Document:

Exhibit # 10.15

                            Lease Agreement - Office

<PAGE>

                                 LEASE AGREEMENT

                               (Industrial Gross)

                             Basic Lease Information

Lease Date:                July 21, 1999

Landlord:                  RIVERSIDE BUSINESS CENTER
                           A California Limited Partnership

Landlord's Address:        c/o LEGACY PARTNERS COMMERCIAL, INC.
                          30 Executive Park, Suite 100

                            Irvine, California 92623

Tenant:                    Competitive Communication, Inc.,
                            a California Corporation

Tenant's Address:          3751 Merced Drive, Suites A, B & C
                           Riverside, Ca 92503

Premises:                  Approximately 3,212 rentable square feet as shown on
                           Exhibit A

Premises Address:          3751 Merced Drive, Suites A, B & C
                           Riverside, Ca 92501

Building (4):              Approximately 16,060 rentable square feet

Park:                      Riverside Business Center [Approximately 280,354
                           rentable square feet]

Term:                      September 15, 1999 ("Commencement Date"), through
                           November 14, 2002 ("Expiration Date")

Base                       Rent (*I 3):  Two  Thousand  Eight  Seven and  80/100
                           Dollars ($2,087.80) per month.

Adjustments                to Base Rent:  September 15, 1999 - November 14, 1999
                           $0.06 (Rent Waiver) November 15, 1999 - September 14,
                           2000  $2,087.80  per  month.  September  15,  2000  -
                           September 14, 2001 $2,171.31 per month. September 15,
                           2001 - November 14, 2002 $2,258.16 per month.

Security                   Deposit (*I 4): Eight Hundred Seventy Five and 00/100
                           Dollars  ($875.00)  Tenant has an  existing  security
                           deposit in the  amount of  $875.00 to be  transferred
                           from account #

01-0731BF-01.

Base Year for Tenant's Share of Increased Operating Expenses and Increased Tax
Expenses: N/A
*Tenant's Share of Increased Operating Expenses (116.1):
     See Addendum I to Lease Agreement *Tenant's Share of Increased Tax Expenses
(*I 6.2):

     See Addendum I to Lease  Agreement  *Tenant's  Share of Common Area Utility
Costs (*I 7):

     See Addendum I to Lease Agreement  *Tenant's Share of Utility  Expenses (*I
7):

     See Addendum I to Lease Agreement

*The  amount of Tenant's  Share of the  expenses  as  referenced  above shall be
subject to modification as set forth in this Lease.

Permitted Uses:            General offices for sales and service of telephone
                           systems but only to the extent permitted by the City
                           of Riverside and all agencies and governmental
                           authorities having jurisdiction thereof
Unreserved

Parking Spaces:            Eight (8) non-exclusive and non-designated spaces

Broker (*I 38):            None

Exhibits:                  Exhibit A - Premises, Building, Lot and/or Park
                           Exhibit B - Intentionally Omitted
                           Exhibit C - Rules and Regulations
                           Exhibit D - Covenants, Conditions and Restrictions
                           Exhibit E - Change of Commencement Date - Example
                           Exhibit F - Tenant's Initial Hazardous Materials
                             Disclosure Certificate

                            Exhibit G - Sign Criteria

Addenda:                   Addendum I - Additional Lease Provisions

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                                TABLE OF CONTENTS

SECTION                                                                 PAGE

1. PREMISES
2. ADJUSTMENT OF COMMENCEMENT DATE; CONDITION OF THE PREMISES..............3
3. RENT ...................................................................3
4. SECURITY DEPOSIT .......................................................4
5. TENANT IMPROVEMENTS ....................................................4
6. ADDITIONAL RENT ........................................................4
7. UTILITIES ..............................................................6
8. LATE CHARGES ...........................................................7
9. USE OF. PREMISES .......................................................8
10. ALTERATIONS AND ADDITIONS; AND SURRENDER OF PREMISES ..................9
11. REPAIRS AND MAINTENANCE ...............................................9
12. INSURANCE ............................................................10
13. WAIVER OF SUBROGATION ................................................11
14. LIMITATION OF LIABILITY AND INDEMNITY.................................12
15. ASSIGNMENT AND SUBLEASING ............................................12
16. AD VALOREM TAXES .....................................................13
17. SUBORDINATION ........................................................13
18. RIGHT OF ENTRY .......................................................14
19. ESTOPPEL CERTIFICATE .................................................14
20. TENANTS DEFAULT ......................................................14
21. REMEDIES FOR TENANT'S DEFAULT ........................................15
22. HOLDING OVER .........................................................16
23. LANDLORD'S DEFAULT ...................................................16
24.  PARKING .............................................................16
25. SALE OF PREMISES .....................................................17
26. WAIVER ...............................................................17
27. CASUALTY DAMAGE ......................................................17
28. CONDEMNATION .........................................................17
29. ENVIRONMENTAL MATTERS/HAZARDOUS MATERIALS ............................18
30. FINANCIAL STATEMENTS .................................................19
31. GENERAL PROVISIONS ...................................................20
32. SIGNS ................................................................21
33. MORTGAGEE PROTECTION .................................................21
34. QUITCLAIM ............................................................22
35. MODIFICATIONS FOR LENDER .............................................22
36. WARRANTIES OF TENANT .................................................22
37. COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT ......................22
38. BROKERAGE COMMISSION .................................................23
39. QUIET ENJOYMENT ......................................................23
40. LANDLORD'S ABILITY TO PERFORM TENANTS UNPERFORMED OBLIGATIONS ........23

<PAGE>

                                                          LEASE AGREEMENT

DATE:    This Lease is made and  entered  into as of the Lease Date set forth on
         Page 1. 'Me Basic Lease  Information set forth on Page I and this Lease
         are and shall be construed as a single instrument.

1.  Premises:  Landlord  hereby leases the Premises to Tenant upon the terms and
conditions contained herein.  Landlord hereby grants to Tenant a license for die
right to use, on a non-exclusive  basis,  parking areas and ancillary facilities
located within the Common Areas of the Park, subject to the terms of this Lease.
Landlord  and Tenant  hereby  agree that for  purposes of this Lease,  as of the
Lease Date, the rentable square footage area of the Premises,  the Building, the
Lot and the Park shall be deemed to be the number of rentable square feet as set
forth in the Basic Lease Information on Page 1. Tenant hereby  acknowledges that
the rentable square footage of the Premises may include a proportionate share of
certain  areas used in common by all  occupants of the Building  and/or die Park
(for example an electrical room or telephone  room).  Tenant further agrees that
the number of  rentable  square feet of the  Building,  the Lot and die Park may
subsequently  change after the Lease Date commensurate with any modifications to
any of the foregoing by Landlord, and Tenant's Share shall accordingly change.

2.      Adjustment of Commencement Date; Condition of the Premises:

2.1 If Landlord  cannot deliver  possession of the Premises on the  Commencement
Date,  Landlord  shall not be subject to any liability nor shall the validity of
the Lease be affected;  provided,  the Lease Term and the obligation to pay Rent
shall commence on the date  possession is tendered and the Expiration Date shall
be  extended  commensurately.  In the event the  commencement  date  and/or  the
expiration  date of this  Lease  is  other  than the  Commencement  Date  and/or
Expiration  Date  provided  on Page 1, as the case may be,  Landlord  and Tenant
shall execute a written  amendment to this Lease,  substantially  in the form of
Exhibit F hereto,  wherein the  parties  shall  specify the actual  commencement
date,  expiration  date and the date on which Tenant is to commence paying Rent.
The word "Term"  whenever  used herein  refers to the initial term of this Lease
and any extension thereof By taking possession of the Premises,  Tenant shall be
deemed to have  accepted  die  Premises in good  condition  and state of repair.
Tenant  hereby  acknowledges  and agrees that neither  Landlord  nor  Landlord's
agents or representatives  has made any  representations or warranties as to the
suitability,  safety or  fitness of the  Premises  for the  conduct of  Tenant's
business, Tenant's intended use of the Premises or for any other purpose. Tenant
agrees that at any time before or during the Term of this Lease,  Landlord shall
have the right to relocate  Tenant from the Premises  described  herein to other
space within the Park on  substantially  the same terms and  conditions  of this
Lease provided the other space is of comparable size.

2.2 In the event  Landlord  permits  Tenant to occupy die Premises  prior to the
Commencement  Date, such occupancy shall be at Tenant's sole risk and subject to
all the provisions of this Lease, including, but not limited to, the requirement
to pay Rent and the  Security  Deposit,  and to obtain  the  insurance  required
pursuant to this Lease and to deliver insurance certificates as required herein.
In  addition  to the  foregoing,  Landlord  shall have the fight to impose  such
additional   conditions  on  Tenant's   early  entry  as  Landlord   shall  deem
appropriate.  If, at any time,  Tenant is in default of any term,  condition  or
provision of this Lease, any such waiver by Landlord of Tenant's  requirement to
pay rental  payments shall be null and void and Tenant shall  immediately pay to
Landlord all rental payments so waived by Landlord.

3. Rent: On the date that Tenant  executes  this Lease,  Tenant shall deliver to
Landlord  the  original  executed  Lease,  the Base Rent (which shall be applied
against  the Rent  payable  for the first  month  Tenant is required to pay Base
Rent),  the Security  Deposit,  and all insurance  certificates  evidencing  the
insurance  required  to be obtained  by Tenant  under  Section 12 of this Lease.
Tenant  agrees to pay Landlord,  without  prior notice or demand,  or abatement,
offset,  deduction  or  claim,  the  Base  Rent  described  in the  Basic  Lease
Information,  payable in advance at Landlord's  address  -specified in
the Basic
Lease Information on the Commencement Date and thereafter on the first (1st) day
of each month  throughout  the balance of the Term of the Lease.  In addition to
the Base  Rent set  forth in the  Basic  Lease  Information,  Tenant  shall  pay
Landlord in advance on die  Commencement  Date and thereafter on the first (1st)
day of  each  month  throughout  the  balance  of the  Term of  this  Lease,  as
Additional Rent, Tenant's Share of Increased  Operating Expenses,  Increased Tax
Expenses,  Common  Area  Utility  Costs,  Utility  Expenses  and  Administrative
Expenses.  Tenant  shall also pay to  Landlord  as  Additional  Rent  hereunder,
immediately  on  Landlord's  demand  therefor,  any and all costs  and  expenses
incurred by Landlord to enforce the provisions of this Lease, including, but not

<PAGE>

limited  to,  costs  associated  with the  delivery  of  notices,  delivery  and
recordation of notice(s) of default,  attorneys' fees,  expert fees, court costs
and filing fees  (collectively,  the  "Enforcement  Expenses"),  The term "Rent"
whenever used herein refers to the aggregate of all these  amounts.  If Landlord
permits  Tenant to occupy the Premises  without  requiring  Tenant to pay rental
payments  for a period of time,  the  waiver of the  requirement  to pay  rental
payments shall only apply to waiver of the Base Rent and Tenant shall  otherwise
perform all other  obligations of Tenant  required  hereunder.  The Rent for any
fractional  part of a calendar month at the  commencement  or termination of the
Lease  term  shall be a prorated  amount of the Rent for a full  calendar  month
based  upon a thirty  (30) day  month.  The  prorated  Rent shall be paid on die
Commencement  Date and die first day of the calendar  month in which the date of
termination occurs, as the case may be.

4. Security Deposit: Upon Tenant's execution of this Lease, Tenant shall deliver
to  Landlord,  as a  Security  Deposit  for the  performance  by  Tenant  of its
obligations   under  this  Lease,  the  amount  specified  in  the  Basic  Lease
Information. If Tenant is in default, Landlord may, but without obligation to do
so, use the Security Deposit,  or any portion thereof, to cure the default or to
compensate  Landlord  for all  damages  sustained  by  Landlord  resulting  from
Tenant's default, including, but not limited to the Enforcement Expenses. Tenant
shall,  immediately on demand, pay to Landlord a sum equal to the portion of the
Security  Deposit  so  applied  or used so as to  replenish  the  amount  of die
Security Deposit held to increase such deposit to the amount initially deposited
with Landlord.  At any time after Tenant has defaulted  hereunder,  Landlord may
require an increase in the amount of the Security Deposit required hereunder for
the then balance of the Lease Term and Tenant shall,  immediately on demand, pay
to  Landlord  additional  sums  in the  amount  of  such  increase.  As  soon as
practicable  after the  termination  of this Lease,  Landlord  shall  return the
Security Deposit to Tenant,  less such amounts as arc reasonably  necessary,  as
determined  solely by Landlord,  to remedy Tenant's  default(s)  hereunder or to
otherwise  restore the Premises to a clean and safe  condition,  reasonable wear
and tear excepted. If the cost to restore the Premises exceeds the amount of the
Security Deposit,  Tenant shall promptly deliver to Landlord any and all of such
excess sums as reasonably determined by Landlord. Landlord shall not be required
to keep the Security  Deposit  separate from other funds,  and, unless otherwise
required by law,  Tenant  shall not be  entitled  to  interest  on the  Security
Deposit.  In no event or circumstance  shall Tenant have the right to any use of
the Security Deposit and, specifically,  Tenant may not use the Security Deposit
as a credit or to otherwise offset any payments required  hereunder,  including,
but not limited to, Rent or any portion thereof.

5. Tenant  Improvements:  Tenant  hereby  accepts the  Premises as suitable  for
Tenant's  intended  use and as  being in good  operating  order,  condition  and
repair, "AS IS". Tenant acknowledges and agrees that neither Landlord nor any of
Landlord's agents,  representatives or employees has made any representations as
to die  suitability,  fitness or  condition  of the  Premises for the conduct of
Tenant's business or for any other purpose,  including without  limitation,  any
storage incidental thereto.  Tenant further acknowledges and agrees that neither
Landlord nor any of Landlord's  agents,  representatives or employees has agreed
to perform or undertake (i) any  alterations to the Premises,  or (ii) construct
any improvements in or to the Premises  (collectively,  "Tenant  Improvements").
Any  exception  to the  foregoing  provisions  must be made by  express  written
agreement by both parties.

