaceful and quiet possession
of the Premises against any party claiming through the Landlord, subject to all
of the terms of this Lease.
<PAGE>

          26.  REAL ESTATE BROKER. Tenant represents to Landlord that Tenant has
               ------------------
not dealt with any real estate broker with respect to this Lease except for any
broker(s) listed in the Schedule, and no other broker is in any way entitled to
any broker's fee or other payment in connection with this Lease. Tenant shall
indemnify and defend Landlord against any claims by any other broker or third
party for any payment of any kind in connection with this Lease.

          27.  MISCELLANEOUS.
               -------------

                    A.   Successors and Assigns. Subject to the limits on
                         ----------------------
     Tenant's assignment contained in Section 18, the provisions of this Lease
     shall be binding upon and inure to the benefit of all successors and
     assigns of Landlord and Tenant.

                    B.   Date Payments Are Due. Except for payments to be made
                         ---------------------
     by Tenant under this Lease which are due upon demand or which are due in
     advance (such as Base Rent), Tenant shall pay to Landlord any amount for
     which Landlord renders a Statement of account within thirty (30) days of
     Tenant's receipt of Landlord's statement.

                    C.   Meaning of "Landlord," "Re-Entry," "including" and
                         --------------------------------------------------
     "Affiliate". The term "Landlord" means only the owner of the Project and
     -----------
     the lessor's interest in this Lease from time to time. The words "re-entry"
     and "re-enter" are not restricted to their technical legal meaning. The
     words "including" and similar words shall mean "without limitation." The
     word "affiliate" shall mean a person or entity controlling, controlled by
     or under common control with the applicable entity. "Control" shall mean
     the power directly or indirectly, by contract or otherwise, to direct the
     management and policies of the applicable entity.

                    D.   Time of the Essence. Time is of the essence of each
                         -------------------
     provision of this Lease.

                    E.   No Option. This document shall not be effective for any
                         ---------
     purpose until it has been executed and delivered by both parties; execution
     and delivery by one party shall not create any option or other right in the
     other party.

                    F.   Severability. The unenforceability of any provision of
                         ------------
     this Lease shall not affect any other provision.

                    G.   Governing Law. This Lease shall be governed in all
                         -------------
     respects by the laws of the state in which the Project is located, without
     regard to the principles of conflicts of laws.

                    H.   Lease Modification. Tenant agrees to modify this Lease
                         ------------------
     in any way requested by a mortgagee which does not cause increased expense
     to Tenant or otherwise materially adversely affect Tenant's rights or
     interests under this Lease.

                    I.   No Oral Modification.  No modification of this Lease
                         --------------------
     shall be effective unless it is a written modification signed by both
     parties.
<PAGE>

                    J.   Landlord's Right to Cure. If Landlord breaches any of
                         ------------------------
     its obligations under this Lease, Tenant shall notify Landlord in writing
     and shall take no action respecting such breach so long as Landlord
     promptly begins to cure the breach and diligently pursues such cure to its
     completion. Landlord may cure any default by Tenant; any reasonable
     expenses incurred by Landlord to cure the default shall become Additional
     Rent due from Tenant on demand by Landlord.

                    K.   Captions.  The captions used in this Lease shall have
                         --------
     no effect on the construction of this Lease.

                    L.   Authority.  Landlord and Tenant each represents to the
                         ---------
     other that it has full power and authority to execute and perform this
     Lease.

                    M.   Landlord's Enforcement of Remedies. Landlord may
                         ----------------------------------
     enforce any of its remedies under this Lease either in its own name or
     through an agent.

                    N.   Entire Agreement. This Lease, together with all
                         ----------------
     Appendices, constitutes the entire agreement between the parties. No
     representations or agreements of any kind have been made by either party
     which are not contained in this Lease.

                    O.   Landlord's Title. Landlord's title shall always be
                         ----------------
     paramount to the interest of the Tenant, and nothing in this Lease shall
     empower Tenant to do anything which might in any way impair Landlord's
     title.

                    P.   Light and Air Rights. Landlord does not grant in this
                         --------------------
     Lease any rights to light and air in connection with Project. Landlord
     reserves to itself, the Land, the Building below the improved floor of each
     floor of the Premises, the Building above the ceiling of each floor of the
     Premises, the exterior of the Premises and the areas on the same floor
     outside the Premises, along with the areas within the Premises required for
     the installation and repair of utility lines and other items required to
     serve other tenants of the Building.

                    Q.   Singular and Plural. Wherever appropriate in this
                         -------------------
     Lease, a singular term shall be construed to mean the plural where
     necessary, and a plural term the singular. For example, if at any time two
     parties shall constitute Landlord or Tenant, then the relevant term shall
     refer to both parties together.

                    R.   No Recording by Tenant. Tenant shall not record in any
                         ----------------------
     public records any memorandum or any portion of this Lease.

                    S.   Exclusivity.  Landlord does not grant to Tenant in this
                         -----------
     Lease any exclusive right except the right to occupy its Premises.

                    T.   No Construction Against Drafting Party. The rule of
                         --------------------------------------
     construction that ambiguities are resolved against the drafting party shall
     not apply to this Lease.

                    U.   Survival. All obligations of Landlord and Tenant under
                         --------
     this Lease shall survive the termination of this Lease.
<PAGE>

                    V.   Rent Not Based on Income. No Rent or other payment in
                         ------------------------
     respect of the Premises shall be based in any way upon net income or
     profits from the Premises. Tenant may not enter into or permit any sublease
     or license or other agreement in connection with the Premises which
     provides for a rental or other payment based on net income or profit.

                    W.   Building Manager and Service Providers. Landlord may
                         --------------------------------------
     perform any of its obligations under this Lease through its employees or
     third parries hired by the Landlord.

                    X.   Late Charge and Interest on Late Payments. Without
                         -----------------------------------------
     limiting the provisions of Section 13A, if Tenant fails to pay any
     installment of Rent or other charge to be paid by Tenant pursuant to this
     Lease within five (5) business days after the same becomes due and payable,
     then Tenant shall pay a late charge equal to the greater of five percent
     (5%) of the amount of such payment or $250. In addition, interest shall be
     paid by Tenant to Landlord on any late payments of Rent from the date due
     until paid at the rate provided in Section 2D(2). Such late charge and
     interest shall constitute Additional Rent due and payable by Tenant to
     Landlord upon the date of payment of the delinquent payment referenced
     above.

                    Y.   Tenant's Financial Statements. Within ten (10) days
                         -----------------------------
     after Landlord's written request therefor, Tenant shall deliver to Landlord
     the current financial statements of Tenant, and financial statements of the
     two (2) years prior to the current financial statements year, with an
     opinion of a certified public accountant, including a balance sheet and
     profit and loss statement for the most recent prior year, all prepared in
     accordance with generally accepted accounting principles consistently
     applied.

                    Z.   Attorneys' Fees. If either party shall bring any action
                         ---------------
     or legal proceeding for damages for an alleged breach of any provision of
     this Lease, to recover Rent or other sums due to terminate the tenancy of
     the Premises or to enforce, protect or establish any term, condition or
     covenant of this Lease or right of either party, the prevailing party shall
     be entitled to recover, as a part of the action or proceedings, or in a
     separate action brought for that purpose, reasonable attorneys' fees and
     related court costs, including expert witness fees, as may be fixed by the
     court or jury. The prevailing party shall be the party that secures a final
     judgment in its favor.

          28.  UNRELATED BUSINESS INCOME. If Landlord is advised by its counsel
               -------------------------
at any time that any part of the payments by Tenant to Landlord under this Lease
may be characterized as unrelated business income under the United States
Internal Revenue Code and its regulations, then Tenant shall enter into any
amendment proposed by Landlord to avoid such income, so long as the amendment
does not require Tenant to make more payments or accept fewer services from
Landlord, than this Lease provides.

          29.  HAZARDOUS SUBSTANCES.
               --------------------

                    A.   Prohibition Against Hazardous Substances. Tenant shall
                         ----------------------------------------
     not produce, store, use, discharge or dispose of, nor permit its agents,
     employees or contractors to
<PAGE>

     produce, store, use, discharge or dispose of any Hazardous Substances in or
     near the Project unless Landlord has consented to such storage or use in
     its sole discretion of both the particular Hazardous Substances and the
     maximum quantities thereof to be stored or used on the Premises at any
     time. Prior to the use of any Hazardous Substances (including any changes
     to the previously approved list), Tenant shall provide Landlord with a list
     of those Hazardous Substances (and the maximum quantities thereof) which
     Tenant proposes to use, for Landlord's review and approval, which approval
     shall not be unreasonably delayed or withheld. Any handling,
     transportation, storage, treatment, disposal or use of any Hazardous
     Substances in or about the Project by Tenant, its agents, employees,
     contractors or invitees shall strictly comply with all applicable
     Governmental Requirements. Tenant shall indemnify, defend and hold Landlord
     harmless from and against any liabilities, losses, claims, damages,
     penalties, fines, attorneys' fees and court costs, remediation costs,
     investigation costs and any other expenses which result from or arise out
     of the use, storage, treatment, transportation, release, or disposal of any
     Hazardous Substances on or about the Project by Tenant, its agents,
     employees, contractors or invitees. If any lender or governmental agency
     shall require testing for Hazardous Substances in the Premises, Tenant
     shall pay for such testing, if (i) Tenant is in breach of any provision in
     this Section 29, (ii) Tenant, its agents, employees or contractors was
     responsible in any way for the presence of any of the Hazardous Substances
     discovered by such testing, or (iii) the applicable governmental agency has
     requested that such testing be performed as a result of Tenant's activities
     within the Project.

               B.   "Hazardous Substances" means any hazardous or toxic
                     --------------------
     substances, materials or waste which are or become regulated by any local
     government authority, the state in which the Project is located or the
     United States government, including those substances described in the
     Comprehensive Environmental Response, Compensation and Liability Act of
     1980, as amended, 42 U.S.C. Section 9601 et seq., the Resource Conservation
     and Recovery Act, as amended. 42 U.S.C. Section 6901 et seq., any other
     applicable federal, state or local law, and the regulations adopted under
     these laws.

          30.  EXCULPATION. Landlord shall have no personal liability under this
               -----------
Lease; its liability shall be limited to its interest in the Project and shall
not extend to any other property or assets of the Landlord. In no event shall
any officer, director, employee, agent, shareholder, partner, member or
beneficiary of Landlord be personally liable for any of Landlord's obligations
hereunder.

          31.  RIGHT OF FIRST REFUSAL. Subject to Subsections A and B below.
               ----------------------
Landlord hereby grants to Tenant a right of first refusal for the Easterly
portion of Building A shown on Exhibit A, containing approximately 22,399
rentable square feet and which is commonly known as 46410 Fremont Boulevard (the
"ROFR Space"), to be exercised in accordance with terms and conditions set forth
 ----------
below. This right of first refusal shall not apply to any lease renewal or
extension which Landlord may enter into in connection with any then existing
tenant of the ROFR Space (collectively, an "Existing Tenant").
                                            ---------------
<PAGE>

                    A.   If Landlord desires to enter into a Lease for the ROFR
     Space with a third party (other than an Existing Tenant), Landlord shall so
     notify Tenant ("Landlord's ROFR Notice") identifying the terms and
                     ----------------------
     conditions upon which Landlord shall lease the ROFR Space to such third
     party. Tenant shall notify Landlord within five (5) business days of
     receipt of Landlord's ROFR Notice whether it desires to lease the Subject
     ROFR Space on the terms and conditions set forth in Landlord's ROFR Notice.
     If Tenant does not notify Landlord within such 5 business day period that
     it will lease the ROFR Space on such terms and conditions, Tenant shall be
     deemed to have refused the ROFR Space. After any refusal, Landlord shall be
     free to lease such ROFR Space to any third party on substantially the same
     terms and conditions set forth in Landlord's ROFR Notice. If Tenant
     exercises its right of first refusal with respect to the ROFR Space, such
     space shall be added to the Premises for all purposes of this Lease on (a)
     the terms and conditions specified in Landlord's ROFR Notice, and (b) the
     terms of this Lease, to the extent that they do not conflict with the terms
     and conditions specified in Landlord's ROFR Notice, shall also apply to the
     ROFR Space.

                    B.   Tenant's right of first refusal is subject to the
     conditions that: (i) in the event Tenant cannot demonstrate to Landlord's
     satisfaction (e.g., based on Tenant's most recently audited financial
     statements) that Tenant's business operations at the Premises are
     profitable as of the date Tenant elects to exercise its right of first
     refusal hereunder, then notwithstanding any provision herein to the
     contrary Landlord may require Tenant to provide additional lease/security
     deposits or other alternative security (i.e., in excess of that which was
     required in Landlord's ROFR Notice) which is acceptable to Landlord in its
     sole and absolute discretion as a condition of exercising this right of
     first refusal, (ii) on the date that Tenant delivers its notice exercising
     its right of first refusal, Tenant is not in default under this Lease after
     the expiration of any applicable notice and cure periods, and (iii) Tenant
     shall not have assigned the Lease for the remainder of the Term, or sublet
     all of the Premises under a sublease for the remainder of the Term, unless
     pursuant to a Permitted Transfer.

                    C.   Promptly after Tenant's exercise of its right of first
     refusal, Landlord shall execute and deliver to Tenant an amendment to the
     Lease to reflect changes in the Premises, Base Rent, Tenant's Proportionate
     Share and any other appropriate terms changed by the addition of the ROFR
     Space. Within 15 days thereafter, Tenant shall execute and return the
     amendment to Landlord.

          32.  OPTION TO LEASE EXPANSION SPACE.  Prior to January 1, 1999 and
               -------------------------------
provided that Tenant is not then in default in the performance of any of its
obligations under this Lease (beyond any applicable cure period), Landlord
grants to Tenant the following option to lease Building F containing
approximately 53,312 rentable square feet (the "Expansion Space") on the same
terms and conditions as the Premises (including the annual $.05 per square foot
increases in the monthly Base Rent payable hereunder on the same rent
adjustments dates as set forth in the Schedule, and tenant improvement
allowance). Notwithstanding the foregoing, in the event Tenant cannot
demonstrate to Landlord's satisfaction (e.g., based on Tenant's most recently
audited financial statements) that Tenant's business operations at the Premises
are profitable as of the date Tenant elects to exercise its expansion option
hereunder, then notwithstanding any provision herein to the contrary Landlord
may require Tenant to provide additional lease/security
<PAGE>

deposits or other alternative security which is acceptable to Landlord in its
sole and absolute discretion as a condition of Tenant's exercising the foregoing
expansion option. Subject to the foregoing, if Tenant delivers written notice to
Landlord regarding its election to lease the Expansion Space prior to January 1,
1999 (the "Expansion Notice"), then Landlord shall commence the construction of
           ----------------
the Building Shell for Building F as soon as practicably possible thereafter and
Tenant shall commence paying Base Rent and the other amounts due hereunder for
the Expansion Space commencing on the date which is three (3) months after the
Substantial Completion of the Building Shell for Building F (the "Building F
                                                                  ----------
Commencement Date"; provided that the Building F Commencement Date will be
-----------------
delayed day for day for any construction which is commenced on the Building
Shell for Building F prior to January 1, 1999. In other words, if Landlord
commenced construction on the Building Shell for Building F (as evidenced by the
commencement of grading and other foundation work on the Building F land) on
November 1, 1998. then the Building F Commencement Date would be 5 months after
the Substantial Completion of the Building Shell for Building F (i.e., the
original 3 months, plus an additional 2 months because of the early commencement
of construction). To illustrate the timing of the rent increases which will
occur in connection with the Expansion Space, assume the Commencement Date for
the original Premises is January 1, 1999 and Tenant satisfies the financial
requirements set forth above and delivers the written expansion notice to
Landlord prior to January 1, 1999, then (a) as of the Building F Commencement
Date, Tenant would start paying monthly Base Rent in the amount of $69,305.60
per month (i.e., 53,312 rsf x $1.30/rsf), and the Tenant's Proportionate Share
of the Project would be increased from 18.62% to 36.95%, and (b) as of January
1, 2000 (i.e., the end of the first 12 months of the Term is the first Base Rent
adjustment date set forth in the Schedule), the monthly Base Rent for the
Expansion Space would be increased to $71,971.20 (i.e., 53,312 rsf x $1.35/rsf)
and thereafter the monthly Base Rent for the Expansion Space would be increased
by $.05 per square foot at the end of each twelve-month period thereafter in the
same manner and at the same time as the Base Rent increases occur for the
original Premises as set forth in the Schedule. Tenant's Expansion Notice shall
indicate whether Landlord or Tenant shall be constructing the interior tenant
improvements within the Expansion Space. Promptly after Tenant's delivery of its
Expansion Notice, Landlord shall execute and deliver to Tenant an amendment to
the Lease to reflect the addition of the Expansion Space, and the corresponding
changes to the definitions of Premises Base Rent, Tenant's Proportionate Share
and any other appropriate terms. Within 15 days thereafter, Tenant shall execute
and return the amendment to Landlord.

          33.  RIGHT OF FIRST NEGOTIATION. If Tenant does not deliver the
               --------------------------
Expansion Notice to Landlord prior to January 1, 1999, then Tenant's expansion
option shall lapse. Provided notice is timely given and provided further that
Tenant is not then in default in the performance of any of its obligations under
this Lease (beyond any applicable cure period) and subject to the terms and
conditions set forth herein, Landlord grants to Tenant the following right of
first negotiation ("Right of First Negotiation") with respect to the Expansion
                    --------------------------
Space. Tenant's Right of First Negotiation shall not apply to any lease renewal
or extension which Landlord may enter into in connection with any then existing
tenant of the Expansion Space (collectively, an "Existing Tenant"). After
                                                 ---------------
January 1, 1999 and subject to the terms and conditions set forth herein, Tenant
shall have the Right of First Negotiation with respect to the Expansion Space if
it becomes available for lease to a third party (other than to an Existing
Tenant) during the Term (including any extensions thereof). When the Expansion
Space
<PAGE>

becomes available for lease to any third party (other than an Existing Tenant),
Tenant shall have ten (10) calendar days following its receipt of Landlord's
notice that the Expansion Space is available to respond. Landlord's notice shall
be in writing and shall include the general terms on which Landlord proposes to
lease the Expansion Space. Tenant's failure to respond during such 10-day period
shall be deemed to be Tenant's election to pass on the Expansion Space. In the
event Landlord receives written notice from Tenant during such 10-day period of
Tenant's interest in the Expansion Space, then Landlord and Tenant shall have
the twenty (20) day period following Landlord's receipt of Tenant's notice to
meet, confer and agree in writing on the terms and conditions upon which Tenant
would lease the Expansion Space from Landlord. If Landlord and Tenant are able
to agree on the terms on which Landlord would lease the Expansion Space to
Tenant during such period, Landlord and Tenant agree to execute an amendment to
this Lease to incorporate the Expansion Space and those terms agreed to by
Landlord and Tenant. In the event Landlord and Tenant are unable to agree in
writing on the terms for the lease of the Expansion Space within such twenty
(20) day period (or in the event Tenant passes on such space, or is deemed to
have passed on such space), then Landlord shall be free to market the Expansion
Space to any third parties without any liability to Tenant. Landlord and Tenant
agree to negotiate in good faith taking into consideration the following
factors: (i) the rental rates of similar projects in the geographic area of the
Project (including the rent. operating costs, and all other monetary payments
that Landlord could obtain for the Expansion Space from a third party desiring
to lease such space, the services provided under the terms of the Lease, the
obligation, or lack thereof, to pay tenant improvement costs and leasing
commissions in connection with such renewal and all other monetary payments then
being obtained for new leases of space comparable to such space), (ii) it should
be assumed that the Expansion Space will be used for the highest and best use
allowed under the Lease, and (iii) in the event Tenant cannot demonstrate to
Landlord's satisfaction (e.g., based on Tenant's most recently audited financial
statements) that Tenant's business operations at the Premises are profitable as
of the date Tenant elects to exercise its Right of First Negotiation, then
Landlord may require Tenant to provide additional lease/security deposits or
other alternative security (i.e., in excess of that which was required by
Landlord for the original Premises) which is acceptable to Landlord in its sole
and absolute discretion as a condition of leasing the Expansion Space. The Right
of First Negotiation described herein is personal to Tenant and may not be
exercised or assigned, voluntarily or involuntarily, by or to any person or
entity other than Tenant, without Landlord's prior written consent, which
Landlord may withhold in its sole and absolute discretion. This Right of First
Negotiation shall automatically terminate upon the earlier of the following: (i)
Tenant's exercise of its Expansion Option as set forth in Section 32 above, or
(ii) Tenant's assignment of this Lease for the remainder of the Term, or
sublease of all of the Premises for the remainder of the Term, unless pursuant
to a Permitted Transfer.

          34.  OPTION TO EXTEND. Subject to the terms and conditions set form
               ----------------
below, Tenant may at its option extend the Term of this Lease for two (2)
successive periods of five (5) years each. Each such period is called a "Renewal
                                                                         -------
Term." Each Renewal Term shall be upon the same terms contained in this Lease,
-----
except that (i) Landlord shall have no obligation to provide Tenant with any
Tenant Improvement Allowance in connection with such Renewal Terms, (ii) the
Base Rent during me Renewal Term shall be calculated as set forth below, and
(iii) any reference in the Lease to the "Term" or the Lease shall be deemed to
include any
<PAGE>

Renewal Term and apply thereto, unless it is expressly provided otherwise.
Tenant shall have no additional extension options.

                    A.   The Base Rent during a Renewal Term shall be the
     greater of (i) the Base Rent applicable to the last month prior to the
     applicable Renewal Term, or (ii) the Market Rate (defined hereinafter) for
     such space for a term commencing on the first day of the Renewal Term.
     "Market Rate" shall mean the then prevailing market rate for a comparable
     term commencing on the first day of the Renewal Term for tenants of
     comparable size and creditworthiness for comparable space in the Building
     and other first class office/R&D buildings of comparable age with similar
     projects in the vicinity of the Building.

                    B.   To exercise any option, Tenant must deliver a binding
     notice to Landlord not sooner than ten (10) months nor later than six (6)
     months prior to the expiration of the initial Term of this Lease, or the
     then applicable Renewal Term, as the case may be. Immediately (and in no
     event more than thirty (30) days) thereafter. Landlord and Tenant shall
     commence the process of calculating the Market Rate for the particular
     Renewal Term pursuant to the terms and conditions of Subsection C below and
     following such process Landlord shall inform Tenant of the Market Rate.
     Such calculations shall be final and shall not be recalculated at the
     actual commencement of such Renewal Term. If Tenant fails to timely give
     its notice of exercise, Tenant will be deemed to have waived its option to
     extend.

                    C.   Market Rate shall be determined as follows:

                              (i)    If Tenant provides Landlord with its
          binding notice of exercise pursuant to Subsection B above, then prior
          to the commencement date of such Renewal Term Landlord and Tenant
          shall commence negotiations to agree upon the Market Rate. If Landlord
          and Tenant are unable to reach agreement within twenty-one (21) days,
          then the Market Rate shall be determined in accordance with (ii)
          below.

                              (ii)   If Landlord and Tenant are unable to reach
          agreement on the Market Rate within said twenty-one (21) day period,
          then within seven (7) days, Landlord and Tenant shall each
          simultaneously submit to the other in a sealed envelope its good faith
          estimate of the Market Rate. If the higher of such estimates is not
          more than one hundred five percent (105%) of the lower, then the
          Market Rate shall be the average of the two. Otherwise, the dispute
          shall be resolved by arbitration in accordance with (iii) below.

                              (iii)  Within seven (7) days after the exchange of
          estimates, the parties shall select as an arbitrator an independent
          (i.e., one who has not previously worked for either Landlord or Tenant
          or their affiliates) MAI appraiser with at least five (5) years of
          experience in appraising office space in the metropolitan area in
          which the Project is located (a "Qualified Appraiser"). If the parties
                                           -------------------
          cannot agree on a Qualified Appraiser, then within a second period of
          seven (7) days, each shall select a Qualified Appraiser and within ten
          (10) days
<PAGE>

          thereafter, the two appointed Qualified Appraisers shall select a
          third Qualified Appraiser and the third Qualified Appraiser shall be
          the sole arbitrator. If one party shall fail to select a Qualified
          Appraiser within the second seven (7) day period, then the Qualified
          Appraiser chosen by the other party shall be the sole arbitrator.

