Document:

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                   AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION

            STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE - NET

                (DO NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS)

1.       BASIC PROVISIONS ("BASIC PROVISIONS")

         1.1      PARTIES: This Lease ("LEASE"), dated for reference purposes
only, September 24, 1999 is made by and between Marie A. Batton, Trustee of the
W. F. Batton and Marie A. Batton Trust UTA January 12, 1988, as amended
("Lessor") and Omnicell Technologies, Inc., a California corporation ("Lessee"),
(collectively the "PARTIES," or individually a "PARTY").

         1.2      PREMISES: That certain real property, including all
improvements therein or to be provided by Lessor under the terms of this Lease,
and commonly known as 1085 EAST MEADOW CIRCLE, PALO ALTO, located In the County
of SANTA CLARA, State of CALIFORNIA and generally described as (describe briefly
the nature of the property and, If applicable, the "Project," if the property is
located within a Project) A FREE STANDING BUILDING CONSISTING OF APPROXIMATELY
18,360 RENTABLE SQUARE FEET. ("Premises"). (See also Paragraph 2).

         1.3      TERM: FIVE (5) years and - 0 - months ("ORIGINAL TERM")
commencing DECEMBER 15, 1999, ("COMMENCEMENT DATE") and ending DECEMBER 14, 2004
("Expiration Date"). (See also Paragraph 3)

         1.4      EARLY POSSESSION: DECEMBER 8, 1999 ("EARLY POSSESSION DATE").
(See also Paragraphs 3.2 and 3.3)

         1.5      BASE RENT: $41,310.00 per month ("BASE RENT"), payable on the
FIFTEENTH (15TH) day of each month commencing DECEMBER 15, 1999 - JANUARY 14,
2000. (See also Paragraph 4)

/X/ If this box Is checked, there am provisions in this Lease for the Base Rent
to be adjusted and/or for common area maintenance charges.

         1.6      BASE RENT PAID UPON EXECUTION: $41,310.00 as Base Rent for the
period DECEMBER 15, 1999 - JANUARY 14, 2000.

         1.7      SECURITY DEPOSIT: $41,310.00 ("Security Deposit"). (See also
Paragraph 5)

         1.8      AGREED USE: SOFTWARE RESEARCH AND DEVELOPMENT, ADMINISTRATIVE
OFFICES, AND STORAGE (See also Paragraph 6)

         1.9      INSURING PARTY: Lessor is the "Insuring Party" unless
otherwise stated herein (See also Paragraph 8)

         1.10     REAL ESTATE BROKERS: (See also Paragraph 15)

                  (a)      REPRESENTATION: The following real estate brokers
(collectively, the "Brokers") and brokerage relationships exist in this
transaction (check applicable boxes):

/ /___________________________represents Lessor exclusively ("Lessors Broker");
/ /___________________________represents Lessee exclusively ("Lessee's Broker");
 or
/X/ CORNISH & CAREY COMMERCIAL represents both Lessor and Lessee
("Dual Agency").

                  (b)      PAYMENT TO BROKERS: Upon execution and delivery of
this Lease by both Parties, Lessor shall pay to the Broker the fee agreed to in
their separate written agreement (or if there is no such agreement, the sum of
______% of the total Base Rent for the Brokerage services rendered by said
Broker).

         1.11     GUARANTOR. The obligations of the Lessee under this Lease are
to be guaranteed by N/A ("Guarantor). (See also Paragraph 37)

         1.12     ADDENDA AND EXHIBITS. Attached hereto Is an Addendum or
Addenda consisting of Paragraphs 50 through 65 and Exhibits 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 size

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set forth in this Lease, or that may have been used in calculating rental, is an
approximation which the Parties agree is reasonable and the rental based thereon
is not subject to revision whether or not the actual size is more or less.

         2.2      CONDITION. Lessor shall deliver the Premises to Lessee broom
clean and free of debris on the Commencement Date or the Early Possession Date,
whichever first occurs ("START DATE"), and so long as the required service
contracts described in Paragraph 7.1(b) below are obtained by Lessee within
thirty (30) days following the Start Date, warrants that the existing
electrical, plumbing, fire sprinkler, lighting, heating, ventilating and air
conditioning systems ("HVAC"), loading doors, if any, and all other such
elements in the Premises, other than those constructed by Lessee, shall be in
good operating condition on said date and that the structural elements of the
roof, bearing walls and foundation of any buildings on the Premises (the
"BUILDING") shall be free of material defects. If a non-compliance with said
warranty exists as of the Start Date, Lessor shall, as Lessor's sole obligation
with respect to such matter, 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
Lessees expense.

         2.3      COMPLIANCE. Lessor warrants that the improvements on the
Premise comply with all applicable laws, convenants or restrictions of record,
building codes, regulations and ordinances ("APPLICABLE REQUIREMENTS") in effect
on the Start 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. NOTE: Lessee is responsible for
determining whether or not the zoning is appropriate for Lessee's intended use,
and acknowledges that past uses of the Premises may no longer be allowed. If the
Premises do not comply with said warranty, Lessor shall, except as otherwise
provided, promptly after receipt of written notice from Lessee setting forth
with specificity the nature and extent of such non-compliance, rectify the same
at Lessor's expense. If Lessee does not give Lessor written notice of a
non-compliance with this warranty within six (6) months following the Start
Date, correction of that non-compliance shall be the obligation of Lessee at
Lessee's sole cost and expense. If the Applicable Requirements are hereafter
changed (as opposed to being in existence at the Start Date, which is addressed
in Paragraph 6.2(e) below) so as to require during the term of this Lease the
construction of an addition to or an alteration of the Building, the remediation
of any Hazardous Substance, or the reinforcement or other physical modification
of the Building ("CAPITAL EXPENDITURE"), Lessor and Lessee shall allocate the
cost of such work as follows:

                  (a)      Subject to Paragraph 2.3(c) below, if such Capital
Expenditures are required as a result of the specific and unique use of the
Premises by Lessee as compared with uses by tenants in general, Lessee shall be
fully responsible for the cost thereof, provided, however, that if such Capital
Expenditure is required during the last two (2) years of this Lease and the cost
thereof exceeds six (6) months' Base Rent, Lessee may instead terminate this
Lease unless Lessor notifies Lessee, in writing, within ten (10) days after
receipt of Lessee's termination notice that Lessor has elected to pay the
difference between the actual cost thereof and the amount equal to six (6)
months' Base Rent. If Lessee elects termination, Lessee shall immediately cease
the use of the Premises which requires such Capital Expenditure and deliver to
Lessor written notice specifying a termination date at least ninety (90) days
thereafter. Such termination date shall, however, in no event be earlier than
the last day that Lessee could legally utilize the Premises without commencing
such Capital Expenditure.

                  (b)      If such Capital Expenditure is not the result of the
specific and unique use of the Premises by Lessee (such as, governmentally
mandated seismic modifications), then Lessor and Lessee shall allocate the
obligation to pay for such costs pursuant to the provisions of Paragraph 7.1(c);
provided, however, that if such Capital Expenditure is required during the last
two years of this Lease or if Lessor reasonably determines that it is not
economically feasible to pay its share thereof, Lessor shall have the option to
terminate this Lease upon ninety (90) days prior written notice to Lessee unless
Lessee notifies Lessor, in writing, within ten (10) days after receipt of
Lessor's termination notice that Lessee will pay for such Capital Expenditure.
If Lessor does not elect to terminate, and fails to tender its share of any such
Capital Expenditure, Lessee may advance such funds and deduct same, with
Interest from Rent until Lessor's share of such costs have been fully paid. If
Lessee is unable to finance Lessor's share, or if the balance of the Rent due
and payable for the remainder of this Lease is not sufficient to fully reimburse
Lessee on an offset basis, Lessee shall have the right to terminate this Lease
upon thirty (30) days written notice to Lessor.

                  (c)      Notwithstanding the above, the provisions concerning
Capital Expenditures are intended to apply only to non-voluntary, unexpected,
and new Applicable Requirements. If the Capital Expenditures are instead
triggered by Lessee as a result of an actual or proposed change in use, change
in intensity of use, or modification to the Premises then, and in that event,
Lessee shall be fully responsible for the cost thereof, and Lessee shall not
have any right to terminate this Lease.

         2.4      ACKNOWLEDGEMENTS. Lessee acknowledges that: (a) it has been
advised by Lessor and/or Brokers to satisfy itself with respect to the condition
of the Premises (including but not limited to the electrical, HVAC and fire
sprinkler systems, security, environmental aspects, and compliance with
Applicable Requirements), and their suitability for Lessee's intended use, (b)
Lessee has made such investigation as it deems necessary with reference to such
matters and assumes all responsibility therefor as the same relate to its
occupancy of the Premises, and (c) neither Lessor, Lessor's agents, nor any
Broker has made any oral or written representations or warranties with respect
to said matters other than as set forth in this Lease. In addition, Lessor
acknowledges that: (a) Broker has made no

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representations, promises or warranties concerning Lessee's ability to honor the
Lease or suitability to occupy the Premises, and (b) it is Lessor's sole
responsibility to investigate the financial capability and/or suitability of all
proposed tenants.

         2.5      LESSEE AS PRIOR OWNER/OCCUPANT. The warranties made by Lessor
in Paragraph 2 shall be of no force or effect if immediately prior to the Start
Date Lessee was the owner or occupant of the Premises. In such event, Lessee
shall be responsible for any necessary corrective work.

3.       TERM.

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

         3.2      EARLY POSSESSION. If Lessee totally or partially occupies the
Premises prior to the Commencement Date, the obligation to pay Base Rent shall
be abated for the period of such early possession. All other terms of this Lease
shall, however, be in effect during such period. Any such early possession shall
not affect the Expiration Date.

         3.3      DELAY IN POSSESSION. Lessor agrees to use its best
commercially reasonable efforts to deliver possession of the Premises to Lessee
by the Commencement Date. If, despite said efforts, Lessor is unable to deliver
possession as agreed, Lessor shall not be subject to any liability therefor, nor
shall such failure affect the validity of this Lease. Lessee shall not, however,
be obligated to pay Rent or perform its other obligations until it receives
possession of the Premises. If possession is not delivered within sixty (60)
days after the Commencement Date, Lessee may, at its option, by notice in
writing within ten (10) days after the end of such sixty (60) day period, cancel
this Lease, in which event the Parties shall be discharged from all obligations
hereunder. If such written notice is not received by Lessor within said ten (10)
day period, Lessee's right to cancel shall terminate. Except as otherwise
provided, if possession is not tendered to Lessee by the Start Date and Lessee
does not terminate this Lease, as aforesaid, any period of rent abatement that
Lessee would otherwise have enjoyed shall run from the date of delivery of
possession and continue for a period equal to what Lessee would otherwise have
enjoyed under the terms hereof, but minus any days of delay caused by the acts
or omissions of Lessee. If possession of the Premises is not delivered within
four (4) months after the Commencement Date, this Lease shall terminate unless
other agreements are reached between Lessor and Lessee, in writing.

         3.4      LESSEE COMPLIANCE. Lessor shall not be required to tender
possession of the Premises to Lessee until Lessee complies with its obligation
to provide evidence of insurance (Paragraph 8.5). Pending delivery of such
evidence, Lessee shall be required to perform all of its obligations under this
Lease from and after the Start Date, including the payment of Rent,
notwithstanding Lessor's election to withhold possession pending receipt of such
evidence of insurance. Further, if Lessee is required to perform any other
conditions prior to or concurrent with the Start Date, the Start Date shall
occur but Lessor may elect to withhold possession until such conditions are
satisfied.

4.       RENT.

         4.1      RENT DEFINED. All monetary obligations of Lessee to Lessor
under the terms of this Lease (except for the Security Deposit) are deemed to be
rent ("RENT").

         4.2      PAYMENT. Lessee shall cause payment of Rent to be received by
Lessor in lawful money of the United States, without offset or deduction (except
as specifically permitted in this Lease), on or before the day on which it is
due. Rent for any period during the term hereof which is for less than one (1)
full calendar month shall be prorated based upon the actual number of days of
said month. Payment of Rent shall be made to Lessor at its address stated herein
or to such other persons or place as Lessor may from time to time designate in
writing. Acceptance of a payment which is less than the amount then due shall
not be a waiver of Lessor's rights to the balance of such Rent, regardless of
Lessor's endorsement of any check so stating.

5.       SECURITY DEPOSIT. Lessee shall deposit with Lessor upon execution
         hereof the Security Deposit as security for Lessee's faithful
         performance of its obligations under this Lease. If Lessee fails to pay
         Rent, or otherwise Defaults under this Lease, 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, expense, loss or damage which Lessor may suffer or incur by
         reason thereof. If Lessor uses or applies all or any portion of said
         Security Deposit, Lessee shall within ten (10) days after written
         request therefor deposit monies with Lessor sufficient to restore said
         Security Deposit to the full amount required by this Lease. Should the
         Agreed Use be amended to accommodate a material change in the business
         of Lessee or to accommodate a sublessee or assignee, Lessor shall have
         the right to increase the Security Deposit to the extent necessary, in
         Lessor's reasonable judgment, to account for any increased wear and
         tear that the Premises may suffer as a result thereof. If a change in
         control of Lessee occurs during this Lease and following such change
         the financial condition of Lessee is, in Lessor's reasonable judgment,
         significantly reduced, Lessee shall deposit such additional monies with
         Lessor as shall be sufficient to cause the Security Deposit to be at a
         commercially reasonable level based on said change in financial

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         condition. Lessor shall not be required to keep the Security Deposit
         separate from its general accounts. Within fourteen (14) days after the
         expiration or termination of this Lease, if Lessor elects to apply the
         Security Deposit only to unpaid Rent, and otherwise within thirty (30)
         days after the Premises have been vacated pursuant to Paragraph 7.4(c)
         below, Lessor shall return that portion of the Security Deposit not
         used or applied by Lessor. No part of the Security Deposit shall be
         considered to be held in trust, to bear interest or to be prepayment
         for any monies to be paid by Lessee under this Lease.

6.       USE.

         6.1      USE. Lessee shall use and occupy the Premises only for the
Agreed Use, 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 damage, waste or a nuisance, or that disturbs
owners and/or occupants of, or causes damage to neighboring properties. Lessor
shall not unreasonably withhold or delay its consent to any written request for
a modification of the Agreed Use, so long as the same will not impair the
structural integrity of the improvements on the Premises or the mechanical or
electrical systems therein, or is not significantly more burdensome to the
Premises. If Lessor elects to withhold consent, Lessor shall within five (5)
business days after such request give written notification of same, which notice
shall include an explanation of Lessor's objections to the change in use,

         6.2      HAZARDOUS SUBSTANCES. See Addendum Paragraph 54.

                  (a)

                  (b)

                  (c)

                  (d)

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                  (e)

                  (f)

                  (g)

         6.3

         6.4

7.       MAINTENANCE; REPAIRS, UTILITY INSTALLATIONS; TRADE FIXTURES AND
         ALTERATIONS.

         7.1      LESSEE'S OBLIGATIONS. See Addendum Paragraph 559a)

                  (a)      IN GENERAL. Subject to the provisions of Paragraph
2.2 (Condition), 2.3 (Compliance with Covenants, Restrictions and Building
Code), 6.3 (Lessee's Compliance with Applicable Requirements), 7.2 (Lessor's
Obligations), 9 (Damage and Destruction), and 14 (Condemnation), Lessee shall,
al Lessee's sole expense, keep the Premises, Utility Installations, and
Alterations in good order, condition and repair (whether or not the portion of
the Premises requiring repairs, or the means of repairing the same, are
reasonably or readily accessible to Lessee, and whether or not the need for such
repairs occurs as a result of Lessee's use, any prior use, the elements or the
age of such portion of the Premises), including, but not limited to, all
equipment or facilities, such as plumbing, heating, ventilating,
air-conditioning, electrical, lighting facilities, boilers, pressure vessels,
fire protection system, fixtures, walls (interior and exterior), ceilings,
floors, windows, doors, skylights, landscaping, driveways, parking lots, fences,
signs, sidewalks and parkways located in, on, or adjacent to the Premises.
Lessee is also responsible for keeping the roof and roof drainage clean and free
of debris. Lessor shall keep the surface and structural elements of the roof,
foundations, and bearing walls in good repair (see Paragraph 7.2). Lessee, in
keeping the Premises in good order, condition and repair shall exercise and
perform good maintenance practices. Lessee's obligations

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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. Lessee shall, during the term of this Lease, keep the
exterior appearance of the Building in a first-class condition (including, e.g.,
graffiti removal) consistent with the exterior appearance of other similar
facilities of comparable age and size in the vicinity, including, when
necessary, the exterior repainting of the Building.

                  (b)      SERVICE CONTRACTS. Lessee shall, at Lessee's sole
expense, procure and maintain contracts, with copies to Lessor, in customary
form and substance for, and with contractors specializing and experienced in the
maintenance of the following equipment and improvements ("Basic Elements"), if
any, if and when installed on the Premises: (i) HVAC equipment, (ii) boiler and
pressure vessels, (iii) fire extinguishing systems, including fire alarm and/or
smoke detection, (iv) landscaping and irrigation systems, (v) driveways and
parking lots, (vi) clarifies, (vii) basic utility feed to the perimeter of the
Building, and (viii) any other equipment, if reasonably required by Lessor.

                  (c)      REPLACEMENT. Subject to Lessee's indemnification of
Lessor as set forth in Paragraph 8.7 below, and without relieving Lessee of
liability resulting from Lessee's failure to exercise and perform good
maintenance practices, if the Basic Elements described in Paragraph 7.1(b)
cannot be repaired other than at a cost which is in excess of 50% of the cost of
replacing such Basic Elements, then such Basic Elements shall be replaced by
Lessor, and the cost thereof shall be prorated between the Parties and Lessee
shall only be obligated to pay, each month during the remainder of the term of
this Lease, on the date on which Base Rent is due, an amount equal to the
product of multiplying the cost of such replacement by a fraction, the numerator
of which is one and the denominator of which is the number of months of the
useful life of such replacement as such useful life is specified pursuant to
Federal income tax regulations or guidelines for depreciation thereof (including
interest on the unamortized balance as is then commercially reasonable in the
judgment of Lessor's accountants), with Lessee reserving the right to prepay its
obligation at any time. See Addendum Paragraph 55(b).

         7.2      LESSOR'S OBLIGATIONS. Subject to the provisions of Paragraphs
2.2 (Condition), 2.3 (Compliance with Covenants, Restrictions and Building
Code), 9 (Damage or Destruction) and 14 (Condemnation), it is intended by the
Parties hereto that Lessor have no obligation, in any manner whatsoever, to
repair and maintain the Premises, or the equipment therein, all of which
obligations are intended to be that of the Lessee, except for the surface and
structural elements of the roof, foundations and bearing wails, the repair of
which shall be the responsibility of Lessor upon receipt of written notice that
such a repair is necessary. It is the intention of the Parties that the terms of
this Lease govern the respective obligations of the Parties-as to maintenance
and repair of the Premises, and they expressly waive the benefit of any statute
now or hereafter in effect to the extent it is inconsistent with the terms of
this Lease.

         7.3      UTILITY INSTALLATIONS; TRADE FIXTURES; ALTERATIONS.

                  (a)      DEFINITIONS; CONSENT REQUIRED. The term "UTILITY
INSTALLATIONS" refers to all floor and window coverings, air lines, power
panels, electrical distribution, security and fire protection systems and signs,
communication systems, lighting fixtures, HVAC equipment, plumbing, and fencing
in or on the Premises. The term "TRADE FIXTURES" shall mean Lessee's machinery
and equipment that can be removed without doing material damage to the Premises.
The term "ALTERATIONS" shall mean any modification of the improvements, other
than Utility Installations or Trade Fixtures, whether by addition or deletion.
"LESSEE OWNED ALTERATIONS AND/OR UTILITY INSTALLATIONS" are defined as
Alterations and/or Utility Installations made by Lessee that are not yet owned
by Lessor pursuant to Paragraph 7.4(a). Lessee shall not make any Alterations or
Utility Installations to the Premises without Lessor's prior written consent.
Lessee may, however, make non-structural Utility Installations or non-structural
alterations to the interior of the Premises (excluding the roof) without such
consent but upon notice to Lessor, as long as they are not visible from the
outside, do not involve puncturing, relocating or removing the roof or any
existing walls, and the cumulative cost thereof during this Lease as extended
does not exceed $50,000 in the aggregate or $10,000 in any one year.

                  (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. Consent shall
be deemed conditioned upon Lessee's: (i) acquiring all applicable governmental
permits, (ii) furnishing Lessor with copies of both the permits and the plans
and specifications prior to commencement of the work, and (iii) compliance with
all conditions of said permits and other Applicable Requirements in a prompt and
expeditious manner. Any Alterations or Utility Installations shall be performed
in a workmanlike manner with good and sufficient materials, Lessee shall
promptly upon completion furnish Lessor with as-built plans and specifications.
For work which costs an amount equal to the greater of one month's Base Rent, or
$10,000, Lessor may condition its consent upon Lessee providing a lien and
completion bond in an amount equal to one and one-half times the estimated cost
of such Alteration or Utility Installation and/or upon Lessee's posting an
additional Security Deposit with Lessor.

                  (c)      INDEMNIFICATION. Lessee shall pay, when due, all
claims for labor or materials furnished or alleged to have been furnished to or
for Lessee at or for use on the Premises, which claims are or may be secured by
any 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. If Lessee shall 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. If Lessor shall require, Lessee shall furnish a
surely bond in an amount equal to one and one-half times the amount of such
contested lien, claim or

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demand, indemnifying Lessor against liability for the same. If Lessor elects to
participate in any such action, Lessee shall pay Lessor's attorneys' fees and
costs.

         7.4      OWNERSHIP; REMOVAL; SURRENDER; AND RESTORATION.

                  (a)      OWNERSHIP. Subject to Lessor's right to require
removal or elect ownership as hereinafter provided, all Alterations and Utility
Installations made by Lessee shall be the property of Lessee, but considered a
part of the Premises. Unless otherwise instructed per Paragraph 7.4(b) hereof,
all Lessee Owned Alterations and Utility Installations shall, at the expiration
or termination of this lease, become the property of Lessor and be surrendered
by Lessee with the Premises. See Addendum Paragraph 55(d).

                  (b)      REMOVAL. By delivery to Lessee of written notice from
Lessor not earlier than ninety (90) and not later than thirty (30) days prior to
the end of the term of this Lease, Lessor may require that any or all Lessee
Owned Alterations or Utility Installations be removed by the expiration or
termination of this Lease. Lessor may require the removal at any time of all or
any part of any Lessee Owned Alterations or Utility Installations made without
the required consent.

                  (c)      SURRENDER/RESTORATION. See Addendum Paragraph 55(e).
"Ordinary wear and tear" shall not include any damage or deterioration that
would have been prevented by good maintenance practice. Lessee shall repair any
damage occasioned by the installation, maintenance or removal of Trade Fixtures,
Lessee Owned Alterations and/or Utility Installations, furnishings, and
equipment 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
groundwater contaminated by Lessee. Trade Fixtures shall remain the property of
Lessee and shall be removed by Lessee. The failure by Lessee to timely vacate
the Premises pursuant to this Paragraph 7.4(c) without the express written
consent of Lessor shall constitute a holdover under the provisions of Paragraph
26 below.

8.       INSURANCE; INDEMNITY.

         8.1      PAYMENT FOR INSURANCE. Lessee shall pay for all insurance
required under Paragraph 8 except to the extent of the cost attributable to
liability insurance carried by Lessor under Paragraph 8.2(b) in excess of
$2,000,000 per occurrence. Premiums for policy periods commencing prior to or
extending beyond the Lease term shall be prorated to correspond to the Lease
term. Payment shall be made by lessee to Lessor within ten (10) days following
receipt of an invoice.

         8.2      LIABILITY INSURANCE.

                  (a)      CARRIED BY LESSEE. Lessee shall obtain and keep in
force a Commercial General Liability Policy of Insurance protecting Lessee and
Lessor against claims for bodily injury, personal injury and property damage
based upon 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
$2,000,000 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 shall not, however,
limit the liability of Lessee nor relieve Lessee of any obligation hereunder.
All insurance 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 maintain liability
insurance as described in Paragraph 8.2(a), in addition to, and not in lieu of,
the insurance required to be maintained by Lessee. Lessee shall not be named as
an additional insured therein.

         8.3      PROPERTY INSURANCE - BUILDING, IMPROVEMENTS AND RENTAL VALUE.

                  (a)      BUILDING AND IMPROVEMENTS. The Insuring Party shall
obtain and keep in force a policy or policies in the name of Lessor, with loss
payable to Lessor, any groundlessor, and to any Lender(s) insuring loss or
damage to the Premises. The amount of such insurance shall be equal to the full
replacement cost of the Premises, as the same shall exist from time to time, or
the amount required by any Lenders, but in no event more than the commercially
reasonable and available insurable value thereof. If Lessor is the Insuring
Party, however, Lessee Owned Alterations and Utility Installations Trade
Fixtures, and Lessee's personal property shall be insured by Lessee under
Paragraph 8.4 rather than by Lessor. If the coverage is available an(
commercially appropriate, such policy or policies shall insure against all risks
of direct physical loss or damage (except the perils of flood and/or earthquake
unless required by a Lender or included in the Base Premium), including coverage
for debris removal and the enforcement of any Applicable Requirements requiring
the

<PAGE>

upgrading, demolition, reconstruction or replacement of any portion of the
Premises as the result of a covered loss. Said policy or policies shall also
contain an agreed valuation provision in lieu of any coinsurance clause, waiver
of subrogation, and inflation guard protection causing an increase in the annual
property insurance coverage amount by a factor of not less than the adjusted
U.S. Department of Labor Consumer Price Index for All Urban Consumers for the
city nearest to where the Premises are located. If such insurance coverage has a
deductible clause, the deductible amount shall not exceed $10,000 per
occurrence, and lessee shall be liable for such deductible amount in the event
of an Insured Loss.

         (b)      RENTAL VALUE. The Insuring Parties shall obtain and keep in
force a policy or policies in the name of Lessor, with loss payable to Lessor
and any Lender, insuring the loss of the full Rent for one (1) year. Said
insurance shall provide that in the event the Lease is terminated by reason of
an insured loss, the period of indemnity for such coverage shall be extended
beyond the date of the completion of repairs or replacement of the Premises, to
provide for one full year's loss of Rent from the date of any such loss. Said
insurance shall contain an agreed valuation provision in lieu of any coinsurance
clause, and the amount of coverage shall be adjusted annually to reflect the
projected Rent otherwise payable by Lessee, for the next twelve (12) month
period. Lessee shall be liable for any deductible amount in the event of such
loss.

         (c)

         8.4      LESSEE'S PROPERTY/BUSINESS INTERRUPTION INSURANCE.

                  (a)      PROPERTY DAMAGE. Lessee shall obtain and maintain
insurance coverage on all of Lessee's personal property, Trade Fixtures, and
Lessee Owned Alterations and Utility Installations. Such insurance shall be
full replacement cost coverage with a deductible of not to exceed $10,000 per
occurrence. The proceeds from any such insurance shall be used by Lessee for
the replacement of personal property, Trade Fixtures and Lessee Owned
Alterations and Utility Installations. Lessee shall provide Lessor with
written evidence that such insurance is in force.

                  (b)      BUSINESS INTERRUPTION. Lessee shall obtain and
maintain loss of income and extra expense insurance in amounts as will reimburse
Lessee for direct or indirect loss of earnings attributable to all perils
commonly insured against by prudent lessees in the business of Lessee or
attributable to prevention of access to the Premises as a result of such perils.

                  (c)      NO REPRESENTATION OF ADEQUATE COVERAGE. Lessor makes
no representation that the limits or forms of coverage of insurance specified
herein are adequate to cover Lessee's property, business operations or
obligations under this Lease.

         8.5      INSURANCE POLICIES. Insurance required herein shall be by
companies duly licensed or admitted 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, as set forth in the most current issue
of "Best's Insurance Guide", or such other rating as may be required by a
Lender. Lessee shall not do or permit to be done anything which invalidates the
required insurance policies. Lessee shall, prior to the Start Date, deliver to
Lessor certified copies of policies of such insurance or certificates evidencing
the existence and amounts of the required insurance. 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. Such policies shall be for a term of at least
one year, or the length of the remaining term of this Lease, whichever is less.
If either Party shall fail to procure and maintain the insurance required to be
carried by it, the other Party may, but shall not be required to, procure and
maintain the same.

         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 against the other, for loss of or damage
to its property arising out of or incident to the perils required to be insured
against herein. The effect of such releases and waivers is not limited by the
amount of insurance carried or required, or by any deductibles applicable
hereto. The Parties agree to have their respective property damage insurance
carriers 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 gross negligence or willful
misconduct, 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,
liens, judgments, penalties, attorneys' and consultants' fees, expenses and/or
liabilities arising out of, involving, or in connection with, the use and/or
occupancy of the Premises by Lessee. If any action or proceeding is brought
against Lessor by reason of any of the foregoing matters, Lessee shall upon
notice 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 defended or indemnified.

<PAGE>

         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, HVAC or lighting fixtures, or from any other cause,
whether the said injury or damage results from conditions arising upon the
Premises or upon other portions of the Building of which the Premises are a
part, or from other sources or places. Lessor shall not be liable for any
damages arising from any act or neglect of any other tenant of Lessor.
Notwithstanding Lessor's negligence or breach of this Lease, Lessor shall under
no circumstances be liable for injury to Lessee's business or for any loss of
income or profit therefrom.

