Document:

FY 2001 10K Exhibit 10.21

Lease
Agreement

By and Between

Aetna Life Insurance Company,

a Connecticut corporation

As Landlord

and

Cepheid,

a California corporation

As Tenant

Dated October ___, 2001

Table of Contents

	
Page

	
Basic Lease Information

1.Demise

2.Premises

3.Term

4.Rent

5.Utility Expenses

6.Late Charge

7.Letter of Credit

8.Security Deposit

9.Possession

10.Use of Premises

11.Acceptance of Premises

12.Surrender

13.Alterations and Additions

14.Maintenance and Repairs of Premises

15.Landlord's Insurance

16.Tenant's Insurance

17.Indemnification

18.Subrogation

19.Signs

20.Free From Liens

21.Entry By Landlord

22.Destruction and Damage

23.Condemnation

24.Assignment and Subletting

25.Tenant's Default

26.Landlord's Remedies

27.Landlord's Right to Perform Tenant's Obligations

28.Attorneys' Fees

29.Taxes

30.Effect of Conveyance

31.Tenant's Estoppel Certificate

32.Subordination

33.Environmental Covenants

34.Notices

35.Waiver

36.Holding Over

37.Successors and Assigns

38.Time

39.Brokers

40.Limitation of Liability

41.Financial Statements

42.Rules and Regulations

43.Mortgagee Protection

44.Entire Agreement

45.Interest

46.Construction

47.Representations and Warranties of Tenant

48.Security

49.Jury Trial Waiver

50.Parking

51.Option to Renew

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Exhibit
	
 

	
A
	
Diagram of the Premises

	
B
	
Diagram Showing Location of Unreserved Parking Spaces and Non-Conforming
Parking Spaces

	
C
	
Commencement and Expiration Date Memorandum

	
D
	
Rules and Regulations

	
E
	
Budgetary Cost Proposal

	
F
	
Form of Tenant Estoppel Certificate

	
G
	
Hazardous Materials Disclosure Certificate

	
H
	
Form of Subordination, Non-Disturbance and Attornment Agreement

	
I
	
Conceptual Plans for Initial Alterations

Lease Agreement

Basic Lease Information

	
Lease Date:
	
October ___, 2001

	
Landlord:
	
Aetna Life Insurance Company,

a Connecticut corporation

	
Landlord's Address:
	
c/o UBS Realty Investors llc

455 Market Street, Suite 1540

San Francisco, California 94105

Attention:Asset Manager,

Caribbean Drive

	
 
	
All notices sent to Landlord under this Lease shall be sent to the above
address, with copies to:
Insignia/ESG of California, Inc.

160 West Santa Clara Avenue, Suite 1350

San Jose, California 95113

Attention:Property Manager,

Caribbean Drive

	
Tenant:
	
Cepheid,

a California corporation

	
Tenant's Contact Person:
	
Cathy Smith, Chief Financial Officer

	
Tenant's Address:
	
904 Caribbean Drive

Sunnyvale, California 94089-1189

	
Premises Square Footage:
	
Approximately seventy-six thousand (76,000) rentable square feet

	
Premises Address:
	
904 Caribbean Drive

Sunnyvale, California 94089-1189

	
Project:
	
904 Caribbean Drive and 914-918 Caribbean Drive, Sunnyvale,
California, together with the land on which the Project is situated and all
Common Areas

	
Building (if not the same as the Project):
	
904 Caribbean Drive

Sunnyvale, California 94089-1189

	
Tenant's Proportionate Share of Project:
	
52% (based on approximately 146,400 Project square feet)

	
Tenant's Proportionate Share of Building:
	
100%

	
Length of Term:
	
One hundred twenty (120) months

	
Estimated Commencement Date:
	
March 1, 2002

	
Estimated Expiration Date:
	
February 29, 2012

	
Monthly Base Rent:
	
Months
	
Monthly Base Rent

	
 
	
1 - 2
	
$0.00

	
 
	
3 - 12
	
$110,200.00

	
 
	
13 - 24
	
$113,506.00

	
 
	
25 - 36
	
$116,911.18

	
 
	
37 - 48
	
$120,418.52

	
 
	
49 - 60
	
$124,031.07

	
 
	
61 - 72
	
$127,752.00

	
 
	
73 - 84
	
$131,584.56

	
 
	
85 - 96
	
$135,532.10

	
 
	
97 - 108
	
$139,598.06

	
 
	
109 - 120
	
$143,786.00

	
Prepaid Rent:
	
One Hundred Ten Thousand Two Hundred Dollars ($110,200.00)

	
Prepaid Additional Rent:
	
Twelve Thousand Six Hundred Fifty-Three Dollars ($12,653.00)

	
Month to which Prepaid Base Rent and Additional Rent will be
Applied:
	
Third (3rd) month of the Term

	
Letter of Credit:
	
Six Hundred Sixty-One Thousand Two Hundred Dollars ($661,200.00), subject to
reduction to One Hundred Forty-Three Thousand Seven Hundred Eighty-Six Dollars
($143,786.00) to the extent provided in Paragraph 7(b) of the Lease

	
Security Deposit:
	
Subject to the terms of Paragraphs 7(b) and 8 of the Lease, One Hundred
Forty-Three Thousand Seven Hundred Eighty-Six Dollars ($143,786.00)

	
Permitted Use:
	
General office use, research and development, storage and distribution and,
for manufacturer of lab equipment and reagents and/or computer hardware or
software components, light manufacturing

	
Unreserved Parking Spaces:
	
One hundred seventy-six (176) nonexclusive and undesignated parking
spaces

	
Brokers:
	
CPS (Landlord's Broker)

BT Commercial (Tenant's Broker)

	
Initial Alterations Allowance:
	
Two Million Two Hundred Eighty Thousand Dollars ($2,280,000.00)
(viz., $30.00 per square foot)

 

 

Lease Agreement

This Lease Agreement is made and entered into by and between
Landlord and Tenant on the Lease Date. The defined terms used in this Lease
which are defined in the Basic Lease Information attached to this Lease
Agreement ("Basic Lease Information") shall have the meaning and
definition given them in the Basic Lease Information. The Basic Lease
Information, the exhibits, the addendum or addenda described in the Basic Lease
Information, and this Lease Agreement are and shall be construed as a single
instrument and are referred to herein as the "Lease".

	Demise

In consideration for the rents and all other charges and payments payable
by Tenant, and for the agreements, terms and conditions to be performed by
Tenant in this Lease, Landlord does hereby lease to Tenant, and Tenant does
hereby hire and take from Landlord, the Premises described below (the
"Premises"), upon the agreements, terms and conditions of this Lease for
the Term hereinafter stated.

	Premises

The Premises demised by this Lease is located in that certain building
(the "Building") specified in the Basic Lease Information, which Building
is located in that certain real estate development (the "Project")
specified in the Basic Lease Information. The Premises has the address and
contains the square footage specified in the Basic Lease Information. The
location and dimensions of the Premises are depicted on
Exhibit A, which is attached hereto and incorporated herein
by this reference; provided, however, that any statement of square footage set
forth in this Lease, or that may have been used in calculating any of the
economic terms hereof, is an approximation which Landlord and Tenant agree is
reasonable and, except as expressly set forth in Paragraph 4(c)(iii) below,
no economic terms based thereon shall be subject to revision whether or not the
actual square footage is more or less. Tenant shall have the non-exclusive right
(in common with the other tenants, Landlord and any other person granted use by
Landlord) to use the Common Areas (as hereinafter defined), except that, with
respect to parking, Tenant shall have only the rights set forth in
Paragraph 50 below. No easement for light or air is incorporated in the
Premises. For purposes of this Lease, the term "Common Areas" shall mean
all areas and facilities outside the Premises and within the exterior boundary
line of the Project that are provided and designated by Landlord for the non-
exclusive use of Landlord, Tenant and other tenants of the Project and their
respective employees, guests and invitees.

Landlord has the right, in its sole discretion, from time to time, to:
(a) make changes to the Common Areas, including, without limitation,
changes in the location, size, shape and number of driveways, entrances, parking
spaces (it being understood that Landlord shall not reduce the number of
Unreserved Parking Spaces (as hereinafter defined) in the Project's parking
areas (the "Parking Areas"), except in connection with a casualty event
or a Condemnation (as hereinafter defined)); Parking Areas, ingress, egress,
direction of driveways, entrances, corridors and walkways; (b) close
temporarily any of the Common Areas for maintenance purposes so long as
reasonable access to the Premises remains available; (c) add additional
buildings and improvements to the Common Areas or remove existing buildings or
improvements therefrom; (d) use the Common Areas while engaged in making
additional improvements, repairs or alterations to the Project or any portion
thereof; and (e) do and perform any other acts or make any other changes
in, to or with respect to the Common Areas and the Project as Landlord may, in
its reasonable discretion, deem to be appropriate. In exercising its rights
under this paragraph, Landlord shall not materially unreasonably interfere with
Tenant's access to or use or enjoyment of the Premises or the Common Areas.

	Term

The term of this Lease (the "Term") shall be for the period of
months specified in the Basic Lease Information, commencing on the later to
occur of the following dates (the "Commencement Date"):

	The date that is five (5) months after the date
of this Lease; or
	March 1, 2002.

Notwithstanding the foregoing terms of this Paragraph 3, in the event
Tenant commences business operations in the Premises prior to the date that
would otherwise be the Commencement Date (as determined in accordance with
subparagraphs (a) and (b) above), then the Commencement Date shall be the
date on which Tenant commences business operations in the Premises; provided,
however, Tenant shall not be deemed to have commenced business operations in the
Premises in the event Tenant, prior to the date that would otherwise be the
Commencement Date, installs, tests or repairs in the Premises Tenant's equipment
to be used in its operations during the Term.

In the event the actual Commencement Date, as determined pursuant to the
foregoing, is a date other than the Estimated Commencement Date specified in the
Basic Lease Information, then Landlord and Tenant shall promptly execute a
Commencement and Expiration Date Memorandum in the form attached hereto as
Exhibit C, wherein the parties shall specify the Commencement
Date, the date on which the Term expires (the "Expiration Date") and the
date on which Tenant is to commence paying Rent.

	Rent

	Base Rent. Tenant shall pay to Landlord, in advance on the first
day of each month, without further notice or demand and without offset, rebate,
credit or deduction for any reason whatsoever, the monthly installments of rent
specified in the Basic Lease Information (the "Base Rent").

Upon execution of this Lease, Tenant shall pay to Landlord the Prepaid Rent
and first monthly installment of estimated Additional Rent (as hereinafter
defined) specified in the Basic Lease Information to be applied toward Base Rent
and Additional Rent for the month of the Term specified in the Basic Lease
Information.

As specified in the Basic Lease Information, Tenant shall have no obligation
to pay Base Rent during the first two (2) full calendar months of the Term
following the Commencement Date (the "Base Rent Abatement Period");
provided, however, that if prior to the sixth (6th) anniversary of the
Commencement Date, Tenant's right to possession is terminated by Landlord
because of Tenant's Default, Landlord may, at its option, (i) void the Base
Rent Abatement Period, and (ii) recover from Tenant, in addition to any
damages due Landlord under the terms and conditions of the Lease, Base Rent for
the entirety of the Base Rent Abatement Period.

	Additional Rent. This Lease is
intended to be a triple-net Lease with respect to Landlord; and subject to
Paragraph 14(b) below, the Base Rent owing hereunder is (i) to be paid
by Tenant absolutely net of all costs and expenses relating to Landlord's
ownership and operation of the Project and the Building, and (ii) not to be
reduced, offset or diminished, directly or indirectly, by any cost, charge or
expense payable hereunder by Tenant or by others in connection with the
Premises, the Building and/or the Project or any part thereof. The provisions of
this Paragraph 4(b) for the payment of Tenant's Proportionate Share(s) of
Expenses (as hereinafter defined) are intended to pass on to Tenant its share of
all such costs and expenses. In addition to the Base Rent, commencing on the
Commencement Date, Tenant shall pay to Landlord, in accordance with this
Paragraph 4, Tenant's Proportionate Share(s) of all costs and expenses paid
or incurred by Landlord in connection with the ownership, operation,
maintenance, management and repair of the Premises, the Building and/or the
Project or any part thereof (collectively, the "Expenses"), including,
without limitation, all the following items (the "Additional
Rent"):

	Taxes and Assessments. All real estate taxes and assessments, which
shall include any form of tax, assessment, fee, license fee, business license
fee, levy, penalty (if a result of Tenant's delinquency), or tax (other than net
income, estate, succession, inheritance, capital stock, capital levy, transfer
or franchise taxes), imposed by any authority having the direct or indirect
power to tax, or by any city, county, state or federal government or any
improvement or other district or division thereof, whether such tax is:
(A) determined by the area of the Premises, the Building and/or the Project
or any part thereof, or the Rent and other sums payable hereunder by Tenant or
by other tenants, including, but not limited to, any gross income or excise tax
levied by any of the foregoing authorities with respect to receipt of Rent
and/or other sums due under this Lease; (B) upon any legal or equitable
interest of Landlord in the Premises, the Building and/or the Project or any
part thereof; (C) upon this transaction or any document to which Tenant is
a party creating or transferring any interest in the Premises, the Building
and/or the Project; (D) levied or assessed in lieu of, in substitution for,
or in addition to, existing or additional taxes against the Premises, the
Building and/or the Project, whether or not now customary or within the
contemplation of the parties; or (E) surcharged against the Parking Areas.
Tenant and Landlord acknowledge that Proposition 13 was adopted by the
voters of the State of California in the June, 1978 election and that
assessments, taxes, fees, levies and charges may be imposed by governmental
agencies for such purposes as fire protection, street, sidewalk, road, utility
construction and maintenance, refuse removal and for other governmental services
which may formerly have been provided without charge to property owners or
occupants. It is the intention of the parties that all new and increased
assessments, taxes, fees, levies and charges due to any cause whatsoever are to
be included within the definition of real property taxes for purposes of this
Lease. "Taxes and Assessments" shall also include legal and consultants'
fees, costs and disbursements incurred in connection with proceedings to
contest, determine or reduce taxes, Landlord specifically reserving the right,
but not the obligation, to contest by appropriate legal proceedings the amount
or validity of any taxes; provided, however, Tenant shall be entitled to receive
a pro rata credit for any award or reduction in Taxes and Assessments obtained
by Landlord relating to Taxes and Assessments which have accrued and have been
paid by Tenant during the Term. Following the Expiration Date, Tenant shall keep
Landlord apprised of Tenant's address for receipt of payments to which Tenant
may be entitled under the preceding sentence.
	Insurance. All insurance premiums for the
Building and/or the Project or any part thereof, including premiums for "all
risk" fire and extended coverage insurance, commercial general liability
insurance, rent loss or abatement insurance, earthquake insurance, flood or
surface water coverage, and other insurance as Landlord deems necessary in its
sole discretion, and any deductibles paid under policies of any such insurance.
Notwithstanding the foregoing, in the event that Landlord shall sell, transfer
or otherwise convey the Project during the Term to a third-party investor who is
not affiliated, directly or indirectly, with Aetna Life Insurance Company,
UBS Realty Investors llc ("UBS") or any successor of UBS, or
any of the institutional investors for which UBS or any successor of UBS is then
acting as investment advisor, then for purposes of this subparagraph (ii),
Tenant shall only be required to pay premiums for insurance coverages and
deductibles under such coverages that are customarily maintained by
institutional owners and institutional managers of properties similar to and in
the vicinity of the Project. 
	Utilities. The cost of all Utilities (as
hereinafter defined) serving the Premises, the Building and the Project that are
not separately metered to Tenant, any assessments or charges for Utilities or
similar purposes included within any tax bill for the Building or the Project,
including, without limitation, entitlement fees, allocation unit fees, and/or
any similar fees or charges and any penalties (if a result of Tenant's
delinquency) related thereto, and any amounts, taxes, charges, surcharges,
assessments or impositions levied, assessed or imposed upon the Premises, the
Building or the Project or any part thereof, or upon Tenant's use and occupancy
thereof, as a result of any rationing of Utility services or restriction on
Utility use affecting the Premises, the Building and/or the Project, as
contemplated in Paragraph 5 below (collectively, "Utility
Expenses").

	Common Area Expenses. All costs to operate, maintain, repair,
replace, supervise, insure and administer the Common Areas, including supplies,
materials, labor and equipment used in or related to the operation and
maintenance of the Common Areas, including Parking Areas (including, without
limitation, all costs of resurfacing and restriping Parking Areas), signs and
directories on the Building and/or the Project, landscaping (including
maintenance contracts and fees payable to landscaping consultants), amenities,
sprinkler systems, sidewalks, walkways, driveways, curbs, lighting systems and
security services, if any, provided by Landlord for the Common Areas, and any
charges, assessments, costs or fees levied by any association or entity of which
the Project or any part thereof is a member or to which the Project or any part
thereof is subject. Notwithstanding the foregoing, Tenant shall not be required
to pay the cost of resurfacing and restriping the Parking Areas more than once
every three (3) years during the Term, except in connection with a casualty
event or a Condemnation affecting the Project.

	Parking Charges. Any parking charges or other costs levied, assessed
or imposed by, or at the direction of, or resulting from statutes or
regulations, or interpretations thereof, promulgated by any governmental
authority or insurer in connection with the use or occupancy of the Building or
the Project.
	Maintenance and Repair Costs. Except for
costs which are the responsibility of Landlord pursuant to Paragraph 14(b)
below, and subject to the terms of Paragraph 14(c) below, all costs to
maintain, repair, and replace the Premises, the Building and/or the Project or
any part thereof, including, without limitation, (A) all costs paid under
maintenance, management and service agreements such as contracts for janitorial,
security and refuse removal, (B) all costs to maintain, repair and replace
the roof coverings of the Building or the Project or any part thereof, and
(C) all costs to maintain, repair and replace the heating, ventilating, air
conditioning, plumbing, gas, sewer, drainage, electrical, fire protection and
life safety systems and other mechanical and electrical systems and equipment
serving the Premises, the Buildings and/or the Project or any part thereof
(collectively, the "Systems").

	Life Safety Costs. All costs to install, maintain, repair and replace
all life safety systems, including, without limitation, all fire alarm systems,
serving the Premises, the Building and/or the Project or any part thereof
(including all maintenance contracts and fees payable to life safety
consultants) whether such systems are or shall be required by Landlord's
insurance carriers, Laws (as hereinafter defined) or otherwise.
	Management and Administration. All costs for
management and administration of the Premises, the Building and/or the Project
or any part thereof (including, without limitation, a property management fee);
provided, however, that the foregoing management and administration costs shall
not exceed three percent (3%) of all income and other revenues attributable to
the Project.

Notwithstanding anything in this Paragraph 4(b) to the contrary, with
respect to all sums payable by Tenant as Additional Rent under this
Paragraph 4(b) for the replacement of any item or the construction of any
new item in connection with the physical operation of the Premises, the Building
or the Project (i.e., HVAC, roof membrane or coverings and Parking Areas)
which is a capital item the replacement of which would be capitalized under
Landlord's commercial real estate accounting practices (each, a "Capital
Improvement"), Tenant shall be required to pay only the prorata share of the
cost of the item falling due within the Term (including any Renewal Term) based
upon the amortization of the same over the useful life of such item, as
reasonably determined by Landlord.

Notwithstanding anything in this Paragraph 4(b) to the contrary, the
following shall not be treated as Expenses hereunder:

	The cost of Capital Improvements (except as set
forth above);
	Depreciation on the Building or Project, amortization or any other "non-
cash" items;
	All principal, interest and loan fees on any mortgage or deed of trust and
all rental payable under any ground or underlying lease;
	Except to the extent otherwise provided in this Lease to the contrary, the
cost of repairs or other work to the extent Landlord is actually reimbursed by
insurance or condemnation proceeds;
	Leasing commissions, attorneys' fees, costs, disbursements, and other
expenses incurred in connection with negotiations or disputes with tenants, or
in connection with leasing, renovating, or improving space for tenants or other
occupants or prospective tenants or other occupants of the Building or the
Project;
	Costs incurred in connection with the sale, financing or re-financing of the
Building and/or the Project;
	Fines, interest or penalties incurred in connection with the late payment of
Taxes and Assessments or other Expenses (except if the late payment is caused by
Tenant);
	General administrative expenses (such as corporate filing fees) incurred in
connection with the operation of the entity that constitutes "Landlord" (as
opposed to expenses related to the Premises and/or the Project);
	Costs, fees, damages and penalties incurred due to Landlord's intentional
violation of any terms or conditions of any other lease relating to the Building
or Project; and
	The costs of any goods or services provided separately to or performed
separately for and reimbursed by any other tenant of the Project.

Nothing contained in subparagraphs (1) through (10) above shall be
deemed to limit or affect any other obligations of Tenant under this Lease,
including, without limitation, the obligations set forth in Paragraphs 17,
28 and 33 below.

	Payment of Additional Rent.

