Document:

Exhibit 10.6

         AGREEMENT setting forth the terms and conditions upon which TPG CAPITAL
CORPORATION ("TPG") is engaged by PERFECT RENAISSANCE LTD. together with any
successors (collectively "Perfect Renaissance") to effect transactions ("the
Transactions") intended to merge or otherwise combine Perfect Renaissance with a
United States reporting company and for related matters.

1.       SERVICES PROVIDED.

         Following its engagement, TPG and its affiliates will:

         1.1. Advise Perfect Renaissance on the structure of the
Transactions and actions to be taken by Perfect Renaissance in preparation for
the completion of the Transactions;

         1.2. Merge Perfect Renaissance or exchange its stock with or assist in
transferring its assets into an existing United States corporation ("the
Business Combination") which is or will become a reporting company under ss.
12(g) of the Securities Exchange Act of 1934, as amended.

         1.3. Prepare, assist in preparing or review the agreement for the
Business Combination ("Business Combination Agreement");

         1.4. Prepare and file with the Securities and Exchange Commission a
Form 10 or Form8-K describing the Business Combination with the Company ("the
Company" hereinafter shall mean the United States corporation following the
Business Combination, unless the context requires otherwise);

         1.5. Introduce the Company to one or more market makers for the
purpose of making an orderly and efficient market in the Company's securities;

         1.6. Assist the Company with listing its securities on the NASD OTC
Bulletin Board or, if the Company meets such requirements, apply for admission
to quotation of the Company's securities on the Nasdaq Stock Market and/or their
listing on a regional or national stock exchange, if requested by the Company;

         1.7. Take any other actions reasonably required of it to complete the
Transactions as contemplated by this agreement.

2.       BUSINESS COMBINATION.

         2.1. TPG will provide, at its expense, a United States corporation with
audited financial statements showing no material assets or liabilities which is
or which TPG will cause to become a reporting company under ss. 12(g) of the
Securities Exchange Act of 1934 ("the 1934 Act").

         2.2. Perfect Renaissance, at its election, will merge into, exchange
its stock with, or transfer its assets to the United States corporation. Upon

<PAGE>

the effective date of the Business Combination, the officers and directors
selected by Perfect Renaissance will become the officers and directors of the
United States corporation. The name of the United States corporation following
the Business Combination will be chosen by Perfect Renaissance.

         2.3. The United States corporation will have authorized capital of
100,000,000 shares of common stock, $.0001 par value per share, and 20,000,000
shares of preferred stock, $.000l par value per share.

         2.4. Upon the effective date of the Business Combination, there will be
issued and outstanding by the Company (i) 500,000 common shares issued to TPG
(ii) a common stock purchase warrant (described below) granted to TPG and (iii)
such common stock and other securities as designated by Perfect Renaissance in
the Business Combination Agreement.

3.       PAYMENTS.

         3.1. Perfect Renaissance will pay TPG US$75,000 for its services and
the services of its affiliates in regard to the Transactions. Payment of this
amount will be made US$25,000 on execution of this agreement, US$25,000 on the
Business Combination and US$25,000 on the filing of a Form 10 or Form 8-K with
the Securities and Exchange Commission.

         3.2. In the event that Perfect Renaissance is a foreign corporation, or
for other reasons TPG deems sufficient, TPG may request Perfect Renaissance, and
Perfect Renaissance agrees, to deposit an amount equal to the remaining payments
to be made after execution of this agreement in escrow under an escrow agreement
satisfactory to both parties.

         3.3. Perfect Renaissance hereby grants TPG a 5-year transferrable
warrant ("TPG Warrant") to acquire up to 500,000 registered shares of the
Company's common stock at a strike price of $1.00 per share. The Company will
execute and deliver to TPG a form of common stock purchase warrant agreement,
warrant and warrant exercise subscription not inconsistent with the terms
provided herein.

         3.4. Perfect Renaissance will not at any time take or allow any action
(whether by reverse stock split or otherwise) which would have the effect of
reducing the absolute number of common shares owned or to be owned by TPG or its
designee under this agreement.

4.       EXPENSES.

         4.1. TPG will bear its expenses incurred in regard to the
Transactions, including, without limitation, travel, telephone, duplication
costs, and postage.

         4.2. Perfect Renaissance will pay its own and third-party expenses
(other than those of TPG) including, without limitation, Federal, state and
Nasdaq filing fees, underwriting and market making costs, corporate financial
relations, accounting fees, duplicating costs and other expenses of the Company.

                                        2

<PAGE>

5.       AGREEMENT TO COMPLETE TRANSACTIONS.

         5.1. Perfect Renaissance agrees that it will timely take all steps
necessary to complete the Transactions to include, without limitation, causing
audited financial statements to be prepared in proper form for Perfect
Renaissance; obtaining consents of the Board of Directors and the shareholders
of Perfect Renaissance, as required; causing all necessary documents to be
properly and timely prepared, executed, approved or ratified, and filed, as
appropriate; making timely and fully all required payments related to the
registration and listing of the Company's securities for public trading,
including filing fees; and timely taking all other actions reasonably required
of it to complete the Transactions.

         5.2. In the event that at any time Perfect Renaissance determines not
to continue with the Transactions TPG hereby grants to Perfect Renaissance the
right to buyout the interest of TPG in this agreement on the terms contained
herein, in which case TPG agrees not to seek specific enforcement of this
agreement. In the event that Perfect Renaissance elects not to continue with the
Transactions (or if Perfect Renaissance does not timely take all such steps and
do all such things as may be reasonably required of it to complete the
Transactions) TPG will be entitled to (i) retain the securities in Perfect
Renaissance acquired or to be acquired by TPG or its affiliates under this
agreement as though the Business Combination had occurred and (ii) receive in
full all payments to be due to it or its affiliates through and upon completion
of the Transactions as though those events had occurred provided, however, that
Perfect Renaissance will not be obligated to make any payment under this
paragraph if the failure to complete the Transactions is due to any actions or
failure to act by TPG or its affiliates. Upon payment of the buyout fee provided
for herein, all obligations of the parties under this agreement will cease
except for obligations which expressly or by their nature survive termination.

6.       PERFORMANCE OF SERVICES BY OTHERS.

From time to time, the achievement of certain results desired by the Company,
including the promotion of interest in its public securities, may be enhanced by
the services of other parties. These parties may include consultants,
advertising agencies, market makers, investment bankers, financial analysts and
similar persons who may, directly or indirectly, assist in creating interest in
the Company's securities. All compensation, costs and expenses of such parties
will be borne by the Company.

7.       ACTIONS AND UNDERSTANDINGS FOLLOWING THE BUSINESS COMBINATION.

         7.1. Perfect Renaissance understands the obligations and
responsibilities that will arise in regard to its becoming a reporting company
and the trading of its securities in the public market. Perfect Renaissance
understands that in order to achieve the greatest market interest in its
securities it, its officers and its directors, all or some, will be required to
continuously interact with the financial community. This interaction will
include, without limitation, timely filing of reports under the Securities
Exchange Act of 1934, including audited financial statements; annual reports to
shareholders and shareholder meetings; issuing periodic press releases; and
meetings and discussions with existing and prospective brokers, market makers,
investment bankers and institutions.

                                        3

<PAGE>

         7.2. Perfect Renaissance understands that the completion of the
Transactions will not, in itself, result in capital investment in the Company.
The public status of the Company and its introduction to market makers and
others in the financial community may result in investment interest. However,
investment interest will depend upon the success of the Company, market
conditions and other factors over which neither TPG nor its affiliates have any
control.

         7.3. Perfect Renaissance understands that the ultimate judgement of the
financial community of the investment merits of the Company will depend upon the
Company's ability to successfully carry out its business plans and operations,
to operate at a profit and similar business considerations. Perfect Renaissance
represents in good faith that it currently has no reason to believe that it will
not be able to complete the Transactions and to achieve its business objectives.

         7.4. Perfect Renaissance understands that the first trading in the
Company's securities may be limited, and that to increase the amount, depth and
market price of its securities will require both time and effort by the Company
to develop relations with market makers and to create strong and stable trading
of the Company's securities.

         7.5. During the Transactions and so long as TPG or an affiliate is a
shareholder of the Company, it will provide TPG continuing and reasonable access
as requested to all information concerning the Company's Operations, past,
current and intended, including, without limitation, full access to the
financial records of the Company.

