Document:

STANDARD INDUSTRIAL/COMMERCIAL MULTI-TENANT LEASE MODIFIED NET

1.Basic Provisions ("Basic Provisions")

     1.1 Parties: This Lease ("Lease"), dated for reference purposes only, April
1, 1998 is made by and between CITY PARK LLC ("Lessor") and CNF, INC.
("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 7722 EAST GRAY ROAD, Suite(s) B, SCOTTSDALE,
located in the County of MARICOPA, State of ARIZONA with a zip code of 85260
and generally described as (describe briefly the nature of the property) AN
APPROXIMATE 21,976 OFFICE/WAREHOUSE SPACE (SEE LEASE ADDENDUM)

In addition to Lessee's rights to use and occupy the Premises as hereinafter
specified, Lessee shall have non-exclusive rights to the Common Areas (as
defined in Paragraph 2.7 below) as hereinafter specified, but shall not have any
rights to the roof, exterior walls or utility raceways of the Building or to any
other buildings in the Industrial Center. The Promises, the Building, the Common
Areas, the land upon which they are located, along with all other buildings and
improvements thereon, are herein collectively referred to as the "Industrial
Center." (Also see Paragraph 2.)

     1.2 Parking: 0 unreserved vehicle parking spaces ("Unreserved Parking
Spaces"); and 45 reserved vehicle parking spaces ("Reserved Parking Spaces").
(Also see Paragraph 2.6).

     1.3 Term: THREE (3) YEARS ("Original Term") commencing May 1, 1998
("Commencement Date") and ending April 30, 2001 ("Expiration Date"). (See
Paragraph 3 for further provisions.)

     1.4 Early Possession: 4/15/98 ("Early Possession Date"). (See Paragraphs
3.2 and 3.3 for further provisions.)

     1.5 Base Rent: $14,284.40 per month ("Base Rent"), + rental tax equal to
1.90% payable on the FIRST day of each month commencing May 1, 1998 (See
Paragraph 4 for further provisions.)

[ ] If this box is checked, there are provisions in this Lease for the Base Rent
    to be adjusted per Addendum 1 attached hereto.

     1.6(a) Rent Paid Upon Execution: $14,555.80 as Base Rent + rental tax for
the period May 1998.

     1.6(b) Lessee's Share of Common Area Operating Expenses: 54.940% ("Lessee's
Share") as determined by [X] pro rata square footage of the Premises as compared
to the total square footage of the Building or [ ] other criteria as described
in ___.

     1.7 Security Deposit: $14.600.00 ("Security Deposit"). (See Paragraph 5
for further provisions.)

     1.8 Permitted Use: DISTRIBUTION, WAREHOUSING AND OFFICES FOR MANUFACTURING
OF PORTABLE COMPUTER PERIPHERAL ACCESSORIES AND EQUIPMENT (See Paragraph 6 for
further provisions.)

     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):

CUTLER COMMERCIAL represents

[X} Lessor exclusively ("Lessor's Broker"); [ ] both Lessor and Lessee, and

CORE JACKSON (MILIC) represents

[X} Lessee exclusively ("Lessee's Broker"); [ ] both Lessee and Lessor. (See
    Paragraph 15 for further provisions.)

     1.10(b) Payment to Brokers. Upon the execution of this Lease by both
Parties, Lessor shall pay to said Broker(s) 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 Broker(s) (or in the event there is no
separate written agreement between Lessor and said Broker(s), the sum of $BY
SEPARATE AGREEMENT for brokerage services rendered by said Broker(s) in
connection with this transaction.

     1.11 Guarantor. The obligations of the Lessee under this Lease are to be
guaranteed by DAVID THOMPSON, ITS CFO PAUL CHARLES, ITS PRESIDENT
("Guarantor(s)"). (See Paragraph 37 for further provisions.)

     1.12 Addenda. Attached hereto is an Addendum or Addenda consisting of
Paragraphs 1-4 and Exhibit(s) A 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 existing
plumbing, fire sprinkler system, lighting, air conditioning, heating, and
loading doors, if any, in the Premises, other than those constructed by Lessee,
shall be in good operating condition on the Commencement Date. If a
non-compliance with said warranty exists as of the Commencement Date, 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 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 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 Lessors expense. If Lessee does not
give Lessor written notice of a non-compliance with this warranty within six (6)
months following the Commencement Date, correction of that non-compliance shall
be the obligation of Lessee at Lessee's sole cost and 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 Lessors 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 Lessee Prior Owner/Occupant. The warranties made by Lessor in this
Paragraph 2 shall be of no force or effect if immediately prior to the date set
forth in Paragraph 1.1 Lessee was the owner or occupant of the Promises. In Such
event, Lessee shall, at Lessee's sole cost and expense, correct any
noncompliance of the Premises with said warranties.

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     2.6 Vehicle Parking. Lessee shall be entitled to use the number of
Unreserved Parking Spaces and Reserved Parking Spaces specified in Paragraph
1.2(b) on those portions of the Common Areas designated from time to time by
Lessor for parking. Lessee shall not use more parking spaces than said number.
Said parking spaces shall be used for parking by vehicles no larger than
full-size passenger automobiles or pick-up trucks, herein called "Permitted Size
Vehicles." Vehicles other than Permitted Size Vehicles shall be parked and
loaded or unloaded as directed by Lessor in the Rules and Regulations (as
defined in Paragraph 40) issued by Lessor. (Also see Paragraph 2.9.)

          (a) Lessee shall not permit or allow any vehicles that belong to or
     are controlled by Lessee of Lessee's employees, suppliers, shippers,
     customers, contractors or invitees to be loaded, unloaded, or parked in
     areas other than those designated by Lessor of such activities.

          (b) If Lessee permits or allows any of the prohibited activities
     described in this Paragraph 2.6, then Lessor shall have the right, without
     notice, In addition to such other rights and remedies that it may have, to
     remove or tow away the vehicle involved and charge the cost to Lessee,
     which cost shall be Immediately payable upon demand by Lessor.

          (c) Lessor shall at the Commencement Date of this Lease, provide the
     parking facilities required by Applicable Law.

     2.7 Common Areas - Definition. The term "Common Areas" is defined as all
areas and facilities outside the Premises and within the exterior boundary line
of the Industrial Center and interior utility raceways within the Premises that
are provided and designated by the Lessor from time to time for the general
non-exclusive use of Lessor, Lessee and other lessees of the Industrial Center
and their respective employees, suppliers, shippers, customers, contractors and
Invitees, including parking areas, loading and unloading areas, trash areas,
roadways, sidewalks, walkways, parkways, driveways and landscaped areas.

     2.8 Common Areas - Lessee's Rights. Lessor hereby grants to Lessee, for the
benefit of Lessee and its employees, suppliers, shippers, contractors, customers
and invitees, during the term of this Lease, the non-exclusive right to use, in
common with others entitled to such use, the Common Areas as they exist from
time to time, subject to any rights, powers, and privileges reserved by Lessor
under the terms hereof or under the terms of any rules and regulations or
restrictions governing the use of the Industrial Center. Under no circumstances
shall the right herein granted to use the Common Areas be deemed to include the
right to store any property, temporarily or permanently, In the Common Areas.
Any such storage shall be permitted only by the prior written consent of Lessor
or Lessor's designated agent, which consent may be revoked at any time. In the
event that any unauthorized storage shall occur then Lessor shall have the
right, without notice, in addition to such other rights and remedies that it may
have, to remove the property and charge the cost to Lessee, which cost shall be
immediately payable upon demand by Lessor.

     2.9 Common Areas - Rules and Regulations. Lessor or such other person(s) as
Lessor may appoint shall have the exclusive control and management of the Common
Areas and shall have the right, from time to time, to establish, modify, amend
and enforce reasonable Rules and Regulations with respect thereto in accordance
with Paragraph 40. Lessee agrees to abide by and conform to all such Rules and
Regulations, and to cause its employees, suppliers, shippers, customers,
contractors and invitees to so abide and conform. Lessor shall not be
responsible to Lessee for the non-compliance with said rules and regulations by
other lessees of the Industrial Center.

     2.10 Common Areas - Changes. Lessor shall have the right, in Lessor's sole
discretion, from time to time:

     (a) To make changes to the Common Areas, including, without limitation,
         changes in the location, size, shape and number of driveways,
         entrances, parking spaces, parking areas, loading and unloading areas,
         ingress, egress, direction of traffic, landscaped areas, walkways and
         utility raceways;

     (b) To close temporarily any of the Common Areas for maintenance purposes
         so long as reasonable access to the Premises remains available;

     (c) To designate other land outside the boundaries of the Industrial Center
         to be a part of the Common Areas;

     (d) To add additional buildings and improvements to the Common Areas;

     (e) To use the Common Areas while engaged in making additional
         improvements, repairs or alterations to the Industrial Center, or any
         portion thereof; and

     (f) To do and perform such other acts and make such other changes in, to
         or with respect to the Common Areas and Industrial Center as Lessor
         may, in the exercise of sound business judgment, deem to be
         appropriate.

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 an Early Possession Date is specified in Paragraph
1.4 and if Lessee totally or partially occupies the Premises after the Early
Possession Dale but prior to the Commencement Date, the obligation to pay Base
Rent shall be abated for the period of such early occupancy. All other terms of
this Lease, however, (including but not limited to the obligations to pay
Lessee's Share of Common Area Operating Expenses and to carry the insurance
required by Paragraph 8) 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 Delay In Possession. It for any reason Lessor cannot deliver possession
of the Premises to Lessee by the Early Possession Date, If one is specified in
Paragraph 1.4, or if no Early Possession Date is specified, by the Commencement
Date, Lessor shall not be subject to any liability therefor, nor shall such
failure affect the validity of this Lease, or the obligations of Lessee
hereunder, or extend the term hereof, but in such case, Lessee shall not, except
as otherwise provided herein, be obligated to pay rent or perform any other
obligation of Lessee under the terms of this Lease until Lessor delivers
possession of the Premises to Lessee. If possession of the Premises is not
delivered to Lessee within sixty (60) days after the Commencement Date, Lessee
may, at Its option, by notice in writing to Lessor within ten (10) days after
the end of said sixty (60) day period, cancel this Lease, in which event the
parties shall be discharged from all obligations hereunder; provided further,
however, that if such written notice of Lessee is not received by Lessor within
said ten (10) day period, Lessee's right to cancel this Lease hereunder shall
terminate and be of no further force or effect. Except as may be otherwise
provided, and regardless of when the Original Term actually commences, if
possession is not tendered to Lessee when required by this Lease and Lessee does
not terminate this Lease, as aforesaid, the period free of the obligation to pay
Base Rent, if any, that Lessee would otherwise have enjoyed shall run from the
date of delivery of possession and continue for a period equal to the period
during which the Lessee would have otherwise enjoyed under the terms hereof, but
minus any days of delay caused by the acts, changes or omissions of Lessee.

4. Rent.

     4.1 Base Rent. Lessee shall pay Base Rent and other rent or charges, as the
same may be adjusted from time to time, to 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 full month shall be
prorated based upon the actual number of days of the month involved. Payment of
Base Rent and other charges shall be made to Lessor at its address stated herein
or to such other persons or all such other addresses as Lessor may from time to
time designate in writing to Lessee.

     4.2 Common Area Operating Expenses. Lessee shall pay to Lessor during the
term hereof, in addition to the Base Rent, Lessee's Share (as specified in
Paragraph 1.6(b)) of all Common Area Operating Expenses, as hereinafter defined,
during each calendar year of the term of this Lease, in accordance with the
following provisions:

          (a) "Common Area Operating Expenses" are defined, for purposes of this
     Lease, as all costs incurred by Lessor relating to the ownership and
     operation of the Industrial Center, including, but not limited to, the
     following:

              (i)    The operation, repair and maintenance, in neat, clean, good
                     order and condition, of the following:

                     (aa) The Common Areas, including parking areas, loading
                          and unloading areas, trash areas, roadways, sidewalks,
                          walkways, parkways, driveways, landscaped areas,
                          striping, bumpers, irrigation systems, Common Area
                          lighting facilities, fences and gates, elevators and
                          roof.

                     (bb) Exterior signs and any tenant directories.

                     (cc) Fire detection and sprinkler systems.

              (ii)   The cost of water, gas, electricity and telephone to
                     service the Common Areas.

              (iii)  Trash disposal, property  management and security services
                     and the costs of any environmental Inspections.

              (iv)   Reserves set aside for maintenance and repair of Common
                     Areas.

              (v)    Real Property Taxes (as defined in Paragraph 10.2) to be
                     paid by Lessor for the Building and the Common Areas under
                     Paragraph 10 hereof.

              (vi)   The cost of the premiums for the insurance policies
                     maintained by Lessor under Paragraph 8 hereof.

              (vii)  Any deductible portion of an insured loss concerning the
                     Building or the Common Areas.

              (viii) Any other services to be provided by Lessor that are stated
                     elsewhere in this Lease to be a Common Area Operating
                     Expense.

          (b) Any Common Area Operating Expenses and Real Property Taxes that
     are specifically attributable to the Building or to any other building in
     the Industrial Center or to the operation, repair and maintenance thereof,
     shall be allocated entirely to the Building or to such other building.
     However, any Common Area Operating Expenses and Real Property Taxes that
     are not specifically attributable to the Building or to any other building
     or to the operation, repair and maintenance thereof, shall be equitably
     allocated by Lessor to all buildings in the industrial Center.

