Document:

OFFICE LEASE

THIS LEASE is made as of the 28th day of August, 1996, by and between Landlord
and Tenant.
                                   WITNESSETH:

1.       TERMS AND DEFINITIONS. For the purposes of this Lease, the following
terms shall have the following definitions and meanings:

Landlord:       LUM KIP KEE, LIMITED, a Hawaii Corporation, and SAN TEI COMPANY,
                a Hawaii limited partnership, doing business as Sandalwod Land
                Company

Landlord's Address:        C/O KCS Properties, Inc.
                           7919 Folsom Boulevard, Suite 300
                           Sacramento, California 95826

Tenant:                    AMERICAN RIVER BANK, a California corporation

Building Address:          2240 Douglas Boulevard
                           Roseville, California

Suite Number:              100

Premises:                  Those certain premises defined in Subparagraph 2(a)
                           hereinbelow

Rentable Area of Premises: Agreed to be 3790 square feet

Floor upon which the
Premises are located:      First

Term:                      Ten (10) years

Allowance Work:            All the work to be done at Landlord's expense in the
                           Premises pursuant to the provisions of the Work
                           Letter Agreement described in Paragraph 2 below.

Above-Allowance Work:      All the work to be done in the Premises by Landlord
                           pursuant to the provisions of the Work Letter
                           Agreement other than Allowance Work

Leasehold Improvements:    The aggregate of Allowance Work and Above-Allowance
                           Work

Commencement Date:         See Paragraph 3

Annual Basic Rent:
                           Months 1-30     $6253.50      (Annual = $75,042.00)
                           Months 31-60     6897.80      (Annual =  82,773.60)
                           Months 61-90     7428.40      (Annual =  89,140.80)
                           Months 91-120    8034.80      (Annual =  96,417.60)

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Direct Expenses Base:      Actual expenses for 1997 (subject to the provisions
                           of Paragraph 6)

Tenant's Percentage:       8.89% (subject to provisions of Paragraph 6)

Security Deposit:          No security deposit has been paid.

Landlord's Broker.         Aguer Pipgras Associates

Tenant's Broker:           Colliers Iliff Thorn

Applicable Transportation  Placer County and City of Roseville
Management Agreement(s) Ordinance(s):

2.       PREMISES AND COMMON AREAS LEASED.

(a) Landlord hereby leases to Tenant and Tenant hereby leases from Landlord, the
Premises contained within the suite designated in Paragraph 1, outlined on the
Floor Plan attached hereto and marked EXHIBITS "A" and "A-1" and incorporated
herein by this reference, and improved by Landlord with the Leasehold
Improvements described in the Work Letter Agreement, a copy of which is attached
hereto and marked EXHIBIT "B" and incorporated herein by this reference, said
Premises being agreed, for the purposes of this Lease, to have an area
approximately the number of square feet designated in Paragraph 1 and being
situated on the Floor(s) designated in Paragraph 1, of that certain office
building located at the address designated in Paragraph 1 (hereinafter called
"Building"). The definition of the Premises specifically includes the automatic
teller machine and night depository (collectively, "ATM") to be installed by
Tenant outside the Suite designated on page 1 of this Lease in the location
shown on EXHIBIT "A". The Premises exclude the common stairways, stairwells,
hallways, accessways, elevator shafts, flues, pipe shafts, vertical ducts,
conduits, wires and appurtenant fixtures serving exclusively for or in common
with other parts of the Building. By taking possession of the Premises, Tenant
accepts the Leasehold Improvements as completed or as substantially completed,
and in the latter case, any incomplete or corrective items will be completed by
Landlord in accordance with the procedure for "punchlist" items set forth in the
Work Letter Agreement.

The parties hereto agree that said letting and hiring is upon and subject to the
terms, covenants and conditions herein set forth and Tenant covenants as a
material part of the consideration for this Lease to keep and perform each and
all of said terms, covenants and conditions by it to be kept and performed and
that this Lease is made upon on the condition of such performance.

         Tenant acknowledges and agrees that this Lease shall be subject and
subordinate to the terms and conditions of any and all covenants, conditions or
restrictions now or hereafter affecting the Building (the "COVENANTS, CONDITIONS
& RESTRICTIONS").

         (b) Tenant shall have the nonexclusive right to use in common with
other tenants in the Building and subject to the Rules and Regulations referred
to in Paragraph 30 below, the following areas appurtenant to the Premises:

                  (1) The common entrances, lobbies, restrooms, elevators,
stairways, and accessways, loading docks, ramps, drives and platforms and any
passageways and serviceways thereto, and the common pipes, conduits, wires and
appurtenant equipment serving the Premises (except to the extent exclusively
leased by Landlord to other tenants);

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                  (2) Common walkways and sidewalks Pals necessary for access to
the Building maintained by Landlord.

         (c) Landlord reserves the right from time to time without unreasonable
interference with Tenant's use:

                  (1) To install, use, maintain, repair and replace pipes,
ducts, conduits, wires and appurtenant meters and equipment for service to other
parts of the Building above the ceiling surfaces, below the floor surfaces,
within the walls and in the central core areas, and to relocate any pipes,
ducts, conduits, wires and appurtenant meters and equipment included in the
Premises which are located in the Premises or located elsewhere outside the
Premises, and to expand the Building;

                  (2)      To alter or relocate any other common facility.

         (d) The "USABLE AREA" of the Premises, measured in accordance with the
American National Standard Method of Measuring Floor Area in Office Buildings,
ANSI Z65.1-1980, published by the Building Owners and Managers Association
International, is agreed to be 3,445 square feet. The term "RENTABLE AREA" as
used in this Lease is agreed to be as provided in Section 1, above, determined
by multiplying the Usable Area by 10%.

         (e) Tenant agrees to cooperate with any private or governmental efforts
to reduce the traffic generated by the Building as required by any applicable
Ridesharing Ordinance, Transportation Management Agreement, or Building
Transportation Management Plan (collectively the "TRANSPORTATION PLAN") and any
similar or successor ordinances, laws or agreements. Before signing this Lease,
Tenant shall have reviewed the applicable Transportation Plan documents
referenced in Paragraph 1 above and agrees to comply with the provisions thereof
which are relevant to Tenant and its employees. Tenant further agrees that upon
Landlord's request it will designate one of its employees to act as a liaison
with Landlord to facilitate and coordinate the administration of the
aforementioned traffic reduction efforts.

         3. TERM. The term of this Lease shall commence (the "Commencement
Date") on the earlier of (a) the date possession of the Premises is delivered to
Tenant with the Leasehold Improvements (but not including the ATM) substantially
completed; or (b) the date Tenant commences business operations from the
Premises. For purposes of this Lease, substantial completion of the Leasehold
Improvements is deemed to occur on the issuance of a temporary certificate of
occupancy by the City of Roseville permitting Tenant to occupy the Premises.
Landlord agrees to deliver possession of the Premises to Tenant on a Thursday.
The Lease shall terminate on the tenth anniversary of the Commencement Date of
the Lease, unless the term hereby demised shall be sooner terminated as
hereinafter provided.

         4. POSSESSION. Landlord agrees that in the event of the inability of
Landlord to deliver possession of the Premises to Tenant on or before December
19, 1996, Tenant shall have the right to terminate the Lease by sending written
notice to Landlord, which notice shall be effective ten (10) days from receipt
by Landlord unless Landlord delivers possession of the Premises to Tenant with
the Leasehold Improvements substantially competed during the ten (10)-day
period. The December 19, 1996 date shall be extended for each day of Tenant
delay as described in paragraph 12 of the Work Letter Agreement attached hereto
as Exhibit B. Landlord shall not be liable to Tenant for any loss or damage
resulting from failure to deliver the Premises to Tenant.

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         5. ANNUAL BASIC RENT. (As used in Paragraph 5, "Annual" and "YEAR"
refer to twelve (12)-month periods based on the lease term commencement date and
each anniversary thereof, and not to calendar year.)

         Tenant agrees to pay Landlord as Annual Basic Rent for the Premises the
Annual Basic Rent designated in Paragraph 1 (subject to adjustment as
hereinafter provided) in twelve (12) equal monthly INSTALLMENTS, each in advance
on the first (1st) day of each and every calendar month during said term, except
that the first month's rent shall be paid upon the execution hereof. In the
event the term of this Lease commences or ends on a day other than the first
(1st) day of a calendar month, then the rental for such periods shall be
prorated in the proportion that the number of days this Lease is in effect
during such periods bears to thirty (30), and such rental shall be paid at the
commencement of such periods. Tenant hereby acknowledges that Landlord shall not
send monthly statements and invoices as a condition to Tenant paying any rent
due under this lease. All amounts payable by Tenant to or on behalf of Landlord
under this Lease, whether or not expressly denominated as "rent" shall be
considered rent for purposes of this Lease and for purposes of Section 502(b)(6)
of the Bankruptcy Code (Title II U.S.C.). In addition to said Annual Basic Rent,
Tenant agrees to pay the amount of the rental adjustments as and when
hereinafter provided in this lease. Said rental shall be paid to Landlord,
without any prior demand therefor and without any deduction or offset whatsoever
in lawful money of the United States of America, which shall be legal tender at
the time of payment, at the address of Landlord designated in Paragraph 1 or to
such other person or at such other place as Landlord may from time to time
designate in writing. Tenant agrees to pay as additional rent to Landlord, upon
demand, Tenant's Percentage of any parking charges, utilities, surcharges, or
any other costs levied, assessed or imposed by, or at the direction of or
resulting from statutes or regulations, or interpretations thereof, promulgated
by any federal, state, regional, municipal or local government authority in
connection with the use or occupancy of the Building or the Premises or the
parking facilities serving the Building or the Premises. Rent for the purposes
of Section 365(d)(3) of the Bankruptcy Code (Title 11 U.S.C.) shall be prorated
for any partial month in which the Tenant is a debtor in a case under the
Bankruptcy Code and such prorated rent shall be deemed arising from and after
the order for relief and shall be due in advance on the day after the day of
filing the bankruptcy petition.

         6.       RENTAL ADJUSTMENT.

                  (a) CALCULATION OF DIRECT EXPENSES. For the purpose of this
Subparagraph 6(a), the following terms are defined as follows:

         LEASE YEAR: The calendar year 1996, and each calendar year thereafter.

         TENANT'S PERCENTAGE: Tenant's portion of the total rentable area of the
Building as set forth as a percentage in Paragraph 1 above subject to
proportionate increase or decrease if the rentable area of the Building is
increased or decreased, but without regard to minor deviations between the
actual footage and those used to compute Tenant's Percentage. If such increase
or decrease occurs during any Lease Year of the term of this Lease, then the
Tenant's Percentage shall be determined on the basis of the number of days
during such Lease Year at each such percentage.

         DIRECT EXPENSES BASE: The amount of the annual Direct Expenses for the
Building which Landlord has utilized in establishing the Tenant's Annual Basic
Rent and which amount is set forth in Paragraph 1 above as the "DIRECT EXPENSES
BASE."

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                  DIRECT EXPENSES: All direct costs of operation and maintenance
of the Building ("DIRECT EXPENSES"), including the following costs by way of
illustration, but not limitation: Real property taxes and assessments (as
hereinafter defined) and any taxes or assessments hereafter imposed in lieu
thereof; the net cost and expense of insurance for which Landlord is responsible
hereunder or which Landlord or any first mortgagee with a lien affecting the
Premises reasonably deems necessary in connection with the operation of the
Building, including rent interruption insurance; utilities; janitorial services;
security; labor; costs incurred in the management of the Building, if any,
including wages and salaries of employees used in the management, operation,
repair and maintenance of the Building, and payroll taxes and similar
governmental charges with respect thereto; air-conditioning; waste disposal;
heating; ventilating; elevator maintenance; supplies; materials; equipment;
tools; maintenance, costs, and upkeep of all parking and common areas; and costs
of Landlord's compliance with Laws referred to in Subparagraph 8(d), below.
Tenant acknowledges and agrees that Landlord pays an allocated portion of the
maintenance and landscaping expenses pursuant to the Covenants, Conditions and
Restrictions and that such expenses are included in the Direct Expenses.

                  Direct Expenses shall not include the following:

                  (1) Depreciation, amortization and interest payments, except
with respect to items considered capital repairs, improvements and equipment
("CAPITAL ITEMS") acquired to reduce Direct Expenses, amortized over the useful
life of such items; and except on materials, tools, supplies and vendor-type
equipment purchased by Landlord to enable Landlord to supply services Landlord
might otherwise contract for with a third party where such depreciation,
amortization and interest payments would otherwise have been included in the
charge for such third party's services; and except as provided below in
paragraph 6(b)(5);

                  (2) Marketing costs including, without limitation, leasing
commissions, attorneys' fees in connection with the negotiation and preparation
of letters, deal memos, letters of intent, leases, subleases and/or assignments,
space planning costs, and other costs and expenses incurred in connection with
lease, sublease and/or assignment negotiations and transactions with present or
prospective tenants or other occupants of the Building;

                  (3) Costs incurred by Landlord due to the violation by
Landlord or any tenant of the terms and conditions of any lease of space in the
Building;

                  (4) Interest, principal, points and' fees on debts or
amortization on any mortgage or mortgages or any other debt instrument
encumbering the Building (except as permitted in paragraph 6(a)(1) above).

                  As used herein, the "BUILDING" means the building in which
Tenant's premises are located. If any item of the Building's costs is not
assessed, billed or charged separately from other leasable buildings owned or
controlled by Landlord, then any such "common cost" shall be reasonably
apportioned by Landlord between the Building and the other buildings subject to
the "common cost." The Direct Expenses that vary with occupancy and that are
attributable to any Lease Year in which less than ninety-five percent (95%) of
the rentable area of the Building is occupied by tenants will be adjusted by
Landlord to the amount that Landlord reasonably believes they would have been

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if ninety-five percent (95%) of the rentable area of the Building had been
occupied. Direct Expenses shall also include: (i) administrative fees not to
exceed ten percent (10%) of the annual Direct Expenses excluding therefrom such
administrative fees; or (ii) actual management fees paid to a property manager
unrelated to Landlord.

                  Provided that a given cost of operating or maintaining the
Building was not actually incurred in the Lease Year used to calculate the
Direct Expenses Base, the fact that such cost was not included in the Direct
Expenses Base shall not preclude Landlord from including such cost in Direct
Expenses for subsequent Lease Years.

                  For purposes of the above paragraph, real property taxes and
assessments shall include, but not be limited to, any and all taxes,
assessments, water and sewer charges and other similar governmental charges
levied on or attributable to the Building or the land on which the Building is
located (including appurtenant property) or their operation, ordinary and
extraordinary, substitute and additional, unforeseen as well as foreseen,
present and future, of any kind and nature whatsoever, including without
limitation, (i) real property taxes or assessments levied or assessed against
the Building or the land on which the Building is located (including any
appurtenant property interest subject to real property tax which, for purposes
of this paragraph is deemed part of "the land"), (ii) assessments or charges
levied or assessed against the Building or the land on which the Building is
located by any redevelopment agency, (iii) any tax measured by gross rentals
received from the leasing of the Premises, Building or the land on which the
Building is located, excluding any net income, franchise, capital stock, estate
or inheritance taxes imposed by the state or federal government or their
agencies, branches or departments; provided that if at any time during the Term
any governmental entity levies, assesses or imposes on Landlord any (1) general
or special, ad valorem or specific, excise, capital levy or other tax,
assessment, levy or charge directly on the Rent received under this Lease or on
the rent received under any other leases of space in the Building or any project
wherein the Building is located, or (2) any license fee, excise or franchise
tax, assessment, levy or charge measured by or based, in whole or in part upon
such rent, or (3) any transfer, transaction, or similar tax, assessment, levy or
charge based directly or indirectly upon the transaction represented by this
Lease or such other leases, or (4) any occupancy, use, per capita or other tax,
assessment, levy or charge based directly or indirectly upon the use or
occupancy of the Premises or other premises within the Building or any project
wherein the Building is located, then any such taxes, assessments, levies and
charges shall be deemed to be included in real property taxes and assessments.

                  EXCESS EXPENSES. Tenant's Percentage of any increases in
Direct Expenses over the Direct Expenses Base paid or incurred by Landlord
during the current Lease Year in excess of the Direct Expenses Base. Tenant's
Percentage of such increases is hereinafter referred to as the "EXCESS
EXPENSES."

         (b) Payment of Excess Expenses. Tenant's Percentage of any increases in
Direct Expenses over the Direct Expenses Base shall be payable by Tenant to
Landlord as follows:

                  (1) Beginning January 1, 1998, Tenant shall pay Landlord an
         amount equal to the Excess Expenses.
                  (2) To provide for current payments of Excess Expenses, Tenant
         shall, at Landlord's request, pay as additional rent

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commencing with the first anniversary of the Commencement Date and every Lease
Year thereafter an amount equal to the Excess Expenses payable during such Lease
Year, as estimated by Landlord from time to time. Such payment shall be made in
monthly installments, commencing on the first (1st) day of the month following
the month in which Landlord notifies Tenant of the amount it is to pay hereunder
and continuing until the first (1st) day of the month following the month in
which Landlord gives Tenant a new notice of estimated Excess Expenses. It is the
intention hereunder to estimate from time to time the amount of the Excess
Expenses for each Lease Year, and then to make an adjustment in the following
Lease Year based on the actual Excess Expenses paid or incurred for the prior
Lease Year.

                  (3) On or before April 1 of each Lease Year, Landlord shall
deliver to Tenant a statement setting forth the actual Excess Expenses for the
preceding Lease Year; provided, however, that the failure of Landlord to supply
such statement shall not constitute a waiver of Landlord's right to collect for
such Excess Expenses. If the actual Excess Expenses for the previous Lease Year
exceed the total of the estimated monthly payments made by Tenant for such Lease
Year, Tenant shall pay Landlord the amount of the deficiency within thirty (30)
days after the receipt of the statement. If such total of the estimated monthly
payments made by Tenant exceeds the actual Excess Expenses for such Lease Year,
then Landlord shall credit against Tenant's next ensuing monthly installment(s)
of such estimated Excess Expenses for the then current Lease Year an amount
equal to the difference until the credit is exhausted. If a credit is due from
Landlord at the expiration or earlier termination of this Lease, Landlord shall
promptly pay Tenant the amount of such credit. With respect to the Lease Year in
which the Lease expires or is terminated, Tenant shall, within thirty (30) days
of Landlord's demand therefor, pay to LANDLORD a reasonable estimate, as
determined by Landlord of the actual Excess Expenses for any partial Lease Year
in excess of Tenant's payment for such Lease Year to date. Even though the term
of this Lease has expired or the Lease is sooner terminated and Tenant has
vacated the Premises when the actual Excess Expenses are determined for the
final Lease Year or partial Lease Year, Tenant shall immediately pay any
deficiency in excess of the total estimated monthly payments and Landlord shall
immediately refund to Tenant any overpayment in excess of the actual Excess
Expenses. Landlord and Tenant intend that the obligations of the preceding
sentence shall survive the expiration or earlier termination of this Lease. The
Excess Expenses in any partial Lease Year shall be prorated on a daily basis
utilizing a three hundred sixty-five (365)-day year.

                  (4) Notwithstanding anything to the contrary in this Paragraph
6, the rental payable by Tenant shall in no event be less than the rental
specified in Paragraph 5 hereof.

                  (5) Notwithstanding anything to the contrary in this Paragraph
6, Landlord has agreed with Tenant that annual expenditures for capital
improvements (including without limitation, capital improvements for compliance
with governmental laws including Americans with Disabilities Act) shall be
amortized over the life of the improvement with the amortized portion included
as a Direct Expense, provided, however, the annual amortized portion shall not
exceed $10,000. The $10,000 figure shall be increased annually commencing
January 1, 1999 by the increase in the Consumer Price Index for All Urban
Consumers, All Items (San Francisco-Oakland-San Jose Metropolitan Area,
1982-84=100) ("INDEX"), as published by the United States Department of Labor,
Bureau of Labor Statistics, using September 1996 as the base month and September
of the year preceding

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the change as the comparison month. Should said bureau discontinue the
publication of the above Index, or publish the same less frequently, or alter
the same in some other manner, then Landlord shall adopt a substitute index or
substitute procedure which reasonably reflects and monitors consumer prices.

                  (6) In the event of any dispute regarding the amount due as
Tenant's Percentage of Direct Expenses, for a period of one hundred eighty (180)
days following Landlord's delivery of the statement setting forth Tenant's
Percentage of Direct Expenses, Tenant may, at its sole cost and expense, after
reasonable notice and at reasonable times, inspect and photocopy Landlord's
accounting records at Landlord's Manager's office. The results of Tenant's audit
shall be delivered to Landlord. Tenant's election to conduct an audit shall not
excuse or delay Tenant's obligation to timely pay the Excess Expenses. If
Tenant's audit reveals a discrepancy, Landlord shall refund any overpayment to
Tenant or Tenant shall pay any underpayment to Landlord, each within thirty (30)
days of receipt of notice of the completion of Tenant's audit. If Tenant's audit
discloses Landlord has overcharged Tenant by more than 15% for the audited
period, Landlord shall reimburse Tenant for the reasonable cost of the audit.
Tenant shall keep the results of the audit confidential and shall not disclose
the results to any person or entity not employed by Tenant.

         7.       SECURITY DEPOSIT. Intentionally deleted.

         8.       USE OF PREMISES; COMPLIANCE WITH LAWS AND REGULATIONS.

                  (a) Tenant shall use the Premises for retail banking and
related financial services, including retail and commercial lending, investments
and securities, and shall not use or permit the Premises to be used for any
other purpose. Medical or dental offices, retail facilities or sales offices
(other than retail banking), and similar customer/patient related offices are
specifically excluded. As long as Tenant is using the Premises for a retail
banking operation, Landlord agrees not to enter into any new lease for any
portion of the Building with any tenant whose primary business is retail
banking. Tenant's exclusive use shall be limited to retail banking and shall not
include an exclusive use for the related financial services conducted on the
Premises. In addition, nothing in this Paragraph 8(a) shall limit the ability of
Landlord to consent to a proposed assignment, sublease or other transfer of
space under any lease, sublease or other occupancy agreement that was in effect
before the date this Lease is effective, regardless of the business of the
proposed transferee or its contemplated use of the space in question. This
exclusive right is personal to American River Bank, a California corporation,
and cannot be assigned or transferred. This exclusive right shall automatically
terminate upon Tenant's default with any applicable cure period having expired
or if Tenant's use of the Premises for retail banking is discontinued or if all
or any portion of this Lease is assigned or sublet. As an exception to the
foregoing, Landlord hereby agrees to a transfer of Tenant's exclusive right for
the first two transfers of the Lease to assignees engaged in retail banking
operations following a merger, consolidation, sale or other transfer of assets
by Tenant provided as follows: (1) On the first assignment, the assignee has
total assets equal to a minimum of $135,343,000 adjusted for inflation and total
equity capital equal to 125% of Tenant's total equity capital at the time of
execution of the Lease adjusted for inflation, and (2) On the second assignment,
the assignee has total assets equal to a minimum of $135,343,000 adjusted for
inflation and total equity capital equal to 200% of Tenant's total equity
capital at the time of execution of the Lease adjusted for inflation. For
purposes of the foregoing, Tenant's current total equity capital is $11,991,000.
Adjustments for inflation will be based on an increase in the

                                      -8-

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Index using September 1996 as the base month and the Index last published prior
to the assignment as the. comparison month.

                  (b) Tenant shall comply with all laws, ordinances, orders,
regulations, rules, resolutions and other governmental requirements relating to
the use, condition or occupancy of the Premises which may now or hereafter be in
force, including, without limitation, the Americans with Disabilities Act of
1990 (collectively, the "LAWS"). The cost of compliance with any of the Laws
(including, without limitation, capital expenditures) shall be borne by Tenant.
Tenant shall not use or occupy the Premises in violation of any Law or of the
certificate of occupancy issued for the Building of which the Premises are a
part, and shall, upon five (5) days' written notice from Landlord, discontinue
any use of the Premises which is declared by any governmental authority having
jurisdiction to be a violation of Law or of the certificate of occupancy. Tenant
shall not use or occupy the Premises in any manner which is: (i) potentially
injurious to the public health, safety or welfare, the environment or the
Premises; or (ii) in a manner which creates a basis for liability of Landlord to
any governmental agency or third party under any applicable statute or common
law theory. Tenant shall comply with any direction of any governmental authority
having jurisdiction which shall, by reason of the nature of Tenant's use or
occupancy of the Premises, impose any duty upon Tenant or Landlord with respect
to the Premises or with respect to the use or occupation thereof. Tenant shall
not do or permit to be done anything which will invalidate or increase the cost
of any fire, extended coverage or any other insurance policy covering the
Building and/or property located therein and shall comply with all rules,
orders, regulations and requirements of the Pacific Fire Rating Bureau or any
other organization performing a similar function. Tenant shall promptly upon
demand reimburse Landlord as additional rent for any additional premium charged
for such policy by reason of Tenant's failure to comply with the provisions of
this Paragraph 8. Tenant shall not do or permit anything to be done in or about
the Premises which will in any way obstruct or interfere with the rights of
other tenants or occupants of the Building, or injure or annoy them, or use or
allow the Premises to be used for any improper, immoral, unlawful or
objectionable purpose, nor shall Tenant cause, maintain or permit any nuisance
in, on or about the Premises. Tenant shall not commit or suffer to be committed
any waste in or upon the Premises and shall keep the Premises in first class
repair and appearance.

                  (c) Tenant shall comply with all federal, state and local
laws, ordinances, rules and regulations relating to environmental protection or
the use, analysis, generation, storage, disposal, release, threatened release or
transportation of any Hazardous Materials (as hereinafter defined). Tenant shall
not cause or permit any Hazardous Materials to be brought upon, kept, used,
generated, released, stored or disposed in, on, under or about the Building or
Premises by Tenant, its agents, employees, contractors or invitees, without the
prior written consent of Landlord. The term "HAZARDOUS MATERIALS" as used in
this Lease includes any hazardous, toxic, contaminated the United States
Government, including any material or substance which is: (i) designated as a
"hazardous waste," "hazardous material," "hazardous substance," "extremely
hazardous waste" or "restricted hazardous waste"; (ii or polluting substance,
material or waste which is regulated by any local governmental authority or
special district, the State of California or) flammables or explosives; (iii)
petroleum; (iv) asbestos; (v) polychlorinated biphenyls; (vi) radioactive
materials; or (vii) stated to be known to cause cancer or reproductive toxicity.
In addition, the term "HAZARDOUS WASTE OR SUBSTANCES" shall also include those
materials and substances which are deemed to be hazardous under applicable case
law and/or common law theories including, without limitation, theories of
nuisance and tort liability. Notwithstanding the foregoing, Tenant may, without
Landlord's prior consent, use any ordinary and customary materials

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reasonably required to be used by Tenant in the normal course of Tenant's office
operation on the Premises, so long as such use is in compliance with all
applicable law and does not expose the Premises or any neighboring properties to
any material risk of contamination or damage or expose Landlord to any liability
therefor.

                  (d) Landlord shall be responsible for any structural
alterations, nonstructural alterations in portions of the Building or the parcel
on which the Building is situated which are not reserved for the exclusive use
of any tenant, and any equipment changes required by any Laws. The expense of
Landlord's compliance with Laws shall be a Direct Expense, all of which shall be
an expense in the year when Landlord makes the alteration or equipment change;
provided, however, that in the case of capital improvements, the currently
amortized portion shall be a Direct Expense during the year when Landlord makes
the alteration or equipment change and the balance of the amortization shall be
a Direct Expense in subsequent years subject to the limitation set forth in
subparagraph 6(b)(5). As an exception to the foregoing, if any alterations are
required to the Building or the parcel on which the Building is located as a
result of any alterations or equipment changes made to the Premises by or on
behalf of Tenant, then Tenant shall be responsible for the cost of the
alterations to the Building or the parcel or the equipment changes.