	Upon commencement of this Lease, Landlord shall submit to Tenant an
estimate of monthly Additional Rent for the period between the Commencement Date
and the following December 31 and Tenant shall pay such estimated
Additional Rent on a monthly basis, in advance, on the first day of each month.
Tenant shall continue to make said monthly payments until notified by Landlord
of a change therein. If at any time or times Landlord determines that the
amounts payable under Paragraph 4(b) for the current year will vary from
Landlord's estimate given to Tenant, Landlord, by notice to Tenant, may revise
the estimate for such year, and subsequent payments by Tenant for such year
shall be based upon such revised estimate. In the event Landlord fails to notify
Tenant, prior to the commencement of any calendar year, of the monthly
installments of estimated Additional Rent that will be due hereunder during such
calendar year, then Tenant shall continue paying estimated installments of
Additional Rent in an amount equal to the prior year's installments until Tenant
receives notice of the actual amount of the installments due hereunder during
such calendar year. By April 1 of each calendar year, Landlord shall
endeavor to provide to Tenant a detailed statement (an "Expense
Statement") showing the actual Expenses and the actual Additional Rent due
to Landlord for the prior calendar year, to be prorated during the first year
from the Commencement Date. If the total of the monthly payments of Additional
Rent that Tenant has made for the prior calendar year is less than the actual
Additional Rent chargeable to Tenant for such prior calendar year, then Tenant
shall pay the difference in a lump sum within thirty (30) days after
receipt of such Expense Statement from Landlord. Any overpayment by Tenant of
Additional Rent for the prior calendar year shall be credited towards the Rent
next due.
	Landlord's then-current annual operating and capital budgets for the
Building and the Project or the pertinent part thereof shall be used for
purposes of calculating Tenant's monthly payment of estimated Additional Rent
for the current year, subject to adjustment as provided above. Landlord shall
make the final determination of Additional Rent for the year in which this Lease
terminates as soon as possible after termination of such year. Even though the
Term has expired and Tenant has vacated the Premises, Tenant shall remain liable
for payment of any amount due to Landlord in excess of the estimated Additional
Rent previously paid by Tenant, and, conversely, Landlord shall promptly return
to Tenant any overpayment. Failure of Landlord to submit Expense Statements as
called for herein shall not be deemed a waiver of Tenant's obligation to pay
Additional Rent as herein provided.
	With respect to Expenses which Landlord allocates to
the Building, Tenant's "Proportionate Share" shall be the percentage set
forth in the Basic Lease Information as Tenant's Proportionate Share of the
Building, as adjusted by Landlord from time to time for a remeasurement of or
changes in the physical size of the Premises or the Building, whether such
changes in size are due to an addition to or a sale or conveyance of a portion
of the Building or otherwise. With respect to Expenses which Landlord allocates
to the Project as a whole or to only a portion of the Project, Tenant's
"Proportionate Share" shall be, with respect to Expenses which Landlord
allocates to the Project as a whole, the percentage set forth in the Basic Lease
Information as Tenant's Proportionate Share of the Project and, with respect to
Expenses which Landlord allocates to only a portion of the Project, a percentage
calculated by Landlord from time to time in its reasonable discretion and
furnished to Tenant in writing, in either case as adjusted by Landlord from time
to time for a remeasurement of or changes in the physical size of the Premises
or the Project, whether such changes in size are due to an addition to or a sale
or conveyance of a portion of the Project or otherwise. Notwithstanding the
foregoing, Landlord may equitably adjust Tenant's Proportionate Share(s) for all
or part of any item of expense or cost reimbursable by Tenant that relates to a
repair, replacement, or service that benefits only the Premises or only a
portion of the Building and/or the Project or that varies with the occupancy of
the Building and/or the Project. Without limiting the generality of the
foregoing, Tenant understands and agrees that Landlord shall have the right to
adjust Tenant's Proportionate Share(s) of any Utility Expenses based upon
Tenant's use of the Utilities or similar services as reasonably estimated and
determined by Landlord based upon factors such as size of the Premises and
intensity of use of such Utilities by Tenant such that Tenant shall pay the
portion of such charges reasonably consistent with Tenant's use of such
Utilities and similar services.

	General Payment Terms. The Base Rent, Additional Rent and all
other sums payable by Tenant to Landlord hereunder, including, without
limitation, any late charges assessed pursuant to Paragraph 6 below and any
interest assessed pursuant to Paragraph 45 below, are referred to as the
"Rent". All Rent shall be paid without deduction, offset or abatement in
lawful money of the United States of America. Checks are to be made payable to
"Aetna Life Insurance Company" and shall be mailed to: 904-14 Caribbean Drive,
Department #44818, P.O. Box 39000, San Francisco, California 94139-
4818 or to such other person or place as Landlord may, from time to time,
designate to Tenant in writing. The Rent for any fractional part of a calendar
month at the commencement or termination of the Lease term shall be a prorated
amount of the Rent for a full calendar month based upon a thirty (30) day
month.

	Tenant's Right to Audit. Provided that Tenant is not in
Default under the terms of this Lease (nor is any event occurring which, with
the passage of time or the giving of notice, or both, would constitute a Default
hereunder), then Tenant shall have the right, at its sole expense, within
ninety (90) days after the delivery of the applicable Expense Statement to
review and audit Landlord's books and records regarding such Expense Statement
for the sole purpose of determining the accuracy of such Expense Statement. Such
review or audit shall be performed by Tenant's employees or by a nationally
recognized accounting firm that calculates its fees with respect to hours
actually worked (as opposed to a calculation based upon percentage of recoveries
or other incentive arrangement), shall take place during normal business hours
in the office of Landlord or Landlord's property manager and shall be completed
within three (3) business days after the commencement thereof. If Tenant
does not so review or audit Landlord's books and records, Landlord's Expense
Statement shall be final and binding upon Tenant. In the event that Tenant
determines on the basis of its review of Landlord's books and records that the
amount of Expenses paid by Tenant pursuant to this Paragraph 4 for the
period covered by such Expense Statement is less than or greater than the actual
amount properly payable by Tenant under the terms of this Lease, Tenant shall
promptly pay any deficiency to Landlord or, if Landlord concurs with the results
of such audit in its reasonable discretion, Landlord shall promptly refund any
excess payment to Tenant, as the case may be. 
	Utility Expenses

	Tenant shall pay the cost of all water, sewer use, sewer discharge fees
and permit costs and sewer connection fees, gas, heat, electricity, refuse pick-
up, janitorial service, telephone and all materials and services or other
utilities (collectively, "Utilities") billed or metered separately to the
Premises and/or Tenant, together with all taxes, assessments, charges and
penalties added to or included within such cost. Tenant acknowledges that the
Premises, the Building and/or the Project may become subject to the rationing of
Utility services or restrictions on Utility use as required by a public utility
company, governmental agency or other similar entity having jurisdiction
thereof. Tenant acknowledges and agrees that its tenancy and occupancy hereunder
shall be subject to such rationing or restrictions as may be imposed upon
Landlord, Tenant, the Premises, the Building and/or the Project, and Tenant
shall in no event be excused or relieved from any covenant or obligation to be
kept or performed by Tenant by reason of any such rationing or restrictions.
Tenant agrees to comply with reasonable energy conservation programs implemented
by Landlord by reason of rationing, restrictions or Laws.
	Subject only to the terms of Paragraph 5(c)
below, Landlord shall not be liable for any loss, injury or damage to property
caused by or resulting from any variation, interruption, or failure of Utilities
due to any cause whatsoever, or from failure to make any repairs or perform any
maintenance. Subject only to Paragraph 5(c) below, no temporary
interruption or failure of such services incident to the making of repairs,
alterations, improvements, or due to accident, strike, or conditions or other
events shall be deemed an eviction of Tenant or relieve Tenant from any of its
obligations hereunder. In no event shall Landlord be liable to Tenant for any
damage to the Premises or for any loss, damage or injury to any property therein
or thereon occasioned by bursting, rupture, leakage or overflow of any plumbing
or other pipes (including, without limitation, water, steam, and/or refrigerant
lines), sprinklers, tanks, drains, drinking fountains or washstands, or other
similar cause in, above, upon or about the Premises, the Building, or the
Project.
	Notwithstanding the terms of
Paragraph 5(b) above, in the event that, during the Term, there is an
actual failure or interruption of Utilities serving the Premises, which failure
or interruption results from the gross negligence of Landlord in the performance
of Landlord's duties under this Lease or the willful misconduct of Landlord or
Landlord's Agents and if, as a result of such failure or interruption, Tenant is
unable to conduct business operations in the Premises for a period in excess of
five (5) consecutive business days, then Tenant's obligation to pay Base
Rent shall be abated on a proportionate basis (based upon the proportion of the
Premises in which Tenant is unable to conduct business operations) commencing on
the sixth (6th) consecutive business day and continuing until the earlier
of the date on which the applicable service has been restored to the Premises or
the date on which Tenant is able to conduct business operations in the affected
portion of the Premises. Nothing contained herein shall be construed to
entitle Tenant to damages (whether consequential, punitive or otherwise) against
Landlord, UBS or Landlord's property manger as the result of the failure or
interruption of Utilities. Tenant acknowledges that Tenant is solely responsible
for the provision of Utility services to the Premises and that nothing contained
in this Paragraph 5(c) shall be construed to shift the responsibility for
the provision of Utility services to Landlord. Nothing contained in this
Paragraph 5(c) or in Paragraph 17(a) below shall constitute a waiver
of any rights Tenant might have against any independent contractor retained by
Landlord who causes an actual failure or interruption of Utilities serving the
Premises.

	Late
Charge

Notwithstanding any other provision of this Lease, Tenant hereby
acknowledges that late payment to Landlord of Rent, or other amounts due
hereunder will cause Landlord to incur costs not contemplated by this Lease, the
exact amount of which will be extremely difficult to ascertain. If any Rent or
other sums due from Tenant are not received by Landlord or by Landlord's
designated agent within five (5) days after their due date, then Tenant
shall pay to Landlord a late charge equal to five percent (5%) of such overdue
amount, plus any costs and attorneys' fees incurred by Landlord by reason of
Tenant's failure to pay Rent and/or other charges when due hereunder. Landlord
and Tenant hereby agree that such late charges represent a fair and reasonable
estimate of the cost that Landlord will incur by reason of Tenant's late payment
and shall not be construed as a penalty. Landlord's acceptance of such late
charges shall not constitute a waiver of Tenant's default with respect to such
overdue amount or estop Landlord from exercising any of the other rights and
remedies granted under this Lease.

	
Initials:
	
 
	
 

	
 
	
Landlord
	
Tenant

	Letter of
Credit

	Upon execution of this Lease, Tenant shall
deliver to Landlord, at Tenant's sole cost and expense, the Letter of Credit
described below in the amount of Six Hundred Sixty-One Thousand Two Hundred
Dollars ($661,200.00) (the "LC Face Amount") as security for
Tenant's performance of all of Tenant's covenants and obligations under this
Lease; provided, however, that neither the Letter of Credit nor any Letter of
Credit Proceeds (as defined below) shall be deemed an advance rent deposit or an
advance payment of any other kind, or a measure of Landlord's damages upon
Tenant's Default. Subject to Paragraph 7(b) below, the Letter of Credit
shall be maintained in effect from the date hereof through the date that is
forty-five (45) days after the Expiration Date (the "LC Termination
Date"). On the LC Termination Date, Landlord shall return to Tenant the
Letter of Credit and any Letter of Credit Proceeds then held by Landlord (other
than those Letter of Credit Proceeds Landlord is entitled to retain under the
terms of this Paragraph 7(a)); provided, however, that in no event shall
any such return be construed as an admission by Landlord that Tenant has
performed all of its obligations hereunder. Landlord shall not be required to
segregate the Letter of Credit Proceeds from its other funds and no interest
shall accrue or be payable to Tenant with respect thereto. Landlord may (but
shall not be required to) draw upon the Letter of Credit in such amount as is
necessary, and may use the proceeds therefrom (the "Letter of Credit
Proceeds") or any portion thereof, (i) to cure any Default under this
Lease and to compensate Landlord for any loss or damage Landlord incurs as a
result of such Default, (ii) to repair damage to the Premises caused by
Tenant, (iii) to clean the Premises upon termination of this Lease,
(iv) to reimburse Landlord for the payment of any amount which Landlord may
for any other purpose spend or be required to spend by reason of Tenant's
Default, and (v) to compensate Landlord for any other loss or damage which
Landlord may suffer by reason of Tenant's Default, it being understood that any
use of the Letter of Credit Proceeds shall not constitute a bar or defense to
any of Landlord's remedies set forth in Paragraph 26 below. In such event
and upon written notice from Landlord to Tenant specifying the amount of the
Letter of Credit Proceeds so utilized by Landlord and the particular purpose for
which such amount was applied, Tenant shall immediately deliver to Landlord an
amendment to the Letter of Credit or a replacement Letter of Credit so that the
Letter of Credit is again in the full LC Face Amount. Tenant's failure to
deliver such an amendment or replacement Letter of Credit to Landlord within
ten (10) days of Landlord's notice shall constitute an immediate Default
hereunder. In the event Landlord transfers its interest in this Lease, Landlord
shall transfer the Letter of Credit and any Letter of Credit Proceeds then held
by Landlord to Landlord's successor in interest, and thereafter Landlord shall
have no further liability to Tenant with respect to such Letter of Credit or
Letter of Credit Proceeds.
	Tenant shall have the right to the return of the
Letter of Credit or to a reduction in the LC Face Amount prior to the Expiration
Date solely to the extent set forth in this Paragraph 7(b). In the event
that Tenant is not in Default under this Lease at any time prior to the
fifth (5th) anniversary of the Commencement Date, then Tenant shall
have the right, at its election, to either (i) reduce the LC Face Amount to
one hundred forty three thousand, seven hundred eighty-six dollars
($143,786.00), or (ii) replace the Letter of Credit with a cash security
deposit in the amount of one hundred forty three thousand, seven hundred eighty-
six dollars ($143,786.00) (the "Security Deposit"). In the event Tenant
elects to replace the Letter of Credit with the Security Deposit in accordance
with the foregoing clause (ii), then Landlord shall promptly return the
Letter of Credit to Tenant following the delivery of the Security Deposit to
Landlord. If Tenant elects to provide Landlord with a cash Security Deposit,
then Landlord shall hold the Security Deposit and use or apply the same in
accordance with the terms of Paragraph 8 below.
	As used herein, Letter of Credit shall mean an unconditional, stand-by
irrevocable letter of credit (herein referred to as the "Letter of
Credit") issued by the San Francisco office of a major national bank
insured by the Federal Deposit Insurance Corporation with assets of not less
than Fifty Billion Dollars ($50,000,000,000.00) and otherwise reasonably
satisfactory to Landlord (the "Bank"), naming Landlord as beneficiary, in
the amount of the LC Face Amount, and otherwise in form and substance
satisfactory to Landlord. If at any time during the Term of this Lease, Landlord
notifies Tenant of Landlord's disapproval of the Bank (notwithstanding
Landlord's prior approval of such institution), then Tenant shall replace the
Letter of Credit with a substitute Letter of Credit issued by a bank approved by
Landlord and otherwise satisfying the requirements of this Paragraph 7. The
Letter of Credit shall be for a one-year term and shall provide: (i) that
Landlord may make partial and multiple draws thereunder, up to the face amount
thereof, (ii) that Landlord may draw upon the Letter of Credit up to the
full amount thereof and the Bank will pay to Landlord the amount of such draw
upon receipt by the Bank of a sight draft signed by Landlord or UBS, and
accompanied by a written certification from Landlord or UBS to the Bank stating
either that: (A) a Default has occurred and is continuing under this Lease
and any applicable grace period has expired or Landlord is otherwise entitled to
draw on the Letter of Credit, or (B) Landlord has not received notice from
the Bank at least thirty (30) days prior to the then current expiry date of
the Letter of Credit that the Letter of Credit will be renewed by the Bank for
at least one (1) year beyond the relevant annual expiration date or, in the
case of the last year of the Term, forty-five (45) days after the Expiration
Date, together with a replacement Letter of Credit or a modification to the
existing Letter of Credit effectuating such renewal, and Tenant has not
otherwise furnished Landlord with a replacement Letter of Credit as hereinafter
provided; and (iii) that the beneficial interest under the Letter of Credit
shall be freely transferable one or more times and, therefore, in the event of
Landlord's (or any successor Landlord's) assignment or other transfer of its
interest in this Lease, the Letter of Credit shall be freely transferable by
Landlord (or any successor Landlord), without recourse and without the payment
of any fee or consideration by Landlord, to the assignee or transferee of such
interest and the Bank shall confirm the same to Landlord (or such successor) and
such assignee or transferee. In the event that the Bank shall fail to
(y) notify Landlord that the Letter of Credit will be renewed for at least
one (1) year beyond the then applicable expiration date (or, in the case of
the last year of the Term, within forty-five (45) days of the Expiration Date),
and (z) deliver to Landlord a replacement Letter of Credit or a
modification to the existing Letter of Credit effectuating such renewal, and
Tenant shall not have otherwise delivered to Landlord, at least thirty (30)
days prior to the relevant annual expiration date, a replacement Letter of
Credit in the amount required hereunder and otherwise meeting the requirements
set forth above, then Landlord shall be entitled to draw on the Letter of Credit
as provided above, and shall hold the proceeds of such draw as Letter of Credit
Proceeds pursuant to Paragraph 7(a) above.

	Security
Deposit

In the event that Tenant is entitled to the return of the Letter of
Credit pursuant to Paragraph 7(b) above, then prior to Landlord's delivery
of the Letter of Credit to Tenant, Tenant shall deliver to Landlord the Security
Deposit in the amount specified in said Paragraph 7(b) as security for the
full and faithful performance of each and every term, covenant and condition of
this Lease. Landlord may use, apply or retain the whole or any part of the
Security Deposit as may be reasonably necessary (a) to cure any Default
under this Lease and to compensate Landlord for any loss or damage Landlord
incurs as a result of such Default, (b) to repair damage to the Premises
caused by Tenant, (c) to clean the Premises upon termination of this Lease,
(d) to reimburse Landlord for the payment of any amount which Landlord may
for any other purpose spend or be required to spend by reason of Tenant's
Default, and (e) to compensate Landlord for any other loss or damage which
Landlord may suffer by reason of Tenant's Default. Should Tenant faithfully and
fully comply with all of the terms, covenants and conditions of this Lease,
within thirty (30) days following the expiration of the Term, the Security
Deposit or any balance thereof shall be returned to Tenant or, at the option of
Landlord, to the last assignee of Tenant's interest in this Lease. Landlord
shall not be required to keep the Security Deposit separate from its general
funds and Tenant shall not be entitled to any interest on such deposit. If
Landlord so uses or applies all or any portion of the Security Deposit, within
five (5) days after written demand therefor Tenant shall deposit cash with
Landlord in an amount sufficient to restore the Security Deposit to the full
extent of the above amount, and Tenant's failure to do so shall be an immediate
Default under this Lease. In the event Landlord transfers its interest in this
Lease, Landlord shall transfer the then remaining amount of the Security Deposit
to Landlord's successor in interest, and thereafter Landlord shall have no
further liability to Tenant with respect to such Security Deposit.

	Possession

	Tenant's Right of Possession. Subject to Paragraph 9(b),
Tenant shall be entitled to possession of the Premises upon the Commencement
Date.
	Access Prior to Commencement Date.
Tenant shall be permitted to enter the Premises during the period commencing
on the Delivery Date (as hereinafter defined) and ending on the day preceding
the Commencement Date (such period being herein referred to as the "Early
Access Period") for the sole purpose of making the Initial Alterations (as
hereinafter defined) to the Premises in accordance with Paragraph 13 below
and installing, testing and repairing Tenant's production equipment; provided,
however, that Tenant's occupancy of the Premises during the Early Access Period
shall be subject to all of the terms, covenants and provisions of this Lease
(including, without limitation, the terms of Paragraphs 13, 16, 17 and 20
below), excluding only the covenant to pay Rent. Tenant shall not conduct
business operations in the Premises during the Early Access Period.
	Use of
Premises

	Permitted Use. The use of the Premises by
Tenant and Tenant's agents, advisors, employees, partners, shareholders,
directors, invitees and independent contractors (collectively, "Tenant's
Agents") shall be solely for the Permitted Use specified in the Basic Lease
Information and for no other use. Tenant shall not permit any objectionable or
unpleasant odor, smoke, dust, gas, noise or vibration to emanate from or near
the Premises. The Premises shall not be used to create any nuisance or trespass,
for any illegal purpose, for any purpose not permitted by Laws, for any purpose
that would invalidate the insurance or increase the premiums for insurance on
the Premises, the Building or the Project or for any purpose or in any manner
that would interfere with other tenants' use or occupancy of the Project. Tenant
agrees to pay to Landlord, as Additional Rent, any increases in premiums on
policies resulting from Tenant's Permitted Use or any other use or action by
Tenant or Tenant's Agents which increases Landlord's premiums or requires
additional coverage by Landlord to insure the Premises. Tenant agrees not to
overload the floor(s) of the Building.
	Compliance with Governmental Regulations and
Private Restrictions. Tenant and Tenant's Agents shall, at Tenant's
expense, faithfully observe and comply with (i) all municipal, state and
federal laws, statutes, codes, rules, regulations, ordinances, requirements, and
orders (collectively, "Laws"), now in force or which may hereafter be in
force pertaining to the Premises or Tenant's use of the Premises, the Buildings
or the Project, whether substantial in cost or otherwise; provided, however,
that except as provided in Paragraph 10(c) below, Tenant shall not be
required to make or, except as provided in Paragraph 4(b) above, pay for,
capital improvements to the Premises or the Buildings (including, without
limitation, the installation of fire sprinkler systems, the seismic
reinforcement of the Buildings or the removal of asbestos) not related to
Tenant's specific use of the Premises unless the requirement for such changes is
imposed as a result of any improvements or additions made or proposed to be made
at Tenant's request; (ii) all recorded covenants, conditions and
restrictions affecting the Project ("Private Restrictions") now in force
or which may hereafter be in force; and (iii) any and all rules and
regulations set forth in Exhibit D and any other reasonable
rules and regulations now or hereafter promulgated by Landlord related to
parking or the operation of the Premises, the Building and/or the Project
(collectively, the "Rules and Regulations"). The judgment of any court of
competent jurisdiction, or the admission of Tenant in any action or proceeding
against Tenant, whether Landlord be a party thereto or not, that Tenant has
violated any such Laws or Private Restrictions, shall be conclusive of that fact
as between Landlord and Tenant.
	Compliance with Americans with Disabilities
Act. Landlord and Tenant hereby agree and acknowledge that the Premises,
the Building and/or the Project may be subject to, among other Laws, the
requirements of the Americans with Disabilities Act, a federal law codified at
42 U.S.C.   12101 et seq., including, but not limited to,
Title III thereof, and all regulations and guidelines related thereto,
together with any and all laws, rules, regulations, ordinances, codes and
statutes now or hereafter enacted by local or state agencies having jurisdiction
thereof, including all requirements of Title 24 of the State of California,
as the same may be in effect on the date of this Lease and may be hereafter
modified, amended or supplemented (collectively, the "ADA"). Any
Alterations (as hereinafter defined) to be constructed hereunder shall be in
compliance with the requirements of the ADA, and all costs incurred for purposes
of compliance therewith shall be a part of and included in the costs of the
Alterations. Tenant shall be solely responsible for conducting its own
independent investigation of this matter and for ensuring that the design of all
Alterations strictly complies with all requirements of the ADA. Subject to
reimbursement pursuant to Paragraph 4 above, if any barrier removal work or
other work is required to the Building, the Common Areas or the Project under
the ADA, then such work shall be the responsibility of Landlord; provided,
however, that if such work is required under the ADA as a result of Tenant's use
of the Premises or any work or Alteration made to the Premises by or on behalf
of Tenant, then such work shall be performed by Landlord at the sole cost and
expense of Tenant. Except as otherwise expressly provided in this provision,
Tenant shall be responsible at its sole cost and expense for fully and
faithfully complying with all applicable requirements of the ADA, including,
without limitation, not discriminating against any disabled persons in the
operation of Tenant's business in or about the Premises, and offering or
otherwise providing auxiliary aids and services as, and when, required by the
ADA. Within ten (10) days after receipt, Tenant shall advise Landlord in
writing, and provide Landlord with copies of (as applicable), any notices
alleging violation of the ADA relating to any portion of the Premises, the
Building or the Project; any claims made or threatened orally or in writing
regarding noncompliance with the ADA and relating to any portion of the
Premises, the Building, or the Project; or any governmental or regulatory
actions or investigations instituted or threatened regarding noncompliance with
the ADA and relating to any portion of the Premises, the Building or the
Project. Tenant shall and hereby agrees to protect, defend (with counsel
acceptable to Landlord) and hold Landlord and Landlord's agents, advisors,
employees, partners, shareholders, directors, invitees or independent
contractors (collectively, "Landlord's Agents") harmless and indemnify
Landlord and Landlord's Agents from and against all liabilities, damages,
claims, losses, penalties, judgments, charges and expenses (including attorneys'
fees, costs of court and expenses necessary in the prosecution or defense of any
litigation including the enforcement of this provision) arising from or in any
way related to, directly or indirectly, Tenant's or Tenant's Agents' violation
or alleged violation of the ADA. Tenant agrees that the obligations of Tenant
herein shall survive the expiration or earlier termination of this
Lease.

