Document:

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                                                                 EXHIBIT 10.3

                                STANDARD FORM LEASE
                          (INDUSTRIAL; SINGLE TENANT; NET)

       This Lease dated April 3, 1996 (this "Lease") is entered into by and
between O'Donnell Palo Alto Associates, a California general partnership
("Landlord"), and Omnicell Technologies, Inc., a California corporation
("Tenant").

                                     ARTICLE I.

                               BASIC LEASE PROVISIONS

       Each reference in this Lease to the "Basic Lease Provisions" shall mean
and refer to the following terms, the application of which shall be governed by
the provisions in the remaining Articles of this lease:

1.     Address of Landlord:        c/o Insignia O'Donnell Commercial Group, Inc.
                                   160 W. Santa Clara St., Suite 1350
                                   San Jose, CA  95113  Attn:  Mark E. Schmidt

2.     Building Address:           1057 E. Meadow Circle
                                   Palo Alto, CA  94303

3.     Address of Tenant:

       (a) Notices:                1057 E. Meadow Circle
                                   Palo Alto, CA  94303

       (b) Billing:                1057 E. Meadow Circle
                                   Palo Alto, CA  94303

4.     Tenant's Trade Name:        Omnicell Technologies, Inc.

5.     Tenant's Contact:  Mr. Earl Fry           Telephone:  (415) 843-6124

6.     Building Square Footage:  Approximately 23,020 square feet

7.     Anticipated Commencement Date:  August 12, 1996

8.     Term:  Seven (7) years, 8/11/03

9.     Initial Monthly Rent:  $27,624.00/month (subject to adjustment per
Addendum

10.    Security Deposit:  $29,926.00

11.    Permitted Uses:  General office, research and development, light
manufacturing, warehousing and other lawful uses related thereto, all in
accordance with Applicable Laws and Restrictions (or hereafter defined) and
pursuant to approvals to be obtained by Tenant from all relevant City, County
and other required governmental agencies and authorities.

12.    Broker:  Cornish & Carey Commercial

13.    Landlord's Architect:  Dowler & Associates

14.    Guarantor:  N/A

15.    Vehicle parking Spaces:  All on-site parking spaces

                                          1.

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16.    Additional Insureds:  Landlord and Landlord's constituent parts and
management agents (including, without limitation, Insignia Commercial Group,
Inc.)

17.    Tenant's Liability Insurance Limits:  $3,000,000

Exhibits:

       A      Description of Premises     G      Rules and Regulations
       B      Project Site Plan           H      Environmental Questionnaire
       C      Work Letter
       D      Commencement Date Memorandum

       (Exhibits E, F, I, J and K have been intentionally omitted.

Riders: Addendum to Lease

                                     ARTICLE II

                                    DEFINITIONS

       2.1    Certain Definitions.  The capitalized terms set forth below,
unless the context clearly requires otherwise, shall have the following meanings
in this Lease:

       "Additional Rent" means any and all sums (whether or not specifically
called "additional Rent" in this Lease) other than Monthly Rent which Tenant is
or becomes obligated to pay Landlord under this Lease.  See also Rent.

       "Alterations" means any alterations, decorations, modifications,
additions or improvements made in, on, about, under or contiguous to the
Building or the Premises after the Commencement Date, including, but not limited
to, lighting, HVAC and electrical fixtures, pipes and conduits, transfer,
storage and disposal facilities, partitions, drapery, wall coverings, shelves,
cabinetwork, carpeting and other floor coverings, ceiling tiles, fixtures and
carpentry installations.

       "Applicable Laws" means the laws, rules, regulations, ordinances,
restrictions, and practices described in Section 5.2.

       "Applicable Rate" means the greater of ten percent (10%) per annum or
five percent (5%) in excess of the discount rate of the Federal Reserve Ban of
San Francisco in effect on the twenty-fifth 25th) day of the calendar month
immediately prior to the event giving rise to the Applicable Rate imposition;
provided, however, the Applicable Rate shall in no event exceed the maximum
interest rate permitted to be charged by applicable law.

       "Broker" means the person or entity identified in Item 12 of the Basic
Lease Provisions.

       "Building" means that certain building comprising a portion of the
Premises located at the address set forth in Item 2 of the Basic Lease
Provision.

       "Building Square Footage" means the approximate floor area of the
Building as set forth in Item 6 of the Basic Lease Provisions.

       "Building Square Footage" means the approximate floor area of the
Building as set forth in Item 6 of the Basic Lease Provisions.

       "Casualty" is defined in Section 12.1.

                                          2.
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       "CC&R's" means the Declaration of Covenants, Conditions and Restrictions
applicable to the Project recorded in the Official Records of the County as the
same may be amended from time to time.

       "City" means the city in which the Premises are located.

       "Commencement Date" means the commencement date of the Term, described in
Section 3.2.

       "Common Area" means all areas and facilities within the Project exclusive
of the Building and other portion of the Project leased (or to be leased)
exclusively to other tenants which are specifically designated on the Project
Site Plan for the use in common by Tenant with others.  The Common Area may; but
need not, include parking areas, access and perimeter roads, sidewalks,
landscaped areas and similar areas and facilities.  Tenant's use of the Common
Area, and its rights and obligations with respect thereto, are more particularly
described in Article X.

       "County" means the county in which the Premises are located.

       "Event of Default" means the Tenant defaults described in Section 15.1.

       "Guarantor" means the person(s) or entity identified in Item 14 of the
Basic Lease Provision, if any.

       "HVAC" means the heating, ventilating and air conditioning system serving
the Building.

       "Hazardous Materials" is defined in Section 6.1.

       "Landlord's Agents" means Landlord's authorized agents, representatives,
property managers (whether as agents or independent contractors), consultants,
contractors, partners, subsidiaries, affiliates, directors, officers and
employees, including without limitation the Additional Insureds named in Item 16
of the Basic Lease Provisions.

       "Landlord's Architect" means the architect or architectural firm from
time to time designated by Landlord to perform the function of Landlord's
Architect set forth in this Lease.  Landlord' Architect initially shall be the
architect or architectural firm designated in Item 13 of the basic Lease
Provisions.

       "Lease" means this instrument together with all exhibits, amendments,
addenda and riders attached hereto and made a part hereof.

       "Maintenance Expenses" is defined in Section 7.2.

       "Monthly Rent" means the monthly rental which Tenant is to pay to
Landlord pursuant to Section 4.1., as the same may be adjusted from time to time
as set forth in this Lease.  See also Rent.

       "Mortgage" means any mortgage, deed of trust, or similar lien on or
covering the Project or any part thereof.

       "Mortgagee" means any mortgagee of a mortgage, beneficiary of a deed of
trust or lender having a lien on or covering the Project or any part thereof.

       "Notice" means each and ever notice, communication, request, demand,
reply or advice, or duplicate thereof, in this Lease provided or permitted to be
given, made or accepted by either party to any other party which shall be in
writing and given in accordance with the provisions of Section 21.6.

       "Outside Areas" means the areas of the Premises outside the exterior
walls of the Building, including without limitation the roof of the Building, as
shown in Exhibit A.

       "Plans" means the final working drawings for the construction of the
Tenant Improvements to be prepared and approved as set forth in the Work Letter.

                                          3.

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       "Premises" means the premises shown in Exhibit A of the exclusive use of
Tenant.  The Premises include the Building at the address set forth in Item 2 of
the Basic Lease Provisions.

       "Project" means that certain real property, and all improvements thereon,
including the Building  and other buildings, if any, located within the
boundaries of such property, shown on the Project Site Plan.

       "Project Site Plan" means Exhibit B.

       "REA" means the Reciprocal Easement Agreement applicable in the Project,
if any, recorded in the Official Records of the County as the same may be
amended from time to time.

       "Real Property Taxes" is defined in Section 7.4.

       "Rent" means Monthly Rent and Additional Rent, collectively.

       "Restrictions" means, collectively, the CC&R's, the REA and any other
covenants, conditions or restrictions affecting the Premises or any portion
thereof, as the same may be amended from time to time.

       "Rules and Regulations" means the rules and regulations attached hereto
as Exhibit G and any modifications thereto promulgated by Landlord or Landlord's
Agents from time to time.

       "Security Deposit" means the amount set forth in Item 10 of the Basic
Lease Provisions, which shall be paid to Landlord by Tenant pursuant to Section
4.6.

       "Substantial Completion" and "substantially completed" means et Tenant
Improvements, or repair of the Premises following a Casualty, have been fully
completed except of minor details of construction , mechanical adjustments or
decoration which do not materially interfere with Tenant's use and enjoyment of
the Premises (items normally referred to as "punch list" items).

       "Tenant Delays" means (i) any and all delays in the construction of the
Tenant Improvements due to the fault of the Tenant, as defined and specified in
the Work Letter, and (ii) Tenant's failure to deliver to Landlord prior to the
Anticipated Commencement Date, executed copies of policies of insurance or
certificates thereof as required under Section 11.8.

       "Tenant Improvements" means those certain improvements, if any, to be
constructed on the Premises as provided in Article XX and in the Work Letter.

       "Tenant's Agents" means Tenant's agents, representatives, consultants,
contractors, affiliates, subsidiaries, officers, directors, employees,
subtenants, quests and invitees.

       "Tenant's Personal Property" means Tenant's removal trade fixtures,
furniture, equipment and other personal property located in or on the Premises.

       "Term" means the term of this lese, as provided in Section 3.2.

       "Unavoidable Delay" means any delays which are beyond a party's
reasonable control, including, but not limited to, delays due to inclement
weather, strikes, acts of God, inability to obtain labor or materials, inability
to secure governmental approvals or permits, governmental restrictions, civil
commotion, fire, earthquake, explosion, flood hurricane, the elements, or the
public enemy, action or interference of governmental authorities or agents, war,
invasion, insurrection, rebellion, riots, lockouts or any other cause whether
similar or dissimilar to the foregoing which is beyond a party's reasonable
control; provided however, that in no event shall any of the foregoing ever
apply with respect to the payment of any monetary obligation.

       "Work Letter" means the work letter between Landlord and Tenant regarding
the construction of the Tenant Improvements, if any, in the form of Exhibit C.

                                          4.
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       2.2.   Other Definitions.  Terms defined elsewhere in this Lease, unless
the context clearly requires otherwise, shall have the meaning as there given.

                                    ARTICLE III

                                 PREMISES AND TERM

       3.1    Lease of Premises.  Subject to and upon the terms and conditions
set forth therein, Landlord hereby leases the Premises to Tenant, and Tenant
hereby leases the Premises from Landlord.

       3.2    Term and Commencement.  Unless sooner terminated as provided
herein, the term of this Lease shall be for that period of years and months set
forth in Item 8 of the Basic Lease Provisions, as the same may be extended in
accordance with any option or options to extend the Term granted herein, and
shall commence (the "Commencement Date") on the earlier of (i) the date upon
which the City has approved the Tenant Improvements in accordance with its
building code, as evidenced by its written approval thereof in accordance with
the building permits issued for the Tenant Improvements, provided that in such
event Landlord shall deliver to Tenant a certificate of occupancy (temporary or
otherwise) from the City for the Premises with five (5) business days of such
date, (ii) the date Landlord's Architect has certified in writing that the
Tenant Improvements are substantially completed in accordance with the Plans,
provided that in such event Landlord shall deliver to Tenant a certificate of
occupancy (temporary or otherwise) from the City for the Premises within five
(5) business days of such date, or (iii) the date Tenant commences occupancy of
the Premises.  When the actual Commencement Date has occurred, Landlord and
Tenant shall execute a Commencement Date Memorandum in the form shown in Exhibit
D.  Landlord and Tenant anticipate that the Term will commence on the
"Anticipate Commencement Date" set forth in Item 7 of the Basic Lease
Provisions, but the Anticipated Commencement Date shall in no event affect the
actual Commencement Date, which shall be determined as set forth in this Section
3.2.

       3.3.   Early Entry.  Tenant and its authorized agents, contractors,
subcontractors and employees shall be granted a license by Landlord to enter
upon the Premises, at Tenant's sole risk and expense, during ordinary business
hours prior t the Commencement Date, for the sole purpose of installing Tenant's
trade fixtures and equipment in the Premises; provided, however, that (i) the
provisions of this Lease, other than with respect to the payment of Monthly
Rent, shall apply during such early entry, including, but not limited to, the
provisions of Article XI relating to Tenant's indemnification of Landlord, (ii)
prior to any such entry, Tenant shall pay for and provide evidence of the
Insurance to be provided by Tenant pursuant to the provisions of Article XI,
(iii) Tenant shall pay all utility, service and maintenance charges for the
Premises attributable to Tenant's early entry and use of the Premises as
reasonably determined by Landlord, (iv) Tenant shall not unreasonably interfere,
delay or hinder Landlord, its agents, contractors or subcontractors in the
construction of the Tenant Improvements in accordance with the provisions of
this Lease, and (v) Tenant shall not use the Premises of the storage of
inventory or otherwise commence the operation of business during the period of
such early entry.  Upon Tenant's breach of any of the foregoing conditions,
Landlord may, in addition to exercising any of its other rights and remedies set
forth herein, revoke such license upon notice to Tenant.  Early entry by Tenant
in accordance with this Section 3.3 shall not constitute occupancy of the
Premises of purposes of establishing the Commencement Date.

       3.4    Delay in Possession.  If for any reason Landlord cannot deliver
possession of the Premises to Tenant with the Tenant Improvements substantially
completed on or before the Anticipated Commencement Date, Landlord shall not be
subject to any liability therefor, and such failure shall not affect the
validity of this Lease or the obligations of Tenant hereunder, but in such case,
Tenant shall not be obligated to pay Monthly Rent or Additional Rent  other than
as provided in Section 3.3 and Section 3.5 until the Commencement Date has
occurred.  If the Commencement Date has not occurred within one hundred twenty
(120) days following the Anticipated Commencement Date plus periods attributable
to Tenant Delays or Unavoidable Delay, Tenant may, at its option, by Notice to
Landlord within ten (10) days thereafter, terminate this Lease, in which event
the parties shall be discharged from all further obligations hereunder;
provided, however, if tenant fails to give such notice to Landlord within such
ten-day period, Tenant shall no longer have the right to terminate this Lease
under this Section 3.4.  Tenant understands that, notwithstanding anything to
the contrary contained herein, Landlord shall have no obligation to deliver
possession of the Premises to Tenant for so long as Tenant fails to deliver to
Landlord execute copies of policies of insurance or certificates thereof as
required under Section 11.8.

                                          5.
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       3.5    Tenant Delays.  The Commencement Date shall not be delayed or
postponed due to Tenant Delays, and the Term.  Tenant's obligations to pay Rent
and all of Tenant's other obligations under this Lease shall commence upon the
date which would have been the Commencement Date but for Tenant Delays.

       3.6    Condition of Premises.  Landlord's sole construction obligations,
if any, regarding Tenant Improvements of the Premises are set forth in Article
XX and the Work Letter.  The taking of possession or use of the Premises by
Tenant for any purpose other than as provided in Section 3.3 shall conclusively
establish that Tenant has inspected the Premises and accepts them as being in
good and sanitary order, condition and repair and that the Tenant Improvements
have been constructed in accordance with the Plans; provided, however, Tenant
shall have a period of thirty (30) days after taking possession of the Premises
in which to notify Landlord in writing of any construction deficiencies or
defects and any uncompleted punch list items (the punch list shall be limited to
items required to be accomplished by Landlord under the Work Letter) and, except
as hereafter provided, Landlord will repair, replace or compete at its expense
all items referenced in such notice within thirty (30) days after receipt of
such notice, subject to Unavoidable Delay, or as soon thereafter as Landlord,
acting in good faith, can repair, replace or complete the same.  If Landlord
reasonably contends that a particular item in such notice is not justified, the
parties will refer the issue to Landlord's Architect for resolution.  Landlord's
Architect's determination shall be final and binding upon the parties.  Nothing
in this Section 3.6 shall limit or expand Landlord's maintenance and repair
obligations set forth in Article IX.

       3.7    No Representations.  Tenant acknowledges that neither Landlord nor
any of Landlord's Agents has made any representations or warranties as to the
suitability or fitness of the Premises of the conduct of Tenant's business,
including, but not limited to, any representations or warranties regarding
zoning or other land use matters, or for any other purpose, and that neither
Landlord nor any of Landlord's Agent has agreed to undertake any alterations or
additions or construct any Tenant Improvements to the Premises except as
expressly provided in this Lease.

                                     ARTICLE IV

                                RENT AND ADJUSTMENTS

       4.1    Monthly Rent, from and after the Commencement Date, Tenant shall
pay to the Landlord, for each calendar month of the Term, the Monthly Rent set
forth in Item 9 of the Basic Lease Provision, as the same may be adjusted from
time to time as provided in Section 4.2.  Monthly Rent shall be due and payable
to Landlord in lawful money of the United States, in advance, on the first (1st)
day of each calendar month of the Term, without abatement, deduction, claim or
offset, and without prior notice, invoice or demand, at Landlord's address set
forth in Item 1 of the Basic Lease Provisions or at such place as Landlord may
from time to time designate tenant's payment of Monthly Rent for the first (1st)
month of the Term shall be delivered to Landlord concurrently with Tenant's
execution of this Lease.

       4.2    Adjustments.  Monthly Rent shall be adjusted from time to time as
provided in the Addendum.

       4.3    Additional Rent.  All additional Rent shall be due and payable to
Landlord in lawful money of the United States, at Landlord's address set forth
in Item 1 of the Basic Lease Provisions or at such other place as Landlord may
from time to time designate, without abatement, deduction, claim or offset,
within ten (10) days of receipt of Landlord's invoice or statement for same, or,
if this Lease provides another time for the payment of certain items of
Additional Rent, then at such other time.

       4.4    Prorations.  If the Commencement Date is not the first (1st) day
of the month, or if the expiration of the Term f this Lease is not the last day
of a month, a prorated installment of Monthly Rent based on a thirty (30) day
month shall be paid for the fractional month during which the Term commences or
terminates.

       4.5    Late Payment Charges.  Tenant acknowledges that late payment by
Tenant to Landlord of Rent under this Lease will cause Landlord to incur costs
not contemplated by this Lease, the exact amount of which is extremely difficult
or impracticable to determine.  Such costs include, but are not limited to,
processing and accounting changes, late charges that may be imposed on Landlord
by the terms of any Mortgage, and late charges and penalties that may be imposed
due to late payment of Real Property Taxes.  Therefore, if any installment of

                                          6.
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Monthly Rent or any payment of Additional Rent due from Tenant is not received
by Landlord in good funds by the second (2nd) calendar day from the applicable
due date, Tenant shall pay to Landlord an additional sum equal to five percent
(5%) of the amount overdue as a late charge for every month or portion thereof
that such amount remains unpaid.  The parties acknowledge that this late charge
represents a fair and reasonable estimate of the costs that Landlord will incur
by reason of the late payment by Tenant.  Acceptance of any late Rent and late
charge therefor shall not prevent Landlord from exercising any of the other
rights and remedies available to Landlord for any other Event of Default under
this Lease.  Notwithstanding the foregoing (i) should any payment of Rent by
personal check be rejected for insufficient funds, Landlord shall have the
right, upon notice to Tenant, to require that all future payments by Tenant
under this Lease be by cashier's check acceptable to Landlord, and (ii) upon the
third (3rd) occurrence during the Term of Tenant's failure to timely pay Rent
when due, Landlord may, upon notice to Tenant, require that Monthly Rent for the
balance of the Term be made in quarterly installments, in advance, in an amount
equal to the sum of the Monthly Rent amounts payable during such three (3) month
period.

       4.6    Security Deposit.  Tenant has deposited with Landlord the sum set
forth in Item 10 of the Basic Lease Provisions as a Security Deposit for the
full and faithful performance of every provision of this Lease to be performed
by Tenant.  Landlord may apply, in its sole discretion at any time during the
Term of this Lease, all or any part of the Security Deposit to the payment of
all prepaid expenses by Landlord for which Tenant would be required to reimburse
Landlord under this Lease, including without limitation for Tenant Improvements
and Broker commissions.  Such application of the Security Deposit is not and
shall never be dependent upon an Event of Default.  Upon an Event of Default,
and whether or not Landlord is informed of or has knowledge of the Event of
Default, the Security Deposit (if not already applied as hereinabove provided)
shall be deemed to be automatically applied, without waiver of any rights
Landlord may have under this Lease or at law or in equity as a result of an
Event of Default, to the payment of any Rent not paid when due, the repair of
damage to the Premises or the payment of any other amount which Landlord may
spend or become obligated to spend by reason of an Event of Default, or to
compensate Landlord for any other loss or damage which Landlord may suffer by
reason of an Event of Default, to the full extent permitted by law.  If any
portion of the Security Deposit is so applied, Tenant shall, within ten (10)
days after written demand therefor deposit cash with Landlord in an amount
sufficient to restore the Security Deposit to its original amount.  Landlord
shall not be required to keep the Security Deposit separate from its general
funds.  The unused portion of the Security Deposit, if any, shall be returned to
Tenant within thirty (30) days of the expiration of this Lease or any
termination of this Lease not resulting from an Event of Default, so long as
Tenant has vacated the Premises in the manner required by this Lease and paid
all sums required to be paid under this Lease, providd however that Landlord may
retain the Security Deposit until such time as any amounts of Additional Rent
due from Tenant have been determined and paid in full.  Tenant hereby waives the
provisions of Section 1950.7(c) of the California Civil Code and any present or
future laws otherwise governing the return of the Security Deposit to Tenant to
the extent of reasonably anticipated Additional Rent retained by Landlord
pursuant to the previous sentence.

                                     ARTICLE V

                                        USE

       5.1    Tenant's Use.  Tenant shall use the Premises solely for the
purposes set forth in Item 11 of the Basic Lease Provisions and shall use the
Premises for no other purpose.  Tenant's use of the Premises shall be subject to
all of the terms and conditions of this Lease, including, but not limited to,
all the provisions of this Article V.  Tenant, at Tenant's sole cost and
expense, shall procure, maintain and make available for Landlord's inspection
throughout the Term, all governmental approvals, licenses and permits required
for the proper and lawful conduct of Tenant's permitted use of the Premises.  At
Landlord's request, Tenant shall deliver copies of all such approvals, licenses
and permits to Landlord.

       5.2    Compliance with Applicable Laws.  Throughout the Term, Tenant, at
Tenant's sole cost and expense, shall comply with, and shall not use the
Premises, Building or Common Area, or suffer or permit anything to be done in or
about the same which will in any way conflict with, (i) any and all present and
future laws, statutes, zoning restrictions, ordinances, orders, regulations,
directions, rules and requirements of all governmental or private authorities
having jurisdiction over all or any part of the Premises (including, but not
limited to, state, municipal, county and federal governments and their
departments, bureaus, boards and officials)  pertaining to the use or occupancy
of, or applicable to, the Premises or privileges appurtenant to or in connection
with the enjoyment of the

                                          7.
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Premises, (ii) any and all applicable federal, state and local laws, regulations
or ordinances pertaining to air and water quality, hazardous materials (as
defined in Section 6.1), waste disposal, air emissions and other environmental
or health and safety matters, zoning, land use or occupation of the Project or
any portion thereof, (iii) the requirements of the Board of Fire Underwriters or
other similar body now or hereafter constituted relating to or affecting the
condition, use or occupancy of the Project or any portion thereof, (iv) any
covenants, conditions, easements or restrictions, including but not limited to
the Restrictions, now or hereafter affecting or encumbering the Project or any
portion thereof, regardless of when they become effective, (v) the Rules and
Regulations, and (vi) good business practices (collectively, (i) through (vi)
above are hereinafter referred to as "Applicable Laws").  Tenant shall not
commit any waste of the Premises, Building or Project, or any public or private
nuisance or any other act or thing which might or would disturb the quiet
enjoyment of any other tenant of Landlord or any occupant of nearby property.
Tenant shall not place or permit to be placed any loads upon the floors, walls
or ceilings in excess of the maximum designed load specified by Landlord or
which might damage the Building, or place or permit to be placed any harmful
liquids in the drainage systems, and Tenant shall not dump or store, or permit
to be dumped or stored, any inventory, waste materials, refuse or other
materials or allow any such materials to remain in the Outside Areas or Common
Area, except in designated enclosed trash areas.  Tenant shall not conduct or
permit any suctions, sheriff's sales or other like activities at the Project or
any portion thereof.

       5.4    Landlord's Right of Entry.  Landlord and Landlord's Agents shall
have the right to enter the Premises at all reasonable times upon reasonable
notice to Tenant, except for emergencies in which case no notice shall be
required, to inspect the Premises, to take samples and conduct environmental
investigations, to post notices of nonresponsibility and similar notices and
signs indicating the availability of the Premises for sale, to show the Premises
to interested parties such as prospective lenders and purchasers, to make
necessary Alterations or maintenance and repairs, to perform Tenant's
obligations as permitted herein when Tenant has failed to do so and, at any
reasonable time after one hundred eighty (180) days prior to the expiration of
the Term, to place upon the Premises reasonable signs indicating the
availability of the Premises for lease and to show the Premises to prospective
tenants, all without being deemed to have caused an eviction of Tenant and
without any liability to Tenant or abatement of Rent.  The above rights are
subject to reasonable security regulations of Tenant, and in exercising its
rights set forth herein, Landlord shall endeavor to cause the least possible
interference with Tenant's business.  Landlord shall at all times have the right
to retain a key which unlocks all of the doors in the Premises, excluding
Tenant's vaults and safes, and Landlord and Landlord's Agents shall have the
right to use any and all means which Landlord may deem proper to open the doors
in an emergency to obtain entry to the Premises, and any entry to the Premises s
obtained by Landlord or Landlord's Agents shall not under any circumstances be
deemed to be a forcible or unlawful entry into, or a detainer of, the Premises,
or an eviction of Tenant from the Premises.

                                     ARTICLE VI

                                HAZARDOUS MATERIALS

       6.1    Definition of Hazardous Materials.  For purposes of this Lease,
the term "Hazardous Materials" includes (i) any "hazardous materials" as defined
in Section 25501(k) of the California Health and Safety Code unless Tenant
establishes, to the satisfaction of Landlord, that because of the quantity,
concentration, or physical or chemical characteristics, such substance or matter
does not pose a present or potential hazard to human health and safety or to the
environment, (ii) any other substance or matter which results in liability to
any person or entity from exposure to such substance or matter under any
statutory or common law theory, and (iii) any substance or matter which is in
excess of relevant and appropriate levels set forth in any applicable federal,
state or local law or regulation pertaining to any hazardous or toxic substance,
material or waste, or for which any applicable federal, state or local agency
orders or otherwise requires removal, treatment or remediation.

       6.2    Use of Hazardous Materials.  Tenant shall not cause or permit any
Hazardous Materials to be brought upon, stored, used, generated, released into
the environment or disposed of on, under, from or about the Premises (which for
purposes of this Article VI shall include, but is not limited to, subsurface
sell and ground water) by Tenant or Tenant's Agents without the prior written
consent of Landlord.  Landlord may, in its sole discretion, place such
conditions as Landlord deems appropriate with respect to such Hazardous
Materials, and may further require that Tenant demonstrates to Landlord that
such Hazardous Materials are necessary or useful to Tenant's business and will
be generated, stored, sued and disposed of in a manner that complies with all
Applicable Laws regulating such Hazardous Materials and with good business
practices.  Tenant understands that Landlord may

                                          8.
<PAGE>

utilize an environmental consultant to assist in determining conditions of
approval and monitoring in connection with the presence, storage, generation or
use of Hazardous Materials on or about the Premises by tenant, and Tenant agrees
that any costs reasonably incurred by Landlord in connection with any such
environmental consultant's services shall be reimbursed by Tenant to Landlord as
Additional Rent upon demand.

       6.3    Environmental Questionnaire Disclosure.  Prior to the execution of
this Lease, Tenant shall complete, execute and deliver to Landlord an
Environmental Questionnaire and Disclosure Statement (the "Environmental
Questionnaire") in the form of  Exhibit H, and Tenant shall certify to Landlord
all information contained in the Environmental Questionnaire as true and correct
to the best of Tenant's knowledge and belief.  The completed Environmental
Questionnaire shall be deemed incorporated into this Lease for all purposes, and
Landlord shall be entitled to rely fully on the information contained therein.
On each anniversary of the Commencement Date (each such date is hereinafter
referred to as a "Disclosure Date"), until and including the first Disclosure
Date occurring after the expiration or sooner termination of this Lease, Tenant
shall disclose to Landlord in writing the names and amounts of all Hazardous
Materials, or any combination thereof, which were stored, generated, used or
disposed of on, under or about the Premises for the twelve-month period prior to
each Disclosure Date, and which Tenant Intends to store, generate, use or
dispose of on, under or about he Premises through the next Disclosure Date.  At
Landlord's option, Tenant's disclosure obligations under this Section 6.3 shall
include a requirement that Tenant update, execute and deliver to Landlord the
Environmental Questionnaire as the same may be modified by Landlord from time to
time.  In addition to the foregoing, Tenant shall promptly notify Landlord of,
and shall promptly provide Landlord with true, correct, complete and legible
copies of, all of the following environmental items relating to the Premises:
reports filed pursuant to any self-reporting requirements; reports filed
pursuant to any Applicable Laws or this Lease; all permit applications, permits,
monitoring reports, workplace exposure and community exposure warnings or
notices, and all other reports, disclosures, plans or documents (even those
which may be characterized as confidential) relating to water discharges, air
pollution, waste generation or disposal, underground storage tanks or Hazardous
Materials; all orders, reports, notices, listings and correspondence (even those
which may be considered confidential) of or concerning the release,
investigation, compliance, clean up, remedial and corrective actions, and
abatement of Hazardous Materials whether or not required by Applicable Laws; and
all complaints, pleading sand other legal documents filed against Tenant related
to Tenant's use, handling, storage or disposal of Hazardous Materials.

       6.4    Inspection; Compliance.  Landlord and Landlord's Agents shall have
the right, but not the obligation to Inspect, Investigate, sample and/or monitor
the Premises, including any air, soil, water, groundwater or other sampling, and
any other testing, digging, drilling or analyses, at any time to determine
whether Tenant is complying with the terms of this Article VI, and in connection
therewith, Tenant shall provide Landlord with full access to all relevant
facilities, records and personnel.  If Tenant is not in compliance with any of
the provisions of this Article VI, or in the event of a release of any Hazardous
Material on, under, from or about the Premises, Landlord and Landlord's Agents
shall have the right, but not the obligation, without limitation on any of
Landlord's other rights and remedies under this Lease, to immediately enter upon
the Premises and to discharge Tenant's obligations under this Article VI at
Tenant's expense, including without limitation the taking of emergency or
long-term remedial action.  Landlord and Landlord's Agents shall endeavor to
minimize interference with Tenant's business but shall not be liable for any
such interference.  In addition, Landlord, at Tenant's sole cost and expense,
shall have the right, but not the obligation, to join and participate in any
legal proceedings or actions initiated in connection with any claims or causes
of action arising out of the storage, generation, use or disposal by Tenant or
Tenant's Agents of Hazardous materials on, under, from or about the Premises.
All sums reasonably disbursed, deposited or incurred by Landlord in connection
herewith, including, but not limited to, all costs, expenses and actual
attorneys fees, shall be due and payable by Tenant to Landlord, as an Item of
Additional Rent, on demand by Landlord, together with Interest thereon at the
Applicable Rate from the date of such demand until paid by Tenant.

       6.5    Tenant Obligations.  If the presence of any Hazardous Materials
on, under or about the Premises or the Project  caused or permitted by Tenant or
Tenant's Agents results in (i) injury to any person, (ii) injury to or
contamination of the Premises or the Project, or (iii) injury to or
contamination of any real or personal property wherever situated, Tenant, at its
sole cost and expense, shall promptly take all actions necessary to return the
Premises and the Project to the condition existing prior to the introduction of
such Hazardous Materials to the Premises and the Project and to remedy or repair
any such injury or contamination.  Without limiting any other rights or remedies
of Landlord under this Lease, Tenant shall pay the cost of any cleanup work
performed on, under or about the Premises, the Building and the Project as
required by this Lease or any Applicable Laws in connection

                                          9.
<PAGE>

with the removal, disposal, neutralization or other treatment of such Hazardous
Materials caused or permitted by Tenant or Tenant's Agents.  If Landlord has
reason to believe that Tenant or Tenant's Agents may have caused or permitted
the release of Hazardous Materials on, under, from or about the premises, then
Landlord may require Tenant, at Tenant' sole cost and expense, to conduct
monitoring activities on or about the Premises satisfactory to Landlord, in its
sole and absolute judgment, concerning such release of Hazardous materials on,
under, from or about the Premises.  Notwithstanding anything in the foregoing,
Tenant shall not, without Landlord's prior written consent take any remedial
action in response to the presence of any Hazardous Materials on, under or about
the Premises, or enter into any settlement agreement consent decree or other
compromise with any governmental agency with respect to any Hazardous Materials
claims; provided, however, Landlord's prior written consent shall not be
necessary in the even that the presence of Hazardous Materials on, under or
about the Premises (i) poses an immediate threat to the health, safety or
welfare of any individual or (ii) is of such a nature that an immediate remedial
response is necessary it is not possible to obtain Landlord's consent before
taking such action.