         9.       PAYMENTS AND NOTICES. All rents and other sums payable by
Tenant to Landlord hereunder shall be paid to Landlord at the address designated
by Landlord in Paragraph 1 above or at such other places as Landlord may
hereafter designate in writing. Any notice required or permitted to be given
hereunder must be in writing and may be given by personal delivery or by mail,
and if given by mail shall be deemed sufficiently given if sent by registered or
certified mail addressed to Tenant at the Building of which the Premises are a
part, or to Landlord at its address designated in Paragraph 1. Either party may
by written notice to the other specify a different address for notice purposes
except that Landlord may in any event use the Premises as Tenant's address for
notice purposes. If more than one tenant is named under this Lease, service of
any notice upon any one of said Tenants shall be deemed as service upon all of
said tenants. Notwithstanding any provisions hereof to the contrary, notices
required by law regarding unlawful detainer and other legal proceedings need be
given only in the manner required by law. Notices personally delivered hereunder
shall be deemed given when delivered and notices mailed hereunder shall be
deemed given on the third (3rd) calendar day after deposit in the United States
Mail.

         10.      BROKERS. The parties recognize that the brokers who negotiated
this Lease are the brokers whose names are stated in Paragraph 1. Landlord shall
pay Landlord's broker and Tenant's broker a commission pursuant to a separate
agreement between Landlord and Landlord's broker. Tenant shall indemnify,
protect, defend and hold Landlord harmless from and against any claims for
commissions or finder's fees from any broker or commission arising out of any
agreement, act or conduct of Tenant, except any claims from the brokers whose
names are stated in paragraph 1.

         11.      HOLDING OVER. If Tenant holds over after the expiration or
earlier termination of the term hereof without the express written consent of
Landlord, Tenant shall become a tenant at sufferance only at a rental rate equal
to one hundred twenty-five percent (125%) of the rent in effect upon the date of
such expiration (subject to adjustment as provided in Paragraph 6 hereof and
prorated on a daily basis), and otherwise subject to the terms, covenants and
conditions herein specified, so far as applicable. Acceptance by Landlord of
rent after such expiration or earlier termination shall not constitute a
holdover hereunder or result in a renewal. The foregoing provisions of this
Paragraph 11 are in addition to and do not affect Landlord's

                                      -10-

<PAGE>

right of re-entry or any rights of Landlord hereunder or as otherwise provided
by law. If Tenant fails to surrender the Premises upon the expiration of this
Lease despite written demand to do so by Landlord, Tenant shall indemnify,
PROTECT, defend and hold Landlord harmless from all loss or liability, including
without limitation, any claim made by any succeeding tenant founded on or
resulting from such failure to surrender.

         12.      TAXES ON TENANT'S PROPERTY. Tenant shall be liable for and
shall pay before delinquency, taxes levied against any personal property or
trade fixtures placed by Tenant in or about the Premises. If any such taxes on
Tenant's personal property or trade fixtures are levied against Landlord or
Landlord's property or if the assessed value of the Premises is increased by the
inclusion therein of a value placed upon such personal property or trade
fixtures of Tenant and if Landlord, after written notice to Tenant, pays the
taxes based upon such increased assessments, which Landlord shall have the right
to do regardless of the validity thereof, but only under proper protest if
requested by Tenant, Tenant shall upon demand repay to Landlord the taxes levied
against Landlord, or the proportion of such taxes resulting from such increase
in the assessment; provided that in any such event at Tenant's sole cost and
expense, Tenant shall have the right, in the name of Landlord and with
Landlord's full cooperation, to bring suit in any court of competent
jurisdiction to recover the amount of any such taxes so paid under protest, any
amount so recovered to belong to Tenant.

         13.      CONDITION OF PREMISES. Tenant acknowledges that neither
Landlord nor any agent of Landlord has made any representation or warranty with
respect to the condition of the Premises or the Building or with respect to the
suitability of either for the conduct of Tenant's business. The taking of
possession of the Premises by Tenant subsequent to substantial completion of the
Leasehold Improvements shall establish that the Premises and the Building were
at such time in satisfactory condition and that Tenant has accepted the
condition of the Premises, except for those items of construction identified on
the punchlist described in paragraph 13 of the Work Letter attached hereto as
Exhibit B, and the Building.

         14.      ALTERATIONS.

                  (a) Tenant shall make no alterations, additions or
improvements in or to the Premises (collectively, "ALTERATIONS") without
Landlord's prior written consent, and then only by a contractor, engineer or
mechanic designated by Landlord. Landlord may withhold its consent to such
Alterations in its sole discretion if the proposed Alterations would adversely
affect the structure or safety of the Building or its electrical, plumbing,
HVAC, mechanical or safety systems; in all other circumstances, Landlord agrees
not to unreasonably withhold its consent to proposed Alterations. Tenant agrees
that there shall be no construction of partitions or other obstructions which
might interfere with Landlord's free access to mechanical installations or
service facilities serving the Building or the moving of Landlord's equipment to
or from the enclosures containing said installations or facilities or proper
sprinkler coverage in the Premises. All such work shall be done at such times
and in such manner as Landlord may from time to time designate. Tenant covenants
and agrees that all work done by Tenant or at Tenant's request shall be
performed in full compliance with all Laws, and in full compliance with the
rules, orders, directions, regulations and requirements of the Pacific Fire
Rating Bureau, or of any similar body. All such Alterations must conform to the
Building's then-existing standards for leasehold improvements (such standards
are, as of the execution hereof, set forth in Exhibit "A-3" attached hereto, but
are subject to modification from time to time). Tenant shall pay Landlord all
reasonable costs incurred by Landlord in connection with the proposed
Alterations (including, but not limited to, costs incurred in reviewing the
plans and specifications therefor and in administering or managing the
construction of the Alterations); at Landlord's

                                      -11-

<PAGE>

option and prior to the commencement of the Alterations, Tenant shall deposit
with Landlord the estimated cost of the foregoing along with the cost of making
any alterations to the Building or the parcel if such costs are Tenant's expense
pursuant to Subparagraph 8(d) above, it being agreed that any surplus shall be
returned to Tenant following the completion of the Alterations in compliance
with this Subparagraph 14(a). Neither Landlord's approval or supervision of any
Alterations, nor Landlord's designation or recommendation of any contract or
supplier in connection therewith, shall be deemed a warranty as to the design,
workmanship, or quality of materials or the compliance of the Alterations with
any governmental requirements. Before commencing any work, Tenant shall give
Landlord at least five (5) days' written notice of the proposed commencement of
such work and shall, if required by Landlord, secure at Tenant's own cost and
expense, a completion and lien indemnity bond, satisfactory to Landlord, for
said work. Tenant further covenants and agrees that any mechanic's lien filed
against the Premises or against the Building for work claimed to have been done
for, or materials claimed to have been furnished to Tenant, will be discharged
by Tenant, by bond or otherwise, within ten (10) days after the filing thereof,
at the cost and expense of Tenant. All alterations, decorations, additions or
improvements upon the Premises, made by either party including (without limiting
the generality of the foregoing) all wall covering, built-in cabinet work,
paneling and the like, shall, unless Landlord elects otherwise (which election
shall be made, if at all, at the time Landlord gives its prior written consent
as required by the first sentence of this paragraph 14(a)), become the property
of Landlord, and shall remain upon, and be surrendered with the Premises, as a
part thereof, at the end of the term hereof. If Landlord elects to have Tenant
remove all partitions, counters, railings and the like installed by Tenant,
Tenant shall repair any damage to the Premises arising from such removal or, at
Landlord's option, shall pay to the Landlord the reasonable costs of such
removal and repair. The provisions of this paragraph 14(a) do not apply to the
Leasehold Improvements to be constructed by Landlord as described in the Work
Letter attached hereto as Exhibit B.

                  (b) All articles of personal property and all business and
trade fixtures, machinery and equipment, furniture and movable partitions owned
by Tenant or installed by Tenant at its expense in the Premises shall be and
remain the property of Tenant and may be removed by Tenant at any time during
the lease term provided Tenant is not in default hereunder, and provided further
that Tenant shall repair any damage caused by such removal. If Tenant shall fail
to remove all of its effects from said Premises upon termination of this Lease
for any cause whatsoever, Landlord may, at its option, remove the same in a
reasonable manner that Landlord shall choose, and store said effects without
liability to Tenant for loss thereof, and Tenant agrees to pay Landlord upon
demand any and all expenses incurred in such removal, including court costs and
attorneys' fees and storage charges on such effects for any length of time that
the same shall be in Landlord's possession, or Landlord may, at its option,
without notice, sell said effects, or any of the same, at private sale and
without legal process, for such reasonable price as Landlord may obtain and
apply the proceeds of such sale upon any amounts due under this Lease from
Tenant to Landlord and upon the expense incident to the removal, storage and
sale of said effects. Landlord and Tenant agree that the obligations and rights
set forth in this Subparagraph 14(b) shall survive the expiration or earlier
termination of this Lease.

                  (c) Tenant shall be permitted to install the ATM in the
location shown on Exhibit "A" pursuant to the terms and conditions described in
the Work Letter Agreement attached hereto as Exhibit "B". Prior to expiration of
the term, Tenant shall remove the ATM and shall restore, at Tenant's sole cost
and expense, the exterior wall to the same condition as existed prior to such
installation to Landlord's satisfaction. The removal and restoration work shall
be performed by a contractor acceptable to Landlord

                                      -12-

<PAGE>

and is otherwise subject to the provisions of this Paragraph 14. Tenant shall be
responsible for the operation, repair and maintenance of the ATM and
acknowledges that Landlord shall have no liability or responsibility whatsoever
with respect to the ATM,

                  (d) Landlord reserves the right at any time and from time to
time, without the same constituting an actual or constructive eviction and
without incurring any liability to Tenant therefor or otherwise affecting
Tenant's obligations under this Lease, to make such changes, alterations,
additions, improvements, repairs or replacements in or to the Building
(including the Premises if required so to do by any Law) and the fixtures and
equipment thereof, as well as in or to the street entrances, halls, passages and
stairways thereof, to change the name by which the Building is commonly known,
as Landlord may deem necessary or desirable. Nothing contained in this
Subparagraph 14(d) shall be deemed to relieve Tenant of any duty, obligation or
liability of Tenant with respect to making any repair, replacement or
improvement or complying with any Law and nothing contained in this Subparagraph
14(d) shall be deemed or construed to impose upon Landlord any obligation,
responsibility or liability whatsoever, for the care, supervision or repair of
the Building or any part thereof other than as otherwise provided in this Lease.

         15.      REPAIRS.

                  (a) As of the Commencement Date, Tenant accepts the Premises
as being in good and sanitary order, condition and repair, except for those
items of construction identified on the punchlist described in paragraph 13 of
the Work Letter attached hereto as Exhibit B. Tenant shall, when and if needed
or whenever requested by Landlord to do so, at Tenant's sole cost and expense,
make all repairs to the Premises and every part thereof, including all interior
doors and the ATM, to keep, maintain and preserve the Premises in first class
condition and repair. Tenant shall upon the expiration or sooner termination of
the term hereof surrender the Premises to Landlord in the same condition as when
received, reasonable and ordinary wear and tear thereof excepted. Except as
provided in Subparagraph 15(b) hereof, Landlord shall have no obligation to
alter, remodel, improve, repair, decorate or paint the Premises or any part
thereof, the Building or the common areas, and the parties hereto affirm that
Landlord has made no representations to Tenant respecting the condition of the
Premises or the Building.

                  (b) Anything contained in Subparagraph 15(a) above to the
contrary notwithstanding, Landlord shall repair and maintain the common areas
described in Subparagraph 2(b) and the structural portions of the Building,
including the windows, exterior doors of the Building, basic plumbing, heating,
ventilating, air conditioning and electrical systems installed or furnished by
Landlord. If the maintenance and repairs are caused in part or in whole by the
act, neglect, fault of or omission of any duty by Tenant, its agents, servants,
employees, customers or invitees (including, without limitation, any maintenance
or repair as a result of the operation or use of the ATM by Tenant, its agents,
servants, employees, customers or invitees), Tenant shall pay to Landlord, as
additional rent, the reasonable cost of such maintenance and repairs. The
janitorial services to be provided by Landlord shall be comparable to those
provided in other first class office buildings in the Roseville area. Landlord
shall not be liable for any failure to make any such repairs or to perform any
maintenance unless such failure shall persist for an unreasonable time after
written notice of the need of such repairs or maintenance is given to Landlord
by Tenant. Except as provided in Paragraph 23 hereof there shall be no abatement
of rent and no liability of Landlord by reason of any injury to or interference
with Tenant's business arising from the making of any repairs, alterations or
improvements in or to any portion of the Building or the Premises or in or to
fixtures, appurtenances and equipment therein. Tenant hereby waives California
Civil Code

                                      -13-

<PAGE>

Sections 1932(1), 1941 and 1942 and any other applicable existing or future law,
ordinance or governmental regulation permitting Tenant to make repairs at
Landlord's expense. Landlord shall have no responsibility for the repair or
maintenance of the ATM even though it is located within the common area.

                  (c) Anything to the contrary in Subparagraphs 15(a) and (b)
above notwithstanding, Tenant, at Tenant's sole cost and expense, shall make any
and all improvements, changes, maintenance or repairs to the Premises, which are
required for compliance with Laws.

                  (d) Tenant acknowledges that Landlord shall have no obligation
to maintain, repair or replace any telecommunications or computer cabling or
wiring which is located in the Premises or which exclusively serves the Premises
(collectively, the "CABLING"). Tenant, at Tenant's expense, shall contract with
Pacific Bell or another reputable contractor approved by Landlord to maintain
the Cabling. Landlord shall provide Tenant access to the Building's main
telephone room, and, to the extent needed, other premises in the Building in
order to pull the telephone wires to the Premises.

         16.      LIENS. Tenant shall not permit any mechanic's, materialman's
or other liens to be filed against the real property of which the Premises form
a part nor against the Tenant's leasehold interest in the Premises. Landlord
shall have the right at all reasonable times to post and keep posted on the
Premises any notices which it deems necessary for protection from such liens. If
any such liens are filed, Landlord may, without waiving its rights and remedies
based on such breach of Tenant and without releasing Tenant from any of its
obligations, send written notice to Tenant. Tenant shall have ten (10) days from
receipt of the notice to post security for payment of the lien. If Tenant fails
to timely take action, Landlord may cause such liens to be released by any means
it shall deem proper, including without limitation payment in satisfaction of
the claim giving rise to such lien. Tenant shall pay to Landlord, at once upon
notice by Landlord, any sum paid by Landlord to remove such liens, together with
interest at the maximum rate per annum permitted by law from the date of such
payment by Landlord.

         17.      ENTRY BY LANDLORD. Landlord reserves and shall have the right
to enter the Premises to inspect the same, to supply janitor service and any
other service to be provided by Landlord to Tenant hereunder, to submit said
Premises to prospective purchasers or tenants, to post notices of
nonresponsibility, to alter, improve or repair the Premises or any other portion
of the Building, and/or to perform any acts required of but not done by Tenant
as provided in Paragraph 35 hereof, all without being deemed guilty of any
eviction of Tenant and without abatement of rent, and may, in order to carry out
such purposes, erect scaffolding and other necessary structures where reasonably
required by the character of the work to be performed, provided that the
business of Tenant shall be interfered with as little as is reasonably
practicable. Tenant hereby waives any claim for damages for any injury or
inconvenience to or interference with Tenant's business, any loss of occupancy
or quiet enjoyment of the Premises, and any other loss occasioned thereby. For
each of the aforesaid purposes, Landlord shall at all times have and retain a
key with which to unlock all of the doors in, upon or about the Premises,
excluding Tenant's vaults and safes, and Landlord shall have the right to use
any and all means which Landlord may deem proper to open said doors in an
emergency in order to obtain entry to the Premises, and any entry to the
Premises obtained by Landlord by any of said means, or otherwise, shall not
under any circumstances be construed or deemed to be a forcible or unlawful
entry into, or a detainer of the Premises, or an eviction of Tenant from the
Premises or any portion thereof, and any damages caused on account thereof shall
be paid by Tenant. It is understood and agreed that no provision of this Lease
shall be construed as obligating

                                      -14-

<PAGE>

Landlord to perform any repairs, alterations or decorations except as otherwise
expressly agreed herein to be performed by Landlord.

         18.      UTILITIES AND SERVICES.

                  (a) Landlord agrees to furnish to the Premises during the
hours of 7:00 a.m. to 7:00 p.m., Monday through Friday and 8:00 a.m. to 1:00
p.m. on Saturdays subject to the conditions of and in accordance with the
standards set forth in writing by Landlord from time to time during the term of
this Lease and delivered to Tenant, reasonable quantities of electric current
for normal lighting and fractional horsepower office machines, water for
lavatory and drinking purposes, heat and air conditioning required to operate a
first class office building in the Douglas Boulevard corridor of Johnson Ranch,
janitorial service and elevator service by non-attended automatic elevators.
Tenant acknowledges and agrees that Landlord may impose a reasonable charge for
the use of any additional or unusual janitorial services required by Tenant's
carelessness or the nature of Tenant's business. Landlord's obligation regarding
any heating, ventilation and air conditioning ("HVAC") and electrical systems
shall be limited to the Building's standard central HVAC and electrical systems,
and Landlord shall have no obligation to maintain or repair any HVAC or
electrical system that has been installed to accommodate Tenant's specific use
of the Premises (provided, however, that any contractor retained by Tenant to
maintain or repair any such HVAC or electrical system shall be subject to
Landlord's reasonable approval). Landlord shall not be obligated to service,
maintain, repair or replace any system or improvement in the Premises that has
not been installed by Landlord at Landlord's expense, or which is a specialized
improvement requiring additional or extraordinary maintenance or repair (by way
of example only, if the standard premises in the Building contain fluorescent
light fixtures, Landlord's obligation shall be limited to the replacement of
fluorescent light tubes, irrespective of any incandescent fixtures that may have
been installed in the Premises at Tenant's expense). Landlord shall not be
liable for, and Tenant shall not be entitled to any abatement or reduction of
rent by reason of Landlord's failure to furnish any of the foregoing when such
failure is caused by accident, breakage, repairs, strikes, lockouts or other
labor disturbances or labor disputes of any character or for any other causes.
Tenant hereby waives the provisions of California Civil Code Section 1932(1) or
any other applicable existing or future law, ordinance or governmental
regulation permitting the termination of this Lease due to the interruption or
failure of any services to be provided under this Lease. If Tenant requires or
utilizes more water or electric power than is considered reasonable or normal by
Landlord, Landlord may at its option require Tenant to pay, as additional rent,
the cost, as fairly determined by Landlord, incurred by such extraordinary
usage. In addition, Landlord may install separate meter(s) for the Premises, at
Tenant's sole expense, and Tenant thereafter shall pay all charges of the
utility providing service.

                  (b) If the temperature otherwise maintained in any portion of
the Premises by the HVAC systems of the Building is affected by reason of any
lights, machines or equipment used by Tenant in the Premises, or by the
occupancy of the Premises by more persons than are contemplated by the design
criteria of the HVAC systems, then Landlord shall have the right to install
machines or equipment that Landlord reasonably deems necessary to restore
temperature balance, including modifications to the standard airconditioning
equipment and electrical systems serving the Premises. The cost of any such
equipment and modifications, including the cost of installation and any
additional cost of operation and maintenance of the same, shall be paid by
Tenant to Landlord upon demand.

                  (c) Tenant acknowledges and agrees that Tenant's use of the
Premises outside the generally recognized business days and hours for the
Building will impose an additiona burden on Building services such as

                                      -15-
<PAGE>

janitorial service, elevator service, fluorescent tube replacement and HVAC
service, the cost of which services shall be paid to Landlord by Tenant as
"after hours rent" upon demand.

         19.      BANKRUPTCY If Tenant shall file a petition in bankruptcy under
any Chapter of the Bankruptcy Act as then in effect, or if Tenant be adjudicated
a bankrupt in involuntary bankruptcy proceedings and such adjudication shall not
have been vacated within sixty (60) days from the date thereof, or if a receiver
or trustee be appointed of Tenant's property and the order appointing such
receiver or trustee not be set aside or vacated within thirty (30) days after
the entry thereof, or if the Tenant shall assign Tenant's estate or effects for
the benefit of creditors, or if this Lease shall otherwise by operation of law
devolve or pass to any person or persons other than Tenant, then and in any such
event Landlord may, if Landlord so elects, with or without notice of such
election and with or without entry or action by Landlord, forthwith terminate
this Lease, and notwithstanding any other provisions of this Lease, Landlord, in
addition to any and all rights and remedies allowed by law or equity, shall upon
such termination be entitled to recover damages in the amount provided in
Subparagraph 25(b) below and neither Tenant nor any person claiming through or
under Tenant or by virtue of any statute or order of any court shall be entitled
to possession of the Premises but shall forthwith quit and surrender the
Premises to Landlord. Nothing herein contained shall limit or prejudice the
right of Landlord to prove and obtain as damages by reason of any such
termination an amount equal to the maximum allowed by any statute or rule of law
in effect at the time when, and governing the proceedings in which, such damages
are to be proved, whether or not such amount be greater, equal to, or less than
the amount of damages recoverable under the provisions of this Paragraph 19.

         20.      INDEMNIFICATION. Tenant shall, during the entire term hereof
and during any rent-free period of prior occupancy, indemnify, defend, protect
and hold harmless Landlord against and from any and all claims arising from (i)
Tenant's use of the Premises or the conduct of its business or from any
activity, work, or thing done, permitted or suffered by Tenant in or about the
Premises, (ii) any breach or default in the performance of any obligation on
Tenant's part to be performed under the terms of this Lease, (iii) the presence
of Hazardous Materials in the Premises or Building caused or permitted to be
caused by Tenant, (iv) any act, neglect, fault or omission of Tenant, or of its
agents or employees, and/or (v) the operation of the ATM, whether such claims
arise from Tenant, its employees or its customers. Tenant shall further
indemnify, defend, protect and hold harmless Landlord from and against all
costs, attorneys' fees, expenses and liabilities incurred in or about any such
claims or any action or proceeding brought thereon; and in case any action or
proceeding be brought against Landlord by reason of any such claim, Tenant upon
notice from Landlord shall defend the same at Tenant's expense by counsel
approved in writing by Landlord. Landlord's approval of counsel shall be waived
if the defense of such claim is insured by Tenant's insurance and the insurance
carrier requires the selection of counsel be made by the insurance carrier.
Tenant, as a material part of the consideration to Landlord, hereby assumes all
risk of damage to property or injury to persons in, upon or about the Premises,
including without limitation, the ATM or any security devices installed by or on
behalf of Tenant, from any cause whatsoever except that which is caused by
Landlord's willful misconduct, gross negligence or failure to observe any of the
terms and conditions of this Lease and such failure has persisted for an
unreasonable period of time after written notice of such failure, and Tenant
hereby waives all its claims in respect thereof against Landlord.

         21.      DAMAGE TO TENANT'S PROPERTY. Notwithstanding the provisions of
Paragraph 20 to the contrary, Landlord or its agents shall not be liable for any
damage to property entrusted to employees of the Building, nor for loss of or
damage to any property by theft or otherwise, nor for any injury

                                      -16-

<PAGE>

property resulting from fire, explosion, falling plaster, steam, contaminated
air, gas, electricity, water or rain which may leak from or flow into any part
of the Building or from the breakage, leakage, obstruction or other defects in
any pipes, appliances, sprinklers, wires, HVAC, fixtures or plumbing works
whether the damage or injury results from conditions arising upon the Premises
or upon other portions of the Building or from other sources except as may be
due to the gross negligence or willful misconduct by Landlord or its agents,
contractors or employees. Landlord shall not be liable for any damages arising
from any act or neglect of any other tenant in the Building. Tenant shall give
prompt notice to Landlord in case of fire or accidents in the Premises or in the
Building or of defects therein or in the fixtures or equipment.

         22.      INSURANCE

                  (a) Tenant shall, during the entire term hereof and during any
rent-free period or period of prior occupancy, at its sole cost and expense,
obtain, maintain and keep in full force and effect, with Tenant, Landlord, the
mortgagees of Landlord, the fee owners of the property if such fee owners are
not Landlord and the property manager, named as additional insureds therein as
their respective interests may appear, the following insurance:

                           (1) Property Insurance covering loss or damage by
fire and all other perils covered by "all risk" insurance as such term is used
in the insurance industry and vandalism and malicious mischief endorsements,
which insurance shall cover property of every description and kind owned by
Tenant and located in the Building, including, without limitation, furniture,
fittings, installations, fixtures and any other personal property, in an amount
not less than the full replacement cost thereof. Tenant shall also insure its
loss of use value in the Leasehold Improvements.

                           (2) Commercial General Liability insurance applying
to the use and occupancy of the Premises, and the business operated by Tenant or
any other occupant. Such insurance shall include Broad Form Contractual
liability insurance coverage insuring all of Tenant's indemnity obligations
under this Lease. Such coverage shall have a minimum combined single limit of
liability of at least ONE MILLION DOLLARS ($1,000,000), and a general aggregate
limit of at least TWO MILLION DOLLARS ($2,000,000) with a FIVE MILLION DOLLAR
($5,000,000) umbrella policy. All such policies shall be written to apply to all
bodily injury, property damage, personal injury and other covered loss, however
occasioned, occurring during the policy term, and shall be endorsed to provide
that such coverage shall be primary and that any insurance maintained by
Landlord shall be excess insurance only. Such coverage shall also contain
endorsements: (i) including employees as additional insureds; (ii) deleting any
liquor liability exclusion; (iii) providing for coverage of employer's
automobile non-ownership liability; (iv) adding fire legal liability coverage;
(v) deleting any work/product exclusion, so that coverage will exist for damage
resulting from work performed on the Premises or the Building or common areas
whether by Landlord, Tenant or contractors or subcontractors working directly or
indirectly for either; and (vi) to the extent available, a specific endorsement
insuring Tenant's indemnity obligations to Landlord pursuant to Paragraph 20.
The insurance required by the foregoing provisions of this Subparagraph 22(a)(2)
shall provide for severability of interests; shall provide that an act or
omission of one of the named or additional insureds shall not reduce or avoid
coverage to the other named or additional insureds; and shall afford coverage
for all claims based on acts, omissions, injury and damage, which claims
occurred or arose

                                      -17-

<PAGE>

(or the onset of which occurred or arose) in whole or in part during the policy
period.

                           (3) Extra expense insurance in such amounts as will
reimburse Tenant for the costs of relocating Tenant's business to another
location following a casualty until Tenant can reoccupy the Premises.

                           (4) Worker's Compensation and Employer's liability
insurance in the amount required by law, and in a form satisfactory to Landlord.

                           (5) Any other form or forms of insurance as Land&" or
mortgagees of Landlord may reasonably require from time to time in form, in
amounts and for insurance risks against which a prudent tenant would protect
itself.

                  (b) All policies shall be taken out with insurers licensed to
do business in California acceptable to Landlord and in form satisfactory from
time to time to Landlord. Tenant agrees that certified copies of each insurance
policy will be delivered to Landlord as soon as practicable after the placing of
the required insurance, but in no event later than the day on which Tenant takes
possession of all or any part of the Premises, including possession taken under
the last sentence of Paragraph 4 hereof. All policies shall contain an
undertaking by the insurers to notify Landlord and the mortgagees of Landlord in
writing not less than thirty (30) days prior to any material change, reduction
in coverage, cancellation, or other termination thereof. Tenant shall furnish
Landlord with proof of renewal or binders for new insurance at least thirty (30)
days before the expiration date of each policy.

                  (c) In the event of damage to or destruction of the Building
entitling Landlord to terminate this Lease pursuant to Paragraph 23 hereof,
Tenant will deliver the Premises to Landlord, in accordance with the provisions
of this Lease.