	Acceptance of
Premises

	Except as expressly set forth in
Paragraphs 11(b) and 11(b) below, Landlord shall deliver possession of the
Premises to Tenant in its as-is condition on the Delivery Date and Landlord
shall have no obligation to improve, remodel or otherwise alter the Premises
prior to or during the Term. Subject to the previous sentence, Tenant hereby
accepts the Premises as suitable for Tenant's intended use and as being in good
and sanitary operating order, condition and repair, as is, and without
representation or warranty by Landlord as to the condition, use or occupancy
which may be made thereof. Any exceptions to the foregoing must be by written
agreement executed by Landlord and Tenant.
	Landlord shall cause the Systems located within or
serving the Premises to be in good working order, condition and repair as of the
Commencement Date. Any claims by Tenant under the preceding sentence shall be
made in writing not later than the ninetieth (90th) day after the
Commencement Date. In the event Tenant fails to deliver a written claim to
Landlord on or before such ninetieth (90th) day, then Landlord shall be
conclusively deemed to have satisfied its obligations under this
Paragraph 11(b).
	In conjunction with the Initial Alterations,
Landlord shall make certain improvements, as discussed with Tenant, to the
exterior of the Building and to the landscaping and paving at the Building
(collectively, "Landlord's Work"), as generally described in and
contemplated under the budgetary cost proposal prepared by McLarney
Construction, Inc., dated October 11, 2001 attached hereto as
Exhibit E. Landlord shall pay the costs for performing
Landlord's Work; provided, however, that the sum of the costs incurred by
Landlord pursuant to this Paragraph 11(c) shall not exceed One Hundred
Twelve Thousand Eight Hundred Seventy Dollars ($112,870.00). Any costs for
Landlord's Work in excess of One Hundred Twelve Thousand Eight Hundred Seventy
Dollars ($112,870.00) shall be debited against the Initial Alterations Allowance
for the Initial Alterations.

	Surrender

Tenant agrees that on the last day of the Term, or on the sooner
termination of this Lease, Tenant shall surrender the Premises to Landlord
(a) in good condition and repair (damage by casualty and normal wear and
tear excepted), but with all interior walls cleaned, any carpets cleaned, all
floors cleaned and waxed, all non-working light bulbs and ballasts replaced and
all roll-up doors and plumbing fixtures in good condition and working order, and
(b) otherwise in accordance with Paragraph 33(h). Normal wear and tear
shall not include any damage or deterioration to the floors of the Premises
arising from the use of forklifts in, on or about the Premises, and any damage
or deterioration that would have been prevented by reasonable maintenance by
Tenant, or Tenant otherwise performing all of its obligations under this Lease.
On or before the expiration or sooner termination of this Lease, Tenant shall
remove from the Premises, the Building and the Project and repair any damage
caused by such removal, (i) all of Tenant's Property (as hereinafter
defined) and Tenant's signage, and (ii) any Non-Permanent Alterations (as
hereinafter defined). Any of Tenant's Property not so removed by Tenant as
required herein shall be deemed abandoned and may be stored, removed, and
disposed of by Landlord at Tenant's expense, and Tenant waives all claims
against Landlord for any damages resulting from Landlord's retention and
disposition of such property; provided, however, that Tenant shall remain liable
to Landlord for all costs incurred in storing and disposing of such abandoned
property of Tenant. All Alterations except those which constitute Non-Permanent
Alterations shall remain in the Premises as the property of Landlord. If the
Premises are not surrendered at the end of the Term or sooner termination of
this Lease, and in accordance with the provisions of this Paragraph 12 and
Paragraph 33(h) below, Tenant shall continue to be responsible for the
payment of Rent (as the same may be increased pursuant to Paragraph 36
below) until the Premises are so surrendered in accordance with said Paragraphs,
and Tenant shall indemnify, defend and hold Landlord harmless from and against
any and all loss or liability resulting from delay by Tenant in so surrendering
the Premises including, without limitation, any loss or liability resulting from
any claim against Landlord made by any succeeding tenant or prospective tenant
founded on or resulting from such delay and losses to Landlord due to lost
opportunities to lease any portion of the Premises to any such succeeding tenant
or prospective tenant, together with, in each case, actual attorneys' fees and
costs.

	Alterations and Additions

	Tenant shall not make,
or permit to be made, any alteration, addition or improvement (hereinafter
referred to individually as an "Alteration" and collectively as the
"Alterations") to the Premises or any part thereof without the prior
written consent of Landlord, which consent shall not be unreasonably withheld or
delayed; provided, however, that Landlord shall have the right in its sole and
absolute discretion to consent or to withhold its consent to any Alteration
which affects the structural portions of the Premises, the Building or the
Project or adversely affects the Systems serving the Premises, the Building or
the Project or any portion thereof (collectively, "Structural
Alterations"). Notwithstanding the foregoing, Tenant shall have the right to
make Alterations (specifically excluding, however, Structural Alterations) to
the Premises with prior notice to but without the consent of Landlord, provided
that such Alterations are constructed and performed in full compliance with the
terms of Paragraphs 13(b) through 13(g) below and do not exceed Fifteen
Thousand Dollars ($15,000.00) in cost on an individual basis or for a series of
related Alterations or One Hundred Thousand Dollars ($100,000.00) in the
aggregate during any twelve (12) month period during the Term of this
Lease. 
	Any Alteration to the Premises shall be at Tenant's
sole cost and expense, in compliance with all applicable Laws and all
requirements requested by Landlord, including, without limitation, the
requirements of any insurer providing coverage for the Premises or the Project
or any part thereof, and in accordance with plans and specifications approved in
writing by Landlord, and shall be constructed and installed by a contractor
approved in writing by Landlord. As a further condition to giving consent, for
any individual Alteration or series of related Alterations estimated to cost in
excess of one hundred thousand dollars ($100,000), Landlord may require Tenant
to provide Landlord, at Tenant's sole cost and expense, a payment and
performance bond in form acceptable to Landlord, in a principal amount not less
than one hundred twenty-five percent (125%) of the estimated costs of such
Alterations, to ensure Landlord against any liability for mechanics' and
materialmen's liens and to ensure completion of work. Before Alterations may
begin, valid building permits or other permits or licenses required (including,
to the extent required by Laws, waste water or storm water discharge permits)
must be furnished to Landlord, and, once the Alterations begin, Tenant will
diligently and continuously pursue their completion. Landlord may monitor
construction of the Alterations and Tenant shall reimburse Landlord for its
reasonable costs (including, without limitation, the costs of any construction
manager retained by Landlord (the "Construction Management Fee"))
in reviewing plans and documents and in monitoring construction, which
reasonable costs shall not exceed four percent (4%) of the costs of the
Alterations. Tenant shall maintain during the course of construction, at its
sole cost and expense, builders' risk insurance for the amount of the completed
value of the Alterations on an all-risk non-reporting form covering all
improvements under construction, including building materials, and other
customary insurance coverages in amounts and against such risks as Landlord
shall reasonably require in connection with the Alterations. In addition to and
without limitation on the generality of the foregoing, Tenant shall ensure that
its contractor(s) (or Tenant on behalf of or in lieu of its contractors) procure
and maintain in full force and effect during the course of construction a "broad
form" commercial general liability and property damage policy of insurance
naming Landlord, UBS, Tenant and Landlord's lenders as additional insureds. The
minimum limit of coverage of the aforesaid policy shall be in the amount of not
less than Three Million Dollars ($3,000,000.00) for injury or death of one
person in any one accident or occurrence and in the amount of not less than
Three Million Dollars ($3,000,000.00) for injury or death of more than one
person in any one accident or occurrence, and shall contain a severability of
interest clause or a cross liability endorsement. Such insurance shall further
insure Landlord and Tenant against liability for property damage of at least One
Million Dollars ($1,000,000.00).
	All Alterations, including, but not limited to, heating, lighting,
electrical, air conditioning, fixed partitioning, drapery, wall covering and
paneling, built-in cabinet work and carpeting installations made by Tenant (but
specifically excluding Non-Permanent Alterations), together with all property
that has become an integral part of the Premises or the Building, shall at once
be and become the property of Landlord, and shall not be deemed trade fixtures
or Tenant's Property. If requested by Landlord, Tenant will pay, prior to the
commencement of construction, an amount reasonably determined by Landlord
necessary to cover the costs of demolishing such Alterations and/or the cost of
returning the Premises and the Building to its condition prior to such
Alterations.
	Any computer or telecommunications equipment or lines installed by Tenant
must be installed within the Premises and, at the request of Landlord made at
any time prior to the expiration of the Term, removed upon the expiration or
sooner termination of this Lease and the Premises restored to the same condition
as before such installation. Notwithstanding the foregoing, Tenant shall not be
required to remove any computer or telecommunications lines or wiring installed
as part of the Initial Alterations.
	Notwithstanding anything herein to the contrary, before installing any
equipment or lights which generate an undue amount of heat in the Premises, or
if Tenant plans to use any high-power usage equipment in the Premises, Tenant
shall obtain the written permission of Landlord. Landlord may refuse to grant
such permission unless Tenant agrees to pay the costs associated with the
installation of supplementary air conditioning capacity or electrical systems
necessitated by such equipment.
	Tenant agrees not to proceed to make any
Alterations, notwithstanding consent from Landlord to do so, until Tenant
notifies Landlord in writing of the date Tenant desires to commence construction
or installation of such Alterations and Landlord has approved such date in
writing, in order that Landlord may post appropriate notices to avoid any
liability to contractors or material suppliers for payment for Tenant's
improvements. Tenant will at all times permit such notices to be posted and to
remain posted until the completion of work.
	Landlord understands that Tenant desires to make
certain improvements to the Premises prior to the Commencement Date
(collectively, the "Initial Alterations"), all as generally described and
shown on the conceptual plans attached hereto as Exhibit I
(the "Conceptual Plans"). Landlord hereby approves the Conceptual Plans..
The Initial Alterations may include, without limitation, the modification of the
underground plumbing to make trenches to connect the existing drains, the
creation of openings in the roof of the Building to vent exhaust, and the
addition to the Premises of approximately ten thousand (10,000) square feet of
office space, a manufacturing/assembly area, an engineering area with lab space,
and a shipping/receiving area. Tenant intends to use only one or two of the
existing truck/dock doors in the Premises and Tenant shall have the right to
replace the remaining truck/dock doors with glass to increase the amount of
natural light into the Premises. Tenant shall be entitled to construct and
install the Initial Alterations in the Premises, subject to full compliance with
the terms and conditions of Paragraphs 13(a) through 13(f) above,
including, without limitation, the delivery to and approval by Landlord of
detailed plans and specifications for the Initial Alterations in accordance with
Paragraph 13(b) above. Landlord shall have a reasonable period of time to
review such plans and specifications, taking into account the complexity of the
proposed Initial Alterations and the need of Landlord to retain outside
consultants to review the same; provided, however, that in no event shall such
review period extend beyond thirty (30) days. Notwithstanding anything to
the contrary contained in Paragraph 13(b) above, the Construction
Management Fee charged for the Initial Alterations shall not exceed the amounts
calculated in accordance with the following schedule:

	
Aggregate Cost of Designing and
Constructing Initial Alterations ("Initial Alterations Cost")
	
Construction Management Fee

	
$0.00 - $10,000.00
	
0%

	
$10,001.00 - $100,000.00
	
4% of Initial Alterations Cost between $10,001.00 and $100,000.00

	
$100,001.00 and above
	
2% of Initial Alterations Cost above $100,000.00

By way of example, if the Initial Alterations Cost is Five
Hundred Thousand Dollars ($500,000.00), the Construction Management Fee shall be
Eleven Thousand Six Hundred Dollars ($11,600.00) (viz. the sum of
(1) 4% of the Initial Alterations Cost between $10,001.00 and $100,000.00,
plus (2) 2% of the Initial Alterations Cost between $100,001.00 and
$500,000.00). 

	Landlord shall provide an allowance for the planning and construction of the
Initial Alterations (such allowance to be applied against the costs and expenses
incurred by Tenant in compliance with this Paragraph 13) in the amount
specified in the Basic Lease Information ("Initial Alterations
Allowance"). The Initial Alterations Allowance shall be the maximum
contribution by Landlord for the cost of the Initial Alterations. Should the
actual Initial Alterations Cost be less than the Initial Alterations Allowance,
the Initial Alterations Allowance shall be reduced to an amount equal to the
actual Initial Alterations Cost. Landlord shall disburse the Initial
Alterations Allowance to Tenant in installments on a monthly basis during the
course of construction to pay for work actually in place at the Premises;
provided, however, that as a condition to the making of each such disbursement,
Landlord shall have the right to inspect the work in place and Tenant shall
deliver to Landlord invoices, receipts, lien waivers and other documents
reasonably requested by Landlord to substantiate the cost of the work performed
to date and the lien-free completion of the same in accordance with all Laws.
Landlord shall make each disbursement to Tenant within twenty-five (25)
days after Landlord's receipt of the documentation and information required
under the foregoing sentence relative to the requested disbursement.
	At the time of requesting Landlord's consent to any
Alterations, Tenant shall have the right to request that Landlord inform Tenant
whether such Alterations may remain in the Premises following, or must be
removed from the Premises prior to, the expiration or sooner termination of this
Lease. Any Alterations that Landlord requires to be so removed shall be referred
to herein as the "Non-Permanent Alterations." In the event Tenant
constructs or installs any Alterations without making the request of Landlord
contemplated under this Paragraph 13(i), or if for any reason whatsoever
Landlord does not specifically advise Tenant in writing that any Alterations may
remain in the Premises following the expiration or sooner termination of the
Lease, then such Alterations shall be deemed to be Non-Permanent Alterations for
all purposes of this Lease. Notwithstanding anything in this
Paragraph 13(i) to the contrary, in no event shall Tenant be required to
remove the Initial Alterations from the Premises upon the expiration of the
Term, and the Initial Alterations shall therefore not be deemed to be "Non-
Permanent Alterations."
	Maintenance and Repairs of Premises

	Maintenance by Tenant. Throughout the
Term, Tenant shall, at its sole expense, (i) keep and maintain in good
order and condition the Premises, and repair and replace every part thereof,
including glass, windows, window frames, window casements, skylights, interior
and exterior doors, door frames and door closers; interior lighting (including,
without limitation, light bulbs and ballasts), the plumbing and electrical
systems exclusively serving the Premises, all communications systems serving the
Premises, Tenant's signage, interior demising walls and partitions, equipment,
interior painting and interior walls and floors, and the roll-up doors, ramps
and dock equipment, including, without limitation, dock bumpers, dock plates,
dock seals, dock levelers and dock lights located in or on the Premises
(excepting only those portions of the Building or the Project to be maintained
by Landlord, as provided in Paragraph 14(b) below), (ii) furnish all
expendables, including light bulbs, paper goods and soaps, used in the Premises,
and (iii) keep and maintain in good order and condition, repair and replace
all of Tenant's security systems in or about or serving the Premises and, except
to the extent that Landlord notifies Tenant in writing of its intention to
arrange for such monitoring, cause the fire alarm systems serving the Premises
to be monitored by a monitoring or protective services firm approved by Landlord
in writing. Tenant shall not do nor shall Tenant allow Tenant's Agents to do
anything to cause any damage, deterioration or unsightliness to the Premises,
the Building or the Project.
	Maintenance by Landlord. Subject to
the provisions of Paragraphs 14(a), 22 and 23, and further subject to
Tenant's obligation under Paragraph 4 to reimburse Landlord, in the form of
Additional Rent, for Tenant's Proportionate Share(s) of the cost and expense of
the following items, Landlord agrees to repair and maintain the following items:
the roof coverings (provided that Tenant installs no additional air conditioning
or other equipment on the roof that damages the roof coverings, in which event
Tenant shall pay all costs to repair any damage to the roof structure and/or
coverings resulting from the presence of such additional equipment); the Systems
serving the Premises and the Building, excluding the plumbing and electrical
systems exclusively serving the Premises; and the Parking Areas, pavement,
landscaping, sprinkler systems, sidewalks, driveways, curbs, and lighting
systems in the Common Areas. Subject to the provisions of Paragraphs 14(a),
22 and 23, Landlord, at its own cost and expense (which costs and expenses shall
not be "Expenses" under this Lease), agrees to repair and maintain the following
items: the structural portions of the roof (specifically excluding the roof
coverings), the foundation, the footings, the floor slab, and the load bearing
walls and exterior walls of the Building (excluding any glass and any routine
maintenance, including, without limitation, any painting, sealing, patching and
waterproofing of such walls). Notwithstanding anything in this Paragraph 14
to the contrary, Landlord shall have the right to either repair or to require
Tenant to repair any damage to any portion of the Premises, the Building and/or
the Project caused by or created due to any act, omission, negligence or willful
misconduct of Tenant or Tenant's Agents and to restore the Premises, the
Building and/or the Project, as applicable, to the condition existing prior to
the occurrence of such damage; provided, however, that if Landlord requires
Tenant to perform such repairs, then Tenant shall have the right to use
insurance proceeds received by Landlord or Tenant in respect of such damage; and
provided, further, that in the event Landlord elects to perform such repair and
restoration work, Tenant shall reimburse Landlord upon demand for all costs and
expenses incurred by Landlord in connection therewith. Landlord's obligation
hereunder to repair and maintain is subject to the condition precedent that
Landlord shall have received written notice of the need for such repairs and
maintenance and a reasonable time to perform such repair and maintenance. Tenant
shall promptly report in writing to Landlord any defective condition known to it
which Landlord is required to repair, and failure to so report such defects
shall make Tenant responsible to Landlord for any liability incurred by Landlord
by reason of such condition.
	Special Provisions
regarding HVAC Maintenance during the Initial Period. Notwithstanding
the terms of Paragraphs 4(b)(vi) and 14(b) above, during the initial
eighteen (18) months following the Commencement Date (the "Initial
Period"), (i) in lieu of Tenant's obligation under
Paragraph 4(b)(vi) above to pay all amounts incurred by Landlord in
maintaining the HVAC systems serving the Premises, Tenant shall pay to Landlord,
on a bi-monthly (that is, every other month) basis, the fixed sum of one
thousand four hundred dollars ($1,400.00) to cover the cost of maintaining such
HVAC systems, and (ii) Tenant shall, in addition to its obligations under
clause (i) above, be responsible for the cost of replacing up to
two (2) HVAC units serving the Premises (which costs shall be amortized
over the useful life of the units in accordance with Paragraph 4(b) above).
In the event that more than two (2) HVAC units require replacement during
the Initial Period, then Landlord shall be solely responsible for the payment of
the costs of such replacement (and such costs shall not be deemed "Expenses"
hereunder). Landlord will determine in its reasonable discretion (in
consultation with Landlord's HVAC consultant and Tenant) whether a particular
HVAC unit needs to be replaced. The terms of this Paragraph 14(c) shall
lapse upon the expiration of the Initial Period and Tenant shall thereafter be
fully responsible for the performance of its obligations under
Paragraphs 4(b)(vi) and 14(b) above.

