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                                                                    Exhibit 10.3

                              AMENDED AND RESTATED
                     EMPLOYMENT AND NONCOMPETITION AGREEMENT

         This AMENDED AND RESTATED EMPLOYMENT AND NONCOMPETITION AGREEMENT
("Agreement") is made as of the ____ day of ________, 1998 ("Executive") and SL
Green Realty Corp., a Maryland corporation with its principal place of business
at 70 West 36th Street, New York, New York 10018 (the "Employer"), and amends
and completely restates the Employment and Noncompetition Agreement made as of
the day of , 1997.

         1. TERM. The term of this Agreement shall commence on the day of , 1998
and, unless earlier terminated as provided herein, shall terminate on the third
anniversary of such date (the "Current Term"); PROVIDED, HOWEVER, that Section 8
hereof shall survive the termination of this Agreement as provided therein. The
Current Term shall automatically be extended for successive one-year periods
(each a "Renewal Term"), unless either party shall notify the other in writing
at least six (6) months prior to the expiration of the Current Term or the
applicable Renewal Term of its intention not to renew such Term. The period of
Executive's employment hereunder consisting of the Current Term and all Renewal
Terms, if any, is herein referred to as the "Employment Period".

         2.       EMPLOYMENT AND DUTIES.

                  (a) DUTIES. During the Employment Period, Executive shall be
                  employed in the business of the Employer and its affiliates.
                  Executive shall serve the Employer as a senior corporate
                  executive with the title Executive Vice President and General
                  Counsel of the Employer. Executive's duties and authority
                  shall be as set forth in the By-laws of the Employer and as
                  otherwise established from time to time by the Board of
                  Directors of the Employer, and shall be commensurate with his
                  titles and positions with the Employer.

                  (b) BEST EFFORTS. Executive agrees to his employment as
                  described in this Section 2 and agrees to devote substantially
                  all of his business time and efforts to the performance of his
                  duties under this Agreement, except as otherwise approved by
                  the Board of Directors of the Employer; PROVIDED, HOWEVER,
                  that nothing herein shall be interpreted to preclude Executive
                  from (i) participating as an officer or director of, or
                  advisor to, any charitable or other tax exempt organization or
                  otherwise engaging in charitable, fraternal or trade group
                  activities, (ii) acting as an officer of any subsidiary of the
                  Company, or (iii) investing his assets as a passive investor
                  in other entities or business ventures, provided that he
                  performs no management or similar role with respect to such
                  entities or ventures and such investment does not violate
                  Section 8 hereof.

                  (c) TRAVEL. In performing his duties hereunder, Executive
                  shall be available for all reasonable travel as the needs of
                  the Employer's business may require. Executive shall be based
                  in the metropolitan area of New York City.

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         3. COMPENSATION AND BENEFITS. In consideration of Executive's services
hereunder, the Employer shall compensate Executive as provided in this Section
3.

                  (a) BASE SALARY. The Employer shall pay Executive an aggregate
                  annual salary at the rate of $ ($ , effective , 1999) during
                  the Employment Period ("Base Salary"), subject to applicable
                  withholding. Base Salary shall be payable in accordance with
                  the Employer's normal business practices, but in no event less
                  frequently than monthly. Executive's Base Salary shall be
                  reviewed no less frequently than annually by the Employer and
                  may be increased, but not decreased, by the Employer during
                  the Employment Period.

                  (b) INCENTIVE COMPENSATION. In addition to the Base Salary
                  payable to Executive pursuant to Section 3(a), during the
                  Employment Period, Executive shall be eligible to participate
                  in any incentive compensation plans in effect with respect to
                  senior executive officers of the Employer, subject to
                  Executive's compliance with such criteria as the Employer's
                  Board of Directors, in its sole discretion, may establish for
                  Executive's participation in such plans from time to time. Any
                  awards to Executive under such plans will be established by
                  the Employer's Board of Directors, or a committee thereof, in
                  its sole discretion.

                  (c) STOCK OPTIONS. During the Employment Period, Executive
                  shall be eligible to participate in employee stock option
                  plans established from time to time for the benefit of senior
                  executive officers and other employees of the Employer in
                  accordance with the terms and conditions of such plans. All
                  decisions regarding awards to Executive under the Employer's
                  stock option plans shall be made in the sole discretion of the
                  Employer's Board of Directors, or a committee thereof.

                  (d) EXPENSES. Executive shall be reimbursed for all reasonable
                  business related expenses incurred by Executive at the request
                  of or on behalf of the Employer, provided that such expenses
                  are incurred and accounted for in accordance with the policies
                  and procedures established by the Employer.

                  (e) MEDICAL INSURANCE. During the Employment Period, Executive
                  and Executive's immediate family shall be entitled to
                  participate in such medical benefit plan as the Employer shall
                  maintain from time to time for the benefit of senior executive
                  officers of the Employer and their families, on the terms and
                  subject to the conditions set forth in such plan. Nothing in
                  this section shall limit the Employer's right to change,
                  modify or terminate any benefit plan or program as it sees fit
                  from time to time in the normal course of business.

                  (f) VACATIONS. Executive shall be entitled to reasonable paid
                  vacations in accordance with the then regular procedures of
                  the Employer governing senior executive officers.

                  (g) OTHER BENEFITS. During the Employment Period, the Employer
                  shall provide to Executive such other benefits, including sick
                  leave and the right to

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                  participate in such retirement or pension plans, as are made
                  generally available to senior executive officers and employees
                  of the Employer from time to time.

         4. INDEMNIFICATION AND LIABILITY INSURANCE. The Employer agrees to
indemnify Executive to the extent permitted by applicable law with respect to
any actions commenced against Executive in his capacity as an officer or
director, or former officer or director, of the Employer or any affiliate
thereof for which he may serve in such capacity. The Employer also agrees to use
its best efforts to secure and maintain officers and directors liability
insurance providing coverage for Executive.

         5. EMPLOYER'S POLICIES. Executive agrees to observe and comply with the
rules and regulations of the Employer as adopted by its Board of Directors from
time to time regarding the performance of his duties and to carry out and
perform orders, directions and policies communicated to him from time to time by
the Employer's Board of Directors.

         6. TERMINATION. The Executive's employment hereunder may be terminated
under the following circumstances:

                  (a) TERMINATION BY THE EMPLOYER.

                        (i) DEATH. The Executive's employment hereunder shall
                  terminate upon his death.

                        (ii) DISABILITY. If, in the reasonable good faith
                  determination of the Board of Directors, as a result of the
                  Executive's incapacity due to physical or mental illness or
                  disability, the Executive shall have been incapable of
                  performing his duties hereunder even with a reasonable
                  accommodation on a full-time basis for the entire period of
                  three consecutive months or any 90 days in a 180-day period,
                  and within 30 days after written Notice of Termination (as
                  defined in Section 6(c)) is given he shall not have returned
                  to the performance of his duties hereunder on a full-time
                  basis, the Employer may terminate the Executive's employment
                  hereunder.

                        (iii) CAUSE. The Employer may terminate the Executive's
                  employment hereunder for Cause, subject to the severance
                  provisions specifically set forth in Section 7(b) and the
                  arbitration provisions specifically set forth in Section 7(e).
                  For purposes of the Agreement, "Cause" shall mean that the
                  Board of Directors of the Employer concludes, in good faith
                  and after reasonable investigation, that:

                              (A) the Executive engaged in conduct which is a
                        felony under the laws of the United States or any state
                        or political subdivision thereof;

                              (B) the Executive engaged in conduct constituting
                        breach of fiduciary duty, gross negligence or willful
                        misconduct relating to the Employer, fraud or dishonesty
                        or willful or material misrepresentation relating to the
                        business of the Employer;

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                              (C) the Executive breached his obligations or
                        covenants under Section 8 of this Agreement in any
                        material respect; or

                              (D) the Executive failed to perform his duties
                        hereunder in a manner and at a level reasonably
                        satisfactory to the Employer more than 15 days after
                        receiving notice from the Employer, which notice
                        specifically identifies the manner in which he has
                        failed so to perform.

                        (iv) WITHOUT CAUSE. Executive's employment hereunder may
                  be terminated by the Employer at any time with or without
                  Cause (as defined in Section 6(a)(iii) above), by a majority
                  vote of all of the members of the Board of Directors of the
                  Employer upon written notice to Executive, subject only to the
                  severance provisions specifically set forth in Section 7(a)
                  herein.

                  (b)   TERMINATION BY THE EXECUTIVE.

                        (i) DISABILITY. The Executive may terminate his
                  employment hereunder for Disability within the meaning of
                  Section 6(a)(ii) above.

                        (ii) WITH GOOD REASON. Executive's employment hereunder
                  may be terminated by Executive with Good Reason effective
                  immediately by written notice to the Board of Directors of the
                  Employer. For purposes of this Agreement, with "Good Reason"
                  shall mean: (i) a failure of the Board of Directors of the
                  Employer to elect Executive to offices with the same or
                  substantially the same duties and responsibilities as set
                  forth in Section 2; (ii) a material failure by the Employer to
                  comply with the provisions of Section 3 or a material breach
                  by the Employer of any other provision of this Agreement which
                  has not been cured within thirty (30) days after notice of
                  noncompliance, (specifying the nature of the noncompliance)
                  has been given by the Executive to the Employer; or (iii) a
                  Force Out (as such term is defined in Section 6(d) below).
                  Notwithstanding any provision of this Agreement to the
                  contrary, with "Good Reason" shall not include any assignment
                  of Executive to a position or office that has new or different
                  duties, provided that such position or office is principally
                  related to the provision of legal services, has a
                  substantially similar level of responsibility to Executive's
                  immediately preceding position or office and is commensurate
                  with Executive's education, skills and experience.

                  (c) NOTICE OF TERMINATION. Any termination of the Executive's
                  employment by the Employer or by the Executive (other than
                  termination pursuant to subsection (a)(1) hereof) shall be
                  communicated by written Notice of Termination to the other
                  party hereto in accordance with Section 11 of this Agreement.
                  For purposes of this Agreement, a "Notice of Termination"
                  shall mean a notice which shall indicate the specific
                  termination provision in this Agreement relied upon and, as
                  applicable, shall set forth in reasonable detail the fact and
                  circumstances claimed to provide a basis for termination of
                  the Executive's employment under the provision so indicated.

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                  (d) DEFINITIONS. The following terms shall be defined as set
                  forth below.

                        (i) A "Change-in-Control" shall be deemed to have
                  occurred after the effective date of the initial public
                  offering of the Employer's Common Stock ("IPO") if:

                              (A) any Person, together with all "affiliates" and
                        "associates" (as such terms are defined in Rule 12b-2
                        under the Securities Exchange Act of 1934 (the "Exchange
                        Act")) of such Person, shall become the "beneficial
                        owner" (as such term is defined in Rule 13d-3 under the
                        Exchange Act), directly or indirectly, of securities of
                        the Employer representing 40% or more of either (A) the
                        combined voting power of the Employer's then outstanding
                        securities having the right to vote in an election of
                        the Employer's Board of Directors ("Voting Securities")
                        or (B) the then outstanding shares of all classes of
                        stock of the Employer (in either such case other than as
                        a result of the acquisition of securities directly from
                        the Employer); or

                              (B) individuals who, as of the date of the closing
                        of the IPO, constitute the Employer's Board of Directors
                        (the "Incumbent Directors") cease for any reason,
                        including, without limitation, as a result of a tender
                        offer, proxy contest, merger or similar transaction, to
                        constitute at least a majority of the Employer's Board
                        of Directors, provided that any person becoming a
                        director of the Employer subsequent to the closing of
                        the IPO whose election or nomination for election was
                        approved by a vote of at least a majority of the
                        Incumbent Directors shall, for purposes of this
                        Agreement, be considered an Incumbent Director; or

                              (C) the stockholders of the Employer shall approve
                        (1) any consolidation or merger of the Employer or any
                        subsidiary where the stockholders of the Employer,
                        immediately prior to the consolidation or merger, would
                        not, immediately after the consolidation or merger,
                        beneficially own (as such term is defined in Rule 13d-3
                        under the Exchange Act), directly or indirectly, shares
                        representing in the aggregate at least 50% of the voting
                        shares of the corporation issuing cash or securities in
                        the consolidation or merger (or of its ultimate parent
                        corporation, if any), (2) any sale, lease, exchange or
                        other transfer (in one transaction or a series of
                        transactions contemplated or arranged by any party as a
                        single plan) of all or substantially all of the assets
                        of the Employer or (3) any plan or proposal for the
                        liquidation or dissolution of the Employer;

                        Notwithstanding the foregoing, a "Change-in-Control"
                  shall not be deemed to have occurred for purposes of the
                  foregoing clause (A) solely as the result of an acquisition of
                  securities by the Employer which, by reducing the number of
                  shares of stock or other Voting Securities outstanding,
                  increases (x) the proportionate number of shares of stock of
                  the Employer beneficially owned by any Person to 40% or more
                  of the shares of stock then outstanding or (y) the
                  proportionate voting power represented by the Voting
                  Securities beneficially owned by

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                  any Person to 40% or more of the combined voting power of all
                  then outstanding Voting Securities; PROVIDED, HOWEVER, that if
                  any Person referred to in clause (x) or (y) of this sentence
                  shall thereafter become the beneficial owner of any additional
                  stock of the Employer or other Voting Securities (other than
                  pursuant to a share split, stock dividend, or similar
                  transaction), then a "Change-in-Control" shall be deemed to
                  have occurred for purposes of the foregoing clause (A). In
                  addition, notwithstanding the foregoing, a "Change-in-Control"
                  shall not be deemed to have occurred for purposes of the
                  foregoing clause (A) if (i) Stephen L. Green continues to
                  serve as Chief Executive Officer or the equivalent of any
                  surviving entity, and (ii) the proportionate number of shares
                  of stock of the Employer beneficially owned, or the
                  proportionate voting power represented by the Voting
                  Securities beneficially owned, by any Person described in such
                  clause (A) does not exceed 49%.