9.       DAMAGE OR DESTRUCTION.

         9.1      DEFINITIONS.

                  (a)      "PREMISES PARTIAL DAMAGE" shall mean damage or
destruction to the improvements on the Premises, other than Lessee Owned
Alterations, Utility Installations and Trade Fixtures, which can reasonably be
repaired in six (6) months or less from the date of the damage or destruction.
Lessor shall notify Lessee in writing within thirty (30) days from the date of
the damage or destruction as to whether or not the damage is Partial or Total.

                  (b)      "PREMISES TOTAL DESTRUCTION" shall mean damage or
destruction to the Premises, other than Lessee Owned Alterations and Utility
Installations and Trade Fixtures, which cannot reasonably be repaired in six (6)
months or less from the date of the damage or destruction. Lessor shall notify
Lessee in writing within thirty (30) days from the date of the damage or
destruction as to whether or not the damage is Partial or Total.

                  (c)      "INSURED LOSS" shall mean damage or destruction to
improvements on 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 Requirements, and
without deduction for depreciation.

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

         9.2      PARTIAL DAMAGE - INSURED LOSS. If a Premises Partial Damage
that is an Insured Loss occurs, then Lessor shall, at Lessor's expense, repair
such damage (but not Lessee's Trade Fixtures or Lessee Owned Alterations and
Utility Installations) as soon as reasonably possible and this Lease shall
continue in full force and effect; provided, however, that Lessee shall, at
Lessor's election, make the repair of any damage or destruction the total cost
to repair of which is $10,000 or less, and, in such event, Lessor shall make any
applicable insurance proceeds available to Lessee on a reasonable basis for that
purpose. Notwithstanding the foregoing, if the required insurance was not in
force or the insurance proceeds are not sufficient to effect such repair, the
Insuring Party shall promptly contribute the shortage in proceeds as and when
required to complete said repairs. In the event, however, such shortage was due
to the fact that, by reason of the unique nature of the improvements, full
replacement cost insurance coverage was not commercially reasonable and
available, Lessor shall have no obligation to pay for the shortage in insurance
proceeds or to fully restore the unique aspects of the Premises unless Lessee
provides Lessor with the funds to cover same, or adequate 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, the party responsible for making the repairs
shall complete them as soon as reasonably possible and this Lease shall remain
in full force and effect. If such funds or assurance are not received, Lessor
may nevertheless elect by written notice to Lessee within ten (10) days
thereafter to: (i) 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; or (ii) have this Lease terminate thirty
(30) days thereafter. Lessee shall not be entitled to reimbursement of 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,
notwithstanding that there may be some insurance coverage, but the net proceeds
of any such insurance shall be made available for the repairs if made by either
Party.

         9.3      PARTIAL DAMAGE - UNINSURED LOSS. If a Premises Partial Damage
that is not an Insured Loss occurs, unless caused by a negligent or willful act
of Lessee (in which event Lessee shall make the repairs at Lessee's expense),
Lessor may 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) terminate this Lease by giving written notice to Lessee within
thirty (30) days after receipt by Lessor of knowledge of the occurrence of such
damage. Such termination shall be effective sixty (60) days following the date
of such notice. In the event Lessor elects to terminate this Lease, Lessee shall
have the right within ten (10) days after receipt of the termination notice to
give written notice to Lessor of Lessee's commitment to pay for the repair of
such damage without reimbursement from Lessor. Lessee shall provide Lessor with
said funds or satisfactory assurance thereof within thirty (30) days after
making such commitment. In such event this Lease shall continue in full force

<PAGE>

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 make the
required commitment, this Lease shall terminate as of the date specified in the
termination notice.

         9.4      TOTAL DESTRUCTION. Notwithstanding any other provision hereof,
if a Premises Total Destruction occurs, this Lease shall terminate sixty (60)
days following such Destruction. If the damage or destruction was caused by the
gross negligence or willful misconduct of Lessee, Lessor shall have the right to
recover Lessor's damages from Lessee, except as provided in Paragraph 8.6.

         9.5      DAMAGE NEAR END OF TERM. If at any time during the last six
(6) months of this Lease there is damage for which the cost to repair exceeds
one (1) month's Base Rent, whether or not an Insured Loss, Lessor may terminate
this Lease effective sixty (60) days following the date of occurrence of such
damage by giving a written termination notice to Lessee within thirty (30) days
after the date of occurrence of such damage. Notwithstanding the foregoing, 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 (i) the date which is ten 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 commercially
reasonable 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 on the date specified in the termination notice and Lessee's
option shall be extinguished.

         9.6      ABATEMENT OF RENT; LESSEE'S REMEDIES.

                  (a)      ABATEMENT. In the event of Premises Partial Damage or
Premises Total Destruction or a Hazardous Substance Condition for which Lessee
is not responsible under this Lease, the Rent payable by Lessee for the period
required for the repair, remediation or restoration of such damage shall be
abated in proportion to the degree to which Lessee's use of the Premises is
impaired, but not to exceed the proceeds received from the Rental Value
insurance. All other obligations of Lessee hereunder shall be performed by
Lessee, and Lessor shall have no liability for any such damage, destruction,
remediation, repair or restoration except as provided herein.

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

         9.7      TERMINATION - ADVANCE PAYMENTS. Upon termination of this Lease
pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable adjustment shall be
made concerning advance Base Rent and any other advance payments made by Lessee
to Lessor. Lessor shall, in addition, return to Lessee so much of Lessee's
Security Deposit as has not been, or is not then required to be, used by Lessor.

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

10.      REAL PROPERTY TAXES.

         10.1     DEFINITION OF "REAL PROPERTY TAXES." As used herein, the term
"Real Property Taxes" shall include any form of assessment; real estate,
general, special, ordinary or extraordinary, or rental levy or tax (other than
inheritance, personal income or estate taxes); improvement bond; and/or license
fee imposed upon or levied against any legal or equitable interest of Lessor in
the Premises, Lessor's right to other income therefrom, and/or Lessor's business
of leasing, by any authority having the direct or indirect power to tax and
where the funds are generated with reference to the Building address and where
the proceeds so generated are to be applied by the city, county or other local
taxing authority of a jurisdiction within which the Premises are located. 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 during
the term of this Lease, including, but not limited to, a change in the ownership
of the Premises.

         10.2     (a)      PAYMENT OF TAXES. Lessee shall pay the Real Property
Taxes applicable to the Premises provided during the term of this Lease. Subject
to paragraph 10.2(b), all such payments shall be made at least ten (10) days
prior to any delinquency date. Upon Lessor's request Lessee shall promptly
furnish Lessor with satisfactory evidence that such taxes have been paid. if any
such taxes shall cover any period of time prior to or after the expiration or
termination of this Lease, Lessee's share of such taxes shall be prorated bto
cover only that portion of the tax bill applicable to the period that this lease
is in effect, and Lessor shall reimburse lessee for any

<PAGE>

overpayment. If Lessee shall fail to pay any required Real Property taxes,
Lessor shall have the right to pay the same, and Lessee shall reimburse Lessor
therefor upon demand.

                  (b)

         10.3     JOINT ASSESSMENT. If the Premises are not separately assessed,
Lessee's liability shall be an equitable proportion of the Tax Increase for all
of the land and improvements included within the tax parcel assessed, such
proportion to be conclusively determined by Lessor from the respective
valuations assigned in the assessor's work sheets or such other information as
may be reasonably available.

         10.4     PERSONAL PROPERTY TAXES. Lessee shall pay, prior to
delinquency, all taxes assessed against and levied upon Lessee Owned
Alterations, Utility Installations, Trade Fixtures, furnishings, equipment and
all personal property of Lessee. When possible, Lessee shall cause such property
to be assessed and billed separately from the real property of Lessor. If any of
Lessee's said personal property shall be assessed with Lessor's real property,
Lessee shall pay Lessor the taxes attributable to Lessee's property within ten
(10) days after receipt of a written statement.

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

12.      ASSIGNMENT END SUBLETTING.

         12.1     LESSOR'S CONSENT REQUIRED. See Addendum paragraphs 51 and 57.

                  (a)      Lessee shall not voluntarily or by operation of law
assign, transfer, mortgage or encumber (collectively, "ASSIGN OR ASSIGNMENT") or
sublet ail or any part of Lessee's interest in this Lease or in the Premises
without Lessor's prior written consent.

                  (b)      A change in the control of Lessee shall constitute
an assignment requiring consent. The transfer, on a cumulative basis, of
fifty-one percent (51%) or more of the voting control of Lessee without
Lessor's prior written consent 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, transfer, leverage 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 by an amount
greater than twenty-five percent (25%) of such Net Worth as it was represented
at the time o! the execution 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, whichever was or
is greater, shall be considered an assignment of this Lease to which Lessor may
withhold its consent. "NET WORTH OF LESSEE" shall mean the net worth of Lessee
(excluding any guarantors) established under generally accepted accounting
principles.

                  (d)      An assignment or subletting without consent shall, at
Lessor's option, be a Default curable after notice per Paragraph 13.1(c), or a
noncurable Breach without the necessity of any notice and grace period. If
Lessor elects to treat such unapproved assignment or subletting as a noncurable
Breach, Lessor may either: (i) terminate this Lease, or (ii) upon thirty (30)
days written notice, increase the monthly Base Rent to one hundred ten percent
(110%) of the Base Rent then in effect. 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 one hundred ten percent
(110%) of the price previously in effect, and (ii) all fixed and non-fixed
rental adjustments scheduled during the remainder of the Lease term shall be
increased to one hundred ten percent (110%) of the scheduled adjusted rent.

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

<PAGE>

         12.2     TERMS AND CONDITIONS APPLICABLE TO ASSIGNMENT AND SUBLETTING.

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

                  (b)      Lessor may accept 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 Rent or performance shall constitute a waiver or estoppel
of Lessor's right to exercise its remedies for Lessee's Default or Breach.

                  (c)      Lessor's consent to any assignment or subletting
shall not constitute a consent to any subsequent assignment or subletting.

                  (d)      In the event of any Default or Breach by Lessee,
Lessor may proceed directly against Lessee, any Guarantors or anyone else
responsible for the performance of Lessee's obligations under this Lease,
including any assignee or sublessee, without first exhausting Lessor's remedies
against any other person or entity responsible therefore 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 fee of not to exceed $1,000 as consideration for Lessor's
considering and processing said request. Lessee agrees to provide Lessor with
such other or additional information and/or documentation as may be reasonably
requested.

                  (f)      Any assignee of, or sublessee under, this Lease
shall, by reason of accepting such assignment or entering into such sublease, be
deemed 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 to in writing.

         12.3     ADDITIONAL TERMS AND CONDITIONS APPLICABLE TO SUBLETTING. The
following terms and conditions shall apply to any subletting by Lessee of all or
any part of the Premises and shall be deemed included in all subleases under
this Lease whether or not expressly incorporated therein:

                  (a)      Lessee hereby assigns and transfers to Lessor all of
Lessee's interest in all Rent payable on any sublease, and Lessor may collect
such Rent and apply same toward Lessee's obligations under this Lease; provided,
however, that until a Breach shall occur in the performance of Lessee's
obligations, Lessee may collect said Rent subject to Lessor's right to receive
bonus rent, if any, pursuant to Addendum Paragraphs.. Lessor shall not, by
reason of the foregoing or any assignment of such sublease, nor by reason of the
collection of Rent, be deemed liable to the sublessee for any failure of Lessee
to perform and comply with any of Lessee's obligations to such sublessee. 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 all Rent due and to
become due under the sublease. Sublessee shall rely upon any such notice from
Lessor and shall pay all Rents to Lessor without any obligation or right to
inquire as to whether such Breach exists, notwithstanding any claim from Lessee
to the contrary.

                  (b)      In the event of a Breach by Lessee, Lessor may, at
its option, require 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 prior Defaults or Breaches
of such sublessor.

                  (c)      Any matter requiring the consent of the sublessor
under ,, sublease shall also require the consent of Lessor.

                  (d)      See Addendum paragraph 57(a).

                  (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 sublessee.

13.      DEFAULT; BREACH; REMEDIES.

<PAGE>

         13.1     DEFAULT; BREACH. A "DEFAULT" is defined as a failure by the
Lessee to comply with or perform any of the terms, covenants, conditions or
rules under this Lease. A "BREACH" is defined as the occurrence of one or more
of the following Defaults, and the failure of Lessee to cure such Default within
any applicable grace period:

                  (a)      The abandonment of the Premises; or the vacating of
the Premises without providing a commercially reasonable level of security,
and/or Security Deposit or where the coverage of the property insurance
described in Paragraph 8.3 is jeopardized as a result thereof, or without
providing reasonable assurances to minimize potential vandalism.

                  (b)      The failure of Lessee to make any payment of Rent or
any Security Deposit required to be made by Lessee hereunder, whether to Lessor
or to a third party, when due, to provide reasonable evidence of insurance or
surety bond, or to fulfill any obligation under this Lease which endangers or
threatens life or property, where such failure continues for a period of three
(3) business days following written notice to Lessee.

                  (c)      The failure by Lessee to provide (i) reasonable
written evidence of compliance with Applicable Requirements, (ii) the service
contracts, (iii) the rescission of an unauthorized assignment or subletting,
(iv) Estoppel Certificate, (v) a requested subordination, where any such
failure continues for a period of ten (10) days following written notice 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, 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; 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 if 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 of any general arrangement or assignment for the benefit of
creditors; (ii) becoming a "debtor" as defined in 11 U.S.C. ss. 101 or any
successor statute thereto (unless, in the case of a petition filed against
Lessee, the same is dismissed within sixty (60) days); (iii) the appointment
of a trustee or receiver to take possession of substantially all of Lessee's
assets located at the Premises or of Lessee's interest in this Lease, where
possession is not restored to Lessee within sixty (60) days; or (iv) the
attachment, execution or other judicial seizure of substantially all of
Lessee's assets located at the Premises or of Lessee's interest in this
Lease, where such seizure is not discharged within sixty (60) days; provided,
however, in the event that any provision of this subparagraph 13.1 (e) is
contrary to any applicable law, such provision shall be of no force or
effect, and not affect the validity of the remaining provisions.

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

                  (g)

         13.2     REMEDIES. In the event of the Breach of this Lease by Lessee,
Lessor may, at its option, 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 upon receipt of invoice therefor. If any check given to Lessor by Lessee
shall not be honored by the bank upon which is drawn, Lessor, at its option, may
require all future payments to be made by Lessee to be by cashier's check, in
the event of a Breach, Lessor may, 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:

                  (a)      Terminate Lessee's right to possession of the
Premises by any lawful means, in which case this Lease shall terminate and
Lessee shall immediately surrender possession to Lessor. In such event Lessor
shall be entitled to recover from Lessee: (i) 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 proximately caused by the Lessee's failure to
perform its obligations under

<PAGE>

this Lease or which in the ordinary course of things would be likely to result
therefrom, including, but not limited to, the cost of recovering possession of
the Premises, expenses of reletting, including necessary renovation and
alteration of the Premises, reasonable attorneys' fees, and that portion of 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 the District within which the Premises are located at the time of award
plus one percent (1%). Efforts by Lessor to mitigate damages caused by Lessee's
Breach of this Lease shall not waive Lessor's right to recover damages under
Paragraph 12. If termination of this Lease is obtained through the provisional
remedy of unlawful detainer, Lessor shall have the right to recover in such
proceeding any 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. If a
notice and grace period required under Paragraph 13.1 was not previously given,
a notice to pay rent or quit, or to perform or quit given to Lessee under the
unlawful detainer statute shall also constitute the notice required by Paragraph
13.1. In such case, the applicable grace period required by Paragraph 13.1 and
the unlawful detainer statute shall run concurrently, and the failure of Lessee
to cure the Default within the greater of the two such grace periods shall
constitute both an unlawful detainer and a Breach of this Lease 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
and recover the Rent as it becomes due, in which event Lessee may sublet or
assign, subject only to reasonable limitations. Acts of maintenance, efforts to
relet, and/or the appointment of a receiver to protect the Lessor's interests,
shall not constitute a termination of the Lessee's right to possession.

                  (c)      Pursue any other remedy now or hereafter available
under the laws or judicial decisions of the state wherein the Premises are
located. The expiration or termination of this Lease and/or the termination of
Lessee's right to possession shall not relieve Lessee from liability under any
indemnity provisions of this Lease as to matters occurring or accruing during
the term hereof prior to such termination or by reason of Lessee's occupancy of
the Premises.

         13.3

         13.4     LATE CHARGES. Lessee hereby acknowledges that late payment by
Lessee of Rent 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 any Lender. See Addendum Paragraph
58. The parties hereby agree that such late charge represents a fair and
reasonable estimate of the costs Lessor will incur by reason of such late
payment. 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 the exercise of 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 any
provision of this Lease to the contrary, Base Rent shall, at Lessor's option,
become due and payable quarterly in advance.

         13.5     INTEREST. Any monetary payment due Lessor hereunder, other
than late charges, not received by Lessor, when due as to scheduled payments
(such as Base Rent) or within thirty (30) days following the date on which it
was due for non-scheduled payment, shall bear interest from the date when due,
as to scheduled payments, or the thirty-first (31st) day after it was due as to
non-scheduled payments. The interest ("Interest") charged shall be equal to the
prime rate reported in the Wall Street Journal as published closest prior to the
date when due plus four percent (4%), but shall not exceed the maximum rate
allowed by law. Interest is payable in addition to the potential late charge
provided for in Paragraph 13.4.

         13.6     BREACH BY LESSOR.

                  (a)      NOTICE OF BREACH. 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, a
reasonable time shall in no event be less than thirty (30) days after receipt by
Lessor, and any Lender whose name and address shall have been furnished Lessee
in writing for such purpose, of written notice specifying wherein such
obligation of Lessor has not been performed; provided, however, that if the
nature of Lessor's obligation is such that more than thirty (30) days are
reasonably required for its performance, then Lessor shall not be in breach if
performance is commenced within such thirty (30) day period and thereafter
diligently pursued to completion.

<PAGE>

                  (b)      PERFORMANCE BY LESSEE ON BEHALF OF LESSOR. in the
event that neither Lessor nor Lender cures said breach within thirty (30) days
after receipt of said written notice, or if having commenced said cure they do
not diligently pursue it to completion, then Lessee may elect to cure said
breach at Lessee's expense and offset from Rent an amount equal to the greater
of one month's Base Rent or the Security Deposit, and to pay an excess of such
expense under protest, reserving Lessee's right to reimbursement from Lessor.
Lessee shall document the cost of said cure and supply said documentation to
Lessor.

14.      CONDEMNATION.  See  Addendum  Paragraph  59.

15. BROKERS' FEE.

         15.1

         15.2     ASSUMPTION OF OBLIGATIONS. Any buyer or transferee of Lessor's
interest in this Lease shall be deemed to have assumed Lessor's obligation
hereunder. Each Broker shall be a third party beneficiary of the provisions of
Paragraphs 1.10, 15, 22 and 31. If Lessor fails to pay to a Broker any amounts
due as and for commissions pertaining to this Lease when due, then such amounts
shall accrue Interest. In addition, if Lessor fails to pay any amounts to
Lessee's Broker when due, Lessee's Broker may send written notice to Lessor and
Lessee of such failure and if Lessor fails to pay such amounts within ten (10)
days after said notice, Lessee shall pay said monies to its Broker and offset
such amounts against Rent. In addition, Lessee's Broker shall be deemed to be a
third party beneficiary of any commission agreement entered into by and/or
between Lessor and Lessor's Broker.

         15.3     REPRESENTATIONS AND INDEMNITIES OF BROKER RELATIONSHIPS.
Lessee and Lessor each represent and warrant to the other that it has had no
dealings with any person, firm, broker or finder (other than the Brokers, if
any) in connection with this Lease, and that no one other than said named
Brokers is entitled to any commission or finder's fee in connection herewith.
Lessee and Lessor do each hereby agree to indemnify, protect, defend and hold
the other harmless from and against liability for compensation or charges which
may be claimed by any such unnamed broker, finder or other similar party 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.      ESTOPPEL CERTIFICATES.

                  (a)      See Addendum Paragraph 60.

                  (b)      If the Responding Party shall fail to execute or
deliver the Estoppel Certificate within such ten day period, the Requesting
Party may execute an Estoppel Certificate stating that: (i) the Lease is in full
force and effect without modification except as may be represented by the
Requesting Party; (ii) there are no uncured defaults in the Requesting Party's
performance; and (iii) if Lessor is the Requesting Party, not more than one
month's rent has been paid in advance. Prospective purchasers and encumbrancers
may rely upon the Requesting Party's Estoppel Certificate, and the Responding
Party shall be estopped from denying the truth of the facts contained in said
Certificate.

<PAGE>

                  (c)      If Lessor desires to finance, refinance, or sell the
Premises, or any part thereof, Lessee and all Guarantors shall deliver to any
potential lender or purchaser designated by Lessor such financial statements 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.      DEFINITION OF LESSOR. The term "Lessor" as used herein shall mean the
         owner or owners at the time in question of the fee title to the
         Premises, or, if this is a sublease, of the Lessee's interest in the
         prior lease. In the event of a transfer of Lessor's title or interest
         in the Premises or this Lease, Lessor shall deliver to the transferee
         or assignee (in cash or by credit) any unused Security Deposit held by
         Lessor. Except as provided in Paragraph 15, upon such transfer or
         assignment and delivery of the Security Deposit, as aforesaid, the
         prior Lessor shall be relieved of all liability with respect to the
         obligations and/or covenants under this Lease thereafter to be
         performed by the Lessor. Subject to the foregoing, the obligations
         and/or covenants in this Lease to be performed by the Lessor shall be
         binding only upon the Lessor as hereinabove defined. Notwithstanding
         the above, and subject to the provisions of Paragraph 20 below, the
         original Lessor under this Lease, and all subsequent holders of the
         Lessor's interest in this Lease shall remain liable and responsible
         with regard to the potential duties and liabilities of Lessor
         pertaining to Hazardous Substances as outlined in Paragraph 6 above.

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.      DAYS. Unless otherwise specifically indicated to the contrary, the word
         "days" as used in this Lease shall mean and refer to calendar days.

20.      LIMITATION ON LIABILITY. Subject to the provisions of Paragraph 17
         above, the obligations of Lessor under this Lease shall not constitute
         personal obligations of Lessor, the individual partners of Lessor or
         its or their individual partners, directors, officers or shareholders,
         and Lessee shall look to the Premises, and to no other assets of
         Lessor, for the satisfaction of any liability of Lessor with respect to
         this Lease, and shall not seek recourse against the individual partners
         of Lessor, or its or their individual partners, directors, officers or
         shareholders, or any of their personal assets for such satisfaction.

21.      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.

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.

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

         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 date is shown, the postmark
thereon. If sent by regular mail the notice shall be deemed given forty-eight
(48) hours after the same is addressed as required herein and mailed with
postage prepaid. Notices delivered by United States Express Mail or overnight
courier that guarantee next day delivery shall be deemed given twenty-four (24)
hours after delivery of the same to the Postal Service or courier. Notices
transmitted by facsimile transmission or similar means shall be deemed delivered
upon telephone confirmation of receipt, provided a copy is also delivered via
delivery or mail. If notice is received on a Saturday, Sunday or 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 of any

<PAGE>

         other term, covenant or condition hereof. Lessor's consent to, or
         approval of, any act shall not be deemed to render unnecessary the
         obtaining of Lessor's consent to, or approval of, any subsequent or
         similar act by Lessee, or be construed as the basis of an estoppel to
         enforce the provision or provisions of this Lease requiring such
         consent. The acceptance of Rent by Lessor shall not be a waiver of any
         Default or Breach by Lessee. Any payment by Lessee may be accepted by
         Lessor on account of monies 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 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 termination of
         this Lease. In the event that Lessee holds over, then the Base Rent
         shall be increased to one hundred fifty percent (150%) of the Base Rent
         applicable during the month immediately preceding the expiration or
         termination. Nothing contained herein shall be construed as 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; CONSTRUCTION OF AGREEMENT. All provisions of
         this Lease to be observed or performed by Lessee are both covenants and
         conditions. In construing this Lease, all headings and titles are for
         the convenience of the Parties only and shall not be considered a part
         of this Lease. Whenever required by the context, the singular shall
         include the plural and vice versa. This Lease shall not be construed as
         if prepared by one of the Parties, but rather according to its fair
         meaning as a whole, as if both Parties had prepared it.

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. Subject to Paragraph 30.3 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 upon the Premises, to any and all
advances made on the security thereof, and to all renewals, modifications, and
extensions thereof. Lessee agrees that the holders of any such Security Devices
(in this Lease together referred to as "Lessor's Lender") shall have no
liability or obligation to perform any of the obligations of Lessor under this
Lease. Any Lender may elect to have this Lease and/or any Option granted hereby
superior to the lien of its Security Device by giving written notice thereof to
Lessee, whereupon 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 (1) 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 a commercially reasonable non-disturbance
agreement (a "Non-Disturbance Agreement") from the Lender which Non-Disturbance
Agreement provides that Lessee's possession of the Premises, 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. Further, within sixty (60) days after the execution of this Lease,
Lessor shall use its commercially reasonable efforts to obtain a Non-Disturbance
Agreement from the holder of any pre-existing Security Device which is secured
by the Premises. In the event that Lessor is unable to provide the
Non-Disturbance Agreement within said sixty (60) days, then Lessee may, at
Lessee's option, directly contact Lessor's lender and attempt to negotiate for
the execution and delivery of a Non-Disturbance Agreement.

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

<PAGE>

31.      ATTORNEYS' FEES. If any Party or Broker brings an action or proceeding
         involving the Premises to enforce the terms hereof or to 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' fees 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. In
         addition, Lessor shall be entitled to attorneys' fees, costs and
         expenses incurred in the preparation and service of notices of Default
         and consultations in connection therewith, whether or not a legal
         action is subsequently commenced in connection with such Default or
         resulting Breach.

32.      LESSOR'S ACCESS; SHOWING PREMISES; REPAIRS. [See Addendum Paragraph 61]

33.      AUCTIONS. Lessee shall not conduct, nor permit to be conducted, any
         auction upon the Premises without Lessor's prior written consent.
         Lessor shall not be obligated to exercise any standard of
         reasonableness in determining whether to permit an auction.

34.      SIGNS. See Addendum Paragraph 62.

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, that Lessor may
         elect to continue any one or all existing subtenancies. Lessor's
         failure within ten (10) days following any such event to elect 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. Except 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, 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 upon receipt of an invoice and
         supporting documentation therefor. Lessor's consent to any act,
         assignment or subletting 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. The failure to specify herein any particular
         condition to Lessor's consent shall not preclude the imposition by
         Lessor at the time of consent of such further or other conditions as
         are then reasonable with reference to the particular matter for which
         consent is being given. In the event that either Party disagrees with
         any determination made by the other hereunder and reasonably requests
         the reasons for such determination, the determining party shall furnish
         its reasons in writing and in reasonable detail within ten (10)
         business days following such request.

37.

         37.1

         37.2

38.      QUIET POSSESSION. Subject to payment by Lessee of the Rent and
         performance of all of the covenants, conditions and provisions on
         Lessee's part to be observed and performed under this Lease, Lessee
         shall have quiet possession and quiet enjoyment of the Premises during
         the term hereof. Any remedy for breach of this provision shall be
         limited to damages or injunction and not Lease termination.

39.      OPTIONS.

<PAGE>

         39.1     DEFINITION. "Option" shall mean: (a) the right to extend the
term of or renew this Lease or to extend or renew any lease that Lessee has on
other property of Lessor; (b) the right of first refusal or first offer to lease
either the Premises or other property of Lessor; (c) the right to purchase or
the right of first refusal to purchase the Premises or 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, and cannot be assigned
or exercised by anyone other than said original Lessee and only while the
original Lessee is in full possession of the Premises and, if requested by
Lessor, with Lessee certifying that Lessee has no intention of thereafter
assigning or subletting.

         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 have been validly exercised.

         39.4     EFFECT OF DEFAULT ON OPTIONS.

                  (a)      Lessee shall have no right to exercise an Option: (i)
during the period commencing with the giving of any notice of Default and
continuing until said Default is cured; (ii) during the period of time any Rent
is unpaid (without regard to whether notice thereof is given Lessee); (iii)
during the time Lessee is in Breach of this Lease.

                  (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)      An Option shall terminate and be of no further force
or effect, notwithstanding Lessee's due and timely exercise of the Option, if,
after such exercise and prior to the commencement of the extended term, if
Lessee commits a Breach of this Lease and Lessor terminates this Lease,

40.      MULTIPLE BUILDINGS. If the Premises are a part of a group of buildings
         controlled by Lessor Lessee agrees that it will observe all reasonable
         rules and regulations which Lessor may make from time to time for the
         management, safety, and care of said properties, including the care and
         cleanliness of the grounds and including the parking, loading and
         unloading of vehicles, and that Lessee will pay its fair share of
         common expenses incurred in connection therewith.

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

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

44.      AUTHORITY. If either Party hereto is a corporation, trust, limited
         liability company, partnership, or similar entity, 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. Each Party shall, within thirty (30) days after request,
         deliver to the other party satisfactory evidence 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 Party or their agent and
         submission of same to the other Party shall not be deemed an offer to
         lease to the other Party. This Lease is not intended to be binding
         until executed and delivered by all Parties hereto.

<PAGE>

47.      AMENDMENTS. This Lease may be modified only in writing, signed by the
         Parties in interest at the time of the modification. As long as they do
         not materially change Lessee's obligations hereunder, Lessee agrees to
         make such reasonable non-monetary modifications to this Lease as may be
         reasonably required by a Lender in connection with the obtaining of
         normal financing or refinancing of the Premises.

48.      MULTIPLE PARTIES. If more than one person or entity is named herein as
         either Lessor or Lessee, such multiple Parties shall have joint and
         several responsibility to comply with the terms of this Lease.

49.      MEDIATION AND ARBITRATION OF DISPUTES. An Addendum requiring the
         Mediation and/or the Arbitration of all disputes between the Parties
         and/or Brokers arising out of this Lease / / is /X/ is not attached to
         this Lease.