	Special Provisions regarding Parking Area Repairs.
Notwithstanding the terms of Paragraphs 4(b)(vi) and 14(b) above, promptly
following the Commencement Date, Landlord shall, at its sole cost and expense
(which costs shall not be deemed "Expenses" hereunder), repair the
"alligatoring" in the Parking Areas to the extent reasonably deemed necessary by
Landlord's consultant. In addition, promptly following the Commencement Date,
Landlord shall reseal and restripe the Parking Areas. The costs of such
resealing and restriping shall be amortized over the useful life of the
improvements in accordance with Paragraph 4(b) above). 

	Tenant's Waiver of Rights. Tenant hereby expressly waives all
rights to make repairs at the expense of Landlord or to terminate this Lease, as
provided for in California Civil Code Sections 1941 and 1942, and 1932(1),
respectively, and any similar or successor statute or law in effect or any
amendment thereof during the Term.
	Landlord's
Insurance

Landlord shall purchase and keep in force fire, extended coverage and
"all risk" insurance covering the Building and the Project. Tenant shall, at its
sole cost and expense, comply with any and all reasonable requirements
pertaining to the Premises, the Building and the Project of any insurer
necessary for the maintenance of reasonable fire and commercial general
liability insurance, covering the Building and the Project. Landlord, at
Tenant's cost, may maintain "Loss of Rents" insurance, insuring that the Rent
will be paid in a timely manner to Landlord for a period of at least
twelve (12) months if the Premises, the Building or the Project or any
portion thereof are destroyed or rendered unusable or inaccessible by any cause
insured against under this Lease.

	Tenant's Insurance

	Commercial General Liability Insurance.
Tenant shall, at Tenant's expense, secure and keep in force a "broad form"
commercial general liability insurance and property damage policy covering the
Premises, insuring Tenant, and naming Landlord, Landlord's investment advisors
and agents from time to time, including, without limitation, UBS Realty
Investors llc, and Landlord's lenders (collectively, "Landlord
Parties") as additional insureds, against any liability arising out of the
ownership, use, occupancy or maintenance of the Premises. The minimum limit of
coverage of such policy shall be in the amount of not less than Three Million
Dollars ($3,000,000.00) for injury or death of one person in any one accident or
occurrence and in the amount of not less than Three Million Dollars
($3,000,000.00) for injury or death of more than one person in any one accident
or occurrence, shall include an extended liability endorsement providing
contractual liability coverage (which shall include coverage for Tenant's
indemnification obligations in this Lease), and shall contain a severability of
interest clause or a cross liability endorsement. Such insurance shall further
insure Landlord and Tenant against liability for property damage of at least
Three Million Dollars ($3,000,000.00). Landlord may from time to time require
reasonable increases in any such limits if Landlord believes that additional
coverage is necessary or desirable. The limit of any insurance shall not limit
the liability of Tenant hereunder. No policy maintained by Tenant under this
Paragraph 16(a) shall contain a deductible greater than Five Thousand
Dollars ($5,000.00) (except that any policy of product liability insurance
maintained by Tenant may contain a deductible of up to Twenty Five Thousand
Dollars ($25,000.00)). No policy shall be cancelable or subject to
reduction of coverage without thirty (30) days' prior written notice to
Landlord, and loss payable clauses shall be subject to Landlord's approval. Such
policies of insurance shall be issued as primary policies and not contributing
with or in excess of coverage that Landlord may carry, by an insurance company
authorized to do business in the State of California for the issuance of such
type of insurance coverage and rated A:VIII or better in Best's Key Rating
Guide.
	Personal Property Insurance. Tenant
shall maintain in full force and effect on all of its personal property,
furniture, furnishings, trade or business fixtures and equipment (collectively,
"Tenant's Property") on the Premises, a policy or policies of fire and
extended coverage insurance with standard coverage endorsement to the extent of
the full replacement cost thereof. During the term of this Lease the proceeds
from any such policy or policies of insurance shall be used for the repair or
replacement of the fixtures and equipment so insured. Landlord shall have no
interest in the insurance upon Tenant's equipment and fixtures and will sign all
documents reasonably necessary in connection with the settlement of any claim or
loss by Tenant. Landlord will not carry insurance on Tenant's
possessions.

	Worker's Compensation Insurance; Employer's Liability
Insurance. Tenant shall, at Tenant's expense, maintain in full force and
effect worker's compensation insurance with not less than the minimum limits
required by law, and employer's liability insurance with a minimum limit of
coverage of One Million Dollars ($1,000,000.00).

	Evidence of Coverage. Tenant shall deliver to Landlord
certificates of insurance and true and complete copies of any and all
endorsements required herein for all insurance required to be maintained by
Tenant hereunder at the time of execution of this Lease by Tenant. Tenant shall,
at least thirty (30) days prior to expiration of each policy, furnish
Landlord with certificates of renewal or "binders" thereof. Each certificate
shall expressly provide that such policies shall not be cancelable or otherwise
subject to reduction in coverage except after thirty (30) days' prior
written notice to Landlord and the other parties named as additional insureds as
required in this Lease (except for cancellation for nonpayment of premium, in
which event cancellation shall not take effect until at least ten (10)
days' notice has been given to Landlord).
	Indemnification

	Of Landlord. Tenant shall indemnify and hold harmless Landlord
and Landlord's Agents against and from any and all claims, liabilities,
judgments, costs, demands, causes of action and expenses (including, without
limitation, reasonable attorneys' fees) (collectively, "Claims") arising
from (i) the use of the Premises, the Building or the Project by Tenant or
Tenant's Agents, or from any activity done, permitted or suffered by Tenant or
Tenant's Agents in or about the Premises, the Building or the Project, and
(ii) any act, neglect, fault, willful misconduct or omission of Tenant or
Tenant's Agents, or from any breach or default in the terms of this Lease by
Tenant or Tenant's Agents, and (iii) any action or proceeding brought on
account of any matter in items (i) or (ii); provided, however, that the
foregoing indemnity shall not extend to any Claims resulting from the gross
negligence or willful misconduct of Landlord. If any action or proceeding is
brought against Landlord by reason of any such claim, upon notice from Landlord,
Tenant shall defend the same at Tenant's expense by counsel reasonably
satisfactory to Landlord. As a material part of the consideration to Landlord,
Tenant hereby releases Landlord and Landlord's Agents from responsibility for,
waives its entire claim of recovery for and assumes all risk of (A) damage
to property or injury to persons in or about the Premises, the Building or the
Project from any cause whatsoever (except that which is caused by the gross
negligence or willful misconduct of Landlord or Landlord's Agents or by the
failure of Landlord to observe any of the terms and conditions of this Lease, if
such failure has persisted for a period of thirty (30) days after written
notice of such failure or such longer period as shall be reasonably required to
cure such failure if such failure cannot reasonably be cured within the
aforesaid thirty (30) day period), or (B) loss resulting from business
interruption or loss of income at the Premises. The obligations of Tenant under
this Paragraph 17 shall survive any termination of this Lease.

	No Impairment of Insurance. The foregoing indemnity shall not
relieve any insurance carrier of its obligations under any policies required to
be carried by either party pursuant to this Lease, to the extent that such
policies cover the peril or occurrence that results in the claim that is subject
to the foregoing indemnity.
	Subrogation

Landlord and Tenant hereby mutually waive any claim against the other and
its Agents for any loss or damage to any of their property located on or about
the Premises, the Building or the Project that is caused by or results from
perils covered by property insurance carried by the respective parties, to the
extent of the proceeds of such insurance actually received with respect to such
loss or damage, whether or not due to the negligence of the other party or its
Agents. Because the foregoing waivers will preclude the assignment of any claim
by way of subrogation to an insurance company or any other person, each party
now agrees to immediately give to its insurer written notice of the terms of
these mutual waivers and shall have their insurance policies endorsed to prevent
the invalidation of the insurance coverage because of these waivers. Nothing in
this Paragraph 18 shall relieve a party of liability to the other for
failure to carry insurance required by this Lease.

	Signs

Tenant shall not place or permit to be placed in, upon, or about the
Premises, the Building or the Project any exterior lights, decorations,
balloons, flags, pennants, banners, advertisements or notices, or erect or
install any signs, windows or door lettering, placards, decorations, or
advertising media of any type which can be viewed from the exterior the Premises
without obtaining Landlord's prior written consent or without complying with
Landlord's signage criteria, as the same may be modified by Landlord from time
to time, and with all applicable Laws, and will not conduct, or permit to be
conducted, any sale by auction on the Premises or otherwise on the Project.
Tenant shall remove any sign, advertisement or notice placed on the Premises,
the Building or the Project by Tenant upon the expiration of the Term or sooner
termination of this Lease, and Tenant shall repair any damage or injury to the
Premises, the Building or the Project caused thereby, all at Tenant's expense.
If any signs are not removed, or necessary repairs not made, Landlord shall have
the right to remove the signs and repair any damage or injury to the Premises,
the Building or the Project at Tenant's sole cost and expense.

	Free From Liens

Tenant shall keep the Premises, the Building and the Project free from
any liens arising out of any work performed, material furnished or obligations
incurred by or for Tenant. In the event that Tenant shall not, within
fifteen (15) days following the imposition of any such lien, cause the lien
to be released of record by payment or posting of a proper bond, Landlord shall
have in addition to all other remedies provided herein and by law the right but
not the obligation to cause same to be released by such means as it shall deem
proper, including payment of the claim giving rise to such lien. All such sums
paid by Landlord and all expenses incurred by it in connection therewith
(including, without limitation, reasonable attorneys' fees) shall be payable to
Landlord by Tenant upon demand. Landlord shall have the right at all times to
post and keep posted on the Premises any notices permitted or required by law or
that Landlord shall deem proper for the protection of Landlord, the Premises,
the Building and the Project, from mechanics' and materialmen's liens. Tenant
shall give to Landlord at least five (5) business days' prior written
notice of commencement of any repair or construction on the Premises.

	Entry By
Landlord

Tenant shall permit Landlord and Landlord's Agents to enter into and upon
the Premises at all reasonable times, upon at least twenty-four (24) hours
advance notice (except in the case of an emergency, for which no notice shall be
required), and subject to Tenant's reasonable security arrangements, for the
purpose of inspecting the same or showing the Premises to prospective
purchasers, lenders or tenants or to alter, improve, maintain and repair the
Premises or the Building as required or permitted by Landlord under the terms
hereof, or for any other business purpose, without any rebate of Rent and
without any liability to Tenant for any loss of occupation or quiet enjoyment of
the Premises thereby occasioned (except for actual damages resulting from the
gross negligence or willful misconduct of Landlord); and Tenant shall permit
Landlord to post notices of non-responsibility and ordinary "for sale" or "for
lease" signs. No such entry shall be construed to be a forcible or unlawful
entry into, or a detainer of, the Premises, or an eviction of Tenant from the
Premises. Landlord may temporarily close entrances, doors, corridors, elevators
or other facilities without liability to Tenant by reason of such closure in the
case of an emergency and when Landlord otherwise deems such closure necessary to
prevent injury to persons or damage to property.

	Destruction and Damage

	If the Premises are damaged by fire or other perils covered by extended
coverage insurance, Landlord shall, at Landlord's option:

	In the event of total destruction (which shall mean destruction or damage in
excess of twenty-five percent (25%) of the full insurable value thereof) of the
Premises, elect either to commence promptly to repair and restore the Premises
and prosecute the same diligently to completion, in which event this Lease shall
remain in full force and effect; or not to repair or restore the Premises, in
which event this Lease shall terminate. Landlord shall give Tenant written
notice of its intention and the amount of time reasonably anticipated to repair
or restore the Premises within sixty (60) days after the date (the
"Casualty Discovery Date") Landlord obtains actual knowledge of such
destruction. If Landlord elects not to restore the Premises, this Lease shall be
deemed to have terminated as of the date of such total destruction.
	In the event of a partial destruction (which shall mean destruction or
damage to an extent not exceeding twenty-five percent (25%) of the full
insurable value thereof) of the Premises for which Landlord will receive
insurance proceeds sufficient to cover the cost to repair and restore such
partial destruction and, if the damage thereto is such that the Premises may be
substantially repaired or restored to its condition existing immediately prior
to such damage or destruction within one hundred eighty (180) days from the
Casualty Discovery Date, Landlord shall commence and proceed diligently with the
work of repair and restoration, in which event the Lease shall continue in full
force and effect. If such repair and restoration requires longer than one
hundred eighty (180) days or if the insurance proceeds therefor (plus any
amounts Tenant may elect or is obligated to contribute) are not sufficient to
cover the cost of such repair and restoration, Landlord may elect either to so
repair and restore, in which event the Lease shall continue in full force and
effect, or not to repair or restore, in which event the Lease shall terminate.
In either case, Landlord shall give written notice to Tenant of its intention
and the amount of time reasonably anticipated to repair or restore the Premises
within sixty (60) days after the Casualty Discovery Date. If Landlord
elects not to restore the Premises, this Lease shall be deemed to have
terminated as of the date of such partial destruction.
	Notwithstanding anything to the contrary contained in this Paragraph, in the
event of substantial damage to the Premises (i.e., damage which cannot be
repaired within sixty (60) days after the Casualty Discovery Date) occurring
during the last twelve (12) months of the Term, Landlord and Tenant shall
each have the right to terminate this Lease by written notice of such election
given to the other party within thirty (30) days after the date on which
Landlord notifies Tenant of the projected duration of the restoration
period.

	If the Premises are damaged by any peril not covered by extended coverage
insurance, and the cost to repair such damage exceeds any amount Tenant is
required or may agree to contribute, Landlord may elect either to commence
promptly to repair and restore the Premises and prosecute the same diligently to
completion, in which event this Lease shall remain in full force and effect; or
not to repair or restore the Premises, in which event this Lease shall
terminate. Landlord shall give Tenant written notice of its intention within
sixty (60) days after the Casualty Discovery Date. If Landlord elects not
to restore the Premises, this Lease shall be deemed to have terminated as of the
date on which Tenant surrenders possession of the Premises to Landlord, except
that if the damage to the Premises materially impairs Tenant's ability to
continue its business operations in the Premises, then this Lease shall be
deemed to have terminated as of the date such damage occurred.
	Notwithstanding anything to the contrary in this Paragraph 22, Landlord
shall have the option to terminate this Lease, exercisable by notice to Tenant
within sixty (60) days after the Casualty Discovery Date, in each of the
following instances:

	If more than twenty-five percent (25%) of the full insurable value of the
Building or the Project is damaged or destroyed, regardless of whether or not
the Premises are destroyed.
	If the Building or the Project or any portion thereof is damaged or
destroyed and the repair and restoration of such damage requires longer than one
hundred eighty (180) days from the Casualty Discovery Date.
	If the Building or the Project or any portion thereof is damaged or
destroyed and the insurance proceeds therefor plus any amount Tenant is required
or may agree to contribute are not sufficient to cover the costs of repair and
restoration.
	If the Building or the Project or any portion thereof is substantially
damaged or destroyed (i.e., damage which cannot be repaired within sixty
(60) days after the Casualty Discovery Date) during the last twelve (12)
months of the Term.

	If the Premises are damaged or destroyed and the repair or restoration of
the same cannot be completed within two hundred seventy (270) days after the
Casualty Discovery Date, then Tenant may elect to terminate this Lease by
written notice of such election given to Landlord within thirty (30) days
after the date on which Landlord notifies Tenant of the projected duration of
the restoration period. In such event, this Lease shall terminate effective as
of the date Tenant vacates the Premises.
	In the event of repair and restoration as herein provided, the monthly
installments of Base Rent shall be abated proportionately in the ratio which
Tenant's use of the Premises is impaired during the period of such repair or
restoration; provided, however, that Tenant shall not be entitled to such
abatement to the extent that such damage or destruction resulted from the
negligence or willful misconduct of Tenant or Tenant's Agents. Except as
expressly provided in the immediately preceding sentence with respect to
abatement of Base Rent, Tenant shall have no claim against Landlord for, and
hereby releases Landlord and Landlord's Agents from responsibility for and
waives its entire claim of recovery for any cost, loss or expense suffered or
incurred by Tenant as a result of any damage to or destruction of the Premises,
the Building or the Project or the repair or restoration thereof, including,
without limitation, any cost, loss or expense resulting from any loss of use of
the whole or any part of the Premises, the Building or the Project and/or any
inconvenience or annoyance occasioned by such damage, repair or
restoration.
	If Landlord is obligated to or elects to repair or restore as herein
provided, Landlord shall repair or restore only the initial tenant improvements,
if any, constructed by Landlord in the Premises pursuant to the terms of this
Lease, substantially to their condition existing immediately prior to the
occurrence of the damage or destruction; and Tenant shall promptly repair and
restore, at Tenant's expense, Tenant's Alterations which were not constructed by
Landlord.
	Tenant hereby waives the provisions of California Civil Code
Section 1932(2) and Section 1933(4) which permit termination of a
lease upon destruction of the leased premises, and the provisions of any similar
law now or hereinafter in effect, and the provisions of this Paragraph 22
shall govern exclusively in case of such destruction.
	Condemnation

	If twenty-five percent (25%) or more of either the Premises, the
Building or the Project or the Parking Areas for the Building or the Project is
taken for any public or quasi-public purpose by any lawful governmental power or
authority, by exercise of the right of appropriation, inverse condemnation,
condemnation or eminent domain, or sold to prevent such taking (each such event
being referred to as a "Condemnation"), Landlord may, at its option,
terminate this Lease as of the date title vests in the condemning party. If
twenty-five percent (25%) or more of the Premises is taken and if the Premises
remaining after such Condemnation and any repairs by Landlord would be
untenantable for the conduct of Tenant's business operations, or if twenty-five
percent (25%) or more of the Unreserved Parking Spaces allocated to Tenant are
taken (and provided that Landlord is not able to provide Tenant with alternate
spaces within a reasonable proximity to the Premises), Tenant shall have the
right to terminate this Lease as of the date title vests in the condemning
party. If either party elects to terminate this Lease as provided herein, such
election shall be made by written notice to the other party given within
thirty (30) days after the nature and extent of such Condemnation have been
finally determined. If neither Landlord nor Tenant elects to terminate this
Lease to the extent permitted above, Landlord shall promptly proceed to restore
the Premises, to the extent of any Condemnation award received by Landlord, to
substantially the same condition as existed prior to such Condemnation, allowing
for the reasonable effects of such Condemnation, and a proportionate abatement
shall be made to the Base Rent corresponding to the time during which, and to
the portion of the floor area of the Premises (adjusted for any increase thereto
resulting from any reconstruction) of which, Tenant is deprived on account of
such Condemnation and restoration, as reasonably determined by Landlord. Except
as expressly provided in the immediately preceding sentence with respect to
abatement of Base Rent, Tenant shall have no claim against Landlord for, and
hereby releases Landlord and Landlord's Agents from responsibility for and
waives its entire claim of recovery for any cost, loss or expense suffered or
incurred by Tenant as a result of any Condemnation or the repair or restoration
of the Premises, the Building or the Project or the Parking Areas for the
Building or the Project following such Condemnation, including, without
limitation, any cost, loss or expense resulting from any loss of use of the
whole or any part of the Premises, the Building, the Project or the Parking
Areas and/or any inconvenience or annoyance occasioned by such Condemnation,
repair or restoration. The provisions of California Code of Civil Procedure
Section 1265.130, which allows either party to petition the Superior Court
to terminate the Lease in the event of a partial taking of the Premises, the
Building or the Project or the Parking Areas for the Building or the Project,
and any other applicable law now or hereafter enacted, are hereby waived by
Tenant.
	Landlord shall be entitled to any and all compensation, damages, income,
rent, awards, or any interest therein whatsoever which may be paid or made in
connection with any Condemnation, and Tenant shall have no claim against
Landlord for the value of any unexpired term of this Lease or otherwise;
provided, however, that Tenant shall be entitled to receive any award separately
allocated by the condemning authority to Tenant for Tenant's relocation expenses
or the value of Tenant's Property (specifically excluding fixtures, Alterations
and other components of the Premises which under this Lease or by law are or at
the expiration of the Term will become the property of Landlord), provided that
such award does not reduce any award otherwise allocable or payable to
Landlord.

