Document:

<PAGE>

                                                                   Exhibit 10.13

                     * * * * * * * * * * * * * * * * * * * *

                                      Lease

                           HIGHLANDS CORPORATE CENTER

                     * * * * * * * * * * * * * * * * * * * *

                                     Between

                          SOMAXON PHARMACEUTICALS, INC.

                                    (Tenant)

                                       and

                            SQUARE 24 ASSOCIATES L.P.

                                   (Landlord)

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                       Page
                                                                                       ----
<S>                                                                                    <C>
1.  LEASE AGREEMENT..................................................................    3

2.  RENT.............................................................................    3

3.  PREPARATION AND CONDITION OF PREMISES; POSSESSION AND SURRENDER OF PREMISES......    9

4.  PROJECT SERVICES.................................................................    9

5.  ALTERATIONS AND REPAIRS..........................................................   11

6.  USE OF PREMISES..................................................................   13

7.  GOVERNMENTAL REQUIREMENTS AND PROJECT RULES......................................   14

8.  INDEMNIFICATION; INSURANCE.......................................................   14

9.  FIRE AND OTHER CASUALTY..........................................................   16

10. EMINENT DOMAIN...................................................................   17

11. RIGHTS RESERVED TO LANDLORD......................................................   17

12. TENANT'S DEFAULT.................................................................   19

13. LANDLORD REMEDIES................................................................   19

14. SURRENDER........................................................................   21

15. HOLDOVER.........................................................................   21

16. SUBORDINATION TO GROUND LEASES AND MORTGAGES.....................................   22

17. ASSIGNMENT AND SUBLEASE..........................................................   23

18. CONVEYANCE BY LANDLORD...........................................................   24

19. ESTOPPEL CERTIFICATE.............................................................   24

20. SECURITY DEPOSIT.................................................................   25

21. FORCE MAJEURE....................................................................   26

22. INTENTIONALLY OMITTED............................................................   26
</TABLE>

                                       -1-
<PAGE>

<TABLE>
<S>                                                                                     <C>
23. NOTICES..........................................................................   26

24. QUIET POSSESSION.................................................................   27

25. REAL ESTATE BROKER...............................................................   27

26. MISCELLANEOUS....................................................................   27

27. UNRELATED BUSINESS INCOME........................................................   29

28. HAZARDOUS SUBSTANCES.............................................................   29

29. EXCULPATION......................................................................   32

30. EXTENSION OPTION.................................................................   32
</TABLE>

                                       -2-
<PAGE>

                                      LEASE

      THIS LEASE (the "Lease") is made as of January 14, 2004, between SQUARE 24
ASSOCIATES L.P., a District of Columbia limited partnership, (the "Landlord")
and the Tenant as named in the Schedule below. The term "Project" means the
buildings known as "Highlands Corporate Center" and the land (the "Land")
located at 12730-12780 High Bluff Drive, San Diego, California. The "Building"
means the building located at 12750 High Bluff Drive. The "Premises" means a
portion of the third floor of the Building leased to Tenant described in the
Schedule and outlined on Appendix A.

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

                                    SCHEDULE

1.    TENANT: Somaxon Pharmaceuticals, Inc., a Delaware corporation.

2.    PREMISES: 12750 High Bluff Drive, Suite 310

3.    RENTABLE SQUARE FEET OF THE PREMISES: 3,250 rentable square feet

4.    TENANT'S PROPORTIONATE SHARE OF BUILDING: 8.69% (based on 37,420 rentable
      square feet in the Building).

5.    TENANT'S PROPORTIONATE SHARE OF PROJECT: 1.58% (based on 205,344 rentable
      square feet in the Project).

6.    SECURITY DEPOSIT: $33,800.00

7.    TENANT'S REAL ESTATE BROKER FOR THIS LEASE: RMJ Investments, Inc.

8.    LANDLORD'S REAL ESTATE BROKER FOR THIS LEASE: BRE Commercial/NAI

9.    TENANT IMPROVEMENTS, IF ANY: See the Tenant Improvement Agreement attached
      hereto as Appendix C.

10.   COMMENCEMENT DATE: January 15, 2004, or the Completion Date, as defined in
      Appendix C hereto, if the Completion Date is later. Landlord and Tenant
      shall execute a Commencement Date Confirmation confirming the Commencement
      Date substantially in the form of Appendix E promptly following the
      Commencement Date.

11.   TERMINATION DATE/TERM: Thirty-six (36) months after the Commencement Date,
      or if the Commencement Date is not the first day of the month, then
      thirty-six (36) months after the first day of the first full month
      following the Commencement Date (the "Termination Date"). The "Term" shall
      be the period between the Commencement Date and the Termination Date
      unless extended or sooner terminated pursuant to this Lease.

12.   BASE YEAR: 2004

13.   BASE RENT: Base Rent shall be payable according to the following table,
      prorated for any partial month. Base Rent has been calculated at the rate
      of $2.60 per rentable square foot of the Premises, and adjusted annually
      on the anniversary of the Commencement Date by an increase of 3%, as
      follows:

<TABLE>
<CAPTION>
Period           Annual Base Rent      Monthly Base Rent
------           ----------------      -----------------
               (net of electricity)  (net of electricity)
<S>            <C>                   <C>
Months  1-12       $101,400.00            $8,450.00

Months 13-24       $104,442.00            $8,703.50

Months 25-36       $107,575.32            $8,964.61
</TABLE>

14.   SOLE PERMITTED USE: General office and administrative uses as are
      consistent with the permitted uses in the Premises; however, in no event
      in violation of any provision of the Rules and Regulations attached as
      Appendix B hereto (the "Permitted Use").

                                      (1)
<PAGE>

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

      2. RENT.

      A. Types of Rent. Tenant shall pay the following Rent in the form of a
check to Landlord at the following address:

            SQUARE 24 ASSOCIATES, L.P.
            t/a Highlands Corporate Center - South Plaza
            P.O. Box 642957
            Pittsburgh, PA 15264-2957

or by wire transfer as follows:

            SQUARE 24 ASSOCIATES, L.P.
            PNC Bank
            PNC Transit Number: 043 000 96
            PNC Account Number: 100 433 9524
            (remarks: "t/a Highlands Corporate Center - South Plaza")

or in such other manner as Landlord may notify Tenant:

            (1) Base Rent in monthly installments, without deduction or offset,
in advance, the first monthly installment payable concurrently with the
execution of this Lease and thereafter on or before the first day of each month
of the Term in the amount set forth on the Schedule.

            (2) Operating Cost Share Rent in an amount equal to the Tenant's
Proportionate Share of the excess of Operating Costs for the applicable Fiscal
Year of the Lease (the "Excess Operating Costs") over the Operating Costs for
the Base Year (the "Base Operating Costs"), paid monthly in advance in an
estimated amount. Definitions of Operating Costs and Tenant's Proportionate
Share, and the method for billing and payment of Operating Cost Share Rent are
set forth in Sections 2B, 2C and 2D.

            (3) Tax Share Rent in an amount equal to the Tenant's Proportionate
Share of the excess of Taxes for the applicable Fiscal Year of this Lease (the
"Excess Taxes") over the Taxes for the Base Year (the "Base Taxes"), paid
monthly in advance in an estimated amount. A definition of Taxes and the method
for billing and payment of Tax Share Rent are set forth in Sections 2B, 2C and
2D.

            (4) Electricity Share Rent paid monthly in advance in an estimated
amount. "Electricity Share Rent" means an amount equal to Tenant's Proportionate
Share of the cost of electricity for the applicable Fiscal Year of this Lease,
without regard to the cost of electricity in

                                      (2)
<PAGE>

the Base Year. The method of billing and payment of Electricity Share Rent is
set forth in Sections 2B, 2C and 2D.

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

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

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

            (1) Payment of Estimated Operating Cost Share Rent, Tax Share Rent
and Electricity Share Rent. Tenant shall be responsible for the payment of
Excess Operating Cost Share Rent and Tax Share Rent. Landlord shall estimate the
Operating Costs, Taxes and costs of electricity of the Project by April 1 of
each Fiscal Year, or as soon as reasonably possible thereafter. Landlord may
revise these estimates whenever it obtains more accurate information, such as
the final real estate tax assessment or tax rate for the Project.

      Within ten (10) business days after receiving the original or revised
estimate from Landlord setting forth (a) an estimate of Operating Costs for a
particular Fiscal Year, (b) the Base Operating Costs, and (c) the resulting
estimate of Excess Operating Costs for such Fiscal Year, Tenant shall pay
Landlord one-twelfth (1/12th) of Tenant's Proportionate Share of the estimated
Excess Operating Costs, multiplied by the number of months that have elapsed in
the applicable Fiscal Year to the date of such payment including the current
month, minus payments previously made by Tenant for the months elapsed. On the
first day of each month thereafter, Tenant shall pay Landlord one-twelfth
(1/12th) of Tenant's Proportionate Share of this estimate, until a new estimate
becomes applicable.

      Within ten (10) business days after receiving the original or revised
estimate from Landlord setting forth (a) an estimate of Taxes for a particular
Fiscal Year, (b) the Base Taxes, and (c) the resulting estimate of Excess Taxes
for such Fiscal Year, Tenant shall pay Landlord one-twelfth (1/12th) of Tenant's
Proportionate Share of the estimated Excess Taxes, multiplied by the number of
months that have elapsed in the applicable Fiscal Year to the date of such
payment including the current month, minus payments previously made by Tenant
for the months elapsed. On the first day of each month thereafter, Tenant shall
pay Landlord one-twelfth (1/12th) of Tenant's Proportionate Share of this
estimate, until a new estimate becomes applicable.

      Within ten (10) business days after receiving the original or revised
estimate from Landlord setting forth an estimate of the annual cost of
electricity at the Project, Tenant shall pay Landlord as Electricity Share Rent
one-twelfth (1/12th) of Tenant's Proportionate Share of the estimated cost of
electricity, multiplied by the number of months that have elapsed in the
applicable fiscal year to the date of such payment including the current month,
minus payments

                                      (3)
<PAGE>

previously made by Tenant for the months elapsed. On the first day of each month
thereafter, Tenant shall pay Landlord one-twelfth (1/12th) of Tenant's
Proportionate Share of this estimate, until a new estimate becomes applicable.

            (2) Correction of Operating Cost Share Rent. Landlord shall deliver
to Tenant a report for the previous Fiscal Year (the "Operating Cost Report") by
May 15 of each year, or as soon as reasonably possible thereafter, setting forth
(a) the actual Operating Costs incurred, (b) the Base Operating Costs, (c) the
amount of Operating Cost Share Rent due from Tenant, and (d) the amount of
Operating Cost Share Rent paid by Tenant. Within twenty (20) days after such
delivery, Tenant shall pay to Landlord the amount due minus the amount paid. If
the amount paid exceeds the amount due, Landlord shall apply the excess to
Tenant's payments of Operating Cost Share Rent next coming due until such excess
is exhausted, or if none, Landlord shall refund such excess to Tenant within
fifteen (15) days following the date of the Operating Cost Share Report.