         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.

<PAGE>

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

ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AMERICAN
INDUSTRIAL REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY,
LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT
RELATES. THE PARTIES ARE URGED TO:

1.       SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS
LEASE.

2.       RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION
OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE
POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES, THE
STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, AND THE
SUITABILITY OF THE PREMISES FOR LESSEE'S INTENDED USE.

WARNING: IF THE PREMISES IS LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN
PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE
STATE IN WHICH THE PREMISES IS LOCATED.
--------------------------------------------------------------------------------

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

<TABLE>
<CAPTION>

<S><C>
Executed at: Palo Alto , CA                  Executed at:  Palo Alto, CA

on:  October 14, 1999                        on:
                                                 ----------------
by   LESSOR:                                 by   LESSEE:

MARIE A. BATTON, TRUSTEE OF THE              OMNICELL TECHNOLOGIES, INC., a California

W.F. BATTON AND MARIE A. BATTON              corporation

TRUST UTA DATED January 12, 1988,

As Amended

By:  /s/ Marie Barton                        By:  /s/ Earl E. Fry

Name Printed: Marie A. Batton                Name Printed: Earl E. Frey

Title:  Trustee                              Title:
                                                   -----------------------------------------
By:                                          By:
   --------------------------------------       --------------------------------------------
Name Printed:                                Name Printed:
             ----------------------------                 ----------------------------------
TITLE:                                       Title:
-----------------------------------------          -----------------------------------------
Address: 1190 East Meadow Drive              Address: Palo Alto, California 94303-4269

Telephone: (650) 494-7471                    Telephone: (   )
                                                        ------------------------------------
Facsimile: (650) 494-6904                    Facsimile: (   )
                                                        ------------------------------------
Federal ID No.                               Federal ID No.
              ---------------------------                  ---------------------------------
</TABLE>

NOTE:    These forms are often modified to meet changing requirements of law and
         industry needs. Always write or call to make sure you are utilizing the
         most current form: AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION, 700 So.
         Flower Street, Suite 600, Los Angeles, California 90017. (213)
         687-8777. Fax No.  (213) 687-8616

<PAGE>

                                ADDENDUM TO LEASE

                             1085 East Meadow Circle
                              Palo Alto, California

         This Addendum to Lease is entered into as of September 24, 1999, by and
between MARIE A. BATTON, TRUSTEE OF THE W.F. BATTON AND MARIE A. BATTON TRUST
UTA DATED JANUARY 12, 1988, AS AMENDED, Lessor, and OMNICELL TECHNOLOGIES, INC.,
a California corporation, Lessee, for the Premises at 1085 East Meadow Circle,
Palo Alto, California.

         Lessor and Lessee further agree as follows:

         50.      BASE RENT.

         (a)      Lessee shall pay to Lessor Base Rent per month based upon the
                  Premises consisting of 18,360 rentable square feet, as
                  follows:
<TABLE>
<CAPTION>

                                                                               Base Rent
         Period                                       Rental Rate              Per Month
         ------                                       -----------              ---------
<S>                                          <C>                               <C>
December 15, 1999 -December 14, 2000         $2.25/Sq.  Ft./Mo.  NNN           $41,310.00
December 15, 2000 -December 14, 2001         $2.33/Sq.  Ft./Mo.  NNN           $42,778.80
December 15, 2001 -December 14, 2002         $2.41/Sq.  Ft./Mo.  NNN           $44,247.60
December 15, 2002 -December 14, 2003         $2.49/Sq.  Ft./Mo.  NNN           $45,716.40
December 15, 2003 -December 14, 2004         $2.58/Sq.  Ft./Mo.  NNN           $47,368.80
</TABLE>

         (b)      Lessee shall pay to Lessor upon the execution and delivery of
                  this Lease the sum of $41,310 as Base Rent for the period
                  December 15, 1999 to January 14, 2000.

         (c)      Prior to Lessee occupying the Premises on the Early Possession
                  Date, Lessee shall deliver to Lessor a certificate of
                  insurance and waiver of subrogation.

         51.      OPTION TO EXTEND. Lessee shall have one (1) five (5) year
option to extend the Lease at one hundred percent (100%) of the then fair market
rent. In no event shall rent in the option period be less than the rent paid in
the last year of the initial term. Said option to extend shall not be exercised
by Lessee for the purpose of making a profit on a sublease. Assignment of the
Lease or subletting of the Premises or any portion thereof by Lessee during the
option extension period shall be subject to the prior written consent of Lessor
and shall be subject to the provisions of Paragraph 12 as supplemented by this
Paragraph 51. Assignment of the Lease or subletting of the Premises during the
option extension period shall also be subject to the prior written approval of
the Ground Lessor in accordance with the Ground Lease. Lessor may condition
Lessor's consent to an assignment or subletting to Lessor receiving fifty
percent (50%) of the bogus rent, if any, after deducting only a standard leasing
commission payable by Lessee which shall be subject to Lessor's prior written
approval, which approval shall not be unreasonably withheld. Any assignment or
sublease to which Lessor and the Ground Lessor consent in the first instance
shall expressly prohibit any further assignment or subletting of all or any
portion of the Premises by such initial assignee or sublessee. At Lessor's
option, Lessor may terminate the Lease and recapture the Premises upon

<PAGE>

receipt by Lessor of a request from Lessee for Lessor's consent to an assignment
or subletting of all or any portion of the Premises. If Lessor elects to
terminate this Lease, (a) as of the effective date of termination, Lessor and
Lessee shall be released and discharged from any liability or obligation to the
other under this Lease which accrues thereafter, and (b) Lessee agrees that
Lessor may enter into a direct lease with such proposed assignee or sublessee
without any obligation or liability to Lessee.

         Lessee may exercise the option to extend by giving written notice of
exercise to Lessor at least six (6) months but not more than twelve (12) months
prior to the expiration of the initial Lease term, provided that if Lessee is
currently in default under the Lease at the time of exercise of the option or at
the commencement date of the option extension period, such notice shall be void
and of no force or effect and the option shall lapse. If exercised, the option
extension period shall be upon the same terms and conditions as the initial
Lease term, except that (i) the initial monthly Base Rent and rental adjustments
during the option period shall be one hundred percent (100%) of the then fair
market rent as agreed upon by the parties within thirty (30) days after the
exercise of the option or if the parties are unable to agree, then by appraisal,
but the initial monthly Base Rent shall not be less than the monthly Base Rent
payable during the last twelve (12) months of the initial Lease term and the
periodic adjustments of Base Rent shall not be less than the annual percentage
adjustments of Base Rent for the initial term as provided in Paragraph 50(a);
and (ii) there shall be no additional option to extend. If Lessee does not
exercise the option to extend at least six (6) months prior to the expiration of
the initial term, the option shall lapse, time being of the essence.

         52.      CONDITION OF THE PREMISES; TENANT IMPROVEMENTS.

         (a)      Prior to the occupancy of the Premises by Lessee, Lessor shall
                  cause to be constructed and completed the Tenant Improvements
                  to the Premises listed on the schematic plan prepared by LRS
                  Architects dated August 27, 1999, a copy of which has been
                  delivered by Lessor to Lessee and is incorporated by reference
                  herein. Lessor shall cause the Tenant Improvements to be
                  constructed by Dymond Construction Group (the "Contractor")
                  pursuant to an Agreement between Lessor and the Contractor
                  (the "Construction Contract"). The Construction Contract shall
                  be subject to Lessee's approval, which approval shall not be
                  unreasonably withheld. A copy of the approved Construction
                  Contract shall be attached hereto as EXHIBIT "A." Any
                  additional working drawings for the Tenant Improvements shall
                  be prepared by LRS Architects at Lessor's expense. The
                  Construction Contract and the working drawings for the Tenant
                  Improvements shall be subject to approval by Lessee, which
                  approval shall not be unreasonably withheld. The Construction
                  Contract shall include a guarantee by the Contractor against
                  defects in workmanship or materials for one (1) year. The
                  electrical system, HVAC ..system, and plumbing in the Premises
                  shall be in good working order upon completion of the Tenant
                  Improvements.

         (b)      The total cost of the Tenant Improvements is estimated to be
                  approximately Eight Hundred Fifty Thousand Dollars ($850,000).
                  Lessor shall pay (1) the cost of certain basic upgrades and
                  improvements to the Premises at a cost of approximately Three
                  Hundred Thirty-Five Thousand Dollars ($335,000), and (2)the
                  additional sum of Two Hundred Thirty-Five Thousand Dollars
                  ($235,000) as Lessor's Tenant Improvement Allowance. The sum
                  of said two (2) amounts is referred to as "Lessor's
                  Contribution" to the cost of the Tenant Improvements. Lessee
                  shall pay to Lessor in a lump sum in cash promptly upon
                  completion of the Tenant Improvements and receipt by Lessee of
                  an invoice therefore from Lessor, that portion of the cost of
                  the Tenant Improvements which exceeds Lessor's Contribution
                  plus the added cost of any change orders requested by Lessee
                  pursuant to Paragraph 52(c).

<PAGE>

         (c)      After the working drawings have been approved by Lessor and
                  Lessee in final form in writing as provided above, Lessee
                  shall have the right to request change orders to the Tenant
                  Improvements. Any change order requested by Lessee shall be
                  subject to the prior written approval of Lessor, which consent
                  shall not be unreasonably withheld or delayed provided that
                  Lessee agrees to pay in a lump sum in cash promptly upon
                  completion of the Tenant Improvements any increase in the cost
                  of the Tenant Improvements resulting from such change order,
                  and provided further that if any change order results in a
                  delay in the completion of the Tenant Improvements beyond
                  December 15, 1999, the rent commencement shall be December 15,
                  1999.

         (d)      All of the Tenant Improvements shall become a part of the
                  realty and shall remain with the property upon the expiration
                  or sooner termination of this Lease, except for items which
                  Lessor and Lessee agree in writing prior to commencement of
                  construction may be or shall be removed by Lessee.

         (e)      If the Tenant Improvements are not completed by December 15,
                  1999 due solely to delays caused by Lessee which are
                  documented by Lessor and/or the Contractor, the Commencement
                  Date and rent commencement shall be December 15, 1999.

         53.      ALTERATIONS OR IMPROVEMENTS. If Lessee shall desire to make
any Alterations or improvements to the Premises, or any part or parts thereof at
any time or times during the term of this Lease or the option period, the same
shall be subject to Lessor's prior written approval, and if approved, such
Alterations shall be constructed without cost or expense to Lessor, in
accordance with the requirements of all laws, ordinances, codes, orders, rules
and regulations of all governmental authorities having jurisdiction over the
Premises. Should any modifications require a building permit, such work shall be
done by a licensed contractor. Subsequent structural or design modifications to
the Premises involving a cost of more than Twenty-Five Thousand Dollars
($25,000) shall not be made until the Ground Lessor has given its written
approval of detailed plans and specifications for the work. Lessor shall have
the right to require Lessee to restore the Premises to their original condition
on occupancy when the Lease expires or terminates. Upon request from Lessee,
Lessor shall advise Lessee in writing whether Lessor reserves the right to
require Lessee to remove any specific Alterations or Utility Installations from
the Premises upon the termination of the Lease. Otherwise, the Premises shall be
returned to Lessor in "clean" condition including carpet cleaning and repair of
any damages,

         54.      HAZARDOUS SUBSTANCES.

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

<PAGE>

                  Premises or neighboring properties to any meaningful risk of
                  contamination or damage or expose Lessor to any liability
                  therefor. Prior to the occupancy of the Premises by Lessee,
                  Lessee shall deliver to Lessor a list of the Hazardous
                  Substances which Lessee considers to be ordinary and customary
                  materials reasonably required to be used by Lessee in the
                  normal course of Lessee's permitted use of the Premises. If
                  Lessor concurs therewith, Lessor shall so confirm in writing
                  to Lessee, and such confirmation shall constitute Lessor's
                  consent to the existence, use, manufacture, storage, and
                  transportation of-such Hazardous Substances in, on, and about
                  the Premises during the term of this Lease.

         (b)      DUTY TO INFORM LESSOR. Upon the commencement of the Lease term
                  and on each anniversary date thereafter, Lessee shall provide
                  to Lessor a list of the primary Hazardous Substances which
                  Lessee uses or stores on the Premises, along with, as to each
                  such Hazardous Substance, its purpose and the approximate
                  volume brought onto the Premises since the last report to
                  Lessor under this Paragraph 54(b). Lessee shall deliver to
                  Lessor (1) a copy of Lessee's current Hazardous Substances
                  Management Plan, and any amendments or supplements thereto, or
                  replacements thereof, from time to time during the term of
                  this Lease, and (2) a copy of all Hazardous Substances reports
                  or plans filed by Lessee with the City of Palo Alto, even
                  though Lessee's Hazardous Substances Management Plan and any
                  such reports on plans filed with the City show that Lessee is
                  not currently using any reportable Hazardous Substances on the
                  Premises.

         (c)      INDEMNIFICATION.

                  (i)      Lessee shall indemnify, protect, defend and hold
                           Lessor, and Lessor's agents, employees, successors
                           and assigns, harmless from and against any and all
                           loss of rents and/or damages, liabilities, judgments,
                           costs, claims, liens, expenses, penalties, permits
                           and attorneys' and consultants' fees if incurred as a
                           result of the release, discharge or emission of any
                           Hazardous Substance or storage tank brought on the
                           Premises during the Lease term by or for Lessee or
                           under Lessee's control. Lessee's obligations under
                           this Paragraph 54 shall include, but not be limited
                           to, the effects of any contamination or injury to
                           person, property, or the environment created by
                           Lessee, and the cost of investigation (including
                           consultants' and attorneys' fee), testing, removal,
                           remediation, restoration and/or abatement thereof, or
                           of any contamination therein involved, and shall
                           survive the expiration or earlier termination of this
                           Lease. No termination, cancellation, or release
                           agreement entered into by Lessor and Lessee shall
                           release Lessee from Lessee's obligations under this
                           Lease with respect to Hazardous Substances or storage
                           tanks, unless specifically so agreed by Lessor in
                           writing at the time of such agreement.

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

                  (iii)    Lessor shall indemnify, defend, protect and hold
                           Lessee, its employees, agents, shareholders,
                           licensees, invitees, officers and directors, harmless
                           from and against any claims, actions,

<PAGE>

                           losses, costs, damages, liabilities or expenses
                           (including, without limitation, reasonable
                           attorneys', experts' and consultants' fees,
                           investigation and laboratory fees), arising out of or
                           in connection with any Hazardous Substance
                           (including, without limitation, asbestos) which
                           Lessee establishes was present on the Commencement
                           Date of the term of this Lease on, under, in or about
                           the Premises, soil, air, groundwater or surface water
                           thereof and was not caused by the acts or omissions
                           of Lessee or its agents, contractors, or employees.

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

         (e)      INSPECTION COMPLIANCE. Lessor shall have the right to enter
                  the Premises at any time in the case of an emergency, and
                  otherwise at reasonable times upon at least 24 hours notice to
                  the Lessee and subject to Lessee's reasonable security
                  precautions, for the purpose of inspecting the condition of
                  the Premises and for verifying the compliance by Lessee with
                  this Lease and all Applicable Laws (as defined in subparagraph
                  (d) above), and to employ experts and/or consultants in
                  connection therewith and/or to advise Lessor with respect to
                  Lessee's activities, including, but not limited to, the
                  installation, operation, use, monitoring, maintenance, or
                  removal of any Hazardous Substance or storage tank on or from
                  the Premises. The costs and expenses of any such inspections
                  shall be paid by the party requesting same, unless a Breach of
                  this Lease is found to exist, or unless the inspection is
                  requested or ordered by a governmental authority as the result
                  of any such existing violation or contamination. In any such
                  case, Lessee shall upon request reimburse Lessor for the
                  reasonable costs and expenses of such inspections.

         55.      MAINTENANCE AND REPAIRS.

         (a)      Excluded from Lessee's obligations for maintenance and repairs
                  in Paragraph 7.1(a) are the structural elements of the
                  Premises, the roof, exterior walls and foundation of the
                  Premises.

         (b)      Notwithstanding anything to the contrary in the Lease, Lessor
                  shall perform and construct, at Lessor's sole cost and
                  expense, any repair, maintenance or improvement (i)
                  necessitated by the acts or omissions of Lessor or its agents,
                  employees, invitees, or licensees, (ii) required as a
                  consequence of any violation of Applicable Laws or a
                  construction defect in the Premises as of the

<PAGE>

                  Commencement Date, (iii) which would be treated as a "capital
                  expenditure" under generally accepted accounting principles,
                  (iv) occasioned by fire, acts of God or other casualty or by
                  the exercise of the power of eminent domain, (v) for which
                  Lessor has a right of reimbursement from others, (vi)to the
                  structural elements of the Premises, the structural elements
                  of the roof (but excluding the roof membrane), exterior walls
                  and foundation of the Premises, and (vii) relating to the
                  abatement, removal, encapsulation, or other handling of
                  asbestos in, on or about the Premises existing on the
                  Commencement Date. Notwithstanding the foregoing, Lessee shall
                  reimburse Lessor for costs incurred with respect to (iii)
                  above (excluding costs of asbestos abatement) but only to the
                  extent that (a) the same reduces the expenses otherwise
                  payable by Lessee under the Lease and (b) Lessee's share of
                  such costs during any twelve-month period of the Lease is
                  amortized over the useful life of the capital item in
                  question.

         (c)      Pursuant to Paragraphs 7.1 and 7.2, Lessor's Obligations, of
                  the printed portion of this Lease, Lessor and Lessee agree
                  that this Lease is a "NNN Lease" and that it shall be solely
                  Lessee's obligation to repair and maintain the Premises, and
                  the equipment therein. Lessee shall reimburse Lessor within
                  thirty (30) days after written demand for all operating
                  expenses of the Premises, including, but not limited to, real
                  property taxes and assessments, and Lessor's property
                  insurance and liability insurance. Lessee shall directly
                  contract for and shall be responsible for the performance and
                  payment for all repairs and maintenance, including but not
                  limited to, repair and maintenance (and replacement, as
                  necessary) of the parking area; landscaping; common areas;
                  building repairs; repair and maintenance of the HVAC system,
                  including an HVAC service contract providing for inspection,
                  service and maintenance on a quarterly basis; repair and
                  maintenance of all other mechanical systems in the building,
                  and utilities; maintenance, repair, and replacement of the
                  roof membrane; and other structural and non-structural repairs
                  and replacement of building elements required as a result of
                  the installation, repair, maintenance, operation and removal
                  of Lessee's improvements, fixtures, and equipment.

         (d)      Upon request, Lessor shall advise Lessee in writing whether it
                  reserves the right to require Lessee to remove any Alterations
                  or Utility Installations from the Premises upon termination of
                  the Lease.

         (e)      The first sentence of Paragraph 7.4(c), Surrender/Restoration,
                  is amended to read as follows:

                  Lessee shall surrender the Premises by the Expiration Date or
         any earlier termination date, with all of the improvements, parts and
         surfaces thereof broom clean and free of debris, and in good operating
         order, condition and state of repair, ordinary wear and tear, acts of
         God, casualties, condemnation, Hazardous Substances (other than those
         stored, used or disposed of by Lessee in or about the Premises), and
         Alterations or Utility Installations which Lessor states in writing may
         be surrendered at the termination of the Lease, excepted.

         56.      INSURANCE.

         (a)      The parties acknowledge and agree that Lessor is the "Insuring
                  Party" for purposes of Paragraph 1.9 and Paragraph 8.

         (b)      Paragraphs 8.3(a) and 8.3(b) of the printed portion of this
                  Lease (which Paragraphs shall remain in full force and effect)
                  are supplemented as follows:

<PAGE>

         The property insurance carried by Lessor pursuant to Paragraph 8.3
shall include (i) property insurance insuring the building and all improvements
which now are or hereafter become a part of the Premises for perils covered by a
causes of loss-special form insurance policy containing both replacement cost
and agreed amount endorsements or options; (ii) boiler and machinery-insurance,
if applicable; (iii) flood insurance; (iv)earthquake insurance (if required by
Lessor's mortgage lender in the future and Lessor's mortgage lender determines
that the cost and availability of earthquake insurance is reasonable); (v)
builders risk insurance during all periods of construction; (vi) insurance
against all other hazards as may be reasonably required by Lessor's lender or
the Ground Lessor; and (vii) rental value insurance for the perils insured
against by Lessor for one hundred percent (1.00%) of the Rent (including
operating expenses, real estate taxes, assessments and insurance costs which are
Lessee's liability) for a period of twelve (12) months.

         57.      ASSIGNMENT AND SUBLETTING. Paragraph 12, Assignment and
Subletting, of the printed Lease form is amended as follows:

         (a)      Any assignment of this Lease or any sublease of all or any
                  portion of the Premises shall be subject to Lessor's prior
                  written approval, the prior written approval of the Ground
                  Lessor, and the conditions specified in Paragraph 12 of this
                  Lease, amended and supplemented as follows: (1) any sublease
                  base rent in excess of the amount Lessee is paying to Lessor
                  shall be shared 50-50 by Lessor and Lessee, alter deducting
                  from such excess only Lessee's customary brokerage fees in
                  obtaining the assignment or sublease in an amount approved by
                  Lessor; (2)any such sublease shall provide that further
                  assignment or sub-subletting by the sublessee is expressly
                  prohibited; (3) in lieu of approving or disapproving an
                  assignment or sublease, Lessor may terminate this Lease and
                  recapture the Premises without any liability to Lessee; and
                  (4)Lessor shall have not less than fifteen (15) business days
                  after receipt by Lessor of Lessee's written request for
                  consent to an assignment or sublease, and all relevant
                  information requested by Lessor including the transaction
                  documentation, within which to give Lessor's approval or
                  disapproval of the sublease, or to terminate this Lease and
                  recapture the Premises.

         (b)      Lessee shall reimburse Lessor for Lessor's attorney's fees
                  incurred in connection with any assignment or sublease
                  transaction. Said attorney's fees shall be billed at the
                  attorney's normal hourly rate, but such fees shall not exceed
                  the total of One Thousand Dollars ($1,000).

         (c)      Notwithstanding anything to the contrary in this Lease, Lessee
                  may, without Lessor's prior written consent, without any
                  participation by Lessor in assignment and subletting proceeds,
                  and without Lessor's right of recapture the Premises, sublet
                  the Premises or assign this Lease to a subsidiary, affiliate,
                  division, or corporation controlling, controlled by or under
                  common control with Lessee; a successor corporation related to
                  Lessee by merger, consolidation, nonbankruptcy reorganization,
                  or government action; or a purchaser of substantially all of
                  Lessee's assets; provided that in any such case each of the
                  following conditions is satisfied: no default by Lessee under
                  this Lease then remains uncured; Lessee shall provide Lessor
                  with documentary evidence reasonably satisfactory to Lessor
                  that as of the effective date of such transaction the
                  assignee, sublessee or transferee has a positive net worth at
                  least equal to that of Lessee as of the date of this Lease;
                  and the assignee, sublessee, or transferee shall expressly
                  assume and agree to perform all of the obligations of Lessee
                  under this Lease by a written assignment, acceptance of
                  assignment and assumption, a copy of which shall be delivered
                  to Lessor concurrently with the assignment, sublease, or
                  transfer.

         58.      LATE CHARGES. The second sentence of Paragraph 13.4, Late
Charges, shall read:

<PAGE>

         Accordingly, if any Rent shall not be received by Lessor within ten
         (10) days after receipt by Lessee of written notice from Lessor that
         the same is due, Lessee shall pay to Lessor a one time late charge
         equal to ten percent (10%) of such overdue amount.

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

         60.      ESTOPPEL CERTIFICATES.

         (a)      Each Party (as "Responding Party") shall within ten (10)
                  business days after written notice from the other Party (the
                  "Requesting Party") execute, acknowledge and deliver to the
                  Requesting Party a statement in writing certifying: (1) that
                  none of the terms or provisions of this Lease have been
                  changed (or if they have been changed, stating how they have
                  been changed); (2) that this Lease has not been cancelled or
                  terminated; (3) the last date of payment of Base Rent and
                  other charges and the time period covered by such payment; and
                  (4) that, to the party's actual current knowledge, the other
                  party is not in default under this Lease (or if the other
                  party is claimed to be in default, stating why).

         61.      LESSOR'S ACCESS. Lessor and Lessor's agents shall have the
right to enter the Premises at any time, in the case of an emergency, and
otherwise at reasonable times upon one (1) business day's prior notice subject
to Lessee's reasonable security measures for the purpose of showing the same to
prospective purchasers, lenders, or lessees, and making such alterations,
repairs, improvements or additions to the Premises as Lessor may deem necessary.
All such activities shall be without abatement of rent or liability to Lessee.
Lessor may at any time place on the Premises any ordinary "For Sale" signs and
Lessor may during the last six (6) months of the term hereof place on the
Premises any ordinary "For Lease" signs. Lessee may at any time place on or
about the

<PAGE>

Premises any ordinary "For Sublease" sign. Lessor shall, however, at all times
minimize any interference with Lessee's operations at the Premises.

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

         62A.     QUIET POSSESSION. Paragraph 38, Quiet Possession, is amended
to read as follows:

                  At all times that no Breach of this Lease by Lessee exists,
         subject to payment by Lessee of the Rent and performance of all of the
         covenants, conditions and provisions on Lessee's part to be observed
         and performed under this Lease, Lessee shall have quiet possession and
         quiet enjoyment of the Premises during the term hereof. Any remedy for
         breach of this provision shall be limited to damages or injunction and
         not Lease termination.

         63.      GROUND LEASE. Lessor's interest in the Premises is a leasehold
estate under a Ground Lease dated November 27, 1974, as amended (the "Ground
Lease"), between California Pacific Commercial Corporation ("Ground Lessor"),
and W.F. Batton and Marie A. Batton ("Ground Lessee"). This Lease is therefore a
Sublease. This Lease is subject and subordinate to the terms and provisions of
the Ground Lease. There is an action pending in Santa Clara County Superior
Court, Action No. CV767605 between Ground Lessor and Ground Lessee. This Lease
is subject to the consent of the Ground Lessor in a form and upon terms and
conditions satisfactory to Ground Lessee.

         64.      ADDENDUM TO GOVERN. In the event of any inconsistency between
the printed provisions of this Lease and this typed Addendum to Lease, the
provisions of this typed Addendum to Lease shall govern.

         65.      SUBLEASE OF 1180 E. MEADOW CIRCLE. Lessor agrees that Lessor
will not unreasonably withhold Lessor's consent to Lessee's anticipated
subleasing of the premises at 1180 E. Meadow Circle, Palo Alto, California,
subject to obtaining the prior written approval of the Ground Lessor in
accordance with the Ground Lease.

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Lease as of the date
set forth above.

                      LESSOR

                      /s/  Marie A. Batton
                      Marie  A.  Batton,  Trustee  of The W.F.  Batton  and
                      Marie A. Batton  Trust UTA dated  January  12,  1988,
                      as amended

                      LESSEE

                      OMNICELL TECHNOLOGIES, INC.,
                      a California corporation

                      By  /s/ Earl E. Fry
                           Its Vice President and Chief Financial Officer

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

<PAGE>

                                                  Memo

                                                  W.F. Batton C., Inc.

                                                  1190-East Meadow Dr.

                                                  Palo Alto, CA 94303-4269

                                                  650-494-7491

CONFIDENTIAL 1/13/00

To: Pete McGoff

From: Harold Balzer
Re: Amendment to 1085 Lease

Dear Pete,

Enclosed is your signed copy of the Amendment to the 1085 lease agreement.
It has been a pleasure working with you. Please do not hesitate to call me with
any future requests.

Sincerely,

/s/ H. Balzer

H. Balzer

<PAGE>

                       FIRST AMENDMENT TO LEASE AGREEMENT
                             1085 EAST MEADOW CIRCLE
                              PALO ALTO, CALIFORNIA

         This First Amendment to Lease Agreement (this "Amendment") is entered
into by and between MARIE A. BATTON, TRUSTEE OF THE W.F. BATTON AND MARIE A.
BATTON UTA JANUARY 12, 1988, AS AMENDED ("Lessor"), and OMNICELL TECHNOLOGIES,
INC., a California corporation ("Lessee"), effective January 3, 2000 (the
"Effective Date"). This First Amendment amends the Lease Agreement and Addendum
to Lease entered into between Landlord and Tenant as of September 24, 1999
(collectively, the "Lease").

                                    RECITALS

         A.       Lessor and Lessee entered into that certain Lease for the
Premises located 1085 East Meadow Circle, Palo Alto, California.

         B.       The Lease term commences on December 15, 1999 and expires on
December 15, 2004.

         C.       The Lessee, subsequent to executing the Lease, has formally
changed its corporate name form OmniCell Technologies, Inc. to Omnicell.com.

         D.       Certain delays in the construction and completion of the
Tenant Improvements to the Premises have occurred which will delay Lessee's
possession to the Premises under the Lease.

         E.       The parties have agreed to delete the last sentence of Section
63, namely, the recitation that the subject Lease (sublease) shall be subject to
the consent of the Ground Lessor.

         F.       The Lessee has recently been made aware of Ground Lessor's
desire and intent to terminate the subject Lease prior to the expiration of the
Term should Ground Lessor be successful in its action to terminate the Ground
Lease for the Property.

         G.       The parties desire to amend the terms and conditions of the
Lease as set forth below.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the foregoing Recitals, the mutual
covenants contained in this Amendment and of good, lawful and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged,
Lessor and Lessee agree as follows:

         1.       LESSEE CORPORATE NAME CHANGE. Effective October 20, 1999, and
as evidenced by the copy of the Certificate of Amendment to the Lessee's
Articles of Incorporation filed with the California Secretary of State's Office,
attached hereto as Exhibit A, Lessee has formally changed its corporate name
from OmniCell Technologies, Inc. to Omnicell.com. Section 1.1 of the Lease, and
any other references to OmniCell Technologies, shall hereby be revised to
reflect such change.

