Document:

<PAGE>

                                                                    EXHIBIT 10.7

                                  OFFICE LEASE
                       (201 Spear Street, San Francisco)

                                    between

                      THE EQUITABLE LIFE ASSURANCE SOCIETY
                             OF THE UNITED STATES,
                             A NEW YORK CORPORATION

                                  as Landlord

                                      and

                                 911gifts.com,
                             A Delaware Corporation

                                   as Tenant

                                  Dated as of

                               September 1, 1999
                           San Francisco, California

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
CLAUSE                    CLAUSE HEADINGS                                   PAGE
------                    ---------------                                   ----
<S>      <C>                                                                <C>
1.       Definitions                                                          1
2.       Term; Conditions of Premises                                         1
3.       Rental                                                               1
4.       Additional Charges for Expenses and Real Estate Taxes                2
5.       Use                                                                  5
6.       Services                                                             5
7.       Impositions Payable by Tenant                                        6
8.       Alterations                                                          6
9.       Liens                                                                7
10.      Repairs                                                              7
11.      Destruction or Damage                                                7
12.      Insurance                                                            8
13.      Waiver of Subrogation                                                9
14.      Indemnification                                                      9
15.      Compliance with Legal Requirements                                   9
16.      Assignment and Subletting                                            9
17.      Rules; No Discrimination                                            11
18.      Entry by Landlord                                                   11
19.      Events of Default                                                   12
20.      Termination upon Default                                            12
21.      Continuation after Default                                          13
22.      Other Relief                                                        14
23.      Landlord's Right to Cure Defaults                                   14
24.      Attorney's Fees                                                     14
25.      Eminent Domain                                                      14
26.      Subordination                                                       14
27.      No Merger                                                           15
28.      Sale                                                                15
29.      Estoppel Certificate                                                15
30.      No Light, Air, or View Easement                                     15
31.      Holding Over                                                        15
32.      Security Deposit                                                    15
33.      Waiver                                                              15
34.      Notices and Consents                                                15
35.      Complete Agreement                                                  16
36.      Corporate Authority                                                 16
37.      Partnership Authority                                               16
38.      Limitation of Liability to Building                                 16
39.      Miscellaneous                                                       16
40.      Abandonment                                                         16
41.      Substitution of Premises                                            17
42.      Americans with Disabilities Act and Similar Acts                    17
43.      Exhibits                                                            17
44.      Landlord's Liability; Sale of Building                              17
45.      Name of Building                                                    18
46.      Hazardous Substance Disclosure                                      18
47.      Real Estate Brokers                                                 18
48.      Limited Recourse                                                    18
</TABLE>

Addendum to Lease

Exhibit A:    Floor Plan
Exhibit B:    Rules and Regulations
Exhibit C:    Tenant Improvement Work Letter
Exhibit D:    Commencement of Term Agreement

                                       ii

<PAGE>
                                TABLE OF CONTENTS

CLAUSE    CLAUSE HEADINGS                                                   PAGE
------    ---------------                                                   ----
1.        Definitions                                                         1
2.        Term; Conditions of Premises                                        1
3.        Rental                                                              1
4.        Additional Charges for Expenses and Real Estate Taxes               2
5.        Use                                                                 5
6.        Services                                                            5
7.        Impositions Payable by Tenant                                       6
8.        Alterations                                                         6
9.        Liens                                                               7
10.       Repairs                                                             7
11.       Destruction or Damage                                               7
12.       Insurance                                                           8
13.       Waiver of Subrogation                                               9
14.       Indemnification                                                     9
15.       Compliance with Legal Requirements                                  9
16.       Assignment and Subletting                                           9
17.       Rules; No Discrimination                                           11
18.       Entry by Landlord                                                  11
19.       Events of Default                                                  12
20.       Termination upon Default                                           12
21.       Continuation after Default                                         13
22.       Other Relief                                                       14
23.       Landlord's Right to Cure Defaults                                  14
24.       Attorney's Fees                                                    14
25.       Eminent Domain                                                     14
26.       Subordination                                                      14
27.       No Merger                                                          15
28.       Sale                                                               15
29.       Estoppel Certificate                                               15
30.       No Light, Air, or View Easement                                    15
31.       Holding Over                                                       15
32.       Security Deposit                                                   15
33.       Waiver                                                             15
34.       Notices and Consents                                               15
35.       Complete Agreement                                                 16
36.       Corporate Authority                                                16
37.       Partnership Authority                                              16
38.       Limitation of Liability to Building                                16
39.       Miscellaneous                                                      16
40.       Abandonment                                                        16
41.       Substitution of Premises                                           17
42.       Americans with Disabilities Act and Similar Acts                   17
43.       Exhibits                                                           17
44.       Landlord's Liability; Sale of Building                             17
45.       Name of Building                                                   18
46.       Hazardous Substance Disclosure                                     18
47.       Real Estate Brokers                                                18
48.       Limited Resources                                                  18

Addendum to Lease
Exhibit A:     Floor Plan
Exhibit B:     Rules and Regulations
Exhibit C:     Tenant Improvement Work Letter
Exhibit D:     Commencement of Term Agreement

                                  OFFICE LEASE
                            BASIC LEASE INFORMATION

Date:                                     September 1, 1999

Landlord:                                 THE EQUITABLE LIFE ASSURANCE SOCIETY
                                          OF THE UNITED STATES, a New York
                                          corporation

Tenant:                                   911GIFTS.COM, a Delaware corporation

Building (Paragraph 1(a)):                201 Spear Street,
                                          San Francisco, CA 94107

Premises (paragraph 1(b)):                Approximately 15,511 rentable square
                                          feet of office space comprising the
                                          entire third (3rd) floor of the
                                          Building, as more specifically
                                          outlined in EXHIBIT A attached hereto.

Term Commencement Date (Paragraph 2):     The term of the Lease shall commence
                                          upon the day that Landlord delivers
                                          the Premises to Tenant.

Term Expiration Date (Paragraph 2):       The term of the Lease shall expire
                                          upon the last day of the calendar
                                          month which includes the fifth (5th)
                                          anniversary of the Term Commencement
                                          Date.

Base Rent (Paragraph 3):                  The annual Base Rent for the initial
                                          term shall be as follow:

                              Years 1-5:  $42.25 per rentable square foot per
                                          annum for total of Six Hundred
                                          Fifty-Five Thousand Three Hundred
                                          Thirty-Nine and 75/100 ($655,339.75)
                                          per annum (or Fifty-Four Thousand Six
                                          Hundred Eleven and 65/100 Dollars
                                          ($54,611.65) per month).

Rent Commencement Date:                   Rent shall commence on that date which
                                          is thirty (30) days after the Term
                                          Commencement Date.

Base Expense Year (Paragraph 1(c)):       1999

Base Tax Year (Paragraph 1(d)):           2000

Tenant's Expense Share (Paragraph 4(a)):  6.70%

Tenant's Tax Share (Paragraph 4(a)):      6.70%

Security Deposit (Paragraphs 32 and 64):  $320,000.00

First Month's Base Rent:                  The first month's Base Rent due upon
                                          Lease execution is $54,611.65

Tenant's Address
For Notices (Paragraph 34):               911GIFTS.COM
                                          201 Spear Street, Suite 300
                                          San Francisco, CA 94107
                                          Attn: Chief Financial Officer

Landlord's Address
For Notices (Paragraph 34):               THE EQUITABLE LIFE ASSURANCE SOCIETY
                                          OF THE UNITED STATES
                                          c/o Lend Lease Real Estate
                                            Investments, Inc.
                                          One Front Street, Ste 1100
                                          San Francisco, CA 94111
                                          Attn: Asset Manager

                                      iii

<PAGE>

With a copy to:                           THE EQUITABLE LIFE ASSURANCE SOCIETY
                                          OF THE UNITED STATES
                                          c/o LaSalle Partners Management
                                            Services, Inc.
                                          201 Spear Street, Building Offices
                                          San Francisco, CA 94107
                                          Attn: Property Manager

Brokers (Paragraph 47):

         Tenant's Broker:                 CB Richard Ellis, Inc.
                                          275 Battery Street, Suite 1300
                                          San Francisco, CA 94111
                                          P 415.772.0123

         Landlord's Broker:               Jones Lang LaSalle Americas, Inc.
                                          One Front Street, 12th Floor
                                          San Francisco, CA 94111
                                          P 415.395.4900

Exhibits and Addendum:                    Addendum to Lease: Paragraphs 49 to 68
                                          Exhibit A: Floor Plan
                                          Exhibit B: Rules and Regulations
                                          Exhibit C: Tenant Improvement Work
                                          Letter
                                          Exhibit D: Commencement of Term
                                          Agreement

The provisions of the Lease identified above in parentheses are those provisions
where references to particular Basic Lease Information appear. Each such
reference shall incorporate the applicable Basic Lease Information. In the event
of any conflict between any Basic Lease Information and the Lease, the latter
shall control.

TENANT:                                   LANDLORD:

911gifts.com,                             THE EQUITABLE LIFE ASSURANCE SOCIETY
a Delaware corporation                    OF THE UNITED STATES, a New York
                                          corporation

By: /s/ [ILLEGIBLE]                       By: /s/ [ILLEGIBLE]
    ------------------                        -------------------
Its: COO                                  Its: Investment Officer
Date: 9/1/99                              Date: 9-2-99

By: /s/ [ILLEGIBLE]
    ------------------
Its: SVP BUS. DEV.
Date: 9/1/99

                                       iv

<PAGE>

                                  OFFICE LEASE

         THIS LEASE, dated September 1, 1999, for purposes of reference only,
is made and entered into by and between The Equitable Life Assurance Society of
the United States ("Landlord") and 911gifts.com ("Tenant").

                                  WITNESSETH:

         Landlord hereby leases to Tenant, and Tenant hereby leases from
Landlord the premises described in paragraph 1 (b) below for the term and
subject to the terms, covenants, agreements and conditions hereinafter set
forth, to each and all of which Landlord and Tenant hereby mutually agree.

         1.       Definitions. Unless the context otherwise specifies or
requires, the following terms shall have the meanings herein specified:

                  (a)      The term "Building" shall mean the land, building or
buildings, other improvements and other real property described in the Basic
Lease Information, as well as any property interest in the area of the streets
bounding the parcel described in the Basic Lease Information, and all other
improvements on or appurtenances to said parcel or said streets.

                  (b)      The term "Premises" shall mean the portion of the
Building located on the floor(s) specified in the Basic Lease Information which
is crosshatched on the floor plan(s) attached to this Lease as Exhibit A.

                  (c)      The term "Base Expense Year" shall mean the calendar
year specified in the Basic Lease Information as the Base Expense Year.

                  (d)      The term "Base Tax Year" shall mean the calendar year
specified in the Basic Lease Information as the Base Tax Year.

         2.       Term; Condition of Premises. The term of this Lease shall
commence and, unless sooner terminated as hereinafter provided, shall end on the
dates respectively specified in the Basic Lease Information. Unless otherwise
agreed by Landlord and Tenant in this Lease, Landlord shall deliver the Premises
to Tenant on the commencement of the term in their then existing condition with
no alterations being made by Landlord. If Landlord has undertaken in this Lease
to make any alterations to the Premises prior to commencement of the term and
the alterations are completed prior to the date set forth in the Basic Lease
Information for commencement of the term, and if Tenant desires to take
occupancy in advance of such date and Landlord consents to such prior occupancy,
Landlord shall deliver the Premises to Tenant on such advance date as shall be
mutually approved by Landlord and Tenant and, notwithstanding anything to the
contrary contained herein, the term of this Lease shall commence upon such
delivery. If Landlord, for any reason whatsoever, cannot deliver the Premises to
Tenant at the commencement of the term, this Lease shall not be void or
voidable, nor shall Landlord be liable to Tenant for any loss or damage
resulting therefrom, but in that event rental shall be waived for the period
between the commencement of the term and the time when Landlord delivers the
Premises to Tenant. No delay in delivery of the Premises shall operate to extend
the term hereof.*

                                                             *See Lease Addendum

         3.       Rental.

                  (a)      Tenant shall pay to Landlord throughout the term of
this Lease as rental for the Premises the sum specified in the Basic Lease
Information as the Base Rent. As additional rental hereunder, Tenant shall pay
to Landlord the additional charges described in paragraph 4 below.

                  (b)      Monthly rental shall be paid to Landlord on or before
the first day of the term hereof and on or before the first day of each and
every successive calendar month thereafter during the term hereof. In the event
the term of this Lease commences on a day other than the first day of a calendar
month or ends on a day other than the last day of a calendar month, the monthly
rental for the first and last fractional months of the term hereof shall be
appropriately prorated.

1

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                  (c)      All sums of money due from Tenant hereunder not
specifically characterized as rental shall constitute additional rent, and if
any such sum is not paid when due it shall nonetheless be collectible as
additional rent with the next installment of rental thereafter falling due, but
nothing contained herein shall be deemed to suspend or delay the payment of any
sum of money at the time it becomes due and payable hereunder, or to limit any
other remedy of Landlord.

                  (d)      Tenant hereby acknowledges that late payment by
Tenant to Landlord of rent and other sums due hereunder after the expiration of
any applicable grace period described in paragraph 19(a) will cause Landlord to
incur costs not contemplated by this Lease, the exact amounts of which will be
difficult to ascertain. Such costs include, but are not limited to, processing
and accounting charges, and late charges which may be imposed on Landlord by the
terms of any encumbrances covering the Building and the Premises. Accordingly,
if any installment of rent or any other sums due from Tenant shall not be
received by Landlord prior to the expiration of any applicable grace period
described in paragraph 19 (a), Tenant shall pay to Landlord a late charge equal
to five percent (5%) of such overdue amount. The parties hereby agree that such
late charge represents a fair and reasonable estimate of the costs Landlord will
incur by reason of late payment by Tenant based on the circumstances existing as
of the date of this Lease. Acceptance of such late charge by Landlord shall in
no event constitute a waiver of Tenant's default with respect to such overdue
amount, nor prevent Landlord from exercising any of the other rights and
remedies granted hereunder.

                  (e)      Any amount due from Tenant, if not paid when first
due, shall bear interest from the date first due until paid at an annual rate
equal to 4% over the annual prime rate of interest announced publicly by
Citibank, N.A. in New York, New York from time to time (but in no event in
excess of the maximum rate of interest permitted by law), provided that interest
shall not be payable on late charges incurred by Tenant nor on any amounts upon
which late charges are paid by Tenant to the extent such interest would cause
the total interest to be in excess of that legally permitted. Payment of
interest shall not excuse or cure any default hereunder by Tenant.

                  (f)      All payments due from Tenant shall be paid to
Landlord, without deduction or offset, in lawful money of the United States of
America at Landlord's address for notices hereunder, or to such other person or
at such other place as Landlord may from time to time designate by notice to
Tenant.

         4.       Additional Charges for Expenses and Real Estate Taxes

                  (a)      For purposes of this Paragraph 4, the following terms
shall have the meanings hereinafter set forth:

                           (i)      "Tenant's Tax Share" and "Tenant's Expense
Share" mean the percentage figures so specified in the Basic Lease Information.
Tenant's Tax Share and/or Tenant's Expense Share may be adjusted by Landlord as
a result of any change in the rentable area of the Premises or the total
rentable area of the Building.

                           (ii)     "Tax Year" means each twelve (12)
consecutive month period commencing January 1st of each year during the Term,
including, without limitation, any partial year during which the Lease may
commence; provided that Landlord, upon notice to Tenant, may change the Tax Year
from time to time to any other twelve (12) consecutive month period and, in the
event of any such change, Tenant's Tax Share of Real Estate Taxes shall be
equitably adjusted for the Tax Year involved in any such change.

                           (iii)    "Real Estate Taxes" means all taxes,
assessments and charges of any kind whatsoever levied upon or with respect to
the Building or any personal property of Landlord used in the operation thereof,
or Landlord's interest in the Building or such personal property. Real Estate
Taxes shall include, without limitation: all general real property taxes and
general and special assessments, charges, fees, or assessments for transit,
housing, police, fire, or other governmental services or purported benefits to
the Building or the occupants thereof, service payments in lieu of taxes,
business taxes, and any tax, fee, or excise on the act of entering into this
Lease or any other lease of space in the Building, or on the use or occupancy of
the Building or any part thereof, or on the rent payable under any lease or in
connection with the business of renting space in the Building, that are now or
hereafter levied or assessed against

2

<PAGE>

Landlord by the United States of America, the State of California or any
political subdivision thereof, public corporation, district, or any other
political or public entity, and shall also include any other tax, fee, charge or
other excise, however described, that may be levied or assessed as a substitute
for, or as an addition to, in whole or in part, any other Real Estate Taxes,
whether or not now customary or in the contemplation of the parties on the date
of this Lease. Real Estate Taxes shall not include franchise, transfer,
inheritance, or capital stock taxes or income taxes measured by the net income
of Landlord from all sources unless, due to a change in the method of taxation,
any of such taxes is levied or assessed against Landlord as a substitute for, or
as an addition to, in whole or in part, any other tax that would otherwise
constitute a Real Estate Tax. Real Estate Taxes shall also include legal fees,
costs, and disbursements incurred in connection with proceedings to contest,
determine, or reduce Real Estate Taxes. See Lease Addendum

                           (iv)     "Expense Year" means each twelve (12)
consecutive month period commencing January 1st of each year during the Term,
including, without any limitation, any partial year during which the Lease may
commence; provided that Landlord, upon notice to Tenant, may change the Expense
Year from time to time to any other twelve (12) consecutive month period and, in
the event of any such change, Tenant's Expense Share of Expenses shall be
equitably adjusted for the Expense Years involved in any such change.

                           (v)      Expenses means the total costs and expenses
paid or incurred by Landlord in connection with the ownership, management,
operation, maintenance and repair of the Building, including, without
limitation; (i) the cost of air conditioning, electricity, steam, water,
heating, mechanical, telephone, ventilating, escalator and elevator systems and
all other utilities; (ii) the cost of repairs and replacements and all labor and
material costs related thereto, and the cost of general maintenance, cleaning
and service contracts and the cost of all supplies, tools and equipment required
in connection thereof; (iii) the cost of the Building delivery and messenger
service; (iv) the cost incurred by Landlord for all insurance carried on the
Building or in connection with the use and/or occupancy thereof and the amount
of any deductible on uninsured loss; (v) wages, salaries, payroll taxes and
other labor costs and employee benefits; (vi) management fees; (vii) fees,
charges and other costs of all independent contractors engaged by Landlord;
(viii) accounting and legal expenses; (ix) Landlord's share of any shared
expenses under any reciprocal easement agreement or similar document; (x)
depreciation on personal property, including, without limitation, carpeting in
public corridor and common areas and window coverings provided by Landlord; (xi)
the rental paid for offices in the Building for the property manager and related
management and operations personnel; (xii) the cost of any capital improvements
made to the Building after completion of its construction as a labor-saving or
energy saving device or to enhance the health and safety of the public
(including tenants) or to effect other economies in the operation or maintenance
of the Building, or made to the Building after the date of this Lease that are
required under any governmental law or regulation or insurance carrier that was
not applicable to the Building at the time that permits for the construction
thereof were obtained, or required under any governmental law or regulation
enacted after the Building's temporary certificate of occupancy or the
equivalent was validly issued; such cost to be amortized over such period as
Landlord shall reasonably determine in accordance with generally accepted
accounting principles ("GAAP") and consistent with industry standards and sound
management practices (including, without limitation, with respect to any
improvements which result in cost savings with respect to the Building, such
period as would allow Landlord to amortize the improvements to the extent of
such cost savings in any year or to any greater extent deemed appropriate to
Landlord), together with interest on the unamortized balance at the rate of ten
percent (10%) per annum or such higher rate as may have been paid by Landlord on
funds borrowed for the purpose of constructing such capital improvements; (xiii)
assessments, costs and charges of the San Francisco Transit Management
Association (xiv) the cost of contesting the validity or applicability of any
governmental enactments which may affect operating expenses; (xv) the costs of
public art; and (xvi) any other expenses and costs of any kind whatsoever
incurred in connection with the ownership, management, operation, maintenance
and repair of the Building. See Lease Addendum See Lease Addendum Landlord
and Tenant acknowledge and agree that certain costs of the ownership,
management, operation maintenance and repair of the Building may be allocated
exclusively to a single component of the Building (for example, and without
limitation, to an office area, a retail area or a parking facility) and certain
of such costs may be allocated among such components. The determination of such
costs and their allocation

3

<PAGE>

shall be made by Landlord in Landlord's sole discretion.

                  (b)      Tenant shall pay to Landlord as additional rent one
twelfth (1/12) of Tenant's Tax Share of increases in the Real Estate Taxes for
each Tax Year or portion thereof during the Term after the Base Tax Year when
compared to Real Estate Taxes for the Base Tax Year (the "Tax Increases"), in
advance, on or before the first day of each month during such Tax Year, in an
amount estimated by Landlord in a writing delivered to Tenant. Landlord may
revise such estimates from time to time and Tenant will thereafter make payments
on the basis of such revised estimates.

                  (c)      Tenant shall pay to Landlord as additional rent one
twelfth (1/12) of Tenant's Expense Share of increases in the Expenses for each
Expense Year or portion thereof during the Term after the Base Expense Year when
compared to Expenses for the Base Expense Year (the "Expense Increases"), in
advance, on or before the first day of each month during such Expense Year, in
an amount estimated by Landlord in a writing delivered to Tenant. Landlord may
revise such estimates from time to time and Tenant will thereafter make payments
on the basis of such revised estimates.

                  (d)      With reasonable promptness after the expiration of
each Expense Year and Tax Year after the Base Expense Year and Base Tax Year,
including, without limitation, the Expense Year and Tax Year during which this
Lease terminates, Landlord will furnish Tenant with a statement (herein called
"Landlord's Expense Statement" and "Landlord's Tax Statement"), prepared by
Landlord or its accountant, setting forth in reasonable detail the Expenses and
Real Estate Taxes for each such Expense Year and Tax Year and Tenant's Expense
Share of the Expense Increases and Tenant's Tax Share of the Tax Increases,
which statement shall be conclusive and binding upon Tenant. If the total of
Tenant's Expense Share of the Expense Increases for such Expense Year as set
forth in Landlord's Expense Statement exceeds the total estimated payments for
Expense Increases paid by Tenant for such Expense Year, Tenant shall pay to
Landlord (whether or not this Lease has terminated) the difference between the
total amount of estimated payments paid by Tenant with respect to Expense
Increases and the total of Tenant's Expense Share of the actual Expense
Increases within fifteen (15) days after the receipt of Landlord's Expense
Statement. If the total amount paid by Tenant for any such Expense Year shall
exceed Tenant's Expense Share of the actual Expense Increases for such Expense
Year, such excess shall be credited against the next installments of Expense
Increases due from Tenant to Landlord hereunder. If this Lease has terminated
and no amounts are due or to become due to Landlord from Tenant hereunder, any
excess shall be paid to Tenant by check within a reasonable time after such
final determination of the actual Expenses. If the total of Tenant's Tax Share
of the Tax Increases for any Tax Year as set forth in Landlord's Tax Statement
exceeds the total estimated payments for Tax Increases paid by Tenant for such
Tax Year, Tenant shall pay to Landlord (whether or not this Lease has
terminated) the difference between the total amount of estimated payments paid
by Tenant with respect to Tax Increases and the total of Tenant's Tax Share of
the actual Tax Increases within fifteen (15) days after the receipt of
Landlord's Tax Statement. If the total amount paid by Tenant for any such Tax
Year shall exceed Tenant's Tax Share of the actual Real Estate Taxes for such
Tax Year, such excess shall be credited against the next installments of Tax
Increases due from Tenant to Landlord hereunder. If this Lease has terminated
and no amounts are due or to become due to Landlord from Tenant hereunder, any
excess shall be paid to Tenant by check within a reasonable time after such
final determination of the actual Tax Increases. Notwithstanding anything to the
contrary contained herein, in the event that the Expenses for any subsequent
Expense Year are less than Expenses for the Base Expense Year or in the event
that the Real Estate Taxes for any Tax Year are less than the Real Estate Taxes
for the Base Tax Year, Tenant shall not be entitled to a credit against any Base
Rent or other sums payable by Tenant hereunder or to a payment from Landlord to
Tenant with respect thereto.

                  (e)      If the commencement date or expiration date shall
occur on a date other than the first or last day, respectively, of a Tax Year
and/or Expense Year, Tenant's Tax Share of the Tax Increases and/or Tenant's
Expense Share of Expense Increases for which the commencement date or expiration
date occurs shall be prorated based on a 365-day year, but shall remain subject
to adjustment based on receipt of information after the expiration date.

4

<PAGE>

         5.       Use.

                  (a.)     The Premises shall be used for general office
purposes and no other without the prior written consent of Landlord, which may
be granted or denied in Landlord's absolute discretion. Tenant shall not do or
permit to be done in or about the Premises, nor bring or keep or permit to be
brought or kept therein, anything which is prohibited by or would in any way
conflict with any law, statute, ordinance or governmental rule or regulation now
in force or which may hereafter be enacted or promulgated, or which is
prohibited by the standard form of fire insurance policy, or would in any way
increase the existing rate of or affect any fire or other insurance upon the
Building or any of its contents, or cause a cancellation of any insurance policy
covering the Building or any part thereof or any of its contents. Tenant shall
not do or permit anything to be done in or about the Premises which would in any
way obstruct or interfere with the rights of other tenants of the Building, or
injure or annoy them, or use or allow the Premises to be used for any improper,
immoral, unlawful or objectionable purposes, nor shall Tenant cause, maintain or
permit any nuisance or waste in, on or about the Premises.

                  (b.)     Tenant shall not cause or permit the storage, use,
generation, release, or disposal (collectively, "Handling") of any Hazardous
Materials (as defined below), in, on, or about the Premises or the Building by
Tenant or any agents, employees, contractors, licensees, subtenants, customers,
guests or invitees of Tenant (collectively with Tenant, "Tenant Parties"),
except that Tenant shall be permitted to use normal quantities of office
supplies or products (such as copier fluids or cleaning supplies) customarily
used in the conduct of general business office activities ("Common Office
Chemicals"), providing that the Handling of such Common Office Chemicals shall
comply at all times with all Hazardous Materials Laws (as defined below).
Notwithstanding anything to the contrary contained herein, however, in no event
shall Tenant permit any usage of Common Office Chemicals in a manner that may
cause the Premises or the Building to be contaminated by any Hazardous Materials
or in violation of any Hazardous Materials Laws. Tenant's obligations under this
Paragraph shall survive the expiration or other termination of this Lease. For
purposes of this Paragraph, "Hazardous Materials" means any explosive,
radioactive materials, hazardous wastes, or hazardous substances, including
without limitation, asbestos containing materials, PCB's, CFC's, or substances
defined or regulated as hazardous substances or hazardous materials in the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended, 42 U.S.C. Section 9601-9657; the Hazardous Materials Transportation Act
of 1975, 42 U.S.C. Section 1001-1012, the Resource Conservation and Recovery Act
of 1976, 42 U.S.C. Section 6901-6987; or any other Federal State or local law,
ordinance or regulation. "Hazardous Materials Laws" shall mean all Federal,
State, and local laws, ordinances and regulations defining, regulating,
restricting or otherwise governing the storage, use, generation, release or
disapproval of Hazardous Materials.

         6.       Services.

                  (a)      Landlord shall maintain the public and common areas
of the Building, including lobbies, stairs, elevators, corridors and restrooms,
windows, mechanical, plumbing and electrical equipment, and the structure itself
in reasonably good order and condition except for damage occasioned by the acts
of Tenant, its employees, agents, contractors or invitees, which damage shall be
repaired by Landlord at Tenant's expense.