            (3) Correction of Tax Share Rent. Landlord shall deliver to Tenant a
report for the previous Fiscal Year (the "Tax Report") by May 15 of each year,
or as soon as reasonably possible thereafter, setting forth (a) the actual
Taxes, (b) the Base Taxes, (c) the amount of Tax Share Rent due from Tenant, and
(d) the amount of Tax Share Rent paid by Tenant. Within twenty (20) days after
such delivery, Tenant shall pay to Landlord the amount due from Tenant minus the
amount paid by Tenant. If the amount paid exceeds the amount due, Landlord shall
apply any excess as a credit against Tenant's payments of Tax Share Rent next
coming due until such excess is exhausted, or if none, Landlord shall refund
such excess to Tenant within fifteen (15) days following the date of the Tax
Report.

            (4) Correction of Electricity Share Rent. Landlord shall deliver to
Tenant a report for the previous fiscal year (the "Electricity Cost Report") by
May 15 of each year, or as soon as reasonably possible thereafter, setting forth
(a) the actual cost of electricity for the Project, (b) the amount of
Electricity Share Rent due from Tenant, and (c) the amount of Electricity Share
Rent paid by Tenant. Within twenty (20) days after delivery of the Electricity
Cost Report, Tenant shall pay to Landlord the amount due from Tenant minus the
amount paid by Tenant. If the amount paid exceeds the amount due, Landlord shall
apply any excess as a credit against Tenant's payments of Electricity Share Rent
next coming due or if none, Landlord shall refund such excess to Tenant within
fifteen (15) days following the date of the Electricity Cost Report. The
obligations set forth in this Section shall survive the expiration or earlier
termination of this Lease.

      C. Definitions.

            (1) Included Operating Costs. "Operating Costs" means any
commercially reasonable expenses, costs and disbursements of any kind other than
Taxes, paid or incurred by Landlord in connection with the management,
maintenance, operation, insurance, repair and other related activities in
connection with any part of the Project and of the personal property, fixtures,
machinery, equipment, systems and apparatus used in connection therewith,
including the cost of providing those services required to be furnished by
Landlord to Tenant under this Lease. Operating Costs shall also include the
costs of any capital improvements which are

                                      (4)
<PAGE>

intended to reduce Operating Costs or improve safety, and those made to keep the
Project in compliance with governmental requirements applicable from time to
time (collectively, "Included Capital Items"); provided, that the costs of any
Included Capital Item shall be amortized by Landlord over the estimated useful
life of such item and such amortized costs are only included in Operating Costs
for that portion of the useful life of the Included Capital Item which falls
within the Term.

      If the Project is not ninety-five percent (95%) occupied during any
portion of any Fiscal Year, Landlord may adjust (an "Equitable Adjustment")
Operating Costs to equal what would have been incurred by Landlord had the
Project been ninety-five percent (95%) occupied. This Equitable Adjustment shall
apply only to Operating Costs which are variable and therefore increase as
occupancy of the Project increases. Landlord may incorporate the Equitable
Adjustment in its estimates of Operating Costs.

      If Landlord does not furnish any particular service whose cost would have
constituted an Operating Cost to a tenant other than Tenant who has undertaken
to perform such service itself, Operating Costs shall be equitably adjusted to
reflect Tenant's adjusted share of such service, provided that the Base Year
Operating Cost for such service shall be similarly adjusted.

            (2)   Excluded Operating Costs. Operating Costs shall not include:

            (a)   costs of alterations of tenant premises;

            (b)   costs of electricity, which shall be a separate expense, and
                  shall be paid by Tenant as Electricity Share Rent;

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

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

            (e)   real estate brokers' leasing commissions;

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

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

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

            (i)   depreciation (except on any Included Capital Items);

            (j)   franchise or income taxes imposed upon Landlord;

                                      (5)
<PAGE>

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

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

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

            (n)   fines, penalties and interest.

            (3) Tenant's Proportionate Share. "Tenant's Proportionate Share"
means: (a) with respect to Operating Costs, Taxes and other items related to the
Project, that percentage set forth in the Schedule as Tenant's Proportionate
Share of the Project; and (b) with respect to Operating Costs, Taxes and other
items related to the Building, that percentage set forth in the Schedule as
Tenant's Proportionate Share of the Building.

            (4) Taxes. "Taxes" means any and all taxes, assessments and charges
of any kind, general or special, ordinary or extraordinary, levied against the
Project, which Landlord shall pay or become obligated to pay in connection with
the ownership, leasing, renting, management, use, occupancy, control or
operation of the Project or of the personal property, fixtures, machinery,
equipment, systems and apparatus used in connection therewith. Taxes shall
include real estate taxes, personal property taxes, sewer rents, water rents,
special or general assessments, transit taxes, ad valorem taxes, and any tax
levied on the rents hereunder or the interest of Landlord under this Lease (the
"Rent Tax"). Taxes shall also include all fees and other costs and expenses paid
by Landlord in reviewing any tax and in seeking a refund or reduction of any
Taxes, whether or not the Landlord is ultimately successful.

      For any year, the amount to be included in Taxes (a) from taxes or
assessments payable in installments, shall be the amount of the installments
(with any interest) due and payable during such year, and (b) from all other
Taxes, shall at Landlord's election be the amount accrued, assessed, or
otherwise imposed for such year or the amount due and payable in such year. Any
refund or other adjustment to any Taxes by the taxing authority, shall apply
during the year in which the adjustment is made.

      Taxes shall not include any net income, capital, stock, succession,
transfer, franchise, gift, estate or inheritance tax, except to the extent that
such tax shall be imposed in lieu of any portion of Taxes.

            (5) Lease Year. "Lease Year" means each consecutive twelve-month
period beginning with the Commencement Date, except that if the Commencement
Date is not the first day of a calendar month, then the first Lease Year shall
be the period from the Commencement

                                      (6)
<PAGE>

Date through the final day of the twelve months after the first day of the
following month, and each subsequent Lease Year shall be the twelve months
following the prior Lease Year.

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

      D. Computation of Base Rent and Rent Adjustments.

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

            (2) Default Interest. Any sum due from Tenant to Landlord not paid
when due shall bear interest from the date due until paid at the lesser of
twelve percent (12%) per annum or the maximum rate permitted by law.

            (3) Rent Adjustments. The square footage of the Premises and the
Building currently set forth in the Schedule shall be conclusively deemed to be
the actual square footage thereof. If any Operating Cost paid in one fiscal year
relates to more than one fiscal year, Landlord may proportionately allocate such
Operating Cost among the related fiscal years.

            (4) Books and Records. Landlord shall maintain books and records
reflecting the Operating Costs and Taxes in accordance with generally accepted
accounting and sound management practices. Tenant and its certified public
accountant shall have the right to inspect Landlord's records at Landlord's
office upon at least seventy-two (72) hours' prior notice during normal business
hours during the ninety (90) days following the respective delivery of the
Operating Cost Report or the Tax Report. The results of any such inspection
shall be kept strictly confidential by Tenant and its agents, and Tenant and its
certified public accountant must agree, in their contract for such services, to
such confidentiality restrictions and shall specifically agree that the results
shall not be made available to any other tenant of the Building. Unless Tenant
sends to Landlord any written exception to either such report within said ninety
(90) day period, such report shall be deemed final and accepted by Tenant.
Tenant shall pay the amount shown on both reports in the manner prescribed in
this Lease. If Tenant makes a timely exception, Landlord shall cause an
independent certified public accountant with at least five (5) years of
experience in auditing the books and records of commercial office projects
reasonably approved by Tenant to issue a final and conclusive resolution of
Tenant's exception. Tenant shall pay the reasonable cost of such certification
unless Landlord's original determination of annual Operating Costs or Taxes
overstated the amounts thereof by more than five percent (5%). If Landlord's
original determination of annual Operating Costs or Taxes is overstated by more
than five percent (5%), then Landlord shall pay the reasonable costs incurred by
Tenant in its initial inspection/audit of Landlord's books and records.

            (5) Miscellaneous. If this Lease is terminated for any reason prior
to the annual determination of Operating Cost Share Rent or Tax Share Rent,
either party shall pay the

                                      (7)
<PAGE>

full amount due to the other within fifteen (15) days after Landlord's notice to
Tenant of the amount when it is determined. Landlord may commingle any payments
made with respect to Operating Cost Share Rent or Tax Share Rent, without
payment of interest.

      3. PREPARATION AND CONDITION OF PREMISES; POSSESSION AND SURRENDER OF
PREMISES.

      A. Condition of Premises. Landlord is leasing the Premises to Tenant
absolutely "as is", without any obligation to alter, remodel, improve, repair or
decorate any part of the Premises other than as described in the Tenant
Improvement Agreement (Appendix C). Landlord expressly disclaims any warranty or
representation, express or implied, with respect to the Project or any portion
thereof, including, without limitation, any warranty or representation as to
fitness, condition, the existence of any defect, patent or latent,
merchantability, quality or durability. Notwithstanding the foregoing, Landlord
shall be responsible for repairing, at Landlord's cost, any defects in the
structural components of the Building.

      B. Tenant's Possession. Tenant's taking possession of any portion of the
Premises shall be conclusive evidence that the Premises was in good order,
repair and condition. If Landlord authorizes Tenant to take possession of any
part of the Premises prior to the Commencement Date for purposes of doing
business, all terms of this Lease shall apply to such pre-Term possession,
including Tenant's obligation to pay Base Rent prorated for any partial month.

      C. Maintenance. Throughout the Term, Tenant shall maintain the Premises in
good order, repair and condition, loss or damage caused by the elements,
ordinary wear, and fire and other casualty excepted, and at the termination of
this Lease, or Tenant's right to possession, Tenant shall return the Premises to
Landlord in broom-clean, safe, neat and sanitary condition. Landlord shall keep
the Building outside of the Premises in safe, good working condition. To the
extent Tenant fails to perform either obligation, Landlord may, but need not,
restore the Premises to such condition and Tenant shall pay the reasonable cost
thereof.

      4. PROJECT SERVICES.

Landlord shall furnish services as follows:

      A. Heating and Air Conditioning. During the normal business hours of 8:00
a.m. to 6:00 p.m., Monday through Friday, and 9:00 a.m. to 1:00 p.m. on
Saturday, Landlord shall furnish heating and air conditioning to provide a
comfortable temperature, in Landlord's reasonable judgment, for normal business
operations, except to the extent Tenant installs equipment which adversely
affects the temperature maintained by the air conditioning system. If Tenant
installs such equipment, Landlord may install supplementary air conditioning
units in the Premises, and Tenant shall pay to Landlord upon demand as
Additional Rent the cost of installation, operation and maintenance thereof.

      Landlord shall furnish heating and air conditioning after business hours
if Tenant provides Landlord reasonable prior notice, and pays Landlord all then
current charges for such

                                      (8)
<PAGE>

additional heating or air conditioning. As of the date hereof, Landlord's
current charges for additional heating or air conditioning are $35.00 per hour.