         2.       TERM. The Original Term of the Lease, as defined in Section
1.3, shall be revised to reflect a Commencement Date of February 1, 2000 and an
Expiration Date of January 31, 2005. Any Other provisions in the Lease,
dependant on such dates, shall hereby be revised accordingly.

<PAGE>

         3.       GROUND LEASE. The original text of Section 63 is hereby
deleted and replaced by the following:

         "Lessor's interest in the Premises is a leasehold estate under a Ground
         Lease dated November 27, 1974, as amended (the "Ground Lease"), between
         California Pacific Commercial Corporation ("Ground Lessor"), and W.F.
         Batton and Marie A. Batton ("Ground Lessee"). This Lease is therefor a
         Sublease. This Lease is subject and subordinate to the terms and
         provisions of the Ground Lease. There is an action pending in Santa
         Clara County Superior Court, Action No. CV767605 between Ground Lessor
         and Ground Lessee, which if decided in favor of Ground Lessor, could
         result in the early termination of Ground Lessee's (Lessor under the
         instant Lease) interest in the Premises. Ground Lessor, by the letter
         of Dan McGanney, III, President of Ground Lessor, has notified Lessor
         of Ground Lessor's intention to terminate early the instant Lease
         should Ground Lessor be successful in the civil action described above.

         The parties acknowledge that the Lease is not subject to the approval
         of the Ground Lessor; however, the Lease agreement must be submitted to
         Ground Lessor for Ground Lessor's review.

         Only in the event that Ground Lessor is successful in terminating the
         Ground Lease and Ground Lessor thereby terminates this Lease prior to
         the expiration of the original term or any extended term, Lessor hereby
         agrees to indemnify and reimburse Lessee for reasonable costs and
         expenses incurred by Lessee in relocating to suitable replacement
         premises in the greater San Francisco Bay Area ("Relocation Expenses").
         Such Relocation Expenses shall include, but are not limited to, tenant
         improvements at the substitute premises, moving costs for approximately
         100 employees, de-installation and re-installation of furniture, costs
         related to the installation of alarm and phone systems and the design,
         development and installation of hardware, software and systems for
         computer network and data/voice wiring costs. Any leasing commission
         expenses incurred, if any, shall be paid by Lessee.

         Lessee's cost of tenant improvements at the substitute premises to be
         reimbursed by Lessor shall not exceed the cost of the tenant
         improvements paid for Lessee for the Premises which is currently
         estimated to be $310,000. The exact amount of Lessee's cost of the
         tenant improvements performed by Lessee at the Premises shall be
         confirmed by letter agreement between Lessor and Lessee upon completion
         of the tenant improvement work at the Premises. The total of the tenant
         improvement costs to be reimbursed to Lessee at the time of the
         Lessee's move shall be the Lessee's original tenant improvement costs,
         as specified in the letter agreement, increased at the simple rate of
         five percent (5%) per year.

         Lessor shall liable for the aggregate Relocation Expenses NOT TO EXCEED
         $600,000 ("Relocation Expense Cap"), which Relocation Expense Cap shall
         be reduced by a factor of ten percent (10%) per year from the
         Commencement Date.

         In the event that the Ground Lessor is not successful in the legal
         action referred to above in terminating the Ground Lease, or the Ground
         Lease is terminated under the circumstances where this Lease remains in
         full force and effect as confirmed in writing by Lessor and/or
         California Pacific Commercial Corporation, and Lessee in form and under
         terms reasonably acceptable to Lessee, Lessee agrees upon request of
         either Lessor or California Pacific Commercial Corporation to enter
         into a further amendment of this Lease specifying such disposition of
         the legal action referred to above and releasing the indemnity
         obligation referred to in this Section."

         4.       GENERAL PROVISIONS. In the event of a conflict between the
terms or provisions of this Amendment and the terms or provisions of the Lease,
the terms of this Amendment shall prevail in all respects. All terms and

<PAGE>

conditions of the Lease not specifically modified herein shall remain unchanged
and in full force and effect. All terms not specifically defined herein are as
defined in the Lease. Except as modified herein, the Lease shall remain
unchanged and in full force and effect.

                              AUTHORIZED SIGNATURES

         IN WITNESS WHEREOF, the parties hereto have executed this Amendment on
the dates indicated.

"LESSOR                                      LESSEE"

MARIE A. BATTON, TRUSTEE OF                  OMNICELL TECHNOLOGIES, INC
THE W.F. BATTON AND MARIE A.                 a California corporation
BATTON UTA January 12, 1988, AS
AMENDED

By: /s/ Marie A. Barton
    Marie A. Batton, Trustee of The          By: /s/ Earl E. Fry
    W.F. Batton and Marie A. Batton              Earl Fry, Vice President and
    Trust UTA dated January 12, 1988,            Chief Financial Officer
    As amended

Date: 01/05/00                               Date: 01/03/00

<PAGE>

EXHIBIT A

              OMNICELL TECHNOLOGIES, INC. CERTIFICATE OF AMENDMENT
                        TO ITS ARTICLES OF INCORPORATION

<PAGE>

February 3, 2000

Mr. Peter McGoff
Omnicell.Com
1101 East Meadow Drive
Palo Alto, CA 94303

Dear Peter,

I spoke to David Balzer today and he indicated that both he and Pat DiResta were
in agreement that Omnicell.com would be moving into 1085 East Meadow Drive,
February 21, 2000.

The initial term of the lease between Omnicell and Marie A. Batton should be
changed from February 1, 2000 to February 21, 2000. All other provisions in the
"Initial Term" of the lease agreement shall remain the same.

If the above information is true and correct, please sign and return to me at
your earliest convenience.

Sincerely,

/s/ Harold Balzer                                 /s/ Peter McGoff
Harold Balzer
W.F. Batton Management Company                    Omnicell.Com
Date: 02/03/00                                    Date:  02/04/00<PAGE>

                                                                    EXHIBIT 10.2

                          AMHURST INDUSTRIAL CENTER I
                              WAUKEGAN, ILLINOIS

                                     LEASE

                                    BETWEEN

                AMLI COMMERCIAL PROPERTIES LIMITED PARTNERSHIP
                        a Delaware limited partnership

                                   Landlord

                                      AND

                         OMNICELL TECHNOLOGIES, INC.,
                           a California corporation,

                                    Tenant

<PAGE>

                               Table Of Contents

<TABLE>
<CAPTION>
                                                                                                 Page
<S>                                                                                              <C>
 1.  FUNDAMENTAL LEASE TERMS...............................................................         1

 2.  DEFINED TERMS.........................................................................         2

 3.  AGREEMENT TO LEASE....................................................................         5

 4.  RENT..................................................................................         5

 5.  LANDLORD'S SERVICES...................................................................         6

 6.  SECURITY DEPOSIT......................................................................         8

 7.  USE...................................................................................         8

 8.  CONDITION OF PREMISES.................................................................         9

 9.  EARLY POSSESSION......................................................................         9

10.  ASSIGNMENT AND SUBLETTING.............................................................         9

11.  REPAIRS AND ALTERATIONS...............................................................        10

12.  CERTAIN RIGHTS RESERVED BY LANDLORD...................................................        12

13.  COVENANT AGAINST LIENS................................................................        13

14.  WAIVERS AND INDEMNITIES...............................................................        13

15.  DEFAULTS AND LANDLORD'S REMEDIES......................................................        14

16.  SURRENDER OF POSSESSION...............................................................        15

17.  INSURANCE.............................................................................        16

18.  FIRE OR CASUALTY......................................................................        17

19.  CONDEMNATION..........................................................................        18

20.  NOTICES...............................................................................        18

21.  ADDITIONAL COVENANTS OF TENANT........................................................        19

22.  ESTOPPEL CERTIFICATES: MORTGAGE ISSUES................................................        21

23.  MISCELLANEOUS.........................................................................        22

24.  SIGNAGE...............................................................................        25

25.  OPTION TO RENEW TERM..................................................................        25

26.  TRUCK DOCKS...........................................................................        26

27.  TENANT IMPROVEMENTS...................................................................        26

     Exhibit A   -   Plan of the Premises
     Exhibit B   -   Work Letter
     Exhibit C   -   Legal Description of the Land
     Exhibit D   -   Landlord's Insurance
     Exhibit E   -   Trailer Area
     Exhibit F   -   Form of Tenant Estoppel Letter
     Exhibit G   -   Form of Landlord's Estoppel Letter
     Exhibit H   -   Form of Subordination, Non-Disturbance and Attornment Agreement
     Exhibit I   -   Truck Docks
</TABLE>

<PAGE>

                             AMHURST INDUSTRIAL I

                                     LEASE

     THIS LEASE ("Lease") is entered into as of the day of April, 1999, by and
between AMLI COMMERCIAL PROPERTIES LIMITED PARTNERSHIP, a Delaware limited
partnership (together with its successors and assigns, "Landlord") and OMNICELL
TECHNOLOGIES, INC., a California corporation (together with its permitted
successors and assigns, "Tenant").

1.   FUNDAMENTAL LEASE TERMS. Certain fundamental lease terms (the "Fundamental
                                                                    -----------
Lease Terms") are set forth below in this Section 1:
-----------

     1.1  Building and Address:          Amhurst Industrial Center 1
          --------------------
                                         3651 Burwood Drive
                                         Waukegan, Illinois 60085

     1.2  Tenant:                        Omnicell Technologies, Inc.
          -------

     1.3  Tenant's Current Address
          ------------------------
          and Facsimile Telephone No.:   1101 E. Meadow Drive
          ---------------------------
                                         Palo Alto, CA 94303
                                         650-843-6266

     1.4  Landlord:                      Amli Commercial Properties Limited
          --------
                                         Partnership

     1.5  Landlord's Address:            222 Spring Lake Drive
          ------------------
                                         Itasca, IL 60143

     1.6  Premises:                      approximately 38,459 square feet of
          --------
                                         space located in the Building
                                         containing approximately 166,466 square
                                         feet, as shown on the plan attached
                                         hereto and made a part hereof as
                                         Exhibit A.
                                         ---------

     1.7  Term:                          eighty-four (84) calendar months
          ----
                                         commencing on the Commencement Date,
                                         provided that if the Commencement Date
                                         is not the first (1st) day of a
                                         calendar month, the Term shall end
                                         eighty-four (84) calendar months after
                                         the last day of the calendar month in
                                         which the Commencement Date occurs.

     1.8  Commencement Date:             July 1, 1999, subject to a delay in
          -----------------
                                         the substantial completion of the
                                         Tenant Improvements to be made in the
                                         Premises, as described in the Work
                                         Letter attached hereto and made a part
                                         hereof as Exhibit B.
                                                   ---------

     1.9  Base Rent:                     1/st/ Lease Year     $253,829.40
          ---------
                                         2/nd/ Lease Year     $261,444.28
                                         3/rd/ Lease Year     $269,287.61
                                         4/th/ Lease Year     $277,366.24
                                         5/th/ Lease Year     $285,687.23

                                       1.

<PAGE>

                                         6/th/ Lease Year     $294,257.84
                                         7/th/ Lease Year     $303,085.58

     1.10  Security Deposit:             $21,152.45
           ----------------

     1.11  Tenant's Proportionate Share: 23.10%
           ----------------------------

     1.12  Permitted Use:                general office, warehouse and
           -------------
                                         stockroom purposes, refurbishment of
                                         used equipment and uses generally
                                         related thereto, including, without
                                         limitation, light manufacturing and
                                         painting

     1.13  Broker:                       Paine Wetzel Associates, Inc.
           ------

     1.14  Parking:                      one hundred (100) spaces
           -------

2.   DEFINED TERMS. As used in this Lease, the following terms shall have the
     -------------
respective meanings set forth below in this Section 2.
                                            ---------
     2.1   Affiliate: means any person or entity controlling, controlled by or
           ---------
under common control with Tenant.  For purposes hereof, "control" shall mean the
ownership of not less than sixty-six and two-thirds percent (66-2/3%) of the
economic ownership interests in an entity, along with the power to control the
management and policy-making decisions of such entity.

     2.2   Alteration: means any alteration, decoration, improvement or addition
           ----------
to the Premises, or installation of any utility, mechanical, communication or
alarm system in the Premises, provided that any such alteration, decoration,
improvement, addition or installation shall not constitute an "Alteration" if
such item(s): (i) individually, and in the aggregate (assuming there are several
items for a particular project), does not cost in excess of $5,000-00, (ii) does
not affect the roof or structural components of the Building, (iii) does not
affect the HVAC, utility or mechanical systems, or equipment of the Building,
(iv) does not require a building permit to perform, and (v) is not visible from
outside the Premises.

     2.3   Association: means the Amhurst Lake Business Park Association, the
           -----------
association of owners of property in the business park in which the Property is
located.

     2.4   Calendar Year: means the twelve (12) month period January through
           -------------
December of any year (or portion thereof) falling within the Term.

     2.5   City: means Waukegan.
           ----

     2.6   Events of Bankruptcy: means the occurrence of any one or more of the
           --------------------
following events or circumstances:

          (a)  If Tenant shall file in any court a petition in bankruptcy or
     insolvency or for reorganization within the meaning of the Federal
     Bankruptcy Code, or for arrangement within the meaning of such Code (or for
     reorganization or arrangement under any future bankruptcy or reform act for
     the same or similar relief), or for the appointment of a receiver or
     trustee for all or a portion of the property of Tenant, or

          (b)  If an involuntary petition shall be filed against Tenant and such
     petition shall not be vacated or withdrawn within thirty (30) days after
     the date of filing thereof, or

          (c)  If Tenant shall make an assignment for the benefit of creditors,
     or

                                       2.

<PAGE>

          (d)  If Tenant shall be adjudicated a bankrupt or shall admit in
     writing an inability to pay its debts as they become due, or

          (e)  If a receiver shall be appointed for the property of Tenant by
     order of a court of competent jurisdiction (except where such receiver
     shall be appointed in an involuntary proceeding, and be withdrawn within
     thirty (30) days from the date of his appointment).

     2.7     Events of Force Majeure: means any accident, governmental
             -----------------------
restriction, inability to obtain fuel or materials, strike or lockout (whether
legal or illegal), act of God or other event, occurrence or circumstance beyond
Landlord's reasonable control.

     2.8     Hazardous Materials: means (i) substances defined as "hazardous
             -------------------
substances", "toxic substances" or "hazardous wastes" in the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended (42
U.S.C., Sec. 9061, et. seq.), the Hazardous Materials Transportation Act (49
U.S.C., Sec. 1802), the Resource Conservation and Recovery Act (42 U.S.C., Sec.
6901 et. seq.), the Toxic Substances Control Act of 1976, as amended (15 U.S.C.,
Sec. 2601, et. seq.) or in any other federal, state or local laws and ordinances
now or hereafter in effect governing similar matters, or in any regulations
adopted or publications promulgated pursuant thereto (collectively,
"Environmental Laws"); (ii) asbestos and asbestos containing materials; and
(iii) petroleum and petroleum based products.

     2.9     Land: means the land on which the Building is located, which Land
             ----
is legally described on Exhibit C attached hereto and made a part hereof.
                        ---------

     2.10    Landlord's Representative: means Michael Murphy.
             -------------------------

     2.11    Laws: means all laws (including, without limitation, Environmental
             ----
Laws); statutes (including, without limitation, the Americans with Disabilities
Act); codes; ordinances; governmental rules, regulations or requirements;
judicial decrees or orders; administrative rulings or orders; covenants,
conditions or restrictions of record; and governmental permits, licenses,
approvals or certificates (including, without limitation, any certificate of
occupancy for the Premises or the Building) now or hereafter in effect and
applicable to the Premises, the Property or the use, occupancy or operation of
the Premises or the Property.

     2.12    Lease Year: means each consecutive twelve (12) month period
             ----------
beginning with the Commencement Date, except that if the Commencement Date is
other than the first day of a calendar month, then the first Lease Year shall be
the period from the Commencement Date through the date twelve (12) months after
the last day of the calendar month in which the Commencement Date occurs, and
each subsequent Lease Year shall be the period of twelve (12) months following
the last day of the prior Lease Year.

     2.13    Material Alteration: means any Alteration which: (i) affects the
             -------------------
roof or structural components of the Building, (ii) affects any HVAC, utility or
mechanical systems or equipment in the Building, (iii) is visible from outside
of the Premises, (iv) costs more than $10,000 to complete (including all labor
and material costs), or (v) requires a building permit to perform.

     2.14    Mortgagee: means the mortgagee, from time to time, under any
             ---------
mortgage granted by Landlord and now or hereafter encumbering the Property or
any portion thereof (including the Premises).

     2.15    Operating Expenses: means for any Calendar Year those costs or
             ------------------
expenses paid or incurred by or on behalf of Landlord for owning, managing,
operating, maintaining and repairing the Property and Landlord's personal
property used in connection with the Property, including, without limitation:
Taxes; dues and other amounts payable to any owner's association; the cost of
fire monitoring, security and security device systems for the Building, if any;
snow and ice removal; exterior cleaning, sweeping, planting and landscaping; the
cost of maintaining and repairing: (i) sewer, water, mechanical,

                                       3.

<PAGE>

electrical, sprinkler and other utility systems and equipment, (ii) parking
lots, (iii) heating, ventilating and air conditioning systems and equipment,
(iv) exterior lighting systems and equipment, and (v) the roof and structural
components of the Building; utilities, fuel and water if not separately metered;
exterior window cleaning; insurance (including, but not limited to, fire,
extended coverage, all risk, rent loss, liability, worker's compensation, and
any other insurance carried by Landlord and applicable to the Property and not
carried by tenants under any provision of their lease); deductibles paid by
Landlord under the insurance policies described above; uninsured losses;
exterior painting; management fees (not to exceed 3% of gross rentals from the
Property for the Calendar Year); supplies; the cost of wages, salaries and
benefits of all persons at the level of property manager and below, engaged in
the operation, management, maintenance and repair of the Property; legal and
accounting expenses; and any other expense or charge which would be considered
as an expense of owning, managing, operating, maintaining or repairing the
Property. Notwithstanding anything herein to the contrary, Operating Expenses
shall not include: costs of tenant alterations to tenant space; marketing costs;
costs of capital improvements to the Property, except for the cost of
resurfacing the parking areas, driveways and sidewalks on the Property and
except as provided below; depreciation charges; real estate brokerage and
leasing commissions; the cost of any service sold directly to any tenant
(including Tenant) or other occupant for which Landlord is entitled to be
reimbursed as an additional charge or rental over and above the basic rent and
escalations payable under the lease with that tenant; expenses in connection
with services or other benefits of a type that are not provided to Tenant but
which are provided another tenant or occupant of the Property; overhead and
profit paid to Landlord or to subsidiaries or affiliates of Landlord for
services on or to the Building to the extent that fees paid for said services
materially exceed competitive costs of said services offered by other third
parties; all interest, loan fees, and other carrying costs related to any
mortgage or deed of trust or related to any capital item, and all rental and
other payments due under any ground or underlying lease, or any lease for any
equipment ordinarily considered to be of a capital nature (except janitorial
equipment and the like which is not affixed to the building); expenses for which
Landlord has been reimbursed (other than pursuant to rent escalation or tax and
operating expense reimbursement provisions in leases), but only to the extent of
any said reimbursement; wages, salaries, or other compensation paid to any
executive employees above the grade of building manager; any costs, interest or
penalty charges incurred by Landlord due to the violation by Landlord of any Law
or failure to timely pay obligations of Landlord under this Lease or any other
lease in the building resulting from Landlord's gross negligence or willful
misconduct, except to the extent any said violation or failure results from
Tenant's failure to perform its obligations under this Lease; and the cost of
correcting any building code or other violations which were violations prior to
the Commencement Date. Notwithstanding the foregoing, the cost of any capital
improvements to the Property made after the date of this Lease which are
reasonably intended to reduce Operating Expenses or which are required under any
Laws which were not applicable to the Property prior to the Commencement Date
amortized over the life expectancy of such capital improvements as Landlord
shall reasonably determine, together with interest on the unamortized cost of
any such improvements (at the prevailing construction loan rate available to
Landlord on the date the cost of such improvements was incurred) shall be
included in Operating Expenses. The cost of any capital improvements made in
connection with resurfacing the parking areas,. driveways and sidewalks on the
Property shall also be amortized, with interest, as provided in the immediately
preceding sentence, and included in Operating Expenses. In the event the
Property is not fully occupied during any Calendar Year, the variable Operating
Expenses (e.g. water, Taxes and snow removal) for that year may be adjusted
          ----
by Landlord to reflect the Operating Expenses as though the Property were fully
occupied; provided, however, that in no event shall the payments made by all
tenants of the Property to Landlord for Operating Expenses exceed the actual
Operating Expenses paid or incurred by Landlord in any Calendar Year.
Notwithstanding anything to the contrary contained in this Section 2.15,
                                                           ------------
Operating Expenses may include, at Landlord's reasonable discretion an equitable
proportion, to be reasonably determined by Landlord, of both (i) snow removal
costs, and/or (ii) maintenance, repair and/or replacement costs of the parking
areas for both the Property and the building directly north of and immediately
adjacent to the Property (the "Adjacent Property"); provided, however, in no
event shall Tenant's Proportionate Share of the aggregate cost for (i) snow
removal for the Property and the Adjacent Property; or (ii) maintenance, repair
and/or replacement costs of the parking areas for both the Property and the
Adjacent Property exceed Tenant's Proportionate Share of snow removal costs for
the Property or Tenants Share of maintenance, repair and/or replacement costs of
the parking area for the Property. Notwithstanding anything to the contrary in
this

                                       4.

<PAGE>

Section 2.15, to the extent personal property costs, management fees and any
------------
other items are attributable to other properties owned or managed by Landlord,
they will be allocated to such properties.

     2.16    Property: means collectively, the Land, the Building and all other
             --------
improvements located on the Land.

     2.17    Rent: means collectively, Base Rent, Additional Rent and all other
             ----
amounts to be paid by Tenant to Landlord under this Lease or under the Work
Letter.

     2.18    Taxes: means all real estate taxes and assessments and similar
             -----
governmental charges, special or otherwise, direct or indirect, ordinary or
extraordinary (including, without limitation, those levied or assessed by
special taxing districts now or hereafter created) levied or assessed upon or
with respect to the Property and/or Landlord's leasehold interest in the
Property, and ad valorem taxes for Landlord's personal property used in
connection therewith.  Should any political subdivision or governmental
authority having jurisdiction over the Property, impose a tax, assessment,
charge or fee which Landlord shall be required to pay, either by way of
substitution for such real estate taxes and ad valorem personal property taxes,
or in addition to such real estate taxes and ad valorem personal property taxes,
or impose an income or franchise tax or a tax on rents which may be in addition
to or in substitution for a tax levied against the Property and/or Landlord's
personal property used in connection with the Property, such taxes, assessments,
fees or charges shall be deemed to constitute Taxes hereunder.  "Taxes" shall
also include all reasonable fees and costs incurred by Landlord in connection
with reducing or limiting the increase in any Taxes, but only to the extent a
reduction or limitation is obtained.  "Taxes" shall not include inheritance,
income, transfer or franchise taxes paid by Landlord, other than as described
above.  In determining the amount of Taxes for any Calendar Year, the amount of
special assessments to be included shall be limited to the amount of the
installment (plus any interest payable thereon) of such special assessment which
would have been required to have been paid during such year if Landlord had
elected to have such special assessment paid over the maximum period of time
permitted by law.  Except as provided in the preceding sentence, all references
to Taxes "for" a particular year shall be deemed to refer to Taxes levied,
assessed or otherwise imposed for such year without regard to when such Taxes
are payable.

     2.19    Tenant's Representative: means Patrick DiResta.
             -----------------------

3.   AGREEMENT TO LEASE. Landlord hereby leases to Tenant, and Tenant hereby
     ------------------
accepts and leases from Landlord, the Premises, together with the non-exclusive
right to use all common areas outside the Building and on the Property (provided
that Tenant shall not interfere with or disturb the conduct of other tenants'
business in the Building or their enjoyment of the common areas outside the
Building and on the Property), for the Term, subject to the terms and conditions
set forth in this Lease.

4.   RENT.
     ----

     4.1     Place and Manner of Payment.  Tenant shall pay Rent to Landlord at
             ---------------------------
the address set forth in Section 1.5 hereof or to such other person or at such
                         -----------
other address as Landlord may designate from time to time, without offsets or
deductions of any kind whatsoever, at the times and in the manner set forth in
this Lease.  Tenant's covenant to pay Rent shall be independent of every other
covenant in this Lease.

     4.2     Base Rent.  During the Term, Tenant shall pay annual Base Rent in
             ---------
the respective amounts set forth in Section 1.9 hereof. The Base Rent payable
                                -----------
for each Lease Year shall be paid in twelve (12) equal monthly installments,
paid in advance not later than the first (1st) day of each month. If the
Commencement' Date is other than the first (1st) day of a month, then the
installment of Base Rent for such initial month shall be prorated on a per diem
basis for such fractional period and shall be paid on the Commencement Date. If
the last day of the Term or Renewal Term is other than the last day of a month,
then the installment of Base Rent for such last month of the Term or Renewal
Term, as the case may be, shall be prorated on a per diem basis for such
fractional period.

                                       5.

<PAGE>

     4.3     Additional Rent.  In addition to paying the Base Rent, Tenant shall
             ---------------
pay as "Additional Rent" the amounts determined as set forth below.

             A.   Tenant shall pay to Landlord as Rent, in addition to the Base
     Rent, an amount (the "Operating Expense Amount") equal to Tenant's
     Proportionate Share of the Operating Expenses for each Calendar Year.
     Tenant shall pay to Landlord the Operating Expense Amount for each Calendar
     Year in monthly installments, at the same time and place as Base Rent is to
     be paid, in an amount reasonably estimated from time to time by Landlord in
     a written notice to Tenant (the "Estimated Payments").  Landlord will
     maintain books and records showing Operating Expenses in accordance with a
     system of accounts and accounting practices consistently maintained on a
     year-to-year basis.  If the Commencement Date is other than the first (1st)
     day of a month, then the installment of Operating Expense Amount for such
     initial month shall be prorated on a per diem basis.  Landlord shall
     deliver to Tenant within ninety (90) days after the close of each Calendar
     Year (including the Calendar Year in which this Lease terminates) a
     statement showing the amount of the Operating Expenses for such Calendar
     Year and the Operating Expense Amount.  If the Estimated Payments paid by
     Tenant during any Calendar Year are less than the Operating Expense Amount
     for such Calendar Year, Tenant shall pay any deficiency to Landlord as
     shown by such statement within thirty (30) days after receipt of such
     statement.  If the Estimated Payments paid by Tenant during any Calendar
     Year exceed the Operating Expense Amount due from Tenant for such Calendar
     Year, such excess shall be credited against payments next due hereunder.
     If no such payments are next due, such excess shall be refunded by Landlord
     within thirty (30) days of such reduction.  Landlord's failure to deliver
     an annual statement of the Operating Expenses for any Calendar Year shall
     not constitute a waiver or release of, or relieve Tenant from, its
     obligations under this Section.  If the last day of the Term or Renewal
     Term is other than the last day of a month, then the installment of
     Operating Expense Amount for such last month of the Term or Renewal Term,
     as the case maybe, shall be prorated on a per them basis for such
     fractional period.

             B.   Since Landlord will not be able to determine the Taxes for a
     Calendar Year until Landlord receives the real estate tax bills for such
     Calendar Year (which bills are currently received 6 to 9 months after the
     end of each Calendar Year), Landlord may deliver an annual statement to
     Tenant for all Operating Expenses other than Taxes, and deliver a
     subsequent statement to Tenant for Taxes, within ninety (90) days after
     Landlord receives the real estate tax bills for such Calendar Year.  In
     such case, Landlord and Tenant shall make the payments or provide the
     credits, at the times and in the manner described in Section 4.3A above,
                                                          ------------
     with respect to the items covered by any such statements delivered by
     Landlord.

             C.   During the 90-day period immediately following Landlord's
     delivery of any annual statement relating to Operating Expenses, Tenant
     shall have the right to inspect Landlord's accounting records relating to
     Operating Expenses at Landlord's or its agent's office, upon reasonable
     prior notice. Unless Tenant shall take written exception to any item in any
     such statement within said 90-day period, such statement shall be
     considered as final and accepted by Tenant. Any payment due to Landlord or
     credit or payment due to Tenant as shown on any such statement shall be
     paid or applied in the manner and within the time periods described in
     Section 4.3(A), whether or not written exception is taken thereto, provided
     --------------
     that such payment or application shall be without prejudice to any such
     written exception. If Tenant makes such timely written exception, a
     certification as to the proper amount of the Operating Expense Amount shall
     be made by an independent certified public accountant reasonably acceptable
     to both parties, which shall be final and conclusive. Tenant shall pay the
     accountant's fees in connection with such audit and certification, unless
     it is determined that Landlord's original determination of the Operating
     Expense Amount was overstated by more than six percent (6%), in which case,
     Landlord shall pay such reasonable accountant's fees.

             D.   Without limiting any other obligations of the parties which
     survive the expiration of the Term, Landlord and Tenant's obligation to
     reimburse or pay the Additional Rent, as the case may be shall survive the
     expiration of the Term.

                                       6.

