Document:

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                           MEMORANDUM OF UNDERSTANDING
                      BETWEEN WATERSOUNDS AND IPRINT, INC.
            RE: SUBLEASE OF 1496 ODDSTAD DR., REDWOOD CITY, CA 94063

iPrint inc hereby agrees to sublease approximately 580 square feet of office
space from Water Sounds under the following terms:

LOCATION:  1496 Oddstad Dr., Redwood City, CA  94063
TERM:  Month to month, commencing 08/09/99
SPACE:  580 sq ft.
SUBLEASE PAYMENTS: $1.00/sq ft per month plus $120/month to cover escalation and
other operating expenses, due by the 5th of each rental month. (Water Sounds
will pay the first $200 a month for PG&E; iPrint will pay any amounts in excess
of $200 upon delivery of a proper invoice.)

DEPOSIT- one month base rent ($580), fully refundable within 15 days of
termination.

MONTHLY PAYMENT- $700

This includes the following expenses,
     -   Property Taxes
     -   Fire Insurance (structural only)
     -   Utilities
     -   Base rent per sq. ft.
     -   all other pro-rata share expenses

IN ADDITION,

         iPrint agrees that this agreement may not be assigned without the
         written consent of Water Sounds.

         Either party may terminate this agreement upon 30 days written notice
         for cause. Such cause must be identified in writing and resolved within
         15 days of said written notice.

         Either Party may terminate this contract for convenience with 60 days
         notice.

         Sublessor will abide by the following conditions described in the
         Attachment A. Sections- 6.2, 6.3, 7.1, 7.2, 7.3, 8, 8.1, 8.2, 8.3, 8.5,
         8.6, 8.7, 9.1-9.8, 10.2-10.5, 11, 12-12.4, 13-13.5, 14, 16-39,
         39.2-39.4, 40-46, Addendum #51.

/s/ Gregory Korjeff         8/6/99          /s/ Mary Lou Maloe        8/6/99
_____________________________________       __________________________________
     iPrint, inc.           Date             Water Sounds             Date

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                       STANDARD INDUSTRIAL LEASE -- GROSS
                   AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION

1. LEASES. This Lease, dated, for reference purposes only, July 18, 1996, is
made by and between Hansen Management (herein called "Lessor") and Water Sounds
(herein called "Lessee").

2. PREMISES. Lessor hereby leases to Lessee and Lessee leases from Lessor for
the term, at the rental, and upon all of the conditions set forth herein, that
certain real property situated in the County of San Mateo, State of California,
commonly known as 1496 Oddstad Drive, Redwood City, described as approximately
1,300 square feet of office and warehouse space, and real property including the
land and all improvements therein, is herein called "the Premises."

3. TERM.

         3.1 TERM. The term of this Lease shall be for two (2) years commencing
on August 1, 1996 and ending on July 31, 1998 unless sooner terminated pursuant
to any provision hereof.

         3.2 DELAY IN POSSESSION. Notwithstanding said commencement date, if for
any reason Lessor cannot deliver possession of the Premises to Lessee on said
date, Lessor shall not be subject to any liability therefor, nor shall such
failure affect the validity of this Lease or the obligations of Lessee hereunder
or extend the term hereof, but in such case, Lessee shall not be obligated to
pay rent until possession of the Premises is tendered by Lessee, provided,
however, that if Lessor shall not have delivered possession of the Premises
within sixty (60) days from said commencement date, Lessee may, at Lessee's
option, by notice in writing to Lessor within ten (10) days thereafter, cancel
this Lease, in which event the parties shall be discharged from all obligations
hereunder, provided further, however, that if such written notice of Lessee is
not received by Lessor within said ten (10) day period, Lessee's right to cancel
this Lease hereunder shall terminate and be of no further force or effect.

         3.3 EARLY POSSESSION. If Lessee occupies the Premises prior to said
commencement date, such occupancy shall be subject to all provisions hereof,
such occupancy shall not advance the termination date, and Lessee shall pay rent
for such period at the initial monthly rates set forth below.

4. RENT. Lessee shall pay to Lessor as rent for the Premises, monthly payments
of:

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Rent for any period during the term hereof which is for less than one month
shall be a pro rata portion of the monthly installment. Rent shall be payable in
lawful money of the United States to Lessor at the address stated herein or to
such other persons or at such other places as Lessor may designate in writing.

5. SECURITY DEPOSIT. Lessee shall deposit with Lessor upon execution hereof
$800.00 as security for Lessee's faithful performance of Lessee's obligations
hereunder. If Lessee fails to

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pay rent or other charges due hereunder, or otherwise defaults with respect
to any provision of this Lease, Lessor may use, apply or retain all or any
portion of said deposit for the payment of any rent or other charge in
default or for payment of any other sum to which Lessor may become obligated
by reason of Lessee's default, or to compensate Lessor for any loss or damage
which Lessor may suffer thereby. If Lessor so uses or applies all or any
portion of said default, Lessee shall within ten (10) days after written
demand therefor deposit cash with Lessor in an amount sufficient to restore
said deposit to the full amount hereinabove stated and Lessee's failure to do
so shall be a material breach of this Lease. If the monthly rent shall, from
time to time, increase during the term of this Lease, Lessee shall thereupon
deposit with Lessor additional security deposit so that the amount of
security deposit held by Lessor shall at all times bear the same proportion
to current rent as the original security deposit bears to the original
monthly rent set forth in paragraph 4 hereof. Lessor shall not be required to
keep said deposit separate from its general accounts. If Lessee performs all
of Lessee's obligations hereunder, said deposit, or so much thereof as has
not theretofore been applied by Lessor, shall be returned, without payment of
interest or other increment for its use, to Lessee (or, at Lessor's option,
to the last assignee, if any, of Lessee's interest hereunder) at the
expiration of the term hereof, and after Lessee has vacated the premises. No
trust relationship is created herein between Lessor and Lessee with respect
to said Security Deposit.

6.       USE.

         6.1 USE. The Premises shall be used and occupied only for ASSEMBLY +
STORAGE INDOOR WATER FOUNTAINS + CLASSROOM or any other use which is reasonably
comparable and for no other purpose.

         6.2 COMPLIANCE WITH LAW.

             (a) Lessor warrants to Lessee that the Premises, in its state
existing on the date that the Lease term commences, but without regard to the
use for which Lessee will use the Premises, does not violate any covenants or
restrictions of record, or any applicable building code, regulation or ordinance
in effect on such Lease term commencement date. In the event it is determined
that this warranty has been violated, than it shall be the obligation of the
Lessor, after written notice of the violation of this warranty within six months
from the date that the Lease term commences, the correction of same shall be the
obligation of the Lessee at Lessee's sole cost. The warranty contained in this
paragraph 6.2(a) shall be of no force or effect if, prior to the date of this
Lease, Lessee was the owner or occupant of the Premises, and, in such event,
Lessee shall correct any such violation at Lessee's sole cost.

            (b) Except as provided in paragraph 6.2(a), Lessee shall, at
Lessee's expense, comply promptly with all applicable statutes, ordinances,
rules, regulations, orders, covenants and restrictions of record, and
requirements in effect during the term or any part of the term hereof,
regulating the use by Lessee of the Premises. Lessee shall not use nor permit
the use of the Premises in any manner that will tend to create waste or a
nuisance or, if there shall be more than one tenant in the building containing
the Premises, shall tend to disturb such other tenants.

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         6.3 CONDITION OF PREMISES. (REFERENCE PARA 6.2)

             (a) Lessor shall deliver the Premises to Lessee clean and free
of debris on Lease commencement date (unless Lessee is already in possession)
and Lessor further warrants to Lessee that the plumbing, lighting, air
conditioning, heating, and loading doors in the Premises shall be ___.

             (b) Except as otherwise provided in this Lease, Lessee hereby
accepts the Premises in their condition existing as of the Lease commencement
date or the date that Lessee takes possession of the Premises, whichever is
earlier, subject to all applicable zoning, municipal, county and state laws,
ordinances and regulations governing and regulating the use of the Premises, and
any covenants or restrictions of record, and accepts this Lease subject thereto
and to all matters disclosed thereby and by any exhibits attached herein. Lessee
acknowledges that neither Lessor nor Lessor's agent has made any representation
or warranty as to the present or future suitability of the Premises for the
conduct of Lessee's business.

7.     MAINTENANCE, REPAIRS AND ALTERATIONS.

       7.1 LESSOR'S OBLIGATIONS. Subject to the provisions of Paragraphs 6,
7.2 and 9 and except for damage caused by any negligent or intentional act or
ommission of Lessee, Lessee's agents, employees, or invitees in which event
Lessee shall repair the damage. Lessor, at Lessor's expense, shall keep in good
order, condition and repair the foundations, exterior walls and the exterior
roof of the Premises. Lessor shall not, however, be obligated to paint such
exterior, nor shall Lessor be required to maintain the interior surface of
exterior walls, windows, doors or plate glass. Lessor shall have no obligation
to make repairs under this Paragraph 7.1 until a reasonable time after receipt
of written notice of the need for such repairs.

7.2    LESSEE'S OBLIGATIONS.

       (a) Subject to the provisions of Paragraphs 6, 7.1 and 9, Lessee, at
Lessee's expense, shall keep in good order, condition and repair the Premises
and every part thereof (whether or not the damaged portion of the Premises or
the means of repairing the same are reasonably or readily accessible to
Lessee) including, without limiting the generality of the foregoing, all
plumbing, heating, air conditioning. (Lessee shall procure and maintain, at
Lessee's expense, an air conditioning system maintenance contract)
ventilating, electrical and lighting facilities and equipment within the
Premises, fixtures, interior walls and interior surface of exterior walls,
ceilings, windows, doors, plate glass, and skylights, located within the
Premises, and        .

       (b) If Lessee fails to perform Lessee's obligations under this
Paragraph 7.2 or under any other paragraph of this Lease, Lessor may at Lessor's
option enter upon the Premises after 10 days' prior written notice to Lessee
(except in the case of emergency, in which case no notice shall be required),
perform such obligations on Lessee's behalf and put the Premises in

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good order, condition and repair, and the cost thereof together with interest
thereon at the maximum rate then allowable by law shall be due and payable as
additional rent to Lessor together with Lessee's next rental installment.

       (c) On the last day of the term hereof, or on any sooner termination,
Lessee shall surrender the Premises to Lessor in the same condition as
received, ordinary wear and tear excepted, clean and free of debris. Lessee
shall repair any damage to the Premises occasioned by the installation or
removal of its trade fixtures, furnishings and equipment. Notwithstanding
anything to the contrary otherwise stated in this Lease, Lessee shall leave
the air lines, power panels, electrical distribution systems, lighting
fixtures, space heaters, air conditioning, plumbing and fencing on the
premises in good operating condition.

    7.3 ALTERATIONS AND ADDITIONS.

        (a) Lessee shall not, without Lessor's prior written consent
make any alterations, improvements, additions, or Utility Installations in, on
or about the Premises, except for nonstructural alterations not exceeding $2,500
in cumulative costs during the term of this Lease. In any event, whether or not
in excess of $2,500 in cumulative cost, Lessee shall make no change or
alteration to the exterior of the Premises nor the exterior of the building(s)
on the Premises without Lessor's prior written consent. As used in this
Paragraph 7.3 the term "Utility Installation" shall mean carpeting, window
coverings, air lines, power panels, electrical distribution systems, lighting
fixtures, space heaters, air conditioning, plumbing, and fencing. Lessor may
require that Lessee remove any or all of said alterations, improvements,
additions or Utility Installations at the expiration of the term, and restore
the Premises to their prior condition. Lessor may require Lessee to provide
Lessor, at Lessee's sole cost and expense, a lien and completion bond in an
amount equal to one and one-half times the estimated cost of such improvements,
to insure Lessor against any liability for mechanic's and materialmen's liens
and to insure completion of the work. Should Lessee make any alterations,
improvements, additions or Utility Installations without the prior approval of
Lessor, Lessor may require that Lessee remove any or all of the same.

        (b) Any alterations, improvements, additions or Utility
Installations in, or about the Premises that Lessee shall desire to make and
which requires the consent of the Lessor shall be presented to Lessor in written
form, with proposed detailed plans. If Lessor shall give its consent, the
consent shall be deemed conditioned upon Lessee acquiring a permit to do so from
appropriate governmental agencies, the furnishing of a copy thereof to Lessor
prior to the commencement of the work and the compliance by Lessee of all
conditions of said permit in a prompt and expeditious manner.

        (c) Lessee shall pay, when due, all claims for labor or materials
furnished or alleged to have been furnished to or for Lessee at or for use in
the Premises, which claims are or may be secured by any mechanics' or
materialmen's lien against the Premises or any interest therein. Lessee shall
give Lessor not less than ten (10) days' notice prior to the commencement of
any work in the Premises, and Lessor shall have the right to post notices of
non-responsibility in or on the Premises as provided by law. If Lessee shall,
in good faith, contest the validity of any such lien, claim or demand, then
Lessee shall, at its sole expense defend itself and Lessor against the same
and shall pay and satisfy any such adverse judgment that may be rendered

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thereon before the enforcement thereof against the Lessor or the Premises,
upon the condition that if Lessor shall require, Lessee shall furnish to
Lessor a surety bond satisfactory to Lessor in an amount equal to such
contested lien claim or demand indemnifying Lessor against liability for the
same and holding the Premises free from the effect of such lien or claim. In
addition, Lessor may require Lessee to pay Lessor's attorneys fees and costs
in participating in such action if Lessor shall decide it is to its best
interest to do so.

        (d) Unless Lessor requires their removal, as set forth in Paragraph
7.3(a), all alterations, improvements, additions and Utility Installations
(whether or not such Utility Installations constitute trade fixtures of
Lessee), which may be made on the Premises, shall become the property of
Lessor and remain upon and be surrendered with the Premises at the expiration
of the term. Notwithstanding the provisions of this Paragraph 7.3(d),
Lessee's machinery and equipment, other than that which is affixed to the
Premises so that it cannot be removed without material damage to the
Premises, shall remain the property of Lessee and may be removed by Lessee
subject to the provisions of Paragraph 7.2(c). (EXCLUDE: TRAC LIGHTING ...
WILL RETURN ORIGINAL FIXTURES)

8.      INSURANCE; INDEMNITY.

        8.1 LIABILITY INSURANCE - LESSEE. Lessee shall, at Lessee's expense,
obtain and keep in force during the term of this Lease a policy of Combined
Single Limit Bodily Injury and Property Damage Insurance insuring Lessee and
Lessor against any liability arising out of the use, occupancy or maintenance of
the Premises and all other areas appurtenant thereto. Such insurance shall be in
an amount not less than $500,000 per occurrence. The policy shall insure
performance by Lessee of the indemnity provisions of this Paragraph 8. The
limits of said insurance shall not, however, limit the liability of Lessee
hereunder.

        8.2 LIABILITY INSURANCE - LESSOR. Lessor shall obtain and keep in force
during the term of this Lease a policy of Combined Single Limit Bodily Injury
and Property Damage Insurance, insuring Lessor, but not Lessee, against any
liability arising out of the ownership, use, occupancy or maintenance of the
Premises and all areas appurtenant thereto in an amount not less than $500,000
per occurrence.

        8.3 PROPERTY INSURANCE. Lessor shall obtain and keep in force during
the term of this Lease a policy or policies of insurance covering loss or
damage to the Premises, but not Lessee's fixtures, equipment or tenant
improvements in an amount not to exceed the full replacement value thereof,
as the same may exist from time to time, providing protection against all
perils included within the classification of fire, extended coverage,
vandalism, malicious mischief, flood (in the event same is required by a
lender having a lien on the Premises) special extended perils ("all risk," as
such term is used in the insurance industry) but not plate glass insurance.
In addition, the Lessor shall obtain and keep in force, during the term of
this Lease, a policy of rental value insurance covering a period of one year,
with loss payable to Lessor, which insurance shall also cover all real estate
taxes and insurance costs for said period.

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         8.4 PAYMENT OF PREMIUM INCREASE.