                  (b)      Landlord shall furnish the Premises with (1)
electricity for lighting and the operation of customary office machines, (2)
heat and air conditioning to the extent reasonably required for the comfortable
occupancy by Tenant in its use of the Premises during the period from 7 a.m. to
6 p.m. on weekdays (except holidays), or such shorter period as may be
prescribed by any applicable policies or regulations adopted by any utility or
governmental agency, (3) elevator service, (4) lighting replacement (for
building standard lights), (5) restroom supplies, (6) window washing with
reasonable frequency, and (7) lobby attendant services and janitor service
during the times and in the manner that such services are customarily furnished
in comparable office buildings in the area. Landlord may establish reasonable
measures to conserve energy, including but not limited to, automatic switching
of lights after hours, so long as such measures do not unreasonably interfere
with Tenant's use of the Premises. Landlord shall not be in default hereunder or
be liable for any damages directly or indirectly resulting from, nor shall the
rental herein reserved be abated, or this Lease terminated by reason of (i) the
installation, use or interruption of use of any equipment in connection with the
furnishing of any of the foregoing services, (ii) failure to furnish or delay in
furnishing any such services or by the making of necessary repairs or
improvements to the Premises or to the Building, or (iii) the

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<PAGE>

limitation, curtailment, rationing or restrictions on use of water, electricity,
gas or any other form of energy serving the Premises or the Building. Landlord
shall use reasonable efforts diligently to remedy any interruption in the
furnishing of such services.

                  (c)      Whenever heat-generating equipment or lighting other
than building standard lights are used in the Premises by Tenant which affect
the temperature otherwise maintained by the air conditioning system, Landlord
shall have the right, after notice to Tenant, to install supplementary air
conditioning facilities in the Premises or otherwise modify the ventilating and
air conditioning system serving the Premises, and the cost of such facilities
and modifications shall be borne by Tenant. Tenant shall also pay the cost of
providing all cooling energy to the Premises in excess of that required for
normal office use or during hours requested by Tenant when air conditioning is
not otherwise furnished by Landlord. If there is installed in the Premises
lighting requiring power in excess of that required for normal office use in the
Building, or if there is installed in the Premises equipment requiring power in
excess of that required for normal desk-top office equipment or normal copying
equipment, Tenant shall pay for the cost of such excess power, together with the
cost of installing any additional risers or other facilities that may be
necessary to furnish such excess power to the Premises.

                  (d)      In the event that Landlord, at Tenant's request,
provides services to Tenant that are not otherwise provided for in this Lease,
Tenant shall pay Landlord's reasonable charges for such services upon billing
therefor, including, without limitation, Landlord's then current administrative
fee therefor.

         7.       Impositions Payable by Tenant. In addition to the monthly
rental and other charges to be paid by Tenant hereunder, Tenant shall pay or
reimburse Landlord for any and all of the following items (hereinafter
collectively referred to as "Impositions"), whether or not now customary or in
the contemplation of the parties hereto: taxes (other than local, state and
federal personal or corporate income taxes measured by the net income of
Landlord from all sources), assessments (including, without limitation, all
assessments for public improvements, services or benefits, irrespective of when
commenced or completed), excises, levies, business taxes,' license, permit,
inspection and other authorization fees, transit development fees, assessments
or charges for housing funds, service payments in lieu of taxes and any other
fees or charges of any kind, which are levied, assessed, confirmed or imposed by
any public authority, but only to the extent the Impositions are: (a) upon,
measured by or reasonably attributable to the cost or value of Tenant's
equipment, furniture, fixtures and other personal property located in the
Premises, or the cost or value of any leasehold improvements made in or to the
Premises by or for Tenant, regardless of whether title to such improvements
shall be in Tenant or Landlord; (b) upon, with respect to or by reason of the
development, possession, leasing, operation, management, maintenance,
alteration, repair, use or occupancy by Tenant of the Premises or any portion
thereof; or (c) upon this transaction or any document to which Tenant is a party
creating or transferring an interest or an estate in the Premises. In the event
that it shall not be lawful for Tenant to reimburse Landlord for the Impositions
but it is lawful to increase the monthly rental to take intb account Landlord's
payment of the Impositions, the monthly rental payable to Landlord shall be
revised to net Landlord the same net return without reimbursement of the
Impositions as would have been received by Landlord with reimbursement of the
Impositions.

         8.       Alterations.

                  (a)      Tenant shall make no alterations, additions or
improvements to the Premises or install fixtures in the Premises without first
obtaining Landlord's consent, which consent shall not be unreasonably withheld,
provided however, that Landlord may withhold its consent in its sole and
absolute discretion if the cost of the work will exceed two thousand five
hundred dollars ($2,500.00) or there are any material modifications to any
structural components of the Building or any of the Building's operating
systems, including, without limitation, heating, ventilating, air conditioning,
plumbing, electrical, and other operating systems. See Lease Addendum In
connection with Tenant's request for Landlord's consent under this Lease, Tenant
shall pre-pay to Landlord a Two Hundred Fifty Dollar ($250.00) charge for
Landlord's review of applicable documents and plans, together with any
third-party costs and expenses incurred or to be incurred by Landlord related
thereto. In no event, however, may the Tenant make any alterations, additions or
improvements or install fixtures which, in Landlord's reasonable judgment, might
adversely affect the structural components of the Building or Building
mechanical, utility or life safety systems. At the time such consent is
requested, Tenant shall furnish to Landlord a description of

6

<PAGE>
the proposed work, an estimate of the cost thereof and such information as shall
reasonably be requested by Landlord substantiating Tenant's ability to pay for
such work. Landlord, at its sole option, may require as a condition to the
granting of such consent to any work costing in excess of fifty thousand dollars
($50,000), that Tenant provide to Landlord, at Tenant's sole cost and expense, a
lien and completion bond in an amount equal to one and one-half (1 1/2) times
any and all estimated costs of the proposed work, to insure Landlord against any
liability for mechanics' and materialmen's liens and to insure completion of the
work. Before commencing any work, Tenant shall give Landlord at least twenty
(20) days written notice of the proposed commencement of such work in order to
give Landlord an opportunity to prepare, post and record such notice as may be
permitted by law to protect Landlord's interest in the Premises and the Building
from mechanics' and materialmen's liens. Within a reasonable period following
completion of any work for which plans and specifications were required to
obtain a building permit for such work, Tenant shall furnish to Landlord "as
built" plans showing the changes made to the Premises.

                  (b)      Any alterations, additions or improvements to the
Premises shall be made by Tenant at Tenant's sole cost and expense, and any
contractor, subcontractor or other person selected by Tenant to make the same
shall be selected from Landlord's approved bidder list. Tenant's contractor and
its subcontractors shall employ union labor to the extent necessary to insure,
so far as may be possible, the progress of the alterations, additions or
improvements and the performance of any other work or the provision of any
services in the Building without interruption on account of strikes, work
stoppage or similar causes of delay. All work performed by Tenant shall comply
with the laws, rules, orders, directions, regulations and requirements of all
governmental entities having jurisdiction over such work and shall comply with
the rules, orders, directions, regulations and requirements of any nationally
recognized board of insurance underwriters. All alterations, additions and
improvements shall immediately become Landlord's property and, at the end of the
term hereof, shall remain on the Premises without compensation to Tenant;
provided, however, that if required by Landlord prior to the end of the term of
the Lease, Tenant shall, prior to the end of the term, at its sole cost and
expense, remove the alterations, additions and improvements required to be
removed by Landlord and repair and restore the Premises to their condition at
the commencement of the term. See Lease Addendum

         9.       Liens. Tenant shall keep the Premises and the Building free
from any liens (and claims thereof) arising out of any work performed, materials
furnished or obligations incurred by or for Tenant. Landlord shall have the
right to post and keep posted on the Premises any notices that may be provided
by law or which Landlord may deem to be property for the protection of Landlord,
the Premises and the Building from such liens and claims.

         10.      Repairs. By entry hereunder, Tenant accepts the Premises as
being in the condition in which Landlord is obligated to deliver the Premises.
Tenant shall, at all times during the term hereof and at Tenant's sole cost and
expense, keep the Premises in good condition and repair; ordinary wear and tear
and damage thereto by fire, earthquake, act of God or the elements excepted.
Tenant hereby waives all rights to make repairs at the expense of Landlord or in
lieu thereof to vacate the Premises, abate rent or terminate this Lease. Subject
to Landlord's rights to require the removal of alterations, additions and
improvements, Tenant shall at the end of the term hereof surrender to Landlord
the Premises and all Alterations thereto in the same condition as when received,
ordinary wear and tear and damage by fire, earthquake, act of God or the
elements excepted. Landlord has no obligation and has made no promise to alter,
remodel, improve, repair, decorate or paint the Premises or any part thereof,
except as specifically herein set forth. No representations respecting the
condition of the Premises or the Building have been made by Landlord or
Landlord's agents to Tenant, except as specifically herein set forth.

         11.      Destruction or Damage.

                  (a)      In the event the Premises or the portion of the
Building necessary for Tenant's use and enjoyment of the Premises are damaged by
fire, earthquake, act of God, the elements or other casualty, Landlord shall
repair the same, subject to the provisions of this paragraph hereinafter set
forth, if (i) such repairs can, in Landlord's opinion, be made within a period
of twelve (12) months after commencement of the repair work, (ii) the cost of
repairing damage for which Landlord is not insured shall be less than ten
percent (10%) of the then full insurable value of the Premises with respect to
repairing any damage to the Premises, or five percent (5%) of the then full
insurable value of the Building with respect to repairing any

7

<PAGE>

damage to other areas of the Building, and (iii) the damage or destruction does
not occur during the last twelve (12) months of the term of this Lease or any
extension thereof. This Lease shall remain in full force and effect except that
so long as the damage or destruction is not caused by the fault or negligence of
Tenant, its contractors, agents, employees or invitees, an abatement of rental
shall be allowed Tenant for such part of the Premises as shall be rendered
unusable by Tenant in the conduct of its business during the time such part is
so unusable.

                  (b)      As soon as is reasonably possible following the
occurrence of any damage, Landlord shall notify Tenant of the estimated time and
cost required for the repair or restoration of the Premises or the portion of
the Building necessary for Tenant's occupancy. If, in Landlord's opinion, such
repairs cannot be made within twelve (12) months as set forth in subparagraph
(a) (i) above, Landlord or Tenant may elect by written notice to the other
within thirty (30) days after Landlord's notice of estimated time and cost is
given, to terminate this Lease effective as of the date of such damage or
destruction. If Landlord is not obligated to effect the repair based upon the
circumstances set forth in subparagraphs (a) (ii) or (a) (iii) above, Landlord
shall have the right to terminate this Lease, by written notice to Tenant within
thirty (30) days after Landlord's notice of time and cost is given, effective as
of the date of such damage or destruction. See Lease Addendum If neither party
so elects to terminate this Lease, this Lease shall continue in full force and
effect, but the rent shall be partially abated as hereinabove in this paragraph
provided, and Landlord shall proceed diligently to repair such damage.

                  (c)      A total destruction of the Building shall
automatically terminate this Lease. Tenant waives California Civil Code Sections
1932, 1933, 1941 and 1942 providing for (among other things) termination of
hiring upon destruction of the thing hired and the right to make repairs and to
vacate the Premises under certain conditions.

                  (d)      In no event shall Tenant be entitled to any
compensation or damages from Landlord, specifically including, but not limited
to, any compensation or damages for (i) loss of the use of the whole or any part
of the Premises, (ii) damage to Tenant's personal property in or improvements to
the Premises, or (iii) any inconvenience, annoyance or expense occasioned by
such damage or repair (including moving expenses and the expense of establishing
and maintaining any temporary facilities).

                  (e)      Landlord, in repairing the Premises, shall not be
required to repair any injury or damage to the personal property of Tenant, or
to make any repairs to or replacement of any alterations, additions,
improvements or fixtures installed on the Premises by or for Tenant.

         12.      Insurance.

                  (a)      Tenant agrees to procure and maintain in force during
the term hereof, at Tenant's sole cost and expense, Commercial General Liability
insurance in an amount not less than Two Million Dollars ($2,000,000) combined
single limit for bodily injury and property damage for injuries to or death of
persons and property damage occurring in, on or about the Premises on the
Building. If the term of this Lease, including, without limitation, any option
terms, is for a period of more than five (5) years, then at the date which is
the fifth anniversary of the commencement of the term, the aforesaid amount of
Two Million Dollars ($2,000,000) shall be increased as required by Landlord to
reflect Landlord's then requirements for the aforesaid insurance. Such policy
shall name Landlord, Landlord's managing agent and any other party designated by
Landlord as additional insureds, shall insure Landlord and Landlord's managing
agent's contingent liability as respect to acts or omissions of Tenant, shall be
issued by a company licensed to do business in the State of California and
otherwise reasonably acceptable to Landlord, and shall provide that the policy
may not be canceled nor amended without thirty (30) days prior written notice to
Landlord. Tenant may carry said insurance under a blanket policy, provided
however, said insurance by Tenant shall include an endorsement confirming
application to and coverage of Landlord. Said insurance shall be primary
insurance to any other insurance that may be available to Landlord. Any other
insurance available to Landlord shall be non-contributing with and excess to
this insurance.

                  (b)      A copy of the certificate(s) of insurance shall be
delivered to Landlord by Tenant prior to commencement of the term of this Lease
and upon each renewal of such insurance.

8

<PAGE>

                  (c)      Tenant shall, prior to and throughout the term of
this Lease, procure from each of its insurers under all policies of fire, theft,
public liability, workers' compensation and any other insurance policies of
Tenant now or hereafter existing, pertaining in any way to the Premises or the
Building or any operation therein, a waiver, as set forth in paragraph 13 of
this Lease, of all rights of subrogation which the insurer might otherwise, if
at all, have against the Landlord or any officer, agent or employee of Landlord
(including, without limitation, Landlord's managing agent).

                  (d)      See Lease Addendum

         13.      Waiver of Subrogation. Landlord and Tenant shall each have
included in all policies of fire, extended coverage, business interruption and
other insurance respectively obtained by them covering the Demised Premises, the
Building and contents therein, a waiver by the insurer of all right of
subrogation against the other in connection with any loss or damage thereby
insured against. Any additional premium for such waiver shall be paid by the
primary insured. To the full extent permitted by law, Landlord and Tenant each
waives all right of recovery against the other for, and agrees to release the
other from liability for, loss or damage to the extent such loss or damage is
covered by valid and collectible insurance in effect at the time of such loss or
damage or would be covered by the insurance required to be maintained under this
Lease by the party seeking recovery.

         14.      Indemnification. Tenant hereby waives all claims against
Landlord for damage to any property or injury or death of any person in, upon or
about the Premises arising at any time and from any cause other than principally
by reason of gross negligence or willful act of Landlord, its employees or
contractors, and Tenant shall defend Landlord against, hold Landlord harmless
from, and reimburse Landlord for any and all claims, liabilities, damages,
losses, costs and expenses, including without limitation, attorneys' fees and
costs arising out of or in any way connected with (a) injury to or death of any
person, and (b) damage to or destruction of any property, and such injury,
death, damage or destruction is attributable to or resulting from the condition,
use or occupancy of the Premises by Tenant or Tenant's failure to perform its
obligations under this Lease; except such as is caused principally by gross
negligence or willful act of Landlord, its contractors or employees. The
foregoing indemnity obligation of Tenant shall include reasonable attorneys'
fees, investigation costs and all other reasonable costs and expenses incurred
by Landlord from the first notice that injury, death or damage has occurred or
that any claim or demand is to be made or may be made. The provisions of this
paragraph shall survive the termination of this Lease with respect to any
damage, injury or death occurring prior to such termination.

         15.      Compliance with Legal Requirements. Tenant, at its sole cost
and expense, shall promptly comply with all laws, statutes, ordinances and
governmental rules, regulations or requirements now in force or which may
hereafter be in force; with the requirements of any board of fire underwriters
or other similar body now or hereafter constituted; with any direction or
occupancy certificate issued pursuant to any law by any public officer or
officers; as well as the provisions of all recorded documents affecting the
Premises (including, without limitation, any ground lease, mortgage or
covenants, conditions and restrictions), insofar as any thereof relate to or
affect the condition, use or occupancy of the Premises, including, without
limitation, structural, utility system and life safety system changes
necessitated by Tenant's acts, use of the Premises or by improvements made by or
for Tenant. See Lease Addendum

         16.      Assignment and Subletting.

                  (a)      Tenant shall not hypothecate or encumber this Lease
or any interest herein without the prior written consent of Landlord, which may
be granted or denied in Landlord's absolute discretion. Tenant shall not,
without the prior written consent of Landlord, which consent shall not be
unreasonably withheld by Landlord, transfer or assign this Lease or any interest
herein, sublet the Premises or any part thereof, or permit the use of the
Premises by any party other than Tenant. This Lease shall not, nor shall any
interest herein, be assignable as to the interest of Tenant by operation of law
without the consent of Landlord, which consent shall not be unreasonably
withheld. Any of the foregoing acts without such consent shall be void and
shall, at the option of Landlord, terminate this Lease. In connection with each
consent requested by Tenant, Tenant shall submit to Landlord the terms of the
proposed transaction, the identity of the parties to the transaction, the
proposed documentation for the transaction, and all other information reasonably
requested by Landlord concerning the proposed transaction and the parties
involved.

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<PAGE>

                  (b)      If the Tenant is a privately held corporation, or is
an unincorporated association or partnership, or any other entity, the transfer,
assignment, or hypothecation of any stock or interest in such corporation,
association, partnership or other entity in excess of fifty percent (50%) in the
aggregate from the Ownership existing as of the date of this Lease shall be
deemed an assignment or transfer within the meaning and provisions of this
paragraph 16. If Tenant is a publicly held corporation, the public trading of
stock in Tenant shall not be deemed an assignment or transfer within the meaning
of this paragraph.

                  (c)      Without limiting the other instances in which it may
be reasonable for Landlord to withhold its consent to an assignment or
subletting, Landlord and Tenant acknowledge that it shall be reasonable for
Landlord to withhold its consent in the following instances:

                           (1)      if at the time consent is requested, or at
any time prior to the granting of consent, Tenant is in default under this Lease
or would be in default under this Lease but for the pendency of any grace or
cure period under paragraph 19 below;

                           (2)      if the proposed assignee or sublessee is a
governmental agency;

                           (3)      if, in Landlord's reasonable judgment, the
use of the Premises by the proposed assignee or sublessee would not be
comparable to the types of office use by other tenants in the Building, would
entail any alterations which would lessen the value of the leasehold
improvements in the Premises, or would conflict with any so-called "exclusive"
or percentage lease then in favor of another tenant of the Building;

                           (4)      if, in Landlord's reasonable judgment, the
financial worth of the proposed assignee or sublessee does not meet the credit
standards applied by Landlord for other tenants under leases with comparable
terms, or the character, reputation, or business of the proposed assignee or
sublessee is not consistent with the quality of the other tenancies in the
Building;

                           (5)      See Lease Addendum; and

                           (6)      if the proposed assignee or sublessee is an
existing tenant of the Building.

                  (d)      If, at any time during the term of this Lease, Tenant
desires to assign its interest in this Lease or sublet all or any part of the
Premises and Landlord's consent is required hereunder, Tenant shall give notice
to Landlord setting forth the terms of the proposed assignment or subletting
("Tenant's Notice"). Landlord shall have the option, exercisable by notice given
to Tenant within twenty-one (21) days after Tenant's Notice is given
("Landlord's Option Period"), either (1) to consent to the assignment, in which
event the provisions of subparagraph (g) shall be applicable, or to consent to
the subletting in which event the provisions of subparagraph (h) shall be
applicable; (2) in the event of a proposed assignment, to terminate this Lease
and to retake possession of the Premises; (3) in the event of a proposed
subletting of the entire Premises, or a portion of the Premises for all or
substantially all of the remainder of the term, to terminate this Lease with
respect to, and to retake possession of, the space in question, together with,
if only a portion of the Premises is involved, such rights of access to and from
such portion as may be reasonably required for its use and enjoyment; or (4) to
reasonably disapprove the proposed assignment or subletting.

                  (e)      See Lease Addendum

                  (f)      No sublessee (other than Landlord if it exercises its
option pursuant to subparagraph (d) above) shall have a right further to sublet
without Landlord's prior consent, which Tenant acknowledges may be withheld in
Landlord's absolute discretion, and any assignment by a sublessee of its
sublease shall be subject to Landlord's prior consent in the same manner as if
Tenant were entering into a new sublease. No sublease, once consented to by
Landlord, shall be modified or terminated by Tenant without Landlord's prior
consent, which consent shall not be unreasonably withheld.

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<PAGE>
                  (g)      In the case of an assignment to an entity other than
Permitted Transferee, fifty percent (50%) of any sums above the rate paid by
Tenant, or other economic consideration received by Tenant as a result of such
assignment, shall be paid to Landlord after first deducting the unamortized cost
of reasonable leasehold improvements paid for by Tenant, and the cost of any
real estate commissions incurred by Tenant in connection with such assignment.

                  (h)      In the case of a subletting to an entity other than
Permitted Transferee, fifty percent (50%) of any sums or economic consideration
received by Tenant as a result of such subletting shall be paid to Landlord
after first deducting (1) the rental due hereunder, prorated to reflect only
rental allocable to the sublet portion of the Premises, (2) the cost of
leasehold improvements made to the sublet portion of the Premises at Tenant's
cost, amortized over the term of this Lease except for leasehold improvements
made for the specific benefit of the sublessee, which shall be amortized over
the term of the sublease, and (3) the cost of any real estate commissions
incurred by Tenant in connection with such subletting, amortized over the term
of the sublease.

                  (i)      Regardless of Landlord's consent and regardless of
whether Landlord consent is required pursuant to the terms hereof, no subletting
or assignment shall release Tenant of Tenant's obligation or alter the primary
liability of Tenant to pay the rental and to perform all other obligations to be
performed by Tenant hereunder. The acceptance of rental by Landlord from any
other person shall not be deemed to be a waiver by Landlord of any provision
hereof. Consent to one assignment or subletting shall not be deemed consent to
any subsequent assignment or subletting. In the event of default by any assignee
of Tenant or any successor of Tenant in the performance of any of the terms
hereof, Landlord may proceed directly against Tenant without the necessity of
exhausting remedies against such assignee or successor. Landlord may consent to
subsequent assignments or subletting of this Lease or amendments or
modifications to this Lease with assignees of Tenant, without notifying Tenant,
or any successor of Tenant, and without obtaining its or their consent thereto,
and such action shall not relieve Tenant of liability under this Lease.

                  (j)      In the event Tenant shall assign this Lease or sublet
the Premises or request the consent of Landlord to any assignment, subletting,
hypothecation or other action requiring Landlord's consent hereunder, the Tenant
shall pay Landlord's reasonable and standard processing fee (not to exceed Five
Hundred Dollars ($500.00)) in each instance and Landlord's reasonable attorneys'
fees and costs incurred in connection therewith (which shall not exceed
$500.00). In no event shall any of these costs be reimbursable to Tenant.

                  (k)      Notwithstanding anything to the contrary contained
herein, any and all unexercised options to extend or renew the term of the Lease
or to expand the Premises and any and all rights of first refusal and similar
rights are intended by both Landlord and Tenant to be personal to 911 gifts.com
or a Tenant Affiliate and are not intended to benefit any assignee or sublessee
hereunder. Upon any assignment or subletting of the Premises or any portion
thereof, any such options or rights shall automatically and without any further
action by Landlord terminate and be of no further force and effect.

                  17.      Rules; No Discrimination. Tenant shall faithfully
observe and comply with the rules and regulations annexed to this Lease, and
after notice thereof, all reasonable modifications thereof and additions thereto
from time to time promulgated in writing by Landlord. Landlord shall not be
responsible to Tenant for the nonperformance by any other tenant or occupant of
the Building of any of said rules and regulations. Tenant specifically covenants
and agrees that Tenant shall not discriminate against or segregate any person or
group of persons on account of race, sex, creed, color, national origin, or
ancestry in the occupancy, use, sublease, tenure or enjoyment of the Premises.

                  18.      Entry by Landlord. Landlord may with reasonable prior
notice (which shall in no event be more than 24 hours prior notice) enter the
Premises at reasonable hours to (a) inspect the same; (b) exhibit the same to
prospective purchasers, lenders or tenants, provided, however, that Landlord
shall only exhibit the Premises to prospective tenants during the final ninety
(90) days of Tenant's occupancy of the Premises; (c) make repairs or perform
maintenance required of Landlord under the terms hereof or repairs to any
adjoining space or utility services or make repairs, alterations or improvements
to any other portion of the Building; (d) supply janitor service and any other
service to be provided by Landlord to Tenant under this

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<PAGE>
Lease; and (e) post notices of non-responsibility, provided, however, that all
such work shall be done as promptly as reasonably practical and so as to cause
as little interference to Tenant as reasonably practical. Tenant hereby waives
any claim for damages for any inconvenience to or interference with Tenant's
business or any loss of occupancy or quiet enjoyment of the Premises occasioned
by such entry, except for the gross negligence or willful misconduct of
Landlord. Landlord shall at all times have and retain a key with which to unlock
all of the doors in, on or about the Premises (excluding Tenant's server room
vaults, safes and similar areas designated in writing by Tenant in advance); and
Landlord shall have the right to use any and all means which Landlord may deem
proper to open Tenant's doors in an emergency in order to obtain entry to the
Premises, and any entry to the Premises obtained by Landlord in an emergency
shall not be construed or deemed to be a forcible or unlawful entry into or a
detainer of the Premises or an eviction, actual or constructive, of Tenant from
the Premises or any portion thereof and Landlord shall have no liability to
Tenant as a result thereof.

         19.      Events of Default. The following events shall constitute
Events of Default under this Lease:

                  (a)      a default by Tenant in the payment when due of any
rent or other sum payable hereunder and the continuation of such default for a
period of five (5) days after the same is due;

                  (b)      a default by Tenant in the performance of any of the
other terms, covenants, agreements or conditions contained herein and, if the
default is curable, the continuation of such default for a period of twenty (20)
days after notice by Landlord or beyond the time reasonably necessary for cure
if the default is of a nature to require more than twenty (20) days to remedy,
provided, however, in no event shall Tenant have more than a period of sixty
(60) days to remedy any such default;

                  (c)      the bankruptcy or insolvency of Tenant, transfer by
Tenant in fraud of creditors, an assignment by Tenant for the benefit of
creditors, or the commencement of any proceedings of any kind by or against
Tenant under any provision of the Federal Bankruptcy Act or under any other
insolvency, bankruptcy or reorganization act unless, in the event any such
proceedings are involuntary, Tenant is discharged from the same within sixty
(60) days thereafter;

                  (d)      the appointment of a receiver for a substantial part
of the assets of Tenant;

                  (e)      the abandonment of the Premises; and

                  (f)      the levy upon this Lease or any estate of Tenant
hereunder by any attachment or execution and the failure to have such attachment
or execution vacated within twenty (20) days thereafter.

         In no event shall this Lease be assigned or assignable by reason of any
voluntary or involuntary bankruptcy proceedings, nor shall any rights or
privileges hereunder be an asset of Tenant, the trustee, debtor-in-possession,
or the debtor's estate in any bankruptcy, insolvency or reorganization
proceedings,

         20.      Termination Upon Default. Upon the occurrence of any Event of
Default by Tenant hereunder, Landlord may, at its option and without any further
notice or demand, in addition to any other rights and remedies given hereunder
or by law, terminate this Lease and exercise its remedies relating thereto in
accordance with the following provisions:

                  (a)      Landlord shall have the right, so long as the Event
of Default remains uncured, to give notice of termination to Tenant, and on the
date specified in such notice this Lease shall terminate.

