Document:

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                                                                    Exhibit 10.9

                                 MARINA VILLAGE

                            FULL SERVICE OFFICE LEASE
                             BASIC LEASE INFORMATION

Date:                               DECEMBER 1, 1998

Landlord:                           ALAMEDA REAL ESTATE INVESTMENTS,
                                    a California limited partnership

Tenant:                              BIOMEDICINES, INC.
                                     a Delaware corporation
<TABLE>
<CAPTION>
                                                                                                       LEASE REFERENCE

<S>                                  <C>                                                               <C>
Premises and Building:               Approximately 5,531 rentable square feet ("rsf") in 1301 Marina   Paragraph 1
                                     Village Parkway, Suite 200, Alameda, CA 94501

Term Commencement:                   March 1, 1999                                                     Paragraph 2

Term Expiration:                     February 28, 2004                                                 Paragraph 2

Term:                                5 years                                                           Paragraph 2

Base Rent:                           March 1, 1999 - February 28, 2000         $10,509/month
                                     March 1, 2000 - February 28, 2001         $10,785/month
                                     March 1, 2001 - February 28, 2002         $11,062/month
                                     March 1, 2002 - February 28, 2003         $11,339/month
                                     March 1, 2003 - February 28, 2004         $11,615/month

Tenant's Percentage Share:           5,531 rsf DIVIDED BY 84,384 rsf = 6.55%                           Paragraph 4(a)

Base year:                           1999                                                              Paragraph 4(a)

Use:                                 General Office                                                    Paragraph 6

Security Deposit:                    $11,062                                                           Paragraph 15

Tenant's Address for Notices:        UNTIL OCCUPANCY                         THEREAFTER                Paragraph 19
                                     909 Marina Village Parkway              1301 Marina
                                     No. 538                                 Village Parkway
                                     Alameda, CA 94501                       Alameda, CA 94501

Landlord's Address for Notices:

Alameda Real Estate Investments                        WITH A COPY TO:
c/o Vintage Properties                                 Marina Village
314 Lytton Avenue, Suite 200                           1150 Marina Village Pkwy., Suite 100
Palo Alto, CA 94301                                    Alameda, CA 94501
Attn:  Joseph R. Seiger                                Attn:  Property Manager
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                                       1
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<TABLE>
<S>                                                    <C>
                                                        LEASE REFERENCE
Exhibit(s) and Addendum(s):                             Paragraph 22

Exhibit A:  Diagram of leased Premises
Exhibit B:  Initial Improvement of the Premises
Exhibit C:  Space Plan and Outline Specifications
Addendum to Office Lease
</TABLE>

The provisions of the Lease identified above in the margin 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.

<TABLE>
TENANT:                                      LANDLORD:

<S>                                         <C>
BIOMEDICINES, INC.                           ALAMEDA REAL ESTATE INVESTMENTS,
a Delaware Corporation                       a California limited partnership

                                             By:  Vintage Alameda Investments, LP
                                                  a California limited partnership,
                                                  operating general partner

                                             By:  Vintage Properties - Alameda Commercial,
                                                  a California corporation,
                                                  Managing general partner
By:                                          By:
   -------------------------------              ---------------------------------

Title:                                       Title:
      ----------------------------                 ------------------------------
</TABLE>

                                       2
<PAGE>

                                 MARINA VILLAGE
                                  FULL SERVICE
                                  OFFICE LEASE

THIS LEASE, dated as of DECEMBER 1, 1998, for purposes of reference only, is
made and entered into by and between ALAMEDA REAL ESTATE INVESTMENTS, a
California limited partnership ("Landlord"), and BIOMEDICINES, INC., a Delaware
corporation ("Tenant").

         WITNESSETH
                             (SEE ADDENDUM TO LEASE)

1.       PREMISES. Landlord hereby leases to Tenant, and Tenant hereby leases
         from Landlord for the term of this Lease and at the rental and upon the
         conditions set forth below, the premises described in the Basic Lease
         Information and identified on the diagram attached hereto as Exhibit A.
         Landlord and Tenant agree that the amount of rentable square feet as
         set forth in the Basic Lease Information or, if such amount is an
         approximation, the final rentable square feet as determined upon
         completion of working drawings, shall be binding and conclusive for all
         purposes of this Lease. Subject to any obligations of Landlord as set
         forth in an exhibit to this Lease relating to initial improvement of
         the premises, Tenant shall accept the premises in its "as-is" condition
         at the commencement of the term. The premises are located within the
         building (the "Building") commonly known as described in the Basic
         Lease Information.

2.       TERM.

         a. 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. If Landlord, for any reason whatsoever,
         cannot deliver possession of 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, subject to any contrary provisions in any
         agreement with Landlord related to the initial improvement of the
         premises, rental shall be waived for the period between commencement of
         the term and the time when Landlord can deliver possession. If, for any
         reason beyond Landlord's reasonable control, Landlord is unable to
         obtain necessary governmental approvals to complete and deliver
         possession of the premises to Tenant, then Landlord may, upon notice to
         Tenant, terminate this Lease and both parties shall be relieved of any
         and all obligations hereunder.

                             (SEE ADDENDUM TO LEASE)

         b. Prior to the commencement of the term, Landlord shall complete the
         Tenant Improvements to be constructed or installed in the premises
         pursuant to Exhibit B attached hereto. The Tenant Improvements shall be
         deemed completed and possession of the premises delivered when Landlord
         has substantially completed the Tenant Improvements, subject only to
         the completion of minor items which do not materially impair the
         usability of

                                       1.
<PAGE>

         the Tenant Improvements by Tenant, and Tenant shall accept the premises
         upon notice from Landlord that the Tenant Improvements have been so
         completed.

3.       RENT.

                             (SEE ADDENDUM TO LEASE)

         a. Tenant shall pay to Landlord as rental the amount specified in the
         Basic Lease Information as the Base Rent, payable in advance on the
         commencement of the term and on or before the first day of each and
         every successive calendar month during the term. If the term commences
         on other than the first day of a calendar month, the first payment of
         rent shall be appropriately prorated on the basis of a 30-day month.
         The anniversary date for rental increases as set forth in the Basic
         Lease Information shall be the first calendar day of the month in which
         the Lease term commenced. If the last day of the term falls on a date
         other than the last day of the month, then the term shall be extended
         so that the last day of the term shall be the last calendar day of the
         month in which the term would otherwise end.

         b. Tenant shall pay, as additional rent, all amounts of money required
         to be paid to Landlord by Tenant under this Lease in addition to
         monthly rent, whether or not the same be designated "additional rent."
         If such amounts are not paid at the time provided ill this Lease, they
         shall nevertheless be a collectable as additional rent with the next
         installment of monthly rent thereafter failing due, but nothing herein
         contained shall be deemed to suspend or delay the payment of any amount
         of money at the time the same becomes due and payable hereunder, or
         limit any other remedy of Landlord.

         c. Tenant hereby acknowledges that late payment by the Tenant to
         Landlord of rent and other amounts due hereunder will cause Landlord to
         incur costs not contemplated by this Lease, the exact amount of which
         will be extremely difficult to ascertain. 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 trust deed
         covering the premises. Accordingly, if any installments of rent or any
         other sums due from Tenant shall not be received by Landlord when due,
         then Tenant shall pay to Landlord a late charge equal to six percent
         (6%) of such overdue amount. The parties hereby agree that such late
         charges represent a fair and reasonable estimate of the costs Landlord
         will incur by reason of late payment by Tenant. 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.

         d. Any amount due to Landlord, if not paid when due, shall bear
         interest from the date due until the date paid at the rate of ten
         percent (10%) per annum or, if a higher rate is legally permissible, at
         the highest rate legally permitted, 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.

         e. All payments due from Tenant to Landlord hereunder shall be made to
         Landlord without deduction or offset ill lawful money of the United
         States of America at Landlord's

                                       2.
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         address for notices hereunder, or to such other person or at such other
         place as Landlord may from time to time designate in writing to Tenant.