       6.6    Indemnification.  To the fullest extent permitted by law, Tenant
hereby agrees to indemnify hold harmless, protect and defend (with attorneys
acceptable to Landlord) Landlord and Landlord's Agents, and any successors to
all or any portion of Landlord's interest in the Premise, the Building and the
Project and their directors, officers, partners, employees authorized agents,
affiliates, representatives and Mortgagees, from and against any and all
liabilities, losses, damages (including, but not limited to, damages for the
loss or restriction on use of rentable or usable space or any amenity of the
Premises, the Building and the Project or damages arising from any adverse
impact on marketing of space in the Premises, the Building and the Project),
diminution in the value of the Premises, the Building and the Project,
judgments, fines, demands, claims, recoveries, deficiencies, costs and expenses
(including, but not limited to, reasonable attorneys' fees, disbursements and
court costs and all other professional or consultant's expenses), whether
foreseeable or unforeseeable, arising directly or indirectly out of the
presence, use, generation, storage, treatment, on or off-site disposal or
transportation of Hazardous Materials on, into, from, under or about the
Premises, the necessary repair, restoration, clean-up (including but not limited
to, the costs of investigation and removal of Hazardous Materials) or
detoxification of the Premises, the Building and the Project and the preparation
of an closure or other required plans, whether or not such action is required or
necessary during the Term or after the expiration of this lease.

       6.7    Tenant's Responsibility at Conclusion of Lease.  Promptly upon the
expiration or sooner termination of this Lese, Tenant shall represent to
Landlord in writing that (i) Tenant has made a diligent effort to determine
whether any Hazardous Materials are on, under or about the Premises as a result
of any acts or omissions of Tenant or Tenant's Agents and (ii) no such Hazardous
Materials exist on, under or about the Premises other than as specifically
identified to Landlord by Tenant in writing.  If Tenant discloses the existence
of Hazardous Materials on, under or about the Premises, or if Landlord at any
time discovers that Tenant or Tenant's Agents caused or permitted the release of
a hazardous Material on, under, from or about the Premises, Tenant shall, at
Landlord's request, immediately prepare and submit to Landlord within thirty
(30) days after such request a comprehensive plan, subject to Landlord's
approval, specifying the actions to be taken by Tenant to return the Premises to
the condition existing prior to the Introduction of such Hazardous Materials.
Upon Landlord's approval  of such clean up plan, Tenant shall, at Tenant's sole
cost and expense, without limitation on any rights and remedies of Landlord
under this Lease or at law or in equity, immediately implement such plan and
proceed to clean up such Hazardous Materials in accordance with all Applicable
Laws and as required by such plan and this Lease.

       6.8    Tenant shall not be responsible for any Hazardous Materials
contamination of the Project occurring prior to the Commencement Date and not
otherwise caused by the acts or omissions of Tenant or Tenant's Agents.

                                    ARTICLE VII

                       MAINTENANCE EXPENSES; TAXES; UTILITIES

       7.1    Payment of Maintenance Expenses.  Prior to the Commencement Date
and thereafter prior to the commencement of each of Landlord's fiscal years
during the Term, Landlord shall give Tenant a written estimate of Maintenance
Expenses (hereafter defined) for the ensuing fiscal year or partial fiscal year,
as the case may be.  Tenant shall pay, as an item of Additional Rent, such
estimated amount in equal monthly installments, in advance, or on before the
first (1st) day of each calendar month concurrent with its payment of Monthly
Rent.  If Landlord has

                                         10.
<PAGE>

not furnished its written estimate by the time set forth above, Tenant shall pay
monthly installments of Maintenance Expenses at the rate established for the
prior fiscal year, if any; provided that when the new estimate is delivered to
Tenant, Tenant shall at the next monthly payment date pay Landlord any accrued
deficiency based on the new estimate, or Landlord shall credit any accrued
overpayment based on such estimate toward Tenant's next installment payment
hereunder.  Within a reasonable period of time after the end of each fiscal year
(in no event less than one hundred (120) days after the end of each fiscal year
unless sooner completed by Landlord) Landlord shall furnish Tenant a statement
showing in reasonable detail the actual Maintenance Expenses incurred for the
period in question.  If Tenant's estimated payments are less than the actual
Maintenance Expenses as shown by the applicable statement, Tenant shall pay the
difference to Landlord within thirty (30) days thereafter.  If Tenant shall have
overpaid Landlord, Landlord shall credit such overpayment toward Tenant's next
installment payment hereunder.  When the final determination is made of the
actual Maintenance Expenses of the fiscal year in which this lease terminates,
Tenant shall, even if this Lease has terminated, pay to Landlord with fifteen
(15) days after notice the excess of such actual Maintenance Expenses over the
estimate of Maintenance Expenses paid.  Conversely, any overpayment shall be
rebated by Landlord to Tenant.  If Landlord shall determine at any time that the
estimate of Maintenance Expenses of the current fiscal year is or will become
inadequate to meet all such Maintenance Expenses for any reason, Landlord shall
immediately determine the approximate amount of such inadequacy and issue a
supplemental estimate as to such Maintenance Expenses and Tenant shall pay any
increase as reflected by such supplemental estimate, Landlord shall keep or
cause to be kept separate and complete books of accounting covering all
Maintenance Expenses and shall preserve for at least twelve (12) months after
the close of each fiscal year all material documents evidencing said Maintenance
Expenses for that fiscal year.  Tenant, at its sole cost and expense, through
any certified public accountant designated by it, shall have the right, during
reasonable business hours and not more frequently than once during any fiscal
year, to examine and/or audit the books and documents mentioned above evidencing
such costs and expenses of the previous fiscal year.  Any delay or failure by
Landlord in delivering any estimate or statement pursuant to this Section 7.1
shall not constitute a waiver of its right to require Tenant to pay all
Maintenance Expenses pursuant hereto.

       7.2    Definition of Maintenance Expenses.  The term "Maintenance
Expenses" means all costs and expenses incurred by Landlord or Landlord's Agents
in connection with the operation, maintenance and repair of the Outside Areas
and of the Building's proportionate share of the Project (such share determined
as the ratio of the Building Square Footage to the total square footage of the
floor area leased or held for lease by tenants as of the date upon which such
computation is made of all buildings within the Project, as determined by
Landlord), including, but not limited to, the following:  actual costs and
expenses incurred in connection with labor and materials utilized in the
performance of Landlord's maintenance and repair obligations pursuant to Section
9.1; any and all assessments levied against the Premises or the Project pursuant
to the Restrictions; water, electrical and other utility services not supplied
directly to a tenant, removal of trash, rubbish and other refuse from the
Project, cleaning of and replacement of signs of the Project, including
relamping and repairs made as required; repair, operation and maintenance of the
Common Area, including, but not limited to, removal of any obstructions not
reasonably required for the Common Area uses, prohibition and removal of the
sale or display of merchandise or the storing of materials and/or equipment in
the Common Area, and payment of all electrical, water and other utility charges
or fees for services furnished to the Common Area; obtaining and maintaining
public liability, property damage and other forms of insurance which Landlord
may or is required to maintain in connection with the Building and the Project
(including the payment of any deductibles thereunder); costs incurred in
connection with compliance of any laws or changes in laws applicable to the
Project, including without limitation any laws or changes in laws regarding
Hazardous materials; establishment of reasonable reserves for replacements
and/or repair of Outside Areas and Common Area Improvements, equipment and
supplies; employment of such personnel as Landlord may deem reasonably
necessary, if any, to direct parking and police the Common Are and facilities;
the cost of any capital improvements (other than tenant improvements for
specific tenants) made by or on behalf of Landlord to the Outside Areas, the
Project or Common Area to the extent of the amortized amount thereof over the
useful life of such capital improvements calculated at a market cost of funds,
all as determined by Landlord, for each such year of useful life during the
Term; depreciation of machinery and equipment used in connection  with the
maintenance and operation of the Outside Areas of the Common Area for whicha
reasonable reserve has not been established as herein provided; employment of
personnel used in connection with any of the foregoing, including, but not
limited to, payment or provision for unemployment insurance, worker's
compensation insurance and other employee costs; the cost of bookkeeping,
accounting and auditing and legal  services provided in connection with any of
the foregoing; the cost of any respect to Hazardous Materials; the cost of any
tax, insurance or other consultant utilized in connection with the Project; and
any other items reasonably necessary from time to time to property repair,
replace,

                                         11.

<PAGE>

maintain and operate the Outside Areas of the Project.  Maintenance Expenses
shall also include a management fee to cover Landlord's management, overhead and
administrative expenses (which management fee shall not exceed the
then-prevailing market management fee being charged by professional property
managers for projects located in the vicinity of the Project that are comparable
to the Project provided, however, if Landlord elects to delegate its duties
hereunder to a professional property manager then Maintenance Expenses shall not
include any management fee to Landlord (except for any costs and/or
administrative and overhead expenses reasonably incurred by Landlord in
monitoring and auditing the performance delegated to the professional property
manager), but under such circumstances any reasonable amounts paid to the
professional property manager shall be added to and deemed a part of Maintenance
Expenses.  If Landlord elects to perform any maintenance or repair herein
described in conjunction with properties other than the Project, and if a common
maintenance contractor is contracted with for such purpose, the contract amount
allocable to the project, as reasonably determined by Landlord, shall be added
to and deemed a part of Maintenance Expenses hereunder.  Increases in
Maintenance Expenses by reason of a disproportionate impact by Tenant thereon
(for example, and not by way of limitation, increases in costs of trash
collection because of Tenant's excessive generation of trash or increases in
costs of Outside Areas or Common Area maintenance because of Tenant's
Unpermitted storage of inventory or materials in the Outside Areas or Common
Area), in Landlord's reasonable judgment, may be billed by Landlord, as an item
of Additional Rent, directly to Tenant.

       7.3    Payment of Real Property Taxes.  Landlord shall pay, at Tenant's
expense and subject to reimbursement by Tenant as hereinafter set forth, all
Real Property Taxes (as hereinafter defined) levied against the Premises during
the Term. The amount of such payments by Landlord shall be based on tax bills
and notices received by Landlord pertaining to the Premises (and if Tenant
receives any such tax bills or notices, Tenant shall immediately forward same to
Landlord) and such payment shall be made before the last day such Real Property
Taxes are payable without penalty.  Tenant shall reimburse to Landlord, as an
item of Additional Rent, the full amount of such Real property Taxes paid by
Landlord within ten (10) days after Landlord's statement or invoice thereof,
which statement or invoice shall be accompanied by reasonable evidence of the
amount of such Real Property Taxes.  Alternatively, Landlord may elect to
include the cost of Real Property Taxes in the definition of Maintenance
Expenses, in which event Tenant shall pay such cost in the manner set forth in
Section 7.1.

       7.4.   Definition of Real Property Taxes.  The term "Real Property Taxes"
means any form of tax, assessment, charge, license, fee, rent tax, levy, penalty
(if a result of Tenant's delinquency), real property or other tax (other than
Landlord's net income, estate, succession, inheritance, or franchise taxes), now
or hereafter imposed with respect to the Premises or any part thereof (including
any Alterations), this Lease of any Rent payable under this Lease by any
authority having the direct or indirect power to tax, or by any city, county,
state or federal government or any improvement district or other district or
division thereof, whether such tax or any portion thereof (i) is determined by
the area of the Premises or any part thereof or the Rent payable under this
Lease by Tenant including, but not limited to, any gross income or excise tax
levied by any of the foregoing authorities with respect to receipt of the Rent
due under this Lease, (ii) is levied or assessed in lieu of, in substitution
for, or in addition to, existing or additional taxes with respect to the
Premises or any part thereof whether or not now customary or within the
contemplation of Landlord or Tenant, or (iii) is based upon any legal or
equitable interest of Landlord in the Premises or any part thereof.

       7.5    Apportionment of Taxes.  If  the Premises is assessed as part of a
larger parcel, then Landlord shall equitably apportion the Real Property Taxes
assessed against the real property which includes the Premises and reasonably
determine the amount of Real property Taxes attributable to the Premises.  If
other buildings exist on the assessed parcel, the Real Property Taxes
apportioned to the Premises shall be based upon the ration of the Building
Square Footage to the square footage of  all buildings on the assessed parcel.
Landlord's reasonable determination of such apportionment shall be conclusive.

       7.6    Taxes on Tenant's personal Property; Permitted Contests.  Tenant
shall be directly responsible for and shall pay the full amount of all taxes
levied on Tenant's Personal property, and shall hold Landlord free and harmless
therefrom.  if any such taxes are included in the tax bill for Real Property
Taxes of the Premises, Tenant shall reimburse Landlord therefor in the manner
described in Section 7.3, and shall make every effort with the applicable tax
authorities to have such personal property taxes removed from the Real Property
Taxes bill.  Tenant may contest the amount of validity of any Real Property
Taxes or taxes levied on Tenant's Personal Property by appropriate proceedings,
provided that Tenant gives Landlord prior Notice of any such contest and keeps
Landlord

                                         12.
<PAGE>

advised as to all proceedings, and provided further than Tenant shall continue
to reimburse Landlord for Landlord's payment of such Real Property Taxes unless
such proceedings shall operate to prevent or stay such payment and the
collection of the tax so contested. Landlord shall join in any such proceedings
if any Applicable Laws shall so require, provided that Tenant shall hold
harmless, indemnify, protect and defend Landlord from and against any liability,
claim, demand, cost or expense in connection therewith including, but not
limited to, actual attorneys' fees and costs reasonably incurred.

       7.7    Utilities and Services. Tenant shall be responsible for and shall
pay promptly, directly to the appropriate supplier, all charges for water, gas,
electricity, heat, light, power, telephone, refuse pickup, janitorial service,
interior landscape maintenance and all other utilities, materials and services
furnished directly to Tenant or the Premises or used by Tenant in, on or about
the Premises during the Term, together with any taxes thereon.  If any utilities
or services are not separately metered or assessed to Tenant, Landlord shall
make a reasonable determination of Tenant's proportionate share of the cost of
such utilities and services and Tenant shall pay such amount to Landlord, as an
Item of Additional Rent, within ten (10) days after receipt of Landlord's
statement or invoice therefor.  Alternatively, Landlord may elect to include
such cost in the definition of Maintenance Expenses, in which event Tenant shall
pay such cost in the manner set forth in Section 7.1.  Landlord may also require
Tenant to have any Specialized HVAC system separately metered to Tenant, at
Tenant's expense.  Landlord shall not be liable in damages or otherwise for any
failure to interruption of any utility or other service furnished to the
Premises.  No such failure or interruption shall be deemed an eviction or
entitle Tenant to terminate this Lease or withhold or abate any Rent due
hereunder.

                                    ARTICLE VIII

                                    ALTERATIONS

       8.1    Permitted Alterations.  After the Commencement Date, Tenant shall
not make or permit any Alterations in, on or about the Premises without the
prior written consent of Landlord, which consent may be withheld in Landlord's
sole and absolute discretion.  Notwithstanding the foregoing, Landlord shall not
unreasonably withhold its consent to any Alterations not exceeding One Dollar
$1.00) per square foot of the Building in aggregate cost over the Term and which
do not (i) affect the exterior of the Building or the Outside Areas (or be
visible from adjoining sites), (ii) affect or penetrate any of the structural
portions of the Building, including, but not limited, the roof, (iii) require
any change to the basic floor plan of the Building, any change to the structural
or mechanical components of the Building, or any governmental approval or permit
as a prerequisite to the construction thereof, (iv) interfere in any manner with
the proper functioning of or Landlord's access to any mechanical, electrical,
plumbing or HVAC systems, facilities or equipment located in or serving the
Building, or (v) diminish the value of the Premises.  All Alterations shall be
constructed pursuant to plans and specifications previously provided to and,
when applicable, approved in writing by Landlord, shall be installed by a
licensed contractor at Tenant's sole expense in compliance with all Applicable
Laws, and shall be accomplished in a good and workmanlike manner confirming in
quality and design with the Building existing as of the Commencement Date.  No
Hazardous Materials, including, but not limited to, asbestos or
asbestos-containing materials, shall be used by Tenant or Tenant's Agents in the
construction of any Alterations permitted hereunder.  Tenant shall, if required
by Landlord, obtain and pay for, at its own expense, a completion and indemnity
bond covering such work, the form and amount of which shall be subject to the
approval of Landlord.  All Alterations made by Tenant shall be and become the
property of Landlord upon the installation thereof and shall not be deemed
Tenant's Personal Property; provided, however, that Landlord may, at its option,
require that Tenant, upon the termination of this Lease, at Tenant's expense,
remove any or all no-structural Alterations installed by or on behalf of Tenant
and return the Premises to its condition as of the Commencement Date of  this
Lease, normal wear and tear excepted.  Notwithstanding any other provisions of
this Lease, Tenant shall be solely responsible for the maintenance, repair and
replacement of any and all Alterations made by or on behalf of Tenant (including
without limitation by Landlord on behalf of Tenant) to the Premise.

       8.2    Trade Fixtures.  Tenant shall, at its own expense, provide,
install and maintain in good condition all of Tenant's Personal Property
required in the conduct of its business in the Premises.

       8.3    Mechanics' Liens.  Tenant shall give Landlord Notice of Tenant's
intention to perform any work on the Premises which might result in any claim of
lien at least twenty (20) days prior to the commencement of such

                                         13.
<PAGE>

work to enable Landlord to post and record a notice of nonresponsiblity or other
notice Landlord deems proper prior to the commencement of any such work.  Tenant
shall not permit any mechanic's, materialmen's or other liens to be filed
against the property of which the Premises are a part or against Tenant's
leasehold interest in the Premises.  If Tenant fails to cause the release of
record of any lien(s) filed against the Premises or its leasehold estate therein
by payment or posting of a proper bond within ten (10) days from the date of the
lien filing(s), then Landlord may, at Tenant's expense, cause such lien(s) to be
released by any means Landlord deems proper, including, but not limited to
payment of or defense against the claim giving rise to the lien(s). All sums
reasonably disbursed, deposited or incurred by Landlord in connection with the
release of the lien(s), including, but not limited to, all costs, expenses and
actual attorneys' fees, shall be due and payable by Tenant to Landlord, as an
item of Additional Rent, on demand by Landlord, together with interest thereon
at the Applicable Rate from the date of such demand until paid by Tenant.

                                     ARTICLE IX

                               MAINTENANCE AND REPAIR

       9.1    Landlord's Maintenance of Outside Areas.  Landlord shall, subject
to receiving Tenant's payment of Maintenance Expenses, and subject to Section
9.2, Article XII and Article XIII, maintain in good condition and repair the
Outside Areas and every part thereof, including but not limited to, landscaping
(including replacement thereof), sprinkler systems, walkways, parking areas, and
approved signage.  Such maintenance shall include pest control, restriping of
the parking areas and painting of the exterior walls of the Building, as and
when the same becomes necessary in Landlord's sole discretion.  Such maintenance
shall further include the roof of the Building (excluding any skylights, but
including as needed any replacement thereof) _______________________ (including,
without limitation, the foundation, load-bearing walls and roof structure),
provided that Landlord shall not be required to make any repairs to the roof or
the structural components unless and until Tenant has notified Landlord in
writing of the need for such repair and Landlord shall have a reasonable period
of time thereafter to commence and complete said repair.  The cost of any
maintenance and repairs on the part of Landlord provided for in this Section 9.1
shall be considered part of Maintenance Expenses and paid by Tenant in the
manner set forth in Section 7.1, except that repairs which Landlord deems arise
out of any act or omission of Tenant or Tenant's Agents shall be made at the
expense of Tenant.  Landlord's obligation to repair and maintain hereunder shall
be limited to the cost of effecting such repair and maintenance and in no event
shall Landlord be liable for any costs or expenses in excess of said amounts,
including but not limited in any consequential damages, opportunity costs or
lost profits incurred or suffered by Tenant.  Notwithstanding the foregoing,
Landlord may, by Notice to Tenant, elect at any time to cease maintaining all or
any portion of the Outside Areas and/or the roof of the Building, in which event
Tenant shall be responsible for such maintenance as set forth in Section 9.2
below.

       9.2    Tenant's Maintenance and Repair Obligations.  Tenant shall at all
times during the Term of this Lease, at Tenant's sole cost and expense, clean,
keep, maintain, repair and make necessary improvements to, the Building and
every part thereof and all improvements therein or thereto, in good and sanitary
order and condition to the reasonable satisfaction of Landlord and in compliance
with all Applicable Laws, usual wear and tear excepted. Any damage or
deterioration of the Building shall not be deemed usual wear and tear if the
same could have been prevented by good maintenance practices by Tenant.
Tenant's repair and maintenance obligations herein shall include, but are not
limited to, all necessary maintenance and repairs to all portions of the
Building, and all exterior entrances, all glass, windows, window easements, show
window moldings, partitions, doors, doorjambs, door closures, hardware,
fixtures, electrical lighting and outlets, plumbing fixtures, sewage facilities,
interior walls, floors, ceilings, skylights, fans and exhaust equipment, fire
extinguisher equipment and systems, and all repairs to the HVAC and any
Specialized HVAC (as hereinafter defined).  As part of its maintenance
obligations hereunder, Tenant shall, at Landlord's request, provide Landlord
with copies of all maintenance schedules, reports and notices prepared by, for,
or on behalf of Tenant.  Landlord may impose reasonable restrictions and
requirements with respect to repairs by Tenant, which repairs shall be at least
equal in quality to the original work, and the provisions of Section 8.3 shall
apply to all such repairs.  Tenant's obligation to repair includes the
obligation to replace, as necessary, regardless of whether the benefit of such
replacement extends beyond the Term; provided however, if the replacement in
question is of a capital nature, the cost therefor shall be amortized over its
useful life and, in the event such useful life extends beyond the expiration
_____ sooner termination of the Lease (including any extensions of the Term),
Landlord shall reimburse Tenant for the unamortized portion thereof promptly
following the expiration or sooner termination of the Lease.  All replacements
by Tenant shall be subject to Landlord's prior

                                         14.

<PAGE>

approval. Any special or above-standard heating, ventilating and air
conditioning installed by, on behalf of, or at the request of Tenant
("Specialized HVAC"), shall be paid for and maintained by Tenant at Tenant's
sole cost and expense.  Notwithstanding the foregoing, Landlord shall have the
right, upon Notice to Tenant, to undertake the responsibility for maintenance
and repair of automatic fire extinguisher equipment, such as sprinkler system
and alarms, HVAC, specialized HVAC and other obligations of Tenant hereunder
which Landlord deems appropriate to undertake, in which even the cost thereof
shall be included as part of Maintenance Expenses and paid by Tenant in the
manner set forth in Section 7.1.  Tenant shall not permit or authorize any
person to go onto the roof of the Building without the prior written consent of
Landlord.  After Landlord ceases to maintain all or any portion of the Outside
Areas and/or the roof of the Building pursuant to Section 9.1, Tenant shall
immediately become obligated at Tenant's sole cost and expense, to clean, keep,
repair, replace and maintain in good, safe and sanitary order, condition and
repair the same to the reasonable satisfaction of Landlord.

       9.3    Waiver.  Tenant hereby waives all rights provided for by the
provisions of Sections 1941 and 1942 of the California Civil Code and any
present or future laws regarding Tenant's right to make repairs at the expense
of Landlord or to terminate this Lease because of the condition of the Premises.

       9.4    Self-Help.  If Tenant refuses or fails to repair and maintain the
Premises as required hereunder within ten (10) days from the date on which
Landlord makes a written demand on Tenant to effect such repair and maintenance,
Landlord may enter upon the Premises and make such repairs or perform such
maintenance without liability to Tenant for any loss or damage that may accrue
to Tenant or its merchandise, fixtures or other property or to Tenant's business
by reason thereof.  All sums reasonably disbursed, deposited or incurred by
Landlord in connection with such repairs or maintenance, plus ten percent (10%)
for overhead, shall be due and payable by Tenant to Landlord, as an item of
Additional Rent, on demand by Landlord, together with interest at the Applicable
Rate on such aggregate amount from the date of such demand until paid by Tenant.

                                     ARTICLE X

                              COMMON AREA AND PARKING

       10.1   Grant of Nonexclusive Common Area License and Right.  Landlord
hereby grants to Tenant and its permitted subtenants, in common with Landlord
and all persons, firms and corporations conducting business in the Project and
their respective customers, guests, licensees, invitees, subtenants, employees
and agents, to use the Common Area within the Project for such purposes and for
doing such things as may be provided for, authorized and/or permitted by the
Restrictions, such nonexclusive license and right to be appurtenant to Tenant's
leasehold estate created by this Lease.  The nonexclusive license and rights
granted pursuant to the provisions of this Article X shall be subject to the
provisions of the Restrictions, which pertain in any way to the Common Area
covered by such Restrictions, and the provisions of this Lease.

       10.2   Use of Common Area. Notwithstanding anything to the contrary
herein, Tenant and its successors, assigns, employees, agents and invitees shall
use the Common Area only of the purposes permitted hereby and by the
Restrictions and the Rules and Regulations. All uses permitted within the Common
Area shall be undertaken with reason and judgment so as not to interfere with
the use of the Common Area by others.  In no event shall Tenant erect, install,
or place, or cause to be erected, installed, or placed any structure, building,
trailer, fence, wall, signs or other obstructions on the Common Area except as
otherwise permitted herein and in the Restrictions, and Tenant shall not store
or sell any merchandise, equipment or materials on the Common Area.

       10.3   Control of Common Area.  Subject to provisions of the
Restrictions, all Common Area and all improvements located from time to time
within the Common Area shall at all times be subject to the exclusive control
and management of the Landlord.  Landlord shall have the right to construct,
maintain and operate lighting facilities within the Common Area; to police the
Common Area from time to time; to change the area, level, location and
arrangement of the parking areas and other improvements within the Common Area;
to restrict parking by tenants, their officers, agents and employees to employee
parking areas; to enforce parking charges (by operation of meters or otherwise);
to close all or any portion of the Common Area or Improvements therein to such
extent as may, in the opinion of counsel for Landlord, be legally sufficient to
prevent a dedication thereof or the accrual of any rights to any person or to
the public therein; to close temporarily all or any portion of the Common Area
and/or the improvements thereon; to discourage noncustomer parking; and to do
and perform such other acts in and to said

                                         15.
<PAGE>

Common Area and improvements thereon as, in the use of good business judgment,
Landlord shall determine to be advisable.

       10.4   Maintenance of Common Area.  Subject to the provisions of the
Restrictions, Landlord shall operate and maintain (or cause to be operated and
maintained) the Common Area in a first-class condition, in such manner as
Landlord in its sole discretion shall determine from time to time.  Without
limiting the scope of such discretion, Landlord shall have the full right and
authority to employ or cause to be employed all personnel and to make or cause
to be made all rules and regulations pertaining to or necessary for the proper
operation and maintenance of the Common Area and the improvements located
thereon.  The cost of such maintenance of the Common Area shall be included as
part of Maintenance Expenses.  No part of the Common Area may be used for the
storage of any items, including without limitation, vehicles, materials,
inventory and equipment.  All trash and other refuse shall be placed in
designated receptacles.  No work of any kind, including, but not limited to,
painting, drying, cleaning, repairing, manufacturing, assembling, cutting,
merchandising or displaying shall be permitted upon the Common Area.

       10.5   Revocation of License.  All Common Area and improvements located
thereon which Tenant is permitted to use and occupy pursuant to the provisions
of this Lease are to be used and occupied under a revocable license and right,
and if any such license be revoked, or if the amount of such areas be
diminished, Landlord shall not be subject to any liability nor shall Tenant be
entitled to compensation or diminution or abatement of Rent, and such revocation
or diminution of such areas shall not be deemed constructive or actual eviction.
It is understood and agreed that the condemnation or other taking or
appropriation by any public or quasi-public authority, or sale in lieu of
condemnation, of all or any portion of the Common Area shall not constitute a
violation of Landlord's agreements hereunder, and Tenant shall not be entitled
to participate in or make any claim for any award or other condemnation proceeds
arising from any such taking or appreciation of the Common Area.
Notwithstanding the foregoing, so long as no Event of Default has occurred and
is continuing, Landlord shall provide to Tenant the number of vehicle parking
spaces set forth in Item 15 of the Basic Lease Provisions throughout the Term
(subject to the rights of Landlord under this Article X).

       10.6   Landlord's Reserved Rights.  Landlord reserves the right to
install, use, maintain, repair, relocate and replace pipes, ducts, conduits,
wires and appurtenant meters and equipment included in the Premises or outside
the Premises, change the boundary lines of the Project and install, use,
maintain, repair, alter or relocate, expand and replace any Common Area;
provided, however, Landlord shall not unreasonably interfere with Tenant's use
of the Premises.  Such rights of Landlord shall include, but are not limited to,
designating from time to time certain portion of the Common Area as exclusively
for the benefit of certain tenants in the Project.

       10.7   Parking.  Tenant shall be entitled to the number of vehicle
parking spaces set forth in Item 15 of the basic lease provisions, which spaces
shall be unreserved and unassigned, on those portions of the Outside Areas
and/or Common Area designated by Landlord for parking by Tenant and Tenant's
Agents.  Tenant shall not use more parking spaces than such number.  Tenant
shall not permit or allow any vehicles that belong to or are controlled by
Tenant or Tenant's employees, suppliers, shippers, customers, or invitees to be
loaded, unloaded, or parked in areas other than those designated by Landlord for
such activities.  If Tenant permits or allows any of the prohibited activities
described above, then Landlord shall have the right, without notice, in addition
to such other rights and remedies that Landlord may have, to remove or two away
the vehicle involved and charge the cost to Tenant, which cost shall be
immediately payable upon demand by Landlord.  Parking shall be limited to
striped parking stalls, and no parking shall be permitted in any driveways,
accessways or in any area which would prohibit or impede the free flow of
traffic within the Common Area.  There shall be no overnight parking of any
vehicles of any kind, an vehicles which have been abandoned or parking in
violation of the terms hereof may be towed away at the owner's expense.

                                     ARTICLE XI

                              INDEMNITY AND INSURANCE

       11.1   Indemnification.  To the fullest extent permitted by law, Tenant
hereby agrees to defend (with attorneys acceptable to Landlord), indemnify
protect and hold harmless Landlord and Landlord's Agents and any successors to
all or any portion of Landlord's interest in the Premises and their directors,
officers, partners,

                                         16.

<PAGE>

employees, authorized agents, representatives, affiliates and Mortgagees, from
and against any and all damage, loss, claim, liability and expense including,
but not limited to, actual attorneys' fees and legal costs incurred directly or
indirectly by reason of any claim, suit or judgment brought by or on behalf of
(i) any person or persons for damage, loss or expense due to, but not limited
to, bodily injury or property damage sustained by such person or persons which
arise out of, are occasioned by, or are in any way attributable to the use or
occupancy of the Premises or the acts or omissions of the Tenant or Tenant's
Agents in or about the Premises or the Project (including but not limited to any
Event of Default hereunder), or (ii) Tenant or Tenant's Agents for damage, loss
or expense due to, but not limited to, bodily injury or property damage which
arise out of, are occasioned by, or are in any way attributable to the use of
any of the Common Area, except to the extent caused by the negligence or willful
misconduct of Landlord.

       11.2   Property Insurance.  Landlord shall obtain and keep in force
during the term of this Lease a policy or policies of insurance, with
deductibles at the sole discretion of Landlord, covering loss or damage to the
Premises and the Building, the Tenant Improvements and objects owned by Landlord
and normally covered under a "Boiler and Machinery" policy (as such term is used
in the nsurance industry) at least in the amount of the full replacement cost
thereof, and in no event less than the total amount required by Mortgagees,
against all perils included within the classification of fire, extended
coverage, vandalism, malicious mischief, special extended perils ("all risk" or
"special causes of action," as such terms are used in the insurance industry,
including, at Landlord's option, collapse, earthquake and flood) and other
perils as required by the Mortgagees or deemed necessary for Landlord.  A
stipulated value or agreed amount endorsement deleting any co-insurance
provision of said policy or policies shall be procured with said insurance.  The
cost of such insurance policies shall be included in the definition of
Maintenance Expenses, and shall be paid by Tenant in the manner set forth in
Section 7.1.  Such insurance policies shall provide for payment of loss
thereunder to Landlord or, at Landlord's election, the Mortgagees.  If the
Premises are part of a larger building, or if the Premises are part of a group
of buildings owned by Landlord which are adjacent to the Premises, then Tenant
shall pay for any increase in the property insurance of the Building or such
other building or buildings within the Project if such increase is caused by
Tenant's acts, omissions, use or occupancy of the Premises.  Tenant shall obtain
and keep in force during the Term, at its sole cost an expense, (i) an "all
risk" or "special cause of action" property policy in the amount of the full
replacement cost covering Tenant's Personal Property and any Alterations made by
or at the request of Tenant, with Landlord insured as its interest may appear,
and (ii) an "all risk" or "special causes of action" policy of business
interruption and/or loss of income insurance covering a period of six (6)
months, plus such additional period of time, if any , as will permit Tenant to
be in a position to have the same revenues as were in effect the day before a
loss giving rise to a claim under such insurance occurs.