                  (b)      In the event of any such termination of this Lease,
Landlord may then or at any time thereafter by judicial process, re-enter the
Premises and remove therefrom all persons and property and again repossess and
enjoy the ?ILLEGIBLE? Premises, without prejudice to any other remedies that
Landlord may have by reason of Tenant's default or of such termination.

                  (c)      In the event of any such termination of this Lease,
and in addition to any

12

<PAGE>
other rights and remedies Landlord may have, Landlord shall have all of the
rights and remedies of a landlord provided by Section 1951.2 of the California
Civil Code. The amount of damages which Landlord may recover in event of such
termination shall include, without limitation: (1) the worth at the time of
award (computed by discounting such amount at the discount rate of the Federal
Reserve Bank of San Francisco at the time of award plus one percent) of the
amount by which the unpaid rent for the balance of the term after the time of
award exceeds the amount of rental loss that Tenant proves could be reasonably
avoided; (2) all legal expenses and other related costs incurred by Landlord
following Tenant's default; (3) all costs incurred by Landlord in restoring the
Premises to good order and condition, or in remodeling, renovating or otherwise
preparing the Premises for reletting; (4) all costs (including, without
limitation, any brokerage commissions) actually incurred by Landlord in
reletting the Premises; and (5) any and all other damages suffered by Landlord.

                  (d)      After terminating this Lease, Landlord may remove any
and all personal property located in the Premises and place such property in a
public or private warehouse or elsewhere at the sole cost and expense of Tenant.
In the event that Tenant shall not immediately pay the cost of storage of such
property after the same has been stored for a period of thirty (30) days or
more, Landlord may sell any or all thereof at a public or private sale in such
manner and at such times and places as Landlord in its sole discretion may deem
proper, without notice to or demand upon Tenant. Tenant waives all claims for
damages that may be caused by Landlord's removing or storing or selling the
property as herein provided, and Tenant shall indemnify and hold Landlord free
and harmless from and against any and all claims, damages, liabilities, losses,
costs and expenses, including, without limitation, all costs of court and
attorneys' fees of Landlord occasioned thereby.

                  (e)      In the event of the occurrence of any of the events
specified in paragraph 19(c) of this Lease, if Landlord shall not choose to
exercise, or by law shall not be able to exercise, its rights hereunder to
terminate this Lease, then, in addition to any other rights of Landlord
hereunder or by law, (1) Landlord may discontinue the services provided pursuant
to paragraph 6 of this Lease, unless Landlord has received compensation in
advance for such services in the amount of Landlord's reasonable estimate of the
compensation required with respect to such services, and (2) neither Tenant, as
debtor-in-possession, nor any trustee or other person (collectively, the
"Assuming Tenant") shall be entitled to assume this Lease unless on or before
the date of such assumption, the Assuming Tenant (a) cures, or provides adequate
assurance that the Assuming Tenant will promptly cure, any existing default
under this Lease, (b) compensates, or provides adequate assurance that the
Assuming Tenant will promptly compensate Landlord for any pecuniary loss
(including, without limitation, attorneys' fees and disbursements) resulting
from such default, and (c) provides adequate assurance of future performance
under this Lease. For purposes of this subparagraph (e), "adequate assurance" of
such cure, compensation or future performance shall be effected by the
establishment of an escrow fund for the amount at issue or by bonding.

                  (f)      In the event any governmental authority having
jurisdiction over the Real Property or the Building promulgates or
revises any applicable law or imposes mandatory or voluntary controls or
guidelines on Landlord or the Premises or the Building relating to the use or
conservation of energy or utilities or the reduction of automobiles or other
emissions (collectively "Controls") or in the event Landlord is required or
elects to make alterations to the Premises or the Building in order to comply
with such mandatory or voluntary Controls, Landlord may, in its sole discretion,
comply with such Controls or make such alterations to the Premises and/or
Building related thereto. Such compliance and the making of such alterations
shall not entitle Tenant to any abatement of rent, constitute an eviction of
Tenant, constructive or otherwise, or impose upon Landlord any liability
whatsoever, including but no limited to, liability for consequential damages or
loss of business by Tenant. In carrying out such compliance and alterations,
Landlord shall use reasonable efforts to minimize any disruptions to Tenant's
business in the Premises.

         21.      Continuation after Default. Landlord shall have the remedy
described in California Civil Code Section 1951.4 (i.e. Landlord may continue
this Lease in effect after Tenant's abandonment and recover rental as it becomes
due, because Tenant has the right to sublet or assign, subject only to
reasonable limitations). Even though Tenant has breached this Lease and
abandoned the Premises, this Lease shall continue in effect for so long as
Landlord does not terminate Tenant's right to possession, and Landlord may
enforce all its rights and remedies as it becomes due under this Lease. Acts of
maintenance or preservation or efforts to

13

<PAGE>
relet the Premises or the appointment of a receiver upon initiative of Landlord
to protect Landlord's interest under this Lease shall not constitute a
termination of Tenant's right to possession.

         22.      Other Relief. The remedies provided for in this Lease are in
addition to any other remedies available to Landlord at law or in equity, by
statute or otherwise.

         23.      Landlord's Right to Cure Defaults. All agreements and
provisions to be performed by Tenant under any of the terms of this Lease shall
be at its sole cost and expense and without any abatement of rental. If Tenant
shall fail to pay any sum of money, other than rental, required to be paid by it
hereunder or shall fail to perform any other act on its part to be performed
hereunder and such failure shall continue for twenty (20) days after notice
thereof by Landlord, or such longer period as may be allowed hereunder, Landlord
may, but shall not be obligated so to do, and without waiving or releasing
Tenant from any obligations of Tenant, make any such payment or perform any such
other act on Tenant's part to be made or performed as in this Lease provided to
the extent Landlord may deem desirable. All sums so paid by Landlord (with
interest at an annual rate equal to four percent (4%) over the annual prime rate
of interest announced publicly by Citibank, N.A., in New York, New York from
time to time, but in no event in excess of the maximum interest rate permitted
by law) and all necessary incidental costs shall be payable to Landlord on
demand.

         24.      Attorneys' Fees. If any action arising out of this Lease is
brought by either party hereto against the other, then and in that event the
unsuccessful party to such action shall pay to the prevailing party all costs
and expenses, including reasonable attorneys' fees, incurred by such prevailing
party, and if the prevailing party shall recover judgment in such action, such
costs expenses and attorneys' fees shall be included in and as part of such
judgment.

         25.      Eminent Domain. If all or any part of the Premises shall be
taken as a result of the exercise of the part of eminent domain, this Lease
shall terminate as to the part so taken as of the date of taking, and, in the
case of a partial taking, either Landlord or Tenant shall have the right to
terminate this Lease as to the balance of the Premises by notice to the other
within thirty (30) days after such date, provided, however, that a condition to
the exercise by Tenant of such right to terminate shall be that the portion of
the Premises taken shall be of such extent and nature as substantially to
handicap, impede or impair Tenant's use of the balance of the Premises. In the
event of any taking, Landlord shall be entitled to any and all compensation,
damages, income, rent, awards, or any interest therein whatsoever which may be
paid or made in connection therewith, and Tenant shall have no claim against
Landlord for the value of any unexpired term of this Lease or otherwise. In the
event of a partial taking of the Premises which does not result in a termination
of this Lease, the monthly rental thereafter to be paid shall be equitably
reduced. Tenant shall have the right to make a separate claim to the condemning
authority for Tenant's relocation expenses and loss of personal property and
equipment.

         26.      Subordination.

                  (a)      This Lease shall be subject and subordinate to any
ground lease, mortgage, deed of trust, or any other hypothecation for security
now or hereafter placed upon the Building and to any and all advances made on
the security thereof or Landlord's interest therein, and to all renewals,
modifications, consolidations, replacements and extensions thereof. In the event
any mortgage or deed of trust to which this Lease is subordinate is foreclosed
or a deed in lieu of foreclosure is given to the mortgagee or beneficiary,
Tenant shall attorn to the purchaser at the foreclosure sale or to the grantee
under the deed in lieu of foreclosure; in the event any ground lease to which
this Lease is subordinate is terminated, Tenant shall attorn to the ground
lessor. Tenant agrees to execute within ten (10) days any documents required to
effectuate such subordination, to make this Lease prior to the lien of any
mortgage or deed of trust or ground lease as may be requested by the holder of
any such mortgage or deed of trust or by the ground lease under any such ground
lease, or to evidence such attornment.

                  (b)      In the event any mortgage or deed of trust which is
entered into by Landlord after the date hereof to which this Lease is
subordinate is foreclosed or a deed in lieu of foreclosure is given to the
mortgagee or beneficiary, or in the event any ground lease to which this Lease
is subordinate is terminated, this Lease shall not be barred, terminated, cut
off or foreclosed, nor shall the rights and possession of Tenant hereunder be
disturbed if Tenant shall not then be in default in the payment of rental and
other sums due hereunder or otherwise be in default under the terms of this
Lease, and if Tenant shall attorn to the purchaser, grantee, or

14

<PAGE>

ground lessor as provided in subparagraph (a) above or, if requested, enter into
a new lease for the balance of the term hereof upon the same terms and
provisions as are contained in this Lease.

                  (c)      See Lease Addendum

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

         28.      Sale. In the event the original Landlord hereunder, or any
successor owner of the Building, shall sell or convey the Building, all
liabilities and obligations on the part of the original Landlord, or such
successor owner, under this Lease accruing thereafter shall terminate, and
thereupon all such liabilities and obligations shall be binding upon the new
owner. Tenant agrees to attorn to such new owner.

         29.      Estoppel Certificate. At any time and from time to time but on
not less than ten (10) days prior notice by Landlord, Tenant shall execute,
acknowledge, and deliver to Landlord, promptly upon request, a certificate
certifying (a) that this Lease is unmodified and in full force and effect (or,
if there have been modifications, that this Lease is in full force and effect,
as modified, and stating the date and nature of each modification), (b) the
date, if any, to which rental and other sums payable hereunder have been paid,
(c) that no notice has been received by Tenant of any default which has not been
cured, except as to defaults specified in the certificate, (d) whether there is
then existing any claim by Tenant of default hereunder by Landlord, and, if so,
specifying the nature thereof, and (e) such other matters as may be requested by
Landlord. Any such certificate may be relied upon by any prospective purchaser,
mortgagee or beneficiary under any deed of trust on the Building or any part
thereof.

         30.      No Light, Air, or View Easement. Tenant agrees that any
diminution or shutting off of light, air or view by any structure which may be
erected (whether or not by Landlord) on lands adjacent to the Building shall in
no way affect this Lease or impose any liability on Landlord nor entitle Tenant
to any reduction of rent or any other sums payable hereunder.

         31.      Holding Over. If Tenant holds possession of the Premises after
expiration of the term of this Lease, Tenant shall become a tenant from month to
month upon the terms herein specified but at a monthly rental equivalent to 150%
of the then prevailing monthly rental payable by Tenant at the expiration of the
term of this Lease, payable in advance on or before the first day of each month,
and shall indemnify Landlord and any replacement tenant for the Premises for any
damages or loss suffered by either Landlord or the replacement tenant resulting
from Tenant's failure timely to vacate the Premises.

         32.      Security Deposit. Tenant shall, upon execution of this Lease,
deposit with Landlord the sum specified in the Basic Lease Information (the
"deposit"). The deposit shall be held by Landlord as security for the faithful
performance by Tenant of all the provisions of this Lease to be performed or
observed by Tenant. If Tenant fails to pay rent or other sums due hereunder, or
otherwise commits an Event of Default with respect to any provision of this
Lease, Landlord may use, apply or retain all or any portion of the deposit for
the payment of any rent or other sum in default or for the payment of any other
sum to which Tenant compensates Landlord for any loss or damage which Landlord
may suffer thereby. If Landlord so uses or applies all or any portion of the
deposit, Tenant shall within ten (10) days after demand therefor deposit cash
with Landlord in an amount sufficient to restore the deposit to the full amount
thereof and Tenant's failure to do so shall be a material breach of this Lease.
Landlord shall not be required to keep the deposit separate from its general
accounts or to pay any interest on the deposit.

         33.      Waiver. The waiver by Landlord of any agreement, condition or
provision herein contained shall not be deemed to be a waiver of any subsequent
breach of the same or any other agreement, condition or provision herein
contained, nor shall any custom or practice which may grow up between the
parties in the administration of the terms hereof be construed to waive or to
lessen the right of Landlord to insist upon the performance by Tenant in strict
accordance with such terms. The subsequent acceptance of rental hereunder by
Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of
any agreement, condition or provision of this Lease, other than the failure of
Tenant to pay the particular rental so accepted, regardless of Landlord's
knowledge of preceding breach at the time of acceptance of the rental.

         34.      Notices and Consents. All notices, consents, demands and other
communications

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<PAGE>

from one party to the ?ILLEGIBLE? that are given pursuant to the terms of this
Lease shall be in writing and shall be deemed to have been fully given when
deposited in the United States mail, certified or registered, postage prepaid,
and addressed as follows: to Tenant at the address specified in the Basic Lease
Information, or to such other place as Tenant may from time to time designate in
a notice to Landlord; to Landlord at the address specified in the Basic Lease
Information, or to such other place as Landlord may from time to time designate
in a notice to Tenant; or, in the case of Tenant, delivered to Tenant at the
Premises.

         35.      Complete Agreement. There are no oral agreements between
Landlord and Tenant affecting this Lease, and this Lease supersedes and cancels
any and all previous negotiations, arrangements, brochures, agreements, letters
of intent and understandings if any, between Landlord and Tenant or displayed by
Landlord to Tenant with respect to the subject matter of this Lease, the
Building or related facilities.

         36.      Corporate Authority. See Lease Addendum

         37.      Partnership Authority. If Tenant is a partnership, joint
venture, or other unincorporated association, each individual executing this
Lease on behalf of Tenant warrants that this Lease is binding on Tenant and
that each and both of the persons signing on behalf of Tenant were authorized to
do so.

         38.      Limitation of Liability to Building. The liability of Landlord
to Tenant for any default by Landlord under this Lease or arising in connection
with Landlord's operation, management, leasing, repair, renovation, alteration,
or any other matter relating to the Building or the Premises, shall be limited
to the interest of Landlord in the Building. Tenant agrees to look solely to
Landlord's interest in the Building for the recovery of any judgment against
Landlord, and Landlord shall not be personally liable for any such judgment or
deficiency after execution thereon. The limitations of liability contained in
this paragraph 38 shall apply equally and inure to the benefit of Landlord, its
successors and their respective, present and future partners of all tiers,
beneficiaries, officers, directors, trustees, shareholders, agents and
employees, and their respective heirs, successors and assigns. Under no
circumstances shall any present or future general partner of Landlord (if
Landlord is a partnership) or individual trustee or beneficiary (if Landlord or
any partner of Landlord is a trust) have any liability for the performance of
Landlord's obligations under this Lease.

         39.      Miscellaneous. The words "Landlord" and "Tenant" as used
herein shall include the plural as well as the singular. If there be more than
one Tenant, the obligations hereunder imposed upon Tenant shall be joint and
several. Time is of the essence of this Lease and each and all of its
provisions. Submission of this instrument for examination or signature by Tenant
does not constitute a reservation of or option for lease, and it is not
effective as a lease or otherwise until execution and delivery by both Landlord
and Tenant. The agreements, conditions and provisions herein contained shall,
subject to the provisions as to assignment, apply to and bind the heirs,
executors, administrators, successors and assigns of the parties hereto. Tenant
shall not, without the consent of Landlord, use the name of the Building for any
purpose other than as the address of the business to be conducted by Tenant in
the Premises. Upon the request of Landlord, Tenant shall provide to Landlord
from time to time, at no expense to Landlord, copies of such financial
statements with respect to Tenant as may have been prepared by or for Tenant.
See Lease Addendum Landlord's acceptance of a partial rent payment shall not
constitute a waiver of any rights of Tenant or Landlord, including, without
limitation, any right Landlord may have to recover possession of the Premises,
in unlawful detainer, or otherwise. If any provisions of this Lease shall be
determined to be illegal or unenforceable, such determination shall not affect
any other provision of this Lease and all such other provisions shall remain in
full force and effect. This Lease shall be governed by and construed pursuant to
the laws of the State of California.

         40.      Abandonment. Tenant shall not vacate or abandon the Premises
or any part thereof at any time during the term of this Lease. Tenant
understands that if Tenant should leave the Premises or any part thereof vacant
or abandoned, the risk of fire, other casualty, and

16

<PAGE>

vandalism to the Premises and the Building will be increased and that,
therefore, such action by Tenant shall constitute a material breach of this
Lease, whether or not Tenant continues to pay rent and additional rent under
this Lease. If Tenant shall vacate, abandon or surrender the Premises, or be
dispossessed by process of law or otherwise, any personal property belonging to
Tenant and left on the Premises shall be deemed to be abandoned, at the option
of Landlord, and Landlord may sell or otherwise dispose of such personal
property in any commercially reasonable manner.

         41.      Substitution of Premises. Landlord hereby reserves the right
from time to time to relocate Tenant to another part of the Building prior to or
during the term of this Lease so long as the number of net rentable square feet
so substituted approximately equals the number of net rentable square feet in
the Premises, and Landlord shall not have any liability with respect to any such
relocation and substitution. From and after the date of such relocation and
substitution, the term "Premises" as used herein shall mean the substituted
space in the Building, and Landlord and Tenant shall initial, date and attach to
this Lease a substitute Exhibit A showing the new Premises. If such relocation
occurs after Tenant has occupied the Premises, or any such substituted Premises,
then Landlord shall bear the reasonable out-of-pocket expense of moving Tenant's
furnishings and equipment from the occupied Premises to such substitute Premises
and shall at Landlord's sole cost and expense improve the substituted Premises
with improvements substantially similar in quality and scope to those located in
the Premises then occupied by Tenant. Except as provided in this paragraph, all
of the terms and conditions of this Lease shall remain in full force and effect
with respect to the substitute Premises. See Lease Addendum

         42.      Americans with Disabilities Act and Similar Acts.
Notwithstanding anything to the contrary contained herein or in the Lease,
Tenant, at its sole cost and expense, shall (i) cause the Premises to comply
with the provisions of the Americans With Disabilities Act, 42. U.S.C. 12101 et
seq. and any governmental regulations with respect thereof (the "ADA"), Title 24
of the California Administrative Code ("Title 24"), and other similar federal,
state, and local laws and regulations, including, without limitation, any
alterations required under ADA for the purposes of "public accommodations" (as
that term is used in the ADA), and (ii) reimburse Landlord upon demand for any
and all costs and expenses incurred by Landlord to comply with ADA, Title 24, or
such similar federal, state, or local laws and regulations in any other portion
of the Building in which the Premises are located arising out of Tenant's
particular use of or construction in the Premises. Except as provided above,
Tenant shall have no responsibility to comply with such laws in portions of the
Building outside of the Premises.

         43.      Exhibits. The exhibit(s) and addendum, if any, specified in
the Basic Lease Information are attached to this Lease and by this reference
made a part hereof.

         44.      Landlord's Liability; Sale of Building. The term "Landlord,"
as used in this Lease, shall mean only the owner or owners (or lessee or lessees
under any ground lease) of the Building at the time in question. Tenant
acknowledges and agrees that the liability of Landlord with respect to its
obligations under this Lease is limited to Landlord's interest in the Building,
and Tenant agrees to look solely to Landlord's interest in the Building to
satisfy any claim or judgment against or any liability or obligation of Landlord
to Tenant under this Lease. In no event shall any partner, officer, director,
employee, trustee, beneficiary, advisor, investment manager, manager, agent,
member, advisor, or shareholder of Landlord have any personal liability to
Tenant with respect to any liability or obligation of Landlord to Tenant, and no
recourse shall be had by Tenant against any such parties or the assets of any
such parties to satisfy any claim or judgment of Tenant for Landlord's breach of
any of its obligations under this Lease. In addition, in the event of any
conveyance of title to the Building, Landlord shall be relieved of all liability
with respect to Landlord's obligations to be performed under this Lease after
the date of such conveyance. If Tenant provides Landlord with any security for
Tenant's performance of its obligations hereunder, Landlord shall transfer such
security to the grantee or transferee of Landlord's interest in the Real
Property, and once such transfer has been made, Landlord shall be released from
any further responsibility or liability of such security. Wherever in this Lease
Tenant (a) releases Landlord from any claim or liability, (b) waives or limits
any right of Tenant to assert any claim against Landlord or to seek recourse
against any property of Landlord or (c) agrees to indemnify Landlord against any
matters, the relevant release, waiver, limitation or indemnity shall run in
favor of and apply to Landlord, the constituent shareholders, partners,
trustees, beneficiaries, members or other owners of Landlord, and the directors,
officers, employees and agents of Landlord and each such constituent
shareholder, partner or other owner.

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<PAGE>

         45.      Name of Building. Tenant shall not use the name of the
Building for any purpose other than as the address of the business conducted by
Tenant in the Premises without the written consent of Landlord. Landlord
reserves the right to change the name of the Building and Landlord shall not be
liable to Tenant for any loss, cost or expense in account of any such change of
name.

         46.      Hazardous Substance Disclosure. California law requires
landlords to disclose to tenants the existence of certain Hazardous Materials.
Accordingly, the existence of gasoline and other automotive fluids, asbestos
containing materials, maintenance fluids, copying fluids and other office
supplies and equipment, certain construction and finish materials, tobacco
smoke, cosmetics and other personal items must be disclosed. Gasoline and other
automotive fluids are found in the garage area of the Building. Cleaning,
lubricating and hydraulic fluids used in the operation and maintenance of the
Building are found in the utility areas of the Building not generally accessible
to Building occupants or the public. Many Building occupants use copy machines
and printers with associated fluids and toners, and pens, markers, inks, and
office equipment that may contain Hazardous Materials. Certain adhesives, paints
and other construction materials and finishes used in portions of the Building
may contain Hazardous Materials. Although smoking is prohibited in the public
areas or the Building, these areas may from time to time be exposed to tobacco
smoke. Building occupants and other persons entering the Building from time to
time may use or carry prescription and non-prescription drugs, perfumes,
cosmetics and other toiletries, and foods and beverages, some of which may
contain Hazardous Materials.

         47.      Real Estate Brokers. Landlord and Tenant each represents and
warrants to the other that such party has negotiated this Lease directly with
the Real Estate Broker(s), if any, identified in the Basic Lease Information and
has not authorized or employed, or acted by implication to authorize or to
employ, any other real estate broker or salesman to act for such party in
connection with this Lease. Each party shall indemnify, defend and hold the
other harmless from and against any and all claims by any real estate broker or
salesman other than the Real Estate Broker(s), if any, identified in the Basic
Lease Information for a commission, finder's fee or other compensation as a
result of the inaccuracy of such party's representation above. Landlord will pay
any commission owing to the Real Estate Brokers, if any, identified in the Basic
Lease Information above pursuant to a separate agreement.

         48.      Limited Recourse. Notwithstanding anything to the contrary in
the Lease or in any document delivered by Landlord in connection with the
consummation of the transaction contemplated hereby, it is expressly understood
and agreed that The Equitable Life Assurance Society of the United States is
acting solely on behalf and for the benefit of Separate Account No. S-16V and
Landlord's liability shall be limited to, and payable and collectable only out
of, assets allocated to, or held by Landlord for the benefit of, Separate
Account No. S-16V (including, without limitation, the Building) and no other
property or asset of Landlord or of any of Landlord's directors, officers,
employees, shareholders, contractholders or policyholders, shall be subject to
any lien, levy, execution, setoff or other enforcement procedure for
satisfaction of any right or remedy of Tenant in connection with the transaction
contemplated hereby.

                  IN WITNESS WHEREOF, the parties have executed this Lease on
the respective dates indicated below:

TENANT                                    LANDLORD
911 gifts.com,                            THE EQUITABLE LIFE ASSURANCE
a Delaware corporation                    SOCIETY OF THE UNITED STATES,
                                          a New York corporation

By: /s/ [ILLEGIBLE]                       By: /s/ [ILLEGIBLE]
    ---------------------                     ------------------------
        Its: COO                               Its: Investment Officer

By: /s/ [ILLEGIBLE]                       By: ______________________
    ---------------------
        Its: SVP BUS. DEV.                     Its: ______________

Date of Execution                         Date of Execution
        by Tenant: 9/1/99                        by Landlord: 9-2-99

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                               ADDENDUM TO LEASE

                  This Addendum ("Addendum") is made to be a part of that
certain Office Lease between THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED
STATES, a New York corporation ("Landlord"), and 911 GIFTS.COM., a Delaware
corporation ("Tenant"), dated as of September 1, 1999 (the "Lease"). To the
extent there is any inconsistency between the terms and provisions of the Lease
and the terms and provisions of this Addendum, this Addendum shall govern and
control. All capitalized words used herein which have defined meanings in the
Lease shall have the same defined meanings herein. Landlord and Tenant have
agreed as follows:

49. [INSERT AFTER THE LAST SENTENCE OF PARAGRAPH 2 ON PAGE 1 OF THE LEASE]
    Notwithstanding the foregoing, and except for delays caused by fire,
    earthquake, act of God or the elements, in the event that Landlord does not
    deliver the Premises to Tenant on or before October 1, 1999, then Tenant as
    its sole remedy shall have the right to terminate this Lease upon five (5)
    business days prior written notice to Landlord (unless, within such five (5)
    business day period, Landlord delivers possession of the Premises to
    Tenant). Upon such termination, Landlord shall promptly return to Tenant the
    Letter of Credit and any prepaid rent held by Landlord, and neither party
    shall have any further rights or obligations hereunder (except such
    obligations as expressly survive the expiration or termination of the
    Lease).

50. [INSERT AFTER THE LAST SENTENCE OF PARAGRAPH 4(a)(iii) ON PAGE 3 OF THE
    LEASE] Notwithstanding anything to the contrary contained herein, if any
    Taxes are payable, or may at the option of the taxpayer be paid, in
    installments, such Taxes shall be deemed to have been paid in installments
    and amortized over the maximum allowable time period, regardless of the
    method of actual payment by Landlord, and Tenant's Share of such Taxes shall
    only include those installments that would become due and payable during the
    Term of this Lease.

51. [INSERT IN PARAGRAPH 4(a)(v) AS THE SECOND SENTENCE ON PAGE 3 OF THE LEASE]
    Notwithstanding the foregoing, for purposes of this Lease, Expenses shall
    not include:

                  (1)      Real Estate Taxes, since Tenant is obligated to pay
    Tenant's Tax Share of Tax Increases pursuant to other provisions hereof;

                  (2)      Leasing commissions paid to agents of Landlord, other
    brokers or any other persons in connection with the leasing of premises in
    the Building; attorneys' fees, costs, disbursements and other expenses
    incurred in connection with the negotiation or disputes with tenants, or in
    connection with leasing, renovating, or improving space for tenants or other
    occupants or prospective tenants or other occupants of the Building;

                  (3)      Costs to the extent resulting from the gross
    negligence or willful misconduct of Landlord, its employees or contractors;

                  (4)      Any fines, penalties or interest resulting from
    Landlord's violation of any federal, state or local law or regulation;

                  (5)      The depreciation or amortization (except to the
    extent specifically provided in this Paragraph 4(a)(v)) of the Building;

                  (6)      Capital improvements made to the Building except to
    the extent specifically provided in this Paragraph 4(a)(v);

                  (7)      Costs of complying with laws, codes, regulations, or
    ordinances relating to hazardous materials to the extent such costs are
    incurred as a result of the presence of hazardous materials in the soil or
    groundwater under the Building on or before the date of execution of this
    Lease. The parties agree that the clean-up of hazardous materials required
    because of the use of selection of building materials (other than those
    known to be hazardous at the time of the installation) shall be either an
    Expense, or to the extent that such clean-up constitutes an improvement to
    the Building, a capital improvement pursuant to this Lease. To the extent
    that such clean-up of hazardous materials is a capital improvement, the cost
    thereof shall be payable by Tenant to Landlord as capital improvement
    amortization under this Lease, as reasonably determined by Landlord and in
    accordance with GAAP and consistent with industry standards and sound
    management practices.