	Assignment and Subletting

	Tenant shall not voluntarily or by operation of law, (i) mortgage,
pledge, hypothecate or encumber this Lease or any interest herein,
(ii) assign or transfer this Lease or any interest herein, sublease the
Premises or any part thereof, or any right or privilege appurtenant thereto, or
allow any other person (the employees and invitees of Tenant excepted) to occupy
or use the Premises, or any portion thereof, without first obtaining the written
consent of Landlord, which consent shall not be unreasonably withheld; provided,
however, that (A) Tenant is not then in Default under this Lease nor is any
event then occurring which with the giving of notice or the passage of time, or
both, would constitute a Default hereunder, and (B) the proposed transfer
is not an assignment or a sublease under a previous assignment or an existing
sublease. Any Sale Transaction (as hereinafter defined) shall be deemed to be an
assignment under this Lease. When Tenant requests Landlord's consent to such
assignment or subletting, it shall notify Landlord in writing of the name and
address of the proposed assignee or subtenant and the nature and character of
the business of the proposed assignee or subtenant and shall provide (1) a
fully completed Hazardous Materials Disclosure Certificate for such assignee or
subtenant in the form of Exhibit G hereto, and
(2) current and prior financial statements for the proposed assignee or
subtenant, which financial statements shall be audited to the extent available
and shall in any event be prepared in accordance with generally accepted
accounting principles consistently applied ("GAAP"). Tenant shall also
provide Landlord with a copy of the proposed sublease or assignment agreement,
including all material terms and conditions thereof. Landlord shall have the
option, to be exercised within thirty (30) days of receipt of the
foregoing, to (w) terminate this Lease as of the commencement date stated
in the proposed sublease or assignment, (x) sublease or take an assignment,
as the case may be, from Tenant of the interest, or any portion thereof, in this
Lease and/or the Premises that Tenant proposes to assign or sublease, on the
same terms and conditions as stated in the proposed sublet or assignment
agreement, (y) consent to the proposed assignment or sublease, or
(z) refuse its consent to the proposed assignment or sublease, provided
that such consent shall not be unreasonably withheld so long as Tenant is not
then in Default under this Lease nor is any event then occurring which with the
giving of notice or the passage of time, or both, would constitute a Default
hereunder. Notwithstanding the terms of the foregoing clause (w), Landlord
shall have the right to terminate this Lease under said clause (w) only if
Tenant proposes to enter into an assignment of this Lease or a sublease
affecting more than fifty percent (50%) of the Premises for more than fifty
percent (50%) of the then-remaining Term. Subject to the foregoing, in the event
Landlord elects to terminate this Lease or sublease or take an assignment from
Tenant of the interest, or portion thereof, in the Lease and/or the Premises
that Tenant proposes to assign or sublease as provided in the foregoing
clauses (w) and (x), respectively, then Landlord shall have the additional
right to negotiate directly with Tenant's proposed assignee or subtenant and to
enter into a direct lease or occupancy agreement with such party on such terms
as shall be acceptable to Landlord in its sole and absolute discretion, and
Tenant hereby waives any claims against Landlord related thereto, including,
without limitation, any claims for any compensation or profit related to such
lease or occupancy agreement. For purposes of this Lease, the following terms
shall have the meanings set forth below:

	"Capital Stock" means, with respect to any Person, any and all
shares, interests, participations, rights in, or other equivalents (however
designated and whether voting or non-voting) of, such Person's capital stock and
any and all rights, warrants or options exchangeable for or convertible into
such capital stock (but excluding any debt security whether or not it is
exchangeable for or convertible into such capital stock).
	"Person" means any individual, firm, corporation, partnership,
limited liability company, trust, incorporated or unincorporated association,
joint venture, joint stock company, governmental body or other entity of any
kind.
	"Sale Transaction" shall mean: (A) (1) the merger or
consolidation of the Tenant into or with one or more Persons, (2) the
merger or consolidation of one or more Persons into or with the Tenant or
(3) a tender offer or other business combination, if, in the case of
clause (1), (2) or (3) the stockholders of the Tenant prior to such merger
or consolidation do not retain at least a majority of the voting power of the
surviving Person; or (B) the voluntary sale, conveyance, exchange or
transfer to another Person, in one transaction or a series of transactions, of
(1) the voting Capital Stock of the Tenant if, after such sale, conveyance,
exchange or transfer, the stockholders of the Tenant prior to such sale,
conveyance, exchange or transfer do not retain at least a majority of the voting
power of the Tenant or (2) all or substantially all of the assets of the
Tenant.

	Without otherwise limiting the criteria upon which Landlord may withhold its
consent, Landlord shall be entitled to consider all reasonable criteria
including, but not limited to, the following: (i) whether or not the
proposed subtenant or assignee is engaged in a business which, and the use of
the Premises will be in an manner which, is in keeping with the then character
and nature of all other tenancies in the Project; (ii) whether the use to
be made of the Premises by the proposed subtenant or assignee will conflict with
any so-called "exclusive" use then in favor of any other tenant of the Building
or the Project, and whether such use would be prohibited by any other portion of
this Lease, including, but not limited to, any rules and regulations then in
effect, or under applicable Laws, and whether such use imposes a greater load
upon the Premises and the Building and Project services then imposed by Tenant;
(iii) the business reputation of the proposed individuals who will be
managing and operating the business operations of the assignee or subtenant, and
the long-term financial and competitive business prospects of the proposed
assignee or subtenant; and (iv) the creditworthiness and financial
stability of the proposed assignee or subtenant in light of the responsibilities
involved. In any event, Landlord may withhold its consent to any assignment or
sublease, if (A) the actual use proposed to be conducted in the Premises or
portion thereof conflicts with the provisions of Paragraph 10(a) or (b)
above or with any other lease which restricts the use to which any space in the
Building or the Project may be put, or (B) the proposed assignment or
sublease requires Alterations to the Premises or portions thereof other than
Alterations approved by Landlord pursuant to Paragraph 13 above.
	If Landlord approves an assignment or subletting as herein provided, Tenant
shall pay to Landlord, as Additional Rent, fifty percent (50%) of the
difference, if any, between (i) the Base Rent plus Additional Rent
allocable to that part of the Premises affected by such assignment or sublease
pursuant to the provisions of this Lease, and (ii) the rent and any
additional rent payable by the assignee or sublessee to Tenant, less reasonable
legal fees and reasonable and customary market-based leasing commissions, if
any, incurred by Tenant in connection with such assignment or sublease, which
fees and commissions shall, for purposes of the aforesaid calculation, be
amortized on a straight-line basis over the term of such assignment or sublease.
In any subletting undertaken by Tenant, Tenant shall initially list or offer the
sublease premises at a rental rate not less than Landlord's then current asking-
rate for similarly situated space in the Project (the "Asking Rate") and
shall diligently, for a reasonable period of time, seek to obtain not less than
the Asking Rate for the space so sublet. In any assignment of this Lease in
whole or in part, Tenant shall initially list or offer the premises subject to
such assignment at a rate not less than the Asking Rate and shall diligently,
for a reasonable period of time, seek to obtain from the assignee consideration
reflecting a value of not less than the Asking Rate for the space subject to
such assignment. The assignment or sublease agreement, as the case may be, after
approval by Landlord, shall not be materially amended without Landlord's prior
written consent, and shall contain a provision directing the assignee or
subtenant to pay the rent and other sums due thereunder directly to Landlord
upon receiving written notice from Landlord that Tenant is in default under this
Lease with respect to the payment of Rent. In the event that, notwithstanding
the giving of such notice, Tenant collects any rent or other sums from the
assignee or subtenant, then Tenant shall hold such sums in trust for the benefit
of Landlord and shall immediately forward the same to Landlord for credit
against Rent then due hereinunder. Landlord's collection of such rent and other
sums shall not constitute an acceptance by Landlord of attornment by such
assignee or subtenant. A consent to one assignment, subletting, occupation or
use shall not be deemed to be a consent to any other or subsequent assignment,
subletting, occupation or use, and consent to any assignment or subletting shall
in no way relieve Tenant of any liability under this Lease. Any assignment or
subletting without Landlord's consent shall be void, and shall, at the option of
Landlord, constitute a Default under this Lease.
	Notwithstanding the terms of Paragraph 24(a) above, Tenant shall have
the right, with prior notice to but without the consent of Landlord, to assign
this Lease or to sublease the Premises to a Tenant Affiliate (as hereinafter
defined), provided, that, on the effective date of such assignment or sublease,
the proposed Tenant Affiliate has a net worth (determined in accordance with
GAAP) equal to or greater than the net worth (calculated as of such date) of
Tenant. As used herein, a "Tenant Affiliate" shall mean an entity that
(A) controls, is controlled by or is under common control with, Tenant, or
(B) acquires all or substantially all of the business and assets of Tenant
or a division thereof or results from a merger with Tenant or such a division,
or (C) is engaged in a joint venture with Tenant, provided that Tenant owns
more than fifty percent (50%) of the beneficial interests in, and controls
the day-to-day operations of, such joint venture; and a party shall be deemed to
"control" another party for purposes of the aforesaid definition only if the
first party owns more than fifty percent (50%) of the stock or other
beneficial interests of the second party. Any such assignment or sublease by
Tenant pursuant to this Paragraph 24(d) shall be herein referred to as a
"Permitted Transfer". In addition, a sale or transfer of Capital Stock of
Tenant shall be deemed a Permitted Transfer if Tenant is or becomes a publicly
traded corporation (a "Public Company"). Landlord shall have no right to
any sums or other economic consideration resulting from any Permitted
Transfer.
	Notwithstanding any assignment or subletting, Tenant and any guarantor or
surety of Tenant's obligations under this Lease shall at all times remain fully
responsible and liable for the payment of the Rent and for compliance with all
of Tenant's other obligations under this Lease (regardless of whether Landlord's
approval has been obtained for any such assignment or subletting).
	Tenant shall pay Landlord's reasonable fees (including, without limitation,
the fees of Landlord's counsel, which fees shall not exceed $1,500.00), incurred
in connection with Landlord's review and processing of documents regarding any
proposed assignment or sublease.
	Notwithstanding anything in this Lease to the contrary, in the event
Landlord consents to an assignment or subletting by Tenant in accordance with
the terms of this Paragraph 24, Tenant's assignee or subtenant shall have
no right to further assign this Lease or any interest therein or thereunder or
to further sublease all or any portion of the Premises without Landlord's prior
written consent, not to be unreasonably withheld.
	Tenant acknowledges and agrees that the restrictions, conditions and
limitations imposed by this Paragraph 24 on Tenant's ability to assign or
transfer this Lease or any interest herein, to sublet the Premises or any part
thereof, to transfer or assign any right or privilege appurtenant to the
Premises, or to allow any other person to occupy or use the Premises or any
portion thereof, are, for the purposes of California Civil Code
Section 1951.4, as amended from time to time, and for all other purposes,
reasonable at the time that the Lease was entered into, and shall be deemed to
be reasonable at the time that Tenant seeks to assign or transfer this Lease or
any interest herein, to sublet the Premises or any part thereof, to transfer or
assign any right or privilege appurtenant to the Premises, or to allow any other
person to occupy or use the Premises or any portion thereof.
	Tenant's Default

The occurrence of any one of the following events shall constitute an
event of default on the part of Tenant ("Default"):

	The vacation or abandonment of the Premises by Tenant for a period of
thirty (30) consecutive days or any vacation or abandonment of the Premises
by Tenant which would cause any insurance policy to be invalidated or otherwise
lapse, in each of the foregoing cases irrespective of whether or not Tenant is
then in monetary default under this Lease. Tenant agrees to notice and service
of notice as provided for in this Lease and waives any right to any other or
further notice or service of notice which Tenant may have under any statute or
law now or hereafter in effect;
	Failure to pay any installment of Rent or any other monies due and payable
hereunder, said failure continuing for a period of five (5) days after the
same is due;
	A general assignment by Tenant or any guarantor or surety of Tenant's
obligations hereunder (collectively, "Guarantor") for the benefit of
creditors;
	The filing of a voluntary petition in bankruptcy by Tenant or any Guarantor,
the filing by Tenant or any Guarantor of a voluntary petition for an
arrangement, the filing by or against Tenant or any Guarantor of a petition,
voluntary or involuntary, for reorganization, or the filing of an involuntary
petition by the creditors of Tenant or any Guarantor, said involuntary petition
remaining undischarged for a period of sixty (60) days;
	Receivership, attachment, or other judicial seizure of substantially all of
Tenant's assets on the Premises, such attachment or other seizure remaining
undismissed or undischarged for a period of sixty (60) days after the levy
thereof;
	Death or disability of Tenant or any Guarantor, if Tenant or such Guarantor
is a natural person, or the failure by Tenant or any Guarantor to maintain its
legal existence, if Tenant or such Guarantor is a corporation, partnership,
limited liability company, trust or other legal entity;
	Failure of Tenant to execute and deliver to Landlord any estoppel
certificate, subordination agreement, or lease amendment within the time periods
and in the manner required by Paragraphs 31 or 32 or 43, and/or failure by
Tenant to deliver to Landlord a financial statement within the time period and
in the manner required by Paragraph 41;
	An assignment or sublease, or attempted assignment or sublease, of this
Lease or the Premises by Tenant contrary to the provision of Paragraph 24,
unless such assignment or sublease is expressly conditioned upon Tenant having
received Landlord's consent thereto or is otherwise a Permitted Transfer;
	Failure of Tenant to restore the Letter of Credit or, if applicable, the
Security Deposit to the amount and within the time period provided in
Paragraph 7 above and Paragraph 8 above, respectively;
	Failure in the performance of any of Tenant's
covenants, agreements or obligations hereunder (except those failures specified
as events of Default in any other subparagraphs of this Paragraph 25, which
shall be governed by such other Paragraphs), which failure continues for
ten (10) days after written notice thereof from Landlord to Tenant,
provided that, if Tenant has exercised reasonable diligence to cure such failure
and such failure cannot be cured within such ten (10) day period despite
reasonable diligence, Tenant shall not be in default under this subparagraph so
long as Tenant thereafter diligently and continuously prosecutes the cure to
completion and actually completes such cure within thirty (30) days after
the giving of the aforesaid written notice;
	Chronic overuse by Tenant or Tenant's Agents of the
number of undesignated parking spaces set forth in the Basic Lease Information.
"Chronic overuse" shall mean use by Tenant or Tenant's Agents of a number
of parking spaces greater than the number of parking spaces set forth in the
Basic Lease Information more than five (5) times during the Term after
written notice by Landlord;
	Any insurance required to be maintained by Tenant pursuant to this Lease
shall be canceled or terminated or shall expire or be reduced or materially
changed, except as permitted in this Lease; and
	Any failure by Tenant to discharge any lien or encumbrance placed on the
Project or any part thereof in violation of this Lease within fifteen (15)
days after the date such lien or encumbrance is filed or recorded against the
Project or any part thereof.

Tenant agrees that any notice given by Landlord pursuant to this
Paragraph 25 shall satisfy the requirements for notice under California
Code of Civil Procedure Section 1161, and Landlord shall not be required to
give any additional notice in order to be entitled to commence an unlawful
detainer proceeding.

	Landlord's
Remedies

	Termination. In the event of any Default
by Tenant, then in addition to any other remedies available to Landlord at law
or in equity and under this Lease, Landlord shall have the immediate option to
terminate this Lease and all rights of Tenant hereunder by giving written notice
of such intention to terminate. In the event that Landlord shall elect to so
terminate this Lease then Landlord may recover from Tenant:

	the worth at the time of award of any unpaid Rent
and any other sums due and payable which have been earned at the time of such
termination; plus
	the worth at the time of award of the amount by
which the unpaid Rent and any other sums due and payable which would have been
earned after termination until the time of award exceeds the amount of such
rental loss Tenant proves could have been reasonably avoided; plus
	the worth at the time of award of the amount by
which the unpaid Rent and any other sums due and payable for the balance of the
term of this Lease after the time of award exceeds the amount of such rental
loss that Tenant proves could be reasonably avoided; plus
	any other amount necessary to compensate Landlord for all the detriment
proximately caused by Tenant's failure to perform its obligations under this
Lease or which in the ordinary course would be likely to result therefrom,
including, without limitation, (A) any costs or expenses incurred by
Landlord (1) in retaking possession of the Premises; (2) in
maintaining, repairing, preserving, restoring, replacing, cleaning, altering,
remodeling or rehabilitating the Premises or any affected portions of the
Building or the Project, including such actions undertaken in connection with
the reletting or attempted reletting of the Premises to a new tenant or tenants;
(3) for leasing commissions, advertising costs and other expenses of
reletting the Premises; or (4) in carrying the Premises, including taxes,
insurance premiums, utilities and security precautions; (B) any unearned
brokerage commissions paid in connection with this Lease; (C) reimbursement
of any previously waived or abated Base Rent or Additional Rent or any free rent
or reduced rental rate granted hereunder; and (D) any concession made or
paid by Landlord to the benefit of Tenant in consideration of this Lease
including, but not limited to, any moving allowances, contributions, payments or
loans by Landlord for tenant improvements or build-out allowances (including,
without limitation, any unamortized portion of the Initial Alterations Allowance
(such Initial Alterations Allowance to be amortized over the Term on a straight-
line basis)), or assumptions by Landlord of any of Tenant's previous lease
obligations; plus
	such reasonable attorneys' fees incurred by Landlord as a result of a
Default, and costs in the event suit is filed by Landlord to enforce such
remedy; and plus
	at Landlord's election, such other amounts in addition to or in lieu of the
foregoing as may be permitted from time to time by applicable law.

As used in subparagraphs (i) and (ii) above, the "worth at the time
of award" is computed by allowing interest at an annual rate equal to twelve
percent (12%) per annum or the maximum rate permitted by law, whichever is less.
As used in subparagraph (iii) above, the "worth at the time of
award" is computed by discounting such amount at the discount rate of the
Federal Reserve Bank of San Francisco at the time of award, plus one
percent (1%). Tenant waives redemption or relief from forfeiture under
California Code of Civil Procedure Sections 1174 and 1179, or under any
other pertinent present or future Law, in the event Tenant is evicted or
Landlord takes possession of the Premises by reason of any Default of Tenant
hereunder.

	Continuation of Lease. In the event of
any Default by Tenant, then in addition to any other remedies available to
Landlord at law or in equity and under this Lease, Landlord shall have the
remedy described in California Civil Code Section 1951.4 (Landlord may
continue this Lease in effect after Tenant's Default and abandonment and recover
Rent as it becomes due, provided that Tenant has the right to sublet or assign,
subject only to reasonable limitations). In addition, Landlord shall not be
liable in any way whatsoever for its failure or refusal to relet the Premises.
For purposes of this Paragraph 26(b), the following acts by Landlord will
not constitute the termination of Tenant's right to possession of the
Premises:

	Acts of maintenance or preservation or efforts to relet the Premises,
including, but not limited to, alterations, remodeling, redecorating, repairs,
replacements and/or painting as Landlord shall consider advisable for the
purpose of reletting the Premises or any part thereof; or
	The appointment of a receiver upon the initiative of Landlord to protect
Landlord's interest under this Lease or in the Premises.

	Re-entry. In the event of any Default
by Tenant, Landlord shall also have the right, with or without terminating this
Lease, in compliance with applicable law, to re-enter the Premises and remove
all persons and property from the Premises; such property may be removed and
stored in a public warehouse or elsewhere at the cost of and for the account of
Tenant.

	Reletting. In the event of the abandonment of the Premises by
Tenant or in the event that Landlord shall elect to re-enter as provided in
Paragraph 26(c) or shall take possession of the Premises pursuant to legal
proceeding or pursuant to any notice provided by law, then if Landlord does not
elect to terminate this Lease as provided in Paragraph 26(a), Landlord may
from time to time, without terminating this Lease, relet the Premises or any
part thereof for such term or terms and at such rental or rentals and upon such
other terms and conditions as Landlord in its sole discretion may deem advisable
with the right to make alterations and repairs to the Premises in Landlord's
sole discretion. In the event that Landlord shall elect to so relet, then
rentals received by Landlord from such reletting shall be applied in the
following order: (i) to reasonable attorneys' fees incurred by Landlord as
a result of a Default and costs in the event suit is filed by Landlord to
enforce such remedies; (ii) to the payment of any indebtedness other than
Rent due hereunder from Tenant to Landlord; (iii) to the payment of any
costs of such reletting; (iv) to the payment of the costs of any
alterations and repairs to the Premises; (v) to the payment of Rent due and
unpaid hereunder; and (vi) the residue, if any, shall be held by Landlord
and applied in payment of future Rent and other sums payable by Tenant hereunder
as the same may become due and payable hereunder. Should that portion of such
rentals received from such reletting during any month, which is applied to the
payment of Rent hereunder, be less than the Rent payable during the month by
Tenant hereunder, then Tenant shall pay such deficiency to Landlord. Such
deficiency shall be calculated and paid monthly. Tenant shall also pay to
Landlord, as soon as ascertained, any costs and expenses incurred by Landlord in
such reletting or in making such alterations and repairs not covered by the
rentals received from such reletting.

	Termination. No re-entry or taking of possession of the
Premises by Landlord pursuant to this Paragraph 26 shall be construed as an
election to terminate this Lease unless a written notice of such intention is
given to Tenant or unless the termination thereof is decreed by a court of
competent jurisdiction. Notwithstanding any reletting without termination by
Landlord because of any Default by Tenant, Landlord may at any time after such
reletting elect to terminate this Lease for any such Default.

	Cumulative Remedies. The remedies herein provided are not
exclusive and Landlord shall have any and all other remedies provided herein or
by law or in equity.

	No Surrender. No act or conduct of Landlord, whether
consisting of the acceptance of the keys to the Premises, or otherwise, shall be
deemed to be or constitute an acceptance of the surrender of the Premises by
Tenant prior to the expiration of the Term, and such acceptance by Landlord of
surrender by Tenant shall only flow from and must be evidenced by a written
acknowledgment of acceptance of surrender signed by Landlord. The surrender of
this Lease by Tenant, voluntarily or otherwise, shall not work a merger unless
Landlord elects in writing that such merger take place, but shall operate as an
assignment to Landlord of any and all existing subleases, or Landlord may, at
its option, elect in writing to treat such surrender as a merger terminating
Tenant's estate under this Lease, and thereupon Landlord may terminate any or
all such subleases by notifying the sublessee of its election so to do within
five (5) days after such surrender.
	Landlord's Right to
Perform Tenant's Obligations

	Without limiting the rights and remedies of
Landlord contained in Paragraph 26 above, if Tenant shall be in Default in
the performance of any of the terms, provisions, covenants or conditions to be
performed or complied with by Tenant pursuant to this Lease, then Landlord may
at Landlord's option, without any obligation to do so, and without notice to
Tenant, unless otherwise required by Paragraph 26 above, perform any such
term, provision, covenant, or condition, or make any such payment and Landlord
by reason of so doing shall not be liable or responsible for any loss or damage
thereby sustained by Tenant or anyone holding under or through Tenant or any of
Tenant's Agents.
	Without limiting the rights of Landlord under Paragraph 27(a) above,
Landlord shall have the right at Landlord's option, without any obligation to do
so, to perform any of Tenant's covenants or obligations under this Lease without
notice to Tenant in the case of an emergency, as determined by Landlord in its
sole and absolute judgment, or if Landlord otherwise determines in its
reasonable discretion that such performance is necessary or desirable for the
preservation of the rights and interests or safety of other tenants of the
Building or the Project.
	If Landlord performs any of Tenant's obligations hereunder in accordance
with this Paragraph 27, the full amount of the cost and expense incurred or
the payment so made or the amount of the loss so sustained shall immediately be
owing by Tenant to Landlord, and Tenant shall promptly pay to Landlord upon
demand, as Additional Rent, the full amount thereof with interest thereon from
the date of payment by Landlord at the lower of (i) ten percent (10%) per
annum, or (ii) the highest rate permitted by applicable law.