                  (d) Landlord covenants and agrees that throughout the term it
will insure the Building (excluding any property with respect to which Tenant is
obliged to insure pursuant to the provisions of Subparagraph 22(a) above)
against damage by fire and standard extended coverage perils and public
liability insurance in such reasonable amounts with such reasonable deductibles
as would be carried by a prudent owner of a similar building in the metropolitan
area in which the Premises are located. Landlord may, but shall not be obliged
to, take out and carry any other form or forms of insurance as it or the
mortgagees of Landlord may reasonably determine advisable. Notwithstanding any
contribution by Tenant to the cost of insurance premiums, as provided herein,
Tenant acknowledges that it has no right to receive any proceeds from any such
insurance policies carried by Landlord. Landlord will not be required to (but
may) carry insurance of any kind on Tenant's furniture, furnishings, trade
fixtures or equipment of Tenant under this Lease; and Landlord shall not be
obligated to repair any damage thereto or replace the same.

                  (e) Tenant agrees that it will not keep, use, sell or offer
for sale in or upon the Premises any article which may be prohibited by any
insurance policy in force from time to time covering the Allowance Work. In the
event Tenant's occupancy or conduct of business in or on the Premises, whether
or not Landlord has consented to the same, results in any increase in premiums
for the insurance carried from time to time by Landlord with respect to the
Building, Tenant shall pay any such increase in premiums as additional rent
within ten (10) days after being billed therefor by Landlord. In determining
whether increased premiums are a result of Tenant's use or occupancy of the
Premises, a schedule issued by the organization computing

                                      -18-

<PAGE>

the insurance rate on the Building or the Leasehold Improvements showing the
various components of such rate, shall be conclusive evidence of the several
items and charges which make up such rate. Tenant shall promptly comply with all
reasonable requirements of the insurance authority or of any insurer now or
hereafter in effect relating to the Premises.

                  (f) If any insurance policy carried by Landlord, as provided
in Subparagraph 22(d) above, shall be cancelled or cancellation shall be
threatened or the coverage thereunder reduced or threatened to be reduced, in
any way by reason of the use of occupation of the Premises or any part thereof
by Tenant or by any assignee or sub-tenant of Tenant or by anyone permitted by
Tenant to be upon the Premises and, if Tenant fails to remedy the condition
giving rise to cancellation, threatened cancellation or reduction of coverage
within forty-eight (48) hours after notice thereof, Landlord may, at its option,
either terminate this Lease or enter upon the Premises and attempt to remedy
such condition and Tenant shall forthwith pay the cost thereof to Landlord as
additional rent. Landlord shall not be liable for any damage or injury caused to
any property of Tenant or of others located in the Premises as a result of such
entry. In the event that Landlord shall be unable to remedy such condition, then
Landlord shall have all of the remedies provided for in this Lease in the event
of a default by Tenant. Notwithstanding the foregoing provisions of this
Subparagraph 22(f), if Tenant fails to remedy as aforesaid, Tenant shall be in
default of its obligation hereunder and Landlord shall have no obligation to
attempt to remedy such default.

                  (g) Any policy or policies of fire, extended coverage or
similar casualty insurance, which either party obtains in connection with the
Premises shall include a clause or endorsement denying the insurer any rights of
subrogation against the other party to the extent rights have been waived by the
insured prior to the occurrence of injury or loss. Landlord and Tenant waive any
rights of recovery against the other for injury or loss due to hazards covered
by insurance containing such a waiver of subrogation clause or endorsement to
the extent of the injury or loss covered thereby.

         23.      DAMAGE OR DESTRUCTION

                  (a) In the event the Building and/or the Premises is damaged
by fire or other perils covered by Landlord's extended coverage insurance,
Landlord shall:

                           (1) In the event of total destruction, at Landlord's
option within a period of ninety (90) days thereafter, commence repair,
reconstruction and restoration of said Building and/or Premises and prosecute
the same diligently to completion in which event this Lease shall remain in full
force and effect; or within said ninety (90)-day period elect not to so repair,
reconstruct or restore, said Building and/or Premises, in which event this Lease
shall terminate. In either event, Landlord shall give Tenant written notice of
its intention within said ninety (90)-day period. In the event Landlord elects
not to restore said Building and/or Premises, this Lease shall be deemed to have
terminated as of the date of such total destruction.

                           (2) In the event of a partial destruction of the
Building and/or the Premises, to an extent not exceeding twenty-five percent
(25%) of the full insurable value thereof and if the damage thereto is such that
the Building and/or the Premises may be repaired, reconstructed or restored
within a period of ninety (90) days from the date of the happening of such
casualty and Landlord will receive insurance proceeds sufficient to cover the
cost of such repairs, Landlord shall commence and proceed diligently with the
work of repair, reconstruction and restoration and the Lease shall continue in
full force and effect. If such work of repair, reconstruction and restoration

                                      -19-

<PAGE>

is such as to require a period longer than ninety (90) days or exceeds
twenty-five percent (25%) of the full insurable value thereof, or if said
insurance proceeds will not be sufficient to cover the cost of such repairs,
Landlord either may elect to so repair, reconstruct or restore and the Lease
shall continue in full force and effect or Landlord may elect not to repair,
reconstruct or restore and the Lease shall in such event terminate. Under any of
the conditions of this Subparagraph 23(a)(2), Landlord shall give written notice
to Tenant of its intention within said ninety (90)-day period. In the event
Landlord elects not to restore said Building and/or Premises, this Lease shall
be deemed to have terminated as of the date of such partial destruction. In the
event Landlord elects to restore said Building and/or Premises, Landlord shall
endeavor to complete the work within one hundred eighty (180) days after the
commencement thereof.

                  (b) Upon any termination of this Lease under any of the
provisions of this Paragraph 23, the parties shall be released thereby without
further obligation to the other from the date possession of the Premises is
surrendered to Landlord except for items which have theretofore accrued and are
then unpaid and/or for insurance and indemnity obligations pertaining to events
occurring prior to lease termination.

                  (c) In the event of repair, reconstruction and restoration by
Landlord as herein provided, the rental provided to be paid under this Lease
shall be abated proportionately with the degree of objective interference with
the reasonable use of the Premises, during the period of such repair,
reconstruction or restoration. Tenant shall not be entitled to any compensation
or damages for loss in the use of the whole or any part of the Premises and/or
any inconvenience or annoyance occasioned by such damage, repair, reconstruction
or restoration.

                  (d) Tenant shall not be released from any of its obligations
under this Lease except to the extent and upon the conditions expressly stated
in this Paragraph 23. Notwithstanding anything to the contrary contained in this
Paragraph 23, should Landlord be delayed or prevented from repairing or
restoring the damaged Premises within one (1) year after the occurrence of such
damage or destruction by reason of acts of God, war, governmental restrictions,
inability to procure the necessary labor or materials, or other cause beyond the
control of Landlord, Landlord shall be relieved of its obligation to make such
repairs or restoration and this lease shall be deemed terminated as of the end
of said one (1) year period.

                  (e) In the event the Premises or the Building are damaged by a
risk not covered by Landlord's insurance, then Landlord shall have the option
either to (1) repair or restore such damage, this Lease continuing in full force
and effect, but the rent to be proportionately abated as hereinabove provided,
or (2) give notice to Tenant at any time within ninety (90) days after such
damage terminating this Lease. In the event of the giving of such notice of
termination, this Lease shall expire and all interest of Tenant in the Premises
shall terminate and the rent, reduced by any proportionate reduction based upon
the extent, if any, to which said damage interfered WITH the use and occupancy
of Tenant, shall be paid to the date of such termination. In the event Landlord
elects to restore said Building and/or Allowance Work, Landlord shall endeavor
to complete the work within one hundred eighty (180) days after the commencement
thereof. Landlord agrees to refund the Tenant any rent theretofore paid in
advance for any period of time subsequent to such date.

                  (f) It is hereby understood that if Landlord is obligated to
or elects to repair or restore as herein provided, Landlord shall be obligated
to make repairs or restoration only of those portions of the Building and the
Premises which were insured by Landlord pursuant to paragraph 22(d).

                                      -20-

<PAGE>

                  (g) Notwithstanding anything to the contrary contained in this
Paragraph 23, Landlord shall not have any obligation whatsoever to repair,
reconstruct or restore the Premises when the damage resulting from any casualty
covered under this Paragraph 23 occurs during the last twelve (12) months of the
term of this Lease or any extension hereof.

                  (h) Landlord and Tenant each hereby waive the provisions of
California Civil Code Sections 1932(2) and 1933(4), and any other applicable
existing or future law, ordinance or regulation with respect to damage or
destruction of leased premises or with respect to the termination of a lease
AGREEMENT in the event of such damage or destruction.

         24.      EMINENT DOMAIN. In case the whole of the Premises, or sum part
thereof as shall substantially interfere with the reasonable use of the
Premises, shall be taken for any public or. quasi-public purpose by any lawful
power or authority by exercise of the right of appropriation, condemnation or
eminent domain, or sold to prevent such taking, either party shall have the
right to terminate this Lease effective as of the date possession is required to
be surrendered to said authority. In the event the amount of property or the
type of estate taken shall not substantially interfere with the reasonable use
of the Premises, Landlord at its option may terminate this Lease. In the event
of termination of the Lease, Tenant shall not assert any claim against Landlord
or the taking authority for any compensation for the taking of the Premises and
Landlord shall be entitled to receive the entire amount of the award without
deduction for any estate or interest of Tenant, except that Tenant shall be
entitled to a proportionate share of that portion of the award allocated to the
Leasehold Improvements in the Premises. Tenant's proportionate share shall be
determined by multiplying the portion of the award allocated to the Leasehold
Improvements by the percentage of the Above-Allowance paid by Tenant to the
overall cost of the Leasehold Improvements, and then multiplying that product by
a fraction, the numerator of which shall be the remaining months in the initial
term and the denominator of which shall be 120. If Landlord does not elect to
terminate the Lease, Landlord shall promptly proceed to restore the Premises to
substantially their same condition prior to such partial taking, to the extent
possible by application of the condemnation proceeds only, and a proportionate
allowance shall be made to Tenant for the rent corresponding to the time during
which, and to the part of the Premises of which Tenant shall be so deprived on
account of such taking and restoration. Nothing contained in this Paragraph
shall be deemed to give Landlord any interest in any award made to Tenant for
the taking of personal property and fixtures belonging to Tenant. Each party
waives the provisions of California Code of Civil Procedure Section 1265.130
allowing either party to petition the Superior Court to terminate this Lease in
the event of a partial taking of the premises.

         25.      DEFAULTS AND REMEDIES.

                  (a) The occurrence of any one or more of the following events
shall constitute a default hereunder by Tenant:

                           (1) The vacation or abandonment of the Premises by
Tenant. Abandonment is herein defined to include, but is not limited to, any
absence by Tenant from the Premises for five (5) days or longer while in default
of any material provision of this Lease.

                           (2) The failure by Tenant to make any payment of rent
or additional rent or any other payment required to be made by Tenant hereunder,
within ten (10) days after demand.

                           (3) The failure by Tenant to observe or perform any
of the express or implied covenants or provisions of this Lease to be observed
or performed by Tenant, other than as SPECIFIED in

                                      -21-

<PAGE>

in Subparagraph (25(a) or (2) above where such failure shall continue for a
period of ten (10) business days after the giving of written notice thereof from
Landlord to Tenant, unless the default is of such a character as to require more
than ten (10) business days to cure, and Tenant shall have commenced such cure
within such ten (10)-day period and is pursuing such cure with reasonable
diligence. Notwithstanding the foregoing, if Landlord notifies Tenant that a
particular failure endangers persons or property, Tenant shall be in default
unless Tenant immediately cures the failure.

                           (4) (i) The making by Tenant of any general
assignment for the benefit of creditors; (ii) the filing by or against Tenant of
a petition to have Tenant adjudged a bankrupt or a petition for reorganization
or arrangement under any law relating to bankruptcy (unless, in the case of a
petition filed against Tenant, the same is dismissed within sixty (60) days);
(iii) the appointment of a trustee or receiver to take possession of
substantially all of Tenant's assets located at the Premises or of Tenant's
interest in this Lease, where possession is not restored to Tenant within thirty
(30) days; or (iv) the attachment, execution or other judicial seizure of
substantially all of Tenant's assets located at the Premises or of Tenant's
interest in this Lease where such seizure is not discharged within thirty (30)
days.

                  (b) In the event of any such default by Tenant, in addition to
any other remedies available to Landlord at law or in equity, Landlord shall
have the immediate option to terminate this Lease and all rights of Tenant
hereunder. In the event that Landlord shall elect to so terminate this Lease
then Landlord may recover from Tenant:

                           (1) the worth at the time of award of any unpaid rent
which had been earned at the time of such termination; plus

                           (2) the worth at the time of award of the amount by
which the unpaid rent which would have been reasonably earned after termination
until the time of award exceeds the amount of such rental loss that Tenant
proves could have been reasonably avoided; plus

                           (3) the worth at the time of award of the amount by
which the unpaid rent for the balance of the term after the time of award
exceeds the amount of such rental loss that Tenant proves could be reasonably
avoided; plus

                           (4) any other amount necessary to compensate Landlord
for all the detriment proximately caused by Tenant's failure to perform his
obligations under this Lease or which in the ordinary course of things would be
likely to result therefrom.

         As used in Subparagraphs 25(b)(1) and (2) above, the "worth at the time
of award" is computed by allowing interest at the maximum rate permitted by law
per annum. As used in Subparagraph 25(b)(3) above, the `.worth at the time of
award" is computed by discounting such amount at the discount rate of the
Federal Reserve Bank of San Francisco at the time of award plus one percent
(1%).

                  (c) In the event of any such default by Tenant, Landlord shall
also have the right, with or without terminating this Lease, to re-enter the
Premises and remove all persons and property from the Premises; such property
may be removed and stored in a public warehouse or elsewhere at the cost of and
for the account of Tenant. No re-entry or taking possession of the Premises by
Landlord pursuant to this Subparagraph 25(c) shall be construed as an election
to terminate this Lease unless a written notice of

                                      -22-

<PAGE>

such 'intention 'be -given to Tenant or unless the termination thereof be
decreed by a court of competent jurisdiction.

                  (d) Landlord shall also have the remedy described in
California Civil Code Section 1951.4 (i.e., the right to continue the Lease in
effect and recover rent as it becomes due). In such event, Landlord may continue
this Lease in full force and effect, and this Lease will continue in effect as
long as Landlord does not terminate Tenant's right to possession, and Landlord
shall have the right to collect rent when due. During the period Tenant is in
default, Landlord can enter the Premises and relet them, or any part of them, to
third parties for Tenant's account. Tenant shall be liable immediately to
Landlord for all costs Landlord incurs in reletting the Premises including,
without limitation, brokers' commissions, expenses of remodeling the Premises
required by the reletting, and like costs. Reletting can be for a period shorter
or longer than the remaining term of this Lease. Tenant shall pay to Landlord
the rent due under this Lease on the dates the rent is due, less the rent
Landlord receives from any reletting. No act by Landlord allowed by this
Subparagraph 25(d) shall terminate this Lease unless Landlord notifies Tenant
that Landlord elects to terminate this Lease.

                  If Landlord elects to relet the Premises as provided in this
Subparagraph 25(d), rent that Landlord receives from reletting shall be applied
to the payment of:

                           (1) First, any indebtedness from Tenant to Landlord
other than rent due from Tenant;

                           (2) Second, all costs, including for maintenance,
incurred by Landlord in reletting;

                           (3) Third, rent due and unpaid under this Lease.
After deducting the payments referred to in this Paragraph, any sum remaining
from the rent Landlord receives from reletting shall be held by Landlord and
applied in payment of future rent as rent becomes due under this Lease. In no
event shall Tenant be entitled to any excess rent received by Landlord. If, on
the date rent is due under this Lease, the rent received from the reletting is
less than the rent due on that date, Tenant shall pay to Landlord, in addition
to the remaining rent due, all costs, including for maintenance, Landlord
incurred in reletting that remain after applying the rent received from the
reletting as provided in this Subparagraph 25(d).

                  (e) All rights, options and remedies of Landlord contained in
this Lease shall be construed and held to be cumulative, and no one of them
shall be exclusive of the other, and Landlord shall have the right to pursue any
one or all of such remedies or any other remedy or relief which may be provided
by law or in equity, whether or not stated in this Lease. No waiver of any
default of Tenant hereunder shall be implied from any acceptance by Landlord of
any rent or other payments due hereunder or any omission by Landlord to take any
action on account of such default if such default persists or is repeated. Any
waiver must be in writing and such express waiver shall not affect defaults
other than as specified in the waiver. The consent or approval of Landlord to or
of any act by Tenant requiring Landlord's consent or approval shall not be
deemed to waive or render unnecessary Landlord's consent or approval to or of
any subsequent similar acts by Tenant.

                  (f) As used in this Lease, the term "rent" shall refer to
Annual Basic Rent, Excess Expenses and any other sum required to be paid to
Landlord under this Lease.

                                      -23-

<PAGE>

         26.      ASSIGNMENT AND SUBLETTING.

         No assignment of this Lease or sublease of all or any part of the
Premises shall be permitted, except as provided in this Paragraph 26.

                  (a) Tenant shall not without the prior written consent of
Landlord, which consent shall not be unreasonably withheld, assign or
hypothecate this Lease or any interest herein or sublet the Premises or any part
thereof, or permit the use of the Premises by any party other than Tenant. Any
of the foregoing acts without such consent shall be void and shall, at the
option of Landlord, terminate this Lease. This Lease shall not, nor shall any
interest of Tenant herein, be assignable by operation of law without the written
consent of Landlord. If Tenant is a corporation which, under the laws of
California, is not deemed a public corporation, or is an unincorporated
association or partnership, the transfer, assignment or hypothecation of any
stock or interest in such corporation, association or partnership in the
aggregate in excess of twenty-five percent (25%) shall be deemed an assignment
for the purposes of this Paragraph 26. As an exception to the foregoing, Tenant
may assign the Lease twice without the Landlord's consent to an entity engaged
in retail banking operations following a merger, consolidation, sale or other
transfer of assets by Tenant provided as follows: (1) On the first assignment,
the assignee has total assets equal to a minimum of $135,343,000 adjusted for
inflation and total equity capital equal to 125% of Tenant's total equity
capital at the time of execution of the Lease adjusted for inflation, and (2) On
the second assignment, the assignee has total assets equal to a minimum of
$135,343,000 adjusted for inflation and total equity capital equal to 200% of
Tenant's total equity capital at the time of execution of the Lease adjusted for
inflation. For purposes of the foregoing, Tenant's current total equity capital
is $11,991,000. Adjustments for inflation will be based on an increase in the
Index using September 1996 as the base month and the Index last published prior
to the assignment as the comparison month.

                  (b) If at any time or from time to time during the Term Tenant
desires to assign this Lease or sublet all or any part of the Premises, Tenant
shall give notice to Landlord setting forth the terms and provisions of the
proposed assignment or sublease, and the identity of the proposed assignee or
subtenant. Tenant shall promptly supply Landlord with such information
concerning the business background, type of office use and operation and
financial condition of such proposed assignee or subtenant as Landlord may
reasonably request. Landlord shall have the option, exercisable by notice given
to Tenant within twenty (20) days after Tenant's notice is given, either to
sublet such space from Tenant at the lower of the rental offered by Tenant to
the proposed subtenant, or the rental set forth in this LEASE, FOR THE TERM set
forth in Tenant's notice, or, in the case of an assignment, to terminate this
Lease.

                  (c) Landlord shall be permitted to consider any reasonable
factor in determining whether or not to withhold its consent to a proposed
assignment or sublease. Without limiting the other instances in which it may be
reasonable for Landlord to withhold its consent to assignment or sublease, it
shall be reasonable for Landlord to withhold its consent if any of the following
conditions are not satisfied.

                           (1) The proposed transferee shall be at least as
creditworthy as is Tenant as of the date of this Lease and shall have the
financial strength and stability to perform all obligations under this Lease to
be performed by Tenant;

                           (2) The proposed use of the Premises by the
transferee shall (i) comply with the provisions of Paragraph 8 hereof, (ii) be
consistent with the general character of businesses carried on by tenants of a
first-class office building, (iii) not increase the likelihood of damage

                                      -24-

<PAGE>

or destruction, (iv) not increase the density of occupancy of the Premises or
increase the amount of pedestrian and other traffic through the Building, (v)
not be likely to cause an increase in insurance premiums for insurance policies
applicable to the Building, (vi) not require new tenant improvements
incompatible with thenexisting Building systems and components, (vii) not
require Landlord to make modifications to the Building, (viii) not increase the
electrical or HVAC usage in the Premises, and (ix) not otherwise have or cause a
material adverse impact on the Premises, the Building, the Property, or
Landlord's interest therein;

                           (3) Tenant or such transferee shall, prior to
occupancy, deliver to Landlord any increase in the Security Deposit required by
Landlord's then-current standards for delivery of security deposits by tenants;

                           (4) The proposed transferee shall not be an existing
tenant or occupant of the Building or a person or entity with whom Landlord is
then dealing, or with whom Landlord has had any dealings within the previous six
(6) months, with respect to the leasing of space in the Building;

                           (5) Any ground lessor or mortgagee whose consent to
such transfer is required fails to consent thereto;

                           (6) Any proposed subletting shall not result in more
than two (2) subleases of portions of the Premises being in effect at any one
time during the Term;

                           (7) At the time of the request, no event of default
under this Lease, or under any other lease between Tenant and Landlord or any
affiliate of Landlord, shall have occurred and be continuing;

                           (8) In the case of a sublease, the monthly rental per
square foot of Rentable Area of the Premises offered to the sublessee shall be
not less than the monthly base rent per square foot of Rentable Area then being
offered by Landlord in connection with new leases of comparable space similarly
improved for terms of similar length, and Tenant shall not grant greater amounts
of "free rent" or other economic concessions in excess of the concessions then
being granted by Landlord in connection with similar new leases; and

                           (9) No sub-subleasing shall be permitted.

                           Tenant shall have the burden of demonstrating that
each of the foregoing conditions has been satisfied.

                  (d) Provided Landlord has consented to such assignment or
subletting in writing, Tenant may assign or sublet the Premises to any third
party subject to the following conditions:

                           (1) At the time of the transfer, no event of default
under this Lease, or under any other lease between Tenant and Landlord or any
affiliate of Landlord, shall have occurred and be continuing;

                           (2) The assignment or sublease shall be on the same
terms set forth in the notice given to Landlord;

                           (3) No assignment or sublease shall be valid and no
assignee or sublessee shall take possession of the Premises until an

                                      -25-

<PAGE>

executed counterpart of such assignment or sublease has been delivered to
Landlord;

                           (4) No assignee or sublessee shall have a further
right to assign or sublet without Landlord's consent thereto in each instance;
and

                           (5) (i) In the event Tenant sublets the entire
Premises or any part thereof, Tenant shall deliver to Landlord fifty percent
(50%) of any "excess rent" (as such term is hereinafter defined) within thirty
(30) days of Tenant's receipt thereof pursuant to such subletting. As used
herein, "EXCESS RENT" shall mean any sums or economic consideration per square
foot of the Premises received by Tenant pursuant to such subletting in excess of
the amount of the rent per square foot of the Premises payable by Tenant under
this Lease applicable to the part or parts of the Premises so sublet; provided,
however, that no such "excess rent" shall be payable until Tenant shall have
recovered therefrom the costs incurred by Tenant for brokerage commissions or
tenant improvements in conjunction with such subletting.

                                (ii)     In the event Tenant assigns this Lease,
Tenant shall deliver to Landlord fifty percent (50%) of any "excess payment" (as
such term is hereinafter defined) within thirty (30) days of Tenant's receipt
thereof pursuant to such assignment. As used herein, "EXCESS PAYMENT" shall mean
the amount of payment received for such assignment of this Lease in excess of
the rent payable by Tenant under this Lease; provided, however, that no "excess
payment" shall be payable until Tenant shall have recovered therefrom the costs
incurred by Tenant for brokerage commissions or tenant improvements in
conjunction with such assignment.

                  (c) Notwithstanding the provisions of Subparagraphs 26(a) and
(b) above, Tenant may assign this Lease or sublet the Premises or any portion
thereof, without Landlord's consent and without extending any recapture or
termination option to Landlord, to any corporation which controls, is controlled
by or is under common control with Tenant, provided that (i) the assignee or
sublessee assumes, in full, the obligations of Tenant under this Lease, (ii)
Tenant remains fully liable under this Lease, and (iii) the use of the Premises
under Paragraph 8 remains unchanged.

                  (d) No subletting or assignment shall release Tenant of
Tenant's obligations under this Lease or alter the primary liability of Tenant
to pay the Rent and to perform all other obligations to be performed by Tenant
hereunder. The acceptance of Rent by Landlord from any other person shall not be
deemed to be a waiver by Landlord of any provision hereof. Consent to one
assignment or subletting shall not be deemed consent to any subsequent
assignment or subletting. In the event of default by an assignee or subtenant of
Tenant or any successor of Tenant in the performance of any of the terms hereof,
Landlord may proceed directly against Tenant without the necessity of exhausting
remedies against such assignee, subtenant or successor. Landlord may consent to
subsequent assignments of the Lease or sublettings or amendments or
modifications to the Lease with assignees of Tenant, without notifying Tenant,
or any successor of Tenant, and without obtaining its or their consent thereto
and any such actions shall not relieve Tenant of liability under this Lease.

                  (e) If Tenant assigns the Lease or sublets the Premises or
requests the consent of Landlord to any assignment or subletting or if Tenant
requests the consent of Landlord for any act that Tenant proposes to do, then

                                      -26-

<PAGE>

Tenant shall, upon demand pay Landlord an administrative fee of Five Hundred and
00/100 Dollars ($500.00) plus any attorneys' fees reasonably incurred by
Landlord in connection with such act or request.

                  (f) Notwithstanding the requirement of Landlord's approval
prior to any assignment or subletting, if this Lease is assigned to any person
or entity pursuant to the provisions of the Bankruptcy Code, 75% of any excess
payment (as defined in subparagraph 26(d)(5)(ii)) shall be paid or delivered to
Landlord, shall be and remain the exclusive property of Landlord and shall not
constitute property of Tenant or of any bankruptcy estate of Tenant. Any and all
monies or other considerations constituting Landlord's property under the
preceding sentence not paid or delivered to Landlord shall be held in trust for
the benefit of Landlord and be promptly paid or delivered to Landlord. Any
person or entity to which this Lease is assigned pursuant to the provisions of
the Bankruptcy Code shall be deemed without further act or deed to have assumed
all of the obligations arising under this Lease on and after the date of such
assignment. Any such assignee shall upon demand execute and deliver to Landlord
an instrument confirming such assumption.

         27.      SUBORDINATION. At the election of Landlord or any first
mortgagee with a lien on the Building or any ground lessor with respect to the
Building, Tenant agrees that this Lease shall be subject and subordinate at all
times to: (a) all ground leases or underlying leases which may now exist or
hereafter be executed affecting the Building or the land upon which the Building
is situated or both; and (b) the lien of any mortgage or deed of trust which may
now exist or hereafter be executed in any amount for which the Building, land,
ground leases or underlying leases, or Landlord's interest or estate in any of
said items is specified as security. Notwithstanding the foregoing, Landlord
shall have the right to subordinate or cause to be subordinated any such ground
leases or underlying leases or any such liens to this Lease. In the event that
any ground lease or underlying lease terminates for any reason or any mortgage
or deed of trust is foreclosed or a conveyance in lieu of foreclosure is made
for any reason, Tenant shall, notwithstanding any subordination, attorn to and
become the tenant of the successor-in-interest to Landlord, at the option of
such successor in interest. Tenant covenants and agrees to execute and deliver,
upon demand by Landlord and in the form requested by Landlord, any additional
documents evidencing the priority or subordination of this Lease with respect to
any such ground leases or underlying leases or the lien of any such mortgage or
deed of trust. Tenant hereby irrevocably appoints Landlord as attorney-in-fact
of Tenant to execute, deliver and record any such documents in the name and on
behalf of Tenant.