                                       1

<PAGE>

                  (8)      The costs of repair or maintenance to the Building,
    including the Premises and other costs and expenses (which would otherwise
    be included as part of Expenses), to the extent such costs are reimbursed by
    insurance, guaranties, warranties, governmental agencies, or other tenants
    or occupants;

                  (9)      Landlord's general overhead and administrative
    expenses, including executive salaries and service personnel, to the extent
    not allocable to the operation or management of the Building;

                  (10)     Principal, interest, points and fees on debt or
    amortization payments on any real property mortgages or deeds of trust, or
    any fines or penalties associated with the foregoing;

                  (11)     Advertising and marketing costs incurred with respect
    to advertising or solicitation of new tenants for the Building;

                  (12)     Any bad debt loss, rent loss or reserves for bad
    debts or rent loss;

                  (13)     Any reserves for capital replacements;

                  (14)     Costs of purchasing, installing and replacing art
    work or decorative features in excess of Twenty-Five Thousand Dollars
    ($25,000) in any calendar year, excluding replacements required as a result
    of normal wear and tear in the Building;

                  (15)     Rental payments made under any ground lease;

                  (16)     The cost of utilities, services and other benefits
    (including but not limited to after-hours HVAC, supplemental condenser
    water, etc.) for which individual tenants (including Tenant) reimburse
    Landlord or directly pay service providers, or costs in connection with
    services or other benefits provided selectively to one or more tenants
    (other than Tenant) and which do not benefit Tenant;

                  (17)     Interest, penalties or damages resulting from any
    amount payable by Landlord to any tenant of the Building resulting solely
    from Landlord's default in its obligations to that tenant.

52. [INSERT IN PARAGRAPH 4(a)(v) AS THE THIRD AND FOURTH SENTENCES ON PAGE 3 OF
    THE LEASE] Actual expenses for the Base Expense Year shall be adjusted to
    equal the greater of Landlord's Expenses (aa) at the actual occupancy rate
    of the Building during the Base Expense Year, or (bb) as though 95% of the
    total area of the Building had been occupied during the Base Expense Year.
    Actual expenses for each subsequent Expense Year shall be adjusted to equal
    Landlord's reasonable estimate of the Expenses had the total area of the
    Building been occupied for such Expense Year.

53. [INSERT IN PARAGRAPH 8(a) AS THE SECOND SENTENCE ON PAGE 6 OF THE LEASE]
    Notwithstanding the foregoing, Tenant shall be permitted to make
    nonstructural alterations to the Premises such as painting, carpeting or
    adding cubicles, up to a maximum of Twenty-Five Thousand Dollars ($25,000)
    per year without Landlord's prior consent but otherwise subject to all other
    terms and conditions of this Paragraph 8.

54. [INSERT IN PARAGRAPH 8(b) AS THE LAST SENTENCE ON PAGE 7 OF THE LEASE]
    Notwithstanding the foregoing, upon the written request of Tenant, either at
    the time Landlord's consent to an alteration, addition or improvement is
    sought by Tenant or prior to Tenant undertaking any alteration, addition or
    improvement where Landlord's consent is not required, Landlord shall specify
    which alterations, additions and improvements will be required to be removed
    by Tenant at the end of the term of the Lease.

55. [INSERT IN PARAGRAPH 11(b) AS THE FOURTH SENTENCE ON PAGE 8 OF THE LEASE] In
    the event the Premises or any portion of the Building necessary for Tenant's
    use and enjoyment of the Premises are damaged by fire, earthquake, act of
    God, the elements or other casualty during the last year of the term of the
    Lease, and in Landlord's opinion, the repair and restoration of the Premises
    or the portion of the Building necessary for Tenant's occupancy, cannot be
    repaired within sixty (60) days after the commencement of repair, Tenant may
    elect by written notice to Landlord within thirty (30) days after Landlord's
    notice of estimated time

                                       2

<PAGE>

    and cost is give, to terminate this Lease effective as of the date of such
    damage and destruction.

56. [INSERT IN PARAGRAPH 12 AS A NEW PARAGRAPH 12(d) ON PAGE 9 OF THE LEASE]

                  12(d)    Landlord shall maintain at all times during the term
    of this Lease: (i) "All-Risk" fire or other casualty insurance with extended
    coverage endorsement, as Landlord deems reasonably necessary, and (ii)
    "Broad-Form" comprehensive general liability insurance covering injuries
    occurring within the Building, except when caused by the negligence or
    willful misconduct of Tenant, its agents, employees, contractors or
    invitees, or Tenant's failure to perform its obligations under this Lease.
    Landlord may, in its sole discretion, obtain and maintain such other
    commercially reasonable coverage as a prudent landlord similarly situated
    might deem necessary or desirable, including, without limitation, earthquake
    coverage, but Landlord shall not be obligated to maintain earthquake or
    flood coverage.

57. [INSERT IN PARAGRAPH 15 AS THE LAST SENTENCE ON PAGE 9 OF THE LEASE]
    Notwithstanding the foregoing and excluding compliance requirements relating
    to improvements made by or for Tenant, Tenant shall not be required to
    undertake any construction or pay at its sole cost and expense to comply
    with the foregoing requirements in the event that such requirements are
    being enforced against the entire Building; provided, however, the cost and
    expense to comply with the foregoing requirements may be included as an
    Expense as otherwise provided in Paragraph 4(a)(v) above.

58. [INSERT IN PARAGRAPH 16 AS A NEW SUBPARAGRAPH 16(c)(5) ON PAGE 10 OF THE
    LEASE]

                  16(c)(5) in the case of subletting, such subletting is of less
    than fifty percent (50%) of the Premises. Notwithstanding the foregoing (and
    without limiting the other instances in which it may be reasonable for
    Landlord to withhold its consent), no more than twice during the term of the
    Lease, Tenant shall have the right to undertake a subletting of 3,500 to
    7,500 rentable square feet of Premises;

59. [THE FOLLOWING SHALL BE INSERTED IN PARAGRAPH 16 AS A NEW PARAGRAPH 16(e) ON
    PAGE 10 OF THE LEASE]

                  16(e).   The provisions of subparagraphs (a) and (b) above
    notwithstanding, no consent by Landlord shall be required for an assignment
    or sublease by Tenant to a Tenant Affiliate or Tenant Successor (a
    "Permitted Transfer" to a "Permitted Transferee"), provided, that, any such
    assignment or subletting to a Tenant Affiliate or Tenant Successor shall be
    subject to the following conditions:

                           (i)      Tenant shall furnish Landlord written notice
         of the assignment or subletting and the identity of the assignee or
         sublessee prior to the effective date of such assignment or subletting;

                           (ii)     Tenant shall furnish Landlord with a
         fully-executed copy of the sublease or assignment instrument, if any,
         and, with respect to any and all assignments (whether to an Tenant
         Affiliate or a Tenant Successor), Landlord shall furnish Tenant with a
         fully-executed copy of an instrument in writing, in form and substance
         satisfactory to Landlord, pursuant to which the assignee assumes all of
         the obligations and liabilities accruing from and after such assignment
         and imposed upon Tenant herein or arising hereunder;

                           (iii)    at the time of the proposed assignment or
         subletting, there shall be no Events of Default under this Lease; and

                           (iv)     in connection with an assignment to a Tenant
         Successor and in the event that Landlord then holds Tenant's security
         deposit in the form of a Letter of Credit, such Tenant Successor shall
         deliver to Landlord either a cash deposit as described in Paragraph 32
         of the Lease or a Letter of Credit as described in Paragraph 64 below
         to replace Tenant's Letter of Credit. Upon Landlord's receipt of the
         cash deposit or the replacement Letter of Credit, Landlord shall
         promptly return the original Letter of Credit to Tenant (or the Tenant
         Successor, in the event that original Tenant ceases to exist as a
         separate entity).

                                       3

<PAGE>

                  In no event shall a subletting or assignment to a Permitted
         Transferee release or relieve Tenant of any of its obligations under
         this Lease. For purposes hereof, (i) "Tenant Affiliate" shall mean
         any corporation, partnership or other entity which controls, is
         controlled by or is under common control with Tenant; (ii) "Tenant
         Successor" shall mean any entity which acquires all or substantially
         all of the stock or assets of Tenant or any entity into which Tenant
         may become merged or consolidated or any other non-bankruptcy
         reorganization; and (iii) "control" in this context shall mean the
         right directly or indirectly to exercise in excess of fifty percent
         (50%) of the voting or governing power of an entity.

                  In addition to the foregoing, a sale or transfer of all or any
         portion of the capital stock of Tenant shall be permitted without the
         consent of Landlord if (a) such sale or transfer occurs in connection
         with a bona fide financing or capitalization for the benefit of Tenant
         and does not result in a change of use of the Premises, or (b) Tenant
         becomes a publicly traded company; provided, that, in the event of a
         sale or transfer of a Controlling interest in Tenant or a public
         offering, Tenant shall furnish Landlord with prior written notice.

60. [THE FOLLOWING SHALL BE INSERTED IN PARAGRAPH 26 AS A NEW PARAGRAPH 26(c) ON
    PAGE 15 OF THE LEASE]

                  26(c)    As of the date of this Lease, there are no mortgages,
         deeds of trust or ground leases encumbering the Building or real
         property on which the Building is located. In connection with any
         future lienholders, upon Tenant's request, Landlord shall use
         commercially reasonable efforts (which excludes Landlord's obligation
         to expend any monies or undertake any increase in liability in
         connection therewith) to obtain from the then current lienholder on the
         Building a non-disturbance agreement in favor of Tenant in the form
         customarily used by such lienholder, provided that this Lease shall
         continue in full force and effect, and Landlord shall have no
         responsibility to Tenant, if one or more of such lienholders is
         unwilling to execute such agreement.

61. [THE FOLLOWING SHALL BE INSERTED IN PARAGRAPH 36 AS A NEW PARAGRAPH 36 ON
    PAGE 16 OF THE LEASE]

                  36       Tenant hereby represents and warrants that it is a
         duly authorized and existing corporation, that Tenant has been and is
         qualified to do business in California, and that the corporation has
         full right and authority to enter into this Lease. The persons
         executing this Lease on behalf of Tenant represent and warrant that
         they are authorized to do so.

62. [THE FOLLOWING SHALL BE INSERTED IN PARAGRAPH 39 AT THE END OF THE SIXTH
    SENTENCE ON PAGE 16 OF THE LEASE] but in no event more than annually (except
    in the event that there is a default by Tenant under this Lease) and such
    financial information shall be kept confidential by Landlord; provided that
    Landlord shall have the right to deliver the same to a potential purchaser
    of the Building or a potential encumbrancer of the Building, or its
    attorneys and accountants, as necessary, subject to their agreement to
    maintain the confidentiality of such information.

63. [THE FOLLOWING SHALL BE INSERTED IN PARAGRAPH 41 AS THE LAST SENTENCE ON
    PAGE 17 OF THE LEASE] Notwithstanding anything to the contrary contained in
    this Paragraph 41, Landlord shall not have the right to require Tenant to
    relocate during the following periods of any year during the term of the
    Lease: (a) the eight (8) week period immediately preceding Christmas Day and
    Christmas Day; and (b) the three (3) week period immediately preceding
    Valentine's Day, Mother's Day, Father's Day (and those holidays). Landlord
    shall also be responsible to reimburse Tenant for all other reasonable
    out-of-pocket costs directly related to such relocation, including without
    limitation, costs of stationary and business cards and other promotional
    materials, containing the address of Tenant, costs of cabling and rewiring
    the new space, and the costs of connecting telephone, electrical service and
    other utilities, if any.

64. LETTER OF CREDIT. In lieu of the cash deposit described in Paragraph 32 of
    the Lease, Tenant shall, upon signing this Lease, deliver to Landlord an
    irrevocable and unconditional Letter of Credit (the "Letter of Credit")
    governed by the Uniform Customs and Practice for

                                       4

<PAGE>

    Documentary Credits (1993 revisions), International Chamber of Commerce
    Publication No. 500, as revised from time to time, in the amount of
    $320,000.00 issued to Landlord, as beneficiary, in form and substance
    satisfactory to Landlord, by a bank (an "Approved Bank") approved by
    Landlord qualified to transact banking business in California with an office
    in the City and County of San Francisco, San Mateo County, or Santa Clara
    County at which drafts drawn on the Letter of Credit may be presented for
    payment. The full amount of the Letter of Credit shall be available to
    landlord upon presentation of Landlord's sight draft accompanied only by the
    Letter of Credit and Landlord's signed statement that Landlord is entitled
    to draw on the Letter of Credit pursuant to this Lease. Tenant shall
    maintain the Letter of Credit for the entire term of this Lease, subject
    only to reduction in the amount of the Letter of Credit as provide in this
    Paragraph. The Letter of Credit shall expressly state that the Letter of
    Credit and the right to draw thereunder may be transferred or assigned by
    Landlord to any successor or assignee of Landlord under this Lease. Tenant
    shall pay any fees related to the issuance or amendment of the Letter of
    Credit, including without limitation, any transfer fees.

    The Letter of Credit shall also provide that it shall be deemed
    automatically renewed, without amendment, for consecutive periods of one (1)
    year each during the term of this Lease (plus a period of thirty (30) days
    after the Term Expiration Date), unless the Approved Bank sends written
    notice ("Issuer Notice") to Landlord by any method specified in Paragraph
    34 of the Lease, not less that sixty (60) days next preceding the then
    expiration date of the Letter of Credit that it elects not to have such
    Letter of Credit renewed. If Landlord receives an Issuer Notice, and not
    later than thirty (30) days prior to the expiry date of the Letter of Credit
    Tenant fails to furnish Landlord with a replacement Letter of Credit
    pursuant to the terms and conditions of this Paragraph 64, then Landlord
    shall have the right to draw the full amount of the Letter of Credit, by
    sight draft, and shall hold the proceeds of the Letter of Credit as a cash
    security deposit pursuant to the terms and conditions of Paragraph 32 of the
    Lease.

    Notwithstanding the foregoing, in the event that there is no Event of
    Default by Tenant on the commencement of the Third, Fourth and Fifth Lease
    Years, as applicable, and there have been no more than one previous Events
    of Default by Tenant under this Lease, Tenant shall have the right, at its
    sole cost and expense, to obtain an amendment to the Letter of Credit in
    each of said Lease Years which reduces the amount of the Letter of Credit so
    that the amount of the Letter of Credit for said Lease years is as follows:

<TABLE>
<S>               <C>
Lease Year 3      $ 240,000.00

Lease Year 4      $ 160,000.00

Lease Year 5      $  80,000.00
</TABLE>

65. OPTION TERM. Landlord hereby grants to the originally named Tenant and a
    Tenant Affiliate to whom Tenant has assigned the Lease (the "Optionee"),
    one (1) option ("Option") to extend the Lease term for a period of five
    (5) years (an "Option Term"), which Option shall be exercisable only by
    written notice delivered by Optionee to Landlord as provided below, and
    shall be on the terms and conditions set forth in this Paragraph 65.
    Anything herein to the contrary notwithstanding, if there is an Event of
    Default under the Lease, whether at the time Optionee gives Landlord notice
    of its exercise of the Option, or at the time of the commencement date of
    the Option Term, the Option shall automatically terminate and become null
    and void. The rights contained in this Paragraph 65 shall be personal to
    Optionee, and may only be exercised by Optionee (and not any sublessee or
    transferee or any other assignee or successor of Tenant's interest in or to
    this Lease) and are conditioned upon Optionee occupying the entire Premises
    both at the time Optionee gives Landlord notice of its exercise of the
    Option and at the time of the commencement date of the Option Term.

                  (a) Exercise of option: The Option contained in this Paragraph
    65, shall be exercised by Optionee, if at all, and only in the following
    manner: (i) Optionee shall deliver written notice to Landlord not more than
    twelve (12) months nor less than nine (9) months prior to the expiration of
    the then current Lease term, stating that Optionee is exercising its
    Option. Upon the proper exercise of each such Option, the Lease term, as it
    applies to the Premises, shall be extended for the term of the Option Term
    upon all of the terms and conditions of the Lease, provided that (i) the
    Base Rent and additional rent for the Option Term shall be the "Fair Market
    Rent" for the Premises determined as provided in

                                       5

<PAGE>

subparagraph (b) below, (ii) the Expense Base Year and the Tax Base Year shall
be the calendar year in which the Option Term commences, (iii) Optionee shall
have no further right to extend the term of this Lease (i.e., beyond the one (1)
five year Option Term), and (iv) the Premises shall be accepted by Optionee in
its "as is" condition with no tenant improvements to be built by Landlord.

                  (b) Fair Market Rent. The Base Rent and additional rent
payable by Optionee during the Option Term (the "Fair Market Rent") shall be
equal to the effective base rent and additional rent, including all escalations,
at which, as of the commencement of the Option Term, tenants are leasing
non-sublease, non-encumbered, non-equity full service space comparable in size,
location and quality to the Premises for a term of five (5) years, which
comparable space is located in other Class "A" buildings of comparable quality
in the San Francisco North and South of Market Financial area and which tenants
are of similar credit standing with Optionee at the time of renewal, and for
comparable terms pursuant to leases entered into or renewed by such other
tenants on or about the commencement of the Option Term, provided that in no
event shall the monthly Base Rent for the Option Term be less than the monthly
Base Rent during the last twelve months of the initial lease term. The effective
rental rate shall be calculated by taking into consideration the following
concessions and no other concessions: (i) rental abatement concessions, if any,
provided in connection with such comparable space; (ii) tenant improvements or
allowances provided or to be provided by the landlord for such comparable space,
taking into account, and deducting the value of, the then existing improvements
in the Premises, such value to be based on the age, quality and layout of the
improvements and the extent to which the same can be utilized by Optionee based
on the fact that the precise tenant improvements existing in the Premises are
specifically suitable to Optionee; (iii) any other customary and ordinary
material economic office rental market concessions and inducements.

                  Notwithstanding the foregoing, if in determining the Fair
Market Rent, the parties and/or appraisers determine that the economic terms of
the Fair Market Rent include a tenant improvement allowance, Landlord may elect
either to: (1) grant some or all of the value of the tenant improvement
allowance as an allowance for the refurbishment of the Premises, or (2) reduce
the Base Rent component of the Fair Market Rent to be an effective rental rate
that takes into consideration the total dollar value of that portion of the
tenant improvement allowance that Landlord has elected not to grant to Tenant
pursuant to clause (1) above.

                  (d) Determination of Option Rent. Not later than six (6)
months prior to the expiration of the then current Lease term, Landlord shall
notify Optionee in writing of Landlord's estimate of the Fair Market Rent the
applicable Option Term, based on the provisions of subparagraph (c) above.
Within thirty (30) days after receipt of such notice from Landlord, Optionee
shall have the right either to (a) accept Landlord's statement of Fair Market
Rent; or (b) elect to determine the Fair Market Rent pursuant to an appraisal
process to be conducted pursuant to the provisions of subparagraph (e) below
(the "appraisal"). Failure on the part of Optionee to elect such appraisal
process within such thirty (30) day period shall constitute acceptance of the
Fair Market Rent for the Option Term as calculated by Landlord. If Optionee
elects to determinate the Fair Market Rent pursuant to the appraisal process,
the appraisal shall be concluded within ninety (90) days after the date of
Optionee's election, subject to extension for an additional thirty (30) day
period if a third appraiser is required and does not act in a timely manner. To
the extent that the appraisal has not been completed prior to the expiration of
any preceding period for which Option has been determined, Optionee shall pay
Base Rent and additional rent at the rate calculated by Landlord, with an
adjustment to be made once the Fair Market Rent is ultimately determined by such
appraisal.

                  (e) In the event that Optionee elects to determine the Fair
Market Rent pursuant to an appraisal process, the appraisal process shall be
conducted as follows:

                           (i)      Optionee shall make a demand for an
appraisal in writing within thirty (30) days after service of Landlord's
determination of Fair Market Rent given under subparagraph (d) above, specifying
therein the name and address of the person to act as the appraiser on its
behalf. The appraiser shall be qualified as a real estate appraiser (and shall
be a member of the American Institute of Real Estate Appraisers (MAI) or any
comparable successor organization) with at least five (5) years professional
experience and shall be

                                       6

<PAGE>

familiar with the rental value of first-class commercial office space in the San
Francisco South of Market area. Failure on the part of Optionee to make a proper
demand and appointment in a timely manner for such appraisal shall constitute a
waiver of the right thereto. Within fifteen (15) days after the service of the
demand for such appraisal, Landlord shall give notice to Optionee, specifying
the name and address of the person designated by Landlord to act as the
appraiser on its behalf who shall be similarly qualified.

                           (ii)     In the event that two appraisers are chosen
pursuant to subparagraph (i) above, the appraisers so chosen shall, within ten
(10) business days after the second appraiser is appointed, determine the Fair
Market Rent. If the two appraisers are unable to agree upon a determination of
Fair Market Rent within such ten (10) business day period, they, themselves,
shall appoint a third appraiser, who shall be a competent and impartial person
with qualifications similar to those required of the first two appraisers
pursuant to subparagraph (i) above. In the event they are unable to agree upon
such appointment within fifteen (15) days after expiration of said ten (10)
business day period, the third appraiser shall be selected by the parties
themselves, if they can agree thereon, within a further period of fifteen (15)
days. If the parties do not so agree, then either party, on behalf of both, may
request appointment of such a qualified person by the then Presiding Judge of
the Superior Court in and for the City and County of San Francisco, acting in
his private and not in his official capacity, and the other party shall not
raise any question as to such Judge's full power and jurisdiction to entertain
the application for and make the appointment.

                           (iii)    Where the Fair Market Rent cannot be
resolved by agreement between the two appraisers selected by Landlord and
Optionee or settlement between the parties during the course of the appraisal
process, the Fair Market Rent shall be determined by the three appraisers within
ten (10) business days of the appointment of the third appraiser in accordance
with the following procedure: The appraiser selected by each of the parties
shall state in writing his or her determination of the Fair Market Rent
supported by the reasons therefor with counterpart copies to each party. The
appraisers shall arrange for a simultaneous exchange of such proposed
resolutions. The role of the third appraiser shall be to select which of the two
proposed resolutions most closely approximates his or her determination of the
Fair Market Rent. The third appraiser shall have no right to propose a middle
ground or any modification of either of the two proposed resolutions. The
resolution he or she chooses as most closely approximating his or her
determination shall constitute the decision of the appraisers and be final and
binding upon the parties.

                           (iv)     In the event of a failure, refusal or
inability of any appraiser to act, his or her successor shall be appointed by
him or her, but in the case of the third appraiser, his or her successor shall
be appointed in the same manner as provided for appointment of the third
appraiser. Any decision in which the appraiser appointed by Landlord and the
appraiser appointed by Optionee concur shall be binding and conclusive upon the
parties. Each party shall pay the fee and expenses of its respective appraiser
and both shall share the fee and expenses of the third appraiser, if any.

                  (f)      If the Optionee timely exercises an Option as set
forth herein pursuant to the terms and conditions of this Paragraph 65, Landlord
and Optionee shall promptly execute an amendment to this Lease which shall
confirm the Option Term, Basic Rent, and if necessary, add a new Tenant
Improvement Work Letter (substantially in the form attached hereto as EXHIBIT C
modified to reflect the terms of this Paragraph 65).

66. GROSS NEGLIGENCE. The term "gross negligence" as used in this Lease shall
    mean "any action or inaction taken with a reckless disregard for the
    consequences ".

67. RATIFICATION OF LEASE: Landlord and Tenant hereby ratify and confirm all of
    the provisions of the Lease as amended by this Addendum.

68. TIME IS OF THE ESSENCE: Time is of the essence of the Lease Agreement and
    each of its provisions.

                                       7

<PAGE>

                  IN WITNESS WHEREOF, Landlord and Tenant have entered into this
Addendum as of the date of the Lease.

TENANT:                                            LANDLORD:

911 gifts.com                                      THE EQUITABLE LIFE ASSURANCE
a Delaware corporation                             SOCIETY OF THE UNITED STATES,
                                                   a New York corporation

By: /s/ [ILLEGIBLE]                                By: /s/ [ILLEGIBLE]
   -----------------------                            --------------------------

Its:     COO                                       Its:  INVESTMENT OFFICER

By: /s/ [ILLEGIBLE]
   -----------------------

Its:     SVP BUS. DEV.

                                       8

<PAGE>

                                    EXHIBIT A

                             FLOOR PLANS OF PREMISES

                                       5

<PAGE>

[201 SPEAR STREET TERRACE PLAN]

<PAGE>

                             RULES AND REGULATIONS

         1.       The ?ILLEGIBLE? halls, passages, exits, entrances, shopping
malls, elevators, escalators and stairways of the Building shall not be
obstructed by any of the tenants or used by them for any purpose other than for
ingress to and egress from their respective premises. The halls, passages,
exits, entrances, shopping malls, elevators, escalators and stairways are not
for the general public, and Landlord shall in all cases retain the right to
control and prevent access thereto of all persons whose presence in the judgment
of Landlord would be prejudicial to the safety, character, reputation and
interests of the Building and its tenants, provided that nothing herein
contained shall be construed to prevent such access to persons with whom any
tenant normally deals in the ordinary course of its business, unless such
persons are engaged in illegal activities. No tenant and no employee or invitee
of any tenant shall go upon the roof of the Building except such roof or portion
thereof as may be contiguous to the premises of a particular tenant and may be
designated in writing by Landlord as a roof deck or roof garden area.

         2.       No sign, placard, picture, name, advertisement or notice
visible from the exterior of any tenant's premises shall be inscribed, painted,
affixed or otherwise displayed by any tenant on any part of the Building without
the prior written consent of Landlord. Landlord will adopt and furnish to
tenants general guidelines relating to signs inside the Building on the office
floors. Each tenant shall conform to such guidelines, but may request approval
of Landlord for modifications, which approval will not be unreasonably withheld.
All approved signs or lettering on doors shall be printed, painted, affixed or
inscribed at the expense of the Tenant by a person approved by Landlord, which
approval will not be unreasonably withheld. Material visible from outside the
Building will not be permitted.

         3.       Their Premises shall not be used for the storage of
merchandise held for sale to the general public or for lodging. No cooking shall
be done or permitted by any tenant on the premises, except that use by the
tenant of food and beverage vending machines and Underwriters' Laboratory
approved microwave ovens and equipment for brewing coffee, tea, hot chocolate
and similar beverages shall be permitted, provided that such use is in
accordance with all applicable federal, state and city laws, codes, ordinances,
rules and regulations.

         4.       No tenant shall employ any person or persons other than
Landlord's janitorial service for the purpose of cleaning the premises, unless
otherwise approved by Landlord. No person or persons other than those approved
by Landlord shall be permitted to enter the Building for the purpose of cleaning
the same. No tenant shall cause any unnecessary labor by reason of such tenant's
carelessness or indifference in the preservation of good order and cleanliness.
Janitor service will not be furnished on nights when rooms are occupied after
9:30 P.M. unless, by prior arrangement with Landlord, service is extended to a
later hour for specifically designated rooms.