         8.5 INSURANCE POLICIES. Insurance required hereunder shall be in
companies holding a "General Policyholders Rating" of at least B plus, or such
other rating as may be required by a lender having a lien on the Premises, as
set forth in the most current issue of "Best's Insurance Guide." Lessee shall
deliver to Lessor copies of policies of liability insurance required under
Paragraph 8.1 or certificates evidencing the existence and amounts of such
insurance. No such policy shall be cancellable or subject to reduction of
coverage or other modification except after thirty (30) days' prior written
notice to Lessor. Lessor shall, at least thirty (30) days prior to the
expiration of such policies, furnish Lessor with renewals or "binders" thereof,
or Lessor may order such insurance and charge the cost thereof to Lessee, which
amount shall be payable by Lessee upon demand. Lessee shall not do or permit to
be done anything which shall invalidate the insurance policies referred to in
Paragraph 8.3.

         8.6 WAIVER OF SUBROGATION. Lessee and Lessor each hereby release and
relieve the other, and waive their entire right of recovery against the other
for loss or damage arising out of or incident to the perils insured against
under paragraph 8.3, which perils occur in, on or about the Premises, whether
due to the negligence of Lessor or Lessee or their agents, employees,

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contractors and/or invitees. Lessee and Lessor shall, upon obtaining the
policies of insurance required hereunder, give notice to the insurance carrier
or carriers that the foregoing mutual waiver of subrogation is contained in this
Lease.

         8.7 INDEMNITY. Lessee shall indemnify and hold harmless Lessor from and
against any and all claims arising from Lessee's use of the Premises, or from
the conduct of Lessee's business or from any activity, work or things done,
permitted or suffered by Lessee in or about the Premises or elsewhere and shall
further indemnify and hold harmless Lessor from and against any and all claims
arising from any breach or default in the performance of any obligation on
Lessee's part to be performed under the terms of this Lease, or arising from any
negligence of the Lessee, or any of Lessee's agents, contractors, or employees,
and from and against all costs, attorney's fees, expenses and liabilities
incurred in the defense of any such claim or any action or proceeding brought
thereon; and in case any action proceeding be brought against Lessor by reason
of any such claim, Lessee upon notice from Lessor shall defend the same at
Lessee's expense by counsel satisfactory to Lessor. Lessee, as a material part
of the consideration to Lessor, hereby assumes all risk of damage to property or
injury to persons, in, upon or about the Premises arising from any cause and
Lessee hereby waives all claims in respect thereof against Lessor.

9.     DAMAGE OR DESTRUCTION.

       9.1 DEFINITIONS.

           (a) "Premises Partial Damage" shall herein mean damage or
destruction to the Premises to the extent that the cost of repair is less than
50% of the fair market value of the Premises immediately prior to such damage or
destruction. "Premises Building Partial Damage" shall herein mean damage or
destruction to the building of which the Premises are a part to the extent that
the cost of repair is less than 50% of the fair market value of such building as
a whole immediately prior to such damage or destruction.

           (b) "Premises Total Destruction" shall herein mean damage or
destruction to the Premises to the extent that the cost of repair is 50% or more
of the fair market value of the Premises immediately prior to such damage or
destruction. "Premises Building Total

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Destruction" shall herein mean damage or destruction to the building of which
the Premises are a part to the extent that the cost of repair is 50% or more
of the fair market value of the such building as a whole immediately prior to
such damage or destruction.

           (c) "Insured Loss" shall herein mean damage or destruction which
was caused by an event required to be covered by the insurance described in
paragraph 8.

     9.2   PARTIAL DAMAGE - INSURED LOSS. Subject to the provisions of
paragraphs 9.4, 9.5 and 9.6, if at any time during the term of this Lease there
is damage which is an Insured Loss and which falls into the classification of
Premises Partial Damage or Premises Building Partial Damage, then Lessor shall,
at Lessor's sole cost, repair such damage, but not Lessee's fixtures, equipment
or tenant improvements, as soon as reasonably possible and this Lease shall
continue in full force and effect.

     9.3   PARTIAL DAMAGE - UNINSURED LOSS. Subject to the provisions of
paragraphs 9.4, 9.5 and 9.6, if at any time during the term of this Lease there
is damage which is not an Insured Loss and which falls within the classification
of Premises Partial Damage or Premises Building Partial Damage, unless caused by
a negligent or willful act of Lessee (in which event Lessee shall make the
repairs at Lessee's expense), Lessor may at Lessor's option either (i) repair
such damage as soon as reasonably possible at Lessor's expense, in which event
this Lease shall continue in full force and effect, or (ii) give written notice
to Lessee within thirty (30) days after the date of the occurrence of such
damage of Lessor's intention to cancel and terminate this Lease, as of the date
of the occurrence of such damage. In the event Lessor elects to give such notice
of Lessor's intention to cancel and terminate this Lease, Lessee shall have the
right within ten (10) days after the receipt of such notice to give written
notice to Lessor of Lessee's intention to repair such damage at Lessee's
expense, without reimbursement from Lessor, in which event this Lease shall
continue in full force and effect, and Lessee shall proceed to make such repairs
as soon as reasonably possible. If Lessee does not give such notice within such
10-day period this Lease shall be cancelled and terminated as of the date of the
occurrence of such damage.

     9.4   TOTAL DESTRUCTION. If at any time during the term of this Lease
there is damage, whether or not an Insured Loss (including destruction required
by any authorized public authority), which falls into the classification of
Premises Total Destruction or Premises Building Total Destruction, this Lease
shall automatically terminate as of the date of such total destruction.

     9.5   DAMAGE NEAR END OF TERM.

           (a) If at any time during the last six months of the term of
this Lease there is damage, whether or not an Insured Loss, which falls within
the classification of Premises Partial Damage, Lessor may at Lessor's option
cancel and terminate this Lease as of the date of occurrence of such damage by
giving written notice to Lessee of Lessor's election to do so within 30 days
after the date of occurrence of such damage.

           (b) Notwithstanding paragraph 9.5(a), in the event that Lessee
has an option to extend or renew this Lease, and the time within which said
option may be exercised has not yet expired, Lessee shall exercise such option,
if it is to be exercised at all, no later than 20 days

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after the occurrence of an Insured Loss falling within the classification of
Premises Partial Damage during the last six months of the term of this Lease.
If Lessee duly exercises such option during said 20-day period, Lessor shall,
at Lessor's expense, repair such damage as soon as reasonably possible and
this Lease shall continue in full force and effect. If Lessee fails to
exercise such option during said 20-day period, then Lessor may at Lessor's
option terminate and cancel this Lease as of the expiration of said 20-day
period by giving written notice to Lessee of Lessor's election to do so
within 10 days after the expiration of said 20-day period, notwithstanding
any term or provision in the grant of option to the contrary.

    9.6  ABATEMENT OF RENT; LESSEE'S REMEDIES.

         (a) In the event of damage described in paragraphs 9.2 or 9.3,
and Lessor or Lessee repairs or restores the Premises pursuant to the provisions
of this Paragraph 9, the rent payable hereunder for the period during which such
damage, repair or restoration continues shall be abated in proportion to the
degree to which Lessee's use of the Premises is impaired. Except for abatement
of rent, if any, Lessee shall have no claim against Lessor for any damage
suffered by reason of any such damage, destruction, repair or restoration.

        (b) If Lessor shall be obligated to repair or restore the
Premises under the provisions of this Paragraph 9 and shall not commence such
repair or restoration within 90 days after such obligations shall accrue, Lessee
may at Lessee's option cancel and terminate this Lease by giving Lessor written
notice of Lessee's election to do so at any time prior to the commencement of
such repair or restoration in such event this Lease shall terminate as of the
date of such notice.

    9.7 TERMINATION - ADVANCE PAYMENTS. Upon termination of this Lease
pursuant to this Paragraph 9, an equitable adjustment shall be made
concerning advance rent and any advance payments made by Lessee to Lessor.
Lessor shall, in addition, return to Lessee so much of Lessee's security
deposit as has not theretofore been applied by Lessor.

    9.8 WAIVER. Lessor and Lessee waive the provisions of any statutes which
relate to termination of leases when leased property is destroyed and agree
that such event shall be governed by the terms of this Lease.

10. REAL PROPERTY TAXES.

    10.2 ADDITIONAL IMPROVEMENTS. Notwithstanding paragraph 10.1 hereof,
Lessee shall pay to Lessor upon demand therefor the entirety of any increase
in real property tax if assessed

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solely by reason of additional improvements placed upon the Premises by
Lessee or at Lessee's request.

         10.3 DEFINITION OF "REAL PROPERTY TAX." As used herein, the term "real
property tax" shall include any form of real estate tax or assessment, general,
special, ordinary or extraordinary, and any license fee, commercial rental tax,
improvement bond or bonds, levy or tax (other than inheritance, personal income
or estate taxes) imposed on the Premises by any authority having the direct or
indirect power to tax, including any city, state or federal government, or any
school, agricultural, sanitary, fire, street, drainage or other improvement
district thereof, as against any legal or equitable interest of Lessor in the
Premises or in the real property of which the Premises are a part, as against
Lessor's right to rent or other income therefrom, and as against Lessor's
business of Leasing the Premises. The term "real property tax" also include any
tax, fee, levy, assessment or charge (i) in substitution of, partially or
totally, any tax, fee, levy, assessment or charge hereinabove included within
the definition of "real property tax," or (ii) the nature of which was
hereinbefore included within the definition of "real property tax," or (iii)
which is imposed for a service or right not charged prior to June 1, 1978, or,
if previously charged, has been increased since June 1, 1978, or (iv) which is
imposed as a result of a transfer, either partial or total, of Lessor's interest
in the Premises or which is added to a tax or charge hereinbefore included
within the definition of real property tax by reason of such transfer, or (v)
which is imposed by reason of this transaction, any modifications or changes
hereto, or any transfers hereof.

         10.4 JOINT ASSESSMENT. If the Premises are not separately assessed,
Lessee's liability shall be an equitable proportion of the real property taxes
for all of the land and improvements included within the tax parcel assessed,
such proportion to be determined by Lessor from the respective valuations
assigned in the assessor's work sheets or such other information as may be
reasonably available. Lessor's reasonable determination thereof, in good faith,
shall be conclusive.

         10.5 PERSONAL PROPERTY TAXES.

              (a) Lessee shall pay prior to delinquency all taxes assessed
against and levied upon trade fixtures, furnishings, equipment and all other
personal property of Lessee contained in the Premises or elsewhere. When
possible, Lessee shall cause said trade fixtures, furnishings, equipment and all
other personal property to be assessed and billed separately from the real
property of Lessor.

              (b) If any of Lessee's said personal property shall be
assessed with Lessor's real property, Lessee shall pay Lessor the taxes
attributable to Lessee within 10 days after receipt of a written statement
setting forth the taxes applicable to Lessee's property.

11. UTILITIES. Lessee shall pay for all water, gas, heat, light, power,
telephone and other utilities and services supplied to the Premises, together
with any taxes thereon. If any such services are not separately metered to
Lessee, Lessee shall pay a reasonable proportion to be determined by Lessor of
all charges jointly metered with other premises. (REFERENCE PARA 53)

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12.    ASSIGNMENT AND SUBLETTING.

       12.1 LESSOR'S CONSENT REQUIRED. Lessee shall not voluntarily or by
operation of law assign, transfer, mortgage, sublet, or otherwise transfer or
encumber all or any part of Lessee's interest in this Lease or in the
Premises, without Lessor's prior written consent, which Lessor shall not
unreasonably withhold. Lessor shall respond to Lessee's request for consent
hereunder in a timely manner and any attempted assignment, transfer,
mortgage, encumbrance or subletting without such consent shall be void, and
shall constitute a breach of this Lease.

       12.2 LESSEE AFFILIATE. Notwithstanding the provisions of paragraph
12.1 hereof, Lessee may assign or sublet the Premises, or any portion
thereof, without Lessee's consent, to any corporation which controls, is
controlled by or is under common control with Lessor, or to any corporation
resulting from the merger or consolidation with Lessee, or to any person or
entity which acquires all the assets of Lessee as a going concern of the
business that is being conducted on the Premises, provided that said assignee
assumes, in full, the obligations of Lessee under this Lease. Any such
assignment shall not, in any way, affect or limit the liability of Lessee
under the terms of this Lease even if after such assignment or _______ing the
terms of this Lease are materially changed or altered without the consent of
Lessee, the consent of whom shall not be necessary.

       12.3 NO RELEASE OF LESSEE. Regardless of Lessor's consent, no
subletting or assignment shall release Lessee of Lessee's obligation or alter
the primary liability of Lessee to pay the rent and to perform all other
obligations to be performed by Lessee hereunder. The acceptance of rent by
Lessor from any other person shall not be deemed to be a waiver by Lessor 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 any assignee of Lessee or any successor of Lessee, in the
performance of any of the terms hereof, Lessor may proceed directly against
Lessee without the necessity of exhausting remedies against said assignee.
Lessor may consent to subsequent assignments or subletting of this Lease or
amendments or modifications to this Lease with assignees of Lessee without
notifying Lessee, or any successor of Lessee, and without obtaining its or
their consent thereto and such action shall not relieve Lessee of liability
under this Lease.

       12.4 ATTORNEY'S FEES. In the event Lessee shall assign or sublet the
Premises or request the consent of Lessor to any assignment or subletting or
if Lessee shall request the consent of Lessor for any act Lessee proposes to
do then Lessee shall pay Lessor's reasonable attorneys fees incurred in
connection therewith, such attorneys fees not to exceed $350.00 for each such
request.

13. DEFAULTS; REMEDIES.

       13.1 DEFAULTS. The occurrence of any one or more of the following
events 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

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a period of three days after written notice thereof from Lessor to Lessee. In
the event that Lessor serves Lessee with Notice to Pay Rent or Quit pursuant
to applicable Unlawful Detainer statutes such Notice to Pay Rent or Quit
shall also constitute the notice required by this subparagraph.

              (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 30 days after written notice thereof from
Lessor to Lessee; provided, however, that if the nature of Lessee's default
is such that more than 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 30-day period and thereafter diligently prosecutes such cure to
completion.

              (d) (i) The making by Lessee of any general arrangement or
assignment for the benefit of creditors; (ii) Lessee becomes a "debtor" as
defined in 11 U.S.C. Section 101 or any successor statute thereto (unless, in
the case of a petition filed against Lessee, the same is dismissed within 60
days); (iii) the appointment of a trustee or receiver to take possession of
substantially all of Lessee's assets located at the Premises or of Lessee's
interest in this Lease, where possession is not restored to Lessee within 30
days; or (iv) the attachment, execution or other judicial seizure of
substantially all of Lessee's assets located at the Premises or of Lessee's
interest in this Lease, where such seizure is not discharged within 30 days.
Provided, however, in the event that any provision of this paragraph 13.1(d)
is contrary to any applicable law, such provision shall be of no force or
effect.

              (e) The discovery by Lessor that any financial statement given
to Lessor by Lessee, any assignee of Lessee, any subtenant of Lessee, any
successor in interest of Lessee or any guarantor of Lessee's obligation
hereunder, and any of them, was materially false.

       13.2   REMEDIES. In the event of any such material default or breach by
Lessee, Lessor may at any time thereafter, with or without notice or demand and
without limiting Lessor in the exercise of any right or remedy which Lessor may
have by reason of such default or breach:

              (a) Terminate Lessee's right to possession of the Premises by
any lawful means, in which case this Lease shall terminate and Lessee shall
immediately surrender possession of the Premises to Lessor. In such event Lessor
shall be entitled to recover from Lessee all damages incurred by Lessor by
reason of Lessee's default including, but not limited to, the cost of recovering
possession of the Premises; expenses of reletting, including necessary
renovation and alteration of the Premises, reasonable attorney's fees, and any
real estate commission actually paid; the worth at the time of award by the
court having jurisdiction thereof of the amount by which the unpaid rent for the
balance of the term after the time of such award exceeds the amount of such
rental loss for the same period that Lessee proves could be reasonably avoided;
that portion of the leasing commission paid by Lessor pursuant to paragraph 15
applicable to the unexpired term of this Lease.

              (b) Maintain Lessee's right to possession in which case this
Lease shall continue in effect whether or not Lessee shall have abandoned the
Premises. In such event Lessor shall be entitled to enforce all of Lessor's
rights and remedies under this Lease, including the right to recover the rent as
it becomes due hereunder.

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              (c) Pursue any other remedy now or hereafter available to
Lessor under the laws or judicial decisions of the state wherein the Premises
are located. Unpaid installments of rent and other unpaid monetary
obligations of Lessee under the terms of this Lease shall bear interest from
the date due at the maximum rate then allowable by law.