         28.      ESTOPPEL CERTIFICATE

                  (a) Within ten (10) business days following the giving of any
written request which Landlord may make from time to time, Tenant shall execute
and deliver to Landlord a statement certifying: (i) the date of commencement of
this Lease; (ii) the fact that this Lease is unmodified and in full force and
effect (or, if there have been modifications hereto, that this Lease is in full
force and effect, as modified, and stating the date and nature of such
modifications); (iii) the date to which the rental and other sums payable under
this Lease have been paid; (iv) the fact that there are no current defaults
under this Lease by either Landlord or Tenant except as specified in Tenant's
statement; and (v) such other matters requested by Landlord. Landlord and Tenant
intend that any statement delivered pursuant to this Paragraph 28 may be relied
upon by any mortgagee, beneficiary, purchaser or prospective purchaser of the
Building or any interest therein.

                  (b) Tenant's failure to deliver such statement within such
time shall be conclusive upon Tenant (i) that this Lease is in full force and
effect, without modification except as may be represented by Landlord, (ii) that

                                      -27-

<PAGE>

there are no uncured defaults in Landlord's performance, and (iii) that not more
than one (1) month's rental has been paid in advance.

         29.      INTENTIONALLY DELETED.

         30.      RULES AND REGULATIONS. Tenant shall faithfully observe and
comply with the "Rules and Regulations," a copy of which is attached hereto and
marked Exhibit "C," and all reasonable and nondiscriminatory modifications
thereof and additions thereto from time to time put into effect by Landlord
according to Landlord's discretion. Landlord shall not be responsible to Tenant
for the violation or non-performance by any other tenant or occupant of the
Building of any of said Rules and Regulations.

         31.      CONFLICT OF LAWS; INTERPRETATION. This Lease shall be governed
by and construed pursuant to the laws of the State of California. The provisions
of this Lease shall be construed in accordance with the fair meaning of the
language used and shall not be strictly construed against either party.

         32.      SUCCESSORS AND ASSIGNS. Except as otherwise provided in this
Lease, all of the covenants, conditions and provisions of this Lease shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective heirs, personal representatives, successors and assigns.

         33.      SURRENDER OF PREMISES The voluntary or other surrender of this
Lease by Tenant, or a mutual cancellation thereof, shall not work a merger, and
shall, at the option of Landlord, operate as an assignment to it of any or all
subleases or subtenancies.

         34.      ATTORNEYS' FEES. If Tenant or Landlord shall be in breach or
default under this Lease, such party (the "DEFAULTING PARTY") shall reimburse
the other party (the "NONDEFAULTING PARTY") upon demand for any costs or
expenses that the Nondefaulting Party incurs in connection with any breach or
default of the Defaulting Party under this Lease, including the expense of an
attorney engaged in efforts to enforce the provisions of this Lease against the
Defaulting Party, whether or not suit is commenced or judgment entered. Such
costs shall include legal fees and costs incurred for the negotiation of a
settlement, enforcement of rights or otherwise. Furthermore, if any action for
breach of or to enforce the provisions of this Lease is commenced, the court in
such action shall award to the party in whose favor a judgment is entered, a
reasonable sum as attorneys' fees and costs. The losing party in such action
shall pay such attorneys' fees and costs. Tenant shall also indemnify Landlord
against and hold Landlord harmless from all costs, expenses, demands and
liability Landlord may incur if Landlord becomes or is made a party to any claim
or action (a) instituted by Tenant against any third party, or by any third
party against Tenant, or by or against any person holding any interest under or
using the Property by license of or agreement with Tenant unless Landlord is
adjudicated as having been liable; (b) for foreclosure of any lien for labor or
material furnished to or for Tenant or such other person; (c) otherwise arising
out of or resulting from any act or transaction of Tenant or such other person;
or (d) necessary to protect Landlord's interest under this Lease in a bankruptcy
proceeding, or other proceeding under Title 11 of the United States Code, as
amended. Tenant shall protect and defend Landlord against any such claim or
action at Tenant's expense with counsel reasonably acceptable to Landlord, or at
Landlord's election, Tenant shall reimburse Landlord for any legal fees or costs
Landlord incurs in any such claim or action.

         35.      PERFORMANCE BY TENANT. All covenants and agreements to be
performed by Tenant under any of the terms of this Lease shall be performed by
Tenant at Tenant's sole cost and expense and without any abatement of rent. If
Tenant shall fail to pay any sum of money, other than

                                      -28-

<PAGE>

Annual Basic Rent, required to be paid by it hereunder or shall fail to perform
any other act on its part to be performed hereunder, and such failure shall
continue for ten (10) days after notice thereof by Landlord, Landlord may,
without waiving or releasing Tenant from obligations of Tenant, but shall not be
obligated to, make any such payment or perform any such other act on Tenant's
part to be made or performed as in this Lease provided. All sums so paid by
Landlord and all necessary incidental costs together with interest thereon at
the rate provided in Paragraph 53 below, from the date of such payment by
Landlord, until paid, shall be payable to Landlord on demand. Tenant covenants
to pay any such sums, and Landlord shall have (in addition to any other right or
remedy of Landlord) the same rights and remedies in the event of the non-payment
thereof by Tenant as in the case of default by Tenant in the payment of the
Annual Basic Rent. Tenant acknowledges that late payment by Tenant to Landlord
of any sums due hereunder will cause Landlord to incur costs not contemplated by
this Lease, the exact amount of such costs being extremely difficult and
impracticable to fix. Such costs include, without limitation, processing and
accounting charges, and late charges that may be imposed on Landlord by the
terms of any lease, encumbrance, note or other commitment covering the premises.
Therefore, if any payment due from Tenant is not received by Landlord when due,
Tenant shall pay to Landlord an additional sum of five percent (5%) of the
overdue payment as a late charge. The parties agree that this late charge
represents a fair and reasonable estimate of the costs that Landlord will incur
by reason of late payment by Tenant. Acceptance of any late charge shall not
constitute a waiver of Tenant default with respect to the overdue amount, or
prevent Landlord from exercising any of the other rights and remedies available
to Landlord. Further, following any second consecutive late payment of rent,
Landlord shall have the option to require that beginning with the first payment
of rent due following the date such late payment was due, rent shall no longer
be paid in monthly installments but shall be payable three (3) months in
advance.

         36.      MORTGAGEE PROTECTION . In the event of any default on the part
of Landlord, Tenant will give notice by registered or certified mail to any
beneficiary of a deed of trust or mortgagee under a mortgage covering the
Premises whose address shall have been furnished to Tenant, and shall offer such
beneficiary or mortgagee a reasonable opportunity to cure the default, including
time to obtain possession of the Premises by power of sale or a judicial
foreclosure, if such should prove necessary to effect a cure. As used in this
Lease, mortgagee includes without limitation the beneficiary(ies) of any deed of
trust.

         37.      DEFINITION OF LANDLORD. The term "LANDLORD" as used in this
Lease, so far as covenants or obligations on the part of Landlord are concerned,
shall be limited to mean and include only the owner or owners, at the time in
question, of the fee of the Premises or if there is a ground lease or other
master lease then in effect, the owner of the leasehold tenant's rights under
such ground or master lease. In the event of any transfer, assignment or other
conveyance or transfers of any such title or leasehold, Landlord herein named
(and in case of any subsequent transfers or conveyances, the then grantor) shall
be automatically freed and relieved from and after the date of such transfer,
assignment or conveyance of all liability as respects the performance of any
covenants or obligations on the part of Landlord contained in this Lease
thereafter to be performed and, without further agreement, the transferee of
such title shall be deemed to have assumed and agreed to observe and perform any
and all obligations of Landlord hereunder, during its ownership of the Premises.
Landlord may transfer its interest in the Premises without the consent of Tenant
and such transfer or subsequent transfer shall not be deemed a violation on
Landlord's part of any of the terms and conditions of this Lease.

                                      -29-

<PAGE>

         38.      WAIVER. The waiver by Landlord of any breach of any breach of
any term, covenant or condition herein contained shall not be deemed to be a
waiver of any subsequent breach of the same or any other term, covenant or
condition herein contained, nor shall any custom or practice which may grow up
between the parties in the administration of the terms hereof be deemed a waiver
of, or in any way affect, the right of Landlord to insist upon the performance
by Tenant in strict accordance with said terms. The subsequent acceptance of
rent hereunder by Landlord shall not be deemed to be a waiver of any breach by
Tenant of any term, covenant or condition of this Lease, regardless of
Landlord's knowledge of such breach at the time of acceptance of such rent.

         39.      IDENTIFICATION OF TENANT. If more than one person executes
this lease as Tenant, (a) each of them is jointly and severally liable for the
keeping, observing and performing of all of the terms, covenants, conditions,
provisions and agreements of this Lease to be kept, observed and performed by
Tenant, and (b) the term "TENANT" as used in this Lease shall mean and include
each of them jointly and severally and the act of or notice from, or notice or
refund to, or the signature of, any one or more of them, with respect to the
tenancy or this Lease including, but not limited to, any renewal, extension,
expiration, termination or modification of this Lease, shall be binding upon
each and all of the persons executing this Lease as Tenant with the same force
and effect as if each and all of them had so acted or so given or received such
notice or refund or so signed.

         40.      PARKING. TENANT shall have the right to park in the Building's
parking facilities in common with other tenants of the Building upon terms and
conditions as may from time to time be established by Landlord. Landlord agrees
to provide parking on the basis of four (4) stalls per 1,000 square feet of
leased space. There shall be no charge for parking during the term of the Lease,
including any options to extend unless required by any governmental authority.
Tenant shall be provided four (4) reserved parking spaces in the visitors
parking area of the Building as shown on the attached Exhibit D, subject to
current and future governmental requirements. At Tenant's request and at
Tenant's expense, Landlord shall mark the four spaces as "Reserved for Tenant."
Landlord shall not be responsible for policing the reserved parking spaces at
any time during the term of the Lease, including any options to extend. Tenant
agrees not to overburden the parking facilities and agrees to cooperate with
Landlord and other Tenants in the use of the parking facilities. Landlord
reserves the right in its absolute discretion to determine whether the parking
facilities are becoming crowded and to allocate and assign parking spaces among
Tenant and the other tenants, and to alter, relocate, reduce or otherwise change
the parking facilities and to take measures with respect to the parking area
from time to time in order to comply with the policies of any applicable
Transportation Plan.

         41.      TERMS AND HEADINGS. The words "LANDLORD" and "TENANT' as used
herein shall include the plural as well as the singular. Words used in any
gender include other genders. The Paragraph headings of this Lease are not a
part of this Lease and shall have no effect upon the construction and
interpretation of any part hereof.

         42.      EXAMINATION OF LEASE. Submission of this instrument for
examination or signature by Tenant does not constitute a reservation of or
option for Lease, and it is not effective as a Lease or otherwise until
execution ,by and delivery to both Landlord and Tenant.

         43.      TIME. Time is of the essence with respect to the performance
of every provision of this Lease in which time or performance is a factor,
except for Landlord's obligation to deliver the Premises.

                                      -30-

<PAGE>

         44.      PRIOR AGREEMENTS; AMENDMENTS. This Lease contains all of the
agreements of the parties hereto with respect to any matter covered or mentioned
in this Lease, and no prior agreement or understanding pertaining to any such
matter shall be effective for any purpose. No provisions of this Lease may be
amended or added to except by an agreement in writing signed by the parties
hereto or their respective successors-in-interest.

         45.      SEPARABILITY. Any provision of this Lease which shall prove to
be invalid, void or illegal in no way affects, impairs or invalidates any other
provision hereof, and such other provisions shall remain in full force and
effect.

         46.      RECORDING. Neither Landlord or Tenant shall record this Lease
nor a short form memorandum thereof without the consent of the OTHER.

         47.      LIMITATION ON LIABILITY. In consideration of the benefits
accruing hereunder, Tenant and all successors and assigns covenant and agree
that, in the event of any actual or alleged failure, breach or default hereunder
by Landlord:

                  (a) Tenant's sole and exclusive recourse shall be against
Landlord's interest in the Premises and the Building. Tenant shall not have any
right to satisfy any judgment which it may have against Landlord from any other
assets of Landlord.

                  (b) No partner, stockholder, director, officer, employee or
beneficiary or trustee (collectively, "PARTNER") of Landlord shall be sued or
named as a party in any suit or action (except as may be necessary to secure
jurisdiction over Landlord).

                  (c) No service of process shall be made against any Partner of
Landlord (except as may be necessary to secure jurisdiction over Landlord).

                  (d) No Partner of Landlord shall be required to answer or
otherwise plead to any service of process.

                  (e) No judgment will be taken against any Partner of Landlord.

                  (f) Any judgment taken against any Partner of Landlord may be
vacated and set aside at any time nunc pro tunc.

                  (g) No writ of execution will ever be levied against the
assets of any Partner of Landlord.

                  (h) These covenants and agreements are enforceable both by
Landlord and also by any Partner of Landlord.

         48.      RIDERS Clauses, plats and riders, if any, signed by Landlord
and Tenant and affixed to this Lease are a part hereof.

         49.      SIGNS AND AUCTIONS. Tenant shall have the right to have its
name listed in the Building directory and Tenant shall also have the right to
place its name on the exterior upper fascia of the northwest side of the
Building facing Douglas Boulevard where the North American Title Insurance sign
is currently located. Tenant shall not be responsible for the removal of the
existing sign or for any costs associated with restoring the Building following
removal of the existing sign. The size of Tenant's listing in the Building
directory will be commensurate with the Tenant's Percentage. Tenant's sign on
the Building must be approved by Landlord, the City of Roseville Project Review
Committee and all other governmental agencies

                                      -31-

<PAGE>

having jurisdiction over the sign. In addition to complying with applicable law,
Tenant's sign must comply with all governmental rules, regulations and
ordinances governing Tenant's sign and with the Johnson Ranch Signage Criteria
for 2220, 2240, 2250, 2260 and 2270 Douglas Boulevard, Roseville, California.
Landlord will not deny Tenant's sign if Tenant's sign is in compliance with all
governmental rules, regulations and ordinances governing Tenant's sign and with
the Johnson Ranch Signage Criteria.

                  With respect to any sign installed by Tenant or on behalf of
Tenant, Tenant shall promptly perform and pay the cost of all of the following:
(i) design and fabrication; (ii) installation; (iii) maintenance of Tenant's
sign in good order and condition; (iv) repairs to Tenant's sign; (v) removal not
later than the last day of the Term whether by expiration OR EARLIER termination
of the Lease; and (vi) repairs of any damage to the Building or the monument
caused by Tenant's sign or the removal thereof; and to Landlord's reasonable
satisfaction, returning the Building or the monument to the condition which
existed prior to installation of Tenant's sign, including, without limitation,
patching holes and painting so that no visible evidence of the sign can be seen.
Any additional charge for the electricity for Tenant's sign shall be paid by
Tenant concurrently with the monthly rent payment. Tenant shall remove the sign
and make repairs required by this Paragraph 49 within five (5) days after
receipt of notice from LANDLORD terminating Tenant's right, and prior to
expiration of the Lease.

                  Tenant acknowledges and agrees that any sign rights granted by
Landlord are not exclusive. Landlord may allow other tenants to place signs on
the Building or on the monument; provided, however, no other sign shall be
permitted on the northwest side of the Building. Any right to have a sign on the
Building or the monument shall cease and terminate if this Lease is assigned or
otherwise transferred, or the Premises or any part thereof are sublet, or if an
event of default occurs. As an exception to the foregoing, Landlord will allow
Tenant to transfer the right to the Building sign twice in connection with an
assignment of the Lease to an entity engaged in retail banking operations
following a merger, consolidation, sale or other transfer of assets by Tenant
provided as follows: (1) On the first assignment, the assignee has total assets
equal to a minimum of $135,343,000 adjusted for inflation and total equity
capital equal to 125% of Tenant's total equity capital at the time of execution
of the Lease adjusted for inflation, and (2) On the second assignment, the
assignee has total assets equal to a minimum of $135,343,000 adjusted for
inflation and total equity capital equal to 200% of Tenant's total equity
capital at the time of execution of the Lease adjusted for inflation. For
purposes of the foregoing, Tenant's current total equity capital is $11,991,000.
Adjustments for inflation will be based on an increase in the Index using
September 1996 as the base month and the Index last published prior to the
assignment as the comparison month

                  Tenant shall not conduct any auction on the Premises or in the
Building.

         50.      MODIFICATION FOR LENDER. If, in connection with obtaining
construction, interim or permanent financing for the Building, the lender shall
request reasonable modifications in this Lease as a condition to such financing,
Tenant will not unreasonably withhold, delay or defer its consent thereto,
provided that such modifications do not increase the obligations of Tenant
hereunder or materially adversely affect the leasehold interest hereby created
or Tenant's rights hereunder.

         51.      ACCORD AND SATISFACTION. No payment by Tenant or receipt by
Landlord of a lesser amount than the rent payment herein stipulated shall be
deemed to be other than on account of the rent, nor shall any endorsement or
statement on any check or any letter accompanying any check or payment as rent
be deemed an accord and satisfaction, and Landlord

                                      -32-

<PAGE>

may accept such check or payment without prejudice to Landlord's right to
recover the balance of such rent or pursue any other remedy provided in this
Lease.

         52.      AUTHORITY. Each of the persons executing this Lease on behalf
of Tenant warrants and represents that Tenant is a duly organized and validly
existing entity, that Tenant has full right and authority to enter into this
Lease and that the persons signing on behalf of Tenant are authorized to do so
and have the power to bind Tenant to this Lease. Tenant shall provide Landlord
upon request with evidence reasonably satisfactory to Landlord confirming the
foregoing representations.

         53.      INTEREST ON UNPAID RENT. Rent not paid when due shall bear
interest from the date due until paid at the rate of fifteen percent (15%) per
annum or the maximum lawful rate that Landlord may charge to Tenant under
applicable laws, whichever is less.

         54.      DISPUTED SUMS. If Tenant disputes any amount due Landlord
under the terms of this Lease, including, without limitation, Direct Expenses or
sums advanced by Landlord to cure Tenant's default, Tenant shall pay the amount
demanded by Landlord. Upon resolution of the dispute, whether by agreement,
settlement or judgment entered following litigation, any amount to be refunded
by Landlord shall be paid within thirty (30) days of resolution of the dispute.
Failure by Tenant to pay any disputed sum until resolution shall constitute a
default under this Lease.

         55.      OPTION TO EXTEND. Landlord hereby grants to Tenant the right
and option to extend the term of this Lease for one (1) additional period of
five (5) years (the "Option Term"). Provided Tenant is not in default under the
Lease with any applicable cure period having expired, Tenant may exercise the
option by sending written notice to Landlord at least one hundred eighty (180)
days prior to the expiration of the term. Annual Basic Rent for the Option Term
shall be the Annual Basic Rent (adjusted for any allowances for tenant
improvements or other tenant concessions) being entered into for comparable
space in buildings located at 2220, 2240 and 2260 Douglas Boulevard, Roseville,
California, for the period of four (4) months prior to the date the Option Term
is to commence. In no event shall the Annual Basic Rent be less than the Annual
Basic Rent in effect at the time of exercise of the option. The Direct Expense
Base shall be the actual expenses for the calendar year in which the Option Term
commences. If Tenant is in default on the date the Option Term is to commence
with any applicable cure period having expired, at Landlord's option, the Option
Term shall not commence and this Lease shall expire at the end of the term as
described in Paragraph 3 above. This option to extend is personal to Tenant and
may not be exercised by any assignee or subtenant. If and only if Tenant is
represented by a broker during the discussions concerning Tenant's exercise of
its option to extend and a commission for the extension is actually paid by
Landlord to Landlord's broker, Tenant's broker shall receive one-half of the
commission paid to Landlord's broker.

         56.      EXPANSION RIGHTS. Suite 110 (comprised of 2,203 rentable
square feet) is currently leased to Countrywide Funding Corporation with a term
ending June 24, 1998. Countrywide has the option to extend the term for an
additional period of two (2) years. The Landlord is willing to give Tenant the
right to expand into Suite 110 upon the expiration of the Countrywide lease
term, either on June 24, 1998 or at the expiration of the two-year extended
term. Landlord shall send written notice to Tenant that Countrywide is not
exercising its option to extend its term, or, if applicable, prior to the
expiration of the two-year extended term. The lease terms for Suite 110 shall be
the same as the lease terms for Suite 100, other than the annual rental rate and
the provisions regarding the tenant improvement allowance. The annual rental
rate shall be the same rent (adjusted for any

                                      -33-

<PAGE>

allowances for tenant improvements or other tenant concessions) being entered
into for comparable space in buildings at 2220, 2240 and 2260 Douglas Boulevard
for the period of four (4) months prior to the date the expansion area is to be
occupied by Tenant. Tenant and Landlord shall have ninety (90) days from the
date of Landlord's notice to agree in good faith upon the rental rate and the
tenant improvement allowance to be granted by the Landlord with respect to the
expansion space, if any. If agreement is not reached before the end of the
ninety 90 days, Tenant's rights to expand into Suite 110 shall terminate. If and
only if Tenant is represented by a broker during the discussions concerning
Tenant's expansion and a commission for the expansion is actually paid by
Landlord to Landlord's broker, Tenant's broker shall received one-half of the
commission paid to Landlord's broker.

         Tenant agrees that each of the foregoing covenants and agreements shall
be applicable to any covenant or agreement either expressly contained in this
Lease or imposed by any statute or at common law.

         EXHIBITS "A," "A-1," "A-2," "A-3," "B" and "C" attached hereto are
incorporated herein by reference.

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

LANDLORD.                                        TENANT:

LUM YIP KEE, LIMITED,                            AMERICAN RIVER BANK, a
a Hawaii corporation                             California corporation

By: /s/                                          By: /s/ WILLIAM L. YOUNG
    -----------------------------                -----------------------------
Its:                                             Name: William L. Young
Date:                                            Its:  President /CEO
                                                 Date: 8/29/96

SAN TEI COMPANY,                                 By: /s/ DAVID T. TABER
a Hawaii limited partnership                         -------------------------
                                                 Name:  David Taber
                                                 Its:   EVP
By:      TUNG TE CORPORATION,                    Date:  8/29/96
         General Partner
         By: /s/
             ----------------------------
         Its:
Date:

Doing business as Sandalwood Land Company

                                       34

<PAGE>
                                   EXHIBIT A-2
                                   PRELIMINARY
                       TENANT IMPROVEMENT COST ITEMIZATION

TENANT:                    American River Bank
BUILDING:                  2240 Douglas Boulevard
SUITE NUMBER:              100
SQUARE FEET:               U-3,445; R-3,790
SPACE PLANNER:             Stafford Space Planning
PLAN NUMBER:               PSP - A.1
DATE OF PLANS:             March 14, 1996
                           March 26, 1996
ESTIMATED BY:              HMH
CHECKED BY:                TR
DATE:                      March 27, 1996

---------------------------------------------- ---------------------------------
ITEM                                           AMOUNT
---------------------------------------------- ---------------------------------
General Conditions                             $14,092
---------------------------------------------- ---------------------------------
Demolition                                     5,550
---------------------------------------------- ---------------------------------
Casework Storage Room                          1,960
---------------------------------------------- ---------------------------------
         Safety Deposit Viewing Room           260
---------------------------------------------- ---------------------------------
         Employee Lounge                       1,930
---------------------------------------------- ---------------------------------
         ATM Storage                           1,585
---------------------------------------------- ---------------------------------
         Angle Back Counter                    3,655
---------------------------------------------- ---------------------------------
         Merchant Teller                       840
---------------------------------------------- ---------------------------------
         Front Angle Counter                   16,650
---------------------------------------------- ---------------------------------
         3 Pass-through Gates                  4,950
---------------------------------------------- ---------------------------------
         Partitions                            525
---------------------------------------------- ---------------------------------
Acoustical Ceiling - Repairs                   3,240
---------------------------------------------- ---------------------------------
Doors, Frames & Hardware                       6,020
---------------------------------------------- ---------------------------------
Carpentry                                      3,750
---------------------------------------------- ---------------------------------
Metal Studs/DrywalI/I nstallation              8,415
---------------------------------------------- ---------------------------------
Final Clean                                    425
---------------------------------------------- ---------------------------------
Interior Windows                               4,423
---------------------------------------------- ---------------------------------
Paint/Stain/Lacquer                            7,450
---------------------------------------------- ---------------------------------
Ceramic Tile                                   970
---------------------------------------------- ---------------------------------
Floor Covering                                 10,130
---------------------------------------------- ---------------------------------
Mechanical                                     2,510
---------------------------------------------- ---------------------------------
Electrical                                     17,176
---------------------------------------------- ---------------------------------
Plumbing                                       4,480
---------------------------------------------- ---------------------------------
Fire Protection                                2,160
---------------------------------------------- ---------------------------------
Vertical Blinds                                645
---------------------------------------------- ---------------------------------
Wall Covering - Allowance                      2,160
---------------------------------------------- ---------------------------------
Appliances                                     700
---------------------------------------------- ---------------------------------
Corridor Wallcover Remove and Re-Paint         1,680
                                               -----
---------------------------------------------- ---------------------------------
         Sub-total                             128,331
---------------------------------------------- ---------------------------------

---------------------------------------------- ---------------------------------
Contractor's Fee @ 8%                          10,266
---------------------------------------------- ---------------------------------
Contingency                                    2,500
---------------------------------------------- ---------------------------------
Space Planning, Construction Drawings,         5,903
Blueprint Allowance
---------------------------------------------- ---------------------------------
Permit Allowance                               1,500
---------------------------------------------- ---------------------------------
Construction Administration - SF               1,722
---------------------------------------------- ---------------------------------
                  TOTAL                        $150,222
---------------------------------------------- ---------------------------------
                                               43.61 per usable square foot
---------------------------------------------- ---------------------------------
Total to be furnished and installed by         $103,350
Landlord's contractor
---------------------------------------------- ---------------------------------
                                               $30.00 per usable square foot
---------------------------------------------- ---------------------------------
Total to be Installed by Landlord's contractor $46,872
and paid for In cash by Tenant In accordance
with Paragraph I I of the Work Letter Agreement,
"Payment for Above-Allowance Work".
---------------------------------------------- ---------------------------------

<PAGE>

NOTES:

1    All costs are based on the building standard specifications.
2.   Prices shown are based on allowances only, these costs are for budget
     purposes only.
3.   Prices shown are preliminary and are subject to adjustments due to final
     City approved drawings and final Contractor's estimates.
4.   Telephone and computer cabling furnished and Installed by Tenant.
5.   Wall cover Is an allowance only for fabric.
6.   Add for Bristol Point Carpet = $3,059.00.
7.   Add for Milano Carpet = $12,851.00.
8.   Add for upgraded site lights (ATM) = $3,223.00.
9.   Add for sheet metal backing at safe deposit = $900.00.
10.  Add for Face Frame construction at casework = $2,405.00.
11.  Add for HVAC unit for ATM Room = $6,900.00.