<PAGE>

5.   LANDLORD'S SERVICES. As long as Tenant is not in default under this Lease,
     -------------------
Landlord shall furnish the following services:

          (a)  Repairs and maintenance (and if necessary, replacements) of: (i)
     the air conditioning and heating units providing service to the Premises;
     (ii) the roof and structural components of the Building; (iii) the parking
     areas, driveways and sidewalks located on the Property; (iv) any
     landscaping located on the Property; and (v) utility lines, pipes, conduit
     and other equipment located on the Property and furnishing services to the
     Premises, other than any such lines, pipes, conduit and equipment located
     within the Premises (which shall be repaired, maintained and if necessary,
     replaced by Tenant pursuant to Section 11.1 hereof).  Notwithstanding the
                                    ------------
     foregoing, all mechanical systems and sanitary sewer lines servicing the
     Premises will be repaired and maintained by Landlord and in furtherance
     thereof, Tenant shall provide Landlord access to the Premises to make such
     repairs.  Notwithstanding anything contained herein to the contrary, if any
     repairs, maintenance or replacements are necessitated by the willful
     misconduct or gross negligence of Tenant, its agents, servants or
     employees, then the cost thereof shall be billed directly to Tenant, and
     Tenant shall pay Landlord therefor within thirty (30) days after receiving
     such bill together with reasonable supporting documentation.

          (b)   Reasonably adequate domestic water service in common with other
     tenants.  In the event that water is not separately metered for the
     Premises and Tenant uses a materially greater amount of water than the
     usual amount used in similar buildings, then Landlord may bill Tenant for
     the additional cost of such increased use and for the cost of determining
     such increased use, and Tenant shall pay Landlord therefor within thirty
     (30) days after receiving such bill together with reasonable supporting
     documentation.  If as of the Commencement Date, water service is not
     separately metered for the Premises, Landlord reserves the right to install
     separate meters for the Premises at Tenant's sole cost and expense during
     the Term of this Lease.

          (c)   Exterior window washing of all windows in the Premises, weather
     permitting three (3) times per Calendar Year;

          (d)   Replacement of dock levelers, provided that if the replacement
     is necessitated by the willful misconduct or gross negligence of Tenant,
     its agents, servants or employees, then the cost thereof shall be billed
     directly to Tenant, and Tenant shall pay Landlord therefor within thirty
     (30) days after receiving such bill together with reasonable supporting
     documentation;

          (e)   Reasonably adequate sanitary sewer service in common with other
     tenants.  If Landlord reasonably determines that additional sanitary sewer
     capacity is required or that a separate sanitary sewer line servicing the
     Premises is or may be prudent based on the nature of the Permitted Use
     (e.g., excessive amounts or unique nature of discharge from the Premises),
      ----
     Landlord may increase such capacity and/or install a separate sanitary
     sewer line servicing the Premises, all at Tenant's sole cost (which cost
     shall include a reasonable administrative fee payable to Landlord in
     connection therewith).  Any such costs shall be paid by Tenant to Landlord
     within thirty (30) days after being billed therefor together with
     reasonable supporting documentation.  If a separate sanitary sewer line is
     installed serving the Premises as a result of Tenant's excessive use of the
     sanitary sewer service, as reasonably determined by Landlord, and such
     service is not separately metered to the Premises, then Landlord may bill
     Tenant for the cost of sanitary sewer service furnished to the Premises
     through such separate line, and Tenant shall pay Landlord therefor within
     thirty (30) days after receiving such bill.

     Landlord shall arrange with the utility companies providing the Building
with electricity, telephone and natural gas service for the supply of such
services to the Premises. Such services shall be separately metered to the
Premises, and Tenant shall pay for the cost of any meter required in connection
therewith. Tenant shall pay the public utility companies and/or municipality
directly for any services provided and separately metered to the Premises.
Tenant shall bear the cost of maintaining light fixtures and replacing bulbs,
tubes, ballasts, etc.

                                       7.

<PAGE>

     Landlord shall not be obligated to provide any services other than those
expressly set forth above in this Section.  Landlord does not warrant that any
of the services mentioned above will be free from interruptions caused by
repairs, improvements or alterations of their equipment by utility providers, or
by war, insurrection, civil commotion, acts of God or governmental action,
strikes, lockouts, picketing, whether legal or illegal, accidents, inability of
Landlord to obtain fuel or supplies, or any other cause or causes beyond
Landlord's reasonable control.  Any such interruption of service shall never be
deemed an eviction (actual or constructive) or a disturbance of Tenant's use and
possession of the Premises or any part thereof and shall never render Landlord
liable to Tenant for damages or relieve Tenant from performance of Tenant's
obligations under this Lease.  In any such event, however, Landlord shall use
its best efforts to cause all such interrupted services to be restored to the
Premises as soon as possible.

     Except as expressly provided below in this paragraph, Tenant agrees that
Landlord shall not be liable for damages (by abatement of Rent or otherwise) for
any interruption in or failure to furnish or any delay in furnishing any of the
services described above in this Section, or for any diminution in the quality
or quantity thereof, when such interruption, failure, delay or diminution is
occasioned, in whole or in part, by any repairs, maintenance, replacements or
improvements, or by any strike, lockout or other labor trouble (whether legal or
illegal), by any failure to obtain fuel or supplies, by any accident, by any
act, omission or default of Tenant or other parties, or by any other cause
beyond Landlord's reasonable control; and any such interruption, failure, delay
or diminution shall never be deemed to constitute an eviction or disturbance of
Tenant's use and possession of the Premises or relieve Tenant from paying Rent
(except as expressly provided below in this paragraph) or performing any of its
obligations under this Lease.  Notwithstanding the foregoing, if (i) Landlord
ceases to furnish any of the services referred to in this Section as a result of
a condition which is within Landlord's reasonable control and is reasonably
susceptible of being remedied by Landlord, (ii) Tenant notifies Landlord of such
cessation within two (2) business days after obtaining knowledge thereof, and
(iii) as a result of such cessation, a portion of the Premises is rendered
untenantable (meaning that Tenant is unable to use such space in the normal
course of business) and Tenant in fact so ceases to use such space, for more
than five (5) consecutive days, then Base Rent and Additional Rent payable
hereunder shall be equitably abated based on the percentage of space in the
Premises so rendered untenantable and not being so used by Tenant, effective as
of the day the affected space becomes untenantable and Tenant ceases to so use
such space and continuing until the affected space once again becomes
tenantable.

6.   SECURITY DEPOSIT. As additional security for the full and prompt
     ----------------
performance by Tenant of all its obligations hereunder, Tenant has upon
execution of this Lease paid to Landlord the amount set forth in Section 1.10
                                                                 ------------
hereof (the "Security Deposit"), which amount may be applied by Landlord for the
purpose of curing any default by Tenant which default continues beyond the
expiration of any applicable cure period set forth in Section 15.1 of this
                                                      ------------
Lease.  Landlord shall be permitted to commingle the Security Deposit with
Landlord's general funds.  Landlord shall not be required to pay any interest on
the Security Deposit.  If any portion of the Security Deposit is applied to cure
a default by Tenant which default continues beyond the expiration of any
applicable cure period set forth in Section 15.1 of this Lease, Tenant shall,
                                    ------------
within ten (10) business days after written demand therefor, deposit cash with
Landlord in an amount sufficient to restore the Security Deposit to its original
amount, and Tenant's failure to do so shall be a breach of this Lease.  If
Tenant has not defaulted hereunder or if Landlord has not applied the full
amount of the Security Deposit to said default beyond the expiration of any
applicable cure period set forth in Section 15.1 of this Lease, then the
                                    ------------
Security Deposit, or any portion thereof not so applied by Landlord, shall be
paid in cash to Tenant within sixty (60) days after Tenant shall have vacated
the Premises in accordance with the provisions of this Lease.  The Security
Deposit is not an advance payment of Rent or an account of Rent, or any part or
settlement thereof, or a measure of Landlord's damages.  If on the fifth
anniversary of the Commencement Date Tenant is not in default under this Lease
and no event has occurred and is continuing which with the giving of notice or
the passage of time, or both, would constitute a default under this Lease, the
Security Deposit still be reduced to Ten Thousand and 00/100 Dollars
($10,000.00).  In the event Landlord transfers all or any part of its interest
in the Building or this Lease, upon such transferee's written assumption of all
of Landlord's obligations under this Lease, Landlord shall have the right to
transfer the Security Deposit to the transferee.  Upon such transfer and
assumption, Landlord shall thereby be released by Tenant from all liability or
obligation for the return of the Security Deposit.

                                       8.

<PAGE>

7.   USE. Tenant shall use and occupy the Premises for the Permitted Use only
     ---
and for no other purpose, unless otherwise expressly agreed in writing by
Landlord.  Tenant shall not use or occupy the Premises, or permit the Premises
to be used or occupied contrary to or in violation of any Laws, or in any manner
which would: (i) cause structural injury to the Premises or the Building; (if)
invalidate any insurance policy affecting the Premises or the Building; (iii)
increase the amount of premiums for any insurance policy affecting the Premises
or the Building; (iv) or may be dangerous to persons or property; (v) create a
nuisance, or disturb any other occupant of the Building.

8.   CONDITION OF PREMISES. On the Commencement Date, Landlord shall deliver the
     ---------------------
Premises to Tenant in broom-clean condition.  Subject to the correction and
completion of any items set forth on the punch list to be prepared under Section
                                                                         -------
4 of the Work Letter, Tenant's taking possession of the Premises shall be
-
conclusive evidence as against Tenant that the Premises were in good, clean and
sanitary order and repair and satisfactory condition and at such time were free
from defects, other than latent defects in the Tenant Improvements of which
Landlord is notified of within one (1) year after the Commencement Date.  No
promise of Landlord to after, remodel or improve the Premises or the Building
and no representation respecting the condition of the Premises or the Building
has been made by Landlord to Tenant other than as may be contained herein or in
the Work Letter.

     Landlord warrants to Tenant that as of the date of this Lease, to the
actual knowledge of Landlord, the Premises and any improvements to be
constructed by Landlord (a) are free from material structural defects, (b)
comply with all applicable Laws and (c) are free from contamination by any
Hazardous Materials. In the event of a breach of the foregoing warranties,
Landlord shall promptly rectify such breach at its sole cost and expense.

9.   EARLY POSSESSION. If Tenant takes possession of all or any part of the
     ----------------
Premises prior to the Commencement Date, all of the covenants and conditions of
this Lease (except for the payment of Rent which shall be paid to Landlord in
accordance with the terms of this Lease commencing on the Commencement Date)
shall be binding upon the parties hereto the same as if the Commencement Date
had been fixed as of the date when Tenant took such possession.

10.  ASSIGNMENT AND SUBLETTING.
     -------------------------

     10.1    Prohibitions.  Tenant shall not, without the prior written consent
             ------------
of Landlord: (a) assign, convey or mortgage this Lease or any interest
hereunder, other than to an Affiliate or Successor (as hereinafter defined); (b)
permit any assignment of, or lien upon this Lease or Tenant's interest herein by
operation of law or otherwise; (c) sublet the Premises or any part thereof,
other than to an Affiliate or Successor; or (d) permit the use of the Premises
by any parties other than Tenant, its agents and employees. Landlord shall not
unreasonably withhold or delay its consent to any such assignment or subletting.
Tenant acknowledges and agrees that Landlord has a vital interest in the nature,
variety and location of tenants in the Building as a whole and that Landlord's
right to withhold its consent to any proposed assignment or subletting for
reasonable business concerns and purposes is a material consideration for the
rental rate and terms contained in this Lease. Neither an assignment or
subletting to an Affiliate or to a Successor, nor Landlord's consent to any
other assignment, subletting or transfer, nor Landlord's election to accept any
assignee, sublessee or transferee as Tenant hereunder, shall release the
original Tenant from any covenant or obligation under this Lease. Landlord's
consent to any assignment or subletting shall not constitute a waiver of
Landlord's right to consent to any future assignment or subletting.

     10.2    Notice to Landlord.  Tenant shall give Landlord written notice of
             ------------------
any proposed sublease or assignment (including, without limitation, a proposed
sublease or assignment to an Affiliate or to a Successor) at least forty-five
(45) days prior to the effective date of such proposed sublease or assignment.
Such notice shall contain the name of the proposed sublessee or assignee, a copy
of the proposed sublease or assignment document, a description of the intended
use of the Premises by the proposed sublessee or assignee, and such other
information as Landlord may reasonably request to evaluate the character,
reputation and creditworthiness of the proposed assignee or sublessee and the
proposed use of the Premises by such proposed assignee or sublessee. In
connection with a sublease

                                       9.

<PAGE>

or assignment to an Affiliate or to a Successor, such notice shall be
accompanied by reasonable evidence that the proposed sublessee or assignee is an
Affiliate or a Successor.

     10.3    Sharing of Profits.  Without limitation of any other provision
             ------------------
hereof, should Tenant propose to assign this Lease or sublet the Premises to any
person or entity other than an Affiliate or to a Successor, Landlord may grant
its consent to the assignment or sublease on the condition that fifty percent
(50%) of the profits derived by Tenant from the assignment or sublease be paid
by Tenant to Landlord as Additional Rent. For purposes of this Section,
"profits" shall mean the amount of any and all consideration received by Tenant
in connection with such sublease or assignment, minus the amount of Rent to be
paid by Tenant under this Lease for the portion of the Term and the portion of
the Premises covered by such sublease or assignment, minus all reasonable, out-
of-pocket costs incurred by Tenant in connection with such assignment or
sublease (including leasing commissions, advertising expenses, costs of
alterations or improvements to the Premises and attorney's fees).

     10.4    Transfers of Ownership Interests in Tenant.  If Tenant is a
             ------------------------------------------
partnership or a corporation whose partnership interests or stock are not
publicly traded, any event or transaction or series of events or transactions
resulting in a transfer of control of Tenant shall be deemed to be a voluntary
assignment of this Lease by Tenant and shall be subject to the provisions of
this Section 10.  For purposes of this Section 10.4, the term "control" shall
     ----------                        ------------
have the meaning set forth in Section 2.1 hereof.  Tenant shall pay to Landlord
                              -----------
as Additional Rent hereunder, all reasonable costs and expenses (including,
without limitation, reasonable attorneys' fees) paid or incurred by Landlord in
connection with any proposed assignment or subletting hereunder, regardless of
whether Landlord withholds or grants its consent to such assignment or
subletting.

     Notwithstanding anything to the contrary contained herein, any assignment
of this Lease to a successor by reason of merger with Tenant, or assignment
between parent and subsidiary, or assignment to an entity acquiring
substantially all of the assets or capital stock of Tenant (the "Successor")
shall be permitted upon prior written notice to Landlord but without Landlord's
consent if on the date Tenant notifies Landlord of such assignment and on the
effective date of the assignment the Successor has "Tangible Net Worth" (as
hereinafter defined) equal to or greater than the greater of (i) the Tangible
Net Worth of Tenant on the date of this Lease, or (ii) the Tangible Net Worth of
Tenant on the date Tenant notifies Landlord of such Successor; provided,
however, neither an assignment or subletting to an Affiliate or Successor, nor
Landlord's consent to any other assignment, subletting or transfer, nor
Landlord's election to accept any assignee, sublessee or transferee as Tenant
hereunder, shall release the original Tenant from any covenant or obligation
under this Lease. "Tangible Net Worth" means the excess of total assets over
total liabilities, in each case as determined in accordance with generally
accepted accounting principles consistently applied.

     In addition, and notwithstanding anything to the contrary herein, a sale or
transfer of the capital stock of Tenant shall be permitted without the consent
of Landlord provided that (a) Tenant becomes a publicly traded corporation as a
result of such sale or transfer, and (b) on the date Tenant notifies Landlord of
such sale or transfer to become a publicly traded corporation, and on the
effective date of Tenant becoming a publicly traded corporation, Tenant has
Tangible Net Worth equal to or greater than the greater of (i) the Tangible Net
Worth of Tenant on the date of this Lease, or (ii) the Tangible Net Worth of
Tenant on the date Tenant notifies Landlord of such sale or transfer to become a
publicly traded corporation.  Tenant shall give Landlord written notice of any
public offering at least thirty (30) days prior to the effective date of such
proposed initial public offering.

11.  REPAIRS AND ALTERATIONS.
     -----------------------

     11.1    Tenant's Repair Obligations.  Tenant will, at its own expense, keep
             ---------------------------
the Premises in good condition and repair during the Term, and Tenant shall
promptly and adequately repair all damage to the Premises (including, without
limitation, docks, dock doors and seals and dock levelers) and replace or repair
all damaged or broken glass, fixtures, improvements and appurtenances, and
within any reasonable period of time specified by Landlord.  Notwithstanding
anything to the contrary herein, any repairs by Tenant to mechanical, electrical
or plumbing systems in the Premises shall be performed under

                                       10.

<PAGE>

the supervision and with the approval of Landlord. If Tenant fails to commence
any such repairs or replacements within five (5) business days after written
notice from Landlord of such required action, Landlord may, but need not, make
such repairs and replacements, and Tenant shall pay Landlord the cost thereof,
plus an additional ten percent (10%) to cover Landlord's overhead and related
expenses, forthwith upon being billed for same. Landlord may enter the Premises
at all reasonable times and with at least one business day prior verbal notice
to make such repairs and replacements and any other repairs, alterations,
improvements and additions to the Premises required hereunder or to the Building
or to any equipment located in the Building. Tenant shall not be obligated to
repair or replace the roof or any structural defects in the Premises.
Notwithstanding anything contained herein to the contrary, if any damage to the
Property or to the Premises or to any equipment thereon or appurtenance thereto
results from the willful misconduct or gross negligence of Tenant or of Tenant's
contractors, agents or employees, Landlord may, at Landlord's option, repair
such damage and Tenant shall, within thirty (30) days of receipt of a written
invoice and reasonable supporting documentation by Landlord, reimburse Landlord
forthwith for the total cost of such repairs, plus an additional ten percent
(10%) to cover Landlord's overhead and related expenses. In connection with any
entry made pursuant to this Paragraph 11, Landlord shall use reasonable efforts
to minimize any disruption to Tenant's business caused by any such entry and any
such repairs, alterations, additions or improvements to the Premises.
Notwithstanding anything to the contrary contained herein, Tenant's repair
obligations with respect to a casualty or condemnation shall be governed by the
terms of Sections 18 and 19 respectively. In addition, nothing in this Section
         -----------     --                                            -------
11.1 shall relieve Landlord of its obligations under Section 5.
----                                                 ---------

     11.2    Prohibition on Alterations.  Tenant shall not, without the prior
             --------------------------
written consent of Landlord, make any Alterations.  Landlord may withhold its
consent to any Material Alterations in its sole but reasonable discretion.  With
respect to all other Alterations, Landlord shall not unreasonably withhold or
delay its consent.  Tenant may, without obtaining Landlord's consent, paint and
make minor decorative changes within the Premises (e.g., wallpaper and picture
                                                   ----
hanging).

     11.3    Performance of Alterations.  The work necessary to make any
             --------------------------
Alterations shall be done by contractors approved by Landlord, which approval
shall not be unreasonably withheld or delayed.  If Alterations are, with
Landlord's consent, performed by contractors employed by Tenant, Tenant shall
deliver to Landlord, for its review and approval, which shall not be
unreasonably withheld or delayed, prior to commencing any such Alterations,
copies of all contracts and subcontracts related to such Alterations, and plans,
working drawings and specifications necessary to perform such work.  Landlord's
review of Tenant's plans, specifications or working drawings shall impose no
responsibility or liability on Landlord, and shall not constitute a
representation, warranty or guarantee by Landlord, with respect to the
completeness, design, sufficiency or compliance thereof with any Laws.
Alterations shall be performed subject to any reasonable conditions Landlord may
impose, including, without limitation, furnishing Landlord with reasonable
security for the payment of all costs to be incurred in connection with such
Alterations and insurance against liabilities which may arise out of such
Alterations, as reasonably determined by Landlord.  All Alterations performed by
Tenant or its contractors shall be done in a first-class, workmanlike manner
using only good grades of materials and shall comply with all insurance
requirements and all Laws.  Other than out-of-pocket costs incurred by Landlord
which shall be reimbursed by Tenant upon demand (i.e., consultant fees), Tenant
shall permit Landlord to supervise all Alterations at no cost to Tenant if
Tenant's employees or contractors perform the Alterations.  Landlord will charge
Tenant a supervising fee not to exceed ten percent (10%) of the total cost of
the Alterations, including, without limitation, all labor and material costs, if
Landlord's employees or contractors perform the Alterations.  Tenant shall
promptly pay to Landlord and/or to Tenant's contractors, as the case may be,
when due, the cost of all work and of all decorating required in connection with
any Alterations, and all supervising fees, and if payment is made directly to
Tenant's contractors, upon completion of the Alterations, Tenant shall deliver
to Landlord evidence of payment and full and final waivers of all liens for
labor, services or materials.  Tenant covenants and agrees not to suffer or
permit any liens to be placed against the Property or the Premises relating to
any Alterations, and in case of any such lien attaching or claim thereof being
asserted, Tenant covenants and agrees no later than thirty (30) days from the
filing thereof or such claim being asserted (i) to cause it to be released and
removed of record or (ii) to provide Landlord, with endorsements (reasonably
satisfactory to Landlord and Mortgagee) to Landlord and Mortgagee's title
insurance policies insuring against that existence of or attempted enforcement
of such

                                       11.

<PAGE>

lien or a bond in form and substance reasonably acceptable to Landlord. In the
event that such lien is not released, removed, insured or bonded over within
said thirty (30) day period Landlord, at its sole option, may take all action
necessary to release and remove such lien (without any duty to investigate the
validity thereof) and Tenant shall, within ten (10) business days following
notice, either before or after such release and removal, pay or reimburse
Landlord, as Additional Rent hereunder, for all sums, costs and expenses
(including, without limitation, reasonable attorneys' fees and court costs)
incurred by Landlord in connection therewith. Except to the extent caused by
gross negligence or willful misconduct of Landlord or any of its agents,
employees, contractors or representatives, Tenant shall indemnify, defend and
hold Landlord and its partners and their respective officers, shareholders,
directors, agents and employees harmless from all claims, causes of action,
liabilities, losses, costs, damages, liens and expenses related to any
Alterations, whether performed by or under the direction of Landlord, and
whether performed in compliance with this Section 11 or any other conditions
                                          ----------
imposed by Landlord.

12.  CERTAIN RIGHTS RESERVED BY LANDLORD. Landlord shall have the following
     -----------------------------------
rights, exercisable without notice (except as expressly provided below) and,
except to the extent that any loss, injury or damage is suffered as a result of
the gross negligence or willful misconduct of Landlord or any of its agents,
employees or contractors, without liability to Tenant for damage or injury to
property, person or business, and without effecting an eviction, constructive or
actual, or disturbance of Tenant's use or possession of the Premises or giving
rise to any claim for set-off or abatement of Rent:

          (a) To change the name or street address of the Building with at least
     ninety (90) days' written notice to Tenant;

          (b) To install, affix and maintain any and all signs within and on the
     exterior of the Building (excluding the exterior portion of the Building
     where the Premises is located) and on the Land;

          (c) To designate and/or approve, prior to installation, all types of
     window shades, blinds, drapes, awnings, window ventilators and other
     similar equipment, and to control all internal lighting that may be visible
     from the exterior of the Premises;

          (d) To show the Premises to prospective tenants at reasonable hours
     upon at least one business day's prior verbal notice to Tenant's
     Representative or Tenant's site manager at the Premises during the last
     nine (9) months of the Term and, if abandoned during such year, to prepare
     the Premises for re-occupancy, and to show the Premises to prospective
     purchasers and lenders of the Building at reasonable hours upon at least
     one (1) business days prior verbal notice to Tenant's Representative or
     Tenant's site manager at the Premises at any time during the Term;

          (e) To retain at all times, and to use in appropriate instances upon
     at least one (1) business day's prior verbal notice (except in cases of
     emergency in which case no notice shall be necessary) to Tenant's
     Representative or Tenant's site manager at the Premises, keys to all doors
     (except secure areas) within and into the Premises.  No locks shall be
     changed without the prior written consent of Landlord;

          (f) To decorate or to make repairs, alterations, additions, or
     improvements, whether structural or otherwise, in and about the Building or
     the Property, or any part thereof, and for such purposes to enter upon the
     Premises upon at least one (1) business days prior verbal notice to
     Tenant's representative or Tenant's site manager at the Premises (except in
     an emergency, in which case no notice shall be necessary), and during the
     continuance of any such work, to temporarily close roads, drives, doors,
     entryways, public space and corridors in the Building or on the Property,
     and to interrupt or suspend temporarily Building services and facilities,
     all without abatement of Rent or affecting any of Tenant's obligations
     hereunder, so long as the Premises are reasonably accessible and, Landlord
     shall use reasonable efforts to minimize any disruption to Tenant's
     business;

                                       12.

<PAGE>

          (g) To have and retain a paramount title to the Premises free and
     clear of any act of Tenant purporting to burden or encumber it;

          (h) In its reasonable discretion, to grant to anyone the exclusive
     right to conduct any business or render any service in or to the Property,
     provided such exclusive right shall not operate to affect any of Tenant's
     rights under this Lease;

          (i) To approve the location of equipment and articles in and about the
     Premises and the Building so as not to exceed the legal live load; and

          (j) To prohibit the placing of vending or dispensing machines of any
     kind in or about the Premises, except for vending or dispensing machines
     for the sole use of Tenant and its employees.

     In connection with any action by or on behalf of Landlord performed
pursuant to this Paragraph 12, Landlord shall use reasonable efforts to minimize
any disruption to Tenant's business caused by any such action.

13.  COVENANT AGAINST LIENS. Tenant covenants and agrees not to permit any lien
     ----------------------
of mechanics or materialmen to be placed against the Property or the Premises,
and in the case of any such lien attaching, to pay off and remove or bond over
any such lien to Landlord's reasonable satisfaction within thirty (30) days
after the filing thereof.  If any such lien attaches, and Tenant fails to remove
or bond over such lien to Landlord's reasonable satisfaction within said 30-day
period, Landlord may, but shall not be obligated to, pay the amount necessary to
remove such lien without being responsible for making an investigation as to the
validity or accuracy thereof, and the amount so paid, together with all costs
and expenses (including, without limitation, reasonable attorneys' fees)
incurred by Landlord in connection therewith, shall be deemed Additional Rent
hereunder, payable within ten (10) business days of Landlord's written demand,
which shall be delivered together with reasonable supporting documentation of
such amounts owed Landlord.

14.  WAIVERS AND INDEMNITIES.
     -----------------------

     14.1    Waiver.  To the extent not expressly prohibited by law and except
             ------
for the gross negligence or willful misconduct of Landlord or any of its agents,
employees, contractors or representatives, Tenant waives all claims it may have
against Landlord and its partners, and their respective officers, shareholders,
directors, agents and employees for any damage to person or property or loss of
business due to the Property, the Premises or any part of either thereof or any
appurtenances thereto or improvements thereon not being in good condition or
becoming out of repair, or due to the happening of any accident in or about the
Property or the Premises or due to any act or neglect of any tenant or occupant
of the Property or of any other person, including Landlord and its partners, and
their respective officers, shareholders, directors, agents and employees. This
provision shall apply particularly (but not exclusively) to damage caused by
water, snow, frost, steam, sewage, gas, faucets and plumbing fixtures, and shall
apply without distinction as to the person whose act or neglect was responsible
for the damage and whether the damage was due to any of the causes specifically
enumerated above or to some other cause of an entirely different kind. Tenant
further agrees that all Tenant's property upon the Premises shall be there at
the risk of Tenant only, and that Landlord shall not be liable for any damage
thereto or theft thereof.

     14.2    Indemnification.  Subject to Section 17.1 and except for the gross
             ---------------              ------------
negligence or willful misconduct of Landlord, Tenant hereby agrees to indemnify,
defend and hold harmless Landlord and its partners and their respective
officers, shareholders, directors, agents and employees against any claims or
liability for damage to person or property (or for loss or misappropriation of
property) occurring during the Term in or on the Property or in the Premises,
arising from any breach or default on the part of Tenant under this Lease, or
from any act or omission of Tenant or any employee, agent, servant, invitee or
contractor of Tenant in or on the Property or in the Premises, or from Tenant's
operations or activities on

                                       13.

<PAGE>

or use of the Premises or the Property, and from any cost relating thereto
(including, without limitation, reasonable attorneys' fees).

     Subject to Section 17.1 hereof and except for the gross negligence or
                ------------
willful misconduct of Tenant, Landlord hereby agrees to indemnify, defend and
hold harmless Tenant and its respective officers, shareholders, directors,
agents and employees against any claims or liability for damage to person or
property (or for loss or misappropriation of property) occurring during the Term
in or on the Property or the Premises, arising from any negligent act or
omission of Landlord or any employee, agent, servant, invitee or contractor of
Landlord in or on the Property or the Premises, or from any breach or default on
the part of Landlord under this Lease, or from Landlord's operations or
activities on or use of the Property or the Premises, and from any cost relating
thereto (including, without limitation, reasonable attorney's fees).

     14.3    No Implicit Waivers.  No waiver of any condition expressed in this
             -------------------
Lease shall be implied by any neglect of Landlord or Tenant to enforce any
remedy on account of the violation of such condition if such violation be
continued or repeated subsequently, and no express waiver shall affect any
condition other than the one specified in such waiver and that one only for the
time and in the manner specifically stated.  After the expiration of any
applicable cure period set forth in Section 15.1 of this Lease, no receipt of
                                    ------------
moneys by Landlord from Tenant after the termination in any way of the Term or
of Tenant's right of possession hereunder or after the giving of any notice
shall reinstate, continue or extend the Term or affect any notice given to
Tenant prior to the receipt of such moneys, it being agreed that after the
service of notice of the commencement of a suit or after final judgment for
possession of the Premises, Landlord may receive and collect any Rent due, and
the payment of said Rent shall not waive or affect said notice, suit or
judgment.