         13.3 DEFAULT BY LESSOR. Lessor shall not be in default unless Lessor
fails to perform obligations required of Lessor within a reasonable time, but in
no event later than thirty (30) days after written notice by Lessee to Lessor
specifying wherein Lessor has failed to perform such obligation; provided,
however, that if the nature of Lessor's obligation is such that more than thirty
(30) days are required for performance then Lessor shall not be in default if
Lessor commences performance within such 30-day period and thereafter diligently
prosecutes the same to completion.

         13.4 LATE CHARGES. Lessee hereby acknowledges that late payment by
Lessee to Lessor of rent and other sums due hereunder will cause Lessor to incur
costs not contemplated by this Lease, the exact amount of which will be
extremely difficult to ascertain. Such costs include, but are not limited to,
processing and accounting charges, and late charges which may be imposed on
Lessor by the terms of any mortgage or trust deed covering the Premises.
Accordingly, if any installment of rent or any other sum due from Lessee shall
not be received by Lessor or Lessor's designee within ten (10) days after such
amount shall be due, then, without any requirement for notice to Lessee, Lessee
shall pay to Lessor a late charge equal to 6% of such overdue amount. The
parties hereby agree that such late charge represents a fair and reasonable
estimate of the costs Lessor will incur by reason of late payment by Lessee.
Acceptance of such late charge by Lessor shall in no event constitute a waiver
of Lessee's default with respect to such overdue amount, nor prevent Lessor from
exercising any of the other rights and remedies granted hereunder. In the event
that a late charge is payable hereunder, whether or not collected, for three (3)
consecutive installments of rent, then rent shall automatically become due and
payable quarterly in advance, rather than monthly, notwithstanding paragraph 4
or any other provision of this Lease to the contrary.

         13.5 IMPOUNDS. In the event that a late charge is payable hereunder,
whether or not collected, for three (3) installments of rent or any other
monetary obligation of Lessee under the terms of this Lease, Lessee shall pay to
Lessor, if Lessor shall so request, in addition to any other payments required
under this Lease, a monthly advance installment, payable at the same time as the
monthly rent, as estimated by Lessor, for real property tax and insurance
expenses on the Premises which are payable by Lessee under the terms of this
Lease. Such fund shall be established to insure payment when due, before
delinquency, of any or all such real property taxes and insurance premiums. If
the amounts paid to Lessor by Lessee under the provisions of this paragraph are
insufficient to discharge the obligations of Lessee to pay such real property
taxes and insurance premiums as the same become due, Lessee shall pay to Lessor,
upon Lessor's demand, such additional sums necessary to pay such obligations.
All moneys paid to Lessor under this paragraph may be intermingled with other
moneys of Lessor and shall not bear interest. In the event of a default in the
obligations of Lessee to perform under this Lease, then any balance remaining
from funds paid to Lessor under the provisions of this paragraph may, at the
option of Lessor, be applied to the payment of any monetary default of Lessee in
lieu of being applied to the payment of real property tax and insurance
premiums.

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14. CONDEMNATION. If the Premises or any portion thereof are taken under the
power of eminent domain, or sold under the threat of the exercise of said power
(all of which are herein called "condemnation"), this Lease shall terminate as
to the part so taken as of the date the condemning authority takes title or
possession, whichever first occurs. If more than 10% of the floor area of the
building on the Premises, or more than 25% of the land area of the Premises
which is not occupied by any building, is taken by condemnation, Lessee may, at
Lessee's option, to be exercised in writing only within ten (10) days after
Lessor shall have given Lessee written notice of such taking (or in the absence
of such notice, within ten (10) days after the condemning authority shall have
taken possession) terminate this Lease as of the date the condemning authority
takes such possession. If Lessee does not terminate this Lease in accordance
with the foregoing, this Lease shall remain in full force and effect as to the
portion of the building situated on the Premises. No reduction of rent shall
occur if the only area taken is that which does not have a building located
thereon. Any award for the taking of all or any part of the Premises under the
power of eminent domain or any payment made under threat of the exercise of such
power shall be the property of Lessor, whether such award shall be made as
compensation for diminution in value of the leasehold or for the taking of the
fee, or as severance damages; provided, however that Lessee shall be entitled to
any award for loss of damage to Lessee's trade fixtures and removable personal
property. In the event that this Lease is not terminated by reason of such
condemnation, Lessor shall to the extent of severance damages received by Lessor
in connection with such condemnation, repair any damage to the Premises caused
by such condemnation except to the extent that Lessee has been reimbursed
therefor by the condemning authority. Lessee shall pay any amount in excess of
such severance damages required to complete such repair.

15. BROKER'S FEE.

                  (a) Upon execution of this Lease by both parties, Lessor
shall pay to      N/A      Licensed real estate broker(s), a fee as set forth
in a separate agreement between Lessor and said broker(s), or in the event
there is no separate agreement between Lessor and said broker(s), the sum of
$      N/A      , for brokerage services rendered by said broker(s) to Lessor
in this transaction.

                  (b) Lessor further agrees that if Lessee exercises any Option
as defined in paragraph 39.1 of this Lease, which is granted to Lessee under
this Lease, or any subsequently granted option which is substantially similar to
an Option granted to Lessee under this Lease, or if Lessee acquires any rights
to the Premises or other premises described in this Lease which are
substantially similar to what Lessee would have acquired had an Option herein
granted to Lessee been exercised, or if Lessee remains in possession of the
Premises after the expiration of the term of this Lease after having failed to
exercise an Option, or if said broker(s) are the procuring cause of any other
Lease or sole entered into between the parties pertaining to the Premises and/or
any adjacent property in which Lessor has an interest, then as to any of said
transactions, Lessor shall pay said broker(s) a fee in accordance with the
schedule of said broker(s) in effect at the time of execution of this Lease.

                  (c) Lessor agrees to pay said fee not only on behalf of Lessor
but also on behalf of any person, corporation, association, or other entity
having an ownership interest in said real property or any part thereof, when
such fee is due hereunder. Any transferee of

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Lessor's interest in this Lease, whether such transfer is by agreement or by
operation of law, shall be deemed to have assumed Lessor's obligation under
this Paragraph 15. Said broker shall be a third party beneficiary of the
provisions of this Paragraph 15.

16.      ESTOPPEL CERTIFICATE.

         (a) Lessee shall at any time upon not less than ten (10) day's prior
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 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) At Lessor's option, Lessee's failure to deliver such statement
within such time shall be a material breach of this Lease or 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 such failure may be considered
by Lessor as a default by Lessee under this Lease.

         (c) If Lesser desires to finance, refinance, or sell the Premises,
or any part thereof, Lessee hereby agrees to deliver to any lender or
purchaser designated by Lessor such financial statements of Lessee as may be
reasonably required by such lender or purchaser. Such statements shall
include the past three years' financial statements of Lessee. All such
financial statements shall be received by Lessor and such lender or purchaser
in confidence and shall be used only for the purposes herein set forth.

17.      LESSOR'S LIABILITY. The term "Lessor" as used herein shall mean only
the owner or owners at the time in question of the fee title or a lessee's
interest in a ground lease of the Premises, and except as expressly provided
in Paragraph 15, in the event of any transfer of such title or interest,
Lessor herein named (and in case of any subsequent transfers then the
grantor) shall be relieved from and after the date of such transfer of all
liability as respects Lessor's obligations thereafter to be performed,
provided that any funds in the hands of Lessor or the then grantor at the
time of such transfer, in which Lessee has an interest, shall be delivered to
the grantee. The obligations contained in this Lease to be performed by
Lessor shall, subject as aforesaid, be binding on Lessor's successors and
assigns, only during their respective periods of ownership.

18.      SEVERABILITY. The invalidity of any provision of this Lease as
determined by a court of competent jurisdiction, shall in no way affect the
validity of any other provision hereof.

19.      INTEREST ON PAST-DUE OBLIGATIONS. Except as expressly herein
provided, any amount due to Lessor not paid when due shall bear interest at
the maximum rate then allowable by law from the date due. Payment of such
interest shall not excuse or cure any default by Lessee under this

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Lease, provided, however, that interest shall not be payable on late charges
incurred by Lessee nor on any amounts upon which late charges are paid by
Lessee.

20. TIME OF ESSENCE. Time is of the essence.

21. ADDITIONAL RENT. Any monetary obligations of Lessee to Lessor under the
terms of this Lease shall be deemed to be rent.

22. INCORPORATION OF PRIOR AGREEMENTS; AMENDMENTS. This Lease contains all
agreements of the parties with respect to any matter mentioned herein. No prior
agreement or understanding pertaining to any such matter shall be effective.
This Lease may be modified in writing only, signed by the parties in interest at
the time of the modification. Except as otherwise stated in this Lease, Lessee
hereby acknowledges that neither the real estate broker listed in Paragraph 15
hereof nor any cooperating broker on this transaction nor the Lessor or any
employees or agents of any of said persons has made any oral or written
warranties or representations to Lessee relative to the condition or use by
Lessee of said Premises and Lessee acknowledges that Lessee assumes all
responsibility regarding the Occupational Safety Health Act, the legal use and
adaptability of the Premises and the compliance thereof with all applicable laws
and regulations in effect during the term of this Lease except as otherwise
specifically stated in this Lease.

23. NOTICES. Any notice required or permitted to be given hereunder shall be in
writing and may be given by personal delivery or by certified mail, and if given
personally or by mail, shall be deemed sufficiently given if addressed to Lessee
or to Lessor at the address noted below the signature of the respective parties,
as the case may be. Either party may by notice to the other specify a different
address for notice purposes except that upon Lessee's taking possession of the
Premises, the Premises shall constitute Lessee's address for notice purposes. A
copy of all notices required or permitted to be given to Lessor hereunder shall
be concurrently transmitted to such party or parties at such addresses as Lessor
may from time to time hereafter designate by notice to Lessee.

24. WAIVERS. No waiver by Lessor or any provision hereof shall be deemed a
waiver of any other provision hereof or of any subsequent breach by Lessee of
the same or any other provision. Lessor's consent to, or approval of any act,
shall not be deemed to render unnecessary the obtaining of Lessor's consent to
approval of any subsequent act by Lessee. The acceptance of rent hereunder by
Lessor shall not be a waiver of any preceding breach by Lessee of any provision
hereof, other than the failure of Lessee to pay the particular rent so accepted,
regardless of Lessor's knowledge of such preceding breach at the time of
acceptance of such rent.

25. RECORDING. Either Lessor or Lessee shall, upon request of the other,
execute, acknowledge and deliver to the other a "short form" memorandum of this
Lease for recording purposes.

26. HOLDING OVER. If Lessee, with Lessor's consent, remains in possession of the
Premises or any part thereof after the expiration of the term hereof, such
occupancy shall be a tenancy from month to month upon all the provisions of this
Lease pertaining to the obligations of

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Lessee, but all options and rights of first refusal, if any, granted under
the terms of this Lease shall be deemed terminated and be of no further
effect during said month to month tenancy.

27. CUMULATIVE REMEDIES. No remedy or election hereunder shall be deemed
exclusive but shall, wherever possible, be cumulative with all other remedies at
law or in equity.

28. COVENANTS AND CONDITIONS. Each provision of this Lease performable by Lessee
shall be deemed both a covenant and a condition.

29. BINDING EFFECT; CHOICE OF LAW. Subject to any provisions hereof restricting
assignment or subletting by Lessee and subject to the provisions of Paragraph
17, this Lease shall bind the parties, their personal representatives,
successors and assigns. This Lease shall be governed by the laws of the State
wherein the Premises are located.

30. SUBORDINATION.

         (a) This Lease, at Lessor's option, shall be subordinate to any ground
lease, mortgage, deed of trust, or any other hypothecation or 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.
Notwithstanding such subordination, Lessee's right to quiet possession of the
Premises shall not be disturbed if Lessee is not in default and so long as
Lessee shall pay the rent and observe and perform all of the provisions of
this Lease, unless this Lease is otherwise terminated pursuant to its terms.
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 or said mortgage, deed of trust or ground
lease or the date of recording thereof.

         (b) Lessee agrees to execute any documents required to effectuate an
attornment, a subordination or to make this Lease prior to the lien of any
mortgage, deed of trust or ground lease, as the case may be. Lessee's failure
to execute such documents within 10 days after written demand shall
constitute a material default by Lessee hereunder, or, at Lessor's option.
Lessor shall execute such documents on behalf of Lessee as Lessee's
attorney-in-fact. Lessee does hereby make, constitute and irrevocably appoint
Lessor as Lessee's attorney-in-fact and in Lessee's name, place and stead, to
execute such documents in accordance with this paragraph 30(b).

31. ATTORNEY'S FEES. If either party or the broker named herein brings an action
to enforce the terms hereof or declare rights hereunder, the prevailing party in
any such action, on trial or appeal, shall be entitled to his reasonable
attorney's fees to be paid by the losing party as fixed by the court. The
provisions of this paragraph shall inure to the benefit of the broker named
herein who seeks to enforce a right hereunder.

32. LESSOR'S ACCESS. Lessor and Lessor's agents shall have the right to enter
the Premises at reasonable times for the purpose of inspecting the same, showing
the same to prospective purchasers, lenders, or lessees, and making such
alterations, repairs, improvements or additions to the Premises or to the
building of which they are a part as Lessor may deem necessary or

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desirable. Lessor may at any time place on or about the Premises any ordinary
"For Sale" signs and Lessor may at any time during the last 120 days of the
term hereof place on or about the Premises any ordinary "For Lease" signs,
all without rebate of rent or liability to Lessee. Lessee requests 24 hour
notice barring emergency. Access to AC/heating controls is granted.

33. AUCTIONS. Lessee shall not conduct, nor permit to be conducted, either
voluntarily or involuntarily, any auction upon the Premises without first having
obtained Lessor's prior written consent. Notwithstanding anything to the
contrary in this Lease, Lessor shall not be obligated to exercise any standard
of reasonableness in determining whether to grant such consent.

34. SIGNS. Lessee shall not place any sign upon the Premises without Lessor's
prior written consent except that Lessee shall have the right, without the prior
permission of Lessor to place ordinary and usual for rent or sublet signs
thereon.

35. MERGER. The voluntary or other surrender of this lease by Lessee, or a
mutual cancellation thereof, or a termination by Lessor, shall not work a
merger, and shall, at the option of Lessor, terminate all or any existing
subtenancies or may, at the option of Lessor, operate as an assignment to Lessor
of any or all of such subtenancies.

36. CONSENTS. Except for paragraph 33 hereof, wherever in this Lease the consent
of one party is required to an act of the other party, such consent shall not be
unreasonably withheld.

37. GUARANTOR. In the event that there is a guarantor of this Lease, said
guarantor shall have the same obligations as Lessee under this Lease.

38. QUIET POSSESSION. Upon Lessee paying the rent for the Premises and observing
and performing all of the covenants, conditions and provisions on Lessee's part
to be observed and performed hereunder, Lessee shall have quiet possession of
the Premises for the entire term hereof subject to all of the provisions of this
Lease. The individuals executing this Lease on behalf of Lessor represent and
warrant to Lessee that they are duly authorized and legally capable of executing
this Lease on behalf of Lessor and that such execution is binding upon all
parties holding an ownership interest in the Premises.

39. OPTIONS.

    39.1 DEFINITION. As used in this paragraph the word "Options" has the
following meaning: (1) the right or option to extend the term of this Lease or
to renew this Lease or to extend or renew any Lease that Lessee has on other
property of Lessor: (2) the option or right of first refusal to lease the
Premises or the right of first offer to lease the Premises or the right of first
refusal to lease other property of Lessor or the right of first offer to lease
other property of Lessor; (3) the right or option to purchase the Premises, or
the right of first refusal to purchase the Premises, or the right of first offer
to purchase the Premises or the right or option to purchase other property of
Lessor, or the right of first refusal to purchase other property of Lessor or
the right of first offer to purchase other property of Lessor.

    39.2 OPTIONS PERSONAL. Each Option granted to Lessee in this Lease are
personal to Lessee and may not be exercised or be assigned, voluntarily or
involuntarily, by or to any person or entity other than Lessee, provided,
however, the Option may be exercised by or assigned to

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any Lessee Affiliate as defined in paragraph 12.2 of this Lease. The Options
herein granted to Lessee are not assignable separate and apart from this
Lease.

         39.3 MULTIPLE OPTIONS. In the event that Lessee has any multiple
options to extend or renew this Lease a later option cannot be exercised unless
the prior option to extend or renew this Lease has been so exercised.