LANDLORD:                                     TENANT:

 LUM YIP KEE, LIMITED,                        AMERICAN RIVER BANK,
a Hawaii corporation                                   a California corporation

 By: /s/                                      By:   /s/ WILLIAM L. YOUNG
     ------------------------------                 ----------------------------
 Its                                          Name: William L. Young
 Date:                                        Its:  President/CEO
                                              Date:   8/29/96

 SAN TEI COMPANY,                             By:   /s/ DAVID T. TABER
 a Hawaii limited partnership                       ----------------------------
                                              Name: David Taber
 By:     TUNG TE CORPORATION,                 Its:  EVP
         General Partner                      Date:   8/29/96
 Date:
 Doing business as Sandalwood Land Company

<PAGE>

                                   EXHIBIT A-3
                        TENANT IMPROVEMENT SPECIFICATIONS
                               FOR ALLOWANCE WORK

 ITEM                                      SPECIFICATIONS

-------------------------- -----------------------------------------------------
Partitioning:              3-5/8"  metal  studs  at 24" on  center  with  5/8"
                           drywall  9'2"  high.  Corridors  to be  fire  rated
                           drywall.  Walls  to  be  painted  to be  taped  and
                           textured.  Walls  to  receive  wallcovering  to  be
                           taped and sanded  smooth.  Walls to be sealed  with
                           foam  tape  where  wall   partition   joins  window
                           sections.
-------------------------- -----------------------------------------------------
Doors:                     Calwood or equal prefinished solid core plain sliced
                           red oak doors with hardwood edges sized 3'0" x 8'10"
                           x 1-3/4". Corridor doors to be 20 minute labeled.
                           Door frames to be 9'0" high metal, 20 minute labeled
                           as approved by project architect.
-------------------------- -----------------------------------------------------
Door Hardware:             ENTRY DOORS: Hardware to be two (2) pair ball bearing
                           hinges with closer, floor stops and Schlage Oly "D"
                           series or equal mortise lock, all with polished
                           chromium finish.
                           PASSAGE DOORS: Hardware to be two (2) pair hinges
                           with floor or wall stop as required and Schlage Oly
                           "D" series or equal passage or locking lock, all with
                           polished chromium finish.
                           DOOR CLOSERS: 4041 CUSH or equal.
-------------------------- -----------------------------------------------------
Ceiling:                   T-BAR GRID: Donn DXL fire rated T-bar Grid suspension
                           system.
                           CEILING TILE: 2' x 4' Armstrong "Minaboard" flat
                           lay-in, nondirectional, fissured acoustical tile.
-------------------------- -----------------------------------------------------
Floor Covering:            Carpet: Carpet: Designweave "Westbridge IT" DuPont
                           Antron, dense tufted cut pile, continuous filament
                           nylon with 30 ounce per square yard pile weight, .218
                           inch pile height, 11.0 stitches per inch, direct glue
                           down installation.
-------------------------- -----------------------------------------------------
Exterior Window Covering:  Graber 3-1/2" PVC "Suntura" white vertical louvre
                           drapes suspended from a Graber G-71 2" x 1-3/4"
                           headrail.
-------------------------- -----------------------------------------------------
Electrical Duplex ouytlets: OUTLETS:  Specification  grade  Hubbell CR series,
                            or equal.
                            WIRING: T.H.H.N. No. 12.
-------------------------- -----------------------------------------------------
Elecgtrical Wall Switches: Specification grde Hubbell CS series, or equal
-------------------------- -----------------------------------------------------
Light Fixtures:            FLUORESCENT  FIXTURES:  2' x 4' Lithonia Model No.
                           2PM3GB340-186-ES-SLP,  18 cell, parabolic,  3 lamp
                           fixture, or equal.
                           FIXTURE LENS LIGHT BULBS:  Lithonia 1.10 lens with
                           cool white fluorescent tubes.
-------------------------- -----------------------------------------------------
Wall Paint:                All walls to be painted with one finish coat.
-------------------------- -----------------------------------------------------
Fire Sprinklers:           Semi-recessed chrome heads with chrome ceiling
-------------------------- -----------------------------------------------------

<PAGE>

                                    EXHIBIT B
                              WORK LETTER AGREEMENT

Gentlemen:

         You (hereinafter called "Tenant") and we (hereinafter called
"Landlord") are executing simultaneously with this Work Letter Agreement
("Agreement"), a written Standard Form Office Lease (the "Lease") covering those
certain premises more particularly described in Exhibits "A" and "A-I" to the
Lease (the "Premises") in the building addressed at 2240 Douglas Boulevard,
Roseville, California.

         To induce Tenant to enter into the Lease (which is hereby incorporated
by reference to the extent that the provisions of this agreement may apply
thereto) and in consideration of the mutual covenants hereinafter contained,
Landlord and Tenant mutually agree as follows:

         1.  DEFINITIONS. Unless otherwise defined in this Agreement, the
capitalized terms used herein shall have the meaning assigned to them in the
Lease.

         2.  REPRESENTATIVES. Landlord hereby appoints Todd Rudd as Landlord's
representative to act for Landlord in all matters covered by this Agreement.
Tenant hereby appoints David Taber as Tenant's representative to act for Tenant
in all matters covered by this Agreement. All inquiries, requests, instructions,
authorizations and other communications with respect to the matters covered by
this Agreement shall be related to Landlord's representative or Tenant's
representative, as the case may be. Tenant will not make any inquiries of or
request to, and will not give any instructions or authorizations to, any other
employee or agent of Landlord, including Landlord's architects, engineers, and
contractors or any of their agents or employees, with regard to matters covered
by this Agreement. Either Landlord or Tenant may change its representative at
any time by written notice to the other.

         3.  TENANT SPACE PLAN AND PRELIMINARY TENANT IMPROVEMENT COST
ITEMIZATION. Landlord and Tenant hereby approve the preliminary space layout and
improvement plan for the premises (the "Tenant Space Plan") attached to the
Lease as Exhibit "A-1" and Landlord's itemization of the cost of constructing
the improvements to the Premises desired by Tenant ("Tenant Improvement Cost
Itemization") attached to the Lease as Exhibit "A-2". The Tenant Improvement
Cost Itemization does not include the cost of the installation of the ATM, which
is discussed below in paragraph 7. Landlord agrees to cause the improvements to
be constructed for an amount not exceeding the Tenant Improvement Cost
Itemization, subject to increase caused by (i) any changes in the Tenant Working
Drawings required by the governmental authority issuing the building permits for
the leasehold improvements; or (ii) any changes, modifications, or change orders
requested by Tenant; or (iii) any delay by Tenant enumerated in Paragraph 12
below that increases the cost of construction.

         4.  TENANT WORKING DRAWINGS. Based upon the approved Tenant Space Plan,
Landlord will, through Landlord's architect or space planner, cause working
drawings for the improvements to the Premises ("Tenant Working Drawings") to be

<PAGE>

prepared and delivered to Tenant within a reasonable period of time after
execution of the Lease. The Tenant Working Drawings will include all
architectural, mechanical and electrical engineering plans required for the
issuance of permits and the completion of the leasehold improvements including
complete detailed plans and specifications for Tenant's partition layout,
reflected ceiling, heating and air conditioning, electrical outlets and
switches, telephone outlets, plumbing, fire sprinklers and finish
specifications. It is further agreed that all plans and specifications referred
to in this Paragraph 4 above are subject to Landlord's approval, which Landlord
agrees shall not be unreasonably withheld. The Tenant Working Drawings shall not
include the plans for the installation of the ATM. Landlord's preparation or
approval of the Tenant Working Drawings, the Tenant Space Plan and any other
plans or specifications shall not constitute any representation as to the
adequacy, efficiency, performance or desirability of any space plan or
improvements. Tenant shall furnish Landlord, within five (5) business days after
Landlord's request, all information necessary to enable Landlord to complete the
Tenant Working Drawings. Any interior design services, such as selection of
paint colors, wall coverings, fixtures, furnishings, carpeting or design of
millwork or other special items shall be provided by Tenant at its expense, but
shall be subject to the reasonable approval of Landlord. Tenant shall furnish
Landlord, within five (5) business days after Landlord's request, all interior
design information necessary to enable Landlord to complete the Tenant Working
Drawings.

         5.  NO SUBSTITUTIONS OR CREDITS. Notwithstanding any other provision of
this Agreement, Tenant acknowledges that Landlord requires that the Premises and
the Leasehold Improvements meet the specifications set forth on Exhibit "A-3"
attached to the Lease and by this reference made a part hereof. In order to
preserve uniformity and the construction standards of the Building, Tenant shall
be entitled to make no substitutions, or alterations to the specifications set
forth in Exhibit "A-3" to the Lease.

         6.  COST OF CONSTRUCTION AND PLANS. In connection with the Leasehold
Improvements to be constructed by Landlord, Landlord shall contribute the
following allowances (collectively, the "Allowance"): (i) $3445 for demolition
of the existing improvements; (ii) $3445 for preparation of the Tenant Space
Plan and Tenant Working Drawings; and (iii) $96,460 for construction of the
Leasehold Improvements. If the cost of any or all of the foregoing three
categories exceeds the specific amount designated as the Allowance for that
category, Tenant shall pay such excess (the "Above-Allowance"). If the actual
cost of any or all of the foregoing categories is less than the amount of the
Allowance, Landlord shall retain the excess. The cost to install the ATM by
Tenant's contractor and the cost to supervise the installation by Landlord's
contractor shall be at Tenant's sole expense and shall be included as part of
the Above-Allowance for purposes of paragraph 11.

        7.   INSTALLATION OF ATM. Tenant desires to install an ATM in connection
with the operation of its business in the Premises. Tenant shall be responsible
for all costs for the design, working drawings and installation of the ATM.
Tenant shall have Tenant's architect prepare working drawings for the
installation of the ATM. The ATM working drawings shall be subject to Landlord's
prior written approval. Landlord agrees to review the ATM working drawings
promptly upon receipt from Tenant. For the installation of the ATM, Tenant shall
have two options: (1) the ATM shall be installed by Landlord's general
contractor pursuant to a separate contract between Tenant and the general
contractor, or (2) if Tenant

                                      -2-

<PAGE>

chooses to use another contractor to install the ATM, that contractor shall be
considered a subcontractor of Landlord's general contractor and Tenant shall
provide Landlord a written change order for the work which shall include the
cost of Landlord's contractor's overhead and profit (not to exceed 10%) and
supervision. Once the cost of the installation of the ATM is determined by
execution of a contract with Landlord's contractor if option (1) is selected, or
by delivery of a change order if option (2) is selected, Tenant shall deposit
with the Escrow Holder (defined below in paragraph 11), (a) 50% of the cost of
the ATM installation no later than five (5) days prior to the commencement of
the ATM installation, (b) 25% of the cost of the ATM installation within five
(5) days of notice from Landlord's general contractor that 50% of the ATM
installation is completed, and (c) 25% of the cost of the ATM installation
within five (5) days of notice from Landlord's general contractor that the ATM
installation is completed. The monies deposited for the ATM installation shall
be disbursed by Escrow Holder to pay the contractor upon receipt of the items
(a) through (i) identified in paragraph 11 below.

         8.  APPROVAL OF TENANT WORKING DRAWINGS. Tenant will deliver to
Landlord written approval of the Tenant Working Drawings within five (5)
business days after Tenant receives such items.

         9.  MODIFICATIONS TO TENANT WORKING DRAWINGS. Tenant may reject the
Tenant Working Drawings if there is a variance in design from the Tenant Space
Plan. In such event, Landlord will promptly revise the Tenant Working Drawings.
Landlord will act in a reasonably diligent manner in approving or rejecting
modifications to the Tenant Working Drawings requested by Tenant and in causing
revised Tenant Working Drawings (reflecting approved modifications) and a
revised Tenant Improvement Cost to be prepared. Tenant shall approve or reject
(subject to the limitation set forth in the first sentence in this paragraph)
such revised Tenant Working Drawings and revised Tenant Improvement Cost within
a period of five (5) days after receipt. Each day after such five (5)-day period
until Tenant approves or rejects the revised Tenant Working Drawings and
executes and returns to Landlord a revised Tenant Itemization will constitute
delay chargeable to Tenant. Landlord shall resubmit the revised Tenant Working
Drawings until they are approved by the Tenant. The parties agree to act
diligently and in good faith in their dealings to approve the Tenant Working
Drawings as expeditiously as possible. If the Tenant Working Drawings are not
finally approved by September 27, 1996, either party may terminate the Lease or
the parties may mutually agree to extend the date set forth in paragraph 4 of
the Lease.

         10. EFFECT OF APPROVAL. Tenant's approval of Tenant Working Drawings
(initial or revised) will constitute Tenant's acknowledgment that such drawings
correctly depict the proper layout and design for any and all improvements to
the Premises desired by Tenant and will constitute authorization to Landlord to
proceed with and complete construction of Leasehold Improvements in the
Premises. All of the work called for by the Tenant Working Drawings will be
performed by one or more contractors engaged by Landlord. Following approval of
the Tenant Working Drawings, Landlord will submit the Tenant Working Drawings to
the appropriate governmental authorities for necessary approvals and building
permits.

         11. PAYMENT FOR ABOVE-ALLOWANCE WORK . The Above-Allowance shall be
paid in three installments. Upon Tenant's

                                      -3-

<PAGE>

approval of the Tenant Working Drawings, Tenant shall deposit fifty percent
(50%) of the actual cost of the Above-Allowance Work into an interest bearing
escrow account with North American Title Insurance Company, 2240 Douglas
Boulevard, Roseville, California (the "Escrow Holder") to be held in escrow
during the construction of the Leasehold Improvements. Twenty-five percent (25%)
of the Above-Allowance shall be deposited by Tenant with Escrow Holder within
five (5) days from notice by Landlord to Tenant that fifty percent (50%) of the
Leasehold Improvements have been completed. The balance of the Above-Allowance
shall be deposited by Tenant with Escrow Holder within five (5) days from notice
by Landlord to Tenant that the Leasehold Improvements are completed as evidenced
by the issuance of a temporary certificate of occupancy and the completion of
all punchlist items. The Above-Allowance shall be disbursed by Escrow Holder to
pay the contractor(s) upon receipt of the following by Escrow Holder:

                  a) A draw request signed by the contractor(s) accompanied by
invoices, receipts or other evidence documenting the draw request.

                  (b) An executed Conditional Waiver and Release Upon Progress
Payment from the contractor(s) and subcontractor for the amount of work
completed for which payment is sought.

                  (c) Written certification from the Landlord's space planner,
and the contractor(s) that the Leasehold Improvements as constructed to date
conform to the Working Drawings (as such term is defined in the Lease).

                  (d) Written approval from Landlord and Tenant to disburse the
requested amounts. A ten percent (10%) retention will be shown on each draw
request and will be disbursed following completion of the Leasehold
Improvements.

The ten percent (10%) retention amount shall be disbursed to the contractor(s)
when all of the following have occurred:

                  (e) At least sixty-five (65) days have elapsed following
recordation of a notice of completion of the Leasehold Improvements or, if
contractor(s) provides an Unconditional Waiver and Release upon Final Payment,
at least thirty-five (35) days have elapsed following recordation of the notice
of completion of the Leasehold Improvements.

                  (f) Written notice from Landlord and Tenant that contractor(s)
has completed the items of construction set forth in the punchlist and Tenant
has accepted possession of the Premises.

                  (g) Verification that no claim of lien has been recorded
against the Premises, the Building or the land on which the Building is
situated.

                  (h) The final certificate of occupancy for the Premises has
been received.

                  (i) Written instructions from the Landlord and Tenant
confirming that the funds deposited with Escrow Holder may be released in
accordance with these provisions.

                                      -4-

<PAGE>

         Upon request, Tenant shall execute escrow instructions incorporating
the disbursement procedures detailed in this paragraph 11.

         Interest earned on the Above-Allowance shall be paid to Tenant.

         Should Landlord waive any of the standard Building criteria set forth
in Exhibit "A-3" to the Lease, Tenant shall not be entitled to any credit
therefor. Landlord shall not be obligated to commence any construction
(including any ordering or purchasing of materials) of Tenant's improvements
until Tenant has approved the Tenant Working Drawings, and has paid Landlord
fifty percent (50%) of the cost of the Above-Allowance Work. All amounts payable
by Tenant under this Agreement shall constitute additional rent under the Lease,
and Landlord shall have the same remedies against Tenant for default in the
payment thereof as in the case of Tenant's failure to pay any other sum due
under the Lease.

        12.  COMPLETION AND RENTAL COMMENCEMENT DATE. Tenant's obligation for
the payment of rent pursuant to the Lease will commence on the Commencement Date
as set forth in the Lease; however, such payment of rent may be delayed in the
event the substantial completion of the leasehold improvements is delayed by
Landlord's actions. If, however, Tenant's occupancy and use of the Premises are
delayed as a result of:

                  (a) Tenant's failure to timely supply information necessary to
complete the Tenant Working Drawings (or revisions to such drawings), or to
timely review the Tenant Working Drawings (or revisions to such drawings); or

                  (b) Tenant's request for new work involving Above- Allowance
Work; or

                  (c) modifications, revisions and changes to the Tenant Space
Plan or Tenant Working Drawings requested by or on behalf of Tenant; or

                  (d) changes in the work requested by or on behalf of Tenant or
orders to halt or delay the work given by or on behalf of Tenant; or

                  (e) Any other delay of any kind or nature caused by Tenant or
its contractors, architects, space planners or other agents or employees,

then the Commencement Date of the Lease shall be shortened for each calendar day
of delay caused by Tenant and the Commencement Date shall be the date the
Leasehold Improvements would have been substantially completed (as defined in
paragraph 3 of the Lease) had a Tenant delay not occurred. Completion of the ATM
installation shall not be a condition to the commencement of the term of this
Lease.

         13. PUNCHLIST PROCEDURE. Following Landlord's substantial completion of
the Leasehold Improvements, Landlord and Tenant shall inspect the Premises and
jointly prepare a punchlist of agreed upon items of construction remaining to be
completed by Landlord. Landlord shall complete the items (except any long-lead
items) set forth in the punchlist within thirty (30) days after the preparation
of the punchlist.

         14. CHANGE ORDERS. Tenant may authorize changes in the work during
construction only by written instructions to Landlord's

                                      -5-

<PAGE>

representative on a form approved by Landlord. Also, such changes will be
subject to Landlord's prior written approval. Before commencing any change,
Landlord will prepare and deliver to Tenant, for Tenant's approval, the change
order setting forth the cost of such change, which will include associated
architectural, engineering and construction fees, if any, costs due to any delay
in construction and ten percent (10%) of the cost of such change for Landlord's
contractor's overhead. If Tenant fails to approve such change order within three
(3) days, Tenant will be deemed to have withdrawn the proposed change and
Landlord will not proceed to perform that change. If Tenant timely approves such
change order, Tenant will within one (1) day of approval of the change order
deposit with Escrow Holder any amounts payable by Tenant in connection with the
change orders provided in this Paragraph.

         15. ACCESS TO PREMISES PRIOR TO DELIVERY. Landlord shall allow Tenant
and its contractors to enter the Premises to permit Tenant to install its
cabling for telephone and computers at the point of construction that Landlord's
contractor would install such items if it were Landlord's responsibility;
provided, however, that prior to such entry into the Premises, Tenant shall
provide evidence reasonably satisfactory to Landlord that the insurance required
to be carried by Tenant under Paragraph 22 ("Insurance") of the Lease shall be
in full force and effect at the time of such entry. Tenant and its
representatives shall not interfere with Landlord or Landlord's contractor in
completing the work required of Landlord under this Agreement and Tenant and its
representatives shall be subject to all directives of Landlord and Landlord's
contractors in connection with such entry as well as the use of the Building's
common areas, restrooms, elevators, truck loading areas and other facilities.
Tenant expressly agrees that its contractors shall not play radios, smoke
cigarettes, leave trash in the Premises or park their motor vehicles in any
portion of the Building's parking lot, except in the area designated by Landlord
for such vehicles. Prior to the commencement of any construction in the
Premises, Tenant shall provide Landlord's representative a proposed work
schedule for Tenant's contractors and other representation, which schedule shall
be subject to Landlord's reasonable approval.

         Tenant agrees that Landlord shall not be liable in any way for any
injury, loss or damage which may occur to any of Tenant's property placed upon
or installed in the Premises prior to the Commencement Date, the same being at
Tenant's sole risk, and Tenant shall be liable for all injury, loss or damage to
persons or property arising as a result of such entry of the Premises by Tenant
or its representatives.

         16. NO ROOF ACCESS. Tenant agrees that neither this Agreement nor the
Lease grants Tenant any right of access to the roof of the Building. Should
Landlord, in connection with this Agreement or the Lease, agree to mount
equipment of any nature on the Building roof, such equipment shall, at
Landlord's option, either be maintained and installed by Landlord, or maintained
and installed under Landlord's direction, unless this Agreement expressly
provides otherwise, all at Tenant's expense. Should this Agreement or the Lease
permit Tenant to install any equipment on the roof, any modifications to the
roof or the roof's structure to accommodate that equipment shall be made at
Tenant's sole cost and expense.

         17.  EXCESSIVE LOADS. Tenant agrees that should the nature of its
layout or any of its equipment, fixtures or furnishings to be placed in the
Premises place a burden in excess of the Building's designed

                                      -6-

<PAGE>

load, Tenant agrees to pay Landlord the cost of any modifications to the
Building necessary to accommodate Tenant's furniture, furnishings or layout.

         18. ALTERATIONS. Any alterations or improvements desired by Tenant
after Landlord's delivery of the Premises shall be subject to the provisions of
Paragraph 14 ("Alterations") of the Lease.

If the foregoing correctly sets forth our understanding, please sign this
Agreement where indicated below.

LANDLORD:                                  TENANT:

LUM YIP KEE, LIMITED,                      AMERICAN RIVER BANK,
a Hawaii corporation                       a California Corporation

By: /s/                                    By:   /s/ WILLIAM L. YOUNG
    ---------------------------                  -----------------------------
                                           Name: William L. Young
                                           Its:  President/CEO
                                           Date:   8/29/96

SAN TEI COMPANY,                           By:   /s/ DAVID T. TABER
a Hawaii limited partnership                     -----------------------------
                                           Name: David Taber
By: TUNG TE CORPORATION,                   Its:  EVP
    General Partner                        Date:  8/29/96
Date:
By:
Its:
Doing business as Sandalwood Land Company

                                      -7-

<PAGE>

                                    EXHIBIT C
                              RULES AND REGULATIONS

         1. No sign, placard, picture, advertisement, name or notice shall be
installed or displayed on any part of the outside or inside of the Building or
the Premises, including without limitation, the windows and doors of the
Premises, without the prior written consent of Landlord. Landlord shall have the
right to remove, at Tenant's expense and without notice, any sign installed or
displayed in violation of this rule. All approved signs or lettering on doors
and walls shall be professionally printed, painted, affixed or inscribed at the
expense of Tenant by a person chosen by Landlord.

         2. If Landlord objects in writing to any curtains, blinds, shades,
screens or hanging plants or other similar objects attached to or used in
connection with any window or door of the Premises, Tenant shall immediately
discontinue such use. No awning shall be permitted on any part of the Premises.
Tenant shall not place anything against or near glass partitions or doors or
windows which may appear unsightly from outside the Premises.

         3. Tenant shall not obstruct any sidewalks, halls, passages, exits,
entrances, elevators, escalators or stairways of the Building. The halls,
passages, exits, entrances, shopping malls, elevators, escalators and stairways
are not for the general public, and Landlord shall in all cases retain the right
to control and prevent access thereto of all persons whose presence in the
judgment of Landlord would be prejudicial to the safety, character, reputation
and interests of the Building and its tenants; provided that nothing herein
contained shall be construed to prevent such access to persons with whom any
tenant normally deals in the ordinary course of its business, unless such
persons are engaged in illegal activities. No tenant and no employee or invitee
of any tenant shall go upon the roof of the Building.

         4. Landlord will provide a central directory for the Building, and
ninety percent (90%) of such directory shall be available for the tenants
occupying the Building. The tenants' space on such directory shall be allocated
based upon the ratio between the Rentable Area occupied by each tenant and the
total Rentable Area within the Building. The directory of the Building will be
provided exclusively for the display of the name and location of tenants only,
and Landlord reserves the right to exclude any other names therefrom.

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

         6. Landlord will furnish Tenant, free of charge, with two keys to each
door lock in the Premises. Landlord may make a reasonable charge for any
additional keys. Tenant shall noe or have made additional keys, and Tenant shall
not alter any lock or install a new additional lock or bolt on any door of its
Premises. Tenant, upon the termination of its tenancy, shall deliver to Landlord
the keys of all doors which have been furnished to

<PAGE>

Tenant, and in the event of loss of any keys so furnished, shall pay Landlord
therefor.

         7. If Tenant requires telegraphic, telephonic, burglar alarm, antenna,
satellite dish or similar services, it shall first obtain, and comply with,
Landlord's instructions in their installation.

         8. Any freight elevator shall be available for use by all tenants in
the Building, subject to such reasonable scheduling as Landlord in its
discretion shall deem appropriate. No equipment, materials, furniture, packages,
supplies, merchandise or other property will be received in the Building or
carried in the elevators except between such hours and in such elevators as may
be designated by Landlord.

         9. Tenant shall not place a load upon any floor of the Premises which
exceeds the load per square foot which such floor was designed to carry and
which is allowed by law. Landlord shall have the right to prescribe the weight,
size and position of all equipment, materials, furniture or other property
brought into the Building. Heavy objects shall, if considered necessary by
Landlord, stand on such platforms as determined by Landlord to be necessary to
properly distribute the weight. Business machines and mechanical equipment
belonging to Tenant, which cause noise or vibration that may be transmitted to
the structure of the Building or to any space therein to such a degree as to be
objectionable to Landlord or to any tenants in the Building, shall be placed and
maintained by Tenant, at Tenant's expense, on vibration eliminators or other
devices sufficient to eliminate noise or vibration. The persons employed to move
such equipment in or out of the Building must be acceptable to Landlord.
Landlord will not be responsible for loss of, or damage to, any such equipment
or other property from any cause, and all damage done to the Building by
maintaining or moving such equipment or other property shall be repaired at the
expense of Tenant.

         10. Tenant shall not use or keep in the Premises any kerosene, gasoline
or inflammable or combustible fluid or material other than those limited
quantities necessary for the operation or maintenance of office equipment.
Tenant shall not use or permit to be used in the Premises any foul or noxious
gas or substance, or permit or allow the Premises to be occupied or used in a
manner offensive or objectionable to Landlord or other occupants of the Building
by reason of noise, odors or vibrations, nor shall Tenant bring into or keep in
or about the Premises any birds or animals.

         11. Tenant shall not use any method of heating or air-conditioning
other than supplied by Landlord.

         12. Tenant shall not waste electricity, water or air-conditioning and
agrees to cooperate fully with Landlord to assure the most effective operation
of the Building's heating and air-conditioning and to comply with any
governmental energy-saving rules, laws or regulations of which Tenant has actual
notice, and shall refrain from attempting to adjust controls other than room
thermostats installed for Tenant's use. Tenant shall keep corridor doors closed,
and shall close window coverings at the end of each business day. Because the
Premises shall be used for retail banking and related financial services,
Landlord shall waive the requirement that the window coverings be closed at the
end of each business day.

         13. Landlord reserves the right, exercisable without notice and without
liability to Tenant, to change the name and street address of the Building.

         14. Landlord reserves the right to exclude from the Building between
the hours of 6 p.m. and 7 a.m. the following day, or such other hours as may be
established from time to time by Landlord, and on Sundays and

                                      -2-

<PAGE>

legal holidays, any person unless that person is known to the person or employee
in charge of the Building and has a pass or is properly identified. Tenant shall
be responsible for all persons for whom it requests passes and shall be liable
to Landlord for all acts of such persons. Landlord shall not be liable for
damages for any error with regard to the admission to or exclusion from the
Building of any person. Landlord reserves the right to prevent access to the
Building in case of invasion, mob, riot, public excitement or other commotion by
closing the doors or by other appropriate action.

         15. Tenant shall close and lock the doors of its Premises and entirely
shut off all water faucets or other water apparatus before Tenant and its
employees leave the Premises. Tenant shall be responsible for any damage or
injuries sustained by other tenants or occupants of the Building or by Landlord
for noncompliance with this rule.

         16. Tenant shall not obtain for use on the Premises ice, drinking
water, food, beverage, towel or other similar services or accept barbering or
bootblacking services upon the Premises, except at such hours and under such
regulations as may be fixed by Landlord.

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

         18. Tenant shall not sell, or permit the sale at retail, of newspapers,
magazines, periodicals, theater tickets or any other goods or merchandise to the
general public in or on the Premises. Tenant shall not make any room-to-room
solicitation of business from other tenants in the Building. Tenant shall not
use the Premises for any business or activity other than that specifically
provided for in Tenant's Lease.