                              (iv)   Within twenty-one (21) days after
          submission of the matter to the arbitrator, the arbitrator shall
          determine the Market Rate by choosing whichever of the estimates
          submitted by Landlord and Tenant the arbitrator judges to be more
          accurate. The arbitrator shall notify Landlord and Tenant of its
          decision, which shall be final and binding. If the arbitrator believes
          that expert advice would materially assist him, the arbitrator may
          retain one or more qualified persons to provide expert advice. The
          fees of the arbitrator and the expenses of the arbitration proceeding,
          including the fees of any expert witnesses retained by the arbitrator,
          shall be shared equally by both parties. Each party shall pay the fees
          of its respective counsel and the fees of any witness called by that
          party.

               D.   Tenant's option to extend is personal to Tenant and may not
     be exercised or assigned, voluntarily or involuntarily, by or to any person
     or entity other than Tenant, without Landlord's prior written consent,
     which Landlord may withhold in its sole and absolute discretion. Tenant's
     option to extend this Lease is subject to the conditions that: (i) on the
     date that Tenant delivers its binding notice exercising an option to
     extend. Tenant is not in default under this Lease after the expiration of
     any applicable notice and cure periods, and (ii) Tenant shall not have
     assigned the Lease for the remainder of the Term, or sublet all of the
     Premises for the remainder of the Term, unless pursuant to a Permitted
     Transfer.
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have executed this Lease.

                                       LANDLORD:
                                       CARRAMERICA REALTY CORPORATION,
                                       a Maryland corporation

                                       By: /s/ Philip L. Hawkins
                                          ------------------------------
                                       Print Name:  Philip L.  Hawkins
                                       Print Title: Managing Director

                                       Date:  9/14/98
                                            ----------------------------

                                       TENANT:

                                       APPLIED FIBER OPTICS, INC.,
                                       a California corporation

                                       By: /s/ Sheau Chen
                                          ------------------------------
                                       Print Name:  Sheau Chen
                                       Print Title: President and CEO

                                       Date:  8/31/98
                                            ----------------------------
<PAGE>

                            FIRST AMENDMENT TO LEASE

     THIS FIRST AMENDMENT TO Lease ("Amendment") is entered into this
July 28, 1999 (dated for reference purposes only) by and between CarrAmerica
Realty Corporation, a Maryland corporation, as Landlord, and WaveSplitter
Technologies, Inc. (formerly Applied Fiber Optics, Inc.), a California
corporation, as Tenant.

                                    RECITALS

     A.  Landlord and Tenant entered into that certain Lease dated as of
         August 27, 1998 (the "Lease") for certain premises located at
         46420-46430 Fremont Boulevard, Fremont, California in the project
         commonly known as Fremont Technology Park (collectively, the
         "Premises").

     B.  Although Item 15 of the Schedule to the Lease sets forth the Base
         Rent for the Premises, Section 3.C of the Lease requires that
         Landlord and tenant execute an amendment to the Lease to increase the
         amount of Base Rent payable under the Lease if Tenant utilized the
         entire First and Second Level Tenant Improvement Allowances available
         under the Lease. Since Tenant did use such First and Second Level
         Tenant Improvement Allowances, Landlord and Tenant hereby agree to
         amend the Lease as set forth below:

                                   AMENDMENT

     1.  Incorporation of Recitals and Definitions. The Recitals are hereby
         -----------------------------------------
incorporated herein by this reference. The definitions used by not defined
herein shall have the same meanings given such terms in the Lease.

     2.  Base Rent. Tenant hereby acknowledges that it has used all of the
         ---------
First and Second Level Tenant Improvement Allowances available under the
Lease. Therefore, pursuant to Sections 3.B of Exhibit C, Item 15 of the
Schedule is hereby amended in its entirety to provide that the amount of
monthly Base Rent payable by Tenant under the Lease shall be as follows:

<TABLE>
<CAPTION>
                                     Monthly             Annual
     Period:                         Base Rent:          Base Rent:
     ------                          ---------           ---------
     <S>                             <C>                 <C>
     Months 1 through 12             $77,590.42          $931,085.04
     Months 13 through 24            $80,298.07          $963,576.84
     Months 25 through 36            $83,005.72          $996,068.64
     Months 37 through 48            $85,713.37          $1,028,560.44
     Months 49 through 60            $88,421.02          $1,061,052.24
     Months 61 through 72            $91,128.67          $1,093,544.04
     Months 73 through 84            $93,836.32          $1,126,035.84
</TABLE>

As required under the Lease, upon execution and delivery of this Amendment by
Tenant to Landlord shall also pay Landlord in one lump sum, an amount equal to
the difference

                                       43
<PAGE>

between the Base Rent previously paid by Tenant, and the Base Rent for such
Buildings as increased by this Amendment.

     3.  Confirmation. Except as amended by this Amendment, the parties hereby
         ------------
confirm the Amendment is in full force and effect. This Amendment shall be
construed and interpreted in accordance with the terms of the Lease for all
purposes.

     IN WITNESS WHEREOF the parties have executed this Amendment as of the
date first above written.

TENANT:

WAVESPLITTER TECHNOLOGIES, INC.,
a California corporation

By:     /s/ BRUCE POLLOCK
   ---------------------------
Name:       BRUCE POLLOCK
     -------------------------
Title:        VP & CEO
      ------------------------

LANDLORD:

CARRAMERICA REALTY CORPORATION,
a Maryland corporation

By:     /a/ LEAH N. SEGAWA
   --------------------------------
Name:       Leah N. Segawa
     ------------------------------
Title:    Managing Director

                                       44
<PAGE>

                           SECOND AMENDMENT TO LEASE

     THIS SECOND AMENDMENT TO Lease ("Amendment") is entered into this June 9,
2000 (dated for reference purposes only) by and between CarrAmerica Realty
Corporation, a Maryland corporation, as Landlord, and Wavesplitters
Technologies, Inc. (formerly Applied Fiber Optics, Inc.), a California
corporation, as Tenant.

                                    RECITALS

     A.  Landlord and Tenant entered into that certain Lease dated as of August
27, 1998 for certain premises located at 46420 - 46430 Fremont Boulevard,
Fremont, California (the "Premises") in the project commonly known as Fremont
Technology Park (the "Park"), as amended by that certain First Amendment to
Lease dated July 28, 1999 (collectively referred to as the "Lease").

     B.  The Lease granted to Tenant a Right of First Negotiation with respect
to certain space (the "Expansion Space") to be constructed on the property
commonly known as the "Phase 2" portion of the Park, as more particularly
described in Exhibit A to the Lease.

     C.  Landlord and D&V Ventures ("D&V") entered into that certain Purchase
and Sales Agreement dated as of April 24, 2000 (the "Agreement") whereby
Landlord would sell to D&V and D&V would purchase from Landlord the Phase 2
Property.

     D.  Tenant and D&V's assignee, Fremont Ventures, L.L.C. ("FV"), have
executed (or will soon execute) a lease whereby FV, subject to D&V's or FV's
acquisition of the Phase 2 Property, would construct one or more buildings on
the Phase 2 Property and lease to Tenant certain space in such building(s)
pursuant to the terms of such lease.

     E.  Landlord and Tenant desire to amend the Lease to eliminate the Right of
First Negotiation as set forth below:

                                   AMENDMENT

     1.  Incorporation of Recitals and Definitions. The Recitals are hereby
         ------------------------------------------
incorporated herein by this reference. The definitions used but not defined
herein shall have the same meanings given such terms in the Lease.

     2.  Right of First Negotiation. Section 33 of the Lease shall be deleted in
         ---------------------------
its entirety and have no legal force or effect.

     3.  Counterparts. This Amendment may be executed in counterparts, all such
         -------------
executed counterparts shall constitute the same agreement, and the signature of
any party to any counterpart shall be deemed a signature to, and may be appended
to, any other counterpart.

     4.  Confirmation. Except as amended by this Amendment, the parties hereby
         -------------
confirm that the Lease is in full force and effect. This Amendment shall be
construed and interpreted in accordance with the terms of the Lease for all
purposes.

                                       45
<PAGE>

     IN WITNESS WHEREOF the parties have executed this Amendment as of the date
first above written.

TENANT:

WAVESPLITTERS TECHNOLOGIES, INC.

(formerly APPLIED FIBER OPTICS, INC.),

a California corporation

By:  /s/ BRUCE POLLOCK
     ----------------------------------------------
Name:    BRUCE POLLOCK
       ----------------------------------------------
Its:       VP & CFO
      ----------------------------------------------
Date:
       ----------------------------------------------

LANDLORD:

CARRAMERICA REALTY CORPORATION,

a Maryland corporation

By:  /s/ KAREN B. DORIGAN
     -----------------------------------------------
Name:    KAREN B. DORIGAN
       -----------------------------------------------
Its:     Managing Director
      -----------------------------------------------
Date:
       -----------------------------------------------

                                       46<PAGE>

                                                                      EXECUTION
                                                                        8/18/00

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

                             LEASE AGREEMENT BETWEEN

                              ADVANCE/GLB 2 L.L.C.

                                AS LANDLORD, AND

                           eRESEARCHTECHNOLOGY, INC.,

                                    AS TENANT

                             DATED: AUGUST 18, 2000

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

<PAGE>

                                  LEASE SUMMARY

<TABLE>
<CAPTION>

<S>                       <C>
Tenant:                    eRESEARCHTECHNOLOGY, INC., a Delaware corporation

Landlord:                  ADVANCE/GLB 2 L.L.C., a New Jersey limited liability company

Date of this Lease:        August 18, 2000

Premises:                  Tenant's Rentable Square Feet in the office building commonly known as Advance at Bridgewater III, and
                           whose street address is 1150 Route 22 East, Bridgewater, New Jersey. The Premises are outlined on the
                           plan attached to the Lease as Exhibit A. The Building is part of an office park located on the Land. The
                           "Premises" includes the non-exclusive right to use the common areas of the Building and the Park.

Tenant's Rentable
Square Feet:               30,944 rentable square feet, consisting of 30,944 rentable square feet on the third floor of the
                           Building.

Building:                  The office building commonly known as Advance at Bridgewater III, and whose street address is 1150 Route
                           22 East, Bridgewater, New Jersey, (including the parking areas servicing the Building and other Common
                           Elements appurtenant thereto as set forth in the Master Deed establishing the Condominium), and
                           designated as Unit III in Executive Quarters at Bridgewater, a Condominium located on Lot 3 in Block 206
                           on the Tax Map of the Township of Bridgewater.

Land:                      The land on which the Park is located and described as Lots 2,3,7,8,9, 10 and 50 in Block 206 on the Tax
                           Map of the Township of Bridgewater, New Jersey, as described on Exhibit B.

Park:                      An office park consisting of the Building, together with the existing buildings known as Advance at
                           Bridgewater I and II, and Phases III and IV to be constructed, as described on Exhibit B.

Tenant
Parking Spaces:            One hundred twenty four (124) undesignated non-exclusive spaces and code required visitor parking.

Anticipated
Commencement
Date:                      November 1, 2000

</TABLE>

                                        i

<PAGE>

<TABLE>
<CAPTION>
<S>                        <C>
Commencement
Date:                      The earlier of (i) the date the Premises are deemed completed, less the number of Tenant Delay Days,
                           subject to confirmation and possible amendment pursuant to Section 3(b) and in accordance with Exhibit E
                           (provided such date shall not be before the Anticipated Commencement Date), or (ii) January 1, 2001.

Expiration
Date:                      11:59 p.m. on the last day of the one hundred twentieth (120th) full calendar month following the
                           Commencement Date, subject to adjustment and earlier termination as provided in the Lease, subject to
                           confirmation and possible amendment pursuant to Section 3(b) and in accordance with Exhibit E.

Term:                      Approximately one hundred twenty (120) months, commencing the Commencement Date and ending on the
                           Expiration Date, subject to adjustment and earlier termination as provided in the Lease.

Renewal Term:              One, 5-year term in accordance with Exhibit C.

Permitted Use:             General office use in accordance with local codes and in keeping with the class and character of the
                           Building and for no other purposes.

Basic Rent:                Basic Rent is quoted on a per square foot per year gross basis plus Tenant Electric and shall be the
                           following amounts for the following periods of time:

                           Lease Year      Basic Rent
                           ----------      -----------------------------------------

                           Years 1-3       $835,488.00 per annum      $69,624.00 per
                                                                      Lease Month
                                           ($27.00 per rentable
                                           square foot)

                           Years 4-6       $886,545.60 per annum      $73,878.00 per
                                                                      Lease Month
                                           ($28.65 per rentable
                                           square foot)

                           Years 7-10      $939,150.40 per annum      $78,262.53 per
                                                                      Lease Month

                                           ($30.35 per rentable
                                           square foot)

Prepaid Rent:              The first monthly installment of Basic Rent and Tenants Proportionate Expense Share of Operating Costs in
                           accordance with Section 4(b).

</TABLE>
                                       ii

<PAGE>

<TABLE>
<CAPTION>

<S>                         <C>
Construction
Allowance:                 $28.00/RSF=$866,432.00

Security Deposit:          $469,575.18 in cash or by an irrevocable Letter of Credit as provided in Subsection 23(b).

Rentable Square Feet
in Building:               80,068 rentable square feet.

Tenant's
Proportionate Share:       38.6%, which is the percentage obtained by dividing (a) Tenant's Rentable Square Feet by (b) the Rentable
                           Square Feet in the Building (30,944/80,068).

Base Year:                 The initial twelve months of occupancy.

Base Operating
Costs:                     The Operating Costs incurred during the Base Year appropriately adjusted to reflect the Operating Costs
                           which would have been incurred if the Building was not less than ninety-five percent (95%) occupied
                           during the entire Base Year.

Late Charge:               Five percent (5%) of the delinquent payment.

Interest Rate:             The lesser of eighteen (18%) percent per annum or the maximum lawful rate of interest.

Tenant's SIC
Number:                    7372, as designated in the Standard Industrial Classification manual prepared by the office of the
                           Management and Budget in the Executive Office of the President of the United States.

Tenant's Address:          Prior to Commencement Date:                 Following Commencement Date:
                           --------------------------                  ---------------------------
                           eResearchTechnolgy, Inc.                    eResearchTechnolgy, Inc.
                           1125 US Highway Rt. 22 West                 1150 Route 22 East,
                           Bridgewater, New Jersey 08807               Bridgewater, New Jersey 08807
                           Attention: Cheryl Kaine                     Attention: Cheryl Kaine
                           Telephone: 908/704-8010                     Telephone:_________________________
                           Telecopy: 908/704-8218                      Telecopy:__________________________

</TABLE>

                                       iii

<PAGE>

<TABLE>
<CAPTION>

<S>                        <C>                                        <C>
Guarantor:                 PRWW, Inc.                                  With a Copy To:
                                                                       --------------
                                                                       Duane, Morris & Heckscher LLP
                                                                       One Liberty Place
                                                                       Philadelphia, PA 19103-7396
                                                                       Attention: Thomas Spencer, Esq.
                                                                       Telephone: 215/979-1000
                                                                       Telecopy: 215/979-1020

Landlord's                  For all Notices:                           With a copy to:
Address:                    ---------------                            --------------
                            Advance/GLB 2 L.L.C.                       Windels Marx Lane & Mittendorf
                            c/o The Advance Group, Inc.                120 Albany Street Plaza
                            1545 State Highway 206                     New Brunswick, NJ 08901
                            Suite 100                                  Attention: Anthony R. Coscia, Esq.
                            Bedminster, NJ 07921                       Telephone: 732/846-7600
                            Attention: Peter J. Cocoziello             Telecopy: 732/846-8877
                            Telephone: 908/719-3000
                            Telecopy: 908/719-9444

Landlord's
Mortgagee:                 Wells Fargo Bank, or any subsequent mortgagee under any deed of trust, mortgage, or other security
                           instrument, or any ground lease, master lease, or primary lease, that now or hereafter covers all or any
                           part of the Premises, the Building or the Land.

Broker:                    Insignia/ESG Co., Inc.

Utilities in Tenant's
Name:                      Electric.

HVAC
Overtime:                  $40.00 per hour.

The foregoing Lease Summary is incorporated into and made a part of the Lease
identified above. If any conflict exists between the Lease Summary and the
Lease, then the Lease shall control.
</TABLE>

                                       iv

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
1.     Definitions.............................................................1

2.     Lease Grant.............................................................1

3.     Term; Delivery of Possession............................................1

4.     Rent....................................................................2
       (a) Payment.............................................................2
       (b) Operating Costs.....................................................2

5.     Use.....................................................................4

6.     Landlord's Obligations..................................................5
       (a) Services............................................................5
       (b) Electric............................................................5
       (c) Restoration of Services; Abatement..................................6

7.     Improvements; Alterations; Repairs; Maintenance.........................6
       (a) Improvements; Alterations...........................................6
       (b) Repairs; Maintenance................................................6
       (c) Performance of Work.................................................7
       (d) Construction Liens..................................................7

8.     Assignment and Subletting...............................................8
       (a) Transfers...........................................................8
       (b) Consent Standards...................................................8
       (c) Request for Consent.................................................9
       (d) Conditions to Consent...............................................9
       (e) Cancellation........................................................9
       (f) Additional Compensation............................................10
       (g) Joint and Several Liability........................................10

9.     Insurance; Waiver of Subrogation; Indemnity............................10
       (a) Insurance..........................................................10
       (b) Waiver of Subrogation..............................................12
       (c) Indemnity..........................................................12
       (d) Landlord's Insurance...............................................12

10.    Subordination and Non-Disturbance; Attornment;
           Notice to Landlord's Mortgagee.....................................12
       (a) Subordination and Non-Disturbance..................................12
       (b) Attornment.........................................................13
       (c) Notice to Landlord's Mortgagee.....................................13

                                        v

<PAGE>

       (d) Landlord's Mortgagee's Protection Provisions.......................13

11.    Rules and Regulations..................................................13

12.1   Condemnation...........................................................14
       (a) Total Taking.......................................................14
       (b) Partial Taking.....................................................14
       (c) Landlord's Termination Right.......................................14
       (d) Tenant's Termination Right.........................................14
       (e) Apportionment of Rent..............................................14

12.2.  Awards.................................................................15

12.3.  Temporary Taking.......................................................15

13.    Fire or Other Casualty.................................................15

13.1   Restoration............................................................15

13.2.  Landlord's Termination Right...........................................15

13.3.  Tenant's Termination Right.............................................16

13.4.  Inability to Collect...................................................16

14.    Environmental Compliance...............................................16

15.    Personal Property Taxes................................................19

16.    Default................................................................19

17.    Payment by Tenant; Non-Waiver..........................................21
       (a) Payment by Tenant..................................................21
       (b) No Waiver..........................................................21

18.    Surrender of Premises..................................................22

19.    Holding Over...........................................................22

20.    Certain Rights Reserved by Landlord....................................22

21.    Intentionally Omitted..................................................23

22.    Parking................................................................23

23.    Security Deposit.......................................................23

                                       vi

<PAGE>

24.    Miscellaneous..........................................................25
       (a) Landlord Transfer..................................................25
       (b) Landlord's Liability...............................................25
       (c) Force Majeure......................................................25
       (d) Brokerage..........................................................25
       (e) Estoppel Certificates..............................................25
       (f) Notices............................................................25
       (g) Separability.......................................................26
       (h) Amendments and Binding Effect......................................26
       (i) Quiet Enjoyment....................................................26
       (j) No Merger..........................................................26
       (k) No Offer...........................................................26
       (l) Entire Agreement...................................................26
       (m) Waiver of Jury Trial...............................................26
       (n) Governing Law......................................................27
       (o) Joint and Several Liability........................................27
       (p) Financial Reports..................................................27
       (q) Landlord's Fees....................................................27
       (r) Telecommunications.................................................27
       (s) Confidentiality....................................................27
       (t) Exhibits...........................................................28
       (u) Definitions........................................................28

25.    Other Provisions.......................................................28

              LIST OF EXHIBITS
              Exhibit A -   Plan of Premises
              Exhibit B -   Description of Land and/or Site Plan
              Exhibit C -   Renewal Option
              Exhibit D -   Tenant Work Letter
              Exhibit D-1 - Standard Tenant Improvements
              Exhibit E -   Amendment No. 1 - Commencement Date Agreement
              Exhibit F -   Guaranty
              Exhibit G -   Cleaning Specifications
              Exhibit H -   Rules and Regulations
              Exhibit I -   Form of Tenant Estoppel Certificate
              Exhibit J -   Intentionally Omitted
              Exhibit K -   Intentionally Omitted
              Exhibit L -   Intentionally Omitted
              Exhibit N -   Intentionally Omitted
              Exhibit M -   Intentionally Omitted
              Exhibit O -   Signage
              Exhibit P -   Operating Costs Estimate
              Exhibit Q -   Operating Costs Exclusions
              Exhibit R -   Landlord's Insurance

                                       vii

<PAGE>

                                      LEASE

         THIS LEASE AGREEMENT (this "Lease") is entered into as of the Date of
this Lease, ADVANCE/GLB 2 L.L.C., a New Jersey limited liability company
("Landlord"), and eRESEARCHTECHNOLOGY, INC., a Delaware corporation ("Tenant").

         1. Definitions. The Lease Summary is incorporated herein by reference
for all purposes. All other terms shall have the meanings set forth herein.

         2. Lease Grant. Subject to the terms of this Lease, Landlord leases to
Tenant, and Tenant leases from Landlord, the Premises for the Term, and hereby
grants to Tenant the non- exclusive right to use the common areas designated on
the plan attached as Exhibit B hereto, subject to those areas reserved to
Landlord and subject to Landlord's reasonable rules and regulations governing
such use.

         3. Term; Delivery of Possession.

            (a) The Term of this Lease shall commence on the Commencement Date
and end on the Expiration Date unless the Term shall sooner or later cease and
terminate as provided for under the specific terms of this Lease.

            (b) Landlord agrees to provide the Work (as such term is defined in
Exhibit D annexed hereto and made a part hereof) in accordance with the terms,
conditions and provisions of Exhibit D. Tenant shall occupy the Premises as soon
as the Premises shall be deemed completed for Tenant's occupancy and the
Anticipated Commencement Date shall have occurred (but not prior to such date
without the express written consent of Landlord). The Premises shall be deemed
completed on the date that: (1) a certificate of occupancy (temporary or final)
for the Premises for the Permitted Use has been issued to the Landlord by the
appropriate governmental authority; and (2) the Work shall have been completed,
other than (A) minor or insubstantial details of construction, mechanical
adjustment or decoration, the non-completion of which do not materially
interfere with Tenant's intended use of the Premises, and (B) any part of the
Work which is not completed due to a delay in performance of the Work described
in Paragraph 3 of Exhibit D. If a temporary certificate of occupancy is
obtained, Landlord covenants to obtain a final certificate of occupancy, at its
sole cost and expense, within the required time period set forth in any
temporary certificate of occupancy. In the event, however, a final certificate
of occupancy cannot be furnished until any fixture work to be performed by
Tenant ("Tenant's Work") is complete, then, in such event, this condition shall
not accrue until any such Tenant's Work is complete. If the Premises are not
deemed completed by the Anticipated Commencement Date, Landlord shall not be in
default hereunder or be liable for damages therefor. Landlord and Tenant shall
execute within fifteen (15) days after the date the Premises are deemed
completed for Tenant's occupancy, an amendment substantially in the form of
Exhibit E hereto. Notwithstanding the foregoing, if the Premises are not deemed
completed by February 1, 2001 (subject to Force Mejeure and Tenant Delay Day
extensions), then Tenant may terminate this Lease upon not less than 10 days
written notice to Landlord, in which event this Lease shall terminate and the
parties hereto shall have no further liability to the other except as specified
herein.

                                        1

<PAGE>

         4. Rent.

            (a) Payment. Commencing on the Commencement Date, Tenant shall
timely pay to Landlord all Basic Rent and Additional Rent (collectively,
"Rent"), without deduction or set-off, at Landlord's Address or as otherwise
specified by Landlord. Basic Rent, adjusted as herein provided, and Tenant's
Proportionate Share of Operating Costs (in accordance with Section 4(b)), shall
be payable monthly in advance. The first monthly installment of Basic Rent and
Tenant's Proportionate Share of Operating Costs shall be payable
contemporaneously with the execution of this Lease; thereafter, Basic Rent and
Tenant's Proportionate Share of Operating Costs shall be payable on the first
day of each month beginning on the first day of the second full calendar month
of the Term. The monthly Basic Rent for any partial month at the beginning of
the Term shall be prorated based on a 365 day year. Tenant shall pay all other
sums that Tenant may owe to Landlord or otherwise be required to pay under this
Lease other than Basic Rent ("Additional Rent") within thirty (30) days
following Tenant's receipt of an invoice setting forth the sums that are due;
provided, however, that the parties acknowledge that Tenant shall pay Tenant's
Electric and Tenant's Proportionate Share of Operating Costs in accordance with
Section 4(b) hereof. If Landlord, at any time or times, shall accept Rent after
the same shall become due and payable, such acceptance shall not excuse delay
upon subsequent occasions, or constitute, or be construed as, a waiver of any of
Landlord's rights hereunder.