4.       TAXES AND OPERATING EXPENSES.

                             (SEE ADDENDUM TO LEASE)

         a. For each calendar year during the term after the year specified in
         the Basic Lease Information as the Base Year, Tenant shall pay its
         percentage share, as specified in the Basic Lease Information, of the
         increase in Property Taxes over Base Property Taxes and its percentage
         share of the increase in Operating Expenses for such calendar year over
         Base Operating Expenses. For the purposes hereof, "Property Taxes"
         shall mean all real property taxes and assessments or governmentally
         imposed fees or charges (and any tax levied wholly or partly in lieu
         thereof) levied, assessed, confirmed, imposed or which have become a
         lien against the Building (which for the purposes of defining "Property
         Taxes" shall include the land underlying the Building), and "Operating
         Expenses" shall mean: (1) all costs of management, operation,
         maintenance, and repair of the Building, (2) the cost of all insurance
         maintained by Landlord with respect to the Building and (3) the share
         allocable to the Building of dues and assessments payable under any
         reciprocal easement or common area maintenance agreements or
         declaration or by any owners' associations affecting the Building.
         "Base Property Taxes" shall mean those Property Taxes payable during
         the fiscal year ending in June of the Base Year and "Base Operating
         Expenses" shall mean Operating Expenses incurred by Landlord during the
         Base Year. Operating Expenses for both the Base Year and each
         subsequent calendar year shall be adjusted to equal Landlord's
         reasonable estimate of Operating Expenses had the total rentable area
         of the Building been 95% occupied.

         b. In the event the Building is not separately assessed for tax
         purposes, then the Property Taxes to be paid by Tenant shall be
         Tenant's percentage share of the product obtained by multiplying the
         total of the real property taxes and assessments levied against the tax
         parcel of which the Building is a part by a fraction, the numerator of
         which is the rentable area of the Building and the denominator of
         which is total rentable area of all improvements located within the tax
         parcel of which the Building is a part.

         c. Tenant shall pay to Landlord each month at the same time and in the
         same manner as monthly rent 1/12th of Landlord's reasonable estimate of
         the increase in Properly Taxes and Operating Expenses from Base
         Property Taxes and Base Operating Expenses from the then current
         calendar year. Within 90 days after the close of each calendar year, or
         as soon after such 90-day period as practicable, Landlord shall deliver
         to Tenant a statement of actual Property Taxes and Operating Expenses
         for such calendar year. Promptly following Tenant's request, but not
         more frequently than once each calendar year, Landlord shall provide
         back-up documentation to Tenant supporting Landlord's calculation of
         actual Property Taxes and Operating Expenses. If on the basis of such
         statement Tenant owes an amount that is less than the estimated
         payments for such calendar year previously made by Tenant, Landlord
         shall refund such excess to Tenant. If on the basis of such statement
         Tenant owes an amount that is more than the estimated payments for such
         calendar year previously made by Tenant, Tenant shall pay the
         deficiency to Landlord within 30 days after delivery of the statement
         together with interest as provided in Section 3(d). The obligations

                                       3.
<PAGE>

         of Landlord and Tenant under this subparagraph with respect to the
         reconciliation between estimated payments and actual Property Taxes and
         Operating Expenses for the last year of the term shall survive the
         termination of the Lease.

5.       OTHER TAXES. Tenant shall pay or reimburse Landlord for any taxes
         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 leasehold improvements made in
         or to the premises at Tenant's expense; for any taxes, if any,
         measured by or reasonably attributable to Tenant Improvements paid
         for by Landlord or Tenant in excess of $30.00 per square foot; for
         any taxes, assessments, fees, or charges imposed by any public
         authority or private community maintenance association upon or by
         reason of the development, possession, use or occupancy of the
         premises or the parking facilities used by Tenant in connection with
         the premises; and for any gross receipts tax imposed with respect to
         the rental payable hereunder.

                             (SEE ADDENDUM TO LEASE)

6.       USE.

         a. The premises shall be used and occupied by Tenant solely for the use
         set forth in the Basic Lease Information. Tenant shall, at Tenant's
         expense, comply promptly with all applicable statutes, ordinances,
         rules, regulations, orders, and requirements in effect during the term
         regulating Tenant's activities or the use by Tenant of the premises.
         Tenant shall not use or permit the use of the premises in any manner
         that will tend to create waste or a nuisance, or which shall tend
         unreasonably to disturb other tenants of the Building or adjacent
         buildings, nor shall Tenant place or maintain any signs on or visible
         from the exterior of the premises without Landlord's written consent,
         or use any corridors, sidewalks, or other areas outside of the premises
         for storage or any purpose other than access to the premises. Except as
         provided in paragraph 6(b) below, Tenant shall not use, keep, or permit
         to be used or kept on the premises any foul or noxious gas or
         substance, nor shall Tenant do or permit to be done anything in and
         about the premises, either in connection with activities hereunder
         expressly permitted or otherwise, which would cause a cancellation of
         any policy of insurance (including fire insurance) maintained by
         Landlord in connection with the premises or the Building or which would
         violate the terms of any covenants, conditions, or restrictions
         affecting the Building or the land on which it is located.

                             (SEE ADDENDUM TO LEASE)

         b. Tenant shall strictly comply with I statutes, laws. ordinances,
         rules, regulations, and precautions now or hereafter mandated or
         advised by any federal, state, local or other governmental agency with
         respect to the use, generation, storage, or disposal of hazardous,
         toxic, or radioactive materials (collectively, "Hazardous Materials").
         As herein used, Hazardous Materials shall include, but not be limited
         to, those materials identified in Sections 66680 through 66685 of Title
         22 of the California Code of Regulations, Division 4, Chapter 30, as
         amended from time to time, and those substances defined as "hazardous
         substances," "hazardous materials," "hazardous wastes," "chemicals
         known to cause cancer or reproductive toxicity," "radioactive
         materials," or other similar designations in the Comprehensive
         Environmental Response, Compensation and Liability Act of 1980, as

                                       4.
<PAGE>

         amended, 42 U.S.C. Section 9601 et seq., the Resource Conservation and
         Recovery Act, 42 U.S.C. Section 6901 et seq., the Hazardous Materials
         Transportation Act, 49 U.S.C. Section 1801 et seq., 33 U.S.C. Section
         1251 et seq., 42 U.S.C. Section 300(f) et seq., 42 U.S.C. 7401 et seq.,
         California Health and Safety code Section 25249.5 et seq., California
         Water Code Section 13000 et seq., California Health and Safety Code
         Section 39000 et seq. and any other governmental statutes, ordinances,
         rules, regulations, and precautions adopted pursuant to the preceding
         laws or other similar laws, regulations and guidelines now or hereafter
         in effect. Tenant shall not cause, or allow its employees, agents or
         invitees to cause, any Hazardous Materials to be used, generated,
         stored, or disposed of on or about the premises or the Building other
         than reasonable quantities of office and cleaning supplies in their
         retail containers. Tenant shall defend (with counsel approved by
         Landlord), indemnify and hold Landlord, its trustees, employees and
         agents, any entity having a security interest in the premises or the
         Building, and its and their employees and agents (collectively,
         "Indemnities") harmless from and against, and reimburse the Indemnities
         for, all liabilities, claims, costs, damages, and depreciation of
         property value, including all foreseeable and unforeseeable
         consequential damages, directly or indirectly arising out of the use,
         generation, storage, or disposal of Hazardous Materials by Tenant or
         any person claiming under Tenant, including, without limitation, the
         cost of any required or necessary investigation, monitoring, repair,
         cleanup, or detoxification and the preparation of any closure or other
         required plans, whether such action is required or necessary prior to
         or following the termination of this Lease, as well as penalties, fines
         and claims for contribution to the full extent that such action is
         attributable, directly or indirectly, to the use, generation, storage,
         or disposal of Hazardous Materials by Tenant or any person claiming
         under Tenant. Neither the consent by Landlord to the use, generation,
         storage, or disposal of Hazardous Materials nor the strict compliance
         by Tenant with all statutes, laws, ordinances, rules, regulations, and
         precautions pertaining to Hazardous Materials shall excuse Tenant from
         Tenant's obligation of indemnification set forth above. Tenant's
         obligations under this paragraph 6 shall survive the expiration or
         termination of this Lease.

7.       SERVICES.

         Landlord shall furnish the premises with electricity for lighting and
         the operation of office machines, heat, ventilating and air
         conditioning, elevator service, lighting replacement for building
         standard fixtures, restroom supplies, window washing with reasonable
         frequency, and daily janitorial service on normal business days. Normal
         Business days for the Building shall include Monday through Friday
         excluding the following holidays: New Years Day, Presidents Day,
         Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas.
         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 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 (iii) the limitation, curtailment,
         rationing or restrictions on use of water, electricity, gas or any
         other form of energy serving the premises. Tenant shall reimburse
         Landlord for the cost of providing heat, air conditioning and utility
         services in excess of that required for normal office use or during
         other than usual business hours for the Building of 8:00 a.m. to 6:00
         p.m. as well as the cost of providing power for other than normal
         desk-top office equipment.