          (c) The inclusion of the improvements, facilities and services set
     forth in Subparagraph 4.2(a) shall not be deemed to impose an obligation
     upon Lessor to either have said improvements or facilities or to provide
     those services unless the Industrial Center already has the same, Lessor
     already provides the services, or Lessor has agreed elsewhere in this Lease
     to provide the same or some of them.

          (d) Lessee's Share of Common Area Operating Expenses shall be payable
     by Lessee within ten (10) days after a reasonably detailed statement of
     actual expenses is presented to Lessee by Lessor. At Lessor's option,
     however, an amount may be estimated by Lessor [from time to time of
     Lessee's Share of annual Common Area Operating Expenses and the same shall
     be payable monthly or quarterly, as Lessor shall designate, during each
     12-month period of the Lease term, on the same day as the Base Rent is due
     hereunder. Lessor shall deliver to Lessee within sixty (60) days after the
     expiration of each calendar year a reasonably detailed statement showing
     Lessee's Share of the actual Common Area Operating Expenses incurred
     during the preceding year. If Lessee's payments under this Paragraph 4.2(d)
     during said preceding year exceed Lessee's Share as Indicated on said
     statement, Lessee shall be credited the amount of such over-

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MULTI-TENANT-MODIFIED NET
(C) American Industrial Real
Estate Association 1993
                                       -2-

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payment against Lessee's Share of Common Area Operating Expenses next becoming
due. If Lessee's payments under this Paragraph 4.2(d) during said preceding were
less than Lessee's Share as Indicated on said statement, Lessee shall pay to
Lessor the amount of the deficiency within ten (10) days after delivery by
Lessor to Lessee of said statement.

5. Security Deposit. Lessee shall deposit with Lessor upon Lessee's 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. It Lessor uses or applies all or any portion of said Security
Deposit, lessee shall within ten (10) days after written request therefore
deposit monies with Lessor sufficient to restore said Security Deposit to the
full amount required by this Lease. Any time the Base Rent Increases during the
term of this Lease. Lessee shall, upon written request from Lessor, deposit
additional monies with Lessor as an addition to the Security Deposit so that the
total amount of the Security Deposit shall at all times bear the same proportion
to the then current Base Rent as the initial Security Deposit bears to the
initial Base Rent set forth In Paragraph 1.5. 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 monies to be paid by Lessee under this Lease.

6. Use.

     6.1 Permitted Use.

          (a) Lessee shall use and occupy the Premises only for the Permitted
     Use set forth in Paragraph 1.8, or any other legal use which is reasonably
     comparable thereto, and for no other purpose. Lessee shall not use or
     permit the use of the Premises in a manner that Is unlawful, creates waste
     or a nuisance, or that disturbs owners and/or occupants of, or causes
     damage to the Premises or neighboring premises or properties.

          (b) Lessor hereby agrees to not unreasonably withhold or delay its
     consent to any written request by Lessee. Lessee's assignees or subtenants,
     and by prospective assignees and subtenants of Lessee, its assignees and
     subtenants, for a modification of said Permitted Use, so long as the same
     will not impair the structural integrity of the improvements on the
     Premises or in the Building or the mechanical or electrical systems
     therein, does not conflict with uses by other lessees, Is not significantly
     more burdensome to the Premises or the Building 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 after such request 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) Reportable Uses Require Consent. 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) potentially injurious to the public health, safety
     or welfare, the environment, or the Premises; (ii) regulated or monitored
     by any governmental authority; or (iii) a basis for potential 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 or
     by-products thereof. Lessee shall not engage in any activity in or about
     the Premises which constitutes a Reportable Use (as hereinafter defined) of
     Hazardous Substances without the express prior written consent of Lessor
     and compliance in a timely manner (at Lessee's sole cost and expense) with
     all Applicable Requirements (as defined in Paragraph 6.3). "Reportable Use"
     shall mean (i) the installation or use of any above or below ground storage
     tank, (ii) the generation, possession, storage, use, transportation, or
     disposal of a Hazardous Substance that requires a permit from, or with
     respect to which a report, notice, registration or business plan is
     required to be filed with, any governmental authority, and (iii) the
     presence in, on or about the Premises of a Hazardous Substance with respect
     to which any Applicable Laws require that a notice be given to persons
     entering or occupying the Premises or neighboring properties.
     Notwithstanding the foregoing, Lessee may, without Lessor's prior consent,
     but upon notice to Lessor and in compliance with all Applicable
     Requirements, use any ordinary and customary materials reasonably required
     to be used by Lessee in the normal course of the Permitted Use, so long as
     such use is not a Reportable Use and does not expose the Premises or
     neighboring properties to any meaningful risk of contamination or damage or
     expose Lessor to any liability therefor. In addition, Lessor may (but
     without any obligation to do so) condition its consent to any Reportable
     Use of any Hazardous Substance by Lessee upon Lessee's giving Lessor such
     additional assurances as Lessor, in its reasonable discretion, deems
     necessary to protect itself, the public, the Premises and the environment
     against damage, contamination or injury and/or liability therefor,
     including but not limited to the installation (and, at Lessor's option,
     removal on or before Lease expiration or earlier termination) of reasonably
     necessary protective modifications to the Premises (such as concrete
     encasements) and/or the deposit of an additional Security Deposit under
     Paragraph 5 hereof.

          (b) Duty to Inform Lessor: If Lessee knows, or has reasonable cause to
     believe, that a Hazardous Substance has come to be located in, on, under or
     about the Premises or the Building, other than as previously consented to
     by Lessor, Lessee shall immediately give Lessor written notice thereof,
     together with a copy of any statement, report, notice, registration,
     application, permit, business plan, license, claim, action, or proceeding
     given to, or received from, any governmental authority or private party
     concerning the presence. spill, release, discharge of, or exposure to, such
     Hazardous Substance including but not limited to all such documents as may
     be involved in any Reportable Use involving the premises. Lessee shall not
     cause or permit any Hazardous Substance to be spilled or released In, on,
     under or about the Premises (including, without limitation, through the
     plumbing or sanitary sewer system).

          (c) Indemnification. Lessee shall indemnify, protect, defend and hold
     Lessor, its agents, employees, lenders and ground lessor, if any, and the
     Premises, harmless from and against any and all damages, liabilities,
     judgments, costs, claims, liens, expenses, penalties, loss of permits and
     attorneys' and consultants' fees arising out of or involving any Hazardous
     Substance brought onto the Premises by or for Lessee or by anyone under
     Lessee's control. Lessee's obligations under this Paragraph 6.2(c) shall
     include, but not be limited to, the effects of any contamination or injury
     to person, property or the environment created or suffered by Lessee, and
     the cost of investigation (including consultants' and attorney' fees and
     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 its
     obligations under this Lease with respect to Hazardous Substances, unless
     specifically so agreed by Lessor in writing at the time of such agreement.

     6.3 Lessee's Compliance with Requirements. Lessee shall, at Lessee's sole
cost and expense, fully, diligently and in a timely manner, comply with all
"Applicable Requirements," which term is used in this Lease to mean all laws,
rules, regulations, ordinances, directives, covenants, easements and
restrictions of record, permits, the requirements of any applicable fire
insurance underwriter or rating bureau, and the recommendations of Lessor's
engineers and/or consultants, relating in any manner to 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), now in effect or which may hereafter come into
effect. Lessee shall, within five (5) 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
certificates, evidencing Lessee's compliance with any Applicable Requirements
specified by Lessor, and shall immediately upon receipt, notify Lessor in
writing (with copies of any documents involved) of any threatened or actual
claim, notice, citation, warning, complaint or report pertaining to or involving
failure by Lessee or the Premises to comply with any Applicable Requirements.

     6.4 Inspection; Compliance with Law. Lessor, Lessor's agents, employees,
contractors and designated representatives, and the holders of any mortgages,
deeds of trust or ground leases on the Premises ("Lenders") shall have the right
to enter the Premises at any time in the case of an emergency, and otherwise at
reasonable times, for the purpose of inspecting the condition of the Premises
and for verifying compliance by Lessee with this Lease and all Applicable
Requirements (as defined in Paragraph 6.3), and Lessor shall be entitled to
employ experts and/or consultants in connection therewith to advise Lessor with
respect to Lessee's activities, including but not limited to Lessee's
installation, operation, use, monitoring, maintenance, or removal of any
Hazardous Substance on or from the Premises. The costs and expenses of any such
inspections shall be paid by the party requesting same, unless a Default or
Breach of this Lease by Lessee or a violation of Applicable Requirements or a
contamination, caused or materially contributed to by Lessee, is found to exist
or to be imminent, or unless the inspection is requested or ordered by a
governmental authority as the result of any such existing or imminent violation
or contamination. In such case, Lessee shall upon request reimburse Lessor or
Lessor's Lender, as the case may be, for the 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 (Condition), 2.3
     (Compliance with Covenants, Restrictions and Building Code), 7.2 (Lessor's
     Obligations), 9 (Damage or Destruction), and 14 (Condemnation), Lessee
     shall, at Lessees sole cost and expense and at all times, keep the Premises
     and every part thereof in good order, condition and repair (whether or not
     such portion of the Premises requiring repair, 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 specifically serving the Premises, such as plumbing, heating,
     air conditioning, ventilating, electrical, lighting facilities, boilers,
     fired or unfired pressure vessels, fire hose connections if within the
     Premises, fixtures, interior walls, interior surfaces of exterior walls,
     ceilings, floors. windows, doors, plate glass, and skylights, but excluding
     any items which are the responsibility of Lessor pursuant to Paragraph 7.2
     below. 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.

          (b) Lessee shall, at Lessee's sole cost and expense, procure and
     maintain a contract, with copies to Lessor, in customary form and substance
     for and with a contractor specializing and experienced in the inspection,
     maintenance and service of the heating, air conditioning and ventilation
     system for the Premises. However, Lessor reserves the right, upon notice to
     Lessee, to procure and maintain the contract for the heating, air
     conditioning and ventilating systems, and if Lessor so elects, Lessee shall
     reimburse Lessor, upon demand, for the cost thereof.

          (c) If Lessee fails to perform Lessee's obligations under this
     Paragraph 7.1, Lessor may enter upon the Premises after ten (10) days'
     prior written notice to Lessee (except in the case of an emergency, in
     which case no notice shall be required), perform such obligations on
     Lessee's behalf, and put the Premises in good order, condition and repair,
     in accordance with Paragraph 13.2 below.

     7.2 Lessor's Obligations. Subject to the provisions of Paragraphs 2.2
(Condition), 2.3 (Compliance with Covenants, Restrictions and Building Code),
4.2 (Common Area Operating Expenses), 6 (Use), 7.1 (Lessee's Obligations), 9
(Damage or Destruction) and 14 (Condemnation), Lessor, subject to reimbursement
pursuant to Paragraph 4.2, shall keep in good order, condition and repair the
foundations, exterior walls, structural condition of interior bearing walls,
exterior roof, fire sprinkler and/or standpipe and hose (it located in the
Common Areas) or other automatic fire extinguishing system including fire alarm
and/or smoke

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detection systems and equipment, fire hydrants, parking lots, walkways,
parkways, driveways, landscaping, fences, signs and utility systems serving the
Common Areas and all parts thereof, as well as providing the services for which
there is a Common Area Operating Expense pursuant to Paragraph 4.2. Lessor shall
not be obligated to paint the exterior or interior surfaces of exterior walls
nor shall Lessor be obligated to maintain, repair or replace windows, doors or
plate glass of the Premises. Lessee expressly waives the benefit of any statute
now or hereafter in effect which would otherwise afford Lessee the right to make
repairs at Lessor's expense or to terminate this Lease because of Lessor's
failure to keep the Building, Industrial Center or Common Areas in good order,
condition and repair.

     7.3 Utility Installations, Trade Fixtures, Alterations.

          (a) Definitions; Consent Required. The term "Utility Installations" is
     used in this Lease to refer to all air lines, power panels, electrical
     distribution, security, fire protection systems, communications systems,
     lighting fixtures, heating, ventilating and air conditioning equipment,
     plumbing, and fencing in, on or about the Premises. The term "Trade
     Fixtures" shall mean Lessee's machinery and equipment which can be removed
     without doing material damage to the Premises. The term "Alterations" shall
     mean any modification of the improvements on the Premises which are
     provided by Lessor under the terms of this Lease, other than Utility
     Installations or Trade Fixtures. "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 pursuant to Paragraph 7.4(a).
     Lessee shall not make nor cause to be made 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 to the interior of the Premises (excluding the roof) without
     Lessor's consent but upon notice to Lessor, so long as they are not visible
     from the outside of the Premises, do not involve puncturing, relocating or
     removing the roof or any existing walls, or changing or interfering with
     the fire sprinkler or fire detection systems and the cumulative cost
     thereof during the term of this Lease as extended does not exceed
     $2,500.00.

          (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 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 for 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 be in compliance with all Applicable
     Requirements. 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 $2,500.00 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.

          (c) Lien Protection. 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
     mechanic's 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, contest 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 Lessor's attorneys' 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 and
     to cause Lessee to become the owner thereof as hereinafter provided in this
     Paragraph 7.4, all Alterations and Utility Installations made to the
     Premises by Lessee shall be the property of and owned by Lessee, but
     considered a part of the Premises. Lessor may, at any time and at its
     option, elect in writing to Lessee to be the owner of all or any specified
     part of the Lessee-Owned Alterations and Utility Installations. 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
     the Premises and be surrendered with the Premises by Lessee.