       11.3   Liability/Miscellaneous Insurance.  Tenant shall maintain in full
force and effect at all times during the Term (plus such earlier an later
periods as Tenant may be in occupancy of the Premises), at its sole cost and
expense, policies of insurance issued by a carrier or carriers acceptable to
Landlord and the Mortgagees which afford the following coverages:  (i) statutory
workers' compensation, (ii) employer's liability with minimum limits of Five
Hundred Thousand Dollars ($500,000), (iii) comprehensive/commercial general
liability insurance including, but not limited to, blanket contractual liability
(including the indemnity set forth in Section 11.1), fire and water legal
liability, broad form property damage, personal injury, completed operations,
products liability, independent contractors, warehouser's legal liability and,
if alcoholic beverages are served, manufactured, distributed or sold in the
Premises, comprehensive liquor liability, and owned, non-owned and hired
vehicles,  of not less than the limits set forth in Item 17 of the Basic Lease
Provisions (or current limit carried, which ever is greater), naming Landlord,
the Mortgagees, and the Additional Insureds named in Item 16 of the Basic Lease
Provisions as additional insureds, and including a cross-liability or
severability of interests endorsement, and (iv) such other insurance in such
form and amounts as may be required by Landlord or the Mortgagees from time to
time.  Landlord or Landlord's Agents on behalf of Landlord may, at Landlord's
election, obtain liability insurance in such amounts and on such terms as
Landlord shall determine, and the cost thereof shall be included in Maintenance
Expenses and paid by Tenant in the manner described in Section 7.1.

       11.4   Hazardous Materials.  In the event Landlord consents to Tenant's
use, generation or storage of Hazardous Materials on, under or about the
Premises pursuant to Section 6.2, Landlord shall have the continuing right to
require Tenant, at Tenant's sole cost and expense, to purchase insurance
specified and approved by Landlord, with coverage of no less than Five Million
Dollars ($5,000,000.00), insuring (i) any Hazardous Materials shall be removed
from the Premises, (ii) the Premises shall be restored to a clean, neat,
attractive health, safe and

                                         17.
<PAGE>

sanitary condition, and (iii) any liability of Tenant, Landlord and Landlord's
Agents arising from such Hazardous Materials.

       11.5   Deductibles; Blanket Coverage.  Any policy of insurance required
pursuant to this Lease containing a deductible exceeding Ten Thousand Dollars
($10,000.00) per occurrence must be approved in writing by Landlord prior to the
issuance of such policy.  Tenant shall be solely responsible for the payment of
any deductible.  Any insurance required of Tenant pursuant to this Lease may be
provided by means of a so-called "blanket policy", so long as (i) the Premises
are specifically covered (by rider, endorsement or otherwise), (ii) the limits
of the policy are applicable on a "per location" basis to the Premises and
provide for restoration of the aggregate limits, and (iii) the policy otherwise
complies with the provisions of this Lease.

       11.7   Sufficiency of Coverage.  Neither Landlord nor any of Landlord's
Agents makes any representation that the types of insurance and limits specified
to be carried by Tenant under this Lease are adequate to protect Tenant.  If
Tenant believes that any such insurance coverage is insufficient, Tenant shall
provide, at its own expense, such additional insurance as Tenant deems adequate.
Nothing contained herein shall limit Tenant's liability under this Lease, and
Tenant's Liability under any provision of this Lease, including without
limitation under any indemnity provisions, shall not be limited to the amount of
any insurance obtained.

       11.8   Insurance Requirements.  Tenant's insurance (i) shall be in a form
satisfactory to Landlord and the Mortgagees and shall be carried with companies
that have a general policyholder's rating of not less than "A" and that are
determined by Landlord, in its sole discretion, as financially sound on a
current basis, (ii) shall provide that such policies shall not be subject to
material alteration or cancellation except after at least thirty (30) days prior
written notice to Landlord, and (iii) shall be primary, and any insurance
carried by Landlord or Landlord's Agents shall be noncontributing.  Tenant's
policy or policies, or duly executed certificates for them in the form and
content acceptable to Landlord, shall be deposited with Landlord prior to the
Commencement Date, and prior to renewal of such policies.  If Tenant fails to
procure and maintain the insurance required to be procured by Tenant under this
Lease, Landlord may, but shall not be required to, order such Insurance at
Tenant's expense.  All sums reasonably disbursed, deposited or incurred by
Landlord in connection therewith, including, but not limited to, all costs,
expenses and actual attorneys' fees, shall be due and payable by Tenant to
Landlord, as an item of Additional Rent, on demand by Landlord, together with
interest thereon at the Applicable Rate from the date of such demand until paid
by Tenant.

       11.9   Impound Funds.  If requested by any Mortgagees to whom Landlord
has granted a security interest in the Premises, or if any Event of Default
occurs under this Lease, Tenant shall, at Landlord's election, pay Landlord,
concurrently with each payment of Monthly Rent, a sum equal to one-twelfth
(1/12) of the annual insurance premiums payable to Tenant for all insurance
which Tenant is required to obtain pursuant to this Article XI.  Such sums (the
"Impound Funds") shall be held by Landlord and applied to the payment of such
insurance premium when due; provided, however, Landlord shall not be required to
keep the impound funds separate from other funds, Tenant shall not be entitled
to interest on the Impound Funds and no trust relationship shall be created with
respect to the Impound Funds.  The amount of the Impound Funds when unknown
shall be reasonably estimated by Landlord.  If the Impound Funds paid to
Landlord by Tenant under this Section 11.9 are insufficient to discharge the
obligation of Tenant to pay such insurance premiums as the same become due,
Tenant shall pay to Landlord, within ten (10) days after Landlord's written
request therefor, such additional sums necessary to pay such obligations.  If an
Event of Default has occurred, any balance remaining from the Impound Funds may,
at the option of Landlord, be applied to any obligation then due under this
Lease in lieu of being applied to the payment of insurance premiums.  The unused
portion of the Impound Funds, if any, shall be returned to Tenant within thirty
(30) days of the expiration of this lease or any termination of this Lease not
resulting from an Event of Default, provided that Tenant has vacated the
Premises in the manner required by this Lease.

       11.10  Landlord's Disclaimer.  Notwithstanding any other provisions of
this Lease, and to the fullest extent permitted by law, Landlord and Landlord's
Agents shall not be liable for any loss or damage to persons or property
resulting from theft, vandalism, fire, explosion, falling materials, glass, tile
or sheetrock, steam, gas, electricity, water or rain which may leak from an part
of the Premises, or from the pipes, appliances or plumbing works therein or from
the roof, street or subsurface or whatsoever, unless caused by or due to the
sole active negligence or willful misconduct of Landlord.  Landlord and
Landlord's Agents shall not be liable for interference

                                         18.
<PAGE>

with light or air, or for any latent defect in the Premises except as otherwise
expressly provided in this Lease.  Tenant shall give prompt Notice to Landlord
in case of a casualty, accident or repair needed to the Premises.

       11.11  Waiver of Subrogation.  Landlord, except to the extent Tenant's
insurance covers loss to Landlord plus Tenant's obligation with respect to
maintenance and repair and payment of insurance deductibles hereunder, and
Tenant each hereby waives all rights of recovery against the other and the
other's agents on account of loss and damage occasioned to such waiving party to
the extent only that such loss or damage is insured against under any insurance
policies required by this Article XI (and to the extent such insurance is
inadequate to cover such loss, this waiver shall not apply to amounts of loss
above such coverage).  Tenant and Landlord shall, upon obtaining policies of
insurance required hereunder, give notice to the insurance carriers that the
foregoing waiver of subrogation is contained in this lease.  Notwithstanding the
foregoing, it is agreed that in the event that any loss is due to the act,
omission or negligence or willful misconduct of Tenant or Tenant's Agents,
Tenant's liability insurance shall be primary and shall cover all losses and
damages prior to any other insurance hereunder.

                                    ARTICLE XII

                               DAMAGE OR DESTRUCTION

       12.1   Landlord's Obligation to Rebuild.  If the Premises are damaged or
destroyed by fire or other casualty (a 'Casualty"), Tenant shall promptly give
notice thereof to Landlord, and Landlord shall thereafter repair the Premises as
set forth in Sections 12.4 and 12.5 unless Landlord has the right to terminate
this Lease as provided in Section 12.2 and Landlord elects to so terminate or
Tenant has the right to terminate this Lease as provided in Section 12.3 and
Tenant elects to so terminate.

       12.2   Landlord's Right to Terminate.  Landlord shall have the right to
terminate this Lease following a Casualty if any of the following occurs:  (i)
insurance proceeds (together with any additional amounts tenant elects, at its
option, to contribute) are not available to Landlord to pay one hundred percent
(100%) of the cost to fully repair the Premises, excluding the deductible (for
which Tenant shall pay such deductible); (ii) Landlord's Architect determines
that the Premises cannot, with reasonable diligence, be fully repaired by
Landlord (or cannot be safety repaired because of the presence of hazardous
factors, including, but not limited to, Hazardous Materials, earthquake faults,
radiation, chemical waste and other similar dangers) within one hundred eighty
(180) days after the date of such Casualty; (iii) the Premises are destroyed or
damaged during the last twelve (12) months of the Term; or (iv) an Event of
Default has occurred and is continuing at the time of such Casualty.  If
Landlord elects to terminate this Lease following a Casualty pursuant to this
Section 12.2, Landlord shall give Tenant Notice of its election to terminate
within thirty (30) days after Landlord has knowledge of such Casualty, and this
Lease shall terminate fifteen (15) days after the date of such Notice.

       12.3   Tenant's Right to Terminate.  Subject to the later terms hereof,
Tenant shall have the right to terminate this Lease following the destruction of
the Premises (or damage to the Premises so extensive as to reasonably prevent
Tenant's substantial use and enjoyment of the remises) if any if the following
occurs:  (i) the Premises cannot, with reasonable diligence, be fully repaired
by Landlord within one hundred eighty (180) days after the date of the damage or
destruction, as determined by Landlord's Architect; (ii) the Premises cannot
safely be repaired because of the presence of hazardous factors, including
Hazardous Materials, earthquake faults, radiation, chemical waste and other
similar dangers; or (iii) the damage or destruction occurs during the last
twelve (12) months of the Term and cannot, with reasonable diligence, be fully
repaired by Landlord within ninety (90) days after the date of the destruction
or damage, as determined by Landlord's Architect.  Notwithstanding the
foregoing, Tenant shall not have the right to terminate under this Section 12.3
if (a) an Event of Default has occurred and is continuing at the time of such
damage or destruction or at the time of exercising the right to terminate, or
(b) the damage or destruction was caused, in whole or in part, by the act or
omission of Tenant or Tenant's Agents.  If Tenant elects to terminate this Lease
pursuant to this Section 12.3, Tenant shall give Landlord Notice of its election
to terminate within ten (10) days after the date of such damage or destruction,
and this Lease shall terminate thirty (30) days after the date of such Notice.

       12.4   Effect of Termination.  If this Lease is terminated following a
Casualty pursuant to Section 12.2 or Section 12.3, Landlord shall, subject to
the rights of the Mortgagees, be entitled to receive and retain all the
insurance proceeds resulting from or attributable to such Casualty, except for
those proceeds payable under policies

                                         19.

<PAGE>

obtained by Tenant which specifically insure Tenant's Personal Property.  If
neither party exercises any such right to terminate this Lease, this Lease will
continue in full force and effect, and Landlord shall, promptly following the
tenth (10th) day after the date of such Casualty and receipt of the amounts set
forth in clause (i) of Section 12.2, commence the process of obtaining necessary
permits and approvals of the repair of the Premises, and shall commence such
repair and prosecute the same diligently to completion as soon thereafter as is
practicable.  In the event that such repair is not completed within 225 days
following the date of such Casualty, Tenant shall have the right, as its sole
and exclusive remedy, to terminate this Lease by providing Landlord with written
notice thereof within 5 days following the lapse of such 225 day period, and
this Lease shall terminate upon such timely notice.  In the event Tenant fails
to provide Landlord with such notice of termination within such 5 day period,
this Lease shall continue in full force and effect.  Tenant shall fully
cooperate with Landlord in removing Tenant's Personal Property and any debris
from the Premises to facilitate the making of such repairs.

       12.5   Limited obligation to Repair.  Landlord's obligation, should it
elect or be obligated to repair the Premises following a Casualty, shall be
limited to the basic Building and Tenant Improvements and Tenant shall, at its
expense, replace or fully repair all Tenant's Personal Property and any
Alterations installed by Tenant existing at the time of such Casualty.  If the
Premises are to be repaired in accordance with the foregoing, Tenant shall make
available to Landlord any portion of insurance proceeds it receives which are
allocable to the Tenant Improvements.

       12.6   Abatement of Monthly Rent.  During any period when Landlord or
Landlord's Architect reasonably determines that there is substantial
interference with Tenant's use of the Premises by reason of a Casualty, Monthly
Rent shall be temporarily abated in proportion to the degree of such substantial
interference, but only to the extent of any business interruption or loss of
income insurance proceeds received by Landlord from Tenant's insurance described
in Section 11.2.  Such abatement shall commence upon the date Tenant notifies
Landlord of such Casualty and shall end upon the Substantial Completion of the
repair of the Premises which Landlord undertakes or is obligated to undertake
hereunder.  Tenant shall not be entitled to any compensation or damages from
Landlord for loss of the use of the Premises.  Tenant's Personal Property or
other damage or any inconvenience occasioned by a Casualty or by the repair or
restoration of the Premises thereafter, including, but not limited to, any
consequential damages, opportunity costs or lost profits incurred or suffered by
Tenant, Tenant hereby waives the provisions of Section 1932(2) and Section
1933(4) of the California Civil Code, and the provisions of any similar or
successor statutes.

       12.7   Landlord's Determination.  The determination in good faith by
Landlord's Architect of or relating to the estimated cost of repair of any
damage, replacement cost, the time period required for repair or the
interference with or suitability of the Premises for Tenant's use or occupancy
shall be conclusive for purposes of this Article XII and Article XIII.

                                    ARTICLE XIII

                                    CONDEMNATION

       13.1   Total Taking - Termination.  If title to the Building or so much
thereof is taken for any public or quasi-public use under any statute or by
right of eminent domain so that reconstruction of the Building will not result
in the Building being reasonably suitable for Tenant's continued occupancy for
the users and purposes permitted by this Lease, the Lease shall terminate as of
the date possession of the Building or part thereof is to taken.

       13.2   Partial Taking.  If any part of the Building is taken for any
public or quasi-public use under any statute or by right o eminent domain and
the remaining part is reasonably suitable for Tenant's continued occupancy for
the uses permitted by this Lease, this Leas shall, as to the part so taken,
terminate as of the date that possession of such part of the Building is taken
and the Monthly Rent shall be reduced in the same proportion that the floor area
of the portion of the Building so taken (less any addition thereto by reason of
any reconstruction) bears to the original Building Square Footage, as reasonably
determined by Landlord or Landlord's Architect.  Landlord shall, at its own cost
and expense, make all necessary repairs or alterations to the Building so as to
make the portion of the Building not taken a complete architectural unit, such
work shall not, however, exceed the scope of the work done by Landlord in
originally construction the Building.  If severance damages from the condemning
authority are not available to Landlord insufficient amounts to permit such
restoration, Landlord may terminate this Lease upon Notice to Tenant.  Monthly
Rent due and payable hereunder shall be temporarily abated during such
restoration

                                         20.

<PAGE>

period in proportion to the degree to which there is substantial interference
with Tenant's use of the Building, as reasonably determined by Landlord or
Landlord's Architect.  Each party hereby waives the provisions of Section
1265.130 of the California Code of Civil Procedure and any present or future law
allowing either party to petition the Superior Court to terminate this Lease in
the event of a partial taking of the Building or Premises.

       13.3   Taking of Parking Areas.  In the event there shall be a taking of
Outside Areas or portions of the Common Area made available to Tenant for
vehicle parking under this Lease such that Landlord can no longer provide to
Tenant the number of vehicle parking spaces set forth in Item 15 of the Basic
Lease Provisions, Landlord may substitute reasonably equivalent parking spaces
in a location reasonably cost to the Building; provided that if Landlord fails
to make such substitution within one hundred eighty (180) days following the
taking and if the taking materially impairs Tenant's use and enjoyment of the
Premises, Tenant may, at its option, terminate this Lease by giving Landlord
Notice of its election to terminate within thirty (30) days after the expiration
of such 180-day period.  In the event of such termination by Tenant, this Lease
shall terminate thirty (30) days after the date of such Notice.  If this Lease
is not so terminated by Tenant, there shall be no abatement of Rent and this
Lease shall continue in full force and effect.

       13.4   No Apportionment of Award.  No award for any partial or total
taking shall be apportioned, it being agreed and understood that Landlord shall
be entitled to the entire award for any partial or entire taking.  Tenant
assigns to Landlord its interest in any award which may be made in such taking
or condemnation, together with any and all rights of Tenant arising in or to the
same or any part thereof.  Nothing contained herein shall be deemed to give
Landlord any interest in or require Tenant to assign to Landlord any separate
award made to Tenant for the taking of Tenant's Personal Property, for the
interruption of Tenant's business or its moving costs, or for the loss of its
goodwill.

       13.5   Temporary Taking.  No temporary taking of the Building (which for
purposes hereof shall mean a taking of all or any part of the Building for one
hundred eighty (180) days or less) shall terminate this Lease or give Tenant any
right to any abatement of Rent.  Any award made to Tenant by reason of such
temporary taking shall belong entirely to Tenant and Landlord shall not be
entitled to share therein.  Each party agrees to execute and deliver to the
other all instruments that may be required to effectuate the provisions of this
Section 13.5.

       13.6   Sale Under Threat of Condemnation.  A sale made in good faith to
any authority having the power of eminent domain, either under threat of
condemnation or while condemnation proceedings are pending, shall be deemed a
taking under the power of eminent domain for all purposes of this Article XIII.

                                    ARTICLE XIV

                             ASSIGNMENT AND SUBLETTING

       14.1   Prohibition.  Tenant shall not directly or indirectly, voluntarily
or by operation of law, assign (which term shall include any transfer,
assignment, pledge, mortgage or hypothecation) this Lease, or any right or
interest hereunder, or sublet the Premises or any part thereof, or allow any
other person or entity to occupy or use all or any part of the Premises without
first obtaining the written consent of Landlord in each instance, which consent
shall not be unreasonably withheld.  No assignment, encumbrance, subletting, or
other transfer in violation of the terms of this Article XIV, whether voluntary
or involuntary, by operation of law, under legal process or proceedings, by
receivership, in bankruptcy, or otherwise shall be valid or effective and, at
the option of Landlord, shall constitute an Event of Default under this Lease.
To the extent not prohibited by provisions of the Bankruptcy Code of 1978, 11
U.S.C. Section 101 et seq. (the "Bankruptcy Code"), Tenant on behalf of itself,
creditors, administrators and assigns waives the applicability of Sections
541(c) and 365(e) of the Bankruptcy Code unless the proposed assignee of the
trustee for the estate of the bankrupt meets Landlord's standards for consent as
set forth below, Landlord has entered into this Lease with Tenant in order to
obtain for the benefit of the Project the unique attraction of Tenant's name and
business; the foregoing prohibition on assignment or subletting is expressly
agreed to by Tenant in consideration of such fact.  If this Lease is assigned to
any person or entity pursuant to the provisions of the Bankruptcy Code, any and
all monies or other considerations payable or otherwise to be delivered in
connection with such assignment shall be paid or delivered to Landlord, shall be
and remain the exclusive property of Landlord and shall not constitute property
of Tenant or the estate of Tenant within the meaning of the Bankruptcy Code.
Any and all monies or other considerations constituting Landlord's property
under the preceding sentence not paid or delivered to Landlord shall be held in
trust for the benefit of Landlord and be promptly paid or

                                         21.
<PAGE>

delivered to Landlord.  Any person or entity to which this Lease is assigned
pursuant to the provisions of the Bankruptcy Code shall be deemed without
further act or deed to have assumed all of the obligations arising under this
Lease on and after the date of such assignment.  Any such assignee shall upon
demand execute and deliver to Landlord an instrument confirming such assumption.

       14.2   Landlord's Consent.  In the event Landlord consents to any
assignment or subletting, such consent shall not constitute a waiver of any of
the restrictions of this Article XIV and the same shall apply to each successive
assignment or subletting hereunder, if any, in no event shall Landlord's consent
to an assignment or subletting affect the continuing primary liability of Tenant
(which, following assignment, shall be joint and several with the assignee), or
relieve Tenant of any of its obligations hereunder without an express written
release being given by Landlord.  In the even that Landlord shall consent to an
assignment or subletting under this Article XIV, such assignment or subletting
shall not be effective until the assignee or sublessee shall assume all of the
obligations of this Lease on the part of Tenant to be performed or observed and
whereby the assignee or sublessee shall agree that the provisions contained in
this Lease shall, notwithstanding such assignment or subletting, continue to be
binding upon it with respect to all future assignments and sublettings.  Such
assignment or sublease agreement shall be duly executed and a fully executed
copy thereof shall be delivered to Landlord, and Landlord may collect Monthly
Rent and Additional Rent due hereunder directly from the assignee or sublessee.
Collection of Monthly Rent and Additional Rent directly from as assignee or
sublessee shall not constitute a consent or a waiver of the necessity of consent
to such assignment or subletting, nor shall such collection constitute a
recognition of such assignee or sublessee as the Tenant hereunder or a release
of Tenant from the performance of all of its obligations hereunder.

       14.3   Information.  Regardless of whether Landlord's consent is required
under this Article XIV, Tenant shall notify Landlord in writing of Tenant's
intent to assign this Lease or any right or interest hereunder, or to sublease
the Premises or any part thereof, and of the name of the proposed assignee or
sublessee, the nature of the proposed assignee's or sublessee's business to be
conducted on the Premises, the terms and provisions of the proposed assignment
or sublease, a copy of the proposed assignment or sublease form, and such other
information as Landlord may reasonably request concerning the proposed assignee
or sublessee, including, but not limited to, net worth, income statements and
other financial statements for a two-year period preceding Tenant's request for
consent, evidence of insurance complying with requirements of Article XI, a
completed Environmental Questionnaire from the proposed assignee or sublessee,
and the fee described in Section 14.7.

       14.4   Standard for Consent.  Landlord shall, within thirty (30) days of
receipt of such Notice and all information requested by Landlord concerning the
proposed assignee or sublessee, elect to take on of the following actions:

              (a)    consent to such proposed assignment or sublease;

              (b)    refuse to consent to such proposed assignment or sublease,
which refusal shall be on reasonable grounds; or

       (c)    If Tenant proposes to sublease all or part of the Premises for the
entire remaining Term, Landlord may, at its option exercised by thirty (30) days
Notice to Tenant, elect to recapture such portion of the Premises as Tenant
proposes to sublease and as of the thirtieth (30th) day after Landlord so
notifies Tenant of its election to recapture, this Lease shall terminate as to
the portion of the Premises recaptured and the Monthly Rent payable under this
Lease shall be reduced in the same proportion that the floor area of that
portion of the Premises so recaptured bears to the Building Square Footage prior
to such recapture.

       Tenant agrees, by way of exempt and without limitation, that it shall not
be unreasonable for Landlord to withhold its consent to a proposed assignment or
subletting if any of the following situations exist or may exist:

       (i)    Landlord determines that the proposed assignee's or sublesses's
use of the Premises conflicts with Article V or Article VI, presents an
unacceptable risk, as determined by Landlord, under Article VI (and Landlord may
require such assignee or sublessee to complete the Environmental Questionnaire
in the manner described in Section 6.5 prior to making such determination), or
conflicts with any other provision under this Lease;

                                         22.
<PAGE>

                     (ii)   Landlord determines that the proposed assignee or
sublessee is not as financially responsible as Tenant as of the date of Tenant's
request for consent or as of the effective date of such assignment or
subletting;

                     (iv)   Landlord determines that the proposed assignment or
subletting would breach a covenant, condition or restriction in some other
lease, financing agreement or other agreement relating to the Project, the
Building, the Premises or this Lease;

                     (v)    Landlord determines that the proposed assignee or
sublessee (A) has been required by any prior Landlord, lender or governmental
authority to take remedial action in connection with Hazardous Materials
contaminating a property if such contamination resulted from the proposed
assignee's or sublessee's actions or use of the property in question, or (B) is
subject to any enforcement order issued by any governmental authority in
connection with the use, disposal or storage of a hazardous material; or

                     (vi)   An Event of Default has occurred and is continuing
at the time of Tenant's request for Landlord's consent, or as of the effective
date of such assignment or subletting.

       Tenant acknowledges that if Tenant has any exterior sign rights under
this Lease, such rights are personal to Tenant and may not be assigned or
transferred to an assignee of this Lease or sublessee of the Premises without
Landlord's prior written consent, which consent may be withheld in Landlord's
sole and absolute discretion.

       14.5   Bonus Value.  Tenant agrees that fifty percent (50%) of any
amounts paid by the assignee of sublessee, however described, in excess of (i)
the Monthly Rent payable by Tenant hereunder (or, in the case of sublease of a
portion of the Premises, in excess of the Monthly Rent reasonably allocable to
such portion), plus (ii) Tenant's direct out-of-pocket costs which Tenant
certifies to Landlord have been paid to provide occupancy related services to
such assignee or sublessee of a nature commonly provided by Landlords of similar
space, shall be the property of Landlord and such amounts shall be payable
directly to Landlord by the assignee or sublessee.  At Landlord's request, a
written agreement shall be entered into by and among Tenant, Landlord and the
proposed assignee or sublessee confirming the requirements of this Section 14.5.

       14.6   Certain Transfers.  The sale of all or substantially all of
Tenant's assets (other than bulk sales in the ordinary course of business), or,
if Tenant is a corporation, an unincorporated association, or a partnership, the
transfer, assignment or hypothecation of any stock or interest in such
corporation, association or partnership in the aggregate in excess of fifty
percent (50%) which such transfer, assignment or hypothecation is also
accompanied by a change in Tenant's management (excluding, however, a transfer
of publicly trades shares of stock in the aggregate in excess of fifty percent
(50%) shall be deemed an assignment within the meaning and provisions of this
Article XIV.

       14.7   Landlord's Fee and Expenses.  If Tenant requests Landlord's
consent to an assignment or subletting by Tenant under this Lease, Tenant shall
pay to Landlord all of the Landlord's out-of-pocket expenses, including, but not
limited to, attorneys' fees reasonably incurred related to such assignment or
subletting by Tenant, whether or not the assignment or subletting is approved.

       14.8   Transfer of the Premises by Landlord.  Upon any conveyance of the
Premises an assignment by Landlord of this Lease, Landlord shall and is hereby
entirely released from all liability under any and all of its covenants and
obligation contained in or derived from this Lease occurring after the date of
such conveyance and assignment, and Tenant agrees to attorn to any entity
purchasing or otherwise acquiring the Premises.

                                     ARTICLE XV

                               DEFAULTS AND REMEDIES

       15.1   Tenant's Default.  At the option of the Landlord, a default under
this Lease by Tenant shall exist if any of the following events shall occur
(each is called an "Event of Default"):

                                         23.

<PAGE>

              (a)    Tenant fails to pay the Rent payable hereunder, as and when
due, for a period of three (3) days after Notice by Landlord; provided, however,
the Notice given hereunder shall be in lieu of, and not in addition to, any
notice required under Section 1161, ET SEQ., of the California Code of Civil
Procedure;

              (b)    Tenant attempts to make or suffers to be made any transfer,
assignment or subletting, except as provided in Article XIV hereof;

              (c)    Any of Tenant's rights under this Lease are sold or
otherwise transferred by or under court order or legal process or otherwise or
if any of the actions described in Section 15.2 are taken by or against Tenant
or any Guarantor;

              (d)    The Premises are used for any purpose other than as
permitted pursuant to Article V;

              (e)    Any representation or warranty given by Tenant under or in
connection with this Lease proves to be materially false or misleading;

              (f)    Tenant fails to timely comply with the provisions of
Article VI ("Hazardous Materials"), Article XIV ("Assignment and Subletting"),
Article XVI ("Subordination; Estoppel Certificate; Financials"), Section 21.5
("Modifications for Mortgagees") or Section 21.19 ("Authority"); or

              (g)    Tenant fails to observe, keep, perform or cure within
fifteen (15) days after Notice by Landlord any of the other terms, covenants,
agreements or conditions contained in this Lease or those set forth in any other
agreements or rules or regulations which Tenant is obligated to observe or
perform.  In the event such default reasonably could not be cured or corrected
within such fifteen-day period, but is reasonably susceptible to cure or
correction, then Tenant shall not be in default hereunder if Tenant commences
the cure or correction of such default within such fifteen-day period and
diligently prosecutes the same to completion after commencing such cure or
correction.  The Notice required by this subparagraph 15.1(b) shall be in lieu
of, and not in addition to, any notice required under Section 1161, ET SEQ., of
the California Code of Civil Procedure.

Notices given under this Section 15.1 shall specify the alleged default and
shall demand that Tenant perform the provisions of this Lease or pay the Rent
that is in arrears, as the case may be, within the applicable period of time, or
quit the Premises.  No such Notice shall be deemed a forfeiture or a termination
of this Lease unless Landlord so elects in the Notice.

       15.2   Bankruptcy or Insolvency.  In no event shall this Lease be
assigned or assignable by operation of law and in no event shall this Lease be
an asset of Tenant in any receivership, bankruptcy, insolvency or reorganization
proceeding.  In the event:

              (a)    A court makes or enters any decree or order adjudging
Tenant to be insolvent, or approving as properly filled by or against Tenant a
petition seeking reorganization or other arrangement of Tenant under any
provisions of the Bankruptcy Code or any applicable state law, or directing the
winding up or liquidation of Tenant and such decree or order shall have
continued for a period of thirty (30) days;

              (b)    Tenant makes or suffers any transfer which constitutes a
fraudulent or otherwise avoidable transfer under any provisions of the
Bankruptcy Code or any applicable state law;

              (c)    Tenant assigns its assets for the benefit of its creditors;
or

              (d)    The material part of the property of Tenant or any property
essential to Tenant's business or of Tenant's interest in this Lease is
sequestered, attached or executed upon, and Tenant fails to secure a return or
release of such property within ten (10) days thereafter, or prior to sale
pursuant to such sequestration, attachment or levy, whichever is earlier;

then this Lease shall, at Landlord's election, immediately terminate and be of
no further force or effect whatsoever, without the necessity for any further
action by Landlord, except that Tenant shall not be relieved of obligations

                                         24.
<PAGE>

which have accrued prior to the date of such termination.  Upon such
termination, the provisions herein relating to the expiration or earlier
termination of this Lease shall control and Tenant shall immediately surrender
the Premises in the condition required by the provisions of this Lease.
Additionally, Landlord shall be entitled to all relief, including recovery of
damages from tenant, which may from time to time be permitted, or recoverable,
under the Bankruptcy Code or any other applicable state laws.

       15.3   Landlord's Remedies.  Upon the occurrence of an Event of Default,
then, in addition to and without waiving any other rights and remedies available
to Landlord at law or in equity or otherwise provided in this Lease, Landlord
may, at its option, cumulatively or in the alternative, exercise the following
remedies:

              (a)    Landlord may terminate Tenant's right to possession of the
Premises, in which case this Lease shall terminate and Tenant shall immediately
surrender possession of the Premises to Landlord.  No act by Landlord other than
giving Notice to Tenant of Landlord's election to terminate Tenant's right to
possession shall terminate this Lease.  Acts of maintenance, efforts to relet
the Premises, or the appointment of a receiver on Landlord's initiative to
protect Landlord's interest under this Lease shall not constitute a termination
of Tenant's right to possession.  Termination shall terminate Tenant's right to
possession of the Premises but shall not relieve Tenant of any obligation under
this Lease which has accrued prior to the date of such termination.  Upon such
termination, Landlord shall have the right to re-enter the Premises, and remove
all persons and property, and Landlord shall also be entitled to recover from
Tenant:

                     (i)    The worth at the time of award of the unpaid Monthly
Rent and Additional Rent which had been earned at the time of termination;

                     (ii)   The worth at the time of award of the amount by
which the unpaid Monthly Rent and Additional Rent which would have been earned
after termination until the time of award exceeds the amount of such rental loss
that Tenant proves could have been reasonably avoided;

                     (iii)  The worth at the time of award of the amount by
which the unpaid Monthly Rent and Additional Rent for the balance of the Term
after the time of award exceeds the amount of such rental loss that Tenant
proves could be reasonably avoided;

                     (iv)   Any other amount necessary to compensate Landlord
for all the detriment proximately caused by Tenant's failure to perform its
obligations under this Lease or which in the ordinary course of things would be
likely to result from Tenant's default, including, but not limited to, the cost
of recovering possession of the Premises, commissions and other expenses of
reletting, including necessary repair, demolition and renovation of the Premises
to the condition existing immediately prior to Tenant's occupancy, the
unamortized portion of any Tenant Improvements and brokerage commissions funded
by Landlord in connection with this Lease, the cost of rectifying any damage to
the Premises occasioned by the act or omission of Tenant, reasonable attorneys'
fees, and any other reasonable costs; and

                     (v)    At Landlord's election, all other amounts in
addition to or in lieu of the foregoing as may be permitted law.