      B. Elevators. Landlord shall provide passenger elevator service and access
to the Building twenty-four hours per day, seven days per week to Tenant in
common with Landlord and all other tenants.

      C. Electricity. Landlord shall provide sufficient electricity to operate
normal office lighting and equipment. Tenant shall not install or operate in the
Premises any electrically operated equipment or other machinery, other than
business machines and equipment normally employed for general office use which
do not require high electricity consumption for operation, without obtaining the
prior written consent of Landlord. If any or all of Tenant's equipment requires
electricity consumption in excess of that which is necessary to operate normal
office equipment, such consumption (including consumption for computer or
telephone rooms and special HVAC equipment) shall be submetered by Landlord at
Tenant's expense, and Tenant shall reimburse Landlord as Additional Rent for the
cost of its submetered consumption based upon Landlord's average cost of
electricity. Such additional rent shall be in addition to Tenant's obligations
pursuant to Section 2A(2) to pay its Proportionate Share of Operating Costs.

      D. Water. Landlord shall furnish hot and cold tap water for drinking and
toilet purposes. Tenant shall pay Landlord for water furnished for any other
purpose as Additional Rent at rates fixed by Landlord. Tenant shall not permit
water to be wasted.

      E. Janitorial Service. Landlord shall furnish janitorial service five (5)
days per week (except holidays) as generally provided to other tenants in the
Building. Janitorial service shall be reasonably acceptable to Tenant.

      F. Interruption of Services. If any of the Building equipment or machinery
ceases to function properly for any cause Landlord shall use reasonable
diligence to repair the same promptly with the least interference to Tenant's
use and enjoyment of the Premises as is commercially reasonable. Landlord shall
provide Tenant with reasonable prior written notice of any repairs, services or
renovations which may affect the Premises or Tenants' access thereto (including,
but not limited to voluntary interruption in power, plumbing or HVAC).
Landlord's inability to furnish, to any extent, the Project services set forth
in this Section 4, or any cessation thereof resulting from any causes, including
without limitation any entry for repairs pursuant to this Lease, and any
renovation, redecoration or rehabilitation of any area of the Building shall not
render Landlord liable for damages to either person or property or for
interruption or loss to Tenant's business, nor be construed as an eviction of
Tenant, nor work an abatement of any portion of rent, nor relieve Tenant from
fulfillment of any covenant or agreement hereof. However, in the event that an
interruption of the Project services set forth in this Section 4 is within
Landlord's reasonable control and such interruption causes the Premises to be
untenantable continuously for a period of at least three (3) consecutive
business days, monthly Rent shall be abated proportionately.

      G. Parking. During the Term, Tenant and its employees shall be entitled to
use within the Project's parking area (excluding, however, those areas thereof
designated by

                                      (9)
<PAGE>

Landlord from time to time for the exclusive use of certain occupants of the
Project or for no parking) an aggregate of 3.9 unreserved parking stalls for
each 1,000 rentable square feet of the Premises, of which Tenant at Tenant's
sole option shall be entitled to have three (3) parking stalls reserved for
Tenant's exclusive use. Tenant shall not be required to pay Landlord any parking
rent for the unreserved parking stalls during the Term of this Lease, but shall
pay $50.00 per month for each reserved parking stall as Additional Rent.
Landlord reserves the right to designate reserved parking stalls for other
occupants of the Project over any part of the Project's parking area. Landlord
shall not be liable to Tenant for Landlord's failure to enforce Tenant's parking
rights against other tenants of the Project. Tenant shall use the parking area
at its own risk, and Landlord shall have no liability to Tenant or Tenant's
employees or invitees for any damage to vehicles occurring in or about the
parking area of the Project.

      H. Directory. As of the Commencement Date, Landlord shall cause the
directory of the Building to include Tenant's business name and location.

      5. ALTERATIONS AND REPAIRS.

      A. Landlord's Consent and Conditions.

      Tenant shall not make any improvements or alterations to the Premises
(excluding improvements or alterations described in clauses (a) - (d) of this
sentence, the "Work") without in each instance submitting plans and
specifications for the Work to Landlord and obtaining Landlord's prior written
consent unless (a) the cost thereof is less than $2,500.00, (b) such Work does
not impact the base structural components or systems of the Building, (c) such
Work will not impact any other tenant's premises, and (d) such Work is not
visible from outside the Premises. Landlord will be deemed to be acting
reasonably in withholding its consent for any Work which (a) impacts the base
structural components or systems of the Building, (b) impacts any other tenant's
premises, or (c) is visible from outside the Premises.

      Tenant shall pay for the cost of all Work. All Work shall become the
property of Landlord upon its installation, except for Tenant's trade fixtures
and for items which Landlord requires Tenant to remove at Tenant's cost at the
termination of the Lease pursuant to Section 5E.

      The following requirements shall apply to all Work:

            (1) Prior to commencement, Tenant shall furnish to Landlord building
permits, certificates of insurance satisfactory to Landlord (including, without
limitation, certificates evidencing the insurance Tenant, its contractors and
subcontractors are required to maintain under Section 8(C)), and, at Landlord's
request, security for payment of all costs.

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

            (3) The Work shall be performed in a good and workmanlike manner,
meeting the standard for construction and quality of materials in the Building,
and shall comply with all

                                      (10)
<PAGE>

insurance requirements and all applicable governmental laws, ordinances and
regulations ("Governmental Requirements").

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

            (5) Tenant shall permit Landlord to supervise all Work, and Landlord
may charge a supervisory fee of up to 5% of the cost of the Work.

            (6) Upon completion, Tenant shall furnish Landlord with contractor's
affidavits and full and final statutory waivers of liens, as-built plans and
specifications, and receipted bills covering all labor and materials, and all
other close-out documentation reasonably required by Landlord.

      B. Damage to Systems. If any part of the mechanical, electrical or other
systems in the Premises shall be damaged, Tenant shall promptly notify Landlord,
and Landlord shall repair such damage. Landlord may also at any reasonable time
make any repairs or alterations which Landlord deems necessary for the safety or
protection of the Project, or which Landlord is required to make by any court or
pursuant to any Governmental Requirement. Tenant shall at its expense make all
other repairs necessary to keep the Premises, and Tenant's fixtures and personal
property, in good order, condition and repair; to the extent Tenant fails to do
so, Landlord may make such repairs itself. The cost of any repairs made by
Landlord on account of Tenant's default, or on account of the misuse or neglect
by Tenant or its invitees, contractors or agents anywhere in the Project, shall
become Additional Rent payable by Tenant on demand.

      C. No Liens. Tenant has no authority to cause or permit any lien or
encumbrance of any kind to affect Landlord's interest in the Project; any such
lien or encumbrance shall attach to Tenant's interest only. If any mechanic's
lien shall be filed or claim of lien made for work or materials furnished to
Tenant, then Tenant shall at its expense within twenty (20) days thereafter
either discharge or contest the lien or claim. If Tenant contests the lien or
claim, then Tenant shall (i) within such twenty (20) day period, provide
Landlord adequate security for the lien or claim, (ii) contest the lien or claim
in good faith by appropriate proceedings that operate to stay its enforcement,
and (iii) pay promptly any final adverse judgment entered in any such
proceeding. If Tenant does not comply with these requirements, Landlord may
discharge the lien or claim, and the amount paid, as well as reasonable
attorney's fees and other necessary and reasonable expenses incurred by
Landlord, shall become Additional Rent payable by Tenant on demand. Nothing
contained in this Lease shall constitute any consent by Landlord to subject
Landlord's estate to liability under any mechanics' or other lien law. Tenant
shall give Landlord adequate opportunity, and Landlord shall have the right at
all times, to post such notices of non-responsibility as may be allowed under
California law.

      D. Ownership of Improvements. All Work as defined in this Section 5,
partitions, hardware, equipment, machinery and all other improvements that, in
each case, are physically attached or affixed to the Premises and all fixtures
except trade fixtures, constructed in the Premises by either Landlord or Tenant,
(i) shall become Landlord's property upon installation

                                      (11)
<PAGE>

without compensation to Tenant, unless Landlord consents otherwise in writing,
and (ii) shall at Landlord's option either (a) be surrendered to Landlord with
the Premises at the termination of the Lease or of Tenant's right to possession,
or (b) be removed in accordance with Subsection 5E below (unless Landlord at the
time it gives its consent to the performance of such construction expressly
waives in writing the right to require such removal).

      E. Removal at Termination. Upon the termination of this Lease or Tenant's
right of possession Tenant shall remove from the Premises its trade fixtures,
furniture, moveable equipment and other personal property, any improvements
which Landlord elects shall be removed by Tenant pursuant to Section 5D, and any
improvements to any portion of the Project other than the Premises. If Tenant
does not timely remove such property, then Tenant shall be conclusively presumed
to have, at Landlord's election (i) conveyed such property to Landlord without
compensation or (ii) abandoned such property, and Landlord may dispose of or
store any part thereof in any manner at Tenant's sole cost, without waiving
Landlord's right to claim from Tenant all expenses arising out of Tenant's
failure to remove the property, and without liability to Tenant or any other
person. Landlord shall have no duty to be a bailee of any such personal
property. If Landlord elects abandonment, Tenant shall pay to Landlord, upon
demand, any expenses incurred for disposition. Tenant expressly releases
Landlord of and from any and all claims and liability for damage to or
destruction or loss of property left by Tenant upon the Premises at the
expiration or other termination of this Lease and, to the extent permitted by
then applicable law, Tenant shall protect, indemnify, defend and hold Landlord
harmless from and against any and all claims and liability with respect thereto.

      F. Landlord's Work. Landlord shall have the right at any time to change
the arrangement and location of all entrances, passageways, doors, doorways,
corridors, stairs, toilets and other public parts of the Project and, upon
giving Tenant reasonable notice thereof, to change any name, number or
designation by which the Premises or the Project is commonly known.

      6. USE OF PREMISES. Tenant shall use the Premises only for the Permitted
Use. Tenant shall not allow any use of the Premises which will negatively affect
the cost of coverage of Landlord's insurance on the Project. Tenant shall not
allow any inflammable or explosive liquids or materials to be kept on the
Premises. Tenant shall not allow any use of the Premises which would cause the
value or utility of any part of the Premises to diminish or would interfere with
any other Tenant or with the operation of the Project by Landlord. Tenant shall
not cause or permit any nuisance or waste upon the Premises, or allow any
offensive noise or odor in or around the Premises or in any way obstruct or
interfere with the rights of other tenants or occupants of the Project.