                                       5.
<PAGE>

8.       MAINTENANCE, REPAIRS AND ALTERATIONS.

         a. Subject to the provisions of paragraph 10 below, and except for
         damages caused by Tenant, its agents or invitees, Landlord shall keep
         in good condition and repair the foundations and exterior walls and
         roof (structural and membrane) of the Building, rough plumbing and
         electrical utilities, and all common areas within the Building not
         leased to tenants. Tenant expressly waives the benefits of any statute
         which would otherwise afford Tenant the right to make repairs at
         Landlord's expense or to terminate this Lease because of Landlord's
         failure to keep the premises or the Building in good order, condition,
         and repair.

         b. Tenant shall, at Tenant's expense, maintain the interior portion of
         the premises (including, but not limited to, finished plumbing and
         electrical and lightbulbs) in good condition and repair. If Tenant
         fails to do so, Landlord may, but shall not be required to, enter the
         premises and put them in the same condition as upon the commencement of
         the Lease term, and Landlord's out-of-pocket costs thereof shall
         automatically become due and payable as additional rent. At the
         expiration of the term Tenant shall deliver up possession of the
         premises in the same condition received, only ordinary wear and tear
         and casualty and condemnation excepted.

         c. Tenant shall not, without Landlord's prior consent, make any
         alterations, improvements, or additions in or about the premises. In
         requesting Landlord's consent, Tenant shall submit to Landlord complete
         drawings and specifications describing such work and the identity of
         the proposed contractor. As a condition to giving such consent,
         Landlord may, among other things, require that Tenant remove any such
         alterations, improvements or additions at the expiration of the term,
         and restore the premises to their prior condition. Before commencing
         any work relating to alterations, additions, or improvements affecting
         the premises, Tenant shall notify Landlord of the expected date of
         commencement thereof and of the anticipated cost thereof, and shall
         furnish such information as shall reasonably be requested by Landlord
         substantiating Tenant's ability to pay for such work. Landlord shall
         then have the right at any time and from time to time to post and
         maintain on the premises such notices as Landlord reasonably deems
         necessary to protect the premises and Landlord from mechanics' liens or
         any other liens. Tenant shall not permit any mechanics' liens to be
         levied against the premises for any labor or materials furnished to
         Tenant or claimed to have been furnished to Tenant or to Tenant's
         agents or contractors in connection with work of any character
         performed or claimed to have been performed on the premises by or at
         the direction of Tenant. All alterations, improvements, or additions in
         or about the premises performed by or on behalf of Tenant shall be done
         in a first-class, workmanlike manner, shall not unreasonably lessen the
         value of the leasehold improvements in the premises, and shall be
         completed in compliance with all applicable laws, ordinances,
         regulations, and orders of any governmental authority having
         jurisdiction there over, as well as the requirements of insurers of the
         premises and the Building. Upon Landlord's request, Tenant shall remove
         any contractor, subcontractor, or material supplier (who is present at
         the request of Tenant) from the premises and the Building if the work-
         or presence of such person or entity results in labor disputes in or
         about the Building or the Marina Village Project, or damage to the
         premises, Building or Project. Unless Landlord requires their removal
         as set forth above, all alterations, improvements or additions which
         may be made on the premises shall become the property of Landlord and
         remain upon and be surrendered with the premises at the expiration

                                       6.
<PAGE>

         of the term; provided, however, that Tenant's machinery, equipment and
         trade fixtures, other than any which may be affixed to the premises so
         that they cannot be removed without material damage to the premises,
         shall remain the property of Tenant and may be removed by Tenant
         provided further Tenant shall be responsible for repairing all damage
         to the premises caused by such removal.

9.       INSURANCE AND INDEMNITY.

         a. Tenant shall obtain and maintain during the term of this Lease
         commercial general liability insurance with combined single limit for
         personal injury and property damage in a form and with carriers
         acceptable to Landlord in an amount not less than $1,000,000, and
         employees liability and workers' compensation insurance as required by
         law. Tenant's commercial general liability insurance policy shall be
         endorsed to provide that (i) it may not be canceled or altered in such
         a manner as adversely to affect the coverage afforded thereby without
         30 days' prior written notice to Landlord, (ii) Landlord is named as
         additional insured, (iii) the insurer acknowledges acceptance of the
         mutual waiver of claims by Landlord and Tenant pursuant to subparagraph
         (b) below, and (iv) such insurance is primary with respect to Landlord
         and that any other insurance maintained by Landlord is excess and
         noncontributing with such insurance. If, in the opinion of Landlord's
         insurance adviser, based on a substantial increase in recovered
         liability claims generally, the specified amounts of coverage are no
         longer adequate, such coverage shall be appropriately increased. Prior
         to the commencement of the term, Tenant shall deliver to Landlord a
         duplicate of such policy or a certificate thereof to Landlord for
         retention by it, with endorsements, and at least 30 days prior to the
         expiration of such policy or any renewal thereof, Tenant shall deliver
         to Landlord a replacement or renewal binder, followed by duplicate
         policy or certificate within a reasonable time thereafter. If Tenant
         fails to obtain such insurance or to furnish Landlord any such
         duplicate policy or certificate as herein required, Landlord may, at
         its election, without notice to Tenant and without any obligation to do
         so, procure and maintain such coverage and Tenant shall reimburse
         Landlord on demand as additional rent for any premium so paid by
         Landlord.

         b. Landlord hereby waives all claims against Tenant, and Tenant's
         officers, directors, partners, employees, agents and representatives
         for loss or damage to the extent that such loss or damage is insured
         against under any valid and collectible insurance policy insuring
         Landlord or would have been insured against but for any deductible
         amount under any such policy, and Tenant waives all claims against
         Landlord including Landlord's officers, directors, partners, employees,
         agents, and representatives for loss or damage to the extent such loss
         or damage is insured against under any valid and collectible insurance
         policy insuring Tenant or required to be maintained by Tenant under
         this Lease, or would have been insured against but for any deductible
         amount under any such policy.

         c. As this Lease does not involve the public interest and insurance is
         available to Tenant which will protect it against such claims, damage,
         injury or death, Tenant hereby waives all claims against Landlord for
         damage to any property or injury to or death of any person in, upon or
         about the premises or the Building arising at any time and from any
         cause. Tenant shall hold Landlord harmless from and defend Landlord
         against all claims (except such as arises from the sole negligence or
         willful misconduct of Landlord, its agents, employees or

                                       7.
<PAGE>

         contractors) (i) for damage to any property or injury to or death of
         any person arising from the use of the premises by Tenant, or (ii)
         arising from the negligence or willful misconduct of Tenant, its
         employees, agents, or contractors in, upon or about those portions of
         the Building other than the premises. 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 any claim or demand is
         to be made or may be made. The provisions of this paragraph 9 shall
         survive the termination of this Lease with respect to any damage,
         injury, or death occurring prior to such termination.

10.      DAMAGE OR DESTRUCTION.

                             (SEE ADDENDUM TO LEASE)

         a. If during the term the premises are totally or partially destroyed,
         or any other portion of the Building is damaged in such a way that
         Tenant's use of the premises is materially interfered with, from a risk
         which is wholly covered by insurance, then subject to the availability
         of insurance proceeds Landlord shall proceed with reasonable diligence
         to repair the damage or destruction and this Lease shall not be
         terminated; provided, however, that if in the opinion of Landlord's
         architect the work of repair cannot be completed in 90 days Landlord
         may at its election terminate the Lease by notice given to Tenant.

         b. If during the term the premises are totally or partially destroyed,
         or any other portion of the Building is damaged in such a way that
         Tenant's use of the premises is materially interfered with, from a risk
         which is not wholly covered by insurance, Landlord may at its election
         by notice given to Tenant restore the premises or terminate this Lease.

         c. In case of destruction or damage which materially interferes with
         Tenant's use of the premises, if this Lease is not terminated as above
         provided, rent shall be abated during the period required for the work
         of repair based upon the degree of interference with Tenant's use of
         the premises. Except for abatement of rent, Tenant shall have no claim
         against Landlord for any loss suffered by Tenant due to damage or
         destruction of the premises or any work of repair undertaken as herein
         provided. Tenant expressly waives the provisions of Sections 1932 and
         1933(4) of the California Civil Code.

                             (SEE ADDENDUM TO LEASE)

11.      EMINENT DOMAIN. If all or any part of the premises shall be taken as a
         result of the exercise of power 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 if 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 for Tenant's purposes. 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

                                       8.
<PAGE>

         the premises which does not result in a termination of this Lease, the
         monthly rental thereafter to be paid shall be equitably reduced on a
         square footage basis.

12.      ASSIGNMENT AND SUBLETTING.

                             (SEE ADDENDUM TO LEASE)

         a. Tenant shall not assign this Lease or any interest herein or sublet
         the premises or any part thereof without the prior consent of Landlord,
         which consent shall not be unreasonably withheld; Tenant shall not
         hypothecate this Lease or any interest herein or permit the use of the
         premises by any party other than Tenant without the prior consent of
         Landlord, which consent may be withheld by Landlord in its absolute
         discretion. 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. 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, current financial statements of any proposed
         assignee or sublessee and all other information reasonably requested by
         Landlord concerning the proposed transaction and the parties involved
         therein.

         b. 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 the proposed assignee or sublessee is a governmental
                  agency;

                  2. if, in Landlord's reasonable judgment, the use of the
                  premises by the proposed assignee or sublessee would entail
                  any alterations which would lessen the value of the leasehold
                  improvements in the premises, or would require increased
                  services by Landlord;

                  3. 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;

                  4. in the case of a subletting of less than the entire
                  premises, if the subletting would result in the division of
                  the premises into more than two subparcels, would create a
                  subparcel of a configuration that is not suitable for normal
                  leasing purposes, or would require access to be provided
                  through space leased or held for lease to another tenant or
                  improvements to be made outside of the premises; or

                  5. if, at the time consent is requested or at any time prior
                  to the granting of consent, Tenant is in default under the
                  Lease or would be in default under the Lease but for the
                  pendency of any grace or cure period under paragraph 13 below.