15.  DEFAULTS AND LANDLORD'S REMEDIES.
     --------------------------------

     15.1    Defaults.  It shall be a default under this Lease if: (i) default
             --------
shall be made in the payment of Rent or any installment thereof or in the
payment of any other sum required to be paid by Tenant under this Lease, and
such default shall continue for five (5) days after receipt of written notice of
such default; or (ii) default shall be made in the performance of any of the
other covenants or conditions which Tenant or any Guarantor is required to
observe and perform under this Lease or under any Guaranty, and such default
shall continue for thirty (30) days after notice to Tenant (unless such default
shall give rise to a hazardous condition requiring an immediate cure, in which
case, no notice is necessary (although Landlord shall use reasonable efforts to
provide such notice) and Tenant must cure such default immediately); provided,
however, that Landlord shall not be entitled to exercise its remedies on account
of any default described in this clause (ii) if (a) such default cannot
reasonably be cured within thirty (30) days, (b) Tenant commences to cure such
default within said 30-day period and thereafter diligently and continuously
proceeds with such cure, and (c) Tenant cures such default within a reasonable
period of time after Landlord's notice of such default; or (iii) the interest of
Tenant in this Lease is levied on under execution or other legal process, or
(iv) an Event of Bankruptcy occurs, or (v) Tenant dissolves or ceases to exist
unless Tenant's interest in this Lease shall be transferred to an Affiliate or
to a Successor pursuant to the terms of Section 10 of this Lease, or (vi) Tenant
                                        ----------
shall abandon the Premises during the Term.

     15.2    Landlord's Remedies. Upon a default under this Lease, Landlord at
             -------------------
its option may, without notice or demand of any kind to Tenant or any other
person, exercise any one or more of the following described remedies in addition
to all other rights and remedies provided at law or in equity:

             (a) Landlord may terminate this Lease and the Term created hereby,
     in which event Landlord may forthwith repossess the Premises and be
     entitled to recover forthwith as damages a sum of money equal to all Rent
     accrued and unpaid for the period up to and including the date of
     termination, plus as final and liquidated damages (and not as a penalty),
     Landlord's reasonable estimate of the amount of Rent that would be payable
     from the date of such termination through the balance of the scheduled
     Term, less the fair rental value of the Premises for said period (taking
     into consideration the time to relet the Premises, and taking into
     consideration and

                                      14.

<PAGE>

     reducing said fair rental value by, the cost of reletting and retrofitting
     the Premises), plus any other sum of money and damages owed by Tenant to
     Landlord.

             (b) Landlord may terminate Tenant's right of possession and may
     repossess the Premises by forcible entry or detainer suit or otherwise,
     without terminating this Lease, in which event Landlord may, but shall be
     under no obligation to, relet the Premises for the account of Tenant, for
     such rent and upon such terms as shall be satisfactory to Landlord.  For
     the purpose of such reletting, Landlord is authorized to decorate and make
     any repairs, changes, alterations, or additions in or to the Premises that
     may be necessary or appropriate, and Tenant shall, upon written demand, pay
     the cost thereof.  If Landlord shall fail or refuse to relet the Premises,
     or if the Premises are relet and a sufficient sum shall not be realized
     from such reletting to pay all of the costs and expenses (i) of such
     decoration, repairs, changes, alterations and additions, (ii) of such
     reletting (including, without limitation, all brokerage, advertising, and
     legal expenses), and (iii) of the collection of the rent accruing
     therefrom, and to satisfy the Rent provided for in this Lease, then Tenant
     shall pay to Landlord as damages a sum equal to the amount of the Rent
     reserved in this Lease for such period or periods, or, if the Premises have
     been relet, Tenant shall satisfy and pay any such deficiency upon demand
     therefor from time to time.  Tenant agrees that Landlord may file suit to
     recover any sums falling due under the terms of this paragraph (b) from
     time to time and that no suit or recovery of any portion due Landlord
     hereunder shall be any defense to any subsequent action brought for any
     amount not theretofore reduced to judgement in favor of Landlord.  To the
     extent required by law, Landlord shall use reasonable efforts to mitigate
     its damages.

             (c) Landlord may perform the obligation which is the subject of
     such default for the account and at the expense of Tenant. All costs
     incurred by Landlord in performing such obligation, plus an administrative
     fee equal to ten percent (10%) of such costs, plus all attorneys' fees and
     expenses of Landlord incurred in enforcing any of the obligations of Tenant
     under this Lease shall become Additional Rent hereunder and shall be due
     and payable by Tenant on demand.

16.  SURRENDER OF POSSESSION.
     -----------------------

     16.1    Condition of Premises. At the termination of this Lease by lapse of
             ---------------------
time or otherwise, or upon a termination of Tenant's right of possession without
terminating this Lease, Tenant shall surrender possession of the Premises and
all Tenant Improvements to Landlord and deliver all keys to the Premises to
Landlord, and shall return the Premises and all equipment and fixtures of
Landlord to Landlord In as good condition as when Tenant originally took
possession, ordinary wear and tear, loss or damage by fire or other insured
casualty, and damage resulting from the acts of Landlord or any of its employees
and agents excepted, failing which Landlord may restore the Premises and such
equipment and fixtures to such condition and Tenant shall pay the reasonable
cost thereof to Landlord within ten (10) business days of receipt of Landlord's
invoice thereof, which shall be delivered to Tenant with reasonable supporting
documentation. All Alterations, whether temporary or permanent in character,
made by Landlord or Tenant in or upon the Premises shall become Landlord's
property, and unless Landlord requests their removal, shall remain upon the
Premises at the termination of this Lease by lapse of time or otherwise or upon
a termination of Tenant's right to possess the Premises, without compensation to
Tenant, excepting, however, Tenant's movable furniture, equipment and trade
fixtures, provided that they may be removed without permanent structural damage
to the Building. If Tenant does not remove such furniture, equipment and trade
fixtures upon the expiration or earlier termination of this Lease, or upon the
termination of Tenant's right to possess the Premises, at Landlord's election:
(i) Tenant shall be conclusively presumed to have conveyed the same to Landlord
under this Lease as a bill of sale without payment or credit by Landlord, or
(ii) Tenant shall be conclusively presumed to have forever abandoned such
property, and without accepting title thereto, Landlord may, at Tenant's
expense, remove, store, destroy, discard or otherwise dispose of all or any part
thereof without incurring liability to Tenant or to any other person, and Tenant
shall pay Landlord upon demand the reasonable expenses incurred in taking such
actions. Tenant's obligations under this Section 16.1 shall survive the
                                         ------------
expiration or earlier termination of the Term of this Lease.  Notwithstanding
any of the foregoing, Tenant shall not be required

                                      15.

<PAGE>

by Landlord to remove any Alterations from the Premises unless, at the time that
Tenant requests Landlord for its consent for the construction of the same,
Landlord informs Tenant of such removal obligation.

     16.2   Holding Over.  If Tenant retains possession of the Premises or any
            ------------
part thereof after the termination of this Lease, whether by lapse of time or
otherwise, or after a termination of Tenant's right to possess the Premises,
then Landlord may, at Landlord's sole election at any time after the termination
of this Lease or Tenant's right of possession, serve written notice on Tenant
that such holding over constitutes either: (a) the creation of a month-to-month
tenancy upon each of the terms herein provided as may be applicable to such
month-to-month tenancy, except that Tenant shall pay to Landlord Base Rent for
each month or portion thereof in the amount set forth below, plus all Additional
Rent (including, without limitation, the Operating Expense Amount and Estimated
Payments) coming due during such period, or (b) the creation of a tenancy at
sufferance upon each of the terms herein provided as may be applicable to such
tenancy at sufferance, except that Tenant shall pay to Landlord a per them rent
equal to the per them Base Rent set forth below, plus the per them amount of all
Additional Rent (including, without limitation, the Operating Expense Amount and
Estimated Payments).  If no written notice is served by Landlord, then a tenancy
at sufferance with Rent as stated in (b) above shall have been created.  The
provisions of this Section shall not operate as a waiver by Landlord of any
right of re-entry herein provided.  In addition to and not in limitation of all
other remedies set out in this Section, Tenant shall be liable for all damages
(consequential as well as direct) sustained by Landlord on account of Tenant's
holding over.  Base Rent payable during any holding over shall be as follows:

            (i)  during the first sixty (60) days following the termination of
     this Lease or the termination of Tenant's right of possession, one hundred
     twenty-five percent (125%) of the Base Rent for the calendar month
     immediately preceding the termination date of this Lease or the termination
     of Tenant's right of possession; and

            (ii) from and after the sixty-first (61st) day following the
     termination of this Lease or the termination of Tenant's right of
     possession, one hundred fifty percent (150%) of the Base Rent for the
     calendar month immediately preceding the termination date of this Lease or
     the termination of Tenant's right of possession.

17.  INSURANCE.
     ---------

     17.1   Waiver of Subrogation.  Landlord and Tenant each hereby waive all
            ---------------------
claims against the other for loss of or damage to the Property or Premises or to
the contents thereof, which loss or damage is covered by valid and collectible
fire and extended coverage insurance policies, to the extent that such loss or
damage is recoverable under said insurance policies.  Inasmuch as this mutual
waiver will preclude the assignment of any such claim by subrogation (or
otherwise) to an insurance company (or any other person), Landlord and Tenant
each agree to give each insurance company which has issued, or in the future may
issue, to it policies of fire and extended coverage insurance, written notice of
the terms of this mutual waiver, and to have said insurance policies properly
endorsed, if necessary, to prevent the invalidation of said insurance coverage
by reason of said waiver.

     17.2   Tenant's Insurance.  Tenant shall carry insurance during the entire
            ------------------
Term insuring Tenant and Landlord and their respective agents and employees, and
any other reasonable parties designated by Landlord from time to time
(including, without limitation, any Mortgagee) as their interests may appear,
with terms, coverages and in companies reasonably satisfactory to Landlord, and
with such increases in limits as Landlord may from time to time reasonably
request, but initially Tenant shall maintain the following coverages in the
following amounts:

            (a) Comprehensive or Commercial General Liability insurance,
     including Contractual Liability coverage of the indemnification provisions
     contained in this Lease and host liquor liability insurance, with limits
     for bodily injury or personal injury to or death of any person, or more
     than one (1) person, or for damage to property in an amount of not less
     than $1,000,000.00 per occurrence/$3,000,000.00 aggregate. The coverage
     amounts may be provided through an

                                      16.

<PAGE>

     umbrella or excess liability policy. The Comprehensive or Commercial
     General Liability policy shall include Landlord, Landlord's management
     agent and any Mortgagee designated by Landlord from time to time as
     additional insureds on a primary and non-contributory basis to any
     insurance carried by Landlord, Landlord's management agent and any
     Mortgagee.

             (b) Insurance against "all risks" of physical loss for the full
     insurable replacement value of the initial build-out of the Premises
     (including, without limitation, the Tenant Improvements) and all
     Alterations, and of all furniture, trade fixtures, equipment, merchandise
     and all other items of Tenant's property on the Premises.

             (c) Worker's Compensation insurance in amounts required by the
     State of Illinois, including Voluntary Compensation, Broad Form All States
     Endorsement.

             (d) Automobile Liability insurance with limits for bodily injury or
     personal injury to or death of any person, or more than one (1) person, or
     for damage to property in an amount of not less than $1,000,000.00 combined
     single limit, including Employer's Owned, Non-Owned and Hired Car coverage.

     17.3    Evidence of Insurance.  Tenant shall, prior to the commencement of
             ---------------------
the Term, furnish to Landlord certificates of insurance evidencing the insurance
coverage required under this Section 17, and Tenant shall deliver renewals
                             ----------
thereof to Landlord not less than thirty (30) days prior to the end of the term
of such coverage, which certificates shall state that such insurance coverage
shall not be changed or canceled without at least thirty (30) days' prior
written notice to Landlord and any Mortgagee identified by Landlord from time to
time.

     17.4    Landlord's Insurance.  Attached hereto and made a part hereof as
             --------------------
Exhibit D is a certificate of insurance.  evidencing the insurance carried by
---------
Landlord for the Property as of the date of this Lease.  Landlord covenants that
during the Term of this Lease it will continue to maintain insurance for the
Property customarily carried by similar owners of similar types of property.

18.  FIRE OR CASUALTY.
     ----------------

             (a) If the Premises or the Building (including machinery or
     equipment used in the operation of the Building) shall be destroyed or
     damaged by fire or other cause and if the Premises or Building may be
     repaired and restored within two hundred seventy (270) days after such
     damage, then Landlord shall, to the extent insurance proceeds are actually
     made available to Landlord for purposes of repair and restoration,
     diligently repair and restore same with reasonable promptness; provided,
     however, that Landlord shall only be obligated to repair or restore any
     improvements made to the Premises (including, without limitation, the
     Tenant Improvements or any Alterations) to the extent that (i) Landlord
     paid for the initial construction of such improvements (either directly or
     through an allowance granted to Tenant), and (ii) Landlord receives the
     insurance proceeds related to such improvements under the insurance
     described in clause (b) of Section 17.2 hereof. Tenant agrees to execute
                                ------------
     all reasonable documents and take all actions reasonably necessary to make
     the insurance proceeds described in clause (ii) of the immediately
     preceding sentence available to Landlord for the repair and restoration of
     the Premises. Notwithstanding anything contained herein to the contrary, if
     the Premises or the Building are substantially damaged or destroyed during
     the last twelve (12) months of the Term, either Landlord or Tenant shall
     have the right to terminate this Lease as of the date of the fire or other
     casualty by giving notice to the other within thirty (30) days after the
     date of the fire or casualty, i n which event, Rent shall be apportioned on
     a per them basis and paid to the date of such fire or casualty.
     Notwithstanding anything contained herein to the contrary, if such damage
     renders the Premises untenantable in whole or in part and cannot reasonably
     be repaired and restored within two hundred seventy (270) days, or if
     sufficient insurance proceeds are not made available to Landlord for repair
     or restoration and Landlord elects to not obtain or provide alternative
     financing, or if Landlord elects to demolish the Building or cease its
     operation, then either party shall have the right to cancel and terminate
     this Lease (which termination shall be

                                      17.

<PAGE>

     effective as of the date of such damage), in the manner as hereinafter
     provided. Within seventy-five (75) days after the occurrence of the
     casualty, Landlord agrees to provide Tenant with written notice (the
     "Landlord's Casualty Notice") stating which, if any, of the conditions set
     forth in the immediately preceding sentence (individually a "Termination
     Event", and collectively, the "Termination Events") exist and its
     reasonable estimate of the repair period. In the event that a Termination
     Event does exist, Landlord shall exercise its termination right hereunder,
     if at all, by electing to exercise the same in the Landlord's Casualty
     Notice. Provided that a Termination Event exists and Landlord shall not
     have previously chosen to terminate this Lease pursuant to the foregoing
     sentence, Tenant shall terminate this Lease, if at all, by delivering
     written notice to Landlord within twenty (20) days after receiving the
     Landlord's Casualty Notice. Tenant's failure to deliver written notice of
     termination within said 20-day period shall be deemed that Tenant has
     waived its right to terminate this Lease under this Section 18(b). In the
                                                         -------------
     event any fire or casualty renders the Premises untenantable, in whole or
     in part, and if this Lease shall not be terminated by reason of such
     damage, then Rent shall abate during the period beginning with the date of
     such fire or other casualty and ending with the date when the Premises are
     again rendered tenantable, by an amount bearing the same ratio to the total
     amount of Rent for such period as the untenantable portion of the Premises
     bears to the entire Premises. Notwithstanding anything contained herein to
     the contrary, if any fire or other casualty is caused by the gross
     negligence or willful misconduct of Tenant or its agents or employees,
     Tenant shall not be entitled to terminate this Lease on account of such
     fire or other casualty, and Rent shall only abate to the extent Landlord
     actually recovers rent loss insurance proceeds specifically allocated to
     the Rent due under this Lease.

             (b) In the event neither Landlord nor Tenant terminate this Lease,
     pursuant to the terms of Section 18(a), following a casualty to the
                              -------------
     Premises, and Landlord elects to repair the Premises, Landlord shall
     commence construction within thirty (30) days after receipt of a building
     permit from the City, subject to Events of Force Majeure, and shall
     substantially complete such repair or restoration of the Premises within
     two hundred seventy (270) days from the date of the casualty, subject to
     Events of Force Majeure.  If Landlord fails to commence construction or
     complete construction within the time periods hereinabove set forth,
     subject to Events of Force Majeure, Tenant shall have the right to
     terminate this Lease by delivering written notice within ten (10) days
     after the expiration of the thirty (30) day period or within ten (10) days
     after the expiration of the two hundred seventy (270) day period, as the
     case may be.  Tenant's failure to deliver written notice of its election to
     terminate within the required time period shall be deemed that Tenant has
     waived its right to terminate this Lease under this Section 18(b).
                                                         -------------

19.  CONDEMNATION. If the whole or any material part of the Premises or the
     ------------
Building or any substantial portion of the parking area on the Land shall be
taken or condemned by any competent authority for any public use or purpose or
if any adjacent property or street shall be condemned or improved in such a
manner as to require the use of any part of the Premises or of the Building or
such parking area, the Term, at the option of Landlord, shall end upon the date
when the possession of the part so taken shall be required for such use or
purpose, and current Rent shall be apportioned as of the date of such
termination.  In addition, if part of the Premises shall be taken or condemned
by any competent authority for any public use or purpose so that Tenant cannot,
in the reasonable judgment of Tenant, operate its business in the remaining
portion of the Premises, Tenant shall have the option to cancel this Lease as of
the date on which the condemning authority shall take possession of the part of
the Premises so taken, which option shall be exercised by written notice to
Landlord within thirty (30) days following Tenant's receipt of notice of the
intended taking.  Tenant shall have no right to any apportionment of or share in
any condemnation award or judgement for damages made for the taking of any part
of the Premises or the Property but may seek its own award for loss of or damage
to Tenant's business or its property and relocation expenses resulting from such
taking, provided that such an award to Tenant does not in any way diminish the
award payable to Landlord on account of such taking.  In the event of a taking
of the Premises and neither Landlord nor Tenant elects to terminate this Lease,
Base Rent shall be reduced in proportion to the floor area of the Premises
taken, which shall be evidenced by an amendment to this Lease executed by both
parties, and shall become effective on the date possession is delivered pursuant
to said taking.

                                      18.

<PAGE>

20.  NOTICES. All notices to be given by one party to the other under this Lease
     -------
shall be in writing (except as expressly provided herein to the contrary),
mailed by certified or registered mail, postage prepaid, sent by overnight
courier, hand delivered, or sent by facsimile transmission with a copy to follow
within one (1) business day by one of the alternative methods of delivery
permitted hereunder as follows:

          (a)  To Landlord:

               Amli Commercial Properties Limited Partnership
               222 Spring Lake Drive
               Itasca, IL 60143
               Attention: President
               Facsimile Telephone No.:630-227-9860

     or to such other person or at such other address or to such other facsimile
     telephone number designated by notice sent to Tenant in one of the manners
     permitted under this Section 20, and during the Term with a copy to the
                          ----------
     address to which Rent is then being paid under this Lease.

          (b)  To Tenant: at the address or to the facsimile telephone number
     set forth in Section 1.3 above, and during the Term with a copy to the
                 -----------
     Premises or to such other address or facsimile telephone number designated
     by notice to Landlord in one of the manners permitted under this Section
                                                                      --------
     20.
     --

Any notice given in accordance with this Section 20 shall be deemed to have been
                                         ----------
given and received: (a) on the date of hand delivery if sent by hand delivery,
(b) on the date and at the time transmitted if sent by facsimile transmission,
as evidenced by the confirmation slip generated by the sender's facsimile
machine, or (c) on the date of actual delivery (or refusal thereof), as shown on
the return receipt, air bill or other delivery record if sent by any other means
permitted hereunder.

21.  ADDITIONAL COVENANTS OF TENANT. Tenant hereby covenants and agrees to
     ------------------------------
comply with, and use reasonable efforts to cause its employees, agents, clients,
customers, invitees and guests to comply with, the following provisions:

          (a) Any sign, lettering, picture, notice, or advertisement installed
     within the Premises shall be installed at Tenant's cost and in compliance
     with all Laws.  Without obtaining Landlord's prior, written consent (which
     consent may be withheld in Landlord's reasonable discretion) no sign,
     lettering, picture, notice or advertisement may be placed on any portion of
     the Premises which is visible from outside the Premises.

          (b) Tenant shall not advertise the business, profession or activities
     of Tenant in any manner which violates the letter or spirit of any code of
     ethics adopted by any recognized association or organization pertaining
     thereto, or use the name of the Building for any purpose other than for
     identifying Tenant's business address, or use the name of the business
     park, as it may from time to time be known, in which the Building is
     located, or use any picture or likeness of the Building in any letterheads,
     envelopes, circulars, notices, advertisements, containers or wrapping
     material, without Landlord's prior consent in writing.

          (c) Tenant shall not place any radio or television antenna on the roof
     of the Building or on any other part of the Property other than inside the
     Premises, or operate or permit to be operated any musical or sound
     producing instrument or device inside or outside the Premises which may be
     heard outside the Premises.  Tenant shall not make noises, cause
     disturbances or vibrations or use or operate any electrical or electronic
     devices or other devices that emit sound or other waves or disturbances, or
     create odors, any of which may be offensive to other tenants and occupants
     of the Building or that would interfere with the operation of any device or
     equipment or radio or television broadcasting or reception from or within
     the Building or elsewhere.

                                      19.

<PAGE>

          (d) Tenant shall not obstruct sidewalks or entrances in and about the
     Property.  Tenant shall not place objects against doors or windows which
     would be unsightly from the exterior of the Building, and will promptly
     remove same upon notice from Landlord.  Tenant shall store and dispose of
     refuse as directed by Landlord, including, without limitation, storing and
     disposing of all refuse in a neat and clean condition so as not to be
     visible to members of the public outside the Premises and so as not to
     create any health or fire hazard.  In no event shall Tenant burn any refuse
     at any time in the Premises or on or about the Property.  Tenant shall not:
     (i) leave or store any pallets on or around the loading docks, parking
     areas or anywhere on the Property outside of the Premises or park any truck
     trailers in the parking areas on the Land for any purposes (including,
     without limitation, storage purposes, temporary or permanently; or (ii)
     store any boxes, materials, goods or equipment anywhere on the Property
     outside of the Premises.  Notwithstanding anything to the contrary herein,
     Tenant shall be permitted, subject to covenants, rules, regulations and
     guidelines presently existing or imposed from time to time by the Amhurst
     Lake Business Park Association, or any committee thereof, including,
     without limitation, the Declaration of Protective Covenants for Amhurst
     Lake Business Park, to park truck trailers within the area on the Land
     which is crosshatched and depicted on Exhibit E attached hereto (the
                                           ---------
     "Trailer Area"), for temporary or permanent (including overnight) storage
     purposes provided all truck trailers are efficiently placed within the
     Trailer Area along the south wall of the Building and do not interfere with
     any truck maneuvering of other tenants within the truck area between the
     Building and Amhurst Industrial Center II.  Landlord covenants that at no
     time during the Term will any rules or regulations be imposed by the
     Landlord with respect to the Trailer Area materially affect Tenant's
     ability to conduct its business

          (e) Tenant shall not make any room-to-room canvass to solicit business
     from other tenants in the Building, and shall not exhibit, sell or offer to
     sell, use, rent or exchange any item or service in or from the Premises
     unless expressly included within the Permitted Use.

          (f) Tenant agrees to cooperate reasonably with Landlord to assure the
     most effective operation of the Building's heating and air conditioning
     systems, and shall not adjust any controls other than room thermostats
     installed for Tenant's use or take any action which could jeopardize the
     warranties covering the heating, ventilating and air conditioning systems.

          (g) Door keys for doors in the Premises will be furnished at the
     commencement of the Term by Landlord.  Tenant shall not affix additional
     locks on doors without the prior consent of Landlord and shall purchase
     duplicate keys only from Landlord.  At the and of the Term or upon a
     termination of Tenant's right of possession, Tenant shall return all keys
     to Landlord and will disclose to Landlord the combination of any safes,
     cabinets or vaults left in the Premises.

          (h) Tenant assumes full responsibility for protecting the Premises
     from theft, robbery and pilferage, which includes keeping doors locked and
     other means of entry to the Premises (including, without limitation, truck
     docks) closed and secured.

          (i) Peddlers, solicitors and beggars shall be reported promptly to
     Landlord.

          (j) Tenant shall not install or operate heavy machinery of a nature
     not related to the Permitted Use without the written permission of
     Landlord.

          (k) Tenant shall comply with all covenants, conditions and
     restrictions of record encumbering or relating to the Property or any
     portion thereof (including, without limitation, any declaration of
     covenants, conditions, restrictions and easements encumbering the business
     park in which the Property is located), and with all reasonable rules and
     regulations issued from time to time by the Association or by Landlord,
     provided that the same shall not unreasonably interfere with the conduct of
     Tenant's business or its enjoyment of the Premises.

          (l) Tenant will not in any manner deface or injure the Property or any
     part thereof or overload the floors of the Premises.

                                      20.

<PAGE>

            (m) Tenant will not use the Premises for lodging or sleeping
     purposes or for any immoral or illegal purposes.

            (n) Tenant shall not at any time manufacture, sell, use or give
     away, and shall not at any time permit the manufacture, sale, use or gift
     of any spirituous, fermented, intoxicating or alcoholic liquors on the
     Premises or Property. Except for Tenant's and its employees exclusive use
     of vending machines within the Premises, Tenant shall not at any time sell,
     purchase or give away, or permit the sale, purchase or gift of, food in any
     form by or to any of Tenant's agents or employees or any other parties on
     the Premises or Property.

            (o) In no event shall Tenant permit on the Property flammables or
     explosives or any other article of an intrinsically dangerous nature,
     except for any such materials used in the ordinary course of Tenant's
     business and in accordance with all Laws.  If by reason of Tenant's failure
     to comply with the provisions of this Section, any insurance coverage is
     jeopardized or insurance premiums are increased, in addition to all other
     rights and remedies available to Landlord upon a default by Tenant under
     this Lease, Landlord shall have the right to require Tenant to make
     immediate payment of the increased insurance premium, if any.

            (p) Tenant shall not introduce, use, handle, generate, treat,
     transport, store or dispose of, or permit the introduction, use, handling,
     generation, treatment, transportation, storage or disposal of any Hazardous
     Materials in, on, under, to, from, around or about the Premises, the
     Building or the Property, except for Hazardous Materials contained in
     products which are reasonably and customarily used in the normal course of
     Tenant's business, such as photocopy machine solutions and cleaning
     solvents, as long as such Hazardous Materials are only used in compliance
     with all Laws (without the need for a special permit) and all
     manufacturer's and supplier's instructions and recommendation, and in
     quantities and for purposes which are reasonably and customarily used in
     the normal course of Tenant's business.  Tenant shall indemnify, defend and
     hold harmless Landlord, its partners and their respective officers,
     directors, shareholders, servants, agents and employees from and against
     all fines, penalties, liens, suits, procedures, claims, demands,
     liabilities, damages (including consequential damages), actions, causes of
     action, costs and expenses of every kind and nature whatsoever (including,
     without limitation, reasonable attorneys', engineers', experts and
     consultants' fees and costs of testing, monitoring, remediation, removal
     and cleanup), contingent or otherwise, known or unknown, incurred or
     imposed, to the extent arising directly or indirectly out of or in any way
     connected with Tenant's breach of the covenants set forth in this Section
                                                                       -------
     21(p).  Tenant's obligations under the immediately preceding sentence shall
     -----
     survive the expiration or earlier termination of this Lease and a
     termination of Tenant's right to possess the Premises.

22.  ESTOPPEL CERTIFICATES: MORTGAGE ISSUES.
     --------------------------------------

     22.1   Estoppel Certificates. Tenant agrees that from time to time upon
            ---------------------
not less than ten (10) business days prior request by Landlord or any Mortgagee,
Tenant will deliver to Landlord or such Mortgagee an estoppel certificate
substantially in the form of Exhibit F attached hereto and made a part hereof or
                             ---------
in such other form as Landlord or such Mortgagee may reasonably request.  In the
event Tenant fails or refuses to deliver any such certificate within said 10-
business day period, in addition to all other rights and remedies available
under this Lease, at law or in equity upon a default by Tenant under this Lease,
Tenant shall be deemed to have accepted, agreed with and certified to, each of
the statements set forth in any such certificate.  Landlord agrees that upon not
less than ten (10) business days prior request by Tenant's primary lender or
Successor, Landlord will deliver to Tenant and Tenant's primary lender or
Successor, as the case may be, an estoppel certificate substantially in the form
of Exhibit G attached hereto and made a part hereof or in such other form as
   ---------
Tenant's lender or Successor may reasonably request.  In the event Landlord
fails or refuses to deliver any such certificate within said 10-business day
period, in addition to all other rights and remedies available under this Lease,
at law or in equity upon a default by Landlord under this Lease, Landlord shall
be deemed to have accepted, agreed with and certified to, each of the statements
set forth in any such certificate.

                                      21.