	Attorneys' Fees

	If either party hereto fails to perform any of
its obligations under this Lease or if any dispute arises between the parties
hereto concerning the meaning or interpretation of any provision of this Lease,
then the defaulting party or the party not prevailing in such dispute, as the
case may be, shall pay any and all costs and expenses incurred by the other
party on account of such default and/or in enforcing or establishing its rights
hereunder, including, without limitation, court costs and reasonable attorneys'
fees and disbursements. Any such attorneys' fees and other expenses incurred by
either party in enforcing a judgment in its favor under this Lease shall be
recoverable separately from and in addition to any other amount included in such
judgment, and such attorneys' fees obligation is intended to be severable from
the other provisions of this Lease and to survive and not be merged into any
such judgment.
	Without limiting the generality of Paragraph 28(a) above, if Landlord
utilizes the services of an attorney for the purpose of collecting any Rent due
and unpaid by Tenant or in connection with any other breach of this Lease by
Tenant, Tenant agrees to pay Landlord actual attorneys' fees as determined by
Landlord for such services, regardless of the fact that no legal action may be
commenced or filed by Landlord.

	Taxes

Tenant shall be liable for and shall pay, prior to delinquency, all taxes
levied against Tenant's Property. If any Alteration installed by Tenant or any
of Tenant's Property is assessed and taxed with the Project or Building, Tenant
shall pay such taxes to Landlord within fifteen (15) days after delivery to
Tenant of a statement therefor.

	Effect of
Conveyance

The term "Landlord" as used in this Lease means, from time to
time, the then current owner of the Building or the Project containing the
Premises, so that, in the event of any sale of the Building or the Project, and
the transfer to Landlord's successor of the Security Deposit or Letter of
Credit, as applicable, Landlord shall be and hereby is entirely freed and
relieved of all covenants and obligations of Landlord hereunder, and it shall be
deemed and construed, without further agreement between the parties and the
purchaser at any such sale, that the purchaser of the Building or the Project
has assumed and agreed to carry out any and all covenants and obligations of
Landlord hereunder.

	Tenant's Estoppel
Certificate

From time to time, upon written request of Landlord, Tenant
shall execute, acknowledge and deliver to Landlord or its designee, an Estoppel
Certificate in substantially the form attached hereto as
Exhibit F and with any other statements reasonably requested
by Landlord or its designee. Any such Estoppel Certificate delivered pursuant to
this Paragraph 31 may be relied upon by a prospective purchaser of
Landlord's interest or a mortgagee of Landlord's interest or assignee of any
mortgage upon Landlord's interest in the Premises. If Tenant shall fail to
provide such certificate within fifteen (15) days of receipt by Tenant of a
written request by Landlord as herein provided, such failure shall, at
Landlord's election, constitute a Default under this Lease, and Tenant shall be
deemed to have given such certificate as above provided without modification and
shall be deemed to have admitted the accuracy of any information supplied by
Landlord to a prospective purchaser or mortgagee.

	Subordination

This Lease, and all rights of
Tenant hereunder, are and shall be subject and subordinate to all ground leases,
overriding leases and underlying leases affecting the Building or the Project
now or hereafter existing and each of the terms, covenants and conditions
thereto (the "Superior Lease(s)"), and to all mortgages which may now or
hereafter affect the Building, the Project or any of such leases and each of the
terms, covenants and conditions thereto (the "Superior Mortgage(s)"),
whether or not such mortgages shall also cover other lands, buildings or leases,
to each and every advance made or hereafter to be made under such mortgages, and
to all renewals, modifications, replacements and extensions of such leases and
such mortgages and spreaders and consolidations of such mortgages. This
Paragraph shall be self-operative and no further instrument of subordination
shall be required. Tenant shall promptly execute, acknowledge and deliver any
reasonable instrument that Landlord, the lessor under any such lease or the
holder of any such mortgage or any of their respective successors in interest
may reasonably request to evidence such subordination; if Tenant fails to
execute, acknowledge and deliver any such instrument within fifteen (15)
business days after request therefor, Tenant hereby irrevocably constitutes and
appoints Landlord as Tenant's attorney-in-fact, coupled with an interest, to
execute and deliver any such instrument for and on behalf of Tenant. Without
limiting the foregoing, Tenant's failure to execute, acknowledge and deliver
such instrument within the aforesaid time period shall constitute a Default
hereunder. As used herein the lessor of a Superior Lease or its successor in
interest is herein called "Superior Lessor"; and the holder of a Superior
Mortgage is herein called "Superior Mortgagee".

Notwithstanding the foregoing terms of this Paragraph 32, if a Superior
Lease or Superior Mortgage is hereafter placed against or affecting any or all
of the Building or the Premises or any or all of the Building and improvements
now or at any time hereafter constituting a part of or adjoining the Building,
Landlord shall use commercially reasonable efforts to obtain an agreement from
the holder thereof in recordable form and substantially in the form attached
hereto as Exhibit H or otherwise in form and substance
reasonably acceptable to Tenant, whereby the holder of such Superior Lease or
Superior Mortgage agrees that the Tenant, upon paying the Base Rent and all of
the Additional Rent and other charges herein provided for, and observing and
complying with the covenants, agreements and conditions of this Lease on its
part to be observed and complied with, shall lawfully and quietly hold, occupy
and enjoy the Premises during the Term of this Lease (including any exercised
renewal term), without hindrance or interference from anyone claiming by or
through said Superior Mortgagee or Superior Lessor and that said Superior
Mortgagee or Superior Lessor shall respect Tenant's rights under the Lease and,
upon succeeding to Landlord's interest in the Building and Lease, shall observe
and comply with all of Landlord's duties under the Lease.

If any Superior Lessor or Superior Mortgagee shall succeed to the rights of
Landlord under this Lease, whether through possession or foreclosure action or
delivery of a new lease or deed (such party so succeeding to Landlord's rights
herein called "Successor Landlord"), then Tenant shall attorn to and
recognize such Successor Landlord as Tenant's landlord under this Lease (without
the need for further agreement) and shall promptly execute and deliver any
reasonable instrument that such Successor Landlord may reasonably request to
evidence such attornment. This Lease shall continue in full force and effect as
a direct lease between the Successor Landlord and Tenant upon all of the terms,
conditions and covenants as are set forth in this Lease, except that the
Successor Landlord shall not (a) be liable for any previous act or omission
of Landlord under this Lease, except to the extent such act or omission shall
constitute a continuing Landlord default hereunder; (b) be subject to any
offset, not expressly provided for in this Lease; or (c) be bound by any
previous modification of this Lease or by any previous prepayment of more than
one month's Base Rent, unless such modification or prepayment shall have been
expressly approved in writing by the Successor Landlord (or its predecessor in
interest).

	Environmental
Covenants

	Prior to executing this Lease, Tenant has
completed, executed and delivered to Landlord a Hazardous Materials Disclosure
Certificate ("Initial Disclosure Certificate"), a fully completed copy of
which is attached hereto as Exhibit G and incorporated herein
by this reference. Tenant covenants, represents and warrants to Landlord that
the information on the Initial Disclosure Certificate is true and correct and
accurately describes the Hazardous Materials which will be manufactured,
treated, used or stored on or about the Premises by Tenant or Tenant's Agents.
Tenant shall, on each anniversary of the Commencement Date and at such other
times as Tenant desires to manufacture, treat, use or store on or about the
Premises new or additional Hazardous Materials which were not listed on the
Initial Disclosure Certificate, complete, execute and deliver to Landlord an
updated Disclosure Certificate (each, an "Updated Disclosure
Certificate") describing Tenant's then current and proposed future uses of
Hazardous Materials on or about the Premises, which Updated Disclosure
Certificates shall be in the same format as that which is set forth in
Exhibit G or in such updated format as Landlord may require
from time to time. Tenant shall deliver an Updated Disclosure Certificate to
Landlord not less than thirty (30) days prior to the date Tenant intends to
commence the manufacture, treatment, use or storage of new or additional
Hazardous Materials on or about the Premises, and Landlord shall have the right
to approve or disapprove such new or additional Hazardous Materials in its sole
and absolute discretion. Tenant shall make no use of Hazardous Materials on or
about the Premises except as described in the Initial Disclosure Certificate or
as otherwise approved by Landlord in writing in accordance with this
Paragraph 33(a).
	As used in this Lease, the term "Hazardous Materials" shall mean and
include any substance that is or contains: (i) any "hazardous substance" as
now or hereafter defined in   101(14) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended ("CERCLA")
(42 U.S.C.   9601 et seq.) or any regulations promulgated
under CERCLA; (ii) any "hazardous waste" as now or hereafter defined in the
Resource Conservation and Recovery Act, as amended ("RCRA")
(42 U.S.C.   6901 et seq.) or any regulations promulgated
under RCRA; (iii) any substance now or hereafter regulated by the Toxic
Substances Control Act, as amended ("TSCA") (15 U.S.C.   2601
et seq.) or any regulations promulgated under TSCA;
(iv) petroleum, petroleum by-products, gasoline, diesel fuel, or other
petroleum hydrocarbons; (v) asbestos and asbestos-containing material, in
any form, whether friable or non-friable; (vi) polychlorinated biphenyls;
(vii) lead and lead-containing materials; or (viii) any additional
substance, material or waste (A) the presence of which on or about the
Premises (1) requires reporting, investigation or remediation under any
Environmental Laws (as hereinafter defined), (2) causes or threatens to
cause a nuisance on the Premises or any adjacent area or property or poses or
threatens to pose a hazard to the health or safety of persons on the Premises or
any adjacent area or property, or (3) which, if it emanated or migrated
from the Premises, could constitute a trespass, or (B) which is now or is
hereafter classified or considered to be hazardous or toxic under any
Environmental Laws.
	As used in this Lease, the term "Environmental Laws" shall mean and
include: (i) CERCLA, RCRA and TSCA; and (ii) any other federal, state
or local laws, ordinances, statutes, codes, rules, regulations, orders or
decrees now or hereinafter in effect relating to (A) pollution,
(B) the protection or regulation of human health, natural resources or the
environment, (C) the treatment, storage or disposal of Hazardous Materials,
or (D) the emission, discharge, release or threatened release of Hazardous
Materials into the environment.
	Tenant agrees that during its use and occupancy of the Premises it will:
(i) not (A) permit Hazardous Materials to be present on or about the
Premises except in a manner and quantity necessary for the ordinary performance
of Tenant's business or (B) release, discharge or dispose of any Hazardous
Materials on, in, at, under, or emanating from, the Premises, the Building or
the Project; (ii) comply with all Environmental Laws relating to the
Premises and the use of Hazardous Materials on or about the Premises and not
engage in or permit others to engage in any activity at the Premises in
violation of any Environmental Laws; and (iii) immediately notify Landlord
of (A) any inquiry, test, investigation or enforcement proceeding by any
governmental agency or authority against Tenant, Landlord or the Premises,
Building or Project relating to any Hazardous Materials or under any
Environmental Laws or (B) the occurrence of any event or existence of any
condition that would cause a breach of any of the covenants set forth in this
Paragraph 33.
	If Tenant's use of Hazardous Materials on or about the Premises results in a
release, discharge or disposal of Hazardous Materials on, in, at, under, or
emanating from, the Premises, the Building or the Project, Tenant agrees to
investigate, clean up, remove or remediate such Hazardous Materials in full
compliance with: (i) the requirements of (A) all Environmental Laws
and (B) any governmental agency or authority responsible for the
enforcement of any Environmental Laws; and (ii) any additional requirements
of Landlord that are reasonably necessary to protect the value of the Premises,
the Building or the Project.
	Upon not less than twenty-four (24) hours' notice to Tenant (except in the
case of an emergency, in which event no notice shall be required), Landlord may
inspect the Premises and surrounding areas for the purpose of determining
whether there exists on or about the Premises any Hazardous Material or other
condition or activity that is in violation of the requirements of this Lease or
of any Environmental Laws. Such inspections may include, but are not limited to,
entering the Premises or adjacent property with drill rigs or other machinery
for the purpose of obtaining laboratory samples. Landlord shall use reasonable
efforts to perform such inspections in a manner so as to avoid, to the extent
reasonably possible, unreasonable interference with Tenant's business operations
in the Premises. Landlord shall conduct no more than one inspection annually
during the Term of this Lease, unless Landlord reasonably believes that Tenant
is currently violating Environmental Laws at the Premises or that Hazardous
Materials may have come to be located in, or around the Project. In the event
(i) such inspections reveal the presence of any such Hazardous Material or
other condition or activity in violation of the requirements of this Lease or of
any Environmental Laws, or (ii) Tenant or its Agents contribute or
knowingly consent to the presence of any Hazardous Materials in, on, under,
through or about the Premises, the Building or the Project or exacerbate the
condition of or the conditions caused by any Hazardous Materials in, on, under,
through or about the Premises, the Building or the Project, Tenant shall
reimburse Landlord for the cost of such inspections within ten (10) days of
receipt of a written statement therefor. Tenant will supply to Landlord such
historical and operational information regarding the Premises and surrounding
areas as may be reasonably requested to facilitate any such inspection and will
make available for meetings appropriate personnel having knowledge of such
matters. Tenant agrees to give Landlord at least sixty (60) days' prior
notice of its intention to vacate the Premises so that Landlord will have an
opportunity to perform such an inspection prior to such vacation. The right
granted to Landlord herein to perform inspections shall not create a duty on
Landlord's part to inspect the Premises, or liability on the part of Landlord
for Tenant's use, storage, treatment or disposal of Hazardous Materials, it
being understood that Tenant shall be solely responsible for all liability in
connection therewith.
	Landlord shall have the right, but not the obligation, prior or subsequent
to a Default, without in any way limiting Landlord's other rights and remedies
under this Lease, to enter upon the Premises, or to take such other actions as
it deems necessary or advisable, to investigate, clean up, remove or remediate
any Hazardous Materials or contamination by Hazardous Materials present on, in,
at, under, or emanating from, the Premises, the Building or the Project in
violation of Tenant's obligations under this Lease or under any Environmental
Laws. Notwithstanding any other provision of this Lease, Landlord shall also
have the right, at its election, in its own name or as Tenant's agent, to
negotiate, defend, approve and appeal, at Tenant's expense, any action taken or
order issued by any governmental agency or authority with regard to any such
Hazardous Materials or contamination by Hazardous Materials. All costs and
expenses paid or incurred by Landlord in the exercise of the rights set forth in
this Paragraph 33 shall be payable by Tenant upon demand.
	Tenant shall surrender the Premises to Landlord upon
the expiration or earlier termination of this Lease free of debris, waste or
Hazardous Materials placed on, about or near the Premises by Tenant or Tenant's
Agents, and, as to Tenant's use of Hazardous Materials in or about the Premises,
in a condition which complies with all Environmental Laws and any additional
requirements of Landlord that are reasonably necessary to protect the value of
the Premises, the Building or the Project, including, without limitation, the
obtaining of any closure permits or other governmental permits or approvals.
Tenant's obligations and liabilities pursuant to the provisions of this
Paragraph 33 shall survive the expiration or earlier termination of this
Lease. If it is determined by Landlord that the condition of all or any portion
of the Premises, the Building, and/or the Project is not in compliance with the
provisions of this Lease with respect to Hazardous Materials, including, without
limitation, all Environmental Laws, at the expiration or earlier termination of
this Lease, then at Landlord's sole option, Landlord may require Tenant to hold
over possession of the Premises until Tenant can surrender the Premises to
Landlord in the condition in which the Premises existed as of the Commencement
Date and prior to the appearance of such Hazardous Materials except for normal
wear and tear, including, without limitation, the conduct or performance of any
closures as required by any Environmental Laws. The burden of proof hereunder
shall be upon Tenant. For purposes hereof, the term "normal wear and
tear" shall not include any deterioration in the condition or diminution of
the value of any portion of the Premises, the Building, and/or the Project in
any manner whatsoever related to directly, or indirectly, Hazardous Materials.
Any such holdover by Tenant will be with Landlord's consent, will not be
terminable by Tenant in any event or circumstance and will otherwise be subject
to the provisions of Paragraph 36 of this Lease.
	Tenant agrees to indemnify and hold harmless
Landlord from and against any and all claims, losses (including, without
limitation, loss in value of the Premises, the Building or the Project,
liabilities and expenses (including attorneys' fees)) sustained by Landlord
attributable to (i) any Hazardous Materials placed on or about the
Premises, the Building or the Project by Tenant or Tenant's Agents, or
(ii) Tenant's breach of any provision of this Paragraph 33.
	Notwithstanding anything to
the contrary contained in Paragraph 10(a) above or Paragraphs 33(a)
through 33(i) above, Tenant shall not be responsible for the inspection, clean
up or remediation of, and shall not be required to indemnify Landlord against
any costs or liabilities attributable to, any Hazardous Materials placed on or
about the Premises (i) by third parties not related to Tenant or Tenant's
Agents, including, without limitation, any Hazardous Materials existing on the
Premises prior to the Commencement Date, or (ii) by Landlord at anytime
(collectively, "Third Party Hazardous Materials"), except in either case
to the extent that Tenant or Tenant's Agents have contributed to or exacerbated
the presence of such Third Party Hazardous Materials or have failed to take
reasonable actions to prevent such Third Party Hazardous Material from becoming
placed on or about the Premises. As between Landlord and Tenant, Landlord
shall be responsible for the cleanup or remediation of any Third Party Hazardous
Materials; provided, however, that Landlord shall not be required to undertake
any cleanup or remedial actions unless Landlord is ordered to do so by
governmental authorities or a court of competent jurisdiction (Landlord hereby
specifically reserving the right to negotiate the timing and scope of any such
cleanup or remedial actions); and provided, further, that Landlord expressly
reserves all rights (including, without limitation, all rights of contribution)
against third parties responsible, directly or indirectly, for any such Third
Party Hazardous Materials.
	In addition to any obligation of Landlord under Paragraph 33(j) above,
in the event that, during the course of construction of the Initial Alterations,
Tenant discovers the existence of any Third Party Hazardous Materials located
within the Building (and specifically excluding any Third Party Hazardous
Materials located in the soil or groundwater beneath the Building or otherwise
outside of the Building), and if as a result of the existence of such Third
Party Hazardous Materials, Tenant is prevented from substantially completing the
construction of the Initial Alterations, then Landlord shall cause such Third
Party Hazardous Materials to be removed from the Building or otherwise
remediated to the extent necessary to allow Tenant to substantially complete the
construction, but solely to the extent that Landlord determines, in the exercise
of its reasonable business judgment, that removal or remediation is the prudent
course of action to take, given the nature and extent of the Third Party
Hazardous Materials and other factors which Landlord deems reasonable to
consider. In the event that Landlord determines to proceed with the removal or
remediation of such Third Party Hazardous Materials, then the Commencement Date
shall be delayed (or, if the Commencement Date has already occurred, Tenant's
obligation to pay Base Rent shall be abated) for a period equal to the time
required by Landlord to remove or otherwise remediate the Third Party Hazardous
Materials to the extent necessary to allow Tenant to substantially complete the
construction.
	The provisions of this Paragraph 33 shall survive the expiration or
earlier termination of this Lease.

	Notices

All notices and demands which are required or may be permitted to be
given to either party by the other hereunder shall be in writing and shall be
sent by United States mail, postage prepaid, certified, or by personal delivery
or overnight courier, addressed to the addressee at Tenant's Address or
Landlord's Address as specified in the Basic Lease Information, or to such other
place as either party may from time to time designate in a notice to the other
party given as provided herein. Copies of all notices and demands given to
Landlord shall additionally be sent to Landlord's property manager at the
address specified in the Basic Lease Information or at such other address as
Landlord may specify in writing from time to time. Notice shall be deemed given
upon actual receipt (or attempted delivery if delivery is refused), if
personally delivered, or one (1) business day following deposit with a
reputable overnight courier that provides a receipt, or on the third (3rd)
day following deposit in the United States mail in the manner described
above.

	Waiver

The waiver of any breach of any term, covenant or condition of this Lease
shall not be deemed to be a waiver of such term, covenant or condition or of any
subsequent breach of the same or any other term, covenant or condition herein
contained. The subsequent acceptance of Rent by Landlord shall not be deemed to
be a waiver of any preceding breach by Tenant, other than the failure of Tenant
to pay the particular rental so accepted, regardless of Landlord's knowledge of
such preceding breach at the time of acceptance of such Rent. No delay or
omission in the exercise of any right or remedy of Landlord in regard to any
Default by Tenant shall impair such a right or remedy or be construed as a
waiver. Any waiver by Landlord of any Default must be in writing and shall not
be a waiver of any other Default concerning the same or any other provisions of
this Lease.