      Tenant acknowledges that the Americans With Disabilities Act of 1990 (as
amended and as supplemented by further laws from time to time, the "ADA")
imposes certain requirements upon the owners, lessees and operators of
commercial facilities and places of public accommodation, including, without
limitation, prohibitions on discrimination against any individual on the basis
of disability. Landlord shall be responsible as of the Commencement Date for the
compliance of the Premises and the common areas of the Project with the ADA in
effect as of the Commencement Date, assuming the use of the Premises is as set
forth in this

                                      (12)
<PAGE>

Lease, and that the Premises are not a place of public accommodation. Tenant
agrees, at Tenant's expense, to take all proper and necessary action to cause
the Premises, any repairs, replacements, alterations and improvements thereto to
be maintained, used and occupied in compliance with the ADA requirements,
whether or not those requirements are based upon the Tenant's use of the
Premises and, further, to otherwise assume all responsibility to ensure the
Premises' continued compliance with all provisions of the ADA throughout the
Term. Tenant shall, at its expense, make any alterations or modifications,
within the Premises, to bring Tenant's use and occupancy of the Premises into
compliance with the ADA. Landlord shall make, as an Operating Cost, any changes
to the common areas of the Project which become necessary during the Term of
this Lease, and Tenant shall pay, as Additional Rent, its proportional share of
expenses incurred by Landlord in bringing common areas of the Project into
compliance with provisions of the ADA arising after the Commencement Date. The
Premises shall not be used as a "place of public accommodation" under the ADA or
similar laws, regulations, statutes and/or ordinances provided, that if any
governmental authority shall deem the Premises to be a "place of public
accommodation" as a result of Tenant's use, Tenant shall either modify its use
to cause such authority to rescind its designation or be responsible for any
alterations, structural or otherwise, required to be made to the Project or the
Premises under such laws.

      7. GOVERNMENTAL REQUIREMENTS AND PROJECT RULES. Tenant shall comply with
all Governmental Requirements applying to its use of the Premises. Tenant shall
also comply with all reasonable rules established for the Project, including,
without limitation, the parking area, from time to time by Landlord. The present
rules and regulations are contained in Appendix B. Failure by another tenant to
comply with the rules or failure by Landlord to enforce them shall not relieve
Tenant of its obligation to comply with the rules or make Landlord responsible
to Tenant in any way. Landlord shall use reasonable efforts to apply the rules
and regulations uniformly with respect to Tenant and tenants in the Building
under leases containing rules and regulations similar to this Lease. In the
event of alterations and repairs performed by Tenant, Tenant shall comply with
the provisions of Section 5 of this Lease, and with Landlord's reasonable
requirements.

      8. INDEMNIFICATION; INSURANCE.

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

      To the extent permitted by law, Landlord waives any claims it may have
against Tenant or its officers, directors, employees or agents for loss of rents
or damage to property sustained by Landlord as the result of any act or omission
of Tenant.

      B. Indemnification. Tenant shall indemnify, defend and hold harmless
Landlord and its officers, directors, employees and agents against any claim by
any third party for injury to any person or damage to or loss of any property
occurring in the Premises, or occurring in the Project and arising from any act
or omission or negligence of Tenant or any of Tenant's employees or

                                      (13)
<PAGE>

agents, except to the extent caused by Landlord. Tenant's obligations under this
section shall survive the termination of this Lease.

      Landlord shall indemnify, defend and hold harmless Tenant and its
officers, directors, employees and agents against any claim by any third party
for injury to any person or damage to or loss of any property occurring in the
Project outside of the Premises and arising from any act or omission or
negligence of Landlord or any of Landlord's employees or agents, except to the
extent caused by Tenant. Landlord's obligations under this section shall survive
the termination of this Lease.

      C. Tenant's Insurance. Tenant shall maintain insurance as follows, with
such other terms, coverages and insurers, as Landlord shall reasonably require
from time to time:

            (1) Commercial General Liability Insurance, with (a) Contractual
Liability including the indemnification provisions contained in this Lease, (b)
a severability of interest endorsement, (c) limits of not less than One Million
Dollars ($1,000,000) combined single limit per occurrence and not less than Two
Million Dollars ($2,000,000) in the aggregate for bodily injury, sickness or
death, and property damage, and umbrella coverage of not less than Three Million
Dollars ($3,000,000).

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

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

<TABLE>
<S>                                     <C>
Each Accident                           $500,000
Disease--Policy Limit                   $500,000
Disease--Each Employee                  $500,000
</TABLE>

      To the extent permitted by law, such insurance shall contain a waiver of
subrogation provision in favor of Landlord and its agents.

      Tenant's insurance shall be primary and not contributory to that carried
by Landlord, its agents, or mortgagee. Landlord, and if any, Landlord's building
manager or agent and ground lessor shall be named as additional insureds as
respects insurance required of the Tenant in Section 8C(1). The company or
companies writing any insurance which Tenant is required to maintain under this
Lease, as well as the form of such insurance, shall be licensed to do business
in the state in which the Project is located. Such insurance companies shall
have a A.M. Best rating of A VI or better.

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

                                      (14)
<PAGE>

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

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

<TABLE>
<S>                                     <C>
Each Accident                           $500,000
Disease -- Policy Limit                 $500,000
Disease--Each Employee                  $500,000
</TABLE>

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

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

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

      E. Landlord's Insurance. Landlord shall maintain "All-Risk" property
insurance at replacement cost, including loss of rents, on the Building, and
Commercial General Liability insurance policies covering the common areas of the
Project, each with such terms, coverages and conditions as are normally carried
by reasonably prudent owners of properties similar to the Project.

      Landlord and Tenant mutually waive all rights of subrogation with respect
to property insurance, and the property insurance obtained by Landlord and
Tenant shall include a waiver of subrogation by the insurers and all of all
rights based upon an assignment from the insured, against Landlord or Tenant,
and their respective affiliates, in connection with any loss or damage insured
against. Neither Landlord nor Tenant (including their respective affiliates)
shall be liable to the other for loss or damage caused by any risk insured
against under property insurance required to be maintained hereunder, and each
party waives any claims against the other party, and its respective affiliates,
for such loss or damage. The failure of a party to obtain the insurance required
hereunder shall not affect this waiver. The respective "All-Risk" coverage
insurance policies carried by Landlord and Tenant shall contain enforceable
waiver of subrogation endorsements.

                                      (15)
<PAGE>

      9. FIRE AND OTHER CASUALTY.

      A. Termination. If a fire or other casualty causes substantial damage to
the Building or the Premises, Landlord shall engage a registered architect to
certify within one (1) month of the casualty to both Landlord and Tenant the
amount of time needed to restore the Building and the Premises to tenantability,
using standard working methods. If the time needed exceeds nine (9) months from
the beginning of the restoration, or two (2) months therefrom if the restoration
would begin during the last twelve (12) months of the Term, then in the case of
the Premises, either Landlord or Tenant may terminate this lease, and in the
case of the Building, Landlord may terminate this Lease, by notice to the other
party within ten (10) days after the notifying party's receipt of the
architect's certificate. The termination shall be effective thirty (30) days
from the date of the notice and Rent shall be paid by Tenant to that date, with
an abatement for any portion of the space which has been untenantable after the
casualty.

      B. Restoration. If a casualty causes damage to the Building or the
Premises but this Lease is not terminated for any reason, then subject to the
rights of any mortgagees or ground lessors, Landlord shall obtain the applicable
insurance proceeds and diligently restore the Building and the Premises subject
to current Governmental Requirements. Tenant shall replace its damaged
improvements, personal property and fixtures. Rent shall be abated on a per diem
basis during the restoration for any portion of the Premises which is
untenantable, except to the extent that Tenant's negligence caused the casualty.

      10. EMINENT DOMAIN. If a part of the Project is taken by eminent domain or
deed in lieu thereof which is so substantial that the Premises cannot reasonably
be used by Tenant for the operation of its business, then either party may
terminate this Lease effective as of the date of the taking. Rent shall abate
from the date of the taking in proportion to any part of the Premises taken. The
entire award for a taking of any kind shall be paid to Landlord. Tenant may
pursue a separate award for its trade fixtures and moving expenses in connection
with the taking, but only if such recovery does not reduce the award payable to
Landlord. All obligations accrued to the date of the taking shall be performed
by each party.

      11. RIGHTS RESERVED TO LANDLORD.

      Landlord may exercise at any time (unless otherwise set forth below) any
of the following rights respecting the operation of the Project without
liability to the Tenant of any kind:

      A. Name. To change the name or street address of the Building or the suite
number(s) of the Premises.

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

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

                                      (16)
<PAGE>

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

      E. Access. To have access to inspect the Premises, and to perform its
obligations, or make repairs, alterations, additions or improvements, as
permitted by this Lease.

      F. Preparation for Reoccupancy. To decorate, remodel, repair, alter or
otherwise prepare the Premises for reoccupancy at any time after Tenant abandons
(as defined in Section 12E) the Premises, without relieving Tenant of any
obligation to pay Rent.

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

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

      I. Intentionally Omitted.

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

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

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

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

                                      (17)
<PAGE>

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

      12. TENANT'S DEFAULT.

      Any of the following shall constitute a default by Tenant:

      A. Rent Default. Tenant fails to pay any Rent when due, provided that two
(2) times in any Lease Year Tenant shall not be in default unless the failure to
pay Rent shall continue beyond five (5) days after delivery to Tenant (or
refusal of delivery by Tenant) of written notice of such failure, which notice
shall be in lieu of and not in addition to any notice required under Section
1161 et. seq. of the California Code of Civil Procedure;

      B. Assignment/Sublease or Hazardous Substances Default. Tenant defaults in
its obligations under Section 17 Assignment and Sublease or Section 28 Hazardous
Substances;

      C. Other Performance Default. Tenant fails to perform any other obligation
to Landlord under this Lease, and, this failure continues for thirty (30) days
after receipt of written notice from Landlord (provided, however, that any such
notice shall be in lieu of, and not in addition to, any notice required under
Section 1161 et seq. of the California Code of Civil Procedure), except that if
Tenant begins to cure its failure within the thirty (30) day period but cannot
reasonably complete its cure within such period, then, so long as Tenant
continues to diligently pursues the cure to its completion, the thirty (30) day
period shall be extended to sixty (60) days, or such lesser period as is
reasonably necessary to complete the cure;

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

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

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

            (3) Any third party obtains a levy or attachment under process of
law against Tenant's leasehold interest.

      E. Abandonment Default. Tenant abandons the Premises for a period of
fifteen (15) consecutive calendar days.

                                      (18)
<PAGE>

      13. LANDLORD REMEDIES.

      A. Termination of Lease or Possession. If Tenant defaults, Landlord may
elect by notice to Tenant either to terminate this Lease or to terminate
Tenant's possession of the Premises without terminating this Lease. In either
case, Tenant shall immediately vacate the Premises and deliver possession to
Landlord, and Landlord may repossess the Premises and may, at Tenant's sole
cost, remove any of Tenant's signs and any of its other property, without
relinquishing its right to receive Rent or any other right against Tenant.
Without limiting the generality of the foregoing, upon the termination of this
Lease or the termination of Tenant's right of possession, it shall be lawful for
the 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.

      B. Lease Termination Damages. Except as otherwise provided in Section 13C,
if Tenant abandons the Premises prior to the end of the term hereof, or if
Tenant's right to possession is terminated by Landlord because of a default by
Tenant under this Lease, this Lease shall terminate by Landlord giving written
notice of its intent to terminate. Upon such termination, Landlord may recover
from Tenant the following, as provided in Section 1951.2 of the California Civil
Code: (i) the worth at the time of award of the unpaid 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 unpaid 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 of the amount by
which the unpaid 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% 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 1%.