6. Additional Rent : The costs and expenses  described in this Section 6 and all
other sums, charges,  costs and expenses specified in this Lease other than Base
Rent are to be paid by Tenant to  Landlord  as  additional  rent  (collectively,
"Additional Rent").

6.1  Operating  Expenses:  In  addition to die Base Rent set forth in Section 3,
Tenant  shall  pay  Tenant's  Share,  which  is  specified  in the  Basic  Lease
Information,  of all Operating Expenses in excess of the amount of said expenses
for the Base Year for such expenses, as specified in the Basic Lease Information
("Increased  Operating  Expenses"),  as  Additional  Rent.  Ile term  "Operating
Expenses"  as used  herein  shall  mean the total  amounts  paid or  payable  by
Landlord in connection with the ownership,  maintenance, repair and operation of
the  Premises,  the  Building  and the Lot,  and where  applicable,  of the Park
referred to in the Basic  Lease  Information.  The amount of  Tenant's  Share of
Increased Operating Expenses shall be reviewed from time to time by Landlord and
shall be  subject  to  modification  by  Landlord  if  there is a change  in the
rentable  square  footage  of  the  Premises,  the  Building  and/or  the  Park.
Notwithstanding anything to the contrary set forth in this Lease, solely for the
purpose of calculating the amount of the Operating Expenses  attributable to the
Base Year,  the term  Operating  Expenses shall exclude any costs of any capital
improvements or expenditures,  and any market-wide  labor-rate  increases due to
extraordinary  circumstances,  including,  but  not  limited  to,  boycotts  and
strikes. However, the foregoing shall not be construed to exclude such costs and
expenses  from the  definition of Operating  Expenses for all other  purposes of
this Lease. These Operating Expenses may include, but arc not limited to:

6.1.1    Landlord's cost of repairs to, and maintenance of, the roof, the roof
membrane and the exterior walls of the Building;

6.1.2    Landlord's cost of maintaining the outside paved area, landscaping and
other

<PAGE>

common  areas for the Park.  The term  "Common  Areas"  shall mean all areas and
facilities  within the Park  exclusive of the Premises and the other portions of
the Park leasable  exclusively to other tenants.  The Common Areas include,  but
are not limited to,  interior  lobbies,  mezzanines,  parking areas,  access and
perimeter roads,  sidewalks,  rail spurs, landscaped areas and similar areas and
facilities;

6.1.3  Landlord's  annual cost of insurance  insuring  against fire and extended
coverage  (including,  if  Landlord  elects,  "all  risk" or  "special  purpose"
coverage) and all other insurance,  including,  but not limited to,  earthquake,
flood and/or surface water  endorsements for the Building,  the Lot and the Park
(including the Common Areas),  rental value insurance against loss of Rent in an
amount  equal to the  amount  of Rent for a period  of at least  six (6)  months
commencing  on the date of loss,  and  subject to the  provisions  of Section 27
below, any deductible;

6.1.4  Landlord's  cost of. (i)  modifications  and/or new  improvements  to the
Building  the Common  Areas  and/or the Park  occasioned  by any rules,  laws or
regulations  effective  subsequent  to  the  date  on  which  the  Building  was
originally  constructed;  (ii) reasonably necessary replacement  improvements to
the,  Building,  the Common Areas and the Park after the Lease Date;  and (iii),
new  improvements to the Building,  the Common Areas and/or the Park that reduce
operating costs or improve life/safety conditions,  all as reasonably determined
by Landlord, in its sole discretion;

6.1.5  If  Landlord  elects  to so  procure,  Landlord's  cost  of  preventative
maintenance,  and repair contracts including,  but not limited to, contracts for
elevator systems and heating,  ventilation and air conditioning  systems,  lifts
for disabled persons, and trash or refuse collection;

6.1.6 Landlord's cost of security and fire protection  services for the Building
and/or  the Park,  as the case may be, if in  Landlord's  sole  discretion  such
services are provided;

6.1.7    Landlord's  establishment of reasonable  reserves for replacements
and/or repairs of Common Area  improvements,  equipment and supplies;

6.1.8  Landlord's  cost for the maintenance and repair of any rail spur and rail
crossing,  and for the  creation and  negotiation  of, and pursuant to, any rail
spur or track agreements, licenses, casements or other similar undertakings;

6.1.9 Landlord's cost of supplies, equipment, rental equipment and other similar
items used in the operation and/or maintenance of the Park; and

6.1.10  Landlord's  cost for the  repairs  and  maintenance  items  set forth in
Section 11.2 below.

6.2 Tax  Expenses:  In  addition to the Base Rent set forth in Section 3, Tenant
shall pay Tenant's Share, which is specified in the Basic Lease Information,  of
all real property taxes applicable to the land and improvements  included within
the Lot on which the  Premises  are  situated in excess of the amount of the Tax
Expenses  for die Base Year for such  expenses,  as set forth in the Basic Lease
Information  ("Increased Tax  Expenses"),  and one hundred percent (100%) of all
personal property taxes now or hereafter assessed or levied against the Premises
or Tenant's  personal  property.  The amount of Tenant's  Share of Increased Tax
Expenses  shall be reviewed from the to time by Landlord and shall be subject to
modification  by Landlord if there is a change in the rentable square footage of
the Premises,  the Building  and/or the Park.  Tenant shall also pay one hundred
percent  (100%)  of  any  increase  in  real  property  taxes  attributable,  in
Landlord's sole discretion,  to any and all alterations or other improvements of
any kind,  which are  above  standard  improvements  customarily  installed  for
similar  buildings  located  within the  Building  or the Park (as  applicable),
whatsoever  placed  in,  on or about the  Premises  for the  benefit  of, at the
request  of, or by  Tenant.  'Me term "Tax  Expenses"  shall  mean and  include,
without  limitation,   any  form  of  tax  and  assessment  (general,   special,
supplemental, ordinary or extraordinary),  commercial rental tax, payments under
any improvement bond or bonds,  license fees, license tax, business license fee,
rental tax,  transaction  tax, levy, or penalty imposed by authority  having the
direct or indirect power of tax (including  any city,  county,  state or federal
government, or any school, agricultural, lighting, drainage or other improvement
district thereof) as against any legal or equitable  interest of Landlord in the
Premises, the Building, the Lot or the Park, as against Landlord's right to rent
or as against  Landlord's  business of leasing the Premises or the  occupancy of
Tenant or any other tax, fee, or excise, however described,  including,  but not
limited to, any value added tax, or any tax imposed in  substitution  (partially
or  totally)  of any tax  previously  included  within  the  definition  of real
property  taxes,  or any  additional  tax the  nature  of which  was  previously
included within the definition of real property  taxes.  The term "Tax Expenses"
shall not include any  franchise,  estate,  inheritance,  net income,  or excess
profits tax imposed upon Landlord.

<PAGE>

6.3 Payment of Expenses: Landlord shall estimate Tenant's Share of the Increased
Operating  Expenses and Increased  Tax Expenses for the calendar year  following
the Base Year.  Commencing on the first  anniversary of the  Commencement  Date,
one-twelfth  (1/12th)  of this  estimated  amount  shall  be paid by  Tenant  to
Landlord,  as  Additional  Rent,  on the  first  (1st)  day of  each  month  and
throughout the remaining months of such calendar year. Thereafter,  Landlord may
estimate  such  expenses as of the  beginning of each  calendar  year and Tenant
shall pay  one-twelfth  (1/12th) of such  estimated  amount as  Additional  Rent
hereunder on the first day of each month during such  calendar year and for each
ensuing calendar year throughout the Term of this Lease. Tenant's obligations to
pay Tenant's  Share of Increased  Operating  Expenses and Increased Tax Expenses
shall survive the expiration or earlier termination of this Lease.

6.4  Annual  Reconciliation:  By June  30th of each  calendar  year,  or as soon
thereafter as reasonably possible Landlord shall endeavor to furnish Tenant with
an accounting of actual Operating Expenses and Tax Expenses.  Within thirty (30)
days of Landlord's delivery of such accounting, Tenant shall pay to Landlord the
amount of any underpayment. Notwithstanding the foregoing, failure by Landlord t
o give such accounting by such date shall not constitute a waiver by Landlord of
its right to collect any of Tenant's  underpayment  at any time.  Landlord shall
credit the amount of any overpayment by Tenant toward the next estimated monthly
installment(s)  falling due, or where the Term of the Lease has expired,  refund
the amount of overpayment  to Tenant.  If the Term of the Lease expires prior to
the  annual  reconciliation  of  expenses  Landlord  shall  have  the  right  to
reasonably estimate Tenant's Share of such expenses,  and if Landlord determines
that an  underpayment  is due,  Tenant  hereby  agrees  that  Landlord  shall be
entitled to deduct such underpayment from Tenant's Security Deposit. If Landlord
reasonably  determines  that an  overpayment  has been made by Tenant,  Landlord
shall  refund  said  overpayment  to Tenant as soon as  practicable  thereafter.
Notwithstanding  the  foregoing,  failure of  Landlord  to  accurately  estimate
Tenant's Share of such expenses or to otherwise  perform such  reconciliation of
expenses,.  including  without  limitation,  Landlord's  failure  to deduct  any
portion of any underpayment from Tenant's Security Deposit, shall not constitute
a waiver of Landlord's right to collect any of Tenant's underpayment at any time
during  the Term of the Lease or at any time  after the  expiration  or  earlier
termination of this Lease.

6.5 Audit: After delivery to Landlord of at least thirty (30) days prior written
notice,  Tenant, at its sole cost and expense through any accountant  designated
by it,  shall  have the right to  examine  and/or  audit  the books and  records
evidencing  such costs and expenses  for the  previous  one (1)  calendar  year,
during  Landlord's  reasonable  business hours but not more frequently than once
during any calendar year. Any such  accounting firm designated by Tenant may not
be  compensated on a contingency  fee basis.  The results of any such audit (and
any  negotiations  between  the parties  related  thereto)  shall be  maintained
strictly  confidential  by  Tenant  and its  accounting  firm and  shall  not be
disclosed,  published or otherwise disseminated to any other party other than to
Landlord  and its  authorized  agents.  Landlord and Tenant shall use their best
efforts  to  cooperate  in  such   negotiations  and  to  promptly  resolve  any
discrepancies  between  Landlord and Tenant in the  accounting of such costs and
expenses.

7. Utilities and  Administrative  Expenses:  The Utility  Expenses,  Common Area
Utility Costs,  Administrative  Expenses and all other sums or charges set forth
in this Section 7 arc considered  part of Additional  Rent, and as a net charge.
As such Tenant shall pay to Landlord,  as Additional  Rent,  the  Administrative
Expenses and Tenant's Share,  which is specified in the Basic Lease Information,
of the Utility Expenses and Common Area Utility Costs on the  Commencement  Date
and  thereafter on the first (1st) day of each month  throughout  the balance of
the Term of this Lease in the manner set forth in Sections 7.1 and 7.2 below.

7.1  Utilities:  In  addition  to the Base Rent set  forth in  Section 3 hereof,
Tenant  shall pay the cost of all water,  sewer use,  sewer  discharge  fees and
sewer  connection  fees,  gas,  heat,  electricity,  refuse  pickup,  janitorial
service,  telephone  and other  utilities  billed or metered  separately  to the
Premises and/or Tenant.  Tenant shall also pay Tenant's Share of any assessments
or charges for utility or similar purposes  included within any tax bill for the
Lot  on  which  the  Premises  are  situated,   including,  without  limitation,
entitlement fees,  allocation unit fees, and/or any similar fees or charges, and
any penalties related thereto. For any such utility fees or use charges that are
not billed or metered separately to Tenant, including without limitation,  water
and refuse pick-up  charges,  Tenant shall pay to Landlord,  as Additional Rent,
without prior notice or demand,  on the Commencement  Date and thereafter on the
first (1st) day of each month  throughout  the balance of the Term of this Lease
the amount which is  attributable  to Tenant's  use of the  utilities or similar
services,  as reasonably estimated and determined by Landlord based upon factors
such as size of the  Premises and  intensity of use of such  utilities by Tenant
such that Tenant  shall pay the portion of such  charges  reasonably  consistent
with Tenant's use of such utilities and similar services  ("Utility  Expenses").
If Tenant disputes any such estimate or determination,  then Tenant shall either
pay the  estimated  amount or cause the  Premises  to be  separately  metered at
Tenant's sole expense. In addition,  Tenant shall pay to Landlord Tenant's Share
of any Common  Area  utility  costs,  fees,  charges or expenses  ("Common  Area
Utility  Costs").  Tenant  shall pay to  Landlord  one-twelfth  (1/12th)  of the
estimated  amount of  Tenant's  Share of the Common  Area  Utility  Costs on the
Commencement Date and thereafter on <PAGE>

the first  (lst) day of each month  throughout  the  balance of the Term of this
Lease and any  reconciliation  thereof shall be substantially in the same manner
as  specified  in Section  6.4 above,  to the extent  applicable.  The amount of
Tenant's  Share of Common Area Utility Costs shall be reviewed from time to time
by  Landlord  and shall be subject to  modification  by  Landlord  if there is a
change in the rentable  square footage of the Premises,  the Building and/or the
Park. Tenant  acknowledges that the Premises may become subject to the rationing
of utility  services  or  restrictions  on utility  use as  required by a public
utility company, governmental agency or other similar entity having jurisdiction
thereof  Notwithstanding  any such rationing or  restrictions on use of any such
utility services,  Tenant acknowledges and agrees that its tenancy and occupancy
hereunder shall be subject to such rationing restrictions as may be imposed upon
Landlord, Tenant, the Premises, the Building or the Park, and Tenant shall in no
event be excused or  relieved  from any  covenant  or  obligation  to be kept or
performed  by Tenant by reason of any such  rationing  or  restrictions.  Tenant
further agrees to timely and faithfully pay, prior to  delinquency,  any amount,
tax, charge,  surcharge,  assessment or imposition  levied,  assessed or imposed
upon  the  Premises  or  Tenant's  use and  occupancy  thereof.  Notwithstanding
anything to the contrary  contained  herein,  if permitted by  applicable  Laws,
Landlord  shall have the right at any time and from time to time during the Term
of this  Lease to either  contract  for  service  from a  different  company  or
companies  (each  such  company  shall be  referred  to herein as an  "Alternate
Service  Provider")  other than the  company or  companies  presently  providing
electricity  service  for  the  Building  or the  Park  (the  "Electric  Service
Provider")  or continue  to  contract  for  service  from the  Electric  Service
Provider, at Landlord's sole discretion.  Tenant hereby agrees to cooperate with
Landlord,  the Electric Service Provider,  and any Alternate Service Provider at
all times and, as  reasonably  necessary,  shall allow  Landlord,  the  Electric
Service Provider,  and any Alternate  Service Provider  reasonable access to the
Building's  electric lines,  feeders,  risers,  wiring,  and any other machinery
within the Premises.