                        (ii) A "Force Out" shall be deemed to have occurred in
                  the event of a Change-In-Control followed by:

                              (A) a change in duties, responsibilities, status
                        or positions with the Employer, which, in Executive's
                        reasonable judgment, does not represent a promotion from
                        or maintaining of Executive's duties, responsibilities,
                        status or positions as in effect immediately prior to
                        the Change-In-Control, or any removal of Executive from
                        or any failure to reappoint or reelect Executive to such
                        positions, except in connection with the termination of
                        Executive's employment for Cause, disability, retirement
                        or death;

                              (B) a reduction by the Employer in Executive's
                        Base Salary as in effect immediately prior to the
                        Change-In-Control;

                              (C) the failure by the Employer to continue in
                        effect any of the benefit plans in which Executive is
                        participating at the time of the Change-In-Control of
                        the Employer (unless Executive is permitted to
                        participate in any substitute benefit plan with
                        substantially the same terms and to the same extent and
                        with the same rights as Executive had with respect to
                        the benefit plan that is discontinued) other than as a
                        result of the normal expiration of any such benefit plan
                        in accordance with its terms as in effect at the time of
                        the Change-In-Control, or the taking of any action, or
                        the failure to act, by the Employer which would
                        adversely affect Executive's continued participation in
                        any of such benefit plans on at least as favorable a
                        basis to Executive as was the case on the date of the
                        Change-In-Control or which would materially reduce
                        Executive's benefits in the future under any of such
                        benefit plans or deprive Executive of any material
                        benefits enjoyed by Executive at the time of the
                        Change-In-Control; PROVIDED, HOWEVER, that any such
                        action or inaction on the part of the Employer,
                        including any modification, cancellation or

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                        termination of any benefits plan, undertaken in order to
                        maintain such plan in compliance with any federal, state
                        or local law or regulation governing benefits plans,
                        including, but not limited to, the Employment Retirement
                        Income Security Act of 1974, shall not constitute a
                        Force Out for the purposes of this Agreement.

                              (D) the Employer's requiring Executive to be based
                        in an office located beyond a reasonable commuting
                        distance from Executive's residence immediately prior to
                        the Change-In-Control, except for required travel
                        relating to the Employer's business to an extent
                        substantially consistent with the business travel
                        obligations which Executive undertook on behalf of the
                        Employer prior to the Change-In-Control; or

                              (E) the failure by the Employer to obtain from any
                        successor to the Employer an agreement to be bound by
                        this Agreement pursuant to Section 14 hereof.

                        (iii) "Person" shall have the meaning used in Sections
                  13(d) and 14(d) of the Exchange Act; provided however, that
                  the term "Person" shall not include (A) any current partner of
                  SL Green Operating Partnership, L.P., any stockholder or
                  employee of the Employer on the date hereof or any estate or
                  member of the immediate family of such a partner, stockholder
                  or employee, or (B) the Employer, any of its subsidiaries, or
                  any trustee, fiduciary or other person or entity holding
                  securities under any employee benefit plan of the Employer or
                  any of its subsidiaries.

            7.    COMPENSATION UPON TERMINATION OR DURING DISABILITY.

                  (a) TERMINATION WITHOUT CAUSE OR WITH GOOD REASON. If (i)
                  Executive is terminated without Cause pursuant to Section
                  6(a)(iv) above, or (ii) Executive shall terminate his
                  employment hereunder with Good Reason pursuant to Section
                  (6)(b)(ii) above, then the Employment Period shall terminate
                  as of the effective date set forth in the written notice of
                  such termination (the "Termination Date") and Executive shall
                  be entitled to the following benefits:

                        (i) The Employer shall continue to pay Executive's Base
                  Salary for the remaining term of the Employment Period after
                  the date of Executive's termination, or, if such termination
                  occurs in connection with or after a Change-in-Control, for
                  three years, whichever period is longer, at the rate in effect
                  on the date of his termination and on the same periodic
                  payment dates as payment would have been made to Executive had
                  the Employment Period not been terminated;

                        (ii) For the remaining term of the Employment Period,
                  or, if such termination occurs in connection with or after a
                  Change-in-Control, for three years, whichever period is
                  longer, Executive shall continue to receive all benefits
                  described in Section 3 existing on the date of termination,
                  including, but not limited to, any bonuses and incentive
                  compensation described in Section 3 of this

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                  Agreement, subject to the terms and conditions upon which such
                  benefits may be offered. For purposes of the application of
                  such benefits, Executive shall be treated as if he had
                  remained in the employ of the Employer with a Base Salary at
                  the rate in effect on the date of termination;

                           (iii) For purposes of any stock option plan of the
                  Employer, (x) Executive shall be treated as if he had remained
                  in the employ of the Employer for the remaining term of the
                  Employment Period after the date of Executive's termination,
                  or for one year, whichever period is longer, so that Executive
                  may exercise any exercisable options and Executive's other
                  rights shall continue to vest during the remaining term of the
                  Employment Period with respect to any options previously
                  granted under such plans, except as otherwise provided in such
                  plans, and (y) if such termination occurs in connection with
                  or after a Change-in-Control, any stock options and any other
                  rights of Executive (including restricted stock awards) shall
                  become fully vested and immediately exercisable upon such
                  termination;

                           (iv) Nothing herein shall be deemed to obligate
                  Executive to seek other employment in the event of any such
                  termination and any amounts earned or benefits received from
                  such other employment will not serve to reduce in any way the
                  amounts and benefits payable in accordance herewith; and

                           (v) If in the opinion of tax counsel selected by the
                  Executive and reasonably acceptable to the Employer, the
                  Executive has or will receive any compensation or recognize
                  any income (whether or not pursuant to this Agreement or any
                  plan or other arrangement of the Employer and whether or not
                  the Employment Period or the Executive's employment with the
                  Employer has terminated) which will constitute an "excess
                  parachute payment" within the meaning of Section 280G(b)(1) of
                  the Internal Revenue Code (the "Code") (or for which a tax is
                  otherwise payable under Section 4999 of the Code or any
                  successor provision thereto), then the Employer shall pay the
                  Executive an additional amount (the "Additional Amount") equal
                  to the sum of (i) all taxes payable by the Executive under
                  Section 4999 of the Code with respect to all such excess
                  parachute payments and any such Additional Amount, plus (ii)
                  all federal, state and local income taxes payable by Executive
                  with respect to any such Additional Amount. Any amounts
                  payable pursuant to this paragraph (v) shall be paid by the
                  Employer to the Executive within 30 days of each written
                  request therefor made by the Executive.

                  (b) TERMINATION FOR CAUSE OR WITHOUT GOOD REASON. If Executive
                  is terminated for Cause pursuant to Section 6(a)(iii) above,
                  or if Executive voluntarily terminates his employment
                  hereunder without Good Reason pursuant to Section 6(b)(ii)
                  above, then the Employment Period shall terminate as of the
                  effective date set forth in the written notice of such
                  termination (the "Termination Date") and any outstanding stock
                  options held by Executive shall expire in accordance with the
                  terms of the stock option plan or option agreement under

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                  which the stock options were granted. Executive shall be
                  entitled to receive the following benefits:

                           (i) If (A) Executive is terminated for Cause pursuant
                  to Section 6(a)(iii)(A), (B) or (C) above (regardless of
                  whether he submits a claim of lack of Cause to arbitration
                  pursuant to Section 7(e) herein), (B) Executive is terminated
                  for Cause pursuant to Section 6(a)(iii)(D) above and does not
                  submit a claim of lack of Cause to arbitration pursuant to
                  Section 7(e) herein, or (C) Executive voluntarily terminates
                  his employment hereunder without Good Reason pursuant to
                  Section 6(b)(ii) above, then Executive shall be entitled to
                  receive only his Base Salary at the rate then in effect until
                  the Termination Date.

                           (ii) If Executive is terminated for Cause pursuant to
                  Section 6(a)(iii)(D) above and submits a claim of lack of
                  Cause to arbitration pursuant to Section 7(e) herein, then,
                  subject to Executive's repayment obligation under Section
                  7(e)(ii)(B):

                                    (A) Executive shall be entitled to receive
                           his Base Salary at the rate then in effect until the
                           earlier of either the date six months after the
                           Termination Date or the date of the arbitrator's
                           final determination.

                                    (B) The Employer shall, upon Executive's
                           submission of appropriate invoices, promptly pay up
                           to the first $25,000 of such Executive's costs of
                           arbitration and attorney's fees until the earlier of
                           either the date of the arbitrator's final
                           determination or the date on which the Executive's
                           costs of arbitration and attorney's fees equal or
                           exceed $25,000.

                  (c) TERMINATION BY REASON OF DEATH. If Executive's employment
                  terminates due to his death, the Employer shall pay
                  Executive's Base Salary for a period of six months from the
                  date of his death, or such longer period as the Employer's
                  Board of Directors may determine, to Executive's estate or to
                  a beneficiary designated by Executive in writing prior to his
                  death. Any unexercised or unvested stock options shall remain
                  exercisable or vest upon Executive's death only to the extent
                  provided in the applicable option plan and option agreements.

                  (d) TERMINATION BY REASON OF DISABILITY. In the event that
                  Executive's employment terminates due to his disability as
                  defined in Section 6(a)(ii) above, Executive shall be entitled
                  to be paid his Base Salary until the later of such time when
                  (i) the period of disability or illness (whether or not the
                  same disability or illness) shall exceed 180 consecutive days
                  during the Employment Period and (ii) Executive becomes
                  eligible to receive benefits under a comprehensive disability
                  insurance policy obtained by the Employer (the "Disability
                  Period"). Following the expiration of the Disability Period,
                  the Employer may terminate this Agreement upon written notice
                  of such termination. Any unexercised or unvested stock options
                  shall remain exercisable or vest upon such termination only to
                  the extent provided in the applicable option plan and option
                  agreements.

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                  (e) ARBITRATION IN THE EVENT OF A DISPUTE REGARDING THE NATURE
                  OF TERMINATION. In the event that the Executive's employment
                  is terminated by the Employer for Cause or by Executive for
                  Good Reason, and either party contends that such Cause or Good
                  Reason did not exist, the parties agree to submit such claim
                  to arbitration before the American Arbitration Association
                  ("AAA"), and Executive hereby agrees to submit to any such
                  dispute to arbitration pursuant to the terms of this Section
                  7(e). In such a proceeding, the only issue before the
                  arbitrator will be whether Executive's employment was in fact
                  terminated for Cause or for Good Reason, as the case may be.

                           (i) AWARDS IN FAVOR OF THE EXECUTIVE. If the
                  arbitrator determines that Executive's employment was
                  terminated by the Employer without Cause or was terminated by
                  Executive for Good Reason, the only remedy that the arbitrator
                  may award is an amount equal to the severance payments
                  specified in Section 7(a), the costs of arbitration, and
                  Executive's attorneys' fees. In cases where an award is
                  granted to an Executive who was terminated for Cause pursuant
                  to Section 6(a)(iii)(D) above, such arbitration award shall be
                  reduced by the amount of Base Salary, costs of arbitration and
                  attorney's fees already paid by the Employer pursuant to
                  Section 7(b)(ii) above.

                           (ii)     AWARDS IN FAVOR OF THE EMPLOYER.

                                    (A) If the arbitrator finds that Executive's
                           employment was terminated by the Employer for Cause
                           pursuant to Section 6(a)(iii)(A), (B), (C) or (D)
                           above, or by the Executive without Good Reason, the
                           arbitrator will be without authority to award
                           Executive anything, the parties will each be
                           responsible for their own attorneys' fees, and the
                           costs of arbitration will be paid 50% by Executive
                           and 50% by the Employer.