8.       COMPLIANCE WITH SECURITIES LAW.

Now and following the Business Combination, as applicable, Perfect Renaissance
represents and warrants that:

         8.1. Perfect Renaissance and its affiliates will at all times observe
and comply with Federal and State securities laws, rules and regulations
incident to the issuance and trading of the securities of the Company and will
take all steps reasonably required within its control to prohibit any persons,
whether or not affiliated with Perfect Renaissance, from engaging in any
transactions in contravention of such laws, rules and regulations.

         8.2. Perfect Renaissance and its affiliates will furnish all
information and documents concerning it and its affiliates required for the
preparation and filing of a Form 8-K or Form 10-SB by the Company and will
assure that such information is complete and accurate and does not contain any
material misstatement or omit any material information. Toward that end, Perfect
Renaissance and its affiliates will timely provide all requested information and
documents, including officers' and directors' questionnaires.

         8.3. Perfect Renaissance and its affiliates will not at any time
knowingly engage in any activity which would constitute a prohibited market
manipulation of the securities of the Company and will take all steps reasonably
required within its control to prohibit any officer, director, other affiliate,
agent or employee from engaging in such conduct.

         8.4. The Company will not at any time issue securities registered on
Form S-8 or issued pursuant to Regulation S of the General Rules and Regulations

                                        4

<PAGE>

of the Securities and Exchange Commission without (i) prior written notification
to TPG and (ii) either the written consent of TPG or a written opinion of
qualified counsel that neither the issuance nor intended use of such securities
will violate any law, rule, or regulation under the Securities Act of 1933 or
the Securities Exchange Act of 1934.

         8.5. The Company will not issue any securities to any person for the
promotion or maintenance of a trading market in the Company~ s securities
without first receiving an opinion of qualified counsel that such issuance will
be in accord with securities laws, rules and regulations and will not, directly
or indirectly, receive from such persons any capital by loan, investment or
otherwise resulting from the sale or pledge of such securities.

         8.6. For not less than 36 months following effective date of the
Registration Statement, the Company will timely make all required Federal, state
and other filings necessary to allow the public trading of the Company's
securities and, if the Company's securities are then quoted on the Nasdaq Stock
Market or listed on any regional or national exchange, will take all actions
necessary to maintain such status for the Company's securities.

         8.7. For so long as TPG or its designee is an owner of any of the
securities to be received by it under this agreement, TPG shall have the right
to enforce the provisions of this paragraph and to seek damages for any
violation thereof by the Company, including damages for any reduced value of the
TPG securities if resulting from such violation.

9.  NOTICES.

         Any notices required or permitted under this agreement shall be deemed
to have been given when delivered in writing by hand, certified mail (return
receipt requested) or commercial courier, such as FedEx, to the following
addresses or to such other addresses as may have been given to each party in the
manner provided for in this paragraph.

         In the case of Perfect Renaissance or the Company to

         Perfect Renaissance Ltd.
         3 Moshe Dayan Road
         Yehud, Israel

         In the case of TPG to

         TPG Capital Corporation
         1504 R Street N.W.
         Washington, D.C. 20009

10.  ARBITRATION.

         10.1. SCOPE. The parties hereby agree that any and all claims (except
only for requests for injunctive or other equitable relief) whether existing
now, in the past or in the future as to which the parties or any affiliates may
be adverse parties, and whether arising out of this agreement or from any

                                                         5

<PAGE>

other cause, will be resolved by arbitration before the American Arbitration
Association within the District of Columbia.

         10.2. CONSENT TO JURISDICTION, SITUS AND JUDGEMENT. The parties hereby
irrevocably consent to the jurisdiction of the American Arbitration Association
and the situs of the arbitration within the District of Columbia. Any award in
arbitration may be entered in any domestic or foreign court having jurisdiction
over the enforcement of such awards.

         10.3. APPLICABLE LAW. The law applicable to the arbitration and this
agreement shall be that of the District of Columbia, determined without regard
to its provisions which would otherwise apply to a question of conflict of laws.

         10.4. DISCLOSURE AND DISCOVERY. The arbitrator may, in its discretion,
allow the parties to make reasonable disclosure and discovery in regard to any
matters which are the subject of the arbitration and to compel compliance with
such disclosure and discovery order. The arbitrator may order the parties to
comply with all or any of the disclosure and discovery provisions of the Federal
Rules of Civil Procedure, as they then exist, as may be modified by the
arbitrator consistent with the desire to simplify the conduct and minimize the
expense of the arbitration.

         10.5. RULES OF LAW. Regardless of any practices of arbitration to the
contrary, the arbitrator will apply the rules of contract and other law of the
jurisdiction whose law applies to the arbitration so that the decision of the
arbitrator will be, as much as possible, the same as if the dispute had been
determined by a court of competent jurisdiction.

         10.6. FINALITY AND FEES. Any award or decision by the American
Arbitration Association shall be final, binding and non-appealable except as to
errors of law or the failure of the arbitrator to adhere to the arbitration
provisions contained in this agreement. Each party to the arbitration shall pay
its own costs and counsel fees except as specifically provided otherwise in this
agreement.

         10.7. MEASURE OF DAMAGES. In any adverse action, the parties shall
restrict themselves to claims for compensatory damages and\or securities issued
or to be issued and no claims shall be made by any party or affiliate for lost
profits, punitive or multiple damages.

         10.8. COVENANT NOT TO SUE. The parties covenant that under no
conditions will any party or any affiliate file any action against the other
(except only requests for injunctive or other equitable relief) in any forum
other than before the American Arbitration Association, and the parties agree
that any such action, if filed, shall be dismissed upon application and shall be
referred for arbitration hereunder with costs and attorney's fees to the
prevailing party.

         10.9. INTENTION. It is the intention of the parties and their
affiliates that all disputes of any nature between them, whenever arising,,
whether in regard to this agreement or any other matter, from whatever cause,
based on whatever law, rule or regulation, whether statutory or common law, and
however characterized, be decided by arbitration as provided herein and that no
party or affiliate be required to litigate in any other forum any disputes or
other matters except for requests for injunctive or equitable relief. This
agreement shall be interpreted in conformance with this stated intent of the
parties and their affiliates.

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<PAGE>

         10.10. SURVIVAL. The provisions for arbitration contained herein shall
survive the termination of this agreement for any reason.

11. ASSIGNMENT. For regulatory reasons or to better carry out the Transactions,
TPG may assign this agreement to an affiliated corporation provided that such
affiliated corporation agrees to all the terms and conditions of this agreement.
Such assignment will not relieve TPG of any of its obligations under this
agreement.

12. CONFIDENTIALITY. As a result of entering into this agreement Perfect
Renaissance will have access to information which TPG regards as confidential
and proprietary regarding TPG's methods of carrying out the Transactions
(collectively the "Business of TPG"). Perfect Renaissance agrees that it will
not, except as reasonably required pursuant to this Agreement, use itself, or
divulge, furnish, or make accessible to any person any knowledge, knowhow,
techniques, or information with respect to TPG or the Business of TPG without
the prior written agreement of TPG.

13. TERMINATION. TPG may terminate this agreement, without further obligation or
liability, at any time (i) that TPG has a reasonable basis to believe that any
aspect of the transactions covered by this agreement would constitute a fraud or
deception on the market or (ii) that the Company fails to meet its obligations
under this agreement in a manner which would constitute a material breach. In
any such case, TPG will be entitled to the buyout fee provided for in this
agreement.

14.  MISCELLANEOUS.

         14.1. COVENANT OF FURTHER ASSURANCES. The parties agree to take any
further actions and to execute any further documents which may from time to time
be necessary or appropriate to carry out the purposes of this agreement.

         14.2. SCOPE OF AGREEMENT. This agreement constitutes the entire
understanding of the parties. No undertakings, warranties or representations
have been made other than as contained herein, and no party shall assert
otherwise. This agreement may not be changed or amended orally.

         14.3. CURRENCY. All references to currency in this agreement are to
United States Dollars.

         14.4. REVIEW CF AGREEMENT. Each party acknowledges that it has had time
to review this agreement and, as desired, consult with counsel. In the
interpretation of this agreement, no adverse presumption shall be made against
any party on the basis that it has prepared, or participated in the preparation
of, this agreement.

15. EFFECTIVE DATE.

         The effective date of this agreement is May 20 1999.

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<PAGE>

         IN WITNESS WHEREOF, the parties have approved and executed this
agreement.

TPG CAPITAL CORPORATION

----------------------------------
President

PERFECT RENAISSANCE LTD.