7.2  Administrative  Expenses:  The  Administrative  Expenses  set forth in this
Section 7.2 are  considered  part of Additional  Rent,  and as a net charge.  In
addition  to the Base Rent set  forth in  Section  3  hereof,  Tenant  shall pay
Landlord,  without prior notice or demand,  commencing on the Commencement  Date
and  continuing  thereafter on the first (1st) day of each month  throughout the
balance of the Term of this Lease,  as  compensation  to Landlord for accounting
and  management  services  rendered on behalf of the  Building  and/or the Park,
one-twelfth  (1/12th) of an amount equal to ten percent  (10%) of the  estimated
amount  of the  aggregate  of the  Tenant's  Share  of (i) the  total  Operating
Expenses  and  Tax  Expenses  as  described  in  Sections  6.1  and  6.2  above,
respectively,  and (ii) all Common Area  Utility  Costs for the Park and Utility
Expenses  for the  Premises  as  described  in Section  7.1  (collectively,  the
"Administrative  Expenses").  Any reconciliation of the Administrative  Expenses
shall be  substantially in the same manner as specified in Section 6.4 above, to
the extent such  provisions  are  applicable.  Tenant's  obligations to pay such
Administrative  Expenses shall survive the expiration or earlier  termination of
this Lease.

8. Late  Charges:  Any and all sums or charges  set forth in this  Section 8 are
considered part of Additional Rent.  Tenant  acknowledges that late payment (the
second day of each month or any time  thereafter)  by Tenant to Landlord of Base
Rent, Tenant's Share of Increased  Operating  Expenses,  Increased Tax Expenses,
Common Area Utility  Costs,  and Utility  Expenses,  Administrative  Expenses or
other sums due hereunder, will cause Landlord to incur costs not contemplated by
this  Lease,  the exact  amount of such  costs  being  extremely  difficult  and
impracticable  to fix. Such costs include,  without  limitation,  processing and
accounting  charges,  and late  charges  that may be imposed on  Landlord by the
terms of any note  secured by any  encumbrance  against the  Premises,  and late
charges and  penalties  due to the late  payment of real  property  taxes on the
Premises. Therefore, if any installment of Rent or any other sum due from Tenant
is not received by Landlord when due,  Tenant shall promptly pay to Landlord all
of the  following,  as  applicable:  (a) an additional  sum equal to ten percent
(10%) of such delinquent  amount plus interest on such delinquent  amount at the
rate equal to the prime rate plus three  percent  (3%) for the time  period such
payments are delinquent as a late charge for every month or portion thereof that
such sums remain unpaid,  (b) the amount of seventy-five  dollars ($75) for each
three-day  notice  prepared for, or served on,  Tenant,  (c) the amount of fifty
dollars ($50)  relating to checks for which there are not sufficient  funds.  If
Tenant  delivers to Landlord a check for which there are not  sufficient  funds,
Landlord  may, at its sole option,  require  Tenant to replace such check with a
cashier's  check for the  amount of such  check  and all other  charges  payable
hereunder.  The  parties  agree  that this  late  charge  and the other  charges
referenced  above  represent  a fair and  reasonable  estimate of the costs that
Landlord will incur by reason of late payment by Tenant.  Acceptance of any late
charge or other  charges  shall not  constitute a waiver by Landlord of Tenant's
default  with  respect to the  delinquent  amount,  nor  prevent  Landlord  from
exercising  any of the other rights and  remedies  available to Landlord for any
other  breach of Tenant  under  this  Lease.  If a late  charge or other  charge
becomes  payable for any three (3)  installments  of Rent within any twelve (12)
month period,  then Landlord,  at Landlord's sole option, can either require the
Rent be paid  quarterly  in advance,  or be paid monthly in advance by cashier's
check or by electronic funds transfer.

<PAGE>

9.       Use of Premises

9.1 Compliance  with Laws,  Recorded  Matters,  and Rules and  Regulations:  The
Premises are to be used solely for the purposes and uses  specified in the Basic
Lease  Information and for no other uses or purposes  without  Landlord's  prior
written consent,  which consent shall not be unreasonably withheld or delayed so
long as the  proposed  use (i) does not involve the use of  Hazardous  Materials
other than as expressly permitted under the provisions of Section 29 below, (ii)
does not require any additional  parking in excess of the parking spaces already
licensed to Tenant  pursuant to the provisions of Section 24 of this Lease,  and
(iii) is compatible  and  consistent  with the other uses then being made in the
Park and in other  similar  types of buildings  in the vicinity of the Park,  as
reasonably  determined  by  Landlord.  The use of the Premises by Tenant and its
employees,  representatives,  agents, invitees, licensees, subtenants, customers
or contractors (collectively,  *Tenant's  Representatives") shall be subject to,
and  at all  times  in  compliance  with,  (a)  any  and  all  applicable  laws,
ordinances,  statutes,  orders and  regulations  as same exist from time to time
(collectively,  the "Laws"), (b) any and all documents,  matters or instruments,
including  without  limitation,  any  declarations of covenants,  conditions and
restrictions,  and any supplements thereto,  each of which has been or hereafter
is recorded in any official or public records with respect to the Premises,  the
Puilding,  the Lot and/or the Park, or any portion  thereof  (collectively,  the
"Recorded  Matters"),  and (c) any and all  rules and  regulations  set forth in
Exhibit C, attached to and made a part of this Lease,  and any other  reasonable
rules and regulations  promulgated by Landlo@d now or hereafter enacted relating
to  parking  and the  operation  of the  Premises,  die  Building  and the  Park
(collectively, the "Rules and Regulations").  Tenant agrees to, and does hereby,
assume full and complete responsibility to ensure that the Premises are adequate
to fully meet the needs and requirements of Tenant's intended  operations of its
business within the Premises, and Tenant's use of the Premises and that same are
in  compliance  with all  applicable  Laws  throughout  the Term of this  Lease.
Additionally,  Tenant shall be solely  responsible for the payment of all costs,
fees and expenses associated with any modifications, improvements or alterations
to the Pren-dses,  Building,  the Common Areas and/or the Park occasioned by the
enactment  of, or changes to, any Laws arising from Tenant's  particular  use of
the Premises or  alterations,  improvements  or  additions  made to the Premises
regardless of whcA such Laws became effective

9.2  Prohibition on Use: Tenant shall not use die Premises or permit anything to
bc done in or about the Premiscs nor keep or bring  anything  thercin which will
in any  way  conflict  with  any of  the  requirements  of  die  Board  of  Fire
Underwriters or similar body now or hereafter constituted or in any way increase
the existing  rate of or affect any policy of fire or other  insurance  upon the
Building  or any of its  contents,  or  cause a  cancellation  of any  insurance
policy.  No  auctions  may be held or  otherwise  conducted  in, on or about the
Premises,  the Building,  the Lot or the Park without Landlord's written consent
thereto,  which consent may be given or witliheld in Landlord's sole discretion.
Tenant  shall not do or  permit  anything  to be done in or about the  Prerr@scs
w1iich will in any way obstruct or interfere with the fights of Landlord,  other
tenants or  occupants of the  Building,  other  buildings in the Park,  or other
persons or businesses  in tht 'area,  or injure or annoy other tenants or use or
allow the  Premises to be used for any  unlawful or  objectionable  purpose,  as
dcterm@ined by Landlord, in its reasonable  discretion,  for the bencfit,  quiet
enjoyment and use by Landlord and all other tenants or occupants of the Building
or other  buildings in the Park; nor shall Tenant cause,  maintain or permit any
private or public nuisance in, on or about the Premises,  Building,  Park and/or
the Common Areas,  including,  but not limited to, any offensive odors,  noises,
fumes or  vibrafions.  Tenant shall not damage or deface or othcrwisc  commit or
suffer to bc committed any waste in, upon or about the  Prerrdses.  Tenant shall
not place or store, nor permit any other person or entity to place or store, any
property, equipment,  materials,  supplies, personal property or any other items
or goods outside of the Premises for any period of time. Tenant shall not permit
any animals, including, but not limited to, any household pets, to be brought or
kept in or about die  Premises.  Tenant  shall  place no loads upon the  floors,
walls,  or ceilings  in excess of the maximum  designed  load  permitted  by the
applicable  Uniform  Building  Code or which may damage die  Building or outside
areas-, nor place any harmful liquids in the drainage systems; nor dump or store
waste materials, refuse or other such materials, or allow such to remain outside
the Building area,  except for any nonhazrdous or  non-harinful  materials which
may be stored in refuse  dumpsters  or in any  enclosed  trash  areas  provided.
Tenant shall honor the terms of aH Recorded  Matters  relating to the  Premises,
the  Building,  the Lot  and/or  the  Park.  Tenant  shall  honor  the Rules and
Regulations.  If Tenant fails to comply with such Laws, Recorded Matters,  Rules
and  Regulations or the provisions of this Lease,  Landlord shall have the right
to collect from Tenant a reasonable  sum as a penalty,  in addition to aH fights
and remedies of Landlord hereunder including, but not limited to, the payment by
Tenant  to  Landlord  of all  Enforcement  Expenses  and  Landlord's  costs  and
expenses,  if any, to cure any of such failures of Tenant,  if Landlord,  at its
sole option, elects to undertake such cure.

<PAGE>

10.      Alterations and Additions: and Surrender of Premises:

10.1  Alterations and Additions:  Tenant shall not install any signs,  fixtures,
improvements,  nor make or permit  any other  alterations  or  additions  to the
Premises  without the prior written consent of Landlord.  If any such alteration
or addition is expressly  permitted by Landlord,  Tenant shall  deliver at least
twenty  (20) days prior  notice to  Landlord,  from the date  Tenant  intends to
commence  construction,  sufficient  to  enable  Landlord  to post a  Notice  of
Non-Responsibility.  In all  events,  Tenant  shall  obtain all permits or other
governmental  approvals  prior to commencing any of such work and deliver a copy
of same to  Landlord.  All  alterations  and  additions  shall be installed by a
licensed contractor approved by Landlord,  at Tenanes sole expense in compliance
with all  applicable  Laws  (including,  but not limited to, the ADA as .defined
herein),  Recorded  Matters,  and Rules and  Regulations.  Tenant shall keep the
Premises and the property on which the Premises are situated free from any liens
arising out of any work performed,  materials furnished or obligations  incurred
by or on  behalf  of  Tenant.  As a  condition  to  Landlord's  consent  to  the
installation  of any  fixtures,  additions or other  improvements,  Landlord may
require  Tenant to post and obtain a completion and indemnity bond for up to one
hundred fifty percent (150%) of the cost of the work.

10.2  Surrender  of Premises:  Upon the  termination  of this Lease,  whether by
forfeiture,  lapse of time or otherwise,  upon the termination of Tenant's right
to possession of the Premises,  Tenant will at once surrender and deliver up the
Premises, together with the fixtures (other than trade fixtures),  additions and
improvements which Landlord has notified Tenant, in writing,  that Landlord will
require  Tenant  not to  remove,  to  Landlord  in  good  condition  and  repair
(including,  but not limited to,  replacing  all light bulbs and ballasts not in
good working  condition) and in the condition in wh&h the Premises existed as of
the Commencement Date, except for reasonable wear and tear.  Reasonable wear and
tear shall not include any damage or deterioration to the floors of the Premises
arising  from die use of  forklifts  in,  on or about the  Premises  (including,
without limitation,  any marks or stains of any portion of the floors),  and any
damage or deterioration  that would have been prevented by proper maintenance by
Tenant or Tenant otherwise  performing all of its obligations  under this Lease.
Upon such  termination of thi;  Lease,  Tenant shall remove all tenant  signage,
trade fixtures, furniture,  furnishings, personal property, additions, and other
improvements unless Landlord requests,  in writing,  that Tenant not remove some
or all of such fixtures (other than trade  fixtures),  additions or improvements
installed  by, or on behalf of Tenant or situated in or about the  Premises.  By
the date which is twenty  (20) days  prior to such  termination  of this  Lease,
Landlord  shall  notify  Tenant in writing of those  fixtures  (other than trade
fixtures),  alterations,  additions and other  improvements which Landlord shall
require  Tenant not to remove from the Premises.  Tenant shall repair any damage
caused by the installation or removal of such signs, trade fixtures,  furniture,
furnishings,  fixtures,  additions and improvements which are to be removed from
the Premises by Tenant hereunder. If Landlord fails to so notify Tenant at least
twenty  (20) days prior to such  termination  of this Lease,  then Tenant  shall
remove all tenant signage, alterations,  furniture, furnishings, trade fixtures,
additions  and other  improvements  installed in or about the Premises by, or on
behalf of  Tenant.  Tenant  shall  ensure  that & removal  of such items and the
repair of the  Premises  will be  completed  prior to such  termination  of this
Lease.