         39.4 EFFECT OF DEFAULT ON OPTIONS.

              (a) Lessee shall have no right to exercise an Option,
notwithstanding any provision in the grant of Option to the contrary, (i) during
the time commencing from the date Lessor gives to Lessee a notice of default
pursuant to paragraph 13.1(b) or 13.1(c) and continuing until the default
alleged in said notice of default is cured, or (ii) during the period of time
commencing on the day after a monetary obligation to Lessor is due from Lessee
and unpaid (without any necessity for notice thereof to Lessee) continuing until
the obligation is paid, or (iii) at any time after an event of default described
in paragraphs 13.1(a), 13.1(d), or 13.1(e) (without any necessity of Lessor to
give notice of such default to Lessee), (iv) in the event that Lessor has given
to Lessee three or more notices of default under paragraph 13.1(b), where a late
charge becomes payable under paragraph 13.4 for each of such defaults, or
paragraph 13.1(c), whether or not the defaults are cured, during the 12 month
period prior to the time that Lessee intends to exercise the subject Option.

              (b) The period of time within which an Option may be exercised
shall not be extended or enlarged by reason of Lessee's inability to exercise an
Option because of the provisions of paragraph 39.4(a).

              (c) All rights of Lessee under the provisions of an Option
shall terminate and be of no further force or effect, notwithstanding Lessee's
due and timely exercise of the Option, if, after such exercise and during the
term of this Lease, (i) Lessee fails to pay to Lessor a monetary obligation of
Lessee for a period of 30 days after such obligation becomes due (without any
necessity of Lessor to give notice thereof to Lessee), or (ii) Lessee fails to
commence to cure a default specified in paragraph 13.1(c) within 30 days after
the date that Lessor gives notice to Lessee of such default and/or Lessee fails
thereafter to diligently prosecute said cure to completion, or (iii) Lessee
commits a default described in paragraph 13.1(a), 13.1(d), or 13.1(e) (without
any necessity of Lessor to give notice of such default to Lessee), or (iv)
Lessor gives to Lessee three or more notices of default under paragraph 13.1(b),
where a late charge becomes payable under paragraph 13.4 for each such default,
or paragraph 13.1(c), whether or not the defaults are cured.

40. MULTIPLE TENANT BUILDING. In the event that the Premises are part of a
larger building or group of buildings then Lessee agrees that it will abide by,
keep and observe all reasonable rules and regulations which Lessor may make from
time to time for the management, safety, care, and cleanliness of the building
and grounds, the parking of vehicles and the preservation of good order therein
as well as for the convenience of other occupants and tenants of the building.
The violations of any such rules and regulations shall be deemed a material
breach of this Lease by Lessee.

                                     19

                                                             Initials: /s/ MLM
                                                                       -------
                                                                       -------

<PAGE>

41. SECURITY MEASURES. Lessee hereby acknowledges that the rental payable to
Lessor hereunder does not include the cost of guard service or other security
measures, and that Lessor shall have no obligation whatsoever to provide same.
Lessee assumes all responsibility for the protection of Lessee, its agents and
invitees from acts of third parties.

42. EASEMENTS. Lessor reserves to itself the right, from time to time, to grant
such easements, rights and dedications that Lessor deems necessary or desirable,
and to cause the recordation of Parcel Maps and restrictions, so long as such
easements, rights, dedications, maps and restrictions do not unreasonably
interfere with the use of the Premises by Lessee. Lessee shall sign any of the
aforementioned documents upon request of Lessor and failure to do so shall
constitute a material breach of this Lease.

43. PERFORMANCE UNDER PROTEST. If at any time a dispute shall arise as to any
amount or sum of money to be paid by one party to the other under the provisions
hereof, the party against whom the obligation to pay the money is asserted shall
have the right to make payment "under protest" and such payment shall not be
regarded as a voluntary payment, and there shall survive the right on the part
of said party to institute suit for recovery of such sum. If it shall be
adjudged that there was no legal obligation on the part of said party to pay
such sum or any part thereof, said party shall be entitled to recover such sum
or so much thereof as it was not legally required to pay under the provisions of
this Lease.

44. AUTHORITY. If Lessee is a corporation, trust, or general or limited
partnership, each individual executing this Lease on behalf of such entity
represents and warrants that he or she is duly authorized to execute and deliver
this Lease on behalf of said entity. If Lessee is a corporation, trust or
partnership, Lessee shall, within thirty (30) days after execution of this
Lease, deliver to Lessor evidence of such authority satisfactory to Lessor.

45. CONFLICT. Any conflict between the printed provisions of this Lease and the
typewritten or handwritten provisions shall be controlled by the typewritten or
handwritten provisions.

46. ADDENDUM. Attached hereto is an addendum or addenda containing paragraphs
______ through ______ which constitutes a part of this Lease.

         See addendum 47-53 attached.

                                     20

                                                             Initials: /s/ MLM
                                                                       -------
                                                                       -------

<PAGE>

LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND
PROVISION CONTAINED HEREIN AND BY EXECUTION OF THIS LEASE, SHOW THEIR INFORMED
AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS
LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND
EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE
PREMISES.

         IF THIS LEASE HAS BEEN FILLED IN, IT HAS BEEN PREPARED FOR SUBMISSION
         TO YOUR ATTORNEY FOR HIS APPROVAL. NO REPRESENTATION OR RECOMMENDATION
         IS MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION OR BY THE
         REAL ESTATE BROKER OR ITS AGENTS OR EMPLOYEES AS TO THE LEGAL
         SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE
         TRANSACTION RELATING THERETO; THE PARTIES SHALL RELY SOLELY UPON THE
         ADVICE OF THEIR OWN LEGAL COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES
         OF THIS LEASE.

The parties hereto have executed this Lease at the place on the dates specified
immediately adjacent to their respective signatures.

Executed at _________________________           _____________________________

on __________________________________           By __________________________

Address _____________________________           By __________________________

_____________________________________              "LESSOR" (Corporate Seal)

Executed at _________________________           _____________________________

                                                    /s/ Mary Lou Maloe
on __________________________________           By __________________________

Address _____________________________           By __________________________

_____________________________________              "LESSEE" (Corporate Seal)

                                      21

                                                             Initials: /s/ MLM
                                                                       -------
                                                                       -------

<PAGE>

                                ADDENDUM TO LEASE

In reference to the Agreement to Lease dated July 18, 1996 by and between HANSEN
MANAGEMENT, hereafter referred to as Lessor, and WATER SOUNDS hereafter referred
to as Lessee, covering the real property commonly known as 1496 ODDSTAD DRIVE,
REDWOOD CITY, CALIFORNIA the undersigned Lessor and Lessee agree to the
following:

47. Lessor hereby grants to Lessee the option to extend the term of this lease
for two additional two (2) year periods following the expiration of the original
term. Lessee shall exercise this option by giving notice to Lessor at least
three (3) months, but not more than six (6) months, prior to the expiration of
the respective terms.

49. Rental Increases: Beginning August 1, 1997 rental shall be per month.
Beginning August 1, 1998, and in every subsequent year thereafter, for the term
of this lease (including both two year options), the monthly rental shall be
adjusted by the increase, if any, in the Consumer Price Index as published by
the Bureau of Labor Statistics, U.S. Department of Labor, for the San
Francisco/Oakland Metropolitan Area, all items, herein referred to as "CPI".

The monthly rental shall be calculated as follows: THE MONTHLY RENT PAYABLE
DURING THE PREVIOUS YEAR OF THE TERM OF THIS LEASE SHALL BE MULTIPLIED BY A
FRACTION, THE NUMERATOR OF WHICH SHALL BE THE CPI OF THE MONTH PUBLISHED
IMMEDIATELY PRECEDING THE CURRENT ADJUSTMENT MONTH AND THE DENOMINATOR SHALL
BE THE CPI OF THE MONTH IMMEDIATELY PRECEDING THE PREVIOUS YEAR OF THE LEASE
TERM. The sum so calculated shall constitute the new monthly rent hereunder;
however, in no event shall the new monthly rent be less than the rent payable
for the month immediately preceding the date for rent adjustments.

In the event the compilation and/or publication of the CPI shall be
transferred to another governmental department or bureau or agency, or shall
be discontinued, then the index most nearly the same as the CPI shall be used
to make such calculation. In the event the Lessor and Lessee cannot agree on
such alternative index, then the matter shall be submitted for decision to
the American Arbitration Association on accordance with the rules of said
association and the decision of the arbitrators shall be binding upon the
parties. The cost of said Arbitrators shall be paid equally by Lessor and
Lessee. IN NO EVENT SHALL THE CPI INCREASE BE LESS THAN TWO PERCENT (2%) NOR
GREATER THAN FIVE (5%) IN ANY CALENDAR YEAR.

50. Lessee shall pay their pro-rata share of five point two two percent
(5.22%) of common area costs, including but not limited to parking lot
sweeping, maintenance, utilities, water, landscaping and common lighting.
Lessee shall be provided a breakdown of those costs.

51. If Lessee's tenant improvements cause a notice of violation of ADA, then
Lessee agrees to inform Lessor immediately (but not later than ten days)
after receiving notice of violation of the American Disabilities Act ("ADA").
In addition Lessor is responsible for complying with the ADA in the common
areas, and Lessee is responsible for compliance in their own space if
Lessee's improvements cause the notification.

                                                             Initials: /s/ MLM
                                                                       -------
                                                                       -------

<PAGE>

52. Lessee is taking premises in a condition requiring painting and
carpeting. Lessor grants to Lessee two months free rent for the improvement
of the property. Lessee will make the first rental payment October 1, 1996.
Lessor warrants to Lessee that the lighting and electrical system is in good
and safe operating condition on the lease commencement date. Lessor also
warrants the air conditioning and heating is in good operating condition on
the lease commencement date.

53. Lessee shall pay 45% {(Bill amount DIVIDED BY 2880) x 1300} of PG&E
expenses of combined 1494 and 1496 Oddstad bill. Lessee shall not pay more
than $150 for PG&E in any month.

The undersigned do hereby agree:

                                                    July 26, 1996
___________________________________         _______________________________
DATE                                        DATE
                                                    /s/ Mary Lou Maloe
___________________________________         _______________________________
LESSOR                                      LESSEE

___________________________________         _______________________________
LESSOR                                      LESSEE

                                                         Initials: /s/ MLM
                                                                   -------
                                                                   -------

<PAGE>

                                HANSEN MANAGEMENT
                           2995 WOODSIDE RD. #400-332
                               WOODSIDE, CA 94062
                                 (650) 365-2788

August 2, 1999

Marylou
1496 Oddstad Dr.
Redwood City, CA  94063

Re:  subletting the front space at 1496 Oddstad Dr., Redwood City

Dear Marylou:

Hansen Management gives you permission to sublet the front of your space you
lease from Hansen Management at 1496 Oddstad Drive, Redwood City.

Sincerely,

/s/ Ronda E. Marin

Ronda E. Marin
Manager<PAGE>

                          INDUSTRIAL REAL ESTATE LEASE
 CB RICHARD ELLIS         (SINGLE-TENANT FACILITY)
                          BROKERAGE AND MANAGEMENT
                          LICENSED REAL ESTATE BROKER

ARTICLE ONE:  BASIC TERMS

       This Article One contains the Basic Terms of this Lease between the
Landlord and Tenant named below.  Other Articles, Sections and Paragraphs of the
Lease referred to in this Article One explain and define the Basic terms and are
to be read in conjunction with the Basic Terms.

       Section 1.1   DATE OF LEASE: September 14, 1999

       Section 1.2   LANDLORD (INCLUDE LEGAL ENTITY): Frederick & Doris Nicolini

Address of Landlord: 535 Chesnut Avenue
                     South San Francisco, CA  94080

       Section 1.3   TENANT (INCLUDE LEGAL ENTITY: iPrint, Inc., a California
Corporation

Address of Tenant:   1450 Oddstand Drive
                     Redwood City, CA  94063

       Section 1.4   PROPERTY:  (include street address, approximate square
footage and description:  1475 Veterans Boulevard, Redwood City.  +10,540
sq. ft. of combination of office/warehouse, partial two-story concrete tilt-up
building.
APN# 52-431-010

       Section 1.5   LEASE TERM:   four    years   -   months
beginning on October 1, 1999 or such other date as is specified in this
Lease, and ending on September 30, 2003

       Section 1.6   PERMITTED USES:  (See Article Five)  Office,
administration, storage, distribution, and other legal uses.

       Section 1.7   TENANT'S GUARANTOR:  (If none, so state)  None

       Section 1.8   BROKERS:  (See Article Fourteen)  (If none, so state)
Landlord's Broker:   CB Richard Ellis, Inc.
Tenant's Broker:     Spallino Reed Corporate Real Estate

       Section 1.9   COMMISSION PAYABLE TO LANDLORD'S BROKER:  (See Article
Fourteen ) $  Per Agreement

       Section 1.10  INITIAL SECURITY DEPOSIT:  (See Section 3.03)  $Eight
Thousand ($8,000.00)

       Section 1.11  VEHICLE PARKING SPACES ALLOCATED TO TENANT:  Front and rear
of property

       Section 1.12  RENT AND OTHER CHARGES PAYABLE BY TENANT:

              (a)    BASE RENT:  Seven Thousand Nine Hundred Five and 00/100
Dollars ($7,905.00) per month, for the first twelve months, as provided in
Section 3.01, and shall be increased on the first day of the 13th, 25th,
37th,       month(s) after the Commencement Date, as provided in the Base
Rent Schedule.

              (b)    OTHER PERIODIC PAYMENTS:  (i) Real Property Taxes (See
Section 4.2); (ii) Utilities (See Section 4.3); (iii) Insurance Premiums (See
Section 4.4); (iv) Impounds for Insurance Premiums and Property Taxes (See
Section 4.7); (v) Maintenance, Repairs and Alterations (See Article Six).

                                       1
-C-1988 Southern California                         Initials    /s/ GK
        Chapter of the                                      ------------------
        Society of Industrial                                   /s/ FN  DN
        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

       Section 1.13  LANDLORD'S SHARE OF PROFIT ON ASSIGNMENT OR SUBLEASE:  (See
Section 9.5)  zero percent ( 0 %) of the Profit (the "Landlord's Share").

       Section 1.14  RIDERS:  The following Riders are attached to and made a
part of this Lease:  (If none, so state)
                     (i) Addendum to Industrial Real Estate Lease

ARTICLE TWO:  LEASE TERM

       Section 2.1   LEASE OF PROPERTY FOR LEASE TERM.  Landlord leases the
Property to Tenant and Tenant leases the Property from Landlord for the Lease
Term.  The Lease Term is for the period stated in Section 1.5 above and shall
begin and end on the dates specified in Section 1.5 above, unless the beginning
or end of the Lease Term is changed under any provision of this Lease.  The
"Commencement Date" shall be the date specified in Section 1.5 above for the
beginning of the Lease Term, unless advanced or delayed under any provision of
this Lease.

       Section 2.2   DELAY IN COMMENCEMENT.  Landlord shall not be liable to
Tenant if Landlord does not deliver possession of the Property to Tenant on
the Commencement Date.  Landlord's non-delivery of the Property to Tenant on
that date shall not affect this Lease or the obligations of Tenant under this
Lease except that the Commencement Date shall be delayed until Landlord
delivers possession of the Property to Tenant and the Lease Term shall be
extended for a period equal to the delay in delivery of possession of the
Property to Tenant, plus the number of days necessary to end the Lease Term
on the last day of a month.  If Landlord does not deliver possession of the
Property to Tenant within sixty (60) days after the Commencement Date, Tenant
may elect to cancel this Lease by giving written notice to Landlord within
ten (10) days after the sixty (60) -day period ends.  If Tenant gives such
notice, the Lease shall be cancelled and neither Landlord nor Tenant shall
have any further obligations to the other.  If Tenant does not give such
notice, Tenant's right to cancel the Lease shall expire and the Lease Term
shall commence upon the delivery of possession of the Property to Tenant.  If
delivery of possession of the Property to Tenant is delayed, Landlord and
Tenant shall. upon such delivery, execute an amendment to this Lease setting
forth the actual Commencement Date and expiration date of the Lease.  Failure
to execute such amendment shall not affect the actual Commencement Date and
expiration date of the Lease.

       Section 2.3   EARLY 0CCUPANCY.  If Tenant occupies the Property prior
to the Commencement Date, Tenant's occupancy of the Property shall be subject
to all of the provisions of this Lease.  Early occupancy of the Property
shall not advance the expiration date of this Lease.