      C. Continuation of Lease. Even if Tenant has 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.

                                      (19)
<PAGE>

      D. Possession Termination Damages. If Landlord terminates Tenant's right
to possession without terminating the Lease and Landlord takes possession of the
Premises itself, Landlord may relet any part of the Premises for such Rent, for
such time, and upon such terms as Landlord in its sole discretion shall
determine, without any obligation to do so prior to renting other vacant areas
in the Building. Any proceeds from reletting the Premises shall first be applied
to the expenses of reletting, including redecoration, repair, alteration,
advertising, brokerage, legal, and other reasonably necessary expenses. If the
reletting proceeds after payment of expenses are insufficient to pay the full
amount of Rent under this Lease, Tenant shall pay such deficiency to Landlord
monthly upon demand as it becomes due. Any excess proceeds shall be retained by
Landlord.

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

      F. WAIVER OF TRIAL BY JURY. EACH PARTY WAIVES TRIAL BY JURY IN THE EVENT
OF ANY LEGAL PROCEEDING BROUGHT BY THE OTHER IN CONNECTION WITH THIS LEASE. EACH
PARTY SHALL BRING ANY ACTION AGAINST THE OTHER IN CONNECTION WITH THIS LEASE IN
A FEDERAL OR STATE COURT LOCATED IN CALIFORNIA, CONSENTS TO THE JURISDICTION OF
SUCH COURTS, AND WAIVES ANY RIGHT TO HAVE ANY PROCEEDING TRANSFERRED FROM SUCH
COURTS ON THE GROUND OF IMPROPER VENUE OR INCONVENIENT FORUM.

      G. Litigation Costs. In any dispute for the enforcement of the provisions
of this Lease, the prevailing party shall be entitled to have its reasonable
attorneys' fees and other costs paid by the other party, whether or not suit is
filed.

      14. SURRENDER. Upon termination of this Lease or Tenant's right to
possession, Tenant shall return the Premises to Landlord in good order and
condition, ordinary wear and casualty damage excepted. If Landlord requires
Tenant to remove any alterations, then Tenant shall remove the alterations in a
good and workmanlike manner and restore the Premises to its condition prior to
their installation.

      15. HOLDOVER. If Tenant retains possession of any part of the Premises
after the Term, Tenant shall become a month-to-month tenant for the entire
Premises upon all of the terms

                                      (20)
<PAGE>

of this Lease as might be applicable to such month-to-month tenancy, except that
Tenant shall pay Base Rent, at 150% of the rate in effect immediately prior to
such holdover, computed on a monthly basis for each full or partial month Tenant
remains in possession. Tenant shall also pay Landlord all of Landlord's direct
and consequential damages. No acceptance of Rent or other payments by Landlord
under these holdover provisions shall operate as a waiver of Landlord's right to
regain possession or any other of Landlord's remedies.

      16. SUBORDINATION TO GROUND LEASES AND MORTGAGES.

      A. Subordination. This Lease shall be subordinate to any present or future
ground lease or mortgage respecting the Project, and any amendments to such
ground lease or mortgage, at the election of the ground lessor or mortgagee as
the case may be, effected by notice to Tenant in the manner provided in this
Lease. The subordination shall be effective upon such notice, but at the request
of Landlord or ground lessor or mortgagee, Tenant shall within ten (10) days of
the request, execute and deliver to the requesting party any reasonable
documents provided to evidence the subordination. Landlord shall use
commercially reasonable efforts to cause any ground lessor or mortgagee to
acknowledge in writing its agreement not to disturb Tenant's use and occupancy
of the Premises.

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

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

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

                                      (21)
<PAGE>

      E. Definitions. As used in this Section 16, "mortgage" shall include
"trust deed" and "mortgagee" shall include "trustee", "mortgagee" shall include
the mortgagee of any ground lessee, and "ground lessor", "mortgagee", and
"purchaser at a foreclosure sale" shall include, in each case, all of its
successors and assigns, however remote.

      17. ASSIGNMENT AND SUBLEASE.

      A. In General. Tenant shall not, without the prior consent of Landlord in
each case, (i) make or allow any assignment or transfer, by operation of law or
otherwise, of any part of Tenant's interest in this Lease, (ii) grant or allow
any lien or encumbrance, by operation of law or otherwise, upon any part of
Tenant's interest in this Lease, (iii) sublet any part of the Premises, or (iv)
permit anyone other than Tenant and its employees to occupy any part of the
Premises. Tenant shall remain primarily liable for all of its obligations under
this Lease, notwithstanding any assignment or transfer. No consent granted by
Landlord shall be deemed to be a consent to any subsequent assignment or
transfer, lien or encumbrance, sublease or occupancy. Tenant shall pay
Landlord's attorneys' fees and other expenses not to exceed one thousand dollars
$1,000) incurred in connection with any consent requested by Tenant or in
reviewing any proposed assignment or subletting. Any assignment or transfer,
grant of lien or encumbrance, or sublease or occupancy without Landlord's prior
written consent shall be void. If Tenant shall assign this Lease or sublet the
Premises in its entirety, any rights of Tenant to renew this Lease, extend the
Term or to lease additional space in the Project shall be extinguished thereby
and will not be transferred to the assignee or subtenant, all such rights being
personal to Somaxon Pharmaceuticals, Inc.

      B. Landlord's Consent. Landlord will not unreasonably withhold its consent
to any proposed assignment or subletting. It shall be reasonable for Landlord to
withhold its consent to any assignment or sublease if (i) Tenant is in default
(beyond any applicable cure period) under this Lease, (ii) the proposed assignee
or sublessee is a tenant in the Project or an affiliate of such a tenant or a
party with whom Landlord has recently communicated in writing about expanding
their space or becoming a prospective tenant in the Project (as applicable),
(iii) the financial responsibility, nature of business, and character of the
proposed assignee or subtenant are not all reasonably satisfactory to Landlord,
(iv) in the reasonable judgment of Landlord the purpose for which the assignee
or subtenant intends to use the Premises (or a portion thereof) is not in
keeping with Landlord's standards for the Building or are in violation of the
terms of this Lease or any other leases in the Project, (v) the proposed
assignee or subtenant is a government entity, or (vi) the proposed assignment is
for less than the entire Premises or for less than the remaining Term of the
Lease. The foregoing shall not exclude any other reasonable basis for Landlord
to withhold its consent.

      C. Procedure. Tenant shall notify Landlord of any proposed assignment or
sublease at least twenty (20) days prior to its proposed effective date. The
notice shall include the name and address of the proposed assignee or subtenant,
its corporate affiliates in the case of a corporation and its partners in a case
of a partnership, an execution copy of the proposed assignment or sublease, and
sufficient information (excluding tax returns) to permit Landlord to determine
the financial responsibility and character of the proposed assignee or
subtenant. As a condition to any effective assignment of this Lease, the
assignee shall execute and deliver in

                                      (22)
<PAGE>

form satisfactory to Landlord at least fifteen (15) days prior to the effective
date of the assignment, an assumption of all of the obligations of Tenant under
this Lease. As a condition to any effective sublease, subtenant shall execute
and deliver in form satisfactory to Landlord at least fifteen (15) days prior to
the effective date of the sublease, an agreement to comply with all of Tenant's
obligations under this Lease, and at Landlord's option, an agreement (except for
the economic obligations which subtenant will undertake directly to Tenant) to
attorn to Landlord under the terms of the sublease in the event this Lease
terminates before the sublease expires.

      D. Change of Management or Ownership. Any transfer of the direct or
indirect power to control the management or policies of Tenant or direct or
indirect change in 50% or more in the aggregate of the ownership interest in
Tenant shall constitute an assignment of this Lease, provided that
notwithstanding the foregoing, (i) any initial public offering of shares by
Tenant, (ii) any private venture financing by institutional investors that does
not result in a change in more than 50% of the members of Tenant's board of
directors, (iii) transfers among existing shareholders of shares or other
ownership interests in Tenant, or (iv) trades of shares on a stock exchange or
over the counter market that result in a change of ownership shall not be deemed
an assignment.

      E. Excess Payments. If Tenant shall assign this Lease or sublet any part
of the Premises for consideration in excess of the pro-rata portion of Rent
applicable to the space subject to the assignment or sublet, then Tenant shall
pay to Landlord as Additional Rent 50% of any such excess promptly after
receipt.

      F. Recapture. Landlord may, by giving written notice (the "Recapture
Notice") to Tenant within thirty (30) days after receipt of Tenant's notice of
subletting (but not of assignment) terminate this Lease with respect to the
space described in Tenant's notice, provided that for a period of ten (10)
business days after delivery of the Recapture Notice, Tenant may elect to
withdraw its notice of intent to sublet, in which event Landlord shall have no
right to terminate this Lease as to any portion of the Premises. The termination
shall be effective as of the date of the proposed sublease and all obligations
under this Lease as to such space shall expire except as to any obligations that
expressly survive any termination of this Lease.

      18. CONVEYANCE BY LANDLORD. If Landlord shall at any time transfer its
interest in the Project or this Lease, Landlord shall be released of any
obligations occurring after such transfer, except the obligation to return to
Tenant any security deposit not delivered to its transferee, and Tenant shall
look solely to Landlord's successors for performance of such obligations.
Subject to the provisions of Section 16, this Lease shall not be affected by any
such transfer.

      19. ESTOPPEL CERTIFICATE. Each party shall, within ten business (10) days
of receiving a request from the other party, execute, acknowledge in recordable
form, and deliver to the other party or its designee a certificate stating,
subject to a specific statement of any applicable exceptions, that the Lease as
amended to date is in full force and effect, that the Tenant is paying Rent and
other charges on a current basis, and that to the best of the knowledge of the
certifying party, the other party has committed no uncured defaults and has no
offsets or claims. The certifying party may also be required to state the date
of commencement of payment

                                      (23)
<PAGE>

of Rent, the Commencement Date, the Termination Date, the Base Rent, the current
Operating Cost Share Rent and Tax Share Rent estimates, the status of any
improvements required to be completed by Landlord, the amount of any security
deposit, and such other matters as may be reasonably requested. Failure to
deliver such statement within the time required shall be conclusive evidence
against the non-certifying party that this Lease, with any amendments identified
by the requesting party, is in full force and effect, that there are no uncured
defaults by the requesting party, that not more than one month's Rent has been
paid in advance, that the non-certifying party has not paid any security
deposit, and that the non-certifying party has no claims or offsets against the
requesting party.

      20. SECURITY DEPOSIT. Tenant shall deposit with Landlord on the date of
this Lease, security for the performance of all of its obligations in the amount
set forth on the Schedule. If Tenant defaults under this Lease, Landlord may use
any part of the Security Deposit to make any defaulted payment, to pay for
Landlord's cure of any defaulted obligation, or to compensate Landlord for any
loss or damage resulting from any default. To the extent any portion of the
deposit is used, Tenant shall within ten business (10) days after demand from
Landlord restore the deposit to its full amount. Landlord may keep the Security
Deposit in its general funds and shall not be required to pay interest to Tenant
on the deposit amount. If Tenant shall perform all of its obligations under this
Lease and return the Premises to Landlord at the end of the Term, Landlord shall
return all of the remaining Security Deposit to Tenant not later than thirty
(30) days after the delivery of possession of the Premises to Landlord. The
Security Deposit shall not serve as an advance payment of Rent or a measure of
Landlord's damages for any default under this Lease.