                                                      Repairs and Maintenance:

11.1 Tenant's Repairs and Maintenance Obligations:  Except for those portions of
the Building to be maintained by Landlord, as provided in Sections 11.2 and 11.3
below,  Tenant shall,  at Tenant's sole cost and expense,  keep and maintain the
Premises  and the  adjacent  dock and  staging  areas in  good,  clean  and safe
condition and repair to the reasonable  satisfaction of Landlord including,  but
not   limited   to,   repairing   any  damage   caused  by  Tenant  or  Tenant's
Representatives  and  replacing  any  property  so damaged by Tenant or Tenant's
Representatives.  Without limiting the generality of the foregoing, Tenant shall
be  solely  responsible  for  maintaining,   repairing  and  replacing  (a)  all
mechanical   systems,   heating,   ventilation  and  air  conditioning   systems
exclusively  serving  the  Premises,  (b) all  plumbing,  electrical  wiring and
equipment serving the Premises,  (c) all interior lighting  (including,  without
limitation,  light bulbs  and/or  ballasts)  and exterior  lighting  serving the
Premises or adjacent to the Premises,  (d) all glass,  windows,  window  frames,
window easements,  skylights,  interior and exterior doors, door frames and door
closers,  (e) all roll-up doors,  ramps and dock  equipment,  including  without
limitation,  dock  bumpers,  dock  plates,  dock scals,  dock  levelers and dock
lights,  (f) all tenant  signagc,  (g) lifts for  disabled  persons  serving the
Premises,  (h) sprinkler systems,  fire protection systems and security systems,
(i) all partitions,  fixtures,  equipment, interior painting, and interior walls
and  floors  of  the  Premises  and  every  part  thereof  (including,   without
limitation, any dernising walls contiguous to any portion of the Premises).

11.2 Reimbursable Repairs and Maintenance Obligations: Subject to the provisions
of Sections 6 and 9 of this Lease and except for (i) the  obligations  of Tenant
set forth in Section 11. 1 above,  (ii) die obligations of Landlord set forth in
Section 11.3 below. and (iii) the repairs rendered  necessary by the intentional
or negligent  acts or  omissions  of Tenant or any of Tenant's  Representatives,
Landlord
<PAGE>

agrees, at Landlord's  expense,  subject to reimbursement  pursuant to Section 6
above,  to keep in good repair the plumbing and mechanical  systems  exterior to
the Premises, any rail spur and rail crossing, the roof roof membranes, exterior
walls of the  Building,  signage  (exclusive  of tenant  signage),  and exterior
electrical wiring and equipment@  exterior  lighting,  exterior glass,  exterior
doorslentrances and door closers,  exterior window casements,  exterior painting
of the Building  (exclusive of the Premises),  and underground utility and sewer
pipes outside the exterior  walls of the Building.  For purposes of this Section
11.2, the term "exterior" shall mean outside of and not exclusively  serving the
Premises.  Unless otherwise notified by Landlord,  in writing, that Landlord has
elected to procure and maintain the following described contmct(s), Tenant shall
procure and maintain (a) the heating.  ventilation and air conditioning  systems
preventative  maintenance and repair  contract(s);  such  contract(s) to be on a
bi-monthly or quarterly basis, as reasonably determined by Landlord, and (b) the
fire and sprinkler protection services and preventative  maintenance  and'repair
contract(s)   (including,   without  limitation,   monitoring  services);   such
contract(s) to be on a bi-monthly or quarterly  basis, as reasonably  determined
by Landlord.  Landlord  reserves the right, but without the obligation to do so,
to procure and  maintain  (i) the  licating,  ventilation  and air  conditioning
system preventative maintenance and repair contract(s), and/or (ii) the fire and
sprinkler   protection   services  and   preventative   maintenance  and  repair
contract(s) (including, without limitation, monitoring services). If Landlord so
elects to procure and  maintain  any such  contract(s),  Tenant  will  reimburse
Landlord for thq cost thereof in  accordance  with the  provisions  of Section 6
above.  If Tenant  procures and maintains any of such  contract(s),  Tenant will
promptly  deliver to Landlord a true and complete copy of each such contract and
any and all renewals or  extensions  thereof,  and each service  report or other
summary received by Tenant pursuant to or in connection with such contract(s).

11.3 Landlord's Repairs and Maintenance Obligations: Except for rcpairs rendered
necessary by the  intentional or negligent acts or omissions of Tenant or any of
Tenant's Representatives,  Landlord agrees, at Landlord's sole cost and expense,
to (a) keep in good repair the  structural  portions of the floors,  foundations
and exterior  perimeter  walls of the Building  (exclusive of glass and exterior
doors),  and (b) replace  the  structural  portions of die roof of die  Building
(excluding the roof membrane) as, and when, Landlord determines such replacement
to be necessary in Landlord's sole discretion.

11.4 Tenant's Failure to Perform Repairs and Maintenance Obligations: Except for
normal maintenance and repair of the items described above, Tenant shall have no
right of access to or right to install  any  device on the roof of the  Building
nor make any  penetrations of the roof of the Building without the express prior
written  consent of  Landlord.  If Tenant  rcfusr-s  or  neglects  to repair and
maintain the Premises and the adjacent areas properly as required  herein and to
the reasonable satisfaction of Landlord, Landlord may, but without obligation to
do so, at any time make such repairs and/or maintenance  without Landlord having
any  liability  to Tenant  for any loss or damage  that may  accrue to  Tenant's
merchandise,  fixtures  or other  property,  or to  Tenant's  business by reason
thereof,  except to the extent any damage is caused by the willful misconduct or
gross negligence of Landlord or its authorized  agents and  representatives.  In
the event  Landlord  makes such  repairs  and/or  maintenance,  upon  completion
thereof Tenant shall par *to Landlord,  as additional rent@ die Landlord's costs
for making such repairs  and/or  maintenance,  plus twenty  percent  (201/6) for
overhead,  upon presentation of a bill therefor,  plus any Enforcement Expenses.
The obligations of Tenant  hereunder shall survive die expiration of the Term of
this Lease or the earlier tcrmination thereof. Tenant hereby waives any right to
repair at the expense of Landlord under any applicable  Laws now or hereafter in
effect respecting the Premises.

12.             Insurance:

12.1 Types of Insurance:  Tenant shall  maintain in full force and effect at all
times during the Term of this Lease, at Tenant's sole cost and expense,  for the
protection of Tenant and Landlord,  as their  interests may appear,  policies of
insurance issued by a carrier or carriers reasonably  acceptable to Landlord and
its lender(s) which afford the following coverages:  (i) worker's  compensation:
statutory limits; (ii) employees  liability,  as required by law, with a minimum
limit of $100,000 per employee and  $500,000 per  occurrence;  (iii)  commercial
general liability insurance (occurrence form) providing coverage against any and
all claims for bodily injury and property  damage  occurring in, on or about the
Premises  arising  out of  Tenant's  and  Tenant's  Representatives'  use and/or
occupancy of the Premises.  Such  insurance  shall include  coverage for blanket
contractual  liability,  fire  damage,  premises,   personal  injury,  completed
operations,  products  liability,  personal and  advertising,  and a plate-glass
rider to provide coverage for all glass in, on or about the Premises  including,
without limitation, skylights. Such insurance shall have a combined single linut
of not less than One Million  Dollars  ($1,000,000)  per  occurrence  with a Two
Million Dollar ($2,000,000) aggregate limit and excess/umbrella insurance in the
amount of Two Million Dollars (S2,000,000).  If Tenant has other locations which
it owns or leases,  the policy  shall  include an  aggregate  limit per location
endorsement.  If necessary,  as reasonably determined by Landlord,  Tenant shall
provide for restoration of the aggregate limit;  (iv)  comprehensive  automobile
liability  insurance:  a combined  single limit of not less than  $2,000,000 per
occurrence and insuring  Tenant against  liability for claims arising out of the
ownership, maintenance, or use of any owned, hired or non-owned automobiles; (v)
"all  risk"  or  "special   purpose"  property   insurance,   including  without
limitation, sprinkler <PAGE>

leakage,.boiler and machinery comprehensive form, if applicable, covering damage
to or loss of any personal  property,  trade fixtures,  inventory,  fixtures and
equipment  located in, on or about the Premises,  and in addition,  coverage for
flood,  earthquake,  and business  interruption of Tenant@ together with, if the
property of Tenant's invitees is to be kept in the Premises,  warehouser's legal
liability or bailoe  customers  insurance for the fall  replacement  cost of the
property belonging to invitees and located in the Premises. Such insurance shall
be written on a replacement cost basis (without  deduction for  depreciation) in
an amount equal to one hundred percent (100%) of the full  replacement  value of
the aggregate of the items referred to in this  subparagraph  (v); and (vi) such
other  insurance as Landlord deems  necessary and prudent or as may otherwise be
required by any of Landlord's lenders or joint venture partners.

12.2 Insurance Policies:  Insurance required to be maintained by Tenant shall be
written by  companies  (i)  licensed to do business in the State of  California,
(ii)  domiciled  in the United  States of America,  and (iii)  having a "General
Policyholders  Rating" of at least A:X (or such higher rating as may be required
by a lender  having a lien on the  Premises)  as set  forth in the most  current
issue of "A.M.  Best's Rating  Guides." Any deductible  amounts under any of the
insurance  policies  required  hereunder  shall not exceed One Thousand  Dollars
($1,000).  Tenant shall deliver to Landlord  certificates  of insurance and true
and  complete  copies  of any  and  all  endorsements  required  herein  for all
insurance required to be maintained by Tenant hcreynder at the time of execution
of this  Lease by  Tenant.  Tenant  shall,  at least  thirty  (30) days prior to
expiration of each policy,  fumish  Landlord with  certificates  of renewal o ,r
"binders"  thereof.  Each certificate shall expressly provide that such policies
shall not be cancelable or otherwise subject to modification except after thirty
(30) days prior written  notice to the parties  named as additional  insureds as
required in this Lease (except for  cancellation  for nonpayment of premium,  in
which event  cancellation  shall not take  effect  until at least ten (10) days'
notice  has been  given to  Landlord).  Tenant  shall  have the right to provide
insurance  coverage which it is obligated to carry pursuant to the terms of this
Lease under a blanket insurance  policy,  provided such blanket policy expressly
affords coverage for the Pren-dses and for Landlord as required by this Lease.

12.3 Additional Insureds and Coverage: Landlord, any property management company
and/or agent of Landlord for the Premises,  the  Building,  the Lot or the Park,
and an; lender(s) of Landlord having a lien against the Premises,  die Building,
the Lot or the  Park  shall be named as  additional  insureds  under  all of the
policies  required in Section 12. 1 (iii) above.  Additionally,  such  -policies
shall provide for  scverability  of interest.  All insurance to be maintained by
Tenant  shall,  except  for  workers'   compensation  and  employer's  liability
insurance,  be primary,  without right of contribution from insurance maintained
by Landlord.  Any  umbrelWcxcess  liability policy (which shall be in "following
form") shall provide that if the underlying  aggregate is exhausted,  die excess
coverage will drop down as primary insurance. The limits of insurance maintained
by Tenant shall not limit Tenant's liability under this Lease. It is the panics'
intention that die insurance to be procured and maintained by Tenant as required
herein shall provide  coverage for any and all damage or injury  arising from or
related to  Tenant's  operations  of its  business  and/or  Tenant's or Tenant's
Representatives'  use of the  Premises  and/or any of the areas within the Park,
whether such events occur within the Premises (as described in Exhibit A hereto)
or in any other areas of the Park. It is not  contemplated or anticipated by the
parties that the aforementioned  risks of loss be borne by Landlord's  insurance
carriers,  rather it is contemplated and anticipated by Landlord and Tenant that
such  risks  of loss be bome by  Tenant's  insurance  carriers  pursuant  to the
insurance policies procured and maintained by Tenant as required herein.

12.4 Failure of Tenant to Purchase and Maintain  Insurance:  In the event Tenant
does not purchase the insurance  required in this Lease or keep the same in full
force and effect  throughout  the Term of this Lease  (including any renewals or
extensions),  Landlord  may,  but  without  obligation  to do so,  purchase  the
necessary  insurance  and pay the  premiums  therefor.  If Landlord so elects to
purchase  such  insurance,  Tenant shall  promptly pay to Landlord as Additional
Rent,  the amount so paid by  Landlord,  upon  Landlord's  demand  therefor.  In
addition,  Landlord  may  recover  from  Tenant  and  Tenant  agrees to pay,  as
Additional Rent, any and all Enforcement Expenses and damages which Landlord may
sustain by reason of Tenant's failure to obtain and maintain such insurance.  If
Tenant f"s to maintain  any  insurance  required in this Lease,  Tenant shall be
liable for all losses, damages and costs resulting from such failure.