         5.       Landlord will furnish each tenant, free of charge, with two
keys to each door lock in its premises. Landlord may make a reasonable charge
for any additional keys. No tenant shall have any keys made. No tenant shall
alter any lock or install a new or additional lock or any bolt on any door of
its premises without the prior consent of Landlord. The tenant shall in each
case furnish Landlord with a key for any such lock. Each tenant, upon the
termination of its tenancy, shall deliver to Landlord all keys to doors in the
Building which shall have been furnished to the tenant.

         6.       The freight elevator shall be available for use by all tenants
in the Building, subject to such reasonable scheduling as Landlord in its
discretion shall deem appropriate. The persons employed to move such equipment
in or out of the Building must be acceptable to Landlord. Landlord shall have
the right to prescribe the weight, size and position of all equipment,
materials, furniture or other property brought into the Building. Heavy objects
shall, if considered necessary by Landlord, stand on wood strips of such
thickness as is necessary to properly distribute the weight. Landlord will not
be responsible for loss of or damage to any such property from any cause, and
all damage done to the Building by moving or maintaining such property shall be
repaired at the expense of the tenant.

         7.       No tenant shall use or keep in the premises or the Building
any kerosene, gasoline or inflammable or combustible fluid or material other
than limited quantities thereof reasonably necessary for the operation or
maintenance of office equipment, or, without Landlord's prior approval, use any
method of heating or air conditioning other than that supplied by Landlord.

19

<PAGE>

                             RULES AND REGULATIONS

No tenant shall use or keep or permit to be used or kept any form of noxious gas
or substance in the premises, or permit or suffer the premises to be occupied or
used in a manner offensive or objectionable to Landlord or other occupants of
the Building by reason of noise, odors or vibrations, or interfere in any way
with other tenants or those having business therein.

         8.       Landlord shall have the right, exercisable without notice and
without liability to any tenant, to change the name and street address of the
Building.

         9.       Landlord reserves the right to exclude from the Building
between the hours of 6 P.M. and 7 A.M. and at all hours on Saturdays, Sundays
and legal holidays all persons who do not present a pass signed by Landlord to
the Building. Landlord will furnish passes to persons for whom any tenant
requests the same in writing. Each tenant shall be responsible for all persons
for whom it requests passes and shall be liable to Landlord for all acts of such
persons. Landlord shall in no case be liable for damages for any error with
regard to the admission to or exclusion from the Building of any person. In the
case of invasion, mob, riot, public excitement or other circumstances rendering
such action advisable in Landlord's opinion, Landlord reserves the right to
prevent access to the Building during the continuance of the same by such action
as Landlord may deem appropriate.

         10.      The directory of the Building will be provided for the display
of the name and location of tenants and a reasonable number of the principal
officers and employees of tenants, and Landlord reserves the right to exclude
any other names therefrom. Any additional name which a tenant desires to have
added to the directory shall be subject to Landlord's approval and may be
subject to a charge therefor.

         11.      No curtains, draperies, blinds, shutters, shades, screens or
other coverings, hangings or decorations shall be attached to, hung or placed
in, or used in connection with any exterior window in the Building without the
prior consent of Landlord. If consented to by Landlord, such items shall be
installed on the office side of the standard window covering and shall in no way
be visible from the exterior of the Building.

         12.      Messenger services and suppliers of bottled water, food,
beverages, and other products or services shall be subject to such reasonable
regulations as may be adopted by Landlord. Landlord may establish a central
receiving station in the Building for delivery and pick-up by all messenger
services, and may limit delivery and pick-up at tenant premises to Building
personnel.

         13.      Each tenant shall see that the doors of its premises are
closed and locked and that all water faucets or apparatus, cooking facilities
and office equipment (excluding office equipment required to be operative at all
times) are shut off before the tenant or its employees leave the premises at
night, so as to prevent waste or damage, and for any default or carelessness in
this regard the tenant shall be responsible for any damage sustained by other
tenants or occupants of the Building or Landlord. On multiple-tenancy floors,
all tenants shall keep the doors to the, Building corridors closed at all times
except for ingress and egress.

         14.      The toilets, urinals, wash bowls and other restroom facilities
shall not be used for any purpose other than that for which they were
constructed, no foreign substance of any kind whatsoever shall be thrown therein
and the expense of any breakage, stoppage or damage resulting from the violation
of this rule shall be borne by the tenant who, or whose employees or invitees,
shall have caused it.

         15.      Except with the prior consent of Landlord, no tenant shall
sell, or permit the sale at retail, of newspapers, magazines, periodicals,
theatre tickets or any other goods or merchandise to the general public in or on
the premises, nor shall any tenant carry on, or permit or allow any employee or
other person to carry on, the business of stenography, typewriting or any
similar business or from the premises for the service or accommodation of
occupants of any other portion of the Building, nor shall the premise of any
tenant be used for manufacturing of any kind, or any business or activity other
than that specifically provided for in such tenant's lease.

         16.      No tenant shall install any antenna, loudspeaker, or other
device on the roof or exterior walls of the Building.

20

<PAGE>

                            RULES AND REGULATIONS

         17.      There shall not be used in any portion of the Building, by any
tenant or its invitees, any hand trucks or other material handling equipment
except those equipped with rubber tires and side guards unless otherwise
approved by Landlord.

         18.      Each tenant shall store its refuse within its premises. No
material shall be placed in the refuse boxes or receptacles if such material is
of such nature that it may not be disposed of in the ordinary and customary
manner of removing and disposing of refuse in the City and County of San
Francisco without being in violation of any law or ordinance governing such
disposal. All refuse disposal shall be made only through entryways and elevators
provided for such purposes and at such times as Landlord shall designate.

         19.      Canvassing, peddling, soliciting, and distribution of
handbills or any other written materials in the Building are prohibited, and
each tenant shall cooperate to prevent the same.

         20.      The requirements of the tenants will be attended to only upon
application by telephone or in person at the office of the Building. Employees
of Landlord shall not perform any work or do anything outside of their regular
duties unless under special instructions from Landlord.

         21.      Landlord may waive any one or more of these Rules and
Regulations for the benefit of any particular tenant or tenants, but no such
waiver by Landlord shall be construed as a wavier of such Rules and Regulations
in favor of any other tenant or tenants, nor prevent Landlord from thereafter
enforcing any such Rules and Regulations against any or all of the tenants of
the Building.

         22.      These Rules and Regulations are in addition to, and shall not
be construed to in any way modify or amend, in whole or in part, the terms,
covenants, agreements and conditions of any lease of premises in the Building.

         23.      Landlord reserves the right to make such other and reasonable
rules and regulations as in its judgment may from time to time be needed for the
safety, care and cleanliness of the Building, and for the preservation of good
order therein.

21

<PAGE>

                                    EXHIBIT C

                         TENANT IMPROVEMENT WORK LETTER

                  This EXHIBIT C is made to be a part of that certain Office
Lease between THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES, a New
York corporation ("Landlord"), and 911GIFTS.COM, a Delaware corporation
("Tenant"), dated as of September 1, 1999 (the "Lease"). To the extent there is
any inconsistency between the terms and provisions of the Lease and the terms
and provisions of this EXHIBIT C, this EXHIBIT C shall govern and control. All
capitalized words used herein which have defined meanings in the Lease shall
have the same defined meanings herein. Landlord and Tenant have agreed as
follows:

                  1.       TENANT ACCEPTS PREMISES IN "AS IS" CONDITION. As of
the Term Commencement Date, Landlord shall deliver possession of the Premises to
Tenant broom and vacuum clean, free of all occupants and personal property, and
Tenant shall accept possession of the Premises in their "AS IS" condition,
except as aforesaid. Tenant acknowledges and agrees that Tenant and its
representatives have inspected the Premises and all of its structural and
mechanical elements and that Tenant is satisfied with the condition thereof. The
Lease, shall become effective with respect to the Premises upon the Term
Commencement Date. Tenant's obligation to pay Base Rent for the Premises shall
commence upon the Rent Commencement Date, as described in the Basic Lease
Information. Except as specifically provided below or in the Lease, Landlord has
no obligation and has made no promise to alter, remodel, improve, repair,
decorate or paint the Premises or any part of the Premises, or to pay for any
such work, and neither Landlord nor Landlord's agents have made any
representations to Tenant with respect to the condition of the Premises.

                  2.       CONSTRUCTION OF TENANT IMPROVEMENTS. Tenant shall
substantially complete any and all alterations of, or improvements to, the
Premises (the "Tenant Improvements"), in accordance with the Final Plans (as
defined below) submitted to and approved by Landlord. The Tenant Improvements
shall be made and performed in a safe and workmanlike manner, using only
first-class materials, in compliance with the minimum Building standard
specification for interior tenant improvements developed by Landlord for uniform
application in the Building, and in accordance with the provisions of the
following provisions of this EXHIBIT C:

                  (a)      No work with respect to the Tenant Improvements shall
         proceed without Landlord's reasonable prior written approval of:

                           (1)      Tenant's contractor(s) and subcontractor(s)
                  selected from a list of contractors and subcontractors
                  approved by Landlord;

                           (2)      certificates of insurance furnished to
                  Landlord from a company or companies approved by Landlord

                                    (i)      by Tenant's general contractor,
                           evidencing commercial general liability insurance
                           (with contractual liability and products and
                           completed operations coverages) with a minimum
                           combined single limit for bodily injury and property
                           damage in an amount not less than Two Million Five
                           Hundred Thousand Dollars ($2,500,000) per occurrence,
                           endorsed to name Landlord, Landlord's managing agent
                           and any other party designated by Landlord as an
                           additional insured, and workers' compensation
                           insurance, as required by law;

                                    (ii)     by any and all subcontractors,
                           evidencing commercial general liability insurance
                           (with contractual liability and products and
                           completed operations coverages) with a minimum
                           combined single limit for bodily injury and property
                           damage in an amount not less than One Million Dollars
                           ($1,000,000) per occurrence, endorsed name Landlord,
                           Landlord's managing agent and any other party
                           designated by Landlord as an additional insured, and
                           workers' compensation insurance, as required by law;
                           and

                                      C-1

<PAGE>

                                    (iii)    by Tenant evidencing builder's risk
                           insurance with respect to the Tenant Improvements, in
                           such amounts as are deemed reasonable by Landlord,
                           and workers' compensation insurance, as required by
                           law; and

                           (3)      detailed plans and specifications for such
                  work, prepared by a licensed architect approved in writing by
                  Landlord (the "Tenant's Architect"), which indicate that such
                  work will not exceed the design load capacities and
                  performance criteria of the Building, including, without
                  limitation, its electrical, HVAC and weight capacities, and
                  construction means and methods.

                  (b)      Except as otherwise expressly provided herein, the
         Tenant Improvements shall be undertaken at Tenant's sole cost and
         expense and in strict conformance with all applicable laws,
         regulations, building codes and the requirements of any building permit
         and all other applicable permits or licenses issued with respect to
         such work. Tenant shall be solely responsible for obtaining all such
         permits and licenses from the appropriate governmental authorities, and
         any delay in obtaining such permits or licenses shall not be deemed to
         extend the commencement date or the expiration date of the term of the
         Lease or to waive or toll Tenant's rental and other obligations with
         respect to the Premises. Copies of all permits and licenses shall be
         furnished to Landlord before any work is commenced, and any work not
         acceptable to any governmental authority or agency having or exercising
         jurisdiction over such work, or not reasonably satisfactory to
         Landlord, shall be promptly replaced and corrected at Tenant's expense.

                  (c)      Tenant shall provide Landlord with a construction
         schedule and all revisions thereto. All work by Tenant shall be
         scheduled through Landlord and shall be diligently and continuously
         pursued from the date of its commencement through its completion.
         Landlord hereby agrees to use its reasonable efforts to facilitate such
         work and to ensure access by Tenant to and availability to Tenant of
         all freight elevators and all such similar facilities necessary to
         facilitate such work, subject, however, to the rules and regulations
         established by Landlord for construction work in the Building. All work
         shall be conducted in a manner that maintains harmonious labor
         relations and does not unreasonably interfere with or delay any other
         work or activities being carried out by Landlord in the Building.
         Landlord or Landlord's agent shall have the right to enter the Premises
         and inspect the Premises and the Tenant Improvements at all reasonable
         times during the construction of the Tenant Improvements.

                  (d)      Tenant shall cause the Tenant's Architect to prepare
         and submit to Landlord for its approval complete architectural plans,
         drawings and specifications for all Tenant Improvements, including,
         without limitation, complete engineered mechanical and electrical
         working drawings for the Premises, showing the subdivision, layout,
         finish and decoration work desired by Tenant therefor, and any internal
         or external communications or special utility facilities which will
         require installation of conduits or other improvements within common
         areas, all in such form and in such detail as may be required by
         Landlord. Such complete plans, drawings and specifications are referred
         to herein as "Final Plans". Tenant shall submit the Final Plans for the
         approval of Landlord. Within seven (7) business days after Landlord
         receives the Final Plans for approval, Landlord shall give its written
         approval of the Final Plans, or provide Tenant with specific written
         objections to the Final Plans.

                           If Landlord objects to the Final Plans, Landlord
         shall make itself available to meet with Tenant and the Tenant's
         Architect within five (5) business days after said objection to resolve
         the objections and to deliver to the Tenant's Architect such
         information as may be necessary to enable the Tenant's Architect to
         cause the Final Plans to be revised consistent with Landlord's
         objections. No delay in the scheduling of completion of the Tenant
         Improvements resulting from Landlord's timely review, revision and
         approval of the Final Plans shall be deemed to extend the commencement
         date or expiration date of the term of the Lease or waive or toll
         Tenant's rental obligations with respect to the Premises. In the event
         that Tenant and/or its contractors and subcontractors desire to change
         the Final Plans subsequent to approval by Landlord, Tenant shall
         provide notice of such proposed change to Landlord for Landlord's
         written

                                      C-2

<PAGE>

         approval, which approval shall be required prior to the implementation
         of such proposed change. Landlord shall approve or disapprove the
         proposed change within five (5) business days after Landlord's receipt
         of all final plans and specifications therefor or within such time
         period after such five (5) business day period which is reasonably
         practical. At the conclusion of construction, Tenant shall cause the
         Tenant's Architect to provide two (2) complete sets of record drawings
         of the Tenant Improvements, as constructed, which shall not materially
         deviate from the Final Plans, and Tenant shall also cause to be
         provided a project closeout package, including, without limitation, a
         punchlist sign-off, project team list, permit cards, unconditional lien
         releases and final construction costs itemized by trade.

                  (e)      Tenant shall enter into a contract (the "General
         Contract") with one of the Bidding Contractors ("Tenant's Contractor")
         for the construction of the Tenant Improvements selected from a list of
         contractors approved by Landlord.

                  (f)      With respect to fire and life safety systems work
         required under the General Contract, Tenant shall cause Tenant's
         Contractor to use either EDS or Simplex. With respect to the
         mechanical, electrical and plumbing engineering required under the
         General Contract, Tenant shall cause Tenant's Contractor to use Glumac.
         Tenant's Contractor may engage such other laborers and suppliers as it
         deems appropriate selected from a list of subcontractors approved by
         Landlord, subject to the provisions of subparagraph (g) below.

                  (g)      Notwithstanding anything to the contrary contained
         herein, all major contractors' and subcontractors' contracts for the
         Tenant Improvements shall be union contracts, and Tenant shall use its
         commercially reasonable efforts to ensure that union labor is employed
         in connection with the design and construction of the Tenant
         Improvements.

                  (h)      Tenant hereby designates Dan Michelini, or any other
         person designated by Tenant from time to time, as its representative in
         connection with the design and construction of the Tenant Improvements,
         and Landlord shall be entitled to rely upon the decisions and
         agreements made by such representative as binding upon Tenant.

                  (i)      Although Landlord has the right to review, request
         revisions to and approve the Final Plans, Landlord's sole interest in
         doing so is to protect the Building and Landlord's interest in the
         Building, and Landlord is not in any way warranting or representing
         that Tenant's Final Plans are suitable for their intended use or comply
         with applicable laws and regulations. Landlord shall have no liability
         whatsoever in connection with Tenant's Final Plans, nor any
         responsibility for any omissions or errors contained therein.
         Accordingly, Tenant shall not rely upon Landlord's approval for any
         purpose other than for the purpose of acknowledging the consent of
         Landlord to proceed with the requested action, and Landlord shall incur
         no liability of any kind by reason of the granting of such approvals.

                  (j)      Nothing in this EXHIBIT C shall affect the
         obligations of Tenant under the Lease with respect to any alterations,
         additions and improvements within the Premises, including, without
         limitation, any obligation to obtain the prior written consent of
         Landlord in connection therewith.

                  3.       TENANT IMPROVEMENT ALLOWANCE. Subject to the terms
and conditions of this Paragraph 3, Landlord shall pay on behalf of Tenant up to
a maximum amount of Fifty Eight Thousand One Hundred Sixty-Six and 25/100
Dollars ($58,166.25) (or a maximum of $3.75 per rentable square foot of
Premises) for the construction of Tenant Improvements in the Premises (the
"Tenant Improvement Allowance"), including without limitation, all
architectural and engineering fees incurred in connection therewith, project and
construction management fees, real property improvements, and all sums payable
to Landlord as provided in Paragraph 4 below. The Tenant Improvement Allowance
shall be paid as follows: upon the presentation of invoices to Landlord from
Tenant or the person performing the work or rendering the services or providing
the materials and such supporting documentation as Landlord may reasonably
require, including, without limitation, identification of the work completed

                                      C-3

<PAGE>

and/or material supplied, mechanic lien releases and certificates of payment
issued by the Tenant's Architect and Tenant's designated representative,
Landlord shall pay such invoices on or before the fifteenth (15th) day of the
following month to the person performing the work or rendering the services or
providing the materials. Notwithstanding anything to the contrary contained
herein or in the Lease, the obligation of Landlord to make any one or more
payments pursuant to the provisions of this Paragraph 3 shall be suspended
without further act of the parties during any such time as there exists an Event
of Default by Tenant under the Lease. The Tenant Improvement Allowance must be
utilized by Tenant, if at all, prior to March 1,2000. As of such date, Tenant
shall forfeit any remaining balance of the Tenant Improvement Allowance that
Tenant has not utilized pursuant to the terms of this EXHIBIT C. Tenant shall
bear the cost of any and all Tenant Improvements to the Premises in excess of
the Tenant Improvement Allowance.

                  4.       REIMBURSEMENT AND COMPENSATION. Tenant shall
reimburse Landlord for any and all reasonable out-of-pocket costs incurred by
Landlord in connection with the design and review of the Final Plans (including,
without limitation, any conceptual plans and/or working drawings related
thereto) for the Tenant Improvements. Landlord may obtain any reimbursement or
compensation required hereunder by deducting the amount of such reimbursement
and/or compensation from the Tenant Improvement Allowance. Landlord will not
charge Tenant a construction management or administrative fee in connection with
the Tenant Improvements.

                  5.       TENANT'S INDEMNITY. Tenant shall indemnify, defend
and hold Landlord harmless from and against any and all claims, liens, expenses,
costs, losses, fines, liabilities and/or damages (including, without limitation,
attorneys' fees and costs) arising out of or in any way connected with the
construction by Tenant of the Tenant Improvements, except to the extent caused
by the gross negligence or willful misconduct of Landlord or its employees,
contractors or agents. Tenant's liability insurance will be primary with respect
to Tenant's indemnity.

                  6.       NOTICE OF NONRESPONSIBILITY. Landlord shall have the
right to post in a conspicuous location on the Premises, as well as record
within the City and County of San Francisco, Notice (s) of Nonresponsibility in
connection with any and all Tenant Improvements constructed by Tenant hereunder.

                  IN WITNESS WHEREOF, the undersigned have executed this EXHIBIT
C concurrently with the execution of the Lease.

911GIFTS.COM,                                      THE EQUITABLE LIFE ASSURANCE
a Delaware corporation                             SOCIETY OF THE UNITED STATES,
                                                   a New York corporation

By: /s/ [ILLEGIBLE]                                By: /s/ [ILLEGIBLE]
    ----------------------                             -------------------------

Its: COO                                           Its: Investment Officer

By: /s/ [ILLEGIBLE]
   -----------------------                         Date: 9-2-99

Its: SVP BUS. DEV

Date: 9/1/99

                                      C-4<PAGE>

                                                                    EXHIBIT 10.8

                               ASSIGNMENT OF LEASE

Upon receipt of $1343.00 from Red Envelope, Inc., I, the undersigned Mission
Valley Christian Fellowship of San Diego, a California Non-profit Religious
Corporation, do hereby assign, transfer and ?ILLEGIBLE? over unto Red Envelope
Inc., all my rights, title and interest in and to the entirety of that certain
lease reference dated November 17,1995 by and between the Four Amigos, a
California Ltd. as Lessor, and Mission Valley Christian Fellowship of San Diego,
a California Non-profit Religious Corporation as Lessee, covering that certain
property and premise situated in the City of San Diego, County of San Diego,
State of California and particularly described as: approximately 2,098 square
feet of office space at 4562-M Alvarado Canyon Road, and said lease is attached
hereto as Exhibit "A", Together with all my right, title and interest in and to
prepaid rent and/or security deposit on said lease, if any. Nothing contained
herein shall relieve Mission Valley Christian Fellowship of San Diego, a
California Non-profit Religious Corporation, as Assignor or Personal
Guarantor(s) of said lease from their liability for said lease. Mission Valley
Christian Fellowship of San Diego, a California Non-profit Religious Corporation
as Assignor and Personal Guarantor(s) shall be fully liable for the rental
obligation, notwithstanding this Assignment of Lease through the ending date of
said lease which is December 31,2003.

Dated this 18 day of APRIL, 2000.

Agreed, Assignor-Lessee: Mission Valley Christian Fellowship of San Diego, a
California Non-profit Religious Corporation

/s/ Leo Giovinetti                                President
--------------------------              --------------------------
Signature                               Title

Print Name Leo Giovinetti               Date 4-18-2000

Agreed, Personal Guarantor of Lease: Jack Forness,

/s/ [ILLEGIBLE]
--------------------------              Date 4/17/00
Signature

Agreed, Personal Guarantor of Lease: Leo Giovenitti,

/s/ Leo Giovinetti
--------------------------              Date 4-18-2000
Signature

<PAGE>

ACCEPTANCE OF ASSIGNMENT OF LEASE

I, Red Envelope, Inc., (Assignee-Lessee) do hereby accept the attached
Assignment of Lease for the Premises more commonly known as 4562-M Alvarado
Canyon Road, San Diego, California which is described as approximately 2,098
?ILLEGIBLE?are feet of industrial space and agree to be additionally liable for
said lease and agree to be bound by all of the conditions and covenants
contained in that certain lease referenced dated November 17, 1995 by and
between Four Amigos, a California Ltd., as Lessor, and Mission Valley Christian
Fellowship of San Diego, a California Non-profit Religious Corporation as
Lessee, referred to on the attached Assignment of Lease, a true copy of said
lease is attached hereto as Exhibit "A" and shall become part of this assignment
agreement. By signing below I acknowledge receipt of lease and that I have read
and agree to be bound by all the terms and conditions of said lease. I, Red
Envelope, Inc. (Assignee-Lessee) promise to pay and be fully liable to Lessor
for the rent payments and operating expenses of said lease due for the Premises
from July 1, 2000 (Assignee-Rent Commencement Date of Assignment) to the Lease
ending date defined as December 31, 2003 to be paid in the manner and at the
times therein specified in said lease. On date of execution of the said
assignment agreement by Lessor, Assignor and Assignee (Execution date) and
occupancy of the Premises I, Assignee will be bound by all other terms,
conditions, provisions and covenants of said lease, including carry insurance
per said lease upon taking occupancy of the premises for tenant improvements and
said terms, conditions, provisions and covenants shall continue to be in full
force and effect until the lease ending date.

Dated this 1 day of MAY, 2000.

Agreed Assignee-Lessee: Red Envelope, Inc.

/s/ [ILLEGIBLE]                                President & COO
------------------------                ------------------------
      Signature                                   Title

                        CONSENT TO ASSIGNMENT OF LEASE

I, Four Amigos, a California Ltd., Lessor, named in the aforementioned lease for
the Premises more commonly known as 4562-M Alvarado Canyon Road, San Diego,
California which is described as approximately 2,098 square feet of industrial
?ILLEGIBLE? which is attached hereto as Exhibit "A ", do hereby consent to the
assignment of said lease to Red Envelope, Inc., ?ILLEGIBLE? the understanding
Assignee-Lessee shall be additionally liable for the rent payment due to Lessor
for the Premises of said lease from Assignee's Rent Commencement date of July 1,
2000 to the lease ending date December 31, 2003. Assignee also shall have the
right to occupy the premises on the date of execution of the said assignment
agreement by Lessor, Assignor and Assignee (Execution date) with proof of
insurance and without rent payment or Operating expense payment until
Assignee-Rent Commencement date of July 1, 2000 and Assignee will be bound by
all other terms, conditions, provisions and covenants of said lease from said
Execution date, and said terms, conditions, provisions and covenants shall
continue to be in full force and effect until the lease ending date. Nothing
contained herein shall relieve Mission Valley Christian Fellowship of San Diego,
a California Non-profit Religious Corporation, as Assignor-Lessee or Personal
Guarantor(s) of said lease from their liability for said lease and the rent and
operating expense payments due for the premises per said lease.

I, Lessor, notwithstanding anything to the contrary in Paragraph #6 of the Lease
hereby consent to the use of the Premises for the general office purposes
including but not limited to use as a 24 hour call center for Internet commerce
business.

I, also, hereby certify that I hold the sum of $1343.00, as a security deposit
under said lease.

All payments of rent currently due under said lease have been paid to May 1,
2000.

The amount of the base monthly rent for the premises is $1463.18 per month plus
Lessee's estimated pro-rata share of the operating expense of the park, with the
with Assignee-Lessee next payment due on July 1, 2000 plus $15 per month HVAC
maintenance contract charge (covers filter changing and belt tightening only).
It shall be Assignor-Lessee's sole responsibility to pay rent and operating
expense for the Premise of said lease for May, 2000 and June, 2000

The monthly rent is payable to: Four Amigos, a California Ltd.
Address: 4607 Mission Gorge Place, San Diego, California 92120

Lessor: Four Amigos, a California Ltd.,     Dated this 5 day of 2, 2000.

/s/ [ILLEGIBLE]
------------------------                           __________________________
Signature                                                    Title

ADDRESS: 4607 Mission Gorge Place, San Diego, California 92120 TELEPHONE: (619)
287-8873

<PAGE>

                                   EXHIBIT "A"

Assignor: /s/ [ILLEGIBLE]                            Assignee: /s/ [ILLEGIBLE]
          ------------------                                   -----------------

                            SECOND AMENDMENT TO LEASE

         SECOND AMENDMENT TO LEASE, dated August 19, 1997, for that certain
lease made by and between FOUR AMIGOS, A CALIFORNIA LIMITED PARTNERSHIP, as
Lessor, and MISSION VALLEY CHRISTIAN FELLOWSHIP OF SAN DIEGO, A CALIFORNIA
NON-PROFIT RELIGIOUS CORPORATION, Lessee, for that certain lease which is
reference dated November 17, 1995, for the premises more commonly known as 4562
Alvarado Canyon Road, Suite M, and described as approximately 2,098 of office
space.