       As used in subsections (i) and (ii) above, the "worth at the time of
award" shall be computed by allowing interest at the maximum legal rate
permitted by law.  As used in subsection (iii) above, the "worth at the time of
award" shall be computed by discounting the amount at the discount rate of the
Federal Reserve Bank of San Francisco at the time of award plus one percent
(1%).

              (b)    Landlord may elect not to terminate Tenant's right to
possession of the Premises, in which event this Lease will continue in full
force and effect as long as Landlord does not terminate Tenant's right to
possession, and Landlord may continue to enforce all of its rights and remedies
under this Lease, including the right to collect all Rent as it becomes due.  In
the event that Landlord elects to avail itself of the remedy provided in this
subparagraph 15.3(b), Landlord shall not unreasonably withhold its consent to an
assignment or subletting of the Premises subject to the reasonable standards for
Landlord's consent as are contained in this Lease.  In addition, in the event
Tenant has entered into a sublease which is valid under the terms of this Lease,
Landlord may also, at its

                                         25.

<PAGE>

option, cause Tenant to assign to Landlord the Interest of Tenant under said
sublease, including, but not limited to, Tenant's right to payment of Rent as it
becomes due.  Landlord may elect to enter the Premises and relet them, or any
part of the, to third parties for Tenant's Premises, including, but not limited
to, broker's commissions, expenses of cleaning and remodeling the Premises
required by the reletting, attorneys' fees and like costs.  Reletting can be for
a period shorter or longer than the remaining Term of this Lease and for the
entire Premises or any portion thereof.  Tenant shall pay to Landlord the
Monthly Rent and Additional Rent due under this lease on the dates the Monthly
Rent and such Additional Rent are due, less the Rent Landlord actually collects
from any reletting.  Except as provided in the preceding sentence, if Landlord
relets the Premises or any portion thereof, such reletting shall not relieve
Tenant of any obligation hereunder.  Notwithstanding the above, no act by
Landlord allowed by this subparagraph 15.3(b) shall terminate this Lease unless
Landlord notifies Tenant in writing that Landlord elects to terminate this
Lease.

       15.4   No Surrender.  Tenant waives any right of redemption or relief
from forfeiture under California Code of Civil Procedure Sections 1174 and 1179,
or under any other present or future law in the event Tenant is evicted or
Landlord takes possession of the Premises by reason of an Event of Default.  No
act or thing done by Landlord or Landlord's Agents during the Term shall be
deemed an acceptance of a surrender of the Premises, an no agreement to accept a
surrender shall be valid unless in writing and signed by Landlord.  No employee
of Landlord or of Landlord's Agents shall have any power to accept the keys to
the Premises prior to the termination of this Lease, and the delivery of the
keys to any employee shall not operate as a termination of this Lease or a
surrender of the Premises.

       15.5   Interest on Late Payments.  Any Rent due under this Lease that is
not paid to Landlord within three (3) days of the date when due shall commence
to bear interest at the Applicable Rate until fully paid.  Neither the accrual
nor the payment of Interest shall cure any default by Tenant under this Lease.

       15.6   Attorneys' and Other Fees.  All sums reasonably incurred by
Landlord in connection with an Event of Default or holding over of possession by
Tenant after the expiration or termination of this Lease, including, but not
limited to, all costs, expenses and actual accountants', appraisers', attorneys'
and other professional fees, and any collection agency or other collection
charges, shall be due and payable by Tenant to Landlord on demand, and shall
bear Interest at the Applicable Rate from the date of such demand until paid by
Tenant.  In addition, in the event that any action shall be instituted by either
of the parties hereto for the enforcement of any of its rights in and under this
Lease, the party in whose favor judgment shall be rendered shall be entitled to
recover from the other party all expenses reasonably incurred by the prevailing
party in such action, including actual costs and reasonable attorneys' fees.

       15.7   Landlord's Default.  Landlord shall not be deemed to be in default
in the performance of any obligation required to be performed by it hereunder
unless it has failed to perform such obligation within thirty (30) days after
receipt of Notice by Tenant to Landlord (and the Mortgages who have provided
Tenant with notice) specifying the nature of such default; provided, however,
that if the nature of Landlord's obligation is such that more than thirty (30)
days are required for its performance, then Landlord shall not be deemed to be
in default if it shall commence such performance within such thirty (30) day
period and thereafter diligently prosecutes the same to completion.

       15.8   Limitation of Landlord's Liability.  The obligations of Landlord
do not constitute the personal obligations of the individual partners, trustees,
directors, officers or shareholders of Landlord or its constituent partners.  If
Landlord shall fail to perform any covenant, term, or condition of this Lease
upon Landlord's part to be performed, Tenant shall recover a money judgment
against Landlord, such judgment shall be satisfied only out of the proceeds of
sale received upon execution of such judgment and levied thereon against the
right, title and interest of Landlord in the Building and out of rent or, other
Income from such property receivable by Landlord or out of consideration
received by Landlord from the sale or other disposition of all or any part of
Landlord's right, title or Interest in the Building, and no action for any
deficiency may be sought or obtained by Tenant.

       15.9   Mortgage Protection.  Upon any default on the part of Landlord,
Tenant will give notice by registered or certified mail to any Mortgagee who has
provided Tenant with notice of its interest together with an address for
receiving notice, and shall offer such Mortgagee a reasonable opportunity to
cure the default (which in no event shall be less than sixty (60) days),
including time to obtain possession of the Premises by power of sale or a

                                         26.
<PAGE>

judicial foreclosure, if such should prove necessary, to effect a cure.  Tenant
agrees that each of the Mortgagees to whom this Lease has been assigned by
Landlord is an express third party beneficiary hereof.  Tenant shall not make
any prepayment of Monthly Rent more than one (1) month in advance without the
prior written consent of such Mortgage.  Tenant waives any right under
California Civil Code Section 1950.5 or any other present or future law to the
collection of any deposit from such Mortgagee or any purchaser at a foreclosure
sale of such Mortgagee's Interest unless such Mortgage or such purchaser shall
have actually received and not refunded the deposit.  Tenant agrees to make all
payments under this Lease to the Mortgages with the most senior encumbrance upon
receiving a direction, in writing, to pay said amounts to such Mortgagee.
Tenant shall comply with such written direction to pay without determining
whether an event of default exists under such Mortgagee's Loan to Landlord.

       15.10  Landlord's Right to Perform.  If Tenant shall at any time fail to
make any payment or perform any other act on its part to be made or performed
under this Lease.  Landlord may (but shall not be obligated to), at Tenant's
expense, and without waiving or releasing Tenant from any obligation of Tenant
under this Lease, make such payment or perform such other act to the extent
Landlord may deem desirable, and in connection therewith, pay expenses and
employ counsel.  All sums paid by Landlord and all penalties, interest and
costs, including, but not limited to, collection costs and attorneys' fees
reasonably incurred in connection therewith, shall be due and payable by Tenant
to Landlord, as an Item of Additional Rent, on demand by Landlord, together with
Interest thereon at the Applicable Rate from the date of such demand until paid
by Tenant.

       15.11  Limitation of Actions Against Landlord.  Any claim, demand or
right of any kind by Tenant which is based upon or arises in connection with
this Lease shall be barred unless Tenant commences an action thereon within six
(6) months after the date that the act, omission, event or default upon which
the claim, demand or right arises, has occurred.

       15.12  Waiver of Jury Trial.  To the full extent permitted by law, Tenant
hereby waives the right to trial by jury in any action, proceeding or
counterclaim brought by Tenant on any matter whatsoever arising out of or in any
way connected with this Lease, the relationship of Landlord and Tenant, Tenant's
use or occupancy of the Premises and/or any claim of injury or damage.

                                    ARTICLE XVI

                  SUBORDINATION; ESTOPPEL CERTIFICATE; FINANCIALS

       16.1.  Subordination, Attornment and Non-Disturbance.  Without the
necessity of any additional document being executed by Tenant for the purpose of
effecting a subordination, and at the election of Landlord or any Mortgagee or
any ground lessor with respect to the land of which the Premises are a part,
this Lease shall be subject and subordinate at all times to (i) all ground
leases or underlying leases which may now exist or hereafter be executed
affecting the Building, and (ii) the lien of any Mortgage which may now exist or
hereafter be executed in any amount for which the Project, the Building, ground
leases or underlying leases, or Landlord's interest or estate in any of said
items is specified as security.  Landlord or any such Mortgagee or ground lessor
shall have the right, at its election, to subordinate or cause to be
subordinated any such ground leases or underlying leases or any such liens to
this Lease.  No subordination shall permit material interference with Tenant's
rights hereunder, and any ground lessor or Mortgagee shall recognize Tenant and
its permitted successors and assigns as the tenant of the Premises and shall not
disturb Tenant's right to quiet possession of the Premises during the Term so
long as no Event of Default has occurred and is continuing under this Lease.  If
Landlord's Interest in the Premises is acquired by any ground lessor or
Mortgagee, or in the event proceedings are brought for the foreclosure of, or in
the event of exercise of the power of sale under, any Mortgage made by Landlord
covering the Premises or any part thereof, or in the event a conveyance in lieu
of foreclosure is made for any reason, Tenant shall, notwithstanding any
subordination and upon the request of such successor in interest to Landlord,
attorn to and become the Tenant of the successor in interest to Landlord and
recognize such successor in interest as the Landlord under this Lease.  Although
this Section 16.1 is self-executing, Tenant covenants and agrees to execute and
deliver, upon demand by Landlord and in the form requested by Landlord, or any
Mortgagee or ground lessor, any additional documents evidencing the priority or
subordination of this Lease with respect to any such ground lessee or underlying
leases or the lien of any such Mortgagee, or evidencing the attornment of Tenant
to any successor in interest to Landlord as herein provided, Tenant's failure to
timely execute and deliver such additional documents shall, at Landlord's
option, constitute an Event of Default hereunder.

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<PAGE>

       16.2.  Estoppel Certificate.  Tenant shall within ten (10) days following
written request by Landlord, execute and deliver to Landlord any documents,
including estoppel certificates, in a form required by Landlord (i) certifying
that this Lease is unmodified and in full force and effect or, if modified,
attaching a copy of such modification and certifying that this Lease, as so
modified, is In full force and effect and the date to which the Rent and other
charges are paid in advance, if any, (ii) acknowledging that there are not, to
Tenant's knowledge, any uncured defaults on the part of the Landlord or stating
the nature of any uncured defaults, (iii) evidencing the status of this Lease as
may be required by a Mortgagee or a purchaser of the Premises, (iv) certifying
the current Monthly Rent amount and the amount and form of Security Deposit on
deposit with Landlord, and (v) certifying to such other Information as Landlord,
Landlord's Agents, Mortgagees and prospective purchasers may reasonably request,
including, but not limited to, any requested information regarding Hazardous
Materials.  Tenant's failure to deliver an estoppel certificate within ten (10)
days after delivery of Landlord's written request therefor shall constitute an
Event of Default hereunder.

       16.3.  Financial Information.  Tenant shall deliver to Landlord, prior to
the execution of this Lease, and within ten (10) days following written request
therefor by Landlord at any time during the Term, Tenant's current financial
statements, and Tenant's financial statements for the two (2) years prior to the
current fiscal financial statement's year, certified to be true, accurate and
complete by the chief financial officer of Tenant, including a balance sheet and
profit and loss statement for the most recent prior year (collectively, the
"Statements"), which Statements shall accurately and completely reflect the
financial condition of Tenant.  Landlord agrees that it will keep the Statements
confidential, except that Landlord shall have the right to deliver the same to
any proposed purchaser of the Premises, the Project or any portion thereof, and
to the Mortgagees of Landlord or such purchaser.  Tenant acknowledges that
Landlord is relying on the Statements in its determination to enter into his
Lease, and Tenant represents to Landlord, which representation shall be deemed
made on the date of this Lease and again on the Commencement Date, that no
material change in the financial condition of Tenant, as reflected in the
Statements, has occurred since the date Tenant delivered the Statements to
Landlord.  If any material change in Tenant's financial condition, as reflected
in the Statements, to inform Landlord of any such material change, Landlord
shall have the right, in addition to any other rights and remedies of Landlord,
to terminate this Lease by notice to Tenant given within thirty (30) days after
Landlord learns of such material change.

                                    ARTICLE XVII

                                 SIGNS AND GRAPHICS

       Landlord shall designate the location on the Premises for one (1) or more
exterior identification signs for Tenant on the Project for one (1) monument
identification sign for Tenant.  Prior to installation and thereafter throughout
the Term, Tenant shall, at its sole cost and expense, secure all necessary
governmental permits and approvals relating to the installation and continued
maintenance of such permitted signs, and Landlord makes no representation or
warranty to Tenant as to the availability of such permits and approvals.  Tenant
shall have no right to maintain identification signs in any other location in,
on or about the Premises and shall not display or erect any other signs,
displays or other advertising materials that are visible from the exterior of
the Building. The size, design, color and other physical aspects of permitted
signs shall be subject to Landlord's written approval prior to installation,
which approval may be withheld in Landlord's discretion, any Restrictions and
any applicable municipal or other governmental permits and approvals.  All such
signs and graphics shall conform to the Sign criteria established by Landlord.
The cost of all signs and graphics, including the installation, maintenance and
removal thereof, shall be at Tenant's sole cost and expense.  If Tenant fails to
maintain its signs, or if Tenant fails to remove same upon termination of this
Lease and repair any damage caused by such removal (including, but not limited
to, repainting the affected area, if required by Landlord), Landlord may do so
at Tenant's expense.  All sums reasonably disbursed, deposited or incurred by
Landlord in connection with such removal, including, but not limited to, all
costs, expenses and actual attorneys' fees, shall be due and payable by Tenant
to Landlord on demand by Landlord, together with interest thereon at the
Applicable Rate from the date of such demand until paid by Tenant.

                                         28.

<PAGE>

                                   ARTICLE XVIII

                                  QUIET ENJOYMENT

       Landlord covenants that Tenant, upon performing the terms, conditions and
convenants of this Lease, shall have quiet and peaceful possession of the
Premises as against any person claiming the same by, through or under Landlord.

                                    ARTICLE XIX

                              SURRENDER; HOLDING OVER

       19.1.  Surrender of the Premises.  Upon the expiration or earlier
termination of this Lease, and subject to Section 4.2 of the Addendum  relating
to the Dock Wall, tenant shall surrender the Premises to Landlord in its
condition existing as of the Commencement Date, normal wear and tear and acts of
God excepted, with all Interior walls in good repair, all carpets shampooed and
cleaned, the HVAC equipment, plumbing, electrical and other mechanical
installations to the condition existing as of the Commencement Date (or, with
respect to any equipment or installations repaired by Landlord pursuant to
Section 3 of the Addendum, to the condition existing immediately following such
repair) and all floors cleaned and waxed, all to the reasonable satisfaction of
Landlord.  Tenant shall  remove from the Premises all of Tenant's Alterations
which Landlord requires Tenant to remove pursuant to Section 8.1 and all
Tenant's Personal Property, and shall repair any damage and perform any
restoration work caused by such removal.  If Tenant fails to remove such
Alterations and Tenant's Personal Property which Tenant is authorized and
obligated to remove pursuant to the above, and such failure continues after the
termination of this Lease, Landlord may retain such property and all rights of
Tenant with respect to it shall cease, or Landlord may place all or any portion
of such property in public storage for Tenant's account.  Tenant shall pay to
Landlord, upon demand, the costs of removal of any such Alterations and Tenant's
Personal Property and storage and transportation costs of same, and the cost of
repairing and restoring the Premises, together with attorneys' fees and interest
on said amounts at the Applicable Rate from the date of expenditure by Landlord.
If the Premises are not so surrendered at the termination of this Lease, Tenant
hereby agrees to Indemnify Landlord and Landlord's Agents against all loss or
liability resulting from any delay by Tenant in so surrendering the Premises,
including but not limited to, any claims made by any succeeding tenant, losses
to Landlord due to lost opportunities to lease to succeeding tenants, and actual
attorneys' fees and costs.

       19.2.  Holding Over.  If Tenant remains in possession of all or any part
of the Premises after the expiration of the Term with the prior written consent
of Landlord, such possession shall constitute a month-to-month tenancy only and
shall not constitute a renewal or extension for any further term.  If Tenant
remains in possession of all or any part of the Premises after the expiration of
the Term without the prior written consent of Landlord, such possession shall
constitute a tenancy at sufferance.  In either of such events, Monthly Rent
shall be increased to an amount equal to one hundred fifty percent (150%) of the
Monthly Rent payable during the last month of the Term, and any other sums due
hereunder shall be payable in the amounts and at the times specified in this
Lease.  Any such tenancy shall be subject to every other term, condition, and
covenant contained in this Lease.

                                     ARTICLE XX

                        CONSTRUCTION OF TENANT IMPROVEMENTS

       The obligations of Landlord and Tenant, if any, with respect to the
Tenant Improvements, are set forth in the Work Letter attached on EXHIBIT C.  It
is acknowledged and agreed that all Tenant Improvements under this lease are and
shall be the property of Landlord from and after their installation.

                                    ARTICLE XXI

                     MISCELLANEOUS AND INTERPRETIVE PROVISIONS

       21.1   Broker.  Landlord and Tenant each warrant and represent to the
other that neither has had any dealing with any real estate broker, agent or
finder in connection with the negotiation of this Lease or the

                                         29.
<PAGE>

introduction of the parties to this transaction, except for the Broker (whose
commission shall be paid by Landlord), and that it knows of no other real estate
broker, agent or finder who is or might be entitled to a commission or fee in
connection with this Lease.  In the event of any additional claims for brokers'
or finders' fees with respect to this Lease, Tenant shall indemnify, hold
harmless, protect and defend Landlord from and against such claims if they shall
be based upon any statement or representation or agreement made by Tenant, and
Landlord shall indemnify, hold harmless, protect and defend Tenant from and
against such claims if they shall be based upon any statement, representation or
agreement made by Landlord.

       21.2   Examination of Lease.  Submission of this Lease for examination or
signature by Tenant does not create a reservation of or option to lease.  This
Lease shall become effective and binding only upon full execution of this Lease
by both Landlord and Tenant.

       21.3   No Recording.  Tenant shall not record this Lease or any
memorandum of this Lease without Landlord's prior written consent, but if
Landlord so requests, Tenant agrees to execute, have acknowledged and deliver a
memorandum of this Lease in recordable form which Landlord thereafter may file
for record.

       21.4   Quitclaim.  Upon any termination of this Lease, Tenant shall, at
Landlord's request, execute, have acknowledged and deliver to Landlord an
instrument in writing releasing and quitclaiming to Landlord all right, title
and interest of Tenant in and to the Premises by reason of this Lease or
otherwise.

       21.5   Modifications for Mortgagees.  In connection with obtaining
financing for the Premises or any portion thereof, Landlord's Mortgagees shall
request reasonable modifications to this Lease as a condition to such financing,
Tenant shall not unreasonably withhold, delay or defer its consent thereto,
provided such modifications do not adversely affect Tenant's rights hereunder.
Tenant's failure to so consent shall constitute an Event of Default under this
Lease.

       21.6   Notice.  Any Notice required or desired to be given under this
Lease shall be in writing and shall be addressed to the address of the party to
be served.  The addresses of Landlord and Tenant are as set forth in Items 1 and
3, respectively, of the Basic Lease Provisions, except that (a) prior to the
Commencement Date, the address for Notices to Tenant shall be as set forth
opposite Tenant's signature on this Lease, and (b) from and after the
Commencement Date, notwithstanding the addresses for Tenant set forth in Item 3
of the Basic Lease Provisions, all Notices regarding the operation and
maintenance of the Project shall be delivered to Tenant at the Premises.  Each
such notice shall be deemed effective and given (i) upon receipt, if personally
delivered (which shall include delivery by courier or overnight delivery
service), (ii) upon being telephonically confirmed as transmitted, if sent by
telegram, telex or telecopy, (iii) two (2) business days after deposit in the
United States mail in Orange County or in the county in which the Premises are
located, certified and postage prepaid, properly  addressed to the party to be
served, or (iv) upon receipt if sent in any other way.  Any party hereto may
from time to time, by Notice to the other in accordance with this Section 21.6,
designate a different address than that set forth above for the purposes of
Notice.

       21.7.  Caption.  The captions and headings used in this Lease are for the
purposes of convenience only and shall not be construed to limit or extend the
meaning of any part of this Lease.

       21.8.  Executed Copy.  Any fully executed copy of this Lease shall be
deemed an original for all purposes.

       21.9.  Time.  Time is of the essence for the performance of each term,
condition and convenant of this Lease.

       21.10  Severability.  If any one or more of the provisions contained
herein shall for any reason be held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality, or unenforceability shall not affect
any other provision of this Lease, but this Lease shall be construed as if such
invalid, illegal or unenforceable provision had not been contained herein.

                                         30.

<PAGE>

       21.11. Survival.  All covenants and indemnities set forth herein which
contemplate the payment of sums, or the performance by Tenant after the Term or
following and Event of Default, including specifically, but not limited to, the
covenants and indemnities set forth in Section 5.3., Article VI, Article VII,
Section 8.1, Section 9.2, Section 11.1, Section 11.10, Article XV, and
Article XIX, and all representations and warranties of Tenant, shall survive the
expiration or sooner termination of this Lease.

       21.12. Choice of Law.  This Lease shall be construed and enforced in
accordance with the laws of the State of California.  The language in all parts
of this Lease shall in all cases be construed as a whole according to its fair
meaning and not strictly for or against either Landlord or Tenant.

       21.13. Gender:  Singular or Plural.  When the context of this Lease
requires, the neutral gender includes the masculine, the feminine, a partnership
or corporation or joint venture, the singular includes the plural and the plural
includes the singular.

       21.14. Non-Agency.  It is not the intention of Landlord or Tenant to
create hereby a relationship of master-servant or principal-agent, and under no
circumstance shall tenant herein be considered the agent of Landlord, it being
the sole purpose and intent of the parties hereto to create a relationship of
Landlord and tenant.

       21.15. Successors.  The intent, covenants, conditions and agreements
contained in this Lease shall, subject to the provisions as to assignment,
subletting, and bankruptcy contained herein and any other provisions restricting
successors or assign, apply to and bind the heirs, successors, legal
representatives and assigns of the parties hereto.

       21.16. Waiver: Remedies, Cumulative.  The waiver by either party of any
term, covenant, agreement or condition herein contained shall not be deemed to
be a waiver of any subsequent breach of the same or any other term, covenant,
agreement or condition herein contained, nor shall any custom or practice which
may grow up between the parties in the administration of this Lease be construed
to waive or to lessen the right of either party to insist upon the performance
by the other party in strict accordance with all of the provisions of this
Lease.  The subsequent acceptance of Rent hereunder by Landlord shall not be
deemed to be a waiver of any preceding breach by Tenant of any provisions,
covenant, agreement or condition of this Lease, other than the failure of Tenant
to pay the particular Rent payment so accepted, regardless of Landlord's
knowledge of such preceding breach at the time of acceptance of such Rent
payment.  Landlord's acceptance of any check, letter or payment shall in no
event be deemed an accord and satisfaction, and Landlord shall accept the check,
letter or payment without prejudice to Landlord's right to recover the balance
of the Rent or pursue any other remedy available to it.  The rights and remedies
of either party under this Lease shall be cumulative and in addition to any and
all other rights and remedies which either party have or may have.

       21.17. Unavoidable Delay.  Except for the monetary obligations of Tenant
under this Lease, neither party shall be chargeable with, liable for, or
responsible to the other for anything or in any amount for any Unavoidable Delay
and any Unavoidable Delay shall not be deemed a breach of or default in the
performance of this Lease, it being specifically agreed that any time limit
provision contained in this Lease (other than the scheduled expiration of the
Term) shall be extended for the same period of time lost by Unavoidable Delay.

       21.18. Entire Agreement.  This Lease is the entire agreement between the
parties, and supersedes any prior agreements, representations, negotiations or
correspondence between the parties except as expressed herein.  Except as
otherwise provided herein, no subsequent change or obligation to this Lease
shall be binding unless in writing and signed by the parties herein.

       21.19. Authority.  If Tenant is a corporation or a partnership, each
individual executing this Lease on behalf of the corporation or partnership, as
the case may be, represent and warrants that he is duly authorized to execute
and deliver this Lease on behalf of said entity in accordance with its corporate
bylaws, statement of partnership or certificate of limited partnership, as the
case may be, and that this Lease is by Landlord, within thirty (30) days after
execution of this Lease and prior to entering into possession of the Premises,
deliver to Landlord a certified copy of a resolution of the Board of Directors
of the corporation or certificate of the Secretary of the corporation,
authorizing, ratifying or confirming the execution of this Lease.  If Tenant is
a partnership, Tenant shall, if requested by Landlord, within thirty (30) days
after the execution of this Lease and prior to entering into

                                         31.
<PAGE>

possession of the Premises, deliver to Landlord's certified copy of its
partnership agreement authorizing such execution.

       21.20. Guaranty.  As a condition to the execution of this Lease by
Landlord, the obligations, covenants and performance of the Tenant as herein
provided shall be guaranteed in writing by the Guarantor listed in Item 14 of
the Basic Lease Provisions, if any, on a form of guarantee provided by Landlord.

       21.21. Exhibits; References.  All exhibits, amendments, riders and
addenda attached to this Lease are hereby incorporated into and made a part off
this Lease.  In the event of variation or discrepancy, the duplicate  original
hereof (including exhibits, amendments, riders and addenda, if any, specified
above) held by Landlord shall control.  All references in this Lease to
Articles, Sections, Exhibits, Riders and clauses are made, respectively, to
Articles, Sections, Exhibits, Riders and clauses of this Lease, unless otherwise
specified.

       21.22. Basic Lease Provisions.  The Basic Lease Provisions at the
beginning of this Lease are intended to provide general information only.  In
the event of any inconsistency between the basic Lease Provisions and the
specific provisions of this Lease, the specific provisions of this Lease shall
prevail.

       21.23. No Merger.  The voluntary or other surrender of this Lease by
Tenant, or a mutual cancellation thereof, or a termination by Landlord, shall
not work a merger, and shall, at the option of Landlord, teerminate all or any
existing subtenancies or may, at the option of Landlord, operate as an
assignment to Landlord of any or all such subtenancies.

       21.24. Joint and Several Obligations.  If more than one person or entity
is Tenant, the obligations imposed on each such person or entity shall be joint
and several.

       21.25. No Light or Air Easement.  Any diminution or shutting off of light
or air by any structure which may be erected on lands adjacent to the Building
shall in no way affect this Lease, abate Rent or otherwise impose any liability
on Landlord.  This Lease does not confer any right with regard to the subsurface
below the ground level of the Building.

       21.26. Security Measures.  Tenant hereby acknowledges that Landlord shall
have no obligation whatsoever to provide guard service or other security
measures for the benefit of the Premises or the Project.  Tenant assumes all
responsibility for the protection of Tenant, Tenant's Agents and the property of
Tenant and of Tenant's Agents from acts of third parties.  Nothing herein
contained shall prevent Landlord, at Landlord's sole option, from providing
security protection for the Project or any part thereof, in which event the cost
thereof shall be included within the definition of Maintenance Expenses and paid
by Tenant in the manner set forth in Section 7.1.

                                         32.
<PAGE>

       THIS LEASE is effective as of the date the last signatory necessary to
       execute this Lease shall have executed this Lease.

                                          "LANDLORD"

                                          O'DONNELL PALO ALTO ASSOCIATES,
                                          a California general partnership

                                          By:    /s/ Donald S. Grant
                                                 ------------------------------
                                                 DONALD S. GRANT
                                          Its:   Authorized Signature

       ADDRESS FOR NOTICES PRIOR TO       "TENANT"

       COMMENCEMENT DATE:

                                          OMNICELL TECNHOLOGIES, INC.,
                                          a California corporation

       1101 E. Meadow Drive
       --------------------
       Palo Alto, CA 94303                By:    /s/ Earl E. Fry
       -------------------                       ------------------------------
       Attn:  Earl Fry
                                          Name:  Earl E. Fry
                                                 ------------------------------
                                          Title: VP & CFO

                                         33.

<PAGE>

                                      EXHIBIT A

                              DESCRIPTION OF PREMISES

     This Exhibit is attached to and made a part of that certain Standard Form
Lease dated April 3, 1996, by and between O'DONNELL PALO ALTO ASSOCIATES, a
California general partnership ("Landlord"), and OMNICELL TECNHOLOGIES, INC., a
California corporation ("Tenant"), for the Premises known as 1057 E. Meadow
Circle, Palo Alto, California.

                                     [FLOOR PLAN]

                                          1.

<PAGE>

                                     EXHIBIT B

                                 PROJECT SITE PLAN

This Exhibit is attached to and made a part of that certain Standard Form Lease
dated April 3, 1996, by andBetween O'DONNELL PALO ALTO ASSOCIATES, a California
general partnership ("Landlord"), and OMNICELL TECHNOLOGIES, INC., a California
corporation ("Tenant"), for the Premises known as 1057 E. Meadow Circle, Palo
Alto, California.

          EAST MEADOW CIRCLE BUILDING

                                    [SITE PLAN]

                                          1.

<PAGE>

                                     EXHIBIT C

                                    WORK LETTER

     This Exhibit is attached to and made a part of that certain Standard Form
Lease dated April 3, 1996, by and between O'DONNELL PALO ALTO ASSOCIATES, a
California general partnership, as "Landlord", OMNICELL TECHNOLOGIES, INC., a
California corporation, as "Tenant", for the Premises known as 1057 E. Meadow
Circle, Palo Alto, California.

1.   APPLICATION OF EXHIBIT

     Capitalized terms used and not otherwise defined heroin shall have the
same definitions as set forth in the Lease.  The provisions of this Work Latter
shall apply to the planning and completion of leasehold improvements requested
by Tenant (the "Tenant Improvements") for the fitting out of the Promises, as
more fully set forth herein.

2.   LANDLORD AND TENANT PRE-CONSTRUCT ION OBLIGATIONS

     (a)  PRELIMINARY PLANS.  Within seven (7) business days following full
execution of this Lease by both Landlord and Tenant, Landlord's Architect shall
prepare preliminary space plans for the Tenant Improvements (the "Preliminary
Plans") which shall include, without limitation, sketches and/or drawings
showing the locations of door, partitioning, electrical fixtures, outlets and
switches, plumbing fixtures, floor loads and other requirements, and a list of
all specialized installations and improvements and upgrade specifications
determined by Tenant as required for its use of the Premises.  Tenant agrees to
and shall promptly and fully cooperate with Landlord's Architect and shall
supply all information Landlord's Architect dooms necessary for the preparation
of the Preliminary Plans.  Tenant acknowledges that the Preliminary Plans shall
be prepared by Landlord's Architect after consultation and cooperation between
Tenant and Landlord's Architect regarding the proposed Tenant Improvements and
Tenant's requirements.  Landlord and Landlord's Architect shall be entitled, in
all respects, to rely upon all information supplied by Tenant regarding the
Tenant Improvements.  The costs associated with preparation of the Preliminary
Plans shall be borne by Tenant and paid as set forth in Sections 5 and 6 of the
Work Letter.

     (b)  WORKING DRAWINGS.  Within fifteen (15) business days following
full execution of this Lease by both Landlord and Tenant Landlord's Architect
shall prepare working drawings (the "Working Drawings") for the Tenant
improvements based upon the approved Preliminary Plans.  The Working Drawings
shall include architectural, mechanical and electrical construction drawings for
the Tenant Improvements based on the Preliminary Plans.  Notwithstanding the
Preliminary Plans, in all cases the Working Drawings (i) shall be subject to
Landlord's final approval, which approval shall not be unreasonably withhold,
(ii) shall not be in conflict with building codes for the City or County or with
insurance requirements for a fire resistive class A building, and (iii) shall be
in a form satisfactory to appropriate governmental authorities responsible for
issuing permits and licenses required for construction.  The costs associated
with preparation of the Working Drawings shall be borne by Tenant and paid as
set forth in Sections 5 and 6 of this Work Letter.

     (c)  APPROVAL OF WORKING DRAWINGS.  Landlord or Landlord's Architect
shall submit the working Drawings to Tenant for Tenant's review, and Tenant
shall notify Landlord and Landlord's Architect within five (5) days after
delivery thereof of any requested revisions.  Within three (3) business days
after receipt of Tenant's notice, Landlord's Architect shall make all approved
revisions to the Working Drawings and submit two (2) copies thereof to Tenant
for its final review and approval, which-approval shall be given within three
(3) days thereafter.  Concurrently with the above review and approval process,
Landlord may submit all plans and specifications to City and other applicable
governmental agencies in an Attempt to expedite City approval and issuance of
all necessary permits and licenses to construct the Tenant Improvements as shown
on the Working Drawings.  Any changes

                                          1.

<PAGE>

which are required by City or other governmental agencies shall be immediately
submitted to Landlord for Landlord's review and reasonable approval, and
Landlord shall promptly notify Tenant of such changes.

     (d)  SCHEDULE OF CRITICAL DATES.  Set forth below is a schedule of
certain critical dates relating to Landlord's and Tenant's respective
obligations for the design and construction of the Tenant Improvements.  Such
dates and the respective obligations of Landlord and Tenant are more fully
described elsewhere in this Work Letter.  The purpose of the following schedule
in to provide a reference for Landlord and Tenant and to make certain the Final
Approval Date occurs as set forth herein.  Following the Final Approval Date,
Tenant shall be deemed to have released Landlord to commence construction of the
Tenant Improvements As set forth in Section 4 below.