       Section 2.4   HOLDING OVER.  Tenant shall vacate the Property upon the
expiration or earlier termination of this Lease. Tenant shall reimburse
Landlord for and indemnity Landlord against all damages which Landlord incurs
from Tenant's delay in vacating the Property.  If Tenant does not vacate the
Property upon the expiration or earlier termination of the Lease and Landlord
thereafter accepts rent from Tenant, Tenant's occupancy of the Property shall
be a "month-to-month" tenancy, subject to all of the terms of this Lease
applicable to a month-to-month tenancy, except that the Base Rent then in
effect shall be increased by twenty-five percent (25%).

ARTICLE THREE:  BASE RENT

       Section 3.1   TIME AND MANNER OF PAYMENT.  Upon execution of this Lease,
Tenant shall pay Landlord the Base Rent in the amount stated in
Paragraph 1.12(a) above for the first month of the Lease Term.  On the first day
of the second Lease Term and each month thereafter, Tenant shall pay Landlord
the Base Rent. in advance, without offset, deduction or prior demand.  The Base
Rent shall be payable at Landlord's address or at such other place as Landlord
may designate in writing.

                                       2
-C-1988 Southern California                         Initials    /s/ GK
        Chapter of the                                      ------------------
        Society of Industrial                                   /s/ FN  DN
        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

       Section 3.3   SECURITY DEPOSIT; INCREASES.

              (a)    Upon the execution of this Lease, Tenant shall deposit
with Landlord a cash Security Deposit in the amount set forth in Section 1.10
above. Landlord may apply all or part of the Security Deposit to any unpaid
rent or other charges due from Tenant or to cure any other defaults of
Tenant.  If Landlord uses any part of the Security Deposit, Tenant shall
restore the Security Deposit to its full amount within ten (10) days after
Landlord's written request.  Tenant's failure to do so shall be a material
default under this Lease.  No interest shall be paid on the Security Deposit.
Landlord shall not be required to keep the Security Deposit separate from
its other accounts and no trust relationship is created with respect to the
Security Deposit.

              (b)    Each Time the Base Rent is increased, Tenant shall
deposit additional funds with Landlord sufficient to increase the Security
Deposit to an amount which bears the same relationship to the adjusted Base
Rent as the initial Security Deposit bore to the initial Base Rent.

       Section 3.4   TERMINATION; ADVANCE PAYMENTS.  Upon termination of this
Lease under Article Seven (Damage or Destruction).  Article Eight
(Condemnation) or any other termination not resulting from Tenant's default,
and after Tenant has vacated the Property in the manner required by this
Lease, Landlord shall refund or credit to Tenant (or Tenant's successor) the
unused portion of the Security Deposit, any advance rent or other advance
payments made by Tenant to Landlord, and any amounts paid for real property
taxes and other reserves which apply to any time periods after termination of
the Lease [WITHIN THIRTY (30) DAYS].

ARTICLE FOUR:  OTHER CHARGES PAYABLE BY TENANT

       Section 4.1   ADDITIONAL RENT.  All charges payable by Tenant other than
Base Rent are called "Additional Rent."  Unless this Lease provides otherwise,
Tenant shall pay all Additional Rent then due with the next monthly installment
of Base Rent.  The term "rent" shall mean Base Rent and Additional Rent.

                                       3
-C-1988 Southern California                         Initials    /s/ GK
        Chapter of the                                      ------------------
        Society of Industrial                                   /s/ FN  DN
        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

       Section 4.2   PROPERTY TAXES.

[TENANT SHALL NOT PAY ANY ADDITIONAL PROPERTY TAXES IN THE EVENT LANDLORD SELLS
THE PROPERTY.]

              (a)    REAL PROPERTY TAXES. Tenant shall pay all real properly
taxes on the Property (including any fees, taxes or assessments against, or
as a result of, any tenant improvements installed on the Property by or for
the benefit of Tenant) during the Lease Term.  Subject to Paragraph  4.02(c)
and Section  4.07 below, such payment shall be made at least ten (10) days
prior to the delinquency date of the taxes.  Within such ten (10) -day
period, Tenant shall furnish Landlord with satisfactory evidence that the
real property taxes have been paid.  Landlord shall reimburse Tenant for any
real properly taxes paid by Tenant covering any period of time prior to or
after the Lease Term.  If Tenant fails to pay the real property taxes when
due, Landlord may pay the taxes and Tenant shall reimburse Landlord for the
amount of such tax payment as Additional Rent.

              (b)    DEFINITION OF "REAL PROPERTY TAX."  "Real property tax"
means: (i) any fee, license fee, license tax, business license  fee,
commercial rental tax, levy, charge, assessment, penalty or tax imposed by
any taxing authority against the Property; (ii) any tax on the Landlord's
right to receive, or the receipt of, rent or income from the Property or
against Landlord's business of leasing the Property; (iii) any tax or charge
for fire protection, streets, sidewalks, road maintenance, refuse or other
provided to the Property by any governmental agency; (iv) any tax imposed
upon this transaction or based upon a re-assessment of the Property due to a
change of ownership, as defined by applicable law, or other transfer of all
or part of Landlord's interest in the Property; and (v) any charge or fee
replacing any tax previously included within the definition of real properly
tax.  "Real property tax" does not, however, include Landlord's federal or
state income, franchise, inheritance or estate taxes.

              (c)    JOINT ASSESSMENT.  If the Property is not separately
assessed.  Landlord shall reasonably determine Tenant's share of the real
property tax payable by Tenant under Paragraph 4.02(a) from the assessor's
worksheets or other reasonably available information.  Tenant shall pay such
share to Landlord within fifteen (15) days after receipt of Landlord's written
statement.

              (d)    PERSONAL PROPERTY TAXES.

                     (i)    Tenant shall pay all taxes charged against trade
fixtures, furnishings, equipment or any other personal property belonging to
Tenant.  Tenant shall try to have personal property taxed separately from the
Property.

                     (ii)   If any of Tenant's personal property is taxed
with the Property Tenant shall pay Landlord the taxes for the personal
property within fifteen (15) days after Tenant receives a written statement
from Landlord for such personal property taxes.

              (e)    TENANT'S RIGHT TO CONTEST TAXES.  Tenant may attempt to
have the assessed valuation of the Property reduced or may initiate
proceedings to contest the real property taxes.  If required by law, Landlord
shall join in the proceedings brought by Tenant.  However, Tenant shall pay
all costs of the proceedings, including any costs or fees incurred by
Landlord.  Upon the final determination of any proceeding or contest, Tenant
shall immediately pay the real property taxes due, together with all costs,
charges, interest and penalties incidental to the proceedings. Tenant does
not pay the real property taxes when due and contests such taxes, Tenant
shall not be in default under this Lease for nonpayment of such taxes if
Tenant deposits funds with Landlord or opens an interest-bearing account
reasonably acceptable to Landlord in the joint names of Landlord and Tenant.
The amount of such deposit shall be sufficient to pay the real property taxes
plus a reasonable estimate of the interest, costs, charges and penalties
which may accrue if Tenant's action is unsuccessful, less any applicable tax
impounds previously paid by Tenant to Landlord.  The deposit shall be applied
to the real property taxes due, as determined at such proceedings.  The real
property taxes shall be paid under protest from such deposit if such payment
under protest is necessary to prevent the Property from being sold under a
"tax sale" or similar enforcement proceeding.

                                       4
-C-1988 Southern California                         Initials    /s/ GK
        Chapter of the                                      ------------------
        Society of Industrial                                   /s/ FN  DN
        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

       Section 4.3   UTILITIES.  Tenant shall pay, directly to the appropriate
supplier, the cost of all natural gas, heat, light, power, sewer service,
telephone, water, refuse disposal and other utilities and services supplied to
the Property.  However, if any services or utilities are jointly metered with
other property, Landlord shall make a reasonable determination of Tenant's
proportionate share of the cost of such utilities and services and Tenant shall
pay such share to Landlord within fifteen (15) days after receipt of Landlord's
written statement.

       Section 4.4   INSURANCE POLICIES.

                (a)    LIABILITY INSURANCE.  During the Lease Term, Tenant
shall maintain a policy of commercial general liability insurance (sometimes
known as broad form comprehensive general liability insurance) insuring
Tenant against liability for bodily injury, property damage (including loss
of use of property) and personal injury arising out of the operation, use or
occupancy of the Property.  Tenant shall name Landlord as an additional
insured under such policy.  The initial amount of such insurance shall be One
Million Dollars ($1,000,000) per occurrence and shall be subject to periodic
increase based upon inflation, increased liability awards, recommendation of
Landlord's professional insurance advisers and other relevant factors.  The
liability insurance obtained by Tenant under this Paragraph 4D4(a) shall (i)
be primary and non-contributing; (ii) contain cross-liability endorsements;
and (iii) insure Landlord against Tenant's performance under Section 5.05, if
the matters giving rise to the indemnity under Section 5.05 result from the
negligence of Tenant.  The amount and coverage of such insurance shall not
limit Tenant's liability nor relieve Tenant of any other obligation under
this Lease.  Landlord may also obtain comprehensive public liability
insurance in an amount and with coverage determined by Landlord insuring
Landlord against liability arising out of ownership. operation, use or
occupancy of the Property.  The policy obtained by Landlord shall not be
contributory and shall not provide primary insurance.

                (b)    PROPERTY AND RENTAL INCOME INSURANCE.  During the
Lease Term, Landlord-shall maintain policies of insurance covering loss of or
damage to the Property in the full amount of its replacement value.  Such
policy shall contain an Inflation Guard Endorsement and shall provide
protection against all perils included within the classification of fire,
extended coverage, vandalism, malicious mischief, special extended perils
(all risk), sprinkler leakage and any other perils which Landlord deems
reasonably necessary.  Landlord shall have the right to obtain flood and
earthquake insurance if required by any lender holding a security interest in
the Property.  Landlord shall not obtain insurance for Tenant's fixtures or
equipment or building improvements installed by Tenant on the Property.
During the Lease Term, Landlord shall also maintain a rental income insurance
policy, with loss payable to Landlord, in an amount equal to one year's Base
Rent, plus estimated real properly taxes and insurance premiums.  Tenant
shall be liable for the payment of any deductible amount under Landlord's or
Tenant's insurance policies maintained pursuant to this Section 4.04, in an
amount not to exceed Ten Thousand Dollars ($10,000).  Tenant shall not do or
permit anything to be done which invalidates any such insurance policies.

                (c)    PAYMENT OF PREMIUMS.  Subject to Section 4.07, Tenant
shall pay all premiums for the insurance policies described in Paragraphs
4.04(a) and (b) (whether obtained by Landlord or Tenant) within fifteen (15)
days after Tenant's receipt of a copy of the premium statement or other
evidence of the amount due, except Landlord shall pay all premiums for
non-primary comprehensive public liability insurance which Landlord elects to
obtain as provided in Paragraph 4.04(a). If insurance policies maintained by
Landlord cover improvements on real property other than the Property,
Landlord shall deliver to Tenant a statement of the premium applicable to the
Property showing in reasonable detail how Tenant's share of the premium was
computed.  If the Lease Term expires before the expiration of an insurance
policy maintained by Landlord, Tenant shall be liable for Tenant's prorated
share of the insurance premiums.  Before the Commencement Date, Tenant shall
deliver to Landlord a copy of any policy of insurance which Tenant is
required to maintain under this Section 4.04. At least thirty (30) days prior
to the expiration of any such policy, Tenant shall deliver to Landlord a
renewal of such policy.  As an alternative to providing a policy of
insurance, Tenant shall have the right to provide Landlord a certificate of
insurance, executed by an authorized officer of the insurance company,
showing that the insurance which Tenant is required to maintain under this
Section 4.04 is in full force and effect and containing such other
information which Landlord reasonably requires.

                                       5
-C-1988 Southern California                         Initials    /s/ GK
        Chapter of the                                      ------------------
        Society of Industrial                                   /s/ FN  DN
        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

                (d)    GENERAL INSURANCE PROVISIONS.

                       (i)    Any insurance which Tenant is required to
maintain under this Lease shall include a provision which requires the
insurance carrier to give Landlord not less than thirty (30) days' written
notice prior to any cancellation or modification of such coverage.

                       (ii)   If Tenant fails to deliver any policy,
certificate or renewal to Landlord required under this Lease within the
prescribed time period or if any such policy is cancelled or modified during
the Lease Term without Landlord's consent, Landlord may obtain such
insurance, in which case Tenant shall reimburse Landlord for the cost of such
insurance within fifteen (15) days after receipt of a statement that
indicates the cost of such insurance.

                       (iii)  Tenant shall maintain all insurance required
under this Lease with companies holding a "General Policy Rating" of A-12 or
better. as set forth in the most current issue of "Best Key Rating Guide".
Landlord and Tenant acknowledge the insurance markets are rapidly changing
and that insurance in the form and amounts described in this Section 4.04 may
not be available in the future.  Tenant acknowledges that the insurance
described in this Section 4.04 is for the primary benefit of Landlord.  It at
any time during the Lease Term, Tenant is unable to maintain the insurance
required under the Lease, Tenant shall nevertheless maintain insurance
coverage which is customary and commercially reasonable in the insurance
industry for Tenant's type of business, as that coverage may change from time
to time.  Landlord makes no representation as to the adequacy of such
insurance to protect Landlord's or Tenant's interests.  Therefore, Tenant
shall obtain any such additional property or liability insurance which Tenant
deems necessary to protect Landlord and Tenant.

                       (iv)   Unless prohibited under any applicable insurance
policies maintained, Landlord and Tenant each hereby waive any and all rights of
recovery against the other, or against the officers, employees, agents or
representatives of the other, for loss of or damage to its property or the
properly of others under its control, if such loss or damage is covered by any
insurance policy in force (whether or not described in this Lease) at the time
of such loss or damage.  Upon obtaining the required policies of insurance,
Landlord and Tenant shall give notice to the insurance carriers of this mutual
waiver of subrogation.

       Section 4.5   LATE CHARGES.  Tenant's failure to pay rent promptly may
cause Landlord to incur unanticipated costs.  The exact amount of such costs
are impractical or extremely difficult to ascertain.  Such costs may include,
but are not limited to, processing and accounting charges and late charges
which may be imposed on Landlord by any ground lease, mortgage or trust deed
encumbering the Property.  Therefore, if Landlord does not receive any rent
payment within ten (10) days after it becomes due, Tenant shall pay Landlord
a late charge equal to  [FIVE PERCENT (5%)] of the overdue amount.  The
parties agree that such late charge represents a fair and reasonable estimate
of the costs Landlord will incur by reason of such late payment.

       Section 4.6   INTEREST ON PAST DUE OBLIGATIONS.  Any amount owned by
Tenant to Landlord which is not paid when due shall bear interest at the rate
of fifteen percent (15%) per annum from the due date of such amount.
However, interest shall not be payable on late charges to be paid by Tenant
under this Lease.  The payment of interest on such amounts shall not excuse
or cure any default by Tenant under this Lease. If the interest rate
specified in this Lease is higher than the rate permitted by law, the
interest rate is hereby decreased to the maximum legal interest rate
permitted by law.

       Section 4.7   IMPOUNDS FOR INSURANCE PREMIUMS AND REAL PROPERTY TAXES.
If requested by any ground lessor or lender to whom Landlord has granted a
security interest in the Property, or if Tenant is more than ten (10) days late
in the payment of rent more than once in any consecutive twelve (12) -month
period.  Tenant shall pay Landlord a sum equal to one-twelfth (1/12) of the
annual real property taxes and insurance premiums payable by Tenant under this
Lease, together with each payment of Base Rent.  Landlord shall hold such
payments in a non-interest bearing impound account.  It unknown, Landlord shall
reasonably estimate the amount of real property taxes and insurance premiums
when due.  Tenant shall pay any deficiency of funds in the impound account to
Landlord

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        Chapter of the                                      ------------------
        Society of Industrial                                   /s/ FN  DN
        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

upon written request.  If Tenant defaults under this Lease, Landlord may
apply any funds in the impound account to any obligation then due under this
Lease.

ARTICLE FIVE:  USE OF PROPERTY

       Section 5.1   PERMITTED USES.  Tenant may use the Property only for the
Permitted Uses set forth in Section 1.06 above.