                                    (B) In addition, if the arbitrator finds
                           that the Executive's employment was terminated for
                           Cause pursuant to Section 6(a)(iii)(D) above,
                           Executive must promptly reimburse the Employer for
                           the full amount of any Base Salary paid by the
                           Employer with respect to periods after the
                           Termination Date, the full amount of any attorney's
                           fees paid by the Employer, and 50% any costs of
                           arbitration paid by the Employer on behalf of the
                           Executive pursuant to Section 7(b)(ii) above.

         8. CONFIDENTIALITY; PROHIBITED ACTIVITIES. The Executive and the
Employer recognize that due to the nature of his employment and relationship
with the Employer, the Executive has access to and develops confidential
business information, proprietary information, and trade secrets relating to the
business and operations of the Employer. The Executive acknowledges that such
information is valuable to the business of the Employer, and that disclosure to,
or use for the benefit of, any person or entity other than the Employer, would
cause irreparable damage to the Employer. The Executive further acknowledges
that his duties for the Employer include the duty to develop and maintain
client, customer, employee, and other business relationships on behalf of the
Employer; and that access to and development of those close business
relationships for the Employer render his services special, unique and
extraordinary. In recognition that the

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good will and business relationships described herein are valuable to the
Employer, and that loss of or damage to those relationships would destroy or
diminish the value of the Employer, the Executive agrees as follows:

                  (a) CONFIDENTIALITY. During the term of this Agreement
                  (including any renewals), and at all times thereafter, the
                  Executive shall maintain the confidentiality of all
                  confidential or proprietary information of the Employer
                  ("Confidential Information"), and, except in furtherance of
                  the business of the Employer, he shall not directly or
                  indirectly disclose any such information to any person or
                  entity; nor shall he use Confidential Information for any
                  purpose except for the benefit of the Employer. For purposes
                  of the Agreement, "Confidential Information" includes, without
                  limitation: client or customer lists, identities, contacts,
                  business and financial information; investment strategies;
                  pricing information or policies, fees or commission
                  arrangements of the Employer; marketing plans, projections,
                  presentations or strategies of the Employer; financial and
                  budget information of the Employer; new personnel acquisition
                  plans; and all other business related information which has
                  not been publicly disclosed by the Employer. This restriction
                  shall apply regardless of whether such Confidential
                  Information is in written, graphic, recorded, photographic,
                  data or any machine readable form or is orally conveyed to, or
                  memorized by, the Executive. The Executive further agrees
                  that, during the Employment Period and at all times
                  thereafter, he shall keep confidential and shall not release,
                  use or disclose without prior written permission of the
                  Employer, all Confidential Information developed by him on
                  behalf of the Employer or provided to him by the Employer,
                  excepting only such information as was already known to him
                  prior to the commencement of his employment by the Employer or
                  such information as is already known to the public.

                  (b) PROHIBITED ACTIVITIES. Because Executive's services to the
                  Employer are essential and because Executive has access to the
                  Employer's Confidential Information, Executive covenants and
                  agrees that (i) during the Employment Period, (ii) in the
                  event that this Agreement is terminated by the Employer for
                  Cause or by the Executive other than for Good Reason, during
                  the one-year period following the date of such termination,
                  and (iii) solely for purposes of paragraph (vi) below, during
                  the five-year period following the date on which Executive's
                  employment terminates for any reason, Executive will not,
                  without the prior written consent of the Board of Directors of
                  the Employer which shall include the unanimous consent of the
                  Directors who are not officers of the Employer, directly or
                  indirectly (individually, or through or on behalf of another
                  entity as owner, partner, agent, employee, consultant, or in
                  any other capacity):

                           (i) engage, participate or assist, as an owner,
                  partner, employee, consultant, director, officer, trustee or
                  agent, in any business that engages or attempts to engage,
                  directly or indirectly, in any material acquisition,
                  development, construction, operation, management or leasing of
                  any commercial real estate property:

                                       11
<PAGE>

                                    (A) anywhere in the five boroughs of New
                           York City, regardless of whether such business is
                           publicly or privately held;

                                    (B) anywhere in the New York City
                           metropolitan area, if such business or any of its
                           affiliates (within the meaning of the Securities Act
                           of 1933) has issued any class of publicly-traded
                           securities;

                                    (C) anywhere in the New York City
                           metropolitan area, regardless of whether such
                           business is publicly or privately held, if such
                           business engages in the commercial real estate
                           business in any county in which the Employer also
                           engages in the commercial real estate business.

                           For purposes of this subsection, the New York City
                  metropolitan area includes each borough of New York City;
                  Nassau, Orange, Putnam, Rockland, Suffolk and Westchester
                  Counties in the State of New York; Bergen, Essex, Hudson,
                  Hunterdon, Mercer, Middlesex, Monmouth, Morris, Passaic,
                  Somerset, Sussex, Union and Warren Counties in the State of
                  New Jersey; and Fairfield County in the State of Connecticut);

                           (ii) seek, solicit, or engage in any attempt to
                  establish for himself or for any other person or entity, a
                  business relationship with any person or entity who was a
                  client or customer of the Employer, or who was solicited to
                  become a client or customer of the Employer, during the
                  Employment Period ("Employer Clients");

                           (iii) engage in any activity to interfere with,
                  disrupt or damage the business of the Employer, or its
                  relationships with any Employer Client, employee, supplier or
                  other business relationship;

                           (iv) engage in business with, or provide advice or
                  services to, any Employer Client solicited by the Executive in
                  breach of Section 8 of this Agreement (whether or not such
                  services are compensated);

                           (v) receive, or cause any other person or entity to
                  receive, any compensation, consideration, or income, in any
                  form, from any Employer Client solicited by him in breach of
                  Section 8 of this Agreement; or

                           (vi) solicit, encourage, or engage in any activity to
                  induce any Employee of the Employer to terminate employment
                  with the Employer, or to become employed by, or to enter into
                  a business relationship with, any other person or entity. For
                  purposes of this subsection, the term Employee means any
                  individual who is an employee of or consultant to the Employer
                  (or any affiliate) during the six-month period prior to
                  Executive's last day of employment.

                           Notwithstanding any of the foregoing, Executive shall
                  not be prohibited from engaging in the practice of law with,
                  for or on behalf of any person or entity as a partner, agent,
                  employee, consultant, or in any other capacity.

                                       12
<PAGE>

                  (c) OPTION PROPERTY. Notwithstanding anything contained herein
                  to the contrary, Executive is not prohibited by this Section 8
                  from (i) maintaining his or her investment in any Option
                  Property (as such term is defined in the Employer's final
                  prospectus relating to the IPO) or in any asset listed in the
                  Employer's final prospectus relating to the IPO under the
                  caption "The Properties - Assets Not Being Transferred to the
                  Company" or (ii) from making investments in any entity that
                  engages, directly or indirectly, in the acquisition,
                  development, construction, operation, management or leasing of
                  office real estate properties, regardless of where they are
                  located, if the shares or other ownership interests of such
                  entity are publicly traded and Executive's aggregate
                  investment in such entity constitutes less than one percent
                  (1%) of the equity ownership of such entity.

                  (d) EMPLOYER PROPERTY. The Executive acknowledges that all
                  originals and copies of materials, records and documents
                  generated by him or coming into his possession during his
                  employment by the Employer are the sole property of the
                  Employer ("Employer Property"). During his employment, and at
                  all times thereafter, the Executive shall not remove, or cause
                  to be removed, from the premises of the Employer, copies of
                  any record, file, memorandum, document, computer related
                  information or equipment, or any other item relating to the
                  business of the Employer, except in furtherance of his duties
                  under the Agreement. When the Executive terminates his
                  employment with the Employer, or upon request of the Employer
                  at any time, the Executive shall promptly deliver to the
                  Employer all originals and copies of Employer Property in his
                  possession or control and shall not retain any originals or
                  copies in any form.

                  (e) NO DISPARAGEMENT. Following termination of the Executive's
                  employment for any reason, the Executive shall not disclose or
                  cause to be disclosed any negative, adverse or derogatory
                  comments or information about (i) the Employer and its parent,
                  affiliates or subsidiaries, if any; (ii) any product or
                  service provided by the Employer and its parent, affiliates or
                  subsidiaries, if any; or (iii) the Employer's and its
                  parent's, affiliates' or subsidiaries' prospects for the
                  future.

                  (f) REMEDIES. The Executive declares that the foregoing
                  limitations in Sections 8(a) through 8(f) above are reasonable
                  and necessary for the adequate protection of the business and
                  the goodwill of the Employer. If any restriction contained in
                  this Section 8 shall be deemed to be invalid, illegal or
                  unenforceable by reason of the extent, duration or scope
                  thereof, or otherwise, then the court making such
                  determination shall have the right to reduce such extent,
                  duration, scope, or other provisions hereof to make the
                  restriction consistent with applicable law, and in its reduced
                  form such restriction shall then be enforceable in the manner
                  contemplated hereby. In the event that the Executive breaches
                  any of the promises contained in this Section 8, the Executive
                  acknowledges that the Employer's remedy at law for damages
                  will be inadequate and that the Employer will be entitled to
                  specific performance, a temporary restraining order or
                  preliminary injunction to prevent the Executive's prospective
                  or continuing breach and to maintain the status quo. The
                  existence of this right to injunctive

                                       13
<PAGE>

                  relief, or other equitable relief, or the Employer's exercise
                  of any of these rights, shall not limit any other rights or
                  remedies the Employer may have in law or in equity including,
                  without limitation, the right to arbitration contained in
                  Section 7(e) hereof and the right to compensatory, punitive
                  and monetary damages. In the event that a final non-appealable
                  judgment is entered in favor of one of the parties, that party
                  shall be reimbursed by the other party for all costs and
                  attorneys' fees incurred by such party in such action.
                  Executive hereby agrees to waive his right to a jury trial
                  with respect to any action commenced to enforce the terms of
                  this Agreement.

                  (g) TRANSITION. Regardless of the reason for his departure
                  from the Employer, the Executive agrees that: (i) he shall
                  assist the Employer in maintaining the business of the clients
                  and customers with whom the Executive has a relationship; and
                  (ii) he shall take all steps reasonably requested by the
                  Employer to effect a successful transition of those
                  relationships to the person or persons designated by the
                  Employer.

                  (h) SURVIVAL. The provisions of this Section 8 shall survive
                  termination of the Executive's employment. The covenants
                  contained in Section 8 shall be construed as independent of
                  any of other provisions contained in this Agreement and shall
                  be enforceable regardless of whether the Executive has a claim
                  against the Employer under the Agreement or otherwise.

         9. COOPERATION. The Executive agrees to give prompt written notice to
the Employer of any claim or injury relating to the Employer, and to fully
cooperate in good faith and to the best of his ability with the Employer in
connection with all pending, potential or future claims, investigations or
actions which directly or indirectly relate to any transaction, event or
activity about which the Executive may have knowledge because of his employment
with the Employer. Such cooperation shall include all assistance that the
Employer, its counsel, or its representatives may reasonably request, including
reviewing documents, meeting with counsel, providing factual information and
material, and appearing or testifying as a witness.

         10. CONFLICTING AGREEMENTS. Executive hereby represents and warrants
that the execution of this Agreement and the performance of his obligations
hereunder will not breach or be in conflict with any other agreement to which he
is a party or is bound, and that he is not now subject to any covenants against
competition or similar covenants which would affect the performance of his
obligations hereunder.

         11. NOTICES. All notices or other communications required or permitted
to be given hereunder shall be in writing and shall be delivered by hand and or
sent by prepaid telex, cable or other electronic devices or sent, postage
prepaid, by registered or certified mail or telecopy or overnight courier
service and shall be deemed given when so delivered by hand, telexed, cabled or
telecopied, or if mailed, three days after mailing (one business day in the case
of express mail or overnight courier service), as follows:

                  (a)      if to the Executive:

                                       14
<PAGE>

                           70 West 36th Street
                           New York, New York  10018

                  (b)      if to the Employer:

                           SL Green Realty Corp.
                           70 West 36th Street
                           New York, New York  10018

or such other address as either party may from time to time specify by written
notice to the other party hereto.

         12. AMENDMENTS. No amendment, modification or waiver in respect of this
Agreement shall be effective unless it shall be in writing and signed by the
party against whom such amendment, modification or waiver is sought.

         13. SEVERABILITY. If any provision of this Agreement (or any portion
thereof) or the application of any such provision (or any portion thereof) to
any person or circumstance shall be held invalid, illegal or unenforceable in
any respect by a court of competent jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other provision hereof (or the remaining
portion thereof) or the application of such provision to any other persons or
circumstances.

         14. SUCCESSORS. Neither this Agreement nor any rights hereunder may be
assigned or hypothecated by the Executive. This Agreement may be assigned by the
Employer and shall be binding upon, and inure to the benefit of, the Employer's
successors and assigns.