13.  Waiver of  Subrogation:  Landlord and Tenant  hereby  mutually  waive their
respective  fights of recovery against each other for any loss of, or damage to,
either parties' property to the extent that such loss or damage is insured by an
insurance  policy  required  to be in effect at the time of such loss or damage.
Each party  shall  obtain any special  endorsements,  if required by its insurer
whereby the insurer  waives its fights of  subrogation  against die other party.
This  provision is intended to waive  fully,  and for the benefit of the parties
hereto, any fights and/or claims which might give rise to a fight of subrogation
in favor of any insurance  carrier.  Ile coverage obtained by Tenant pursuant to
Section  12 of  dus  Lease  shall  include,  without  limitation,  a  waiver  of
subrogation endorsement attached to the certificate of insurance. The provisions
of this  Section 13 shall not apply in those  instances  in which such waiver of
subrogation  would  invalidate  such  insurance  coverage or would cause  either
party's insurance coverage to be voided or otherwise uncollectible.

<PAGE>

14.  Limitation  of  Liability  and  Indemnity:  Except to the  extent of damage
resulting  from die sole  active  gross  negligence  or  willful  misconduct  of
Landlord or its  authorized  representatives,  Tenant agrees to protect,  defend
(with counsel acceptable to Landlord) and hold Landlord and Landlord's  lenders,
partners, members, property management company (if other than Landlord), agents,
directors,  officers,  employees,  representatives,  contractors,  shareholders,
successors  and  assigns  and  each  of  their  respective  partners,   members,
directors,  employees,  representatives,   agents,  contractors,   shareholders,
successors and assigns (collectively,  the "Indemnitecs") harmless and indemnify
the Indcrnnitccs  from and against all  liabilities,  damages,  claims,  losses,
judgments@ charges and expenses (including  reasonable attorneys' fees, costs of
court and expenses  necessary in the  prosecution  or defense of any  litigation
including the enforcement of this provision)  arising from or in any way related
to, directly or indirectly, (i) Tenant's or Tenant's Representatives' use of the
Premises, Building and/or the Park, (ii) the conduct of Tenant's business, (iii)
from any  activity,  work or thing done,  permitted  or suffered by Tenant in or
about the  Premises,  (iv) in any way  connected  with die  Premises or with the
improvements or personal  property therein,  including,  but not limited to, any
liability for injury to person or property of Tenant, Tenant's  Representatives,
or third party  persons,  and/or (v) TcnanCs  failure to perform any covenant or
obligation  of Tenant  under Ns Lease.  Tenant  agrees that the  obligations  of
Tenant herein shall survive the expiration or earlier tcnnination of this Lease.

         Except to the extent of damage  resulting  from the sole  active  gross
negligence or willful misconduct of Landlord or its authorized  representatives,
to the fullest extent  permitted by law, Tenant agrees that neither Landlord nor
any of Landlord's  lcnder(s),  partners,  members,  employers,  representatives,
legal representatives,  successors or assigns shall at any time or to any extent
whatsoever  be  liable,  responsible  or in any way  accountable  for any  loss,
liability,  injury, death or damage to persons or property which at any time may
be suffered or sustained by Tenant or by any person(s) whomsoever who may at any
time be using,  occupying  or visiting the  Premises,  the Building or the Park,
including, but not limited to, any acts, errors or om@issions by or on behalf of
any other  tenants or occupants of the  Building  and/or the Park.  Tenant shall
not, in any event or circumstance,  be pcnnittcd to offset or othcrwIsc:  credit
against any payments of Rent required  herein for matters for which Landlord may
be liable hereunder.  Landlord and its authorized  representatives  shall not be
liable for any  interference  with light or air, or for any latent defect in the
Premises or the Building.

15.      Assignment and Subleasining

15.1  Prohibition:  Tenant shall not assign,  mortgage,  hypothecate,  encumber,
grant any  license  or  concession,  pledge or  otherwise  transfer  this  Lease
(collectively,  "assignment"),  in  whole  or in part,  whether  voluntarily  or
involuntarily  or by  operation  of law,  nor sublet or permit  occupancy by any
person  other than Tenant of all or any portion of the  Premises  without  first
obtaining the prior written consent of L.indlord,  wliicli'@Onscnt  shall not be
unreasonably  withheld.  Tenant  hereby  agrees that  1-uldlord may withhold its
consent to any proposed  sublease or  assignment  if die  proposed  sublessee or
assignee or its business is subject to compliance with  additional  requirements
of the ADA (defined  below) and/or  Environmental  Laws  (defined  below) beyond
those requirements which are applicable to Tenant, unless the proposed sublessee
or assignee shall (a) first deliver plans and  specifications for complying with
such additional  requirements and obtain Landlord's written consent thereto, and
(b) comply with all  Landlord's  conditions  for or contained  in such  consent,
including without limitation,  requirements for security to assure the lien-free
completion of such improvements.  If Tenant seeks to sublet or assign all or any
portion of the  Premises,  Tenant shall deliver to Landlord at least thirty (30)
days prior to the  proposed  commencement  of the  sublease or  assignment  (die
"Proposed Effective Date") the following:  (i) the name of the proposed assignee
or  sublessee;  (ii)  such  infonnafion  as to such  assignee's  or  sublessee's
financial  responsibility and standing as Landlord may reasonably  require;  and
(iii) the aforementioned plans and specifications,  if any. Within ten (10) days
after  Landlord's  receipt of a written request from Tenant that Tenant seeks to
sublet or assign all or any portion of die Premises,  Landlord  shafl deliver to
Tenant a copy of Landlord's  standard  form of sublease or assignment  agreement
(as applicable),  which instrument shall be utilized for each proposed  sublease
or assignment (as  applicable),  and such  instrument  shall include a provision
whereby the assignee or sublessee assumes all of Tenant's obligations  hereunder
and agrees to be bound by the terms hereof As Additional Rent hereunder,  Tenant
shall pay to Landlord a fee in the amount of five  hundred  dollars  ($500) plus
Tenant shall reimburse  Landlord for actual legal and other expenses incurred by
Landlord in connection with any actual or proposed assignment or subletting.  In
the event the sublease or assignment  (1) by itself or taken together with prior
sublease(s) or partial  assignment(s) covers or totals, as the case may be, more
thari  twcnty-five  percent (25%) of the rentable square feet of the Premises or
(2) is for a term  which  by  itself  or  taken  together  with  prior  or other
subleases  or partial  assignments  is greater  dw fifty  percent  (501%) of the
period  remaining  in the  Term of this  Lease  as of the  time of the  Proposed
Effecfive  Date,  then Landlord shall have the right,  to be exercised by giving
written  notice to Tenant,  to recapture the space  described in the sublease or
assignment.  If such recapture notice is given, it shall serve to terminate this
Lease with  respect to the proposed  sublease or  assignment  space,  or, if die
proposed <PAGE>

sublease  or  assignment  space  covers  all the  Premises,  it  shall  serve to
terminate  the entire  term of this  Lease in either  case,  as of the  Proposed
Effective  Date.  However,  no termination of this Lease with respect to part or
all of the Premises shall become  effective  without the prior written  consent,
where necessary, of the holder of each deed of trust encumbering the Premises or
any part  thereof.  If this Uasc is terminated  pursuant to the  foregoing  with
respect to less than the entire  Premises,  the Rent  shall be  adjusted  on the
basis of the  proportion  of square  feet  retained by Tenant to the square feet
originally  demised and this Lease as so amended  shall  continue  thereafter in
full force and effect.  Each permitted assignee or sublesscc shall assume and be
deemed  to  assume  th@is  Lease  and shall be and  remain  liable
jointly  and
scverally  with Tenant for payment of Rent and for the due  performance  of, and
compliance  with all the terms,  covenants,  conditions  and  agreements  herein
contained on Tenant's  part to be performed  or complied  with,  for the term of
this Lease.  No  assignment or subletting  shall affect the  continuing  primary
liability of Tenant  (which,  following  assignment,  shall be joint and several
with the assignee),  and Tenant shall not be released from performing any of the
terms,  covenants and conditions of this Leasc.  Tenant hereby  acknowledges and
agrees that it understands that Landlord's accounting department may process and
accept Rent  payments  without  verifying  that such  payments are being made by
Tenant,  a permitted  sublessce or a permitted  assignee in accordance  with the
provisions  of this Lease.  Although such payments may be processed and accepted
by such accounting department personnel, any and all actions or omissions by the
personnel  of  Landlord's  accqunting  department  shall  not be  considered  as
acceptance  by Landlord of any  proposed  assignee or  sublessee  nor shall such
actions or  omissions  be deemed to be a substitute  'for the  requirement  that
Tenant  obtain  Landlord's  prior  written  consent  to any such  subletting  or
assignment,  and any such actions or omissions  by the  personnel of  Landlord's
accounting  department shall not be considered as a voluntary  relinquishment by
Landlord of any of its rights  hereunder nor shall any voluntary  relinquishment
of such rights be inferred  therefrom.  For purposes hereof, in the event Tenant
is a corporation, partnership, joint venture, trust or other entity other than a
natural  person,  any  change in the  direct  or  indirect  ownership  of Tenant
(whether  pursuant to one or more  transfers)  which results in a change of more
than fifty percent (50%) in the direct or indirect  ownership of Tenant shall be
deemed to be an  assignment  within the meaning of this  Section 15 and shall be
subject  to all the  provisions  hereof  Any and all  options,  first  rights of
refusal,  tenant  improvement  allowances  and other similar  rights  granted to
Tenant,in this Lease, if any, shall not be assignable by Tenant unless expressly
authorized in writing by Landlord.

15.2 Exce1s  Sublease  Rental or Assignment  Consideration:  In the event of any
sublease or assignment  of all or any portion of the Premises  where the rent or
other consideration  provided for in the sublease or assignment either initially
or over the term of the  sublease  or  assignment  exceeds  die Rent or pro rata
portion of the Rent@ as the case may be, for such space  reserved  in the Lease,
Tenant shall pay the Landlord  monthly,  as Additional Rent, at the same time as
die monthly  installments of Rent arc payable  hereunder,  scvcnty-five  percent
(75%) of the  excess  of each such  payment  of rent or other  consideration  in
excess of the Rent called for hereunder.

15.3 Waiver:  Notwithstanding any assigruncrit or sublcasc,  or any indulgences,
waivers or  extensions of time granted by Landlord to any assignee or sublessee,
or failure by Landlord to take action  against any asginee or  sublease,  Tenant
waives notice of any default of any assignee or sublease andagrees that Landlord
may, at its option,  proceed  against Tenant without having taken action against
or joined such assignee or sublessee,  except that Tenant shall have the benefit
of any indulgences,  waivers and extensions of time granted to any such assignee
or sublessee.

16. Ad  Valorem  Taxes:  Prior to  delinquency,  Tenant  shall pay all taxes and
assessments levied upon trade fixtures,  alterations,  additions,  improvements,
inventories and personal property locatcd and/or installed on or in the Premises
by, or on behalf of, Tenant; and if requested by Landlord, Tenant shall promptly
deliver  to  Landlord  copies of  receipts  for  payment  of all such  taxes and
assessments.  To the extent any such taxes are not separately assessed or billed
to Tenant, Tenant shall pay the amount thcreof as invoiced by Landlord.

17.  Subordination:  Without die  necessity  of any  additional  document  being
executed by Tenant for the  purpose of  effecting  a  subordination,  and at the
election  of Landlord or any bona fide  mortgagee  or deed of trust  beneficiary
with a lien on all or any  portion of the  Premises  or any ground  lessor  with
respect to die land of which die Prcmiscs are a part, die rights of Tenant under
this Lease and this Lease shall be subject and  subordinate at all times to: (i)
all ground  leases or  underlying  leases  which may now exist or  hereafter  be
executed  afficting the Building or the land upon which the Building is situated
or both,  and (ii) the lien of any mortgage or deed of trust which may now exist
or hereafter be executed in any amount for which the Building,  the Lot,  ground
leases or underlying  leases,  or  Landlord's  interest or estate in any of said
items is specified as security.  Notwithstanding the foregoing,  Landlord or any
such  ground  lessor,  mortgagee,  or any  beneficiary  shall  have the right to
subordinate  or cause to be  subordinated  any such ground  leases or underlying
leases or any such liens to this Lease. If any ground lease or underlying  lease
terminates  for any reason or any mortgage or deed of trust is  foreclosed  or a
conveyance  in lieu  of  foreclosure  is made  for  any  reason,  Tenant  shall,
notwithstanding  any  subordination  and upon the request of such  successor  to
<PAGE>

Landlord,  attorn to and become  the  Tenant of the  successor  in  interest  to
Landlord,  provided such  successor in interest  will not disturb  Tenant's use,
occupancy or quiet enjoyment of the Premises so long as Tenant is not in default
of the ternis and  provisions  of this  Lease.  The  successor  in  interest  to
Landlord  following  foreclosure,  sale or deed in licu thereof shall not be (a)
liable for any act or  omission  of any prior  lessor or with  respect to events
occurring  prior to  acquisition  of  ownership;  (b)  subject to any officts or
defenses  which  Tenant  might  have  against  any  prior  lessor;  (c) bound by
prepayment of more than one (1) month's  Rent,  except in those  instances  when
Tenant pays Rent  quarterly  in advance  pursuant to Section 8 hereof,  then not
more than three months'  Rent; or (d) liable to Tenant for any Security  Deposit
not actually received by such successor in interest to die extent any portion or
all of such Security  Deposit has not already been forfcited by, or refunded to,
Tenant.  Landlord  shall be  liable  to  Tenant  for all or any  portion  of the
Security  Deposit not  forfeited  by, or  refunded  to Tenant,  until and unless
Landlord  transfers such Security  Deposit to the successor in interest.  Tenant
covenants and agrees to execute (and  acknowledge  if required by Landlord,  any
lender  or  ground  lessor)  and  deliver,  within  five (5) days of a demand or
request by  Landlord  and in die form  requested  by  Landlord,  ground  lessor,
mortgagee or bcncficiary,  any additional  documents  evidencing die priority or
subordination of this Lease with respect to any such ground [cases or underlying
leases or the lien of any such  mortgage or deed of trust.  Tenant's  failure to
timely  execute and deliver  such  additional  documents  shall,  at  Landlord's
option,  constitute a material default hereunder. It is further agreed "t Tenant
shall be liable to Landlord,  and shall indemnify  Landlord from and against any
loss, cost, damage or expense, incidental,  consequential, or otherwise, arising
or  accruing  directly or  indirectly,  from any failure of Tenant to execute or
deliver to Landlord any such  additional  documents,  together  with any and all
Enforcement Expenses.