       Section 5.2   MANNER OF USE.  Tenant shall not cause or permit the
Properly to be used in any way which constitutes a violation of any law,
ordinance, or governmental regulation or order, which annoys or interferes with
the rights of other tenants of Landlord, or which constitutes a nuisance or
waste.  Tenant shall obtain and pay for all permits, including a Certificate of
Occupancy, required for Tenant's occupancy of the Properly and shall promptly
take all actions necessary to comply with all applicable statutes, ordinances,
rules, regulations, orders and requirements regulating the use by Tenant of the
Property, including the Occupational Safety and Health Act.

       Section 5.3   HAZARDOUS MATERIALS.  As used in this Lease, the term
"Hazardous Material" means any flammable items, explosives, radioactive
materials, hazardous or toxic substances, material or waste or related
materials, including any substances defined as or included in the definition
of "hazardous substances", "hazardous wastes", "hazardous materials" or
"toxic substances" now or subsequently regulated under any applicable
federal, state or local laws or regulations, including without limitation
petroleum-based products, paints, solvents, lead, cyanide, DDT, printing
inks, acids, pesticides, ammonia compounds and other chemical products,
asbestos, PCBs and similar compounds, and including any different products
and materials which are subsequently found to have adverse effects on the
environment or the health and safety of persons.  Tenant shall not cause or
permit any Hazardous Material to be generated, produced, brought upon, used,
stored, treated or disposed of in or about the Property by Tenant, its
agents, employees, contractors, sublessees or invitees without the prior
written consent of Landlord.  Landlord shall be entitled to take into account
such other factors or facts as Landlord may reasonably determine to be
relevant in determining whether to grant or withhold consent to Tenant's
proposed activity with respect to Hazardous Material.  In no event, however,
shall Landlord be required to consent to the installation or use of any
storage tanks on the Property.

       Section 5.4   SIGNS AND AUCTIONS.  Tenant shall not place any signs on
the Property without Landlord's prior written consent.  Tenant shall not
conduct or permit any auctions or sheriff's sales at the Property.

       Section 5.5   INDEMNITY.  Tenant shall indemnify Landlord against and
hold Landlord harmless from any and all costs. claims or liability arising
from: (a) Tenant's use of the Property: (b) the conduct of Tenant's business
or anything else done or permitted by Tenant to be done in or about the
Property, including any contamination of the Property or any other property
resulting from the presence or use of Hazardous Material caused or permitted
by Tenant; (c) any breach or default in the performance of Tenant's
obligations under this Lease: (d) any misrepresentation or breach of warranty
by Tenant under this Lease; or (e) other [WILLFUL OR MALICIOUS] acts or
omissions of Tenant.  Tenant shall defend Landlord against any such cost,
claim or liability 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 incurred by Landlord in connection with any such claim.
As a material part of the consideration to Landlord, Tenant assumes all risk
of damage to property or injury to persons in or about the Property arising
from any cause, and Tenant hereby waives all claims in respect thereof
against Landlord, except for any claim arising out of Landlord's gross
negligence or willful misconduct.  As used in this Section, the term "Tenant"
shall include Tenant's employees, agents, contractors and invitees, if
applicable.

       Section 5.6   LANDLORD'S ACCESS.  Landlord or its agents may enter the
Property at all reasonable times to show the Property to potential buyers,
investors or tenants or other parties; to do any other act or to inspect and
conduct tests in order to monitor Tenant's compliance with all applicable
environmental laws and all laws governing the presence and use of Hazardous
Material; or for any other purpose Landlord deems necessary.  Landlord shall

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        Chapter of the                                      ------------------
        Society of Industrial                                   /s/ FN  DN
        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

give Tenant prior notice of such entry, except in the case of an emergency.
Landlord may place customary "For Sale" or "For Lease" signs on the Property.

       Section 5.7   QUIET POSSESSION.  If Tenant pays the rent and complies
with all other terms of this Lease.  Ten and enjoy the Property for the full
Lease Term, subject to the provisions of this Lease.

ARTICLE SIX:  CONDITION OF PROPERTY; MAINTENANCE, REPAIRS AND ALTERATIONS

       Section 6.1   EXISTING CONDITIONS.  Tenant accepts the Property in its
condition as of the  [COMMENCEMENT DATE] of the Lease, subject to all recorded
matters, laws, ordinances, and governmental regulations and orders.  Except as
provided herein.  Tenant acknowledges that neither Landlord nor any agent of
Landlord has made any representation as to the condition of the Property or the
suitability of the Property for Tenant's intended use.  Tenant represents and
warrants that Tenant has made its own inspection of and inquiry regarding the
condition of the Property and is not relying on any representations of Landlord
or any Broker with respect thereto.  If Landlord or Landlord's Broker has
provided a Property Information Sheet or other Disclosure Statement regarding
the Property, a copy is attached as an exhibit to the Lease.

       Section 6.2   EXEMPTION OF LANDLORD FROM LIABILITY.  Landlord shall
not be liable for any damage or injury to the person, business (or any loss
of income therefrom), goods, wares, merchandise or other property of Tenant,
Tenant's employees, invitees, customers or any other person in or about the
Property, whether such damage or injury is caused by or results from: (a)
fire, steam, electricity, water, gas or rain; (b)  the breakage, leakage,
obstruction or other defects of pipes, sprinklers, wires, appliances,
plumbing, air conditioning or lighting fixtures or any other cause; (c)
conditions arising in or about the Property or upon other portions of the
Project, or from other sources or places; or (d) any act or omission of any
other tenant of the Project.  Landlord shall not be liable for any such
damage or injury even though the cause of or the means of repairing such
damage or injury are not accessible to Tenant.  The provisions of this
Section 6.02 shall not, however, exempt Landlord from liability for
Landlord's gross negligence or willful misconduct.

       Section 6.3   LANDLORD'S OBLIGATIONS.  Subject to the provisions of
Article Seven (Damage or Destruction) and Article Eight (Condemnation),
Landlord shall have absolutely no responsibility to repair, maintain or
replace any portion of the Property at any time.  Tenant waives the benefit
of any present or future law which might give Tenant the right to repair the
Property at Landlord's expense or to terminate the Lease due to the condition
of the Property.  Landlord shall be responsible for all exterior walls,
structure and roof throughout the Lease Term.

       Section 6.4   TENANT'S OBLIGATIONS.

                (a)    Except as provided in Article Seven (Damage or
Destruction) and Article Eight (Condemnation), Tenant shall keep all portions
of the Properly (including nonstructural, interior, and landscaped areas,
portions, systems and equipment) in good order, condition and repair
(including interior repainting and refinishing, as needed).  If any portion
of the Property or any system or equipment in the Property which Tenant is
obligated to repair cannot be fully repaired or restored.  Tenant shall
promptly replace such portion of the Property or system or equipment in the
Property, regardless of whether the benefit of such replacement extends
beyond the Lease Term; but if the benefit or useful life of such replacement
extends beyond the Lease Term (as such term may be extended by exercise of
any options), the useful life of such replacement shall be prorated over the
remaining portion of the Lease Term (as extended), and Tenant shall be liable
only for that portion of the cost which is applicable to the Lease Term (as
extended).  Tenant shall maintain a preventive maintenance contract providing
for the regular inspection and maintenance of the heating and air
conditioning system by a licensed heating and air conditioning contractor. If
any part of the Property is damaged by any act or omission of Tenant, Tenant
shall pay Landlord the cost of repairing or replacing such damaged property,
whether or not Landlord would otherwise be obligated to pay the cost of
maintaining or repairing such property.  It is the intention of Landlord and

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        Chapter of the                                      ------------------
        Society of Industrial                                   /s/ FN  DN
        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

Tenant that at all times Tenant shall maintain the portions of the Property
which Tenant is obligated to maintain in [A SIMILAR OR BETTER CONDITION,] and
fully operative condition.

                (b)    Tenant shall fulfill all of Tenant's obligations under
this Section 6.04 at Tenant's sole expense.  If Tenant fails to maintain,
repair or replace the Property as required by this Section 6.04, Landlord
may, upon ten (10) days' prior notice to Tenant (except that no notice shall
be required in the case of an emergency), enter the Property and perform such
maintenance or repair (including replacement, as needed) on behalf of Tenant.
In such case, Tenant shall reimburse Landlord for all costs incurred in
performing such maintenance or repair immediately upon demand.

       Section 6.5   ALTERATIONS, ADDITIONS. AND IMPROVEMENTS.

                (a)    Tenant shall not make any alterations, additions, or
improvements to the Property without Landlord' prior written consent,
[WHICH CONSENT SHALL NOT BE UNREASONABLY WITHHELD,] except for non-structural
alterations which do not exceed Ten Thousand Dollars ($10,000) in cost
cumulatively over the Lease Term and which are not visible from the outside
of any building of which the Property is part.  Landlord may require Tenant
to provide demolition and/or lien and completion bonds in form and amount
satisfactory to Landlord.  Tenant shall promptly remove any alterations,
additions, or improvements constructed in violation of this Paragraph 6.05(a)
upon Landlord's written request.  All alterations, additions, and
improvements shall be done in a good and workmanlike manner, in conformity
with all applicable laws and regulations, and by a contractor approved by
Landlord.  Upon completion of any such work, Tenant shall provide Landlord
with "as built" plans, copies of all construction contracts, and proof of
payment for all labor and materials.

                (b)    Tenant shall pay when due all claims for labor and
material furnished to the Property.  Tenant shall give Landlord at least
twenty (20) days' prior written notice of the commencement of any work on the
Property, regardless of whether Landlord's consent to such work is required.
Landlord may elect to record and post notices of non-responsibility on the
Property.

       Section 6.6   CONDITION UPON TERMINATION.  Upon the termination of the
Lease, Tenant shall surrender the Property to Landlord, broom clean and in
the same condition as received except for ordinary wear and tear which Tenant
was not otherwise obligated to remedy under any provision of this Lease.
However, Tenant shall not be obligated to repair any damage which Landlord is
required to repair under Article Seven (Damage or Destruction).  In addition,
Landlord may require Tenant to remove any alterations, additions or
improvements (not made with Landlord's consent) prior to the expiration of
the Lease and to restore the Property to its prior condition, all at Tenant's
expense.  All alterations, additions and improvements which Landlord has not
required Tenant to remove shall become Landlord's property and shall be
surrendered to Landlord upon the expiration or earlier termination of the
Lease, except that Tenant may remove any of Tenant's machinery or equipment
which can be removed without material damage to the Property.  Tenant shall
repair, at Tenant's expense, any damage to the Property caused by the removal
of any such machinery or equipment.  In no event, however, shall Tenant
remove any of the following materials or equipment (which shall be deemed
Landlord's property) without Landlord's prior written consent: any power
wiring or power panels: lighting or lighting fixtures: wall coverings;
drapes, blinds or other window coverings; carpets or other floor coverings;
heaters, air conditioners or any other heating or air conditioning equipment;
fencing or security gates; or other similar building operating equipment and
decorations.

ARTICLE SEVEN:  DAMAGE OR DESTRUCTION

       Section 7.1   PARTIAL DAMAGE TO PROPERTY.

                (a)    Tenant shall notify Landlord in writing immediately
upon the occurrence of any damage to the Property.  If the Property is only
partially damaged (i.e., less than fifty percent (50%) of the Property is
untenable as a result of such damage or less than fifty percent (50%) of
Tenant's operations are materially impaired)

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        Chapter of the                                      ------------------
        Society of Industrial                                   /s/ FN  DN
        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

and if the proceeds received by Landlord from the insurance policies
described in Paragraph 4.04(b) are sufficient to pay for the necessary
repairs, this Lease shall remain in effect and Landlord shall repair the
damage as soon as reasonably possible.  Landlord may elect (but is not
required) to repair any damage to Tenant's fixtures, equipment, or
improvements.

                (b)    If the insurance proceeds received by Landlord are not
sufficient to pay the entire cost of repair or if the cause of the damage is
not covered by the insurance policies which Landlord maintains under
Paragraph 4.04(b), Landlord may elect either to (i) repair the damage as soon
as reasonably possible, in which case this Lease shall remain in full force
and effect, or (ii) terminate this Lease as of the date the damage occurred.
Landlord shall notify Tenant within thirty (30) days after receipt of notice
of the occurrence of the damage whether Landlord elects to repair the damage
or terminate the Lease.  If Landlord elects to repair the damage, Tenant
shall pay Landlord the "deductible amount" (if any) under Landlord's
insurance policies and, if the damage was due to [NEGLIGENCE OR WILLFUL
MISCONDUCT OF] Tenant, or Tenant's employees, agents, contractors or
invitees, the difference between the actual cost of repair and any insurance
proceeds received by Landlord.  If Landlord elects to terminate the Lease,
Tenant may elect to continue this Lease in full force and effect, in which
case Tenant shall repair any damage to the Property and any building in which
the Property is located.  Tenant shall pay the cost of such repairs, except
that upon satisfactory completion of such repairs, Landlord shall deliver to
Tenant any insurance proceeds received by Landlord for the damage repaired by
Tenant.  Tenant shall give Landlord written notice of such election within
ten (10) days after receiving Landlord's termination notice.

                (c)    If the damage to the Property occurs during the last six
(6) months of the Lease Term and such damage will require more than thirty (30)
days to repair, either Landlord or Tenant may elect to terminate this Lease as
of the date the damage occurred, regardless of the sufficiency of any insurance
proceeds.  The party electing to terminate this Lease shall give written
notification to the other party of such election within thirty (30) days after
Tenant's notice to Landlord of the occurrence of the damage.

       Section 7.2   SUBSTANTIAL OR TOTAL DESTRUCTION.  If the Property is
substantially or totally destroyed by any cause whatsoever (i.e., the damage
to the Properly is greater than partial damage as described in Section 7.01),
and regardless of whether Landlord receives any insurance proceeds, this
Lease shall terminate as of the date the destruction occurred Notwithstanding
the preceding sentence, if the Property can be rebuilt within six (6) months
after the date of destruction.  Landlord may elect to rebuild the Property at
Landlord's own expense, in which case this Lease shall remain in full force
and effect. Landlord shall notify Tenant of such election within thirty (30)
days after Tenant's notice of the occurrence of total or substantial
destruction. If Landlord so elects, Landlord shall rebuild the Property at
Landlord's sole expense, except that if the destruction was caused by an
[NEGLIGENCE OR WILLFUL MISCONDUCT] of Tenant.  Tenant shall pay Landlord the
difference between the actual cost of rebuilding and any insurance proceeds
received by Landlord.

       Section 7.3   TEMPORARY REDUCTION OF RENT.  If the Property is
destroyed or damaged and Landlord or Tenant repairs or restores the Property
pursuant to the provisions of this Article Seven, any rent payable during the
period of such damage, repair and/or restoration shall be reduced according
to the degree, if any, to which Tenant's use of the Property is impaired.
However, the reduction shall not exceed the sum of one year's payment of Base
Rent, insurance premiums and real property taxes.  Except for such possible
reduction in Base Rent, insurance premiums and real property taxes.  Tenant
shall not b compensation, reduction, or reimbursement from Landlord as a
result of any damage, destruction. repair, of or to the Property.

Section 7.4   WAIVER.  Tenant waives the protection of any statute, code or
judicial decision which grants a tenant the right to terminate a lease in the
event of the substantial or total destruction of the leased property.  Tenant
agrees that the provisions of Section 7.02 above shall govern the rights and
obligations of Landlord and Tenant in the event of any substantial or total
destruction to the Property.

[TENANT MAY TERMINATE THE LEASE IF LANDLORD CANNOT REBUILD THE PREMISES WITHIN
180 DAYS, EXCEPT IF DESTRUCTION WAS

                                       10
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        Chapter of the                                      ------------------
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        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

CAUSED BY A WILLFUL ACT OR GROSS OMISSION OF TENANT.]