         Lessee and Lessor hereby agrees to extend the lease ending date, as
defined in Paragraph 3.1 of said lease, to December 31, 2003 and agree the Base
monthly rent for the premises shall increase by 3% on January 1, 2002 and
January 1, 2003.

         All other terms and conditions of said lease will remain in full force
and effect.

FOUR AMIGOS                                MISSION VALLEY CHRISTIAN FELLOWSHIP
A CALIFORNIA LTD.                          OF SAN DIEGO, A CALIFORNIA NON-PROFIT
                                           RELIGIOUS CORPORATION

By /s/ [ILLEGIBLE]                         By /s/ [ILLEGIBLE]
   -----------------------                    ---------------------------
           Lessor                                      Lessee

Date      9/16/97                          Date    AUG 20 1997

<PAGE>

                            FIRST AMENDMENT TO LEASE

         FIRST AMENDMENT TO LEASE, dated July 23, 1996, for that certain lease
made by and between FOUR AMIGOS, A CALIFORNIA LIMITED PARTNERSHIP, as Lessor,
and MISSION VALLEY CHRISTIAN FELLOWSHIP OF SAN DIEGO, A CALIFORNIA NON-PROFIT
RELIGIOUS CORPORATION, Lessee, for that certain lease which is reference dated
November 17, 1995, for the premises more commonly known as 4562 Alvarado Canyon
Road, Suite M, and described as approximately 2,098 of office space.

         Lessee and Lessor hereby agree to extend the lease ending date, as
defined in Paragraph 3.1 of said lease one (1) additional year and one (1) month
with the new agreed upon lease ending date being December 31, 2001.

         Lessee agrees to pay base monthly rent for the premises commencing
December 1, 2000 of $1,449.11 per month plus Lessee's pro-rata share of
operating expenses.

         All other terms and conditions of said lease will remain in full force
and effect.

FOUR AMIGOS                                MISSION VALLEY CHRISTIAN FELLOWSHIP
A CALIFORNIA LTD.                          OF SANDIEGO, A CALIFORNIA NON-PROFIT
                                           RELIGIOUS CORPORATION

By /s/ [ILLEGIBLE]                         By /s/ [ILLEGIBLE]
   -----------------------                    ---------------------------
       Lessor                                   Lessee

Date    9/24/96                            Date    8-29-96

<PAGE>
                                   EXHIBIT "A"

Assignor: /s/ [ILLEGIBLE]                    Assignee: /s/ [ILLEGIBLE]
          ----------------                             -------------------

                         STANDARD LEASE -- MULTI-TENANT

1.       PARTIES. This Lease, dated, for reference purposes only, NOVEMBER 17,
1995, is made by and between FOUR AMIGOS, A CA, LTD. (herein called "Lessor")
and MISSION VALLEY CHRISTIAN FELLOWSHIP OF SAN DIEGO, A CALIFORNIA NON-PROFIT
RELIGIOUS CORPORATION (herein called "Lessee").

2.       PREMISES, PARKING AND COMMON AREAS.

         2.1      PREMISES. Lessor hereby leases to Lessee and Lessee leases
from Lessor for the term, at the rental, and upon all of the conditions set
forth herein, real property situated in the County of SAN DIEGO, State of
CALIFORNIA commonly known as 4562-M ALVARADO CANYON ROAD and described as
approximately 2.098 square feet of INDUSTRIAL space, herein referred to as the
"Premises", as may be outlined on an Exhibit attached hereto, including rights
to the Common Areas as hereinafter specified but not including any rights to the
roof of the Premises or to any Building in the Center. The Premises are a
portion of a building, herein referred to as the "Building." The Premises, the
Building, the Common Areas, and the land upon which the same are located, along
with all other buildings and improvements thereon, are herein collectively
referred to as the "Center."

         2.2      VEHICLE PARKING. Lessee shall be entitled to THREE (3) vehicle
parking spaces, unreserved and unassigned, on those portions of the Common Areas
designated by Lessor for parking. Lessee shall not use more parking spaces than
said number. Said parking spaces shall be used only for parking by vehicles no
larger than full size passenger automobiles or pick-up trucks, herein called
"Permitted Size Vehicles." Vehicles other than Permitted Size Vehicles are
herein referred to as "Oversized Vehicles."

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

                  2.2.2 If Lessee permits or allows any of the prohibited
activities described in paragraph 2.2 of this Lease, then Lessor shall have the
right, without notice, in addition to such other rights and remedies that it may
have, to remove or tow away the vehicle involved and charge the cost to Lessee,
which cost shall be immediately payable upon demand by Lessor.

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

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

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

         2.6      COMMON AREAS-CHANGES. Lessor shall have the right, in Lessor's
sole discretion, from time to time:

                  (a) To make changes to the Common Areas, including, without
limitation, changes in the location, size, shape and number of driveways,
entrances, parking spaces, parking areas, loading and unloading areas, ingress,
egress, direction of traffic, landscaped areas and walkways; (b) To close
temporarily any of the Common Areas for maintenance purposes so long as
reasonable access to the Premises remains available; (c) To designate other land
outside the boundaries of the Center to be a part of the Common Areas; (d) To
add additional buildings and improvements to the Common Areas; (e) To use the
Common Areas while engaged in making additional improvements, repairs or
alterations to the Center, or any portion thereof; (f) To do and perform such
other acts and make such other changes in, to or with respect to the Common
Areas and Center as Lessor may, in the exercise of sound business judgment, deem
to be appropriate.

                  2.6.1 Lessor shall at all times provide the parking facilities
required by applicable law and in no event shall the number of parking spaces
that Lessee is entitled to under paragraph 2.2 be reduced.

3.       TERM.

         3.1      TERM. The term of this Lease shall be for FIVE (5) YEARS
commencing on DECEMBER 1, 1995 and ending on NOVEMBER 30, 2000 unless sooner
terminated pursuant to any provision hereof.

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

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

4.       RENT.

         4.1      BASE RENT. Lessee shall pay to Lessor, as Base Rent for the
Premises, without any offset or deduction, except as may be otherwise expressly
?ILLEGIBLE? provided in this Lease, on the 1st day of each month of the term
hereof, monthly payments in advance of $1,069,98 (SEE ADDENDUM 51) plus
operating expenses of $273,12 for a total of $1,343,00. Lessee shall pay
Lessor upon execution hereof $1,343,00 as Base Rent including operating
expenses for DECEMBER, 1995. Rent for any period during the term hereof which is
for less than one month shall be a pro rata portion of the Base Rent. Rent shall
be payable in lawful money of the United States to Lessor at the address stated
herein or to such other persons or at such other places as Lessor may designate
in writing.

         4.2      OPERATING EXPENSES. Lessee shall pay to Lessor during the term
hereof, in addition to the Base Rent, Lessee's Share, as hereinafter defined, of
all Operating Expenses, as hereinafter defined, during each calendar year of the
term of this Lease, in accordance with the following provisions:

                  (a)      "Lessee's Share" is defined, for purposes of this
Lease, as approximately 3,39 percent based on the total square footage of the
project.

                  (b)      "Operating Expenses" is defined, for purposes of this
Lease, as all costs incurred by Lessor, if any, for:

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

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

                                    (bb)     Trash disposal services;

                                    (cc)     Tenant directories;

                                    (dd)     Fire detection systems including
sprinkler system maintenance and repair;

                                    (ee)     Security services;

                                    (ff)     Any other service to be provided by
Lessor that is elsewhere in this Lease stated to be an "Operating Expense;"

                           (ii)     Any deductible portion of an insured loss
concerning any of the items or matters described in this paragraph 4.2;

                           (iii)    The cost of the premiums for the liability
and property insurance policies to be maintained by Lessor under paragraph 8
hereof;

                           (iv)     The amount of the real property tax to be
paid by Lessor under paragraph 10.1 hereof;

                           (v)      The cost of water, gas and electricity to
service the Common Areas;

                           (vi)     Annual account audit plus 10% supervision
fee, based on total annual expenses.

                           (vii)    All other costs of any kind paid or incurred
by Landlord in connection with the operation, the cost of capital improvements
designed to protect the health and safety of the tenants, maintenance, and
management of the Building and the Project including, by way of examples and not
as a limitation upon the generality of the foregoing, costs of repairs and
replacements to improvements within the Project as appropriate to maintain the
Project in first class condition including cost of funding such reasonable
reserves as Landlord deems consistent with good business practice and may
establish to provide for future repairs and replacements, association dues or
any other fees due pursuant to any documents governing the real property on
which the
<PAGE>

building is located, costs of utilities furnished to the Common Areas, sewer
fees, windows, heating, ventilation, air conditioning, maintenance of landscape
?ILLEGIBLE? grounds, maintenance of drives and parking areas, security services
and devices, building supplies, maintenance and replacement to equipment
utilized for operation and maintenance of the Project, insurance premiums,
portions of loss by reason of insurance policy terms, service contracts, costs
of services of independent contractors retained to do work of nature before
referenced, and costs of compensation (including employment taxes and fringe
benefits) of all persons who perform regular and recurring duties connected with
the day-to-day operation and maintenance of the Project, its equipment, the
adjacent walks, landscaped areas, drives, and parking areas, including without
limitation, janitors, floor waxers, window-washers, watchmen, gardeners,
sweepers, and handymen and reasonable costs of management services.

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

                  (d)      Lessee's Share of Operating Expenses shall be payable
by Lessee within ten (10) days after a reasonably detailed statement of actual
expenses is presented to Lessee by Lessor. At Lessor's option, however, an
amount may be estimated by Lessor from time to time of Lessee's Share of annual
Operating Expenses and the same shall be payable monthly or quarterly, as Lessor
shall designate, during each twelve-month period of the Lease term, on the same
day as the Base Rent is due hereunder. In the event that Lessee pays Lessor's
estimate of Lessee's Share of Operating Expenses as aforesaid, Lessor shall
deliver to Lessee within sixty (60) days after the expiration of each calendar
year a reasonably detailed statement showing Lessee's Share of the actual
Operating Expenses incurred during the preceding year. If Lessee's payments
under this paragraph 4.2(d) during said preceding year exceed Lessee's Share as
indicated on said statement, Lessee shall be entitled to credit the amount of
such overpayment against Lessee's Share of Operating Expenses next falling due.
If Lessee's payments under this paragraph during said preceding year were less
than Lessee's Share as indicated on said statement, Lessee shall pay to Lessor
the amount of the deficiency within ten (10) days after delivery by Lessor to
Lessee of said statement.

5.       SECURITY DEPOSIT. Lessee shall deposit with Lessor upon execution
hereof $1,343,00 as security for Lessee's faithful performance of Lessee's
obligations hereunder. If Lessee fails to pay rent or other charges due
hereunder, or otherwise defaults with respect to any provision of this Lease,
Lessor may use, apply or retain all or any portion of said deposit for the
payment of any rent or other charge in default or for the payment of any other
sum to which Lessor may become obligated by reason of Lessee's default, or to
compensate Lessor for any loss or damage which Lessor may suffer thereby. If
Lessor so uses or applies all or any portion of said deposit, Lessee shall
within ten (10) days after written demand therefor deposit cash with Lessor in
an amount sufficient to restore said deposit to the full amount then required of
Lessee. If the monthly rent shall, from time to time, increase during the term
of this Lease, Lessee shall, at the time of such increase, deposit with Lessor
additional money as a security deposit so that the total amount of the security
deposit held by Lessor shall at all times bear the same proportion to the then
current Base Rent as the initial security deposit bears to the initial Base Rent
set forth in paragraph 4. Lessor shall not be required to keep said security
deposit separate from its general accounts. If Lessee performs all of Lessee's
obligations hereunder, said deposit, or so much thereof as has not theretofore
been applied by Lessor, shall be returned, without payment of interest or other
increment for its use, to Lessee (or, at Lessor's option, to the last assignee,
if any, of Lessee's interest hereunder) at the expiration of the term hereof,
and after Lessee has vacated the Premises. No trust relationship is created
herein between Lessor and Lessee with respect to said Security Deposit.

6.       USE.

         6.1      USE. The Premises shall be used and occupied only for MEETING
AND STORAGE AREA or any other use which is reasonably comparable and for no
other purpose.

         6.2      COMPLIANCE WITH LAW.

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

                  (b)      Except as provided in paragraph 6.2(a) Lessee shall,
at Lessee's expense, promptly comply with all applicable statutes, ordinances,
rules, regulations, orders, covenants and restrictions of record, and
requirements of any fire insurance underwriters or rating bureaus, now in effect
or which may hereafter come into effect, whether or not they reflect a change in
policy from that now existing, during the term or any part of the term hereof,
relating in any manner to the Premises and the occupation and use by Lessee of
the Premises and of the Common Areas. Lessee shall not use nor permit the use of
the Premises or the Common Areas in any manner that will tend to create waste or
a nuisance or shall tend to disturb other occupants of the Center.

         6.3      CONDITION OF PREMISES.

                  (a)      Lessor shall deliver the Premises to Lessee clean and
free of debris on the Lease commencement date (unless Lessee is already in
possession) and Lessor warrants to Lessee that the plumbing, lighting, and
loading doors in the Premises shall be in good operating condition on the Lease
commencement date. In the event that it is determined that this warranty has
been violated, then it shall be the obligation of Lessor, after receipt of
written notice from Lessee setting forth with specificity the nature of the
violation, to promptly, at Lessor's sole cost, rectify such violation. Lessee's
failure to give such written notice to Lessor within thirty (30) days after the
Lease commencement date shall cause the conclusive presumption that Lessor has
complied with all of Lessor's obligations hereunder. The warranty contained in
this paragraph 6.3(a) shall be of no force or effect if prior to the date of
this Lease, Lessee was an owner or occupant of the Premises.

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

7.       MAINTENANCE, REPAIRS, ALTERATIONS AND COMMON AREA SERVICES.

         7.1      LESSOR'S OBLIGATIONS. Subject to the provisions of paragraphs
4.2 (Operating Expenses), 6 (Use), 7.2 (Lessee's Obligations) and 9 (Damage or
Destruction) and except for damage caused by any negligent or intentional act or
omission of Lessee, Lessee's employees, suppliers, shippers, customers, or
invitees, in which event Lessee shall repair the damage, Lessor, at Lessor's
expense, subject to reimbursement pursuant to paragraph 4.2, shall keep in good
condition and repair the foundations, exterior walls, structural condition of
interior bearing walls, and roof of the Premises, as well as the parking lots,
walkways, driveways, landscaping, fences, signs and utility installations of the
Common Areas and all parts thereof, as well as providing the services for which
there is an Operating Expense pursuant to paragraph 4.2. Lessor shall not,
however, be obligated to paint the exterior or interior surface of exterior
walls, ?ILLEGIBLE? or shall Lessor be required to maintain, repair or replace
windows, doors or plate glass of the Premises. Lessor shall have no obligation
to make repairs under ?ILLEGIBLE? this paragraph 7.1 until reasonable time after
receipt of written notice from Lessee of the need for such repairs. Lessee
expressly waives the benefits of any statute now or hereafter in effect which
would otherwise afford Lessee the right to make repairs at Lessor's expense or
to terminate this Lease because of Lessor's failure to keep the Premises in good
order, condition and repair. Lessor shall not be liable for damages or loss of
any kind or nature by reason of Lessor's failure to furnish any Common Area
Services when such failure is caused by accident, breakage, repairs, strikes,
lockout, or other labor disturbances or disputes of any character, or by any
other cause beyond the reasonable control of Lessor.

         7.2      LESSEE'S OBLIGATIONS.

                  (a)      Subject to the provisions of paragraphs 6 (Use), 7.1
(Lessor's Obligations), and 9 (Damage or Destruction), Lessee, at Lessee's
expense, shall keep in good order, condition and repair the Premises and every
part thereof (whether or not the damaged portion of the Premises or the means of
repairing the same are reasonably or readily accessible to Lessee) including,
without limiting the generality of the foregoing, all plumbing, including the
replacement of the heating, ventilating and air conditioning systems, electrical
and lighting facilities and equipment within the Premises, fixtures, interior
walls and interior surfaces of exterior walls, ceilings, windows, doors, plate
glass, and skylights located within the Premises. Lessor reserves the right to
procure and maintain the ventilating and air conditioning system maintenance
contract and if Lessor so elects, Lessee shall reimburse Lessor, upon demand,
for the costs thereof.

                  (b)      If Lessee fails to perform Lessee's obligations under
this paragraph 7.2 or under any other paragraph of this Lease, Lessor may enter
upon the Premises after ten (10) days' prior written notice to Lessee (except in
the case of emergency, in which no notice shall be required), perform such
obligations on Lessee's behalf and put the Premises in good order condition and
repair, and the cost thereof together with interest thereon at the maximum rate
then allowable by law shall be due and payable as additional rent to Lessor
together with Lessee's next Base Rent installment.

                  (c)      On the last day of the term hereof, or on any sooner
termination, Lessee shall surrender the Premises to Lessor in the same condition
as received, ordinary wear and tear excepted, clean and free of debris. Any
damage or deterioration of the Premises shall not be deemed ordinary wear and
tear if the same could have been prevented by good maintenance practices. Lessee
shall repair any damage to the Premises occasioned by the installation or
removal of Lessee's trade fixtures, alterations, furnishings and equipment.
Notwithstanding anything to the contrary otherwise stated in this Lease, Lessee
shall leave the air lines, power panels, electrical distribution systems,
lighting fixtures, space heaters, air conditioning, plumbing and fencing on the
Premises in good operating condition.

                                      -2-

<PAGE>

         7.3      ALTERATIONS AND ADDITIONS.

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

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

                  (c)      Lessee shall pay, when due, all claims for labor or
materials furnished or alleged to have been furnished to or for Lessee at or for
use in the Premises, which claims are or may be secured by any mechanic's or
materialmen's lien against the Premises, or the Center, or any interest therein.
Lessee shall give Lessor not less than ten (10) days' notice prior to the
commencement of any work in the Premises, and Lessor shall have the right to
post notices of non-responsibility in or on the Premises or the Building as
provided by law. If Lessee shall, in good faith, contest the validity of any
such lien, claim or demand, then Lessee shall, at its sole expense defend itself
and Lessor against the same and shall pay and satisfy any such adverse judgment
that may be rendered thereon before the enforcement thereof against the Lessor
or the Premises or the Center, upon the condition that if Lessor shall require,
Lessee shall furnish to Lessor a surety bond satisfactory to Lessor in an amount
equal to such contested lien claim or demand indemnifying Lessor against
liability for the same and holding the Premises and the Center free from the
effect of such lien or claim. In addition, Lessor may require Lessee to pay
Lessor's attorneys fees and costs in participating in such action if Lessor
shall decide it is to Lessor's best interest to do so.

                  (d)      All alterations, improvements, additions and Utility
Installations (whether or not such Utility Installations constitute trade
fixtures of Lessee), which may be made on the Premises, shall be the property of
Lessor and shall remain upon and be surrendered with the Premises at the
expiration of the Lease term, unless Lessor requires their removal pursuant to
paragraph 7.3(a). Notwithstanding the provisions of this paragraph 7.3(d),
Lessee's machinery and equipment, other than that which is affixed to the
Premises so that it cannot be removed without material damage to the Premises,
and other than Utility Installations, shall remain the property of Lessee and
may be removed by Lessee subject to the provisions of paragraph 7.2.

         7.4      UTILITY ADDITIONS. Lessor reserves the right to install new or
additional utility facilities throughout the Building and the Common Areas for
the benefit of Lessor or Lessee, or any other lessee of the Center, including,
but not by way of limitation, such utilities as plumbing, electrical systems,
security systems, communication systems, and fire protection and detection
systems, so long as such installations do not unreasonably interfere with
Lessee's use of the Premises.

         INSURANCE; INDEMNITY.

         8.1      LIABILITY INSURANCE - LESSEE. Lessee shall, at Lessee's
expense, obtain and keep in force during the term of this Lease a policy of
Combined Single Limit Bodily Injury and Property Damage insurance insuring
Lessee and Lessor against any liability arising out of the use, occupancy or
maintenance of the Premises and the Center. Such insurance shall be in an amount
not less than $1,000,000.00 per occurrence. The policy shall insure performance
by Lessee of the indemnity provisions of this paragraph 8. The limits of said
insurance shall not, however, limit the liability of Lessee hereunder. The
liability coverage will also include coverage for fire legal liability, with
limits of at least $50,000 and are subject to increase at the discretion of the
Lessor.

         8.2      LIABILITY INSURANCE - LESSOR. Lessor shall obtain and keep in
force during the term of this Lease a policy of Combined Single Limit Bodily
Injury and Property Damage Insurance, insuring Lessor, but not Lessee, against
any liability arising out of the ownership, use, occupancy or maintenance of the
Center in an amount not less than $1,000,000.00 per occurrence.

         8.3      PROPERTY INSURANCE. (a) Lessor shall obtain and keep in force
during the term of this Lease a policy or policies of insurance covering loss or
damage to the Center improvements, but not Lessee's personal property, fixtures,
equipment or tenant improvements, in an amount not to exceed the full
replacement value thereof, as the same may exist from time to time, providing
protection against all perils included within the classification of fire,
extended coverage, vandalism, malicious mischief, flood (in the event same is
required by a lender having a lien on the Premises) special extended perils (
"all risk ", as such term is used in the insurance industry), plate glass
insurance and such other insurance as Lessor deems advisable. In addition,
Lessor shall obtain and keep in force, during the term of this Lease, a policy
of rental value insurance covering a period of one year, with loss payable to
Lessor, which insurance shall also cover all Operating Expenses for said period.
In the event that the Premises shall suffer an insured loss as defined in
paragraph 9.1 (g) hereof, the deductible amounts under the casualty insurance
policies relating to the Premises shall be paid by Lessee.

                  (b)      Lessee shall obtain and keep in force during the term
of this Lease a policy of insurance covering the Lessee's personal property,
fixtures, equipment, and tenant improvements, for full replacement cost, for the
"all risk" perils.

         8.4      PAYMENT OF PREMIUM INCREASE.

                  (a)      After the term of this Lease has commenced, Lessee
shall not be responsible for paying Lessee's Share of any increase in the
property insurance premium for the Center specified by Lessor's insurance
carrier as being caused by the use, acts or omissions of any other lessee of the
Center, or by the nature of such other lessee's occupancy which create an
extraordinary or unusual risk.

                  (b)      Lessee, however, shall pay the entirety of any
increase in the property insurance premium for the Center over what it was
immediately prior to the commencement of the term of this Lease if the increase
is specified by Lessor's insurance carrier as being caused by the nature of
Lessee's occupancy or any act or omission of Lessee.

         8.5      INSURANCE POLICIES. Insurance required hereunder shall be in
companies holding a "General Policyholders Rating" of at least B plus, or such
other rating as may be required by a lender having a lien on the Premises, as
set forth in the most current issue of "Best's Insurance Guide." Lessee shall
not do or permit to be done anything which shall invalidate the insurance
policies carried by Lessor. Lessee shall deliver to Lessor copies of liability
insurance policies required under paragraph 8.1 or certificates evidencing the
existence and amounts of such insurance within seven (7) days after the
commencement date of this Lease. No such policy shall be cancelable or subject
to reduction of coverage or other 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 renewals or "binders"
thereof.

         8.6      WAIVER OF SUBROGATION. Lessee and Lessor each hereby release
and relieve the other, and waive their entire right of recovery against the
other for loss or damage arising out of or incident to the perils insured
against which perils occur in, on or about the Premises, whether due to the
negligence of Lessor or Lessee or their agents, employees, contractors and/or
invitees. Lessee and Lessor shall, upon obtaining the policies of insurance
required, give notice to the insurance carrier or carriers that the foregoing
mutual waiver of subrogation is contained in this Lease.

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

         8.8      EXEMPTION OF LESSOR FROM LIABILITY. Lessee hereby agrees that
Lessor shall not be liable for injury to Lessee's business or any loss of income
therefrom or for damage to the goods, wares, merchandise or other property of
Lessee, Lessee's employees, invitees, customers, or any other person in or about
the Premises or the Center, nor shall Lessor be liable for injury to the person
of Lessee, Lessee's employees, agents or contractors, 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,
sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures,
or from any other cause, whether said damage or injury results from conditions
arising upon the Premises or upon other portions of the Center, or from other
sources or places and regardless of whether the cause of such damage or injury
or the means of repairing the same is inaccessible to Lessee. Lessor shall not
be liable for any damages arising from any act or neglect of any other lessee,
occupant or user of the Center, nor from the failure of Lessor to enforce the
provisions of any other lease of the Center.

                                      -3-

<PAGE>

9. DAMAGE OR DESTRUCTION.

         9.1      DEFINITION.

                  (a)      "Premises Partial Damage" shall mean if the Premises
are damaged or destroyed to the extent that the cost of repairs is less than
fifty percent of the then replacement cost of the Premises.

                  (b)      "Premises Total Destruction" shall mean if the
Premises are damaged or destroyed to the extent that the cost of repair is fifty
percent or more of the then replacement cost of the Premises.

                  (c)      "Premises Building Partial Damage" shall mean if the
Building of which the Premises are a part is damaged or destroyed to the extent
that the cost to repair is less than fifty percent of the then replacement cost
of the Building.

                  (d)      "Premises Building Total Destruction" shall mean if
the Building of which the Premises are a part is damaged or destroyed to the
extent that the cost to repair is fifty percent or more of the then replacement
cost of the Building.

                  (e)      "Center Buildings" shall mean all of the buildings on
the Center site.

                  (f)      "Center Buildings Total Destruction" shall mean if
the Center Buildings are damaged or destroyed to the extent that the cost of
repair is fifty percent or more of the then replacement cost of the Center
Buildings.

                  (g)      "Insured Loss" shall mean damage or destruction which
was covered by an event required to be covered by the insurance described in
paragraph 8. The fact that an Insured Loss has a deductible amount shall not
make the loss an uninsured loss.

                  (h)      "Replacement Cost" shall mean the amount of money
necessary to be spent in order to repair or rebuild the damaged area to the
condition that existed immediately prior to the damage occurring excluding all
improvements made by lessees.

         9.2      PREMISES PARTIAL DAMAGE; PREMISES BUILDING PARTIAL DAMAGE.

                  (a)      Insured Loss: Subject to the provisions of paragraph
9.4 and 9.5, if at any time during the term of this Lease there is damage which
is an Insured Loss and which falls into the classification of either Premises
Partial Damage or Premises Building Partial Damage, then Lessor shall, at the
Lessor's expense, repair such damage to the Premises, but not Lessee's fixtures,
equipment or tenant improvements, as soon as reasonably possible and this Lease
shall continue in full force and effect.

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

         9.3      PREMISES TOTAL DESTRUCTION; PREMISES BUILDING TOTAL
DESTRUCTION; CENTER BUILDINGS TOTAL DESTRUCTION.

                  (a)      Subject to the provisions of paragraphs 9.4 and 9.5,
if at any time during the term of this Lease there is damage, whether or not it
is an Insured Loss, and which falls into the classifications of either (i)
Premises Total Destruction, or (ii) Premises Building Total Destruction, or
(iii) Center Buildings Total Destruction, then Lessor may at Lessor's option
either (i) repair such damage or destruction, but not Lessee's fixtures,
equipment or tenant improvements, as soon as reasonably possible at Lessor's
expense, and this Lease shall continue in full force and effect, or (ii) give
written notice to Lessee within thirty (30) days after the date of occurrence of
such damage of Lessor's intention to cancel and terminate this Lease, in which
case this Lease shall be canceled and terminated as of the date of the
occurrence of such damage.