         15. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement, and
shall become effective when one or more such counterparts have been signed by
each of the parties and delivered to the other party.

         16. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York applicable to agreements made
and to be performed entirely within such State, without regard to the conflicts
of law principles of such State.

         17. CHOICE OF VENUE. Executive agrees to submit to the jurisdiction of
the United States District Court for the Southern District of New York or the
Supreme Court of the State of New York, New York County, for the purpose of any
action to enforce any of the terms of this Agreement.

         18. ENTIRE AGREEMENT. This Agreement contains the entire agreement and
understanding between the parties hereto with respect to the subject matter
hereof and supersedes all prior agreements and understandings relating to such
subject matter. The parties hereto shall not be liable or bound to any other
party in any manner by any representations, warranties or covenants relating to
such subject matter except as specifically set forth herein.

                                       15
<PAGE>

         19. PARAGRAPH HEADINGS. Paragraph headings used in this Agreement are
included for convenience of reference only and will not affect the meaning of
any provision of this agreement.

         IN WITNESS WHEREOF, this Agreement is entered into as of the date and
year first above written.

                              SL GREEN REALTY CORP.

                              By:________________________________
                                 Name:
                                 Title:

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

                                       16<PAGE>

Exhibit 10.21

Lease Agreement, dated July 1999, between the Company and ProLogis Limited
Partherships-I, a Delaware Limited Partnership, relating to the premises at
47436 Fremont Blvd., Fremont, California.

<PAGE>

                                 LEASE AGREEMENT

         THIS LEASE AGREEMENT is made this 22nd day of June, 1999 between
         ProLogis Limited Partnership-I, a Delaware Limited Partnership
         ("Landlord"), and the Tenant named below.

TENANT:                             Gatefield Corporation, a  Delaware
                                    Corporation

TENANT'S REPRESENTATIVE,            Jim Boyd
ADDRESS, AND PHONE NO.:             47100 Bayside Parkway
                                    Fremont, CA  94538

PREMISES:                           That portion of the Building, containing
                                    approximately 24,000 rentable square feet,
                                    as determined by Landlord and commonly known
                                    as 47436 Fremont Blvd., Fremont, CA as shown
                                    on Exhibit A.

PROJECT:                            Spinnaker III

BUILDING:                            Building B

TENANT'S PROPORTIONATE SHARE
OF PROJECT:                         15.58%

TENANT'S PROPORTIONATE SHARE        80.00%
OF BUILDING:

LEASE TERM:                         Beginning on the Commencement Date and
                                    ending on the last day of the 60th full
                                    calendar month thereafter.

COMMENCEMENT DATE:                  The later to occur of (i) Landlord's
                                    delivery of possession of the premises, or
                                    (ii) August 1, 1999

INITIAL MONTHLY BASE RENT:
                                    Twenty One Thousand Six Hundred
                                    dollars                              $21,600

INITIAL ESTIMATED MONTHLY           1. Common Area Charges:   $1,013
OPERATING EXPENSE PAYMENTS:
(estimates only and subject to      2. Taxes:                 $3,405
adjustment to actual costs and
expenses according to the           3. Insurance:             $60
provisions of this Lease)
                                    4. Management Fee:        $82

INITIAL ESTIMATED MONTHLY
OPERATING EXPENSE PAYMENTS:                                      $4,560

INITIAL MONTHLY BASE RENT AND
OPERATING EXPENSE PAYMENTS:                                              $26,160

SECURITY DEPOSIT:                   $25,000

BROKER:                             Jim Abarta, Colliers Parrish

ADDENDA:                            Addendum I, II, III, IV, V, VI, VII and
                                    VIII,   Exhibit A, B and C

         1. GRANTING CLAUSE. In consideration of the obligation of Tenant to pay
rent as herein provided and in consideration of the other terms, covenants, and
conditions hereof, Landlord leases to Tenant, and Tenant takes from Landlord,
the Premises, to have and to hold for the Lease Term, subject to the terms,
covenants and conditions of this Lease.

         2. ACCEPTANCE OF PREMISES. Tenant shall accept the Premises in its
condition as of the Commencement Date, subject to all applicable laws,
ordinances, regulations, covenants and restrictions. Landlord has made no
representation or warranty as to the suitability of the Premises for the conduct
of Tenant's business, and Tenant waives any implied warranty that the Premises
are suitable for Tenant's intended purposes. Except as provided in Paragraph 10,
in no event shall Landlord have any obligation for any defects in the Premises
or any limitation on its use. The taking of possession of the Premises shall be
conclusive evidence that Tenant accepts the Premises and that the Premises were
in good condition at the time possession was taken except for items that are
Landlord's responsibility under Paragraph 10 and any punchlist items agreed to
in writing by Landlord and Tenant.

         3. USE. The Premises shall be used only for the purpose of light
research and development, lab, receiving, storing, shipping and selling (but
limited to wholesale sales) products, materials and merchandise made and/or
distributed by Tenant and for such other lawful purposes as may be incidental
thereto; provided, however, Tenant may also use the Premises for light
manufacturing. Tenant shall not conduct or give notice of any auction,
liquidation, or going out of business sale on the Premises. Tenant will use the
Premises in a careful, safe and proper manner and will not commit waste,
overload the floor or structure of the Premises or subject the Premises to use
that would damage the Premises. Tenant shall not permit any objectionable or
unpleasant odors, smoke, dust, gas, noise, or vibrations to emanate from the
Premises, or take any other action that would constitute a nuisance or would
disturb, unreasonably interfere with, or endanger Landlord or any tenants of the

<PAGE>

Project. Outside storage, including without limitation, storage of trucks and
other vehicles, is prohibited without Landlord's prior written consent which
shall not be unreasonably withheld. Tenant, at its sole expense, shall use and
occupy the Premises in compliance with all laws, including, without limitation,
the Americans With Disabilities Act, orders, judgments, ordinances, regulations,
codes, directives, permits, licenses, covenants and restrictions now or
hereafter applicable to the Premises (collectively, "Legal Requirements"). The
Premises shall not be used as a place of public accommodation under the
Americans With Disabilities Act or similar state statutes or local ordinances or
any regulations promulgated thereunder, all as may be amended from time to time.
Tenant shall, at its expense, make any alterations or modifications, within or
without the Premises, that are required by Legal Requirements related to
Tenant's use or occupation of the Premises. Tenant will not use or permit the
Premises to be used for any purpose or in any manner that would void Tenant's or
Landlord's insurance, increase the insurance risk, or cause the disallowance of
any sprinkler credits. If any increase in the cost of any insurance on the
Premises or the Project is caused by Tenant's use or occupation of the Premises,
or because Tenant vacates the Premises, then Tenant shall pay the amount of such
increase to Landlord. Any occupation of the Premises by Tenant prior to the
Commencement Date shall be subject to all obligations of Tenant under this
Lease.

         4. BASE RENT. Tenant shall pay Base Rent in the amount set forth above.
The first month's Base Rent, the Security Deposit, and the first monthly
installment of estimated Operating Expenses (as hereafter defined) shall be due
and payable on the date hereof, and Tenant promises to pay to Landlord in
advance, without demand, deduction or set-off, monthly installments of Base Rent
on or before the first day of each calendar month succeeding the Commencement
Date. Payments of Base Rent for any fractional calendar month shall be prorated.
All payments required to be made by Tenant to Landlord hereunder shall be
payable at such address as Landlord may specify from time to time by written
notice delivered in accordance herewith. The obligation of Tenant to pay Base
Rent and other sums to Landlord and the obligations of Landlord under this Lease
are independent obligations. Tenant shall have no right at any time to abate,
reduce, or set-off any rent due hereunder except as may be expressly provided in
this Lease. Tenant waives and releases all statutory liens and offset rights as
to rent. If Tenant is delinquent in any monthly installment of Base Rent or of
estimated Operating Expenses for more than 5 days, after written notice,
(provided however, such notice shall not be required more than twice in any
twelve month period or more than four (4) times over the term), Tenant shall pay
to Landlord on demand a late charge equal to 5 percent of such delinquent sum.
The provision for such late charge shall be in addition to all of Landlord's
other rights and remedies hereunder or at law and shall not be construed as a
penalty.

         5. SECURITY DEPOSIT. The Security Deposit shall be held by Landlord as
security for the performance of Tenant's obligations under this Lease. The
Security Deposit is not an advance rental deposit or a measure of Landlord's
damages in case of Tenant's default. Upon each occurrence of an Event of Default
(hereinafter defined), Landlord may use all or part of the Security Deposit to
pay delinquent payments due under this Lease, and the cost of any damage,
injury, expense or liability caused by such Event of Default, without prejudice
to any other remedy provided herein or provided by law. Tenant shall pay
Landlord on demand the amount that will restore the Security Deposit to its
original amount. Landlord's obligation respecting the Security Deposit is that
of a debtor, not a trustee; no interest shall accrue thereon. The Security
Deposit shall be the property of Landlord, but shall be returned to Tenant
within forty-five (45) days of the expiration or earlier termination of this
Lease, provided Tenant's obligations under this Lease have been completely
fulfilled. Landlord shall be released from any obligation with respect to the
Security Deposit upon transfer of this Lease and the Premises to a person or
entity assuming Landlord's obligations under this Paragraph 5.

         6. OPERATING EXPENSE PAYMENTS. During each month of the Lease Term, on
the same date that Base Rent is due, Tenant shall pay Landlord an amount equal
to 1/12 of the annual cost, as reasonably estimated by Landlord from time to
time, of Tenant's Proportionate Share (hereinafter defined) of Operating
Expenses for the Project. Payments thereof for any fractional calendar month
shall be prorated. The term "Operating Expenses" means all costs and expenses
incurred by Landlord with respect to the ownership, maintenance, and operation
of the Project including, but not limited to costs of: Taxes (hereinafter
defined) and fees payable to tax consultants and attorneys for consultation and
contesting taxes; insurance; utilities; maintenance, repair and replacement of
all portions of the Project, including without limitation, paving and parking
areas, roads, roofs, alleys, and driveways, mowing, landscaping, exterior
painting, utility lines, heating, ventilation and air conditioning systems,
lighting, electrical systems and other mechanical and building systems; amounts
paid to contractors and subcontractors for work or services performed in
connection with any of the foregoing; charges or assessments of any association
to which the Project is subject; property management fees payable to a property
manager, not to exceed 10% of operating expenses, including any affiliate of
Landlord, or if there is no property manager, an administration fee of 10
percent of Operating Expenses payable to Landlord; security services, if any;
trash collection, sweeping and removal; and additions or alterations made by
Landlord to the Project or the Building in order to comply with Legal
Requirements (other than those expressly required herein to be made by Tenant)
or that are appropriate to the continued operation of the Project or the
Building as a bulk warehouse facility in the market area, provided that the cost
of additions or alterations that are required to be capitalized for federal
income tax purposes shall be amortized on a straight line basis over a period
equal to the useful life thereof in accordance with generally accepted
accounting principles. Operating Expenses do not include costs, or expenses,
depreciation or amortization for capital repairs and capital replacements
required to be made by Landlord under Paragraph 10 of this Lease; debt service
under mortgages or ground rent under ground leases; costs of restoration to the
extent of net insurance proceeds received by Landlord with respect thereto;
leasing commissions; or the costs of renovating space for tenants; attorneys'
fees, costs disbursements, and other expenses incurred in connection with
negotiations or disputes with tenants;

                                      -2-

<PAGE>

         The cost of any service sold to any tenant (including Tenant) or other
occupant for which Landlord is entitled to be reimbursed as an additional charge
or rental over and above the basic rent and escalations payable under the lease
with that tenant;

         Any depreciation on the Building or Property;

         Expenses in connection with services or other benefits of a type that
are not provided to Tenant but which are provided another tenant or occupant of
the Building or Property;

         Costs incurred due to Landlord's violation of any terms or conditions
of this Lease or any other lease relating to the Building or Property;

         All interest, loan fees, and other carrying costs related to any
mortgage or deed of trust or related to any capital item, and all rental and
other payable due under any ground or underlying lease, or any lease for any
equipment ordinarily considered to be of a capital nature (except janitorial
equipment which is not affixed to the Building.)

         Advertising and promotional expenditures;

         The part of any costs or other sum paid to any affiliate of Landlord
that may exceed the fair market price or cost generally payable for
substantially similar goods or services in the area of the project;

         Any costs, fines, or penalties incurred due to violations by Landlord
of any governmental RULE or authority, this Lease or any other lease in the
Property, or due to Landlord's negligence or willful misconduct.

         Wages, salaries, or other compensation paid to any executive employees
above the grade of property manager; or

         The cost of removing Hazardous Materials or correcting any other
conditions in order to comply with any environmental law or ordinance (but this
exclusion shall not constitute a release by Landlord of Tenant for any such
costs for which Tenant is liable pursuant to Paragraph 30 of this Lease).