          (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 that their installation may have been consented to by
     Lessor. Lessor may require the removal at any time of all or any part of
     any Alterations or Utility Installations made without the required consent
     of Lessor.

          (c) Surrender/Restoration. Lessee shall surrender the Premises by the
     end of the last day of the Lease term or any earlier termination date,
     clean and free of debris and in good operating order, condition and state
     of repair, ordinary wear and tear 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 herein, the
     Premises, as surrendered, shall include the Alterations and 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 Lessee-Owned Alterations and
     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 Requirements and/or good 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 of Premiums: The cost of the premiums for the insurance
policies maintained by Lessor under this Paragraph 8 shall be a Common Area
Operating Expense pursuant to Paragraph 4.2 hereof. Premiums for policy periods
commencing prior to, or extending beyond, the term of this Lease shall be
prorated to coincide with the corresponding Commencement Date or Expiration
Date.

     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, Lessor and any Lender(s) whose names have been provided
     to Lessee in writing (as additional insureds) 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 $1,000,000
     per occurrence with an Additional Insured-Managers or Lessors of Premises"
     endorsement and contain the 'Amendment of the Pollution Exclusion"
     endorsement 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.

          (b) Carried by Lessor. 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. Lessor 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 any Lender(s), insuring against loss or
     damage to the Premises. Such insurance shall be for full replacement cost,
     as the same shall exist from time to time, or the amount required by any
     Lender(s), 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. Lessee-Owned Alterations and Utility Installations, Trade
     Fixtures and Lessee's personal property shall be insured by Lessee pursuant
     to Paragraph 8.4. If the coverage is available and commercially
     appropriate, Lessor's 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 Building
     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 loss,
     but not including plate glass insurance. Said policy or policies shall also
     contain an agreed valuation provision in lieu of any co-insurance 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.

          (b) Rental Value. Lessor shall also 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 any Lender(s), insuring the loss of the full
     rental and other charges payable by all lessees of the Building to Lessor
     for one year (including all Real Property Taxes, insurance costs, all
     Common Area Operating Expenses and any scheduled rental increases). Said
     insurance may 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 co-insurance clause, and the amount of coverage
     shall be adjusted annually to reflect the projected rental income, Real
     Property Taxes, insurance premium costs and other expenses, if any,
     otherwise payable, for the next 12-month period. Common Area Operating
     Expenses shall include any deductible amount in the event of such loss.

          (c) Adjacent Premises. Lessee shall pay for any increase in the
     premiums for the property insurance of the Building and for the Common
     Areas or other buildings in the Industrial Center if said increase is
     caused by Lessee's acts, omissions, use or occupancy of the Premises.

          (d) Lessee's Improvements. Since Lessor is the Insuring Party, 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.

     8.4 Lessee's Property Insurance. Subject to the requirements of Paragraph
8.5, Lessee at its cost shall either by separate policy or, at Lessor's option,
by endorsement to a policy already carried, maintain insurance coverage on all
of Lessee's personal property, Trade Fixtures and Lessee-Owned Alterations and
Utility Installations in, on, or abut the Premises similar in coverage to that
carried by Lessor as the Insuring Party under Paragraph 8.3(a). Such insurance
shall be full replacement cost coverage with a deductible not to exceed $1,000
per occurrence. The proceeds from any such insurance shall be used by Lessee for
the replacement of personal property and the restoration of Trade Fixtures and
Lessee-Owned Alterations and Utility Installations. Upon request from Lessor,
Lessee 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, as set forth
in the most current issue or "Best's Insurance Guide." Lessee shall not do or
permit to be done anything which shall invalidate the insurance policies
referred to in

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this Paragraph 8. Lessee shall cause to be delivered to Lessor, within seven (7)
days after the earlier of the Early Possession Date or the Commencement Date,
certified copies of, or certificates evidencing the existence and amounts of,
the insurance required under Paragraph 8.2(a) and 8.4. No such policy shall be
cancelable 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.

     8.6 Waiver of Subrogation. Without affecting any other rights or remedies,
Lessee and Lessor each hereby release and relieve the other, and waive their
entire right to recover damages (whether in contract or in tort) against the
other, for loss or damage to their property arising out of or incident to the
perils required to be insured against under Paragraph 8. The effect of such
releases and waivers of the right to recover damages shall not be limited by the
amount of insurance carried or required, or by any deductibles applicable
thereto. Lessor and Lessee agree to have their respective insurance companies
issuing property damage insurance waive any right to subrogation that such
companies may have against Lessor or Lessee, as the case may be, so long as the
insurance is not invalidated thereby.

     8.7 Indemnity. Except for Lessor's negligence and/or breach of express
warranties, Lessee shall indemnify, protect, defend and hold harmless the
Premises, 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, loss of permits, attorneys' and consultants'
fees, expenses and/or liabilities arising out of, involving, or in connection
with, the occupancy of the Premises by Lessee, the conduct of Lessee's business,
any act, omission or neglect 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 Lessees 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. 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 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, 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
lessee of Lessor nor from the failure by Lessor to enforce the provisions of any
other lease in the Industrial Center. Notwithstanding Lessors 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
     Premises, other than Lessee-Owned Alterations and Utility Installations,
     the repair cost of which damage or destruction is less than fifty percent
     (50%) of the then Replacement Cost (as defined in Paragraph 9.1(d)) of the
     Premises (excluding Lessee-Owned Alterations and Utility Installations and
     Trade Fixtures) immediately prior to such damage or destruction.

          (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 fifty
     percent (50%) or more of the then Replacement Cost of the Premises
     (excluding Lessee-Owned Alterations and Utility Installations and Trade
     Fixtures) immediately prior to such damage or destruction. In addition,
     damage or destruction to the Building, other than Lessee-Owned Alterations
     and Utility Installations and Trade Fixtures of any lessees of the
     Building, the cost of which damage or destruction is fifty percent (50%) or
     more of the then Replacement Cost (excluding Lessee-Owned Alterations and
     Utility Installations and Trade Fixtures of any lessees of the Building) of
     the Building shall, at the option of Lessor, be deemed to be Premises Total
     Destruction.

          (c) "Insured Loss" shall mean damage or destruction to the Premises,
     other than Lessee-Owned Alterations and Utility Installations and Trade
     Fixtures, 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 Premises Partial Damage - Insured Loss. If 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. In the event, however, that there is a shortage of
insurance proceeds and such shortage is due to the fact that, by reason of the
unique nature of the improvements in the Premises, 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 assurance 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, Lessor 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
Lessor does not receive such funds or assurance within such ten (10) day period,
and if Lessor does not so elect to restore and repair, 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 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), 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 date 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 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 such commitment from Lessee.
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 after the
required funds are available. If Lessee does not give such notice and provide
the funds or assurance thereof within the times 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
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 9.7.

     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 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 (a) exercising such option, and (b) providing Lessor with any shortage
in insurance proceeds (or adequate assurance thereof) needed to make the repairs
on or before the earlier of (f) the date which is ten (10) days after Lessee's
receipt of Lessor's written notice purporting to terminate this Lease, or (ii)
the day prior to the date upon which such option expires. If Lessee duly
exercises such option during such 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 such period, then this
Lease shall terminate as of the date set forth in the first sentence of this
Paragraph 9.5.

     9.6 Abatement of Rent; Lessee's Remedies.

          (a) In the event of (i) Premises Partial Damage or (ii) Hazardous
     Substance Condition for which Lessee is not legally responsible, the Base
     Rent, Common Area Operating Expenses and other charges, if any, payable by
     Lessee hereunder for the period during which such damage or condition, its
     repair, remediation or restoration continues, shall be abated in proportion
     to the degree to which Lessee's use of the Premises is impaired, but not in
     excess of proceeds from insurance required to be carried under Paragraph
     8.3(b). Except for abatement of Base Rent, Common Area Operating Expenses
     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 damage,
     destruction, repair, remediation 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 or 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 Lessees 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 the receipt of such notice, this Lease shall continue in
     full force and effect. "Commence" as used In this Paragraph 9.6 shall mean
     either the unconditional authorization of the preparation of the required
     plans, or the beginning of the actual work on the Premises, whichever
     occurs first.

     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 required by Applicable
Requirements and this Lease shall continue in full force and effect, but subject

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to Lessor's rights under Paragraph 6.2(c) and 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 date 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 excess costs of (a) investigation and remediation of such
Hazardous Substance Condition to the extent required by Applicable Requirements,
over (b) 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 said commitment by Lessee. In such event this Lease shall continue in
full force and effect, and Lessor shall proceed to make such investigation and
remediation as soon as reasonably possible after the required funds are
available. If Lessee does not give such notice and provide the required funds or
assurance thereof within the time period specified above, this Lease shall
terminate as of the date specified in Lessor's notice of termination.

     9.8 Termination - Advance Payments. Upon termination of this Lease pursuant
to this Paragraph 9, Lessor shall return to Lessee any advance payment made by
Lessee to Lessor and so much of Lessee's Security Deposit as has not been, or is
not then required to be, used by Lessor under the terms of this Lease.

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

10. Real Property Taxes.

     10.1 Payment of Taxes. Lessor shall pay the Real Property Taxes, as defined
in Paragraph 10.2, applicable to the Industrial Center, and except as otherwise
provided in Paragraph 10.3, any such amounts shall be included in the
calculation of Common Area Operating Expenses in accordance with the provisions
of Paragraph 4.2.

     10.2 Real Property Tax Definition. 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
or estate taxes) imposed upon the Industrial Center 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 Industrial Center or any portion thereof, 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, fee, 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 Industrial
Center 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. In calculating Real Property Taxes for any calendar year, the Real
Properly Taxes for any real estate tax year shall be included in the calculation
of Real Property Taxes for such calendar year based upon the number of days
which such calendar year and tax year have in common.

     10.3 Additional Improvements. Common Area Operating Expenses shall not
include Real Properly Taxes specified in the tax assessor's records and work
sheets as being caused by additional improvements placed upon the Industrial
Center by other lessees or by Lessor for the exclusive enjoyment of such other
lessees. Notwithstanding Paragraph 10.1 hereof, Lessee shall, however, pay to
Lessor at the time Common Area Operating Expenses are payable under Paragraph
4.2, the entirety of any increase in Real Property Taxes if assessed solely by
reason of Alterations, Trade Fixtures or Utility Installations placed upon the
Premises by Lessee or at Lessee's request.

     10.4 Joint Assessment. If the Building is not separately assessed, Real
Property Taxes allocated to the Building shall be an equitable proportion of the
Real Property Taxes for all of the land and improvements included within the tax
parcel assessed, such proportion to be determined by Lessor from the respective
valuations assigned in the assessor's work sheets or such other information as
may be reasonably available. Lessor's reasonable determination thereof, in good
faith, shall be conclusive.

     10.5 Lessee's Property Taxes. Lessee shall pay prior to delinquency all
taxes assessed against and levied upon Lessee-Owned Alterations and Utility
Installations, Trade Fixtures, furnishings, equipment and all personal property
of Lessee contained in the Premises or stored within the Industrial Center. When
possible, Lessee shall cause its Lessee-Owned Alterations and Utility
Installations, 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 property shall be assessed with Lessor's real property,
Lessee shall pay Lessor the taxes attributable to Lessee's property within ten
(10) days after receipt of a written statement setting forth the taxes
applicable to Lessee's property.

11. Utilities. Lessee shall pay directly for all utilities and services supplied
to the Premises, including but not limited to electricity, telephone, security,
gas and cleaning of the Premises, together with any taxes thereon. If any such
utilities or services are not separately metered to the Premises or separately
billed to the Premises, Lessee shall pay to Lessor a reasonable proportion to be
determined by Lessor of all such charges jointly metered or billed with other
premises in the Building, in the manner and within the time periods set forth in
Paragraph 4.2(d).

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, "assign") or
sublet all or any part of Lessee's interest in this Lease or in the Premises
without Lessor's prior written consent given under and subject to the terms of
Paragraph 36.

          (b) A change in the control of Lessee shall constitute an assignment
requiring Lessor's consent. The transfer, on a cumulative basis, of twenty-five
percent (25%) or more of the voting control of Lessee shall constitute a change
in control for this purpose.

          (c) The involvement of Lessee or its assets in any transaction, or
series of transactions (by way of merger, sale, acquisition, financing,
refinancing, transfer, leveraged buy-out or otherwise), whether or not a formal
assignment or hypothecation of this Lease or Lessee's assets occurs, which
results or will result in a reduction of the Net Worth of Lessee, as hereinafter
defined, by an amount equal to or greater than twenty-five percent (25%) of such
Net Worth of Lessee as it was represented to Lessor at the time of full
execution and delivery of this Lease or at the time of the most recent
assignment to which Lessor has consented, or as it exists immediately prior to
said transaction or transactions constituting such reduction, at whichever time
said Net Worth of Lessee was or is greater, shall be considered an assignment of
this Lease by Lessee to which Lessor may reasonably withhold its consent. "Net
Worth of Lessee" for purposes of this Lease shall be the net worth of Lessee
(excluding any Guarantors) established under generally accepted accounting
principles consistently applied.