                                       9.
<PAGE>

         c. If at any time or from time to time during the term of this Lease
         Tenant desires to sublet all or any part of the premises, Tenant shall
         give notice to Landlord setting forth the terms of the proposed
         subletting and the space so proposed to be sublet. Landlord shall have
         the option, exercisable by notice given to Tenant within 20 days after
         Tenant's notice is given, either to sublet from Tenant such space at
         the rental and other terms set forth in Tenant's notice, or, if the
         proposed subletting is for the entire premises for a sublet term ending
         within the last year of the term of this Lease, to terminate this
         Lease. If Landlord does not exercise such option, Tenant shall be free
         to sublet such space to any third party on the same terms set forth in
         the notice given to Landlord, subject to obtaining Landlord's prior
         consent as herein above provided.

         d. As used in this paragraph 12, the term "assign" or "assignment"
         shall include, without limitation, any sale, transfer, or other
         disposition of all or any position of Tenant's estate under this Lease,
         whether voluntary or involuntary, and whether by operation of law or
         otherwise including any of the following:

                  1. If Tenant is a corporation: (i) any dissolution, merger,
                  consolidation, or other reorganization of Tenant or (ii) a
                  sale of more than 50% of the value of the assets of Tenant or
                  (iii) if Tenant is a corporation with fewer than 500
                  shareholders, sale or other transfer of a controlling
                  percentage of the capital stock of Tenant. The phrase
                  "controlling percentage" means the ownership of, and the right
                  to vote, stocks possessing at least 50% of the total combined
                  voting power of all classes of Tenant's stock issues,
                  outstanding and permitted to vote for the election of
                  directors;

                  2. If Tenant is a trust the transfer of more than 50% of the
                  beneficial interest of Tenant, or the dissolution of the
                  trust;

                  3. If Tenant is a partnership or joint venture, the
                  withdrawal, or the transfer of the interest of any general
                  partner or joint venturer or the dissolution of the
                  partnership or joint venture;

                  4. If Tenant is composed of tenants-in-common, the transfer of
                  interest of any co-tenants or the partition or dissolution of
                  the cotenancy.

         e. No sublessee (other than Landlord if it exercises its option
         pursuant to subparagraph (c) above) shall have a right further to
         sublet, 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.

         f. In the case of an assignment, one half of all sums or other economic
         consideration received by Tenant as a result of such assignment shall
         be paid to Landlord. In the event such consideration is received by
         Tenant in installments, the portion of each installment to be paid to
         Landlord shall be determined by multiplying the installment by a
         fraction, the numerator of which is the total amount of the foregoing
         permitted deductions and the denominator of which is the total
         consideration receivable by Tenant as a result of such assignment.

                                      10.
<PAGE>

         g. In the case of a subletting, one half of all sums or economic
         consideration received by Tenant as a result of such subletting shall
         be paid to Landlord after first deducting (i) the rental due hereunder,
         prorated to reflect only rental allocable to the sublet portion of the
         premises, (ii) 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 (iii) the cost of any real estate commissions incurred in
         connection with such subletting, amortized over the term of the
         sublease.

         h. Regardless of Landlord's consent, 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 or 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.

         i. In the event Tenant shall assign or sublet the premises or request
         the consent of Landlord to any assignment or subletting or if Tenant
         shall request the consent of Landlord for any act that Tenant proposes
         to do, then Tenant shall pay Landlord's reasonable attorneys' fees
         incurred in connection therewith.

13.      DEFAULT BY TENANT.

         a. The following events shall constitute events of default under this
         Lease:

                  1. a default by Tenant in the payment of any rent or other sum
                  payable hereunder for a period of 3 business days after notice
                  of delinquency;

                  2. 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 10 days after notice by Landlord or
                  beyond the time reasonably necessary for cure if the default
                  is of the nature to require more than 10 days to remedy,
                  provided that if Tenant has previously defaulted in the
                  performance of the same obligation one or more times in any
                  twelve-month period and notice of such default has been given
                  by Landlord in each instance, no cure period shall thereafter
                  be applicable hereunder;

                  3. the bankruptcy or insolvency of Tenant, any transfer by
                  Tenant in fraud of creditors, 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

                                      11.
<PAGE>

                  unless, in the event any such proceedings are involuntary,
                  Tenant is discharged from the same within 60 days thereafter;
                  the appointment of a receiver for a substantial part of the
                  assets of Tenant; or the levy upon this Lease or any estate of
                  Tenant hereunder by any attachment or execution; and

                  4. the abandonment of the premises.

         b. 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,
         do any of the following:

                  1. Landlord shall have the right, so long as such default
                  continues, to give notice of termination to Tenant, and on the
                  date specified in such notice this Lease shall terminate.

                  2. In the event of any such termination of this Lease,
                  Landlord may then or at any time thereafter, reenter the
                  premises and remove therefrom all persons and property and
                  again repossess and enjoy the premises, without prejudice to
                  any other remedies that Landlord may have by reason of
                  Tenant's default or of such termination.

                  3. In the event of any such termination of this Lease, and in
                  addition to any 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,
                  (i) 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 balance of the term after
                  the time of award exceeds the amount of rental loss that
                  Tenant proves could be reasonably avoided, (ii) all reasonable
                  legal expenses and other related costs incurred by Landlord
                  following Tenant's default, (iii) all out-of-pocket costs
                  incurred by Landlord in restoring the premises to the same
                  condition as existed on the Commencement Date, or in
                  remodeling, renovating or otherwise preparing the premises for
                  reletting, and (iv) all costs (including, without limitation,
                  any standard brokerage commissions) incurred by Landlord in
                  reletting the premises.

                  4. For the purpose of determining the unpaid rent in the event
                  of a termination of this Lease, or the rent due hereunder in
                  the event of a reletting of the premises, the monthly rent
                  reserved in this Lease shall be deemed to be the sum of the
                  rental due under paragraph 3 above and the amounts last
                  payable by Tenant pursuant to paragraph 4 above.

                  5. 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.

         c. 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 under this Lease, including

                                      12.
<PAGE>

         the right to recover rental as it becomes due under this Lease. Acts
         of maintenance or preservation, efforts to 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.

         d. 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.

14.      DEFAULT BY LANDLORD. Landlord shall not be in default unless Landlord
         fails to perform obligations required of Landlord hereunder within a
         reasonable time, but in no event later than 30 days after notice by
         Tenant to Landlord specifying wherein Landlord has failed to perform
         such obligation; provided, however, that if the nature of Landlord's
         obligation is such that more than 30 days are required for performance,
         then Landlord shall not be in default if Landlord commences performance
         within such 30 day period and thereafter diligently prosecutes the same
         to completion.

                             (SEE ADDENDUM TO LEASE)

15.      SECURITY DEPOSIT. On execution of this Lease Tenant shall deposit with
         Landlord the sum specified in the Basic Lease Information (the
         "Deposit"). The Deposit, together with any increases required as set
         forth in the Addendum, shall be held by Landlord is security for the
         performance by Tenant of all of the provisions of this Lease. If Tenant
         fails to pay rent or other charges due hereunder, or otherwise defaults
         with respect to any provisions of this Lease, Landlord may use, apply,
         or retain all or any portion of the Deposit for the payment of any rent
         or other charge in default, or the payment of any other sum to which
         Landlord may become obligated by reason of Tenant's default or to
         compensate Landlord for any loss or damage which Landlord may suffer
         thereby. If Landlord so uses or applies all or any portion of the
         Deposit, then within 10 days after demand therefor Tenant shall 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. If Tenant performs all
         of Tenant's obligations hereunder, the Deposit, or so much thereof as
         has not theretofore been applied by Landlord, shall be returned,
         without payment of interest for its use, to Tenant (or, at Landlord's
         option, to the last assignee, if any, of Tenant's interest hereunder)
         at the expiration of the term hereof, and after Tenant has vacated the
         premises. No trust relationship is created herein between Landlord and
         Tenant with respect to the Deposit.

16.      ESTOPPEL CERTIFICATE.

         a. Tenant shall at any time upon not more than 10 days' prior notice
         from Landlord execute, acknowledge and deliver to Landlord a statement
         certifying (i) 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) (ii) the date to which the rent, security deposit, and other
         sums payable hereunder have been paid, (iii) acknowledging that there
         are not, to Tenant's knowledge, any uncured defaults on the part of
         Landlord hereunder, or specifying such defaults, if any, which are
         claimed, and (iv)

                                      13.
<PAGE>

         such other matters as may reasonably be requested by Landlord. Any such
         statement may be conclusively relied upon by any prospective purchaser
         or encumbrancer of the Building.

         b. Tenant's failure to deliver such statement within such time shall be
         conclusive upon Tenant, (i) that this Lease is in full force and
         effect, without modification except as may be represented by Landlord,
         (ii) that there are no uncured defaults in Landlord's performance, and
         (iii) that not more than one month's rent has been paid in advance.

         c. If the Landlord desires to finance or refinance the Building, Tenant
         agrees to deliver to any lender designated by Landlord such financial
         statements of Tenant as may be reasonably required by such lender. All
         such financial statements shall be received by Landlord and its lender
         in confidence and shall be used for the purposes herein set forth.
         Tenant's obligations under this paragraph shall be limited to
         delivering financial statements existing as of the date of the request.