            (b) Operating Costs.

                (1) Tenant shall pay an amount equal to Tenant's Proportionate
         Share of Operating Costs. Landlord shall make a good faith estimate of
         Tenant's Proportionate Share of Operating Costs for any calendar year
         or part thereof during the Term, and Tenant shall pay to Landlord, on
         the Commencement Date and on the first day of each calendar month
         thereafter, in advance, an amount equal to Tenant's Proportionate Share
         of Operating Costs for such calendar year or part thereof divided by
         the number of months therein. Initially, Tenant shall pay Landlord
         $6.99 per Tenant's Rentable Square Feet per annum as the Expense
         Estimate. Tenant shall nevertheless be responsible for the actual
         Tenant's Proportionate Share of Operating Costs regardless of the
         estimate. Except for snow removal, Landlord shall cap any increase in
         the Expense Estimate at seven percent (7%) during the initial twelve
         (12) months of occupancy. From time to time (but not more than one time
         each year), Landlord may re-calculate the Expense Estimate and deliver
         a copy of the re- calculation to Tenant. Thereafter, the monthly
         installments of Tenant's Proportionate Share of Operating Costs shall
         be appropriately adjusted in accordance with the Expense Estimate so
         that, by the end of the calendar year in question, Tenant shall have
         paid all of Tenant's Proportionate Share of Operating Costs as
         calculated by Landlord. Any amounts paid based on the Expense Estimate
         shall be subject to adjustment as herein provided when actual Operating
         Costs are available for each calendar year.

                "Operating Costs" shall include all expenses and disbursements
         (subject to the limitations set forth below) that Landlord incurs in
         connection with the ownership, operation, and maintenance of the
         Building and the Land, determined in accordance with GAAP, including
         the following costs: (1) reasonable wages and salaries (including
         management fees) of all employees engaged in the operation,
         maintenance, and security of the Building, including taxes, insurance
         and benefits relating thereto; (2) all supplies and

                                        2

<PAGE>

         materials used in the operation, maintenance, repair, replacement, and
         security of the Building; (3) costs for improvements made to the
         Building which, although capital in nature, are reasonably likely to
         reduce the normal operating costs (including all utility costs) of the
         Building, as well as capital improvements made in order to comply with
         any law hereafter promulgated by any governmental authority, as
         amortized over the useful economic life of such improvements as
         determined by Landlord in its reasonable discretion; (4) cost of all
         utilities and services, except for the cost of utilities and services
         separately billed or metered to any tenants in the Building; (5)
         insurance expenses; (6) repairs, replacements, and general maintenance
         of any facility or existing systems of the Building; (7) service or
         maintenance contracts or costs incurred by Landlord for the operation,
         maintenance, repair, replacement, or security of the Building
         (including alarm service, window cleaning, elevator maintenance,
         landscaping, snow removal, parking lot maintenance and refuse
         collection); (8) expenses and disbursements that Landlord incurs in
         connection with the ownership, operation and maintenance of the Park,
         as set forth in the master deed establishing the condominium in which
         the Premises are located; (9)Taxes; (10) Management fees (and for as
         long as the current Landlord owns the Building, not to exceed 5% of the
         Building's gross Rent); and (11) any other Building expenses noted on
         Exhibit P. In determining the amount of Base Operating Costs or the
         Operating Costs for any subsequent year, if less than ninety-five
         percent (95%) of the rentable area of the Building shall have been
         occupied by tenant(s) at anytime during the applicable year, Operating
         Costs shall be determined for such year to be an amount equal to the
         like expenses which would normally be expected to be reasonably
         incurred had such occupancy been ninety-five percent (95%) throughout
         such year.

                           Notwithstanding anything set forth contrary,
         Operating Costs shall not include Operating Cost Exclusions, as defined
         in Exhibit Q hereto.

                           "Taxes" shall mean taxes, assessments, and
         governmental charges whether federal, state, county or municipal, and
         whether they be by taxing districts or authorities presently taxing or
         by others, subsequently created or otherwise, and any other taxes and
         assessments attributable to the Building (or its operation), excluding,
         however, penalties and interest thereon and federal and state taxes on
         income (if the present method of taxation changes so that in lieu of
         the whole or any part of any Taxes, there is levied on Landlord a
         capital tax directly on the rents received therefrom or a franchise
         tax, assessment, or charge based, in whole or in part, upon such rents
         for the Building, then all such taxes, assessments, or charges, or the
         part thereof so based, shall be deemed to be included within the term
         "Taxes" for purposes hereof). Taxes shall include the costs of
         consultants retained in an effort to lower taxes and all costs incurred
         in disputing any taxes or in seeking to lower the tax valuation of the
         Building. For property tax purposes, Tenant waives all rights to
         protest or appeal the appraised value of the Premises, as well as the
         Building, and all rights to receive notices of reappraisement.

                           (2) By April 1 of each calendar year, or as soon
         thereafter as practicable, Landlord shall furnish to Tenant a statement
         of Operating Costs for the previous year (the "Operating Costs
         Statement"). If the Operating Costs Statement reveals that Tenant paid
         more than Tenant's Proportionate Share of Operating Costs for the year
         for which such statement was prepared, then Landlord shall promptly
         credit or reimburse Tenant for such

                                        3

<PAGE>
         excess; likewise, if Tenant paid less than Tenant's Proportionate Share
         of Operating Costs actually due, then Tenant shall promptly pay
         Landlord such deficiency.

                           (3) Landlord agrees to maintain complete records of
         all Operating Costs reimbursable by Tenant under the terms of this
         Lease. All such records shall be maintained in accordance with GAAP and
         shall be retained for a period of two (2) years following the date on
         which such costs were charged to Tenant. Tenant shall have the right to
         designate an independent certified public accounting firm to examine,
         copy and audit such records at all reasonable times (but not more than
         one time each year), upon ten (10) days advance written notice;
         provided such audit shall take place during normal business hours at
         Landlord's office and the results of such audit shall be delivered to
         Landlord within sixty (60) days following such audit request. Each
         Operating Costs Statement shall be conclusive and binding upon Tenant
         unless, within three (3) months after the date Tenant receives such
         Operating Costs Statement, Tenant shall notify Landlord that it
         disputes the correctness of the Operating Costs Statement; provided,
         however, that with respect to the Operating Costs relating to the first
         twelve (12) Lease Months, Tenant shall have the right to dispute the
         correctness of such statement within six (6) Lease Months after the
         date Tenant receives such statement. In connection therewith, Tenant
         and such accountants (and Tenant's attorneys) shall execute and deliver
         to Landlord a confidentiality agreement, in form and substance
         reasonably satisfactory to Landlord and Tenant, whereby such parties
         agree not to disclose to any third- party any of the information
         obtained, or conclusions reached, in connection with such review, or
         that such review was undertaken, unless (and only to the extent) such
         disclosure is required by law; provided, further, that Tenant and such
         accountants and attorneys shall not disclose the existence, or nature,
         of any such litigation unless such disclosure is required pursuant to
         the provisions of this Lease.

                           If it is determined by such audit that Landlord had
         overcharged Tenant, Landlord shall promptly credit or refund to Tenant
         any overpayment. In the event such audit discloses an undercharge of
         such items as billed to Tenant, Tenant shall pay Landlord the amount of
         such undercharge within thirty (30) days of completion of such audit.

                  (c) All past due payments required of Tenant hereunder shall
bear interest from the date due until paid at the Interest Rate; additionally,
Landlord may charge Tenant the Late Charge to reimburse Landlord for its cost
and inconvenience incurred as a consequence of Tenant's delinquency. In no
event, however, shall the charges permitted under this Lease, to the extent they
are considered to be interest under applicable federal, state, and local laws,
rules and regulations, all court orders, governmental directives, and
governmental orders, and all restrictive covenants affecting the Premises
("Laws"), exceed the maximum lawful rate of interest.

         5. Use. Tenant shall continuously occupy and use the Premises only for
the Permitted Use and shall comply, at its sole cost, with all Laws relating to
the use, condition, access to, and occupancy of the Premises. Tenant shall have
access to the Premises after Business Hours, so long as Tenant is not generally
conducting business from the Premises after Business Hours, subject to the other
provisions of this Lease. Landlord, however, reserves the right to reasonably
limit or regulate access to the Building during nights and weekends, if
required, to insure security of the Building and the Park. If, because of
Tenant's or a Tenant Party's acts, the rate of insurance on the

                                        4

<PAGE>

Land, the Building or its contents increases, Tenant shall pay to Landlord the
amount of such increase on demand, as Additional Rent, and acceptance of such
payment shall not waive any of Landlord's other rights. Tenant shall conduct its
business and control any assignees or subtenants claiming by, through, or under
Tenant or any of their respective agents, contractors, employees and invitees
(each a "Tenant Party") so as not to create any nuisance or unreasonably
interfere with other tenants or Landlord in its management of the Building.

            6.    Landlord's Obligations.

                  (a) Services. Landlord shall, subject to Force Majeure,
furnish to Tenant, consistent with general office use, the following: (1)
reasonably adequate hot and cold water for Tenant's use for ordinary drinking,
lavatory and cleaning purposes; (2) heating, ventilation and refrigerated air
conditioning system ("HVAC"), as appropriate, during Business Hours, at such
temperatures and in such amounts as are set forth on Exhibit D-1; (3) janitorial
service, in accordance with the Cleaning Specifications attached as Exhibit G,
any areas of the Premises requiring additional cleaning shall be done, at
Tenant's sole expense, by Landlord's contractor whose rates shall be competitive
with rates of other such contractors in the vicinity of the Building; (4)
elevators for ingress and egress to the floor on which the Premises are located,
in common with other tenants, provided that Landlord may reasonably limit the
number of operating elevators during non-Business Hours and holidays; (5) snow
and ice removal for the parking area, sidewalks and driveways of the Building;
and (6) electrical current for general office lighting and customary office
machines that do not require more than 110-220 volts. Landlord shall maintain
the common areas of the Building and the Park in reasonably good order and
condition, provided, however, that any damage caused by Tenant or a Tenant Party
shall be repaired by Landlord at Tenant's sole cost and expense.

                  (b) Electric. Landlord shall arrange to obtain electric energy
to service the fixtures located within the Premises, at Tenant's sole cost,
directly from the public utility company furnishing electric service to the
Building; provided, however, that Landlord shall pay certain costs associated
therewith in accordance with Exhibit D and Tenant shall pay all charges as
measured thereby. Such electric energy shall be furnished to Tenant by means of
the existing Building panel boards, feeders, risers, wiring and other conductors
and equipment. Tenant shall not install any electrical equipment requiring
special wiring or requiring voltage in excess of 220 volts or otherwise
exceeding Building capacity without the prior written consent of Landlord, which
shall not be unreasonably withheld, delayed or conditioned. The use of
electricity in the Premises shall not exceed the capacity of existing feeders
and risers to or wiring in the Premises. Any risers or wiring required to meet
Tenant's excess electrical requirements shall, upon Tenant's written request, be
installed by Landlord, at Tenant's reasonable cost, if, in Landlord's reasonable
judgment, the same are necessary and shall not cause permanent damage to the
Building or the Premises, cause or create a dangerous or hazardous condition,
entail excessive or unreasonable alterations, repairs, or expenses, or interfere
with or disturb other tenants of the Building. If Tenant uses machines or
equipment in the Premises which affect the temperature otherwise maintained by
the air conditioning system or otherwise overload any utility, Landlord,
following notice to Tenant and Tenant's failure to remove such machines or
equipment within five (5) business days of such notice, may install supplemental
air conditioning units or other supplemental equipment in the Premises, and the
reasonable cost thereof, including the cost of installation, operation, use, and
maintenance, shall be paid by Tenant to Landlord as Additional Rent.

                                        5

<PAGE>

                  (c) Restoration of Services; Abatement. Landlord shall use
reasonable efforts to restore any service required of it that becomes
unavailable; however, such unavailability shall not render Landlord liable for
any damages (including consequential damages) caused thereby, be a constructive
eviction of Tenant, constitute a breach of any implied warranty, or entitle
Tenant to any abatement of Tenant's obligations hereunder. Notwithstanding the
foregoing, if Tenant is precluded from using, and does not use and occupy, the
Premises (or a portion thereof) because the Premises are untenantable for a
period in excess of fifteen (15) consecutive days after Landlord receives
written notice of same from Tenant as a result of the unavailability of such
services, then, provided such untenantability did not result from the negligence
or willful misconduct of Tenant or any Tenant Party, the Rent (or a pro-rated
portion thereof if only a portion of the Premises is untenantable) shall be
abated on a per diem basis for the period of time commencing on the sixteenth
(16th) day following receipt of the notice by Landlord until such time as Tenant
reoccupies, or is able to reoccupy, the Premises or such portion thereof, as
applicable. Notwithstanding the foregoing, the parties acknowledge that Tenant's
right under this paragraph shall not be an exclusive remedy of Tenant but
Landlord shall not be liable to Tenant for any unavailability of services unless
same is solely caused by the intentional acts or gross negligence of Landlord.

            7.    Improvements; Alterations; Repairs; Maintenance.

                  (a) Improvements; Alterations. Improvements or alterations to
the Premises shall be installed and/or made at Tenant's expense only in
accordance with plans and specifications which have been previously submitted to
and approved in writing by Landlord. Improvements or alterations in or to the
Premises which shall cost less than $10,000.00 in the aggregate and which do not
affect the Building's structure or its HVAC, plumbing, electrical, or mechanical
systems, may be made without Landlord's prior written consent. All other
improvements or alterations may only be made with Landlord's consent, which
shall not be unreasonably withheld or delayed, however, Landlord may withhold
its consent, in its sole discretion, to any alteration or addition that would
affect the Building's structure or its HVAC, plumbing, electrical, or mechanical
systems. All alterations, additions, and improvements shall be constructed,
maintained, and used by Tenant, at its risk and expense, in accordance with all
Laws; Landlord's approval of the plans and specifications therefor shall not be
a representation by Landlord that such alterations, additions, or improvements
comply with any Law.

                     (b)   Repairs; Maintenance.

                            (1) Tenant shall, at its sole cost, repair and
         maintain the Premises (including all fixtures, appurtenances and
         equipment therein but excluding structural repairs and maintenance) in
         a clean, safe, and operable condition, and shall not permit or allow to
         remain any waste or damage to any portion of the Premises, including
         damage to any painted walls, carpeting, and ceiling tiles; provided,
         however, that all carpet stains shall be promptly reported to Landlord,
         who may have the stains cleaned and charge the cost thereof to Tenant
         as Additional Rent. In addition, Tenant shall repair or replace,
         subject to Landlord's direction and supervision, any damage to the
         Building and/or the Park caused by Tenant or a Tenant Party. If Tenant
         fails to make such repairs or replacements within fifteen (15) days
         after the occurrence of such damage or if such repairs or replacements
         affect the structure of the Building or the Building mechanical
         systems, then Landlord may, at Landlord's option, make the same and the
         actual, reasonable costs shall be paid by Tenant. If any such damage

                                        6

<PAGE>

         occurs outside of the Premises, then Landlord may elect to repair such
         damage at Tenant's expense. The cost of all repair or replacement work
         performed by Landlord under this Section 7(b)(1) shall be paid by
         Tenant to Landlord as Additional Rent.

                           (2) Subject to Tenant's obligations to repair or
         replace as provided in Section 7(b)(1) above, during the Term, Landlord
         shall, at its sole expense, perform diligently, promptly and in a good
         and workmanlike manner, in accordance with all Laws, all maintenance,
         repairs and replacements to (i) the structural components of the
         Building, including without limitation the roof deck, exterior walls,
         support beams, foundations, columns, exterior doors and windows and
         lateral support to the Building; and (ii) the Building and the Premises
         caused by the negligence or willful misconduct of Landlord, its agents,
         independent contractors, representatives or employees. Notwithstanding
         the foregoing, any maintenance or repair required hereunder that is
         caused by the negligence or willful misconduct of Tenant or a Tenant
         Party shall be repaired or replaced by Landlord at Tenant's sole cost
         and expense.

                  (c) Performance of Work. Except as specifically set forth
herein to the contrary, all work, including all repairs, maintenance and
replacements, described in this Section 7 shall be performed only by Landlord or
by contractors and subcontractors approved in writing by Landlord or by
contractors and subcontractors selected by Tenant and approved in writing by
Landlord. If Tenant is required or permitted to do such work, then Tenant shall
cause all contractors and subcontractors to procure and maintain insurance
coverage naming Landlord as an additional insured against such risks, in such
amounts, on such terms and with such companies as Landlord may reasonably
require. All such work shall be performed in accordance with all Laws, all non-
discriminatory, reasonable requirements established by Landlord, and in a good
and workmanlike manner so as not to damage the Building (including the Premises,
the structural elements, and the plumbing, electrical lines, or other utility
transmission facility). All such work which may affect the Building's HVAC,
electrical, plumbing, other mechanical systems, or structural elements must be
approved in writing by Landlord and, if required by Landlord, by the Building's
engineer of record, at Tenant's expense and, at Landlord's election, such work
must be performed by Landlord's usual contractor for work of such type.

                  (d) Construction Liens. Unless otherwise provided by Law, any
contract(s) executed by Tenant for alterations, additions or improvements to the
Premises which Landlord permits Tenant to do pursuant to this Section 7, whether
in the nature of erection, construction, alteration or repair, shall not be
deemed to have been authorized by Landlord merely by reason of any consent given
by Landlord to Tenant to improve the Premises unless Landlord specifically
reviews such contract(s) and consents in writing to such contract(s). Landlord,
in granting its consent to Tenant for any such alterations, additions or
improvements to the Premises, shall have no obligation to authorize in writing
any contract(s) executed by Tenant for such work, it being the intention of the
parties that to the extent permitted by the New Jersey Construction Lien Law,
N.J.S.A. 2A:44A-1 et seq. or any successor or replacement statute (the
"Construction Lien Law") any liens by any contractor, subcontractor or supplier
who provides work, services, material or equipment to Tenant pursuant to such
contract(s) shall attach only to the leasehold interest of Tenant. Tenant shall
pay promptly all persons furnishing work, equipment, services or materials with
respect to any work performed by Tenant or its contractor on or about the
Premises. In the event any construction or other liens or any other notices of
claim, including, without limitation any Notice of

                                        7

<PAGE>

Unpaid Balance and Right to File Lien ("lien"), shall at any time be filed
against the Premises, the Land, the Building and/or the Park pursuant to the
Construction Lien Law by reason of work, services, equipment or materials
performed or furnished to Tenant or to anyone holding the Premises through or
under Tenant, Tenant shall immediately notify Landlord of the same and shall
cause the same to be discharged by paying the claimant and obtaining a discharge
or by filing a surety bond or making a deposit of funds with the Clerk of the
Superior Court of New Jersey as provided in N.J.S.A. 2A:44A-31. If Tenant shall
fail to cause such lien to be so discharged in compliance with all the
provisions of the Construction Lien Law within fifteen (15) business days after
being notified of the filing thereof, then, in addition to any other right or
remedy of Landlord, Landlord may discharge the same by paying the amount claimed
to be due and the amount so paid by Landlord together with interest thereon at
three (3%) percent over the Prime Rate and all costs and expenses, including
reasonable attorneys' fees incurred by Landlord in procuring the discharge of
such lien, shall be due and payable by Tenant to the Landlord as Additional Rent
on the first day of the next following month, or may, at the Landlord's
election, be subtracted from any sums owing to Tenant. Tenant shall provide
Landlord with copies of any contracts, subcontracts, and any amendments thereto
with respect to any work performed by Tenant or its contractor(s) on or about
the Premises within ten (10) days of execution of same. Tenant, without further
request, written or oral, is hereby required and agrees to provide Landlord each
month during any period work is performed by Tenant or its contractor(s) on or
about the Premises with an accurate and full list, verified under oath, of the
names and addresses of each contractor, subcontractor, construction manager,
design professional, supplier or other persons or entities providing work,
services, materials or equipment who may have a right to file a lien pursuant to
the Construction Lien Law, which list shall be in compliance with all provisions
of the Construction Lien Law. All materialmen, contractors, artisans, mechanics,
laborers, and any other persons now or hereafter contracting with Tenant or any
contractor or subcontractor of Tenant for the furnishing of any labor services,
materials, supplies, or equipment with respect to any portion of the Premises,
at any time from the date hereof until the end of the Term, are hereby charged
with notice that they look exclusively to Tenant to obtain payment for same.
Nothing contained herein shall be deemed as the consent by Landlord to any liens
being placed upon the Premises, the Building, the Land or the Park due to any
work performed by or for Tenant.

            8.    Assignment and Subletting.

                  (a) Transfers. Tenant shall not, without the prior written
consent of Landlord: (1) assign, transfer, or encumber this Lease or any estate
or interest herein, whether directly or by operation of law, (2) permit any
other entity to become Tenant hereunder by merger, consolidation, or other
reorganization, (3) if Tenant is an entity other than a corporation whose stock
is publicly traded, permit the transfer of a legal or beneficial ownership
interest in Tenant so as to result in a change in the control of Tenant as of
the Date of this Lease, (4) sublet any portion of the Premises, (5) grant any
license, concession, or other right of occupancy of any portion of the Premises,
or (6) permit the use of the Premises by any parties other than Tenant (each, a
"Transfer"). The parties acknowledge that any assignee or subtenant shall not
have the right to any further Transfer of the Premises or this Lease.

                  (b) Consent Standards. Subject to Landlord's right to cancel
pursuant to Section 8(e) below, Landlord shall not unreasonably withhold its
consent to any assignment or subletting of the Premises, provided that the
proposed transferee (1) is sufficiently creditworthy to meet its

                                        8

<PAGE>

obligations pursuant to such transfer, (2) has a good reputation in the business
community, (3) will use the Premises for the Permitted Use and will not use the
Premises in any manner that would conflict with any exclusive use agreement or
other similar agreement entered into by Landlord with any other tenant of the
Building, and (4) is not another occupant of the Building or person or entity
with whom Landlord is negotiating to lease space; otherwise, Landlord may
withhold its consent in its sole discretion. Notwithstanding the foregoing,
Tenant may assign its interest in this Lease to an Affiliate of Tenant or sublet
the Premises to an Affiliate of Tenant without Landlord's prior written consent,
provided that Tenant promptly notifies Landlord thereof after such assignment or
subletting. The term "Affiliate" means any entity which directly controls, is
controlled by, or is under common control with Tenant.

                  (c) Request for Consent. If Tenant requests Landlord's consent
to a Transfer, then Tenant shall provide Landlord with a written description of
all terms and conditions of the proposed Transfer, copies of the proposed
documentation, and the following information about the proposed transferee: name
and address; reasonably satisfactory information about its business and business
history; its proposed use of the Premises; banking, financial, and other credit
information; general references sufficient to enable Landlord to determine the
proposed transferee's creditworthiness and character; and such other
documentation and information Landlord reasonably requests. Tenant shall
reimburse Landlord immediately upon request for its reasonable attorneys'
fees(not to exceed $1,500.00) incurred in connection with considering any
request for consent to a Transfer.

                  (d) Conditions to Consent. If Landlord consents to a proposed
Transfer which involves an assignment of this Lease, then the proposed assignee
shall deliver to Landlord a written agreement whereby it expressly assumes
Tenant's obligations hereunder as of the effective date of the assignment.
Landlord's consent to any Transfer shall not waive Landlord's rights as to any
subsequent Transfers. If an Event of Default occurs while the Premises or any
part thereof are subject to a Transfer, then Landlord, in addition to its other
remedies, may collect directly from such transferee all rents becoming due to
Tenant and apply such rents against Rent. Tenant authorizes its transferees to
make payments of rent directly to Landlord upon receipt of notice from Landlord
to do so.