18. Right of Entry:  Tenant grants Landlord or its agents the right to enter the
Premises at all reasonable times for purposes of inspection, exhibition, posting
of notices,  repair or alteration.  At Landlord's option,  Landlord shall at all
times  have and  retain a key with  which to unlock  all the doors in,  upon and
about die Premises,  excluding  Tenant's vaults and safes. It is fijrther agreed
that  Landlord  shall  have the  right to use any and all means  Landlord  deems
necessary to enter the Premises in an emergency.  Landlord  shall have the right
to place "for rent" or "for  lease"  signs on the outsid@ of the  Premises,  the
Building and in the Common  Areas.  Landlord  shall also have die right to place
"for sale" signs on the outside of the  Building  and in the Common Arm.  Tenant
hereby  waives any claim from damages or for any injury or  inconvenience  to or
interference with Tenant's business, or any other loss occasioned thereby except
for any claim for any of the  foregoing  arising  out of the sole  active  gross
negligence or willful misconduct of Landlord or its authorized representatives

19. Estoppel  Certificate:  Tenant shall execute (and acknowledge if required by
any lender or ground lessor) and deliver to Landlord, within five (5) days after
Landlord  provides  such to Tenan(a  statement in writing  certifying  that this
Lease is unmodified  and in full force and effect (or, if modified,  stating the
nature of such  modification),  the date to wWch the Rent and other  charges arc
paid in  advance,  if any,  acknowledging  tlit,  there  are  not,  to  Tenant's
knowledge,  any uncured defaults on the part of Landlord  hereunder or specif@bg
such defaults as are claimed,  and such other matters as Landlord may reasonably
require.  Any such statement may be conclusively relied upon by Landlord and any
prospective  purchaser  or  encumbrancer  of the  Premises.  Tenanes  failure to
deliver such statement within such time shall be conclusive upon the Tenant that
(a) th@is Lease is in full force and effect,  without modification except as may
be  represented  by  Landlord;  (b) there are no uncured  defaults in  Landlords
performance;  and (c) not more than one  month's  Rent has been paid in advance,
except in those instances when Tenant pays Rent quarterly in advance pursuant to
Section  8  hereof,  then not more  than  three  month's  Rent has been  paid in
advance.  Failure by Tenant to so deliver such  certified  estoppel  certificate
shall be a material  default of the  provisions  of this Lease.  Tenant shall be
liable to  Landlord,  and shall  indemnify  Landlord  from and against any loss,
cost, damage or expense,  incidental,  consequential,  or otherwise,  arising or
accruing  directly  or  indirectly,  from any  failure  of Tenant to  execute or
deliver to Landlord any such certified estoppel  certificate,  together with any
and all Enforcement Expenses.

20.      Tenant's  Default:  The occurrence of any one or more of the following
events shall, at Landlord's  option,  constitute a material default by Tenant of
the provisions of this Lease:

20.1 The  abandonment  of the Premises by Tenant or the vacation of the Premises
by Tenant which would cause any insurance  policy to be invalidated or otherwise
lapse.  Tenant  agrees to notice and service of notice as  provided  for in this
Lease and waives  any right to any other or further  notice or service of notice
which Tenant may have under any statute or law now or hereafter in effect;

20.2 The failure by Tenant to make any payment of Rent,  Additional  Rent or any
other payment required  hereunder on the date said payment is due. Tenant agrees
to notice  and  service of notice as  provided  for in this Lease and waives any
right to any other or further  notice or service of notice which Tenant may have
under any statute or law now or hereafter in cffcct; <PAGE>

20.3 The  failure  by  Tenant to  observe,  perform  or  comply  with any of the
conditions,  covenants or provisions  of this Lease (except  failure to make any
payment of Rent and/or Additional Rent) and such failure is not cured within the
time period  required  under the  provisions  of this Lease.  If such failure is
susceptible  of cure but cannot  reasonably  be cured within the  aforementioned
time period (if any), as dctcrmincd  solely by Landlord,  Tenant shall  promptly
commence the cure of such failure and thereafter  diligently prosecute such cure
to completion within the time period specified by Landlord in any written notice
regarding such failure as may be delivered to Tenant by Landlord. In no event or
circumstance  shall Tenant have more than fifteen (15) days to complete any such
cure, unless otherwise expressly agreed to in writing by Landlord (in Landlord's
sole discretion);

20.4 The nuking of a general  assignment by Tenant for the benefit of creditors,
the filing of a  voluntary  petition  by Tenant or the filing of an  involuntary
petition by any of Tenant's creditors seeking the  rehabilitation,  liquidation,
or reorganization of Tenant under any law rclating to bankruptcy,  insolvency or
other relief of debtors and, in the case of an involuntary  action,  the failure
to remove or  discharge  the same  within  sixty (60) days of such  filing,  the
appointment of a receiver or other custodian to take possession of substantially
all of Tenanes assets or this leasehold, Tenant's insolvency or inability to pay
Tenant's  debts or failure  generally to pay Tenant's  debts when due, any court
entering a decree or order  directing the winding up or liquidation of Tenant or
of  substantially  all of Tenanes  assets,  Tenant  taking any action toward the
dissolution  or winding up of Tenant's  affairs,  the cessation or suspension of
Tenant's use of the Pren-dses,  or the  attachment@  execution or other judicial
seizure of substantially all of Tenant's assets or this leaschold;

20.5 Tenanfs use or storage of Hazardous Materials in, on or about the Premises,
the Building,  the Lot and/or the Park other than as expressly  permitted by the
provisions of Section 29 below; or

20.6 The making of any inatcrial  mimprescritation or ornission by Tenant in any
materials  delivered  by or on behalf of Tenant  to  Landlord  pursuant  to this
Lcasc.

21.      Remedies for Tenant's Default:

21.1 Landlord's  Rights:  In die event of Tenant's  material  default under this
Lease,  Landlord may terminate  Tenant's  right to possession of the Premises by
any lawful means in which case upon delivery of written  notice by Landlord this
Lease  shall  terminate  on the date  specified  by  Landlord in such notice and
Tenant shall inunediatcly  surrender possession of the Premises to Landlord.  In
addition, the Landlord shall have the immediate right of re-cntry whether or not
this Lease is terminated,  and if this right of re-entry is exercised  following
abandonment  of the  Premises by Tenant,  Landlord  may  consider  any  personal
property  belonging  to  Tenant  and  left on die  Premises  to also  have  been
abandoned. No rc-cntry or taking posseslion of the Premises by Landlord pursuant
to this Section 21 shall be  construed  as an election to  terminate  this Lease
unless a written notice of such intention is given to Tenant. If Landlord rclets
the Premises or any portion thcrcof,  (i) Tenant shall be liable  immediately to
Landlord  for all costs  Landlord  incurs in  relating  die  Premises or any pan
thereof,  including,  without limitation,  broker's  comni@issions,  expenses of
cleaning,  redecorating,  and further  improving  the Premises and other similar
costs  (collectively,  the  "Reletting  Costs"),  and (ii) the rent  received by
Landlord  from such  reletting  shall be applied to die payment of,  first,  any
indebtedness from Tenant to Landlord other than Base Rent,  Increased  Operating
Expenses,  Increased Tax Expenses,  Administrative Expenses, Common Area Utility
Costs, and Utility Expenses;  second, all costs including maintenance,  incurred
by Landlord in reletting;  and, third, Base Rent,  Increased Operating Expenses,
Increased  Tax Expenses,  Administrative  Expenses,  Common Area Utility  Costs,
Utility  Expenses,  and all other sums due under this Lease.  Any and all of the
Relating Costs shall be fully  chargeable to Tenant and shall not be prorated or
otherwise amortized in relation to any new lease for the Premises or any portion
thereof.  After deducting the payments referred to above, any sum remaining from
the rental  Landlord  receives  from  reletting  shall be held by  Landlord  and
applied in payment of future Rent as Rent  becomes  due under this Lease.  In no
event  shall  Tenant be  entitled  to any  excess  rent  received  by  Landlord.
Reletting may be for a period  shorter or longer than the remaining tern of this
Lease.  No act by Landlord  other than  giving  written  notice to Tenant  shall
terminate this Lease. Acts of maintenance,  efforts to relet the Premises or the
appointment  of a  receiver  on  Landlord's  initiative  to  protect  Landlord's
interest  under this Lease shall not  constitute a termination of Tenant's right
to possession. So long as this Lease is not terminated,  Landlord shall have the
right to remedy any default of Tenant,  to maintain or improve the Premises,  to
cause a receiver to be appointed to administer  die Premises and new or existing
subleases and to add to the Rent payable hereunder all of Landlord's  reasonable
costs in so doing,  with interest at the maximum rate permitted by law froni the
date of such expenditure.

21.2  Damages  Recoverable:  If Tcnant  breachcs  this  Lease and  abandons  the
Premises  bcforc the end of the Term,  or if  Tenant's  right to  possession  is
terminated by Landlord because of a breach or dcfault under this Lease,  then in
either  such case,  Landlord  may recover  from  Tenant all damages  suffcrcd by
Landlord as a result of Tenant's  failure to perform its obligations  hereunder,
including, but not limited <PAGE>

to, the  portion of any  brokees or leasing  agent's  commission  incurred  with
respect to the leasing of the  Premises to Tenant for the balance of die Term of
the  Lease  remaining  after  the  date on which  Tenant  is in  default  of its
obligations hereunder, and all Reletting Costs, and the worth at the time of the
award  (computed in accordance  with paragraph (3) of Subdivision (a) of Section
1.951.2  of the  California  Civil  Code) of the  amount  by which the Rent then
unpaid  hereunder  for the balance of the Lease Term  exceeds the amount of such
loss of Rent for the same period which Tenant proves could be reasonably avoided
by  Landlord  and in such  case,  Landlord  prior to the  award,  may  rclct the
Premises for the purpose of mitigating  damages  suffered by Landlord because of
Tenant's failure to perform its obligations hereunder-,  provided, however, that
even though Tenant has abandoned the Premises following such breach,  this Lease
shall  nevertheless  continue  in full force and cffcct for as long as  Landlord
does not terminate  Tenant's  right of possession,  and until such  termination,
Landlord  shall have the rcmedy  described in Section  1951.4 of the  California
Civil Code (Landlord may continue this Lease in effect after Tenant's breach and
abandonment  and  recover  Rent as it  becomes  due,  if Tenant has the right to
sublet or assign,  subject only to reasonable  limitations)  and may enforce all
its rights and  remedies  under this Lease,  including  the right to recover the
Rent  from  Tenant as it  becomes  due  hereunder.  ne "worth at the time of the
award" within the meaning of Subparagraphs;  (a)(1) and (a)(2) of Section 1951.2
of the California Civil Code shall be computed by allowing  interest at the rate
of ten  percent  (10%) per  annum.  Tenant  waives  redemption  or  relief  from
forfqiture under  California Code of Civil Procedure  Sections 1174 and 1179, or
under any other  present  or future  law,  in the  event  Tenant is  evicted  or
Landlord  takes  possession  of the  Premises by reason nf any default of Tenant
hereunder.

21.3  Rights and  Remedies  Cumulative:  Ile  foregoing  rights and  remedies of
Landlord are not  exclusive;  they are  cumulative in addition to any rights and
remedies now or hereafter existing at law, in equity by statute or otherwise, or
to any equitable  remedies  Landlord may have, and to any remedies  Landlord may
have under  bankruptcy laws or laws affecting  creditoes  rights  generally.  In
addition to all remedies set forth above,  if Tenant  materially  defaults under
this Lease, any and all Base Rcnt waived by Landlord under Section 3 above shall
be  immediately  due and payable to Landlord  and all options  granted to Tenant
hercunder shall automatically terminate, unless otherwise expressly agreed to in
writing by Landlord.

21.4 Waiver of a Default: Ile waiver by Landlord of any default of any provision
of this Lease shall not be deemed or construed a waiver of any other  default by
Tenant  hereunder  or of any  subsequent  default of this Lease,  except for the
dcFault specified in the waiver.

22.  Holding  Over : If  Tenant  holds  possession  of die  Premises  after  the
cxpiration  of the Term of this  Lease with  Landlord's  consent,  Tenant  shall
become a tenant  from  month-to-month  upon the  terms  and  provisions  of this
L-ease,  provided  the monthly  Base Rent during such hold over period  shall be
150% of the Base  Rent  due on the last  month of the  Ltase  Term,  payable  in
advance on or before the first day of each month.  Acceptance by Landlord of the
monthly Base Rent without the  additional  fifty percent (50%)  increase of Base
'Rent  shall not be deemed or  construed  as a waiver by  Landlord of any of its
rights to collect the  increased  amount of the Base Rent as provided  herein at
any time.  Such  month-to-month  tenancy  shall  not  constitute  a  renewal  or
extension for any fiirthcr term. All options, if any, granted under the terms of
this Lease shall be deemed automatically terminated and be of no force or cffcct
during said  month-to-month  tenancy.  Tenant shall continue in possession until
such tenancy  shall be terminated  by either  Landlord or Tenant giving  written
notice of  tcrmination to die other party at least thirty (30) days prior to the
effective  date  of  termination.  This  paragraph  shall  not be  construed  as
Landlord's  permission  for  Tenant  to hold  over.  Acceptance  of Base Rent by
Landlord following  expiration or termination of this Lease shall not constitute
a renewal of this Lease.