17.      SUBORDINATION. This Lease, at Landlord's option, shall subordinate to
         any ground lease, first 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 and to all
         renewals, modifications, consolidations, replacements and extensions
         thereof. Notwithstanding such subordination, Tenant's right to quiet
         possession of the premises shall not be disturbed if Tenant is not in
         default and so long as Tenant shall pay the rent and observe and
         perform all of the provisions of this Lease, unless this Lease is
         otherwise terminated pursuant to its terms. If any first mortgagee,
         trustee, or ground lessor shall elect to have this Lease prior to the
         lien of its first mortgage, deed of trust or ground lease, and shall
         give notice thereof to Tenant, this Lease shall be deemed prior to such
         first mortgage, deed of trust, or ground lease, whether this Lease is
         dated prior to or subsequent to the date of said first mortgage, deed
         of trust or ground lease or the date of recording thereof. If any first
         mortgage or deed of trust to which this Lease is subordinate is
         foreclosed or a deed in lieu of foreclosure is given to the first
         mortgagee or beneficiary, Tenant shall attorn to the purchaser at the
         foreclosure sale or to the grantee under the deed in lieu of
         foreclosure; if any ground lease to which this Lease is subordinate is
         terminated, Tenant shall attorn to the ground lessor. Tenant agrees to
         execute any documents required to effectuate such subordination or to
         make this Lease prior to the lien of any first mortgage, deed of trust
         or ground lease, as the case may be, or to evidence such attornment.
         Tenant shall give any holder of a first mortgage or deed of trust
         placed upon the Building ("Holder"), in compliance with the notice
         provisions of this Lease, a copy of any notice of default served upon
         Landlord, provided that prior to such-notice, Tenant has been notified
         in writing (by way of notice of assignment of rents and leases, or
         otherwise) of the address of such Holder. If Landlord shall have failed
         to cure such default w or such longer period of time as Landlord shall
         have the right to cure the default under the Lease, holder shall have
         the right, but not the duty, to cure such default within an additional
         thirty (30) day period or if such default cannot be cured within that
         time, then such additional time as may be necessary to cure such
         default, including the time necessary to foreclose or otherwise
         terminate its first mortgage or deed of trust if necessary to
         effectuate such cure.

                             (SEE ADDENDUM TO LEASE)

                                      14.
<PAGE>

18.      ATTORNEYS' FEES. If, as a result of any breach or default in the
         performance of any of the provisions of this Lease, Landlord uses the
         services of any attorney in order to secure compliance with such
         provisions or recovered damages therefor, or to terminate this Lease or
         evict Tenant, Tenant shall reimburse Landlord for any and all
         attorneys' fees and expenses in such amount as the court may adjudge
         reasonable, provided that if Tenant shall be the prevailing party in
         any legal action brought by Landlord against Tenant, Tenant will be
         entitled to recover any and all attorneys' fees and expenses in such
         amount as the court may adjudge reasonable.

19.      NON-DISCRIMINATION. Tenant covenants for itself, its heirs, executors,
         administrators, and assigns, and all persons claiming under or through
         it, and this Lease is made and accepted upon it subject to the
         condition that there shall be no discrimination against or segregation
         of any person or group of persons, on account of race, color, creed,
         religion, sex, marital status, national origin, or ancestry in the
         leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment
         of the premises herein leased nor shall the Tenant itself, or any
         person claiming under or through it, establish or permit any such
         practice or practices of discrimination or segregation with reference
         to the selection, location, number, use, or occupancy of tenants,
         subtenants, or vendees in the premises.

20.      NOTICES. All notices, consents, demands, and other communications from
         one party to the other 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, or, to Landlord at
         the address specified in the Basic Lease Information, or to such other
         place and with such other copies as Landlord may from time to time
         designate in a notice to Tenant.

21.      GENERAL PROVISIONS.

         a. This Lease shall be governed by and construed in accordance with the
         laws of the state of California.

         b. 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.

         c. This Lease contains all agreements of the parties with respect to
         any matter mentioned herein and only may be modified in writing, signed
         by the parties.

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

                                      15.
<PAGE>

         e. If Tenant remains in possession of the premises or any part thereof
         after the expiration of the term with the consent of Landlord, such
         occupancy shall be a tenancy from month to month at a rental in the
         amount of one hundred fifty percent (150%) of the last month's rental
         during the term, plus all other charges payable hereunder, and upon all
         of the terms hereof.

         f. Subject to the provisions of this Lease restricting assignment or
         subletting by Tenant this Lease shall bind the parties. their personal
         representatives, successors, and assigns.

                             (SEE ADDENDUM TO LEASE)

         g. Landlord and Landlord's agents shall have the right to enter the
         premises at reasonable times for the purpose of inspecting the same,
         showing the same to prospective purchasers, tenants, lenders and other
         interested parties, and making such alterations, repairs, improvements,
         or additions to the premises or to the Building as Landlord may deem
         necessary or desirable. Landlord may at any time during the last 120
         days of the term place on or about the premises any ordinary "For
         Lease" sign.

         h. Tenant shall not conduct any auction at the premises without
         Landlord's prior consent.

         i. The voluntary or other surrender of this Lease by Tenant, the mutual
         cancellation thereof or the termination of this Lease by Landlord as a
         result of Tenant's default shall, at the option of Landlord, terminate
         all or any existing subtenancies or may, at the option of Landlord,
         operate as an assignment to Landlord of any or all of such
         subtenancies.

         j. If Tenant is a corporation, each individual executing this Lease on
         behalf of Tenant represents and warrants that he is duly, authorized to
         execute and deliver this Lease on behalf of the corporation in
         accordance with a duly adopted resolution of the Board of Directors.

         k. The term "Landlord" as used herein means the then owner of the
         Building and in the event of a sale of the Building the selling owner
         shall be automatically relieved of all obligations of Landlord
         hereunder, except for acts or omissions of Landlord theretofore
         occurring.

         l. The term "day" as used herein means a calendar day.

         m. The obligations of Landlord under this Lease do not constitute
         personal obligations of the partners, directors, officers,
         shareholders, or trustees of Landlord, Tenant shall look solely to
         Landlord and its assets for the realization of any claims against
         Landlord and not to the assets of any of the partners of Landlord, and
         Tenant expressly waives any and all right to proceed against any of its
         partners or the officers, directors, trustees, shareholders, agents, or
         employees of any of such partners, except to the extent of their
         interest in Landlord.

         n. On request by Landlord, Tenant shall furnish Landlord with
         satisfactory evidence of payment of Tenant's business personal property
         taxes pertaining to the premises and deliver copies of such business
         personal property tax bills to Landlord.

                                      16.
<PAGE>

22.      EXHIBITS. The exhibits and addendum, if any, specified in the Basic
         Lease Information are attached to this Lease and by this reference made
         a part hereof.

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

<TABLE>
<S>                                             <C>
TENANT:                                           LANDLORD:

BIOMEDICINES, INC.,                               ALAMEDA REAL ESTATE INVESTMENTS,
a Delaware corporation,                           a California limited partnership

                                                  By:      Vintage Alameda Investments, LP
                                                           a California limited partnership,
                                                           operating general partner

                                                  By:      Vintage Properties-Alameda Commercial,
                                                           a California corporation,
                                                           managing general partner

By:                                               By:

Title:            CEO                             Title:       President
      -----------------------------------               -------------------------------------------
Date or Execution                                 Date of Execution
By Tenant:        8 Jan 99                        By Landlord:      January 11, 1999
          -------------------------------                     -------------------------------------
</TABLE>

                                      17.
<PAGE>

<PAGE>

                                    [GRAPHIC]

                [OUTLINE OF LEASED PREMISES BIOMEDICINES, INC.]

                                       1.
<PAGE>

                                    EXHIBIT B
                       INITIAL IMPROVEMENT OF THE PREMISES
                                 MARINA VILLAGE

1.       TENANT IMPROVEMENT. Landlord, through its general contractor, shall
         furnish and install within the premises substantially in accordance
         with the space plan and outline specifications set forth in Exhibit C,
         partitions, doors, lighting fixtures, acoustical ceilings, window
         coverings, electrical outlets, telephone outlets, heating, ventilating
         and air conditioning, fire sprinklers and other items of general
         construction (the "Tenant Improvements"). In addition, at its expense,
         Landlord shall cause to be performed any construction or modifications
         which may be required to bring the public restrooms and path of travel
         serving the Building into compliance with the Americans with
         Disabilities Act. Landlord and Tenant acknowledge that they have
         approved the space plan and outline specifications identified in
         Exhibit C. The quantities, character and manner of installation of all
         of the Tenant Improvements shall be subject to the limitations imposed
         by any applicable governmental regulations.