      Provided Tenant is not at the time in default of any obligation under this
Lease, Tenant shall be entitled to have the amount of one month's then Base Rent
applied to the payment of Base Rent for months 13, 25 and 31 of the Term, and
upon the application of such amounts, the amount of the Security Deposit
required hereunder shall be reduced accordingly, provided that in no event shall
the Security Deposit be reduced below the amount of monthly Base Rent payable
during the last Lease Year of the Term.

      If Landlord transfers its interest in the Project or this Lease, Landlord
shall either (a) transfer the portion of the Security Deposit then held by
Landlord to its transferee or (b) return to Tenant the portion of the Security
Deposit then held by Landlord and remaining after the deductions permitted
herein. Upon such transfer to such transferee or the return of the Security
Deposit to Tenant, Landlord shall have no further obligation with respect to the
Security Deposit, and Tenant's right to the return of the Security Deposit shall
apply solely against Landlord's transferee.

      Tenant waives the provision of California Civil Code Section 1950.7, and
all other provisions of law now in force or that become in force after the date
of execution of this Lease, that provide that Landlord may claim from a security
deposit only those sums reasonably necessary to remedy any defaults in the
payment of Rent, to repair damage caused by Tenant, or to clean the Premises.
Landlord and Tenant agree that Landlord, in addition, may claim those sums
reasonably necessary to compensate Landlord for any other foreseeable or
unforeseeable

                                      (24)
<PAGE>

loss or damage caused by the acts or omission of Tenant or Tenant's officers,
agents, employees, independent contractors, or invitees.

      21. FORCE MAJEURE. Neither Landlord nor Tenant shall be in default under
this Lease to the extent they are unable to perform any of their respective
obligations on account of any strike or labor problem, energy shortage,
governmental pre-emption or prescription, flood, earthquake, national emergency,
or any other cause of any kind beyond the reasonable control of the affected
party ("Force Majeure"); provided, however, that Tenant's payment of Rent shall
not be delayed by Force Majeure.

      22. INTENTIONALLY OMITTED.

      23. NOTICES. All notices, consents, approvals and similar communications
to be given by one party to the other under this Lease (including, without
limitation, any notice required by law to be given by Landlord to Tenant as a
condition to the filing of an action alleging an unlawful detainer of the
Premises and any three (3) day notice under Section 1161(2) or (3) of the
California Code of Civil Procedure), shall be given in writing, mailed or
personally delivered as follows:

      A. Landlord. To Landlord as follows:

            Square 24 Associates, L.P.
            c/o CarrAmerica Realty Corporation
            3100 South Bristol Street, Suite 428
            Costa Mesa, CA  92626
            Attn:  Managing Director

            with a copy to:

            Square 24 Associates, L.P.
            c/o CarrAmerica Realty Corporation
            1850 K Street, N.W., Suite 500
            Washington, D.C.  20006
            Attn:  Lease Administration

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

      B. Tenant. To Tenant as follows:

            Somaxon Pharmaceuticals, Inc.
            12750 High Bluff Drive, Suite 310
            San Diego, California  92130
            Attn:  Vice President, Finance and Administration

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

                                      (25)
<PAGE>

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

      24. QUIET POSSESSION. Subject to the provisions of Section 16, so long as
Tenant shall perform all of its obligations under this Lease, Tenant shall enjoy
peaceful and quiet possession of the Premises against any party claiming through
the Landlord.

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

      26. MISCELLANEOUS.

      A. Successors and Assigns. Subject to the limits on Tenant's assignment
contained in Section 17, the provisions of this Lease shall be binding upon and
inure to the benefit of all successors and assigns of Landlord and Tenant.

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

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

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

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

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

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

                                      (26)
<PAGE>

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

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

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

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

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

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

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

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

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

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

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

                                      (27)
<PAGE>

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

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

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

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

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

      X. Late Charge and Interest on Late Payments. Without limiting the
provisions of Section 12A, if Tenant fails to pay any installment of Rent or
other charge to be paid by Tenant pursuant to this Lease within five (5)
business days after the same becomes due and payable, then Tenant shall pay a
late charge equal to the greater of five percent (5%) of the amount of such
payment or $250. In addition, interest shall be paid by Tenant to Landlord on
any late payments of Rent from the date due until paid at the rate provided in
Section 2D(2). Such late charge and interest shall constitute additional Rent
due and payable by Tenant to Landlord upon the date of payment of the delinquent
payment referenced above.

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

      28. HAZARDOUS SUBSTANCES.

      A. Tenant shall not cause or permit any Hazardous Substances to be brought
upon, produced, stored, used, discharged or disposed of in or near the Project
unless Landlord has consented to such storage or use in its sole discretion. If
any lender or governmental agency shall require testing for Hazardous Substances
in the Premises, Tenant shall pay for such testing.

      B. "Hazardous Substances" or "Hazardous Materials" means (a) any chemical,
compound, material, mixture or substance that is now or hereafter defined or
listed in, or otherwise classified pursuant to, any Environmental Laws as a
"hazardous substance", "hazardous material", "hazardous waste", "extremely
hazardous waste", "acutely hazardous waste", "radioactive waste", "infectious
waste", "biohazardous waste", "toxic substance", "pollutant", "toxic pollutant",
"contaminant" as well as any formulation not mentioned herein intended to
define, list, or classify substances by reason of deleterious properties such as

                                      (28)
<PAGE>

ignitability, corrosivity, reactivity, carcinogenicity, toxicity, reproductive
toxicity, "EP toxicity", or "TCLP toxicity"; (b) petroleum, natural gas, natural
gas liquids, liquefied natural gas, synthetic gas usable for fuel (or mixtures
of natural gas and such synthetic gas) and ash produced by a resource recovery
facility utilizing a municipal solid waste stream, and drilling fluids, produced
waters and other wastes associated with the exploration, development or
production of crude oil, natural gas, or geothermal resources; (c) "hazardous
substance" as defined in Section 25281(f) of the California Health and Safety
Code; (d) "waste" as defined in Section 13050(d) of the California Water Code;
(e) asbestos in any form; (f) urea formaldehyde foam insulation; (g)
polychlorinated biphenyls (PCBs); (h) radon; and (i) any other chemical,
material, or substance exposure to which is limited or regulated by any
Governmental Agency because of its quantity, concentration, or physical or
chemical characteristics, or which poses a significant present or potential
hazard to human health or safety or to the environment if released into the
workplace or the environment. "Hazardous Substances" shall not include ordinary
office supplies and repair, maintenance and cleaning supplies maintained in
reasonable and necessary quantities and used in accordance with all
Environmental Laws. "Environmental Laws" means any and all present and future
federal, state and local laws, ordinances, regulations, policies and any other
requirements of any Governmental Agency relating to health, safety, the
environment or to any Hazardous Substances, including without limitation, the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980
(CERCLA), the Resource Conservation Recovery Act (RCRA), the Hazardous Materials
Transportation Act, the Toxic Substance Control Act, the Endangered Species Act,
the Clean Water Act, the Occupational Safety and Health Act, the California
Environmental Quality Act and the applicable provisions of the California Health
and Safety Code, California Labor Code and the California Water Code, each as
hereafter amended from time to time, and the present and future rules,
regulations and guidance documents promulgated under any of the foregoing.

      C. Without limiting Tenant's liability and obligations under Sections
28(D), (E), (F) and (G), the foregoing covenant set forth in Section 28(A) shall
not extend to insignificant amounts of substances typically found or used in
general office applications so long as (i) such substances are maintained only
in such quantities as are reasonably necessary for Tenant's operations in the
Premises, (ii) such substances are used strictly in accordance with the
manufacturers' instructions therefor and all applicable Environmental Laws,
(iii) such substances are not disposed of in or about the Project in a manner
which would constitute a release or discharge thereof, and (iv) all such
substances are removed from the Project by Tenant upon the expiration or earlier
termination of this Lease. Tenant shall, within thirty (30) days after demand
therefor, provide to Landlord a written list identifying any Hazardous Materials
then maintained by Tenant in the Building, the use of each such Hazardous
Material so maintained by Tenant together with written certification by Tenant
stating, in substance, that neither Tenant nor any person for whom Tenant is
responsible has released or discharged any Hazardous Materials in or about the
Project.

      D. In order to obtain Landlord's consent under this Section 28 with
respect to any Hazardous Material other than as specified in Section 28(C)
above, Tenant shall first submit a detailed hazardous material management plan
describing all relevant aspects of the same to Landlord for approval, which
approval may be withheld by Landlord in its sole and absolute discretion. No
approval by Landlord shall relieve Tenant of any obligation of Tenant pursuant
to

                                      (29)
<PAGE>

this Section 28, including all removal, clean-up and indemnification
obligations. Tenant shall, within five (5) days after receipt thereof, furnish
to Landlord copies of all notices or other communications received by Tenant
with respect to any actual or alleged release or discharge of any Hazardous
Material in or about the Premises or the Project and shall, whether or not
Tenant receives any such notice or communication, notify Landlord in writing of
any discharge or release of Hazardous Material by Tenant or anyone for whom
Tenant is responsible in or about the Premises or the Project. In the event
Tenant is required to maintain any hazardous materials license or permit in
connection with any use conducted by Tenant or any equipment operated by Tenant
in the Premises, copies of each such license or permit, each renewal thereof,
and any communication relating to suspension, renewal or revocation thereof
shall be furnished to Landlord within five (5) days after receipt thereof by
Tenant. Compliance by Tenant with this Section 28(C) shall not relieve Tenant of
any other obligation of Tenant pursuant to this Section 28.

      E. Upon any violation of the foregoing covenants and in all events upon
any expiration of the Term, Tenant shall be obligated, at Tenant's sole cost, to
clean up and remove from the Project all Hazardous Materials introduced into the
Project by Tenant or any third party for whom Tenant is responsible. Such
clean-up and removal shall include all testing and investigation required by any
governmental authorities having jurisdiction and preparation and implementation
of any remedial action plan required by any governmental authorities having
jurisdiction. All such clean-up and removal activities of Tenant shall, in each
instance, be conducted to the satisfaction of Landlord and all governmental
authorities having jurisdiction. Landlord's right of entry pursuant to Section
11 of this Lease shall include the right (but not the obligation) to enter and
inspect the Premises for violations of Tenant's covenant herein and to supervise
any of Tenant's clean-up and removal activities.