	Holding
Over

Any holding over after the expiration of the Term, without the express
written consent of Landlord, shall constitute a Default and, without limiting
Landlord's remedies provided in this Lease, such holding over shall be construed
to be a tenancy at sufferance, at a rental rate equal to one hundred fifty
percent (150%) of the greater of (i) the fair market rental value for the
Premises as determined by Landlord, or (ii) the Base Rent last due in this
Lease, plus Additional Rent, and shall otherwise be on the terms and conditions
herein specified, so far as applicable; provided, however, that in no event
shall any renewal or expansion option or other similar right or option contained
in this Lease be deemed applicable to any such tenancy at sufferance. If the
Premises are not surrendered at the end of the Term or sooner termination of
this Lease, and in accordance with the provisions of Paragraphs 12 and
33(h), Tenant shall indemnify, defend and hold Landlord harmless from and
against any and all loss or liability resulting from delay by Tenant in so
surrendering the Premises including, without limitation, any loss or liability
resulting from any claim against Landlord made by any succeeding tenant or
prospective tenant founded on or resulting from such delay and losses to
Landlord due to lost opportunities to lease any portion of the Premises to any
such succeeding tenant or prospective tenant, together with, in each case,
actual attorneys' fees and costs.

	Successors and
Assigns

The terms, covenants and conditions of this Lease shall, subject to the
provisions as to assignment, apply to and bind the heirs, successors, executors,
administrators and assigns of all of the parties hereto. If Tenant shall consist
of more than one entity or person, the obligations of Tenant under this Lease
shall be joint and several.

	Time

Time is of the essence of this Lease and each and every term, condition
and provision herein.

	Brokers

Landlord and Tenant each represents and warrants to the other that
neither it nor its officers or agents nor anyone acting on its behalf has dealt
with any real estate broker except the Broker(s) specified in the Basic Lease
Information in the negotiating or making of this Lease, and each party agrees to
indemnify and hold harmless the other from any claim or claims, and costs and
expenses, including attorneys' fees, incurred by the indemnified party in
conjunction with any such claim or claims of any other broker or brokers to a
commission in connection with this Lease as a result of the actions of the
indemnifying party.

	Limitation of Liability

Tenant agrees that, in the event of any default
or breach by Landlord under this Lease or arising in connection herewith or with
Landlord's operation, management, leasing, repair, renovation, alteration or any
other matter relating to the Project or the Premises, Tenant's remedies shall be
limited solely and exclusively to the interest in the Project of the then
current Landlord. Neither Landlord, nor any of the Landlord Parties (as
hereinafter defined) shall have any personal liability therefor, and Tenant
hereby expressly waives and releases such personal liability on behalf of itself
and all persons claiming by, through or under Tenant. The limitations of
liability contained in this Paragraph 40 shall inure to the benefit of
Landlord's and the Landlord Parties' present and future partners, beneficiaries,
officers, directors, trustees, shareholders, agents and employees, and their
respective partners, heirs, successors and assigns. Under no circumstances shall
any present or future partner of Landlord (if Landlord is a partnership), future
member in Landlord (if Landlord is a limited liability company) or trustee or
beneficiary (if Landlord or any partner or member of Landlord is a trust), have
any liability for the performance of Landlord's obligations under this Lease.
Notwithstanding any contrary provision herein, neither Landlord nor the Landlord
Parties shall be liable under any circumstances for injury or damage to, or
interference with Tenant's business, including, but not limited to, loss or
profits, loss of rents or other revenues, loss of business opportunity, loss of
goodwill or loss of use, in each case, however occurring. The provisions of this
Paragraph shall apply only to the Landlord and the parties herein described, and
shall not be for the benefit of any insurer nor any other third party. For
purposes of this Lease, "Landlord Parties" shall mean, collectively
Landlord, its partners, shareholders, officers, directors, employees, investment
advisors, or any successor in interest of any of them. 

	Financial
Statements

Within twenty (20) days after Landlord's request, which request
shall not be made more than once during any calendar quarter during the Term
(or, if at any time during the Term Tenant shall no longer be a Public Company,
more than two (2) times during any calendar year), Tenant shall deliver to
Landlord the then current financial statements of Tenant (including interim
periods following the end of the last fiscal year for which annual statements
are available), prepared or compiled by a certified public accountant, including
a balance sheet and profit and loss statement for the most recent prior year,
all prepared in accordance with GAAP.

	Rules and
Regulations

Tenant agrees to comply with such reasonable rules and regulations as
Landlord may adopt from time to time for the orderly and proper operation of the
Building and the Project. Such rules may include but shall not be limited to the
following: (a) restriction of employee parking to a limited, designated
area or areas; and (b) regulation of the removal, storage and disposal of
Tenant's refuse and other rubbish at the sole cost and expense of Tenant. The
then current rules and regulations shall be binding upon Tenant upon delivery of
a copy of them to Tenant. Landlord shall not be responsible to Tenant for the
failure of any other person to observe and abide by any of said rules and
regulations. Landlord's current rules and regulations are attached to this Lease
as Exhibit D.

	Mortgagee Protection

Tenant agrees to give to any trust deed or
mortgage holder ("Holder"), by registered mail, at the same time as it is
given to Landlord, a copy of any notice of default given to Landlord, provided
that, prior to such notice, Tenant has been notified, in writing (by way of
notice of assignment of rents and leases, or otherwise) of the address of such
Holder. Tenant further agrees that if Landlord shall have failed to cure such
default within the time provided for in this Lease, then the Holder shall have
an additional twenty (20) days after expiration of such period, or after
receipt of such notice from Tenant (if such notice to the Holder is required by
this Paragraph 0), whichever shall last occur within which to cure such
default or if such default cannot be cured within that time, then such
additional time as may be necessary if within such twenty (20) days, any
Holder has commenced and is diligently pursuing the remedies necessary to cure
such default (including, but not limited to, commencement of foreclosure
proceedings, if necessary to effect such cure), in which event this Lease shall
not be terminated.

	Entire
Agreement

This Lease, including the Exhibits and any Addenda attached hereto, which
are hereby incorporated herein by this reference, contains the entire agreement
of the parties hereto, and no representations, inducements, promises or
agreements, oral or otherwise, between the parties, not embodied herein or
therein, shall be of any force and effect.

	Interest

Any installment of Rent and any other sum due from Tenant under this
Lease which is not received by Landlord within ten (10) days from when the
same is due shall bear interest from the date such payment was originally due
under this Lease until paid at an annual rate equal to the maximum rate of
interest permitted by law. Payment of such interest shall not excuse or cure any
Default by Tenant. In addition, Tenant shall pay all costs and attorneys' fees
incurred by Landlord in collection of such amounts.

	Construction

This Lease shall be construed and interpreted in accordance with the laws
of the State of California. The parties acknowledge and agree that no rule of
construction to the effect that any ambiguities are to be resolved against the
drafting party shall be employed in the interpretation of this Lease, including
the Exhibits and any Addenda attached hereto. All captions in this Lease are for
reference only and shall not be used in the interpretation of this Lease.
Whenever required by the context of this Lease, the singular shall include the
plural, the masculine shall include the feminine, and vice versa. If any
provision of this Lease shall be determined to be illegal or unenforceable, such
determination shall not affect any other provision of this Lease and all such
other provisions shall remain in full force and effect.

	Representations and
Warranties of Tenant

Tenant hereby makes the following representations and warranties, each of
which is material and being relied upon by Landlord, is true in all respects as
of the date of this Lease, and shall survive the expiration or termination of
the Lease.

	If Tenant is an entity, Tenant is duly organized, validly existing and in
good standing under the laws of the state of its organization and the persons
executing this Lease on behalf of Tenant have the full right and authority to
execute this Lease on behalf of Tenant and to bind Tenant without the consent or
approval of any other person or entity. Tenant has full power, capacity,
authority and legal right to execute and deliver this Lease and to perform all
of its obligations hereunder. This Lease is a legal, valid and binding
obligation of Tenant, enforceable in accordance with its terms.
	Tenant has not (i) made a general assignment for the benefit of
creditors, (ii) filed any voluntary petition in bankruptcy or suffered the
filing of an involuntary petition by any creditors, (iii) suffered the
appointment of a receiver to take possession of all or substantially all of its
assets, (iv) suffered the attachment or other judicial seizure of all or
substantially all of its assets, (v) admitted in writing its inability to
pay its debts as they come due, or (vi) made an offer of settlement,
extension or composition to its creditors generally.

	Security

	Tenant acknowledges and agrees that, while Landlord may engage security
personnel to patrol the Building or the Project, Landlord is not providing any
security services with respect to the Premises, the Building or the Project and
that Landlord shall not be liable to Tenant for, and Tenant waives any claim
against Landlord with respect to, any loss by theft or any other damage suffered
or incurred by Tenant in connection with any unauthorized entry into the
Premises or any other breach of security with respect to the Premises, the
Building or the Project.
	Tenant hereby agrees to the exercise by Landlord and Landlord's Agents,
within their reasonable discretion, of such security measures as, but not
limited to, the evacuation of the Premises, the Building or the Project for
cause, suspected cause or for drill purposes, the denial of any access to the
Premises, the Building or the Project and other similarly related actions that
it deems necessary to prevent any threat of property damage or bodily injury.
The exercise of such security measures by Landlord and Landlord's Agents, and
the resulting interruption of service and cessation of Tenant's business, if
any, shall not be deemed an eviction or disturbance of Tenant's use and
possession of the Premises, or any part thereof, or render Landlord or
Landlord's Agents liable to Tenant for any resulting damages or relieve Tenant
from Tenant's obligations under this Lease.

	Jury Trial Waiver

Tenant hereby waives any right to trial by jury with respect to any
action or proceeding (a) brought by Landlord, Tenant or any other party,
relating to (i) this Lease and/or any understandings or prior dealings
between the parties hereto, or (ii) the Premises, the Building or the
Project or any part thereof, or (b) to which Landlord is a party. Tenant
hereby agrees that this Lease constitutes a written consent to waiver of trial
by jury pursuant to the provisions of California Code of Civil Procedure
Section 631, and Tenant does hereby constitute and appoint Landlord its
true and lawful attorney-in-fact, which appointment is coupled with an interest,
and Tenant does hereby authorize and empower Landlord, in the name, place and
stead of Tenant, to file this Lease with the clerk or judge of any court of
competent jurisdiction as a statutory written consent to waiver of trial by
jury.

	Parking

	Tenant shall have a license to use one hundred
seventy-six (176) non-exclusive and undesignated parking spaces (the
"Unreserved Parking Spaces") in the locations within the Parking Areas
shown on Exhibit B hereto; provided, however, that Landlord
shall not be required to enforce Tenant's right to use such Unreserved Parking
Spaces (but Landlord shall use reasonable efforts to resolve any disputes that
may arise between tenants of the Project concerning parking); and provided,
further, that the number of Unreserved Parking Spaces allocated to Tenant
hereunder shall be reduced on a proportionate basis in the event any of the
parking spaces in the Parking Areas are taken or otherwise eliminated as a
result of any Condemnation (as hereinafter defined) or casualty event affecting
such Parking Areas.
	In addition to Tenant's license to use the
Unreserved Parking Spaces in accordance with Paragraph 50(a) above, Tenant
shall have a license to use the additional parking spaces shown on
Exhibit B hereto (the "Non-Conforming Parking Spaces")
on the terms set forth in this Paragraph 50(b). Tenant understands and
acknowledges that the Non-Conforming Parking Spaces do not conform to current
Laws, including, the codes and requirements of the City of Sunnyvale (the
"City"), and that Tenant's license to use the Non-Conforming Parking
Spaces shall be limited or discontinued if required by the City or any other
governmental agency. Without limiting the generality of the foregoing, if the
City requires Landlord to restripe the Non-Conforming Parking Spaces in a manner
that results in a reduction in the aggregate number of Non-Conforming Parking
Spaces, then Tenant's license shall automatically be modified to relate only to
the Non-Conforming Parking Spaces remaining following such restriping. Landlord
shall not be required to enforce Tenant's right to use the Non-Conforming
Parking Spaces (but Landlord shall use reasonable efforts to resolve any
disputes that may arise between tenants of the Project concerning parking). The
Non-Conforming Parking Spaces allocated to Tenant hereunder shall be reduced in
the event any of such Non-Conforming Parking Spaces are taken or otherwise
eliminated as a result of any Condemnation or casualty event affecting the
Parking Areas.

	Option to Renew

	Tenant shall have one (1) option (the "Renewal Option") to
extend the Term for a period of five (5) years beyond the Expiration Date
(the "Renewal Term"). The Renewal Option is personal to Cepheid and may
not be exercised by any sublessee or assignee, or by any other successor or
assign of Cepheid, other than a Tenant Affiliate to whom Tenant has assigned its
entire right, title and interest in and to this Lease pursuant to
Paragraph 24(d) above. The Renewal Option shall be effective only if Tenant
is not in Default under this Lease, nor has any event occurred which with the
giving of notice or the passage of time, or both, would constitute a Default
hereunder, either at the time of exercise of the Renewal Option or the time of
commencement of the Renewal Term. The Renewal Option must be exercised, if at
all, by written notice ("Election Notice") from Tenant to Landlord given
not more than nine (9) months nor less than six (6) months prior to
the expiration of the Term. Any such notice given by Tenant to Landlord shall be
irrevocable. If Tenant fails to exercise the Renewal Option in a timely manner
as provided for above, the Renewal Option shall be void. The Renewal Term shall
be upon the same terms and conditions as the initial Term, except that
(i) no further Renewal Option shall be available to Tenant at the
expiration of the Renewal Term, and (ii) the Base Rent during the Renewal
Term (the "Renewal Rate") shall be equal to the higher of (A) the
"prevailing market rate" for space in similarly situated buildings in the
vicinity of the Project comparable to the Building in location, condition,
quality and type at the commencement of the Renewal Term (the "Prevailing
Rate"), or (B) the Base Rent due hereunder during the last month of the
initial Term. The term "prevailing market rate" shall mean the base rental for
such comparable space, taking into account any additional rental and all other
payments and escalations payable hereunder and by tenants under leases of such
comparable space. The Prevailing Rate shall be determined in accordance with
Paragraph 51(b) below.
	Within thirty (30) days
after Landlord's receipt of the Election Notice or as soon thereafter as is
reasonably practicable, Landlord shall notify Tenant in writing (the "Renewal
Rate Notice") of the Renewal Rate. Tenant shall have twenty (20) days
(the "Response Period") after receipt of the Renewal Rate Notice to
advise Landlord whether or not Tenant agrees with Landlord's determination of
the Renewal Rate. If Tenant does not respond to Landlord in writing within the
Response Period, then Tenant shall be deemed to have accepted the Renewal Rate
specified by Landlord in the Renewal Rate Notice. If Tenant agrees or is deemed
to have agreed with Landlord's determination of the Renewal Rate, then such
determination shall be final and binding on the parties. If Tenant notifies
Landlord in writing during the Response Period that Tenant disagrees with
Landlord's determination of the Renewal Rate, then within twenty (20) days
after Landlord's receipt of Tenant's written notice, Landlord and Tenant shall
each retain a licensed commercial real estate broker with at least five (5)
years' experience negotiating commercial lease transactions in the City. If only
one broker is appointed by the parties during such twenty (20) day period,
then such broker shall, within twenty (20) days after his or her
appointment, determine the Prevailing Rate, and the Renewal Rate shall be the
higher of (i) the Prevailing Rate so determined by such broker, or
(ii) the Base Rent due hereunder during the last month of the initial Term.
If Landlord and Tenant each appoint a broker during such twenty (20) day
period as contemplated hereunder, then the brokers shall meet at least
two (2) times during the thirty (30) day period commencing on the date
on which the last of the brokers has been appointed (the "Broker Negotiation
Period") to attempt to mutually agree upon the Prevailing Rate. If the
brokers agree upon the Prevailing Rate on or before the expiration of the Broker
Negotiation Period, then the higher of (A) the Prevailing Rate so
determined by the brokers, or (B) the Base Rent due hereunder during the
last month of the initial Term, shall be the "Renewal Rate" for all purposes of
this Lease. If the brokers cannot agree upon the Prevailing Rate at the
expiration of the Broker Negotiation Period, but if the determinations of such
brokers differ by less than five percent (5%) of the higher of the two, the
Prevailing Rate shall be the average of the two determinations. In the event
such determinations differ by more than five percent (5%) of the higher of the
two, then such appraisers shall within twenty (20) days designate a
third broker, who shall have the same qualifications required for the initial
two brokers. If the two brokers fail to agree upon and appoint a third broker,
then the third broker shall be appointed by J.A.M.S./ENDISPUTE. The third broker
shall, within twenty (20) days after his or her appointment, make a
determination of the Prevailing Rate. The determinations of Prevailing Rate
prepared by all three (3) brokers shall be compared and the Prevailing Rate
shall be the average of the two closest determinations. Such determination shall
be final and binding upon the parties. The Renewal Rate shall be the higher of
(1) the Prevailing Rate so determined in accordance with the foregoing
sentence, and (2) the Base Rent due hereunder during the last month of the
initial Term (provided, however, that solely for the purposes of the foregoing
clause (2), the Base Rent due hereunder during the last month of the
initial Term shall be calculated at the rate of One and 68/100 Dollars ($1.68)
per rentable square foot). Landlord and Tenant shall each bear the expense of
the broker selected by it and shall share equally the expense of the third
broker, if any. Promptly following the determination of the Renewal Rate
pursuant to this Paragraph 51(b), the parties shall execute an amendment to
this Lease memorializing such Renewal Rate.

Landlord and Tenant have executed and delivered this Lease as of the Lease
Date specified in the Basic Lease Information.

	
Landlord:
	
Aetna Life Insurance Company,

a Connecticut corporation
By:UBS Realty Investors llc,

Its Investment Advisor and Agent

By: 

Name: 

Title: 

	
Tenant:
	
Cepheid,

a California corporation

By: 

Name: 

Title: 

Exhibit A

Diagram of the Premises

Exhibit B

Diagram Showing Location of Unreserved Parking Spaces and
Non-Conforming Parking Spaces

Exhibit C

Commencement and Expiration Date Memorandum

	
Landlord:
	
Aetna Life Insurance Company

	
Tenant:
	
Cepheid

	
Lease Date:
	
October ___, 2001

	
Premises:
	
Located at 904 Caribbean Drive, Sunnyvale, California

Tenant hereby accepts the Premises as being in the condition required under
the Lease.

The Commencement Date of the Lease is hereby established as __________, 2002
and the Expiration Date is __________, 2012. Tenant shall commence paying Rent
under the Lease on __________, 2002.

	
Tenant:
	
Cepheid,

a California corporation

By: 

Name: 

Title: 

Approved and Agreed:

	
Landlord:

Aetna Life Insurance Company,

a Connecticut corporation
By:UBS Realty Investors llc,

Its Investment Advisor and Agent

By: 

Name: 

Title: 

Exhibit D

Rules and Regulations

This exhibit, entitled "Rules and Regulations," is and shall constitute
Exhibit D to the Lease Agreement, dated as of the Lease Date, by and
between Landlord and Tenant for the Premises. The terms and conditions of this
Exhibit D are hereby incorporated into and are made a part of the
Lease. Capitalized terms used, but not otherwise defined, in this
Exhibit D have the meanings ascribed to such terms in the Lease.

	Tenant shall not use any method of heating or air conditioning other than
that supplied by Landlord without the consent of Landlord.
	All window coverings installed by Tenant and visible from the outside of the
building require the prior written approval of Landlord.
	Tenant shall not use, keep or permit to be used or kept any foul or noxious
gas or substance or any flammable or combustible materials on or around the
Premises, except to the extent that Tenant is permitted to use the same under
the terms of Paragraph 33 of the Lease.
	Tenant shall not alter any lock or install any new locks or bolts on any
door at the Premises without the prior consent of Landlord.
	Tenant shall park motor vehicles in parking areas designated by Landlord
except for loading and unloading. During those periods of loading and unloading,
Tenant shall not unreasonably interfere with traffic flow around the Building or
the Project and loading and unloading areas of other tenants. Tenant shall not
park motor vehicles in designated parking areas after the conclusion of normal
daily business activity.
	Tenant shall not unreasonably disturb, solicit or canvas any tenant or other
occupant of the Building or Project and shall cooperate to prevent same.
	No person shall go on the roof without Landlord's permission other than to
perform any inspections, maintenance or repairs required of Tenant under the
terms of the Lease. 
	Business machines and mechanical equipment belonging to Tenant which cause
noise or vibration that may be transmitted to the structure of the Building, to
such a degree as to be objectionable to Landlord or other tenants, shall be
placed and maintained by Tenant, at Tenant's expense, on vibration eliminators
or in noise-dampening housing or other devices sufficient to eliminate noise or
vibration. 
	All goods, including material used to store goods, delivered to the Premises
of Tenant shall be immediately moved into the Premises and shall not be left in
parking or receiving areas overnight.
	Tractor trailers which must be unhooked or parked with dolly wheels beyond
the concrete loading areas must use steel plates or wood blocks under the dolly
wheels to prevent damage to the asphalt paving surfaces. No parking or storing
of such trailers will be permitted in the auto parking areas of the Project or
on streets adjacent thereto.
	Forklifts which operate on asphalt paving areas shall not have solid rubber
tires and shall only use tires that do not damage the asphalt.
	Tenant is responsible for the storage and removal of all trash and refuse.
All such trash and refuse shall be contained in suitable receptacles stored
behind screened enclosures at locations approved by Landlord.
	Tenant shall not store or permit the storage or placement of goods or
merchandise in or around the common areas surrounding the Premises. No displays
or sales of merchandise shall be allowed in the parking lots or other common
areas.
	Tenant shall not permit any animals, including, but not limited to, any
household pets, to be brought or kept in or about the Premises, the Building,
the Project or any of the common areas.