2.       ALLOCATION OF COST. Except as otherwise expressly set forth herein,
         Tenant shall bear the entire cost of the Tenant Improvements, permits,
         and all architectural and engineering services.

3.       PAYMENT OF TENANT'S COST. Tenant shall pay to Landlord all amounts due
         under the terms of this Exhibit B within ten days after billing by
         Landlord. Bills may be rendered during the progress of the plans and
         specifications and the Tenant Improvements so as to enable Landlord to
         pay permit and processing fees and its architects, engineers and
         general contractor without advancing Landlord's funds. Landlord shall
         not be obligated to continue installation of the Tenant Improvements if
         Tenant does not pay the cost of the Tenant Improvements to Landlord
         when due. If Tenant does not make timely payment to Landlord, Landlord
         may, but shall not be obligated to, advance Landlord's funds to pay
         Tenant's share of the cost of the Tenant Improvements and any funds so
         advanced shall be payable to Landlord upon demand as additional rent
         and shall bear interest as provided in paragraph 3(d) of the Lease.

4.       PLANS AND SPECIFICATIONS.

         a. Landlord, through its architects and engineers, shall prepare
         construction drawings for the pricing and construction of the Tenant
         Improvements. At its own expense, Tenant shall provide Landlord's
         architects and engineers with sufficient instructions, as described
         below, to enable Landlord's architects and engineers to prepare
         complete plans and specifications for the Tenant Improvements.

         b. Tenant's instructions to Landlord's architects and engineers shall
         include all relevant information, including, without limitation,
         Tenant's budget, special floor loadings, floor openings, air
         conditioning, plumbing and electrical loads, location and size of
         telephone equipment, location and size of all of the functional
         requirements and the nature of desired finishes, casework, millwork,
         lighting and any special acoustic treatments. Tenant and Landlord shall
         diligently pursue preparation of all such plans and specifications
         which shall

                                       1.
<PAGE>

         be subject to approval by Landlord. If information submitted by Tenant
         is not sufficient for Landlord's purposes, Landlord shall so notify
         Tenant within fifteen days after receipt of such information specifying
         the required additional information. Within five business days
         thereafter, Tenant shall provide the additional information to Landlord
         in a form sufficient to permit Landlord, its architects and engineers,
         and general contractor to proceed with the construction of the Tenant
         Improvements. In the course of the preparation of the construction
         drawings, Tenant and Landlord's architects and engineers shall consult
         with each other to facilitate Tenant's approval thereof when completed.
         Tenant shall approve or reasonably disapprove of the construction
         drawings within 5 days.

         c. Upon completion and approval of the construction drawings by
         Landlord and Tenant, Landlord shall obtain and submit to Tenant a bid
         for the cost of the Tenant Improvements from Landlord's contractor.
         Tenant shall approve or disapprove such bid within the time provided in
         paragraph 7 below. If disapproved, then within seven days following
         such disapproval Tenant shall provide Landlord with additional
         information adequate to permit the revision of the plans and
         specifications and re-pricing of the Tenant Improvements and the plans
         and specifications as so revised shall be deemed approved.

5.       CHANGES. Tenant shall bear the cost of any changes in the Tenant
         Improvements requested by Tenant after final approval of the bid plans
         and specifications by Tenant, together with a fee for Landlord's
         construction administration in an amount not to exceed 15% of the cost
         of such changes. In the event Landlord or its general contractor is
         instructed by Tenant to proceed with such changes without approval of
         such increases by Tenant, the amount thereof shall be as determined by
         Landlord upon completion of the Tenant Improvements, subject only to
         Landlord's furnishing to Tenant of appropriate back-up information from
         Landlord's general contractor concerning increased costs and
         construction delays.

6.       TENANT VENDORS.

         a. Any items or work beyond the scope of normal construction trades for
         which Tenant contracts separately (hereinafter "Tenant Vendor's Work"),
         shall be subject to Landlord's reasonable policies and schedules and
         shall be conducted in such a way as not to unreasonably hinder, cause
         any disharmony with or delay work of improvements in the Building. To
         this end, Tenant shall conform with a schedule determined by Landlord's
         contractor and no work shall be done by Tenant which would cause
         Landlord's contractor to be dependent upon such work for completion of
         Landlord's contractor's work. If necessary in order to avoid
         interference with Landlord's contractor's work, all of Tenant Vendor's
         Work shall be done with labor in accordance with the Northern
         California Master Labor Agreement. In no event shall work involving the
         sprinkler, plumbing, mechanical, electrical power, lighting or fire
         safety systems of the Building be performed by any contractor or
         subcontractor other than Landlord's approved subcontractors and all
         telecommunications and other special electrical equipment shall be
         installed under the supervision of Landlord's electrical subcontractor.

         b. Not less than five days prior to the date Tenant desires to commence
         Tenant Vendor's Work, it shall submit a written request to Landlord
         setting forth or accompanied by all of the following:

                                       2.
<PAGE>

             1. A description and schedule for the work to be performed;

             2. The names and addresses of all contractors, subcontractors and
             material suppliers who will perform the Tenant Vendor's Work;

             3. The approximate number of individuals, itemized by trade, who
             will be present in the premises;

             4. Copies of all plans and specifications pertaining to the Tenant
             Vendor's Work;

             5. Copies of all licenses and permits which may be required in
             connection with the performance of Tenant Vendor's Work;

             6. Certificates of insurance indicating compliance with the
             insurance requirements set forth in the Lease;

             7. Performance and labor and materials bonds in an amount not less
             than Landlord's reasonable estimate of the total cost of such
             Tenant Vendor's Work and, at Landlord's request, evidence of the
             availability of funds sufficient to pay for all such Tenant
             Vendor's Work.

         All of the foregoing shall be subject to Landlord's approval, which
         approval shall not be unreasonably withheld.

         c. Tenant shall be responsible for any out-of-pocket expenses incurred
         by Landlord due to inadequate cleanup by those performing Tenant
         Vendor's Work.

         d. If, in Landlord's reasonable opinion, any supplier, contractor or
         workman performing Tenant Vendor's Work hinders or delays, directly or
         indirectly, any other work of improvement in the Building or performs
         any work which may or does impair the quality, integrity or performance
         of any portion of the Building, Landlord shall give notice to Tenant
         and immediately thereafter, Tenant shall cause such supplier,
         contractor or workman immediately to remove all of its tools, equipment
         and materials and to cease working in the Building. As additional rent
         under the Lease, Tenant shall reimburse Landlord for any reasonable
         repairs or corrections of the improvements or of any portion of the
         Building or the reasonable cost of any delays caused by or resulting
         from the actions or omissions of anyone performing Tenant Vendor's
         Work.

7.       COMPLETION AND RENTAL COMMENCEMENT DATE. Notwithstanding anything to
         the contrary contained in the Lease, Tenant's obligation for the
         payment of rental under the Lease shall not commence until Landlord has
         substantially completed the Tenant Improvements, subject only to the
         completion of punch list items. Substantial completion shall be as
         determined by issuance of a Temporary Certificate of Occupancy issued
         by the City of Alameda. If Landlord shall be delayed in substantially
         completing the Tenant Improvements as a result of:

         a. Tenant's changes to plans and specifications after approval thereof
         pursuant to Paragraph 4(c) above;

                                       3.
<PAGE>

         b. Tenant's request for materials, finishes, or installations other
         than tenant standard improvements;

         c. Tenant's request for changes in the Tenant Improvements after
         commencement of construction;

         d. Hindrance or disruption of the work of Landlord's contractor
         resulting from Tenant Vendor's Work or any other reason under Tenant's
         control; or

         e. Cessation or termination of work in the premises due to Tenant's
         failure to pay when due all amounts payable by Tenant pursuant to this
         Exhibit B;

         then the commencement date of Tenant's obligation for payment of rental
         shall be advanced by the number of days of such delay. All time periods
         referred to in this Exhibit B shall be computed on a calendar basis
         with no allowance for holidays or weekends.

IN WITNESS WHEREOF, the parties have executed this Exhibit B on the respective
dates they executed the Lease.

<TABLE>
TENANT:                                             LANDLORD:
<S>                                                <C>
BIOMEDICINES, INC.,                                 ALAMEDA REAL ESTATE INVESTMENTS,
a Delaware corporation                              a California limited partnership

                                                    By:      Vintage Alameda Investments, LP
                                                             a California limited partnership,
                                                             operating general partner

                                                    By:      Vintage Properties-Alameda Commercial,
                                                             California corporation,
                                                             managing general partner

By:                                                 By:
   ----------------------------------                  ---------------------------------------------
Its:          CEO                                   Its:         President
    ---------------------------------                   --------------------------------------------
</TABLE>

                                       4.
<PAGE>

                                    [GRAPHIC]

                [OUTLINE OF LEASED PREMISES BIOMEDICINES, INC.]