23.  Landlord's  Default:  Landlord  shall not be deemed in breach or default of
this  Lease  unless  Landlord  fails  within a  reasonable  time to  perform  an
obligation required to be performed by Landlord hereunder.  For purposes of this
provision,  a  reasonable  time  shall not be less than  thirty  (30) days after
receipt by Landlord of written  notice  specifying  the nature of the obligation
Landlord has not performed,  provided, however, that if the nature of Landlord's
obligation  is such that more than th@irty (30) days,  after  receipt of written
notice, is reasonably necessary for its performance,  then Landlord shall not be
in  breach  or  default  of this  Lease if  performance  of such  obligation  is
commenced within such thirty (30) day period and thereafter  diligently  pursued
to completion.

24. Parkin : Tenant shall have a license to use the number of non-designated and
non-exclusive parking spaces specified in the Basic Lease Information.  Landlord
shall  exercise  reasonable  efforts to insure that such spaces are available to
Tenant for its use, but Landlord shall not be required to enforce Tenant's right
to use the same.

<PAGE>

25. Sale of  Premises:  In die event of any sale of the  Premises by Landlord or
the cessation otherwise of Landlord's interest therein, Landlord shall be and is
hereby  entirely  released  from any and all of its  obligations  to  perform or
further perform under this Lease and from all liability  hereunder accruing from
or  after  the  date  of  such  sale;  and die  purchaser,  at such  sale or any
subsequent sale of the Premises shall be deemed,  without any further  agreement
between the parties or their  successors  in interest or between the parties and
any such  purchaser,  to have assumed and agreed to carry out any and all of the
covenants and obligations of die Landlord under this Lease. For purposes of this
Section 25, die term  "Landlord"  means only the owner and/or agent of the owner
as such  parties  exist as of the date on wWch Tenant  executes  this  Lease.  A
ground lease or sirnilar long term lease by Landlord of the cnfirc Building,  of
which the Premises are a part, shall be deemed a sale within the meaning of d-ds
Section 25.  Tenant  agrees to attorn to such new owner  provided such new owner
does not disturb  Tenant's use,  occupancy or quiet enjoyment of the Premises so
long as Tenant is not in default of any of the provisions of this Lease.

26.  Waiver:  No delay or  omission  in die  exercise  of any right or remedy of
Landlord  on any  default by Tenant  shall  impair  such a right or remedy or be
construed  as a waiver.  The  subsequent  acceptance  of Rent by Landlord  after
default by Tenant of any  covenant  or term of this Lease  shall not be deemed a
waiver of such 4cfault@ other than a waiver of timely payment for the particular
Rent  payment  involved,  and shall not prevent  Landlord  from  maintaining  an
unlawful  dctainer or other action based on such breach. No payment by Tenant or
receipt by Landlord of a lesser amount than die monthly Rent and other sunis due
hereunder  shall be deemed to be other than on account of the  earliest  Rent or
other  surns  due,  nor  shall  any  endorsement  or  statement  on any check or
accompanying  any check or  payment be deemed an accord  and  satisfaction;  and
Landlord may accept such check or payment without  prejudice to Landlord's right
to recover  the  balance  of such Rent or other sum or pursue  any other  remedy
provided in this Lease. No failure, partial exercise or delay on the part of the
Landlord in exercising any right, power or privilege  hereunder shall operate as
a waiver thereof.

27.  Casualty  Damage:  If the Premises or any part thereof  shall be damaged by
fire or other  casualty,  Tenant  shall give prompt  written  notice  thereof to
Landlord.  In case the  Building  shall be so damaged by fire or other  casualty
that  substantial  alteration  or  reconstruction  of  the  Building  shall,  in
Landlord's  sole opinion,  be required  (whether or not the Premises  shall have
been  damaged by such fire or other  casualty),  Landlord  may,  at its  option,
tcrininate this Lease by notifying Tenant in writing of such termination  within
ninety (90) days after the date of such damage, in which event the Rent shall be
abated as of the date of such  damage.  If Landlord  does not elect to tenninate
this Lease, and provided  insurance  proceeds and any contributions from Tenant,
if necessary,  are available to fully repair the damage,  Landlord  shall within
one hundred  twenty (120) days after the date of such damage  commence to repair
and restore the Building and shall proceed with reasonable  diligence to restore
the Building  (except that Landlord shall not be responsible  for delays outside
its control) to  substantially  the same  condition in which it was  immediately
prior to the hapging, of the casualty;  provided, Landlord shall not be required
to rebuild,  repair,  or replace any part t Tc,  ant's  furniture,  furnishings,
fixtures and/or equipment removable by Tenant or ally improvements,  alterations
or additions  installed by or for the benefit of Tenant under the  provisions of
this Lease.  Landlord  shall not in any event be required to spend for such work
all amount in excess of the insurance  proceeds  (excluding any  deductible) and
any contributions from Tenant, if necessary,  actually received by Landlord as a
result of die fire or other  casualty.  Landlord  shall  not be liable  for ally
inconvenience or annoyance to Tenant,  injury to the business of Tenant, loss of
use of any part of the  Premises  by the  Tenant  or loss of  Tenant's  personal
propeny  resulting  in any way from such  damage or the repair  thereof,  except
that,  subject to the  provisions  of the next  sentence,  Landlord  shall allow
Tenant a fair  diminution of Rent during the time and to the extent the Premises
are unfit for  occupancy.  Notwithstanding  anything to the  contrary  contained
herein,  if die Premises or any other portion of the Building be damaged by fire
or other casualty  resulting from the intentional or negligent acts or omissions
of  Tenant  or any of  Tenant's  Representatives,  (i)  the  Rent  shall  not be
diminished  during the repair of such  damage,  (ii)  Tenant  shall not have any
right to terminate  this Lease due to the occurrence of such casualty or damage,
and (iii)  Tenant  shall be liable to  Landlord  for the cost and expense of the
repair and  restoration  of all or any portion of the  Building  caused  thereby
(including,  without  limitation,  any  deductible)  to the extent such cost and
expense is not  covered by  insurance  proceeds.  In die event the holder of any
indebtedness  secured by the Premises  requires that the  insurance  proceeds be
applied to such  indebtedness,  then Landlord  shall have die right to terminate
this Lease by delivering  written  notice of termination to Tenant within thirty
(30) days after the date of notice to Tenant of any such  event,  whereupon  all
rights and  obligations  shall cease and  terminate  hereunder  except for those
obligations  expressly  intended to survive any such  termination  of this [.me.
Except as  otherwise  provided in this  Section  27,  Tenant  hereby  waives the
provisions of Sections 1932(2.), 1933(4.), 1941 and 1942 of die California Civil
Code.

28.  Condemnation:  If  twcnty-five  percent  (25%) or more of the  Premises  is
condemned by eminent domain, inversely condemned or sold in lieu of condemnation
for any public or  quasi-public  use or purpose  ("Condemned"),  then  Tenant or
Landlord may terminate this Lease as of the date when physical possession
<PAGE>

of the Premises is taken and title vests in such condemning authority,  and Rent
shall be adjusted to the date of terraination.  Tenant shall not because of such
condemnation assert any claim against Landlord or the condernning  authority for
any compensation because of such condemnation, and Landlord shall be entitled to
receive  the  entire  amount of any award  without  deduction  for any estate of
interest or other interest of Tenant.  If neither party elects to terminate this
L@ease,  Landlord shall, if necessary,  promptly proceed to restore the Premises
or the  Building  to  substantially  its  same  conditionprior  to such  partial
condemnation,  allowing for the reasonable effects of such partial condemnation,
and a proportionate  allowance shall be made to Tenant,  as solely detem-dned by
Landlord,  for the Rent  corresponding to the time during which, and to the part
of the  Premises  of which,  Tenant  is  deprived  on  account  of such  partial
condemnation and restoration.  Landlord shall not be required to spend funds for
restoration  in  excess of the  amount  received  by  Landlord  as  compensation
awarded.

29.      Environmental Matters/lIazardous Materiils:

29.1 Hazardous Materials Disclosure  Certificate:  Prior to excuting this lease,
Tenant has  completed,  executed  and  delivered  to  Landlord  Tenanes  initial
Hazardous Materials Disclosure  Certificate (the "Initial Ha7,Mat Certificate"),
a copy of which is attached hereto as Exhibit G and incorporated  herein by this
reference.  Tenant  covenants,  represents  and  warrants to  Landlord  that the
information on the Initial HazMat Certificate is true and correct and accurately
describes  the use(s) of Hazardous  Materials  which will be made and/or used on
the Premises by Tenant.  Tenant shall commencing with the date which is one year
from the  Commencement  Date and  continuing  every year  thereafter,  complete,
execute, and deliver to Landlord,  a Hazardous Materials Disclosure  Certificate
("the  "HazMat  Certificate")  describing  Tenant's  present  use  of  Hazardous
Materials  on the  Premises,  and any other  reasonably  necessary  documents as
requested by Landlord.  The HazMat  Certificate  required  hereunder shall be in
substantially the form as that which is attached hereto as Exhibit E.

       29.2 Definition of Hazardous  Materials:  As used in this Lease, the term
Hazardous  Materials  shall mean and include (a) any  hazardous or toxic wastes,
materials or  substances,  @M other  pollutants  or  contaminants,  which are or
become  regulated  by  any  Environmental  Laws;  (b)  petroleum,  petroleum  by
products,  gasoline,  diesel  fiiel,  crude  oil or any  fraction  thereof,  (c)
asbestos and  asbestos  containing  material,  in any form,  whether  friable or
non-friable;  (d) polychlorinated biphenyls; (e) radioactive materials; (f) lead
and  lead-containing  materials;  (g) any  other  material,  waste or  substance
displaying toxic, reactive, ignitable or corrosive characteristics,  as all such
terms are used in their broadest sense, and are defined or become defined by any
Environmental Law (defined below); or (h) any materials which cause or threatens
to cause a nuisance upon or waste to any portion of the Premises,  the Building,
the Lot, the Park or any surrounding  property;  or poses or threatens to pose a
hazard to the health and safety of persons on the  Premises  or any  surrounding
property.

       29.3 Pphibition;  Environmental Laws: Tenant shall not be entitled to use
nor store any Hazardous Materials on, in, or about the Pren-dses,  the Building,
the Lot  and  the  Park,  or any  portion  of the  foregoing,  without,  in each
instance,  obtaining  Landlord's  prior  written  consent  thereto.  If Landlord
consents to any such usage or storage,  then Tenant  shall be  permitted  to use
and/or store only those  Hazardous  Materials  that are  necessary  for Tenant's
business and to the extent disclosed in the HazMat  Certificate and as expressly
approved by Landlord in writing, provided that such usage and storage is only to
the extent of the  quantifies  of  Hazardous  Materials as specified in the then
applicable  HazMat  Certificate  as expressly  approved by Landlord and provided
further  that such  usage and  storage  is in full  compliance  with any and all
local,  state and federal  environmental,  health  and/or  safety-related  laws,
statutes,   orders,  standards,   courts'  decisions,   ordinances,   rules  and
regulations (as interpreted by judicial and administrative decisions),  decrees,
directives,  guidelines, permits or permit conditions, currently existing and as
amended, enacted, issued or adopted in the future which arc or become applicable
to  Tenant  or  all  or  any  portion  of  the   Premises   (collectively,   the
"Environmental  Laws").  Tenant  agrees  that any  changes  to the  type  and/or
quantities  of  Hazardous   Materials   specified  in  the  most  recent  HazMat
Certificate may be implemented  only with the prior written consent of Landlord,
which consent may be given or withheld in  Landlord's  sole  discretion.  Tenant
shall not be entitled nor permitted to install any tanks under,  on or about the
Premises  for the storage of  Hazardous  Materials  without the express  written
consent  of  Landlord,  which  may be  given  or  withheld  in  Landlord's  sole
discretion.  Landlord  shall have the fight at all times during the Term of this
Lease to (i) inspect the  Premises,  (ii) conduct  tests and  investigations  to
determine  whethel  Tenant is in compliance  with the provisions of this Section
29, and (iii) request lists of all Hazardous Matdrials used, stored or otherwise
located on, under or about any portion of the Premises and/or die Common Areas*.
Ile cost of all such inspections,  tests and investigations shall be home solely
by Tenant,  if  Landlord  reasonably  determines  that Tenant or any of Tenant's
Representatives  are directly or  indirectly  responsible  in any manner for any
contamination  revealed  by such  inspections,  tests  and  investigations.  Ile
aforementioned  fights granted herein to Landlord and its representatives  shall
not create (a) a duty on Landlord's part to inspect, test, investigate,  monitor
or  otherwise  observe the  Premises or the  activities  of Tenant and  Tenant's
Representatives   with  respect  to  Hazardous   Materials,   including  without
limitation,  Tenant's operation, use and any remcdiation related thereto, or (b)
liability on <PAGE>

die part of Landlord and its representatives for Tenant's use, storage, disposal
or rcmediation of Hazardous Materials,  it being understood that Tenant shall be
solely responsible for all liability in connection therewidi.