<TABLE>
<CAPTION>
                   Reference                                   Date Due                     Responsible Party
                   ----------                                  ---------                    -----------------
 <S>    <C>                                    <C>                                          <C>
 A.     "Preliminary Plan Completion"          Seven (7) business days after full              Tenant and
                                               execution of the Lease                           Landlord

 B.     "Working Drawings Completion"          Fifteen (15) business days after full            Landlord
                                               execution of the Lease

 C.     "Working Drawings Revision"            Five (5) days after Landlord submits the          Tenant
                                               Working Drawings to Tenant

 D.     "Working Drawings Revision"            Three (3) business days after Tenant             Landlord
                                               returns the Working Drawings to Landlord

 E.     "Final Approval Date"                  Three (3) days after Landlord submits the         Tenant
                                               revised Working Drawings to Tenant
</TABLE>

3.   BUILDING PERMIT

     After the Final Approval Date has occurred, Landlord shall, if Landlord
ham not already done so, submit the Working Drawings to the appropriate
governmental body or bodies for final plan checking and a building permit,
Landlord, with Tenant's cooperation, shall cause to be made any change in the
Working Drawings necessary to obtain the building permit; provided, however,
after the Final Approval Data, no changes shall be made to the Working Drawings
without the prior written approval of both Landlord and Tenant, and than only
after agreement by Tenant to pay any excess costs resulting from such changes.

4.   CONSTRUCTION OF TENANT IMPROVEMENTS

     After the Final Approval Date has occurred and a building permit for the
work has been issued, Landlord shall, through a guaranteed maximum cost or fixed
price (at Landlord's sole option) construction contract ("Construction
Contract") with a reputable, licensed contractor selected by Landlord
("Contractor"), cause the construction of the Tenant Improvements to be carried
out in substantial conformance with the Working Drawings in a good and
workmanlike manner using first-class materials.  The costs associated with the
construction of the Tenant Improvements shall be paid as set forth in Sections 5
and 6 of this Work Letter.  Landlord shall see that the construction complies
with all applicable building, fire, health, and sanitary codes and regulations,
the satisfaction of which shall be evidenced by a certificate of occupancy for
the Premises.

5.   TENANT IMPROVEMENT ALLOWANCE

     Landlord shall provide Tenant with a Tenant Improvement Allowance in the
amount of One Hundred Fifteen Thousand One Hundred Dollars ($115,000) towards
the cost of the design, purchase and construction of the Tenant Improvements,
including without limitation design, engineering and consulting fees
(collectively, the "Tenant Improvement Costs").  The Tenant Improvement
Allowance shall be used for payment of the following Tenant Improvements Costs:

                                          2.

<PAGE>

          (i)  Preparation by Landlord's Architect of the Preliminary
Plans and the Working Drawings as provided in Section 2 of this Work Letter,
including without limitation all fees charged by City (including without
limitation fees for building permits and plan checks) in connection with the
Tenant Improvements work in the Promises;

          (ii) Construction work for completion of the Tenant Improvements
as reflected in the Construction Contract; and

          (iii)     All contractors' charges, general conditions, performance
bond premiums and construction fees.

6.   COSTS IN EXCESS OF TRUANT IMPROVEMENT ALLOWANCE AT TENANT'S EXPENSE

     (a)  COST APPROVAL.  Tenant shall pay the excess of the Tenant
Improvement Costs over the amount of the Tenant Improvement Allowance available
to defray such costs.  Concurrent with the plan checking referred to in Section
3 of this Work Letter, Landlord shall prepare and submit to Tenant a written
estimate of the amount of the remaining Tenant Improvement Costs and the cost of
the Tenant Improvement Allowance still available to defray such costs (after
preparation of the Preliminary Plans and Working Drawings).  Tenant shall
approve or disapprove any such estimate by written notice to Landlord within
three (3) days after receipt thereof.  It Tenant fails to notify Landlord of its
disapproval within such three (3) day period, Tenant shall be deemed to have
approved such estimate.  If such estimate exceeds the Tenant Improvement
Allowance then still available and Tenant approves such estimate, Tenant's
notice of approval shall include payment to Landlord for the full amount of such
excess.  If Tenant disapproves such estimate within the three (3) day period,
Tenant shall be required to direct Landlord and Landlord's Architect to amend
the Working Drawings in a manner satisfactory to Landlord so as to reduce the
estimated costs to an amount acceptable to Tenant, and any excess estimated
costs remaining after such amendment shall be paid by Tenant in the manner
described in the preceding sentence.  Tenant shall additionally pay any costs
resulting from such amendment and Tenant shall be liable for the delay in
completing the Tenant improvements and the increased costs, if any, resulting
from such delay.  If Tenant is unwilling or unable to amend the Working Drawings
in a manner acceptable to Landlord, then Tenant shall be, deemed to have
approved of the estimate for the Working Drawings as prepared, and shall pay in
full the amount of any excess estimated costs together with any costs arising
from delay as a result of Tenant's actions hereunder, in the manner hereinabove
provided.

     (b)  FINAL COSTS.  Within sixty (60) days after completion by Landlord
of the Tenant Improvements, Landlord shall determine the actual final Tenant
Improvements Costs and shall submit a written statement of such amount to
Tenant.  If any estimate previously paid by Tenant exceeds the amount due
hereunder from Tenant for such work, such excess shall be refunded to Tenant.
If any amount is still due from Tenant for such work, then Tenant shall pay such
amount in full within ten (10) days of receipt of Landlord's statement.

7.   CHANGE ORDERS

     Tenant may from time to time request and obtain change orders during the
course of construction provided that;  (i) each such request shall be
reasonable, shall be in writing and signed by or on behalf of Tenant, and shall
not result in any structural change in the Building, as reasonably determined by
Landlord, (ii) all additional charges and costs, Including without limitation
architectural and engineering costs, construction and material costs, and
processing costs of any governmental entity shall be the sale and exclusive
obligation of Tenant, and (iii) any resulting delay in the completion of the
Tenant improvements shall be doomed a Tenant Delay and in no event shall extend
the Commencement Date of the Lease.  Upon Tenant's request for a change order,
Landlord shall as soon as reasonably possible submit to Tenant a written
estimate of the increased or decreased cost and anticipated delay, if any,
attributable to such requested change.  Within three (3) days of the date such
estimated cost adjustment and delay are delivered to Tenant, Tenant shall advise
Landlord whether it wishes to proceed with the change order, and if Tenant
elects to proceed with the change order, Tenant shall remit, concurrently with
Tenant's notice to proceed, the amount of the increased cost, if any,
attributable to such change order.  Unless Tenant includes in its initial change
order request that the work in process at the time such request in made be
halted pending approval and execution of a change order, Landlord shall not be
obligated to stop construction of the Tenant Improvements, whether or not the
change order relates to the work then in process or about to be started.

                                          3.

<PAGE>

8.   TENANT DELAYS

     In no event shall the Commencement Date of the Lease be extended or
delayed due or attributable to delays due to the fault of Tenant ("Tenant
Delays").  Tenant Delays shall include, but are not limited to, delays caused by
or resulting from any one or more of the following

     (a)  Tenant's failure to timely review and reasonably approve the
Working Drawings or to promptly cooperate with Landlord's Architect and furnish
information to Landlord for the preparation of the Preliminary Plans and Working
Drawings

     (b)  Tenant's request for or use of special materials, finishes or
installations which are not readily available, provided that Landlord shall
notify Tenant in writing that the particular material, finish, or installation
is not readily available promptly upon Landlord's discovery of same;

     (c)  Change orders requested by Tenant;

     (d)  Interference by Tenant or by Tenant's Agents with Landlord's
construction activities;

     (e)  Tenant's failure to approve any other item or perform any other
obligation in accordance with and by the dates specified herein or in the
Construction Contract;

     (f)  Tenant's requested changes in the Preliminary Plans, Working
Drawings or any other plans and specifications after the approval thereof by
Tenant or submission thereof by Tenant to Landlord;

     (g)  Tenant's failure to approve written estimates of costs in
accordance with this Work Letter; or

     (h)  Tenant's obtaining or failure to obtain any necessary governmental
approvals or permits for Tenant's intended use of the Premises.

     If the Commencement Date at the Lease is delayed by any Tenant Delays,
whether or not within the control of Tenant, then the Commencement Data of the
Lease and the payment of Rent shall be accelerated by the number of days of such
delay.  Landlord shall give Tenant written notice within a reasonable time of
any circumstance that Landlord believes constitutes a Tenant Delay.

9.   TRADE FIXTURES AND EQUIPMENT

     Tenant acknowledges and agrees that Tenant is solely responsible for
obtaining, delivering and installing in the Promises all necessary and desired
furniture, trade fixtures, equipment and other similar items, and that Landlord
shall have no responsibility whatsoever with regard thereto.  Tenant further
acknowledges and agrees that neither the Commencement Date of the Lease nor the
payment of Rent shall be delayed for any period of time whatsoever due to any
delay in the furnishing of the Premises with such items.

10.  FAILURE OF TENANT TO COMPLY

     Any failure of Tenant to comply with any of the provisions contained in
this Work Letter within the times for compliance herein set forth shall be
deemed a default tinder the Lease.  In addition to the remedies provided to
Landlord in this Work Letter upon the occurrence of such a default by Tenant,
Landlord shall have all remedies available at law or equity to a Landlord
against a defaulting tenant pursuant to a written lease, including but not
limited to those met forth in the Lease.

                                          4.

<PAGE>

                                     EXHIBIT D

                            COMMENCEMENT DATE MEMORANDUM

DATE:     August 8, 1996

RE:  Standard Form Lease dated April 3, 1996, by and between O'Donnell Palo
     Alto Associates as "Landlord", and OmniCell Technologies, Inc. as
     "Tenant", for the Premises known an 1057 East Meadow Circle, Palo Alto,
     California.

                                     AGREEMENT

     The undersigned hereby agree as follows:

     1.   The Tenant Improvements (as defined in the Lease) to the Promises
have been substantially completed in accordance with the terms and conditions of
the Lease, subject only to "punch list" items agreed to by Landlord and Tenant
pursuant to the terms of the Lease.

     2.   The Commencement Date, as defined in and determined in accordance
with the Lease, is hereby stipulated for all purposes to be August 12, 1996.

     3.   In accordance with the Lease, Monthly Rent (as defined In the
Lease) in the amount of Twenty-Seven Thousand Six Hundred Twenty-Four and no/100
Dollars ($27,624.00), subject to adjustment in accordance with the terms of the
Lease, commences to accrue on August 12, 1996, and is due and payable in advance
on the first day of each and every month during the Term (as defined in the
Lease).  Unless and until notified by Landlord to the contrary, Tenant shall
make its Rent chocks payable to O'Donnell Palo Alto Associates, Dept. 66221, El
Monte, CA  91735-6221.

"LANDLORD"

O'DONNELL PALO ALTO ASSOCIATES,

a California general partnership

By: /s/ Donald S. Grant
   -------------------------------------
          Donald S. Grant

Its: Authorized Signature
    ------------------------------------

"TENANT"

OMNICELL TECHNOLOGIES, INC.,
a California corporation

By:  /s/ Earl E. Fry
   -------------------------------------

Its: VP & CFO
    ------------------------------------

                                          1.<PAGE>

                                                                    EXHIBIT 10.4

                  AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION

            STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE-NET
               (Do not use this form for Multi-Tenant Property)

1.   Basic Provisions ("Basic Provisions")

     1.1  Parties: This Lease ("Lease"), dated for reference purposes only,
March 25, 1994, is made by and between W.F. Batton & Co., Inc., a California
corporation and OmniCell Technologies, Inc., a California corporation
("Lessee"), (collectively the "Parties," or individually a "Party").

     1.2  Premises: That certain real property, including all improvements
therein or to be provided by Lessor under the terms of this Lease, and commonly
known by the street address of 1101 East Meadow Drive, Palo Alto, CA located in
the County of Santa Clara, State of California and generally described as
(describe briefly the nature of the property) approximately 30,600 sq. ft.

     1.3  Term: Five (5) years commencing on the later of (i) May 1, 1994 and
(ii) the date by which all of the following have occurred: (a) Lessor has
substantially completed the Lessee Interior Improvements in accordance with the
Work Letter attached hereto as Exhibit "A", (b) Lessor has delivered possession
of the Premises to Lessee, and (c) Lessee may lawfully occupy the Premises under
applicable law.

     If the Commencement Date has not occurred for any reason whatsoever on or
before August 1, 1994, then in addition to Lessee's other rights or remedies,
(i) Lessee may terminate this Lease by written notice to Lessor, whereupon any
monies previously paid by Lessee to Lessor shall be reimbursed to Lessee,
together with interest thereon from the date of the termination until paid at
two percent (2%) plus the "prime rate" charged by Bank of America N.T. & S.A.
("Bank") or the highest rate permitted by law, whichever is less (herein the
"Interest Rate"); or (ii) at Lessee's election, the date Lessee is otherwise
obliged to commence payment of rent shall be delayed by one day for each day
that the Commencement Date is delayed beyond August 1, 1994.

     1.4  Early Possession: ________________________ ("Early Possession Date").
(See Paragraphs 3.2 and 3.3 for further provisions.)

     1.5  Base Rent:

     BASE MONTHLY
     RENT SCHEDULE:      Months     Base Monthly  Rent NNN

                         1          $     0
                         2-6        $19,890       $ 99,450   5
                         7-12       $22,950        137,700   6
                         13-24      $24,480        293,760  12
                         25-36      $28,458        341,496  12
                         37-48      $31,518        378,216  12
                         49-60      $33,354        400,248  12
                         (59)       $27,980
                         (60)       $27,514

     1.6  Base Rent Paid Upon Execution: See Attached Addendum (insert 2) as
Base Rent for the period ___________________________.

     1.7  Security Deposit: $27,450 ("Security Deposit"). (See Paragraph 5 for
further provisions.)

     1.8  Permitted Use: General office, marketing, research and development,
light assembly, engineering and other legal uses (See Paragraph 6 for further
provisions.)

                                       1.

<PAGE>

     1.9  Insuring Party: Lessor is the "Insuring Party" unless otherwise stated
herein. (See Paragraph 8 for further provisions.)

     1.10 Real Estate Brokers: The following real estate brokers (collectively,
the "Brokers") and brokerage relationships exist in this transaction and are
consented to by the Parties (check applicable boxes): Wayne Mascia Associates
represents Lessor exclusively ("Lessor's Broker"); and Cornish & Carey
Commercial represents Lessee exclusively ("Lessee's Broker"). (See Paragraph 15
for further provision.)

     1.11 Guarantor. The obligations of the Lessee under this Lease are to be
guaranteed by _________________________________ ("Guarantor"). (See Paragraph 37
for further provisions.)

     1.12 Addenda. Attached hereto is an Addendum or Addenda consisting of
Inserts 1 through 36 and Exhibit "A" Work Letter all of which constitute a part
of this Lease.

2.   Premises.

     2.1  Letting. Lessor hereby leases to Lessee, and Lessee hereby leases from
Lessor, the Premises, for the term, at the rental, and upon all of the terms,
covenants and conditions set forth in this Lease. Unless otherwise provided
herein, any statement of square footage set forth in this Lease, or that may
have been used in calculating rental, is an approximation which Lessor and
Lessee agree is reasonable and the rental based thereon is not subject to
revision whether or not the actual square footage is more or less.

     2.2  Condition. Lessor shall deliver the Premises to Lessee clean and free
of debris on the Commencement Date and warrants to Lessee that the premises,
including, without limitation, the roof, structural elements of the Building and
all building systems serving the Premises, including, without limitation,
electrical, plumbing, fire sprinkler system, lighting, air conditioning,
heating, and loading doors, if any, in the Premises, other than those
constructed by Lessor shall, except as otherwise provided in this Lease,
promptly after receipt of written notice from Lessee setting forth with
specificity the nature and extent of such non-compliance, rectify same at
Lessor's expense. If Lessee does not give Lessor written notice of a non-
compliance with this warranty within thirty (30) days after the Commencement
Date, correction of that non-compliance shall be the obligation of Lessee at
Lessee's sole cost and expense.

     2.3  Compliance with Covenants, Restrictions and Building Code. Lessor
warrants to Lessee that the Premises and improvements on the Premises comply
with all applicable covenants or restrictions of record and applicable building
codes, regulations and ordinances in effect on the Commencement Date. Said
warranty does not apply to the specific use to which Lessee will put the
Premises or to any Alterations or Utility Installations (as defined in Paragraph
7.3(a)) made or to be made by Lessee. If the Premises do not comply with said
warranty, Lessor shall, except as otherwise provided in this Lease, promptly
after receipt of written notice from Lessee setting forth with specificity the
nature and extent of such non-compliance, rectify the same at Lessor's expense.

     2.4  Acceptance of Premises. Lessee hereby acknowledges: (a) that it has
been advised by the Brokers to satisfy itself with respect to the condition of
the Premises (including but not limited to the electrical and fire sprinkler
systems, security, environmental aspects, compliance with Applicable Law, as
defined in Paragraph 6.3) and the present and future suitability of the Premises
for Lessee's intended use, (b) that Lessee has made such investigation as it
deems necessary with reference to such matters and assumes all responsibility
therefor as the same relate to Lessee's occupancy of the Premises and/or the
term of this Lease, and (c) that neither Lessor, nor any of Lessor's agents, has
made any oral or written representations or warranties with respect to the said
matters other than as set forth in this Lease.

     2.5  Operating Expenses. Prior to the execution of this Lease, Lessor shall
have provided Lessee with a breakdown of current operating expenses relating to
the Premises for which Lessee shall be responsible in addition to the Monthly
Base Rent. Lessee shall be responsible for paying any actual increases in said
operating expenses which occur during the initial term, and the option term if
the option to extend is exercised.

                                       2.

<PAGE>

     2.6  Parking. Lessee shall have the right to the use of one hundred twenty
(120) parking spaces in the parking lot adjacent to the building.

3.   Term.

     3.1  Term. The Commencement Date, expiration Date and Original Term of this
Lease are as specified in Paragraph 1.3.

     3.2  Early Possession. If Lessee totally or partially occupies the Premises
prior to the Commencement Date, the obligation to pay Base Rent shall be abated
for the period of such early possession. All other terms of this Lease, however,
(including but not limited to the obligations to pay Real Property Taxes and
insurance premiums and to maintain the Premises) shall be in effect during such
period. Any such early possession shall not affect nor advance the Expiration
Date of the Original Term.

     3.3  Option.

     (a)  Lessee shall have an option to extend the term of the Lease for an
additional five (5) year term commencing on the day following the Expiration
Date, subject to all the terms and provisions of this Lease, except that (1)
there shall be no additional options to extend, and (2) the Base Monthly Rent
for the option period shall be equal to ninety-five percent (95%) of the fair
market rent of the Premises as of the commencement date of the option extension
period, but the Base Monthly Rent shall not be less than $27,515 per month, (the
"Option Base Monthly Rent"). The Option Base Monthly Rent for the Premises shall
be determined by comparison with base monthly rents being obtained under new
leases of premises in similar office buildings located in the Palo Alto area.
The Option Base Monthly Rent for the option extension period (and rental
adjustments during the option term, if any) shall be determined by agreement
between the Lessor and Lessee, if possible, and by the process of appraisal if
the parties cannot reach agreement.

     (b)  At lease six (6) months, but not more than twelve (12) months, prior
to the expiration of the initial term, Lessee shall deliver written notice to
Lessor of Lessee's exercise of its option to extend the Lease Term. If Lessee
fails to give such written notice of exercise within said period, said option
shall automatically lapse, time being of the essence with respect to the
exercise of the option. If Lessee gives such notice, the parties shall then
attempt to in good faith to agree upon the Option Base Monthly Rent within
thirty (30) days. If Lessor and Lessee reach such agreement, Lessor and Lessee
shall promptly execute an amendment to this Lease stating the amount of Option
Base Monthly Rent for the Premises during the option extension period (including
rental adjustments, if any).

     (c)  If after the expiration of said thirty (30) day period the parties
have not reached agreement as to the Option Base Monthly Rent for the Premises,
then the Option Base Monthly Rent shall be determined by appraisal in accordance
with the then customary practice in the Santa Clara County industrial/commercial
real estate industry for determining rent for option periods by appraisal.

     (d)  Notwithstanding anything to the contrary contained in this Paragraph,
if the Option Base Monthly Rent is determined by appraisal and if Lessee does
not, in its sole discretion, approve the rental amount established by such
appraisal, Lessee may rescind its exercise of the option by giving Lessor
written notice of such election to rescind within ten (10) days after receipt of
the results of appraisal. If Lessee rescinds its exercise of the option, then
(I) the Lease shall terminate on the thirtieth (30th) day after Lessee's notice
of rescission or on the date the Lease would have otherwise terminated absent
Lessee's exercise of the option, whichever date is later; and (ii) Lessee shall
pay all costs and expenses of the appraisal.

4.   Rent.

     4.1  Base Rent. Lessee shall cause payment of Base Rent and other rent or
charges, as the same may be adjusted from time to time as herein provided to be
received by Lessor in lawful money of the United States, without offset or
deduction, on or before the day on which it is due under the terms of this
Lease. Base Rent and all other rent and charges for any period during the term
hereof which is for less than one (1) full calendar month shall be prorated
based upon the actual number of days of the calendar month involved. Payment of
Base Rent and other

                                       3.

<PAGE>

charges shall be made to Lessor at its address stated herein or to such other
persons or at such other addresses as Lessor may from time to time designate in
writing to Lessee.

5.   Security Deposit. Lessee shall deposit with Lessor upon execution hereof
the Security Deposit set forth in Paragraph 1.7 as security for Lessee's
faithful performance of Lessee's obligations under this Lease. If Lessee fails
to pay Base Rent or other rent or charges due hereunder, or otherwise Defaults
under this Lease (as defined in Paragraph 13.1), Lessor may use, apply or retain
all or any portion of said Security Deposit for the payment of any amount due
Lessor or to reimburse or compensate Lessor for any liability, cost, expense,
loss or damage (including attorneys' fees) which Lessor may suffer or incur by
reason thereof. If Lessor uses or applies all or any portion of said Security
Deposit, Lessee shall within ten (10) days after written request therefor
deposit moneys with Lessor Sufficient to restore said Security Deposit to the
full amount required by this Lease. Lessor shall not be required to keep all or
any part of the Security Deposit separate from its general accounts. Lessor
shall, at the expiration or earlier termination of the term hereof and after
Lessee has vacated the Premises, return to Lessee (or, at Lessor's option, to
the last assignee, if any, of Lessee's interest herein), that portion of the
Security Deposit not used or applied by Lessor. Unless otherwise expressly
agreed in writing by Lessor, no part of the Security Deposit shall be considered
to be held in trust, to bear interest or other increment for its use, or to be
prepayment for any moneys to be paid by Lessee under this Lease.

6.   Use.

     6.1  Use. Lessee shall use and occupy the Premises only for the purposes
set forth in Paragraph 1.8, or any other use which is comparable thereto, and
for no other purpose unless approved in writing by Lessor, which approval shall
not be unreasonably withheld. Lessee shall not use or permit the use of the
Premises in a manner that creates waste or a nuisance, or that disturbs owners
and/or occupants of, or causes damage to, neighboring premises or properties.
Lessor hereby agrees to not unreasonably withhold or delay its consent to any
written request by Lessee, Lessees assignees or subtenants, and by prospective
assignees and subtenants of the Lessee, its assignees and subtenants, for a
modification of said permitted purpose for which the premises may be used or
occupied, so long as the same will not impair the structural integrity of the
improvements on the Premises, the mechanical or electrical systems therein, is
not significantly more burdensome to the Premises and the improvements thereon,
and is otherwise permissible pursuant to this Paragraph 6. If Lessor elects to
withhold such consent, Lessor shall within five (5) business days give a written
notification of same, which notice shall include an explanation of Lessor's
reasonable objections to the change in use.

     6.2  Hazardous Substances.

     (a)  Definition; covenant by Lessee. The term "Hazardous Substance" as used
in this Lease shall mean any product, substance, chemical, material, or waste
whose presence, nature, quantity and/or intensity of existence, use,
manufacture, disposal, transportation, spill, release or effect, either by
itself or in combination with other materials expected to be on the Premises, is
either (i) regulated or monitored by any governmental authority, or (ii) a basis
for liability of Lessor to any governmental agency or third party under any
applicable statute or common law theory. Hazardous Substance shall include, but
not be limited to, hydrocarbons, petroleum, gasoline, crude oil or any products,
by-products or fractions thereof. Lessee shall not cause any contamination or
damage to the Premises or the neighboring properties or cause Lessor to incur
any liability, loss, or damage as a result of the generation, possession,
storage, use, transportation, or disposal by Lessee of any Hazardous Substances
in the conduct of Lessee's business on the Premises. Notwithstanding the
foregoing, Lessee may, without Lessor's prior consent, but in compliance with
all Applicable Law, use any ordinary and customary materials reasonably required
to be used by Lessee in the normal course of Lessee's business permitted on the
Premises, so long as such use does not expose the Premises or neighboring
properties to any meaningful risk of contamination or damage or expose Lessor to
any liability therefor. Prior to the occupancy of the Premises by Lessee, Lessee
shall deliver to Lessor a list of the Hazardous Substances which Lessee
considers to be ordinary and customary materials reasonably required to be used
by Lessee in the normal course of Lessee's permitted use of the Premises. If
Lessor concurs therewith, Lessor shall so confirm in writing to Lessee, and such
confirmation shall constitute Lessor's consent to the existence, use,
manufacture, storage, and transportation of such Hazardous Substances in, on,
and about the Premises during the term of this Lease.

                                       4.

<PAGE>

     (b)  Duty to Inform Lessor. Upon the commencement of the Lease term and on
each anniversary date thereafter, Lessee shall provide to Lessor a list of the
primary Hazardous Substances which lessee uses or stores on the Premises, along
with, as to each such Hazardous Substance, its purpose and the approximate
volume brought onto the Premises since the last report to Lessor under this
Paragraph 6.2(b).

     (c)  Indemnification.

          (i)   Lessee shall indemnify, protect, defend and hold Lessor, and
Lessor's agents, employees, successors and assigns, harmless from and against
any and all loss of rents and/or damages, liabilities, judgments, costs, claims,
liens, expenses, penalties, permits and attorneys' and consultants' fees if
incurred as a result of the release, discharge or emission of any Hazardous
Substance or storage tank brought on the Premises during the Lease term by or
for Lessee or under Lessee's control. Lessee's obligations under this Paragraph
6.2 shall include, but not be limited to, the effects of any contamination or
injury to person, property, or the environment created by Lessee, and the cost
of investigation (including consultants' and attorneys' fee), testing, removal,
remediation, restoration and/or abatement thereof, or of any contamination
therein involved, and shall survive the expiration or earlier termination of
this Lease. No termination, cancellation, or release agreement entered into by
Lessor and Lessee shall release Lessee from Lessee's obligations under this
Lease with respect to Hazardous Substances or storage tanks, unless specifically
so agreed by Lessor in writing at the time of such agreement.

          (ii)  Lessor represents and warrants to Lessee that to the best of
Lessor's knowledge there are no Hazardous Substances located in, on, under, or
about the Premises as of the Commencement Date of the term of this Lease. Lessee
shall have no responsibility to Lessor or to any other person with respect to
the existence of any Hazardous Substances or storage tank on the Premises that
is not brought onto the Premises or caused by any of Lessee's employees, agents,
contractors, or other persons under Lessee's control or acting for or on behalf
of Lessee.

          (iii) Lessor shall indemnify, defend, protect and hold Lessee, its
employees' agents, shareholders, licensees, invitees, officers and directors,
harmless from and against any claims, actions, losses, costs, damages,
liabilities or expenses (including, without limitation, reasonable attorneys',
experts' and consultants fees, investigation and laboratory fees), arising out
of or in connection with any Hazardous Substance (including, without
limitations, asbestos) which Lessee establishes was present on the Commencement
Date of the term of this Lease on, under, in or about the Premises, soil, air,
groundwater or surface water thereof and was not caused by the acts or omissions
of Lessee or its agents, contractors, or employees.

     (d)  Lessee's Compliance with Law. Except as otherwise provided in the
Lease, Lessee, shall, at Lessee's sole costs and expense, fully diligently and
in a timely manner, comply with all "Applicable Law," which term is used in this
Lease shall include all laws, rules, regulations, ordinances, directives,
covenants, easements and restrictions of record, permits, the requirements of
any applicable fire insurance underwriter or rating bureau, relating to Lessee's
particular use of the Premises, including, but not limited to, matters
pertaining to (i) industrial hygiene, (ii) environmental conditions on, in,
under or about the Premises, including soil and groundwater conditions, and
(iii) the use, generation, manufacture, production, installation, maintenance,
removal, transportation, storage, spill or release of any Hazardous Substance or
storage tank, now in effect or which may hereafter come into effect, and whether
or not reflecting a change in policy from any previously existing policy. Lessee
shall, within ten (10) business days after receipt of Lessor's written request,
provide Lessor with copies of all documents and information, including, but not
limited to permits, registrations, manifests, applications, reports and
certifications, evidencing compliance with any Applicable Law specified by
Lessor in writing (with copies or any documents involved) or any threatened or
actual claim known to Lessee, notice, citation, warning, complaint or report
within Lessee's possession and control pertaining to or involving failure by
Lessee or the Premises to comply with any Applicable Law.

     (e)  Inspection Compliance. Lessor shall have the right to enter the
Premises at any time in the case of an emergency, and otherwise at reasonable
times upon at least 24 hours notice to the Lessee and subject to Lessee's
reasonable security precautions, for the purpose of inspecting the condition of
the Premises and for verifying the compliance by Lessee with this Lease and all
Applicable Laws (as defined in subparagraph (d) above), and to employ experts
and/or consultants in connection therewith and/or to advise Lessor with respect
to Lessee's

                                       5.

<PAGE>

activities, including, but not limited to, the installation, operation, use,
monitoring, maintenance, or removal of any Hazardous Substance or storage tank
on or from the Premises. The costs and expenses of any such inspections shall be
paid by the party requesting same, unless a Breach of this Lease is found to
exist, or unless the inspection is requested or ordered by a governmental
authority as the result of any such existing violation or contamination. In any
such case, Lessee shall upon request reimburse Lessor for the reasonable costs
and expenses of such inspections.

7.   Maintenance; Repairs; Utility Installations; Trade Fixtures and
     Alterations.

     7.1  Lessee's Obligations.

          (a)  Subject to the provisions of Paragraphs 2.2 (Lessor's warranty as
to condition), 2.3 (Lessor's warranty as to compliance with covenants, etc).
7.2 (Lessor's obligations to repair), 9 (damage and destruction), and 14
(condemnation) and except to the extent required as a result of the negligence
or willful misconduct of Lessor or Lessor's employees, agents, licensees or
invitees, Lessee shall, at Lessee's sole cost and expense and at all times keep
the Premises and every part thereof in good order, condition and repair
excluding structural elements of the Premises, the roof, exterior walls and
foundation of the Premises whether or not such portion of the Premises requiring
repairs, or the means of repairing the same, are reasonably or readily
accessible to Lessee, and whether or not the need for such repairs occurs as a
result of Lessee's use, any prior use, the elements or the age of such portion
of the Premises, including, without limiting the generality of the foregoing,
all equipment or facilities serving the Premises, such as plumbing, heating, air
conditioning, ventilating, electrical, lighting facilities, boilers, fired or
unfired pressure vessels, fire sprinkler and/or standpipe and hose or other
automatic fire extinguishing system, including fire alarm and/or smoke detection
systems and equipment, fire hydrants, fixtures, walls (interior and exterior),
foundations, ceilings, roofs, floors, windows, doors, plate glass, skylights,
landscaping, driveways, parking lots, fences, retaining walls, signs, sidewalks
and parkways located in, or, about, or adjacent to the Premises. Lessee shall
not cause or permit any Hazardous Substance to be spilled or released in, on,
under or about the Premises (including through the plumbing or sanitary sewer
system) and shall promptly, at Lessee's expense, take all investigatory and/or
remedial action reasonably recommended, whether or not formally ordered or
required, for the cleanup of any contamination of, and for the maintenance,
security and/or monitoring of the Premises, the elements surrounding same, or
neighboring properties, that was caused or materially contributed to by Lessee,
or pertaining to or involving any Hazardous Substance and/or storage tank
brought onto the Premises by or for Lessee or under its control. Lessee, in
keeping the Premises in good order, condition and repair, shall exercise and
perform good maintenance practices. Lessee's obligations shall include
restorations, replacements or renewals when necessary to keep the Premises and
all improvements thereon or a part thereof in good order, condition and state of
repair. If Lessee occupies the Premises of seven (7) years or more, Lessor may
require Lessee to repaint the exterior of the buildings on the Premises as
reasonably required, but not more frequently than once every seven (7) years.