                                       1.
<PAGE>

                                   ADDENDUM TO
                                 MARINA VILLAGE
                            FULL SERVICE OFFICE LEASE

THIS ADDENDUM TO MARINA VILLAGE FULL SERVICE OFFICE LEASE shall constitute part
of that certain Marina Village Full Service Office Lease dated as of December 1,
1998 (the "Lease"), by and between ALAMEDA REAL ESTATE INVESTMENTS, a California
limited partnership ("Landlord"), and BIOMEDICINES, INC., a Delaware
corporation.

1.       AMENDMENT OF PARAGRAPH 1. The following language is hereby added to the
         end of Paragraph 1:

         "Landlord shall deliver the Premises to Tenant with HVAC and electrical
         in good working order. To the best of Landlord's actual knowledge,
         without having conducted any investigation, neither the Building nor
         the Premises contain any Hazardous Materials."

2.       AMENDMENT OF PARAGRAPH 2(b). The following language is hereby added to
         the end of Paragraph 2(b):

         "Notwithstanding anything to the contrary herein, if Landlord has not
         delivered the Premises substantially completed to Tenant on or before
         May 1, 1999, Tenant shall have the right thereafter to terminate the
         lease upon written notice given to Landlord at anytime prior to the
         date Landlord makes the Premises available to Tenant for occupancy.
         Upon such termination, Landlord shall return all sums previously
         deposited by Tenant with Landlord, and neither party shall have any
         further liability to the other."

3.       AMENDMENT OF PARAGRAPH 3. The following language is hereby added to the
         end of Paragraph 3:

         "At such time as (i) Tenant's uncommitted cash on-hand ("Cash
         Reserve"), and (ii) the excess of Tenant's assets over its liabilities
         ("Net Worth") each exceeds $4,000,000, as evidenced by audited
         financial statements delivered to Landlord, Tenant shall receive a rent
         credit equal to the lesser of (y) the costs incurred by Tenant to
         complete the initial tenant improvements pursuant to Exhibit B, or (z)
         $82,965.00. The rent credit shall be applied in twelve (12) equal
         monthly installments against the amounts of Base Rent next becoming
         due, beginning with the month immediately following the month in which
         Tenant delivers such evidence to Landlord."

4.       AMENDMENT OF PARAGRAPH 4(a). The following language is hereby added to
         the end of Paragraph 4(a):

         "Notwithstanding the foregoing, Operating Expenses should not include
         any of the following, not necessitated as a result of Tenant, its
         employees, its agents or invitees actions: (1) initial costs of
         equipment properly chargeable to the capital account consisting of
         items of real estate in nature and the original costs of constructing
         in the Common Areas; (2) the cost of any capital addition to the
         Building or the land on which the Building is located, including

                                       1.
<PAGE>

         the cost to prepare space for occupancy by a new tenant; (3) costs
         incurred to benefit (or as a result of) a specific tenant; (4) salaries
         of service personnel to the extent that such service personnel perform
         services other than in connection with the management, operation,
         repair or maintenance of the Building or Common Areas; (5) overhead and
         profit increment paid to Landlord or to subsidiaries or affiliates of
         Landlord for goods and/or services in or to the Project to the extent
         the same exceeds the cost of such goods and/or services rendered by
         unaffiliated third parties on a competitive basis; (6) fines or
         penalties which Landlord incurs by reason of its failure to comply with
         applicable laws; (7) cost of improving or renovating space for a tenant
         or space vacated by a tenant or items and services selectively supplied
         to any other tenant; (8) any amounts expended by Landlord as
         environmental response costs for removal, enclosure, encapsulation,
         clean-up, remediation or other activities regarding Landlords'
         compliance with federal, state, municipal or local hazardous waste and
         environmental laws, regulations or ordinances unless caused by Tenant
         or its invitees; (9) costs to correct original defects in the Building;
         (10) expenses paid directly by any tenant (including Tenant) for any
         reason (such as excessive utility use);(11) the cost of any repair,
         rebuilding or other work necessitated by condemnation, fire, windstorm
         or other insured casualty or hazard in excess of the deductible amount
         under initial deductible caps in Landlord`s casualty insurance; (12)
         the salaries and benefits of any officers above the level of building
         managers of Landlord, if any; (13) attorney's fees, accounting fees and
         expenditures incurred in connection with negotiations, disputes and
         claims of other tenants or occupants of the Building or Marina Village
         Project with other third parties except as specifically provided in the
         Lease; (14) Landlord's administration fees and overhead, other than the
         management fee provided in the Lease; (15) debt or amortization
         payments on any mortgage or mortgages encumbering the Building or
         rental payments under any ground or underlying lease; (16) capital
         improvement reserves; (17) advertising and promotional expenditures;
         and (18) the cost of purchasing sculptures and/or paintings. Further,
         in the case of any Operating Expense that is a capital expenditure in
         accordance with generally accepted accounting principles, the amount
         payable by Tenant under this Lease in respect of such expenditure shall
         be determined by amortizing the expenditure over a useful life
         determined by Landlord in accordance with such accounting principles,
         and Landlord may include a provision for interest on the remaining
         unamortized balance."

5.       AMENDMENT OF PARAGRAPH 6(a). The following language is hereby added to
         the end of Paragraph 6(a):

         "Notwithstanding anything herein to the contrary, Tenant shall not be
         required to make any capital alterations or capital additions to the
         Premises in order to comply with any governmental requirements unless
         the same are made necessary by reason of Tenant's particular use of the
         Premises, Tenant's construction or alteration thereof, or Tenant's
         breach of the Lease."

6.       AMENDMENT OF PARAGRAPH 6(b). The following language is hereby added to
         the end of Paragraph 6(b):

         "Landlord shall defend, indemnify and hold Tenant harmless from and
         against any liability for and claims for bodily injury, death or damage
         to tangible property resulting from the discharge, release or disposal
         of Hazardous Materials in the common areas of the Building,

                                       2.
<PAGE>

         which discharge, release or disposal is caused by Landlord's sole
         negligence or willful misconduct."

7.       AMENDMENT OF PARAGRAPH 10(a). Paragraph 10(a) is hereby amended to read
         as follows:

         "10(a). If during the term the Premises are totally or partially
         destroyed, or any other portion of the Building is damaged in such a
         way that Tenant's use of the Premises is materially interfered with,
         from a risk which is wholly covered by insurance, then subject to the
         availability of insurance proceeds Landlord shall proceed with
         reasonable diligence to repair the damage or destruction and this Lease
         shall not be terminated; provided, however, that if in the opinion of
         Landlord's architect the work of repair cannot be completed in 120 days
         of the date of casualty. Landlord or Tenant may at their election
         terminate the Lease by notice given to the other party within 30 days
         following Landlord's delivery of the architect's opinion to Tenant."

8.       AMENDMENT OF PARAGRAPH 11. The following language is hereby added to
         the end of Paragraph 11:

         "Nothing contained herein shall be deemed to prevent Tenant from
         interposing and prosecuting in any condemnation proceeding, a claim
         against the condemning authority for the value of any fixtures or
         improvements installed in or made to the Premises by Tenant, or for its
         costs of moving or loss of business by reason of such condemnation."

9.       AMENDMENT OF PARAGRAPH 12: ASSIGNMENT AND SUBLETTING.

         The following language is hereby added to the end of paragraph 12(a):

         "Notwithstanding any other provisions contained in the Lease to the
         contrary, Tenant may, upon prior notice to Landlord accompanied by an
         explicit assumption of the Tenant's obligations under this Lease for
         the benefit of Landlord, but without Landlord's prior consent, sublet
         the Premises or assign its interest in this Lease to (i) a subsidiary
         affiliate, division, or corporation controlling, controlled by or under
         common control with Tenant, (ii) a successor corporation related to
         Tenant by merger, consolidation, non-bankruptcy reorganization or
         government action, or (iii) a purchaser of substantially all of
         Tenant's assets as a going concern. A sale or transfer of Tenant's
         capital stock shall not be deemed an assignment, subletting or any
         other transfer of its interest in the Lease or in the Premises;
         provided, however, that in the case of such purchase of Tenant's
         assets, the assignee has a tangible net worth at least equal to that of
         Tenant as of the commencement of the term. Landlord's right to
         recapture the Premises and terminate the Lease as set forth in this
         Paragraph 12 shall not apply in the case of a sublet or assignment by
         Tenant pursuant to clauses (i) through (iii) above."

10.      AMENDMENT OF PARAGRAPH 15. The following language is hereby added to
         the end of Paragraph 15:

         "At such time as Tenant establishes a Cash Reserve of $4,000,000,
         Tenant shall deposit an additional $45,354.20 with Landlord as an
         increase in the Deposit. At such time as Tenant's Cash Reserve and
         Tenant's Net Worth each exceeds $6,000,000, as evidenced by audited

                                       3.
<PAGE>

         financial statements delivered to Landlord, the Deposit shall be
         reduced to $37,610.80 and Landlord shall return any excess portion of
         the Deposit to Tenant within thirty (30) days following the date Tenant
         delivers its audited financial statements to Landlord."