              If Tenant's total payments of Operating Expenses for any year
are less than Tenant's Proportionate Share of actual Operating Expenses for
such year, then Tenant shall pay the difference to Landlord within 30 days
after demand, and if more, then Landlord shall retain such excess and credit
it against Tenant's next payments. For purposes of calculating Tenant's
Proportionate Share of Operating Expenses, a year shall mean a calendar year
except the first year, which shall begin on the Commencement Date, and the
last year, which shall end on the expiration of this Lease. With respect to
Operating Expenses which Landlord allocates to the entire Project, Tenant's
"Proportionate Share" shall be the percentage set forth on the first page of
this Lease as Tenant's Proportionate Share of the Project as reasonably
adjusted by Landlord in the future for changes in the physical size of the
Premises or the Project; and, with respect to Operating Expenses which
Landlord allocates only to the Building, Tenant's "Proportionate Share" shall
be the percentage set forth on the first page of this Lease as Tenant's
Proportionate Share of the Building as reasonably adjusted by Landlord in the
future for changes in the physical size of the Premises or the Building.
Landlord may equitably increase Tenant's Proportionate Share for any item of
expense or cost reimbursable by Tenant that relates to a repair, replacement,
or service that benefits only the Premises or only a portion of the Project
or Building that includes the Premises or that varies with occupancy or use.
The estimated Operating Expenses for the Premises set forth on the first page
of this Lease are only estimates, and Landlord makes no guaranty or warranty
that such estimates will be accurate.

              Within 60 days of the end of each calendar year, Landlord shall
deliver to Tenant a statement setting forth actual Operating Expenses and
Real Property Taxes. Upon Tenant's written request (which request must be
made within thirty (30) days of receipt of statement), Landlord shall provide
photocopies of invoices, bills and other verification to substantiate
disputed costs.

         7. UTILITIES. Tenant shall pay for all water, gas, electricity, heat,
light, power, telephone, sewer, sprinkler services, refuse and trash collection,
and other utilities and services used on the Premises, all maintenance charges
for utilities, and any storm sewer charges or other similar charges for
utilities imposed by any governmental entity or utility provider, together with
any taxes, penalties, surcharges or the like pertaining to Tenant's use of the
Premises. Landlord may cause at Tenant's expense any utilities to be separately
metered or charged directly to Tenant by the provider. Tenant shall pay its
share of all charges for jointly metered utilities based upon consumption, as
reasonably determined by Landlord. No interruption or failure of utilities shall
result in the termination of this Lease or the abatement of rent. Tenant agrees
to limit use of water and sewer for normal restroom use.

              Notwithstanding anything to the contrary contained in Paragraph
7, if an interruption or cessation of utilities results from a cause within
Landlord's reasonable control and the Premises are not usable by Tenant for
the conduct of Tenant's business as a result thereof, Base Rent and
applicable Operating Expenses not actually incurred up to that point by
Tenant shall be abated for the period which commences five (5) business days
after the date Tenant gives to Landlord notice of such interruption until
such utilities are restored.

                                      -3-

<PAGE>

         8. TAXES. Landlord shall pay all taxes, assessments and governmental
charges (collectively referred to as "Taxes") that accrue against the Project
during the Lease Term, which shall be included as part of the Operating Expenses
charged to Tenant. Landlord may contest by appropriate legal proceedings the
amount, validity, or application of any Taxes or liens thereof. All capital
levies or other taxes assessed or imposed on Landlord upon the rents payable to
Landlord under this Lease and any franchise tax, any excise, transaction, sales
or privilege tax, assessment, levy or charge measured by or based, in whole or
in part, upon such rents from the Premises and/or the Project or any portion
thereof shall be paid by Tenant to Landlord monthly in estimated installments or
upon demand, at the option of Landlord, as additional rent; provided, however,
in no event shall Tenant be liable for any net income taxes imposed on Landlord
unless such net income taxes are in substitution for any Taxes payable
hereunder. If any such tax or excise is levied or assessed directly against
Tenant, then Tenant shall be responsible for and shall pay the same at such
times and in such manner as the taxing authority shall require. Tenant shall be
liable for all taxes levied or assessed against any personal property or
fixtures placed in the Premises, whether levied or assessed against Landlord or
Tenant.

         9. INSURANCE. Landlord shall maintain all risk property insurance
covering the full replacement cost of the Building. Landlord may, but is not
obligated to, maintain such other insurance and additional coverages as it may
deem necessary, including, but not limited to, commercial liability insurance
and rent loss insurance. All such insurance shall be included as part of the
Operating Expenses charged to Tenant. The Project or Building may be included in
a blanket policy (in which case the cost of such insurance allocable to the
Project or Building will be determined by Landlord based upon the insurer's cost
calculations). Tenant shall also reimburse Landlord for any increased premiums
or additional insurance which Landlord reasonably deems necessary as a result of
Tenant's use of the Premises.

              Tenant, at its expense, shall maintain during the Lease Term:
all risk property insurance covering the full replacement cost of all
property and improvements installed or placed in the Premises by Tenant at
Tenant's expense; worker's compensation insurance with no less than the
minimum limits required by law; employer's liability insurance with such
limits as required by law; and commercial liability insurance, with a minimum
limit of $1,000,000 per occurrence and a minimum umbrella limit of
$1,000,000, for a total minimum combined general liability and umbrella limit
of $2,000,000 (together with such additional umbrella coverage as Landlord
may reasonably require) for property damage, personal injuries, or deaths of
persons occurring in or about the Premises. Landlord may from time to time
require reasonable increases in any such limits. The commercial liability
policies shall name Landlord as an additional insured, insure on an
occurrence and not a claims-made basis, be issued by insurance companies
which are reasonably acceptable to Landlord, not be cancelable unless 30
days' prior written notice shall have been given to Landlord, contain a
hostile fire endorsement and a contractual liability endorsement and provide
primary coverage to Landlord (any policy issued to Landlord providing
duplicate or similar coverage shall be deemed excess over Tenant's policies).
Such policies or certificates thereof shall be delivered to Landlord by
Tenant upon commencement of the Lease Term and upon each renewal of said
insurance.

              The all risk property insurance obtained by Landlord and Tenant
shall include a waiver of subrogation by the insurers and all rights based
upon an assignment from its insured, against Landlord or Tenant, their
officers, directors, employees, managers, agents, invitees and contractors,
in connection with any loss or damage thereby insured against. Neither party
nor its officers, directors, employees, managers, agents, invitees or
contractors shall be liable to the other for loss or damage caused by any
risk coverable by all risk property insurance, and each party waives any
claims against the other party, and its officers, directors, employees,
managers, agents, invitees and contractors for such loss or damage. The
failure of a party to insure its property shall not void this waiver.
Landlord and its agents, employees and contractors shall not be liable for,
and Tenant hereby waives all claims against such parties for, business
interruption and losses occasioned thereby sustained by Tenant or any person
claiming through Tenant resulting from any accident or occurrence in or upon
the Premises or the Project from any cause whatsoever, including without
limitation, damage caused in whole or in part, directly or indirectly, by the
negligence of Landlord or its agents, employees or contractors.

         10. LANDLORD'S REPAIRS. Landlord shall maintain, at its expense, the
structural soundness of the roof, foundation, and exterior walls of the Building
in good repair, reasonable wear and tear and damages caused by Tenant, its
agents and contractors excluded. The term "walls" as used in this Paragraph 10
shall not include windows, glass or plate glass, doors or overhead doors,
special store fronts, dock bumpers, dock plates or levelers, or office entries.
Tenant shall promptly give Landlord written notice of any repair required by
Landlord pursuant to this Paragraph 10, after which Landlord shall have a
reasonable opportunity to repair.

              In the event of an emergency, Tenant shall have the right to
make such temporary, emergency repairs (and only such temporary, emergency
repairs) to the roof, foundation or exterior walls of the Project as may be
reasonably necessary to prevent material damage to Tenant's property at the
Premises and/or personal injury to Tenant's employees at the Premises
(provided Tenant first attempts to notify Landlord telephonically of such
emergency and notifies Landlord of such circumstances in writing as soon as
practicable thereafter). In such event, Landlord shall reimburse Tenant for
the reasonable, out-of-pocket costs actually incurred by Tenant in making
such emergency repairs. If Landlord fails to reimburse Tenant for the
reasonable, out-of-pocket costs incurred by Tenant in making such repairs, up
to but not to exceed $7,000.00 with respect to such emergency within 30 days
after demand therefor, accompanied by supporting evidence of the costs
incurred by Tenant, then Tenant may bring an action for damages against
Landlord to recover such costs, together with interest thereof at the rate
provided for in Paragraph 37(j) of the Lease, and reasonable attorney's fees
incurred by Tenant in bringing such action for damages.

                                      -4-

<PAGE>

         11. TENANT'S REPAIRS. Landlord, at Tenant's expense as provided in
Paragraph 6, shall maintain in good repair and condition the parking areas and
other common areas of the Building, including, but not limited to driveways,
alleys, landscape and grounds surrounding the Premises. Subject to Landlord's
obligation in Paragraph 10 and subject to Paragraphs 9 15, and 16, Tenant, at
its expense, shall repair, replace and maintain in good condition all portions
of the Premises and all areas, improvements and systems exclusively serving the
Premises including, without limitation, dock and loading areas, truck doors,
plumbing, water, and sewer lines up to points of common connection, fire
sprinklers and fire protection systems, entries, doors, ceilings and roof
membrane, windows, interior walls, and the interior side of demising walls, and
heating, ventilation and air conditioning systems. Such repair and replacements
include capital expenditures and repairs whose benefits may extend beyond the
Term, and such capital expenditures and repairs shall be amortized on a straight
line basis over a period equal to the useful life thereof in accordance to
generally accepted accounting principals. Heating, ventilation and air
conditioning systems and other mechanical and building systems serving the
Premises shall be maintained at Tenant's expense pursuant to maintenance service
contracts entered into by Tenant or, at Landlord's election, by Landlord. The
scope of services and contractors under such maintenance contracts shall be
reasonably approved by Landlord. At Landlord's request, Tenant shall enter into
a joint maintenance agreement with any railroad that services the Premises. If
Tenant fails beyond any APPLICABLE CURE period to perform any repair or
replacement for which it is responsible, Landlord may perform such work and be
reimbursed by Tenant within 10 days after demand therefor. Subject to Paragraphs
9 and 15, Tenant shall bear the full cost of any repair or replacement to any
part of the Building or Project that results from damage caused by the
negligence of Tenant, its agents, contractors, or invitees and any repair that
benefits only the Premises.

         12. TENANT-MADE ALTERATIONS AND TRADE FIXTURES. Any alterations,
additions, or improvements THAT AFFECT ANY STRUCTURAL OR EXTERIOR PORTIONS OF
THE BUILDING OR EXCEED $2,500 IN COSTS, made by or on behalf of Tenant to the
Premises ("Tenant-Made Alterations") shall be subject to Landlord's prior
written consent which shall not be unreasonably withheld or delayed. TENANT
SHALL BE REQUIRED TO REMOVE ANY ALTERATION, ADDITIONS, IMPROVEMENTS OR UTILITY
INSTALLATIONS AND RETURN PREMISES IN LIKE NEW CONDITION UNLESS LANDLORD HAS
INDICATED IN WRITING PRIOR TO CONSTRUCTION THAT SUCH REMOVAL WILL NOT BE
REQUIRED AT THE END OF THE LEASE TERM. Tenant shall cause, at its expense, all
Tenant-Made Alterations to comply with insurance requirements and with Legal
Requirements and shall construct at its expense any alteration or modification
required by Legal Requirements as a result of any Tenant-Made Alterations. All
Tenant-Made Alterations shall be constructed in a good and workmanlike manner by
contractors reasonably acceptable to Landlord and only good grades of materials
shall be used. All plans and specifications for any Tenant-Made Alterations
shall be submitted to Landlord for its approval. Landlord may monitor
construction of the Tenant-Made Alterations. Tenant shall reimburse Landlord for
its reasonable costs in reviewing plans and specifications and in monitoring
construction. Landlord's right to review plans and specifications and to monitor
construction shall be solely for its own benefit, and Landlord shall have no
duty to see that such plans and specifications or construction comply with
applicable laws, codes, rules and regulations. Tenant shall provide Landlord
with the identities and mailing addresses of all persons performing work or
supplying materials, prior to beginning such construction, and Landlord may post
on and about the Premises notices of non-responsibility pursuant to applicable
law. Tenant shall furnish security or make other arrangements satisfactory to
Landlord to assure payment for the completion of all work free and clear of
liens and shall provide certificates of insurance for worker's compensation and
other coverage in amounts and from an insurance company satisfactory to Landlord
protecting Landlord against liability for personal injury or property damage
during construction. Upon completion of any Tenant-Made Alterations, Tenant
shall deliver to Landlord sworn statements setting forth the names of all
contractors and subcontractors who did work on the Tenant-Made Alterations and
final lien waivers from all such contractors and subcontractors. Upon surrender
of the Premises, all Tenant-Made Alterations and any leasehold improvements
constructed by Landlord or Tenant shall remain on the Premises as Landlord's
property, except to the extent Landlord requires removal at Tenant's expense of
any such items or Landlord and Tenant have otherwise agreed in writing in
connection with Landlord's consent to any Tenant-Made Alterations. Tenant shall
repair any damage caused by such removal.