          (b)  Lessee shall, at Lessee's sole cost and expense, procure and
maintain contracts, with copies to Lessor, in customary form and substance for,
and with contractors specializing and experienced in, the inspection,
maintenance and service of the following equipment and improvements, if any,
located on the Premises: (I) heating, air conditioning and ventilation
equipment, (ii) boiler, fired or unfired pressure vessels, (iii) fire sprinkler
and/or standpipe and hose or other automatic fire extinguishing systems,
including fire alarm and/or smoke detection, (iv) landscaping and irrigation
systems, (v) roof covering and drain maintenance and (vi) asphalt and parking
lot maintenance.

     7.2  Lessor's Obligations. Except for the warranties and agreements of
Lessor contained in Paragraphs 2.2 (relating to condition of the Premises), 2.3
(relating to compliance with covenants, restrictions and building code), 9
(relating to destruction of the Premises) and 14 (relating to condemnation of
the Premises), it is intended by the Parties hereto that Lessor have no
obligation, in any manner whatsoever, to repair and maintain the Premises, the
improvements located thereon, or the equipment therein, whether structural or
non structural, all of which obligations are intended to be that of the Lessee
under Paragraph 7.1 hereof. It is the intention of the Parties that the terms of
this Lease govern the respective obligations of the Parties as to maintenance
and repair of the Premises. Lessee and Lessor expressly waive the benefit of any
statute now or hereafter in effect to the extent it is inconsistent with the
terms of this Lease with respect to, or which affords Lessee the right to make
repairs at the expense of Lessor or to terminate this Lease by reason of any
needed repairs. Notwithstanding anything to the

                                       6.

<PAGE>

contrary in the Lease, Lessor shall perform and construct, at Lessor's sole cost
and expense, any repair, maintenance or improvement (i) necessitated by the acts
or omissions of Lessor or its agents, employees, invitees, or licensees (ii)
required as a consequence of any violation of Applicable Laws or a construction
defect in the Premises as of the Commencement Date (iii) which would be treated
as a "capital expenditure" under generally accepted accounting principles; (iv)
occasioned by fire, acts of God or other casualty or by the exercise of the
power of eminent domain, (v) for which Lessor has a right of reimbursement from
others, (vi) to the structural elements of the Premises, the structural elements
of the roof (but excluding the roof membrane), exterior walls and foundation of
the Premises, and (vii) relating to the abatement, removal, encapsulation, or
other handling of asbestos in, on or about the Premises existing on the
Commencement Date. Notwithstanding the foregoing, Lessee shall reimburse Lessor
for costs incurred with respect to (iii) above (excluding costs of asbestos
abatement) but only to the extent that (a) the same reduces the expenses
otherwise payable by Lessee under the Lease and (b) Lessee's share of such costs
during any twelve-month period of the Lease is amortized over the useful life of
the capital item in question.

     7.3  Utility Installations; Trade Fixtures; Alterations.

          (a)  Definitions; Consent Required. The term "Utility Installations"
is used in this Lease to refer to all carpeting, window coverings, all lines,
power panels, electrical distribution, security, fire protection systems,
communication systems, lighting fixtures, heating, ventilating, and air
conditioning equipment, plumbing, and fencing in, on or about he Premises
installed at Lessee's sole expense. The term "Trade Fixtures" shall mean
Lessee's furniture, fixtures, signage, machinery and equipment that can be
removed without doing material damage to the Premises. The term "Alterations"
shall mean any modification of the improvements on the Premises from that which
are provided by lessor under the terms of this Lease, other than Utility
Installations or Trade Fixtures, whether by addition or deletion. "Lessee Owned
Alterations and/or Utility Installations" are defined as Alterations and/or
Utility Installations made by Lessee that are not yet owned by Lessor as defined
in Paragraph 7.49a). Lessee shall not make any Alterations or Utility
Installations in, on, under or about the Premises without Lessor's prior written
consent. Lessee may, however, make non-structural Utility Installations or non-
structural alternations to the interior of the Premises (excluding the roof)
without Lessor's consent as long as they are not visible from the outside, do
not involve puncturing, relocating or removing the roof or any existing walls,
and the cumulative cost thereof during the term of this Lease as extended does
not exceed $25,000.

          (b)  Consent. Any Alterations or Utility Installations that Lessee
shall desire to make and which require the consent of the Lessor shall be
presented to Lessor in written form with proposed detailed plans. All consents
given by Lessor, whether by virtue of Paragraph 7.3(a) or by subsequent specific
consent, shall be deemed conditioned upon: (i) Lessee's acquiring all applicable
permits required by governmental authorities, (ii) the furnishing of copies of
such permits together with a copy of the plans and specifications of the
Alteration or Utility Installation to Lessor prior to commencement of the work
thereon, and (iii) the compliance by Lessee with all conditions of said permits
in a prompt and expeditious manner. Any Alterations or Utility Installations by
Lessee during the term of this Lease shall be done in a good and workmanlike
manner, with good and sufficient materials, and in compliance with all
Applicable Law. Lessee shall promptly upon completion thereof furnish Lessor
with as-built plans and specifications therefor. Lessor may (but without
obligation to do so) condition its consent to any requested Alteration or
Utility Installation that costs $10,000 or more upon Lessee's providing Lessor
with a lien and completion bond in an amount equal to one and one-half times the
estimated cost of such Alteration or Utility Installation and/or upon Lessee's
posting an additional Security Deposit with Lessor under Paragraph 36 hereof.

          (c)  Indemnification. Lessee shall pay, when due, all claims for labor
or materials furnished or alleged to have been furnished to or for Lessee at or
for use on the Premises, which claims are or may be secured by any mechanics' or
materialmen's lien against the Premises or any interest therein. Lessee shall
give Lessor not less than ten (10) days' notice prior to the commencement of any
work in, on or about the Premises, and Lessor shall have the right to post
notices of non-responsibility in or on the Premises as provided by law. If
Lessee shall, in good faith, content the validity of any such lien, claim or
demand, then Lessee shall, at its sole expense defend and protect itself, Lessor
and the Premises against the same and shall pay and satisfy any such adverse
judgment that may be rendered thereon before the enforcement thereof against the
Lessor or the Premises. If Lessor shall require, Lessee shall furnish to Lessor
a surety bond satisfactory to Lessor in an amount equal to one and one-half
times the amount of such contested lien claim or demand, indemnifying Lessor
against liability for the same, as required by law for the holding of the
Premises free from the effect of such lien or claim. In addition, Lessor may
require Lessee to pay

                                       7.

<PAGE>

Lessor's attorney's fees and costs in participating in such action if Lessor
shall decide it is to its best interest to do so.

     7.4  Ownership; Removal; Surrender; and Restoration.

          (a)  Ownership. Subject to Lessor's right to require their removal or
become the owner thereof as hereinafter provided in this Paragraph 7.4, all
Alterations and Utility Additions made to the Premises by Lessee shall be the
property of and owned by Lessee. Unless otherwise instructed per subparagraph
7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at
the expiration or earlier termination of this Lease, become the property of
Lessor and remain upon and be surrendered by Lessee with the Premises.

          (b)  Removal. Unless otherwise agreed in writing, Lessor may require
that any or all Lessee Owned Alterations or Utility Installations be removed by
the expiration or earlier termination of this Lease, notwithstanding their
installation may have been consented to by Lessor. Lessor may require the
removal at any time of all or any part of any Lessee Owned Alterations or
Utility Installations made without the required consent of Lessor. Upon request,
Lessor shall advise Lessee in writing whether it reserves the right to require
Lessee to remove any Alterations or Utility Installations from the Premises upon
termination of the Lease.

          (c)  Surrender/Restoration. Lessee shall surrender the Premises by the
end of the last day of the Lease term or any earlier termination date, with all
of the improvements, parts and surfaces thereof clean and free of debris and in
good operating order, condition and state of repair, ordinary wear and tear,
acts of God, casualties, condemnation, Hazardous Substances (other than those
stored, used or disposed of by Lessee in or about the Premises), and Alterations
or Utility Installations which Lessor states in writing may be surrendered at
the termination of the Lease excepted. "Ordinary wear and tear" shall not
include any damage or deterioration that would have been prevented by good
maintenance practice or by Lessee performing all of its obligations under this
Lease. Except as otherwise agreed or specified in writing by Lessor, the
Premises, as surrendered, shall include the Utility Installations. The
obligation of Lessee shall include the repair of any damage occasioned by the
installation, maintenance or removal of Lessee's Trade Fixtures, furnishings,
equipment, and Alterations and/or Utility Installations, as well as the removal
of any storage tank installed by or for Lessee, and the removal, replacement, or
remediation of any soil, material or ground water contaminated by Lessee, all as
may then be required by Applicable Law and/or good service practice. Lessee's
Trade Fixtures shall remain the property of Lessee and shall be removed by
Lessee subject to its obligation to repair and restore the Premises per this
Lease.

8.   Insurance; Indemnity.

     8.1  Payment for Insurance. Regardless of whether the Lessor Lessee is the
Insuring Party, Lessee shall pay for all insurance required under this Paragraph
8 except to the extent of the cost attributable to liability insurance carried
by Lessor in excess of $3,000,000 per occurrence. Premiums for policy periods
commencing prior to or extending beyond the Lease term shall be prorated to
correspond to the Lease term. Payment shall be made by Lessee to Lessor within
ten (10) days following receipt of an invoice for any amount due.

     8.2  Liability Insurance.

          (a)  Carried by Lessee. Lessee shall obtain and keep in force during
the term of this Lease a Commercial General Liability policy of insurance
protecting Lessee and Lessor (as an additional insured) against claims for
bodily injury, personal injury and property damage based upon, involving or
arising out of the ownership, use, occupancy or maintenance of the Premises and
all areas appurtenant thereto. Such insurance shall be on an occurrence basis
providing single limit coverage in an amount not less than $3,000,000 per
occurrence with an "Additional Insured-Managers or Lessors of Premises"
Endorsement and contain the "Amendment of the Pollution Exclusion" for damage
caused by heat, smoke or fumes from a hostile fire. The policy shall not contain
any intra-insured exclusions as between insured persons or organizations, but
shall include coverage for liability assumed under this Lease as an "insured
contract" for the performance of Lessee's indemnity obligations under this
Lease. The limits of said insurance required by this Lease or as carried by
Lessee shall not, however, limit the liability of Lessee nor relieve Lessee of
any obligation hereunder. All insurance to be carried by Lessee shall be primary
to and not contributory with any similar insurance carried by Lessor, whose
insurance shall be considered excess insurance only.

                                       8.

<PAGE>

          (b)  Carried by Lessor. In the event Lessor is in the Insuring Party,
Lessor shall also maintain liability insurance described in Paragraph 8.2(a),
above, in addition to, and not in lieu of, the insurance required to be
maintained by Lessee. Lessee shall not be named as an additional insured
therein.

     8.3  Property Insurance - Building, Improvements and Rental Value.

          (a)  Building and Improvements. The Insuring Party shall obtain and
keep in force during the term of this Lease a policy or policies in the name of
Lessor, with loss payable to Lessor and to the holders of any mortgages, deeds
of trust or ground leases on the Premises ("Lender(s)"), insuring loss or damage
to the Premises. The amount of such insurance shall be equal to the full
replacement cost of the Premises, as the same shall exist from time to time, or
the amount required by Lenders, but in no event more than the commercially
reasonable and available insurable value thereof if, by reason of the unique
nature or age of the improvements involved, such latter amount is less than full
replacement cost. If Lessor is the Insuring Party, however, Lessee Owned
Alterations and Utility Installations shall be insured by Lessee under Paragraph
8.4 rather than by Lessor. If the coverage is available and commercially
appropriate, such policy or policies shall insure against all risks of direct
physical loss or damage (except the perils of flood and/or earthquake unless
required by a Lender), including coverage for any additional costs resulting
from debris removal and reasonable amounts of coverage for the enforcement of
any ordinance or law regulating the reconstruction or replacement of any
undamaged sections of the Premises required to be demolished or removed by
reason of the enforcement of any building, zoning, safety or land use laws as
the result of a covered cause of loss. Said policy or policies shall also
contain an agreed valuation provision in lieu of any coinsurance clause, waiver
of subrogation, and inflation guard protection causing an increase in the annual
property insurance coverage amount by a factor of not less than the adjusted
U.S. Department of Labor Consumer Price Index for All Urban Consumers for the
City nearest to where the Premises are located. If such insurance coverage has a
deductible clause, the deductible amount shall not exceed $1,000 per occurrence,
and Lessee shall be liable for such deductible amount in the event of an Insured
Loss, as defined in Paragraph 9.1(c).

          (b)  Rental Value. The Insuring Party shall, in addition, obtain and
keep in force during the term of this Lease a policy or policies in the name of
Lessor, with loss payable to Lessor and Lender(s), insuring the loss of the full
rental and other charges payable by Lessee to Lessor under this Lease for one
(1) year (including all real estate taxes, insurance costs, and any scheduled
rental increases). Said insurance shall provide that in the event the Lease is
terminated by reason of an insured loss, the period of indemnity for such
coverage shall be extended beyond the date of the completion of repairs or
replacement of the Premises, to provide for one full year's loss of rental
revenues from the date of any such loss. Said insurance shall contain an agreed
valuation provision in lieu of any coinsurance clause, and the amount of
coverage shall be adjusted annually to reflect the projected rental income,
property taxes, insurance premium costs and other expenses, if any, otherwise
payable by Lessee, for the next twelve (12) month period. Lessee shall be liable
for any deductible amount in the event of such loss.

          (c)  Tenant's Improvements. If the Lessor is the Insuring Party, the
Lessor shall not be required to insure Lessee Owned Alterations and Utility
Installations unless the item in question has become the property of Lessor
under the terms of this Lease. If Lessee is the Insuring Party, the policy
carried by Lessee under this Paragraph 8.3 shall insure Lessee Owned Alterations
and Utility Installations.

     8.4  Lessee's Property Insurance. Subject to the requirements of Paragraph
8.3, Lessee at its cost shall either by separate policy or Lessee's option, by
endorsement to a policy already carried, maintain insurance coverage on all of
Lessee's personal property, Lessee Owned Alterations and Utility Installations
and Tenant Improvements in, on, or about the Premises similar in coverage to
that carried by the Insuring Party under Paragraph 8.3. Such insurance shall be
full replacement cost coverage with a deductible of not to exceed $1,000 per
occurrence. The proceeds from any such insurance shall be used by Lessee for the
replacement of personal property or the restoration of Lessee Owned Alterations
and Utility Installations. Lessee shall be the Insuring Party with respect to
the insurance required by this Paragraph 8.4 and shall provide Lessor with
written evidence that such insurance is in force.

     8.5  Insurance Policies. Insurance required hereunder shall be in companies
duly licensed to transact business in the state where the Premises are located,
and maintaining during the policy term a "General Policyholders Rating" of at
least B+, V, or such other rating as may be required by a Lender having a lien
on the

                                       9.

<PAGE>

Premises, as set forth in the most current issue of "Best's Insurance Guide."
Lessee shall not do or permit to be done anything which shall invalidate the
insurance policies referred to in this Paragraph 8. If Lessee is the Insuring
Party, Lessee shall cause to be delivered to Lessor certified copies of policies
of such insurance or certificates evidencing the existence and amounts of such
insurance with the insureds and loss payable clauses as required by this Lease.
No such policy shall be cancellable or subject to modification except after
thirty (30) days prior written notice to Lessor. Lessee shall at least thirty
(30) days prior to the expiration of such policies, furnish Lessor with evidence
of renewals or "insurance binders" evidencing renewal thereof, or Lessor may
order such insurance and charge the cost thereof to Lessee, which amount shall
be payable by Lessee to Lessor upon demand. If the Insuring Party shall fail to
procure and maintain the insurance required to be carried by the Insuring Party
under this Paragraph 8, the other Party may, but shall not be required to,
procure and maintain the same, but at Lessee's expense.

     8.6  Waiver of Subrogation. The parties hereto release each other and their
respective agents, employees, successors, assignees and subtenants from all
liability for injury to any person or damage to any property that is caused by
or results from a risk which is actually insured against, which is required to
be insured against under this Lease, or which would normally be covered by the
standard form of "all risk-extended coverage" casualty insurance, without regard
to the negligence or willful misconduct of the entity so released. Each party
shall use its best efforts to cause each insurance policy it obtains to provide
that the insurer thereunder waives all right of recovery by way of subrogation
as required herein in connection with any injury or damage covered by the
policy. If such insurance policy cannot be obtained with such waiver of
subrogation, or if such waiver of subrogation is only available at additional
cost and the party for whose benefit the waiver is not obtained does not pay
such additional cost, then the party obtaining such insurance shall immediately
notify the other party of that fact.

     8.7  Indemnity. Except for Lessor's negligence and/or breach of express
warranties or other provisions of this Lease by Lessor or Lessor's agents,
employees, licensees or invitees, and subject to Paragraph 8.6 above, Lessee
shall indemnify, protect, defend and hold harmless, Lessor and its agents,
Lessor's master or ground lessor, partners and Lenders, from and against any and
all claims, loss of rents and/or damages, costs, liens, judgments, penalties,
permits, attorney's and consultant's fees, expenses and/or liabilities arising
out of, involving, or in dealing with use of the Premises by Lessee, negligence
or willful misconduct of Lessee, its agents, contractors, employees or invitees,
and out of any Default or Breach by Lessee in the performance in a timely manner
of any obligation on Lessee's part to be performed under this Lease. The
foregoing shall include, but not be limited to, the defense or pursuit of any
claim or any action or proceeding involved therein, and whether or not (in the
case of claims made against Lessor) litigated and/or reduced to judgment, and
whether well founded or not. In case any action or proceeding be brought against
Lessor by reason of any of the foregoing matters, Lessee upon notice from Lessor
shall defend the same at Lessee's expense by counsel reasonably satisfactory to
Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not
have first paid any such claim in order to be so indemnified.

     8.8  Exemption of Lessor from Liability. Lessor shall not be liable for
injury or damage to the person or goods, wares, merchandise or other property of
Lessee, Lessee's employees, contractors, invitees, customers, or any other
person in or about the Premises, whether such damage or injury is caused by or
results from fire, steam, electricity, gas, water or rain, or from the breakage,
leakage, obstruction or other defects of pipes, fire sprinklers, wires,
appliances, plumbing, air conditioning or lighting fixtures, or from any other
cause, whether the said injury or damage results from conditions arising upon
the Premises or upon other portions of the building of which the Premises are a
part, or from other sources or places, and regardless of whether the cause of
such damage or injury or the means of repairing the same is accessible or not.
Lessor shall not be liable for any damages arising from any act or neglect of
any other tenant of Lessor. Notwithstanding Lessor's negligence or breach of
this Lease, Lessor shall under no circumstances be liable for injury to Lessee's
business or for any loss of income or profit therefrom.

9.   Damage or Destruction.

     9.1  Definitions.

          (a)  "Premises Partial Damage" shall mean damage or destruction to the
improvements on the Premises, other than Lessee Owned Alterations and Utility
Installations, the repair cost of which damage or destruction to the
improvements on the Premises, other than Lessee Owned Alterations and Utility

                                      10.

<PAGE>

Installations, the repair cost of which damage or destruction is less than 50%
of the then Replacement Cost of the Premises immediately prior to such damage or
destruction, excluding from such calculation the value of the land and Lessee
Owned Alterations and Utility Installations.

          (b)  "Premises Total Destruction" shall mean damage or destruction to
the Premises, other than Lessee Owned Alterations and Utility Installations the
repair cost of which damage or destruction is 50% or more of the then
Replacement Cost of the Premises immediately prior to such damage or
destruction, excluding from such calculation the value of the land and Lessee
Owned Alterations and Utility Installations.

          (c)  "Insured Loss" shall mean damage or destruction to improvements
on the Premises, other than Lessee Owned Alterations and Utility Installations,
which was caused by an event required to be covered by the insurance described
in Paragraph 8.3(a), irrespective of any deductible amounts or coverage limits
involved.

          (d)  "Replacement Cost"  shall mean the cost to repair or rebuild the
improvements owned by Lessor at the time of the occurrence to their condition
existing immediately prior thereto, including demolition, debris removal and
upgrading required by the operation of applicable building codes, ordinances or
laws, and without deduction for depreciation.

          (e)  "Hazardous Substance Condition" shall mean the occurrence or
discovery of a condition involving the presence of, or a contamination by, a
Hazardous Substance as defined in Paragraph 6.2(a), in, on , or under the
Premises.

     9.2  Partial Damage - Insured Loss. If a Premises Partial Damage that is an
Insured Loss occurs, then Lessor shall, at Lessor's expense, repair such damage
(but not Lessee's Trade Fixtures or Lessee Owned Alterations and Utility
Installations) as soon as reasonably possible and this Lease shall continue in
full force and effect; provided, however, that Lessee shall, at Lessor's
election, make the repair of any damage or destruction the total cost to repair
of which is $10,000 or less, and, in such event, Lessor shall make the insurance
proceeds available to Lessee on a reasonable basis of that purpose.
Notwithstanding the foregoing, if the required insurance was not in force or the
insurance proceeds are not sufficient to effect such repair, the Insuring Party
shall promptly contribute the shortage in proceeds (except as to the deductible
which is Lessee's responsibility) as and when required to complete said repairs.
In the event, however, the shortage in proceeds was due to the fact that, by
reason of the unique nature of the improvements, full replacement cost insurance
coverage was not commercially reasonable and available, Lessor shall have no
obligation to pay for the shortage in insurance proceeds or to fully restore the
unique aspects of the Premises unless Lessee provides Lessor with the funds to
cover same, or adequate insurance thereof, within ten (10) days following
receipt of written notice of such shortage and request therefor. If Lessor
receives said funds or adequate assurance thereof within said ten (10) day
period, the party responsible for making the repairs shall complete them as soon
as reasonably possible and this Lease shall remain in full force and effect. If
Lessor does not receive such funds or assurance within said period, Lessor may
nevertheless elect by written notice to Lessee within ten (10) days thereafter
to make such restoration and repair as is commercially reasonable with Lessor
paying any shortage in proceeds, in which case this Lease shall remain in full
force and effect. If in such case Lessor does not so elect, then this Lease
shall terminate sixty (60) days following the occurrence of the damage or
destruction. Unless otherwise agreed, Lessee shall in no event have any right to
reimbursement from Lessor for any funds contributed by Lessee to repair any such
damage or destruction. Premises Partial Damage due to flood or earthquake shall
be subject to Paragraph 9.3 rather than Paragraph 9.2 notwithstanding that there
may be some insurance coverage, but the net proceeds of any such insurance shall
be made available for the repairs if made by either Party.

     9.3  Partial Damage - Uninsured Loss.  If a Premises Partial Damage
that is not an Insured Loss occurs, unless caused by a negligent or willful act
of Lessee (in which event Lessee shall make the repairs at Lessee's expense and
this Lease shall continue in full force and effect, but subject to Lessor's
rights under Paragraph 13), Lessor may at Lessor's option, either:  (i) repair
such damage as soon as reasonably possible at Lessor's expense, in which event
this Lease shall continue in full force and effect, or (ii) give written notice
to Lessee within thirty (30) days after receipt by Lessor of knowledge of the
occurrence of such damage of Lessor's desire to terminate this Lease as of the
date sixty (60) days following the giving of such notice.  In the event Lessor
elects to give such notice of Lessor's intention to terminate this Lease, Lessee
shall have the right within ten (10) days after the receipt of such notice to
give written notice to Lessor of Lessee's commitment to pay for the repair of
such

                                      11.

<PAGE>

damage totally at Lessee's expense and without reimbursement from Lessor. Lessee
shall provide Lessor with the required funds or satisfactory assurance thereof
within thirty (30) days following Lessee's said commitment. In such event this
Lease shall continue in full force and effect, and Lessor shall proceed to make
such repairs as soon as reasonably possible and the required funds are
available. If Lessee does not give such notice and provide the funds or
assurance thereof within the time specified above, this Lease shall terminate as
of the date specified in Lessor's notice of termination.

     9.4  Total Destruction. Notwithstanding any other provision hereof, if a
Premises Total Destruction occurs (including any destruction required by any
authorized public authority), this Lease shall terminate sixty (60) days
following the date of such Premises Total Destruction, whether or not the damage
or destruction is an Insured Loss or was caused by a negligent or willful act of
Lessee. In the event, however, that the damage or destruction was caused by
Lessee, Lessor shall have the right to recover Lessor's damages from Lessee
except as released and waived in Paragraph 8.6.

     9.5  Damage Near End of Term. If at any time during the last six (6) months
of the term of this Lease there is damage for which the cost to repair exceeds
one (1) month's Base Rent, whether or not an Insured Loss, Lessor may, at
Lessor's option, terminate this Lease effective sixty (60) days following the
date of occurrence of such damage by giving written notice to Lessee of Lessor's
election to do so within thirty (30) days after the date of occurrence of such
damage. Provided, however, if Lessee at that time has an exercisable option to
extend this Lease or to purchase the Premises, then Lessee may preserve this
Lease by, within twenty (20) days following the occurrence of the damage, or
before the expiration of the time provided in such option for its exercise,
whichever is earlier ("Exercise Period"), (i) exercising such option and (ii)
providing Lessor with any shortage in insurance proceeds (or adequate assurance
thereof) needed to make the repairs. If Lessee duly exercises such option during
said Exercise Period and provides Lessor with funds (or adequate assurance
thereof) to cover any shortage in insurance proceeds. Lessor shall, at Lessor's
expense repair such damage as soon as reasonably possible and this Lease shall
continue in full force and effect. If Lessee fails to exercise such option and
provide such funds or assurance during said Exercise Period, then Lessor may at
Lessor's option terminate this Lease as of the expiration of said sixty (60) day
period following the occurrence of such damage by giving written notice to
Lessee of Lessor's election to do so within ten (10) days after the expiration
of the Exercise Period, notwithstanding any term or provision in the grant of
option to the contrary.

     9.6  Abatement of Rent; Lessee's Remedies.

          (a)  In the event of damage described in Paragraph 9.2 (Partial Damage
- Insured), whether or not Lessor or Lessee repairs or restores the Premises,
the Base Rent, Real Property Taxes, insurance premiums, and other charges, if
any, payable by Lessee hereunder of the period during which such damage, its
repair of the restoration continues (not to exceed the period for which rental
value insurance is required under Paragraph 8.3(b)), shall be abated in
proportion to the degree to which Lessee's use of the premises is impaired.
Except for abatement of Base Rent, Real Property Taxes, insurance premiums, and
other charges, if any, as aforesaid, all other obligations of Lessee hereunder
shall be performed by Lessee, and Lessee shall have no claim against Lessor for
any damage suffered by reason of any such repair or restoration.

          (b)  If Lessor shall be obligated to repair or restore the Premises
under the provisions of this Paragraph 9 and shall not commence, in a
substantial and meaningful way, the repair of restoration of the Premises within
ninety (90) days after such obligation shall accrue, Lessee may, at any time
prior to the commencement of such repair or restoration, give written notice to
Lessor and to any Lenders of which Lessee has actual notice of Lessee's election
to terminate this Lease on a date not less than sixty (60) days following the
giving of such notice.  If Lessee gives such notice to Lessor and such Lenders
and such repair or restoration is not commenced within thirty (30) days after
receipt of such notice, this Lease shall terminate as of the date specified in
said notice.  If Lessor or a Lender commences the repair or restoration of the
Premises within thirty (30) days after receipt of such notice, this Lease shall
continue in full force and effect.  "Commence" as used in this Paragraph shall
mean either the unconditional authorization of the preparation of the required
plans, or the beginning of the actual work on the Premises, whichever first
occurs.

     9.7  Hazardous Substance Conditions. If a Hazardous Substance Condition
occurs, unless Lessee is legally responsible therefor (in which case Lessee
shall make the investigation and remediation thereof

                                      12.

<PAGE>

required by Applicable Law and this Lease shall continue in full force and
effect, but subject to Lessor's rights under Paragraph 13), Lessor may at
Lessor's option either (i) investigate and remediate such Hazardous Substance
Condition, if required, as soon as reasonably possible at Lessor's expense, in
which event this Lease shall continue in full force and effect, or (ii) if the
estimated cost to investigate and remediate such condition exceeds twelve (12)
times the then monthly Base Rent or $100,000, whichever is greater, give written
notice to Lessee within thirty (30) days after receipt by Lessor of knowledge of
the occurrence of such Hazardous Substance Condition of Lessor's desire to
terminate this Lease as of the date sixty (60) days following the giving of such
notice. In the event Lessor elects to give such notice of Lessor's intention to
terminate this Lease, Lessee shall have the right within ten (10) days after the
receipt of such notice to give written notice to Lessor of Lessee's commitment
to pay for the investigation and remediation of such Hazardous Substance
Condition totally at Lessee's expense and without reimbursement from Lessor
except to the extent of an amount equal to twelve (12) times the then monthly
Base Rent or $100,000, whichever is greater. Lessee shall provide Lessor with
the funds required of Lessee or satisfactory assurance thereof within thirty
(30) days following Lessee's said commitment. In such even this Lease shall
continue in full force and effect, and Lessor shall proceed to make such
investigation and remediation as soon as reasonably possible and the required
funds are available. If Lessee does not give such notice and provide the
required funds or assurance thereof within the times specified above, this Lease
shall terminate as of the date specified in Lessor's notice of termination. If a
Hazardous Substance Condition occurs for which Lessee is not legally
responsible, there shall be abatement of Lessee's obligations under this Lease
to the same extent as provided in Paragraph 9.6(a) for a period of not to exceed
twelve (12) months.

     9.8  Termination - Advance Payments. Upon termination of this Lease
pursuant to this Paragraph 9, an equitable adjustment shall be made concerning
advance Base Rent and any other advance payments made by Lessee to Lessor.
Lessor shall, in addition, return to Lessee so much of Lessee's Surety Deposit
as has not been, or is not then required to be, used by Lessor under the terms
of this Lease.

     9.9  Waive Statutes. Lessor and Lessee agree that the terms of this Lease
shall govern the effect of any damage to or destruction of the Premises with
respect to the termination of this Lease and hereby waive the provisions of any
present or future statute to the extent inconsistent herewith.

10.  Real Property Taxes.

     10.1 (a)  Payment of Taxes.  Lessee shall pay the Real Property Taxes, as
defined in Paragraph 10.2, applicable to the Premises during the term of this
Lease.  Subject to Paragraph 10.19b), all such payment shall be made at least
ten (10) days prior to the delinquency date of the applicable installment.  Upon
Lessor's request, Lessee shall promptly furnish Lessor with satisfactory
evidence that such taxes have been paid.  If any such taxes to be paid by Lessee
shall cover any period of time prior to or after the expiration or earlier
termination of the term hereof, Lessee's share of such taxes shall be equitably
prorated to cover only the period of time within the tax fiscal year this Lease
is in effect, and Lessor shall reimburse Lessee for any overpayment after such
proration.  If Lessee shall fail to pay any Real Property Taxes required by this
Lease to be paid by Lessee, Lessor shall have the right to pay the same, and
Lessees shall reimburse Lessor therefor upon demand.

     10.2 Definition of "Real Property Taxes."  As used herein, the term "Real
Property Taxes" shall include any form of real estate tax or assessment,
general, special, ordinary or extraordinary, and any license fee, commercial
rental tax, improvement bond or bonds, levy or tax (other than inheritance,
personal income, gift transfer or estate taxes) imposed upon the Premises by any
authority having the direct or indirect power to tax, including any city, state
or federal government, or any school, agricultural, sanitary, fire, street,
drainage or other improvement district thereof, levied against any legal or
equitable interest of Lessor in the Premises or in the real property of which
the Premises are a part.  Lessor's right to rent or other income therefrom,
and/or Lessor's business of leasing the Premises.  The term "Real Property
Taxes" shall also include any tax, levy, assessment or charge, or any increase
therein,  imposed by reason of events occurring, or changes in applicable law
taking effect, during the term of this Lease, including but not limited to a
change in the ownership of the Premises or in the improvements thereon, the
execution of this Lease, or any modification, amendment or transfer thereof, and
whether or not contemplated by the Parties.

     10.3 Joint Assessment.  If the Premises are not separately assessed,
Lessee's liability shall be an equitable proportion of the Real Property Taxes
of all of the land and improvements included within the tax parcel

                                      13.

<PAGE>

assessed, such proportion to be determined by Lessor from the respective
valuations assigned in the assessor's work sheets or such other information as
may be reasonably available. Lessor's reasonable determination thereof, in good
faith, shall be conclusive.

     10.4 Personal Property Taxes.  Lessee shall pay prior to delinquency all
taxes assessed against and levied upon Lessee Owned Alterations, Utility
Installations, Trade Fixtures, furnishings, equipment and all personal property
of Lessee contained in the Premises or elsewhere.  When possible, Lessee shall
cause its Trade Fixtures, furnishings, equipment and all other personal property
to be assessed and billed separately from the real property of Lessor.  If any
of Lessee's said personal property shall be assessed with Lessor's real
property, Lessee shall pay Lessor the taxes attributable to Lessee within ten
(10) days ___________ to delinquency thereof as stated in a written statement
setting for the taxes applicable to Lessee's property or, at Lessor's option, as
provided in Paragraph 10.1(b).

11.  Utilities.  Lessee shall pay for all water, gas, heat, light, power,
telephone, trash disposal and other utilities and services supplied to the
Premises, together with any taxes thereon.