                  (e) Cancellation. Landlord may, within ten (10) days after
submission of Tenant's written request for Landlord's consent to an assignment
or subletting, cancel this Lease as to the portion of the Premises proposed to
be sublet or assigned as of the date the proposed Transfer is to be effective by
sending a written notice to Tenant ("Landlord's Termination Notice"). If
Landlord cancels this Lease as to any portion of the Premises, then this Lease
shall cease for such portion of the Premises and Tenant shall pay to Landlord
all Rent accrued through the cancellation date relating to the portion of the
Premises covered by the proposed Transfer. Thereafter, Landlord may lease such
portion of the Premises to the prospective transferee (or to any other person)
without liability to Tenant. Upon such cancellation of the Lease as to any
portion of the Premises (1) Landlord shall have the right, at Tenant's sole cost
and expense, at all times to provide and permit reasonably appropriate means of
ingress to and egress from such portion of the Premises, (2) Landlord may, at
Tenant's expense, make such alterations as may be reasonably required or
reasonably deemed necessary by Landlord to physically separate such space from
the balance of the Premises and to comply with any requirements of Law or
insurance requirements relating to such separation, and (3) if applicable,
Landlord may, at Tenant's expense, make such alterations and

                                        9

<PAGE>

improvements in order to install common area public bathrooms, corridors and an
elevator so as to convert the floor in which such portion of the Premises is
located into a multi-tenanted floor. Notwithstanding anything to the contrary
contained above in this subparagraph (e), Tenant shall have the right to rescind
Tenant's Intent to Transfer and abrogate Landlord's Termination Notice, if,
within ten (10) days of Tenant's receipt of Landlord's Termination Notice,
Tenant delivers written notice to Landlord of Tenant's election to rescind
because of Tenant's objection to payment of the estimated costs referred to in
Landlord's Termination Notice.

                  (f) Additional Compensation. Tenant shall pay to Landlord,
within five (5) business days after receipt thereof, fifty percent (50%) of the
excess of (1) all compensation received by Tenant in connection with a Transfer
less the costs reasonably incurred by Tenant with unaffiliated third parties in
connection with such Transfer (i.e., tenant improvements, reasonable legal fees
and brokerage commissions) over (2) the Rent allocable to the portion of the
Premises covered thereby.

                  (g) Joint and Several Liability. Any assignment whether made
with, or, if permitted, without Landlord's consent shall be made only if, and
shall not be effective until, the assignee shall execute, acknowledge and
deliver to Landlord an agreement in form and substance reasonably satisfactory
to Landlord whereby the assignee shall assume, from and after the effective date
of such assignment, the obligations of this Lease on the part of Tenant to be
performed or observed. The original named Tenant (and any subsequent permitted
assignor of this Lease) covenants that, notwithstanding any assignment or
Transfer, whether or not in violation of the provisions of this Lease and
notwithstanding the acceptance of any Rent by Landlord from an assignee or any
other party, the original named Tenant shall remain fully liable for the payment
of Basic Rent and Additional Rent and for the other obligations of this Lease on
the part of Tenant to be performed or observed. The joint and several liability
of Tenant and any immediate or remote successor-in-interest of Tenant and the
due performance of the obligations of this Lease on Tenant's part to be
performed or observed shall not be discharged, released or impaired in any
respect by any agreement or stipulation made by Landlord extending the time of,
or modifying any of the obligations of, this Lease, or by any waiver or failure
of Landlord to enforce any of the obligations of this Lease; provided, however,
that in the case of any modification of this Lease which increases the
obligations of Tenant, Tenant herein named shall not be liable for any such
increase unless it has given its written consent thereto.

            9.    Insurance; Waiver of Subrogation; Indemnity.

                  (a) Insurance. Tenant shall maintain throughout the Term the
following insurance policies (the "Policies"):

                           (1) Commercial general liability insurance on an
         occurrence form, including blanket contractual liability sufficient to
         cover Tenant's indemnity obligations hereunder, insuring against any
         and all liability of the Tenant or claims of liability of Tenant
         arising out of, occasioned by or resulting from any accident or
         otherwise resulting in or about the Premises, the Building and the
         Park, in such amounts as are usually carried by entities leasing
         properties similar to the Premises, but in any event with a combined
         single limit of not less than $1,000,000.00 for bodily injury and
         property damage with respect to any one occurrence, which amount shall
         be increased from time to time to reflect what a reasonably

                                       10

<PAGE>

         prudent person or entity leasing property similar to the Premises would
         carry, together with excess/umbrella liability insurance on a "follow
         form" basis with minimum limits of $5,000,000.00. The commercial
         general liability policy must include the standard coverages of
         premises/operations and products/completed operations;

                           (2) Loss or damage by perils customarily included
         under standard "all risk" policies, covering all perils and
         contingencies as may be required by the Landlord, including a
         replacement cost endorsement insuring one hundred percent (100%) of the
         replacement cost of the Tenant's property, fixtures and improvements,
         and other property (including property of others) in the Premises, as
         set forth in the attached Schedule 9-1;

                           (3) For any period during which construction is being
         performed on the Premises by Tenant, "builder's all risk" coverage
         policy of fire and hazard insurance (completed value non-reporting
         form) with respect to the Premises, including vandalism and malicious
         mischief, in an amount not less than the full replacement cost of the
         improvements which are the subject of construction, which insurance
         policy shall contain a replacement cost endorsement. This policy must
         name Landlord and The Advance Group, Inc. as additional insured;

                           (4) Worker's compensation insurance to the full
         extent required by New Jersey state law for all employees of the Tenant
         engaged in any work on or about the Premises with minimum employer's
         liability limits of $500,000.00/$500,000.00/$500,000.00, and containing
         a commercially reasonable waiver of subrogation endorsement;

                           (5) Business interruption insurance in an amount
         equal to one (1) year's loss of gross earnings and the extra expense
         that could result from the cessation of the business conducted by
         Tenant at the Premises;

                           (6) Automobile liability insurance with a combined
         single limit of $1,000,000.00 covering all owned, non-owned and hired
         vehicles; and

                           (7) Insurance against such other hazards as may be
         reasonably required by Landlord from time to time and as are
         customarily insured against with respect to similar leased properties.

Copies of certificates with respect to all Policies, together with evidence of
payment of the premium must be furnished to Landlord prior to the Anticipated
Commencement Date. If unavailable at such time, Policies may be evidenced by a
certificate of insurance, each Policy shall be written and endorsed so as to
name Landlord, Landlord's Mortgagee and The Advance Group, Inc. as additional
insureds, as their interests may appear. Tenant's insurance shall provide
primary coverage to Landlord when any policy issued to Landlord provides
duplicate or similar coverage, and in such circumstance Landlord's policy will
be excess over Tenant's Policy. Each Policy shall be written by insurance
companies approved to do business in the State of New Jersey having an A.M. Best
Company, Inc. rating of A or higher (although Tenant's workman's compensation
carrier may have a rating not lower than B++ and a financial size category of
VIII or higher. Such insurance coverage may be effected under overall blanket or
excess coverage policies of Tenant, except as to general liability insurance,
which may be effected under combined single limit. Each Policy shall be written

                                       11

<PAGE>

or endorsed so as to provide for commercially reasonable deductibles, although
Tenant agrees to indemnify Landlord for claims beginning with the first dollar
whenever a deductible applies to a claim requiring Tenant's indemnification.
Each Policy shall contain a provision to the effect that such policy shall not
lapse or be terminated, canceled, altered or in any way limited in coverage or
reduced in amount unless Landlord is notified in writing at least thirty (30)
days prior to such lapse, termination, cancellation, alteration, limitation or
reduction. Tenant shall pay the premiums for such insurance as the same shall
become due and payable. Not later than thirty (30) days prior to the expiration
date of any Policy, Tenant shall deliver to Landlord evidence satisfactory to
Landlord of the renewal or replacement of such Policy.

                  (b) Waiver of Subrogation. Tenant and Landlord each waive any
claim it might have against the other for any injury to or death of any person
or damage to or theft, destruction, loss, or loss of use of any property in
connection with this Lease or the Premises (each, a "Loss"), to the extent the
other party is insured against such Loss under any insurance policy required
under the terms hereof (inclusive of any self-insurance and/or deductible
amounts), regardless of whether the negligence of such party caused the Loss.
Tenant and Landlord shall each cause its property insurance carriers to endorse
all such policies waiving the carrier's rights of recovery under subrogation or
otherwise against the other.

                  (c) Indemnity. Subject to Section 9(b), Tenant shall defend,
indemnify, and hold harmless Landlord and its representatives and agents from
and against all claims, demands, liabilities, causes of action, suits,
judgments, damages, and expenses (and not solely caused by the willful acts or
gross negligence of Landlord or its agents), including reasonable attorneys'
fees arising from (1) Tenant's use and occupancy of the Premises, the Building
and/or the Park, or any work, activity or thing done, allowed or suffered by
Tenant in, on or about the Premises, the Building or the Park, or (2) any breach
or default by Tenant of any of Tenant's obligations under this Lease, and/or (3)
any act or omission of Tenant or any Tenant Party. This indemnity provision
shall survive termination or expiration of this Lease. If any proceeding is
filed for which indemnity is required hereunder, Tenant agrees, upon request
therefor, to defend Landlord in such proceeding at its sole cost utilizing
counsel reasonably satisfactory to Landlord.

                  (d) Landlord's Insurance. Landlord shall maintain throughout
the Term insurance policies in accordance with the insurance certificate
attached hereto as Exhibit R.

         10. Subordination and Non-Disturbance; Attornment; Notice to Landlord's
Mortgagee.

                  (a) Subordination and Non-Disturbance. This Lease shall be
subordinate to any mortgage or other security instrument, or any ground lease,
master lease, or primary lease, that now or hereafter covers all or any part of
the Building, and also to all renewals, modifications, consolidations and
extensions of such underlying mortgage, security instrument, ground lease,
master lease or primary lease. Landlord agrees to use reasonable commercial
efforts to obtain a Subordination, Non-Disturbance and Attornment Agreement for
the benefit of Tenant and Landlord's Mortgagee on the customary form of
Landlord's Mortgagee. Although no instrument or act on the part of Tenant shall
be necessary to effectuate such subordination, Tenant shall, nevertheless,
execute and deliver such further instruments confirming such subordination as
may be desired by Landlord's Mortgagee or by a lessor, licensor or party to any
agreement under any such

                                       12

<PAGE>

underlying ground lease, master lease, or primary lease. Tenant hereby appoints
Landlord its attorney-in-fact, irrevocably, to execute and deliver any such
instrument on behalf of Tenant. Any Landlord's Mortgagee may elect, at any time,
unilaterally, to make this Lease superior to its mortgage, ground lease, master
lease, or primary lease or other interest in the Premises by so notifying Tenant
in writing.

                  (b) Attornment. Tenant shall attorn to any party succeeding to
Landlord's interest in the Premises, whether by purchase, foreclosure, deed in
lieu of foreclosure, power of sale, termination of lease, or otherwise, upon
such party's request, and shall execute such agreements confirming such
attornment as such party may reasonably request.

                  (c) Notice to Landlord's Mortgagee. Tenant shall not seek to
enforce any remedy it may have for any default on the part of Landlord without
first giving written notice by certified mail, return receipt requested,
specifying the default in reasonable detail, to any Landlord's Mortgagee whose
address has been given to Tenant in writing, and affording such Landlord's
Mortgagee a reasonable opportunity to perform Landlord's obligations hereunder.

                  (d) Landlord's Mortgagee's Protection Provisions. If
Landlord's Mortgagee shall succeed to the interest of Landlord under this Lease,
Landlord's Mortgagee shall not be: (1) liable for any act or omission of any
prior lessor (including Landlord); (2) bound by any Rent which Tenant might have
paid for more than the current month to any prior lessor (including Landlord),
and all such Rent shall remain due and owing, notwithstanding such advance
payment; (3) bound by any security or advance rental deposit made by Tenant
which is not delivered or paid over to Landlord's Mortgagee and with respect to
which Tenant shall look solely to Landlord for refund or reimbursement; (4)
bound by any termination, amendment or modification of this Lease made without
Landlord's Mortgagee's consent and written approval, except for those
terminations, amendments and modifications permitted to be made by Landlord
without Landlord's Mortgagee's consent pursuant to the terms of the loan
documents between Landlord and Landlord's Mortgagee; (5) subject to the defenses
which Tenant might have against any prior lessor (including Landlord); and (6)
subject to the offsets which Tenant might have against any prior lessor
(including Landlord) except for those offset rights which (A) are expressly
provided in this Lease, (B) relate to periods of time following the acquisition
of the Building by Landlord's Mortgagee, and (C) Tenant has provided written
notice to Landlord's Mortgagee and provided Landlord's Mortgagee a reasonable
opportunity to cure the event giving rise to such offset event. Landlord's
Mortgagee shall have no liability or responsibility under or pursuant to the
terms of this Lease or otherwise after it ceases to own an interest in the
Building. Nothing in this Lease shall be construed to require Landlord's
Mortgagee to see to the application of the proceeds of any loan, and Tenant's
agreements set forth herein shall not be impaired on account of any modification
of the documents evidencing and securing any loan.

         11. Rules and Regulations. Tenant shall comply with the rules and
regulations of the Building which are attached hereto as Exhibit H; provided,
however, that to the extent any rule and/or regulation conflicts with the terms
of this Lease, the terms of this Lease shall control. Landlord may, from time to
time, reasonably amend such rules and regulations for the safety, care, or
cleanliness of the Building, the Park and related facilities, provided that such
changes are in writing, are applicable to all tenants of the Building and will
not unreasonably interfere with Tenant's use of the Premises, and Tenant
receives a copy of such rules and regulations at least ten

                                       13

<PAGE>

(10) business days before they become effective. Tenant shall be responsible for
the compliance with such rules and regulations by Tenant and each Tenant Party.
Landlord covenants that any enforcement of the rules and regulations by Landlord
shall be in a non-discriminatory manner.

            12.1  Condemnation.

                  (a) Total Taking. If the entire Building or the entire
Premises shall be acquired or condemned for any public or quasi-public purpose
(a "Taking"), this Lease shall terminate and the Term shall end as of the date
of the vesting of title with the same effect as if such date were the Expiration
Date, and Rent shall be prorated as of such date.

                  (b) Partial Taking. If only a part of the Building or the
Premises shall be subject to a Taking then, except as hereinafter provided in
this Paragraph 12, this Lease and the Term shall continue in full force and
effect, provided that from and after the date of the vesting of title, the Rent
and Tenant's Proportionate Share shall be modified to reflect the reduction of
the Premises and/or the Building as a result of such Taking.

                  (c) Landlord's Termination Right. Whether or not the Premises
are affected, Landlord may give to Tenant, within sixty (60) days following the
date upon which Landlord receives notice that all or a portion of the Building
or the Premises has been acquired or condemned, a notice of termination of this
Lease as of a date set forth therein, which date shall not be earlier than the
thirtieth (30th) day following delivery of such notice of termination.

                  (d) Tenant's Termination Right. If part of the Premises is
acquired or condemned and such taking will result in undue hardship or material
interference, in Tenant's judgment reasonably exercised, in the conduct of
Tenant's business operations in the Premises, or if, by reason of the Taking,
Tenant no longer has reasonable means of access to the Premises and Landlord
fails to provide an alternate means of access within thirty (30) days from such
Taking, Tenant may terminate this Lease by notice to Landlord given not less
than thirty-one (31) nor more than sixty (60) days following the date of such
Taking. If Tenant so notifies Landlord, this Lease shall terminate and the Term
shall end and expire upon the thirtieth (30th) day following the giving of such
notice. If a part of the Premises shall be so acquired or condemned and this
Lease and the Term shall not be terminated in accordance with this Section 12.1,
Landlord, at Landlord's expense, subject to receipt of sufficient proceeds from
the Mortgagee and/or the condemning authority, shall restore that part of the
Premises not so acquired or condemned to a self-contained rental unit; provided,
however, that Landlord shall have no obligation to repair, restore or replace
trade fixtures, furniture, or other Tenant property or to repair, replace or
restore alterations or improvements in the Premises which exceed the existing
building standard as of the Commencement Date, or to repair, replace or restore
alterations or improvements in the Premises to the extent the cost of same
exceeds the cost to repair, replace or restore the leasehold improvements
existing on the Commencement Date.

                  (e) Apportionment of Rent. Upon any termination of this Lease
pursuant to the provisions of this Paragraph 12, Rent shall be apportioned as
of, and shall be paid or refunded up to and including, the date of such
termination.

                                       14

<PAGE>

         12.2. Awards. Upon any Taking of all or any part of the Building,
Landlord shall receive the entire award for any such Taking, and Tenant shall
have no claim against Landlord or the condemning authority for the value of any
unexpired portion of the Term, or any leasehold improvements; and Tenant hereby
assigns to Landlord all of its rights in and to such award. Nothing contained in
this Paragraph 12.2 shall be deemed to prevent Tenant from making a separate
claim in any condemnation proceedings for the then value of any Tenant's
property included in such Taking for any moving expenses, provided any such
award is in addition to, and does not result in a reduction of, the award made
to Landlord.

         12.3. Temporary Taking. If the whole or any part of the Premises is
acquired or condemned temporarily during the Term for any public or quasi-public
use or purpose, Tenant shall give prompt notice to Landlord and the Term shall
not be reduced or affected in any way and Tenant shall continue to pay Rent
without reduction or abatement and to perform its other obligations under this
Lease except to the extent prevented from doing so by the condemning authority,
and Tenant shall be entitled to receive any award or payment for such use, which
shall be received and held in trust for the benefit of Landlord and applied by
Tenant as a trust fund for payment of the Rent falling due.

         13.    Fire or Other Casualty.

                  13.1 Restoration. If all or any portion of the Premises is
damaged by fire or other insured casualty, or if the Building is damaged such
that Tenant is deprived of reasonable access to the Premises, Tenant shall give
prompt notice to Landlord, and the damage shall be repaired by Landlord, at its
expense, subject to receipt of sufficient insurance proceeds from the Landlord's
Mortgagee and/or the insurer, to substantially the condition of the Premises on
the date of such casualty, but Landlord shall have no obligation to repair,
replace or restore (i) trade fixtures, furniture or other Tenant's property, or
(ii) any alterations or improvements, including leasehold improvements, to the
Premises which exceed the existing building standard as of the date of such
casualty. Until such time as the restoration of the Premises is substantially
completed, or would have been substantially completed but for a delay caused by
Tenant, Rent shall be reduced in the proportion by which the rentable square
footage of the part of the Premises which is not useable (or accessible) and is
not used by Tenant bears to the total rentable square footage of the Premises.

                  13.2. Landlord's Termination Right. Notwithstanding anything
to the contrary contained in Section 13.1, if the Premises are totally damaged
and are thereby rendered untenantable, or if the Building shall be so damaged
that in Landlord's opinion, either Tenant is deprived of reasonable access to
the Premises or substantial alteration, demolition or reconstruction of the
Building shall be required (whether or not the Premises shall have been damaged
or rendered untenantable), then in either of such events, Landlord may, not
later than sixty (60) days following the date of damage, give Tenant a written
notice terminating this Lease. If this Lease is so terminated (i) the Term shall
expire and the Tenant shall vacate the Premises and surrender the same to
Landlord no later than the date set forth in the Notice, which date shall be not
less than sixty (60) days after such notice is given, (ii) Tenant's liability
for Rent shall cease as of the date of the damage, (iii) any prepaid Rent for
any period after the date of the damage shall be promptly refunded by Landlord
to Tenant, and (iv) Landlord shall collect and retain the insurance proceeds of
policies obtained by Landlord providing coverage for damage to all or any part
of the Real Property.

                                       15

<PAGE>

                  13.3. Tenant's Termination Right. If the Premises are totally
damaged and are thereby rendered untenantable, or if the Building shall be so
damaged that Tenant is deprived of reasonable access to the Premises, and if
Landlord elects to restore the Premises, or if the Premises are partially
damaged and rendered partially untenantable so that undue hardship or material
interference, in Tenant's judgment reasonably exercised, is caused in the
conduct of Tenant's business operations in the Premises, Landlord shall, within
sixty (60) days following the date of the damage, cause a contractor or
architect selected by Landlord to give notice ("Restoration Notice") to Tenant
of the date by which such contractor or architect estimates the restoration of
the Premises shall be substantially completed. If the Restoration Notice
estimates that the restoration shall not be substantially completed on or before
a date ("Landlord's Restoration Date") which shall be two hundred and ten (210)
days following the date of such damage, subject to extension by reason of force
majeure, then Tenant shall have the right to terminate this Lease by giving
written notice ("Termination Notice") to Landlord not later than twenty (20)
days following Tenant's receipt of the Restoration Notice. If Tenant delivers to
Landlord a Termination Notice, this Lease shall be deemed to have terminated as
of the date therefor set forth in the Termination Notice, which date shall not
be later than the sixtieth (60th) day following delivery of the Termination
Notice, as if such date was the Expiration Date, and Rent shall be apportioned
and shall be paid or refunded, as the case may be, up to and including the date
of such termination. If Tenant shall not have given the Termination Notice
pursuant to this Section 13.3, and Landlord shall fail to substantially complete
the restoration of the Premises in accordance with the provisions hereof (or the
Building to the extent necessary to provide Tenant with access to the Premises)
on or before Landlord's Restoration Date, subject to extension by reason of
force majeure, then Tenant shall have the right to terminate this Lease by
delivery to Landlord of a Termination Notice not later than twenty (20) days
following Landlord's Restoration Date (as such date may be extended by reason of
force majeure).

                  13.4. Inability to Collect. Notwithstanding any of the
foregoing provisions of this Paragraph 13, if Landlord or Landlord's Mortgagee
shall be unable to collect all of the rent insurance proceeds equal to the
reduction in Rent resulting from damage or destruction of the Premises or the
Building solely by reason of any action or inaction on the part of Tenant or any
of its employees, agents or contractors, then, without prejudice to any other
remedies which may be available against Tenant, there shall be no abatement of
Rent and, if an Event of Default of a monetary nature has occurred, Landlord
shall have no obligation to restore the Premises.

            14.   Environmental Compliance.

                  (a) (1) Unless otherwise specified herein, the following terms
used in this Section 14 shall have the following meanings:

                           "DEP": New Jersey Department of Environmental
         Protection and any successor agency.

                           "Environmental Laws": All present and future federal,
         state or local laws, codes, ordinances, rules, regulations and other
         requirements as the same, from time to time, may be amended, which
         relate to the human health or safety concerns or to the environment,
         including those applicable to the storage, treatment, disposal,
         handling and release of any Hazardous Substances or Wastes.

                                       16

<PAGE>

                           "Environmental Claim": Any complaint, order,
         directive, claim, action, investigation, lawsuit, demand, citation,
         notice, proceeding or lien, or threatened complaint, order, directive,
         claim, action, investigation, lawsuit, demand, citation, notice,
         proceeding or lien, by a federal, state or local governmental entity
         involving Environmental Laws which arise from Tenant's actions or
         omissions at the Premises and/or the business conducted by Tenant
         therein.

                           "Environmental Condition": Any emission, spill,
         discharge, contamination or threatened contamination of any kind or
         nature whatsoever at, on or from the Premises or affecting systems
         servicing the Premises which arises from Tenant's actions or omissions
         at the Premises and which may violate any Environmental Law, including,
         without limitation, the presence of Hazardous Substances or Wastes.

                           "Hazardous Substances or Wastes": Any toxic
         substance, hazardous substance, contaminant, waste, pollutant or other
         similar product or substance that may pose a threat to the environment
         or human health safety, as defined in Environmental Laws.

                           (2) At all times during the Term, Tenant, at its sole
         expense, shall fulfill, observe and comply with, and keep the Premises
         in compliance with any and all Environmental Laws. Tenant agrees not to
         generate, store, manufacture, refine, transport, treat, dispose or
         otherwise permit to be present on or about the Premises any Hazardous
         Substances, except in de minimus quantities for ordinary cleaning or
         office purposes.

                           (3) If Tenant receives any notice of the occurrence
         or existence of an Environmental Condition and/or Environmental Claim,
         then Tenant shall give immediate notice of same to Landlord.

                           (4) If Tenant fails to comply with the requirements
         of this Section 14, including without limitation the requirements of
         Section 14(a)(3), Landlord shall, after first giving Tenant at least
         twenty (20) days prior written notice, have the option, but shall not
         be obligated, to exercise any of its rights as provided in this Lease
         and Landlord or its representatives may enter onto the Premises and
         take any actions Landlord deems reasonably necessary or advisable to
         investigate, clean up, remove, resolve or minimize the impact of, or
         otherwise address, an Environmental Condition, and/or Environmental
         Claim upon Landlord's receipt of notice from any person, entity or
         other source of same. All reasonable costs and expenses incurred by
         Landlord in the exercise of any such rights shall be paid by Tenant as
         Additional Rent.