      F. To the extent permitted by then applicable law, Tenant shall protect,
indemnify, defend and hold harmless Landlord, the partners of any entity
constituting Landlord and Landlord's partners, officers, employees, agents,
lenders and attorneys from and against any and all claims, liabilities, losses,
actions, costs and expenses (including attorneys' fees and costs of defense)
incurred by such indemnified persons, or any of them, as the result of (i) the
introduction into the Project by Tenant, its employees, agents, licensees,
invitees, contractors or any other person or entity for whom Tenant is
responsible of any Hazardous Material, (ii) the usage by Tenant or anyone for
whom Tenant is responsible of Hazardous Materials in or about the Project, (iii)
the discharge or release in or about the Project by Tenant or anyone for whom
Tenant is responsible of any Hazardous Material, (iv) any injury to or death of
persons or damage to or destruction of property resulting from the use by Tenant
or anyone for whom Tenant is responsible of Hazardous Materials in or about the
Project, and (v) any failure of Tenant or anyone for whom Tenant is responsible
to observe the foregoing covenants. Payment shall not be a condition precedent
to enforcement of the foregoing indemnification provision.

      G. Upon any violation of any of the foregoing covenants, Landlord shall be
entitled to exercise all remedies available to a landlord against the defaulting
tenant, including but not limited to those set forth in Section 13 of this
Lease. Without limiting the generality of the foregoing, Tenant expressly agrees
that upon any such violation Landlord may, at its option (i) immediately
terminate this Lease, or (ii) continue this Lease in effect until compliance by

                                      (30)
<PAGE>

Tenant with its clean-up and removal covenant (notwithstanding the expiration of
the term of this Lease). No action by Landlord hereunder shall impair the
obligations of Tenant pursuant to this Section 28.

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

      30. EXTENSION OPTION. Subject to Subsections B and C below, Tenant may at
its option extend the Term of this Lease for the entire Premises for one period
of one (1) year (the "Renewal Term") upon the same terms contained in this
Lease, excluding the provisions of Appendix C of this Lease and except for the
amount of Base Rent payable during the Renewal Term. Tenant shall have no
additional extension options.

      A. The Base Rent during the Renewal Term shall be the then prevailing
Market Rate for a comparable term commencing on the first day of the Renewal
Term for non-renewing tenants of comparable size and creditworthiness for
comparable space in the Building and other first class office buildings in the
Del Mar Heights area as reasonably determined by Landlord.

      B. To exercise any option, Tenant must deliver a notice to Landlord not
less than six (6) months nor more than twelve (12) months prior to the proposed
commencement of the Renewal Term. Thereafter, the Market Rate for the Renewal
Term shall be calculated pursuant to Subsection C below and Landlord shall
inform Tenant of Landlord's determination of the Market Rate. Such calculations
shall be final and shall not be recalculated at the actual commencement of the
Renewal Term. If Tenant fails to timely give its notice of exercise, Tenant will
be deemed to have waived its option to extend.

      C. "Market Rate" shall be determined as follows:

            (1) If Tenant provides Landlord with its notice of exercise pursuant
to Subsection B above, then within thirty (30) days after receipt of Tenant's
notice, Landlord shall calculate and inform Tenant of Landlord's determination
of the Market Rate. If Tenant rejects the Market Rate as calculated by Landlord,
Tenant shall inform Landlord of its rejection within ten (10) days after
Tenant's receipt of Landlord's calculation, and Landlord and Tenant shall
commence negotiations to agree upon the Market Rate. If Tenant fails to timely
reject Landlord's calculation of the Market Rate it will be deemed to have
accepted such calculation. If Landlord and Tenant are unable to reach agreement
within twenty-one (21) days after Landlord's receipt of Tenant's notice of
rejection, then the Market Rate shall be determined in accordance with (2)-(4)
below.

            (2) If Landlord and Tenant are unable to reach agreement on the
Market Rate within said twenty-one (21) day period, then within seven (7) days,
Landlord and Tenant shall each simultaneously submit to the other in a sealed
envelope its good faith estimate of the Market Rate. If the higher of such
estimates is not more than one hundred five percent (105%)

                                      (31)
<PAGE>

of the lower, then the Market Rate shall be the average of the two. Otherwise,
the dispute shall be resolved by arbitration in accordance with (3) and (4)
below.

            (3) Within seven (7) days after the exchange of estimates, the
parties shall select as an arbitrator an independent MAI appraiser with at least
five (5) years of experience in appraising office space in the area in which the
Project is located (a "Qualified Appraiser"). If the parties cannot agree on a
Qualified Appraiser, then within a second period of seven (7) days, each shall
select a Qualified Appraiser and within ten (10) days thereafter the two
appointed Qualified Appraisers shall select a third Qualified Appraiser and the
third Qualified Appraiser shall be the sole arbitrator. If one party shall fail
to select a Qualified Appraiser within the second seven (7) day period, then the
Qualified Appraiser chosen by the other party shall be the sole arbitrator.

            (4) Within twenty-one (21) days after submission of the matter to
the arbitrator, the arbitrator shall determine the Market Rate by choosing
whichever of the estimates submitted by Landlord and Tenant the arbitrator
judges to be more accurate. The arbitrator shall notify Landlord and Tenant of
its decision, which shall be final and binding. If the arbitrator believes that
expert advice would materially assist him, the arbitrator may retain one or more
qualified persons to provide expert advice. The fees of the arbitrator and the
expenses of the arbitration proceeding, including the fees of any expert
witnesses retained by the arbitrator, shall be paid by the party whose estimate
is not selected. Each party shall pay the fees of its respective counsel and the
fees of any witness called by that party.

      D. Tenant's option to extend this Lease is subject to the conditions that:
(i) on the date that Tenant delivers its notice exercising its option to extend,
Tenant is not in default under this Lease after the expiration of any applicable
notice and cure periods, and (ii) Tenant shall not have assigned this Lease or
sublet any portion of the Premises under a sublease which is in effect at any
time during the final 12 months of the initial Term or the first Renewal Term.

      E. The Extension Option is personal to the original Tenant under this
Lease, and may not be exercised by any assignee or subtenant without Landlord's
written consent.

      31. TERMINATION OPTION. Tenant may at its option terminate this Lease in
its entirety (the "Termination Option") effective as of the first day of the
third (3rd) Lease Year (the "Early Termination Date") by delivering notice of
its intent to terminate (the "Termination Notice") to Landlord at least six (6)
calendar months before the Early Termination Date accompanied by payment of the
Termination Fee (as hereinafter defined). If Tenant fails to timely deliver its
Termination Notice and pay the Termination Fee, Tenant will be deemed to have
waived such Termination Option.

If there are any uncured defaults by Tenant as of the date Tenant delivers the
Termination Notice or as of the Early Termination Date, the Termination Option
shall be void, and the Lease shall remain in effect. If Tenant properly
exercises its Termination Option, this Lease shall terminate as of the Early
Termination Date.

                                      (32)
<PAGE>

The "Termination Fee" shall be an amount equal to three (3) monthly payments of
then Base Rent, which Landlord may deduct from the Security Deposit.

Notwithstanding the foregoing, if Tenant leases other space from CarrAmerica
Realty Corporation under the terms of a new lease commencing substantially
contemporaneously with the termination of this Lease, the Termination Fee shall
not be payable by Tenant.

                       SIGNATURES APPEAR ON FOLLOWING PAGE

                                      (33)
<PAGE>

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

                           LANDLORD:

                           SQUARE 24 ASSOCIATES, L.P.,
                           a District of Columbia limited partnership

                           By: Carr Real Estate Services, L.L.C.,
                               Its General Partner

                               By: Carr Real Estate Services Partnership,
                                   Its Sole Member

                                   By: Carr Realty L.P.,
                                       Its Managing Partner

                                       By: CarrAmerica Realty Corporation,
                                           Its General Partner

                                           By: /s/ W.M. O'Donnell, Jr.
                                               ---------------------------------
                                           Print Name:  W.M. O'Donnell, Jr.
                                           Print Title: Managing Director

                               TENANT:

                               SOMAXON PHARMACEUTICALS, INC.,
                               a Delaware corporation

                               By: /s/ Meg M. McGilley
                                   ---------------------------------------------
                               Print Name:  Meg M. McGilley
                               Print Title: Vice President Finance and
                               Administration

                                      (34)<PAGE>

                                                                   Exhibit 10.14

                                    SUBLEASE

1.    PARTIES.

      This Sublease ("Sublease"), dated as of June 15, 2005, is made between
Ascenta Therapeutics, Inc., a Delaware corporation ("Sublessor"), and Somaxon
Pharmaceuticals, Inc., a Delaware corporation ("Sublessee"). The date on which
this Sublease is fully executed by the parties hereto, as indicated on the
signature page to this Sublease, shall be the "Effective Date."

2.    MASTER LEASE.

      Sublessor is the tenant under that certain Lease dated April 21, 2004 (the
"Master Lease"), wherein Square 24 Associates L.P., a District of Columbia
limited partnership ("Lessor") leased to Sublessor approximately 3,221 rentable
square feet of premises located in the City of San Diego, County of San Diego,
State of California, commonly known as 12750 High Bluff Drive, Suite 320, San
Diego, California 92130 ("Master Premises").

3.    PREMISES.

      (a) Location of Premises. Sublessor hereby subleases to Sublessee, and
Sublessee subleases from Sublessor, on the terms and conditions set forth in
this Sublease the entire Master Premises (the "Premises").

      (b) Condition of Premises. Sublessee shall accept the Premises in as-is
condition upon tender thereof to Sublessee by Sublessor.

4.    SUBLESSOR WARRANTY AND COVENANTS.

      (a) Sublessor Warranties. Sublessor warrants, represents and covenants to
Sublessee that: (i) Sublessor is not now, and as of the Effective Date will not
be, in material default or breach of any of the provisions of the Master Lease;
(ii) Sublessor has no knowledge of any material default by Lessor under the
Master Lease or any claim by Lessor that Sublessor is in default or breach of
any of the provisions of the Master Lease; (iii) Sublessor shall not take any
action or omit to take any action that would result in a material default or
breach of the Master Lease or, except in case of a breach of this Sublease by
Sublessee, otherwise cause a termination of the Master Lease prior to the
expiration of the Term (as defined in Section 5 below) without Sublessee's prior
written consent which may be withheld in its sole and absolute discretion; (iv)
the Master Lease has not been modified or amended, is in full force and effect
and represents the entire agreement between Sublessor and Lessor relating to the
Premises; and (v) Sublessor shall not modify or amend the Master Lease in any
manner without Sublessee's prior written consent which may be withheld in its
sole and absolute discretion.