          (d) An assignment or subletting of Lessee's interest in this Lease
without Lessor's specific prior written consent shall at Lessor's option, be a
Default curable after notice per Paragraph 13.1, or a non-curable Breach without
the necessity of any notice and grace period. If Lessor elects to treat such
unconsented to assignment or subletting as a non-curable Breach, Lessor shall
have the right to either: (i) terminate this Lease, or (ii) upon thirty (30)
days' written notice ("Lessor's Notice"), increase the monthly Base Rent for the
Premises to the greater of the then fair market rental value of the Premises, as
reasonably determined by Lessor, or one hundred ten percent (110%) of the Base
Rent then in effect. Pending determination of the new fair market rental value,
it disputed by Lessee. Lessee shall pay the amount set forth in Lessor's
Notice, with any overpayment credited against the next Installment(s) of Base
Rent coming due, and any underpayment for the period retroactively to the
effective date of the adjustment being due and payable immediately upon the
determination thereof. Further, in the event of such Breach and rental
adjustment, (i) the purchase price of any option to purchase the Premises held
by Lessee shall be subject to similar adjustment to the then fair market value
as reasonably determined by Lessor (without the Lease being considered an
encumbrance or any deduction for depreciation or obsolescence, and considering
the Premises at its highest and best use and in good condition) or one hundred
ten percent (110%) of the price previously in effect, (ii) any index-oriented
rental or price adjustment formulas contained in this Lease shall be adjusted to
require that the base index be determined with reference to the index applicable
to the time of such adjustment, and (iii) any fixed rental adjustments scheduled
during the remainder of the Lease term shall be increased in the same ratio as
the new rental bears to the Base Rent in effect immediately prior to the
adjustment specified in Lessor's Notice.

          (e) Lessee's remedy for any breach of this Paragraph 12.1 by Lessor
shall be limited to compensatory damages and/or 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, nor (iii) alter the primary liability of Lessee for
the payment of Base Rent and other sums due Lesser hereunder or for the
performance of any other obligations to be performed by Lessee under this Lease.

          (b) Lessor may accept any rent or 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 for 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 or 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 assignee or
sublessee. However, Lessor may consent to subsequent sublettings and assignments
of the sublease or any amendments or modifications thereto without notifying
Lessee or anyone else liable under this Lease or the sublease and without
obtaining their consent, and such action shall not relieve such persons from
liability under this Lease or the sublease.

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

          (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 proposed
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 $1,000 or ten percent (10%) of the monthly Base Rent applicable to
the portion of the Premises which is the subject of the proposed assignment or
sublease, whichever is greater, as reasonable consideration for Lessors
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.

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          (g) The occurrence of a transaction described in Paragraph 12.2(c)
shall give Lessor the right (but not the obligation) to require that the
Security Deposit be increased by an amount equal to six (6) times the then
monthly Base Rent, and Lessor may make the actual receipt by Lessor of the
Security Deposit Increase a condition to Lessor's consent to such transaction.

          (h) Lessor, as a condition to giving its consent to any assignment or
subletting, may require that the amount and adjustment schedule of the rent
payable under this Lease be adjusted to what is then the market value and/or
adjustment schedule for property similar to the Premises as then constituted, as
determined by Lessor.

     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 the foregoing
provision 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 such sublessee, or, until the Breach has
been cured, against Lessor, for any such rents and other charges so paid by said
sublessee to 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 sublessee to attorn to Lessor, in which event Lessor
shall undertake the obligations of the sublessor 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 paid by such sublessee to such sublessor or for any other prior defaults
or breaches of such sublessor 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 under a sublease approved by Lessor 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 sublessee shall
have a right of reimbursement and offset from and against Lessee for any such
Defaults cured by the subleasee.

13. Default; Breach; Remedies.

     13.1 Default; Breach. Lessor and Lessee agree that if an attorney is
consulted by Lessor in connection with a Lessee Default or Breach (as
hereinafter defined), $350.00 is a reasonable minimum sum per such occurrence
for legal services and costs in the preparation and service of a notice of
Default, and that Lessor may include the cost of such services and costs in said
notice as rent due and payable to cure said default. A "Default" by Lessee is
defined as a failure by Lessee to observe, comply with or perform any of the
terms, covenants, conditions or rules applicable to Lessee under this Lease. A
"Breach" by Lessee 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, and shall entitle Lessor to pursue the remedies set
forth in Paragraphs 13.2 and/or 13.3:

          (a) The vacating of the Premises without the intention to reoccupy
same, or the abandonment of the Premises.

          (b) Except as expressly otherwise provided in this Lease, the failure
by Lessee to make any payment of Base Rent, Lessee's Share of Common Area
Operating Expenses, or any other monetary payment required to be made by Lessee
hereunder as and when due, the failure by Lessee to provide Lessor with
reasonable evidence of insurance or surety bond required under this Lease, or
the failure of Lessee to fulfill any obligation under this Lease which endangers
or threatens life or property, where such failure continues for a period of
three (3) days following written notice thereof by or on behalf of Lessor to
Lessee.

          (c) Except as expressly otherwise provided in this Lease, the failure
by Lessee to provide Lessor with reasonable written evidence (in duly executed
original form, if applicable) of (i) compliance with Applicable Requirements per
Paragraph 6.3, (ii) the inspection, maintenance and service contracts required
under Paragraph 7.1(b), (iii) the rescission of an unauthorized assignment or
subletting per Paragraph 12.1, (iv) a Tenancy Statement per Paragraphs 16 or 37,
(v) the subordination or non-subordination of this Lease per Paragraph 30, (vi)
the guaranty of the performance of Lessee's obligations under this Lease if
required under Paragraphs 1.11 and 37, (vii) the execution of any document
requested under Paragraph 42 (easements), or (viii) any other documentation or
information which Lessor may reasonably require of Lessee under the terms of
this lease, where any such failure continues for a period of ten (10) days
following written notice by or on behalf of Lessor to Lessee.

          (d) 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 13.1 (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 it
Lessee commences such cure within said thirty (30) day period and thereafter
diligently prosecutes such cure to completion.

          (e) 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. Code Section 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 thirty (30) days; or (iv) the attachment,
execution or other judicial seizure of substantially all of Lessee's assets
located at the Premises or of Lessee's interest in this Lease, where such
seizure is not discharged within thirty (30) days; provided, however, in the
event that any provision of this Subparagraph 13.1 (e) is contrary to any
applicable law, such provision shall be of no force or effect, and shall not
affect the validity of the remaining provisions.

          (f) The discovery by Lessor that any financial statement of Lessee or
of any Guarantor, given to Lessor by Lessee or any Guarantor, was materially
false.

          (g) If the performance of Lessee's obligations under this Lease is
guaranteed: (i) the death of a Guarantor, (ii) the termination of a Guarantor's
liability with respect to this Lease other than in accordance with the terms of
such guaranty, (iii) a Guarantor's becoming insolvent or the subject of a
bankruptcy filing, (iv) a Guarantor's refusal to honor the guaranty, or (v) a
Guarantor's breach of its guaranty obligation on an anticipatory breach basis,
and Lessee's failure, within sixty (60) days following written notice by or on
behalf of Lessor to Lessee of any such event, to provide Lessor with written
alternative assurances of security, which, when coupled with the then existing
resources of Lessee, equals or exceeds the combined financial resources of
Lessee and the Guarantors that existed at the lime of execution of this Lease.

     13.2 Remedies. If Lessee fails to perform any affirmative duty or
obligation of Lessee under this lease, within ten (10) days after written notice
to Lessee (or in case of an emergency, without notice), 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 own
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 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 approximately caused by the Lessee's failure to perform its
obligations under this Lease or which in the ordinary course of things would be
likely to result therefrom, including but not limited to the cost of recovering
possession of the Premises, expenses of retailing, including necessary
renovation and alteration of the Premises, reasonable attorneys' fees, and that
portion of any leasing commission paid by Lessor in connection with this Lease
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 immediately preceding
sentence shall be computed by discounting such amount at the discount rate of
the Federal Reserve Bank of San Francisco or the Federal Reserve Bank District
in which the Premises are located at the time 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 13.2. 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 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 Subparagraph
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 Subparagraph
13.1(b),(c) or (d). In such case, the applicable grace period under the unlawful
detainer statue shall run concurrently after the one such statutory notice, and
the failure of Lessee to cure the Default within the greater of the two (2) such
grace periods shall constitute both an unlawful detainer and a Breach of this
Lease entitling 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) offer Lessee's Breach and
recover the rent as it becomes due, provided Lessee has the right to sublet or
assign, subject only to reasonable limitations. Lessor and Lessee agree that the
limitations an assignment and subletting in this Lease 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 this 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 or judicial decisions of the state wherein the Premises are located.

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          (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 or by reason of Lessee's occupancy of the Premises.

     13.3 Inducement Recapture In Event of Breech. Any agreement by Lessor for
free or abated rent or other charges applicable to the Premises, or for the
giving or paying by Lessor to or for Lessee of any cash or other bonus,
inducement or consideration for Lessee's entering into this Lease, all of which
concessions are hereinafter referred to as "Inducement Provisions" shall be
deemed conditioned upon Lessee's full and faithful performance of all of the
terms, covenants and conditions of this Lease to be performed or observed by
Lessee during the term hereof as the same may be extended. Upon the occurrence
of a Breach (as defined in Paragraph 13.1) of this Lease by Lessee, any such
Inducement Provision shall automatically be deemed deleted from this Lease and
of no further force or effect, and any rent, other charge, bonus, inducement or
consideration theretofore abated, given or paid by Lessor under such an
Inducement Provision shall be immediately due and payable by Lessee to Lessor,
and recoverable by Lessor, as additional rent due under this Lease,
notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by
Lessor of rent or the cure of the Breach which initiated the operation of this
Paragraph 13.3 shall not be deemed a waiver by Lessor of the provisions of this
Paragraph 13.3 unless specifically so stated in writing by Lessor at the lime of
such acceptance.

     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 deed of trust covering the Premises.
Accordingly, If any installment of rent or other sum due from Lessee shall not
be received by Lessor or Lessor's designee within ten (10) days after such
amount shall be due, then, without any requirement for notice to Lessee, Lessee
shall pay to Lessor a late charge equal to 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 event 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 other 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 any Lender(s) whose name and address shall have been furnished to 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 more than ten percent (10%) of the floor
area of the Premises, or more than twenty-five percent (25%) of the portion of
the Common Areas designated for Lessee's parking, is taken by condemnation,
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 Premises. No reduction of Base
Rent shall occur if the condemnation does not apply to any portion of the
Premises. 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 of 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. 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 Lessee's Share of the legal and
other expenses incurred by Lessor in the condemnation matter, repair any damage
to the Premises caused by such condemnation authority. Lessee shall be
responsible for the payment of any amount in excess of such net severance
damages required to complete such repair.

15. Brokers' Fees.

     15.1 Procuring Cause. The Broker(s) named in Paragraph 1.10 is/are the
procuring cause of this Lease.

     15.2 Additional Terms. Unless Lessor and Broker(s) have otherwise agreed in
writing, Lessor agrees that: (a) if Lessee exercises any Option (as defined in
Paragraph 39.1) granted under this Lease or any Option subsequently granted, or
(b) it Lessee acquires any rights to the Premises or other premises in which
Lessor has an interest, or (c) if Lessee remains in possession of the Premises
with the consent of Lessor after the expiration of the term of this Lease after
having failed to exercise an Option, or (d) if said Brokers are the procuring
cause of any other lease or sale entered into between the Parties pertaining to
the Premises and/or any adjacent property in which Lessor has an interest, or
(e) if Base Rent is increased, whether by agreement or operation of an
escalation clause herein, then as to any of said transactions, Lessor shall pay
said Broker(s) a fee in accordance with the schedule of said Broker(s) in effect
at the time of the execution of this Lease.

     15.3 Assumption of Obligations. Any buyer or transferee of Lessor's
interest in this Lease, whether such transfer is by agreement or by operation of
law, shall be deemed to have assumed Lessor's obligation under this Paragraph
15. Each Broker shall be an intended third party beneficiary of the provisions
of Paragraph 1.10 and of this Paragraph 15 to the extent of its interest in any
commission arising from this Lease and may enforce that right directly against
Lessor and its successors.

     15.4 Representations and Warranties. 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 as named in Paragraph 1.10(a) 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 Broker(s) is entitled to any commission or finder's fee in
connection with said transaction. Lessee and Lessor do each hereby agree to
indemnity, 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 by reason of any dealings or actions of
the indemnifying Party, including any costs, expenses, and/or attorneys' fees
reasonably incurred with respect thereto.

16. Tenancy and Financial Statements.

     16.1 Tenancy Statement. Each Party (as "Responding Party") shall within ten
(10) days after written notice from the other Party (the "Requesting Party")
execute, acknowledge and deliver to the Requesting Party a statement in writing
in a form similar to the then most current "Tenancy Statement" form published by
the American Industrial Real Estate Association, plus such additional
information, confirmation and/or statements as may be reasonably requested by
the Requesting Party.

     16.2 Financial Statement. If Lessor desires to finance, refinance, or sell
the Premises or the Building, or any part thereof, Lessee and all Guarantors
shall deliver to any potential lender or purchaser designated by Lessor such
financial statements of Lessee and such Guarantors as may be reasonably required
by such lender or purchaser, including but not limited to Lessee's financial
statements for the past three (3) years. 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. 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 15.3, 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
other provision hereof.