         19. Tenant shall not install any radio or television antenna,
loudspeaker or other devise on the roof or exterior walls of the Building.
Tenant shall not interfere with radio or television broadcasting or reception
from or in the Building or elsewhere.

         20. Tenant shall not mark, drive nails, screw or drill into the
partitions, woodwork or plaster or in any way deface the Premises or any part
thereof. Landlord reserves the right to direct electricians as to where and how
telephone and telegraph wires are to be introduced to the Premises. Tenant shall
not cut or bore holes for wires. Tenant shall not affix any floor covering to
the floor of the Premises in any manner except as approved by Landlord. Tenant
shall repair any damage resulting from noncompliance with this rule.

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

         22. Canvassing, soliciting and distribution of handbills or any other
written material, and peddling in the Building are prohibited, and each tenant
shall cooperate to prevent same.

         23. Landlord reserves the right to exclude or expel from the Building
any person who, in Landlord's judgment, is intoxicated or under the influence of
liquor or drugs or who is in violation of any of the Rules and Regulations of
the Building.

         24. Tenant shall store all its trash and garbage within its Premises.
Tenant shall not place in any trash box or receptacle any material which cannot
be disposed of in the ordinary and customary manner of trash and

                                      -3-
<PAGE>

garbage disposal. All garbage and refuse disposal shall be made in accordance
with directions issued from time to time by Landlord.

         25. The Premises shall not be used for the storage of merchandise held
for sale to the general public, or for lodging or for manufacturing of any kind,
nor shall the Premises be used for any improper, immoral or objectionable
purpose. No cooking shall be done or permitted by any tenant on the Premises,
except that use by Tenant of Underwriters' Laboratory approved microwave ovens
and equipment for brewing coffee, tea, hot chocolate and similar beverages shall
be permitted, provided that such equipment and use is in accordance with all
applicable federal, state, county and city laws, codes, ordinances, rules and
regulations..

         26. Tenant shall not use in any space or in the public halls of the
Building any hand trucks except those equipped with rubber tires and side guards
or such other material-handling equipment as Landlord may approve. Tenant shall
not bring any other vehicles of any kind into the Building.

         27. Without the written consent of Landlord, Tenant shall not use the
name of the Building in connection with or in promoting or advertising the
business of Tenant except as Tenant's address.

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

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

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

         31. Tenant shall not park its vehicles in any parking areas designated
by Landlord as areas for parking by visitors to the Building. Tenant shall not
leave vehicles in the Building parking areas overnight nor park any vehicles in
the Building parking areas other than automobiles, motorcycles, motor driven or
non-motor driven bicycles or four-wheeled trucks.

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

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

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

                                      -4-

<PAGE>

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

  LANDLORD:                                  TENANT:

 LUM YIP KEE, LIMITED,                       AMERICAN RIVER BANK,
 a Hawaii corporation                        a California corporation

By: /s/                                      By:   /s/ WILLAIM L. YOUNG
    ------------------------------                 -----------------------------
Its:                                         Name: William L. Young
Date:                                        Its:  President /CEO
                                             Date:   8/29/96

 SAN TEI COMPANY,                            By:  /s/
 a Hawaii limited partnership                     ------------------------------
                                             Name:
                                             Its:
 By:  TUNG TE CORPORATION,                   Date:
      General Partner

      By: /s/
          ----------------------------
      Its:
          ----------------------------
      Date:
           ---------------------------
 Doing business as Sandalwood Land Company

                                      -5-Office Building Lease

                                        CB Commercial Real Estate Group, Inc.
                                        Is now known as CB Richard Ellis, Inc.

CB  RICHARD ELLIS     CB COMMERCIAL Real Estate Group Inc.
                      BROKERAGE AND MANAGEMENT
                      LICENSED REAL ESTATE BROKER

                                TABLE OF CONTENTS
                                                                         PAGE
Article 1     LEASE OF PREMISES ...........................................I
Article 2     DEFINITIONS .................................................1
Article 3     EXHIBITS AND ADDENDA ........................................2
Article 4     DELIVERY OF POSSESSION ......................................2
Article 5     RENT ........................................................2
Article 6     INTEREST AND LATE CHARGES ...................................4
Article 7     SECURITY DEPOSIT ............................................4
Article 8     TENANT'S USE OF THE PREMISES ................................4
Article 9     SERVICES AND UTILITIES ......................................5
Article 10    CONDITION OF THE PREMISES ...................................5
Article 11    CONSTRUCTION, REPAIRS AND MAINTENANCE .......................5
Article 12    ALTERATIONS AND ADDITIONS ...................................6
Article 13    LEASEHOLD IMPROVEMENTS; TENANT'S PROPERTY ...................6
Article 14    RULES AND REGULATIONS .......................................7
Article 15    CERTAIN RIGHTS RESERVED BY LANDLORD .........................7
Article 16    ASSIGNMENT AND SUBLETTING ...................................7
Article 17    HOLDING OVER ................................................8
Article 18    SURRENDER OF PREMISES .......................................8
Article 19    DESTRUCTION OR DAMAGE .......................................8
Article 20    EMINENT DOMAIN ..............................................8
Article 21    INDEMNIFICATION .............................................9
Article 22    TENANT'S INSURANCE ..........................................9
Article 23    WAIVER OF SUBROGATION ......................................10
Article 24    SUBORDINATION AND ATTORNMENT ...............................10
Article 25    TENANT ESTOPPEL CERTIFICATES ...............................10
Article 26    TRANSFER OF LANDLORD'S INTEREST ............................10
Article 27    DEFAULT ....................................................10
Article 28    BROKERAGE FEES .............................................11
Article 29    NOTICES ....................................................11
Article 30    GOVERNMENT ENERGY OR UTILITY CONTROLS ......................11
Article 31    RELOCATION OF PREMISES .....................................11
Article 32    QUIET ENJOYMENT ............................................12
Article 33    OBSERVANCE OF LAW ..........................................12
Article 34    FORCE MAJEURE...............................................12
Article 35    CURING TENANT'S DEFAULTS ...................................12
Article 36    SIGN CONTROL................................................12
Article 37    MISCELLANEOUS...............................................12

<PAGE>

              OFFICE BUILDING LEASE       CB COMMERCIAL REAL ESTATE GROUP, INC.
                                          IS NOW KNOWN AS CB RICHARD ELLIS, INC.

 CB  RICHARD ELLIS               CB COMMERCIAL REAL ESTATE GROUP, INC
                                 BROKERAGE AND MANAGEMENT
                                 LICENSED REAL ESTATE BROKER

This Lease between UNION BANK OF CALIFORNIA, TRUSTEE FOR AGNES M. BOURN AND
                   -------------------------------------------------------------
                   WILLIAM S.
                   ----------
                   Bourn Trusts a ("Landlord"),and First Source Capital, a
                   wholly owned subsidiary of
American River Holdings                              ("Tenant"),
is dated  June 29,                                   '1999

1.  LEASE OF PREMISES

In consideration of the Rent (as defined at Section 5.4) and the provisions of
this Lease, Landlord leases to Tenant and Tenant leases from Landlord the
Premises shown by diagonal lines on the floor plan attached hereto as Exhibit
"A," and further described at Section 21. The Premises are located within the
Building and Project described in Section 2m. Tenant shall have the
non-exclusive right (unless otherwise provided herein) in common with Landlord,
other tenants, subtenants and invitees, to use of the Common Areas (as defined
at Section 2e).

2.  DEFINITIONS

As used in this Lease, the following terms shall have the following meanings:

a. Base Rent (initial): $      N/A                              per year

b. Base Year The calendar year of N/A

c. Broker(s)

      Landlord's:- CB RICHARD ELLIS, INC.
      Tenants:- CB RICHARD ELLIS. Inc.

In the event that CB Commercial Real Estate Group Inc. represents both Landlord
and Tenant, Landlord and Tenant hereby confirm that they were timely advised of
the dual presentation and that they consent to the same, and that they do not
expect said broker to disclose to either of them the confidential information of
the other party.

d. Commencement Date: July 8, 1999

e. Common Areas: the building lobbies, common corridors and hallways, restrooms,
garage and parking areas, stairways, elevators and other generally understood
public or common areas. Landlord shall have the right to regulate or restrict
the use of the Common Areas.

f. Expense Stop: (fill in if applicable): $ N/A

g. Expiration Date:- June 30, 2000 unless otherwise sooner terminated in
accordance with the provisions of this Lease.

h. Index (Section 5.2): United States Department of Labor, Bureau of Labor
Statistics Consumer Price Index for All Urban Consumers,  N/A
Average, Subgroup "All Items" (1967=100).

i - Landlord's Mailing Address:   RIVER PARK OFFICES C/O CB RICHARD ELLIS, INC.
                                  REMS
                                  555 CAPITOL MALL, SUITE 215, SACRAMENTO, CA
                                  95814

    Tenant's Mailing Address:     First Source Capital Attn: David T. Taber
                                  1545 RIVER PARK DRIVE, #107, SACRAMENTO, CA
                                  95815

    Monthly Installments of Base Rent (initial): $          533.40 per month.

k. Parking: Tenant shall be permitted, to park 2 cars on a non-exclusive basis
in the area(s) designated by Landlord for parking. Tenant shall abide by any and
all parking regulations and rules established from time to time by Landlord or
Landlord`s parking operator.

l. Premises: that portion of the Building containing approximately 381 square
feet of Rentable Area, shown by diagonal lines on Exhibit "A" located on the
FIRST floor of the Building and known as Suite 108.

m. Project: the building of which the Premises are a part (the "Building") and
any other buildings or improvements on the real property (the "Property")
located at 1540 River Park Drive.

   Project is known as RIVER PARK PROFESSIONAL OFFICES.

n. Rentable Area: as to both the Premises and the Project, the respective
measurements of floor area as may from time to time be subject to lease by
Tenant and all tenants of the Project, respectively, as determined by Landlord
and applies on a consistent basis throughout the Project. o. Security Deposit
(Section 7): $ 533.40

p. State: the State of CALIFORNIA

q. Tenant's First Adjustment Date (Section 5.2): the first day of the calendar
month following the Commencement Date plus   N/A  months.

r. Tenant's Proportionate Share: 1 / 2 %. Such share is a fraction, the
numerator of which is the Rentable Area of the Premises, and the denominator of
which is the Rentable Area of the Project, as determined by Landlord from time
to time. The Project consists of ________ building(s) containing a total
Rentable Area of 74,779 square feet.
<PAGE>

s. Tenant's Use Clause (Article 8): GENERAL OFFICE PURPOSES

t. Term: the period commencing on the Commencement Date and expiring at midnight
on the Expiration Date.

3. EXHIBITS AND ADDENDA.
The exhibits and addenda listed below (unless lined out) are incorporated by
reference in this Lease:

a.       Exhibit "A"-Floor Plan showing the Premises.
b.       Deleted.
c.       Deleted.
d.       Exhibit "D"-Rules and regulations.
e.       Deleted.
f.       Addenda:
    ADDENDUM

4. DELIVERY OF POSSESSION.
If for any reason Landlord does not deliver possession of the Premises to Tenant
on the Commencement Date, Landlord shall not be subject to any liability for
such failure, the Expiration Date shall not change and the validity of this
Lease shall not be impaired, but Rent shall be abated until delivery of
possession. "Delivery of possession" shall be deemed to occur on the date of
commencement. 'If Landlord permits Tenant to enter into possession of the
Premises before the Commencement Date, such possession shall be subject to the
provisions of this Lease, including, without limitation, the payment of Rent..

5. RENT.

5.1. Payment of Base Rent. Tenant agrees to pay the Base Rent for the Premises.
Monthly Installments of Base Rent shall be payable in advance on the first day
of each calendar month of the Term. If the Term begins (or ends) on other than
the first (or last) day of a calendar month, the Base Rent for the partial month
shall be prorated on a per diem basis. Tenant shall pay Landlord the first
Monthly Installment of Base Rent when Tenant executes the Lease.

5.4 Definition of Rent. All costs and expenses which Tenant assumes or agrees to
pay to Landlord under this Lease shall be deemed additional rent (which,
together with the Base Rent is sometimes referred to as the "Rent"). The Rent
shall be paid to the Building manager (or other person) and at such place, as
Landlord may from time to time designate in writing, without any prior demand
therefor and without deduction or offset, in lawful money of the United States
of America.

5.5 Rent Control. If the amount of Rent or any other payment due under this
Lease violates the terms of any governmental restrictions on such Rent or
payment, then the Rent or payment due during the period of such restrictions
shall be the maximum amount allowable under those restrictions. Upon termination
of the restrictions, Landlord shall, to the extent it is legally permitted,
recover from Tenant the difference between the amounts received during the
period of the restrictions and the amounts Landlord would have received had
there been no restrictions.

5.6 Taxes Payable by Tenant. In addition to the Rent and any other charges to be
paid by Tenant hereunder, Tenant shall reimburse Landlord upon demand for any
and all taxes payable by Landlord (other than net income taxes) which are not
otherwise reimbursable under this Lease, whether or not now customary or within
the contemplation of the parties, where such taxes are upon, measured by or
reasonably attributable to (a) the cost or value of Tenant's equipment,
furniture, fixtures and other personal property located in the Premises, or the
cost or value of any leasehold improvements made in or to the Premises by or for
Tenant, other than Building Standard Work made by Landlord, regardless of
whether title to such improvements is held by Tenant or Landlord; (b) the gross
or net Rent payable under this Lease, including, without limitation, any rental
or gross receipts tax levied by any taxing authority with respect to the receipt
of the Rent hereunder; (c) the possession, leasing, operation, management,
maintenance, alteration, repair, use or occupancy by Tenant of the Premises or
any portion thereof; or (d) this transaction or any document to which Tenant is
a party creating or transferring an interest or an estate in the Premises; If it
becomes unlawful for Tenant to reimburse Landlord for any costs as required
under this Lease, the Base Rent shall be revised to net Landlord the same net
Rent after imposition of any tax or other charge upon Landlord as would have
been payable to Landlord but for the reimbursement being unlawful.

6. INTEREST AND LATE CHARGES.

If Tenant fails to pay when due any Rent or other amounts or charges which
Tenant is obligated to pay under the terms of this Lease, the unpaid amounts
shall bear interest at the maximum rate then allowed by law. Tenant acknowledges
that the late payment of any Monthly Installment of Base Rent will cause
Landlord to lose the use of that money and incur costs and expenses not
contemplated under this Lease, including without limitation, administrative and
collection costs and processing and accounting expenses, the exact amount of
which is extremely difficult to ascertain. Therefore, in addition to interest,
if any such installment is not received by Landlord within ten (10) days from
the date it is due, Tenant shall pay Landlord a Late charge equal to ten percent
(10%) of such installment. Landlord and Tenant agree that this late charge
represents a reasonable estimate of such costs and expenses and is fair
compensation to Landlord for the loss suffered from such nonpayment by Tenant.
Acceptance of any interest or late charge shall not constitute a waiver of
Tenant's default with respect to such nonpayment by Tenant nor prevent Landlord
from exercising any other rights or remedies available to Landlord under this
Lease.

7. SECURITY DEPOSIT.

Tenant agrees to deposit with Landlord the Security Deposit set forth at Section
2.0 upon execution of this Lease, as security for Tenant's faithful performance
of its obligations under this Lease. Landlord and Tenant agree that the Security
Deposit may be commingled with funds of Landlord and Landlord shall have no
obligation or liability for payment of interest on such deposit. Tenant shall
not mortgage, assign, transfer or encumber the Security Deposit without the
prior written consent of Landlord and any attempt by Tenant to do so shall be
void, without force or effect and shall not be binding upon Landlord.

If Tenant fails to pay any Rent or other amount when due and payable under this
Lease, or fails to perform any of the terms hereof, Landlord may appropriate and
apply or use all or any portion of the Security Deposit for Rent payments or any
other amount then due and unpaid, for payment of any amount for which Landlord
has become obligated as a result of Tenant's default or breach, and for any loss
or damage sustained by Landlord as a result of Tenant's default or breach, and
Landlord may so apply or use this deposit without prejudice to any other remedy
Landlord may have by reason of Tenant's default or

<PAGE>

breach. If Landlord so uses any of the Security Deposit, Tenant shall, within
ten (10) days after written demand therefor, restore the Security Deposit to the
full amount originally deposited; Tenant's failure to do so shall constitute an
act of default hereunder and Landlord shall have the right to exercise any
remedy provided for at Article 27 hereof. Within fifteen (15) days after the
Term (or any extension thereof) has expired or Tenant has vacated the Premises,
whichever shall last occur, and provided Tenant is not then in default on any of
its obligations hereunder, Landlord shall return the Security Deposit to Tenant,
or, if Tenant has assigned its interest under this Lease, to the last assignee
of Tenant. If Landlord sells its interest in the Premises, Landlord may deliver
this deposit to the purchaser of Landlord's interest and thereupon be relieved
of any further liability or obligation with respect to the Security Deposit.

8. TENANT'S USE OF THE PREMISES.

Tenant shall use the Premises solely for the purposes set forth in Tenant's Use
Clause. Tenant shall not use or occupy the Premises in violation of law or any
covenant, condition or restriction affecting the building or Project of the
certificate of occupancy issued for the Building or project, and shall, upon
notice from Landlord, immediately discontinue any use of the Premises which is
declared by any government authority having jurisdiction to be a violation of
law or the certificate of occupancy. Tenant, at Tenant's own cost and expense,
shall comply with al laws, ordinances, regulations, rules and/or any or
occupancy of the Premises, impose any duty upon Tenant or Landlord with respect
to the premises or its use or occupation. A judgment of any court of competent
jurisdiction or the admission by Tenant in any action or proceeding against
Tenant that Tenant has violated any such laws, ordinances, regulations, rules
and/or directions in the use of the Premises shall be deemed to be a conclusive
determination of that fact as between Landlord and Tenant. Tenants hall not do
or permit to be done anything which will invalidate or increase the cost of any
fire, extended coverage or other insurance policy covering the Building or
Project and/or property located therein, and shall comply with all rules,
orders, regulations, requirements and recommendation of the insurance services
Office or any other organization performing a similar function. Tenant shall
promptly upon DEMAND REIMBURSE LANDLORD FOR ANY ADDITIONAL PREMIUM CHARGED for
such policy by reason of Tenant's failure to comply with the provisions of this
Article. Tenant shall not do or PERMIT ANYTHING to be done in or about the
Premises which will in any way obstruct or interfere with the rights of other
tenants or occupants of the Building or Project, or injure or annoy them, or use
or allow the Premises to be used for any improper, immoral, unlawful or
objectionable purpose, nor shall Tenant cause, maintain or permit any nuisance
in, on or about the Premises. Tenant shall not commit or suffer to be committed
any waste in or upon the Premises.

9. SERVICES AND UTILITIES.

Provided that Tenant is not in default hereunder, Landlord agrees to furnish to
the Premises during generally recognized business days, and during hours
determined by Landlord in its sole discretion, and subject to the Rules and
Regulations of the Building or Project, electricity for normal desk top office
equipment and normal copying equipment, and heating, ventilation and air
conditioning ("HVAC") as required in Landlord's judgment for the comfortable use
and occupancy of the Premises. If Tenant desires HVAC at any other time,
Landlord shall use reasonable efforts to furnish such service upon reasonable
notice from Tenant and Tenant shall pay Landlord's charges therefor on demand.
Landlord shall also maintain and keep lighted the common stairs, common entries
and restrooms in the Building. Landlord shall not be in default hereunder or be
liable for any damages directly or indirectly resulting from, nor shall the Rent
be abated by reason of (i) the installation, use or interruption of use of any
equipment in connection with the furnishing of any of the foregoing services,
(ii) failure to furnish or delay in furnishing any such services where such
failure or delay is caused by accident or any condition or event beyond the
reasonable control of Landlord, or by the making of necessary repairs or
improvements to the Premises, Building or Project, or (iii) the limitation,
curtailment or rationing of, or restrictions on, use of water, electricity, gas
or any other form of energy serving the Premises, Building or Project. Landlord
shall not be liable under any circumstances for a loss of or injury to property
or business, however occurring, through or in connection with or incidental to
failure to furnish any such services. If Tenant uses heat generating machines or
equipment in the Premises which affect the temperature otherwise maintained by
the HVAC system, Landlord reserves the right to install supplementary air
conditioning units in the Premises and the cost thereof, including the cost of
installation, operation and maintenance thereof, shall be paid by Tenant to
Landlord upon demand by Landlord.

Tenant shall not, without the written consent of Landlord, use any apparatus or
device in the Premises, including without limitation, electronic data processing
machines, punch card machines or machines using in excess of 120 volts, which
consumes more electricity than is usually furnished or supplied for the use of
premises as general office space, as determined by Landlord. Tenant shall not
connect any apparatus with electric current except through existing electrical
outlets in the Premises. Tenant shall not consume water or electric current in
excess of that usually furnished or supplied for the use of premises as general
office space (as determined by Landlord), without first procuring the written
consent of Landlord, which Landlord may refuse, and in the event of consent,
Landlord may have installed a water meter or electrical current meter in the
Premises to measure the amount of water or electric current consumed. The cost
of any such meter and of its installation, maintenance and repair shall be paid
for by the Tenant and Tenant agrees to pay to Landlord promptly upon demand for
all such water and electric current consumed as shown by said meters, at the
rates charged for such services by the local public utility plus any additional
expense incurred in keeping account of the water and electric current so
consumed. If a separate meter is not installed, the excess cost for such water
and electric current shall be established by an estimate made by a utility
company or electrical engineer hired by Landlord at Tenant's expense.

Nothing contained in this Article shall restrict Landlord's right to require at
any time separate metering of utilities furnished to the Premises. In the event
utilities are separately metered, Tenant shall pay promptly upon demand for all
utilities consumed at utility rates charged by the local public utility plus any
additional expense incurred by Landlord in keeping account of the utilities so
consumed. Tenant shall be responsible for the maintenance and repair of any such
meters at its sole cost.

Landlord shall furnish elevator service, lighting replacement for building
standard lights, restroom supplies, window washing and janitor services in a
manner that such services are customarily furnished to comparable office
buildings in the area.

<PAGE>

10. CONDITION OF THE PREMISES.

Tenant's taking possession of the Premises shall be deemed conclusive evidence
that as of the date of taking possession the Premises are in good order and
satisfactory condition, except for such matters as to which Tenant gave Landlord
notice on or before the Commencement Date. No promise of Landlord to after,
remodel, repair or improve the Premises, the Building or the Project and no
representation, express or implied, respecting any matter or thing relating to
the Premises, Building, Project or this Lease (including, without limitation,
the condition of the Premises, the Building or the Project) have been made to
Tenant by Landlord or its Broker or Sales Agent, other than as may be contained
herein or in a separate exhibit or addendum signed by Landlord and Tenant.

11. CONSTRUCTION, REPAIRS AND MAINTENANCE.

a. Landlord's Obligations: Landlord shall maintain in good order, condition and
repair the Building and all other portions of the Premises not the obligation of
Tenant or of any other tenant in the Building.

b. Tenant's Obligations.

(1) Deleted.

(2) Tenant at Tenant's sole expense shall except for services furnished by
    Landlord pursuant to Article 9 hereof, maintain the Premises in good order,
    condition and repair, including the interior surfaces of the ceilings, walls
    and floors, all doors, all interior windows, all plumbing, pipes and
    fixtures, electrical wiring, switches and fixtures, Building Standard
    furnishings and special items and equipment installed by or at the expense
    of Tenant.

(3) Tenant shall be responsible for all repairs and alterations in and to the
    Premises, Building and Project and the facilities and systems thereof, the
    need for which arises out of (I) Tenant's use or occupancy of the premises,
    (ii) the installation, removal, use or operation of Tenant's Property (as
    defined in Article 13) in the Premises , (iii) the moving of Tenant's
    Property into or out of the Building, or (iv) the act, omission, misuse or
    negligence of Tenant, its agents, contractors, employees or invitees.

(4) If Tenant fails to maintain the Premises in good order, condition and
    repair, Landlord shall give Tenant notice to do such acts as are REASONABLY
    REQUIRED TO SO MAINTAIN THE PREMISES. If Tenant fails to promptly commence
    such work and diligently prosecute it to completion, then Landlord shall
    have the right to do such acts and expend such funds at the expense of
    Tenant as are reasonably required to perform such work. Any amount so
    expended by Landlord shall be paid by Tenant promptly after demand with
    interest at the prime commercial rate then being charged by Bank of America
    NT & SA plus two percent (2%) per annum, from the date of such work, but not
    to exceed the maximum rate then allowed by law. Landlord shall have no
    liability to Tenant for any damage, inconvenience, or interference with the
    use of the Premises by Tenant as a result of performing any such work.

c. Compliance with Law Landlord and Tenant shall each do all acts required to
comply with all applicable laws, ordinances, and rules of any public authority
relating to their respective maintenance obligations as set forth herein.

d. Waiver by Tenant. Tenant expressly waives the benefits of any statute now or
hereafter in effect which would otherwise afford the Tenant the right to make
repairs at Landlord's expense or to terminate this Lease because of Landlord's
failure to keep the Premises in good order, condition and repair.

e. Load and Equipment Limits. Tenant shall not place a load upon any floor of
the Premises which exceeds the load per square foot which such floor was
designed to carry, as determined by Landlord or Landlord's structural engineer.
The cost of any such determination made by Landlord's structural engineer shall
be paid for by Tenant upon demand. Tenant shall not install business machines or
mechanical equipment which cause noise or vibration to such a degree as to be
objectionable to Landlord or other Building tenants.

f. Except as otherwise expressly provided in this Lease, Landlord shall have no
liability to Tenant nor shall Tenant's obligations under this Lease be reduced
or abated in any manner whatsoever by reason of any inconvenience, annoyance,
interruption or injury to business arising from Landlord's making any repairs or
changes which Landlord is required or permitted by this Lease or by any other
tenant's lease or required by law to make in or to any portion of the Project,
Building or the Premises. Landlord shall nevertheless use reasonable efforts to
minimize any interference with Tenant's business in the Premises.

g. Tenant shall give Landlord prompt notice of any damage to or defective
condition in any part or appurtenance of the Building's mechanical, electrical,
plumbing, HVAC or other systems serving, located in, or passing through the
Premises.

h. Upon the expiration or earlier termination of this Lease, Tenant shall return
the Premises to Landlord clean and in the same condition as on the date Tenant
took possession, except for normal wear and tear. Any damage to the Premises,
including any structural damage, resulting from Tenant's use or from the removal
of Tenant's fixtures, furnishings and equipment pursuant to Section 13b shall be
repaired by Tenant at Tenant's expense.