<PAGE>

     22.2    Subordination and Attornment.  Landlord may sell the Land and
             ----------------------------
become the tenant under a ground or underlying lease of the Land and this Lease
and all rights of Tenant hereunder will then be subject and subordinate to such
underlying lease and any extensions or modifications thereof. This Lease and all
of Tenant's rights hereunder shall also be subject and subordinate to any
mortgage or mortgages (and the liens thereof) now or at any time hereafter in
force against the Building, the Land and/or the underlying leasehold estate, and
to all advances made or hereafter to be made upon the security thereof;
provided, however, that such subordination shall be conditioned upon the
Mortgagee under any such mortgage agreeing, in writing, that a foreclosure of
such mortgage or the giving of a deed in lieu of foreclosure shall not terminate
this Lease, and Tenant may remain In possession of the Premises pursuant to the
terms of this Lease, as long as Tenant is not in default beyond the expiration
of any applicable cure period set forth in Section 15.1 of this Lease (a "Non-
                                           ------------
Disturbance Agreement").  A Non-Disturbance Agreement may be contained in an
instrument signed by the Mortgagee only, or in an agreement entered into by
Tenant and any such Mortgagee.  For purposes of this Lease, "Mortgagee" shall
mean the mortgagee, from time to time, under any mortgage granted by Landlord
and now or hereafter encumbering the Property or any portion thereof or interest
therein.  Tenant hereby acknowledges that as of the date hereof, Bank One,
Chicago, NA, 111 N. Canal Street, Chicago, Illinois 60606 is a Mortgagee.
Tenant shall execute such further reasonable instruments subordinating this
Lease to any such mortgage or mortgages (and containing such other terms and
agreements as are customarily contained in such instruments) as Landlord from
time to time may reasonably request, provided that any such instrument contains
a Non-Disturbance Agreement.  Tenant covenants and agrees that, if by reason of
any default on the part of Landlord herein as tenant under said underlying
lease, or as mortgagor under any mortgage to which this Lease is subject and
subordinate, said underlying lease is terminated or such mortgage is foreclosed
by summary proceedings, voluntary agreement or otherwise, Tenant, at the
election of the landlord under said underlying lease or the Mortgagee of such
mortgage, as the case may be, will attorn to and recognize such landlord or
Mortgagee as the "Landlord" under this Lease.  Tenant further agrees to execute
and deliver at any time upon request of Landlord, any Mortgagee or any party
which shall succeed to the interest of Landlord as tenant under said underlying
lease, any instrument to evidence such attornment and containing such other
terms and agreements as are customarily contained in such instruments.  Tenant
waives the provision of any law now or hereafter in effect which may give to
Tenant any right of election to terminate this Lease or to surrender possession
of the Premises in the event any proceeding is brought by landlord under said
underlying lease or the Mortgagee under any such mortgage to terminate said
underlying lease or foreclose such mortgage, as long as any such Mortgagee has
provided a Non-Disturbance Agreement.  At the election of any Mortgagee
(expressed in a document signed by such Mortgagee), such Mortgagee may make all
or some of Tenant's rights and interests in this Lease superior to any mortgage
held by such Mortgagee and the lien thereof.  Landlord will use best efforts to
obtain a Subordination, Non-Disturbance and Attornment Agreement from its
current Mortgagee in the form attached hereto as Exhibit H as soon as possible
                                                 ---------
after this Lease is executed by Tenant.

     22.3    Notices to Mortgagees.  Tenant agrees to give any Mortgagee, by
             ---------------------
registered mail, a copy of any notice of default served upon Landlord, provided
that Landlord shall have provided Tenant with a current address for Mortgagee.
Tenant further agrees that if Landlord shall have failed to cure such default,
then such Mortgagee shall have an additional thirty (30) days within which to
cure such default, or if such default cannot reasonably be cured by such
Mortgagee within thirty (30) days, such Mortgagee shall have such additional
time as may be necessary to cure such default (including, without limitation,
time necessary to obtain possession of the Property if possession is necessary
to cure such default), and Tenant shall not pursue any remedies it may have for
such default and this Lease shall not be terminated, while such cure is being
diligently pursued.

     22.4    Quiet Possession.  Upon payment by Tenant of the Rent due
             ----------------
hereunder, and upon the observance and performance of all the covenants, terms
and conditions on Tenant's part to be observed and performed, Tenant shall
peaceably and quietly hold and enjoy the Premises for the Term, without
hindrance or interruption by Landlord or any other person or persons lawfully or
equitably claiming by, through or under Landlord, always subject, however, to
the terms and conditions of this Lease.

23.  MISCELLANEOUS.
     -------------

                                      22.

<PAGE>

     23.1    Definition of Landlord.  For purposes of this Lease, Landlord shall
             ----------------------
mean Landlord hereinabove named, except that in the event of any sale or other
transfer of the Property or the Building, upon the transferee's written
assumption of Landlord's obligations under.  this Lease, the seller or
transferor (and the beneficiaries of any selling or transferring land trust)
shall be and hereby is and are entirely freed and relieved of all agreements,
covenants and obligations of the Landlord hereunder accruing from and after the
effective date of such transfer, and without further agreement between the
parties and the purchaser or transferee on any sale or transfer, such purchaser
or transferee shall be deemed and held to have assumed and agreed to carry out
any and all agreements, covenants and obligations of the Landlord hereunder
accruing from and after the effective date of such sale or transfer.

     23.2    Real Estate Broker.  Tenant represents that Tenant has dealt with
             ------------------
no broker in connection with this Lease other than the Broker, and that insofar
as Tenant knows, no other broker or finder negotiated this Lease or is entitled
to any fee or commission in connection herewith. Tenant agrees to indemnify,
defend and hold Landlord and its partners and their respective officers.
shareholders, directors, agents and employees free and harmless from and against
all claims for broker's commissions or finder's fees by any person claiming to
have represented or procured, or to have been engaged by, Tenant in connection
with this transaction other than the Broker.  Landlord represents that Landlord
has dealt with no broker in connection with this Lease other than the Broker and
that insofar as Landlord knows, no other broker or finder negotiated this Lease
or is entitled to any fee or commission in connection herewith.  Landlord agrees
to indemnify, defend and hold Tenant and its officers, shareholders, directors,
agents and employees free and harmless from and against all claims for broker's
commissions or finder's fees by any person claiming to have represented or to
have been engaged by Landlord in connection with this transaction.  Landlord
shall pay Broker all fees and commissions due to Broker in connection with this
Lease.

     23.3    Cumulative Remedies.  All rights and remedies of Landlord under
             -------------------
this Lease shall be cumulative, and none shall exclude any other rights and
remedies allowed by law.

     23.4    Default Interest.  All payments becoming due to Landlord from
             ----------------
Tenant under this Lease shall be considered as Rent, and if any such payments
remain unpaid for more than five (5) business days after written notice of such
default, such payments shall bear interest from the date when due until the date
paid at a rate of interest per annum equal to five percent (5%) in excess of the
rate announced or published from time to time by Harris Trust and Savings Bank
at its office in Chicago, Illinois as its prime or equivalent base rate of
interest adopted as a general benchmark from which Harris Trust and Savings Bank
determines the floating interest rates chargeable on various loans to borrowers
from time to time. Landlord's right to receive such interest shall not, in any
way, limit any of Landlord's other remedies under this Lease or at law or
equity.

     23.5    Grammatical Interpretation.  The word "Tenant" wherever used herein
             --------------------------
shall be construed to mean Tenants in all cases where there is more than one
Tenant, and the necessary grammatical changes required to make the provisions
hereof apply either to corporations or individuals, men or women, shall in all
cases be assumed as though in each case fully expressed.

     23.6    Successors and Assigns.  Each of the provisions of this Lease shall
             ----------------------
extend to and shall, as the case may require, bind or inure to the benefit, not
only of Landlord and of Tenant, but also of their respective heirs, legal
representatives, successors and assigns, provided this clause shall not permit
any assignment contrary to the provisions of Section 10 hereof.
                                             ----------

     23.7    No Oral Modifications.  All of the representations and obligations
             ---------------------
of Landlord and Tenant are contained herein, and no modification, waiver or
amendment of this Lease or of any of its conditions or provisions shall be
binding upon Landlord unless contained in a writing signed by Landlord and
Tenant or by a duly authorized agent of Landlord or Tenant empowered by a
written authorization signed by Landlord or Tenant, as the case may be.

     23.8    Irrevocable Offer; No Option.  In consideration of Landlord's
             ----------------------------
administrative expense in considering this Lease, Tenant's submission to
Landlord of this Lease, duly executed by Tenant, shall

                                      23.

<PAGE>

constitute Tenant's irrevocable offer to continue for ten (10) business days
from and after receipt by Landlord or until Landlord shall deliver to Tenant
written notice of rejection of Tenant's offer, whichever shall first occur. If
within said 10 business day period Landlord shall neither return this Lease duly
executed by Landlord nor so advise Tenant of Landlord's rejection of Tenant's
offer, then Tenant shall be free to revoke its offer. Although Tenant's
execution of this Lease shall be deemed an irrevocable offer by Tenant, the
submission of this Lease by Landlord to Tenant for examination shall not
constitute a reservation of or option for the Premises. This Lease shall become
effective only upon execution thereof by both parties and delivery thereof to
Tenant.

     23.9    No Air Rights.  No rights to light or air over any property,
             -------------
whether belonging to Landlord or any other person, are granted to Tenant by this
Lease.

     23.10   Intentionally Deleted.
             ---------------------

     23.11   Landlord's Title.  Landlord's title to the Property is and always
             ----------------
shall be paramount to the title of Tenant.  Nothing herein contained shall
empower Tenant to do any act which can, shall or may encumber the title of
Landlord to the Property.

     23.12   Recording Prohibited.  Neither this Lease, nor any memorandum,
             --------------------
affidavit or other writing with respect hereto, shall be recorded in any public
record by Tenant or by anyone acting through, under or on behalf of Tenant, and
the recording thereof in violation of this provision shall make this Lease null
and void at Landlord's election.

     23.13   Relationship of Parties.  Nothing contained in this Lease shall be
             -----------------------
deemed or construed by the parties hereto or by any third party, to create the
relationship of principal and agent, partnership, joint venture or any
association between Landlord and Tenant, it being expressly understood and
agreed that neither the method of computation of Rent nor any other provisions
contained in this Lease nor any acts of the parties hereto shall be deemed to
create any relationship between Landlord and Tenant other than the relationship
of lessor and lessee.

     23.14   Limitation of Liability.  Except for actions arising from
             -----------------------
Landlord's fraud or willful misconduct, any claim against, or liability or
obligation of, Landlord under this Lease or relating to the Property or the
Premises shall be limited solely to and satisfied solely from the interest of
Landlord in the Property, and no partner in Landlord, or partner in a partner,
shall be individually or personally liable for any claim arising out of this
Lease or relating to the Property or the Premises. A deficit capital account of
any such partner shall not be deemed an asset or property of Landlord.

     23.15   Excuse for Non-Performance.  Except as expressly provided to the
             --------------------------
contrary in this Lease, this Lease and Tenant's obligation to pay Rent hereunder
and to perform all of Tenant's covenants and agreements hereunder shall not be
impaired or affected, and Landlord shall not be in default hereunder, if
Landlord is unable to fulfill any of its obligations under this Lease because of
any Events of Force Majeure.

     23.16   Late Charge.  If any payment or installment of Rent owed by Tenant
             -----------
under this Lease or under the Work Letter is not paid within five (5) business
days of the date when due, in addition to the amounts due under Section 23.4
                                                                ------------
hereof, Tenant shall pay, as a late charge, an amount equal to five percent (5%)
of the amount overdue for each and every thirty (30) day period or portion
thereof that said amount remains unpaid.

     23.17   Parking.  Landlord hereby grants to Tenant, the non-exclusive right
             -------
to use, during the Term, the number of parking spaces on the Property set forth
under Section 1.14. Tenant and its agents, employees, customers, guests and
      ------------
invitees shall not use parking spaces on the Property exceeding, at any time,
the number of parking spaces permitted under Section 1.14.  Tenant agrees to
                                             ------------
comply with all reasonable rules and regulations which Landlord may promulgate
from time to time with respect to use of the parking areas on the Property.

                                      24.

<PAGE>

     23.18   Riders and Exhibits.  All exhibits and riders attached to this
             -------------------
Lease are made a part hereof and are incorporated herein by reference.

     23.19   Year 2000 Compliance.  Landlord will use reasonable care to
             --------------------
ascertain that systems owned and controlled by Landlord in performing its
obligations under this Lease will continue to function beyond December 31, 1999
(the "Y2K Problem"). Landlord cannot, however, assure that all such systems will
perform as expected. Moreover, many goods and services received by Tenant are
neither owned nor controlled by Landlord including, but not limited to,
electricity, water, gas, cable television, telephone, transportation, police and
fire protection and other governmental services. Notwithstanding anything to the
contrary contained in this Lease, including Section 5, Tenant agrees that
Landlord shall have no liability to Tenant for any loss, claim, liability,
damage, expense or injury to Tenant or any other person or property resulting
from a Y2K Problem unless the same results solely from Landlord's gross
negligence or willful misconduct. Any failure of or problems with Landlord's
and/or Tenant's systems or equipment attributable to the Y2K Problem shall not
release Tenant from or otherwise modify or affect Tenant's duties, obligations
and liabilities under this Lease.

24.  SIGNAGE. Prior to the Commencement Date, Landlord shall, at its sole cost,
     -------
install one (1) ground mounted sign (the "Monument Sign") with a panel
containing Tenant's name and logo, and such other panels containing names of
other tenants at the Property, the order of said names to be determined by
Landlord.  The Monument Sign shall be located on the Land or such other location
mutually agreed to by Landlord and Tenant, provided such location shall also be
approved, to the extent required, by the City of Waukegan, the County of Lake
and the Illinois Department of Transportation; provided, however, that Landlord
may, at its cost, change the location of the Monument Sign from time to time
upon not less than thirty (30) days written notice to Tenant, subject to
Tenant's prior approval of the new location of the Monument Sign (which approval
shall not be unreasonably withheld).  The size, color, material, content, manner
of installation and general appearance of the Monument Sign (and Tenant's panel
thereon) shall comply with all applicable Laws and all covenants, conditions and
restrictions of record encumbering the Property and all rules, regulations and
guidelines imposed from time to time by the Amhurst Lake Business Park
Association (or any subdivision or committee thereof), and shall otherwise be
reasonably acceptable to Landlord in its sole discretion.  Following the
installation of the Monument Sign, Landlord shall keep the Monument Sign in good
condition and repair, and the cost thereof shall be included in Operating
Expenses.

25.  OPTION TO RENEW TERM.
     --------------------

     25.1   Renewal Option.  Subject to the terms and conditions set forth
            --------------
below in this Section 25, this Lease may be extended at Tenant's option (the
              ----------
"Renewal Option") for five (5) years. Such period is called the "Renewal Term".
The Renewal Term shall be upon the same terms, covenants and conditions
contained in this Lease (excluding the Work Letter and this Section 25), except
                                                            ----------
for the amount of Base Rent payable during the Renewal Term, which shall be
determined in accordance with Section 25.2 below. Any reference in this Lease to
                              ------------
the "Term" shall be deemed to include the Renewal Term and apply thereto, unless
it is expressly provided otherwise. Tenant shall have no extension or renewal
option other than the Renewal Option. Any termination of this Lease or of
Tenant's right of possession shall terminate all of Tenant's rights under this
Section 25.  Tenant shall exercise the Renewal Option by delivering written
----------
notice thereof to Landlord not less than nine (9) months prior to the first day
of the Renewal Term.  If Tenant fails to deliver any such notice within the time
period set forth in the immediately preceding sentence, Tenant shall be deemed
to have irrevocably waived its right to exercise the Renewal Option.  If Tenant
delivers written notice exercising the Renewal Option, such notice shall be
irrevocable.

     25.2   Base Rent During the Renewal Term.  The Base Rent during the first
            ---------------------------------
(1st) Lease Year of the Renewal Term shall be based on an annual per square foot
rental rate equal to the greater of: (i) one hundred three percent (103%) of the
net annual per square foot base rental rate in effect under this Lease during
the seventh (7th) Lease Year of the Term, or (ii) ninety-five percent (95%) of
the then Prevailing Market Rental Rate (as defined in Subsection 25.4 hereof)
                                                      ---------------
for the Premises, as reasonably determined by Landlord.  Thereafter, Base Rent
shall increase by three percent (3%) each Lease Year during the

                                      25.

<PAGE>

Renewal Term on a cumulative basis. Tenant's obligation to pay Additional Rent
(including, without limitation, the Operating Expense Amount) and all other
amounts to be paid by Tenant to Landlord under this Lease, shall continue during
the Renewal Term.

     25.3    Conditions to Exercising the Renewal Option.  Tenant's right to
             -------------------------------------------
exercise the Renewal Option is subject to the conditions that on the date that
Tenant delivers its written notice exercising its Renewal Option: (I) Tenant is
not in default under this Lease; (ii) no event has occurred and is continuing
which with the giving of notice or the passage of time, or both, would
constitute a default under this Lease; and (iii) Tenant shall not have assigned
this Lease or sublet more than fifty percent (50%) of the Premises (other than
to an Affiliate or Successor).  Promptly after Tenant exercises the Renewal
Option and the Base Rent to be paid during the Renewal Term is determined,
Landlord shall prepare an amendment to this Lease to reflect the extension of
this Lease for the Renewal Term on the terms set forth above in this Section.
Tenant shall execute and return such amendment to Landlord within fifteen (15)
days after its receipt thereof.

     25.4    Prevailing Market Rental Rate.  For purposes of this Lease,
             -----------------------------
"Prevailing Market Rental Rate" shall mean the then prevailing per rentable
square foot market rental rate per annum for Base Rent for the Premises based on
comparable space and size in the Building and in comparable buildings in the
north suburban Chicago metropolitan market area, for fully creditworthy tenants
for a comparable term commencing on or about the first day of the Renewal Term.

26.  TRUCK DOCKS. Landlord hereby grants to Tenant the exclusive right to use
     -----------
during the Term the four (4) exterior docks identified in Exhibit I, each of
                                                          ---------
which shall be equipped with 30,000 pound levelators.  Landlord shall pay for
the initial installation of the levelators.

27.  TENANT IMPROVEMENTS. Subject to the terms of this Section 27, Tenant shall
     -------------------                               ----------
be permitted to amortize the cost of the Tenant Improvements (as defined in the
Work Letter) which exceed the allowance of $615,344.00 as more fully set forth
in Section 1 of the Work Letter.  The cost of the Tenant Improvements which
   ---------
Tenant may amortize shall in no event exceed One Hundred Thousand and 00/100
Dollars ($100,000.00), and shall be amortized over the Term of the Lease
(excluding the Renewal Term) at the rate of ten and three-quarters percent
(10.75%) per annum.  Upon the Landlord's determination of the aggregate costs of
the Tenant Improvements, Landlord shall prepare, at Landlord's election, an
amendment to this Lease or side letter agreement, evidencing the foregoing and
Tenant shall execute and return the amendment or side letter agreement within
fifteen (15) days after its receipt thereof.  If Tenant does not exercise its
option hereunder within a reasonable period of time after the aggregate costs of
the Tenant Improvements is determined, the total cost of the Tenant Improvements
that exceed $615,344.00 shall be paid to Landlord in accordance with Section 1
                                                                     ---------
of the Work Letter.

                           [Signature Page to Follow]

                                      26.

<PAGE>

  IN WITNESS WHEREOF, Landlord and Tenant have caused this instrument to be duly
executed as of the date and year first set forth above.

                                   TENANT:

                                   OMNICELL TECHNOLOGIES, INC., a California
                                   corporation

                                   By: /s/ Earl E. Fry
                                      ------------------------------------------
                                   Its: Vice President & Chief Financial Officer
                                       -----------------------------------------

                                   LANDLORD:

                                   AMLI COMMERCIAL PROPERTIES LIMITED
                                   PARTNERSHIP, a Delaware limited partnership

                                   By:       AMLI COMMERCIAL PROPERTIES TRUST, a
                                             Maryland real estate investment
                                             trust, its general partner

                                             By: /s/ Michael Murphy
                                                --------------------------------
                                             Its:___________________________

                                      27.

<PAGE>

                                   Exhibit A

                               LEGAL DESCRIPTION

                                     A-1.

<PAGE>

                                   Exhibit B

                                  WORK LETTER

     All of the terms and conditions of the Lease are incorporated herein by
reference and, except as may be expressly set forth to the contrary in this Work
Letter or the Lease, shall apply as fully to this Work Letter as to the Lease.
The capitalized terms used but not defined in this Work Letter shall have the
meanings ascribed to them in the Lease.

1.   Construction of Tenant Improvements.  Landlord shall, at its sole cost up
     -----------------------------------
to a total cost of $615,344.00, provide the construction material, hardware and
equipment and the labor to construct the Tenant Improvements (as hereinafter
defined).  Tenant shall pay that part of the total cost of the Tenant
Improvements that exceed $615,344.00 ($16.00 per square foot of the Building).
If the total cost of the Tenant Improvements exceed $615,344.00 based on the
Plans (as defined in Paragraph 2 below) approved by Tenant and Landlord pursuant
to Paragraph 2 below, subject to the terms of Section 27 of the Lease, Tenant
                                              ----------
shall pay to Landlord such costs in excess of $615,344.00 in one lump sum
payment within thirty (30) days after receiving an invoice from Landlord,
showing that such excess costs have been paid, together with reasonable
supporting documentation of such costs.  If the total cost of the Tenant
Improvements is less than $615,344.00, Tenant shall receive a credit against
monthly Base Rent which credit shall commence on the Commencement Date and shall
be utilized towards the first installments of monthly Base Rent due under the
Lease; provided, however, that for any one calendar month during the Term,
Tenant may not receive a credit against monthly Base Rent of more than one-half
(1/2) of the monthly Base Rent due and owing for such month.  "Tenant
Improvements" means (i) the materials, hardware and equipment to be incorporated
into the Premises pursuant to the Plans (as defined below and as the same may be
modified pursuant to Section 3 of this Work Letter), and the labor to construct
                     ---------
and install such items, and (ii) the other building standard items described in
the Plans, as the same may be modified pursuant to Section 3 of this Work
                                                   ---------
Letter.  Landlord shall proceed diligently to cause the Tenant Improvements to
be substantially completed substantially in accordance with the Plans and the
terms and conditions of the Lease.  If Tenant elects to engage an interior
designer for the Premises (the "Interior Designer"), Tenant shall have the right
to do so, subject to Landlord's reasonable approval, and Tenant shall contract
directly with the Interior Designer for the provision of services.  All other
architects, engineers, contractors, subcontractors, suppliers, manufacturers or
materialmen performing services or supplying materials in connection with the
design and/or construction of the Tenant Improvements (the "Contractors") shall
be selected by Landlord, and shall enter into contracts directly with Landlord
for the provision of services and materials.  Landlord will make available to
Tenant for its review, at Landlord's office, the books and records relating to
the total cost of the Tenant Improvements.

2.   The Plans.  Landlord and Tenant have approved the preliminary description
     ---------
of the Tenant Improvements attached to this Work Letter as Schedule 1 and made a
                                                           ----------
part hereof.  Landlord will cause to be prepared at Landlord's cost, and
Landlord and Tenant shall act in good faith and cooperate with each other to
finalize and approve as soon as reasonably possible, the plans, drawings and
specifications for the Tenant Improvements based on the description in Schedule
                                                                       --------
1.  If Landlord and Tenant have not approved the final plans, drawings and
-
specifications for the Tenant Improvements within thirty (30) days after the
execution and delivery of the Lease by Landlord and Tenant, at the request of
either party, any disagreements regarding such final plans, drawings and
specifications shall be submitted to and resolved by arbitration in accordance
with the rules of the American Arbitration Association.  Any such arbitration
proceedings shall be conducted in Chicago, Illinois and the cost of such
arbitration proceedings shall be split evenly between Landlord and Tenant,
provided that each party shall be solely responsible for its own costs and
expenses incurred in connection with any arbitration proceedings.  The final
plans, drawings and specifications for the Tenant Improvements approved by
Landlord and Tenant prior to the commencement of construction are collectively
referred to as the "Plans".

                                     B-1.

<PAGE>

3.   Changes to the Plans.
     --------------------

     3.1  Tenant Changes to the Plans.  Tenant may propose one or more changes
          ---------------------------
to the Plans to Landlord at any time before the Substantial Completion Date (as
hereinafter defined), and, as promptly as reasonably practicable after the
receipt and approval thereof by Landlord (which approval may be withheld in
Landlord's reasonable discretion), Landlord shall provide Tenant with a
reasonable written estimate of the delay (if any) in the Substantial Completion
Date (which delay shall be a Tenant Delay [as defined below]) and the additional
cost (if any) to complete the Tenant Improvements which will result from such
change (whether hard costs or soft costs), which costs shall include, without
limitation: (i) the actual cost of all materials, supplies, equipment and labor
used or supplied in making the proposed change, including general conditions and
any contractor's fees; (ii) any architect and engineer fees; (iii) a developer's
fee payable to Landlord equal to ten percent (10%) of such additional costs; and
(iv) any other reasonable additional costs and expenses of owning and operating
the Premises during the extended construction period (if any) resulting from
such change(s).  If Tenant falls to approve the estimate within five (5)
business days after delivery of same, Tenant shall be deemed to have abandoned
its request for such change, and the Tenant Improvements shall be constructed
substantially in accordance with the then existing Plans.  If Tenant approves
the estimate within said 5-day period by signing and returning a copy of
Landlord's estimate, Landlord shall diligently cause the Tenant Improvements to
be constructed substantially in accordance with the Plans as so revised.  If and
to the extent there are actual increased costs due to Tenant's changes in the
Plans, Tenant shall pay such amount to Landlord within ten (10) business days
after Tenant's receipt of an invoice for such amount showing Landlord's payment
of such amount, together with reasonable supporting documentation thereof unless
the increased costs are covered by the $615,344.00 allowance.  Unless requested
in writing by Tenant to the contrary, Landlord shall continue with construction
of the Tenant Improvements according to the then existing Plans during the
pendency of any proposed change in the Plans until such change is approved by
Landlord and Tenant as provided above.  Any delay resulting from a halt in
construction requested in writing by Tenant shall constitute a Tenant Delay.

     If Tenant approves Landlord's estimate of the time and cost of a proposed
change to the Plans: (a) Tenant shall be liable for the actual cost of such
change, whether or not such actual cost exceeds Landlord's estimate, and (b)
Landlord shall not be liable for any delay in the Substantial Completion Date
resulting from the requested change, whether or not the delay exceeds Landlord's
estimate, and any such delay shall be a Tenant Delay.  Upon Tenant's request,
Landlord shall provide Tenant with reasonable evidence of the actual cost of
such change and the basis for any delay in the Substantial Completion Date
resulting from such change.

     If Tenant requests a change to the Plans pursuant to this Section 3.1, and
                                                               -----------
Tenant does not ultimately approve the resulting revised Plans or estimate,
Tenant shall promptly reimburse Landlord, as Additional Rent, for any reasonable
costs and expenses resulting from such requested changes incurred by Landlord.

     3.2  Landlord Changes to the Plans.  Landlord may make changes to the Plans
          -----------------------------
without Tenant's consent, provided that such changes (i) are necessary to
address field conditions, (ii) will not create any additional monetary
obligation for Tenant under the Lease, (iii) are in material conformity with the
Plans (as they may have been previously revised by permissible Tenant and/or
Landlord changes thereto), and (iv) will not result in the use of materials or
equipment which are of a materially lesser quality or materially different
appearance than those specified in the Plans.

4.   Punchlist Items.  Before Tenant takes occupancy of the Premises, but no
     ---------------
later than five (5) business days after the Substantial Completion Date,
Landlord, Landlord's architect, Tenant and at Tenant's election, Tenant's
consulting architect or other construction consultants shall conduct an
inspection of the Premises, and work in good faith to jointly prepare a
punchlist for the Tenant Improvements.  Subject to Landlord's obligations for
latent defects under Section 8 of the Lease, any items not on such punchlist
                     ---------
shall be deemed accepted by Tenant.  Landlord shall complete all punchlist items
as soon as reasonably practicable after such punchlist items are finally
determined, but in no event later than thirty (30) days following the
Commencement Date, subject to long lead times for materials.

                                     B-2.

<PAGE>

5.   Representatives of Landlord and Tenant.  Wherever this Work Letter requires
     --------------------------------------
any notice to be given to or by a party, or any determination or action to be
made or taken by a party, Landlord's Representative or Tenant's Representative,
as the case may be, shall act for and on behalf of such party, and the other
party shall be entitled to rely thereon.  Either party may designate one or more
additional or substitute representatives for all or a specified portion of the
provisions of this Work Letter, subject to notice to the other party of the
identity of such additional or substitute representative(s).

6.   Delay In the Commencement Date.
     ------------------------------

     6.1  The Substantial Completion Date.  If the Tenant Improvements have not
          -------------------------------
been substantially completed on or before the date set forth in Section 1.8 of
                                                                -----------
the Lease, then the Commencement Date shall be the Substantial Completion Date.
The "Substantial Completion Date" shall mean the earliest to occur of: (i)
the date on which both of the following have been satisfied: Landlord receives
the City's approval authorizing occupancy of the Premises by Tenant, which
approval may take the form of a conditional certificate of occupancy so long as
Tenant may occupy the Premises and Tenant has received a "Delivery of Possession
Letter from Landlord, or (ii) the date on which both of the following have been
satisfied: Landlord's architect issues a certificate to Landlord and Tenant
stating that the Tenant Improvements have been substantially completed
substantially in accordance with the Plans and Tenant has received a "Delivery
of Possession Letter" from Landlord, or (iii) if the substantial completion of
the Tenant Improvements has been delayed as a result of one or more Tenant
Delays (as defined below), the date on which Landlord would have substantially
completed the Tenant Improvements but for such Tenant Delays, as so certified by
the Landlord's architect; provided, however, that in no event shall the
Substantial Completion Date be earlier than the date set forth in Section 1.8 of
                                                                  -----------
the Lease.