19. Interest on Past-Due Obligations. Any monetary payment due Lessor hereunder,
other than late charges, not received by Lessor within ten (10) days following
the date on which it was due, shall bear interest from the date due at the
prime rate charged by the largest state chartered bank in the state in which
the Premises are located plus four percent (4%) per annum, bill not exceeding
the maximum rate allowed by law, in addition to the potential 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 contains all
agreements between the Parties with respect to any matter mentioned herein, and
no other prior or contemporaneous agreement or understanding shall be effective.
Lessor and Lessee each represents and warrants to the Brokers that it has made,
and is relying solely upon, its own investigation as to the nature, quality,
character and financial responsibility of the other Party to this Lease and as
to the nature, quality and character of the Premises. Brokers have no
responsibility with respect thereto or with respect to any default or breach
hereof by either Party. Each Broker shall be an intended third party beneficiary
of the provisions of this Paragraph 22.

23. Notices.

     23.1 Notice Requirements. 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
during normal business hours, 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 Date of Notice. 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 dale 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 Slates Express Mail or overnight courier that
guarantees next day

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delivery shall be deemed given twenty-four (24) hours after delivery of the same
to the United States Postal Service or courier. It any notice is transmitted by
facsimile transmission or similar means, the same shall be deemed served or
delivered upon telephone or facsimile confirmation of receipt of the
transmission thereof, provided a copy is also delivered via delivery or mail. If
notice is received on a Saturday or a Sunday or a legal holiday, it shall be
deemed received on the next business day.

24. Waivers. No waiver by Lessor of the Default or Breach of any term, covenant
or condition hereof by Lessee, 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 any other term, covenant or condition hereof. Lessor's consent
to, or approval of, any such 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 Default or Breach by Lessee of
any provision hereof. 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 for payment 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. In the event that Lessee holds over in violation of this Paragraph
26 then the Base Rent payable from and after the time of the expiration or
earlier termination of this Lease shall be increased to two hundred percent
(200%) of the Base Rent applicable during the month immediately preceding such
expiration or earlier termination. Nothing contained herein shall be construed
as a consent by Lessor to any holding over by Lessee.

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

28. Covenants and Conditions. 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. 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 such
obligation, Lessee will give any Lender whose name and address have been
furnished Lessee in writing for such purpose notice of Lessor's default pursuant
to Paragraph 13.5. 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, Lessee agrees to attorn to a Lender or 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
prior to acquisition of ownership, (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 month's rent.

     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 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. Attorneys' Fees. It any Party or Broker brings an action or proceeding to
enforce the terms hereof or declare rights hereunder, the Prevailing Party (as
hereafter defined) in any such proceeding, action, or appeal thereon, shall be
entitled to reasonable attorneys' 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
attorneys' fee award shall not be computed in accordance with any court fee
schedule, but shall be such as to fully reimburse all attorneys' fees reasonably
incurred. Lessor shall be entitled to attorneys' fees, costs and expenses
incurred in 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. Broker(s) shall be intended
third party beneficiaries of this Paragraph 31.

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 for the purpose of showing the same to
prospective purchasers, lenders, or lessees, and making such alterations,
repairs, improvements or additions to the Premises or to the Building, 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 eighty (180) 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.

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

34. Signs. Lessee shall not place any sign upon the exterior of the Premises or
the Building, except that Lessee may, with Lessor's prior written consent,
install (but not on the roof) such signs as are reasonably required to advertise
Lessee's own business so long as such signs are in a location designated by
Lessor and comply with Applicable Requirements and the signage criteria
established for the Industrial Center by Lessor. The installation of any sign on
the Premises by or for Lessee shall be subject to the provisions of Paragraph 7
(Maintenance, Repairs, Utility Installations, Trade Fixtures and Alterations).
Unless otherwise expressly agreed herein, Lessor reserves all rights to the use
of the roof of the Building, and the right to install advertising signs on the
Building, including the roof, which do not unreasonably interfere with the
conduct of Lessee's business; Lessor shall be entitled to all revenues from such
advertising signs.

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's election to have such
event constitute the termination of such interest.

36. Consents.

          (a) Except for Paragraph 33 hereof (Auctions) or as otherwise provided
herein, wherever in this Lease the consent of a Party is required to an act by
or for the other Party, such consent shall not be unreasonably withheld or
delayed. Lessor's actual reasonable costs and expenses (including but not
limited to architects', attorneys', engineers' and 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, shall be paid by Lessee to Lessor upon receipt of an
invoice and supporting documentation therefor. In addition to the deposit
described in Paragraph 12.2(e), Lessor may, as a condition to considering any
such request by Lessee, require that Lessee deposit with Lessor an amount of
money (in addition to the Security Deposit held under Paragraph 5) reasonably
calculated by Lessor to represent the cost Lessor will incur in considering and
responding to Lessee's request. Any unused portion of said deposit shall be
refunded to Lessee without interest. Lessor's consent to any act, assignment of
this Lease or subletting of the Premises by Lessee shall not constitute an
acknowledgment 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 impositions 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. Guarantor.

     37.1 Form of Guaranty. If there are to be any Guarantors of this Lease per
Paragraph 1.11, the form of the guaranty to be executed by each such Guarantor
shall be in the form most recently published by the American Industrial Real
Estate Association, and each such Guarantor shall have the same obligations as
Lessee under this lease, including but not limited to the obligation to provide
the Tenancy Statement and information required in Paragraph 16.

     37.2 Additional Obligations of Guarantor. It shall constitute a Default of
the Lessee under this Lease if any such Guarantor fails or refuses, upon
reasonable request by Lessor to give: (a) evidence of the due execution of the
guaranty called for by this Lease, including the authority of the Guarantor (and
of the party signing on Guarantor's behalf) to obligate such Guarantor on said
guaranty, and resolution of its board of directors authorizing the making of
such guaranty, together with a certificate of incumbency showing the signatures
of the persons authorized to sign on its behalf, (b) current financial
statements of Guarantor as may from time to time be requested by Lessor, (c) a
Tenancy Statement, or (d) written confirmation that the guaranty is still in
effect.

38. Quiet Possession. Upon payment by Lessee of the rent for the Premises and
the 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 for the entire term hereof subject to all of the
provisions of this Lease.

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39. Options.

     39.1 Definition. As used in this Lease, the word "Option" has the following
meaning: (a) the right to extend the form of this Lease or to renew this Lease
or to extend or renew any lease that Lessee has on other property of Lessor; (b)
the right of first refusal to lease the Premises or the right of first offer to
lease the Premises or the right of first refusal to lease other property of
Lessor or the right of first offer to lease other property of Lessor; (c) the
right to purchase the Premises, or the right of first refusal to purchase the
Premises, or the right of first offer to purchase the Premises, or the right to
purchase other property of Lessor, or the right of first refusal to purchase
other property of Lessor, or the right of first offer to purchase other property
of Lessor.

     39.2 Options Personal 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.

     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.

          (a) Lessee shall have no right to exercise an Option notwithstanding
any provision in the grant of Option to the contrary: (1) during the period
commencing with the giving of any notice of Default under Paragraph 13.1 and
continuing until the noticed Default is cured, or (ii) during the period of time
any monetary obligation due Lessor from Lessee is unpaid (without regard to
whether notice thereof is given Lessee), or (iii) during the time Lessee is in
Breach of this Lease, or (iv) in the event that Lessor has given to Lessee three
(3) or more notices of separate Defaults under Paragraph 13.1 during the twelve
(12) month period immediately preceding the exercise of the Option, whether or
not the Defaults are cured.

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

          (c) All rights of Lessee under the provisions of an Option shall
terminate and be of no further force or effect, notwithstanding Lessee's due and
timely exercise of the Option, it, after such exercise and during the term of
this Lease, (i) Lessee fails to pay to Lessor a monetary obligation of Lessee
for a period of thirty (30) days after such obligation becomes due (without any
necessity of Lessor to give notice thereof to Lessee), or (ii) Lessor gives to
Lessee three (3) or more notices of separate Defaults under Paragraph 13.1
during any twelve (12) month period, whether or not the Defaults are cured, or
(iii) if Lessee commits a Breach of this Lease.

40. Rules and Regulations. Lessee agrees that it will abide by, and keep and
observe all reasonable rules and regulations ("Rules and Regulations") which
Lessor may make from time to time for the management, safety, care, and
cleanliness of the grounds, the parking and unloading of vehicles and the
preservation of good order, as well as for the convenience of other occupants or
tenants of the Building and the Industrial Center and their invitees.

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

42. Reservations. Lessor reserves the right, from time to time, to grant,
without the consent or joinder of Lessee, such easements, rights of way, utility
raceways, and dedications that Lessor deems necessary, and to cause the
recordation of parcel maps and restrictions, so long as such easements, rights
of way, utility raceways, dedications, maps and restrictions do not reasonably
interfere with the use of the Premises by Lessee. 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.

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

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

     This lease has been prepared for submission to your attorney who will
     review the document and assist you to determine whether your legal rights
     are adequately protected. Cutler Commercial is not authorized to give legal
     or tax advice; no representation or recommendation is made by Cutler
     Commercial or its agents or employees as to the legal sufficiency, legal
     effect or tax consequences of this document or any transaction relating
     thereto. These are questions for your attorney with whom you should consult
     before signing this document.

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

BY LESSOR:              CITY PARK LLC
(For Rental Payments)   C/O 2150 EAST HIGHLAND STE 207
                        PHOENIX ARIZONA 85016-4721

------------------------------------------------------
Date:      CLIFFORD J. CUTLER, ITS MANAGING MEMBER

NAME PRINTED: CLIFFORD J. CUTLER, ITS MANAGING MEMBER
BY LESSEE:              CNF, INC.
(For Notices)           7722 EAST GRAY ROAD
                        SCOTTSDALE AZ 85260

BY: /s/ Illegible                               4/7/98
------------------------------------------------------

NAME PRINTED: DAVID THOMPSON, ITS CFO

BY: /s/ David Thompson                          4/7/98
------------------------------------------------------

NAME PRINTED: PAUL CHARLES, ITS PRESIDENT

BY: /s/ Paul Charles                            4/7/98
------------------------------------------------------

                  MULTI-TENANT MODIFIED NET PAGE 11/NET-MULTI

<PAGE>

                                LEASE ADDENDUM TO
         STANDARD INDUSTRIAL/COMMERCIAL MULTI-TENANT LEASE MODIFIED NET

THIS LEASE ADDENDUM, pertaining to that certain Lease dated for reference
purposes only, April 01, 1998 , made by and between CITY PARK LLC ("Lessor") and
CNF, INC. ("Lessee"), (collectively the "Parties," or individually a "Party")
for 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 7722 EAST GRAY ROAD, SUITE B, SCOTTSDALE, located in the
county of MARICOPA, State of ARIZONA with zip code 85260,

Lessor and Lessee agree to the following additional provisions:

1.)  THE PREMISES ARE THOSE SHOWN ON EXHIBIT A (FLOOR PLAN) ATTACHED HERETO AND
     MADE A PART HEREOF. THE PREMISES SHALL CONSIST OF AN AREA OF APPROXIMATELY
     21,976 SQUARE FEET OF GROSS RENTABLE AREA ON THE GROUND AND FIRST FLOORS OF
     THE BUILDING. THE EXACT AREA OF THE PREMISES SHALL BE CALCULATED ACCORDING
     TO B.O.M.A. STANDARD BY THE LESSOR'S ARCHITECT.

2.)  LESSOR'S IMPROVEMENTS, LESSOR, AT LESSOR'S EXPENSE, SHALL PERFORM THE
     FOLLOWING WORK TO BE COMPLETED AS SOON AS REASONABLY POSSIBLE:

     A.)  WAREHOUSE - FIRST FLOOR

          1.)  ALL AIR CONDITIONING AND HEATING UNITS, SHIPPING DOORS,
               MECHANICAL IN GOOD WORKING CONDITION.

          2.)  DELIVER ENTIRE WAREHOUSE FLOOR IN "BROOM-CLEAN" CONDITION.

          3.)  ERECT A DIVISION WALL (ACCORDING TO CITY AND STATE CODE) ALONG
               COLUMN LINE AS SHOWN ON PLAN ATTACHED.

     B.)  OFFICES - SECOND FLOOR

          1.)  TOUCH UP PAINT ON OFFICE WALLS WHERE NECESSARY.

          2.)  DELIVER ALL CARPET IN SHAMPOOED AND VACUUM-CLEANED CONDITION.

3.)  FIRST RIGHT OF REFUSAL TO LEASE ADJACENT SPACE.
     PROVIDED LESSEE IS NOT IN DEFAULT OF ANY TERM, CONDITION, RULE OR
     REGULATION OF THIS LEASE, LESSEE SHALL HAVE THE RIGHT OF FIRST REFUSAL TO
     LEASE ANY ADJACENT SPACE THAT MAY BE OR BECOME AVAILABLE DURING THE TERM OF
     THE LEASE.

     SHOULD LESSOR RECEIVE A BONA FIDE OFFER TO LEASE THAT IS ACCEPTABLE TO
     LESSOR REGARDING ADJACENT SPACE WITHIN THE BUILDING, LESSOR MUST NOTIFY
     LESSEE IN WRITING OF HIS RECEIPT OF SUCH OFFER INCLUDING ITS TERMS AND
     CONDITIONS WITHIN TWENTY-FOUR (24) HOURS. LESSEE SHALL THEN HAVE THREE (3)
     BUSINESS DAYS TO RESPOND TO LESSOR. SHOULD LESSEE ADVISE LESSOR OF HIS
     ACCEPTANCE, AND LESSEE SHALL EXERCISE ITS FIRST RIGHT OF REFUSAL, THE LEASE
     TERM SHALL COMMENCE ON THE FIRST OF THE MONTH NEAREST THIRTY DAYS AFTER
     LESSEE EXERCISES ITS FIRST RIGHT OF REFUSAL AND EXPIRE ON THE SAME DATE AS
     THIS LEASE AGREEMENT.