ARTICLE EIGHT:  CONDEMNATION

       If all or any portion of the Property is taken under the power of
eminent domain or sold under the threat of that power (all of which are
called "Condemnation"), this Lease shall terminate as to the part taken or
sold on the date the condemning authority takes title or possession,
whichever occurs first. If more than twenty percent (20%) of the floor area
of the building in which the Property is located, or which is located on the
Property, is taken, either Landlord or Tenant may terminate this Lease as of
the date the condemning authority takes title or possession, by delivering
written notice to the other within ten (10) days after receipt of written
notice of such taking (or in the absence of such notice, within ten (10) days
after the condemning authority takes title or possession).  It neither
Landlord nor Tenant terminates this Lease, this Lease shall remain in effect
as to the portion of the Property not taken, except that the Base Rent and
Additional Rent shall be reduced in proportion to the reduction in the floor
area of the Property.  Any Condemnation award or payment shall be distributed
in the following order: (a) first, to any ground lessor, mortgagee or
beneficiary under a deed of trust encumbering the Property, the amount of its
interest in the Property; (b) second, to Tenant, only the amount of any award
specifically designated for loss of or damage to Tenant's trade fixtures or
removable personal property; and (c) third, to Landlord, the remainder of
such award, whether as compensation for reduction in the value of the
leasehold, the taking of the fee, or otherwise.  If this Lease is not
terminated, Landlord shall repair any damage to the Properly caused by the
Condemnation, except that Landlord shall not be obligated to repair any
damage for which Tenant has been reimbursed by the condemning authority.  If
the severance damages received by Landlord are not sufficient to pay for such
repair, Landlord shall have the right to either terminate this Lease or make
Such repair at Landlord's expense.

ARTICLE NINE:  ASSIGNMENT AND SUBLETTING

       Section 9.1   LANDLORD'S CONSENT REQUIRED.  No portion of the Property
or of Tenant's interest in this Lease may be acquired by any other person or
entity, whether by sale, assignment, mortgage, sublease, transfer, operation
of law, or act of Tenant, without Landlord's prior written consent, except as
provided in Section 9.02 below.  Landlord has the right to grant or withhold
its consent as provided in Section 9.05 below Any attempted transfer without
consent shall be void and shall constitute a non-curable breach of this
Lease.  If Tenant is a partnership, any cumulative transfer of more than
twenty percent (20%) of the partnership interests shall require Landlord's
consent.  If Tenant is a corporation. any change in the ownership of a
controlling interest of the voting stock of the corporation shall require
Landlord's consent.

       Section 9.2   TENANT AFFILIATE.  Tenant may assign this Lease or
sublease the Property, without Landlord's consent, to any corporation which
controls, is controlled by or is under common control with Tenant, or to any
corporation resulting from the merger of or consolidation with Tenant
("Tenant's Affiliate").  In such case, any Tenant's Affiliate shall assume in
writing all of Tenant's obligations under this Lease.

       Section 9.3   NO RELEASE OF TENANT.  No transfer permitted by this
Article Nine, whether with or without Landlord's consent, shall release Tenant
or change Tenant's primary liability to pay the rent and to perform all other
obligations of Tenant under this Lease.  Landlord's acceptance of rent from any
other person is not a waiver of any provision of this Article Nine.  Consent to
one transfer is not a consent to any subsequent transfer.  If Tenant's
transferee defaults under this Lease, Landlord may proceed directly against
Tenant without pursuing remedies against the transferee.  Landlord may consent
to subsequent assignments or modifications of this Lease by Tenant's transferee,
without notifying Tenant or obtaining its consent.  Such action shall not
relieve Tenant's liability under this Lease.

       Section 9.4   OFFER TO TERMINATE.  If Tenant desires to assign the
Lease or sublease the Property, Tenant shall have the right to offer, in
writing, to terminate the Lease as of a date specified in the offer.  If
Landlord elects in writing to accept the offer to terminate within twenty
(20) days after notice of the offer, the Lease shall terminate as of the date
specified and all the terms and provisions of the Lease governing termination
shall apply.  If Landlord

                                       11
-C-1988 Southern California                         Initials    /s/ GK
        Chapter of the                                      ------------------
        Society of Industrial                                   /s/ FN  DN
        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

does not so elect, the Lease shall continue in effect until otherwise
terminated and the provisions of Section 9.05 with respect to any proposed
transfer shall continue to apply.

       Section 9.5   LANDLORD'S CONSENT.

                (a)    Tenant's request for consent to any transfer described
in Section 9.01 shall set forth in writing the details of the proposed
transfer, including the name, business and financial condition of the
prospective transferee, financial details of the proposed transfer (e.g., the
term of and the rent and security deposit payable under any proposed
assignment or sublease), and any other information Landlord deems relevant.
Landlord shall have the right to withhold consent, if reasonable, or to grant
consent, based on the following factors: (i) the business of the proposed
assignee or subtenant and the proposed use of the Property; (ii) the net
worth and financial reputation of the proposed assignee or subtenant; (iii)
Tenant's compliance with all of its obligations under the Lease; and (iv)
such other factors as Landlord may reasonably deem relevant.  If Landlord
objects to a proposed assignment solely because of the net worth and/or
financial reputation of the proposed assignee.  Tenant may nonetheless
sublease (but not assign), all or a portion of the Property to the proposed
transferee, but only on the other terms of the proposed transfer.

                (b)    If Tenant assigns or subleases, the following shall
apply:

                       (i)    Tenant shall pay to Landlord as Additional Rent
under the Lease the Landlord's Share (stated in Section 1.13) of the Profit
(defined below) on such transaction as and when received by Tenant, unless
Landlord gives written notice to Tenant and the assignee or subtenant that
Landlord's Share shall be paid by the assignee or subtenant to Landlord
directly.  The "Profit" means (A) all amounts paid to Tenant for such
assignment or sublease, including "key" money, monthly rent in excess of the
monthly rent payable under the Lease, and all fees and other consideration
paid for the assignment or sublease, including fees under any collateral
agreements, less (B) costs and expenses directly incurred by Tenant in
connection with the execution and performance of such assignment or sublease
for real estate broker's commissions and costs of renovation or construction
of tenant improvements required under such assignment or sublease.  Tenant is
entitled to recover such costs and expenses before Tenant is obligated to pay
the Landlord's Share to Landlord.  The Profit in the case of a sublease of
less than all the Property is the rent allocable to the subleased space as a
percentage on a square footage basis.

                       (ii)   Tenant shall provide Landlord a written
statement certifying all amounts to be paid from any assignment or sublease
of the Property within thirty (30) days after the transaction documentation
is signed, and Landlord may inspect Tenant's books and records to verify the
accuracy of such statement.  On written request, Tenant shall promptly
furnish to Landlord copies of all the transaction documentation, all of which
shall be certified by Tenant to be complete, true and correct.  Landlord's
receipt of Landlord's Share shall not be a consent to any further assignment
or subletting.  The breach of Tenant's obligation under this Paragraph
9.05(b) shall be a material default of the Lease.

       Section 9.6   NO MERGER.  No merger shall result from Tenant's
sublease of the Property under this Article Nine, Tenant's surrender of this
Lease or the termination of this Lease in any other manner.  In any such
event, Landlord may terminate any or all subtenancies or succeed to the
interest of Tenant as sublandlord under any or all subtenancies.

ARTICLE TEN:  DEFAULTS; REMEDIES

       Section 10.1  COVENANTS AND CONDITIONS.  Tenant's performance of each of
Tenant's obligations under this Lease is a condition as well as a covenant.
Tenant's right to continue in possession of the Property is conditioned upon
such performance.  Time is of the essence in the performance of all covenants
and conditions.

       Section 10.2  DEFAULTS.  Tenant shall be in material default under this
Lease:

                                       12
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        Chapter of the                                      ------------------
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        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

                (a)    If Tenant abandons the Property or if Tenant's
vacation of the Property results in the cancellation of any insurance
described in Section 4.04; for more than 30 days

                (b)    If Tenant fails to pay rent or any other charge when
due; within ten (10) days after receiving notice from Landlord

                (c)    If Tenant fails to perform any of Tenant's
non-monetary obligations under this Lease for a period of thirty (30) days
after written notice from Landlord; provided that if more than thirty (30)
days are required to complete such performance, Tenant shall not be in
default it Tenant commences such performance within the thirty (30) -day
period and thereafter diligently pursues its completion.  However, Landlord
shall not be required to give such notice if Tenant's failure to perform
constitutes a non-curable breach of this Lease.  The notice required by this
Paragraph is intended to satisfy any and all notice requirements imposed by
law on Landlord and is not in addition to any such requirement.

                (d)    (i) If Tenant makes a general assignment or general
arrangement for the benefit of creditors; (ii) if a petition for adjudication of
bankruptcy or for reorganization or rearrangement is filed by or against Tenant
and is not dismissed within thirty (30) days: (iii) if a trustee or receiver is
appointed to take possession of substantially all of Tenant's assets located at
the Property or of Tenant's interest in this Lease and possession is not
restored to Tenant within thirty (30) days; or (iv) if substantially all of
Tenant's assets located at the Property or of Tenant's interest in this Lease is
subjected to attachment, execution or other judicial seizure which is not
discharged within thirty (30) days.  If a court of competent jurisdiction
determines that any of the acts described in this subparagraph (d) is not a
default under this Lease, and a trustee is appointed to take possession (or if
Tenant remains a debtor in possession) and such trustee or Tenant transfers
Tenant's interest hereunder, then Landlord shall receive, as Additional Rent,
the excess, if any, of the rent (or any other consideration) paid in connection
with such assignment or sublease over the rent payable by Tenant under this
Lease.

                (e)    If any guarantor of the Lease revokes or otherwise
terminates, or purports to revoke or otherwise terminate, any guaranty of all or
any portion of Tenant's obligations under the Lease.  Unless otherwise expressly
provided, no guaranty of the Lease is revocable.

       Section 10.3  REMEDIES.  On the occurrence of any material default by
Tenant, Landlord may at any time thereafter, with or without notice or demand
and without limiting Landlord in the exercise of any right or remedy which
Landlord may have:

                (a)    Terminate Tenant's right to possession of the Property
by any lawful means, in which case this Lease shall terminate and Tenant
shall immediately surrender possession of the Property to Landlord.  In such
event, Landlord shall be entitled to recover from Tenant all damages incurred
by Landlord by reason of Tenant's default, including (i) the worth at the
time of the award of the unpaid Base Rent, Additional Rent and other charges
which Landlord had earned at the time of the termination; (ii) the worth at
the time of the award of the amount by which the unpaid Base Rent, Additional
Rent and other charges which Landlord would have earned after termination
until the time of the award exceeds the amount of such rental loss that
Tenant proves Landlord could have reasonably avoided; (iii) the worth at the
time of the award of the amount by which the unpaid Base Rent.  Additional
Rent and other charges which Tenant would have paid for the balance of the
Lease Term after the time of award exceeds the amount of such rental loss
that Tenant proves Landlord could have reasonably avoided; and (iv) any other
amount necessary to compensate Landlord for all the detriment proximately
caused by Tenant's failure to perform its obligations under the Lease or
which in the ordinary course of things would be likely to result therefrom,
including, but not limited to, any costs or expenses Landlord incurs in
maintaining or preserving the Property after such default, the cost of
recovering possession of the Property, expenses of reletting, including
necessary renovation or alteration of the Property.  Landlord's reasonable
attorneys' fees incurred in connection therewith, and any real estate
commission paid or payable.  As used in subparts (i) and (ii) above, the
"worth at the time of the award" is computed by allowing interest on unpaid
amounts at the rate of fifteen percent (15%) per annum, or such lesser amount
as may then be the maximum lawful rate.  As used in subpart (iii) above, the
"worth at

                                       13
-C-1988 Southern California                         Initials    /s/ GK
        Chapter of the                                      ------------------
        Society of Industrial                                   /s/ FN  DN
        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

the time of the award" is computed by discounting such amount at the discount
rate of the Federal Reserve Bank of San Francisco at the time of the award,
plus one percent (1%).  It Tenant has abandoned the Property, Landlord shall
have the option of (i) retaking possession of the Property and recovering
from Tenant the amount specified in this Paragraph 10.03(a), or (ii)
proceeding under Paragraph 10.03(b);

                (b)    Maintain Tenant's right to possession, in which case
this Lease shall continue in effect whether or not Tenant has abandoned the
Properly. In such event, Landlord shall be entitled to enforce all of
Landlord's rights and remedies under this Lease, including the right to
recover the rent as it becomes due;

                (c)    Pursue any other remedy now or hereafter available to
Landlord under the laws or judicial decisions of the state in which the
Property is located.

       Section 10.5  AUTOMATIC TERMINATION.  Notwithstanding any other term
or provision hereof to the contrary, the Lease shall terminate on the
occurrence of any act which affirms the Landlord's intention to terminate the
Lease as provided in Section 10.03 hereof, including the filing of an
unlawful detainer action against Tenant.  On such termination, Landlord's
damages for default shall include all costs and fees, including reasonable
attorneys' fees that Landlord incurs in connection with the filing,
commencement, pursuing and/or defending of any action in any bankruptcy court
or other court with respect to the Lease; the obtaining of relief from any
stay in bankruptcy restraining any action to evict Tenant; or the pursuing of
any action with respect to Landlord's right to possession of the Property.
All such damages suffered (apart from Base Rent and other rent payable
hereunder) shall constitute pecuniary damages which must be reimbursed to
Landlord prior to assumption of the Lease by Tenant or any successor to
Tenant in any bankruptcy or other proceeding.

       Section 10.6  CUMULATIVE REMEDIES.  Landlord's exercise of any right or
remedy shall not prevent it from exercising any other right or remedy.

ARTICLE ELEVEN:  PROTECTION OF LENDERS

       Section 11.1  SUBORDINATION.  Landlord shall have the right to
subordinate this Lease to any ground lease, deed of trust or mortgage
encumbering the Property, any advances made on the security thereof and any
renewals, modifications, consolidations, replacements or extensions thereof,
whenever made or recorded.  Tenant shall cooperate with Landlord and any
lender which is acquiring a security interest in the Property or the Lease.
Tenant shall execute such further documents and assurances as such lender may
require, provided that Tenant's obligations under this Lease shall not be
increased in any material way (the performance of ministerial acts shall not
be deemed material), and Tenant shall not be deprived of its rights under
this Lease, Tenant's right to quiet possession of the Property during the
Lease Term shall not be disturbed if Tenant pays the rent and performs all of
Tenant's obligations under this Lease and is not otherwise in default.  If
any ground lessor, beneficiary or mortgagee elects to have this Lease prior
to the lien of its ground lease, deed of trust or mortgage and gives written
notice thereof to Tenant, this Lease shall be deemed prior to such ground
lease, deed of trust or mortgage whether this

                                       14
-C-1988 Southern California                         Initials    /s/ GK
        Chapter of the                                      ------------------
        Society of Industrial                                   /s/ FN  DN
        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

Lease is dated prior or subsequent to the date of said ground lease, deed of
trust or mortgage or the date of recording thereof.

       Section 11.2  ATTORNMENT.  If Landlord's interest in the Property is
acquired by any groundless or beneficiary under a deed of trust, mortgagee, or
purchaser at a foreclosure sale, Tenant shall attorn to the transferee of or
successor to Landlord's interest in the Property and recognize such transferee
or successor as Landlord under this Lease.  Tenant waives the protection of any
statute or rule of law which gives or purports to give Tenant any right to
terminate this Lease or surrender possession of the Property upon the transfer
of Landlord's interest.

       Section 11.3  SIGNING OF DOCUMENTS.  Tenant shall sign and deliver any
instrument or documents necessary or appropriate to evidence any such
attornment or subordination or agreement to do so.  It Tenant fails to do so
within ten (10) days after written request, Tenant hereby makes, constitutes
and irrevocably appoints Landlord, or any transferee or successor of
Landlord, the attorney-in-fact of Tenant to execute and deliver any such
instrument or document.

       Section 11.4  ESTOPPEL CERTIFICATES.

                (a)    Upon Landlord's written request, Tenant shall execute,
acknowledge and deliver to Landlord a written statement certifying:  (i) that
none of the terms or provisions of this Lease have been changed (or if they
have been changed, stating how they have been changed); (ii) that this Lease
has not been cancelled or terminated; (iii) the last date of payment of the
Base Rent and other charges and the time period covered by such payment;
(iv) that Landlord is not in default under this Lease (or, if Landlord is
claimed to be in default, stating why); and (v) such other representations or
information with respect to Tenant or the Lease as Landlord may reasonably
request or which any prospective purchaser or encumbrancer of the Property
may require.  Tenant shall deliver such statement to Landlord within ten (10)
days after Landlord's request.  Landlord may give any such statement by
Tenant to any prospective purchaser or encumbrancer of the Property.  Such
purchaser or encumbrancer may rely conclusively upon such statement as true
and correct.