12. ALTERATIONS AND ADDITIONS.

a. Tenant shall not make any additions, alterations or improvements to the
Premises without obtaining the prior written consent of Landlord. Landlord's
consent may be conditioned on Tenant's removing any such additions, alterations
or improvements upon the expiration of the Term and restoring the Premises to
the same condition as on the date Tenant took possession. All work with respect
to any addition, alteration or improvement shall be done in a good and
workmanlike manner by properly qualified and licensed personnel approved by
Landlord, and such work shall be diligently prosecuted to completion. Landlord
may, at Landlord's option, require that any such work be performed by Landlord's
contractor, in which case the cost of such work shall be paid for before
commencement of the work. Tenant shall pay to Landlord upon completion of any
such work by Landlord's contractor, an administrative fee of fifteen percent
(15%) of the cost of the work.

b. Tenant shall pay the costs of any work done on the Premises pursuant to
Section 12a, and shall keep the Premises, Building and Project free and clear of
liens of any kind. Tenant shall indemnity, defend against and keep Landlord free
and harmless from all liability, loss, damage, costs, attorneys' fees and any
other expense incurred on account of claims by any person performing work or
furnishing materials or supplies for Tenant or any person claiming under Tenant.
<PAGE>

Tenant shall keep Tenant's leasehold interest, and any additions or improvements
which are or become the property of Landlord under this Lease, free and clear of
all attachment or judgment liens. Before the actual commencement of any work for
which a claim or lien may be filed, Tenant shall give Landlord notice of the
intended commencement date a sufficient time before that date to enable Landlord
to post notices of non-responsibility or any other notices which Landlord deems
necessary for the proper protection of Landlord's interest in the Premises,
Building or the Project, and Landlord shall have the right to enter the Premises
and post such notices at any reasonable time.

c. Landlord may require, at Landlord's sole option, that Tenant provide to
Landlord, at Tenant's expense, a lien and completion bond in an amount equal to
at least one and one-half (1-1/2) times the total estimated cost of any
additions, alternations or improvements to be made in or to the Premises, to
protect Landlord against any liability for mechanic's and materialmen's liens
and to insure timely completion of the work. Nothing contained in this Section
12c shall relieve Tenant of its obligation under Section 12b to keep the
Premises, Building and Project free of all liens.

d. Unless their removal is required by Landlord as provided in Section 12a, all
additions, alterations and improvements made to the premises shall become the
property of landlord and be surrendered with the Premises upon the expiration of
the Term; provided, however, Tenants equipment, machinery and trade fixtures
which can be removed without damage to the premises shall remain the property of
Tenant and may be removed, subject to the provisions, of Section 13b.

13. LEASEHOLD IMPROVEMENTS; TENANT'S PROPERTY.

a. All fixtures, equipment improvements and appurtenances attached to or built
into the Premises at the commencement of or during the Term, whether or not by
or at the expense of Tenant ("leasehold Improvements"), shall be and remain a
par t of the premises, shall be the property of landlord and shall not be
removed by Tenant, except as expressly provided in Section 13b.

b. All movable partitions, business and trade fixtures, machinery and equipment,
communications equipment and office equipment located in the Premises and
acquired by or for the account of Tenant, without expense to Landlord, which can
be removed without structural damage to the Building, and all furniture,
furnishings and other articles of movable personal property owned by Tenant and
located in the Premises (collectively "Tenant's Property") shall be and shall
remain the property of Tenant and may be removed by Tenant at any time during
the Term; provided that if any of Tenant's Property is removed, Tenant shall
promptly repair any damage to the Premises or to the Building resulting from
such removal.

14. RULES AND REGULATIONS.

Tenant agrees to comply with (and cause its agents, contractors, employees and
invitees to comply with) the rules and regulations attached hereto as Exhibit
"D" and with such reasonable modifications thereof and additions thereto as
Landlord may from time to time make. Landlord shall not be responsible for any
violation of said rules and regulations by other tenants or occupants of the
Building or Project.

15. CERTAIN RIGHTS RESERVED BY LANDLORD.

Landlord reserves the following rights, exercisable without liability to Tenant
for (a) damage or injury to property, person or business, (b) causing an actual
or constructive eviction from the Premises, or (c) disturbing Tenant's use or
possession of the Premises:

a. To name the Building and Project and to change the name or street address of
the Building or Project;

b. To install and maintain all signs on the exterior and interior of the
Building and Project;

c. To have pass keys to the Premises and all doors within the Premises,
excluding Tenant's vaults and safes;

d. At any time during the Term, and on reasonable prior notice to Tenant, to
inspect the Premises, and to show the Premises to any prospective purchaser or
mortgagee of the Project, or to any assignee of any mortgage on the Project, or
to others having an interest in the Project or Landlord, and during the last six
months of the Term, to show the Premises to prospective tenants thereof; and

e. To enter the Premises for the purpose of making inspections, repairs,
alterations, additions or improvements to the Premises or the Building
(including, without limitation, checking, calibrating, adjusting or balancing
controls and other parts of the HVAC system), and to take all steps as may be
necessary or desirable for the safety, protection, maintenance or preservation
of the Premises or the Building or Landlord's interest therein, or as may be
necessary or desirable for the operation or improvement of the Building or in
order to comply with laws, orders or requirements of governmental or other
authority. Landlord agrees to use its best efforts (except in an emergency) to
minimize interference with Tenant's business in the Premises in the course of
any such entry.

16. ASSIGNMENT AND SUBLETTING.

No assignment of this Lease or sublease of all or any part of the Premises shall
be permitted, except as provided in this Article 16.

a. Tenant shall not, without the prior written consent of Landlord, assign or
hypothecate this Lease or any interest herein or sublet the Premises or any part
thereof, or permit the use of the Premises by any party other than Tenant. Any
of the foregoing acts without such consent shall be void and shall, at the
option of Landlord, terminate this Lease. This Lease shall not, nor shall any
interest of Tenant herein, be assignable by operation of law without the written
consent of Landlord.

b. If at any time or from time to time during the Term Tenant desires to assign
this Lease or sublet all or any part of the Premises, Tenant shall give notice
to Landlord setting forth the terms and provisions of the proposed assignment or
sublease, and the identity of the proposed assignee or subtenant. Tenant shall
promptly supply Landlord with such information concerning the business
background and financial condition of such proposed assignee or subtenant as
Landlord may reasonably request. Landlord shall have the option, exercisable by
notice given to Tenant within ten (10) days after Tenant's

<PAGE>

notice is given, either to sublet such space from Tenant at the rental and on
the other terms set forth in this Lease for the term set forth in Tenant's
notice, or, in the case of an assignment, to terminate this Lease. If Landlord
does not exercise such option, Tenant may assign the Lease or sublet such space
to such proposed assignee or sub tenant on the following further conditions:

(1) Landlord shall have the right to approve such proposed assignee or
subtenant, which approval shall not be unreasonably withheld;

(2) The assignment or sublease shall be on the same terms set forth in the
notice given to Landlord;

(2) No assignment or sublease shall be valid and no assignee or sublessee shall
take possession of the Premises until an executed counterpart of such assignment
or sublease has been delivered to Landlord;

(4) No assignee or sublessee shall have a further right to assign or sublet
except on the terms herein contained; and

(5) Any sums or other economic consideration received by Tenant as a result of
such assignment or subletting, however denominated under the assignment or
sublease, which exceed, in the aggregate (I) the total sums which Tenant is
obligated to pay Landlord under this lease (prorated to reflect obligations
allocable to any portion of the Premises subleased), plus (ii) any real estate
brokerage commissions or fees payable in connection with such assignment or
subletting, shall be paid to Landlord as additional rent under this Lease
without affecting or reducing any other obligations of Tenant hereunder.

c.. Notwithstanding the provisions of paragraph a and b above, Tenant may assign
this Lease or sublet the Premises or any portion thereof, without Landlord's
consent and without extending any recapture or termination option to Landlord,
to any corporation which controls, is controlled by or is under common control
with Tenant, or to any corporation resulting from a merger or consolidation with
Tenant, or to any person or entity which acquires all the assets of Tenant's
business as a going concern, provided that (I) the assignee or sublessee
assumes, in full, the obligations of Tenant under this lease, (ii) Tenant
remains fully liable under this lease, and (iii) the use of the Premises under
Article 8 remains unchanged.

d. No subletting or assignment shall release Tenant of Tenant's obligations
under this Lease or alter the primary liability of Tenant to pay the Rent and to
perform all other obligations to be performed by Tenant hereunder. The
acceptance of Rent by Landlord from any other person shall not be deemed to be a
waiver by Landlord of any provision hereof. Consent to one assignment or
subletting shall not be deemed consent to any subsequent assignment or
subletting. In the event of default by an assignee or subtenant of Tenant or any
successor of Tenant in the performance of any of the terms hereof, Landlord may
proceed directly against Tenant without the necessity of exhausting remedies
against such assignee, subtenant or successor. Landlord may consent to
subsequent assignments of the Lease or sublettings or amendments or
modifications to the Lease with assignees of Tenant, without notifying Tenant,
or any successor of Tenant, and without obtaining its or their consent thereto
and any such actions shall not relieve Tenant of liability under this Lease.

e. Tenant assigns the Lease or sublets the Premises or requests the consent of
Landlord to any assignment or subletting or if Tenant requests the consent of
Landlord for any act that Tenant proposes to do, then Tenant shall. upon demand,
pay Landlord an administrative fee of ZERO DOLLARS plus any attorneys' fees
reasonably incurred by Landlord in connection with such act or request.

17. HOLDING OVER.

If after expiration of the Term, Tenant remains in possession of the Premises
with Landlord's permission (express or implied), Tenant shall become a tenant
from month to month only, upon all the provisions of this Lease (except as to
term and Base Rent), but the "Monthly Installments of Base Rent" payable by
Tenant shall be increased to one hundred fifty percent (150%) of the Monthly
Installments of Base Rent payable by Tenant at the expiration of the Term. Such
monthly rent shall be payable in advance on or before the first day of each
month. If either party desires to terminate such month to month tenancy, it
shall give the other party not less than thirty (30) days advance written notice
of the date of termination.

18. SURRENDER OF PREMISES.

a. Tenant shall peaceably surrender the Premises to Landlord on the Expiration
Date, in broom-clean condition and in as good condition as when Tenant took
possession, except for (i) reasonable wear and tear, (ii) loss by fire or other
casualty, and (iii) loss by condemnation. Tenant shall, on Landlord's request,
remove Tenant's Property on or before the Expiration Date and promptly repair
all damage to the Premises or Building caused by such removal.

b. If Tenant abandons or surrenders the Premises, or is dispossessed by process
of law or otherwise, any of Tenant's Property left on the Premises shall be
deemed to be abandoned, and, at Landlord's option, title shall pass to Landlord
under this Lease as by a bill of sale. If Landlord elects to remove all or any
part of such Tenant's Property, the cost of removal, including repairing any
damage to the Premises or Building caused by such removal, shall be paid by
Tenant. On the Expiration Date Tenant shall surrender all keys to the Premises.

19. DESTRUCTION OR DAMAGE.

a. If the Premises or the portion of the Building necessary for Tenant's
occupancy is damaged by fire, earthquake, act of God, the elements of other
casualty, Landlord shall, subject to the provisions of this Article, promptly
repair the damage, if such repairs can, in Landlord's opinion, be completed
within (90) ninety days. If Landlord determines that repairs can be completed
within ninety (90) days, this Lease shall remain in full force and effect,
except that if such damage is not the result of the negligence or willful
misconduct of Tenant or Tenant's agents, employees, contractors, licensees or
invitees, the Base Rent shall be abated to the extent Tenants use of the
Premises is impaired, commencing with the date of damage and continuing until
completion of the repairs required of Landlord under Section 19d.

b. If in Landlord's opinion, such repairs to the Premises or portion of the
Building necessary for Tenants occupancy cannot be completed within ninety (90)
days, Landlord may elect, upon notice to Tenant given within thirty (30) days
after the date of such fire or other casualty, to repair such damage, in which
event this Lease shall continue in full force and effect, but the Base Rent
shall be partially abated as provided in Section 19a. If Landlord does not so
elect to make such repairs, this Lease shall terminate as of the date of such
fire or other casualty.
<PAGE>

c. If any other portion of the Building or Project is totally destroyed or
damaged to the extent that in Landlord's opinion repair thereof cannot be
completed within ninety (90) days, Landlord may elect upon notice to Tenant
given within thirty (30) days after the date of such fire or other casualty, to
repair such damage, in which event this Lease shall continue in full force and
effect, but the Base Rent shall be partially abated as provided in Section 19a.
If Landlord does not elect to make such repairs, this Lease shall terminate as
of the date of such fire or other casualty.

d. If the Premises are to be repaired under this Article, Landlord shall repair
at its cost any injury or damage to the Building and Building Standard Work in
the Premises. Tenant shall be responsible at its sole cost and expense for the
repair, restoration and replacement of any other Leasehold Improvements and
Tenant's Property. Landlord shall not be liable for any loss of business,
inconvenience or annoyance arising from any repair or restoration of any portion
of the Premises, Building or Project as a result of any damage from fire or
other casualty.

e. his Lease shall be considered an express agreement governing any case of
damage to or destruction of the Premises, building or Project by fire or other
casualty, and any present or future law which purports to govern the rights of
Landlord and Tenant in such circumstances in the absence of express agreement,
shall have no application.

20. EMINENT DOMAIN.

a If the whole of the Building or Premises is lawfully taken by condemnation or
in any other manner for any public or quasipublic purpose, this lease shall
terminate as of the date of such taking, and Rent shall be prorated to such
date. If less than the whole of the building or Premises is so taken, this Lease
shall be unaffected by such taking, provided that (I) Tenant shall have the
right to terminate this lease by notice to Landlord given within ninety (90)
days after the date of such taking if twenty percent (20%) or more of the
Premises is taken and the remaining area of the premises is not reasonably
sufficient for Tenant to continue operation of its business, and (ii) Landlord
shall have the right to terminate this Lease by notice to Tenant given within
ninety (90) days after the date of such taking. If either Landlord or Tenant so
elects to terminate this lease the Lease shall terminate on the thirtieth (30th)
day after either such notice. The Rent shall be prorated to the date of
termination. If this Lease continues in force upon such partial taking, the Base
Rent and Tenant's Proportionate Share shall be equitably adjusted according to
the remaining Rentable Area of the Premises and Project.

b. In the event of any taking, partial or whole, all of the proceeds of any
award, judgment or settlement payable by the condemning authority SHALL BE THE
EXCLUSIVE PROPERTY OF LANDLORD, AND TENANT hereby assigns to Landlord all of its
right, title and interest in any award, judgment or SETTLEMENT FROM THE
CONDEMNING AUTHORITY. Tenant, however, shall have the right, to the extent that
Landlord's award is not reduced or prejudiced, to claim from the condemning
authority (but not from Landlord) such compensation as may be recoverable by
Tenant in its own right for relocation expenses and damage to Tenant's personal
property.

c. In the event of a partial taking of the Premises which does not result in a
termination of this Lease, Landlord shall restore the remaining portion of the
Premises as nearly as practicable to its condition prior to the condemnation or
taking, but only to the extent of Building Standard Work. Tenant shall be
responsible at its sole cost and expense for the repair, restoration and
replacement of any other Leasehold Improvements and Tenant's Property.

21. INDEMNIFICATION.

a. Tenant shall indemnity and hold Landlord harmless against and from liability
and claims of any kind for loss or damage to property of Tenant or any other
person, or for any injury to or death of any person, arising out of: (1)
Tenant's use and occupancy of the Premises, or any work, activity or other
things allowed or suffered by Tenant to be done in, on or about the Premises;
(2) any breach or default by Tenant of any of Tenant's obligations under this
Lease; or (3) any negligent or otherwise tortious act or omission of Tenant, its
agents, employees, invitees or contractors. Tenant shall at Tenant's expense,
and by counsel satisfactory to Landlord, defend Landlord in any action or
proceeding arising from any such claim and shall indemnify Landlord against all
costs, attorneys' fees, expert witness fees and any other expenses incurred in
such action or proceeding. As a material part of the consideration for
Landlord's execution of this Lease, Tenant hereby assumes all risk of damage or
injury to any person or property in, on or about the Premises from any cause.

b. Landlord shall not be liable for injury or damage which may be sustained by
the person or property of Tenant, its employees, invitees or customers, or any
other person in or about the Premises, caused by or resulting from fire, steam,
electricity, gas, water or rain which may leak or flow from or into any part of
the Premises, or from the breakage, leakage, obstruction or other defects of
pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting
fixtures, whether such damage or injury results from conditions arising upon the
Premises or upon other portions of the Building or Project or from other
sources. Landlord shall not be liable for any damages arising from any act or
omission of any other tenant of the Building or Project.

22. TENANT'S INSURANCE.

a. All insurance required to be carried by Tenant hereunder shall be issued by
responsible insurance companies acceptable to Landlord and Landlord's lender and
qualified to do business in the State. Each policy shall name Landlord, and at
Landlord's request any mortgagee of Landlord, as an additional insured, as their
respective interests may appear. Each policy shall contain (i) a cross-liability
endorsement, (ii) a provision that such policy and the coverage evidenced
thereby shall be primary and non-contributing with respect to any policies
carried by Landlord and that any coverage carried by Landlord shall be excess
insurance, and (iii) a waiver by the insurer of any right of subrogation against
Landlord, its agents, employees and representatives, which arises or might arise
by reason of any payment under such policy or by reason of any act or omission
of Landlord, its agents, employees or representatives. A copy of each paid up
policy (authenticated by the insurer) or certificate of the insurer evidencing
the existence and amount of each insurance policy required hereunder shall be
delivered to Landlord before the date Tenant is first given the right of
possession of the Premises, and thereafter within thirty (30) days after any
demand by Landlord therefor. Landlord may, at any time and from time to time,
inspect and/or copy any insurance policies required to be maintained by Tenant
hereunder. No such policy shall be cancelable except after twenty (20) days
written notice to Landlord and Landlord's lender. Tenant shall furnish Landlord
with renewals or "binders" of any such policy at least ten (10) days prior to
the expiration thereof. Tenant agrees that if Tenant does not take out and
maintain such insurance, Landlord may (but shall not be required to) procure
said insurance on Tenant's behalf and charge the Tenant the premiums together
with a twenty-five percent (25%) handling charge, payable upon demand. Tenant
shall have the right to provide such insurance coverage pursuant to blanket
policies obtained by the Tenant, provided such blanket policies expressly afford
coverage to the Premises, Landlord, Landlord's mortgagee and Tenant as required
by this Lease.
<PAGE>

b. Beginning on the date Tenant is given access to the Premises for any purpose
and continuing until expiration of the Term, Tenant shall procure, pay for and
maintain in effect policies of casualty insurance covering (i) all Leasehold
Improvements (including any alterations, additions or improvements as may be
made by Tenant pursuant to the provisions of Article 12 hereof), and (ii) trade
fixtures, merchandise and other personal property from time to time in, on or
about the Premises, in an amount not less than one hundred percent (100%) of
their actual replacement cost from time to time, providing protection against
any peril included within the classification "Fire and Extended Coverage"
together with insurance against sprinkler damage, vandalism and malicious
mischief. The proceeds of such insurance shall be used for the repair or
replacement of the property so insured. Upon termination of this Lease following
a casualty as set forth herein, the proceeds under (i) shall be paid to
Landlord, and the proceeds under (ii) above shall be paid to Tenant.

c. Beginning on the date Tenant is given access to the Premises for any purpose
and continuing until expiration of the Term, Tenant shall procure, pay for and
maintain in effect workers' compensation insurance as required by law and
comprehensive public liability and property damage insurance with respect to the
construction of improvements on the Premises, the use, operation or condition of
the Premises and the operations of Tenant in, on or about the Premises.
Providing personal injury and broad form property damage coverage for not less
than One Million Dollars ($1,000,000.00) combined single limit for bodily
injury, death and property damage liability.

23. WAIVER OF SUBROGATION.

Landlord and Tenant each hereby waive all rights of recovery against the other
and against the officers, employees, agents and representatives of the other, on
account of loss by or damage to the waiving party of its property or the
property of others under its control, to the extent that such loss or damage is
insured against under any fire and extended coverage insurance policy which
either may have in force at the time of the loss or damage. Tenant shall, upon
obtaining the policies of insurance required under this Lease, give notice to
its insurance carrier or carriers that the foregoing mutual waiver of
subrogation is contained in this Lease.

24. SUBORDINATION AND ATTORNMENT.

Upon written request of Landlord, or any first mortgagee or first deed of trust
beneficiary of Landlord, or ground lessor of Landlord, Tenant shall, in writing,
subordinate its rights under this Lease to the lien of any first mortgage or
first deed of trust, or to the interest of any lease in which Landlord is
lessee, and to all advances made or hereafter to be made thereunder. However,
before signing any subordination agreement, Tenant shall have the right to
obtain from any lender or lessor or Landlord requesting such subordination, an
agreement in writing providing that, as long as Tenant is not in default
hereunder, this Lease shall remain in effect for the full Term. The holder of
any security interest may, upon written notice to Tenant, elect to have this
Lease prior to its security interest regardless of the time of the granting or
recording of such security interest.

In the event of any foreclosure sale, transfer in lieu of foreclosure or
termination of the lease in which Landlord is lessee, Tenant shall attorn to the
purchaser, transferee or lessor as the case may be, and recognize that party as
Landlord under this Lease, provided such party acquires and accepts the Premises
subject to this Lease.

25. TENANT ESTOPPEL CERTIFICATES.

Within ten (10) days after written request from Landlord, Tenant shall execute
and deliver to Landlord or Landlord's designee, a written statement certifying
(a) that this Lease is unmodified and in full force and effect, or is in full
force and effect as modified and stating the modifications; (b) the amount of
Base Rent and the date to which Base Rent and additional rent have been paid in
advance; (c) the amount of any security deposited with Landlord; and (d) that
Landlord is not in default hereunder or, if Landlord is claimed to be in
default, stating the nature of any CLAIMED default. Any such statement may be
relied upon by a purchaser, assignee or lender. Tenant's failure to execute and
deliver such statement within the time required shall at Landlord's election be
a default under this Lease and shall also be conclusive upon Tenant that: (1)
this Lease is in full force and effect and has not been modified except as
represented by Landlord; (2) there are no uncured defaults in Landlord's
performance and that Tenant has no right of offset, counter-claim or deduction
against Rent; and (3) not more than one month's Rent has been paid in advance.

26. TRANSFER OF LANDLORD'S INTEREST.

In the event of any sale or transfer by Landlord of the Premises, Building or
Project, and assignment of this Lease by Landlord, Landlord shall be and is
hereby entirely freed and relieved of any and all liability and obligations
contained in or derived from this Lease arising out of any act, occurrence or
omission relating to the Premises, Building, Project or Lease occurring after
the consummation of such sale or transfer, providing the purchaser shall
expressly assume all of the covenants and obligations of Landlord under this
Lease. If any security deposit or prepaid Rent has been paid by Tenant, Landlord
may transfer the security deposit or prepaid Rent to Landlord's successor and
upon such transfer, Landlord shall be relieved of any and all further liability
with respect thereto,

27. DEFAULT.

27. 1. Tenant's Default. The occurrence of any one or more of the following
events shall constitute a default and breach of this Lease by Tenant:

a. If Tenant abandons or vacates the Premises and stops paying rent

b. If Tenant fails to pay any Rent or any other charges required to be paid by
Tenant under this Lease and such failure continues for five (5) days after such
payment is due and payable; or

c. If Tenant fails to promptly and fully perform any other covenant, condition
or agreement contained in this Lease and such failure continues for thirty (30)
days after written notice thereof from Landlord to Tenant; or

d. If a writ of attachment or execution is levied on this Lease or on any of
Tenant's Property; or

e. If Tenant makes a general assignment for the benefit of creditors, or
provides for an arrangement, composition, extension or adjustment with its
creditors; or

f. If Tenant files a voluntary petition for relief or if a petition against
Tenant in a proceeding under the federal bankruptcy laws or other insolvency
laws is filed and not withdrawn or dismissed within forty-five (45) days
thereafter, of if under the provisions of any law providing for reorganization
or winding up of corporations, any court of competent jurisdiction assumes
jurisdiction, custody or control of

<PAGE>

Tenant or any substantial part of its property and such jurisdiction, custody or
control remains in force unrelinquished, unstayed or unterminated for a period
of forty-five (45) days; or

g. If in any proceeding or action in which Tenant is a party, a trustee,
receiver, agent or custodian is appointed to take charge of the Premises or
Tenant's Property (or has the authority to do so) for the purpose of enforcing a
lien against the Premises or Tenant's Property; or

h. If Tenant is a partnership or consists of more than one (1) person or entity,
if any partner of the partnership or other person or entity is involved in any
of the acts or events described in subparagraphs d through g above.

27.2. Remedies. In the event of Tenant's default hereunder, then in addition to
any other rights or remedies Landlord may have under any law, Landlord shall
have the right, at Landlord's option, without further notice or demand of any
kind to do the following:

a.  Terminate this Lease and Tenant's right to possession of the Premises and
    reenter the Premises and take position thereof, and Tenant shall have no
    further claim to the Premises or under this Lease; or
b.  Continue this Lease in effect, reenter and occupy the Premises for the
    account of Tenant, and collect any unpaid rent or other charges which have
    or thereafter become due any payable; or
c.  Reenter the Premises under the provisions of subparagraph b, and thereafter
    elect to terminate this lease and Tenant's right to possession of the
    premises.

If Landlord reenters the Premises under the provisions of subparagraphs b or c
above, Landlord shall not be deemed to have terminated this Lease or the
obligation of Tenant to pay any Rent or other charges thereafter accruing,
unless Landlord notifies Tenant in writing of Landlord's election to terminate
this Lease. In the event of any reentry or retaking of possession by Landlord,
Landlord shall have the right, but not the obligation, to remove all or any part
of Tenant's Property in the Premises and to place such property in storage at a
public warehouse at the expense and risk of Tenant. If Landlord elects to relet
the Premises for the account of Tenant, the rent received by Landlord from such
reletting shall be applied as follows: first, to the payment of any indebtedness
other than Rent due hereunder from Tenant to Landlord; second, to the payment of
any costs of such reletting; third, to the payment of the cost of any
alterations or repairs to the Premises; fourth to the payment of Rent due and
unpaid hereunder; and the balance, if any, shall be held by Landlord and applied
in payment of future Rent as it becomes due. It that portion of rent received
from the reletting which is applied against the Rent due hereunder is less than
the amount of the Rent due, Tenant shall pay the deficiency to Landlord promptly
upon demand by Landlord. Such deficiency shall be calculated and paid monthly.
Tenant shall also pay to Landlord, as soon as determined, any costs and expenses
incurred by Landlord in connection with such reletting or in making alterations
and repairs to the Premises, which are not covered by the rent received from the
reletting.

Should Landlord elect to terminate this Lease under the provisions of
subparagraph a or c above, Landlord may recover as damages from Tenant the
following:

      1. Past Rent The worth at the time of the award of any unpaid Rent which
         had been earned at the time of termination; plus

      2. Rent Prior to Award. The worth at the time of the award of the amount
         by which the unpaid Rent which would have been earned after termination
         until the time of award exceeds the amount of such rental loss that
         Tenant proves could have been reasonably avoided; plus

      3. Rent After Award. The worth at the time of the award of the amount by
         which the unpaid Rent for the balance of the Term after the time of
         award exceeds the amount of the rental loss that Tenant proves could be
         reasonably avoided; plus

      4. Proximately Caused Damages. Any other amount necessary to compensate
         Landlord for all detriment proximately caused by Tenant's failure to
         perform its obligations under this Lease or which in the ordinary
         course of things would be likely to result therefrom, including, but
         not limited to, any costs or expenses (including attorneys' fees),
         incurred by Landlord in (a) retaking possession of the Premises, (b)
         maintaining the Premises after Tenant's default, (c) preparing the
         Premises for reletting to a new tenant, including any repairs or
         alterations, and (d) reletting the Premises, including broker's
         commissions.

"The worth at the time of the award" as used in subparagraphs 1 and 2 above, is
to be computed by allowing interest at the rate of ten percent (10%) per annum.
"The worth at the time of the award" as used in subparagraph 3 above, is to be
computed by discounting the amount at the discount rate of the Federal Reserve
Bank situated nearest to the Premises at the time of the award plus one percent
(1%).

The waiver by Landlord of any breach of any term, covenant or condition of this
Lease shall not be deemed a waiver of such term, covenant or condition or of any
subsequent breach of the same or any other term, covenant or condition.
Acceptance of Rent by Landlord subsequent to any breach hereof shall not be
deemed a waiver of any preceding breach other than the failure to pay the
particular Rent so accepted, regardless of Landlord's knowledge of any breach at
the time of such acceptance of Rent. Landlord shall not be deemed to have waived
any term, covenant or condition unless Landlord gives Tenant written notice of
such waiver.