4.)  OPTION TO PURCHASE:
     PROVIDED LESSEE IS NOT IN DEFAULT OF ANY TERM, CONDITION, RULE OR
     REGULATION OF THIS LEASE AGREEMENT, LESSEE SHALL HAVE THE OPTION TO
     PURCHASE THE BUILDING, TOGETHER WITH THE 1.62 ACRES OF LAND UPON WHICH IT
     IS SITUATED IDENTIFIED BY TAX PARCEL NO. 162-35-620 (HEREINAFTER
     COLLECTIVELY REFERRED TO AS THE "PROPERTY" FOR A PURCHASE PRICE OF TWO
     MILLION FOUR HUNDRED THOUSAND DOLLARS AND N0/100 ($2,400,000.00). THIS
     OPTION TO PURCHASE THE PROPERTY SHALL BE EXERCISABLE AT ANY TIME DURING THE
     FIRST TWELVE (12) MONTHS OF THE LEASE TERM BY NOTIFYING LESSOR OF LESSEE'S
     INTENT TO DO SO IN WRITING. FOLLOWING LESSOR'S RECEIPT OF WRITTEN NOTICE OF
     LESSEE'S EXERCISING ITS OPTION, THERE SHALL BE A THIRTY (30) DAY PERIOD
     WITHIN WHICH LESSEE AND LESSOR SHALL HAVE TO EXECUTE A PURCHASE AND SALE
     AGREEMENT CONTAINING USUAL REPRESENTATIONS, WARRANTIES, CONDITIONS AND
     ESCROW INSTRUCTIONS NORMALLY FOUND IN SUCH AN AGREEMENT. CLOSE OF ESCROW
     SHALL TAKE PLACE WITHIN SIXTY (60) DAYS THEREAFTER. ESCROW INSTRUCTIONS
     SHALL CONTAIN A COMMISSION OF FOUR PERCENT (4%) PAYABLE TO THE BROKERS (50%
     TO CUTLER COMMERCIAL AND 50% TO CORE/JACKSON) UPON RECORDING OF THE SALE BY
     ESCROW AGENTS LESS THE UNEARNED INCREMENT FROM THE LEASING COMMISSION.

     FURTHERMORE, SHOULD LESSOR RECEIVE A BONA FIDE OFFER TO PURCHASE THAT IS
     ACCEPTABLE FOR THE SALE OF THE PROPERTY, LESSOR MUST NOTIFY IN WRITING THE
     LESSEE OF RECEIPT OF SUCH OFFER, INCLUDING ITS TERMS AND CONDITIONS WITHIN
     TWENTY-FOUR (24) HOURS. THE LESSEE SHALL THEN HAVE THREE (3) CALENDAR DAYS
     TO CONTEMPLATE SAID OFFER AND EXERCISE HIS FIRST RIGHT OF REFUSAL BY
     NOTIFYING THE LESSOR IN WRITING OF HIS ACCEPTANCE OF SAID OFFER. SHOULD THE
     LESSEE ADVISE LESSOR OF HIS ACCEPTANCE OF SAME, THEN THE SAME PROCEDURE AS
     STATED ABOVE FOR THE EXERCISING OF THE OPTION TO PURCHASE SHALL APPLY, AND
     THE TWO PARTIES SHALL PROCEED TO CLOSE OF ESCROW.

             MULTI-TENANT MODIFIED NET PAGE 11/NET-NETADD-CNF.040198

<PAGE>

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

BY LESSOR:         CITY PARK LLC

-------------------------------------------------------
Date:           CLIFFORD J. CUTLER, ITS MANAGING MEMBER

NAME PRINTED: CLIFFORD J. CUTLER, ITS MANAGING MEMBER

BY LESSEE:         CNF, INC.

BY:                                            4/7/98
-------------------------------------------------------
                                                Date

NAME PRINTED: DAVID THOMPSON, ITS CFO

BY:                                            4/7/98
-------------------------------------------------------
                                                Date

NAME PRINTED: PAUL CHARLES, ITS PRESIDENT

BY:                                            4/7/98
-------------------------------------------------------
                                                Date

             MULTI-TENANT MODIFIED NET PAGE 11/NET-NETADD-CNF.040198

<PAGE>

                                    EXHIBIT A
                                    GUARANTEE

For value received, the undersigned absolutely guarantees all payments under
that certain Lease Agreement dated for reference purposes only, April 01, 1998
by and between CITY PARK LLC (as Lessor) and CNF, INC. (as Lessee) for the
premises known as 7722 EAST GRAY ROAD,, SUITE B, SCOTTSDALE AZ 85260, executed
by DAVID THOMPSON, ITS CFO and PAUL CHARLES, ITS PRESIDENT. If obligor breaches
any terms of the Lease Agreement, the undersigned will be liable thereon demand.

The undersigned waive notice of acceptance, notice of nonpayment, protest and
notice of protest with respect to the obligation covered hereunder.

This guarantee shall continue in force and apply to all transactions
notwithstanding any change in the makeup of the debtor's corporate board and
officers or board member.

Liability under this Agreement shall commence on the date of the Lease, and
shall continue the obligation guaranteed hereunder is completely discharged.

This guarantee shall continue in effect notwithstanding any legal disability of
the debtor to incur the indebtedness or obligation in full or in part.

The creditor may proceed against any or all of the guarantors for any amount
guaranteed hereunder whether action is brought against the debtor or whether the
debtor is joined in any such action or actions or not.

Creditor may without notice sell, assign or transfer all the indebtedness or
obligation covered hereunder. In that event, each and every immediate and
successive assignee, transferee, or holder of all or any part of the
indebtedness or obligation shall have the right to enforce this guarantee by
legal action or otherwise for the benefit of such assignee, transferee, or
holder as fully as if such assignee, transferee, or holder were herein named
specifically given such right and power.

Should suit be brought to recover on this guarantee, the guarantor(s) promise to
pay as attorney's fees, a reasonable amount additional to the amount found due
hereunder.

GUARANTOR:                 /s/ David Thompson
                           -----------------------------------
                           DAVID THOMPSON, ITS CFO

SOCIAL SECURITY NO:        ###-##-####

GUARANTOR:                 /s/ Paul Charles
                           -----------------------------------
                           PAUL CHARLES, ITS PRESIDENT

HOME ADDRESS:                    15645 CALLE ENRIQUE, MORGAN HILL, CA 95037

NEW ADDRESS:                     7722 EAST GRAY ROAD, SUITE B
                                 SCOTTSDALE, AZ 85260

                   MUTLI-TENANT MODIFIED NET PAGE 1/NET-MULTI

<PAGE>
                              DISCLOSURE REGARDING
                        REAL ESTATE AGENCY RELATIONSHIPS
                         (As required by the Civil Code)

When you enter into a discussion with a real estate agent regarding a real
estate transaction, you should from the outset understand what type of agency
relationship or representation you wish to have with the agent in the
transaction.

LESSOR or SELLER'S AGENT

A Lessor or Seller's agent under a listing agreement with Lessor or Seller acts
as the agent for the Lessor or Seller only. A Lessor or Seller's agent or a
subagent of that agent has the following affirmative obligations:

To the Lessor or Seller:

     (a)  A fiduciary duty of utmost care, integrity, honesty, and loyalty in
          dealings with the Lessor or Seller.

To the Lessee/Buyer and Lessor/Seller:

     (a)  Diligent exercise of reasonable skill and care in performance of
          agent's duties.

     (b)  A duty of honest and fair dealing and good faith.

     (c)  A duty to disclose all facts known to the agent materially affecting
          the value or desirability of property that are not known to, or within
          the diligent attention and observation of the parties.

An agent is not obligated to reveal to either party any confidential information
obtained from the other party which does not involve the affirmative duties set
forth above.

LESSEE OR BUYER'S AGENT:

A leasing/selling agent can with a Buyer's consent, agree to act as agent for
the Buyer only. In these situations, the agent is not the Lessor or Seller's
agent, even if by agreement the agent may receive compensation for services
rendered, either in full or in part from the Seller. An agent acting only for a
Buyer has the following affirmative obligations:

To the Lessee or Buyer;

     (a)  A fiduciary duty of utmost care, integrity, honesty, and loyalty in
          dealings with the Lessee or Buyer.

To the Lessee/Buyer and Lessor/Seller:

     (a)  Diligent exercise of reasonable skill and care in performance of
          agent's duties.

     (b)  A duty of honest and fair dealing and good faith.

     (c)  A duty to disclose all facts known to the agent materially affecting
          the value or desirability of property that are not known to, or within
          the diligent attention and observation of the parties.

An agent is not obligated to reveal to either party any confidential information
obtained from the other party which does not involve the affirmative duties set
forth above.

AGENT REPRESENTING BOTH LESSOR/SELLER AND LESSEE/BUYER:

A real estate agent, either acting directly or through one or more associate
licensees, can legally be the agent of both the Lessor/Seller and the
Lessee/Buyer in a transaction, but only with the knowledge and consent of both
the Lessor/Seller and the Lessee/Buyer.

In a dual agency situation, the agent has the following affirmative obligations
to both the Lessor/Seller and the Lessee/Buyer:

     (a)  A fiduciary duty of utmost care, integrity, honesty, and loyalty in
          dealings with the Lessee or Buyer.

     (b)  Other duties to the Lessor/Seller and the Lessee/Buyer as stated above
          in their respective sections.

In representing both Lessor/Seller and Lessee/Buyer, the agent may not, without
the express permission of the respective party, disclose to the other party that
the Lessor/Seller will accept a price than the listing price or the Lessee/Buyer
will pay a price greater than the price offered.

Throughout your real property transaction you may receive more than one
disclosure form, depending upon the number of agents assisting in the
transaction. The law requires each agent with whom you have more than a casual
relationship to present you with this disclosure form. You should read its
contents each time it is presented to you, considering the relationship between
you and the real estate agent in your specific transaction.

<PAGE>

                                  CONFIRMATION
                        REAL ESTATE AGENCY RELATIONSHIPS

Subject Property Address: 7722 EAST GRAY ROAD B SCOTTSDALE AZ 85260
The following agency relationship(s) is/are confirmed for this transaction:

<TABLE>
<CAPTION>

CUTLER COMMERCIAL                                 CORE JACKSON (MILIC):
---------------------------------------------     ------------------------------------------------
<S>                                               <C>
is the agent of (check one)                       is the agent of (check one)

/ / the Lessor/Seller exclusively; or             / / the Lessee/Buyer exclusively; or
/ / both the Lessor/Seller and Lessee/Buyer       / / the Lessor/Seller exclusively; or
                                                  / / both  the Lessee/Buyer and
                                                      Lessor/Seller

I/WE ACKNOWLEDGE RECEIPT OF A COPY OF THIS CONFIRMATION.

CITY PARK LLC

Lessor/Seller:                                    Lessor/Seller:
              ----------------------------------                ----------------------------------

Date:                                             Date:
     -------------------------------------------       -------------------------------------------

CNF, INC.

Lessee/Buyer: /s/ Paul Charles                    Lessee/Buyer: /s/ David Thompson
             -----------------------------------               -----------------------------------

Date:                 4/7/98                      Date:                   4/6/98
     -------------------------------------------       -------------------------------------------

CUTLER COMMERCIAL:

BY:                                                                  DATE:
   ----------------------------------------------------------------       ------------------------

CORE JACKSON (MILIC):

BY:                                                                  DATE:
   ----------------------------------------------------------------       ------------------------
</TABLE>

A real estate broker is qualified to advise on real estate. If you desire Legal
Advice, please consult your attorney.

BROKERS FILE NO:                            BROKER INITIALS:

----------------------------                -------------------[LOGO]

                             DISTRIBUTION AGREEMENT

     THIS DISTRIBUTION AGREEMENT ("Agreement"), is entered into this 19th day of
February, 1998, by and between INGRAM MICRO INC. ("Ingram"), a Delaware
corporation, having its principal place of business at 1600 E. St. Andrew Place,
Santa Ana, California 92705, and CNF, Inc. ("Vendor"), a California corporation,
having its principal place of business at 15345 Calle Enrique, Morgan Hill,
California 95037. The parties desire to and hereby do enter into a
distributor/supplier relationship, the governing terms and mutual promises of
which are set out in this Agreement.

1. DISTRIBUTION RIGHTS

1.1 Territory Vendor grants to Ingram, including its affiliates for resale, and
Ingram accepts, the nonexclusive right to distribute worldwide all computer
products produced and/or offered by Vendor ("Product") during the term of this
Agreement. Ingram shall have the right to purchase, sell and ship to any
reseller within the territory or to Ingram's affiliate, or at Vendor's option
Ingram's affiliate may purchase direct from Vendor.

1.2 Product Vendor agrees to make available and to sell to Ingram such Product
as Ingram shall order from Vendor at the prices and subject to the terms set
forth in this Agreement. Ingram shall not be required to purchase any minimum
amount or quantity of the Product.

2. TERM AND TERMINATION

2.1 Term The initial term of this Agreement shall be for a period of twelve (12)
months, beginning on the date first above written. Vendor shall achieve and
maintain an average sell thru rate of fifty thousand dollars ($50,000) per month
during the initial term, otherwise Ingram will review for possible contract
termination. In the event such sell thru rate is attained Ingram will extend the
term an additional twelve (12) months. Thereafter, this Agreement shall be
renewed for successive one (1) year terms without further notice, unless
terminated sooner as provided under the provisions of this Agreement.