----------------------------------
President

                                        8

<PAGE>

             WARRANTIES BY OFFICERS, DIRECTORS AND OTHER AFFILIATES

         Each of the undersigned officers, directors and other affiliates of
Perfect Renaissance agree that they have read this agreement and that they (i)
will not violate any of the provision of this agreement relating to compliance
with securities laws, rules and regulations (ii) will not violate any provision
of this agreement relating to confidentiality of the business of TPG and (iii)
consent to be governed by the provisions of this agreement relating to
arbitration in the case of any claims arising from their warranties herein.

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<PAGE>

                               PERSONAL GUARANTEES

         In consideration of benefits to be received by Perfect Renaissance and
to them personally, the following persons, individually and severally, (i)
guarantee all payments required of Perfect Renaissance under this agreement as
and when due (ii) covenant to take all actions and do all things reasonably
required to carry out the intent and purpose of this agreement, whether as
officers, directors, shareholders or otherwise and (iii) consent to be governed
by the provisions of this agreement relating to arbitration.

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

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

                                       10<PAGE>   1

                                                                  EXHIBIT 10.3.4

                                            LEASE

 TERRADEV JEFFERSON LLC                  LESSOR

 CHOLESTECH CORPORATION                  LESSEE
 dba WellCheck.com

TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                        Page
                                                                        ----

<S>     <C>                                                             <C>
 1.     PARTIES...........................................................1
 2.     PREMISES..........................................................1
 3.     TERM..............................................................1
 4.     POSSESSION........................................................1
 5.     RENTAL............................................................1
 6.     LATE CHARGES......................................................1
 7.     SECURITY DEPOSIT..................................................2
 8.     SERVICES..........................................................2
 9.     INSURANCE.........................................................2
 10.    TAX INCREASES.....................................................3
 11.    MAINTENANCE AND REPAIRS...........................................4
 12.    SIGNS.............................................................5
 13.    USE...............................................................5
 14.    ENTRY BY LESSOR...................................................6
 15.    ELEVATORS.........................................................6
 16.    CONDITION OF PREMISES.............................................7
 17.    COMPLIANCE WITH LAW...............................................6
 18.    DESTRUCTION OF PREMISES...........................................7
 19.    ASSIGNMENT AND SUBLETTING.........................................8
 20.    SURRENDER OF LEASE................................................8
 21.    DEFAULT...........................................................9
 22.    INSOLVENCY OR BANKRUPTCY..........................................9
 23.    ALTERATIONS.......................................................9
 24.    INDEMNIFICATION OF LESSOR........................................10
 25.    WAIVER OF CLAIMS AND LIMITATION OF LIABILITY.....................10
 26.    WAIVER OF TERMS..................................................11
 27.    HOLDING OVER.....................................................11
 28.    ESTOPPEL CERTIFICATE.............................................11
 29.    TRANSFER OF LESSOR'S INTEREST....................................11
 30.    CONDEMNATION.....................................................12
 31.    SUBORDINATION....................................................12
 32.    SECURITY.........................................................12
 33.    ATTORNEYS FEES...................................................12
 34.    NOTICES..........................................................12
 35.    LIENS............................................................12
 36.    RECORDATION......................................................13
 37.    RULES AND REGULATIONS............................................13
 38.    QUIET ENJOYMENT..................................................13
</TABLE>

<PAGE>   2

<TABLE>
<S>     <C>                                                             <C>
 39.    RELOCATION.......................................................13
 40.    CORPORATE RESOLUTION.............................................13
 41.    GENERAL PROVISIONS...............................................13
        SIGNATURE PAGE...................................................14
</TABLE>

                                      LEASE

PARTIES
               1. This Lease is made this 28th day of July, 2000 by TERRADEV
        JEFFERSON LLC, a California Limited Liability Company, hereinafter
        referred to as "Lessor" and CHOLESTECH CORPORATION, a California
        Corporation dba WellCheck.com, hereinafter referred to as "Lessee".

PREMISES
               2. Lessor hereby leases to Lessee and Lessee hereby leases from
        Lessor for the term , at the rental, and upon all of the conditions set
        forth herein, that certain commercial space consisting of approximately
        5,158 rentable square feet consisting of the ground floor and mezzanine
        at 331 Jefferson Street, Oakland, California, hereinafter referred to as
        the "Premises". Lessee's pro rata share of the rentable square feet of
        the Building wherein the Premises are located is calculated by dividing
        the rentable square feet of the Premises by the rentable square feet of
        the Building.

               Diagrammatic floor plans of the Premises are attached hereto as
        Exhibit "A" and incorporated herein by reference.

TERM
               3. This Lease is for a term ("The Term") commencing on the
        earlier of 30 days after substantial completion of Lessor's Work
        constructed pursuant to Paragraph 16 hereof which is estimated to be
        September 1, 2000, or Lessee's occupancy of the Premises ("The
        Commencement Date") and ending on the last day of the sixtieth month
        thereafter. Once the Commencement Date and the last day of the term have
        been determined, Lessor and Lessee shall execute a memorandum confirming
        same.

POSSESSION
               4. If Lessor, for any reason whatsoever, cannot deliver
        possession of the Premises to Lessee within sixty (60) days after the
        estimated completion of Lessor's Work, this Lease shall be void or
        voidable at the option of the Lessee, written notice of which shall be
        delivered to Lessor on such date; however, Lessor shall not be liable to
        Lessee for any loss or damage resulting therefrom.

RENTAL
               5. All rent is payable in advance and is due on the first day of
        each calendar month, without deduction or offset at the address
        specified by Lessor. Partial months, whether at the commencement or
        termination of the Term, shall be prorated on a thirty (30) day basis.

             Upon execution of this Lease, Lessee shall pay to Lessor in advance
        the estimated first full months rent in the amount of $13,998.70 which
        will be credited to Lessee's account commencing on the Commencement
        Date, as hereinbefore defined. Minimum Monthly Rent during the first 12
        full months following the Commencement Date shall be $2.70 per square
        foot of space as reasonably calculated by Lessors Architect.

             The initial Monthly Rent per square foot shall be subject to a four
        percent (4%) adjustment on the first day of the month twelve full months
        following the Commencement Date (the "Anniversary Date") and

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<PAGE>   3

        on each Anniversary Date of the initial term thereafter as follows: year
        2 - $2.81; year 3 - $2.92; year 4 - $3.04; year 5 - $3.16.

LATE CHARGES

               6. Monthly Rent shall be due and payable on the first day of each
        month during the Term of this Lease. Lessee acknowledges that late
        payment by Lessee to Lessor of Monthly Rent will cause Lessor 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 Lessor by the terms of any encumbrance and note
        secured by the Premises. Therefore, if any installment of rent due from
        Lessee is not received by Lessor on or before the fifth day of the
        month, Lessee shall pay to Lessor an additional sum of ten percent (10%)
        of the Monthly Rent as a late charge.

              The parties agree that this late charge represents a fair and
        reasonable estimate of the costs that Lessor will incur by reason of
        late payment by Lessor. Acceptance of any late charge or late rent shall
        not constitute a waiver of Lessee's default with respect to the overdue
        amount, nor prevent Lessor from exercising any of the other rights and
        remedies available to Lessor.

SECURITY
DEPOSIT

               7. Lessor acknowledges receipt of the amount of $41,310.00 which
        Lessor is to retain as security for the faithful performance of all of
        the covenants, conditions and agreements of the Lessee under the Lease.
        In no event shall Lessor be obligated during the Term to apply all or
        any part of the same towards rents or other charges or for damages upon
        Lessee's failure to perform any of the covenants, conditions and
        agreements of the Lease.

             The security deposit, to the extent not used by Lessor, shall be
        returned to Lessee (without interest for the period said moneys were
        held by Lessor) after the Lessor receives possession of the Premises or
        Lessor shall notify Lessee of its disposition. Lessor's obligations with
        respect to the security deposit are those of a debtor and not a trustee.

               In the event that during the Term Lessor uses all or any portion
        of such security deposit to remedy any default of Lessee, Lessee agrees
        to redeposit the amount so used or applied within ten (10) days from the
        date of Lessor's demand therefore.

SERVICES

               8. (a) Except as provided below, Lessee agrees to pay for
        utilities furnished to the Premises during the Term, including but not
        limited to electricity, gas, water, telephone service, janitorial
        service or any other services contracted for by Lessee. If the Premises
        are not separately metered, Lessee shall reimburse Lessor for Lessee's
        pro rata usage based on the ratio of the square footage of Lessee's
        Premises to the square footage of building served by the meter in
        question.