12.  Assignment and Subletting.

     12.1 Lessor's Consent Required.

          (a)  Lessee shall not voluntarily or by operation of law assign,
transfer, mortgage or otherwise transfer or encumber (collectively,
"assignment") or sublet all or any part of Lessee's interest in this Lease or in
the Premises without Lessor's prior consent given under and subject to the terms
of Paragraph 36.

          (b)  Lessee may, without Lessor's prior written consent and without
any participation by Lessor in assignment and subletting proceeds, sublet the
Premises or assign the Lease to: (i) a subsidiary, affiliate, division or
corporation controlling, controlled by or under common control with Lessee; (ii)
a successor corporation related to Lessee by merger, consolidation,
nonbankruptcy reorganization, or government action; (iii) a purchaser of
substantially all of Lessee's assets located in the Premises. Any such sublease
shall expressly state therein that such sublease shall be subject to all of the
terms and provisions of this Lease. The assignee in any such assignment shall
expressly assume in writing for the benefit of Lessor all of the obligations of
the Lessee under this Lease. Executed counterparts of the foregoing sublease or
assignment documents shall be delivered to Lessor upon request. For the purposes
of this Lease, sale or transfer of Lessee's capital stock through any public
exchange, shall not be deemed an assignment, subletting, or any other transfer
of the Lease or the Premises.

          (c)  Lessee's remedy for any breach of this Paragraph 12.1 by Lessor
shall be limited to compensatory damages and injunctive relief.

     12.2 Terms and Conditions Applicable to Assignment and Subletting.

          (a)  Regardless of Lessor's consent, any assignment or subletting
shall not: (i) be effective without the express written assumption by such
assignee or sublessee of the obligations of Lessee under this Lease, (ii)
release Lessee of any obligations hereunder, or (iii) after the primary
liability of Lessee for the payment of Base Rent and other sums due Lessor
hereunder or for the performance of any other obligations to be performed by
Lessee under this Lease.

          (b)  Lessor may accept any rent of performance of Lessee's obligations
from any person other than Lessee pending approval or disapproval of an
assignment.  Neither a delay in the approval or disapproval of such assignment
nor the acceptance of any rent or performance shall constitute a waiver or
estoppel of Lessor's right to exercise its remedies for the Default or Breach by
Lessee of any of the terms, covenants or conditions of this Lease.

          (c)  The consent of Lessor to any assignment of subletting shall not
constitute a consent to any subsequent assignment or subletting by Lessee or to
any subsequent or successive assignment or subletting by the sublessee.
However, Lessor may consent to subsequent sublettings and assignments of the
sublease or any

                                      14.

<PAGE>

amendments or modifications thereto if Lessor notifies Lessee or anyone else
liable on the Lease or sublease and obtains their consent, and such action shall
not relieve such persons from liability under this Lease or sublease.

          (d)  In the event of any Default or Breach of Lessee's obligations
under this Lease, Lessor may proceed directly against Lessee, any Guarantors or
any one else responsible for the performance of the Lessee's obligations under
this Lease, including the sublessee, without first exhausting Lessor's remedies
against any other person or entity responsible therefor to Lessor, or any
security held by Lessor or Lessee.

          (e)  Each request for consent to an assignment or subletting shall be
in writing, accompanied by information relevant to Lessor's determination as to
the financial and operational responsibility and appropriateness of the proposes
assignee or sublessee, including but not limited to the intended use and/or
required modification of the Premises, if any, together with a non-refundable
deposit of $500 as reasonable consideration for Lessor's considering and
processing the request for consent.  Lessee agrees to provide Lessor with such
other or additional information and/or documentation as may be reasonably
requested by Lessor.

          (f)  Any assignee of, or sublessee under, this Lease shall, by reason
of accepting such assignment or entering into such sublease, be deemed, for the
benefit of Lessor, to have assumed and agreed to conform and comply with each
and every term, covenant, condition and obligation herein to be observed or
performed by Lessee during the term of said assignment or sublease, other than
such obligations as are contrary to or inconsistent with provisions of an
assignment or sublease to which Lessor has specifically consented in writing.

     12.3 Additional Terms and Conditions Applicable to Subletting.  The
following terms and conditions shall apply to any subletting by Lessee of all or
any part of the Premises and shall be deemed included in all subleases under
this Lease whether or not expressly incorporated therein:

          (a)  Lessee hereby assigns and transfers to Lessor all of Lessee's
interest in all rentals and income arising from any sublease of all or a portion
of the Premises heretofore or hereafter made by Lessee, and Lessor may collect
such rent and income and apply same toward Lessee's obligations under this
Lease; provided, however, that until a Breach (as defined in Paragraph 13.1)
shall occur in the performance of Lessee's obligations under this Lease.  Lessee
may, except as otherwise provided in this Lease, receive, collect and enjoy the
rents accruing under such sublease.  Lessor shall not, by reason of this or any
other assignment of such sublease to Lessor, nor by reason of the collection of
the rents from a sublessee, be deemed liable to the sublessee for any failure of
Lessee to perform and comply with any of Lessee's obligations to such sublessee
under such sublease.  Lessee hereby irrevocably authorizes and directs any such
sublessee, upon receipt of a written notice from Lessor stating that a Breach
exists in the performance of Lessee's obligations under this Lease, to pay to
Lessor the rents and other charges due and to become due under the sublease.
Sublessee shall rely upon any such statement and request from Lessor and shall
pay such rents and other charges to Lessor without any obligation or right to
inquire as to whether such Breach exists and notwithstanding any notice from or
claim from Lessee to the contrary.  Lessee shall have no right or claim against
said sublessee, or, until the Breach has been cured, against Lessor, for any
such rents and other charges so paid by said sublessee to Lessor unless received
by Lessor.

          (b)  In the event of a Breach by Lessee in the performance of its
obligations under this Lease, Lessor, at its option and without any obligation
to do so, may require any sublease to attorn to Lessor, in which event Lessor
shall undertake the obligations of the subleasor under such sublease from the
time of the exercise of said option to the expiration of such sublease;
provided, however, Lessor shall not be liable for any prepaid rents or security
deposit ;aid by such subleases to such sublessor  for any other prior Defaults
or Breaches of such subleasor under such sublease.

          (c)  Any matter or thing requiring the consent of the sublessor under
a sublease shall also require the consent of Lessor herein.

          (d)  No sublessee shall further assign or sublet all or any part of
the Premises without Lessor's prior written consent.

          (e)  Lessor shall deliver a copy of any notice of Default or Breach by
Lessee to the sublessee, who shall have the right to cure the Default of Lessee
within the grace period, if any, specified in such notice.  The

                                      15.

<PAGE>

sublessee shall have a right to reimbursement and offset from and against Lessee
for any such Defaults cured by the sublessee.

13.  Default; Breach; Remedies.

     13.1 Default; Breach.  A "Default" is defined as a failure by the Lessee
to observe, comply with or perform any of the terms, covenants, conditions or
rules applicable to Lessee under this Lease.  A "Breach is defined as the
occurrence of any one or more of the following Defaults, and, where a grace
period for cure after notice is specified herein, the failure by Lessee to cure
such Default prior to the expiration of the applicable grace period, shall
entitle Lessor to pursue the remedies set forth in Paragraphs 13.2 and/or 13.1:

          (a)  The vacating of the Premises without payment of Rent or
performance of Lessee's other obligations hereunder.

          (b)  Except as expressly otherwise provided in this Lease, the failure
by Lessee to make any payment of Base Rent or any other monetary payment
required to be made by Lessee hereunder, whether to Lessor to a third party, as
and when due, the failure by Lessee to provide Lessor with reasonable evidence
of insurance or surety bond required under this Lease, where such failure
continues for a period of ten (10) days following written notice thereof by or
on behalf of Lessor to Lessee.

          (c)  A Default by Lessee as to the terms, covenants, conditions or
provisions of this Lease, or of the rules adopted under Paragraph 40 hereof,
that are to be observed, complied with or performed by Lessee, other than those
described in subparagraphs (a), (b) or (c), above, where such Default continues
for a period of thirty (30) days after written notice thereof by or on behalf of
Lessor to Lessee; provided, however, that if the nature of Lessee's  Default is
such that more than thirty (30) days are reasonably required for its cure, then
it shall not be deemed to be a Breach of this Lease by Lessee if Lessee
commences such cure within said thirty (30) day period and thereafter diligently
prosecutes such cure to completion.

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

          (e)  The discovery by Lessor that any financial statement given to
Lessor by Lessee or any Guarantor of Lessee's obligations hereunder was
materially false. (intentionally??)

     13.2 Remedies.  In the event of a Breach of this Lease by Lessee, Lessor
may at its option (but without obligation to do so), perform such duty or
obligation on Lessee's behalf, including but not limited to the obtaining of
reasonably required bonds, insurance policies, or governmental licenses, permits
or approvals.  The costs and expenses of any such performance by Lessor shall be
due and payable by Lessee to Lessor upon invoice therefor.  If any check given
to Lessor by Lessee shall not be honored by the bank upon which it is drawn,
Lessor, at its option, may require all future payments to be made under this
Lease by Lessee to be made only by cashier's check.  In the event of a Breach of
this Lease by Lessee, as defined in Paragraph 13.1, with or without further
notice or demand, and without limiting Lessor in the exercise of any right or
remedy which Lessor may have by reason of such Breach, Lessor may:

          (a)  Terminate Lessee's right to possession of the Premises by any
lawful means, in which case this Lease and the term hereof shall terminate and
Lessee shall immediately surrender possession of the Premises to Lessor. In such
event Lessor shall be entitled to recover from Lessee: (i) the worth at the time
of the award of the unpaid rent which had been earned at the time of
termination; (ii) the worth at the time of award of the amount by which the
unpaid rent which would have been earned after termination until the time of
award exceeds

                                      16.

<PAGE>

the amount of such rental loss that the Lessee proves could have been reasonably
avoided; (iii) the worth at the time of award of the amount by which the unpaid
rent for the balance of the term after the time of award exceeds the amount of
such rental loss that the Lessee proves could be reasonably avoided; and (iv)
any other amount necessary to compensate Lessor for all the detriment
proximately caused by the Lessee's failure to perform it obligations under this
Lease or which in the ordinary course of things would be likely to result
therefrom, including but not limited to the cost of recovering possession of the
Premises, expenses of reletting including necessary renovation and alteration of
the Premises, reasonable attorneys' fees, and that portion of the leasing
commission paid by Lessor applicable to the unexpired term of this Lease. The
worth at the time of award of the amount referred to in provision (iii) of the
prior sentence shall be computed by discounting such amount at the discount rate
of the Federal Reserve Bank of San Francisco at the item of award plus one
percent (1%) Efforts by Lessor to mitigate damages caused by Lessee's Default or
Breach of this Lease shall not waive Lessor's right to recover damages under
this Paragraph. If termination of this Lease is obtained through the provisional
remedy of unlawful detainer, Lessor shall have the right to recover in such
proceeding the unpaid rent and damages as are recoverable therein, or Lessor may
reserve therein the right to recover all or any part thereof in a separate suit
for such rent and/or damages. If a notice and grace period required under
subparagraphs 13.1(b), (c) or (d) was not previously given, a notice to pay rent
or quit, or to perform or quit, as the case may be, given to Lessee under any
statute authorizing the forfeiture of leases for unlawful detainer shall also
constitute the applicable notice for grace period purposes required by
subparagraphs 13.1(b), (c) or (d). In such case, the applicable grace period
under subparagraphs 13.1(b), (c) or (d) and under the unlawful detainer statute
shall run concurrently after the one such statutory notice, and the failure of
Lessee to cure the Default within the greater of the two such grace periods
shall constitute both an unlawful detainer and a Breach of this Lease entitle
Lessor to the remedies provided for in this Lease and/or by said statute.

          (b)  Continue the Lease and Lessee's right to possession in effect (in
California under California Civil Code Section 1951.4) after Lessee's Breach and
abandonment and recover the rent as it becomes due, provided Lessee has the
right to sublet or assign, subject only to reasonable limitations.  See
Paragraphs 12 and 36 for the limitations on assignment and subletting which
limitations Lessee and Lessor agree are reasonable.  Acts of maintenance or
preservation, efforts to relet the Premises, or the appointment of a receiver to
protect the Lessor's interest under the Lease, shall not constitute a
termination of the Lessee's right to possession.

          (c)  Pursue any other remedy now or hereafter available to Lessor
under the laws of judicial decisions of the state wherein the Premises are
located.

          (d)  The expiration or termination of this Lease and/or the
termination of Lessee's right to possession shall not relieve Lessee from
liability under any indemnity provisions of this Lease as to matters occurring
or accruing during the term hereof prior to such termination or by reason of
Lessee's occupancy of the Premises.

     13.3 [deleted]

     13.4 Late Charges.  Lessee hereby acknowledges that late payment by Lessee
to Lessor of rent and other sums due hereunder will cause Lessor to incur costs
not contemplated by this Lease, the exact amount of which will be extremely
difficult to ascertain.  Such costs include, but are not limited to processing
and accounting charges, and late charges which may be imposed upon Lessor by the
terms of any ground lease, mortgage or trust deed covering the Premises.
Accordingly, if any installment of rent or any other sum due from Lessee shall
not be received by Lessor or Lessor's designee within 10 (ten) day after receipt
by Lessee of written notice from Lessor that such amount shall be due, then
Lessee shall pay to Lessor a late charge equal to six percent (6%) of such
overdue amount.  The parties hereby agree that such late charge represents a
fair and reasonable estimate of the costs Lessor will incur by reason of late
payment by Lessee.  Acceptance of such late charge by Lessor shall in no event
constitute a waiver of Lessee's Default or Breach with respect to such overdue
amount, nor prevent Lessor from exercising any of the other rights and remedies
granted hereunder.  In the even that a late charge is payable hereunder, whether
or not collected, for three (3) consecutive installments of Base Rent, then
notwithstanding Paragraph 4.1 or any of the provision of this Lease to the
contrary, Base Rent shall, at Lessor's option, become due and payable quarterly
in advance.

     13.5 Breach by Lessor.  Lessor shall not be deemed in breach of this Lease
unless Lessor fails within a reasonable time to perform an obligation required
to be performed by Lessor.  For purposes of this Paragraph 13.5, a reasonable
time shall in no event be less than thirty (30) days after receipt by Lessor,
and by the holders of any ground lease, mortgage or deed of trust covering the
Premises whose name and address shall have

                                      17.

<PAGE>

been furnished Lessee in writing for such purpose, of written notice specifying
wherein such obligation of Lessor has not been performed; provided, however,
that if the nature of Lessor's obligation is such that more than thirty (30)
days after such notice are reasonably required for its performance, then Lessor
shall not be in breach of this Lease if performance is commenced within such
thirty (30) day period and thereafter diligently pursued to completion.

14.  Condemnation.  If the Premises or any portion thereof are taken under the
power of eminent domain or sold under the threat of the exercise of said power
(all of which are herein called "condemnation"), this Lease shall terminate as
to the part so taken as of the date the condemning authority takes title or
possession, whichever first occurs.  If the portion of the Premises taken by
condemnation materially impairs Lessee's use and occupancy of the Premises,
Lessee may, at Lessee's option, to be exercised in writing within ten (10) days
after Lessor shall have given Lessee written notice of such taking (or in the
absence of such notice, within ten (10) days after the condemning authority
shall have taken possession) terminate this Lease as of the date the condemning
authority takes such possession.  If Lessee does not terminate this Lease in
accordance with the foregoing, this Lease shall remain in full force and effect
as to the portion of the Premises remaining, except that the Base Rent shall be
reduced in the same proportion as the rentable floor area of the Premises taken
bears to the total rentable floor area of the building located on the Premises
and Rent shall be further equitably abated during any restoration of the
Premises.  No reduction of Base Rent shall occur if the only portion of the
Premises taken is land on which there is no building.  Any award for the taking
of all or any part of the Premises under the power of eminent domain or any
payment made under threat of the exercise of such power shall be the property of
Lessor, whether such award shall be made as compensation for diminution in value
of the leasehold or for the taking of the fee, or as severance damages;
provided, however, that Lessee shall be entitled to any compensation separately
awarded to Lessee for Lessee's relocation expenses and/or loss of Lessee's Trade
Fixtures any tenant improvements constructed by Lessee solely at Lessee's
expense and Lessee's personal property.  In the event that this Lease is not
terminated by reason of such condemnation, Lessor shall to the extent of its net
severance damages received, over and above the legal and other expenses incurred
by Lessor in the condemnation matter, repair any damage to the Premises caused
by such condemnation, except to the extent that Lessee has been reimbursed
therefor by the condemning authority.  Lessee shall be responsible for the
payment of any amount in excess of such net severance damages required to
complete such repair to the extent that Lessee has been reimbursed therefor by
the condemning authority.

15.  Broker's Fee.

     15.1 The Brokers named in Paragraph 1.10 are the procuring causes of this
Lease.

     15.2 Upon execution of this Lease by both Parties, Lessor shall pay to
said Brokers jointly, or in such separate shares as they may mutually designate
in writing, a fee as set forth in a separate written agreement between Lessor
and said Brokers.

     15.3 Lessee and Lessor each represent and warrant to the other that it has
had no dealings with any person, firm, broker or finder (other than the Brokers,
if any named in Paragraph 1.10) in connection with the negotiation of this Lease
and/or the consummation of the transaction contemplated hereby, and that no
broker or other person, firm or entity other than said named brokers is entitled
to any commission or finder's fee in connection with said transaction.  Lessee
and Lessor do each hereby agree to indemnify, protect, defend and hold the other
harmless from and against liability for compensation or charges which may be
claimed by any such unnamed broker, finder or other similar party to reason of
any dealings or actions of the indemnifying Party, including any costs,
expenses, attorneys' fees reasonably incurred with respect thereto.

     15.4 Lessor and Lessee hereby consent to and approve all agency
relationships, including any dual agencies, indicated in Paragraph 1.10.

16.  Tenancy Statement

     16.1 Each Party (as "Responding Party") shall within ten (10) business
days after written notice from the other Party (the "Requesting Party") execute,
certifying:  (1) that none of the terms or provisions of this Lease have been
changed (or if they have been changed, stating how they have been changed); (2)
that this Lease has not been cancelled or terminated; (3) the last date of
payment of Base Rent and other charges and the time period

                                      18.

<PAGE>

covered by such payment; and (4) that, to the party's actual current knowledge,
the other party is not in default under this Lease (of if the other party is
claimed to be in default, stating why).

     16.2 If Lessor desires to finance, refinance, or sell the Premises, any
part thereof, or the building of which the Premises are a part, Lessee shall
deliver to any potential lender or purchaser designated by Lessor such available
financial statements of Lessee may be reasonably required by such lender or
purchaser, including but not limited to Lessee's financial statements for the
past three (3) years if available.  All such financial statements shall be
received by Lessor and such lender or purchaser in confidence and shall be used
only for the purposes herein set forth.

17.  Lessor's Liability.  The term "Lessor" as used herein shall mean the owner
or owners at the time in question of the fee title to the Premises, or, if this
is a sublease, of the Lessee's interest in the prior lease.  In the event of a
transfer of Lessor's title or interest in the Premises or in this Lease, Lessor
shall deliver to the transferee or assignee (in cash or by credit) any unused
Security Deposit held by Lessor at the time of such transfer or assignment.
Except as provided in Paragraph 15, upon such transfer or assignment and
delivery of the Security Deposit, as aforesaid, the prior Lessor shall be
relieved of all liability with respect to the obligations and/or covenants under
this Lease thereafter to be performed by the Lessor.  Subject to the foregoing,
the obligations and/or covenants in this Lease to be performed by the Lessor
shall be binding only upon the Lessor as hereinabove defined.

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

19.  Interest on Past-Due Obligations.  Any monetary payment due Lessor
hereunder, other than late charges, not received by Lessor within thirty (30)
days following the date on which it was due, shall bear interest from the
thirty-first (31st) day after it was due to at the rate of 8% per annum, but not
exceeding the maximum rate allowed by law, in addition to the late charge
provided for in Paragraph 13.4.

20.  Time of Essence.  Time is of the essence with respect to the performance of
all obligations to be performed or observed by the Parties under this Lease.

21.  Rent Defined.  All monetary obligations of Lessee to Lessor under the terms
of this Lease are deemed to be rent.

22.  No Prior or Other Agreements; Broker Disclaimer.  This Lease, the Addenda,
work letter, and any other exhibits contain all agreements between the Parties
with respect to any matter mentioned herein and no other prior or
contemporaneous agreement or understanding shall be effective.

23.  Notices.

     23.1 All notices required or permitted by this Lease shall be in writing
and may be delivered in person  (by hand or by messenger or courier service) or
may be sent by regular, certified or registered mail or U.S. Postal Service
Express Mail, with postage prepaid, or by facsimile transmission, and shall be
deemed sufficiently given if served in a manner specified in this Paragraph 23.
The addresses noted adjacent to a Party's signature on this Lease shall be that
Party's address for delivery or mailing of notice purposes.  Either Party may by
written notice to the other specify a different address for notice purposes,
except that upon Lessee's taking possession of the Premises, the Premises shall
constitute Lessee's address for the purpose of mailing or delivering notices to
Lessee.  A copy of all notices required or permitted to be given to Lessor
hereunder shall be concurrently transmitted to such party or parties at such
addresses as Lessor may from time to time hereafter designate by written notice
to Lessee.

     23.2 Any notice sent by registered or certified mail, return receipt
requested, shall be deemed given on the date of delivery shown on the receipt
card, or if no delivery date is shown, the postmark thereon.  If sent by regular
mail the notice shall be deemed given forty-eight (48) hours after the same is
addressed as required herein and mailed with postage prepaid.  Notices delivered
by United States Express Mail or overnight courier that guarantees next day
delivery shall be deemed given twenty-four (24) hours after delivery of the same
to the United States Postal Service or courier.  If any notice is transmitted by
facsimile transmission or similar means, the same shall be deemed served or
delivered upon telephone confirmation of receipt of the transmission thereof,
provided a

                                      19.

<PAGE>

copy is also delivered via delivery or mail. If notice is received on a Sunday
or legal holiday, it shall be deemed received on the next business day.

24.  Waivers.  No waiver by Lessor or Lessee of the Default or Breach of any
term, covenant or condition hereof by Lessee or Lessor shall be deemed a waiver
of any other term, covenant or condition hereof, or of any subsequent Default or
Breach by Lessee of the same or of any other term, covenant or condition hereof.
Lessor's consent to, or approval of, any act shall not be deemed to render
unnecessary the obtaining of Lessor's consent to, or approval of, any subsequent
or similar act by Lessee, or be construed as the basis of an estoppel to enforce
the provision or provisions of this Lease requiring such consent.  Regardless of
Lessor's knowledge of a Default or Breach at the time of accepting rent, the
acceptance of rent by Lessor shall not be a waiver of any preceding Default or
Breach by Lessee of any provision hereof, other than the failure of Lessee to
pay the particular rent so accepted.  Any payment given Lessor by Lessee may be
accepted by Lessor on account of moneys or damages due Lessor, notwithstanding
any qualifying statements or conditions made by Lessee in connection therewith,
which such statements and/or conditions shall be of no force or effect
whatsoever unless specifically agreed to in writing by Lessor at or before the
time of deposit of such payment.

25.  Recording.  Either Lessor or Lessee shall, upon request of the other,
execute, acknowledge and deliver to the other a short form memorandum of this
Lease for recording purposes.  The Party requesting recordation shall be
responsible of repayment of any fees or taxes applicable thereto.

26.  No Right to Holdover. Lessee has no right to retain possession of the
Premises or any part thereof beyond the expiration or earlier termination of
this Lease.

27.  Cumulative Remedies. No remedy or election hereunder shall be deemed
exclusive but shall, wherever possible, be cumulative with all of the remedies
at law or in equity.

28.  Covenants and Conditions. All provisions of this Lease to be observed or
performed by Lessee are both covenants and conditions.

29.  Binding Effect; Choice of Law.  This Lease shall be binding upon the
parties, their personal representatives, successors and assigns and be governed
by the laws of the State in which the Premises are located.  Any litigation
between the Parties hereto concerning this Lease shall be initiated in the
county in which the Premises are located.

30.  Subordination; Attornment; Non-Disturbance.

     30.1 Subordination.  Provided that the ground lessor, Lender, or other
holder of the interest to which this Lease would be subordinated executes a
recognition and nondisturbance agreement which provides that this Lease shall
not be terminated so long as no Breach by Lessee exists under this Lease, this
Lease and any Option granted hereby shall be subject and subordinate to any
ground lease, mortgage, deed of trust, or other hypothecation or security device
(collectively, "Security Device"), now or hereafter placed by Lessor upon the
real property of which the Premises are a part, to any and all advances made on
the security thereof, and to all renewals, modifications, consolidations,
replacements and extensions thereof, Lessee agrees that the Lenders holding any
such Security Device shall have no duty, liability or obligation to perform any
of the obligations of Lessor under this Lease, but that in the event of Lessor's
default with respect to any subobligation, Lessee will give any Lender whose
name and address have been furnished Lessee in writing for such purpose notice
of Lessor's default and allow such Lender the same period available for Lessor
for the cure of said default before invoking any remedies Lessee may have by
reason thereof.  If any Lender shall elect to have this Lease and/or any Option
granted hereby superior to the lien of its Security Device and shall give
written notice thereof to Lessee, this Lease and such Options shall be deemed
prior to such Security Device, notwithstanding the relative dates of the
documentation or recordation thereof.

     30.2 Attornment.  Subject to the non-disturbance provisions of Paragraph
30.3 and such recognition and non-disturbance agreement, Lessee agrees to attorn
to a Lender of any other party who acquires ownership of the Premises by reason
of a foreclosure of a Security Device, and that in the event of such
foreclosure, such new owner shall not:  (i) be liable for any act or omission of
any prior lessor or with respect to events occurring

                                      20.

<PAGE>

prior to acquisition of ownership, unless such Lender had previously consented
to the same, (ii) be subject to any offsets or defenses which Lessee might have
against any prior lessor, or (iii) be bound by prepayment of more than one (1)
month's rent, unless the same was paid to such Lender.

     30.3 Non-Disturbance. With respect to Security Devices entered into by
Lessor after the execution of this Lease, Lessee's subordination of this Lease
shall be subject to receiving assurance (a "non-disturbance agreement") from the
Lender that Lessee's possession and this Lease, including any options to extend
the term hereof, will not be disturbed so long as Lessee is not in Breach hereof
and attorns to the record owner of the Premises.

     30.4 Self-Executing. The agreements contained in this Paragraph 30 shall
be effective without the execution of any further documents; provided, however,
that, upon written request from Lessor or a Lender in connection with a sale,
financing or refinancing of the Premises, Lessee and Lessor shall execute such
further writings as may be reasonably required to separately document any such
subordination or non-subordination, attornment and/or non-disturbance agreement
as is provided for herein.

31.  Attorney's Fees. If any Party or Broker brings an action or proceeding to
enforce the terms hereof or declare rights hereunder, the Prevailing Party (as
hereafter defined) or Broker in any such proceeding, action, or appeal thereon,
shall be entitled to reasonable attorney's fees. Such fees may be awarded in the
same suit or recovered in a separate suit, whether or not such action or
proceeding is pursued to decision or judgment. The term, "Prevailing Party"
shall include, without limitation, a Party or Broker who substantially obtains
or defeats the relief sought, as the case may be, whether by compromise,
settlement, judgment, or the abandonment by the other Party or Broker of its
claim or defense. The attorney's fees award shall not be computed in accordance
with any court fee schedule, but shall be such as to fully reimburse all
attorney's fees reasonably incurred. Lessor shall be entitled to attorney's
fees, costs and expenses incurred in the preparation and service of notices of
Default and consultations in connection therewith, whether or not a legal action
is subsequently commenced in connection with such Default or resulting Breach.

32.  Lessor's Access; Showing Premises; Repairs. Lessor and Lessor's agents
shall have the right to enter the Premises at any time, in the case of an
emergency, and otherwise at reasonable times upon one (1) business day's prior
notice subject to Lessee's reasonable security measures for the purpose of
showing the same to prospective purchasers, lenders, or lessee, an making such
alterations, repairs, improvements or additions to the Premises or to the
building of which they are a part, as Lessor may reasonably deem necessary.
Lessor may at any time place on or about the Premises or building any ordinary
"For Sale" signs and Lessor may at any time during the last one hundred twenty
(120) days of the term hereof place on or about the Premises any ordinary "For
Lease" signs. All such activities of Lessor shall be without abatement of rent
or liability to Lessee. Lessor shall, however, at all times minimize any
interference with Lessee's operations at the Premises.

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

34.  Signage. Lessor grants to Lessee the right to construct a monument sign and
a building sign with Lessee's name thereon at Lessee's expense, subject to the
prior written approval by Lessor of the size, design, and location of such
signage and subject to approval of such signage by the City of Palo Alto. Lessee
shall remove all such signage at Lessee's expense promptly upon the expiration
or sooner termination of this Lease.

35.  Termination; Merger. Unless specifically stated otherwise in writing by
Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual
termination or cancellation hereof, or a termination hereof by Lessor for Breach
by Lessee, shall automatically terminate any sublease or lesser estate in the
Premises; provided, however, Lessor shall, in the event of any such surrender,
termination or cancellation, have the option to continue any one or all of any
existing subtenancies. Lessor's failure within ten (10) days following any such
event to make a written election to the contrary by written notice to the holder
of any such lesser interest, shall constitute Lessor' selection to have such
event constitute the termination of such interest.

                                      21.

<PAGE>

36.  Consents.

     (a)   Accept for Paragraph 33 hereof (Auctions) wherever in this Lease the
consent, approval, designation, determination or judgment of a Party is
required, such consent, approval, designation, determination or judgment shall
not be unreasonable or unreasonably withheld or delayed. Lessor's actual
reasonable costs and expenses (including but not limited to architects',
attorneys', engineers' or other consultants' fees) incurred in the consideration
of, or response to, a request by Lessee for any Lessor consent pertaining to
this Lease or the Premises, including but not limited to consents to an
assignment, a subletting or the presence or use of a Hazardous Substance,
practice or storage tank, shall be paid by Lessee to Lessor upon receipt of an
invoice and supporting documentation therefor. Lessor's consent to any act,
assignment of this Lease or subletting of the Premises by Lessee shall not
constitute an acknowledgement that no Default or Breach by Lessee of this Lease
exists, nor shall such consent be deemed a waiver of any then existing Default
or Breach, except as may be otherwise specifically stated in writing by Lessor
at the time of such consent.

     (b)   All conditions to Lessor's consent authorized by this Lease are
acknowledged by Lessee as being reasonable. The failure to specify herein any
particular condition to Lessor's consent shall not preclude the imposition by
Lessor at the time of consent of such further or other conditions as are then
reasonable with reference to the particular matter for which consent is being
given.

37.  (Deleted section)

38.  Quiet Possession. At all times that no Breach of this Lease by Lessee
exists, upon payment by Lessee of the rent for the Premises and the observance
and performance of all of the covenants, conditions and provisions on Lessee's
part to be observed and performed under this Lease, Lessee shall have quiet
possession of the Premises of the entire term hereof subject to all of the
provisions of this Lease.

39.  Options.

     39.1  Definition. As used in this Paragraph 39 the word "Option" has the
following meaning: (a) the right to extend the term of this Lease or to renew
this Lease or to extend or renew any lease that Lessee has on the property of
Lessor.

     39.2  Options Personal To Original Lessee. Each Option granted to Lessee in
this Lease is personal to the original Lessee named in Paragraph 1.1 hereof, and
cannot be voluntarily or involuntarily assigned or exercised by any person or
entity other than said original Lessee while the original Lessee is in full and
actual possession of the Premises and without the intention of thereafter
assigning or subletting. The Options, if any, herein granted to Lessee are not
assignable, either as a part of an assignment of this Lease or separately or
apart therefrom, and no Option may be separated from this Lease in any manner,
by reservation or otherwise, except that Lessee may, without Lessor's prior
written consent and without any participation by Lessor in assignment and
subletting proceeds, sublet the Premises or assign the Lease to: (i) a
subsidiary, affiliate, division or corporation controlling, controlled by or
under common control with Lessee; (ii) a successor corporation related to Lessee
by merger, consolidation, nonbankruptcy reorganization, or government action;
(iii) a purchaser of substantially all of Lessee's assets located in the
Premises. Any such sublease shall expressly state therein that such sublease
shall be subject to all of the terms and provisions of this Lease. The assignee
in any such assignment shall expressly assume in writing for the benefit of
Lessor all of the obligations of the Lessee under this Lease. Executed
counterparts of the foregoing sublease or assignment documents shall be
delivered to Lessor upon request. For the purposes of this Lease, sale or
transfer of Lessee's capital stock through any public exchange, shall not be
deemed as assignment, subletting, or any other transfer of the Lease or the
Premises.

     39.3  Multiple Options. In the event that Lessee has any Multiple Options
to extend or renew this Lease, a later Option cannot be exercised unless the
prior Options to extend or renew this Lease have been validly exercised.

     39.4  Effect of Default on Options.

                                      22.

<PAGE>

     (a)   Lessee shall have no right to exercise an Option, notwithstanding any
provision in the grant of Option to the contrary: (i) during the period
commencing with the giving of any notice of Default under Paragraph 13.1 and
continuing until the noticed Default is cured.