     6.2  Tenant Delays.  "Tenant Delay" shall mean any interruption or delay at
          -------------
any time in the progress of the Tenant Improvements to the extent caused by: (i)
Tenant changes to the Plans, including, in addition to delays resulting from the
actual execution of such changes to the Plans, any delay occurring because the
change to the Plans requested by Tenant expressly requires the design or
construction of the Premises to be halted or delayed pending resolution of any
request by Tenant for a change to the Plans, whether or not the requested change
is ultimately approved by Landlord and/or Tenant; (ii) the performance or non-
performance of any work at the Premises by Tenant or any person, firm or
corporation employed by Tenant; or (iii) any other act or omission of Tenant
(for example, but not by way of limitation, failure to timely respond to
requests for information or approval of construction related matters submitted
by Landlord [and failure to act in good faith and to cooperate with Landlord in
finalizing and approving the Plans pursuant to Section 2 of this Work Letter]).
                                               ---------

     6.3  Force Majeure Delays.  "Force Majeure Delay" shall mean any
          --------------------
interruption or delay at any time in the progress of the Tenant Improvements
which is not a Tenant Delay and is the result of any Events of Force Majeure.

     6.4  Notice of Tenant Delays and Force Majeure Delays.  Landlord agrees
          ------------------------------------------------
that it shall exercise reasonable efforts to provide Tenant with written notice
of any Tenant Delay or Force Majeure Delay (and the expected length of the
applicable delay) as soon as reasonably practicable following the date Landlord
has been notified of any such delay; provided, however, that Landlord's failure
to furnish such notice shall in no event be deemed to a waiver by Landlord of
the Tenant Delay or Force Majeure Delay or otherwise affect the operation of
this Section 6.
     ---------

7.   Governmental Approvals.  Landlord shall use reasonable and diligent efforts
     ----------------------
to obtain all governmental licenses, permits and approvals necessary for the
construction of the Tenant Improvements.  If Landlord is unable to obtain any
permit, license or approval from any governmental authority necessary for the
construction of the Tenant Improvements and after notice thereof to Tenant,
Tenant, within thirty (30) days after said notice, fails or is unable to take
any action to cause such permit, license or approval to be issued, Landlord may
elect to terminate the Lease upon written notice to Tenant delivered within
thirty (30) days after agreement upon the final Plans, upon which termination
Landlord shall return to Tenant any Security Deposit and Base Rent in Landlord's
possession, and thereafter Landlord shall have no further liability to Tenant
hereunder or under the Lease.

                                     B-3.

<PAGE>

8.   Access by Tenant Prior to Commencement Date.  Landlord will permit Tenant
     -------------------------------------------
and Tenant's agents, suppliers, contractors and workmen to enter the Premises
prior to the completion of the Tenant Improvements to enable Tenant to do such
other things as maybe required by Tenant to make the Premises ready for Tenant's
occupancy, provided that Tenant shall fully perform and comply with each of the
following covenants, conditions and requirements:

          (a) Tenant and Tenant's agents, contractors, workmen, mechanics,
     suppliers and invitees, shall work in harmony and not interfere with
     Landlord and Landlord's agents in performing the Tenant Improvements or
     work for other tenants and occupants of the Building, and if at any time
     such entry shall in the reasonable judgment of Landlord cause or threaten
     to cause disharmony or interference, Landlord shall have the right to
     withdraw such permission upon twelve (12) hours written notice.

          (b) Tenant agrees that any such entry into the Premises shall be
     deemed to be under all of the terms, covenants, conditions, and provisions
     of the Lease except the covenant to pay Rent, and further agrees that in
     connection therewith Landlord shall not be liable in anyway for any injury,
     loss or damage which may occur to any of Tenant's work or installations
     made in the Premises or to property placed therein prior to the
     Commencement Date, the same being at Tenant's sole risk, except to the
     extent that any such injury, loss or damage is caused by the gross
     negligence or willful misconduct of Landlord or any of its agents,
     employees, contractors or representatives.  In addition, Tenant shall
     require all entities performing work on behalf of Tenant to provide
     protection for existing improvements to an extent that is reasonably
     satisfactory to Landlord and shall allow Landlord access to the Premises,
     for inspection purposes, at all times during the period when Tenant is
     undertaking construction activities therein.  In the event any entity
     performing work on behalf of Tenant causes any damage to the Tenant
     Improvements or the property of Landlord or others, Tenant shall cause such
     damage to be repaired at Tenant's or such entity's expense, and if Tenant
     fails to cause the commencement of the repair of such damage promptly upon
     Landlord's demand therefor, Landlord may in addition to any other rights or
     remedies available to Landlord under the Lease or at law or equity cause
     such damage to be repaired, in which event Tenant shall, within ten (10)
     business days of receiving Landlord's invoice, together with reasonable
     supporting documentation of such costs, pay to Landlord the cost of such
     repairs as Additional Rent.

          (c) All contractors and subcontractors shall use only those entrances
     designated by Landlord for ingress and egress of personnel, and the
     delivery and removal of equipment and material through or across any common
     areas of the Building or parking areas on the Property shall only be
     permitted with the written approval of Landlord and during hours reasonably
     determined by Landlord.  Landlord shall have the right to order Tenant or
     any contractor or subcontractor who violates the above requirements to
     cease work and remove it, its equipment, and its employees from the
     Building and the Property.

          (d) During the performance of Tenant's work and Tenant's fixturing,
     Landlord may provide trash removal service from a location reasonably
     designated by Landlord.  Tenant shall be responsible for breaking down
     boxes and placing trash in Landlord's containers at such designated
     location.  Tenant shall accumulate its trash In containers supplied by
     Tenant and Tenant shall not permit trash to accumulate within the Premises
     or in the corridors or public areas adjacent to the Premises.  Tenant shall
     cause each entity employed by it to perform work on the Premises to abide
     by the provisions of this Work Letter as to the storage of trash and shall
     require each such entity to make reasonable efforts to perform its work in
     a way that dust and dirt is contained entirely within the Premises and not
     within any other portion of the Building, and shall cause Tenant's
     contractors to leave the Premises broom clean at the end of each day.
     Should Landlord reasonably deem it necessary to remove Tenant's trash
     because of accumulation, an additional charge to Tenant will be on a time
     and material basis.

          (e) Tenant agrees that all services and work performed on the Premises
     by, on behalf of, or for the account of Tenant, including installation of
     materials and personal property

                                     B-4.

<PAGE>

     delivered to the Premises shall be done in a first-class workmanlike manner
     using only good grades of material, shall be performed in accordance with
     Laws, and, to the extent the services and work are performed on the
     Premises prior to the Commencement Date, such services and work shall be
     performed only by persons covered by a collective bargaining agreement with
     the appropriate trade union.

          (f) Tenant agrees to protect, indemnify, defend and hold harmless
     Landlord and its partners, and their respective officers, directors,
     shareholder, agents and employees from and against any and all losses,
     damages, liabilities, claims, liens, costs and expenses, including
     reasonable attorneys' fees, of whatever nature, including those to the
     person and property of Tenant, its employees, agents, invitees, licensees
     and others arising out of or in connection with the activities of Tenant or
     Tenant's contractors in or about the Premises or the Property undertaken
     pursuant to any entry under this Section 8.  and the cost of any repairs to
                                      ---------
     the Premises or the Property necessitated by such activities of Tenant or
     Tenant's contractors.

          (g) Tenant shall secure, pay for, and maintain during the continuance
     of its work within the Premises, policies of insurance with such coverages
     and such amounts as Landlord may reasonably require, which policies shall
     be endorsed to include Landlord and its contractors and their respective
     employees and agents and any Mortgagee as additional insured parties, and
     which shall provide thirty (30) days prior written notice of any alteration
     or termination of coverage.  Tenant shall not permit Tenant's contractors
     to commence any work until all required insurance has been obtained by
     Tenant and certificates evidencing such coverage have been delivered to and
     approved by Landlord in writing.

9.   Termination of Work Letter; Survival of Terms.  Landlord and Tenant
     ---------------------------------------------
acknowledge and agree that the provisions of this Work Letter are intended and
designed to govern certain rights and obligations of the parties relating to the
construction of the Tenant Improvements and other matters prior to the
Commencement Date.  Accordingly, except as hereinafter set forth in this Section
                                                                         -------
9, from and after the Commencement Date, the terms and provisions of this Work
-
Letter shall become null and void and of no further force or effect.
Notwithstanding anything to the contrary in this Section 9, however, the
                                                 ---------
following provisions shall not terminate and shall continue in full force and
effect after the Commencement Date, and shall survive the Commencement Date:
Sections 1 and 4 (both of which * shall terminate at such time as all punchlist
----------------
items have been completed and all claims in connection therewith have been
satisfied In full); Sections 8(b), 8(e), 8(f), 9 and 10 (which shall remain in
                    -----------------------------------
effect for the duration of the Term); and Section 11 (which shall terminate at
                                          ----------
such time as the parties have executed the Confirmatory Memorandum).

10.  Application of Work Letter.  This Work Letter shall not be applicable to
     --------------------------
any space added to the Premises or in the event of a renewal or extension of the
Term of the Lease or the exercise of any expansion option granted to Tenant
pursuant to the Lease.

11.  Confirmatory Memorandum.  At the request of either party, at such time
     -----------------------
as the Substantial Completion Date has been finally determined, the parties
shall jointly execute a written memorandum in the form attached to this Work
Letter as Schedule 2, and such memorandum shall be attached to and become a part
          ----------
of the Lease.

                                     B-5.

<PAGE>

                                  SCHEDULE 1

                      DESCRIPTION OF TENANT IMPROVEMENTS
                      ----------------------------------

Project No: 9718-9 prepared by Gordon, Wigodner, Chin & Associates, Ltd.

Preliminary Space Plan, Sheet No. SP-1 dated 3-8-99, 3-25-99, 3-29-99 and
4-8-99.

                                     B-6.

<PAGE>

                                  SCHEDULE 2

                        Form of Confirmatory Memorandum
                        -------------------------------

  ____________________ ("Landlord") and __________________ ("Tenant") hereby
execute and deliver this Confirmatory Memorandum pursuant to Section 11 of the
Work Letter attached as Exhibit B to that certain Lease between Landlord and
Tenant dated ______, 199__.

1.   This Confirmatory Memorandum is for the convenience and reference of the
parties.  The provisions of the Lease and the Work Letter shall be valid and
given their full force and effect with respect to the terms contained in this
Confirmatory Memorandum, notwithstanding the failure or refusal of either party
to execute this document.

2.   Landlord and Tenant further agree and acknowledge as follows:

     (a) the Substantial Completion Date occurred on _____________, 199__ and

     (b) the Commencement Date occurred on ____________, 199__

     Executed and delivered as of ____________, 199__

                              TENANT:

                              _________________________________

                              By:  ____________________________

                              Its: ____________________________

                              LANDLORD:

                              _________________________________

                              By:______________________________

                              Its:_____________________________

                                     B-7.

<PAGE>

                                   Exhibit C

                         LEGAL DESCRIPTION OF THE LAND

PARCEL 11:  LOT 281 IN AMHURST INDUSTRIAL CENTER RESUBDIVISION, BEING A
RESUBDIVISION OF LOTS 79 THROUGH 94, BOTH INCLUSIVE, IN AMHURST LAKE BUSINESS
PARK PHASE ONE, BEING A SUBDIVISION OF PARTS OF THE SOUTHWEST 1/4 OF SECTION 31,
TOWNSHIP 45 NORTH, RANGE 12, EAST OF THE THIRD PRINCIPAL MERIDIAN, THE SOUTHEAST
1/4 OF SECTION 36, TOWNSHIP 45 NORTH, RANGE 11, EAST OF THE THIRD PRINCIPAL
MERIDIAN, THE NORTHEAST 1/4 OF SECTION 1, TOWNSHIP 44 NORTH, RANGE 11, EAST OF
THE THIRD PRINCIPAL MERIDIAN, AND THE NORTHWEST 1/4 OF SECTION 6, TOWNSHIP 44
NORTH, RANGE 12, EAST OF THE THIRD PRINCIPAL MERIDIAN, RECORDED SEPTEMBER 7,
1989 AS DOCUMENT 2828136, AND THE CERTIFICATE OF CORRECTION THEREOF RECORDED
OCTOBER 3, 1989 AS DOCUMENT 2837031; AND LOTS 224 THROUGH 252, BOTH INCLUSIVE,
IN AMHURST LAKE BUSINESS PARK PHASE FIVE, BEING A SUBDIVISION OF PART OF THE
NORTH 1/2 OF SECTION 1, TOWNSHIP 44 NORTH, RANGE 11, EAST OF THE THIRD PRINCIPAL
MERIDIAN, AND PART OF THE SOUTH 1/2 OF SECTION 36, TOWNSHIP 45 NORTH, RANGE 11,
EAST OF THE THIRD PRINCIPAL MERIDIAN, RECORDED APRIL 2, 1996 AS DOCUMENT
3805401; ACCORDING TO THE PLAT OF SAID RESUBDIVISION RECORDED MARCH 18, 1998 AS
DOCUMENT 4103113, IN LAKE COUNTY, ILLINOIS.

                                     C-1.

<PAGE>

                                   Exhibit D

                             LANDLORD'S INSURANCE

                                     D-1.

<PAGE>

                                   Exhibit E

                                 TRAILER AREA

                                     E-1.

<PAGE>

                                   Exhibit F

                        FORM OF TENANT ESTOPPEL LETTER

Lease Date:     ____________, 199__
----------

Landlord:
--------        ________________________________

Tenant:
------          ________________________________

Premises:       Unit No. ________,______________
--------

Rentable Area:  ____________________ square feet.
-------------

The undersigned, being the Tenant Under the above-described Lease hereby
certifies to _____________ _________________ ("Lender" or "Purchaser") as
follows:

1.   The Lease requires monthly base rent installments of $_______ each,
commencing on _____, 19___.

2.   No advance rental or other payment has been made in connection with the
Lease.

3.   A security deposit in the amount of $ _____ is being held by Landlord,
which amount is not subject to any setoff or reduction or to any increase for
interest or other credit due to Tenant.  The Lease is or ___________ is not
(check applicable provision) guaranteed by a third party.  If the Lease is
guaranteed by a third party, the name of the guarantor is _________________

4.   The Lease is a valid lease and is in full force and effect.  Attached
hereto is a true and complete copy of the Lease and all amendments thereto and
other agreements relating to the Lease and the rent payable thereunder, which
documents represent the entire agreement between the parties.

5.   There is no existing default by Landlord, or to Tenant's knowledge, by
Tenant under the Lease, and no event has occurred which, with the giving of
notice or the passage of time, or both, would constitute an event of default by
Landlord, or to Tenant's knowledge, by Tenant, under the Lease.

6.   The Lease provides for a primary term of _______ (__) months, commencing on
________, 19__ and ending on ________, 19__.  The Lease contains an option for
_______ (__) additional terms of _______ (__) years each upon the terms and
conditions as set forth in the Lease.

7.   There are no actions, voluntary or involuntary, pending against Tenant
under the bankruptcy laws of the United States or any state thereof.

8.   Tenant is entitled to no rent concessions under the Lease other than the
following:

9.   All construction work to be completed to date by Landlord in the Premises
has been completed.

10.  Tenant has obtained or will obtain all necessary licenses and permits to
carry on its business at the Premises prior to opening for business.

11.  Tenant has received no notice of any claim, litigation or proceeding,
pending or threatened, against or relating to Tenant that would adversely affect
Tenant's ability to fulfill its obligations under the Lease or with respect to
the Premises.  Tenant has received no notice of, and has no knowledge of, any
violations of any federal, state, county or municipal statutes, laws, codes,
ordinances, rules, regulations,

                                     F-1.

<PAGE>

orders, decrees or directives relating to the use or condition of the Premises
or Tenants operation thereon. Tenant has received no notice from any
governmental body or agency or from any person or entity with respect to any
actual or threatened taking of the Property or any portion thereof for any
public or quasi-public purpose by the exercise of condemnation or eminent
domain.

     This certification is made knowing that [Lender] [Purchaser] is relying
upon the representations herein made.

                                        TENANT:

                                        _______________________________________

                                      F-2

<PAGE>

*****

                                   Exhibit G

                       FORM OF LANDLORD ESTOPPEL LETTER

Lease Date:  ____________, 199__
----------

Landlord:    ______________________________
--------

Tenant:      ______________________________
------

Premises: Unit No. ________,_______________
--------

Rentable Area:  _______________ square feet.
-------------

The undersigned, being the Landlord Under the above-described Lease hereby
certifies to __________________________ ("Lender" or "Successor") as follows:

1.   The Lease requires monthly base rent installments of $_______ each,
commencing on _____, 19___.

2.   A security deposit in the amount of $ _____ is being held by Landlord,
which amount is not subject to any setoff or reduction or to any increase for
interest or other credit due to Tenant.

3.   The Lease is a valid lease and is in full force and effect.  Attached
hereto is a true and complete copy of the Lease and all amendments thereto and
other agreements relating to the Lease and the rent payable thereunder, which
documents represent the entire agreement between the parties.

4.   There is no existing default by Tenant, or to Landlord's knowledge, by
Landlord under the Lease, and no event has occurred which, with the giving of
notice or the passage of time, or both, would constitute an event of default by
Tenant, or to Landlord's knowledge, by Landlord, under the Lease.

5.   The Lease provides for a primary term of _______ (__) months, commencing on
________, 19__ and ending on ________, 19__.  The Lease contains an option for
_______ (__) additional terms of _______ (__) years each upon the terms and
conditions as set forth in the Lease.

6.   There are no actions, voluntary or involuntary, pending against Tenant
under the bankruptcy laws of the United States or any state thereof.

7.   Landlord has received no notice of any claim, litigation or proceeding,
pending or threatened, against or relating to Landlord that would adversely
affect Landlord's ability to fulfill its obligations under the Lease or with
respect to the Premises. Landlord has received no notice of, and has no
knowledge of, any violations of any federal, state, county or municipal
statutes, laws, codes, ordinances, rules, regulations, orders, decrees or
directives relating to the use or condition of the Premises. Landlord has
received no notice from any governmental body or agency or from any person or
entity with respect to any actual or threatened taking of the Property or any
portion thereof for any public or quasi-public purpose by the exercise of
condemnation or eminent domain.

  This certification is made knowing that [Lender] [Successor] is relying upon
the representations herein made.

                                        LANDLORD:

                                        _______________________________________

                                     G-1.

<PAGE>

                                   Exhibit H

        FORM OF SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT

THIS INSTRUMENT WAS PREPARED BY AND                  This space is reserved for
AFTER RECORDING RETURN TO:                           Recorder's use only.

Rudnick & Wolfe
203 North LaSalle Street
Suite 1800
Chicago, Illinois 60601
Attn: C. Olivia Martinez, Esq.
                                                ________________________________

            SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT

     THIS SUBORDINATION, NON-DISTURBANCE ATTORNMENT AGREEMENT (the "Agreement")
is made as of the _____ day of ____________, 1998, between Bank One, Illinois,
NA ("Bank One"), as agent (Bank One, in such capacity, being the "Agent") for
the Banks (as such term is defined in the Credit Agreement), which has an office
of 200 South Wacker Drive, Chicago, Illinois 60603, and _____________________
("Tenant"), which has an office at _______________________________.

                                   RECITALS

     A.   Tenant has entered into that certain lease agreement dated April 1,
1997 with AMLI ("Original Landlord"), as Lessor, which lease agreement covers
certain premises (the "Premises") in that certain real property (the "Property")
commonly known as Windham Industrial Center I and more particularly described in
Exhibit A attached hereto and made a part hereof (herein, said lease agreement,
together with any and all amendments, modifications, extensions, renewals,
consolidations and replacement thereof now existing or hereafter entered into,
are collectively referred to herein as the "Lease");

     B.   The Lessor's interest under the Lease has been assigned by the
Original Landlord to AMLI Commercial Properties Limited Partnership
("Landlord");

     C.   Pursuant to that certain Credit Agreement dated as of _______, 1998
(the "Credit Agreement") among Landlord, the Banks (as such term is defined in
the Credit Agreement) and Bank One as Agent for the Banks, the Banks have agreed
to make loans (the "Loans") to Landlord in an outstanding principal amount up to
$50,000,000, to be secured by the lien of a mortgage from Landlord to the Agent
(herein, together with all amendments, modifications, extension, renewals,
consolidations and replacements thereof now existing or hereafter entered into,
collectively referred to as the "Mortgage") on the Property; and

     D.   Tenant has agreed to subordinate the Lease to the lien of the Mortgage
and the Agent has agreed to grant non-disturbance to Tenant under the Lease on
the terms and conditions hereinafter set forth.

     NOW, THEREFORE, in consideration of the Premises and of the sum of One
Dollar ($1.00) by each party in hand paid to the other, the receipt and
sufficiency of which are hereby acknowledged, it is hereby agreed as follows:

                                     H-1.

<PAGE>

     1.   Subordination. The Lease (including all of the terms, covenants and
          -------------
provisions thereof) is and shall be subject and subordinate in all respects to
the Mortgage, to the full extent of any and all amounts from time to time
secured thereby and interest thereon, all with the same force and effect as if
the Mortgage had been executed, delivered and recorded prior to the execution
and delivery of the Lease.

     2.   Attornment. Tenant, for itself and its successors and assigns, agrees
          ----------
that it will attorn to and recognize any purchaser of the Property at a
foreclosure sale under the Mortgage or any transferee who acquires the Property
by deed in lieu of foreclosure or otherwise, and the successors and assigns of
such purchaser or transferee, as its landlord for the unexpired balance (and any
extensions or renewals, if previously, at that time or thereafter exercised by
Tenant) of the term of the Lease upon the same terms and conditions set forth in
the Lease.

     3.   Non-Disturbance. The Agent, for itself and its successors and assigns,
          ---------------
for any purchaser at a foreclosure sale under the Mortgage, for any transferee
who acquires the Property by deed in lieu of foreclosure or otherwise, and for
the successors and assign of such purchaser and transferee (herein, the Agent
and each such other party is called a "New Landlord"), hereby covenants and
agrees with Tenant that if the Agent or other New Landlord shall commence any
proceedings to foreclose the Mortgage for any reason whatsoever or shall succeed
to the interest of Landlord by foreclosure, deed in lieu thereof or otherwise,
provided Tenant is not then in default (after expiration of any applicable grace
period) under the Lease, and so long as Tenant is not in default (after
expiration of any applicable grace period) under the Lease, that: (a) Tenant
shall not be named as a party defendant in any foreclosure action unless Tenant
is deemed to be a necessary party; (b) subject to the next succeeding
grammatical paragraph, the Lease, in accordance with its terms, shall remain in
full force and effect as direct indenture or lease between the Agent, or such
other New Landlord (as the case may be), and Tenant, with the same force and
effect as if originally entered into with the Agent, or such other New Landlord
(as the case may be); and (c) Tenant's possession of the Premises and Tenant's
rights and privileges under the Lease shall not be diminished, interfered with
or disturbed by such Agent or such other New Landlord by such foreclosure under
the Mortgage or by any such attempt to foreclose or to succeed to the interests
of Landlord by foreclosure, deed in lieu thereof or otherwise.

     If the Agent or any other New Landlord shall succeed to the Interest of
Landlord under the Lease, Tenant agrees as follows:

          (a)  The Agent or such other New Landlord shall not be: (i) subject to
any credits, offsets, defenses, claims or counterclaims which Tenant might have
against any prior landlord (including Landlord); (ii) bound by any rent or
additional rent which Tenant shall have paid more than one (1) month in advance
to any prior landlord (including Landlord); or (iii) bound by any covenant to
undertake or complete any improvement to the Premises or the Property.

          (b)  No New Landlord (including, without limitation, Agent) shall be
liable for: (i) any act or omission of any prior landlord (including Landlord);
(ii) return of any security deposit made by Tenant to Landlord unless such New
Landlord shall have actually received such security deposit from Landlord; or
(iii) any payment to Tenant of any sums, or the granting to Tenant of any
credit, in the nature of a contribution towards the cost of preparing,
furnishing or moving into the Premises or any portion thereof; and

          (c)  Tenant shall look solely to the Property for recovery of any
judgment or damages from the Agent or such other New Landlord, and neither the
Agent, such other New Landlord, any partner, officer, director, shareholder or
agent of them or any successor or assign of any of the foregoing shall have any
personal liability, directly or indirectly, under or in connection with the
Lease or this Agreement or any amendment or amendments to either thereof made at
any time or times, heretofore or hereafter, and Tenant hereby forever and
irrevocably waives and releases any and all such personal liability. The
limitation of liability provided in this paragraph is in addition to, and not in
limitation of, any limitation on liability applicable to the Agent or such other
New Landlord provided by law or by any other contract, agreement or instrument.

                                      2.

<PAGE>

     4.   Landlord's Default. Tenant hereby agrees to provide the Agent with
          ------------------
written notice of any casualty damage to the Premises and any default under the
Lease by the Landlord and to provide the Agent thirty (30) days to remedy such
default prior to exercising any right or remedy of Tenant under the Lease.
Notwithstanding the foregoing, Tenant agrees that the Agent shall have no
obligation to remedy any such default.

     5.   Estoppel Certificate. Tenant agrees at any time and from time to time
          --------------------
to execute, deliver and acknowledge to Landlord, to the Agent or to any third
party designated by Landlord or by the Agent within ten (10) days following
Landlord's or the Agent's written request therefor, (a) a statement in writing
certifying that the Lease is in full force and effect, that Landlord is not in
default thereunder (or specifying any defaults by Landlord which Tenant
alleges), that rent has not been prepaid more than one (1) month in advance, and
specifying any further information about the Lease or the Premises which
Landlord or the Agent or said third party may reasonably request; (b) a
statement in writing, that Tenant will recognize the Agent as assignee of the
Landlord's rights under the Lease; and (c) a statement in writing acknowledging
or denying receipt of notice of any conditional or security assignment of the
Lease to any third party. Tenant understands that the Agent and/or prospective
purchasers, other agents or lessors of the Premises or any part thereof will
rely on such certificates. Tenant's obligation to deliver such certificates
within ten (10) days as described above is a material obligation of Tenant
hereunder and under the Lease.

     6.   Further Subordination. Tenant, for itself and its successors and
          ---------------------
assigns, agrees that, without the prior written consent of the Agent, Tenant
will not (a) enter into any subordination agreement with any person other than
the Agent; or (b) agree to attorn to or recognize any purchaser of the Property
at any foreclosure sale under any lien other than that of the Mortgage or any
transferee who acquires the Property by deed in lieu of foreclosure or otherwise
under any lien other than that of the Mortgage (provided, however, that this
provision shall not be deemed to constitute the Agent's consent to the placing
of any lien other than the Mortgage on the Property).

     7.   Insurance Proceeds and Condemnation Awards. Tenant hereby agrees that
          ------------------------------------------
any interest of Tenant in any insurance, condemnation or eminent domain proceeds
or awards made with respect to any interest in the Premises shall be subordinate
to the interests of Agent in such proceeds or awards. Tenant will neither seek
nor accept insurance, any condemnation or eminent domain proceeds or awards made
with respect to any interest in the Premises until all amounts secured by the
Mortgage have been paid in full. However, Tenant reserves the right to make a
separate claim for trade fixtures and moving expenses if separately allocated.

     8.   Notice. Each notice, demand or other communication in connection with
          ------
this Agreement shall be in writing and shall be deemed to be given to and served
upon the addressee thereof on the earlier of (a) actual delivery to such
addressee at its address set out above, or (b) the third business day after the
deposit thereof in the United States mails, registered or certified mail, return
receipt requested, first class postage prepaid, addressed to such addressee at
its address set out above. By notice complying with this section, any party from
time to time may designate a different address in the forty-eight (48)
contiguous continental United States as its address for the purpose of the
receipt of notice hereunder.

     9.   Binding Effect. This Agreement shall be binding upon the Tenant and
          --------------
its successors and assigns and shall inure to the benefit of the Agent and the
Banks and their respective successors and assigns.

     10.  Recording. The parties hereto agree that this Agreement may be
          ---------
recorded in the public records of the county in which the Property is located.

     11.  Counterparts. This Agreement may be executed in any number of
          ------------
counterparts and by each of the undersigned on separate counterparts, and each
such counterpart shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same Agreement.

                                      3.

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed and delivered this
document as of the day and year first above written.

                                        TENANT:

                                        ________________________________

                                        By:_____________________________
                                        Name:___________________________
                                        Title:__________________________

                                        AGENT:

                                        BANK ONE, ILLINOIS, NA

                                        By:_____________________________
                                        Name:___________________________
                                        Title:__________________________

                                      4.

<PAGE>

STATE OF ILLINOIS        )
                         )    SS.
COUNTY OF COOK           )

     I, ___________________, a notary public in and for said county, in the
State aforesaid, DO HEREBY CERTIFY that________________________________________
personally known to me to be the ___________________of_____________________ and
personally known to me to be the same person whose name is subscribed to the
foregoing instrument, appeared before me this day in person and acknowledged
that as such, he/she signed and delivered said instrument pursuant to proper
authority given, as his/her free and voluntary act, and as the free and
voluntary act and deed of said entity, for the uses and purposes therein set
forth.

     GIVEN under my hand and notarial seal this ____day of ________, 1999.

                                        ________________________________________
                                                      Notary Public
                                                         [Seal]

     My Commission expires:

                                      5.

<PAGE>

STATE OF ILLINOIS        )
                         )    SS.
COUNTY OF COOK           )

     I, ___________________, a notary public in and for said county, in the
State aforesaid, DO HEREBY CERTIFY that________________________________________
personally known to me to be the _________________________ of _________________
and personally known to me to be the same person whose name is subscribed to the
foregoing instrument, appeared before me this day in person and acknowledged
that as such, he/she signed and delivered said instrument pursuant to proper
authority given, as his/her free and voluntary act, and as the free and
voluntary act and deed of said entity, for the uses and purposes therein set
forth.

     GIVEN under my hand and notarial seal this ____day of ________, 1998.

                                        ________________________________________
                                                      Notary Public
                                                         [Seal]

     My Commission expires:

                                      6.

<PAGE>

                                   Exhibit I

                                  TRUCK DOCKS

                                     I-1.

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