         9.4      DAMAGE NEAR END OF TERM.

                  (a)      Subject to paragraph 9.4(b), if at any time during
the last six months of the term of this Lease there is substantial damage,
whether or not an Insured Loss, which falls within the classification of
Premises Partial Damage, Lessor may at Lessor's option cancel and terminate this
Lease as of the date of occurrence of such damage by giving written notice to
Lessee of Lessor's election to do so within 30 days after the date of occurrence
of such damage.

                  (b)      Notwithstanding paragraph 9.4(a), in the event that
Lessee has an option to extend or renew this Lease, and the time within which
said option may be exercised has not yet expired, Lessee shall exercise such
option, if it is to be exercised at all, no later than twenty (20) days after
the occurrence of an Insured Loss falling within the classification of Premises
Partial Damage during the last six months of the term of this Lease. If Lessee
duly exercises such option during said twenty (20) day period, Lessor shall, at
Lessor's expense, repair such damage, but not Lessee's fixtures, equipment or
tenant improvements, as soon as reasonably possible and this Lease shall
continue in full force and effect. If Lessee falls to exercise such option
during said twenty (20) day period, then Lessor may at Lessor's option terminate
and cancel this Lease as of the expiration of said twenty (20) day period by
giving written notice to Lessee of Lessor's election to do so within ten (10)
days after the expiration of said twenty (20) day period, notwithstanding any
term or provision in the grant of option to the contrary.

         9.5      ABATEMENT OF RENT; LESSEE'S REMEDIES.

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

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

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

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

10.      REAL PROPERTY TAXES.

         10.1     PAYMENT OF TAXES. Lessor shall pay the real property tax, as
defined in paragraph 10.3, applicable to the Center subject to reimbursement by
Lessee of Lessee's Share of such taxes in accordance with the provisions of
paragraph 4.2, except as otherwise provided in paragraph 10.2.

         10.2     ADDITIONAL IMPROVEMENTS. Lessee shall not be responsible for
paying Lessee's Share of any increase in real property tax specified in the tax
assessor's records and work sheets as being caused by additional improvements
placed upon the Center by other lessees or by Lessor for the exclusive enjoyment
of such other lessees. Lessee shall, however, pay to Lessor at the time that
Operating Expenses are payable under paragraph 4.2(c) the entirety of any
increase in real property tax if assessed solely by reason of additional
improvements placed upon the Premises by Lessee or at Lessee's request.

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

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

                                      -4-

<PAGE>
         10.5     PERSONAL PROPERTY TAXES.

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

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

11.      UTILITIES. Lessee shall pay for all water, gas, heat, light, power,
telephone and other utilities and services supplied to the Premises, together
with any taxes thereon. If any such services are not separately metered to the
Premises, Lessee shall pay at Lessor's option, either Lessee's Share or a
reasonable proportion to be determined by Lessor of all charges jointly metered
with other premises in the Building.

12.      ASSIGNMENT AND SUBLETTING.

         12.1     LESSOR'S CONSENT REQUIRED. Lessee shall not voluntarily or by
operation of law assign, transfer, mortgage, sublet, or otherwise transfer or
encumber all or any part of Lessee's interest in the Lease or in the Premises,
without Lessor's prior written consent, which Lessor shall not unreasonably
withhold. Lessor shall respond to Lessee's request for consent hereunder in a
timely manner and any attempted assignment, transfer, mortgage, encumbrance or
subletting without such consent shall be void, and shall constitute a breach of
this Lease without the need for notice to Lessee under paragraph 13.1. If Lessee
shall assign or sublet the Leased Premises or request the consent of Lessor to
any assignment or subletting, or if Lessee should request the consent of Lessor
for any act Lessee proposes to do, then Lessee shall pay to Lessor, within
thirty (30) days of receipt of a bill, all reasonable fees and costs incurred by
Lessor for attorneys, accountants, service of notice or any other services in
connection with said assignment or subletting or other act.

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

         12.3     TERMS AND CONDITIONS OF ASSIGNMENT. Regardless of Lessor's
consent, no assignment shall release Lessee of Lessee's obligations hereunder or
alter the primary liability of Lessee to pay the Base Rent and Lessee's Share of
Operating Expenses, and to perform all other obligations to be performed by
Lessee hereunder. Lessor may accept rent from any person other than Lessee
pending approval or disapproval of such assignment. Neither a delay in the
approval or disapproval of such assignment nor the acceptance of rent shall
constitute a waiver or estoppel of Lessor's right to exercise its remedies for
the breach of any of the terms or conditions of this paragraph 12 or this Lease.
Consent to one assignment shall not be deemed consent to any subsequent
assignment. In the event of default by any assignee of Lessee or any successor
of Lessee, in the performance of any of the terms hereof, Lessor may proceed
directly against Lessee without the necessity of exhausting remedies against
said assignee. Lessor may consent to subsequent assignments of this Lease or
amendments or modifications to this Lease with assignees of Lessee, without
notifying Lessee, or any successor of Lessee, and without obtaining its or
their consent thereto and such action shall not relieve Lessee of
liability under this Lease.

         12.4     TERMS AND CONDITIONS APPLICABLE TO SUBLETTING. Regardless of
Lessor's consent, the following terms and conditions shall apply to any
subletting by Lessee of all or any part of the Premises and shall be included in
subleases:

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

                  (b)      No sublease entered into by Lessee shall be effective
unless and until it has been approved in writing by Lessor. In entering into any
sublease, Lessee shall use only such form of sublease as is satisfactory to
Lessor, and once approved by Lessor, such sublease shall not be changed or
modified without Lessor's prior written consent. Any sublessee shall, by reason
of entering into a sublease under this Lease, be deemed, for the benefit of
Lessor, to have assumed and agreed to conform and comply with each and every
obligation herein to be performed by Lessee other than such obligations as are
contrary to or inconsistent with provisions contained in a sublease to which
Lessor has expressly consented in writing.

                  (c)      If Lessee's obligations under this Lease have been
guaranteed by third parties, then a sublease, and Lessor's consent thereto,
shall not be effective unless said guarantors give their written consent to such
sublease and the terms thereof.

                  (d)      The consent by Lessor to any subletting shall not
release Lessee from its obligations or alter the primary liability of Lessee to
pay the rent and perform and comply with all of the obligations of Lessee to be
performed under this Lease.

                  (e)      The consent by Lessor to any subletting shall not
constitute a consent to any subsequent subletting by Lessee or to any assignment
or subletting by the sublessee. However, Lessor may consent to subsequent
sublettings and assignments of the sublease or any amendments or modifications
thereto without notifying Lessee or anyone else liable on the Lease or sublease
and without obtaining their consent and such action shall not relieve such
persons from liability.

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

                  (g)      In the event Lessee shall default in the performance
of its obligations under this Lease, Lessor, at its option and without any
obligation to do so, may require any sublessee to attorn to Lessor, in which
event Lessor shall undertake the obligations of Lessee under such sublease from
the time of the exercise of said option to the termination of such sublease;
provided, however, Lessor shall not be liable for any prepaid rents or security
deposit paid by such sublessee to Lessee or for any other prior defaults of
Lessee under such sublease.

                  (h)      Each and every consent required of Lessee under a
sublease shall also require the consent of Lessor.

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

                  (j)      Lessor's written consent to any subletting of the
Premises by Lessee shall not constitute an acknowledgement that no default then
exists under this Lease of the obligations to be performed by Lessee nor shall
such consent be deemed a waiver of any then existing default, except as may be
otherwise stated by Lessor at the time.

                  (k)      With respect to any subletting to which Lessor has
consented, Lessor agrees to deliver a copy of any notice of default by Lessee to
the sublessee. Such sublessee shall have the right to cure a default of Lessee
within ten (10) days after service of said notice of default upon such
sublessee, and the sublessee shall have a right of reimbursement and offset from
and against Lessee for any such defaults cured by the sublessee.

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

13.      DEFAULT; REMEDIES.

         13.1     DEFAULT. The occurrence of any one or more of the following
events shall constitute a material default of this Lease by Lessee:

                  (a)      The vacating or abandonment of the Premises by
Lessee.

                  (b)      The failure by Lessee to make any payment of rent or
any other payment required to be made by Lessee hereunder, as and when due,
where such failure shall continue for a period of three (3) days after written
notice thereof from Lessor to Lessee. In the event that Lessor serves Lessee
with a Notice to Pay Rent or Quit pursuant to applicable Unlawful Detainer
statutes such Notice to Pay Rent or Quit shall also constitute the notice
required by this subparagraph.

                  (c)      Except as otherwise provided in this Lease, the
failure by Lessee to observe or perform any of the covenants, conditions or
provisions of this Lease to be observed or performed by Lessee, other than
described in paragraph (b) above, where such failure shall continue for a period
of thirty (30) days after written notice thereof from Lessor to Lessee;
provided, however, that if the nature of Lessee's noncompliance is such that
more than thirty (30) days are reasonably required for its cure, then Lessee
shall not be deemed to be in default if Lessee commenced such cure within said
thirty (30) day period

                                      -5-
<PAGE>
and thereafter diligently prosecutes such cure to completion. To the extent
permitted by law, such thirty (30) day notice shall constitute the sole and
exclusive notice required to be given to Lessee under applicable Unlawful
Detainer statutes.

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

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

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

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

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

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

         13.3     DEFAULT BY LESSOR. Lessor shall not be in default unless
Lessor falls to perform obligations required of Lessor within a reasonable time,
but in no event later than thirty (30) days after written notice by Lessee to
Lessor and to the holder of any first mortgage or deed of trust covering the
Premises whose name and address shall have theretofore been furnished to Lessee
in writing, specifying wherein Lessor has failed to perform such obligation,
provided, however, that if the nature of Lessor's obligation is such that more
than thirty (30) days are required for performance then Lessor shall not be in
default if Lessor commences performance within such thirty (30) day period and
thereafter diligently prosecutes the same to completion.

         13.4     LATE CHARGES. Should Lessee fail to pay, when due and payable,
the minimum monthly rental or any additional rental, such unpaid amounts shall
bear interest at the maximum legal rate from the date the debt was incurred to
the date of ultimate payment. Said interest amount shall be in addition to, and
not in lieu of, any late charge assessed for the debt incurred. Late charges
shall not be included in calculating interest due. In addition to such interest,
?ILLEGIBLE? stipulates that the late payment by Lessee of any monthly
rental/additional rental will cause Lessor to incur certain costs and expenses
not ?ILLEGIBLE? by the parties/lease hereto, the exact amount of which costs
are extremely difficult to ascertain. As such, if any such installment is not
received by Lessor from Lessee within five (5) days of its due date, Lessee
shall forthwith pay as additional rent, a late charge of ten percent (10%) of
that amount due. Lessor and Lessee agree that such late charge represents a
reasonable estimate of such costs and expenses and is fair compensation to
Lessor for the loss caused by Lessee's nonpayment. Payment(s) made by Lessee
shall be applied by Lessor, subject to Lessor's sole discretion, first to late
charges incurred, then to common area maintenance/operating expense as
additional rent, and lastly to base rent. Lessor's acceptance of this late
charge shall not constitute a waiver of Lessee's default with respect to
nonpayment of the subject debt, nor prevent Lessor from exercising all other
rights, claims, or remedies, known or unknown, available to Lessor pursuant to
this lease or under California or federal law.

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

15.      BROKER'S FEE.

         (a)      Upon execution of this Lease by both parties, upon occupancy
of the premises by Lessee, and receipt of any deposits and/or initial rental
payment, Lessor shall pay to N/A Licensed real estate broker(s) a fee as set
forth in a separate agreement between Lessor and said broker(s), or in the event
there is no separate agreement between Lessor and said broker(s), the sum of
$-0-, for brokerage services rendered by said broker(s) to Lessor in this
transaction.

16.      ESTOPPEL CERTIFICATE.

         (a)      Each party (as "responding party ") shall at any time upon not
less than ten (10) days' prior written notice from the other party ( "requesting
party ") execute, acknowledge and deliver to the requesting party a statement in
writing (i) certifying that this Lease is unmodified and in full force and
effect (or, if modified, stating the nature of such modification and certifying
that this Lease, as so modified, is in full force and effect) and the date to
which the rent and other charges are paid in advance, if any, and (ii)
acknowledging that there are not, to the responding party's knowledge, any
uncured defaults on the part of the requesting party, or specifying such
defaults if any are claimed. Any such statement may be conclusively relied upon
by any prospective purchaser or encumbrancer of the Premises or of the
business of the requesting party.

         (b)      At the requesting party's option, the failure to deliver such
statement within such time shall be a material default of this Lease by the
party who is to respond, without any further notice to such party, or it shall
be conclusive upon such party that (i) this 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.

         (c)      If Lessor desires to finance, refinance, or sell the Property,
or any part thereof, Lessee and all Guarantors of Lessee's performance hereunder
hereby agrees to deliver to any lender or purchaser designated by Lessor such
financial statements of Lessee and such Guarantors as may be reasonably required
by such lender or purchaser. Such statements shall include the past three (3)
years' financial statements of Lessee. All such financial statements shall be
received by Lessor and such lender or purchaser in confidence and shall be used
only for the purposes herein set forth.

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

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

19.      INTEREST ON PAST-DUE OBLIGATIONS. Except as expressly herein provided,
any amount due to Lessor not paid when due shall bear interest at the maximum
rate then allowable by law from the date due. Payment of such interest shall not
excuse or cure any default by Lessee under this Lease; provided, however, that
interest shall not be payable on late charges incurred by Lessee nor on any
amounts upon which late charges are paid by Lessee.

20.      TIME OF ESSENCE. Time is of the essence with respect to the obligations
to be performed under this Lease.

21.      ADDITIONAL RENT. All monetary obligations of Lessee to Lessor under the
terms of this Lease, including but not limited to Lessee's Share of Operating
Expenses and insurance and tax expenses payable shall be deemed to be rent.

                                      -6-

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

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

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

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

26.      HOLDING OVER. If Lessee, with Lessor's consent, remains in possession
of the Premises or any part thereof after the expiration of the term hereof,
such occupancy shall be a tenancy from month to month upon all the provisions of
this Lease pertaining to the obligations of Lessee, but all Options, if any,
granted under the terms of this Lease shall be deemed terminated and be of no
further effect during said month to month tenancy.

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

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

29.      BINDING EFFECT; CHOICE OF LAW. Subject to any provisions hereof
restricting assignment or subletting by Lessee and subject to the provisions of
paragraph 17, this Lease shall bind the parties, their personal representatives,
successors and assigns. This Lease shall be governed by the laws of the State
where the Center is located and any litigation concerning this Lease between the
parties hereto shall be initiated in the county in which the Center is located.

30.      SUBORDINATION.

         (a)      This Lease, and any Option granted hereby, at Lessor's option,
shall be subordinate to any ground lease, mortgage, deed of trust, or any other
hypothecation or security now or hereafter placed upon the Center and to any and
all advances made on the security thereof and to all renewals, modifications,
consolidations, replacements and extensions thereof. Notwithstanding such
subordination, Lessee's right to quiet possession of the Premises shall not be
?ILLEGIBLE? if Lessee is not in default and so long as Lessee shall pay the rent
and observe and perform all of the provisions of this Lease, unless this Lease
is ?ILLEGIBLE? terminated pursuant to its terms. If any mortgagee, trustee or
ground lessor shall elect to have this Lease and any Options granted hereby
prior to the lien of its mortgage, deed of trust or ground lease, and shall give
written notice thereof to Lessee, this Lease and such Options shall be deemed
prior to such mortgage, deed of trust or ground lease, whether this Lease or
such Options are dated prior or subsequent to the date of said mortgage, deed of
trust or ground lease or the date of recording thereof.

         (b)      Lessee agrees to execute any documents required to effectuate
an attornment, a subordination or to make this Lease or any Option granted
herein prior to the lien of any mortgage, deed of trust or ground lease, as the
case may be. Lessee's failure to execute such documents within ten (10) days
after written demand shall constitute a material default by Lessee hereunder
without further notice to Lessee or, at Lessor's option, Lessor shall execute
such documents on behalf of Lessee as Lessee's attorney-in-fact. Lessee does
hereby make, constitute and irrevocably appoint Lessor as Lessee's
attorney-in-fact and in Lessee's name, place and stead, to execute such
documents in accordance with is paragraph 30(b).

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

32.      LESSOR'S ACCESS. Lessor and Lessor's agents shall have the right to
enter the Premises at reasonable times for the purposes of inspecting the same,
showing the same to prospective purchasers, lenders, or lessees, and making such
alterations, repairs, improvements or additions to the Premises or to the
building of which they are part as Lessor may deem necessary or desirable.
Lessor may at any time place on or about the Premises or the Building any
ordinary "For Sale" signs and Lessor may at any time during the last 120 days of
the term hereof place on or about the Premises any ordinary "For Lease" signs.
All activities of Lessor pursuant to this paragraph shall be without abatement
of rent, nor shall Lessor have any liability to Lessee for the same.

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

34.      SIGNS. Lessee shall not place any sign upon the Premises of the Center
without Lessor's prior written consent. Under no circumstances shall Lessee
place a sign on any roof of the Center.

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

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

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

38.      QUIET POSSESSION. Upon Lessee paying the rent for the Premises and
observing and performing all of the covenants, conditions and provisions on
Lessee's part to be observed and performed hereunder, Lessee shall have quiet
possession of the Premises for the entire term hereof subject to all of the
provisions of this Lease. The individuals executing this Lease on behalf of
Lessor represent and warrant to Lessee that they are fully authorized and
legally ?ILLEGIBLE? of executing this Lease on behalf of Lessor and that such
execution is binding upon all parties holding an ownership interest in the
Property. Landlord ?ILLEGIBLE? not be liable for any damage arising from acts or
neglects of co-tenants, or other occupants of the same building, or of any
owners or occupants of adjacent or contiguous property.

39.      OPTIONS.

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

         39.2     OPTIONS PERSONAL. Each Option granted to Lessee in this Lease
is personal to the original Lessee and may be exercised only by the original
Lessee while occupying the Premises who does so without the intent of thereafter
assigning this Lease or subletting the Premises or any portion thereof, and may
not be exercised or be assigned, voluntarily or involuntarily, by or to any
person or entity other than Lessee, provided, however, that an Option may be
exercised by or assigned to any Lessee Affiliate as defined in paragraph 12.2 of
this Lease. The Options, if any, herein granted to Lessee are not assignable
separate and apart from this Lease, nor may any Option be separated from this
Lease in any manner, either by reservation or otherwise.

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

         39.4     EFFECT OF DEFAULT ON OPTIONS.

                  (a)      Lessee shall have no right to exercise an Option,
notwithstanding any provision in the grant of Option to the contrary, (i) during
the time commencing from the date Lessor gives to Lessee a notice of default
pursuant to paragraph 13.1 (b) or 13.1 (c) and continuing until the
noncompliance alleged in said notice of default is cured, or (ii) during the
period of time commencing on the date after a monetary obligation to Lessor is
due from Lessee and unpaid (without necessity for notice thereof to Lessee) and
continuing until the obligation is paid, or (iii) at any time after an event of
default described in paragraphs 13.1(a), 13.1(d), or 13.1(e) (without any
necessity of Lessor to give notice of such default to Lessee), nor (iv) in the
event that Lessor has given to Lessee three or more notices of default under
paragraph 13.1(b), or paragraph 13.1(c), whether or not the defaults are cured,
during the 12 month period of time immediately prior to the time that Lessee
attempts to exercise the subject Option.

                                      -7-

<PAGE>

                  (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 ?ILLEGIBLE? because of the provisions of paragraph 39.4(a).

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

40.      SECURITY MEASURES. Lessee hereby acknowledges that Lessor shall have no
obligation whatsoever to provide guard service or other security measures for
the benefit of the Premises or the Center. Lessee assumes all responsibility for
the protection of Lessee, its agents, and invitees and the property of Lessee
and of Lessee's agents and invitees from acts of third parties. Nothing herein
contained shall prevent Lessor, at Lessor's sole option, from providing security
protection for the Industrial Center or any part thereof, in which event the
cost thereof shall be included within the definition of Operating Expenses, as
set forth in paragraph 4.2(b).

41.      EASEMENTS. Lessor reserves to itself the right, from time to time to
grant such easements, rights and dedications that Lessor deems necessary or
desirable, and to cause the recordation of Parcel Maps and restrictions, so long
as such easements, rights, dedications, Maps and restrictions do not
unreasonably interfere with the use of the Premises by Lessee. Lessee shall sign
any of the aforementioned documents upon request of Lessor and failure to do so
shall constitute a material default of this Lease by Lessee without the need for
further notice to Lessee.

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

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

44.      CONFLICT. Any conflict between the printed provisions of this Lease and
the typewritten or handwritten provisions, if any, shall be controlled by the
typewritten or handwritten provisions.

45.      OFFER. Preparation of this Lease by Lessor or Lessor's agent and
submission of same to Lessee shall not be deemed an offer to lease. This Lease
shall become binding upon Lessor and Lessee only when fully executed by Lessor
and Lessee.

46.      ADDENDUM. Attached hereto is an addendum or addenda containing
paragraphs 47 through 51 which constitute a part of this Lease.

47.      PARKING. Lessee is allowed 2.5 cars per 1,000 square feet Lessee has
leased. Your 2.5 cars per 1,000 square feet should be used for executive
?ILLEGIBLE? and customers only. All employees must park on City streets. Please
note below license numbers of management. Please notify landlord of any change
in management parking.

A.___________  B.____________  C.____________  D._____________  E.___________

The following Exhibits are hereby attached and made part of this lease
agreement:

     Exhibit "A" Estimated Budget
     Exhibit "B" Guarantee of Lease
     Exhibit "C" Rules and Regulations
     Exhibit "D" Site Plan
     Exhibit "E" Floor Plan

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

        LESSOR                                            LESSEE

FOUR AMIGOS, A CA. LTD.                      MISSION VALLEY CHRISTIAN FELLOWSHIP
                                               OF SAN DIEGO, A CALIFORNIA NON-
                                                PROFIT RELIGIOUS CORPORATION

By  [ILLEGIBLE]                              By  [ILLEGIBLE]
   ----------------------------                 --------------------------------
By ____________________________              By ________________________________

Executed on 1-19-96                          Executed on 12-5-95
               (Corporate Seal)                                 (Corporate Seal)

  ADDRESS FOR NOTICES AND RENT                             ADDRESS

   4607 MISSION GORGE PLACE                      4562-M ALVARADO CANYON ROAD
 SAN DIEGO, CALIFORNIA 92120                     SAN DIEGO, CALIFORNIA 92120

MULTI TENANT--MODIFIED NET                                  INITIALS [ILLEGIBLE]
                                                                     -----------

LAST REVISED 4/12/94                                                 [ILLEGIBLE]
                                                                     -----------

                                      -8-

<PAGE>

                               A D D E N D U M
                        TO STANDARD INDUSTRIAL LEASE
                          DATED NOVEMBER 17, 1995

                   BY AND BETWEEN FOUR AMIGOS, A CA. LTD.
                                    AND
             MISSION VALLEY CHRISTIAN FELLOWSHIP OF SAN DIEGO,
               A CALIFORNIA NON-PROFIT RELIGIOUS CORPORATION

  48       E N V I R O N M E N T A L  M A T T E R S

48.1 NO USE OF HAZARDOUS MATERIALS. Lessee agrees that Lessee shall not keep,
use, generate, store, release, threaten release or dispose of any Hazardous
Materials (as defined below) on or about the Premises without the prior express
written consent of Lessor, which consent may be withheld by Lessor in its sole
and absolute discretion. Lessee represents that the presence of Hazardous
Materials on the Premises is not necessary to the conduct of its business or its
use of the Premises and Lessee acknowledges that it is probable that Lessor will
withhold its consent to any requested use of Hazardous Materials on the
Premises. For purposes of this provision, "Hazardous Materials" shall include
all oil, flammable explosives, asbestos, urea formaldehyde, radioactive
materials or waste, or other hazardous, toxic, contaminated, or polluting
materials, substances or wastes, including, without limitation, substances
defined as "hazardous substances', 'hazardous materials', 'hazardous wastes', or
'toxic substances' under any laws ordinances or regulations heretofore or
hereafter enacted or adopted.

48.2 COMPLIANCE WITH ENVIRONMENTAL LAWS. If Lessor consents in writing to the
presence, use, generation, storage, release or disposition of Hazardous
Materials (collectively, "Use of Hazardous Materials:) on or about the Premises,
then Lessee shall conduct such Use of Hazardous Materials subject to, and in
full compliance with, all local, state, federal and other laws and regulations
governing the Use of Hazardous Materials. Lessee shall, at its own expense,
procure, maintain in effect and comply with, all conditions of any and all
permits, licenses and other governmental and regulatory approvals required for
Lessee's use of the Premises, including without limitation, discharge of
appropriately treated materials or wastes. Lessee shall cause any known
Hazardous Materials located on or about the Premises to be removed and
transported from the Premises solely by duly licensed haulers to duly licensed
facilities for final disposal of such materials and wastes. Lessee shall in all
respects handle, treat, deal with and manage any and all Hazardous Materials in,
on, under or about the Premises in total conformity with all applicable laws and
regulations governing the Use of Hazardous Materials and prudent industrial
practices regarding management of such Hazardous Materials. Upon regarding
management of such Hazardous Materials. Upon expiration or earlier termination
of the term of this Lease, Lessee shall cause all Hazardous Materials to be
removed from the Premises and transported for use, storage or disposal in
accordance and compliance with all applicable laws and regulations governing the
Use of Hazardous Materials.

48.3 NOTICES. Lessee shall immediately notify Lessor in writing of: (i) any
enforcement, clean-up, removal or other governmental or regulatory actions
instituted, completed or threatened pursuant to any laws or regulations
governing the use of Hazardous Materials; (ii) any claim made or threatened
against Lessee or the Premises relating to damage, contribution, cost recovery,
compensation, loss or injury resulting from or claimed to result from any
hazardous materials; and (iii) any reports made to any environmental agency
arising out of or in connection with any Hazardous Materials in or removed from
the Premises, including any complaints, notices, warnings or asserted violations
in connection therewith. Lessee shall also supply to Lessor as promptly as
possible, and in any event within five (5) business days after Lessee first
receives or sends the same, with copies of all claims, reports, complaints,
notices, warnings or asserted violations relating in any way to the Premises or
Lessee's use thereof. Lessee shall promptly deliver to Lessor copies of
hazardous waste manifests reflecting the legal and proper disposal of all
Hazardous Materials removed from the Premises.

                                                           Initials: [ILLEGIBLE]
                                                                     -----------

<PAGE>

48.4 INDEMNIFICATION. Lessee hereby agrees to indemnify, defend and hold
harmless Lessor, its trustees, officers, employees and agents, and the
beneficiary or mortgagee under any deed of trust or mortgage now or hereafter
encumbering all or any portion of the Premise, from and against any and all
suits, actions, legal or administrative proceedings, claims, demands, damages,
fines, punitive damages, losses, costs, liabilities, interest, attorneys' fees
(including any such fees and expenses incurred in enforcing this indemnity),
resulting from or relating to, directly or indirectly, the Use of Hazardous
Materials on or about the Premises. The indemnity set forth herein shall
include, without limitation, the cost of any required or necessary repair,
clean-up or detoxification of the Premises and the surrounding property and
shall survive the expiration or earlier termination of the term of this Lease.

48.5 ADDITIONAL INSURANCE OR FINANCIAL CAPACITY. If at any time it reasonably
appears to Lessor that Lessee is not maintaining sufficient insurance or other
means of financial capacity to enable Lessee to fulfill its obligation to Lessor
hereunder, whether or not then accrued, liquidated, conditional or contingent,
Lessee shall procure and thereafter maintain in full force and effect such
insurance or other form of financial assurance, with or from companies or
persons and in forms reasonably acceptable to Lessor as Lessor may from time to
time reasonably request.