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

40. [deleted]

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

42.  Reservations. Lessor reserves to itself the right, from time to time, to
grant, without the consent or joinder of Lessee, such easements, rights and
dedications that Lessor deems necessary, and to cause the recordation of parcel
maps and restrictions, so long as such easements, rights, dedications, maps and
restrictions do not unreasonably interfere with the use of the Premises by
Lessee or increase Lessee's cost of such use or occupancy or Lessee's
obligations hereunder. Lessee agrees to sign any documents reasonably requested
by Lessor to effectuate any such easement rights, dedication, map or
restrictions.

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

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

45.  Conflict. Any conflict between the printed provisions of this Lease and the
typewritten or handwritten provisions shall be controlled by the typewritten or
handwritten provisions. Any conflict between this form of this Lease and any
Addenda, Work Letter or Exhibits shall be controlled by the later.

46.  Offer. Preparation of this Lease by Lessor or Lessor's agent and submission
of same to Lessee shall not be deemed an offer to lease to Lessee. This Lease is
not intended to be binding until executed by all Parties hereto.

47.  Amendments. This Lease may be modified only in writing, signed by the
Parties in interest at the time of the modification. The parties shall amend
this Lease from time to time to reflect any adjustments that are made to the
Base Rent or other rent payable under this Lease. As long as they do not
materially change Lessee's obligations hereunder, Lessee agrees to make such
reasonable non-monetary modifications to this Lease as may be reasonably
required by an institutional, insurance company, or pension plan Lender in
connection with the obtaining of normal financing or refinancing of the property
of which the Premises are a part.

48.  Multiple Parties. Except as otherwise expressly provided herein, if more
than one person or entity is named herein as either Lessor or Lessee, the
obligations of such Multiple Parties shall be the joint and several
responsibility of all persons or entities named herein as such Lessor or Lessee.

49.  Reasonable Expenditures. Notwithstanding anything to the contrary in this
Lease, any expenditure by a party permitted or required under this Lease, for
which such party is entitled to demand and does demand reimbursement from the
other party, shall be limited to the fair market value of the goods and services
involved, shall be reasonably incurred, and shall be substantiated by
documentary evidence available for inspection and review by the other party or
its representative during normal business hours.

                                      23.

<PAGE>

50.  Addendum. The Inserts 1 through 36 set forth on the Addendum attached
hereto are incorporated in the text of this Lease at the places indicated by the
numbers in the margins of this Lease, which numbers correspond to the Insert
numbers on the Addendum.

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

IF THIS LEASE HAS BEEN FILLED IN, IT HAS BEEN PREPARED FOR SUBMISSION TO YOUR
ATTORNEY FOR HIS APPROVAL FURTHER, EXPERTS SHOULD BE CONSULTED TO EVALUATE THE
CONDITION OF THE PROPERTY AS TO THE POSSIBLE PRESENCE OF ASBESTOS, STORAGE TANKS
OR HAZARDOUS SUBSTANCES. NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE
AMERICAN INDUSTURAL REAL EASTATE ASSOCIATION OR BY THE REAL ESTATE BROKER(S) OR
THEIR AGENTS OR EMPLOYEES AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX
CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES; THE PARTIES
SHALL RELY SOLEY UPON THE ADVICE OF THEIR OWN COUNSEL AS TO THE LEGAL AND TAX
CONSEQUENCES OF THIS LEASE. IF THE SUBJECT PROPERTY IS LOCATED IN A STATE OTHER
THAN CALIFORNIA, AN ATTORNEY FROM THE STATE WHERE THE PROPERTY IS LOCATED SHOULD
BE CONSULTED.

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

<TABLE>
<S>                                                    <C>
Executed at ___________________________________        Executed at ___________________________________
on ____________________________________________        on ____________________________________________
by LESSOR: W. F. BATTON & CO., INC.                    by LESSEE: OMNICELL TECHNOLOGIES, INC.
a California corporation                               a California corporation

By /s/ W. F. Batton                                    By /s/ Randall Lipps
   --------------------------------------------           --------------------------------------------
Name Printed: W. F. Batton                             Name Printed: Randall Lipps
             ----------------------------------                      ---------------------------------
Title: ________________________________________        Title: ________________________________________

By ____________________________________________        By ____________________________________________
Name Printed: _________________________________        Name Printed: _________________________________
Title: ________________________________________        Title: ________________________________________
Address: ______________________________________        Address: ______________________________________
_______________________________________________        _______________________________________________
Tel No. (___) _______ Fax No. (___) ___________        Tel No. (___) ________ Fax No. (___) __________
</TABLE>

                                      24.

<PAGE>

                                  WORK LETTER

THIS WORK LETTER is made part of the Lease dated March 25, 1994 (the "Lease"),
by and between W. F. BATTON & CO., INC., a California corporation, as Lessor
("Lessor") and OMNICELL TECHNOLOGIES, INC., a California corporation, as Lessee
("Lessee"), pertaining to certain premises consisting of approximately 30,600
rentable square feet of space located on the property commonly known as 1101
East Meadow Drive, Palo Alto, California (the "Premises").

     Lessor and Lessee agree as follows:

     1.   Agreement to Construct: Lessor shall construct the interior
improvements ("Lessee Interior Improvements") for the Premises to be occupied by
Lessee pursuant to the Lease in accordance with this Work Letter.

     2.   Plans, Specification, and Working Drawings.

     (a)  Preliminary Plans. Lessor and Lessee have reviewed preliminary plans
and specifications for the Lessee Interior Improvements.

     (b)  Preparation of Working Drawings. On or before April 8, 1994, Lessor
          shall cause to be prepared final plans, specifications, and working
          drawings ("Working Drawings") which shall substantially conform to the
          preliminary plans and specifications reviewed by Lessor and Lessee.
          Within five (5) days after receipt thereof, Lessee shall approve such
          Working Drawings or Lessee shall deliver to Lessor Lessee's specific
          written changes or objections to such Working Drawings. Lessee shall
          not unreasonably withhold or delay its approval of the Working
          Drawings. The parties shall negotiate in good faith to reach agreement
          on any aspect of the Working Drawings disapproved by Lessee, with each
          party using its best efforts to complete and to approve the Working
          Drawings on or before April 15, 1994.

     (c)  Approval of Working Drawings. Upon approval, Lessor and Lessee shall
each initial and date the Working Drawings and Lessor shall submit the Working
Drawings to all appropriate governmental agencies for approval. Immediately
after all necessary governmental approvals have been obtained, four (4) copies
of the Working Drawings shall be initialed and dated by Lessor and Lessee if any
changes thereto have been made by the governmental agencies. The Working
Drawings as approved, and all change orders permitted pursuant to Paragraph 5
hereof are referred to herein as the "Approved Plans."

     3.   Prime Contractor.

     (a)  The prime contractor to be used to construct the Lessee Interior
Improvements shall be Jack Dymond Co. (hereafter "Dymond").

     (b)  Dymond shall have the following obligations during the course of the
Construction Contract (as such term is defined in Paragraph 4 below), and, where
appropriate, following the completion of the construction of the Lessee Interior
Improvements, in addition to all other conditions and obligations set forth in
the Construction Contract or otherwise applicable to Dymond:

          (1)  Dymond shall obtain at least three (3) competitive bids for all
subcontractors unless Lessor and Lessee approve in writing a fewer number of
competitive bids;

          (2)  Dymond shall expressly assume responsibility for all work done by
all persons working under its supervision and control; and

          (3)  Dymond shall use its best efforts to ensure that all persons
working under its supervision and control are, during the entire course of their
duties, properly licensed and qualified to do the particular jobs for which they
were hired.

                                      25.

<PAGE>

     4.   Construction Contract. Lessor and Lessee shall cooperate to cause the
Lessee Interior Improvements to be constructed in the following manner:

          (a)  Dymond to Construct Interior Improvements. The parties agree that
the Lessee Interior Improvements shall be constructed by Dymond pursuant to a
fixed price construction contract (the "Construction Contract") between Lessor
and Dymond. The Construction Contract shall provide that Dymond shall provide a
warranty of one year with respect to the Lessee Interior Improvements.

          (b)  Lessor's Securing of Bids. Lessor shall obtain Dymond's bid to
construct the Lessee Interior Improvements, which bid shall be itemized to show
the amount to be charged by each subcontractor for its part or the work.
Subcontractors shall be chosen on the basis of competitive bids, as set forth in
the Paragraph 3(b)(1) above herein. As soon as the bid is obtained from Dymond,
Lessor shall submit it to Lessee for Lessee's review and approval.

          (c)  Lessor's Disapproval of Subcontractor Bids. Lessor shall have the
right to disapprove any subcontractor bid for any item of the work, and if
Lessor does so, Lessor, Lessee and Dymond shall immediately confer and attempt
in good faith to reach agreement upon an alternative subcontractor whose bid is
acceptable to Lessor, Lessee and Dymond. If the parties are unable to reach
agreement within five (5) business days after Lessor has disapproved a
subcontractor, then, at Lessor's option, the part of the work that is the
subject of the bid disapproved by Lessor shall be rebid to one subcontractor,
and such work shall be awarded to the low bidder if such low bid is lower than
the bid disapproved by Lessor. In selecting alternative subcontractors, Lessor
and Lessee shall act reasonably and in good faith, acknowledging that a
subcontractor's ability to do quality work completed on time is as important as
the price charged, and acknowledging further that the approval of Dymond of any
subcontractor must be obtained. Any rebidding process undertaken pursuant to
this subparagraph shall be completed within ten (10) business days after Lessor
first disapproves the subcontractor bid in question.

          (d)  Lessee's Approval of Improvement Costs.

               (1)  Submittal of Dymond Bid. Once the bid of Dymond and its
subcontractors has been obtained, Lessor shall deliver to Lessee its final
estimate of the total "Improvement Costs" (as defined below) that will be
incurred to construct the Lessee Interior Improvements shown on the Approved
Plans. If the final estimate of the Improvement Costs is $765,000 or less, but
not less than $550,000, Lessee shall approve such amount.

               (2)  Review of Dymond Bid. If the final estimate of the
Improvement Costs exceeds $765,000 (30,600 rentable square feet x $25 per square
foot), Lessor and Lessee shall review the bid and shall jointly use their best
efforts to modify the Plans to reduce the total Improvements Costs to $765,000.
Notwithstanding the foregoing, if the final bid of Dymond for the total
Improvement Costs exceeds $765,000, Lessor and Lessee have reviewed the bid and
the Plans and are unable to agree upon changes to the Plans to reduce the
Improvement Costs to $765,000 within ten (10) days after receipt of said bid
after attempting in good faith to do so, Lessor shall have the option either (I)
to approve the final bid of Dymond, or (ii) to terminate the Lease by written
notice to Lessee, in which event Lessor and Lessee shall be relieved of all
further obligations thereunder and any prepaid rent and security deposit shall
be returned to Lessee.

               (3)  Redesign of Improvements by Lessee. All actions to modify
the Approved Plans and to reduce the bid of Dymond pursuant to this subparagraph
(d) shall be completed within ten (10) business days after the estimated
Improvement Costs figure has been submitted to Lessee. In the event of changes
in the Plans under the provisions of this subparagraph (d), the date set forth
in Paragraph 3.3 of the Lease, entitled "Delay in Possession," and Insert 1 in
the Addendum, which grant to Lessee the right to terminate the Lease, shall be
delayed on calendar day for each calendar day that the redesign or rebidding
actually delays the commencement of construction of the Lessee Interior
Improvements.

     5.   Change Orders. After the Working Drawings have been approved by Lessor
and Lessee in final form in writing as provided above, Lessee shall have the
right to request change orders. Any change order requested by Lessee shall be
subject to the prior written approval of Lessor, which consent shall not be
unreasonably withheld

                                      26.

<PAGE>

or delayed provided that the change order does not increase the total
Improvement Costs. Lessee shall not be entitled to request, and Lessor shall not
be obligated to approve, any change order which increases the total Improvement
Costs to an amount which exceeds the maximum Lessee Improvement Allowance of
$765,000, unless Lessee is willing to pay for said changes.

     6.   Lessee Improvement Allowance. The Base Monthly Rent set forth in
Paragraph 1.5 of the Lease and Insert 2 of the Addendum is predicated upon a
base Lessee Improvement Allowance to be provided by Lessor of Twenty Dollars
($20) per square foot, or a total base Lessee Improvement Allowance of $612,000
(30,600 square feet x $20). Lessor has also agreed (1) that no less than
$550,800 (30,600 square feet x $18) shall be contributed by Lessor as the
minimum Lessee Improvement Allowance and (2) that Lessor shall contribute up to
a maximum amount of $765,000 as the maximum Lessee Improvement Allowance (30,600
square feet x $25). The Base Monthly Rent shall be adjusted in accordance with
Paragraph 8(d) of this Work Letter if the amount of the Lessee Improvement
Allowance actually spent is less than or greater than $612,000. If construction
of any Lessee Interior Improvements is deferred, Lessor and Lessee shall
mutually agree on the timing of subsequent construction.

     To the extent that the total Improvements Costs initially equal less than
$765,000, then the unused portion of that amount shall be made available to
Lessee for future improvements during the Lease term with adjustments to be made
at that time in Base Monthly Rent as provided in Paragraph 8(d) of this Work
Letter.

     7.   Commencement and Construction. As soon as (i) the Working Drawings
have been prepared and approved as provided above, (ii) all necessary
governmental approvals have been obtained, and (iii) Lessor has entered into the
Construction Contract, then Lessor shall thereafter cause construction of the
Lessee Interior Improvements to be commenced and diligently prosecuted to
completion, so that the Lessee Interior Improvements may be Substantially
Completed (as defined below) as soon as practicable.

     8.   Improvements Costs. "Improvements Costs" for the Lessee Interior
Improvements shall mean the following "Included Costs," but not the following
"Excluded Costs" for the Lessee Interior Improvements:

          (a)  Included Costs. "Included Costs" shall mean the following: (i)
the total amount due pursuant to the fixed price Construction Contract entered
into pursuant to this Work Letter and any change orders approved pursuant to
this Work Letter; (ii) the cost paid to governmental authorities of governmental
applications, approvals, permits and fees required to construct the Lessee
Interior Improvements; (iii) fees of architects, space planners, engineers or
other professionals (other than employees of affiliates of Lessor) for services
rendered in connection with the design and construction of the Lessee Interior
Improvements up to a maximum of Seven Hundred Sixty-five Thousand Dollars
($765,000) or such additional amount as Lessor may approve; (iv) any costs paid
to governmental authorities to inspect and obtain approval of the Lessee
Interior Improvements; (v) the cost associated with the purchase and
installation of a supplemental HVAC unit as per the approved plans; and (vi) any
other costs of designing, constructing and obtaining governmental approvals of
the work shown on the Working Drawings, other than the "excluded Costs described
below.

          (b)  Excluded Costs. "Excluded Costs" (which will also not be paid by
Lessee) shall mean and "Improvements Costs" shall not include: (i) costs
incurred as a consequence of a contractor's or subcontractor's default, the
negligent act or omission or the willful misconduct of Lessor or its
consultants, agents, employees, contractors or subcontractor or Lessor's breach
of this Lease, or any contract for construction of the Lessee Interior
Improvements; (ii) interest, principal and other charges with respect to any
construction or permanent loan or the project; (iii) costs for which Lessor may
obtain reimbursement from others; (iv) costs for which Lessor has actually
received reimbursement from others; (v) costs associated with investigation,
removal, monitoring or remediation of hazardous materials; (vi) premium time and
other costs of accelerating the work to meet the scheduled completion date sated
in the Lease, unless the acceleration amount is approved by Lessee in wiring;
(vii) costs of management, design and all other services provided by employees
or affiliates of Lessor and the cost of any administration, profit and overhead
for Lessor or any of its administration, profit and overhead for Lessor or any
of its employees and affiliates; (viii) all costs and expenses incurred with
respect to work not required by the Approved Plans, as the same may be amended
by change orders; (ix) the cost of bringing the Building and surrounding
property into compliance with applicable building codes, Hazardous Materials
laws or other statutes, laws, rules or regulations; (x) all costs incurred in
connection with casualties and Acts of God; and (xi) any parking fees or fines
incurred in connection with the parking of vehicles by any contractor.

                                      27.

<PAGE>

          (c)  Additional Lessor Improvements. In addition to the Lessee
Improvement Allowance to be contributed by Lessor as provided for in Paragraph 6
above, Lessor shall pay for the cost of repainting the exterior of the building,
restriping and resealing the parking lot, repairing or replacing the walk-in and
loading doors, repainting the roof screens, and repair or replace any HVAC units
that are not working. In addition to the Lessee Improvement Allowance, Lessor
shall also pay for any City or State required building code upgrades and seismic
reinforcement requirements in effect as of the date of execution and delivery of
this Lease. Any interior ADA or interior Title 24 requirements, other than
City/State building code upgrades and seismic reinforcement requirements shall
be paid for by Lessee as part of the Lessee Improvement Allowance. Exterior ADA
or exterior Title 24 requirements shall be paid for by Lessor unless caused by
Lessee's interior improvements.

          (d)  Rent Adjustment. If the Improvements Costs are less than
$612,000, the Base Monthly Rent provided for in Paragraph 1.5 of the Lease and
Insert 2 of the Addendum shall be decreased by $0.0208/sq.ft/dollar/per month.
If the Improvements Costs are more than $612,000, up to a total of $765,000 ($25
per square foot), the Base Monthly Rent shall be increased by
$0.0208/sq.ft/dollar/per month.

     9.   Final Accounting. When the Lessee Interior Improvements are
Substantially Completed (as defined below), Lessor shall submit to Lessee a
final and detained accounting of all Improvement Costs paid for the construction
of the Lessee Interior Improvements, certified as a true and correct by Lessor.
Lessee shall have the right, during normal business hours after giving Lessor at
least two (2) business days prior written notice, to audit the books, records,
and supporting documents of Lessor to the extent necessary to determine the
accuracy of such accounting. Lessee shall bear the cost of such audit. Any such
audit must be conducted, if at all, within ninety (90) calendar days after
Lessor delivers such accounting to Lessee.

     10.  Risk of Loss. The risk of loss of the Premises before the Commencement
Date of the Lease (as defined in the Lease) shall be borne by Lessor. At all
times prior to the Commencement Date, Lessor, at its sole cost and expense,
shall maintain contingent liability and broad form "builder's risk" insurance
with coverage in an among equal to the replacement cost of the shell of the
Premises plus the estimated cost of the Lessee Interior Improvements. If the
Premises are damaged or destroyed by a casualty covered by said insurance, then
Lessor shall promptly and diligently complete construction of the Premises and
the Lessee Interior Improvements in accordance with the Lease and this Work
Letter.

     11.  Substantial Completion. The Lessee Interior Improvements shall be
deemed "Substantially Completed" when: (i) Dymond has issued its written
certificate stating that such improvements have been Substantially Completed in
accordance with the Approved plans; (ii) the Premises substantially conform to
the Approved Plans, as amended by any change orders approved pursuant to
Paragraph 5 of this Work Letter, and (iii) Lessee may lawfully occupy the
Premises in accordance with applicable law.

     12.  Delay in Completion Caused by Lessee. Lessor and Lessee acknowledge
that the date on which Lessee is obligated to commence paying Base Monthly Rent
under the Lease would be delayed because of (i) Lessee's failure to review and
approve the Working Drawings within the time periods set forth in Paragraph 2
hereof; or (ii) as the result of any change orders requested by Lessee and
approved by Lessor pursuant to the terms of this Work Letter. It is the intent
of the parties hereto that the commencement of Lessee's obligation to pay Base
Monthly Rent not be delayed by any such causes, and if any of the events set
forth above causes an actual delay in Substantial Completion, Lessee's
obligation to pay Base Monthly Rent shall commence as of the date it would
otherwise have commenced absent said delay caused by Lessee.

     13.  Delivery of Possession.

          (a)  Walk Through. As soon as the Lessee Interior Improvements are
Substantially Completed, Lessor and Lessee shall conduct a joint "walk through"
of the Premises and shall inspect the Lessee Interior Improvements so completed
using their best efforts to discover all uncompleted or defective construction.
After such inspection has been completed, each party shall sign a "punch list"
setting forth any such defective items.

          (b)  Correction of "Punch List" Items. Lessor shall use its best
efforts to cause the Dymond to complete and/or repair such "punch list" items
within thirty (30) days after the "walk through." After the initial

                                      28.

<PAGE>

"punch List" has been prepared, Lessee shall use its reasonable efforts to
discover any further defects and shall have the right to submit a further "punch
list" to Lessor within sixty (60) days after the Commencement Date. In such
case, Lessor shall cause Dymond to remedy such "punch list" items as soon as
reasonably practicable. Nothing contained herein shall impair any of Lessee's
other right under the Lease.

     14.  Warranty. Dymond shall warrant for a period of one year from the date
of substantial completion of construction that the Lessee Interior Improvements
shall be constructed in a good and workmanlike manner, using new materials of
good quality, and in accordance with the Approved Plans (as modified by any
change orders requested by Lessee and approved by Lessor pursuant to the terms
of Paragraph 5 of this Work Letter).

     15.  Ownership of the Interior Improvements.

          (a)  Parties' Respective Depreciation of Improvements. All of the
Lessee Interior Improvements which are constructed with funds of Lessor shall
become the property of Lessor. Any furnishings, trade fixtures, equipment
installed in the Premises and paid for by Lessee shall become the property of
Lessee upon installation thereof in the Premises and Lessee shall have the right
to depreciate and claim and collect investment tax credits on any such property
throughout the terms of the Lease.

          (b)  Allocation of Depreciation. If both Lessor and Lessee contribute
to the cost of constructing any of the Lessee Interior Improvements, Lessor and
Lessee shall to the extent reasonably practicable agree in writing which of such
improvements are to be constructed using Lessor's funds (and therefore are
Lessor's property) and which of the improvements are to be installed with
Lessee's funds (and therefore are Lessee's property). Such allocation of
ownership of the Lessee Interior Improvements shall be made in a reasonable
manner so that the benefits of accelerated or component depreciation for tax
purposes and any investment tax credit shall be shared by Lessor and Lessee in
proportion to the amount contributed by each of them for payment of the cost of
the Lessee Interior Improvements. Any Lessee Interior Improvements constructed
with Lessee's funds shall become a part of the realty and shall become Lessor's
property upon the expiration for sooner termination of the Lease, except for
items which Lessor and Lessee agree in writing prior to commencement of
construction may be or shall be removed by Lessee.

     16.  Lessee's Right to Install Trade Fixtures. When the construction of the
Lessee Interior Improvements has proceeded to the point where Lessee's work of
installing its fixtures and equipment in the Premises can be commenced in
accordance with good construction practices, Lessor shall notify Lessee to that
effect and shall permit Lessee, and its authorized representatives and
contractors, to have access to the Premises for a period of not less than
fourteen (14) days prior to the Commencement Date for the purpose of installing
Lessee's trade fixtures and equipment. Such entry by Lessee shall not advance
the Commencement Date or Lessee's obligation to pay Base Monthly Rent.

     17.  Headings. The descriptive headings used and inserted in this Work
Letter are for convenience only and shall not be deemed to affect the meaning or
construction of any of the provisions hereof.

     18.  Effect of Agreement. In the event of any inconsistency between this
Work Letter and the Lease, the terms of the Lease shall prevail.

                                      29.

<PAGE>

                          AMENDMENT NUMBER ONE TO LEASE

                             1101 East Meadow Drive
                              Palo Alto, California

         THIS AMENDMENT NUMBER ONE TO LEASE ("this Amendment") is made and
entered into as of June 17, 1999 by and between W.F. BATTON & CO., INC., a
California corporation, Lessor, and OMNICELL TECHNOLOGIES, INC., a California
corporation, Lessee.

                                    RECITALS

         A. Lessor and Lessee entered into a Standard Industrial/Commercial
Single-Tenant Lease - Net and Addendum dated March 25, 1994 (the "Lease") of
premises consisting of approximately 30,600 square feet commonly known as 1101
East Meadow Drive, Palo Alto, California (the "Premises"). The Expiration Date
of the Original Term of the Lease is June 30, 1999.

         B. In lieu of Lessee exercising the option to extend the Original Term
of the Lease contained in Insert 6, Paragraph 3.3, Option, in the Addendum to
the Lease, Lessor and Lessee have agreed to enter into this Amendment extending
the Original Term of the Lease upon the terms and conditions set forth herein.

                                    AGREEMENT

         NOW, THEREFORE, Lessor and Lessee agree as follows:

         1.       DEFINED TERMS. Defined terms in the Lease which are used in
this Amendment shall have the same meaning as in the Lease.

         2.       EXTENDED TERM.

                  (a)      The Original Term of the Lease referred to in
Paragraph 1.3 of the Lease is hereby extended for one additional period of five
(5) years commencing on July 1, 1999 and ending on June 30, 2004 (the "Extended
Term"). The Extended Term shall be upon all of the terms and provisions of the
Lease, as amended by this Amendment.

                  (b)      The option to extend the Original Term of the Lease
contained in Insert 6, Paragraph 3.3, of the Addendum to the Lease is hereby
deleted and said option to extend shall be of no further force or effect.

                  (c)      Lessee shall have no option to extend upon the
expiration of the Extended Term.

         3.       BASE RENT. Lessee shall pay to Lessor Monthly Base Rent in
monthly installments in advance on the first day of each calendar month during
the Extended Term, in accordance with Paragraph 4.1 of the Lease, as follows:

                                       1.

<PAGE>

<TABLE>
<CAPTION>

                                                    Monthly Base
                                                      Rent Per       Monthly Base
              Period                                Square Foot        Rent NNN
-----------------------------------                 -----------      ------------
<S>                                                 <C>              <C>
July 1, 1999 - December 31, 1999                       $1.85            $56,610

January 1, 2000 - December 31, 2000                    $2.00            $61,200

January 1, 2001 - December 31, 2001                    $2.20            $67,320

January 1, 2002 - December 31, 2002                    $2.30            $70,380

January 1, 2003 - December 31, 2003                    $2.45            $74,970

January 1, 2004 - June 30, 2004                        $2.60            $79,560

</TABLE>

         4.       REIMBURSEMENT OF COST OF TENANT IMPROVEMENTS. In addition to
the installments of Monthly Base Rent provided for in Paragraph 3 above, Lessee
shall pay to Lessor, together with the installments of Monthly Base Rent, the
sum of Four Thousand Two Hundred Forty-Nine and Forty-One Hundredths Dollars
($4,249.41) per month on the first day of each calendar month of the Extended
Term, commencing July 1, 1999 and continuing through June 30, 2004, as
reimbursement to Lessor of Lessor's contribution to the cost of the Tenant
Improvements of Two Hundred Thousand Dollars ($200,000) referred to in Paragraph
6 of this Amendment, plus interest thereon at the rate of ten percent (10%) per
annum.

         5.       OPERATING EXPENSES. In addition to the Monthly Base Rent and
the monthly payments to reimburse Lessor for Lessor's contribution to the cost
of the Tenant Improvements, Lessee shall during the Extended Term pay the
operating expenses of the Premises as Lessee has done during the Original Term,
plus any actual increases in said operating expenses which occur during the
Extended Term.

         6.       TENANT IMPROVEMENTS.

                  (a)      Lessee acknowledges that, as of the date of this
Amendment, Lessee is occupying the Premises under the Lease. Lessee accepts the
Premises in their present condition as of the commencement date of the Extended
Term, subject to the construction of the Tenant Improvements pursuant to this
Paragraph 6.

                  (b)      Promptly following the execution and delivery of this
Amendment, Lessor shall cause to be constructed and completed the Tenant
Improvements to the Premises listed on Exhibit "A" attached hereto and
incorporated by reference herein. Lessor shall cause the Tenant Improvements to
be constructed by Dymond Construction Group (the "Contractor") pursuant to an
Agreement between Lessor and the Contractor (the "Construction Contract") which
shall

                                       2.

<PAGE>

provide for a guaranteed maximum cost in an amount which shall be approved
in writing by Lessor and Lessee. Plans for the Tenant Improvement's shall be
prepared by LRS & Associates. The cost of the plans shall be paid by Lessor and
shall be charged against Lessor's contribution to the cost of the Tenant
Improvements. The Construction Contract and the plans for the Tenant
Improvements shall be approved in writing by Lessee, which approval shall not be
unreasonably withheld. The Construction Contract for the Tenant Improvements
shall include a guarantee by the Contractor against defects in workmanship or
materials for one (1) year.

                  (c)      The Contractor shall obtain at least three (3)
competitive bids for the portion of the work which is to be performed by
subcontractors unless Lessor and Lessee approve in writing a fewer number of
competitive bids for such portion of the work. The final bid of the Contractor
for the construction of the Tenant Improvements shall be approved in writing by
Lessor and Lessee. Lessor's contribution to the cost of construction of the
Tenant Improvements shall be Two Hundred Thousand Dollars ($200,000) ("Lessor's
Contribution"), subject to Lessee's obligation to reimburse Lessor for Lessor's
Contribution plus interest thereon pursuant to Paragraph 4. Lessee shall pay to
Lessor in a lump sum in cash promptly upon completion of the Tenant Improvements
and receipt by Lessee of an invoice therefor from Lessor that portion of the
cost of the Tenant Improvements which exceeds Lessor's Contribution of Two
Hundred Thousand Dollars ($200,000), plus the added cost of any change orders
requested by Lessee pursuant to Paragraph 6(d).

                  (d)      After the working drawings have been approved by
Lessor and Lessee in writing as provided above, Lessee shall have the right to
request change orders to the Tenant Improvements. Any change order requested by
Lessee shall be subject to the prior written approval of Lessor, which approval
shall not be unreasonably withheld or delayed, provided that the change order
does not increase the total cost of the Tenant Improvements to an amount in
excess of the total cost previously approved by Lessor and Lessee, unless Lessee
agrees in writing to pay such excess to Lessor in a lump sum in cash promptly
upon completion of the Tenant Improvements.

                  (e)      All of the Tenant Improvements, furnishings, trade
fixtures, and equipment installed in the Premises which are paid for from
Lessor's Contribution to the Tenant Improvements, paid for directly by Lessee,
or reimbursed by Lessee to Lessor, shall become the property of Lessee upon
installation thereof in the Premises, and Lessee shall have the right to
depreciate and claim and collect investment tax credits on any such property
throughout the Extended Term. Notwithstanding the foregoing, Tenant Improvements
constructed with Lessor's Contribution to the Tenant Improvements or with the
Lessee's funds shall become a part of the realty and shall become Lessor's
property upon the expiration or sooner termination of the Extended Term, except
for items which Lessor and Lessee agree in writing prior to commencement of
construction of the Tenant Improvements may be or shall be removed by Lessee.

         7.       ASPHALTIC CONCRETE REPAIR WORK. Lessor shall cause to be
performed by R. Gunn Construction, Inc. ("Gunn Construction") the asphaltic
concrete repair work to the Premises at a total cost of Twenty-Nine Thousand
Seven Hundred Fifty-Seven Dollars ($29,757) which is described in Gunn
Construction's Estimate #99-1069 dated May 18, 1999 to Lessor, a copy of which
Lessor has delivered to Lessee. One-half (1/2) of the cost of the work
($14,878.50) shall

                                       3.

<PAGE>

be paid by Lessor and charged against Lessor's Contribution to the cost of
the Tenant Improvements. The remaining one-half (1/2) of the cost of the work
($14,878.50) shall be paid by Lessor directly and shall not be charged
against Lessor's Contribution to the Tenant Improvements.

         8.       HAZARDOUS MATERIALS MANAGEMENT PLAN. Except as set forth on
Exhibit "B" attached hereto and incorporated herein by reference, Lessee shall
not bring onto the Premises any hazardous materials. Lessee shall deliver to
Lessor (a) a copy of Lessee's current Hazardous Materials Management Plan, and
any amendments or supplements thereto, or replacements thereof, from time to
time during the Extended Term, and (b) a copy of all Hazardous Materials reports
or plans filed by Lessee with the City of Palo Alto, even though Lessee's
Hazardous Materials Management Plan and any such reports or plans filed with the
City show that Lessee is not currently using any reportable hazardous materials
on the Premises.

         9.       AMENDMENT TO GOVERN. In the event of any inconsistency between
the printed provisions of the Lease or the Addendum thereto and this Amendment,
the provisions of this Amendment shall govern.

         10.      CONTINUING EFFECT. Except as extended and amended hereby, the
Lease shall remain in full force and effect.

                                       4.

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Amendment No. 1 as
of the date set forth above.

                                            LESSOR

                                            W.F. BATTON & CO., INC.,
                                            a California corporation

                                            By /s/ Marie A. Batton
                                                   Its President

                                            By
                                               --------------------------------
                                                 Its

                                            LESSEE

                                            OMNICELL TECHNOLOGIES, INC.
                                            a California corporation

                                            By /s/ Earl E. Fry
                                                   Its VP and CFO

                                            By
                                               --------------------------------
                                                 Its

                                       5.

<PAGE>

                                   EXHIBIT "A"

                      SCOPE OF WORK FOR TENANT IMPROVEMENTS

<PAGE>

                                   EXHIBIT "B"

               HAZARDOUS MATERIALS USED BY LESSEE ON THE PREMISES

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