                           (5) Without limitation upon any other event which may
         constitute a default on the part of Tenant under this Lease, the
         occurrence of any of the following events shall constitute a default on
         the part of Tenant under this Lease, entitling Landlord to all of the
         rights and remedies provided therefor:

                                    (A) If Tenant fails or refuses to provide
                  Landlord with prompt notice of an Environmental Condition
                  and/or Environmental Claim of which Tenant is or should be
                  aware.

                                       17

<PAGE>

                                    (B) If any person or entity asserts or
                  creates a lien upon the Building, Park and/or the Premises or
                  any portion thereof by reason of the occurrence of an
                  Environmental Condition and/or Environmental Claim resulting
                  solely or partly as a result of the act or omission of Tenant;

         provided, however, the occurrence of an Environmental Claim shall not
         constitute an Event of Default if, within five (5) days of the
         occurrence giving rise to the Environmental Claim: (1) Tenant has
         commenced and is diligently pursuing either: (a) a cure or correction
         of the event which constitutes the basis for the Environmental Claim
         and continues diligently to pursue such cure or correction to
         completion; or (b) legal proceedings preventing such governmental
         entity or entities from asserting such Environmental Claim; and (2)
         Tenant has posted a bond, letter of credit, or other security
         reasonably satisfactory in form, substance and amount to Landlord to
         secure the proper and complete cure or correction of the event which
         constitutes the basis for the Environmental Claim.

                           (6) Upon reasonable prior notice, Tenant shall permit
         any representatives of Landlord (including agents, servants, employees,
         legal counsel, environmental consultants and engineers) access during
         normal business hours, or during other hours either by agreement of the
         parties or in the event of any emergency related to Environmental Laws,
         to: (A) permit any of such parties to examine, audit, copy or make
         extracts from, any and all books, records and documents in possession
         of Tenant, its agents, representatives, environmental consultants, or
         independent contractors relating to Tenant's compliance with
         Environmental Laws; (B) inspect the Premises, and/or (C) perform any
         work at the Premises to assure that the Premises are in compliance with
         all Environmental Laws and to take reasonable precautions, to the
         extent practicable, not to interfere with Tenant's operations at the
         Premises.

                           (7) In the event that either the SIC number or the
         operations and processes undertaken by Tenant or any occupant of the
         Premises are to change, Tenant shall provide not less than ten (10)
         days notice to Landlord prior to implementing such change.

                           (8) At no expense to the Landlord, Tenant promptly
         shall provide all information requested by Landlord or any federal,
         state or local governmental entity regarding any Environmental Laws and
         promptly shall sign such affidavits and submissions when requested to
         do so by Landlord or any federal, state or local governmental entity.
         In the event an affidavit or submission is inaccurate or incomplete,
         Tenant shall cooperate and provide such information so that it can be
         made accurate and complete, at which time Tenant promptly shall sign
         same.

                           (9) As a condition precedent to any Transfer by
         Tenant, Tenant, at Tenant's own expense, shall comply with Section
         14(b) hereof and fulfill all of Tenant's obligations under Section
         14(a) hereof, in addition to complying with all other requirements of
         this Lease.

                  (b) (1) Without limitation upon any of Tenant's obligations
         pursuant to Section 14(a), Tenant, at its sole cost and expense, shall
         comply with the Industrial Site Recovery Act, N.J.S.A. 13:K-6 et seq.
         ("ISRA") as applicable to Tenant, the Premises and/or

                                       18

<PAGE>

         the business conducted therein, including but not limited to, making
         all submissions and providing all information to the DEP and otherwise
         complying with all requirements of ISRA.

                           (2) Should Tenant's operations at the Premises not be
         subject to ISRA, Tenant, at is sole cost and expense, shall obtain a
         letter of non-applicability or de minimus quantity exemption from the
         DEP within thirty (30) days of the expiration or earlier termination of
         the Term and promptly shall provide Tenant's submission and the DEP's
         response thereto.

                           (3) Tenant represents and warrants to Landlord that
         Tenant intends to use the Premises for the Permitted Use, and that
         Tenant's use of the Premises shall be restricted to the SIC number set
         forth in the Lease Summary unless Tenant obtains Landlord's prior
         written consent to any change, which consent may be unreasonably
         withheld in Landlord's sole discretion.

                  (c) Tenant agrees that each and every provision of this
Section 14 shall survive the expiration or earlier termination of the Term of
this Lease, regardless of the reason for such termination, it being agreed and
acknowledged that Landlord would not have entered into this Lease but for the
provisions of this Section 14 and the survival thereof. Tenant's failure to
abide by the terms of this Section 14 shall be restrainable by injunction.

         15. Personal Property Taxes. Tenant shall be liable for all taxes
levied or assessed against personal property, furniture, or fixtures placed by
Tenant in the Premises. If any taxes for which Tenant is liable are levied or
assessed against Landlord or Landlord's property and Landlord elects to pay the
same, or if the assessed value of Landlord's property is increased by inclusion
of such personal property, furniture or fixtures and Landlord elects to pay the
taxes based on such increase, then Tenant shall pay to Landlord as Additional
Rent, upon demand, the part of such taxes for which Tenant is primarily liable
hereunder; provided, however, Landlord shall not pay such amount if Tenant
promptly notifies Landlord in writing that it will contest the validity or
amount of such taxes before Landlord makes such payment, and (i) thereafter
diligently proceeds with such contest in accordance with law, (ii) the
non-payment thereof does not pose a threat of loss or seizure of the Building or
interest of Landlord therein or impose any fee or penalty against Landlord, and
(iii) Tenant deposits cash security with Landlord in an amount reasonably
determined by Landlord.

         16. Default.

                  (a) Each of the following occurrences shall be an "Event of
Default":

                           (1) Tenant's failure to pay Rent on the date that the
         same is due;

                           (2) Tenant (A) abandons or vacates the Premises or
         any substantial portion thereof for more than thirty (30) days or (B)
         fails to continuously operate its business in the Premises;

                                       19

<PAGE>

                           (3) Tenant fails to comply with the Permitted Use set
         forth herein and the continuance of such failure for a period of five
         (5) days after Landlord has delivered to Tenant written notice thereof;

                           (4) Tenant fails to provide any estoppel certificate
         within the time period required under Section 23(e) hereof and such
         failure shall continue for five (5) days after written notice thereof
         from Landlord to Tenant;

                           (5) Tenant's failure to perform, comply with, or
         observe any other agreement or obligation of Tenant under this Lease
         and the continuance of such failure for a period of more than thirty
         (30)) days after Landlord has delivered to Tenant written notice
         thereof, or, if such default cannot reasonably be cured within thirty
         (30) days, Tenant's failure to commence cure within that thirty (30)
         day period and diligently prosecute to completion;

                           (6) A Transfer in violation of the provisions of this
         Lease;

                           (7) Tenant's failure to maintain insurance in
         accordance with the provisions of this Lease; and

                           (8) The filing of a petition by or against Tenant or
         Guarantor (A) in any bankruptcy or other insolvency proceeding; (B)
         seeking any relief under any state or federal debtor relief law; (C)
         for the appointment of a liquidator or receiver for all or
         substantially all of Tenant's property or for Tenant's interest in this
         Lease; or (D) for the reorganization or modification of Tenant's
         capital structure; provided, however, if such a petition is filed
         against Tenant, then such filing shall not be an Event of Default
         unless Tenant fails to have the proceedings initiated by such petition
         dismissed within sixty (60) days after the filing thereof.

                  (b) Upon any Event of Default, Landlord may, in addition to
all other rights and remedies afforded Landlord hereunder or by law or equity,
take any of the following actions:

                           (1) Terminate this Lease by giving Tenant written
         notice thereof, in which event Tenant shall pay to Landlord the sum of
         (A) all Rent accrued hereunder through the date of termination, (B) all
         amounts due from time to time under Section 17(a), and (C) an amount
         equal to (x) the total Rent that Tenant would have been required to pay
         for the remainder of the Term discounted to present value at a per
         annum rate equal to the Prime Rate as published on the date this Lease
         is terminated minus (y) the then net present fair rental value of the
         Premises after deducting all costs which will reasonably be incurred by
         Landlord in reletting the Premises including, without limitation,
         tenant improvement costs, brokerage commissions, loss of rents during
         vacancies, rent concessions and reasonable attorneys' and architects'
         fees for such period, similarly discounted;

                           (2) Terminate Tenant's right to possess the Premises
         without terminating this Lease by giving written notice thereof to
         Tenant, in which event Tenant shall pay to Landlord (A) all Rent and
         other amounts accrued hereunder to the date of termination of
         possession, (B) all amounts due from time to time under Section 17(a)
         hereof, and (C) all Rent and other net sums required hereunder to be
         paid by Tenant during the remainder of the

                                       20

<PAGE>

         Term, diminished by any net sums thereafter received by Landlord
         through reletting the Premises during such period, after deducting all
         costs reasonably incurred by Landlord in reletting the Premises,
         including tenant improvement costs, brokerage commissions, loss of
         rents during vacancy, rent concessions and attorneys', architects' and
         engineers' fees. Landlord shall use good faith efforts to relet the
         Premises on such terms as Landlord in its sole discretion may determine
         (including a term different from the Term, rental concessions, and
         alterations to, and improvement of, the Premises); provided, however,
         Landlord shall not be obligated to relet the Premises before leasing
         other portions of the Building or the other buildings in the Park.
         Landlord shall not be liable for, nor shall Tenant's obligations
         hereunder be diminished because of, Landlord's failure to relet the
         Premises or to collect rent due for such reletting. Tenant shall not be
         entitled to the excess of any consideration obtained by reletting over
         the Rent due hereunder. Reentry by Landlord in the Premises shall not
         affect Tenant's obligations hereunder for the unexpired Term; rather,
         Landlord may, from time to time, bring an action against Tenant to
         collect amounts due by Tenant, without the necessity of Landlord's
         waiting until the expiration of the Term;

                           (3) Unless Landlord delivers written notice to Tenant
         expressly stating that it has elected to terminate this Lease, all
         actions taken by Landlord to dispossess or exclude Tenant from the
         Premises shall be deemed to be taken under Section 16(b)(2). If
         Landlord elects to proceed under Section 16(b)(2) hereof, it may at any
         time thereafter elect to terminate this Lease under Section 16(b)(1);

                           (4) Tenant hereby waives all right of redemption to
         which Tenant or any person under Tenant might be entitled by any law
         now or hereinafter in force.

         17. Payment by Tenant; Non-Waiver.

                  (a) Payment by Tenant. Upon any Event of Default, Tenant shall
pay to Landlord all reasonable costs incurred by Landlord (including court costs
and reasonable attorneys' fees and expenses) in (1) obtaining possession of the
Premises, (2) removing and storing Tenant's or any other occupant's property,
(3) repairing, restoring, altering, remodeling, or otherwise putting the
Premises into condition acceptable to a new tenant prorated over the remaining
portion of the Term, (4) if Tenant is dispossessed of the Premises and this
Lease is not terminated, reletting all or any part of the Premises (including
brokerage commissions, cost of tenant finish work, and other costs incidental to
such reletting), prorated over the remaining portion of the Term, (5) performing
Tenant's obligations which Tenant failed to perform, and (6) enforcing, or
advising Landlord of, its rights, remedies, and recourses arising out of the
Event of Default, in addition to the unamortized portion of the Construction
Allowance and any brokerage commissions paid by Landlord in connection with this
Lease. To the full extent permitted by Law, Landlord and Tenant agree the
federal and state courts of the State of New Jersey shall have exclusive
jurisdiction over any matter relating to or arising from this Lease and the
parties' rights and obligations under this Lease.

                  (b) No Waiver. Landlord's acceptance of Rent following an
Event of Default shall not waive Landlord's rights regarding such Event of
Default. No waiver by Landlord of any violation or breach of any of the terms
contained herein shall waive Landlord's rights regarding any future violation of
such term. Landlord's acceptance of any partial payment of Rent shall not waive
Landlord's rights with regard to the remaining portion of the Rent that is due,
regardless of any

                                       21

<PAGE>

endorsement or other statement on any instrument delivered in payment of Rent or
any writing delivered in connection therewith; accordingly, Landlord's
acceptance of a partial payment of Rent shall not constitute an accord and
satisfaction of the full amount of the Rent that is due.

         18. Surrender of Premises. No act or omission by Landlord shall be
deemed an acceptance of a surrender of the Premises, and no agreement to accept
a surrender of the Premises shall be valid unless it is in writing and signed by
Landlord. At the expiration or termination of this Lease, Tenant shall deliver
to Landlord the Premises with all improvements located therein in good repair
and condition, free of Hazardous Substances placed on the Premises during the
Term or during Tenant's occupancy of the Premises, if longer, broom-clean,
reasonable wear and tear (and condemnation and Casualty damage not caused by
Tenant, as to which Sections 12 and 13 shall control) excepted, and shall
deliver to Landlord all keys to the Premises. Provided that Tenant has performed
all of its obligations hereunder, Tenant may, prior to the end of the Term,
remove all unattached trade fixtures, furniture, and personal property placed in
the Premises or elsewhere in the Building by Tenant (but Tenant may not remove
any such item which was paid for, in whole or in part, by Landlord or any wiring
or cabling unless Landlord permits such removal). Additionally, at Landlord's
option, Tenant shall, prior to the end of the Term, remove such alterations,
additions, improvements, trade fixtures, personal property, equipment, wiring,
cabling, and furniture as Landlord may request; however, Tenant shall not be
required to remove any addition or improvements to the Premises unless Landlord
has notified Tenant of Landlord's request to remove same at the time Landlord
approves the plans for addition or improvements. Tenant shall repair all damage
caused by any removal prior to the expiration or sooner termination of this
Lease. All items not so removed shall, at Landlord's option, be deemed to have
been abandoned by Tenant and may be appropriated, sold, stored, destroyed, or
otherwise disposed of by Landlord without notice to Tenant and without any
obligation to account for such items; any such disposition shall not be
considered a strict foreclosure. The provisions of this Section 18 shall survive
the end of the Term.

         19. Holding Over. If Tenant fails to vacate the Premises at the
expiration or earlier termination of the Term, then Tenant shall be a tenant
from month to month and, in addition to all other damages and remedies to which
Landlord may be entitled for such holding over, Tenant shall pay, in addition to
the other Additional Rent, Basic Rent equal to one hundred fifty percent (150%)
of the Basic Rent in effect as of the Lease Month immediately preceding such
expiration or earlier termination, which shall be payable in advance on the
first day of each month. The provisions of this Section 19 shall not be deemed
to limit or constitute a waiver of any other rights or remedies of Landlord
provided herein or at law. If Tenant fails to surrender the Premises upon the
termination or expiration of this Lease, in addition to any other liabilities to
Landlord accruing therefrom, Tenant shall protect, defend, indemnify and hold
Landlord harmless from all loss, costs (including reasonable attorneys' fees)
and liability resulting from such failure, including any claims made by any
succeeding tenant founded upon such failure to surrender, and any lost profits
to Landlord resulting therefrom.

         20. Certain Rights Reserved by Landlord. Provided that the exercise of
such rights does not unreasonably interfere with Tenant's use, occupancy and
quiet enjoyment of the Premises, Landlord shall have the following rights:

                  (a) To decorate and to make inspections, repairs, alterations,
additions, changes, or improvements, whether structural or otherwise, in and
about the Building, or any part thereof; to

                                       22

<PAGE>

enter upon the Premises (after giving Tenant reasonable advance notice thereof,
which may be oral notice, except in cases of real or apparent emergency, in
which case no notice shall be required) and, during the continuance of any such
work, to temporarily close doors, entryways, public space, and corridors in the
Building; to interrupt or temporarily suspend Building services and facilities;
to change the name of the Building; and to change the arrangement and location
of entrances or passageways, doors, and doorways, corridors, elevators, stairs,
restrooms, or other public parts of the Building;

                  (b) To take such reasonable measures as Landlord deems
advisable for the security of the Building and its occupants; evacuating the
Building for cause, suspected cause, or for drill purposes; temporarily denying
access to the Building; and closing the Building after Business Hours and on
weekends and holidays, subject, however, to Tenant's right to enter when the
Building is closed after Business Hours under such reasonable regulations as
Landlord may prescribe from time to time; and

                  (c) To enter the Premises at reasonable hours to show the
Premises to prospective purchasers, lenders, or, during the last twelve (12)
months of the Term, tenants.

         21. Intentionally Omitted.

         22. Parking. Tenant shall have the non-exclusive right to use, without
charge, the Tenant Parking Spaces in the parking area associated with the
Building which is more particularly described on Exhibit A attached hereto (the
"Parking Area") during the Term subject to such terms, conditions and
regulations as are from time to time applicable to patrons of the Parking Area.
Landlord shall have no liability on account of any damage or loss to any vehicle
or its contents located in the Parking Area, regardless of cause, except for
Landlord's willful misconduct or gross negligence, and Tenant hereby agrees to
indemnify, hold harmless and defend Landlord from and against any and all
causes, claims, suits, damages, and expenses (including reasonable attorneys'
fees) arising from the use of the Parking Area by Tenant or any Tenant Party. In
the event Landlord provides designated parking spaces to another tenant at the
Building, Landlord agrees to provide Tenant with some (but not pro-rated)
designated parking spaces but Landlord shall not be required to enforce any
exclusivity thereof.

         23. Security Deposit

                  (a) Contemporaneously with the execution of this Lease, Tenant
shall pay to Landlord the Security Deposit, which shall be held by Landlord to
secure Tenant's performance of its obligations under this Lease. The Security
Deposit is not an advance payment of Rent or a measure or limit of Landlord's
damages upon an Event of Default. Landlord may, from time to time following an
Event of Default and without prejudice to any other remedy, use all or a part of
the Security Deposit to perform any obligation Tenant fails to perform
hereunder. Following any such application of the Security Deposit, Tenant shall
pay to Landlord on demand the amount so applied in order to restore the Security
Deposit to its original amount. Provided that Tenant has performed all of its
obligations hereunder, Landlord shall, within thirty (30) days after the Term
ends, return to Tenant the portion of the Security Deposit which was not applied
to satisfy Tenant's obligations. The Security Deposit may be commingled with
other funds, and no interest shall be paid thereon. If Landlord transfers its
interest in the Premises and the transferee assumes Landlord's obligations

                                       23

<PAGE>

under this Lease, then Landlord may assign the Security Deposit to the
transferee and Landlord thereafter shall have no further liability for the
return of the Security Deposit.

                  (b) Tenant shall have the right to deliver to Landlord an
unconditional, irrevocable commercial letter of credit ("Letter of Credit") in
substitution for the cash Security Deposit. The Letter of Credit shall be (a) in
form and substance satisfactory to Landlord; (b) in the amount set forth in the
Lease Summary; (c) issued by First Union National Bank (or its successor that
meets the criteria set forth in this Subsection 23(b)) in a New York, New York
metropolitan area or northern New Jersey federally insured branch (i) organized
under the laws of the United States of America or any state thereof; (ii) doing
business in the United States of America; (iii) subject to state or federal
banking regulatory authorities; (iv) having a combined capital, surplus and
undivided profits (less any undivided losses) of not less than five hundred
million dollars ($500,000,000.00); and (v) having a commercial paper rating of
A-1 (or the equivalent) from Standard & Poor's Corporation or P-1 (or the
equivalent) from Moody's Investors Service, Inc. and otherwise reasonably
acceptable to Landlord (collectively "Bank Criteria"); (d) payable in full or
partial draws upon presentation of the Letter of Credit to the issuer together
with a letter on Landlord's letterhead stating that Landlord is entitled to the
Letter of Credit proceeds; (e) made expressly transferable and assignable to the
Landlord from time to time of the Building, the holder or trustee, as
applicable, under any mortgage, and any receiver of such Landlord (it being
agreed that the Letter of Credit shall be delivered only to any of such persons
or entities); and include an "evergreen" provision which provides that the
Letter of Credit shall be automatically renewed on an annual basis unless the
issuer delivers thirty (30) days prior written notice of cancellation to
Landlord, such that the Letter of Credit remains in effect through the sixtieth
(60th) day after the expiration of the Lease Term and Renewal Term, if
applicable. Landlord shall be permitted to draw upon the Letter of Credit and
apply all or a portion of the proceeds thereof necessary to compensate Landlord
for any matter to which the Security Deposit is permitted to be applied
hereunder, and to retain the remaining proceeds thereof for the remainder of the
Lease Term and Renewal Term, as applicable, as a cash Security Deposit. Within
three (3) days after written notice of Landlord's use of all or a portion of the
proceeds of the Letter of Credit, Tenant shall deposit with Landlord cash in an
amount sufficient to replace the funds so used by Landlord and the entire
Security Deposit shall thereafter be held by Landlord in cash. Landlord also
shall have the right to draw upon the Letter of Credit in any of the following
circumstances, without any further notice of any kind except as expressly
specified in this Subsection 23(b): (i) if Tenant fails to deliver to Landlord a
replacement Letter of Credit complying with the terms of this subsection (from a
financial institution other than the issuer, or successor thereto, of the
then-current Letter of Credit) within ten (10) days after demand by Landlord
after the financial condition of the issuing bank (or the successor thereto) is
reduced below a rating of the Bank Criteria or (ii) if Tenant fails to provide
Landlord with any renewal or replacement Letter of Credit complying with the
terms of this Subsection 23(b) at least twenty-five (25) days prior to the
expiration of the then-current Letter of Credit. Landlord shall not be required
to pay any interest on any proceeds drawn under the Letter of Credit or to
maintain any such proceeds in a separate account. Within sixty (60) days after
the later of (i) the expiration of the Term or Renewal Term, as applicable, of
this Lease or (ii) Tenant's vacating the Leased Premises (and not then being in
default hereunder), Landlord shall return the Letter of Credit and all proceeds
thereof being held by Landlord (less such portions thereof as Landlord may have
used to satisfy Tenant's obligations or liabilities to Landlord and less such
other sums as Landlord reasonably expects to be due from Tenant). Tenant
expressly waives any right it might otherwise have to prevent Landlord from
drawing on the Letter of Credit and agrees that an action for damages and not
injunctive or other

                                       24

<PAGE>

equitable relief shall be Tenant's sole remedy in the event Tenant disputes
Landlord's claim to any such amounts. Neither the cash Security Deposit nor any
drawing under the Letter of Credit shall be deemed to be liquidated damages in
the event of a breach by Tenant of this Lease.

         24. Miscellaneous.

                  (a) Landlord Transfer. Landlord may sell its interest in the
Building and/or transfer or assign any of its rights under this Lease. If
Landlord sells its interest in the Building or assigns its rights under this
Lease, then Landlord shall thereby be released from any further obligations
hereunder arising after the date of the sale or transfer, provided, solely with
respect to an assignment of this Lease, that the assignee assumes Landlord's
obligations hereunder in writing.

                  (b) Landlord's Liability. The liability of Landlord to Tenant
for any default by Landlord under the terms of this Lease shall be limited to
Tenant's actual direct, but not consequential, damages therefor and shall be
recoverable only from the interest of Landlord in the Building, and Landlord
shall not be personally liable for any deficiency.

                  (c) Force Majeure. Other than for Tenant's obligations under
this Lease that can be performed by the payment of money (e.g., payment of Rent
and maintenance of insurance), whenever a period of time is herein prescribed
for action to be taken by either party hereto, such party shall not be liable or
responsible for, and there shall be excluded from the computation of any such
period of time, any delays due to strikes, riots, acts of God, shortages of
labor or materials, war, governmental laws, regulations, or restrictions, or any
other causes of any kind whatsoever which are beyond the control of such party.

                  (d) Brokerage. Neither Landlord nor Tenant has dealt with any
broker or agent in connection with the negotiation or execution of this Lease,
other than the Broker, whose commission shall be paid by Landlord, pursuant to a
separate written agreement. Tenant and Landlord shall each indemnify the other
against all costs, expenses, attorneys' fees, and other liability for
commissions or other compensation claimed by any other broker or agent claiming
the same by, through, or under the indemnifying party.

                  (e) Estoppel Certificates. From time to time, Tenant shall
furnish to any party designated by Landlord, within ten (10) days after Landlord
has made a request therefor, a certificate signed by Tenant confirming and
containing such factual certifications and representations as to this Lease as
Landlord may reasonably request. Unless otherwise required by Landlord's
Mortgagee or a prospective purchaser or mortgagee of the Building, the initial
form of estoppel certificate to be signed by Tenant shall be substantially
similar to the form attached hereto as Exhibit I.