              Tenant, at its own cost and expense and without Landlord's
prior approval, may erect such shelves, bins, machinery and trade fixtures
(collectively "Trade Fixtures") in the ordinary course of its business provided
that such items do not alter the basic character of the Premises, do not
overload or damage the Premises, and may be removed without injury to the
Premises, and the construction, erection, and installation thereof complies with
all Legal Requirements and with Landlord's requirements set forth above. Upon
the expiration or earlier termination of this Lease, Tenant shall remove its
Trade Fixtures and shall repair any damage caused by such removal.

         13. SIGNS. Tenant shall not make any changes to the exterior of the
Premises, install any exterior lights, decorations, balloons, flags, pennants,
banners, or painting, or erect or install any signs, windows or door lettering,
placards, decorations, or advertising media of any type which can be viewed from
the exterior of the Premises, without Landlord's prior written consent. Upon
surrender or vacation of the Premises, Tenant shall have removed all signs and
repair, paint, and/or replace the building facia surface to which its signs are
attached. Tenant shall obtain all applicable governmental permits and approvals
for sign and exterior treatments. All signs, decorations, advertising media,
blinds, draperies and other window treatment or bars or other security
installations visible from outside the Premises shall be subject to Landlord's
approval and conform in all respects to Landlord's requirements.

         14. PARKING. Tenant shall be entitled to park in common with other
tenants of the Project in those areas designated for nonreserved parking.
Landlord may allocate parking spaces among Tenant and other tenants in the
Project if Landlord determines that such parking facilities are becoming
crowded. Landlord shall not be responsible for enforcing Tenant's parking rights
against any third parties. Tenant at Tenant's expense shall be entitled to six
(6) "Visitor" parking spaces to be located in front of the Premises.

                                      -5-

<PAGE>

         15. RESTORATION. If at any time during the Lease Term the Premises are
damaged by a fire or other casualty, Landlord shall notify Tenant within 45 days
after such damage as to the amount of time Landlord reasonably estimates it will
take to restore the Premises. If the restoration time is estimated to exceed 6
months, either Landlord or Tenant may elect to terminate this Lease upon notice
to the other party given no later than 30 days after Landlord's notice. If
neither party elects to terminate this Lease or if Landlord estimates that
restoration will take 6 months or less, then, subject to receipt of sufficient
insurance proceeds, Landlord shall promptly restore the Premises excluding the
improvements installed by Tenant or by Landlord and paid by Tenant, subject to
delays arising from the collection of insurance proceeds or from Force Majeure
events. Tenant at Tenant's expense shall promptly perform, subject to delays
arising from the collection of insurance proceeds, or from Force Majeure events,
all repairs or restoration not required to be done by Landlord and shall
promptly re-enter the Premises and commence doing business in accordance with
this Lease. Notwithstanding the foregoing, either party may terminate this Lease
if the Premises are damaged during the last year of the Lease Term and Landlord
reasonably estimates that it will take more than one month to repair such
damage. Tenant shall pay to Landlord with respect to any damage to the Premises
the amount of the commercially reasonable deductible, NOT TO EXCEED $20,000,
under Landlord's insurance policy (currently $10,000) within 10 days after
presentment of Landlord's invoice. If the damage involves the premises of other
tenants, Tenant shall pay the portion of the deductible that the cost of the
restoration of the Premises bears to the total cost of restoration, as
reasonably determined by Landlord. Base Rent and Operating Expenses shall be
abated from the date of casualty until the repair and restoration is completed,
in the proportion which the area of the Premises, if any, which is not usable by
Tenant bears to the total area of the Premises. Such abatement shall be the sole
remedy of Tenant, and except as provided herein, Tenant waives any right to
terminate the Lease by reason of damage or casualty loss.

         16. CONDEMNATION. If any part of the Premises or the Project should be
taken for any public or quasi-public use under governmental law, ordinance, or
regulation, or by right of eminent domain, or by private purchase in lieu
thereof (a "Taking" or "Taken"), and the Taking would prevent or materially
interfere with Tenant's use of the Premises or in Landlord's judgment would
materially interfere with or impair its ownership or operation of the Project,
then upon written notice by Landlord this Lease shall terminate and Base Rent
shall be apportioned as of said date. If part of the Premises shall be Taken,
and this Lease is not terminated as provided above, the Base Rent payable
hereunder during the unexpired Lease Term shall be reduced to such extent as may
be fair and reasonable under the circumstances. In the event of any such Taking,
Landlord shall be entitled to receive the entire price or award from any such
Taking without any payment to Tenant, and Tenant hereby assigns to Landlord
Tenant's interest, if any, in such award. Tenant shall have the right, to the
extent that same shall not diminish Landlord's award, to make a separate claim
against the condemning authority (but not Landlord) for such compensation as may
be separately awarded or recoverable by Tenant for moving expenses and damage to
Tenant's Trade Fixtures, if a separate award for such items is made to Tenant.

         17. ASSIGNMENT AND SUBLETTING. Without Landlord's prior written
consent, which Landlord shall not unreasonably withhold or delay, Tenant shall
not assign this Lease or sublease the Premises or any part thereof or mortgage,
pledge, or hypothecate its leasehold interest or grant any concession or license
within the Premises and any attempt to do any of the foregoing shall be void and
of no effect. For purposes of this paragraph, a transfer of the ownership
interests controlling Tenant shall be deemed an assignment of this Lease unless
such ownership interests are publicly traded. Notwithstanding the above, Tenant
may assign or sublet the Premises, or any part thereof, to any entity
controlling Tenant, controlled by Tenant or under common control with Tenant (a
"Tenant Affiliate"), without the prior written consent of Landlord. Tenant shall
reimburse Landlord for all of Landlord's reasonable out-of-pocket expenses in
connection with any assignment or sublease. Upon Landlord's receipt of Tenant's
written notice of a desire to assign or sublet 75% or more of the Premises,
(other than to a Tenant Affiliate), Landlord may, by giving written notice to
Tenant within 10 business days after receipt of Tenant's notice, terminate this
Lease with respect to the space described in Tenant's notice, as of the date
specified in Tenant's notice for the commencement of the proposed assignment or
sublease. If Landlord so terminates the Lease, Landlord may enter into a lease
directly with the proposed sublessee or assignee. Tenant may withdraw its notice
to sublease or assign by notifying Landlord within 10 business days after
Landlord has given Tenant notice of such termination, in which case the Lease
shall not terminate but shall continue.

              It shall be reasonable for the Landlord to withhold its consent
to any assignment or sublease in any of the following instances: (i) an Event
of Default has occurred and is continuing that would not be cured upon the
proposed sublease or assignment; (ii) the assignee does not have a net worth
calculated according to generally accepted accounting principles at least
equal to the greater of the net worth of Tenant immediately prior to such
assignment or the net worth of the Tenant at the time it executed the Lease;
(iii) the intended use of the Premises by the assignee or sublessee is not
reasonably satisfactory to Landlord; (iv) the intended use of the Premises by
the assignee or sublessee would materially increase the pedestrian or
vehicular traffic to the Premises or the Project; (v) occupancy of the
Premises by the assignee or sublessee would, in Landlord's opinion, violate
an agreement binding upon Landlord or the Project with regard to the identity
of tenants, usage in the Project, or similar matters; (vi) the identity or
business reputation of the assignee or sublessee will, in the good faith
judgment of Landlord, tend to damage the goodwill or reputation of the
Project; (vii) the assignment or sublet is to another tenant in the Project
AND the sublease space is larger than 11,000 square feet and is at rates
which are below those charged by Landlord for comparable space in the
Project; (viii) in the case of a sublease, the subtenant has not acknowledged
that the Lease controls over any inconsistent provision in the sublease; (ix)
the proposed assignee or sublessee is a governmental agency; Tenant and
Landlord acknowledge that each of the foregoing criteria are reasonable as of
the date of execution of this Lease. The foregoing criteria shall not exclude
any other reasonable basis for Landlord to refuse

                                      -6-

<PAGE>

its consent to such assignment or sublease. Any approved assignment or sublease
shall be expressly subject to the terms and conditions of this Lease. Tenant
shall provide to Landlord all information concerning the assignee or sublessee
as Landlord may request.

              Notwithstanding any assignment or subletting, Tenant and any
guarantor or surety of Tenant's obligations under this Lease shall at all
times remain fully responsible and liable for the payment of the rent and for
compliance with all of Tenant's other obligations under this Lease
(regardless of whether Landlord's approval has been obtained for any such
assignments or sublettings). In the event that the rent due and payable by a
sublessee or assignee (or a combination of the rental payable under such
sublease or assignment plus any bonus or other consideration therefor or
incident thereto) exceeds the rental payable under this Lease, then Tenant
shall be bound and obligated to pay Landlord as additional rent hereunder 50%
of all such excess rental and other excess consideration within 10 days
following receipt thereof by Tenant, after Tenant recovers it's reasonable
costs incurred in such assignment or subleasing.

              If this Lease be assigned or if the Premises be subleased
(whether in whole or in part) or in the event of the mortgage, pledge, or
hypothecation of Tenant's leasehold interest or grant of any concession or
license within the Premises or if the Premises be occupied in whole or in
part by anyone other than Tenant, then upon a monetary default by Tenant
hereunder Landlord may collect rent from the assignee, sublessee, mortgagee,
pledgee, party to whom the leasehold interest was hypothecated, concessionee
or licensee or other occupant and, except to the extent set forth in the
preceding paragraph, apply the amount collected to the next rent payable
hereunder; and all such rentals collected by Tenant shall be held in trust
for Landlord and immediately forwarded to Landlord. No such transaction or
collection of rent or application thereof by Landlord, however, shall be
deemed a waiver of these provisions or a release of Tenant from the further
performance by Tenant of its covenants, duties, or obligations hereunder.

         18. INDEMNIFICATION. Except for the negligence or willful misconduct of
Landlord, its agents, employees or contractors, and to the extent permitted by
law, Tenant agrees to indemnify, defend and hold harmless Landlord, and
Landlord's agents, employees and contractors, from and against any and all
losses, liabilities, damages, costs and expenses (including attorneys' fees)
resulting from claims by third parties for injuries to any person and damage to
or theft or misappropriation or loss of property occurring in or about the
Project and arising from the use and occupancy of the Premises or from any
activity, work, or thing done, permitted or suffered by Tenant in or about the
Premises or due to any other act or omission of Tenant, its subtenants,
assignees, invitees, employees, contractors and agents. The furnishing of
insurance required hereunder shall not be deemed to limit Tenant's obligations
under this Paragraph 18.

         19. INSPECTION AND ACCESS. Landlord and its agents, representatives,
and contractors may enter the Premises at any reasonable time, WITH REASONABLE
NOTICE, to inspect the Premises and to make such repairs as may be required or
permitted pursuant to this Lease and for any other business purpose. Landlord
and Landlord's representatives may enter the Premises during business hours for
the purpose of showing the Premises to prospective purchasers and, during the
last six months of the Lease Term, to prospective tenants. Landlord may erect a
suitable sign on the Premises stating the Premises are available to let or that
the Project is available for sale. Landlord may grant easements, make public
dedications, designate common areas and create restrictions on or about the
Premises, provided that no such easement, dedication, designation or restriction
materially interferes with Tenant's use or occupancy of the Premises. At
Landlord's request, Tenant shall execute such instruments as may be necessary
for such easements, dedications or restrictions.

         20. QUIET ENJOYMENT. If Tenant shall perform all of the covenants and
agreements herein required to be performed by Tenant, Tenant shall, subject to
the terms of this Lease, at all times during the Lease Term, have peaceful and
quiet enjoyment of the Premises against any person claiming by, through or under
Landlord.

         21. SURRENDER. Upon termination of the Lease Term or earlier
termination of Tenant's right of possession, Tenant shall surrender the Premises
to Landlord in the same condition as received, broom clean, ordinary wear and
tear and casualty loss and condemnation covered by Paragraphs 15 and 16
excepted. Any Trade Fixtures, Tenant-Made Alterations and property not so
removed by Tenant as permitted or required herein shall be deemed abandoned and
may be stored, removed, and disposed of by Landlord at Tenant's expense, and
Tenant waives all claims against Landlord for any damages resulting from
Landlord's retention and disposition of such property. All obligations of Tenant
hereunder not fully performed as of the termination of the Lease Term shall
survive the termination of the Lease Term, including without limitation,
indemnity obligations, payment obligations with respect to Operating Expenses
and obligations concerning the condition and repair of the Premises.