                (b)    If Tenant does not deliver such statement to Landlord
within such ten (10)-day period, Landlord, and any prospective purchaser or
encumbrancer, may conclusively presume and rely upon the following facts:
(i) that the terms and provisions of this Lease have not been changed except
as otherwise represented by Landlord: (ii) that this Lease has not been
cancelled or terminated except as otherwise represented by Landlord;
(iii) that not more than one month's Base Rent or other charges have been
paid in advance; and (iv) that Landlord is not in default under the Lease.
In such event, Tenant shall be estopped from denying the truth of such facts.

       Section 11.5  TENANT'S FINANCIAL CONDITION.  Within ten (10) days
after written request from Landlord, Tenant shall deliver to Landlord such
financial statements as Landlord reasonably requires to verity the net worth
of Tenant or any assignee, subtenant, or guarantor of Tenant.  In addition.
Tenant shall deliver to any lender designated by Landlord any financial
statements required by such lender to facilitate the financing or refinancing
of the Property. Tenant represents and warrants to Landlord that each such
financial statement is a true and accurate statement as of the date of such
statement.  All financial statements shall be confidential and shall be used
only for the purposes set forth in this Lease.

ARTICLE TWELVE:  LEGAL COSTS

       Section 12.1  LEGAL PROCEEDINGS.  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 Nondetaulting Party incurs in connection with any
breach or default of the Defaulting Party under this Lease, 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

                                       15
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        Chapter of the                                      ------------------
        Society of Industrial                                   /s/ FN  DN
        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

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;
(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 1.1 of the United States Code, as amended.
Tenant shall 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.

       Section 12.2  LANDLORD'S CONSENT.  Tenant shall pay Landlord's
reasonable attorneys' fees incurred in connection with Tenant's request for
Landlord's consent under Article Nine (Assignment and Subletting), or in
connection with any other act which Tenant proposes to do and which requires
Landlord's consent.

ARTICLE THIRTEEN:  MISCELLANEOUS PROVISIONS

       Section 13.1  NON-DISCRIMINATION.  Tenant promises, and it is a
condition to the continuance of this Lease, that there will be no
discrimination against, or segregation of, any person or group of persons on
the basis of race, color, sex, creed, national origin or ancestry in the
leasing, subleasing, transferring, occupancy, tenure or use of the Property
or any portion thereof.

       Section 13.2  LANDLORD'S LIABILITY; CERTAIN DUTIES.

                (a)    As used in this Lease, the term "Landlord" means
only the current owner or owners of the fee title to the Property or the
leasehold estate under a ground lease of the Property at the time in
question.  Each Landlord is obligated to perform the obligations of Landlord
under this Lease only during the time such Landlord owns such interest or
title.  Any Landlord who transfers its title or interest is relieved of all
liability with respect to the obligations of Landlord under this Lease to be
performed on or after the date of transfer.  However, each Landlord shall
deliver to its transferee all funds that Tenant previously paid if such funds
have not yet been applied under the terms of this Lease.

                (b)    Tenant shall give written notice of any failure by
Landlord to perform any of its obligations under this Lease to Landlord and
to any ground lessor, mortgagee or beneficiary under any deed of trust
encumbering the Property whose name and address have been furnished to Tenant
in writing. Landlord shall not be in default under this Lease unless Landlord
(or such ground lessor, mortgagee or beneficiary) fails to cure such
non-performance within thirty (30) days after receipt of Tenant's notice.
However if such non-performance reasonably requires more than thirty (30)
days to cure, Landlord shall not be in default if such cure is commenced
within such thirty (30) -day period and thereafter diligently pursued to
completion.

                (c)    Notwithstanding any term or provision herein to the
contrary the liability of Landlord for the performance of its duties and
obligations under this Lease is limited to Landlord's interest in the Property,
and neither the Landlord nor its partners, shareholders, officers or other
principals shall have any personal liability under this Lease.

       Section 13.3  SEVERABILITY.  A determination by a court of competent
jurisdiction that any provision of this Lease or any part thereof is illegal or
unenforceable shall not cancel or invalidate the remainder of such provision or
this Lease, which shall remain in full force and effect.

       Section 13.4  INTERPRETATION.  The captions of the Articles or
Sections of this Lease are to assist the parties in reading this Lease and
are not a part of the terms or provisions of this Lease.  Whenever required
by the context of this Lease, the singular shall include the plural and the
plural shall include the singular.  The masculine,

                                       16
-C-1988 Southern California                         Initials    /s/ GK
        Chapter of the                                      ------------------
        Society of Industrial                                   /s/ FN  DN
        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

feminine and neuter genders shall each include the other.  In any provision
relating to the conduct, acts or omissions of Tenant, the term "Tenant" shall
include Tenant's agents, employees. contractors, invitees. successors or
others using the Property with Tenant's expressed or implied permission.

       Section 13.5  INCORPORATION OF PRIOR AGREEMENTS; MODIFICATIONS.  This
Lease is the only agreement between the parties pertaining to the lease of
the Property and no other agreements are effective.  All amendments to this
Lease shall be in writing and signed by all parties.  Any other attempted
amendment shall be void.

       Section 13.6  NOTICES.  All notices required or permitted under this
Lease shall be in writing and shall be personally delivered or sent by
certified mail, return receipt requested, postage prepaid.  Notices to Tenant
shall be delivered to the address specified in Section 1.03 above, except
that upon Tenant's taking possession of the Property, the Property shall be
Tenant's address for notice purposes.  Notices to Landlord shall be delivered
to the address specified in Section 1.02 above.  All notices shall be
effective upon delivery.  Either party may change its notice address upon
written notice to the other party.

       Section 13.7  WAIVERS.  All waivers must be in writing and signed by
the waiving party.  Landlord's failure to enforce any provision of this Lease
or its acceptance of rent shall not be a waiver and shall not prevent
Landlord from enforcing that provision or any other provision of this Lease
in the future.  No statement on a payment check from Tenant or in a letter
accompanying a payment check shall be binding on Landlord.  Landlord may,
with or without notice to Tenant, negotiate such check without being bound to
the conditions of such statement.

       Section 13.8  NO RECORDATION.  Tenant shall not record this Lease
without prior written consent from Landlord.  However, either Landlord or
Tenant may require that a "Short Form" memorandum of this Lease executed by
both parties be recorded.  The party requiring such recording shall pay all
transfer taxes and recording fees.

       Section 13.9  BINDING EFFECT; CHOICE OF LAW.  This Lease binds any
party who legally acquires any rights or interest in this Lease from Landlord
or Tenant.  However, Landlord shall have no obligation to Tenant's successor
unless the rights or interests of Tenant's successor are acquired in
accordance with the terms of this Lease.  The laws of the state in which the
Property is located shall govern this Lease.

       Section 13.10 CORPORATE AUTHORITY; PARTNERSHIP AUTHORITY.  If Tenant
is a corporation. each person signing this Lease on behalf of Tenant
represents and warrants that he has full authority to do so and that this
Lease binds the corporation.  If Tenant is a partnership, each person or
entity signing this Lease for Tenant represents and warrants that he or she
is a general partner of the partnership, that he or it has full authority to
sign for the partnership and that this Lease binds the partnership and all
general partners of the partnership.  Tenant shall give written notice to
Landlord of any general partner's withdrawal or addition.  Within thirty (30)
days after this Lease is signed, Tenant shall deliver to Landlord a copy of
Tenant's recorded statement of partnership or certificate of limited
partnership.

       Section 13.11 JOINT AND SEVERAL LIABILITY.  All parties signing this
Lease as Tenant shall be jointly and severally liable for all obligations of
Tenant.

       Section 13.12 FORCE MAJEURE.  It Landlord cannot perform any of its
obligations due to events beyond Landlord's control, the time provided for
performing such obligations shall be extended by a period of time equal to the
duration of such events.  Events beyond Landlord's control include. but are not
limited to, acts of God, war, civil commotion, labor disputes, strikes, fire,
flood or other casualty, shortages of labor or material, government regulation
or restriction and weather conditions.

                                       17
-C-1988 Southern California                         Initials    /s/ GK
        Chapter of the                                      ------------------
        Society of Industrial                                   /s/ FN  DN
        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

       Section 13.13 EXECUTION OF LEASE.  This Lease may be executed in
counterparts and, when all counterpart documents are executed, the
counterparts shall constitute a single binding instrument.  Landlord's
delivery of this Lease to Tenant shall not be deemed to be an offer to lease
and shall not be binding upon either party until executed and delivered by
both parties.

       Section 13.14 SURVIVAL.  All representations and warranties of Landlord
and Tenant shall survive the termination of this Lease.

ARTICLE FOURTEEN:  BROKERS

       Section 14.1  BROKER'S FEE.  When this Lease is signed by and
delivered to both Landlord and Tenant, Landlord shall pay a real estate
commission to Landlord's Broker named in Section 1.08 above, if any, as
provided in the written agreement between Landlord and Landlord's Broker, or
the sum stated in Section 1.09 above for services rendered to Landlord by
Landlord's Broker in this transaction.  Landlord shall pay Landlord's Broker
a commission if Tenant exercises any option to extend the Lease Term or to
buy the Property, or any similar option or right which Landlord may grant to
Tenant, or if Landlord's Broker is the procuring cause of any other lease or
sale entered into between Landlord and Tenant covering the Property.  Such
commission shall be the amount set forth in Landlord's Broker's commission
schedule in effect as of the execution of this Lease.  If a Tenant's Broker
is named in Section 1.08 above, Landlord's Broker shall pay an appropriate
portion of its commission to Tenant's Broker if so provided in any agreement
between Landlord's Broker and Tenant's Broker.  Nothing contained in this
Lease shall impose any obligation on Landlord to pay a commission or tee to
any party other than Landlord's Broker.

       Section 14.2  PROTECTION OF BROKERS.  If Landlord sells the Property,
or assigns Landlord's interest in this Lease, the buyer or assignee shall, by
accepting such conveyance of the Property or assignment of the Lease, be
conclusively deemed to have agreed to make all payments to Landlord's Broker
thereafter required of Landlord under this Article Fourteen.  Landlord's
Broker shall have the right to bring a legal action to enforce or declare
rights under this provision.  The prevailing party in such action shall be
entitled to reasonable attorneys' fees to be paid by the losing party.  Such
attorneys' fees shall be fixed by the court in such action.  This Paragraph
is included in this Lease for the benefit of Landlord's Broker.

       Section 14.3  Agency Disclosure; No Other Brokers.

Landlord and Tenant each warrant that they have dealt with no other real estate
broker(s) in connection with this transaction except:                         ,
who represents Landlord and Spallino Reed Corporate Real Estate,
who represents                            .

In the event that                  represents both Landlord and Tenant,
Landlord and Tenant hereby confirm that they were timely advised of the dual
representation 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.

ARTICLE FIFTEEN:  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.

                                       18
-C-1988 Southern California                         Initials    /s/ GK
        Chapter of the                                      ------------------
        Society of Industrial                                   /s/ FN  DN
        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

       ADDITIONAL PROVISIONS MAY BE SET FORTH IN A RIDER OR RIDERS ATTACHED
HERETO OR IN THE BLANK SPACE BELOW.  IF NO ADDITIONAL PROVISIONS ARE INSERTED.
PLEASE DRAW A LINE THROUGH THE SPACE BELOW.

       Landlord and Tenant have signed this Lease at the place and on the
dates specified adjacent to their signatures below and have initialed all
Riders which are attached to or incorporated by reference in this Lease.

                                                     "LANDLORD"

Signed on                        , 19          Frederick & Doris Nicolini
          -----------------------    ---       -------------------------------
at
   -------------------------------------       -------------------------------
                                            By:  /s/ Frederick Nicolini
                                               -------------------------------
                                                     Frederick Nicolini
                                            Its:
                                                ------------------------------
                                            By:    /s/ Doris Nicolini
                                               -------------------------------
                                                       Doris Nicolini
                                            Its:
                                                ------------------------------

                                                          "TENANT"
 Signed on     September 21, 1999                  iPrint, Inc.
           ------------------------             ------------------------------
 at     Redwood City, CA                           a California Corporation
    ------------------------------              ------------------------------
                                            By:     /s/ Greg Korjeff
                                               -------------------------------
                                                        Greg Korjeff
                                            Its:   Vice President Operations
                                                ------------------------------
                                            By:
                                               -------------------------------
                                            Its:
                                               ------------------------------

       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.

       THIS PRINTED FORM LEASE HAS BEEN DRAFTED BY LEGAL COUNSEL AT THE
DIRECTION OF THE SOUTHERN CALIFORNIA CHAPTER OF THE SOCIETY OF INDUSTRIAL AND
OFFICE REALTORS-Registered Trademark- INC.  NO REPRESENTATION OR
RECOMMENDATION IS MADE BY THE SOUTHERN CALIFORNIA CHAPTER OF THE SOCIETY OF
INDUSTRIAL AND OFFICE REALTORS-Registered Trademark-  INC., ITS LEGAL
COUNSEL, THE REAL ESTATE BROKERS NAMED HEREIN, OR THEIR EMPLOYEES OR AGENTS.
AS M THE LEGAL SUFFICIENCY, LEGAL EFFECT OR TAX CONSEQUENCES OF THIS LEASE OR
OF THIS TRANSACTION.  LANDLORD AND TENANT SHOULD RETAIN LEGAL COUNSEL TO

                                       19
-C-1988 Southern California                         Initials    /s/ GK
        Chapter of the                                      ------------------
        Society of Industrial                                   /s/ FN  DN
        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

ADVISE THEM ON SUCH MATTERS AND SHOULD RELY UPON THE ADVICE OF SUCH LEGAL
COUNSEL.

                                       20
-C-1988 Southern California                         Initials    /s/ GK
        Chapter of the                                      ------------------
        Society of Industrial                                   /s/ FN  DN
        and Office Realtors,
        -Registered Trademark- Inc.
*  CB Richard Ellis, Inc.

                            (Single-Tenant Net Form)

<PAGE>

CB RICHARD ELLIS
ADDENDUM TO INDUSTRIAL REAL ESTATE LEASE                            PAGE 1 OF 1

This Addendum One is made a part of the Lease dated September 14, 1999 by and
between Frederick & Doris Nicolini as Landlord and iPrint, Inc., a California
Corporation as Tenant, for the premises commonly known as 1475 Veterans
Boulevard, Redwood City, California.

16.    BASE RENT SCHEDULE
       Months 1 - 12:       $0.75/sq. ft./mo. NNN
       Months 13 - 24:      $0.80/sq. ft./mo. NNN
       Months 25 - 36:      $0.85/sq. ft./mo. NNN
       Months 37 - 48:      $0.90/sq. ft./mo. NNN

17.    OPERATING EXPENSES AND REAL ESTATE TAXES
       1999 ESTIMATED OPERATING EXPENSES         $0.10 per sq. ft. per month
              Property Taxes                     $8,559.30
              Property Insurance                 $2,634.00
              Common Area:                       $960.00

18.    EARLY ENTRY TO PREMISES
       Tenant shall have a right to enter the Premises prior to the lease
       commencement for the purpose of space planning, tenant improvements and
       the installation of telephones and electronic communication equipment
       related to operating its business.

19.    TENANT IMPROVEMENT ALLOWANCE
       Landlord to provide the space in an "As-Is" condition.  All construction
       shall be subject to the reasonable approval of Landlord.  Landlord
       represents that the premises including but not limited to HVAC,
       electrical and lighting shall be in good working order at the
       commencement of this Lease.  Tenant anticipates spending $150,000.00 -
       $200,000.00 towards tenant improvements work for the property.  Any and
       all improvements must be to applicable City codes and must be done by
       permits with the City of Redwood City.

20.    SIGNAGE
       Landlord shall allow, at Tenant's sole cost and expense, the installation
       of building and monument signage subject to Landlord's and the City of
       Redwood City's approval which consent shall not be unreasonable withheld.

21.    LANDLORD'S OBLIGATIONS
       Landlord shall be solely responsible to maintain and repair building,
       structure, exterior walls, and roof throughout the Lease Term.

If any conflicts exist between the Lease and this Addendum, the terms of this
Addendum shall govern.

 Landlord:  Frederick & Doris Nicolini     Tenant:  iPrint, Inc.
                                                    a California Corporation
 By:       /s/ Frederick Nicolini          By:     /s/ Greg Korjeff
      -------------------------------           ------------------------------
 Its:      /s/ Doris Nicolini              Its:    VP Operations
      -------------------------------           ------------------------------
 Date:                                     Date:   9/21/99
      -------------------------------           ------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00000-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00000-of-00352.parquet"}]]