                  (f) Notices. All notices and other communications given
pursuant to this Lease shall be in writing and shall be (1) mailed by first
class, United States Mail, postage prepaid, certified, with return receipt
requested, (2) hand delivered with confirmatory receipt, (3) sent by a
nationally recognized overnight courier service, or (4) sent by facsimile
transmission during normal business hours followed by a confirmatory letter sent
in another manner permitted hereunder, and addressed to the parties hereto at
the addresses specified in the Lease Summary. All notices shall be effective
upon delivery to the address of the addressee; provided, however, that the date
of any refusal by a party to accept delivery of a notice shall be deemed to be
the effective date of such

                                       25

<PAGE>

notice. The parties hereto may change their addresses by giving notice thereof
to the other in conformity with this provision.

                  (g) Separability. If any clause or provision of this Lease is
illegal, invalid, or unenforceable under present or future Laws, then the
remainder of this Lease shall not be affected thereby and in lieu of such clause
or provision, there shall be added as a part of this Lease a clause or provision
as similar in terms to such illegal, invalid, or unenforceable clause or
provision as may be possible and be legal, valid, and enforceable.

                  (h) Amendments and Binding Effect. This Lease may not be
amended except by instrument in writing signed by Landlord and Tenant. No
provision of this Lease shall be deemed to have been waived by either party
unless such waiver is in writing signed by such party, and no custom or practice
which may evolve between the parties in the administration of the terms hereof
shall waive or diminish the right of either party to insist upon the performance
by the other party in strict accordance with the terms hereof. The terms and
conditions contained in this Lease shall inure to the benefit of and be binding
upon the parties hereto, and upon their respective successors in interest and
legal representatives, except as otherwise herein expressly provided. This Lease
is for the sole benefit of Landlord and Tenant and their permitted successor and
assigns and, other than Landlord's Mortgagee, no third party shall be deemed a
third party beneficiary hereof.

                  (i) Quiet Enjoyment. Provided Tenant has performed all of its
material obligations hereunder, Tenant shall peaceably and quietly hold and
enjoy the Premises for the Term, without material hindrance from Landlord or any
party claiming by, through, or under Landlord, but not otherwise, subject to the
terms and conditions of this Lease.

                  (j) No Merger. There shall be no merger of the leasehold
estate hereby created with the fee estate in the Premises or any part thereof if
the same person acquires or holds, directly or indirectly, this Lease or any
interest in this Lease and the fee estate in the leasehold Premises or any
interest in such fee estate.

                  (k) No Offer. The submission of this Lease to Tenant shall not
be construed as an offer, and neither party shall have any rights under this
Lease unless and until it is executed and delivered to both parties.

                  (l) Entire Agreement. This Lease constitutes the entire
agreement between Landlord and Tenant regarding the subject matter hereof and
supersedes all oral statements and prior writings relating thereto. Except for
those set forth in this Lease, no representations, warranties, or agreements
have been made by Landlord or Tenant to the other with respect to this Lease or
the obligations of Landlord or Tenant in connection therewith. The normal rule
of construction that any ambiguities be resolved against the drafting party
shall not apply to the interpretation of this Lease or any exhibits or
amendments hereto.

                  (m) Waiver of Jury Trial.  TO THE MAXIMUM EXTENT
PERMITTED BY LAW, LANDLORD AND TENANT EACH WAIVE RIGHT TO TRIAL BY JURY IN ANY
LITIGATION ARISING OUT OF OR WITH RESPECT TO THIS LEASE.

                                       26

<PAGE>

                  (n) Governing Law. This Lease shall be governed by and
construed in accordance with the laws of the State of New Jersey.

                  (o) Joint and Several Liability. If Tenant is comprised of
more than one party, each such party shall be jointly and severally liable for
Tenant's obligations under this Lease.

                  (p) Financial Reports. Within fifteen (15) days after
Landlord's request, Tenant will furnish Tenant's most recent financial
statements, audited, if available (including any notes to them) to Landlord, or,
if no such audited statements have been prepared, such other financial
statements (and notes to them) prepared by an independent certified public
accountant or, if unavailable, Tenant's internally prepared financial statements
certified as true and complete by Tenant's chief financial officer. If Tenant is
a publicly traded corporation, Tenant may satisfy its obligations hereunder by
providing to Landlord Tenant's most recent annual and quarterly reports. Tenant
will discuss its financial statements with Landlord and will give Landlord
access to Tenant's books and records in order to enable Landlord to verify the
financial statements. Landlord will not disclose any aspect of Tenant's
financial statements that Tenant designates to Landlord as confidential except
(1) to Landlord's Mortgagee or prospective purchasers of the Building, (2) in
litigation between Landlord and Tenant, or (3) if required by court order.
Tenant shall not be required to deliver the financial statements required under
this Section more than once in any twelve (12) month period unless requested by
Landlord's Mortgagee or a prospective buyer or lender of the Building, or an
Event of Default occurs.

                  (q) Landlord's Fees. Whenever Tenant requests Landlord to take
any action not required of it hereunder or give any consent required or
permitted under this Lease, Tenant will reimburse Landlord for Landlord's
reasonable, out-of-pocket costs payable to third parties and incurred by
Landlord in reviewing the proposed action or consent, including reasonable
attorneys', engineers' or architects' fees, within ten (10) days after
Landlord's delivery to Tenant of a statement of such costs. Tenant will be
obligated to make such reimbursement without regard to whether Landlord consents
to any such proposed action. Notwithstanding the foregoing, fees related to a
proposed Transfer are governed by Section 8.

                  (r) Telecommunications. Tenant and its telecommunications
companies, including local exchange telecommunications companies and alternative
access vendor services companies shall have no right of access to and within the
Building and/or the Land, for the installation and operation of
telecommunications systems including voice, video, data, and any other
telecommunications services provided over wire, fiber optic, microwave,
wireless, and any other transmission systems, for part or all of Tenant's
telecommunications within the Building and from the Building and/or the Land to
any other location without Landlord's prior written consent, which consent shall
not be unreasonably withheld, conditioned or delayed.

                  (s) Confidentiality. Tenant acknowledges that the terms and
conditions of this Lease are to remain confidential for Landlord's benefit, and
may not be disclosed by Tenant to anyone, by any manner or means, directly or
indirectly, without Landlord's prior written consent. The consent by Landlord to
any disclosures shall not be deemed to be a waiver on the part of Landlord of
any prohibition against any future disclosure.

                                       27

<PAGE>

                  (t) Exhibits. All exhibits and attachments attached hereto are
incorporated herein by this reference.

                  (u) Definitions. (1) "Including", means including, without
limitation; (2) "Lease Month" shall mean each calendar month during the Term
(and if the Commencement Date does not occur on the first day of a calendar
month, the period from the Commencement Date to the first day of the next
calendar month shall be included in the first Lease Month for purposes of
determining the duration of the Term, and the monthly Basic Rent rate applicable
for such partial month shall be apportioned as provided in Section 4(a) of the
Lease); (3) "Tangible Net Worth" shall mean the excess of total assets over
total liabilities, in each case as determined in accordance with generally
accepted accounting principles consistently applied ("GAAP"), excluding,
however, from the determination of total assets all assets which would be
classified as intangible assets under GAAP including goodwill, licenses,
patents, trademarks, trade names, copyrights, and franchises; and (4) "Prime
Rate" shall mean the prime rate as published by The Wall Street Journal,
Northeast Edition, in its listing of "Money Rates".

         25. Other Provisions.

                  (a) LANDLORD AND TENANT EXPRESSLY DISCLAIM ANY IMPLIED
WARRANTY THAT THE PREMISES ARE SUITABLE FOR TENANT'S INTENDED COMMERCIAL
PURPOSE, AND TENANT'S OBLIGATION TO PAY RENT HEREUNDER IS NOT DEPENDENT UPON THE
CONDITION OF THE PREMISES OR THE PERFORMANCE BY LANDLORD OF ITS OBLIGATIONS
HEREUNDER, AND, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN, TENANT SHALL
CONTINUE TO PAY THE RENT, WITHOUT ABATEMENT, SETOFF OR DEDUCTION,
NOTWITHSTANDING ANY BREACH BY LANDLORD OF ITS DUTIES OR OBLIGATIONS HEREUNDER,
WHETHER EXPRESS OR IMPLIED.

                  (b) Landlord reserves the right to discontinue furnishing
electric energy to Tenant in the Premises at any time upon not less than thirty
(30) days' notice to Tenant. If Landlord exercises such right of termination,
this Lease shall continue in full force and effect and shall be unaffected
thereby, except only that, from and after the effective date of such
termination, Landlord shall not be obligated to furnish electric energy to
Tenant. If Landlord discontinues furnishing electric energy to Tenant, Tenant
shall arrange to obtain electric energy directly from the public utility company
furnishing electric service to the Building. Such electric energy may be
furnished to Tenant by means of the then existing building system feeders,
risers and wiring to the extent that the same are available, suitable and safe
for such purposes. All meters and additional panel boards, feeders, risers,
wiring and other conductors and equipment which may be required to obtain
electric energy directly from such public utility company shall be installed by
Landlord at Tenant's expense. There shall be no discontinuance of the furnishing
of electric current to the Premises by Landlord until Tenant has completed its
arrangements to obtain electric current directly from the public utility company
furnishing electric current to the Building, so that there is no interruption in
the continuity of electric service.

                                       28

<PAGE>

         (d) Electric Service Provider.

                        (1) Landlord Controls Selection. Landlord has advised
Tenant that presently PSE&G ("Electric Service Provider") is the utility company
selected by Landlord to provide electricity service for the Building.
Notwithstanding the foregoing, if permitted by Laws, Landlord shall have the
right at any time and from time to time during the Term of this Lease to either
contract for service from a different company or companies providing electricity
service (each such company shall hereinafter be referred to as an "Alternative
Service Provider") or continue to contract for service from the Electric Service
Provider.

                        (2) Tenant Shall Give Landlord Access. Tenant shall
cooperate with Landlord, the Electric Service Provider, and any Alternative
Service Provider at all times and, as reasonably necessary, shall allow
Landlord, Electric Service Provider, and any Alternative Service Provider
reasonable access to the Building's electric lines, feeders, risers, wiring, and
any other machinery within the Premises, as long as Tenant receives reasonable
prior notice, other than in an emergency.

                        (3) Landlord Not Responsible for Interruption of
Service. Landlord shall in no way be liable or responsible for any loss, damage,
or expense that Tenant may sustain or incur by reason of any change, failure,
interference, disruption, or defect in the supply or character of the electric
energy furnished to the Premises, or if the quantity or character of the
electric energy supplied by the Electric Service Provider or any Alternative
Service Provider is no longer available or suitable for Tenant's requirements,
and no such change, failure, defect, unavailability, or unsuitability shall
constitute an actual or constructive eviction, in whole or in part, or entitle
Tenant to any abatement or diminution of rent or relieve Tenant from any of its
obligations under the Lease.

                  Dated as of the date first above written.

         TENANT:                    eRESEARCHTECHNOLOGY, INC.
                                    a Delaware corporation

                                    By: /s/ Bruce Johnson
                                        ----------------------------------------
                                    Name:  Bruce Johnson
                                    Title: Sr. Vice President & CFO

                                       29

<PAGE>

         LANDLORD:                  ADVANCE/GLB 2 L.L.C., a New Jersey
                                    limited liability company

                                    By:  Glenborough Properties, L.P., its sole
                                         member

                                    By:  Glenborough Realty Trust
                                         Incorporated, its General Partner

                                    By: /s/ Andrew Batinovich
                                        ----------------------------------------
                                    Name:  Andrew Batinovich
                                    Title: President & COO

                                       30

<PAGE>

                                    EXHIBIT A

                                PLAN OF PREMISES

                                       A-1

<PAGE>

                               [GRAPHIC OMITTED]

<PAGE>

                                    EXHIBIT B

                      DESCRIPTION OF LAND AND/OR SITE PLAN

                                       B-1

<PAGE>

                               [GRAPHIC OMITTED]

<PAGE>

                                    EXHIBIT C

                                 RENEWAL OPTION

                  Provided no Event of Default exists and Tenant is occupying
the entire Premises at the time of such election, Tenant may renew this Lease
for the Renewal Term, by delivering written notice of the exercise thereof to
Landlord nine (9) months before the expiration of the Term. The Basic Rent
payable for each month during such extended Term shall be the prevailing rental
rate (the "Prevailing Rental Rate") at the commencement of such extended Term,
for renewals of space of equivalent quality, size, utility and location, with
the length of the extended Term and the credit standing of Tenant to be taken
into account; provided, however, that in no event shall the Prevailing Rental
Rate be less than the rental rate in effect during the last year of the Term.

                  The Renewal Term shall be upon the same terms, covenants and
conditions of this Lease as shall be in effect immediately prior to the renewal,
except that:

                           (a) Basic Rent shall be adjusted to the Prevailing
                  Rental Rate;

                           (b) Landlord will establish a new Expense Estimate
                  which shall be effective as of the first day of the Renewal
                  Term;

                           (c) Tenant shall have no further renewal option
                  unless expressly granted by Landlord in writing; and

                           (d) Landlord shall lease to Tenant the Premises in
                  their then-current condition, and Landlord shall not provide
                  to Tenant any allowances (e.g., moving allowance, construction
                  allowance, and the like) or other tenant inducements.

                  For the purposes of determining the Prevailing Rental Rate,
the following procedures shall apply:

                  (i) Landlord shall give Tenant notice (the "Rent Notice") not
later than one hundred eighty (180) days prior to the commencement of the
Renewal Term, which Rent Notice shall set forth Landlord's determination of the
Prevailing Rental Rate ("Landlord's Determination");

                  (ii) Tenant shall give Landlord notice ("Tenant's Notice"),
within thirty (30) days after delivery of the Rent Notice, stating whether
Tenant accepts or disputes the Landlord's Determination or whether Tenant
desires to terminate its exercise of the Renewal Option. If Tenant's Notice
accepts Landlord's Determination or Tenant fails or refuses to give Tenant's
Notice, Tenant shall be deemed to have accepted Landlord's Determination. If
Tenant's Notice disputes Landlord's Determination, Tenant's Notice shall specify
Tenant's determination of the Prevailing Rental Rate ("Tenant's Determination")
as determined by an independent real estate appraiser;

                  (iii) Landlord shall give Tenant notice ("Landlord's Notice"),
within twenty (20) days after delivery of Tenant's Determination, of whether
Landlord accepts or disputes Tenant's Determination. If Landlord's Notice
accepts Tenant's Determination or if Landlord fails or refuses

                                       C-1

<PAGE>

to give Landlord's Notice, Landlord shall be deemed to have accepted Tenant's
Determination. If Landlord's Notice disputes Tenant's Determination, Landlord
shall deliver to Tenant, within thirty (30) days after receipt of Tenant's
Notice, Landlord's determination of the Prevailing Rental Rate ("Landlord's
Second Determination"), as determined by an independent real estate appraiser.
If Landlord's Second Determination exceeds Tenant's Determination by ten percent
(10%) or less, the Basic Rent shall be the average of Landlord's Second
Determination and Tenant's Determination. If Landlord's Second Determination
exceeds Tenant's Determination by more than ten percent (10%), Landlord or
Tenant shall apply to the American Arbitration Association (or any successor
organization) to designate a third independent real estate appraiser (the "Third
Appraiser") in accordance with the then-prevailing rules, regulations and/or
procedures of the American Arbitration Association, and if the American
Arbitration Association (or any successor organization) shall be unable or
unwilling to designate the Third Appraiser, then either party may commence a
legal proceeding to have the Third Appraiser appointed.

                  (iv) The Third Appraiser shall conduct such hearings and
investigations as he may deem appropriate and shall, within thirty (30) days
after the date of designation of the Third Appraiser, choose either Landlord's
Second Determination or Tenant's Determination, and such choice shall be
conclusive and binding upon Landlord and Tenant. Each party shall pay its own
counsel fees and expenses in connection with any arbitration hereunder,
including the expenses and fees of any appraiser selected by it in accordance
with the terms hereof. The unsuccessful party shall bear the costs and expenses
of the Third Appraiser. Any appraiser appointed hereunder shall be an
independent real estate appraiser with at least ten (10) years experience in
leasing and valuation of properties which are similar in character to the
Building. The appraisers shall not have the power to add to, modify or change
any of the provisions of this Lease.

                  (v) If the final determination of the Prevailing Rental Rate
shall not be made on or before the first day of the Renewal Term, pending such
final determination, Tenant shall continue to pay, as the Basic Rent for the
Renewal Term, an amount equal to Landlord's Determination (or, if Landlord shall
have given Landlord's Second Determination, Landlord's Second Determination),
which amount shall in all events be in addition to all Additional Rent payable
under the terms of this Lease. If, based upon the final determination hereunder
of the Basic Rent, the payments made by Tenant on account of Basic Rent for such
portion of the Renewal Term were greater than the Basic Rent payable for the
Renewal Term, the amount of such excess shall be refunded by Landlord to Tenant
within ten (10) business days following the final determination of Basic Rent.

                  (vi) Landlord and Tenant shall promptly execute an amendment
to this Lease evidencing any extension of the Term pursuant to this Exhibit, but
no such amendment shall be necessary in order to make the provisions of this
Exhibit effective.

         Tenant's rights under this Exhibit shall terminate if (1) this Lease or
Tenant's right to possession of the Premises is terminated, (2) Tenant assigns
any of its interest in this Lease or sublets any portion of the Premises, (3)
Tenant fails to timely exercise its option under this Exhibit, time being of the
essence with respect to Tenant's exercise thereof, (4) Landlord determines, in
its sole but reasonable discretion, that Tenant's financial condition or
creditworthiness has materially deteriorated since the Date of this Lease, or
(5) an Event of Default exists at the time of exercise of the option or on the
date the renewal term would commence.

                                       C-2

<PAGE>

                                    EXHIBIT D

                               TENANT WORK LETTER

                  1. Landlord shall provide, at its sole cost and expense and as
its sole and exclusive contribution to the development of the Premises, the
Landlord's Work, which shall include only the following items:

                           (a)    Interior core improvements, including first
                                  floor main lobby, men's and women's toilet
                                  rooms, telephone closets, electrical
                                  closets, janitorial closets and core walls,
                                  on all floors.
                           (b)    Base building HVAC system, pursuant to
                                  Exhibit D-1, Section 12(a), including
                                  vertical duct to all floors.
                           (c)    Radiant heat system around the perimeter of
                                  each floor.
                           (d)    Sprinkler system with heads turned up.
                           (e)    Base building electrical system and
                                  emergency lighting to all core areas.
                           (f)    Tenant's electric meter in the first (1st)
                                  floor electric closet.
                           (g)    Insulated exterior walls with studs in place.
                           (h)    For divided-floor tenancies, all walls
                                  separating the Premises from other tenant
                                  space. Landlord shall be responsible for
                                  only one-half (1/2) of any demising wall to
                                  be constructed by Tenant.

                           Except as set forth in this Exhibit, Tenant accepts
the Premises in their "AS-IS" condition on the date that this Lease is entered
into. It is understood that the plans for the Landlord's Work may be modified
for unavailable materials, code and building official compliance requirements,
field conditions and/or other reasonable conditions, at the reasonable
discretion of Landlord.

                           It is understood that the plans for the Landlord's
Work may be modified for unavailable materials, code and building official
compliance requirements, field conditions and/or other reasonable conditions, at
the reasonable discretion of Landlord.

                  2. As used herein, "Construction Documents" shall mean the
final construction documents to be approved by Landlord and Tenant, as amended
from time to time by any approved change orders, executed by Landlord and
Tenant, and "Work" shall mean all improvements to be constructed in accordance
with and as indicated on the Construction Documents, together with any work
required by governmental authorities to be made to other areas of the Building
solely as a result of the Work. Landlord's approval of the Construction
Documents shall not be a representation or warranty of Landlord that such
drawings are adequate for any use or comply with any Law, but shall merely be a
consent of Landlord thereto. Tenant shall, at Landlord's request, sign the
Construction Documents to evidence its review and approval thereof. All changes
in the Work must receive the prior written approval of Landlord and Tenant
(which approval shall not be unreasonably withheld, conditioned or delayed) and
in the event of any such approved change Tenant shall, upon completion of the
Work, furnish Landlord with an accurate, reproducible "as-built" plan of all the
changes as

                                       D-1

<PAGE>

constructed. After the Construction Documents have been approved, Landlord shall
cause the Work to be performed in accordance with the Construction Documents.

                  If so requested by Tenant in writing, Landlord shall require
the contractor to seek at least three (3) bids from each of the major trades to
complete the Work based on the Construction Documents.

                  3. Landlord shall have the Construction Manager (as
hereinafter defined) prepare the Total Project Cost of the Work (as hereinafter
defined). Tenant shall notify Landlord whether it approves of the Total Project
Cost within three (3) business days after the submission thereof. If Tenant
fails to notify Landlord that it disapproves of the Total Project Cost within
such time period, then Tenant shall be deemed to have approved the Total Project
Cost. If Tenant notifies Landlord that it disapproves the Total Project Cost
within such time period, Tenant and Landlord shall, within five (5) business
days thereafter, value engineer the Total Project Cost. This process shall
continue until the Total Project Cost has been finally approved by Tenant;
provided, however, that the parties understand and agree that in the event the
Total Project Cost is not finally approved on or before sixty (60) days after
Lease execution, each such day beyond that date that the Budget is not finally
approved shall be deemed a Tenant Delay Day, and shall be subject to the
provisions of Paragraph 5 hereof.

                  4. Landlord shall retain the services of Advance Construction,
Inc. ("Construction Manager"), as Construction Manager, to complete the Work as
identified on the Construction Documents and the Landlord's Work. The terms of
the construction contract between Landlord and Construction Manager shall be as
agreed by Landlord and Tenant. The terms shall include an eight percent (8%)
Construction Manager's fee which shall include Construction Manager's corporate
overhead and profit. The project's general conditions shall be in addition to an
eight percent (8%) fee and will include costs for the project manager,
supervision, temporary utilities, clean-up and all other costs associated with
the Work.

                  5. Except for any such delay governed by the provisions of
Section 24(c) of the Lease, if a delay in the performance of the Work occurs
because (a) of any change by Tenant to the Construction Documents other than any
change that is required as a result of Landlord's failure to design the Building
in compliance with applicable law unless the non-compliance occurs as a result
of Tenant's acts or omissions, (b) of any specification by Tenant of materials
or installations in addition to or other than Landlord's standard finish-out
materials, (c) of unanticipated building code issues arising solely from the
Construction Documents, (d) Tenant fails to comply with the time schedules set
forth herein, or (e) Tenant or Tenant's agents otherwise delays completion of
the Work (any of the foregoing being a "Tenant Delay"), then, provided Landlord
has given Tenant prior notice of such event, and Tenant does not promptly cure,
notwithstanding any provision to the contrary in this Lease (each day of delay
caused by any such event shall be a "Tenant Delay Day"), Tenant's obligation to
pay Rent hereunder shall commence on the Commencement Date, as such day may be
adjusted by any Tenant Delay Day; provided, however, that no delay has been
caused by Landlord or any Landlord Party. Notwithstanding any provision to the
contrary in this Lease, Tenant's obligation to pay Rent shall commence no later
than six (6) months after Lease execution.

                  6. Landlord shall contribute $866,432.00 as the Construction
Allowance, based on a rate of $28.00 per square foot of Tenant's Rentable Square
Feet ($28 x 30,944 sf).