         22. HOLDING OVER. If Tenant retains possession of the Premises after
the termination of the Lease Term, unless otherwise agreed in writing, such
possession shall be subject to immediate termination by Landlord at any time,
and all of the other terms and provisions of this Lease (excluding any expansion
or renewal option or other similar right or option) shall be applicable during
such holdover period, except that Tenant shall pay Landlord from time to time,
upon demand, as Base Rent for the holdover period, an amount equal to 150% the
Base Rent in effect on the termination date, computed on a monthly basis for
each month or part thereof during such holding over. All other payments shall
continue under the terms of this Lease. In addition, Tenant shall be liable for
all damages incurred by Landlord as a result of such holding over. No holding
over by Tenant, whether with or without consent of Landlord, shall operate to
extend this Lease except as otherwise expressly provided, and this Paragraph 22
shall not be construed as consent for Tenant to retain possession of the
Premises.

                                      -7-

<PAGE>

         23. EVENTS OF DEFAULT. Each of the following events shall be an event
of default ("Event of Default") by Tenant under this Lease:

              (i) Tenant shall fail to pay any installment of Base Rent or
         any other payment required herein when due, and such failure shall
         continue for a period of 5 days from the date such payment was due.

              (ii) Tenant or any guarantor or surety of Tenant's obligations
         hereunder shall (A) make a general assignment for the benefit of
         creditors; (B) commence any case, proceeding or other action seeking to
         have an order for relief entered on its behalf as a debtor or to
         adjudicate it a bankrupt or insolvent, or seeking reorganization,
         arrangement, adjustment, liquidation, dissolution or composition of it
         or its debts or seeking appointment of a receiver, trustee, custodian
         or other similar official for it or for all or of any substantial part
         of its property (collectively a "proceeding for relief"); (C) become
         the subject of any proceeding for relief which is not dismissed within
         60 days of its filing or entry; or (D) die or suffer a legal disability
         (if Tenant, guarantor, or surety is an individual) or be dissolved or
         otherwise fail to maintain its legal existence (if Tenant, guarantor or
         surety is a corporation, partnership or other entity).

              (iii) Any insurance required to be maintained by Tenant
         pursuant to this Lease shall be cancelled or terminated or shall
         expire or shall be reduced or materially changed, except, in each
         case, as permitted in this Lease.

              (iv) Tenant shall not occupy or shall vacate the Premises or
         shall fail to continuously operate its business at the Premises for the
         permitted use set forth herein, whether or not Tenant is in monetary or
         other default under this Lease.

              (v) Tenant shall attempt or there shall occur any assignment,
         subleasing or other transfer of Tenant's interest in or with respect to
         this Lease except as otherwise permitted in this Lease.

              (vi) Tenant shall fail to discharge any lien placed upon the
         Premises in violation of this Lease within 30 days after any such lien
         or encumbrance is filed against the Premises.

              (vii) Tenant shall fail to comply with any provision of this
         Lease other than those specifically referred to in this Paragraph 23,
         and except as otherwise expressly provided herein, such default shall
         continue for more than 30 days after Landlord shall have given Tenant
         written notice of such default. (or, if the default is not capable of
         cure within such thirty (30) days but reasonably can be cured within a
         period not to exceed ninety (90) days, and Tenant fails to commence the
         cure within the thirty (30)-day period or thereafter fails to
         diligently prosecute the cure to completion within 90 days, except for
         delays caused by force majure, after written notice of default).

         24. LANDLORD'S REMEDIES. Upon each occurrence of an Event of Default
and so long as such Event of Default shall be continuing, Landlord may at any
time thereafter at its election: terminate this Lease or Tenant's right of
possession (but Tenant shall remain liable as hereinafter provided), and/or
pursue any other remedies at law or in equity. Upon the termination of this
Lease or termination of Tenant's right of possession, it shall be lawful for
Landlord, without formal demand or notice of any kind, to re-enter the Premises
by summary dispossession proceedings or any other action or proceeding
authorized by law and to remove Tenant and all persons and property therefrom.
If Landlord re-enters the Premises, Landlord shall have the right to keep in
place and use, or remove and store, all of the furniture, fixtures and equipment
at the Premises.

              Except as otherwise provided in the next paragraph, if Tenant
breaches this Lease and abandons the Premises prior to the end of the term
hereof, or if Tenant's right to possession is terminated by Landlord because
of an Event of Default by Tenant under this Lease, this Lease shall
terminate. Upon such termination, Landlord may recover from Tenant the
following, as provided in Section 1951.2 of the Civil Code of California: (i)
the worth at the time of award of the unpaid Base Rent and other charges
under this Lease that had been earned at the time of termination; (ii) the
worth at the time of award of the amount by which the reasonable value of the
unpaid Base Rent and other charges under this Lease which would have been
earned after termination until the time of award exceeds the amount of such
rental loss that Tenant proves could have been reasonably avoided; (iii) the
worth at the time of award by which the reasonable value of the unpaid Base
Rent and other charges under this Lease for the balance of the term of this
Lease after the time of award exceeds the amount of such rental loss that
Tenant proves could have been reasonably avoided; and (iv) any other amount
necessary to compensate Landlord for all the detriment proximately caused by
Tenant's failure to perform its obligations under this Lease or that in the
ordinary course of things would be likely to result therefrom. As used
herein, the following terms are defined: (a) The "worth at the time of award"
of the amounts referred to in Sections (i) and (ii) is computed by allowing
interest at the lesser of 15 percent per annum or the maximum lawful rate.
The "worth at the time of award" of the amount referred to in Section (iii)
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; (b) The
"time of award" as used in clauses (i), (ii), and (iii) above is the date on
which judgment is entered by a court of competent jurisdiction; (c) The
"reasonable value" of the amount referred to in clause (ii) above is computed
by determining the mathematical product of (1) the "reasonable annual rental
value" (as defined herein) and (2) the number of years, including fractional
parts thereof, between the date of termination and the time of award. The
"reasonable value" of the amount referred to in clause (iii) is computed by
determining the mathematical product of (1) the annual Base Rent and other
charges under this Lease and (2) the number of years including fractional
parts thereof remaining in the balance of the term of this Lease after the
time of award.

                                      -8-

<PAGE>

              Even though Tenant has breached this Lease and abandoned the
Premises, this Lease shall continue in effect for so long as Landlord does
not terminate Tenant's right to possession, and Landlord may enforce all its
rights and remedies under this Lease, including the right to recover rent as
it becomes due. This remedy is intended to be the remedy described in
California Civil Code Section 1951.4, and the following provision from such
Civil Code Section is hereby repeated: "The Lessor has the remedy described
in California Civil Code Section 1951.4 (lessor may continue lease in effect
after lessee's breach and abandonment and recover rent as it becomes due, if
lessee has right to sublet or assign, subject only to reasonable
limitations)." Any such payments due Landlord shall be made upon demand
therefor from time to time and Tenant agrees that Landlord may file suit to
recover any sums falling due from time to time. Notwithstanding any such
reletting without termination, Landlord may at any time thereafter elect in
writing to terminate this Lease for such previous breach.

              Exercise by Landlord of any one or more remedies hereunder
granted or otherwise available shall not be deemed to be an acceptance of
surrender of the Premises and/or a termination of this Lease by Landlord,
whether by agreement or by operation of law, it being understood that such
surrender and/or termination can be effected only by the written agreement of
Landlord and Tenant. Any law, usage, or custom to the contrary notwithstanding,
Landlord shall have the right at all times to enforce the provisions of this
Lease in strict accordance with the terms hereof; and the failure of Landlord at
any time to enforce its rights under this Lease strictly in accordance with same
shall not be construed as having created a custom in any way or manner contrary
to the specific terms, provisions, and covenants of this Lease or as having
modified the same. Tenant and Landlord further agree that forbearance or waiver
by Landlord to enforce its rights pursuant to this Lease or at law or in equity,
shall not be a waiver of Landlord's right to enforce one or more of its rights
in connection with any subsequent default. A receipt by Landlord of rent or
other payment with knowledge of the breach of any covenant hereof shall not be
deemed a waiver of such breach, and no waiver by Landlord of any provision of
this Lease shall be deemed to have been made unless expressed in writing and
signed by Landlord. To the greatest extent permitted by law, Tenant waives the
service of notice of Landlord's intention to re-enter as provided for in any
statute, or to institute legal proceedings to that end, and also waives all
right of redemption in case Tenant shall be dispossessed by a judgment or by
warrant of any court or judge. The terms "enter," "re-enter," "entry" or
"re-entry," as used in this Lease, are not restricted to their technical legal
meanings. Any reletting of the Premises shall be on such terms and conditions as
Landlord in its sole discretion may determine (including without limitation a
term different than the remaining Lease Term, rental concessions, alterations
and repair of the Premises, lease of less than the entire Premises to any tenant
and leasing any or all other portions of the Project before reletting the
Premises). Landlord shall not be liable, nor shall Tenant's obligations
hereunder be diminished, because of Landlord's failure to relet the Premises or
collect rent due in respect of such reletting.

         25 TENANT'S REMEDIES/LIMITATION OF LIABILITY. Landlord shall not be in
default hereunder unless Landlord fails to perform any of its obligations
hereunder within 30 days after written notice from Tenant specifying such
failure (unless such performance will, due to the nature of the obligation,
require a period of time in excess of 30 days, then after such period of time as
is reasonably necessary). All obligations of Landlord hereunder shall be
construed as covenants, not conditions; and, except as may be otherwise
expressly provided in this Lease, Tenant may not terminate this Lease for breach
of Landlord's obligations hereunder. All obligations of Landlord under this
Lease will be binding upon Landlord only during the period of its ownership of
the Premises and not thereafter. The term "Landlord" in this Lease shall mean
only the owner, for the time being of the Premises, and in the event of the
transfer by such owner of its interest in the Premises, such owner shall
thereupon be released and discharged from all obligations of Landlord thereafter
accruing, but such obligations shall be binding during the Lease Term upon each
new owner for the duration of such owner's ownership. Any liability of Landlord
under this Lease shall be limited solely to its interest in the Project, and in
no event shall any personal liability be asserted against Landlord in connection
with this Lease nor shall any recourse be had to any other property or assets of
Landlord.

         26 WAIVER OF JURY TRIAL. TENANT AND LANDLORD WAIVE ANY RIGHT TO TRIAL
BY JURY OR TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING
IN CONTRACT, TORT, OR OTHERWISE, BETWEEN LANDLORD AND TENANT ARISING OUT OF THIS
LEASE OR ANY OTHER INSTRUMENT, DOCUMENT, OR AGREEMENT EXECUTED OR DELIVERED IN
CONNECTION HEREWITH OR THE TRANSACTIONS RELATED HERETO.

         27 SUBORDINATION. This Lease and Tenant's interest and rights hereunder
are and shall be subject and subordinate at all times to the lien of any first
mortgage, now existing or hereafter created on or against the Project or the
Premises, and all amendments, restatements, renewals, modifications,
consolidations, refinancing, assignments and extensions thereof, without the
necessity of any further instrument or act on the part of Tenant. Tenant agrees,
at the election of the holder of any such mortgage, to attorn to any such
holder. Tenant agrees upon demand to execute, acknowledge and deliver such
instruments, confirming such subordination and such instruments of attornment as
shall be requested by any such holder. Tenant hereby appoints Landlord attorney
in fact for Tenant irrevocably (such power of attorney being coupled with an
interest) to execute, acknowledge and deliver any such instrument and
instruments for and in the name of the Tenant and to cause any such instrument
to be recorded. Notwithstanding the foregoing, any such holder may at any time
subordinate its mortgage to this Lease, without Tenant's consent, by notice in
writing to Tenant, and thereupon this Lease shall be deemed prior to such
mortgage without regard to their respective dates of execution, delivery or
recording and in that event such holder shall have the same rights with respect
to this Lease as though this Lease had been executed prior to the execution,
delivery and recording of such mortgage and had been assigned to such holder.
The term "mortgage" whenever used in this Lease shall be deemed to include deeds
of trust, security assignments and any other encumbrances, and any reference to
the "holder" of a mortgage shall be deemed to include the beneficiary under a
deed of trust.