2.2 Termination

     (a) Either party may terminate this Agreement, with or without cause, by
giving thirty (30) days written notice to the other party.

     (b) Either party may immediately terminate this Agreement with written
notice if the other party:

          (i)   materially breaches any term of this Agreement and such breach
                continues for thirty (30) business days after written
                notification thereof; or

--------------------------------------------------------------------------------
CNF, Inc.                              1                            Confidential
(Doc Rev 12/95)                                                           4/6/98

<PAGE>

                                        Ingram Micro Inc. Distribution Agreement
--------------------------------------------------------------------------------

          (ii)  ceases to conduct business in the normal course, becomes
                insolvent, makes a general assignment for the benefit of
                creditors, suffers or permits the appointment of a receiver for
                its business or assets, or avails itself of or becomes subject
                to any proceeding under any Bankruptcy Act or any other federal
                or state statute relating to insolvency or the protection of
                rights of creditors; or

          (iii) attempts to assign or otherwise transfer its rights hereunder
                unless both have agreed in writing to such assignment or
                transfer.

3. INGRAM OBLIGATIONS

3.1 Product Availability Ingram will list Product in its catalog(s) as
appropriate and endeavor to make such Product available to customers.

3.2 Advertising Ingram will advertise and/or promote Product in a commercially
reasonable manner and will transmit as reasonably necessary Product information
and promotional materials to its customers.

3.3 Support Ingram will make its facilities reasonably available for Vendor and
will assist in Product training and support. Ingram will provide reasonable,
general Product technical assistance to its customers, and will direct all other
technical issues directly to Vendor.

3.4 Administration

     (a) Upon request, Ingram will furnish Vendor with a valid tax exemption
certificate.

     (b) Ingram will provide Vendor standard sales-out and inventory reports via
its electronic Bulletin Board System.

     (c) Ingram may handle its customers' Product returns by batching them for
return to Vendor at regular intervals.

4. VENDOR OBLIGATIONS

4.1 Shipping/Export

     (a) Vendor shall ship Product pursuant to Ingram purchase order(s)
("P.O."). Product shall be shipped F.O.B. Ingram's designated warehouse with
risk of loss or damage to pass to Ingram upon delivery to the warehouse
specified in Ingrain's P.O.

     (b) Ingram requires concurrent with the execution of this Agreement Export
Administration Regulations product classification and supporting documentation:
Certificate of Origin (General Use and/or NAFTA), Export Commodity Control
Number's; (ECCN's), General License and/or Individual Validated License
information and Schedule "B"/Harmonized

--------------------------------------------------------------------------------
CNF, Inc.                              2                            Confidential
(Doc Rev 12/95)                                                           4/6/98

<PAGE>

                                        Ingram Micro Inc. Distribution Agreement
--------------------------------------------------------------------------------

Numbers. This applies when distribution rights granted under Section 1.1 are
outside the United States for the initial Product/s and when additions or
changes to these Products occurs.

4.2 Invoicing For each Product shipment to Ingram, Vendor shall issue to Ingram
an invoice showing Ingram's order number, the Product part number, description,
price and any discount. At least monthly, Vendor shall provide Ingram with a
current statement of account, listing all invoices outstanding and any payments
made and credits given since the date of the previous statement.

4.3 Product Availability Vendor agrees to maintain sufficient Product inventory
to fill Ingram's orders. If a shortage of any Product exists, Vendor agrees to
allocate its available inventory of such Product to Ingram in proportion to
Ingram's percentage of all of Vendor's customer orders for such Product during
the previous sixty (60) days.

4.4 Product Marking Vendor will clearly mark each unit of Product with the
Product name and computer compatibility. Such packaging will also bear a
machine-readable bar code identifier scannable in standard Uniform Product Code
(UPC) format. The bar code must identify the Product as specified by the Uniform
Code Council (UCC). If the Vendor or Ingram customers' require serial number
tracking the serial number must be clearly marked and bar coded on the outside
of the individual selling unit. The bar code shall fully comply with all
conditions regarding standard product labeling set forth in Exhibit B in the
then-current Ingram Guide to Bar Code: The Product Label. Vendor may be assessed
a reasonable per unit charge for all Product not in conformance herewith.

4.5 TechNotes Vendor will within thirty (30) days of execution of this Agreement
sign the CIS/ Manufacture Product Information Library - TechNotes and Content
Distribution Agreements as shown in Exhibit C and provide the required product
information in the designated template format.

4.6 Support At no charge to Ingram, Vendor shall support Product and any
reasonable Ingram efforts to sell Product. Vendor shall also provide to Ingram,
its employees, and its customers reasonable amounts of sales literature,
advertising materials, and training and support in Product sales.

4.7 New Product Vendor shall endeavor to notify Ingram at least thirty (30) days
before the date any new Product is introduced. Vendor shall make such Product
available for distribution by Ingram no later than the date it is first offered
for sale in the marketplace.

4.8 Insurance Vendor shall carry insurance coverage for product
liability/completed operations with minimum limits of two million dollars
($2,000,000). Within ten (10) days of full execution of this Agreement, Vendor
shall provide Ingram with a Certificate of Insurance. This Certificate of
Insurance must include: (i) a broad form endorsement naming Ingram as an
additional insured, and (ii) a mandatory thirty (30) day notice to Ingram of
insurance cancellation.

--------------------------------------------------------------------------------
CNF, Inc.                              3                            Confidential
(Doc Rev 12/95)                                                           4/6/98

<PAGE>

                                        Ingram Micro Inc. Distribution Agreement
--------------------------------------------------------------------------------

4.9 Warranties/Certification

     (a) General Warranty Vendor represents and warrants that (i) it has good
transferable title to the Products, (ii) the Product will perform in conformity
with specifications and documentation supplied by Vendor, (iii) the Product or
its use does not infringe any patents, copyrights, trademarks, trade secrets, or
any other intellectual property rights, (iv) that there are no suits or
proceedings pending or threatened which allege any infringement of such
proprietary rights, and (v) the Product sales to Ingram do not in any way
constitute violations of any law, ordinance, rule or regulation in the
distribution territory.

     (b) Warranty Vendor hereby represents and warrants that any Product offered
for distribution does not contain any obscene, defamatory or libelous matter or
violate any right of publicity or privacy.

     (c) End-User Warranty Vendor shall provide a warranty statement with
Product for end user benefit. This warranty shall commence upon Product delivery
to end-user.

     (d) Millennium Compliance Warranty Vendor warrants and represents that the
Product will properly (a) record, store, process, calculate or present calendar
dates falling on and after (and if applicable, spans of time including) January
1, 2000 as a result of the occurrence, or use of data consisting of, such dates
and (b) calculate any information dependent on or relating to dates on or after
January 1, 2000 in the same manner, and with the same functionality, data
integrity and performance, as such Product records, stores, processes,
calculates and presents calendar dates on or before December 31, 1999, or
information dependent on or relating to such dates.

     (e) Class B Warranty Vendor hereby represents and warrants that the Product
has been or will be at the time of shipment certified as a Class B computing
device as required by the rules of the U.S.A. Federal Communications Commission
("FCC Rules").

     (f) EU Warranty Vendor further warrants and represents for Products
distributed to the European Union ("EU") that the Products will be accepted
under all EU directives, regulations and the EU country's legislation.

     (g) Made in America Certification Vendor by the execution of this Agreement
certifies that it will not label any of its products as being "Made in America,"
"Made in U.S.A.," or with similar wording, unless all components or elements of
such Product is in fact made in the United States of America. Vendor further
agrees to defend, indemnify and hold harmless from and against any and all
claims, demands, liabilities, penalties, damages, judgments or expenses
(including attorney's fees and court costs) arising out of or resulting in any
way from Product that does not conform to the Certification.

4.10 Sell Through Vendor shall achieve and maintain an average sell through of
one hundred thousand dollars ($100,000) per month combined for all Products.
Vendor shall

--------------------------------------------------------------------------------
CNF, Inc.                              4                            Confidential
(Doc Rev 12/95)                                                           4/6/98

<PAGE>

                                        Ingram Micro Inc. Distribution Agreement
--------------------------------------------------------------------------------

pre-pay all marketing expenditures by Ingram during the first ninety (90) days
("initial period") and thereafter in the event the sell through rate either (i)
fails to achieve this amount after the initial period, or (ii) at any time
thereafter when such rate is not maintained.

4.11 Rebate Vendor will pay Ingram a three percent (3%) quarterly rebate based
on gross sales. The rebate will be paid by check within thirty (30) days after
the quarter end. If no check is received within that period Ingram shall deduct
that amount from the Vendor's next payment.

5. PRICING

5.1 Ingram Pricing The suggested retail price and any Ingram discount for
Product is set out in Exhibit D. Vendor may modify Exhibit D with a minimum of
thirty (30) days advance written notice to Ingram. All Ingram orders for Product
will be billed at the price in effect when the order is placed. Ingram shall
have sole discretion as to selling price of Product to its customers.

5.2 Vendor Pricing Vendor agrees that the prices and terms it offers to Ingram
are now and will continue to be at least as low as those it offers to any of its
customers excluding Original Equipment Manufacturer ("OEM") accounts. If Vendor
offers price discounts, promotional discounts or other special prices to its
other customers excluding OEM accounts, Ingram shall also be entitled to
participate in and receive notice of the same no later than Vendor's other non
OEM customers.

5.3 International Pricing If Vendor offers a better price outside the U.S. and
Ingram has distribution rights in that territory then the same price shall be
offered to Ingram for Product sales into that territory.

5.4 Price Adjustments If Vendor reduces any Product price, or offers increased
discounts to any customers excluding OEM accounts, Vendor will promptly credit
Ingram for the difference between the original Product price and the reduced
Product price for Ingram's and its customers' Product inventory, including: (i)
any Customer Product in-transit from/to Ingrain, (ii) any unshipped orders, and
(iii) orders in-transit to Ingram on the price reduction or increased discount
offer date. In the event that Vendor shall raise the list price of a Product,
all orders for such Product placed prior to the effective date of the price
increase shall be invoiced at the lower price. Vendor shall provide Ingram with
thirty (30) days advance notice of any price increases.

5.5 Payment Terms Vendor will issue invoices concurrently with Product shipments
to Ingram. Ingram will pay Vendor one time per month for any invoices not held
in reserve for: (i) Product on hand at Ingram, (ii) Product on hand at resellers
who have purchased Vendor's product from Ingram, (iii) Product in transit to
Ingram from resellers, (iv) marketing programs which will occur in the near
future, and (v) for any outstanding debit or invoice to Vendor.

--------------------------------------------------------------------------------
CNF, Inc.                              5                            Confidential
(Doc Rev 12/95)                                                           4/6/98

<PAGE>

                                        Ingram Micro Inc. Distribution Agreement
--------------------------------------------------------------------------------

5.6 Right to Withhold Notwithstanding any other provision in this Agreement to
the contrary, Ingram shall not be deemed in default if it withholds any specific
amount to Vendor because of a legitimate dispute between the parties as to that
specific amount pending the timely resolution of the disputed amount.

6. MARKETING

6.1 Trademarks Ingram may advertise and promote the Product and/or Vendor, and
may thereby use Vendor's trademarks, service marks and trade names. Neither
party shall acquire any rights in the trademarks, service marks or trade names
of the other.

6.2 Advertising

     (a) Vendor agrees to cooperate with Ingram in advertising and promoting the
Product and/or Vendor and hereby grants Ingram a cooperative advertising
allowance of two percent (2%) of invoice amounts for Product purchased by Ingram
from Vendor to the extent that Ingram or customer/dealers use the allowance for
any advertising and promoting which features Product and/or Vendor. Upon receipt
of reasonable evidence of advertising expenditures, Vendor agrees to credit the
amount of any such expenditures against future purchases by Ingram.

     (b) Vendor agrees to provide Marketing Development Funds ("MDF") of one
percent (1%) of invoice amounts for Product purchased by Ingram from Vendor.

6.3 Programs

     (a) Ingram may offer marketing programs to Vendor including but not limited
to launch programs and reseller pass through opportunities. If Vendor elects to
participate, Vendor agrees to pay such funds as may be required for this
purpose.

     (b) Vendor shall provide in addition to amounts under 6.2 (a) & (b), thirty
thousand dollars ($30,000) to be used during the first three (3) months for
Product launch. A check for this amount shall be issued to Ingram concurrent
with the execution of this Agreement. Thereafter, Vendor shall pre-pay all
marketing and promotional activities until a sales rate of one hundred thousand
dollars ($100,000) per month is achieved. Ingram shall prepare, implement and
review with Vendor marketing plans funded by these expenditures.

6.4 Support Product Vendor shall consign a reasonable amount of demonstration
Product to aid Ingram in its support and promotion of Product. All such
consigned Product will be returned to Vendor upon request.

7. RETURNS

7.1 Stock Balancing Notwithstanding anything herein to the contrary, Ingram may
return throughout the term any Products which are in their original packaging to
Vendor for full credit

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of the Products' purchase price. In the event that a Return Material
Authorization (RMA) for the return of Product is not issued within five (5) days
of the request, Ingram shall have the right to return any Product(s) to Vendor
without an RMA, and Vendor shall be obligated to accept such return for credit.
Ingram will pay all freight charges for returned Products.