                                       D-2

<PAGE>

                  7. The entire cost of performing the Work (including costs of
construction labor and materials, subcontracts, electrical usage within the
Premises during construction, additional janitorial services related to the
Work, related taxes, if any, all requirements of the construction contract,
insurance costs and general conditions), all as shall be contemplated by the
Total Project Cost, including all design fees is herein collectively called the
"Total Project Cost". Any portion of the Total Project Cost in excess of the
Construction Allowance shall be paid by Tenant. Upon approval of the
Construction Documents and the Total Project Cost and selection of
subcontractors, Tenant shall promptly execute an agreement prepared by Landlord
which identifies the Construction Documents, itemizes the Total Project Cost,
sets forth the Construction Allowance, and sets forth the initial share of the
Total Project Cost which is Tenant's responsibility ("Tenant's Contribution"),
the parties understanding that Tenant's Contribution shall be revised in the
event Additional Project Costs (hereinafter defined) are incurred as a result of
any change orders by Tenant. If Tenant requests any changes to the Work after
approval of the Construction Documents, Tenant shall pay all costs, including
permits and fees, architectural, engineering and related design expenses
directly resulting from such changes, and such costs shall be added to the Total
Project Cost (the "Additional Project Costs"). No such changes shall be made
without the prior written consent of Landlord which approval, so long as the
changes do not include changes outside the Premises, shall not be unreasonably
withheld, conditioned or delayed. Landlord shall not be responsible for delay in
occupancy by Tenant because of changes to the Construction Documents after
approval by Tenant as outlined above. Upon completion of such revised
Construction Documents, Landlord shall notify Tenant in writing of the cost
which will include a service fee of twenty-eight percent (28%) of the Additional
Project Costs, which shall be paid by Tenant together with monthly payments
during construction as provided for below. Said twenty-eight percent (28%)
service fee shall include Construction Manager's on-site overhead, profit and
fee (which items are not included in any other costs identified in this Lease),
corporate overhead, and Landlord's cost of processing the Additional Project
Costs. Tenant shall, within five (5) business days of Landlord's notice, notify
Landlord in writing whether Tenant desires to proceed with such changes. In the
absence of such written authorization or Tenant's notice of election not to
proceed with such changes, Landlord shall not be obligated to perform the Work
and Tenant shall be responsible and chargeable for any and all delays in
completion of the Premises resulting therefrom. To the extent that the Total
Project Cost does not exceed the Construction Allowance, Tenant shall receive a
Rent credit or refund of any such difference.

                  8. Upon Landlord's delivery to Tenant of a properly documented
invoice from the Construction Manager itemizing the portion of the Tenant's
Contribution then due, together with verification that the portion of the Work
described in the invoice has been completed and a lien waiver with respect to
such Work, Tenant shall, within fifteen (15) business days of its receipt of
such invoice (such invoices to be provided by Landlord to Tenant monthly during
the course of construction of the Work), make a payment to Landlord equal to
such portion of Tenant's Contribution as described in the invoice. Within two
(2) business days of the issuance of the certificate of occupancy (temporary or
final) for the Premises and/or prior to Tenant's occupancy of the Premises,
Tenant shall pay to Landlord the lesser of: (i) an amount as agreed to between
Landlord and Tenant; or (ii) 85% of the Tenant's Contribution less any prior
payments made by Tenant that have been received by Landlord as of such date. In
the event Landlord has not received all payments required by this paragraph 9,
Landlord has the right to withhold Tenant's occupancy of the Premises until such
date as Landlord has received such payments, notwithstanding the fact that the
Commencement Date has occurred, and Tenant's obligation to begin paying Rent has
commenced.

                                       D-3

<PAGE>

Within thirty (30) days of completion of the Work, Landlord shall provide Tenant
with a properly documented invoice for the balance of Tenant's Contribution,
which shall be paid by Tenant within fifteen (15) business days thereafter.
Landlord and Tenant acknowledge and confirm that it is the intention of the
parties that, with respect to each invoice of the Construction Manager, Landlord
and Tenant shall each pay its proportionate share of the portion of the Total
Project Cost then due.

                  9. Tenant may make periodic inspections of the Premises during
the construction provided that such inspections are made during reasonable
business hours with prior notice to Landlord and provided further that Tenant is
accompanied by a representative of Landlord. Tenant shall advise Landlord
promptly in writing of any objection to the performance of the Work.

                  10. Within fifteen (15) business days of Landlord's notice to
Tenant that the Premises is completed, Tenant shall inspect the Premises in the
presence of Landlord and Landlord's construction manager to establish the Punch
List Items to be completed as soon thereafter as is reasonably possible. Any
costs reasonably incurred with respect to Punch List Items shall be included as
part of Total Project Cost and not as an additional cost to Tenant. Further,
within such time period, Landlord shall provide Tenant with a completion notice
described in Section 3(b) of the Lease.

                  11. Tenant's Work is defined as such limited work as Tenant
may contract separately from the construction contract. Tenant's Work may
include the following: (i) telecommunications and data lines and systems, (ii)
furniture installation; (iii) moving expenses; (iv) limited finishes; and (v)
equipment room. Subject to the provisions of Section 3(b) of the Lease, Tenant
may install Tenant's Work in the Premises in accordance with the terms of the
Lease and in compliance with the following:

                           (a) No such work shall proceed without Landlord's
prior written approval (such approval not to be unreasonably withheld,
conditioned or delayed) of (1) any contract Tenant enters into with respect to
Tenant's Work; (2) detailed plans and specifications for the work; and (3) a
certificate of worker's compensation insurance showing that Tenant maintains
insurance in accordance with the Lease.

                           (b) Tenant shall and shall cause its Construction
Managers to abide by all safety and construction laws, ordinances, rules and
regulations. All work and deliveries shall be scheduled through Landlord in
accordance with the Rules and Regulations attached as Exhibit H to the Lease.
Entry onto the Premises by Tenant's Construction Managers shall be pursuant to
the terms, covenants, provisions and conditions of the Lease. All Tenant's
materials, Tenant's Work, installations and decorations of any nature brought
upon or installed in the Premises before the Commencement Date shall be at
Tenant's risk, and (except for willful misconduct) neither Landlord nor any
party acting on Landlord's behalf shall be responsible for any damage thereto or
loss or destruction thereof. Tenant shall not employ any Construction Manager,
who, in Landlord's reasonable opinion, may prejudice Landlord's negotiations or
relationships with Landlord's Construction Managers or subConstruction Managers
with their employees, or as may disturb harmonious labor relations.

                           (c) Tenant shall reimburse Landlord for any
additional expense incurred by Landlord by reason of any Tenant Work not
performed in accordance with the terms hereof, or

                                       D-4

<PAGE>

by reason of Tenant Delays caused by such Tenant Work, or by reason of cleanup,
which fails to comply with the provisions hereof.

                  12. All Work, and any alteration or improvement by Tenant in
accordance with this Exhibit of the Lease, shall be performed in accordance with
Exhibit D-1. Tenant shall promptly replace any such Work, alteration or
improvement that is not so performed, at Tenant's sole expense. Notwithstanding
any failure by Landlord to object to any such Work, alteration or improvement,
Landlord shall have no responsibility therefore.

                  13. To the extent not inconsistent with this Exhibit, Section
7(a) of this Lease shall govern the performance of the Work and Landlord's and
Tenant's respective rights and obligations regarding the improvements installed
pursuant thereto.

                  14. In the event Tenant defaults in any payment required by
this Exhibit, (following written notice to Tenant and Tenant's failure to pay
within ten (10) days of such notice) Landlord shall, in addition to all other
legally allowable remedies, have the same rights as in the case of an Event of
Default with respect to the payment of Rent under the Lease. Once the Punch List
Items have been completed in accordance with this Exhibit, Tenant shall pay to
Landlord, within five (5) business days of demand thereof, any remaining portion
of Tenant's Contribution.

                  15. Prior to the Commencement Date, Landlord will be required
to provide Tenant with a written notice specifying what portions of the initial
Work Tenant shall be obligated to remove prior to the end of the Term.

                  16. Any conflicts between this Exhibit and the Construction
Documents shall be resolved in favor of this Exhibit.

                                       D-5

<PAGE>

                                   EXHIBIT D-1

                    SCHEDULE OF STANDARD TENANT IMPROVEMENTS

         The following Schedule of Standard Tenant Improvements is provided to
specify the minimum quality standards of the building materials to be used in
the construction of the interior Tenant improvements. Landlord is providing
Tenant with the usable premises in its "as-is" raw condition which consists of
only the main "home run" lines for HVAC and sprinkler.

                  1.       Partitions

                           (a) Partitions within the Premises shall have 1/2"
                  gypsum board on each side of 3-5/8" metal studs, 16" on
                  center, taped and spackled. Partitions between the Premises,
                  corridor(s) and between the Premises and adjacent space, shall
                  have 5/8" fire code gypsum board, taped and spackled, on each
                  side of 3-5/8" metal studs, 16" on center above finished
                  ceiling to underside of metal deck. Demising partitions and
                  corridor partitions to have thermofibre insulation installed
                  within, and to be constructed from floor to underside of metal
                  deck above.

                  2.       Doors and Bucks

                           (a) All frames to be hollow metal knock down door
                 frames.

                           (b) Doors within the Premises to be 3'-0" x 8'-0" x
                  1'3/4" solid core, stain grade birch veneer.

                           (c) Entrance doors from corridors thru to the
                  Premises to be full height (8'-0") double herculite frameless
                  3/4" clear glass doors, or double wood solid core
                  Mahogany veneer doors (see attached typical Tenant Entrance).

                           (d) All doors to be located, oriented and with
                  hardware in accordance with applicable codes.

                  3.       Glazing

                           Glazing in windows, doors and partitions shall be as
                 required by code.

                  4.       Hardware

                           (a) Provide cylindrical latch sets with lever handle,
                  on individual office doors within the Premises.

                           (b) Provide lock sets with level handle and closers,
                  on doors from corridor(s) to the Premises.

                           (c) Provide sets and latch sets to be Schlage, Series
                  "D", or equivalent,  as approved by Landlord.

                                      D1-1

<PAGE>

                           (d) All lock sets shall be keyed to the building
                  master key system.

                  5.       Acoustical Ceilings

                           (a) Lay-in acoustic tile ceilings, within the
                  Premises, shall be 2' x 4' acoustical lay-in ceiling,
                  Armstrong Second Look II (white) in 15/16" grid (white).

                           (b) Ceiling heights within the Premises to be nominal
                  9'-0" at typical floors.

                           (c) Direction of ceiling grid to be as determined by
                  Landlord.

                  6.       Floorings

                           (a) All carpet materials will be selected by Tenant
                  subject to flame spread rating submitted to both Fire
                  Department and Landlord.

                           (b) Supply rooms, telephone rooms, equipment rooms
                  and mail rooms within the Premises will receive vinyl
                  composition tile and 4" vinyl base.

                  7.       Painting

                           (a) Interior wall surfaces of gypsum board shall
                  receive two (2) coats of flat latex paint, Benjamin Moore, or
                  equal, colors to be selected by Tenant.

                           (b) All interior ferrous metal surfaces shall receive
                  two (2) coats of alkyd semi-gloss enamel paint over
                  shop-applied primer.

                           (c) All wood doors to receive one (1) coat of sealer
                  and two (2) coats of clear polyurethane waterbase satin finish
                  or two (2) coats of enamel.

                           (d) All wall covering materials will be selected by
                  Tenant subject to flame spread rating must be submitted to
                  both Fire Department and Landlord.

                  8.       Window Covering

                           Building standard blinds shall be Levolor - Riviera
                  Dustguard 1" Horizontal aluminum blind. Color #892 Low Gloss
                  Black. Substitution of building standard blinds by Tenants is
                  not permitted.

                  9.       Electrical Specifications

                           (a) Lighting: 2' x 4' recessed flourescent lay-in 3"
                  deep, 18 cell low iridescence Parabolic louver (1 fixture per
                  80SF), Energy efficient ballast.

                           (b) The average electric load of the Premises shall
                  not exceed sib (6) watts per usable square foot for power and
                  three (3) watts per square foot for lighting.

                  10.      Fire and Life Safety Features

                           (a) The building is to be fully sprinklered.

                                      D1-2

<PAGE>

                           (b) Sprinkler installation to consist of recessed
                  heads sprinklers with white covers in Tenant's space.

                           (c) Fire alarm system consisting of manual pull
                  boxes, annunciators, alarm bells, control panel, to code.

                           (d) Smoke detectors, photoelectric type in elevator
                  lobbies, electric equipment rooms, elevator machine rooms, and
                  in ducts where quantity is over 15,000 CFM. Firestats in the
                  duct work where air quantity is less than 15,000 CFM.

                           (e) Emergency and exit lighting in public spaces.

                           (f) All work involving smoke detectors and fire
                  alarms must be performed by Landlord's designated
                  subcontractor.

                  11.      Telephone Data

                           (a) Landlord shall arrange with local telephone
                  company for telephone service within the equipment room in the
                  building core.

                           (b) All telephone work and wiring in partitions,
                  floors and ceilings to be paid for by Tenant and arrange for
                  by Tenant with the telephone company or other qualified
                  installer selected by Tenant but approved by Landlord.
                  Landlord will coordinate work with other trades as required.
                  All electrical load centers, special wiring and plywood,
                  supplied for telephone equipment, shall be an extra cost to be
                  paid by Tenant. Telephone and data wiring is to meet all
                  prevailing codes.

                           (c) Fibre optic capability is available on Route 22
                  to Tenant, at Tenant's expense.

                  12.      HVAC Specification

                           (a) Heating, ventilation and air-condition system
                  shall be capable of maintaining the following interior
                  conditions, subject to governmental regulations:

                           Summer - 78 degrees F (+/-2 degrees C) dry bulb and
                  50% relative humidity when outside temperature is 90 degrees F
                  dry bulb and 75 degrees F wet.

                           Winter - 70 degrees F when outside temperature is 13
                  degrees F.

                           (b) HVAC systems shall be variable air volume
                  (V.A.V.) system. V.A.V. - DDC control units will have
                  automatic thermostats and volume controls mounted in the rooms
                  or open spaces within the Premises. Control units can operate
                  from 100% of nominal volume to 10% of nominal volume.

                           (c) The control units are connected to supply duct
                  systems which are supplied with conditioned air from rooftop
                  air handling units with cooling coils, filters, mixing dampers
                  and relief dampers.

                           (d) A control panel for each system contains time
                  clock, refrigeration step controller, duct supply air control
                  thermostat and automatic economizer controls.

                                      D1-3

<PAGE>

                           (e) HVAC. Design Conditions:

                           Summer Outside    90 degrees Fahrenheit Dry Bulb 75
                                                Fahrenheit Wet Bulb
                           Summer Inside     78 degrees Fahrenheit Dry Bulb +/-2
                                                degrees
                           Winter Outside    13 degrees Fahrenheit 15 MPH wind
                           Winter Inside     70 degrees Fahrenheit Dry Bulb

                           (f)      HVAC Zoning:

                                    o       All exterior zones shall have one
                                            VAV box per 1200 square feet and one
                                            VAV box per corner office (two or
                                            more exposure).
                                    o       All interior spaces shall have one
                                            VAV box per 2000 square feet.
                                    o       All interior perimeter shall have
                                            not water radiant ceiling heat
                                            panels.

                           (g) HVAC Ductwork. Medium pressure duct system will
                  be designed at air velocity range from 2500 - 3000 FPM. All
                  ductwork will be installed in accordance with the latest
                  SMACANA Standards.

                           (h) If Tenant's interior layout provides for an above
                  normal amount of floor-to ceiling partitions, or if Tenant's
                  equipment (i.e., conference rooms, mail rooms, lunch rooms,
                  etc.( requires air-conditioning above and beyond building
                  standard, as outlined, said additional air-conditioning
                  (including cost of operation as stipulated on the Lease) shall
                  be paid for by Tenant as an extra cost. Any special exhaust
                  requirements will also be an extra costs to be paid by Tenant.

                           (i) All work involving the connection of HVAC control
                  systems must be performed by Landlord's designated contractor.

                  13.      Disturbance to Other Tenants

                           Penetration of another tenant's space shall not
                  commence until Tenant has notified Landlord and Landlord has
                  approved the schedule of work. The tenant whose space is being
                  penetrated has the right to demand the work within its area be
                  done on an overtime basis.

                  14.      Noise

                           The use of jack hammers, core drilling, or other
                  heavy noise shall not be used until Landlord has been notified
                  and has given approval.

                                      D1-4

<PAGE>

                                    EXHIBIT E

                                 AMENDMENT NO. 1

                  This Amendment No. 1 (this "Amendment") is executed as of
______________, 199___ between ADVANCE/GLB 2 L.L.C., a New Jersey limited
liability company ("Landlord"), and eRESEARCHTECHNOLOGY, INC., a Delaware
("Tenant"), for the purpose of amending the Lease Agreement between Landlord and
Tenant dated ______________, 2000 (the "Lease"). Capitalized terms used herein
but not defined shall be given the meanings assigned to them in the Lease.

                                   AGREEMENTS

                  For valuable consideration, whose receipt and sufficiency are
acknowledged, Landlord and Tenant agree as follows:

         (a)      Condition of Premises. Tenant has accepted possession of the
                  Premises pursuant to the Lease. Any improvements required by
                  the terms of the Lease to be made by Landlord have been
                  completed to the full and complete satisfaction of Tenant in
                  all respects except for the punchlist simultaneously delivered
                  to Landlord (the "Punchlist Items"), and except for such
                  Punchlist Items, Landlord has fulfilled all of its duties
                  under the Lease with respect to such initial tenant
                  improvements. Furthermore, Tenant acknowledges that the
                  Premises are suitable for the Permitted Use.

         (b)      Commencement Date. The Commencement Date of the Lease is
                  __________, 2000. If the Anticipated Commencement Date set
                  forth in the Lease is different than the date set forth in the
                  preceding sentence, then the Commencement Date as contained in
                  the Lease is amended to be the Commencement Date set forth in
                  the preceding sentence.

         (c)      Expiration Date. The Term is scheduled to expire on
                  __________, 2000. If the scheduled expiration date of the
                  initial Term as set forth in the Lease is different than the
                  date set forth in the preceding sentence, then the scheduled
                  expiration date as set forth in the Lease is hereby amended to
                  the expiration date set forth in the preceding sentence.

         (d)      Contact Numbers. Tenant's telephone number in the Premises is
                  _________. Tenant's telecopy number in the Premises is
                  __________.

         (e)      Ratification. Tenant and Landlord each hereby ratify and
                  confirm its obligations under the Lease, and represents and
                  warrants to the other that, to the best

                                       E-1

<PAGE>

                  of its knowledge, it has no defenses thereto. Additionally,
                  Tenant and Landlord each further confirms and ratifies that,
                  as of the date hereof, the Lease is and remains in good
                  standing and in full force and effect, and such party has no
                  claims, counterclaims, set-offs or defenses against the other
                  arising out of the Lease or in any way relating thereto or
                  arising out of any other transaction between Landlord and
                  Tenant.

         (f)      Binding Effect; Governing Law. Except as modified hereby, the
                  Lease shall remain in full effect and this Amendment shall be
                  binding upon Landlord and Tenant and their respective
                  successors and assigns. If any inconsistency exists or arises
                  between the terms of this Amendment and the terms of the
                  Lease, the terms of this Amendment shall prevail. This
                  Amendment shall be governed by the laws of the State of New
                  Jersey.

         (g)      Counterparts. This Amendment may be executed in multiple
                  counterparts, each of which shall constitute an original, but
                  all of which shall constitute one document.

                  Executed as of the date first written above.

         TENANT:                  eRESEARCHTECHNOLOGY, INC.,
                                  -------------------------
                                  a Delaware corporation

                                           By:
                                              ---------------------------------
                                           Name:
                                                -------------------------------
                                           Title:
                                                 ------------------------------

         LANDLORD:                ADVANCE/GLB 2 L.L.C., a New Jersey limited
                                  liability company
                                           By:      Glenborough Properties,
                                                    L.P., its sole member

                                           By:      Glenborough Realty Trust
                                                    Incorporated, its General
                                                    Partner

                                           By:
                                              ---------------------------------
                                           Name:
                                           Title:

                                       E-2

<PAGE>

                                    EXHIBIT F

                                    GUARANTY

                  As a material inducement to Landlord to enter into the Lease,
dated August __, 2000 (the "Lease"), between eResearch Technologies, as Tenant,
and ADVANCE/GLB 2, L.L.C., as Landlord, PRWW, Inc. ("Guarantor") hereby
unconditionally and irrevocably guarantees the complete and timely performance
of each obligation of Tenant (and any assignee) under the Lease and any
extensions or renewals of and amendments to the Lease. This Guaranty is an
absolute, primary, and continuing, guaranty of payment and performance and is
independent of Tenant's obligations under the Lease. Guarantor (and if this
Guaranty is signed by more than one person or entity, each Guarantor hereunder)
shall be primarily liable, jointly and severally, with Tenant and any other
guarantor of Tenant's obligations. Guarantor waives any right to require
Landlord to join Tenant with Guarantor in any suit arising under this Guaranty,
proceed against or exhaust any security given to secure Tenant's obligations
under the Lease, or pursue or exhaust any other remedy in Landlord's power.
Landlord may, without notice or demand and without affecting Guarantor's
liability hereunder, from time to time, compromise, extend or otherwise modify
any or all of the terms of the Lease. Guarantor hereby waives all demands for
performance, notices of performance, and notices of acceptance of this Guaranty.
The liability of Guarantor under this Guaranty will not be affected by the
release or discharge of Tenant from, or impairment, limitation or modification
of, Tenant's obligations under the Lease in any bankruptcy, receivership, or
other debtor relief proceeding, whether state or federal and whether voluntary
or involuntary; the rejection or disaffirmance of the Lease in any such
proceeding; or the cessation from any cause whatsoever of the liability of
Tenant under the Lease. Guarantor shall pay to Landlord all costs incurred by
Landlord in enforcing this Guaranty (including, without limitation, reasonable
attorneys' fees and expenses). The obligations of Tenant under the Lease to
execute and deliver estoppel statements, as therein provided, shall be deemed to
also require the Guarantor hereunder to do so and provide the same relative to
Guarantor following written request by Landlord in accordance with the terms of
the Lease.

         Notwithstanding the foregoing, in the event (a) of an initial public
offering of Tenant wherein Tenant receives a minimum of $40,000,000.00 in equity
capital and (b) Tenant has at least $45,000,000.00 in Shareholder equity in its
audited financial statements, then in that event Landlord agrees not to enforce
the provisions of this Guaranty from and after the date that Tenant provides
Landlord with documentation evidencing the satisfaction of the conditions set
forth in (a) and (b) herein.

                                       F-1

<PAGE>

      eResearch Technology, Inc.                PRWW, Inc.

      By: /s/ Bruce Johnson                     By: /s/ Joel Morganroth
          -------------------------------           ----------------------------
          Name:  Bruce Johnson                      Name:  Joel Morganroth
          Title: Sr. Vice President & CFO           Title: Chairman & CEO

                                       F-2

<PAGE>

                                    EXHIBIT G

                             CLEANING SPECIFICATIONS

    Private And General
    Office Cleaning:           Performed daily, Monday through Friday, except
                               for Building Holidays.

                               1.  Hand dust and wipe clean within reach, all
                                   office doors and furniture to include desks,
                                   chairs, chair rails, tables, files, cabinets,
                                   safes, etc.

                               2.  Dust all window sills, baseboard, and
                                   baseboard heating, wash off same whenever
                                   necessary.

                               3.  Wash all glass tables and desk tops.

                               4.  Empty and clean all waste baskets,
                                   receptacles, damp dust and wash same whenever
                                   necessary.

                               5.  Trash liners to be changed as needed.

                               6.  Vacuum clean all carpeting each night, spot
                                   clean weekly.

                               7.  Remove all finger prints from windows, light
                                   switches and doorways.

                               8.  Dust under all desk equipment and telephones.

                               9.  Upon completion of the foregoing work
                                   assignments, all lights will be turned off,
                                   all doors locked and premises left in a neat
                                   and orderly condition. Attention to be given
                                   to interior lights being turned off.

    Conference And Training
    Room Cleaning:             Performed daily, Monday through Friday, except
                               for Building Holidays.

                               1.  Vacuum carpet and remove spots nightly.

                               2.  Wipe clean and dust all tables, chairs, built
                                   in woodworking and marking board, unless
                                   labeled otherwise not to clean.

                               3.  Remove stains from wall fabric.

                               4.  Empty and reline trash cans as needed.

                               5.  After cleaning, arrange furniture and turn
                                   off lights.

                                       G-1

<PAGE>

    Stairway And
    Elevator Cleaning:         Performed daily, Monday through Friday, except
                               for Building Holidays.

                               1.  Vacuum carpet and remove spots.

                               2.  Clean and polish stainless steel handrails,
                                   doors, door frames and wipe clean elevator
                                   walls.

                               3.  Thoroughly vacuum elevator door tracks.

                               4.  Wipe clean handrails in stairways as well as
                                   doors.

                               5.  Damp mop and/or sweep steps and landings.

                               6.  Wipe clean and dust stairway stringers and
                                   undersides.

    Lobby And Corridor
    Cleaning (Public Areas):   Performed daily, Monday through Friday, except
                               for Building Holidays.