      (b) Sublessor Covenants. Provided Sublessee is timely paying its rent
(pursuant to Section 7 below) and Sublessee's proportionate share (pursuant to
Section 8 below), Sublessor covenants and agrees with Sublessee that Sublessor
will timely pay all "Annual Rent" (as defined in the Master Lease) and
"Operating Cost " and "Taxes" (each as defined in the Master Lease) payable by
Sublessor pursuant to the Master Lease. Notwithstanding the foregoing, (i)
Sublessor shall cooperate with Sublessee, at no cost to Sublessor, in seeking to
obtain the performance of Lessor under the Master Lease and (ii) Sublessor shall
not commit any act or omission that will result in the intentional violation any
of the provisions of the Master Lease. Upon Sublessee's written request,
Sublessor shall endeavor to enforce its rights under the Master Lease for
Sublessee's benefit, including, but not limited to, giving notices, claims and
demands to and on Lessor; provided, however, that Sublessor shall not be under
any duty to institute legal action against Lessor for any reason.
Notwithstanding the foregoing, if Sublessor materially defaults in any of its
monetary obligations under the Master Lease (unless such default is caused by
Sublessee's failure to pay amounts as and when due under this Sublease), or if
Sublessor becomes insolvent, becomes the subject of a bankruptcy or similar
insolvency proceeding and/or admits in writing its inability to pay its debts as
they become due, Sublessee shall have the right to pay Rent, Operating Cost and
Taxes directly to Lessor.

                                      -1-
<PAGE>

5.    TERM.

      The term of this Sublease ("Term") shall commence five (5) days after
Sublessor has delivered to Sublessee written notice that Sublessor has vacated
the Premises, but not later than June 15, 2005 (the "Commencement Date"). The
Term shall expire coterminous with the Master Lease on April 30, 2006 and
terminate on such date. Sublessee shall be granted occupancy of the Premises on
the Commencement Date.

6.    USE.

      Sublessee may use the Premises for any use permitted under the Master
Lease and for no other purpose.

7.    RENT.

      Sublessee shall pay to Sublessor as rent ("Rent"), without deduction,
setoff, notice or demand, at the address set forth in Section 15 below, or at
such other place as Sublessor shall designate from time to time by written
notice to Sublessee, the following sums:

            Commencement Date - April 30, 2006          $8,294.08 per month

on the first day of each month of the Term. If the Term begins on a day other
than the first day of a month, the Rent for the partial months shall be prorated
on a per diem basis based on the actual number of days in the month in which the
Sublease commences. Notwithstanding anything contained herein to the contrary,
Sublessee shall have no obligation to make any payments of Rent or any other
amounts required under Section 8 and Sublessor shall have no duty to deliver the
Premises to Sublessee, unless and until Lessor has executed and delivered to
Sublessor a consent to this Sublease ("Consent") in form and substance
satisfactory to Sublessor.

      Sublessee shall pay to Sublessor upon delivery by Lessor of its Consent
the sum of twenty-four thousand eight hundred eighty-two and 24/100 dollars
($24,882.24) as security deposit in accordance with paragraph 9 below.

8.    SUBLESSEE'S PROPORTIONATE SHARE.

      Notwithstanding anything contained in the Master Lease or this Sublease to
the contrary, Sublessee's proportionate share ("Sublessee's Proportionate
Share") of "Operating Cost " and "Taxes" (each as defined in the Master Lease)
in excess of the Base Year amounts shall be eight and fifty-seven hundredths
percent (8.57%) of the building rentable area. Sublessee shall pay Sublessee's
Proportionate Share of Operating Cost and Taxes to Sublessor on the terms and
conditions set forth in the Master Lease. Gas and electricity shall be paid by
Sublessee as provided in the Master Lease.

9.    REPLACEMENT FUNDS

      Sublessee shall pay to Sublessor upon Sublessee's execution of this
Sublease twenty-four thousand eight hundred eighty-two and 24/100 dollars
($24,882.24) (the "Replacement Funds") to replace Sublessor's deposit with
Lessor under the Master Lease (the "Master Deposit"). Upon Sublessor's receipt
of the Security Deposit, Sublessor agrees to assign, and does hereby irrevocably
assign, to Sublessee all of Sublessor's right and title in and to the Master
Deposit being held by Lessor. Accordingly, the Replacement Funds shall be
retained and fully earned by Sublessor upon its receipt of the same and
nonrefundable to Sublessee, and Sublessee shall have all the rights and
obligations in connection with the Master Deposit being held by Lessor under
Section 20 of the Master Lease, including, but not limited to, the right to the
periodic return of the same from Lessor during the 18th and 22nd months of the
term of the Master Lease and the return of the balance at the end of such term
(all of which are subject to the terms of the Master Lease).

                                      -2-
<PAGE>

10.   PARKING.

      Notwithstanding Section 42 of the Master Lease to the contrary, Sublessee
shall be entitled to the non-exclusive use of thirteen (13) parking spaces in
the parking area. All such parking shall be at no cost to Sublessee.

11.   SIGNAGE.

      Sublessee does not have any signage rights, except as to directory and
standard door plaque. The cost of all such signs, including the installation,
maintenance and removal thereof, shall be at Sublessee's sole cost and expense.
Sublessor shall use good faith efforts to remove any of its existing signage at
the Premises or the Building, at Sublessor's cost, as soon as reasonably
practicable, but in no event more than fifteen (15) days following Sublessee's
and Sublessor's execution of this Sublease and approval of this Sublease by
Lessor. All such signage shall also comply with all provisions of the Master
Lease applicable thereto.

12.   OTHER PROVISIONS OF MASTER LEASE.

      (a) Incorporation of Master Lease. All applicable terms and conditions of
the Master Lease are incorporated into and made a part of this Sublease as if
Sublessor were the landlord thereunder, Sublessee the tenant thereunder, and the
Premises were the Master Premises thereunder, except as set forth in Section
12(b) below. Sublessee assumes and agrees to perform the obligations of "Tenant"
under the Master Lease during the Term to the extent that such obligations are
applicable to the Premises, except that the obligation to pay "Annual Rent",
"Operating Cost" and "Taxes" to Lessor under the Master Lease shall be
considered performed by Sublessee to the extent and in the amount Rent is paid
to Sublessor in accordance with Sections, 7 and 8 of this Sublease.. Sublessee
shall not commit or suffer any act or omission that will violate any of the
provisions of the Master Lease. If the Master Lease terminates for any reason
other than Sublessor's default, this Sublease shall terminate and the parties
shall be relieved of any further liability or obligation under this Sublease
except to the extent of any then pending or accrued claims.

      (b) Exclusions from Master Lease. Notwithstanding anything contained in
this Sublease or the Master Lease to the contrary, the incorporation of the
Master Lease provisions into this Sublease shall not include the following
provisions of the Master Lease:

            (i) From the Reference Page, the following definitions: "Termination
Date," "Term of Lease," "Initial Annual Rent," "Initial Monthly Installment of
Annual Rent," "Tenant's Proportionate Share" and "Real Estate Broker Due
Commission";

            (ii) Clauses A and B of Section 3;

            (iii) Section 23;

            (iv) Section 30; and

            (v) Appendix C

      In the event of any inconsistency between the terms of this Sublease and
the Master Lease, the terms of this Sublease will govern and control the rights
and obligations of Sublessor and Sublessee.

13.   DEFAULT/ATTORNEYS' FEES.

      In the event Sublessee fails to timely pay Rent, Sublessee's Proportionate
Share or any other amounts as and when due under this Sublease, or commits any
other default or breach of this Sublease, Sublessor shall, except to the extent
limited by the Master Lease or this Sublease, be entitled to exercise all
remedies available under California law including but not limited to,
terminating this Sublease and recovering damages under Civil Code Section
1951.2, or the remedy described in California Civil Code Section 1951.4.
Sublessor may, but shall not be obligated to, continue this Sublease in effect
after Sublessee's breach and abandonment and recover

                                      -3-
<PAGE>

Rent and other sums due hereunder as they become due. Without limiting the
foregoing, in the event that either party hereto commits a material default or
breach of this Sublease, the other party shall be entitled to exercise all
remedies available to it under California law. If Sublessor or Sublessee shall
commence an action against the other arising out of or in connection with this
Sublease, the prevailing party shall be entitled to recover its costs of suit
and reasonable attorneys' fees.

14.   AGENCY DISCLOSURE.

      Sublessor and Sublessee each warrant that they have dealt with no other
real estate broker in connection with this transaction except CarrAmerica Realty
Corporation, who represents Sublessor and Sublessee.

15.   NOTICES.

      All notices and demands that may or are to be required or permitted to be
given by either party on the other hereunder shall be in writing and shall be
mailed, sent by facsimile with a transmission report of receipt, or personally
delivered to the applicable party at the address set forth below, or to such
other place as either party may from time to time designate in a notice to the
other party:

If to Sublessor: Ascenta Therapeutics, Inc.
                 11455 E1 Camino Real, Suite 460
                 San Diego, California 92130
                 Fax: (866) 443-6791
                 Attn: Lynne Rollins

If to Sublessee: Somaxon Pharmaceuticals, Inc.
                 12750 High Bluff Drive, Suite 310
                 San Diego, California 92130
                 Fax: (858) 509-1589
                 Attn: Meg M. McGilley, Vice President & Chief Financial Officer

      In addition, Sublessor agrees to forward to Sublessee, promptly upon
receipt thereof by Sublessor, a copy of each notice given or received by
Sublessor in its capacity as tenant under the Master Lease.

16.   QUIET ENJOYMENT.

      So long as Sublessee pays all Rent and other sums due hereunder and
performs all of Sublessee's other obligations hereunder, Sublessee may peaceably
and quietly have, hold and enjoy the Premises during the Term as against all
persons and entities lawfully claiming by and through Sublessor.

17. CONSENT BY LESSOR. THIS SUBLEASE SHALL BE OF NO FORCE OR EFFECT UNLESS
CONSENTED TO BY LESSOR WITHIN TEN (10) DAYS AFTER EXECUTION HEREOF, IF SUCH
CONSENT IS REQUIRED UNDER THE TERMS OF THE MASTER LEASE.

18.   ENTIRE AGREEMENT.

      There are no oral agreements between the parties hereto affecting this
Sublease and this Sublease supersedes and cancels any and all previous
negotiations, arrangements, brochures, agreements and understandings, if any,
between the parties hereto or displayed by Sublessor to Sublessee with respect
to the subject matter thereof, and none thereof shall be used to interpret or
construe this Sublease. This Sublease contains all of the terms, covenants,
conditions, warranties and agreements of the parties relating in any manner to
the rental, use and occupancy of the Premises and shall be considered to be the
only agreements between the parties hereto and their representatives and agents.
None of the terms, covenants, conditions or provisions of this Sublease can be
modified, deleted or added to except in writing signed by the parties hereto.
All negotiations and oral agreements acceptable to both parties have been merged
into and are included herein.

                                      -4-
<PAGE>

There are no other representations or warranties between the parties, and all
reliance with respect to representations is based totally upon the
representations and agreements contained in this Sublease. This Sublease may be
executed in counterparts, which, when taken together, shall constitute a single
document.

      [Remainder of page intentionally left blank - signature page follows]

                                      -5-
<PAGE>

SUBLESSOR:                                     SUBLESSEE:

Ascenta Therapeutics, Inc.                     Somaxon Pharmaceuticals, Inc.
a corporation                                  a corporation

By: /s/ Lynne R. Rollins                       By: /s/ Meg McGilley
    ----------------------                         -----------------

Name: Lynne R. Rollins                         Name: Meg McGilley

Title: CFO                                     Title: CFO

Date: June 15, 2005                            Date: June 20, 2005

                                      -6-

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