11.      AMENDMENT OF PARAGRAPH 18. Paragraph 18 is hereby amended to read as
         follows:

         "ATTORNEYS' FEES. If as a result of any breach or default in the
         performance of any of the provisions of this Lease, Landlord or Tenant
         brings any legal action in order to secure compliance with such
         provisions or recover damages therefor, or to terminate this Lease or
         evict Tenant, the losing party shall reimburse the prevailing party
         upon demand for any and all attorneys' fees and expenses so incurred by
         the prevailing party."

12.      AMENDMENT OF PARAGRAPH 21(g). The following language is hereby added
         to the end of Paragraph 21(g):

         "Landlord shall provide Tenant with 48 hours prior notice (except in an
         emergency in which case Landlord shall use reasonable efforts to
         provide Tenant with prior telephone notice) before entering the
         Premises; provided, however, during the last 6 months of the lease
         term, Landlord shall provide Tenant with 24 hours prior notice of any
         non-emergency entry onto the Premises. In the event of any entry by
         Landlord onto the Premises, Landlord shall use reasonable efforts not
         to interfere with the conduct of Tenant's business."

13.      PARAGRAPH 23. The following new Paragraph 23 is hereby added to the
         Lease:

         "23. EXPANSION/RELOCATION OF PREMISES. If, Tenant notifies Landlord
         that it desires to lease additional Qualifying Office Space (defined
         below), Landlord shall notify Tenant whether any Qualifying Office
         Space contiguous with the Premises is available for lease. If there is
         no contiguous Qualifying Office Space available for lease, Landlord
         shall notify Tenant whether any non-contiguous Qualifying Office Space
         located on the second floor of the Building is available for lease, and
         if none is available, whether any Qualifying Office Space located on
         other floors of the Building is available for lease. If there is no
         Qualifying Office Space within the Building available for lease, and
         provided (i) Tenant desires to lease an aggregate of at least 9,000
         rentable square feet of office space, and (ii) the commencement date
         for the lease of additional office space will be on or after January 1,
         2001, then Landlord shall notify Tenant whether there is any office
         space ("Relocation Space") located in other buildings within the Marina
         Village project then owned by Landlord which meets Tenant's criteria.
         If such Relocation Space is available for lease, Landlord and Tenant
         shall negotiate in good faith, but for not more than fifteen days,
         regarding Tenant's relocation from the Premises to the Relocation
         Premises; provided, however, Landlord shall not be required to incur
         any expenses in connection with said relocation. If Landlord and Tenant
         reach agreement on Tenant's relocation, Tenant shall execute, at
         Landlord's option, an amendment to this Lease or a new lease setting
         forth the terms of Tenant's lease of the Relocation Premises and the
         termination of this Lease with respect to the Premises. If Landlord and
         Tenant are unable to reach agreement on Tenant's relocation, this Lease
         shall continue in full force and effect and Landlord shall have no
         obligation to relocate Tenant's business or to make any additional
         off-ice space available for lease by Tenant. For purposes of this

                                       4.
<PAGE>

         Paragraph 23, "Qualifying Office Space" shall mean office space
         consisting of at least 1,500 rentable square feet."

14.      PARAGRAPH 24. The following new Paragraph 24 is hereby added to the
         Lease:

         "24. TENANT'S OPTION TO TERMINATE. Tenant shall have the option to
         terminate this Lease effective February 28, 2002 upon the following
         terms and conditions:

         a. At the time Tenant's option is exercised, the Lease shall be in full
         force and effect, Tenant shall not be in default thereunder;

         b. Tenant's option to terminate shall be exercised, if at all, by
         notice to Landlord given on or before August 31, 2001, and

         c. Concurrently with its notice of exercise, Tenant shall pay to
         Landlord an amount equal to the product obtained by multiplying 40% by
         the sum of (i) the rent credit received by Tenant pursuant to Paragraph
         1 above, and (ii) the reasonable costs ("Landlord Costs") incurred by
         Landlord in connection with the Lease, including tenant improvement
         costs, if any, reasonable attorney's fees, architectural/mechanical
         construction drawings costs and brokerage commissions. By way of
         example, if the rent credit received by Tenant totals $82,965 and
         Landlord's Costs were $5,000, then the termination payment payable by
         Tenant to Landlord would be $35,186 (i.e., 40 x [$82,965 + $5,000])."

15.      PARAGRAPH 25. The following new Paragraph 25 is hereby added to the
         Lease:

         "25. PARKING. Tenant shall be entitled to the non-exclusive use of
         parking, on a non-designated basis and without charge unless required
         by law, at the rate of 3.4 spaces per 1,000 rentable square feet of
         the Premises. Tenant's employees and invitees shall comply with
         Landlord's reasonable rules and regulations regarding the use of
         project parking facilities."

16.      PARAGRAPH 26. The following new Paragraph 26 is hereby added to the
         Lease:

         "26. SIGNAGE. Landlord shall provide standard signage for Tenant on the
         directories located in tile Building lobby and on the second floor.
         Tenant shall be allowed to place, at its expense, in accordance with
         Building signage criteria, a sign on the second floor corridor wall
         directing visitors to Tenant's Premises and a sign at its entry to the
         Premises."

                                       5.
<PAGE>

IN WITNESS WHEREOF, Landlord and Tenant have executed this Addendum to the Lease
as of the date first set forth above.

<TABLE>
TENANT:                                                 LANDLORD:

<S>                                                    <C>
BIOMEDICINES, INC.,                                     ALAMEDA REAL ESTATE INVESTMENTS,
a Delaware corporation                                  a California limited partnership

                                                        By:      Vintage Alameda Investments, L.P,
                                                                 a California limited partnership,
                                                                 operating general partner

                                                        By:      Vintage Properties - Alameda Commercial,
                                                                 a California corporation,
                                                                 managing general partner

By:                                                     By:
   -------------------------------------                   --------------------------------------------
Title:        CEO                                       Title:         President
      ----------------------------------                      -----------------------------------------
</TABLE>
                                       6.<PAGE>

                                                                   Exhibit 10.10

                                 AMENDMENT NO. I
                                       TO
                           MARINA VILLAGE OFFICE LEASE

THIS AMENDMENT NO. 1 TO MARINA VILLAGE OFFICE LEASE is made and entered into as
of June 1, 1999, by and between ALAMEDA REAL ESTATE INVESTMENTS, a California
limited partnership ("Landlord") and BIOMEDICINES, INC., a Delaware corporation,
("Tenant").

Landlord and Tenant have previously entered into that certain Marina Village
Office Lease dated December 1, 1998, (the "Lease") with respect to certain
premises located in 1301 Marina Village Parkway, Suite 200, Alameda, California.
Landlord and Tenant now desire to amend the lease as hereinafter provided and,
accordingly, Landlord and Tenant hereby agree as follows (unless otherwise
defined, all capitalized terms used in this Amendment shall have the same
meanings as set forth in the Lease):

1.       AMENDMENT OF BASIC LEASE INFORMATION. The following provisions of the
         Basic Lease information are hereby amended to read as follows:

<TABLE>
<S>                                       <C>                                                <C>
          TERM EXPIRATION:                  Apri1 30, 2004
          BASE RENT:                        May 1, 1999 - April 30, 2000                       $10,509/month
                                            May 1, 2000 - April 30, 2001                       $10,785/month
                                            May 1, 2001 - April 30, 2002                       $11,062/month
                                            May 1, 2002 - April 30, 2003                       $11,339/month
                                            May 1, 2003 - April 30, 2004                       $11,615/month

          SECURITY DEPOSIT:                 $37610.80
</TABLE>

2.       RATIFICATION. Landlord and Tenant hereby ratify and confirm all of the
         terms of the Lease as modified by paragraph 1 above. Except as
         expressly set forth to the contrary in this Amendment, the Lease, as
         amended, remains unmodified and in full force and effect. To the extent
         of any conflict between the terms of this Amendment and terms of the
         Lease, the terms of this Amendment shall control.

                                       1.
<PAGE>

IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment No. 1 as of
the date first set forth above.

<TABLE>
TENANT:                                           LANDLORD:

<S>                                               <C>
BIOMEDICINES, INC.,                               ALAMEDA REAL ESTATE INVESTMENTS,
a Delaware corporation                            a California limited partnership

                                                  By:      Vintage Alameda Investments, LP
                                                           a California limited partnership,
                                                           operating general partner

                                                  By:      Vintage Properties - Alameda Commercial,
                                                           a California corporation,
                                                           managing general partner

By:                                               By:
   --------------------------------                  -------------------------------
Title:            CEO                             Title:         President
      -----------------------------                     ----------------------------
</TABLE>

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