                               1.  Vacuum carpet and remove spots.

                               2.  Clean and polish glass, handrails, and entry
                                   Doors.

                               3.  Dust all lounge furniture, displays,
                                   woodworking and brush upholstery. Upholstery
                                   to be vacuumed weekly.

                               4.  Remove all fingerprints from all glass and
                                   dust wood handrails.

                               5.  Wash and sanitize all water fountains and
                                   bottled water dispensers.

                               6.  Wipe all exterior elevator metal clean.

    Restroom Cleaning:         Performed daily, Monday through Friday, except
                               for Building Holidays.

                               1.  Sweep and mop floors using approved
                                   disinfectant process.

                               2.  Spot wash all tile walls and metal dividing
                                   partitions.

                               3.  Scour clean and disinfect all basins, bowls
                                   and urinals. This will include the undersides
                                   of these fixtures.

                               4.  Wash and disinfect both sides of all toilet
                                   seats.

                               5.  Wash and polish all mirrors, bright work and
                                   enamel surfaces.

                               6.  Empty and clean all waste receptacles, liners
                                   to be replaced daily.

                                       G-2

<PAGE>

                               7.  Fill all tissue, towel, sanitary napkin,
                                   toilet seat cover and soap dispensers.

    Grounds And Exterior
    Walkway Cleaning:          Performed daily, Monday through Friday, except
                               for Building Holidays.

                               1.  All entrance walkways and steps should be
                                   swept.

                               2.  Exterior metal handrails are to be wiped
                                   clean.

                               3.  All litter to be picked up and discarded in
                                   proper receptacles.

    Periodic Cleaning
    Requirements:              To be performed weekly

                               1.  Sanitize all public and private telephones.

                               2.  Machine scrub all tile flooring in the
                                   corridors, cafeteria and restrooms.

                               3.  Dust the tops of all modular furniture
                                   systems.

                               4.  Dust all chair bases.

                               5.  Damp wipe all desk tops that are cleared of
                                   papers.

                               6.  High dust all furniture, pictures and
                                   equipment not performed daily.

                               7.  Machine clean elevator.

    Periodic Cleaning
    Requirements
    (Continued):               To be performed as specified

                               1.  Every (3) three months, machine scrub, wash
                                   and polish all resilient flooring, apply (2)
                                   two coats of non-slip floor wax.

                               2.  Every month, clean the interior of all
                                   refrigerators, per procedure.

    General Cleaning
    Guidelines:                To be performed as noted and required

                               1.  Collect and place all office garbage in the
                                   compactor dumpster located on the site.
                                   Follow the established recycling procedures
                                   to determine what goes where.

                                       G-3

<PAGE>

                               2.  Report all irregularities, damaged equipment
                                   and furniture and anything else that is out
                                   of order to the building manager as soon as
                                   possible.

                               3.  Secure entire building per the established
                                   closing procedures.

                                       G-4

<PAGE>

                                    EXHIBIT H

                         BUILDING RULES AND REGULATIONS

                  The following rules and regulations shall apply to the
Premises, the Building, the Park, and the appurtenances thereto:

                  1. Sidewalks, doorways, vestibules, halls, stairways, and
other similar areas shall not be obstructed by tenants or used by any tenant for
purposes other than ingress and egress to and from their respective leased
premises and for going from one to another part of the Building.

                  2. Plumbing, fixtures and appliances shall be used only for
the purposes for which designed, and no sweepings, rubbish, rags or other
unsuitable material shall be thrown or deposited therein. Damage resulting to
any such fixtures or appliances from misuse by a tenant or its agents, employees
or invitees, shall be paid by such tenant.

                  3. No signs, advertisements or notices shall be inscribed,
painted, affixed of displayed in, on, upon or behind any windows or doors,
except as may be required by law or agreed upon by the parties; and no company
name, logo, sign, advertisement or notice shall be inscribed, painted or affixed
outside the tenant's leased premises or entrance or on any doors, without the
prior written consent of Landlord, which shall not be unreasonably withheld,
conditioned or delayed. If such consent is given by Landlord, any such sign,
advertisement or notice shall be inscribed, painted or affixed by Landlord, but
the cost of same shall be charged to and be paid by Tenant, and Tenant agrees to
pay the same promptly, on demand. Landlord agrees that each tenant shall be
suitably identified by providing standard signs within the Building. No signs,
advertisements or notices of any kind shall be affixed to the outside of any
tenant's leased premises, or to the Land or the Park, without the express
written consent of the Landlord. No curtains or other window treatments shall be
placed between the glass and the Building standard blinds.

                  4. Landlord shall provide all door locks in each tenants
leased premises, at the cost of such tenant, and no tenant shall place any
additional door locks in its leased premises without Landlords prior written
consent. Two (2) keys will be furnished to Tenant by Landlord; two (2)
additional keys will be supplied to Tenant, by Landlord upon request, and
without charge. Any additional keys will be supplied to Tenant by Landlord upon
request, and without charge. Any additional keys requested by Tenant shall be
paid for by Tenant. All keys to doors and washrooms shall be returned to
Landlord upon the termination of the tenancy, and, in the event of loss of any
keys furnished, tenant shall pay Landlord the cost thereof.

                  5. Movement in or out of the Building of furniture or office
equipment, or dispatch or receipt by tenants of any bulky material, merchandise
or materials which require use of elevators or stairways, or movement through
the Building entrances or lobby shall be conducted under Landlord's reasonable
supervision at such times and in such a manner as Landlord may reasonably
require. Each tenant assumes all risks of and shall be liable for all damage to
articles

                                       H-1

<PAGE>

moved and injury to persons or public engaged or not engaged in such movement,
including equipment, property and personnel of Landlord if damaged or injured as
a result of acts in connection with carrying out this service for such tenant,
but the cost to correct all damage done to the Building and/or the Park by
moving or maintaining any such equipment or freight shall be paid by any such
tenant. Landlord reserves the right to reasonably inspect all freight to be
brought into the Building, and to exclude from the Building all freight which
violates any of these Rules and Regulations, or violates the Lease, of which
these Rules and Regulations are a part. Tenant shall provide Landlord with ten
(10) days written notice prior to the positioning or installation of any item
requiring Landlord's attention under this paragraph, provided that such
requirement shall not apply to Tenant's initial alterations.

                  6. Landlord may reasonably prescribe size and weight
limitations and determine the locations for safes and other heavy equipment or
items, which shall in all cases be placed in the Building so as to distribute
weight in a manner reasonably acceptable to Landlord which may include the use
of such supporting devices as Landlord may reasonably require. All damages to
the Building caused by the installation or removal of any property of a tenant,
or done by a tenant's property while in the Building, shall be repaired at the
expense of such tenant.

                  7. Corridor doors, when not in use, shall be kept closed.
Nothing shall be swept or thrown into the corridors, halls, elevator shafts or
stairways. No bicycles, vehicles or animals shall be brought into or kept in, on
or about any tenants leased premises. No portion of any tenants leased premises
shall at any time be used or occupied as sleeping or lodging quarters.

                  8. Each tenant shall cooperate with Landlord's employees in
keeping its leased premises neat and clean. Tenants shall not enter into any
contract of any kind with any supplier to towels, water, toilet articles,
waxing, rug shampooing, venetian blind washing, furniture polishing, lamp
servicing, cleaning of electrical fixtures, removal of waste paper, rubbish or
garbage, without the prior written consent of Landlord, which shall not be
unreasonably withheld, conditioned or delayed.

                     Tenant shall not employ any person or persons other than
Landlord's janitors for the purpose of cleaning its leased premises, without
prior written consent of Landlord. Landlord shall not be responsible to any
tenant for any loss of property from its leased premises, however occurring, or
for any damage done to the effects of such tenant by such janitors or any of its
employees, or by any other person or any other cause. Each tenant is responsible
for notifying Landlord within eight (8) hours of any spill or stain on their
carpet, so that Landlord may insure the janitorial service will remove the stain
at such tenant's expense. If Landlord is not notified, but observes the stain,
then Landlord may enter the leased premises and have the stain removed and bill
the tenant for the reasonable cost of removing same.

                  9. To ensure orderly operation of the Building, no ice,
towels, etc. shall be delivered to any leased premises except by persons
approved by Landlord, provided, however, that water and newspapers may be
delivered to a leased premises without Landlord's approval.

                                       H-2

<PAGE>

                  10. Tenant shall not make or permit any vibration or improper,
unusual, objectionable or unpleasant noises or odors in the Building or
otherwise unreasonably interfere in any way with other tenants or persons having
business with them.

                  11. No machinery of any kind (other than normal office
equipment) shall be operated by any tenant on its leased area without Landlord's
prior written consent, nor shall any tenant use or keep in the Building any
flammable or explosive fluid or substance, except in such quantities as are
normally used for cleaning or as office supplies.

                  12. Landlord will not be responsible for lost or stolen
personal property, money or jewelry from tenant's leased premises or public or
common areas regardless of whether such loss occurs when the area is locked
against entry or not unless this results from the gross negligence or willful
misconduct of Landlord.

                  13. No vending or dispensing machines of any kind may be
maintained in any leased premises without the prior written consent of Landlord,
which shall not be unreasonably withheld, conditioned or delayed.

                  14. Tenant shall not conduct any activity on or about the
Premises or Building which will draw pickets, demonstrators, or the like.

                  15. All vehicles are to be currently licensed, in good
operating condition, parked for business purposes having to do with Tenants
business operated in its leased premises, parked within designated parking
spaces, one vehicle to each space. No vehicle shall be parked as a "billboard"
vehicle in the parking lot. Any vehicle parked improperly may be towed away.
Tenant, tenants agents, employees, vendors and customers who do not operate or
park their vehicles as required shall subject the vehicle to being towed at the
expense of the owner or driver. Landlord may place a "boot" on the vehicle to
immobilize it and may levy a charge of $50.00 to remove the "boot." Tenant shall
indemnify, hold and save harmless Landlord of any liability arising from the
towing or booting of any vehicles belonging to Tenant or a Tenant Party.

                  16. No tenant may enter into phone rooms, electrical rooms,
mechanical rooms, or other service areas of the Building unless accompanied by
Landlord or the Building manager.

                  17. Tenant shall not use the Premises for any use which is
disreputable, creates extraordinary fire hazards, or results in an increased
rate of insurance on the Building or its contents, or for the storage of any
Hazardous Materials, except in de minimus quantities in accordance with Laws.

                  18. Building hours shall be from Monday through Friday 7:30
a.m. to 5:30 p.m. except for Building Holidays (the "Business Hours"). Except as
otherwise provided in the Lease, Tenant shall at all times have access to the
Premises, Building and Parking Area. Except as

                                       H-3

<PAGE>

otherwise provided in the Lease, Landlord however, reserves the right to
reasonably limit or regulate access to the Building and any leased premises
during nights and weekends, if required, to insure security of the Building and
the Park. Landlord reserves the right to exclude from the Building, at any time
other than the Business Hours, all persons who do not present a pass to the
Building signed by a tenant or an employee ID or key card of any tenant. Each
Tenant shall be responsible for all persons for whom it issues such a pass, ID
or key card and shall be liable to the Landlord for all acts of such persons.
During any time other than the Business Hours, Landlord shall not be required to
provide any HVAC through the central system of the Building. Such services shall
be limited to the perimeter units located with Tenant's leased premises. If
Tenant desires any of the services specified in Section 6(a)(2) of the Lease:
(A) at any time other than the Business Hours, or (B) on weekends or Building
Holidays, then such services shall be supplied to Tenant by using the HVAC
override switch on each floor at $40.00 per hour.

                  "Building Holidays" shall mean New Year's Day, Washington's
Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veteran's
Day, Thanksgiving Day and the day after, and Christmas Day, as each of said
holidays are celebrated in the State in which the Land is located and such other
days as Federal and State law provide or building service contracts or union
contracts specify.

                  19. Tenant shall not paint or install lighting or decorations,
window or door lettering, or advertising media of any type on or about the
Premises without the prior written consent of Landlord, which shall not be
unreasonably withheld, conditioned or delayed; however, Landlord may withhold
its consent to any such painting or installation which would affect the
appearance of the exterior of the Building or of any common areas of the
Building.

                  20. The Building is a smoke-free environment. There shall be
no smoking permitted anywhere in the Building within and including common areas,
bathrooms, hallways, stairwells and lobbies. Smoking is not permitted anywhere
within each tenant's leased premises.

                       The Landlord provides receptacles outside of each
Building's rear entrance for use by those who do smoke. Smokers are requested to
use the receptacles on the ground. Do not discard cigarette butts on the ground
or outside the Building entrances so as to avoid an unsightly mess.

                  21. When electrical wiring of any kind is introduced, it must
be connected as reasonably directed by Landlord, and no stringing or cutting of
wires will be allowed, except with the prior written consent of Landlord, and
shall be done only by contractors approved by Landlord.

                  22.  Service call hours are:
                       Monday - Friday
                       8:30 a.m. to 5:00 p.m.
                       Phone Number: 908-719-3000

                                       H-4

<PAGE>

                       In the event of an emergency, whether plumbing, water
leaks, power outage, fire, theft, etc., Landlord's maintenance department must
be contacted immediately at the main telephone number 908-719-3000.

                  23. The requirements of Tenant will be attended to only upon
the making of an application at the office of the Building Manager. Employees of
Landlord shall not perform any work for any tenant or do anything outside of
their regular duties unless under special instructions from the office of
Landlord. Landlord agrees to keep tenants advised at all times of how to contact
the Building Manager.

                  24. (a) Tenant shall not conduct, or permit any other person
to conduct, any auction on its leased premises; manufacture or store goods,
wares or merchandise upon its leased premises, without the prior written
approval of Landlord, except for the storage of usual supplies and inventory to
be used by Tenant in the conduct of its business; shall not permit its leased
premises to be used for gambling; shall not permit any musical instruments to be
played in its leased premises; shall not permit to be played any radio,
television, record or wire music in such loud manner as to disturb or annoy
other tenants of the Building; or permit any unusual odors to be produced upon
its leased premises. Tenant shall not occupy or permit any portion of its leased
premises to be occupied as an office of public stenographer or for the
possession, storage, manufacture or sale of intoxicating beverages, tobacco in
any form, or as a barber or manicure shop.

                      (b) No awnings or other projections shall be attached to
the outside walls of the Building. No curtains, blinds, shades or screens shall
be attached or hung in, or used in connection with, any window or door of the
premises without the prior written consent of Landlord. Any curtains, blinds and
shades must be a quality, type, design and color and attached in a manner
approved by Landlord.

                      (c) Canvassing, solicitation and peddling in the Building
are prohibited, and each tenant shall cooperate to prevent the same.

                      (d) There shall not be used in the leased premises, or the
Building, either by Tenant or by others, in the delivery or receipt of
merchandise, any hand trucks except those equipped with rubber tires and side
guards.

                      (e) Landlord shall have the right to prohibit any
advertising by tenant which, in Landlord's reasonable opinion, tends to impair
the reputation of the Building or its desirability as a Building for offices,
and upon written notice from Landlord, Tenant shall refrain from or discontinue
such advertising.

                      (f) Landlord hereby reserves to itself any and all rights
not granted to Tenant hereunder.

                                       H-5

<PAGE>

                                    EXHIBIT I

                       FORM OF TENANT ESTOPPEL CERTIFICATE

                  The undersigned is the Tenant under the Lease (defined below)
between ADVANCE/GLB 2 L.L.C., a New Jersey limited liability company, as
Landlord, and the undersigned as Tenant, for the Premises on the __________
floor(s) of the office building located at _____________________, __________ and
commonly known as _______________________, and hereby certifies as follows:

                  1. The Lease consists of the original Lease Agreement dated as
of ___________, 199___ between Tenant and Landlord ['s predecessor-in-interest]
and the following amendments or modifications thereto (if none, please state
"none"):________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

         The documents listed above are herein collectively referred to as the
"Lease" and represent the entire agreement between the parties with respect to
the Premises. All capitalized terms used herein but not defined shall be given
the meaning assigned to them in the Lease.

                  2. The Lease is in full force and effect and has not been
modified, supplemented or amended in any way except as provided in Section 1
above.

                  3. The Term commenced on __________________, 200__ and the
Term expires, excluding any renewal options, on _____________________, 200__,
and Tenant has no option to purchase all or any part of the Premises or the
Building or, except as expressly set forth in the Lease, any option to terminate
or cancel the Lease.

                  4. Tenant currently occupies the Premises described in the
Lease and Tenant has not transferred, assigned, or sublet any portion of the
Premises nor entered into any license or concession agreements with respect
thereto except as follows (if none, please state "none"):_______________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

                  5. All monthly installments of Basic Rent, all Additional Rent
and all monthly installments of estimated Additional Rent have been paid when
due through _____________ . The current monthly installment of Basic Rent is
$_______________ .

                                       I-1

<PAGE>

                  6. All conditions of the Lease to be performed by Landlord
necessary to the enforceability of the Lease have been satisfied and Landlord is
not in default thereunder. In addition, Tenant has not delivered any notice to
Landlord regarding a default by Landlord thereunder.

                  7. As of the date hereof, there are no existing defenses or
offsets, or, to the undersigned's knowledge, claims or any basis for a claim,
that the undersigned has against Landlord and no event has occurred and no
condition exists, which, with the giving of notice or the passage of time, or
both, will constitute a default under the Lease.

         (h)      No rental has been paid more than 30 days in advance and no
                  security deposit has been delivered to Landlord except as
                  provided in the Lease.

         (i)      If Tenant is a corporation, partnership or other business
                  entity, each individual executing this Estoppel Certificate on
                  behalf of Tenant hereby represents and warrants that Tenant is
                  a duly formed and existing entity qualified to do business in
                  the State of New Jersey and that Tenant has full right and
                  authority to execute and deliver this Estoppel Certificate and
                  that each person signing on behalf of Tenant is authorized to
                  do so.

         (j)      There are no actions pending against Tenant under any
                  bankruptcy or similar laws of the United States or any state.

         (k)      Other than in compliance with all applicable laws and
                  incidental to the ordinary course of the use of the Premises,
                  the undersigned has not used or stored any hazardous
                  substances in the Premises.

         (l)      All tenant improvement work to be performed by Landlord under
                  the Lease has been completed in accordance with the Lease and
                  has been accepted by the undersigned and all reimbursements
                  and allowances due to the undersigned under the Lease in
                  connection with any tenant improvement work have been paid in
                  full.

                  Tenant acknowledges that this Estoppel Certificate may be
delivered to Landlord, Landlord's Mortgagee or to a prospective mortgagee or
prospective purchaser, and their respective successors and assigns, and
acknowledges that Landlord, Landlord's Mortgagee and/or such prospective
mortgagee or prospective purchaser will be relying upon the statements contained
herein in disbursing loan advances or making a new loan or acquiring the
property of which the Premises are a part and that receipt by it of this
certificate is a condition of disbursing loan advances or making such loan or
acquiring such property.

         Executed as of ________________, 200_.

         TENANT:                                    eRESEARCHTECHNOLOGY, INC.,

                                       I-2

<PAGE>
                                            a Delaware corporation

                                            By:_________________________________
                                            Name:_______________________________
                                            Title:______________________________

                                       I-3

<PAGE>

                                    EXHIBIT J

                              Intentionally Omitted

                                       J-1

<PAGE>

                                   EXHIBIT K

                             Intentionally Omitted

                                       K-1

<PAGE>

                                    EXHIBIT L

                              Intentionally Omitted

                                       L-1

<PAGE>

                                    EXHIBIT M

                              Intentionally Omitted

                                       M-1

<PAGE>

                                    EXHIBIT N

                              Intentionally Omitted

                                       N-1

<PAGE>

                                    EXHIBIT O

                                     SIGNAGE

                  The Landlord shall provide, at its sole expense, directory
signage at the main lobby, and a directory on upper floors as required.

                  On or before the date which is thirty (30) days following the
Date of this Lease, Tenant shall engage a consultant to design a sign on behalf
of Tenant to be erected on the third floor on the side of the Building
designated by Landlord. Landlord shall have the right to review and approve the
design (which approval shall not be unreasonably withheld, delayed or
conditioned). The sign shall be designed, constructed and installed in
accordance with all Laws. Landlord's approval of the design therefor shall not
be a representation that the design complies with any Law.

                  All costs incurred by Landlord in connection with the sign,
including design, construction, approvals, installation, and removal shall be
paid by Tenant. The obligation to pay removal costs shall survive the
termination or expiration of this Lease.

                                       O-1

<PAGE>

                                    EXHIBIT P

                       Estimated Annual Operating Expenses
                           Advance at Bridgewater III

                                  ITEM                      $ per Square Feet
-------------------------------------------------------------------------------
      Electric                                                    1.25
-------------------------------------------------------------------------------
      Gas                                                         0.15
-------------------------------------------------------------------------------
      Sewer/Water                                                 0.12
-------------------------------------------------------------------------------
      Telephone Expenses                                          0.03
-------------------------------------------------------------------------------
      Janitorial (Contract & Supplies)                            0.79
-------------------------------------------------------------------------------
      Porter                                                      0.15
-------------------------------------------------------------------------------
      Window Cleaning                                             0.03
-------------------------------------------------------------------------------
      Exterminating                                               0.01
-------------------------------------------------------------------------------
      HVAC Repairs & Maintenance                                  0.09
-------------------------------------------------------------------------------
      Electrical Repairs & Supplies                               0.02
-------------------------------------------------------------------------------
      Interior Repairs                                            0.02
-------------------------------------------------------------------------------
      Security/Fire/Life Safety                                   0.04
-------------------------------------------------------------------------------
      Elevators                                                   0.06
-------------------------------------------------------------------------------
      Snow Removal                                                0.15
-------------------------------------------------------------------------------
      Landscaping                                                 0.19
-------------------------------------------------------------------------------
      Roof Maintenance                                            0.01
-------------------------------------------------------------------------------
      R&M - Other                                                 0.08
-------------------------------------------------------------------------------
      Trash Removal                                               0.09
-------------------------------------------------------------------------------
      Management Fee                                              0.55
-------------------------------------------------------------------------------
      Insurance                                                   0.09
-------------------------------------------------------------------------------
      Equipment Lease                                             0.10
-------------------------------------------------------------------------------
      On-Site Expense                                             0.03
-------------------------------------------------------------------------------
      Property Manager/Admin. Payroll                             0.20
-------------------------------------------------------------------------------
      R&M Payroll                                                 0.30
-------------------------------------------------------------------------------
      Real Estate Taxes                                           2.25
-------------------------------------------------------------------------------
      Total                                                       6.99
-------------------------------------------------------------------------------

                                       P-1

<PAGE>

                                    EXHIBIT Q

                           OPERATING COSTS EXCLUSIONS

     1. Capital expenditures made to the Building or the Park, including
        building structure, foundations, roof deck and any expansion of the
        Building, its systems or parking lot, and any costs incurred as a result
        of any regulations not related to Tenant's occupancy of the Premises but
        not excluding capital improvements described and permitted in paragraph
        4(b)(1) of the Lease.

     2. Repair, replacements and general maintenance paid by proceeds of
        insurance or by Tenant or other third parties.

     3. Interest, amortization or other payments on loans made to Landlord.

     4. Depreciation.

     5. Leasing commissions.

     6. Legal expenses for services, other than those that benefit the Building
        tenants generally (e.g., tax disputes and negotiation of leases with
        tenants).

     7. Renovating or otherwise improving space for occupants of the Building or
        vacant space in the Building.

     8. Federal income taxes imposed on or measured by the income of Landlord
        from the operation of the Building.

     9. Any costs covered by manufacturer's warranties and guaranties then in
        effect.

                                       P-2

<PAGE>
                                    EXHIBIT R

                              LANDLORD'S INSURANCE

          Landlord shall maintain commercial insurance on the Building
throughout the Term in amounts that are commercially reasonable by comparison to
the amounts and coverage carried by landlords for similar buildings in the
county wherein the Building is located as follows:

         1. Commercial property insurance - replacement cost (full replacement
            value)

         2. Statutory workers comp insurance

         3. Lose of rental income insurance

         4. Auto insurance

         5. Commercial general liability insurance

         6. Flood if appropriate

         7. Earthquake

         8. Other insurance as deemed appropriate and commercially reasonable
            by Landlord.

         Landlord shall have the right to increase the amounts of coverage and
add additional types of coverage provided the amounts and coverage are
commercially reasonable by comparison to the amounts and coverage carried for
similar buildings in the county wherein the Building is located by a
commercially reasonable landlord.

                                       R-1

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