               (b) Lessor will provide space for Lessee to maintain a trash bin
        for normal office use in the designated common area of the Building.
        Lessee shall deposit and confine all trash and refuse of Lessee in the
        bin and pay for the removal thereof.

               (c) Lessee shall provide and maintain fire extinguishers in such
        numbers and locations specified by the insurance underwriters, the
        Oakland Fire department, and all applicable governmental regulations.

                                       2
<PAGE>   4

INSURANCE

               9.1 (a) Lessee, at Lessee's sole expense, shall obtain, update
        and keep in force during the Term all-risk insurance policies providing
        the following coverage:

               (1) Standard fire insurance, with extended coverage, covering all
        of Lessee's fixtures, furniture, equipment, inventory, goods and other
        personal property on the Premises and also covering any of Lessee's
        leasehold improvements and alterations not constructed by Lessor
        pursuant to Paragraph 16, to the extent of at least eighty percent (80%)
        of the replacement value thereof;

               (2) Commercial public liability and property damage insurance
        insuring against all claims, accidents injuries and damages or bodily
        injury to, and death of, persons, and for loss of, or damage to,
        property, arising out of the use, occupancy or maintenance of the
        Premises by Lessee, its employees, agents, representatives and invitees.
        Such insurance shall have liability limits of (i) not less than $500,000
        per occurrence for bodily injuries or death and (ii) not less than
        $500,000 per occurrence for property damage.

               (b) Policies or confirmation thereof, of insurance provided for
        herein shall be delivered to Lessor prior to the Lease Commencement Date
        and shall (i) be approved as to form and substance by Lessor, which
        approval shall not be unreasonably withheld, (ii) be issued by insurance
        companies which are qualified to do business in the State of California
        and which are rated A-VIII or better in the most currently available
        'Best's Insurance Reports", (iii) be issued in the name of Lessee and
        Lessor shall be named an additional insured for the mutual and joint
        benefit and protection of Lessor and Lessee as their interests may
        appear, provided, however, that Lessee's interest in any proceeds of a
        fire insurance or casualty policy shall be subordinate to Lessor's to
        the extent that any funds advanced by Lessor for Tenant Improvements
        shall not be fully repaid, (iv) give Lessor thirty (30) days' prior
        written notice of any cancellation or lapse or any reduction in the
        amounts of insurance, and (v) contain an endorsement containing an
        express waiver of any right of subrogation by the insurance company
        against Lessor (whether Lessor is named as an insured or not). All
        public liability, property damage and other casualty policies provided
        for herein shall (i) contain a provision that Lessor, although named as
        an additional insured, shall nevertheless be entitled to recover under
        said policies for any loss occasioned to Lessor or to Lessor's
        employees, agents, invitees, or representatives or to Lessor's property
        by reason of the negligence of Lessee or Lessee's employees, agents or
        representatives, and (ii) be written as primary policies, not
        contributing to, or in excess of, coverage which Lessor may carry.

               (c) Executed copies of such policies of insurance or certificates
        thereof shall be delivered to Lessor within ten (10) days after delivery
        of possession of the Premises to Lessee and thereafter renewal notices
        at least fifteen (15) days prior to the expiration of the term of such
        policy. If not so delivered, Lessor may, but shall not be required to,
        order such insurance and charge the cost thereof to Lessee, which amount
        shall be payable on demand.

               (d) No more than once every two years during the term hereof,
        Lessor may request that Lessee increase the limits of its public
        liability insurance to such limits as Lessor shall deem reasonably
        necessary.

               9.2 Lessor shall obtain and keep in force during the term hereof
        a policy or policies of insurance covering loss or damage to Lessor's
        buildings, providing protection against all perils included within the
        classification of fire, extended coverage, vandalism, and malicious
        mischief, such insurance to be in an amount of at least eighty percent
        of the replacement cost of Lessor's buildings, and to contain an agreed
        amount endorsement. Lessor shall also maintain commercial public
        liability insurance. Annually, Lessee shall reimburse Lessor by Lessee's
        pro rata share specified in paragraph 2 hereof of costs incurred by
        Lessor for Lessor's insurance provided pursuant to this paragraph.

                                       3
<PAGE>   5

               9.3 Any insurance carried by either party with respect to the
        premises and property or occurrences relating to them shall include a
        clause or endorsement denying to the insurer rights of subrogation
        against the other party to the extent rights have been waived by the
        insured prior to occurrence of injury or loss. Each party,
        notwithstanding any provisions of this lease to the contrary, waives any
        right of recovery against the other for injury or loss due to hazards
        covered by insurance containing such clause or endorsement to the extent
        that the injury or loss is covered by such insurance.

REAL PROPERTY TAXES

               10. On April 1 and December 1 of each year during the Term,
        Lessee shall pay to the Lessor upon notice its pro rata share of the
        total Real Property Taxes upon the whole of the land and Building upon
        and within which the Premises are situate. Tenant's pro rata share is
        calculated by dividing the square foot area of the Premises by the total
        square feet of the Building as provided in paragraph 2. Lessee shall be
        solely responsible for any increase in taxes caused by an increase in
        assessed valuation due to work done, construction improvements made or
        equipment installed, by Lessee in the Premises at any time during the
        Term.

               The amount of Lessee's obligation under this paragraph for the
        first and last years of the Term shall be prorated in the proportion
        that the period this Lease is in effect during the tax year in which
        this Lease is in force bears to the full tax year.

               Lessee shall also pay, before delinquency any and all taxes
        levied or assessed and which become payable, during the Term upon
        Lessee's equipment, furniture, fixtures and other personal property
        located in the Premises. In addition to rental and other charges to be
        paid by Lessee hereunder, Lessee shall reimburse to Lessor, upon demand,
        any and all taxes, assessments or special assessments payable by Lessor
        (other than net income taxes) whether or not now customary or within the
        contemplation of the parties hereto: (a) upon, allocable to, or measured
        by or on the same percentage as the square foot area of the Premises
        bears to the square foot area of the entire Building including, without
        limitation, any gross income tax or excise tax levied by the State, any
        political subdivision thereof, or Federal Government with respect to the
        receipt of such rental; or (b) upon, or with respect to, the possession,
        leasing, operation, management, maintenance, alteration, repair, use of
        occupancy by Lessee of the Premises or any portion thereof; or (c) upon
        or measured by the value of Lessee's equipment, furniture, fixtures and
        other personal property located in the Premises or by the cost or value
        of any leasehold improvements located in the Premises; or (d) upon this
        transaction or any document to which Lessee is a party creating or
        transferring an interest or an estate in the Premises. The term "Real
        Property Taxes" shall not include and Lessee shall not be required to
        pay any portion of any tax or assessment expense or any increase therein
        (a) levied on Lessor's rental income, unless such tax or assessment
        expense is imposed in lieu of real property taxes; (b) in excess of the
        amount which would be payable if such tax or assessment expense were
        paid in installments over the longest possible term; (c) imposed on land
        and improvements other than the Building; or (d) attributable to
        Lessor's net income, inheritance, gift, transfer, or estate taxes.

               Lessor shall furnish copies of the tax bill for the year in
        question at Lessee's request.

MAINTENANCE
AND REPAIRS

               11. (a) Except as provided in paragraphs 18 and 30 hereunder,
        Lessor shall, at Lessor's sole cost and expense, keep and maintain, in
        good condition, the structural parts of the Building in which the
        Premises are located. As used herein, "structural parts" include only
        the foundations, bearing and exterior walls (excluding glass and doors),
        sub-flooring and roof and the unexposed plumbing and sewage systems,
        servicing the Premises. Notwithstanding any of the above, Lessee shall
        be liable for any damage to the structural parts or other parts of the
        Building which are caused by, or result from the acts or omissions of
        Lessee, its authorized agents, or representatives or employees or
        invitees.

                                       4
<PAGE>   6

                   (b) Lessor shall maintain the common areas of the building
        including the landscaping and any HVAC, plumbing, or electrical systems
        serving the building as a whole as opposed to systems devoted
        exclusively to a particular tenant. Lessee shall reimburse Lessor its
        pro rata share of such common area expenses pursuant to Paragraph 1.
        Such common area expenses shall not include costs which could properly
        be capitalized under generally accepted accounting principles, except to
        the extent amortized over the useful life of the capital item in
        question.