7.2 Post-Term/Termination For one hundred eighty (180) days after the expiration
or earlier termination of this Agreement, Ingram may return to Vendor any
Product for credit against outstanding invoices, or if there are no outstanding
invoices for a cash refund. Any credit or refund due Ingram for returned Product
shall be equal to the Product purchase price. Ingram will pay all freight
charges for returned Products.

7.3 Product Discontinuation Vendor shall give Ingram thirty (30) days' advance
written notice of Product discontinuation. Ingram may return all such Product to
Vendor for full credit of Product purchase price plus all freight charges
incurred by Ingram in returning the Product.

7.4 Defective Product

     (a) Ingram may return any Product to Vendor that Ingram or its customer
finds defective. Vendor shall immediately credit Ingram for the Product purchase
price, plus all freight charges incurred by Ingram in returning the defective
Product.

     (b) If any Product is recalled by Vendor because of defects, revisions or
upgrades, Ingram will, at Vendor's request, provide reasonable assistance with
the recall. Vendor will pay Ingrain's expenses in connection with such recall.

8. INDEMNIFICATION

8.1 Product Indemnity Vendor shall defend, indemnify, and hold harmless Ingram
from and against any claims, demands, liabilities, or expenses (including
attorney's fees and costs) for any injury or damage, including, but not limited
to, any personal or bodily injury or property damage, arising out of or
resulting in any way from any defect in Products. This duty to indemnify Ingram
shall be in addition to the warranty obligations of Vendor.

8.2 General Indemnity Each party shall indemnify, defend and hold the other
harmless from and against any and all claims, actions, damages, demands,
liabilities, costs and expenses, including reasonable attorney's fees and
expenses, resulting from any act or omission of the acting party or its
employees under this Agreement, that causes or results in property damage,
personal injury or death.

8.3 Intellectual Property Rights Indemnity Vendor shall defend, indemnify and
hold Ingram, its resellers and their customers, harmless from and against all
damages and costs incurred by any of them arising from the infringement of any
patent, copyright, trademark, trade secret or other proprietary right by reason
of the manufacture, sale, marketing, or use of Product.

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8.4 Product Infringement Upon infringement, Vendor may, at its expense and
option (i) procure the right to continue using any part of Product, (ii) replace
the infringing Product with a non-infringing Product of similar performance, or
(iii) modify Product to make it non-infringing, or provide Ingram with written
assurances that the claim is unsupportable. In either case, Vendor shall defend,
indemnify and hold Ingram, its resellers and their customers, harmless from and
against all damages and costs incurred by any of them arising from a claim of
infringement. If Vendor does not so act within ninety (90) days after such
claim, Ingram may return Product to Vendor for a full credit against future
purchases or for a cash refund, at Ingram's option.

8.5 Multi-Media Indemnity Vendor shall defend, indemnify and hold Ingram, its
resellers and their customers, harmless from and against all damages and costs
incurred by any of them to the extent it is based upon a claim that the Product
either (i) violates a third party's right of publicity and/or right of privacy,
or (ii) contains any obscene, defamatory or libelous matter.

8.6 European Indemnity For Products distributed to a country of the EU, the
Vendor accepts full responsibility for, and will indemnify Ingram for, all costs
and damages arising from any non-compliance with any manufacturer-directed EU
decree, regulation or directive.

8.7 Millennium Compliance Indemnity Vendor agrees to indemnify and hold Ingram
and its shareholders, officers, directors, employees, agents, successors, and
assigns harmless from and against any and all claims, suits, actions,
liabilities, losses, costs, reasonable attorney's fees, expenses, judgments or
damages, whether ordinary, special or consequential, resulting from any third
party claim made or suit brought against Ingram or such persons, to the extent
such results from Vendor's breach of the warranty specified in Section 4.9(d).

8.8 Limitation of Liability NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR LOST
PROFITS OF BUSINESS, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES, WHETHER BASED
IN CONTRACT OR TORT (INCLUDING NEGLIGENCE, STRICT LIABILITY OR OTHERWISE), AND
WHETHER OR NOT ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

     THIS LIMITATION IS IN NO WAY MEANT TO LIMIT VENDOR'S LIABILITY FOR PERSONAL
INJURY OR DEATH AS A RESULT OF A DEFECT IN ANY PRODUCT IN THOSE JURISDICTIONS
WHERE THE LAW DOES NOT ALLOW THIS LIMITATION.

9. COMPLIANCE WITH FEDERAL LAWS AND REGULATIONS

9.1 Executive Order 11246 Vendor agrees to include the Equal Employment
Opportunity Clause by reference in every contract, agreement and purchase order
entered into with subcontractors or suppliers as required by 41 CFR 60-1.4.

9.2 Employer Information Report EEO-1/ Written Affirmative Action Program Vendor
agrees that if the value of any contract or purchase order is fifty thousand
dollars ($50,000) or

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more and the Vendor has fifty (50) or more employees, Vendor will (i) file an
EEO-1 report (Standard Form 100) and comply with and file such other compliance
reports as may be required under Executive Order 11246, as amended, and Rules
and Regulations adopted thereunder and (ii) will develop a written affirmative
action compliance program for each of its establishments as required by Title 41
CFR 60-1.40.

9.3 Veterans Employment Clause Vendor agrees to abide by and comply with the
provisions of the Affirmative Action Clause, 41 CFR 60-250.4.

9.4 Employment of Handicapped Persons Vendor agrees that it will abide by and
comply with the provisions of the Affirmative Action Clause, 41 CFR 60-741.4.

9.5 Small Business Concerns and Small Business Concerns Owned and Controlled by
Socially and Economically Disadvantaged Individuals Where a government contract
is expected to exceed five hundred thousand dollars ($500,000), Vendor agrees to
comply with all requirements of P.L. 95-507 and regulations promulgated
thereunder. Vendor shall comply with instructions contained in Exhibit E.

9.6 Women-Owned Business Concerns Vendor shall comply with instructions
contained in Exhibit E. Where a government contract is expected to exceed five
hundred thousand dollars ($500,000), Vendor agrees to comply with all
requirements of Executive Order 12138 and all regulations promulgated
thereunder.

10. GOVERNMENT PROGRAM

10.1 Partnership America Vendor may, at its sole option, participate in Ingram's
government reseller program in which case the provisions of Exhibit F,
Partnership America, shall apply. A draft copy is provided solely for your
information and review.

11. GENERAL PROVISIONS

11.1 Notices Any notice which either party may desire to give the other party
must be in writing and may be given by (i) personal delivery to an officer of
the party, (ii) by mailing the same by registered or certified mail, return
receipt requested, to the party to whom the party is directed at the address of
such party as set forth at the beginning of this Agreement, or such other
address as the parties may hereinafter designate, and (iii) by facsimile or
telex communication subsequently to be confirmed in writing pursuant to item
(ii) herein.

11.2 Governing Law This Agreement shall be construed and enforced in accordance
with the laws of the State of California, except that body of law concerning
conflicts of law. The United Nations Convention on Contracts for the
International Sale of Goods shall not apply to this Agreement.

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11.3 Cooperation Each party agrees to execute and deliver such further documents
and to cooperate as may be necessary to implement and give effect to the
provisions contained herein.

11.4 Force Majeure Neither party shall be liable to the other for any delay or
failure to perform which results from causes outside its reasonable control.

11.5 Attorneys Fees In the event there is any dispute concerning the terms of
this Agreement or the performance of any party hereto pursuant to the terms of
this Agreement, and any party hereto retains counsel for the purpose of
enforcing any of the provisions of this Agreement or asserting the terms of this
Agreement in defense of any suit filed against said party, each party shall be
solely responsible for its own costs and attorney's fees incurred in connection
with the dispute irrespective of whether or not a lawsuit is actually commenced
or prosecuted to conclusion.

11.6 Export Regulations Ingram agrees by the purchase of Products to conform to,
and abide by, the export laws and regulations of the United States, including
but not limited to, the Export Administration Act of 1979 as amended and its
implementing regulations. Ingram shall include a statement in it's standard
sales terms and conditions that any shipment of Product outside the United
States will require a valid export license. Ingram further agrees to distribute
Product in accordance with the territory as defined in Section 1.1. Whenever a
EU country is specified as Territory under Section 1.1, Territory shall include
all EU countries.

12. AGREEMENT

12.1 Counterparts This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

12.2 Section Headings Section headings in this Agreement are for convenience
only, and shall not be used in construing the Agreement.

12.3 Incorporation of all Exhibits Each and every exhibit referred to
hereinabove and attached hereto is hereby incorporated herein by reference as if
set forth herein in full.

12.4 Severability A judicial determination that any provision of this Agreement
is invalid in whole or in part shall not affect the enforceability of those
provisions found to be valid.

12.5 No Implied Waivers If either party fails to require performance of any duty
hereunder by the other party, such failure shall not affect its right to require
performance of that or any other duty thereafter. The waiver by either party of
a breach of any provision of this Agreement shall not be a waiver of the
provision itself or a waiver of any breach thereafter, or a waiver of any other
provision herein.

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12.6 Binding Effect/Assignment This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto, and their respective
representatives, successors and permitted assigns. This Agreement shall not be
assignable by Vendor, without the express written consent of Ingram, which
consent shall not be unreasonably withheld, including to a Person in which it
has merged or which has otherwise succeeded to all or substantially all of such
party's business and assets to which this Agreement pertains and which has
assumed in writing or by operation of law its obligations under this Agreement.
Any attempted assignment in violation of this provision will be void.

12.7 Survival Sections 5.5 (Payment Terms), 5.6 (Right to Withhold), 7.2
(Post-Term Termination) and 8. (Indemnification) shall survive the expiration or
earlier termination of this Agreement.

12.8 Entire This Agreement constitutes the entire agreement between the parties
regarding its subject matter. This Agreement supersedes any and all previous
proposals, representations or statements, oral or written. Any previous
agreements between the parties pertaining to the subject matter of this
Agreement are expressly terminated. The terms and conditions of each party's
purchase orders, invoices, acknowledgments/confirmations or similar documents
shall not apply to any order under this Agreement, and any such terms and
conditions on any such document are objected to without need of further notice
or objection. Any modifications to this Agreement must be in writing and signed
by authorized representatives of both parties.

12.9 Authorized Representatives Either party's authorized representative for
execution of this Agreement or any amendment hereto shall be president, a
partner, or a duly authorized vice president of their respective party. The
parties executing this Agreement warrant that they have the requisite authority
to do so.

     IN WITNESS WHEREOF, the parties hereunto have executed this Agreement.

"Ingram"                                    "Vendor"

Ingram Micro Inc.                           CNF, Inc.
1600 E. St. Andrew Place                    15345 Calle Enrique
Santa Ana, California 92705                 Morgan ill, California 9503

By: /s/ Michael Terrell                     By: /s/ David G. Thompson
    ------------------------------              --------------------------------

Name: Michael Terrell                       Name: David G. Thompson
      ----------------------------                ------------------------------

Title: Vice President Purchasing            Title: CFO
       ---------------------------                 -----------------------------

Date: May 28, 1998                          Date: 4/9/98
      ----------------------------                ------------------------------

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*AGREEMENT MUST BE SIGNED BY PRESIDENT OR BY A DULY AUTHORIZED VICE PRESIDENT OR
PARTNER.

EXHIBITS:
---------

A - Vendor Routing Guide (if applicable)

B - Guide to Bar Code: The Product Label

C - TechNotes

D - Product Price List

E - Small And Disadvantaged Business Certification

F - Partnership America

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<PAGE>

[LOGO]

                               AMENDMENT #1 to the
                             DISTRIBUTION AGREEMENT

THIS AMENDMENT (the "Amendment") is entered into this 2nd day of June, 1999, by
and between INGRAM MICRO INC. ("Ingram") and CNF Mobile Solutions, Inc., a
wholly owned subsidiary of CNF Technologies, Inc. ("Vendor").

The parties have agreed to amend their Distribution Agreement ("Agreement")
dated February 19, 1998.

1.   Due to the merge of CNF, Inc. ("CNF") and JLL Ventures, Inc. ("JLL"),
     replace the name with CNF Mobile Solutions, Inc., a wholly owned subsidiary
     of CNF Technologies, Inc. with principal place of business at 7722 E. Gray
     Rd., Scottsdale, Az. 85260

2.   Section 2.1, Term - Delete the 2nd & 3rd sentences.

3.   Section 4.10, Sell Through - Delete the 2nd sentence.

4.   Section 4.11, Rebate - Delete the entire section.

5.   Section 5.5, Payment Terms - Replace the words in the 2nd sentence "Ingram
     will pay Vendor one time per month ........" with "Ingram will pay Vendor
     net thirty (30) days from the invoice date ........".

6.   Section 6.3(b), Programs - Delete the entire section.

7.   This Amendment shall remain in effect for the current term and any renewal
     term of the Agreement.

INGRAM MICRO INC.                           CNF Mobile Solutions, Inc.
1600 East St. Andrew Place                  7722 E. Gray Road
Santa Ana, CA 92705                         Scottsdale, Arizona 85260

By: /s/ Tim Jeffries                        By: /s/ David G. Thompson
    ------------------------------              --------------------------------

Name: Tim Jeffries                          Name: David G. Thompson
      ----------------------------                ------------------------------

Title: GM, Storage & Components             Title: CFO
       ---------------------------                 -----------------------------

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JLL Ventures, Inc.                     1                            Confidential
(Doc Rev 2/97)                                                           6/2/99

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