                                         BY: MISSION VALLEY CHRISTIAN FELLOWSHIP
                                             OF SAN DIEGO, A CALIFORNIA
                                             NON-PROFIT RELIGIOUS CORPORATION

                                         /s/ [ILLEGIBLE]
                                         --------------------------
                                         Lessee

                                                  12-5-95
                                         --------------------------
                                         Date

<PAGE>

                                A D D E N D U M
                          TO STANDARD INDUSTRIAL LEASE
                            DATED NOVEMBER 17, 1995

                     BY AND BETWEEN FOUR AMIGOS, A CA. LTD.
                                      AND
               MISSION VALLEY CHRISTIAN FELLOWSHIP OF SAN DIEGO,
                  A CALIFORNIA NON-PROFIT RELIGIOUS CORPORATION

  49       P R O P E R T Y  T A X E S

The estimated budget for Property Taxes is attached hereto and made a part
hereof. Lessee agrees Property Taxes are to be paid concurrently with rental
payment due and payable on the first day of each month.

  50       M A I N T E N A N C E  F E E S

The established budget for maintenance cost is attached hereto and made a part
hereof. Lessee agrees maintenance fees are to be paid concurrently with rental
payment due and payable on the first day of each month.

  51       B A S E  M O N T H L Y  R E N T  S C H E D U L E

Lessor and Lessee agree to the following base monthly rent schedule for the
premises:

                        December 1995 - February 1996: $1,069.98 plus
                        Lessee's pro rata share of the operating expenses
                        (estimated to be $273.12)

                        March 1996 - February 1997: $1,123.60 plus Lessee's
                        pro rat share of operating expenses

                        March 1997 - December 2000: $1,300.76 with fixed four
                        percent (4%) annual increases plus Lessee's pro rata
                        share of operating expenses (currently running at
                        $273.12 per month).

BY: FOUR AMIGOS, A CA. LTD.                 BY: MISSION VALLEY CHRISTIAN
                                                FELLOWSHIP OF SAN DIEGO, A
                                                CALIFORNIA NON-PROFIT RELIGIOUS
                                                CORPORATION

/s/ [ILLEGIBLE]                                   /s/ [ILLEGIBLE]
--------------------------                        ------------------------------
Lessor                                            Lessee

     1-19-96                                            12-5-95
--------------------------                        ------------------------------
Date                                              Date

<PAGE>

                                   EXHIBIT A
                                  FOUR AMIGOS
                         MISSION VALLEY BUSINESS CENTER

                             1995 ESTIMATED BUDGET

<TABLE>
<CAPTION>
                                     MONTHLY        YEARLY
<S>                                 <C>           <C>
1.   Property Management Fee        $  732.42     $ 8,789.00

2.   Maintenance                     1,377.08      16,525.00

3.   Landscaping                       548.33       6,580.00

4.   Security                          228.00       2,736.00

5.   Insurance                         500.17       6,002.00

6.   Gas & Electric                    211.50       2,538.00

7.   Water                             531.08       6,373.00

8.   Sweeping                           -0-           -0-

9.   Window Washing                    116.67       1,400.00

10.  Trash                             545.00       6,540.00

11.  Alarm Telephone                    -0-           -0-

12.  Reserve                           400.00       4,800.00

13.  Legal                              -0-           -0-

14.  Audit                              -0-           -0-

15.  Property Taxes                  2,866.33      34,396.00

16.  Association Dues                   -0-           -0-

17.  Franchise Tax                       0.00           0.00

                                    ---------     ----------
         TOTAL:                     $8,056.58     $96,679.00
                                    =========     ==========
</TABLE>

Tenant Building Area - 2,098 Square Feet = 3.39%
Total Building Area - 61,940

$8,056.58 x 3.39% = $ Monthly Maintenance & Tax Costs

BY: FOUR AMIGOS                              BY: MISSION VALLEY CHRISTIAN
                                             FELLOWSHIP OF SAN DIEGO, A
                                             CALIFORNIA NON-PROFIT RELIGIOUS
                                             CORPORATION

/s/ [ILLEGIBLE]                                   /s/ [ILLEGIBLE]
---------------------                             ------------------------------
Lessor                                            Lessee

    1/19/96                                            12-5-95
---------------------                             ------------------------------
Date                                              Date

<PAGE>

                                   EXHIBIT B

                               GUARANTEE OF LEASE

WHEREAS as a certain Lease of even date herewith has been, or will be, executed
by and between FOUR AMIGOS, A CA. LTD., therein referred to as "Lessor", and
MISSION VALLEY CHRISTIAN FELLOWSHIP OF SAN DIEGO, A CALIFORNIA NON-PROFIT
RELIGIOUS CORPORATION, therein and herein referred to as "Tenant", covering
certain premises in the City of SAN DIEGO, County of SAN DIEGO, State of
CALIFORNIA.

WHEREAS, the Lessor under said Lease requires as a condition to its execution of
said Lease that the undersigned Guarantor guarantee the full performance of the
obligations of Tenant under said Lease; and

WHEREAS, Guarantor is desirous that Lessor enter into said Lease with Tenant.

NOW, THEREFORE, in consideration of the execution of said Lease by Lessor,
Guarantor hereby unconditionally guarantees the full performance of each and all
of the terms, covenants, and conditions of said Lease to be kept and performed
by Tenant, including the payment of all rentals and other charges to accrue
thereunder. Guarantor further agrees as follows:

1.0      PERFORMANCE OF OBLIGATIONS UNDER THE LEASE:

         (a)      PERFORMANCE: In the case Tenant shall fail to perform any
                  agreement or comply with any condition contained in the Lease
                  and required to be performed or complied with by it,
                  Guarantor, whether or not such failure constitutes a default
                  under the Lease, will perform or comply with the same before
                  any grace period for remedying the same has expired. Guarantor
                  will pay all costs and expenses (including without limitation,
                  attorneys' fees and expenses) in connection with the
                  enforcement of the obligations of Tenant and in connection
                  with the enforcement of Guarantor's obligations under this
                  Agreement.

         (b)      RENT: Without limiting the generality of subsection (a), and
                  without being limited thereby, Guarantor unconditionally
                  guarantees that Tenant will duly and punctually pay all fixed
                  Rent (as defined in the Lease), and additional rent (Fixed
                  Rent and additional rent being hereinafter collectively called
                  "Rent"), damages (whether provided for in the Lease or
                  otherwise allowed by law) and all other sums payable by Tenant
                  under the Lease. Such guarantee is an absolute, unconditional,
                  continuing guarantee of payment and not of collectibility, and
                  is in no way conditioned upon any attempt to collect from
                  Tenant or upon any other event or contingency. If Tenant shall
                  fail duly and punctually to pay any such sum, Guarantor will
                  forthwith pay the same, together with interest thereon at the
                  rates and under the conditions contained in the Lease.

2.0      PAYMENTS IN LIEU OF RENT: In the event of any bankruptcy, insolvency,
         reorganization, arrangement, readjustment, composition, liquidation or
         similar proceeding with respect to tenancy in which the Lease shall be
         terminated or rejected or the obligations of Tenant shall be modified,
         Guarantor will pay an amount equal to the Rent which would have been
         payable by it pursuant to the Lease, accrued to the date of such
         termination, rejection or modification and shall thereafter pay an
         amount equal to the Rent which would have been payable by it pursuant
         to the Lease on the days when the same would have been due except for
         such termination, rejection or modification.

3.0      OBLIGATIONS OF GUARANTOR: The obligations of Guarantor hereunder shall
         be absolute and unconditional, shall not be subject to any
         counterclaim, setoff, deduction or defense based upon any claim
         Guarantor may have against Tenant or Lessor, and shall remain in full
         force and effect without regard to, and shall not be released,
         discharged, or in any way affected by any circumstance or condition
         (whether or not Guarantor shall have any knowledge or notice thereof),
         including without limitation: (a) any amendment or modification of or
         supplement to the Lease; (b) any waiver, consent, extension, indulgence
         or other action or inaction under or in respect of the Lease, or any
         exercise or non-exercise of any right, remedy, power or privilege under
         or in respect of the Lease; (c) any bankruptcy, insolvency,
         reorganization, arrangement, readjustment, composition, liquidation or
         similar proceeding with respect to Tenant; or (d) any limitation on the
         liability of Tenant under the Lease or any invalidly or
         unenforceability, in whole or in part of the Lease or any term thereof.

<PAGE>

                                   EXHIBIT B

                               GUARANTEE OF LEASE

WHEREAS as a certain Lease of even date herewith has been, or will be, executed
by and between CASTER FAMILY TRUST, therein referred to as "Lessor", and MISSION
VALLEY CHRISTIAN FELLOWSHIP OF SAN DIEGO, A CALIFORNIA NON-PROFIT RELIGIOUS
CORPORATION, therein and herein referred to as "Tenant", covering certain
premises in the City of SAN DIEGO, County of SAN DIEGO, State of CALIFORNIA.

WHEREAS, the Lessor under said Lease requires as a condition to its execution of
said Lease that the undersigned Guarantor guarantee the full performance of the
obligations of Tenant under said Lease; and

WHEREAS, Guarantor is desirous that Lessor enter into said Lease with Tenant.

NOW, THEREFORE, in consideration of the execution of said Lease by Lessor,
Guarantor hereby unconditionally guarantees the full performance of each and all
of the terms, covenants, and conditions of said Lease to be kept and performed
by Tenant, including the payment of all rentals and other charges to accrue
thereunder. Guarantor further agrees as follows:

1.0      PERFORMANCE OF OBLIGATIONS UNDER THE LEASE:

         (a)      PERFORMANCE: In the case Tenant shall fail to perform any
                  agreement or comply with any condition contained in the Lease
                  and required to be performed or complied with by it,
                  Guarantor, whether or not such failure constitutes a default
                  under the Lease, will perform or comply with the same before
                  any grace period for remedying the same has expired. Guarantor
                  will pay all costs and expenses (including without limitation,
                  attorneys' fees and expenses) in connection with the
                  enforcement of the obligations of Tenant and in connection
                  with the enforcement of Guarantor's obligations under this
                  Agreement.

         (b)      RENT: Without limiting the generality of subsection (a), and
                  without being limited thereby, Guarantor unconditionally
                  guarantees that Tenant will duly and punctually pay all fixed
                  Rent (as defined in the Lease), and additional rent (Fixed
                  Rent and additional rent being hereinafter collectively called
                  "Rent"), damages (whether provided for in the Lease or
                  otherwise allowed by law) and all other sums payable by Tenant
                  under the Lease. Such guarantee is an absolute, unconditional,
                  continuing guarantee of payment and not of collectibility, and
                  is in no way conditioned upon any attempt to collect from
                  Tenant or upon any other event or contingency. If Tenant shall
                  fail duly and punctually to pay any such sum, Guarantor will
                  forthwith pay the same, together with interest thereon at the
                  rates and under the conditions contained in the Lease.

2.0      PAYMENTS IN LIEU OF RENT: In the event of any bankruptcy, insolvency,
         reorganization, arrangement, readjustment, composition, liquidation or
         similar proceeding with respect to tenancy in which the Lease shall be
         terminated or rejected or the obligations of Tenant shall be modified,
         Guarantor will pay an amount equal to the Rent which would have been
         payable by it pursuant to the Lease, accrued to the date of such
         termination, rejection or modification and shall thereafter pay an
         amount equal to the Rent which would have been payable by it pursuant
         to the Lease on the days when the same would have been due except for
         such termination, rejection or modification.

3.0      OBLIGATIONS OF GUARANTOR: The obligations of Guarantor hereunder shall
         be absolute and unconditional, shall not be subject to any
         counterclaim, setoff, deduction or defense based upon any claim
         Guarantor may have against Tenant or Lessor, and shall remain in full
         force and effect without regard to, and shall not be released,
         discharged, or in any way affected by any circumstance or condition
         (whether or not Guarantor shall have any knowledge or notice thereof),
         including without limitation: (a) any amendment or modification of or
         supplement to the Lease; (b) any waiver, consent, extension, indulgence
         or other action or inaction under or in respect of the Lease, or any
         exercise or non-exercise of any right, remedy, power or privilege under
         or in respect of the Lease; (c) any bankruptcy, insolvency,
         reorganization, arrangement, readjustment, composition, liquidation or
         similar proceeding with respect to Tenant; or (d) any limitation on the
         liability of Tenant under the Lease or any invalidly or
         unenforceability, in whole or in part of the Lease or any term thereof.

<PAGE>

4.0      WAIVERS: Guarantor unconditionally waives (a) notice of any of the
matters referred to in Section 3.0(b) all notices which may be required by
statute, rule of law or otherwise to preserve or assert any rights against
Guarantor hereunder, including, without limitation, any demand, proof or notice
of nonpayment of any Rent, damages or other sums payable under this Lease, and
notice of any failure on the part of Tenant to perform or comply with any term
or condition of the Lease, (c) any right to the enforcement, assertion or
exercise of any right, remedy, power or privilege under or in respect of the
Lease, (d) any requirement of diligence, (e) any requirement to mitigate, by
eviction of Tenant and the reletting of the Premises or otherwise, the damages
resulting from a default by Tenant under the Lease, and (f) any right to a
trial by jury in any action or proceeding hereunder or under the Lease.

5.0      WAIVER OF RIGHT TO REQUIRE LESSOR TO PROCEED AGAINST TENANT FIRST:
         Guarantor waives any right to require Lessor to (a) proceed against
         Tenant, its successor, assignee or subtenant; (b) proceed against or
         exhaust any security held from Tenant, its successor, assignee or
         subtenant; or (c) pursue any other remedy in Lessor's power whatsoever.
         Guarantor waives any defense arising by reason of any disability or
         other defense of Tenant or by reason of the cessation from any cause
         whatsoever of the liability of the Tenant. Until all indebtedness or
         other obligations of Tenant to Lessor shall have been paid in full,
         Guarantor shall ave no right to subrogation, and waives any right to
         enforce any remedy which Lessor now has or may hereafter have against
         Tenant, and waives any benefit or, and any right to participate in any
         security now or hereafter held by Lessor. Guarantor waives all
         presentments, demands for performance, notices of non-performance,
         protests, notices of protest, notices dishonor, notice of sales, and
         notices of acceptance of this Guarantee and of the existence, creation,
         or incurring of new or additional indebtedness.

6.0      SUBORDINATION OF TENANT'S DEBTS TO GUARANTOR. Guarantor agrees that the
         indebtedness of Tenant to Lessor, whether now existing or hereafter
         created, shall be prior to any claim that Guarantor may now have or
         hereafter acquire against Tenant, whether or not Tenant becomes
         insolvent. Guarantor hereby expressly subordinates any claim Guarantor
         may have against Tenant, upon any account whatsoever, to any claim that
         Lessor may now or hereafter have against Tenant. In the event of
         insolvency and consequent liquidation of the assets of Tenant, through
         bankruptcy, by an assignment for the benefit of creditors, by voluntary
         liquidation, or otherwise, the assets of Tenant applicable to the
         payment of the claims of both Lessor and Guarantor shall be paid to
         Lessor and shall be first applied by Lessor to the indebtedness of
         Tenant to Lessor. Guarantor does hereby assign to Lessor all claims
         which it may have or acquire against Tenant or any assignee or trustee
         in bankruptcy of Tenant; provided, that such assignment shall be
         effective only for the purpose of assuring to Lessor full payment of
         all indebtedness of Tenant to Lessor.

7.0      GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS: Guarantor warrants
         and agrees that each of the waivers set forth above is made with
         Guarantor's full knowledge of its significance and consequences, and
         that under the circumstances, the waivers are reasonable and not
         contrary to public policy or law. If any of such waivers is determined
         to be contrary to any applicable law or public policy, such waiver
         shall be effective only to the extent permitted by law.

8.0      WAIVER OF AUTHENTICATION OF VALIDITY OF ACTS OF CORPORATION OR
         PARTNERSHIP: If Tenant or Guarantor are corporations or partnerships,
         it is not necessary for Lessor to inquire into the powers of borrower
         or Guarantor or the officers, directors, partners, or agents acting or
         purporting to act on their behalf, and any indebtedness made or created
         in reliance upon the professed exercise of such powers shall be
         guaranteed hereunder.

9.0      OBLIGATIONS OF MARRIED PERSONS: Any married person who signs this
         Guaranty as the Guarantor hereby expressly agrees that recourse may be
         had against his or her separate property for all his or her obligations
         under this Guaranty.

10.0     JOINT AND SEVERAL LIABILITY OF GUARANTORS: This Agreement shall be
         binding upon Guarantor, and if more than one Guarantor, each of them
         jointly and severally, its successors and assignees, and shall inure to
         the benefit of and be enforceable by Lessor, and any holder of a
         mortgage on such Premises or any assignee under an assignment of
         Lessor's interest in the Lease given as security for any such mortgage,
         and their respective successors and assignees.

11.0     APPLICATION OF SINGULAR AND PLURAL IN CONTEXT AND CONSTRUCTION. In all
         cases where there are more than Guarantor, then all words used herein
         in the singular shall be deemed to have been used in the plural where
         the context and construction so require; and where Guaranty is executed
         by more than one Guarantor, the word "Guarantor" shall mean all and any
         one or more of them.

12.0     CALIFORNIA LAWS APPLICABLE: This Guaranty is governed by and construed
         in accordance with the laws of the state of California.

<PAGE>

13.0     AMENDMENTS MUST BE IN WRITING: Neither this Agreement nor any term
         hereof may be amended, waived, discharged or terminated orally, but
         only by an instrument in writing signed by the party against which such
         amendment, waiver, discharge or termination is sought to be charged.

14.0     INTEGRATED DOCUMENT: This writing is intended by the parties to be an
         integrated and final expression of the guarantee agreement and also is
         intended to be a complete and exclusive statement of the terms of that
         agreement. No course of prior dealing between the parties, no usage of
         trade, and no parol or extrinsic evidence of any nature shall be used
         to supplement, modify or vary any of the terms hereof. There are no
         conditions to the full effectiveness of this guarantee agreement. This
         Agreement may be executed in several counterparts, each of which shall
         be an original, but all of which together shall constitute one
         instrument.

IN WITNESS WHEREOF, the undersigned Guarantor has caused this Guarantee to be
executed as of the date of said Lease which is dated NOVEMBER 17, 1995.

                                             /s/ Jack Forness
                                             -----------------------------------
                                             Guarantor

                                                           12-5-95
                                             -----------------------------------
                                             Date

                                             Jack Forness
                                             -----------------------------------
                                             Please Print Name

<PAGE>

                                    EXHIBIT C

                         MISSION VALLEY BUSINESS CENTER
                               RULES & REGULATIONS

A.       TENANT AGREES AS FOLLOWS:

         1.       All loading and unloading of goods shall be done only at such
                  times, in the areas and through the entrances designated for
                  such purposes by Landlord.

         2.       The delivery or shipping of merchandise, supplies and fixtures
                  to and from leased premises shall be subject to such rules and
                  regulations as in the judgment of Landlord are necessary for
                  the proper operation of the leased premises or shopping
                  center.

         3.       All garbage and refuse shall be kept in the kind of container
                  specified by Landlord and shall be placed outside of the
                  premises, prepared for collection in the manner and at the
                  times and places specified by Landlord. If Landlord shall
                  provide or designate a service for picking up refuse and
                  garbage, Tenant shall use same at Tenant's cost. Tenant shall
                  pay the cost of removal of any of Tenant's refuse or rubbish.

         4.       No radio or television or other similar device shall be
                  installed without first obtaining in each instance Landlord's
                  consent in writing. No aerial shall be erected on the roof or
                  exterior walls of the premises, or on the grounds, without in
                  each instance the written consent of the Landlord. Any aerial
                  so installed without such written consent shall be subject to
                  removal without notice at any time.

         5.       No loud speakers, televisions, phonographs, radios or other
                  devices shall be used in a manner so as to be heard or seen
                  outside of the premises without the prior written consent of
                  Landlord.

         6.       The outside areas immediately adjoining the premises shall be
                  kept clean and free from dirt and rubbish by Tenant to the
                  satisfaction of Landlord, and Tenant shall not place or permit
                  any obstructions or merchandise in such areas.

         7.       Tenant and Tenant's employees shall park their cars only in
                  those portions of the parking area designated for that purpose
                  by Landlord. Tenant shall furnish Landlord with State
                  automobile license numbers assigned to Tenant's car or cars
                  and cars of Tenant's employee, within five days after taking
                  possession of the premises and shall thereafter notify
                  Landlord of any changes within five days after such changes
                  occur. In the event Tenant or its employees fail to park their
                  cars in designated parking areas as aforesaid, then Landlord
                  at its option shall charge Tenant $50.00 per day per car
                  parked in any area other than those designated, as and for
                  liquidated damages.

         8.       The plumbing facilities shall not be used for any other
                  purpose than that for which they are constructed, and no
                  foreign substance of any kind shall be thrown therein, and the
                  expense of any breakage, stoppage, or damage resulting from a
                  violation of this provision shall be borne by Tenant, who
                  shall, or whose employees, agents or invitees shall have
                  caused it.

         9.       Tenant shall use at Tenant's cost such pest extermination
                  contractor as Landlord may direct and at such intervals as
                  Landlord may require.

         10.      Tenant shall not burn any trash or garbage of any kind in or
                  about the leased premises, the shopping center, or within one
                  mile of the outside property line of the shopping center.

<PAGE>

         MISSION VALLEY BUSINESS CENTER RULES & REGULATIONS (continued)

         11.      All public entrances and exits to the leased premises shall be
                  kept unobstructed and open to the public at all times during
                  normal business hours.

         12.      Tenant shall not cause or permit any obnoxious or foul odors
                  that disturb the public or other tenants. Should such odors be
                  evident, Tenant shall be required to take immediate steps to
                  remedy same upon written notice from Landlord.

         13.      All signs will be uniform in material, shape, design, color
                  and lettering.

         14.      All employees except the Manager will park in off-site parking
                  areas. Parking lot will be for customers only. Vehicles may
                  not be left in parking lot area for longer than a 24 hour
                  period.

         15.      The outside areas immediately adjoining the premises shall be
                  kept clean and free from dirt and rubbish by Tenant to the
                  satisfaction of the Owner, and Tenant shall not place or
                  permit any obstruction or merchandise in such areas.

         16.      Lessee shall not fasten or cause to be fastened, any machinery
                  to any party wall or ceiling that will be a nuisance or shall
                  tend to disturb neighbors.

B.       Tenant agrees to comply with all such rules and regulations.

C.       Owner reserves the right from time to time to amend or supplement the
         foregoing rules and regulations, and to adopt and promulgate additional
         rules and regulations applicable to the leased premises. Reasonable
         notice of such rules and regulations and amendments and supplements
         thereto, if any, shall be given to the Tenant.

                                  BY: MISSION VALLEY CHRISTIAN FELLOWSHIP OF SAN
                                      DIEGO, A CALIFORNIA NON-PROFIT RELIGIOUS
                                      CORPORATION

                                  [ILLEGIBLE]
                                  ----------------------------------------------
                                  Lessee

                                      12-5-95
                                  ----------------------------------------------
                                  Date

<PAGE>

                                    EXHIBIT D

                               [MAP OF BUILDING 3]

                               [MAP OF BUILDING 2]

                               [MAP OF BUILDING 1]

<PAGE>

                         ADDENDUM TO ASSIGNMENT OF LEASE

              (4562-M Alvarado Canyon Road, San Diego, California)

                  THIS ADDENDUM TO ASSIGNMENT OF LEASE (this "Addendum") is
dated as of April___, 2000 (the "Effective Date"), and is made by MISSION VALLEY
CHRISTIAN FELLOWSHIP OF SAN DIEGO, a California non-profit religious
organization ("Assignor") for the benefit of RED ENVELOPE, INC. ("Assignee").

                  A.       WHEREAS, pursuant to that certain Assignment of
Lease, dated April 18, 2000, and that certain Acceptance of Assignment of Lease
of unknown date, Assignor is assigning and Assignee is assuming all of
Assignor's interest in that certain Lease (the "Lease"), dated November 17,
1995, by and between Assignor, as tenant, and Four Amigos, a Ca. Ltd., as
landlord ("Landlord"), for certain premises located in the County of San Diego,
State of California, as more particularly described in the Lease (the
"Premises").

                  NOW, THEREFORE, for good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the undersigned hereby
agrees as follows:

                  1.       Assignor's Representations.

                           a. Assignor is the Tenant under the Lease, a true and
complete copy of which is attached hereto as Exhibit "A" and made a part hereof.

                           b. The Lease embodies the entire agreement and
understanding between the parties thereto with respect to the Premises and the
Lease is in full force and effect and has not been amended, modified,
supplemented or superseded, except as shown in Exhibit "A", nor has Assignor's
interest in the Lease and/or the Premises previously been assigned, sublet or
otherwise transferred, nor has Assignor entered into any agreement to expand the
Premises, extend the term of the Lease or terminate the Lease, except as shown
in Exhibit "A".

                           c. The termination date of the present term of the
Lease is December 31, 2003.

                           d. All rent, taxes and other charges recited in the
Lease have been paid to the extent the same were payable prior to the Effective
Date and no such rent or other charges have been prepaid.

                           e. As of the Effective Date, there is no defense,
offset, claim or counterclaim by or in favor of Assignor against the obligations
of Assignor under the Lease or otherwise.

                           f. To the best of Assignor's knowledge, as of the
Effective Date there is no defense, offset, claim or counterclaim by or in favor
of Landlord against the obligations of Landlord under the Lease or otherwise.

<PAGE>

                           g. As of the Effective Date, there is no default of
Assignor under the Lease and no event has occurred and is continuing which with
the giving of notice or passage of time or both would constitute a default or
violation of the Lease by Assignor.

                           h. Assignor has not received notice of any lien,
sale, transfer, assignment, hypothecation or pledge of the Lease or the
Premises.

                           i. There is no suit, action, proceeding or audit
pending at law or in equity or before or by any court, administrative agency or
other governmental authority, or, to the knowledge of Assignor, threatened
against or affecting the undersigned or the Premises which brings into question
the validity of the Lease or which if determined adversely against Assignor
might impair the interest of Assignee under the Lease.

                           j. To the best of Assignor's knowledge, there is no
fact which materially or adversely affects or in the future may materially or
adversely affect the condition or operation of Assignee's business in the
Premises under the Lease.

                           k. Assignor has not used and is not aware of any
individual or entity who has used the Premises for any activities which,
directly or indirectly, involve the use, generation, treatment, storage,
transportation or disposal of any petroleum product or any toxic or hazardous
chemical, material, substance, pollutant or waste, except as follows:
____________________________________________________________________

                           1. The undersigned is authorized to execute this
Addendum on behalf of Assignor.

                           m. Assignor hereby acknowledges that Assignee will
rely upon the representations of Assignor in this Section 1 in connection with
the assumption by Assignee of Assignor's interest in the Lease.

                  IN WITNESS WHEREOF, Assignor has executed this Addendum the
day and year first above written.

                  "ASSIGNOR":

                  MISSION VALLEY CHRISTIAN FELLOWSHIP
                  OF SAN DIEGO, a California non-profit religious organization

                  By: [ILLEGIBLE]                     Its: President
                      -------------------------

                 "ASSIGNEE ":
                  RED ENVELOPE, INC.

                  By: [ILLEGIBLE]                     Its: President and COO
                      -------------------------            ---------------------

<PAGE>

                                  EXHIBIT "A"

                                    (Lease)

         A copy of the Lease is attached hereto.

                                   EXHIBIT "A"

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]