                   (c) Lessee shall, at Lessee's sole cost and expense, keep and
        maintain the Premises, and all improvements in or exclusively serving
        said Premises in good condition and repair. Lessor shall have no
        responsibility to maintain or repair the Premises unless any damage to
        said Premises are caused by (i) acts or omissions of the Lessor, or its
        authorized agents, representatives or employees, or (ii) Lessor's
        negligent failure to perform its obligations above stated.

               In the event Lessee fails to maintain and repair the Premises or
        fails to commence appropriate work within ten (10) days following notice
        from Lessor, Lessor may, at Lessor's option, cause the maintenance and
        repairs to be made and Lessee shall pay to Lessor the total cost thereof
        within ten (10) days of Lessor's written demand for said payment. Lessor
        may, at its discretion, determine that a particular needed repair
        constitutes an emergency. If Lessor determines that a repair is an
        emergency, Lessor shall make reasonable efforts to notify Lessee of said
        emergency condition and request immediate repairs. In the event that
        Lessor is unable to contact Lessee or Lessee fails to make said
        emergency repairs immediately upon the request of Lessor, Lessor may, in
        its discretion, cause said emergency repairs to be made and Lessee shall
        pay to Lessor the cost of said repairs within ten (10) days' written
        notice thereof. Nothing contained in this paragraph shall be construed
        to impose upon Lessor any obligation to make any emergency or
        non-emergency maintenance or repairs to said Premises.

   SIGNS
               12. At Lessor's cost, Lessor shall provide one door or wall sign
        to the Premises, said door or wall sign to include the street address.
        At Lessee's cost, Lessor will permit Lessee to install a sign on the
        exterior of the building. The location and design of the sign shall be
        subject to the requirements of the City of Oakland and Lessor's
        reasonable approval.

               Except as approved by Lessor, Lessee agrees that Lessee will not
        construct or place, or permit to be constructed or placed, signs,
        displays, advertisements, awnings, marquees, or other items on the
        exterior of the Premises, nor on the interior of the windows. Any signs,
        displays, advertisements, or decorations placed by Lessee without
        Lessor's prior written consent shall be removed within ten (10) days
        after receiving written notice from Lessor to remove same, Lessor
        reserves the right to enter the Premises and remove them at Lessee's
        expense.

               Any approved sign provided for or allowed herein to be installed
        by Lessee shall, unless otherwise agreed, be removed at the expiration
        or earlier termination of the Lease at Lessee's expense and Lessee shall
        repair any damage caused to the Premises resulting from such removal. If
        Lessee fails to do so, Lessor may cause such removal and repair on
        Lessee's behalf, at Lessee's expense.

USE
               13. Lessee shall use the Premises for general offices, and shall
        not use or permit the Premises to be used for any other purpose without
        the prior written consent of Lessor.

               Ingress and egress for the moving of office furniture,
        furnishings, equipment, file cabinets and supplies shall be a done in
        accordance with Building policy and with notification to Lessor.

               Lessee shall not do, or permit anything to be done, in or about
        the Premises therein which will in any way increase the existing rate
        of, or affect any fire or other, insurance coverage upon the Building or
        its contents, or cause cancellation of any insurance policy covering
        said Building or any part thereof or its contents. Lessee shall not do,
        or permit anything to be done in or about the Premises, including common

                                       5
<PAGE>   7

        areas, which will in any way obstruct or interfere with the rights of
        other Lessees 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. Lessee shall not cause, maintain or permit any
        nuisance or waste in, on or about the Premises.

               Lessee shall not use the Premises, or permit them to be used, for
        any auction, fire, liquidation, or bankruptcy sale.

               In the event of the Lessee's failure to comply with any provision
        in this paragraph, Lessor, at its option, may treat such failure as a
        breach of this Lease or require that Lessee pay for any increase in the
        rate of any insurance, or for any other damages, resulting from said
        failure to comply.

ENTRY BY
LESSOR

               14. Upon reasonable notice (24 hours except in case of
        emergency), Lessee will permit Lessor and his agents to enter into the
        Premises at all reasonable times to inspect them and to maintain the
        Building in which the Premises are situated, or to make repairs,
        alterations, or additions to any other portion of said Building. Lessor
        shall use reasonable efforts to minimize any disturbance to Lessee's
        business operations during any such entry. This entry shall be without
        any rebate of rent to the Lessee for any loss of occupancy or quiet
        enjoyment of the Premises thereby occasioned. The work to be performed
        by Lessor shall include the right to penetrate walls, floor and ceilings
        of the Premises if necessary for improvements or alterations or areas
        outside of the Premises. Lessor shall use reasonable efforts to confine
        such activities within the demising walls. If, however, it is
        impractical to confine such alterations to the demising walls, Lessor
        may invade the demised Premises to accomplish such work without
        abatement of rent so long as there is a reduction of no more than 2-1/2
        square feet of floor area from the demised Premises. Such installations
        shall be concealed and made as inconspicuous as reasonably possible.
        Such penetrations shall be diligently and promptly repaired to its
        previous appearance and condition and shall not materially or
        unreasonably affect or interrupt the Lessee's conduct of business. Such
        installations shall be made in a workmanlike manner during normal
        business days and hours observed by local trades or crafts involved in
        such work and with minimum disruption of the Premises of Lessee.

               Lessor may also have access to said Premises to exhibit them
        during reasonable hours to prospective purchasers and tenants. Lessor
        reserves the right to place "For Sale" of Building (not business) signs
        on the Premises at any time during the Lease, or "For Lease" or "For
        Rent' signs on the Premises at any time within ninety (90) days of the
        expiration of the Lease.

               For each of the aforesaid purposes, Lessor and/or its agent shall
        at all times have and retain a key with which to unlock all of the doors
        in, upon and about the Premises, excluding Lessee's vaults and safes.
        Lessee shall not alter any lock or install a new or additional lock or
        any bolt on any door of the Premises without prior written consent of
        the Lessor. If Lessor shall give its consent, Lessee shall in each case
        furnish the Lessor with a key for any such lock.

ELEVATORS
               15. Not Applicable.

CONDITION OF
PREMISES
               16. As of the date of this Lease, Lessor is in the process of
        renovating and making additions to the building of which the Premises
        are a part. At Lessor's sole cost, the building and Premises will be
        provided with the following improvements referred to as "Lessor's Work":
        HVAC delivered to the open areas of the

                                       6
<PAGE>   8

        Premises and into toilet areas; exterior doors; guard rail on the
        mezzanine and stair; painted walls as shown on Lessor's floor plan;
        light fixtures based on Lessor's existing lighting plan which includes
        lights above and below the mezzanine; irregularities in floor to be
        filled pursuant to plans and specifications of Lessor's Architect and
        made ready for carpet; sound proofing of mezzanine to be accomplished by
        installation of pad and carpet; plumbing to kitchen to include single
        stainless steel sink, single lever faucet, and limited kitchen counter
        and under counter cabinets in melamine/Formica per Lessor's choice; 200
        amp power panel; electrical lines/outlets provided per Lessor's existing
        power plan; and an allowance for carpet and pad of $27.00 per square
        yard. Lessor shall complete Lessor's Work in a good and workmanlike
        manner and in compliance with all laws. Lessee's acceptance of the
        Premises shall not be deemed a waiver of Lessee's right to have Lessor
        at Lessor's expense repair any defects in Lessor's Work. Lessor
        represents as of the Commencement Date that the Premises will be in good
        condition and repair, the roof water tight and in good condition, and
        the electrical, mechanical, plumbing, HVAC and other systems serving the
        Premises will be in good condition and repair.

               In addition, Lessee shall improve the Premises pursuant to plans
        and specifications prepared by Lessee's Architect and approved by
        Lessor. Lessor shall provide a Tenant Improvement Allowance of Ten
        Dollars ($10.00) per square foot of Premises. The Tenant Improvement
        Allowance includes the charges of Lessee's architect, engineers,
        permits, as well as direct costs of construction. In the event Lessee
        employs consultants and contractors other than those retained by Lessor,
        any costs incurred by Lessor to review Lessee's Tenant Improvement plans
        shall be paid from the Tenant Improvement Allowance. Lessor will not
        assess any charge for its own personnel in reviewing such plans or
        inspecting the construction. Any costs in excess of $10.00 per square
        foot shall be paid by Lessee.

               By entry hereunder, excepting any "punchlist" items specified by
        Lessee, Lessee accepts the Premises as being in good and sanitary order,
        condition and repair. Lessee agrees on the last day of the Term, or
        sooner termination of this Lease, to surrender to Lessor the Premises in
        the same condition and state as when received, reasonable use and wear
        excepted, and to remove all of the Lessee's signs from said Premises.