27.3 Landlord's Default. If Landlord fails to perform any covenant, condition or
agreement contained in this Lease within thirty (30) days after receipt of
written notice from Tenant specifying such default, or if such default cannot
reasonably be cured within thirty (30) days, if Landlord fails to commence to
cure within that thirty (30) day period, then Landlord shall be liable to Tenant
for any damages sustained by Tenant as a result of Landlord's breach; provided,
however, it is expressly understood and agreed that if Tenant obtains a money
judgment against Landlord resulting from any default or other claim arising
under this Lease, that judgment shall be satisfied only out of the rents,
issues, profits, and other income actually received on account of Landlord's
right, title and interest in the Premises, Building or Project, and no other
real, personal or mixed property of Landlord (or of any of the partners which
comprise Landlord, if any) wherever situated, shall be subject to levy to
satisfy such judgment. If, after notice to Landlord of default, Landlord (or any
first mortgagee or first deed of trust beneficiary of Landlord) fails to cure
the default as provided herein, then Tenant shall have the right to cure that
default at Landlord's expense. Tenant shall not have the right to terminate this
Lease or to withhold, reduce or offset any amount against any payments of Rent
or any other charges due and payable under this Lease except as otherwise
specifically provided herein.

28. BROKERAGE FEES

Tenant warrants and represents that it has not dealt with any real estate broker
or agent in connection with this Lease or its negotiation except those noted in
Section 2.c. Tenant shall indemnify and hold Landlord harmless from any cost,
expense or liability (including costs of suit and reasonable attorneys' fees)
for any compensation, commission or fees claimed by any other real estate broker
or agent in connection with this Lease or its negotiation by reason of any act
of Tenant.
<PAGE>

29. NOTICES

ALL notices, approvals and demands permitted or required to be given under this
Lease shall be in writing and deemed duly served or given if personally
delivered or sent by certified or registered U.S. mail, postage prepaid, and
addressed as follows:

(A)   IF TO LANDLORD, TO LANDLORD'S MAILING ADDRESS AND TO THE Building manager,
      and (b) if to Tenant, to Tenant's Mailing address; provided, however,
      notices to Tenant shall be deemed duly served or given f delivered or
      mailed to Tenant at the Premises. Landlord and Tenant may from time to
      time by notice to the other designate another place for receipt of future
      notices.

30. GOVERNMENT ENERGY OR UTILITY CONTROLS

In the event of imposition of federal, state or local government controls,
rules, regulations, or restrictions on the use or consumption of energy or other
utilities during the Term, both landlord and Tenant shall be bound thereby. In
the event of a difference in interpretation by Landlord and Tenant of any such
controls, the interpretation of Landlord shall prevails, and Landlord shall have
the right to enforce compliance therewith, including the right of entry into the
Premises to effect compliance.

31. RELOCATION OF PREMISES

Landlord shall have the right to relocate the Premises to another part of the
Building in accordance with the following:

    a. The new premises shall be substantially the same in size, dimensions,
    configuration, decor and nature as the Premises described in this Lease, and
    if the relocation occurs after the Commencement Date, shall be placed in
    that condition by Landlord at its cost.
    b. Landlord shall give Tenant at least thirty (30) days written notice of
    Landlord's intention to relocate the Premises.
    c. As nearly as practicable, the physical relocation of the Premises shall
    take place on a weekend and shall be completed before the following Monday.
    If the physical relocation has not been completed in that time, Base Rent
    shall abate in full from the time the physical relocation commences to the
    time it is completed. Upon completion of such relocation, the new premises
    shall become the "Premises" under this Lease.
    d. All reasonable costs incurred by Tenant as a result of the relocation
    shall be paid by Landlord.
    e. If the new premises are smaller than the Premises as it existed before
    the relocation, Base Rent shall be reduced proportionately.
    f. The parties hereto shall immediately execute an amendment to this Lease
    setting forth the relocation of the Premises and the reduction of Base Rent,
    if any.

32. QUIET ENJOYMENT.
Tenant, upon paying the Rent and performing all of its obligations under this
Lease, shall peaceably and quietly enjoy the Premises, subject to the terms of
this Lease and to any mortgage, lease, or other agreement to which this Lease
may be subordinate.

33. OBSERVANCE OF LAW.
Tenant shall not use the Premises or permit anything to be done in or about the
Premises which will in any way conflict with any law, statute, ordinance or
governmental rule or regulation now in force or which may hereafter be enacted
or promulgated. Tenant shall, at its sole cost and expense, promptly comply with
all laws, statutes, ordinances and governmental rules, regulations or
requirements now in force or which may hereafter be in force, and with the
requirements of any board of fire insurance underwriters or other similar bodies
now or hereafter constituted, relating to, or affecting the condition, use or
occupancy of the Premises, excluding structural changes not related to or
affected by Tenant's improvements or acts. The judgment of any court of
competent jurisdiction or the admission of Tenant in any action against Tenant,
whether Landlord is a party thereto or not, that Tenant has violated any law,
ordinance or governmental rule, regulation or requirement, shall be conclusive
of that fact as between Landlord and Tenant.

34. FORCE MAJEURE.
Any prevention, delay or stoppage of work to be performed by Landlord or Tenant
which is due to strikes, labor disputes, inability to obtain labor, materials,
equipment or reasonable substitutes therefor, acts of God, governmental
restrictions or regulations or controls, judicial orders, enemy or hostile
government actions, civil commotion, fire or other casualty, or other causes
beyond the reasonable control of the party obligated to perform hereunder, shall
excuse performance of the work by that party for a period equal to the duration
of that prevention, delay or stoppage. Nothing in this Article 34 shall excuse
or delay Tenant's obligation to pay Rent or other charges under this Lease.

35. CURING TENANT'S DEFAULTS.
If Tenant defaults in the performance of any of its obligations under this
Lease, Landlord may (but shall not be obligated to) without waiving such
default, perform the same for the account at the expense of Tenant. Tenant shall
pay Landlord all costs of such performance promptly upon receipt of a bill
therefor.

36. SIGN CONTROL.
Tenant shall not affix, paint, erect or inscribe any sign, projection, awning,
signal or advertisement of any kind to any part of the Premises, Building or
Project, including without limitation, the inside or outside of windows or
doors, without the written consent of Landlord. Landlord shall have the right to
remove any signs or other matter, installed without Landlord's permission,
without being liable to Tenant by reason of such removal, and to charge the cost
of removal to Tenant as additional rent hereunder, payable within ten (10) days
of written demand by Landlord.

37. MISCELLANEOUS.
a. Accord and Satisfaction; Allocation of Payments. No payment by Tenant or
receipt by Landlord of a lesser amount than the Rent provided for in this Lease
shall be deemed to be other than on account of the earliest due Rent, nor shall
any endorsement or statement on any check or letter accompanying any check or
payment as Rent be deemed an accord and satisfaction, and Landlord may accept
such check or payment without prejudice to Landlord's right to recover the
balance of the Rent or pursue any other remedy provided for in this Lease. In
connection with the foregoing, Landlord shall have the absolute right in its
sole discretion to apply any payment received from Tenant to any account or
other payment of Tenant then not current and due or delinquent.
b. Addenda. If any provision contained in an addendum to this Lease is
inconsistent with any other provision herein, the provision contained in the
addendum shall control, unless otherwise provided in the addendum.
<PAGE>

c Attorneys' Fees. If any action or proceeding is brought by either party
against the other pertaining to or arising out of this Lease, the finally
prevailing party shall be entitled to recover al costs and expenses, including
reasonable attorneys' fees, incurred on account of such action or proceeding.

a.   Captions, Articles and Section Numbers. The captions appearing within the
     body of this Lease have been inserted as a matter of convenience and for
     reference only and in no way define, limit or enlarge the scope or meaning
     of this lease. All references to Article and Section numbers refer to
     Articles and Sections in this Lease.
b.   Changes Requested by Lender Neither landlord or Tenant shall unreasonably
     withhold its consent to change or amendments to this lease requested by the
     Lender on Landlord's interest, so long as these changes do not alter the
     basis business terms of this lease or otherwise materially diminish any
     rights or materially increase any obligations of the party from whom
     consent to such change or amendment is requested.
c.   Choice of law. This lease shall be construed and enforced in accordance
     with the laws of the State. Consent. Notwithstanding anything contained in
     this lease to the contrary. Tenant shall have no claim, and hereby waives
     the right to any claim against Landlord for money damages by reason of any
     refusal, withholding or delaying by Landlord of any consent, approval or
     statement of satisfaction, and in such event, Tenant's only remedies
     therefor shall be an action for specific performance, injunction or
     declaratory judgment to enforce any right to such consent, etc.

h. Corporate Authority. If Tenant is a corporation, each individual signing this
Lease on behalf of Tenant represents and warrants that he is duly AUTHORIZED TO
EXECUTE AND DELIVER THIS LEASE ON BEHALF OF THE CORPORATION, AND THAT this Lease
is binding on Tenant in accordance with its terms. Tenant shall, at Landlord's
request, deliver a certified copy of a resolution of its board of directors
authorizing such execution.

i. Counterparts. This Lease may be executed in multiple counterparts, all of
which shall constitute one and the same Lease.
j. Execution of Lease; No Option. The submission of this Lease to Tenant shall
be for examination purposes only, and does not and shall not constitute a
reservation of or option for Tenant to lease, or otherwise create any interest
of Tenant in the Premises or any other premises within the Building or Project.
Execution of this Lease by Tenant and its return to Landlord shall not be
binding on Landlord notwithstanding any time interval, until Landlord has in
tact signed and delivered this Lease to Tenant.
k. Furnishing of Financial Statements; Tenant's Representations. In order to
induce Landlord to enter into this Lease Tenant agrees that it shall promptly
furnish Landlord, from time to time, upon Landlord's written request, with
financial statements reflecting Tenant's current financial condition. Tenant
represents and warrants that all financial statements, records and information
furnished by Tenant to Landlord in connection with this Lease are true, correct
and complete in all respects.
1. Further Assurances. The parties agree to promptly sign all documents
reasonably requested to give effect to the provisions of this Lease.
m. Mortgagee Protection. Tenant agrees to send by certified or registered mail
to any first mortgagee or first deed of trust beneficiary of Landlord whose
address has been furnished to Tenant, a copy of any notice of default served by
Tenant on Landlord. If Landlord fails to cure such default within the time
provided for in this Lease, such mortgagee or beneficiary shall have an
additional thirty (30) days to cure such default; provided that if such default
cannot reasonably be cured within that thirty (30) day period, then such
mortgagee or beneficiary shall have such additional time to cure the default as
is reasonably necessary under the circumstances.
n. Prior Agreements; Amendments. This Lease contains all of the agreements of
the parties with respect to any matter covered or mentioned in this Lease, and
no prior agreement or understanding pertaining to any such matter shall be
effective for any purpose. No provisions of this Lease may be amended or added
to except by an agreement in writing signed by the parties or their respective
successors in interest.
o. Recording. Tenant shall not record this Lease without the prior written
consent of Landlord. Tenant, upon the request of Landlord, shall execute and
acknowledge a "short form" memorandum of this Lease for recording purposes.
p. Severability. A final determination by a court of competent jurisdiction that
any provision of this Lease is invalid shall not affect the validity of any
other provision, and any provision so determined to be invalid shall, to the
extent possible, be construed to accomplish its intended effect.
q. Successors and Assigns. This Lease shall apply to and bind the heirs,
personal representatives, and permitted successors and assigns of the parties.
r. Time of the Essence. Time is of the essence of this Lease.
s. Waiver. No delay or omission in the exercise of any right or remedy of
Landlord upon any default by Tenant shall impair such right or remedy or be
construed as a waiver of such default.
t. Compliance. The parties hereto agree
to comply with all applicable federal, state and local laws, regulations, codes,
ordinances and administrative orders having jurisdiction over the parties,
property or the subject matter of this Agreement, including, but not limited to,
the 1964 Civil Rights Act and all amendments thereto, the Foreign Investment In
Real Property Tax Act, the Comprehensive Environmental Response Compensation and
Liability Act, and The Americans With Disabilities Act.
The receipt and acceptance by Landlord of delinquent Rent shall not constitute a
waiver of any other default; it shall constitute only a waiver of timely payment
for the particular Rent payment involved.
No act or conduct of Landlord, including, without limitation, the acceptance of
keys to the Premises, shall constitute an acceptance of the surrender of the
Premises by Tenant before the expiration of the Term. Only a written notice from
Landlord to Tenant shall constitute acceptance of the surrender of the Premises
and accomplish a termination of the Lease.
Landlord's consent to or approval of any act by Tenant requiring Landlord's
consent or approval shall not be deemed to waive or render unnecessary
Landlord's consent to or approval of any subsequent act by Tenant. Any waiver by
Landlord of any default must be in writing and shall not be a waiver of any
other default concerning the same or any other provision of the Lease.
The parties hereto have executed this Lease as of the dates set forth below.

Date:        7/23/99                      Date:        7/8/99
Union Bank of California, Trustee         First Source Capital, a wholly owned
Landlord: for Agnes M. J. Bourn and       Tenant:: Subsidiary of American River
Holdings

       William B. Bourn Trusts

By: /s/ BRIAN T. MULLINS                  By: /s/ DAVID T. TABER
    --------------------------------          ----------------------------------
    Brian T. Mullins                          David T. Taber
Title:                                        President and C.E.O.

--------------------------------------------------------------------------------
  CONSULT YOUR ADVISORS - This document has been prepared for approval by your
  attorney. No representation or recommendation is made by CB Commercial as to
  the legal sufficiency or tax consequences of this document or the transaction
  to which it relates. These are questions for your attorney.

  In any real estate transaction, it is recommended that you consult with a
  professional, such as a civil engineer, industrial hygienist or other person,
  with experience in evaluating the condition of the property, including the
  possible presence of asbestos, hazardous materials and underground storage
  tanks.
--------------------------------------------------------------------------------

<PAGE>

                      ADDENDUM TO THE OFFICE BUILDING LEASE
                        DATED JUNE 29,1999 BY AND BETWEEN

                   UNION BANK OF CALIFORNIA, N.A., TRUSTEE FOR
          AGNES M. BOURN AND WILLIAM B. BOURN TRUSTS, AS LANDLORD, AND
            FIRST SOURCE CAPITAL, WHOLLY OWNED SUBSIDIARY OF AMERICAN
                            RIVER HOLDINGS, AS TENANT

I        EXCULPATION OF LANDLORD. It is understood and agreed by the Tenant that
         Landlord is executing this Lease in its fiduciary capacity only and
         Landlord and Landlord's officers, directors, employees and agents are
         not and shall not be liable hereunder, directly or indirectly, except
         for willful misconduct, under or by execution of this Lease. The rights
         and claims of Tenant shall be limited exclusively to such rights Tenant
         may have against the trust or other estate or entity represented herein
         by Landlord (the "Trust").

2.       EXCULPATION OF TRUST. Any liability of Landlord (including without
         limitation Landlord's shareholders, affiliates, agents, and employees)
         to Tenant or any other person shall be limited to the estate of the
         Trust in the Building. Tenant or any other person claiming through
         Tenant agrees to look solely to such interest for the recovery of any
         judgement against Landlord, it being intended by the parties that
         neither Landlord, it trustees or beneficiaries, nor any other assets of
         the Trust or of such trustees or beneficiaries shall be liable for any
         such judgment.

3.       PAINTING. Landlord, at Landlord's sole cost and expense, shall paint
         the Premises.

4.       CLEANING. At Landlord's sole cost and expenses will clean, including
         carpets.

CONSULT YOUR ADVISORS - This document (including its exhibits and addendums, if
any) has been prepared by Broker for approval by the undersigned respective
parties' legal counsel. Broker makes no representation or recommendation as to
the legal sufficiency or tax consequences of this document or the transaction to
which it relates.  These are questions for an attorney or accountant.

THE ABOVE TERMS ARE ACKNOWLEDGED AND AGREED TO:

LANDLORD                                    TENANT

Union Bank of California, Trustee for       First Source Capital, a wholly owned
Agnes M. Bourn and William B. Bourn Trusts  subsidiary of American River
                                            Holdings

By: /s/ BRIAN T. MULLINS                      By: /s/ DAVID T. TABER
    ---------------------------------             -----------------------------
    Brian T. Mullins                              David T. Taber
    Vice President/Senior Asset Manager           President and C.E.O.

Date:    7/23/99                              Date:   7/8/99

<PAGE>

                              EXHIBIT "Exhibit "D"
                              Rules and Regulations

1.       No sign, placard, picture, advertisement, name or notice shall be
         inscribed, displayed or printed or affixed on or to any part of the
         outside or inside of the Building without the written consent of
         Landlord first had and obtained and Landlord shall have the right to
         remove any such sign, placard, picture, advertisement, name or notice
         without notice to and at the expense of Tenant.

         All approved signs or lettering on doors shall be printed, painted,
         affixed or inscribed at the expense of Tenant by a persona approved of
         by landlord. Tenant shall not place anything or allow anything to be
         placed near the glass of any window, door, partition or wall which may
         appear unsightly from outside the Premises; provided, however, that
         Landlord may furnish and install a Building standard window covering
         all exterior windows. Tenant shall not without prior written consent of
         Landlord cause or otherwise sunscreen any window.

2.       The sidewalks, halls, passages, exits, entrances, elevators and
         stairways shall not be obstructed by any of the tenants or used by them
         for any purpose other than for ingress and egress from their respective
         Premises.

3.       Tenant shall not alter any lock or install any new or additional locks
         or any bolts on any doors or windows of the Premises.

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

5.       Tenant shall not overload the floor of the premises or in any way
         deface the premises or any part thereof.

6.       No furniture, freight or equipment of any kind shall be brought into
         the Building without the prior notice to Landlord and all moving of the
         same into or out of the Building shall be done at such time and in such
         manner as Landlord shall designate. Landlord shall have the right to
         prescribe the weight, size and position of all sales and other heavy
         equipment brought into the Building and also the times and manner of
         moving the same in and out to the Building. Sales or other heavy
         objects shall, if considered necessary by landlord, stand on supports
         of such thickness as is necessary to properly distribute the weight.
         Landlord will not be responsible for loss of or damage to any such sale
         of property from any cause and all damage done to the Building by
         moving or maintaining any such sale or other property shall be repaired
         at the expense of Tenant.

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

8.       No cooking shall be done with the exception of microwave oven or
         permitted by any Tenant on the Premises, nor shall the Premises be used
         for the storage of merchandise, for washing clothes, for lodging, or
         for any improper, objectionable or immoral purposes.

9.       Tenant shall not use or keep in the Premises or the Building any
         kerosene, gasoline or inflammable or combustible fluid or material, or
         use any method of heating or air conditioning other than that supplies
         by Landlord.

10.      Landlord will direct electricians as to where and how telephone wires
         are to be introduced. No boring or cutting for wires will be allows
         without the consent of the Landlord. The location of telephones, call
         boxes and other office equipment affixed to the Premises shall be
         subject to the approval of landlord.

11.      On Saturdays, Sundays and legal holidays, and on other days between the
         hours of 6:00 p.m. and 8:00 a.m. the following day, access to the
         Building or to the halls, corridors, elevators or stairways in the
         Building, or to the premises may be refused unless the person seeking
         access is known to the person or employees of the Building in charge
         and has a pass or is properly identified. The landlord shall in no case
         be liable for damages for any error with regard to the admission to or
         exclusion from the Building of any person. In case of invasion, mob,
         riot, public excitement, or other commotion, the Landlord reserves the
         right to prevent access to the Building during the continuance of the
         same by closing of the doors or otherwise, for the safety of the
         tenants and protection of property in the Building and the Building.

12.      Landlord reserves the right to exclude or expel from the Building any
         person who, in the judgment of landlord, is intoxicated or under the
         influence of liquor or drugs, or who shall in any manner do any act in
         violation of any of the rules and regulations of the Building.

13.      No vending machine or machines of any description shall be installed,
         maintained or operated upon the Premises without the written consent of
         the Landlord.

14.      Landlord shall have the right, exercisable without notice and without
         liability to Tenant, to change the name and street address of the
         Building of which the Premises are a part.

15.      Tenant shall not disturb, solicit, or canvass any occupant of the
         Building and shall cooperate to prevent same.

16.      Without the written consent of Landlord, Tenant shall not use the name
         of the Building in connection with or in promoting or advertising the
         business of Tenant except as Tenant's address.

17.      Landlord shall have the right to control and operate the public
         portions of the Building, and the public facilities, and heating and
         air conditioning, as well as facilities furnished for the common use of
         the tenants, in such manner as it deems best for the benefit of the
         tenants generally.

18.      All entrance doors in the premises shall be left locked when the
         Premises are not in use, and all doors opening to public corridors
         shall be kept closed except for normal ingress and egress from the
         premises.

<PAGE>

                  CB RICHARD ELLIS, INC. SALE/LEASE DISCLOSURES

Property:  1555 River Park Drive, Sacramento, CA 95815

FLOOD ZONES. According to 060266-001 OE _[SPECIFY SOURCE], the Property X IS/ _
MAY OR MAY NOT be located in a flood zone. Many lenders require flood insurance
for properties located in flood zones, and government authorities may regulate
development and construction in flood zones. Whether or not located in a flood
zone, properties can be subject to flooding and moisture problems, especially
properties on a slope or in low-lying areas or in a dam inundation zone
(California Government Code Section 8589.5).

Buyers and tenants should have their experts confirm whether the Property is in
a flood zone and otherwise investigate and evaluate these matters. Flood Zone
Designation: Zone A99

EARTHQUAKES. Earthquakes occur throughout California. According to Fault-Rupture
Hazard Zones in California Special Publication 42 [specify source], the
Property_ is/ X MAY OR MAY NOT BE situated in an Earthquake Fault Zone and/or a
Seismic Hazard Zone (Sections 2621 et seq. and Sections 2690 et seq. of the
California Public Resources Code, respectively). Property development and
construction in such zones generally are subject to the findings of a geologic
report prepared by a state-registered geologist. Whether or not located in such
a zone, all properties in California are subject to earthquake risks and may be
subject to a variety of state and local earthquake-related requirements,
including retrofit requirements. Among other items, all new and existing water
heaters must be braced, anchored or strapped to resist falling or horizontal
displacement, and in sales transactions, sellers must execute a written
certification that the water heaters are so braced, anchored or strapped
(California Health and Safety Code Section 19211). Buyers and tenants should
have their experts confirm whether the Property is in any earthquake zone and
otherwise investigate and evaluate these matters.

HAZARDOUS MATERIALS AND UNDERGROUND STORAGE TANKS. Due to prior or current uses
of the Property or in the area or the construction materials used, the Property
may have hazardous or undesirable metals (including lead-based paint), minerals
(including asbestos), chemicals, hydrocarbons, petroleum-related compounds, or
biological or radioactive/emissive items (including electrical and magnetic
fields) in soils, water, building components, above or below-ground
tanks/containers or elsewhere in areas that may or may not be accessible or
noticeable. Such items may leak or otherwise be released. Asbestos has been used
in items such as fireproofing, heating/cooling systems, insulation, spray-on and
tile acoustical materials, floor tiles and coverings, roofing, drywall and
plaster. If the Property was built before 1978 and has a residential unit,
sellers/landlords must disclose all reports, surveys and other information known
to them regarding lead-based paint to buyers and tenants and allow for
inspections (42 United States Code Sections 4851 et seq.). Sellers/landlords are
required to advise buyers/tenants if they have any reasonable cause to believe
that any hazardous substance has come to be located on or beneath the Property
(California Health and Safety Code Section 25359.7), and sellers/landlords must
disclose reports and surveys regarding asbestos to certain persons, including
their employees, contractors, buyers and tenants (California Health and Safety
Code Sections 25915 et seq.); buyers/tenants have similar obligations. Have your
experts investigate and evaluate these matters.

AMERICANS WITH DISABILITIES ACT (ADA). The Americans With Disabilities Act (42
United States Code Sections 12101 et seq.) and other federal, state and local
requirements may require changes to the Property. Have your experts investigate
and evaluate these matters.

Taxes. Sales, leases and other real estate transactions can have federal, state
and local tax consequences. In sales transactions, Internal Revenue Code Section
1446 requires buyers to withhold and pay to the IRS 10% of the gross sales price
within 10 days of the date of a sale unless the buyers can establish that the
sellers are not foreigners, generally by having the sellers sign a Non-Foreign
Seller Affidavit. Depending on the structure of the transaction, the tax
withholding liability can exceed the net cash proceeds to be paid to the sellers
at closing. California imposes an additional withholding requirement equal to 3
1/3% of the gross sales price not only on foreign sellers but also out-of-state
sellers and sellers leaving the state if the sales price exceeds $100,000.
Withholding generally is required if the last known address of a seller is
outside California, if the proceeds are disbursed outside of California or if a
financial intermediary is used. Have your experts investigate and evaluate these
matters.

Fires. California Public Resources Codes Sections 4125 et seq. require sellers
of real property located within state responsibility areas to advise buyers that
the property is located within such a wildland zone, that the state does not
have the responsibility to provide fire protection services to any structure
within such a zone and that such zones may contain substantial forest/wildland
fire risks. Government Code Sections 51178 et seq. require sellers of real
property located within certain fire hazard zones to disclose that the property
is located in such a zone. Sellers must disclose that a property located in a
wildland or fire hazard zone is subject to the fire prevention requirements of
Public Resources Code Section 4291 and Government Code Section 51182,
respectively. Sellers must make such disclosures if either the sellers have
actual knowledge that a property is in such a zone or a map showing the property
to be in such a zone has been provided to the county assessor. Properties,
whether or not located in such a zone, are subject to fire/life safety risks and
may be subject to state and local fire/life safety-related requirements,
including retrofit requirements. Have your experts investigate and evaluate
these matters.

BROKER REPRESENTATION. C13 Richard Ellis, Inc. is a national brokerage firm
representing a variety of clients. Depending on the circumstances, CB Richard
Ellis, Inc. may represent both the seller/landlord and the buyer/tenant in a
transaction, or you may be interested in a property that may be of interest to
other CB Richard Ellis, Inc. clients. If CB Richard Ellis, Inc. represents more
than one party with respect to a property, CB Richard Ellis, Inc. will not
disclose the confidential information of one principal to the other.

SELLER/LANDLORD DISCLOSURE, DELIVERY OF REPORTS, PEST CONTROL REPORTS AND
COMPLIANCE WITH LAWS. Sellers/land lords are hereby requested to disclose
directly to buyers/tenants all information known to sellers/landlords regarding
the Property, including but not limited to, hazardous materials, zoning,
construction, design, engineering, soils, title, survey, fire/life safety, and
other matters, and to provide buyers/tenants with copies of all reports in the
possession of or accessible to sellers/landlords regarding the Property.
Sellers/landlords and buyers/tenants Must comply with all applicable federal
state and local laws regulations, codes, ordinances and administrative orders,
including but not limited to, the 1964 Civil Rights Act and all amendments
thereto, the Foreign Investment in Real Property Tax Act, the Comprehensive
Environmental Response Compensation and Liability Act, and the Americans with
Disabilities Act. If a pest control report is a condition of the purchase
contract, buyers are entitled to receive a copy of the report any certification
and notice of work completed.

Property Inspections and Evaluations. Buyers/tenants should have the Property
thoroughly inspected and all parties should have the transaction thoroughly
evaluated by the experts of their choice. Ask your experts what investigations
and evaluations may be appropriate as well as the risks of not performing any
such investigations or evaluations. Information regarding the Property supplies
by the real estate brokers has been received from third party sources and has
not been independently verified by the brokers. Have your experts verify all
information regarding the Property, including any linear or area measurements
and the availability of all utilities. All work should be inspected an evaluated
by your experts, as they deem appropriate. Any projections or estimates are for
example only, are based on assumptions that may not occur and do not represent
the current or future performance of the property. Real estate brokers are not
experts concerning nor can they determine if any expert is qualified to provide
advice on legal, tax, design, ADA, engineering, construction, soils, title,
survey, fire/life safety, insurance, hazardous material, or other such matters.
Such areas require special education and, generally, special licenses not
possessed by real estate brokers. Consult with the experts of your choice
regarding these matters.

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