Exhibit E

Budgetary Cost Proposal

Exhibit F

Form of Tenant Estoppel Certificate

____________________ (herein "Tenant") hereby certifies to
____________________ and its successors and assigns that Tenant leases from
____________________ ("Landlord") approximately _____ square feet of
space (the "Premises") in __________ pursuant to that certain Lease
Agreement dated __________, _____ by and between Landlord and Tenant, as amended
by _________________________ (collectively, the "Lease"), a true and
correct copy of which is attached hereto as Exhibit A. Tenant
hereby certifies to ____________________, that as of the date hereof:

	The Lease is in full force and effect and has not been modified,
supplemented or amended, except as set forth in the introductory paragraph
hereof.
	Tenant is in actual occupancy of the Premises under the Lease and Tenant has
accepted the same. Landlord has performed all obligations under the Lease to be
performed by Landlord, including, without limitation, completion of all tenant
work required under the Lease and the making of any required payments or
contributions therefor. Tenant is not entitled to any further payment or credit
for tenant work.
	The initial term of the lease commenced __________, _____ and shall expire
__________, _____. Tenant has the following rights to renew or extend the term
of the Lease or to expand the Premises:
___________________________________.
	Tenant has not paid any rentals or other payments more than one (1)
month in advance except as follows: ___________________________________.
	Base Rent payable under the Lease is _______________ Dollars ($__________).
Base Rent and additional Rent have been paid through __________, _____. There
currently exists no claims, defenses, rights of set-off or abatement to or
against the obligations of Tenant to pay Base Rent or Additional Rent or
relating to any other term, covenant or condition under the Lease.
	There are no concessions, bonuses, free months' rent, rebates or other
matters affecting the rentals except as follows:
___________________________________.
	No security or other deposit has been paid with respect to the Lease except
as follows: ___________________________________.
	Landlord is not currently in default under the Lease and there are no events
or conditions existing which, with or without notice or the lapse of time, or
both, could constitute a default of the Landlord under the Lease or entitle
Tenant to offsets or defenses against the prompt payment of rent except as
follows: ___________________________________. Tenant is not in default under any
of the terms and conditions of the lease nor is there now any fact or condition
which, with notice or lapse of time or both, will become such a default.
	Tenant has not assigned, transferred, mortgaged or otherwise encumbered its
interest under the lease, nor subleased any of the Premises nor permitted any
person or entity to use the Premises except as follows:
___________________________________.
	Tenant has no rights of first refusal or options to purchase the property of
which the Premises is a part.
	The Lease represents the entire agreement between the parties with respect
to Tenant's right to use and occupy the Premises.

Tenant acknowledges that the parties to whom this certificate is addressed
will be relying upon the accuracy of this certificate in connection with their
acquisition and/or financing of the Premises.

In Witness Whereof, Tenant has caused this certificate to be executed this
_____ day of __________, _____.

	
Tenant:
	
,

a 

By: 

Name: 

Title: 

Exhibit G

Hazardous Materials Disclosure Certificate

Your cooperation in this matter is appreciated. Initially, the
information provided by you in this Hazardous Materials Disclosure Certificate
is necessary for the Landlord to evaluate your proposed uses of the premises
(the "Premises") and to determine whether to enter into a lease agreement
with you as tenant. If a lease agreement is signed by you and the Landlord (the
"Lease Agreement"), on an annual basis in accordance with the provisions
of Paragraph 33 of the Lease Agreement, you are to provide an update to the
information initially provided by you in this certificate. Any questions
regarding this certificate should be directed to, and when completed, the
certificate should be delivered to:
Landlord:Aetna Life Insurance Company

c/o UBS Realty Investors llc

455 Market Street, Suite 1540

San Francisco, California 94105

Attention: Asset Manager, Caribbean Drive

Phone: (415) 538-4800

Name of (Prospective) Tenant: 

Mailing Address: 

Contact Person, Title and Telephone Number(s): 

Contact Person for Hazardous Waste Materials Management and Manifests and
Telephone Number(s): 

Address of (Prospective) Premises: 

Length of (Prospective) initial Term: 

Automatic Numbering using Sequence Codes
1.General Information:

Describe the proposed operations to take place in, on, or about the Premises,
including, without limitation, principal products processed, manufactured or
assembled, and services and activities to be provided or otherwise conducted.
Existing tenants should describe any proposed changes to on-going
operations.

2.Use, Storage and Disposal of Hazardous
Materials
2.1Will any Hazardous Materials (as hereinafter defined)
be used, generated, treated, stored or disposed of in, on or about the Premises?
Existing tenants should describe any Hazardous Materials which continue to be
used, generated, treated, stored or disposed of in, on or about the
Premises.

	
Wastes
	
Yes o 
	
No o 

	
Chemical Products
	
Yes o 
	
No o 

	
Other
	
Yes o 
	
No o 

If Yes is marked, please explain: 

2.2If Yes is marked in Section 2.1, attach a list of
any Hazardous Materials to be used, generated, treated, stored or disposed of
in, on or about the Premises, including the applicable hazard class and an
estimate of the quantities of such Hazardous Materials to be present on or about
the Premises at any given time; estimated annual throughput; the proposed
location(s) and method of storage (excluding nominal amounts of ordinary
household cleaners and janitorial supplies which are not regulated by any
Environmental Laws, as hereinafter defined); and the proposed location(s) and
method(s) of treatment or disposal for each Hazardous Material, including the
estimated frequency, and the proposed contractors or subcontractors. Existing
tenants should attach a list setting forth the information requested above and
such list should include actual data from on-going operations and the
identification of any variations in such information from the prior year's
certificate.

3.Storage Tanks and Sumps
3.1Is any above or below ground storage or treatment of
gasoline, diesel, petroleum, or other Hazardous Materials in tanks or sumps
proposed in, on or about the Premises? Existing tenants should describe any such
actual or proposed activities.

	
Yes o 
	
No o 

If yes, please explain: 

4.Waste Management
4.1Has your company been issued an EPA Hazardous Waste
Generator I.D. Number? Existing tenants should describe any additional
identification numbers issued since the previous certificate.

	
Yes o 
	
No o 

4.2Has your company filed a biennial or quarterly reports
as a hazardous waste generator? Existing tenants should describe any new reports
filed.

	
Yes o 
	
No o 

If yes, attach a copy of the most recent report
filed.

5.Wastewater Treatment and Discharge
5.1Will your company discharge wastewater or other wastes
to:

	
_____ storm drain?
	
_____ sewer?

	
_____ surface water?
	
_____ no wastewater or other wastes discharged.

Existing tenants should indicate any actual discharges.
If so, describe the nature of any proposed or actual discharge(s).

5.2Will any such wastewater or waste be treated before
discharge?

	
Yes o 
	
No o 

If yes, describe the type of treatment proposed to be
conducted. Existing tenants should describe the actual treatment conducted.

6.Air Discharges
6.1Do you plan for any air filtration systems or stacks
to be used in your company's operations in, on or about the Premises that will
discharge into the air; and will such air emissions be monitored? Existing
tenants should indicate whether or not there are any such air filtration systems
or stacks in use in, on or about the Premises which discharge into the air and
whether such air emissions are being monitored.

	
Yes o 
	
No o 

If yes, please describe: 

6.2Do you propose to operate any of the following types
of equipment, or any other equipment requiring an air emissions permit? Existing
tenants should specify any such equipment being operated in, on or about the
Premises.

	
_____ Spray booth(s)
	
_____ Incinerator(s)

	
_____ Dip tank(s)
	
_____ Other (Please describe)

	
_____ Drying oven(s)
	
_____ No Equipment Requiring Air Permits

If yes, please describe: 

6.3Please describe (and submit copies of with this
Hazardous Materials Disclosure Certificate) any reports you have filed in the
past [thirty-six] months with any governmental or quasi-governmental agencies or
authorities related to air discharges or clean air requirements and any such
reports which have been issued during such period by any such agencies or
authorities with respect to you or your business operations.

7.Hazardous Materials Disclosures
7.1Has your company prepared or will it be required to
prepare a Hazardous Materials management plan ("Management Plan") or
Hazardous Materials Business Plan and Inventory ("Business Plan")
pursuant to Fire Department or other governmental or regulatory agencies'
requirements? Existing tenants should indicate whether or not a Management Plan
is required and has been prepared.

	
Yes o 
	
No o 

If yes, attach a copy of the Management Plan or Business
Plan. Existing tenants should attach a copy of any required updates to the
Management Plan or Business Plan.

7.2Are any of the Hazardous Materials, and in particular
chemicals, proposed to be used in your operations in, on or about the Premises
listed or regulated under Proposition 65? Existing tenants should indicate
whether or not there are any new Hazardous Materials being so used which are
listed or regulated under Proposition 65.

	
Yes o 
	
No o 

If yes, please explain: 

8.Enforcement Actions and Complaints
8.1With respect to Hazardous Materials or Environmental
Laws, has your company ever been subject to any agency enforcement actions,
administrative orders, or consent decrees or has your company received requests
for information, notice or demand letters, or any other inquiries regarding its
operations? Existing tenants should indicate whether or not any such actions,
orders or decrees have been, or are in the process of being, undertaken or if
any such requests have been received.

	
Yes o 
	
No o 

If yes, describe the actions, orders or decrees and any
continuing compliance obligations imposed as a result of these actions, orders
or decrees and also describe any requests, notices or demands, and attach a copy
of all such documents. Existing tenants should describe and attach a copy of any
new actions, orders, decrees, requests, notices or demands not already delivered
to Landlord pursuant to the provisions of Paragraph 33 of the Lease
Agreement.

8.2Have there ever been, or are there now pending, any
lawsuits against your company regarding any environmental or health and safety
concerns?

	
Yes o 
	
No o 

If yes, describe any such lawsuits and attach copies of
the complaint(s), cross-complaint(s), pleadings and other documents related
thereto as requested by Landlord. Existing tenants should describe and attach a
copy of any new complaint(s), cross-complaint(s), pleadings and other related
documents not already delivered to Landlord pursuant to the provisions of
Paragraph 33 of the Lease Agreement.

8.3Have there been any problems or complaints from
adjacent tenants, owners or other neighbors at your company's current facility
with regard to environmental or health and safety concerns? Existing tenants
should indicate whether or not there have been any such problems or complaints
from adjacent tenants, owners or other neighbors at, about or near the Premises
and the current status of any such problems or complaints.

	
Yes o 
	
No o 

If yes, please describe. Existing tenants should describe
any such problems or complaints not already disclosed to Landlord under the
provisions of the signed Lease Agreement and the current status of any such
problems or complaints.

9.Permits and Licenses
9.1Attach copies of all permits and licenses issued to
your company with respect to its proposed operations in, on or about the
Premises, including, without limitation, any Hazardous Materials permits,
wastewater discharge permits, air emissions permits, and use permits or
approvals. Existing tenants should attach copies of any new permits and licenses
as well as any renewals of permits or licenses previously issued.

As used herein, "Hazardous Materials" shall mean and include any
substance that is or contains (a) any "hazardous substance" as now or
hereafter defined in   101(14) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended ("CERCLA")
(42 U.S.C.   9601 et seq.) or any regulations promulgated
under CERCLA; (b) any "hazardous waste" as now or hereafter defined in the
Resource Conservation and Recovery Act, as amended ("RCRA")
(42 U.S.C.   6901 et seq.) or any regulations promulgated
under RCRA; (c) any substance now or hereafter regulated by the Toxic
Substances Control Act, as amended ("TSCA") (15 U.S.C.   2601
et seq.) or any regulations promulgated under TSCA;
(d) petroleum, petroleum by-products, gasoline, diesel fuel, or other
petroleum hydrocarbons; (e) asbestos and asbestos-containing material, in
any form, whether friable or non-friable; (f) polychlorinated biphenyls;
(g) lead and lead-containing materials; or (h) any additional
substance, material or waste (i) the presence of which on or about the
Premises (A) requires reporting, investigation or remediation under any
Environmental Laws (as hereinafter defined), (B) causes or threatens to
cause a nuisance on the Premises or any adjacent property or poses or threatens
to pose a hazard to the health or safety of persons on the Premises or any
adjacent property, or (C) which, if it emanated or migrated from the
Premises, could constitute a trespass, or (ii) which is now or is hereafter
classified or considered to be hazardous or toxic under any Environmental Laws;
and "Environmental Laws" shall mean and include (a) CERCLA, RCRA and
TSCA; and (b) any other federal, state or local laws, ordinances, statutes,
codes, rules, regulations, orders or decrees now or hereinafter in effect
relating to (i) pollution, (ii) the protection or regulation of human
health, natural resources or the environment, (iii) the treatment, storage
or disposal of Hazardous Materials, or (iv) the emission, discharge,
release or threatened release of Hazardous Materials into the environment.

The undersigned hereby acknowledges and agrees that this Hazardous Materials
Disclosure Certificate is being delivered to Landlord in connection with the
evaluation of a Lease Agreement and, if such Lease Agreement is executed, will
be attached thereto as an exhibit. The undersigned further acknowledges and
agrees that if such Lease Agreement is executed, this Hazardous Materials
Disclosure Certificate will be updated from time to time in accordance with
Paragraph 33 of the Lease Agreement. The undersigned further acknowledges
and agrees that the Landlord and its partners, lenders and representatives may,
and will, rely upon the statements, representations, warranties, and
certifications made herein and the truthfulness thereof in entering into the
Lease Agreement and the continuance thereof throughout the term, and any
renewals thereof, of the Lease Agreement. I [print name] _______________, acting
with full authority to bind the (proposed) Tenant and on behalf of the
(proposed) Tenant, certify, represent and warrant that the information contained
in this certificate is true and correct.

	
(Prospective) Tenant:

Cepheid,

a California corporation

By: 

Title: 

Date: 

Exhibit H

Form of Subordination, Non-Disturbance and Attornment
Agreement

This Agreement is dated the _____ day of __________, _____, and is made
between ____________________, a _______________ having a place of business and
mailing address of ____________________ ("Mortgagee"), and
____________________, a _______________ having a place of business and mailing
address of ____________________ ("Tenant").

Recitals:

	Tenant has entered into a certain lease ("Lease")
dated __________, _____, with ____________________, as lessor
("Landlord") covering certain premises known as ____________________,
being part of a premises commonly known as ____________________ and located in
____________________ (the "Premises").
	Mortgagee has agreed to make a mortgage loan in the amount
of _______________ Dollars ($__________) (together with all amendments,
modifications, supplements, renewals, extensions, spreaders and consolidations
thereto, the "Mortgage") to the Landlord, secured by the Premises, and
the parties desire to set forth their agreement herein.

Now, Therefore, in consideration of the Premises, and of the sum of
One Dollar ($1.00) by each party in hand paid to the other, the receipt of which
is hereby acknowledged, the parties hereby agree as follows:

	Said Lease is and shall be subject and subordinate
to the Mortgage insofar as it affects the real property of which the Premises
form a part to the full extent of the amounts secured thereby and interest
thereon.
	Tenant agrees that it will attorn to and recognize
any purchaser at a foreclosure sale under the Mortgage, any transferee who
acquires the Premises by deed in lieu of foreclosure, and the successors and
assigns of such purchaser(s), as its landlord for the unexpired balance (and any
extensions, if exercised) of the term of said Lease upon the same terms and
conditions set forth in said Lease.
	If it becomes necessary to foreclose the Mortgage,
Mortgagee will not terminate said Lease nor join Tenant in summary or
foreclosure proceedings (unless such joinder shall be required to protect
Mortgagee's interest under the Mortgage and in which case Mortgagee shall not
seek affirmative relief from Tenant in such action or proceeding, if required)
so long as Tenant is not in default under any of the terms, covenants, or
condition of said Lease.
	If Mortgagee succeeds to the interest of Landlord
under the Lease, Mortgagee shall not be:

	liable for any act or omission of any prior landlord (including Landlord);
or
	liable for the return of any security deposit not actually received by
Mortgagee; or
	subject to any offsets or defenses which Tenant might have against any prior
landlord (including Landlord); or
	bound by any rent or additional rent which Tenant might have paid for more
than the current month to any prior landlord (including Landlord); or bound by
any amendment, modification, extensions or renewal of the Lease made without
Lender's consent; or
	bound by any representation or warranty made by any prior landlord
(including Landlord).

	This Agreement shall be binding upon and shall inure
to the benefit of the parties hereto and their successors and assigns.
	Tenant agrees to give Mortgagee, by registered or
certified mail, return receipt requested, a copy of any notice of default served
upon Landlord, provided that prior to such notice Tenant has been notified in
writing (by way of Notice of Assignment of Rent and Leases, or otherwise) of the
address of such Mortgagee. Tenant further agrees that Tenant shall not terminate
the Lease nor abate rents thereunder or claim an offset against rents thereunder
except as expressly permitted under the terms of the Lease or unless notice has
been given to Mortgagee and Mortgagee has been given a reasonable period of time
(including a period of time to commence and complete a foreclosure proceeding)
to cure such default.
	Tenant acknowledges that it
has notice that Landlord's interest under the Lease and the rents thereunder
have been collaterally assigned to Mortgagee as part of the security for the
obligations secured by the Mortgage. Notice from Mortgagee to Tenant directing
payment of rent and all other sums due under the Lease shall have the same
effect under the Lease as a notice to Tenant from Landlord and Tenant agrees to
be bound by such notice. In the event of any conflict or inconsistency between a
notice from Landlord and a notice from Mortgagee, the notice from Mortgagee
shall control.
	This Agreement shall not be modified, amended or
terminated except by a writing duly executed by the party against whom the same
is sought to be enforced.
	This Agreement shall be governed by and construed in
accordance with the internal laws (as opposed to the laws of conflicts) of the
state in which the Premises are located.

In Witness Whereof, the parties hereto have executed these presents as
of the day and year first above written.

	

Date
	
Mortgagee: 

By: 

Its: 
Address:

	

Date
	
Tenant: 

By: 

Its: 

	
Landlord hereby executes this document for the sole purpose of consenting to
the terms of Paragraph G above.

Aetna Life Insurance Company,

a Connecticut corporation
By:UBS Realty Investors llc

Its Investment Advisor and Agent

By: 

Name: 

Title: 

Exhibit I

Conceptual Plans for Initial AlterationsSECOND AMENDMENT TO OPERATING AGREEMENT
                       OF RED CANYON AT PALOMINO PARK LLC

     THIS SECOND AMENDMENT TO OPERATING AGREEMENT OF RED CANYON AT PALOMINO PARK
LLC (this "Second  Amendment") is made as of the 16th day of November,  1998, by
and between AL FELD, an individual ("Feld"), and WELLSFORD PARK HIGHLANDS CORP.,
a Colorado corporation ("WPHC").

                                    RECITALS

     A.  Feld  and  WPHC  constitute  all  of  the  members  (collectively,  the
"Members")  of Red Canyon at  Palomino  Park LLC, a Colorado  limited  liability
company (the "Company"),  which is governed by that certain Operating  Agreement
of Red Canyon at  Palomino  Park LLC dated as of April 17,  1996,  as amended by
that certain First Amendment to Operating  Agreement dated May 19, 1997, between
Feld and WPHC (collectively, the "Operating Agreement").

     B. The Members now desire to further amend the  Operating  Agreement as set
forth herein.

     C.  Capitalized   terms  not  otherwise   defined  herein  shall  have  the
definitions set forth in the Operating Agreement.

     NOW,  THEREFORE,  for and in  consideration of the above recitals and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Feld and WPHC hereby agree follows:

     1. The second  sentence of Section 1(bk) of the Operating  Agreement,  with
respect to the definition of Net Operating  Income, is hereby amended to read in
its entirety as follows:

Notwithstanding  the  foregoing,  in  connection  with  the  calculation  of the
Completion Fee and the Incentive  Fee, Net Operating  Income shall be determined
on an  accrual  basis for the  relevant  period  with the  following  additional
adjustments:  if  property  taxes do not fully  reflect  the  completion  of the
Project,  then the  property  taxes shall be increased to the amount of property
taxes that would have been assessed had the Project been  completed and included
in the  calculation  of the  property  taxes.  With respect to  calculating  the
Completion  Fee only,  such  fully-assessed  tax estimate  shall be applied on a
per-building basis beginning only upon receipt of a certificate of occupancy for
each building.

<PAGE>

     2. 7.6 of the Operating  Agreement is hereby  renumbered as Section 7.7 and
the following is hereby inserted as a new Section 7.6:

     7.6 Completion  Fee. The Company shall pay Feld at Final Closing a fee (the
"Completion  Fee") equal to 100% of Net  Operating  Income for the period ending
with  Substantial  Completion,  less an amount equal to all interest  accrued or
paid on the  Construction  Loan from and after  the  earlier  of (i) the date on
which  Budgeted  Construction  Loan Interest is  exhausted,  or (ii) the Date of
Substantial Completion; provided, however, that in no event shall the Completion
Fee exceed $500,000.

     3.  Headings  and  Captions.  The  headings  and  captions  of this  Second
Amendment  are  inserted  for  convenience  only and are in no way  intended  to
describe, interpret, define, or limit the scope, extent or intent of this Second
Amendment,  the First  Amendment,  the Operating  Agreement,  or any  provisions
thereof.

     4. Full Force and Effect. The Operating Agreement,  as specifically amended
herein,  is hereby  ratified by the  Members and shall  remain in full force and
effect.

     5.  Counterparts.  This Second  Amendment  may be executed in any number of
counterparts,  each of which shall be deemed to be an original and all of which,
when taken  together,  shall  constitute  one  agreement  binding on the parties
hereto,  notwithstanding  that  all the  parties  may not have  signed  the same
counterpart. Signature pages from one counterpart may be removed and attached to
another counterpart to create one fully-executed document.

                (Remainder of this page intentionally left blank)

<PAGE>

     IN WITNESS  WHEREOF,  the parties  hereto,  being all of the Members of the
Company, have executed this Second Amendment as of the date first written above.

           /s/ Al Feld
           -----------------------------------------
           Al Feld

           WELLSFORD PARK HIGHLANDS CORP., a Colorado corporation

            By: /s/ David M. Strong
                -----------------------------------------
                David M. Strong, Vice President

<PAGE>

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