COMPLIANCE
WITH LAW
               17. Lessee shall not use, nor 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 hereafter
        enacted or promulgated. Lessee shall, at its sole cost and expense,
        promptly comply with all laws, statutes, ordinances and governmental
        rules, regulations and requirements now or hereafter 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 Lessee's improvements or acts. The
        judgment of any court of competent jurisdiction or the admission of
        Lessee in any action against Lessee, whether Lessor be a party thereto
        or not, that Lessee has violated any law, statute, ordinance or
        governmental rule, regulation or requirement, shall be conclusive of
        that fact as between the Lessor and Lessee.

               To the best of Lessor's knowledge, (a) no Hazardous Material is
        present in the Property or the soil, surface water, or groundwater
        thereof, (b) no underground storage tanks are present on the property,
        and (c) no action, proceeding, or claim is pending or threatened
        regarding the Property concerning any Hazardous Material or pursuant to
        any environmental law. Under no circumstances shall Lessee be liable for
        any losses, costs, claims liabilities and damages (including attorneys'
        fees and consultants' fees) of every type and nature, directly or
        indirectly arising out of or in connection with any Hazardous Material
        present at any time on or about the Property, or the soil, air,
        improvements, groundwater or surface water thereof, except to the extent
        that any of the foregoing actually results from the release or emission
        of Hazardous Material by Lessee or its agents or employees in violation
        of applicable environmental laws. "Hazardous Material" shall mean any
        material which is now or hereafter regulated by any governmental
        authority or which poses a hazard to the environment or human life.

                                       7
<PAGE>   9

DESTRUCTION
OF PREMISES
               18. In the event of a partial destruction of said Premises during
        the Term, from an insured cause, Lessor shall forthwith repair the
        Premises provided such repairs, in Lessor's sole opinion can be
        completed within ninety (90) days, such repairs to be made in accordance
        with the laws and regulations of State, Federal, County or Municipal
        authorities. Such partial destruction shall in no way annul or void this
        Lease, except that Lessee shall be entitled to a reduction of rent while
        such repairs are being made, in proportion to the square footage of the
        Premises which is rendered unusable by Lessee in the conduct of its
        business.

               If such repairs, in Lessor's sole opinion, cannot be completed in
        ninety (90) days or, if such partial destruction results from an
        uninsured cause, Lessor may, at its option repair the same within a
        reasonable time, not to exceed 180 days or Lessor and Lessee may
        mutually agree that Lessor may make such repairs within such greater
        period of time as Lessor and Lessee may designate, this Lease continuing
        in full force and effect and the rent to be proportionately reduced as
        said in the preceding paragraph.

               In the event that Lessor determines that such partial destruction
        cannot be repaired in ninety (90) days or if such partial destruction
        results from an uninsured cause and Lessor elects not to make such
        repairs, this Lease may be terminated at the option of either party. In
        the event that the Building in which the Premises are situated is
        destroyed to the extent of at least 33-1/3 % of the replacement cost
        thereof, Lessor may elect to terminate this Lease, whether the Premises
        be injured or not. A total destruction of the Building in which the
        Premises may be situated shall terminate this Lease.

               If Lessor is required or elects to restore the Premises as
        provided in this paragraph, Lessor shall not be required to restore
        alterations made by Lessee including Lessee's Initial Tenant
        Improvements or Lessee's personal property, such items being the sole
        responsibility of Lessee to restore at Lessee's sole cost and expense.

               Lessee hereby waives any rights it may have to terminate this
        Lease pursuant to California Civil Code Sections 1932(2) and 1933(4),
        except as provided hereunder.

ASSIGNMENT AND
SUBLETTING
               19. Lessee shall not assign, mortgage or hypothecate this Lease,
        or any interest in this Lease, or permit the use of the Premises by any
        person or persons other than Lessee, or sublet the Premises, or any part
        of the Premises without Lessor's prior written consent, which consent
        shall not be unreasonably withheld. Any sublease rents in excess of the
        base rent reserved under this lease shall be divided 50% to Lessee and
        50% to Lessor.

               Lessor's consent to any proposed assignment or subletting may
        take into account the financial worth and stability and the business
        experience of any proposed transferee.

               A transfer of this Lease from Lessee to a) a corporation into
        which Lessee is merged or consolidated or acquiring all of the property
        of Lessee and assuming all of Lessee's liability and the net worth of
        said corporation is equal or more than the net worth of Lessee at the
        time of commencement of this Lease, or b) a subsidiary of Lessee in
        which Lessee owns greater than fifty percent (50%) of the shares of such
        subsidiary, shall not constitute an assignment or sublease for the
        purposes of this Lease and shall not require Lessor's consent hereunder,
        however, Lessee agrees to give Lessor prompt written notice of any such
        transfer.

               Except as specified hereinabove, any attempted assignment or
        subletting without Lessor's prior written consent shall be void and
        shall, at the option of the Lessor, terminate this Lease. Consent by
        Lessor to any assignment or subletting shall not release Lessee from its
        primary liability under the Lease and Lessor's consent to one
        assignment, subletting or occupation or use by other parties shall not
        be deemed a consent to other subleases or assignments or occupation or
        use by other parties.

                                       8
<PAGE>   10

               Lessee immediately and irrevocably assigns to Lessor, as security
        for Lessee's obligations under this Lease, all rent from any subletting
        of all or a part of the Premises as permitted by this lease, and Lessor,
        as assignee, shall be the attorney-in-fact for Lessee to collect such
        rent and apply it towards Lessee's obligations under this Lease; except
        that, until the occurrence of an act of default by Lessee, Lessee shall
        have the right to collect such rent.

SURRENDER
OF LEASE
               20. The voluntary or other surrender of this Lease by Lessee, or
a mutual cancellation thereof, shall not work a merger, and shall, at the option
of Lessor, terminate all or any existing subleases or subtenancies, or may, at
the option of Lessor, operate as an assignment to Lessor of any or all such
subleases or subtenancies.

DEFAULT
               21. The occurrence of any one or more of the following events in
                   addition to those provided elsewhere in this Lease shall
                   constitute a material default and breach of this Lease by
                   Lessee:

               (a) The vacating or abandonment of the Premises by Lessee,

               (b) The failure by Lessee to make any payment of rent or any
        other payment required to be made by Lessee hereunder, as and when due,
        where such failure shall continue for a period of five (5) working days
        after written notice thereof from Lessor to Lessee.

               (c) The failure by Lessee to observe or perform any of the
        covenants, conditions or provisions of this Lease to be observed or
        performed by Lessee, other than described in paragraph (b) above, where
        such failure shall continue for a period of thirty (30) days after
        written notice hereof from Lessor to Lessee; provided, however, that if
        the nature of Lessee's default is such that more than thirty (30) days
        are reasonably required for its cure, then Lessee shall not be deemed to
        be in default if Lessee commenced such cure within said twenty-day
        period and thereafter diligently pursues such cure to completion.

               (d) In the event of any breach of this Lease by Lessee, then
        Lessor, besides other rights and remedies it may have, shall have the
        immediate right of re-entry and may remove all persons and property from
        the Premises. If the Lessor's right of re-entry is exercised following
        abandonment of the Premises by the Lessee, then Lessor may consider any
        personal property belonging to Lessee and left on the Premises to also
        have been abandoned, in which case Lessor may dispose of all such
        personal property in any manner Lessor shall deem proper and is hereby
        relieved of all liability for doing so.

               (e) If Lessee breaches this Lease and abandons the Premises
        before the end of the Term, or if Lessee's right to possession is
        terminated by Lessor because of a breach of the Lease, then in either
        such case Lessor may recover from Lessee all damages suffered by Lessor
        as the result of Lessee's failure to perform its obligations hereunder,
        described in Civil Code Section 1951.2, including, but not restricted
        to, the worth at the time of the award (computed in accordance with
        paragraph (3) of subdivision (a) of Section l951.2 of the California
        Civil Code) of the amount by which the rent then unpaid hereunder for
        the balance of the Lease Term exceeds the amount of such rental loss for
        the same period which the Lessee proves could be reasonably avoided by
        Lessor, and in such case, Lessor, prior to the award, may relet the
        Premises for the purpose of mitigating damages suffered by Lessor
        because of Lessee's failure to perform its obligations hereunder;
        provided, however, that even though Lessee has abandoned the Premises
        following such breach, this Lease shall nevertheless continue in full
        force and effect for as long as the Lessor does not terminate Lessee's
        right of possession, and until such termination, Lessor may enforce all
        its rights and remedies under this Lease, including the right to recover
        the rent from Lessee as it becomes due hereunder.