                                      -9-

<PAGE>

         28 MECHANIC'S LIENS. Tenant has no express or implied authority to
create or place any lien or encumbrance of any kind upon, or in any manner to
bind the interest of Landlord or Tenant in, the Premises or to charge the
rentals payable hereunder for any claim in favor of any person dealing with
Tenant, including those who may furnish materials or perform labor for any
construction or repairs. Tenant covenants and agrees that it will pay or cause
to be paid all sums legally due and payable by it on account of any labor
performed or materials furnished in connection with any work performed on the
Premises and that it will save and hold Landlord harmless from all loss, cost or
expense based on or arising out of asserted claims or liens against the
leasehold estate or against the interest of Landlord in the Premises or under
this Lease. Tenant shall give Landlord immediate written notice of the placing
of any lien or encumbrance against the Premises and cause such lien or
encumbrance to be discharged within 30 days of the filing or recording thereof;
provided, however, Tenant may contest such liens or encumbrances as long as such
contest prevents foreclosure of the lien or encumbrance and Tenant causes such
lien or encumbrance to be bonded or insured over in a manner satisfactory to
Landlord within such 30 day period.

         29 ESTOPPEL CERTIFICATES. Tenant agrees, from time to time, within 10
business days after request of Landlord, to execute and deliver to Landlord, or
Landlord's designee, any estoppel certificate requested by Landlord, stating
that this Lease is in full force and effect, the date to which rent has been
paid, that Landlord is not in default hereunder (or specifying in detail the
nature of Landlord's default), the termination date of this Lease and such other
matters pertaining to this Lease as may be reasonably requested by Landlord.
Tenant's obligation to furnish each estoppel certificate in a timely fashion is
a material inducement for Landlord's execution of this Lease. No cure or grace
period provided in this Lease shall apply to Tenant's obligations to timely
deliver an estoppel certificate.

         30 ENVIRONMENTAL REQUIREMENTS. Except for Hazardous Material contained
in products used by Tenant in de minimis quantities for ordinary cleaning and
office purposes, Tenant shall not permit or cause any party to bring any
Hazardous Material upon the Premises or transport, store, use, generate,
manufacture or release any Hazardous Material in or about the Premises without
Landlord's prior written consent. Tenant, at its sole cost and expense, shall
operate its business in the Premises in strict compliance with all Environmental
Requirements and shall remediate in manner satisfactory to Landlord any
Hazardous Materials released on or from the Project by Tenant, its agents,
employees, contractors, subtenants or invitees. Tenant shall complete and
certify to disclosure statements as requested by Landlord from time to time
relating to Tenant's transportation, storage, use, generation, manufacture, or
release of Hazardous Materials on the Premises. The term "Environmental
Requirements" means all applicable present and future statutes, regulations,
ordinances, rules, codes, judgments, orders or other similar enactments of any
governmental authority or agency regulating or relating to health, safety, or
environmental conditions on, under, or about the Premises or the environment,
including without limitation, the following: the Comprehensive Environmental
Response, Compensation and Liability Act; the Resource Conservation and Recovery
Act; and all state and local counterparts thereto, and any regulations or
policies promulgated or issued thereunder. The term "Hazardous Materials" means
and includes any substance, material, waste, pollutant, or contaminant listed or
defined as hazardous or toxic, under any Environmental Requirements, asbestos
and petroleum, including crude oil or any fraction thereof, natural gas, or
synthetic gas usable for fuel (or mixtures of natural gas and such synthetic
gas). As defined in Environmental Requirements, Tenant is and shall be deemed to
be the "operator" of Tenant's "facility" and the "owner" of all Hazardous
Materials brought on the Premises by Tenant, its agents, employees, contractors
or invitees, and the wastes, by-products, or residues generated, resulting, or
produced therefrom.

              Tenant shall indemnify, defend, and hold Landlord harmless from
and against any and all losses (including, without limitation, diminution in
value of the Premises or the Project and loss of rental income from the
Project), claims, demands, actions, suits, damages (including, without
limitation, punitive damages), expenses (including, without limitation,
remediation, removal, repair, corrective action, or cleanup expenses), and
costs (including, without limitation, actual attorneys' fees, consultant fees
or expert fees and including, without limitation, removal or management of
any asbestos brought into the Premises or disturbed in breach of the
requirements of this Paragraph 30, regardless of whether such removal or
management is required by law) which are brought or recoverable against, or
suffered or incurred by Landlord as a result of any release of Hazardous
Materials for which Tenant is obligated to remediate as provided above or any
other breach of the requirements under this Paragraph 30 by Tenant, its
agents, employees, contractors, subtenants, assignees or invitees, regardless
of whether Tenant had knowledge of such noncompliance. The obligations of
Tenant and Landlord under this Paragraph 30 shall survive any termination of
this Lease.

              Notwithstanding anything to the contrary contained in this
Lease, Tenant shall have no liability of any kind to Landlord as to the
presence on or release of Hazardous materials on or from the Premises prior
to the Commencement Date or otherwise caused by: (i) Landlord, its agents,
employees, contractors or invitees; or (ii) any other tenants in the Project
or their agents, employees, contractors, subtenants, assignees or invitees;
or (iii) any other person or entity located outside the Premises or the
Project.

              Landlord shall have access to, and a right to perform
inspections and tests of, the Premises to determine Tenant's compliance with
Environmental Requirements, its obligations under this Paragraph 30, or the
environmental condition of the Premises. Access shall be granted to Landlord
upon Landlord's prior notice to Tenant and at such times so as to minimize,
so far as may be reasonable under the circumstances, any disturbance to
Tenant's operations. Such inspections and tests shall be conducted at
Landlord's expense, unless such inspections or tests reveal that Tenant has
not complied with any Environmental Requirement, in which case Tenant shall
reimburse Landlord

                                      -10-

<PAGE>

for the reasonable cost of such inspection and tests. Landlord's receipt of or
satisfaction with any environmental assessment in no way waives any rights that
Landlord holds against Tenant.

         31 RULES AND REGULATIONS. Tenant shall, at all times during the Lease
Term and any extension thereof, comply with all reasonable rules and regulations
at any time or from time to time established by Landlord covering use of the
Premises and the Project. The current rules and regulations are attached hereto.
In the event of any conflict between said rules and regulations and other
provisions of this Lease, the other terms and provisions of this Lease shall
control. Landlord shall not have any liability or obligation for the breach of
any rules or regulations by other tenants in the Project.

         32 SECURITY SERVICE. Tenant acknowledges and agrees that, while
Landlord may patrol the Project, Landlord is not providing any security services
with respect to the Premises and that Landlord shall not be liable to Tenant
for, and Tenant waives any claim against Landlord with respect to, any loss by
theft or any other damage suffered or incurred by Tenant in connection with any
unauthorized entry into the Premises or any other breach of security with
respect to the Premises.

         33 FORCE MAJEURE. Landlord and Tenant shall not be held responsible for
delays in the performance of its obligations hereunder when caused by strikes,
lockouts, labor disputes, acts of God, inability to obtain labor or materials or
reasonable substitutes therefor, governmental restrictions, governmental
regulations, governmental controls, delay in issuance of permits, enemy or
hostile governmental action, civil commotion, fire or other casualty, and other
causes beyond the reasonable control of Landlord or Tenant ("Force Majeure").

         34 ENTIRE AGREEMENT. This Lease constitutes the complete agreement of
Landlord and Tenant with respect to the subject matter hereof. No
representations, inducements, promises or agreements, oral or written, have been
made by Landlord or Tenant, or anyone acting on behalf of Landlord or Tenant,
which are not contained herein, and any prior agreements, promises,
negotiations, or representations are superseded by this Lease. This Lease may
not be amended except by an instrument in writing signed by both parties hereto.

         35 SEVERABILITY. If any clause or provision of this Lease is illegal,
invalid or unenforceable under present or future laws, then and in that event,
it is the intention of the parties hereto that the remainder of this Lease shall
not be affected thereby. It is also the intention of the parties to this Lease
that in lieu of each clause or provision of this Lease that is illegal, invalid
or unenforceable, there 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.

         36 BROKERS. Landlord and Tenant represents and warrants that it has
dealt with no broker, agent or other person in connection with this transaction
and that no broker, agent or other person brought about this transaction, other
than the broker, if any, set forth on the first page of this Lease, and Tenant
agrees to indemnify and hold Landlord harmless from and against any claims by
any other broker, agent or other person claiming a commission or other form of
compensation by virtue of having dealt with Tenant with regard to this leasing
transaction.

         37 MISCELLANEOUS. (a) Any payments or charges due from Tenant to
Landlord hereunder shall be considered rent for all purposes of this Lease.

         (b) If and when included within the term "Tenant," as used in this
instrument, there is more than one person, firm or corporation, each shall be
jointly and severally liable for the obligations of Tenant.

         (c) All notices required or permitted to be given under this Lease
shall be in writing and shall be sent by registered or certified mail, return
receipt requested, or by a reputable national overnight courier service, postage
prepaid, or by hand delivery addressed to the parties at their addresses below,
and with a copy sent to Landlord at 14100 EAST 35TH PLACE, AURORA, COLORADO
80011. Either party may by notice given aforesaid change its address for all
subsequent notices. Except where otherwise expressly provided to the contrary,
notice shall be deemed given upon delivery.

         (d) Except as otherwise expressly provided in this Lease or as
otherwise required by law, Landlord retains the right to withhold any consent or
approval.

         (e) At Landlord's request from time to time Tenant shall furnish
Landlord with true and complete copies of its most recent annual and quarterly
financial statements prepared by Tenant or Tenant's accountants and any other
financial information or summaries that Tenant typically provides to its lenders
or shareholders.

         (f) Neither this Lease nor a memorandum of lease shall be filed by or
on behalf of Tenant in any public record. Landlord may prepare and file, and
upon request by Landlord Tenant will execute, a memorandum of lease.

         (g) The normal rule of construction to the effect that any ambiguities
are to be resolved against the drafting party shall not be employed in the
interpretation of this Lease or any exhibits or amendments hereto.

         (h) The submission by Landlord to Tenant of this Lease shall have no
binding force or effect, shall not constitute an option for the leasing of the
Premises, nor confer any right or impose any obligations upon either party until
execution of this Lease by both parties.

                                      -11-

<PAGE>

         (i) Words of any gender used in this Lease shall be held and construed
to include any other gender, and words in the singular number shall be held to
include the plural, unless the context otherwise requires. The captions inserted
in this Lease are for convenience only and in no way define, limit or otherwise
describe the scope or intent of this Lease, or any provision hereof, or in any
way affect the interpretation of this Lease.

         (j) Any amount not paid by Tenant within 5 days after its due date in
accordance with the terms of this Lease shall bear interest from such due date
until paid in full at the lesser of the highest rate permitted by applicable law
or 15 percent per year. It is expressly the intent of Landlord and Tenant at all
times to comply with applicable law governing the maximum rate or amount of any
interest payable on or in connection with this Lease. If applicable law is ever
judicially interpreted so as to render usurious any interest called for under
this Lease, or contracted for, charged, taken , reserved, or received with
respect to this Lease, then it is Landlord's and Tenant's express intent that
all excess amounts theretofore collected by Landlord be credited on the
applicable obligation (or, if the obligation has been or would thereby be paid
in full, refunded to Tenant), and the provisions of this Lease immediately shall
be deemed reformed and the amounts thereafter collectible hereunder reduced,
without the necessity of the execution of any new document, so as to comply with
the applicable law, but so as to permit the recovery of the fullest amount
otherwise called for hereunder.

         (k) Construction and interpretation of this Lease shall be governed by
the laws of the state in which the Project is located, excluding any principles
of conflicts of laws.

         (l) Time is of the essence as to the performance of Tenant's
obligations under this Lease.

         (m) All exhibits and addenda attached hereto are hereby incorporated
into this Lease and made a part hereof. In the event of any conflict between
such exhibits or addenda and the terms of this Lease, such exhibits or addenda
shall control.

         38

         39 LIMITATION OF LIABILITY OF TRUSTEES, SHAREHOLDERS, AND OFFICERS OF
PROLOGIS TRUST. Any obligation or liability whatsoever of ProLogis Trust, a
Maryland real estate investment trust, which may arise at any time under this
Lease or any obligation or liability which may be incurred by it pursuant to any
other instrument, transaction, or undertaking contemplated hereby shall not be
personally binding upon, nor shall resort for the enforcement thereof be had to
the property of, its trustees, directors, shareholders, officers, employees or
agents, regardless of whether such obligation or liability is in the nature of
contract, tort, or otherwise.

                                      -12-

<PAGE>

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

TENANT:                                     LANDLORD:

Gatefield Corporation, a                    ProLogis Limited Partnership-I,
Delaware Corporation                        a Delaware Limited Partnership
                                             By: ProLogis Trust, a Maryland real
                                                 estate investment trust,
                                                 General Partner

By: /s/ James B. Boyd                       By:  /s/ Ned K. Anderson
Title:  Chief Accounting Officer            Title:  Managing Director

Address:                                    Address:
47100 Bayside Parkway
                                            47775 Fremont Boulevard
Fremont, CA  94538
                                            Fremont, CA 94538

                                      -13-

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