INSOLVENCY
OR BANKRUPTCY

                                       9
<PAGE>   11

               22. Either (a) the appointment of a receiver to take possession
        of all of the assets of Lessee, or (b) a general assignment by Lessee
        for the benefit of creditors, or (c) any action taken or suffered by
        Lessee under any insolvency or bankruptcy act shall constitute a breach
        of this Lease by Lessee. Upon the happening of any such event, this
        Lease shall terminate immediately upon written notice of termination
        from Lessor to Lessee. Lessee shall not be deemed to be in default as a
        consequence of the filing of an involuntary bankruptcy petition, the
        appointment of a receiver, the attachment of any interest in the Lease
        or of Lessee's other assets or the exercise by any third party of any
        other remedy with respect to Lessee, Lessee's interest in the Lease, or
        Lessee's other assets, unless the petition, receiver, attachment or
        other remedy is not discharged within sixty (60) days.

ALTERATIONS
               23. Alterations shall not be made to the Premises without the
        prior written consent of Lessor which may not be unreasonably withheld
        or delayed. Lessee shall provide to Lessor any proposed alterations in
        writing and, upon approval by Lessor, said written description of
        alterations shall be attached to this Lease as an exhibit. In the event
        Lessee makes any alterations to the Premises as provided in this
        paragraph, said alterations shall not be commenced until ten (10) days
        after Lessor has received notice from Lessee stating the date the
        installation of the alterations is to commence so that Lessor can post
        and record an appropriate notice of non-responsibility.

               Any alterations made shall remain on and be surrendered with the
        Premises on expiration or earlier termination of the Term except that
        Lessor can elect at the time of approving such alterations to require
        Lessee to remove any alterations that Lessee has made to the Premises.
        If Lessor so elects, Lessee, at its sole cost and expense, shall restore
        the Premises to the condition and state it was in prior to said
        alterations. Lessee's movable furniture and trade fixtures shall not
        become part of the realty and shall not belong to Lessor in any event.

INDEMNIFICATION
OF LESSOR
               24. From and after the Commencement Date, Lessee shall indemnify,
        defend, protect and hold harmless Lessor from and against any and all
        claims arising from Lessee's use of the Premises or the conduct of its
        business or from any activity, work, or thing done, permitted or
        suffered by the Lessee in or about the Premises, and shall further
        indemnify and hold harmless Lessor against and from any and all claims
        arising from any breach of default in the performance of any obligation
        on Lessee's part to be performed under the terms of this Lease, or
        arising from any act, neglect, fault or omission of the Lessee, or of
        its agents or employees, and from and against all costs, attorneys'
        fees, expenses and liabilities incurred in, connected with, or about
        such claims, actions or proceedings brought as a result, except to the
        extent arising out of the negligence or willful misconduct of Lessor or
        Lessor's employees or agents or contractors. In case any action or
        proceeding be brought against Lessor by reason of such claim, Lessee,
        upon notice from Lessor, shall defend the same at Lessee's expense by
        counsel reasonably satisfactory to Lessor.

             The obligations of Lessee under this section arising by reason of
        any occurrence taking place during the term of this Lease shall survive
        the expiration on any termination of this Lease.

WAIVER OF CLAIMS
AND LIMITATION
OF LIABILITY
               25. (a) Lessee, as a material part of the consideration to be
        rendered to Lessor, hereby assumes all risk of damage to the Premises or
        injury to persons in or about the Premises and waives all claims against
        Lessor for damages to goods, wares and merchandise, in upon or about the
        Premises and for injury to Lessee, its agents, employees, invitees, or
        third persons on or about the Premises from any cause excepting causes
        arising by reason of the intentional acts or negligence of Lessor, its
        agents or employees.

                                       10
<PAGE>   12

               (b) If Lessor is in default of this Lease, and as a consequence,
        Lessee recovers a money judgment against Lessor, the judgment shall be
        satisfied only out of the proceeds of sale received on execution of the
        judgment and levy against the right, title and interest of Lessor in the
        Building of which the Demised Premises are a part, and out of rent or
        other income from such Building receivable by Lessor or out of the
        consideration received by Lessor from the sale or other disposition of
        all or any part of Lessor's right, title and interest in the Building.

               (c) Lessor shall not be personally liable for any deficiency, and
        if Lessor (or a successor Lessor against which action is brought) is a
        partnership or Limited Liability Company, the partners or members of
        Lessor shall not be sued or named as a party in any suit or action or
        service of process be made against any partner or member of Lessor
        except as may be necessary to secure jurisdiction of the partnership. No
        partner or member of Lessor shall be required to answer or otherwise
        plead to any service of process and no judgment will be taken or writ of
        execution levied against any partner or member of Lessor.

               (d) Nothing contained within this paragraph 25 shall permit
        Lessor to make distribution of its rentals or other cash proceeds to its
        partners of share holders (if any) at any date after Lessee's judgment
        has become final, no appeal being then pending and time for further
        appeal having passed unless and until the judgment owed to Lessee shall
        have been paid in full, and nothing herein shall prevent Lessee from
        taking such actions as may be permitted under law or in equity to
        recover any funds so disbursed by Lessor in violation of the provisions
        of this section.

WAIVER OF
TERMS
               26. The failure of Lessor to object to any breach of any term,
        covenant or condition by Lessee shall not be deemed to be a waiver of
        such term, covenant or condition. The subsequent acceptance of rent or
        other performance hereunder by Lessor shall not be deemed to be a waiver
        of any preceding breach by Lessee of any term, covenant or condition of
        this Lease, other than the failure of Lessee to pay the particular
        rental so accepted, regardless of Landlord's knowledge of such preceding
        breach at the time of acceptance of such rent.

HOLDING OVER
               27. If Lessee should remain in possession of the Premises after
        the expiration of the Lease term and without executing a new lease, then
        such holding over shall be construed as a tenancy from month to month,
        subject to all the conditions, provisions and obligations of this Lease
        insofar as the same are applicable to a month-to-month tenancy, except
        that the minimum monthly rent payable by Lessee to Lessor shall be 125%
        of the minimum monthly rent during the last year of the Lease Term.

ESTOPPEL
CERTIFICATE
               28. (a) Lessee shall, within ten (10) days after written notice
        from Lessor, execute, acknowledge and deliver to Lessor a statement in
        writing (i) certifying that this Lease is unmodified and in full force
        and effect (or, if modified, stating the nature of such modification and
        certifying that this Lease, as so modified, is in full force and effect)
        and the date to which the rent and other charges are paid in advance, if
        any, and (ii) acknowledging that there are not, to Lessee's knowledge,
        any uncured defaults on the part of the Lessor hereunder, or specifying
        such defaults if any are claimed. Any such statement may be conclusively
        relied upon by any prospective purchaser or encumbrancer of the
        Premises.

                   (b) Lessee's failure to deliver such statement within such
        time shall be conclusive upon Lessee (i) that this Lease is in full
        force and effect, without modification, except as may be represented by
        Lessor, (ii) that there are no uncured defaults in Lessor's performance,
        and (iii) that not more than one month's rent has been paid in advance
        or at Lessor's option be considered by Lessor as a default by Lessee
        under this Lease.

                   (c) If Lessor desires to finance or refinance the Premises,
        or any part thereof, Lessee hereby agrees to deliver to any lender
        designated by Lessor such financial statements of Lessee as may be
        reasonably

                                       11
<PAGE>   13

        required by such lender. Such statements shall include the past three
        (3) years' financial statements of Lessee. All such financial statements
        shall be received in confidence and shall be used only for the purposes
        herein set forth.

TRANSFER OF
LESSOR'S
INTEREST
               29. In the event of a sale or conveyance by Lessor of Lessor's
        interest in the Premises, other than a transfer for security purposes
        only, Lessor shall be relieved from and after the date specified in any
        such notice of transfer of all obligations and liabilities accruing
        thereafter on the part of Lessor. The Lessee's right of occupancy under
        this Lease shall not be affected by any such sale, and Lessee agrees to
        attorn to the purchaser or assignee.

CONDEMNATION
               30. If any part of the Premises shall be taken or condemned for a
        public or quasi-public use, and a part thereof remains which is
        susceptible of occupation hereunder, this Lease shall, as to the part so
        taken, terminate as of the date title shall vest in the condemnor, and
        the rent payable hereunder shall be adjusted for the remainder of the
        Term in proportion to the number of square feet remaining after the
        condemnation to the number of square feet in the entire Premises at the
        date of condemnation. In any event, Lessor shall also have the option to
        terminate this Lease as of the date when title to the part so condemned
        vests in the condemnor. If a part or all of the Premises be taken or
        condemned, all compensation awarded upon such condemnation or taking
        shall go to the Lessor and the Lessee shall have no claim thereto, and
        the Lessee hereby irrevocably assigns and transfers to the Lessor any
        right to compensation or damages to which the Lessee may be entitled
        during the term hereof by reason of the condemnation of all, or part of
        the Premises.

               Each party waives the provisions of 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
        for public use.

SUBORDINATION
               31. This Lease, at Lessor's option, shall be subordinate to any
        ground lease, mortgage, deed of trust, or any other hypothecation for
        security now or hereafter placed upon the real property of which the
        Premises are a part and to any and all advances made on the security
        thereof and to all renewals, modifications, consolidations, replacements
        and extensions thereof. If any mortgagee, trustee or ground lessor shall
        elect to have this Lease prior to the lien of its mortgage, deed of
        trust, or ground lease, and shall give written notice thereof to Lessee,
        this Lease shall be deemed prior to such mortgage, deed of trust, or
        ground lease, whether this Lease is dated prior or subsequent to the
        date of said mortgage, deed of trust or ground lease or the date of
        recording thereof. Notwithstanding the above, Lessees' Lease shall
        remain undisturbed.

SECURITY
               32. Lessor shall have no obligation to provide policing or
        security to the common areas, Premises or the Building of which the
        Premises are a part. Lessor shall not be responsible for loss or damage
        to person or property for damages sustained by Lessee, its employees or
        business invitees. Lessee shall provide security protection within said
        Premises, at Lessee's option and at Lessee's sole expense but not
        without first providing written notice to Lessor.

ATTORNEYS'
FEES
               33. In the event of any legal action or proceeding between the
        parties hereto, reasonable attorneys' fees and expenses in any such
        action or proceeding shall be awarded to the prevailing party. Should
        Lessor be named as a defendant in any suit brought against Lessee in
        connection with or arising out of Lessee's

                                       12
<PAGE>   14

        occupancy hereunder, Lessee shall pay to Lessor Lessor's costs and
        expenses incurred in such suit, including reasonable attorneys' fees.

NOTICES
               34. Any notices or demands to be given hereunder shall be given
        to Lessor at 650 Fifth Street, Suite 303, San Francisco, CA 94107 and to
        Lessee at 331 Jefferson Street, Oakland California 94607. All notices or
        demands of any kind required or desired to be given by Lessor to Lessee
        hereunder shall be in writing and shall be deemed delivered forty-eight
        (48) hours after depositing the notice or demand in the United States
        mail, certified or registered, postage prepaid, or in the alternative,
        an express mail service which provides overnight delivery and a receipt
        of delivery, addressed to the Lessor or Lessee, respectively, at the
        addresses set forth in this paragraph.

LIENS
               35. Lessee shall keep the Premises and the property in which the
        Premises are situated, free from any liens arising out of any work
        performed, materials furnished, or obligations incurred by Lessee.
        Lessee shall give ten (10) days written notice to Lessor before
        commencing any alterations, repairs, or other work, or taking any other
        action, which might give rise to any lien against the Premises or
        property in which the Premises are situated, so as to give Lessor an
        opportunity to post and record an appropriate notice of
        non-responsibility.

RECORDATION
               36. Lessee shall not record this Lease or short form memorandum
        hereof without the prior written consent of Lessor.

RULES AND
REGULATIONS
               37. Lessee shall faithfully observe and comply with any Rules and
        Regulations that Lessor shall from time to time promulgate. Lessor
        reserves the right from time to time to make all reasonable
        modifications to said rules. The additions and modifications to those
        rules shall be binding upon Lessee upon delivery of a copy of them to
        Lessee. Lessor shall not be responsible to Lessee for the nonperformance
        of any said rules by any other tenants or occupants.

QUIET
ENJOYMENT
               38. Lessor covenants and agrees with Lessee that upon Lessee
        paying rent and other monetary sums due under the Lease, performing its
        covenants and conditions under the Lease, Lessee shall and may peaceably
        and quietly have, hold and enjoy the Premises for the Term, subject,
        however, to the terms of the Lease and any of the aforesaid ground
        leases, mortgages, or deed of trust described above. Lessor will not be
        financially responsible for any damage caused to Premises by other
        Building tenants.

PARKING
               39. Lessor shall provide Lessee with up to ten tandem parking
        spaces on a month to month basis on property leased by Lessor off
        premises. The charge per parking space is $90.00 per month. Lessor
        reserves the right to increase the parking charge after the first year
        to the then current building rate which shall be consistent with parking
        rates being charged in downtown Oakland. The parking charge will not
        increase more than once during a lease year.

CORPORATE
AUTHORITY AND
FINANCIAL
               40. The Corporate Officer executing this Lease acknowledges he
        has the authority to bind the Corporation under this Lease.

               Lessee agrees to provide Lessor with the current Corporate
        Financial Statements and personal financial statements of Lessee upon
        request by Lessor.

                                       13
<PAGE>   15

GENERAL
PROVISIONS
                41. (a) Whenever the singular number is used in this Lease and
        when required by the context, the same shall include the plural, and the
        masculine gender shall include the feminine and neuter genders, and word
        "person" shall include corporation, firm or association. If there be
        more than one Lessee, the obligations imposed upon Lessee under this
        Lease shall be joint and several.

                    (b) The headings or titles to paragraphs of this Lease are
        not part of this Lease and shall have no effect upon the construction or
        interpretation of any part of this Lease.

                    (c) This instrument contains all of the agreements and
        conditions made between the parties of this Lease and may not be
        modified orally or in any other manner than by agreement in writing
        signed by all parties to this Lease.

                    (d) Time is of the essence of each term and provision of
        this Lease.

                    (e) Except as otherwise expressly stated, each payment
        required to be made by Lessee shall be in addition to and not in
        substitution for other payments to be made by Lessee.

                    (f) The terms and provisions of this Lease shall be binding
        upon and inure to the benefit of the heirs, executors, administrators,
        successors and permitted assigns of Lessor and Lessee under this Lease.

                    (g) All covenants and agreements to be performed by Lessee
        under any of the terms of this Lease shall be performed by Lessee at
        Lessee's sole cost and expense and without any abatement of rent.

                    (h) The rights, powers, elections and remedies of the Lessor
        contained in this Lease shall be construed as cumulative and none of
        them is or shall be considered exclusive and none of them is or shall be
        considered exclusive of any rights or remedies allowed by law, and the
        exercise of one or more rights, powers, elections or remedies shall not
        impair Lessor's right to exercise any other.

                    (i) All sums required to be paid by Tenant under this Lease
        shall bear interest from the date due until paid at the greater of ten
        percent (10%) or the maximum rate an individual is permitted by law to
        charge.

                    (j) If any term, covenant, condition or provision of this
        Lease is held by a court of competent jurisdiction to be invalid, void
        or unenforceable, the remainder of the provisions shall remain in full
        force and effect and shall in no way be affected, impaired or
        invalidated.

                    (k) Lessee acknowledges that it has had no contact or
        dealings regarding this Lease with any licensed real estate broker or
        other party who can claim a right to a commission or fee (other than
        Terranomics Development representing Lessor and Cornish and Carey
        representing Lessee), and Lessee agrees to indemnify, defend and hold
        harmless Lessor from any cost, loss or expense, including attorneys'
        fees and court costs, resulting from any claim for a fee or commission
        from a broker claiming to represent Lessee other than Cornish and Carey.

                    (l) As used herein, rent shall mean all payments made
        pursuant to this Lease, including, but not limited to, minimum monthly
        rent, prepaid rent, security deposit, real property taxes and
        assessments, common area charges, operating costs, parking fees,
        insurance, utilities and all other charges payable by Lessee to Lessor.

               IN WITNESS WHEREOF, the parties set their signatures hereto as of
        the date stated hereinbelow.

                                       14
<PAGE>   16

        LESSOR:                                    LESSEE:

        TERRADEV JEFFERSON LLC                     CHOLESTECH CORPORATION
        by TERRANOMICS, its Manager                dba WellCheck.com

        by /s/ Peter Morse                       by  /s/ Warren E. Pinckert II
          ------------------------------           -----------------------------
           Peter Morse, Vice President

                                       15

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