29.4 Tenant's Environmental Obligations: Tenant shall give to Landlord immediatc
verbal  and  follow-up  written  notice  of any  spills,  releases,  discharges,
disposals,  emissions,  migrations,  removals  or  transportation  of  Hazardous
Materials on, under or about any portion of the Premises or in any Common Areas.
Tenant,  at its sole  cost and  expense,  covenants  and  warrants  to  promptly
investigate,  clean up,  remove,  restore and  otherwise  remediate  (including,
without  limitation,  preparation of any feasibility  studies or reports and the
performance of any and all closures) any spill,  release,  discharge,  disposal,
emission,  migration or  transportation  of Hazardous  Materials arising from or
related to the  intentional or negligent acts or omissions of Tenant or Tenant's
Representatives  such that the  affected  portions of the Park and any  adjacent
property arc returned to the condition  existing prior to the appearance of such
Hazardous Materials. Any such investigation,  clean up, removal, restoration and
other remcdiation  shall only be performed after Tenant has obtained  Landlord's
prior written consent,  which consent shall not be unreasonably withheld so long
as such  actions  would not  potentially  have a material  adverse  long-term or
short-term cffcct on any portion of the Premises,  the Building,  the Lot or the
Park.  Notwithstanding  the  foregoing,  Tcn4nt  shall be  entitled  to  respond
immediately to an emergency  without first  obtaining  Landlord's  prior written
consent.  Tenant,  at its sole cost and expense,  shall conduct and perform,  or
cause  to  be  conducted  and  performed,   all  closures  as  required  by  any
Environmental  Laws or any  agencies or other  governmental  authorities  having
jurisdiction  thereof.  IfTcnant  fails to s'o promptly  investigate,  clean up,
remove,  restore,  provide closure or otherwise so remediate,  Landlord may, but
without  obligation  to do so, take any and all steps  necessary  to rectify the
same and Tenant shall promptly  reimburse  Landlord,  upon demand, for all costs
and  expenses  to  Landlord  of  perfonning  investigation,  clean up,  removal,
restoration,  closure and remediation  work. All such work undertaken by Tenant,
as required herein, shall be performed in such a manner so as to enable Landlord
to make full  economic use of the Premises,  the Building,  the Lot and the Park
after the satisfactory completion of such work.

29.5 Environmental  Indemnity:  In addition to Tenant's obligations as set forth
hereinabove,  Tenant and Tenant's  officers and  directors  agree to, and shall,
protect,  indemnify,  defend (with  counsel  acceptable  to  Landlord)  and hold
Landlord and the other Indemnitees harmless from and against any and all claims,
judgments,  damages, penalties, fines, liabilities,  losses (including,  without
limitation,  diminution in value of any portion of the  Premises,  the Building,
the Lot or die  Park,  damages  for die  loss  of or  restriction  on the use of
rentable or usable space, and from any adverse impact of Landlorcrs marketing of
any space within the Building and/or Park),  suits,  administrative  proceedings
and costs  (including,  but not limited to,  attomcys' and  consultant  fees and
court  costs)  arising  at any  time  during  or  after  the Term of "s Lease in
connection  with or related  to,  directly  or  indirectly,  the use,  presence,
transportation,   storage,  disposal.  migration,  removal,  spill,  release  or
discharge of Hazardous  Materials  on, in or about any portion of the  Premises,
the Common  Areas,  the Building,  the Lot or the Park as a result  (directly or
indirectly)  of the  intentional or negligent acts or omissions of Tenant or any
of Tenant's  Representatives.  Neither  the  written  consent ot Landlord to the
presence,  use or  storage of  Hazardous  Materials  in, on,  under or about any
portion of the Premises,  the Building,  the Lot and/or the Park, nor the strict
compliance  by Tenant  with all  Divironmental  Laws  shall  excuse  Tenant  and
Tenant's  officers  wid  directors  froin  its  obligations  of  indemnification
pursuant hereto. Tenant shall not be relieved of its indcmnification obligations
under the provisions of this Section 29.5 due to Landlord's  status as either an
"owner" or "operator" under any Environmental I-aws.

29.6 Survival:  Tenant's  obligations and liabilities pursuant to the provisions
of this Section 29 shall survive the  expiration or earlier  termination of this
Lease.  If it is determined by Landlord that the condition of all or any portion
of the Premises, the Building, the Lot and/or the Park is not in compliance with
the  provisions  of this Lease with  respect to Hazardous  Materials,  including
without   limitation  all  Environmental  Laws  at  die  expiration  or  earlier
termination  of this Lease,  then in Landlord's  sole  discretion,  Landlord may
require  Tenant  to hold  over  possession  of the  Premises  until  Tenant  can
surrender  the  Premises  to  Landlord in the  condition  in which the  Premises
existed  as of the  Commencement  Date  and  prior  to the  appearance  of  such
Hazardous  Materials  except for  reasonable  wear and tear,  including  without
limitation,  the  conduct or  performance  of any  closures  as  required by any
Environmental  Laws.  The burden of proof  hereunder  shall be upon Tenant.  For
purposes  hereof,  the term  "reasonable  wear and (car"  shall not  include any
deterioration  in the condition or diminution of the value of any portion of the
Premises, the Building, the Lot and/or the Park in any manner whatsoever related
to directly,  or indirectly,  Hazardous  Materials.  Any such holdover by Tenant
will be with Landlord's  consent,  will not be terminable by Tenant in any event
or circumstance and will otherwise be subject to the provisions of Section 22 of
this Lease.

30.  Financial  Statemen(s:  Tenant,  for the reliance of  Landlord,  any lender
holding or anticipated to acquire a lien upon the Premises,  the Building or the
Park or any portion thereof, or any prospective purchaser of the Building or the
Park or any portion thereof, within ten (10) days after Landlord's request
<PAGE>

therefor,  but not more  often  than once  annually  so long as Tenant is not in
default of this  Ltasc,  shall  deliver to  Landlord  the then  current  audited
financial  statements of Tenant (including  interim periods following the end of
the last fiscal year for which annual statements are available) which statements
shall be prepared or compiled by a certified public accountant and shall present
fairly  the  financial  condition  of Tenant at such dates and the result of its
operations and changes in its financial  positions for the periods ended on such
dates.  If an audited  financial  statement has not been prepared,  Tenant shall
provide  Landlord  with an  unaudited  financial  statement  and/or  such  other
information, the type and form of which are acceptable to Landlord in Landlord's
reasonable discretion, which reflects the financial condition of

Tenant. If Landlord so requests,  Tenant shall deliver to Landlord an opinion of
a certified  public  accountant,  including a balance  sheet and profit and loss
statement  for the most recent  prior year,  all  prepared  in  accordance  with
generally  accepted  accounting  principles  consistently  applied.  Any and all
options granted to Tenant  hereunder  shall be subject to and  conditioned  upon
Landlord's  reasonable  approval of Tenant's financial  condition at the time of
Tenant's exercise of any such option.

31.      General. Provisions:

31.1     Time. Time is of the essence in this Lease and with respect to each and
all of its provisions in which performance is a factor.

31.2     Successors and Assigns. The covenants and conditions herein contained,
subject to the provisions as to assignment,  apply to and bind the heirs,
successors, executors, administrators and assigns of the parties hereto

31.3     Recordation. Tenant shall not record this Lease or a short form
memorandum hereof without the prior written consent of the Landlord.

31.4  Landlord's  Personal  Liability.  The  liability of Landlord  (which,  for
purposes of this Lease,  shall include Landlord and the owner of the Building if
other than  Landlord)  to Tenant for any default by Landlord  under the terms of
this Lease shall be limited to the actual  interest of Landlord  and its present
or future partners or members in the Premises or the Building, and Tenant agrees
to look solely to the Premises for  satisfaction  of any liability and shall not
look to other assets of Landlord nor seek any recourse against the assets of the
individual  partners,  members,  directors,  officers,  shareholders,  agents or
employees of Landlord  (including without  limitation,  any property  management
company  of  Landlord);  it being  intended  that  Landlord  and the  individual
partners, members, directors,  officers,  shareholders,  agents and employees of
Landlord  (including  without  limitation,  any property  management  company of
Landlord)  shall not be  personally  liable  in any  manner  whatsoever  for any
judgment or deficiency. The liability of Landlord under this Lease is limited to
its actual period of ownership of title to the Building,  and Landlord  shall be
automatically  released from further  performance under this Lease upon transfer
of Landlord's interest in the Premises or the Building.

31.5 Separability. Any provisions of this Lcase which shall prove to be invalid,
void  or  illegal  shall  in no way  affect,  impair  or  invalidate  any  other
provisions  hcreof  and such  other  provision  shall  remain in full  force and
effect.

31.6 Choice of Law. This Lease shall be governed by, and construed in accordance
with, the laws of the State of California.

31.7  Attorneys'  Fees. In the event any dispute  between the parties results in
litigation or othcr procccding,  the prevailing party shall be reimbursed by the
party not prevailing for all reasonable costs and expenses,  including,  without
limitation,  reasonable  attorneys'  and experts' fees and costs incurred by the
prevailing party in connection with such litigation or other proceeding, and any
appeal  thereof.  Such costs,  expenses and fees shall be included in and made a
part of the judgment recovered by the prevailing party, if any.

31.8   Entire   Agreement.   This  Lease   supersedes   any  prior   agreements,
representations,   negotiations  or  correspondence  between  the  parties,  and
contains  the entire  agreement  of the  parties on  matters  covered.  No other
agreement,  statement or promise  made by any party,  that is not in writing and
signed by all parties to tWs Lease, shall be binding.

31.9 Warranty of Authority.  On the date that Tenant executes this Lease, Tenant
shall deliver to Landlord an original certificate of status for Tenant issued by
the  California  Secretary  of State or  statement  of  partnership  for  Tenant
recorded in the county in wl-kh the  Premises are located,  as  applicable,  and
such other  documents  as Landlord  may  reasonably  request  with regard to the
lawful  existence  of Tenant.  Each person  executing  this Lease on behalf of a
party  represents  and  warrants  that  (1)  such  person  is duly  and  validly
authorized  to do so on behalf of the entity it purports to so bind,  and (2) if
such party is a  partnership,  corporation  or trustee,  that such  partnership,
corporation or trustee has fall right and

authority to enter into this Lease and perform all of its obligations hereunder.
Tenant  hereby  warrants  that this Lease is valid and  binding  upon Tenant and
enforceable against Tenant in accordance with its terms.

<PAGE>

31.10 Notices. Any and all notices and demands required or permitted to be given
hereunder  to  Landlord  shall be in  writing  and shall be sent:  (a) by United
States mail, certified and postage prepaid; or (b) by personal delivery;  or (c)
by overnight courier,  addressed to Landlord at 101 Lincoln Center Drive, Fourth
Floor,  Foster  City,  California  94404-1167.  Any and all  notices and demands
required or  permitted  to be given  hereunder to Tenant shall be in writing and
shall be sent: (i) by United States mail, certified and postage prepaid; or (ii)
by personal delivery to any employee or agent of Tenant over the age of eighteen
(18)  years of age;  or  (iii)  by  overnight  courier,  all of  which  shall be
addressed to Tenant at the Premises  Notice  and/or demand shall be deemed given
upon the  earlier of actual  receipt or the third day  following  deposit in the
United States mail. Any notice or requirement of service required by any statute
or law now or hereafter  in effect,  including,  but not limited to,  California
Code  of  Civil  Procedure  Sections  1161,  1161.1,  and  1162  (including  any
amendments, supplements or substitutions thereof), is hereby waived by Tenant.

31.11 Joint and Several.  If Tenant  consists of more than one person or entity,
the obligations of all such persons or entities shall be joint and several.

31.12  Covenants and  Conditions.  Each  provision to be performed by Tenant
hereunder  shall be deemed to be both a covenant and a condition.

31.13  Waiver of Jury Trial.  The parties  hereto shall and they hereby do waive
trial by jury in any action, proceeding or counterclaim brought by either of the
parties hereto against the other on any matters  whatsoever arising out of or in
any way related to this Lease, the relationship of Landlord and Tenant,  Tenants
use or occupancy of the Premises,  the Building or the Park, and/or any claim of
injury, loss or damage.

31.14  Counterclaims.  In the  event  Landlord  commences  any  proceedings  for
nonpayment of Rent, Additional Rent, or any other sums or amounts due hereunder,
Tenant shall not interpose any counterclaim of whatever nature or description in
any such  proceedings,  provided,  however,  nothing  contained  herein shall be
deemed or construed  as a waiver of the Tenant's  right to assert such claims in
any separate  action  brought by Tenant or the fight to offset the amount of any
final judgment owed by Landlord to Tenant.

31.15  Underlining.  'Me use of  underlining  within the Lease is for
Landlord's  reference  purposes  only and no other meaning or emphasis is
intended by this use, nor should any be inferred

31.16  Merger.  The  voluntary or other  surrender of this Lease by Tenant,  die
mutual  termination  or  cancellation  hereof  by  Landlord  and  Tenant,  or  a
termination  of  this  Lease  by  Landlord  for a  material  default  by  Tenant
hereunder,  shall not work a merger,  and, at the sole option of  Landlord,  (i)
shall  terminate  all or any  existing  subleases or  subtcnancies,  or (ii) may
operate  as an  assignment  to  Landlord  of any or all  of  such  subleases  or
subtcnancies.  Landlords  election  of either or both of the  foregoing  options
shall be exercised by delivery by Landlord of written  notice  thereof to Tenant
and all known subtenants under any sublease.

32.  Signs:  All signs and graphics of every kind visible in or from public view
or  corridors or the  exterior of the  Premises  shall be subject to  Landlord's
prior written approval and shall be subject to any applicable governmental laws,
ordinances,  and  regulations and in compliance with Landlord's sign criteria as
same may exist  from time to time or as set forth in Exhibit G hereto and made a
part  hereof.  Tenant  shall  remove  all such signs and  graphics  prior to the
termination of this Lease.  Such  installations  and removals shall be made in a
manner as to avoid damage or defacement of the Premises; and Tenant shall repair
any damage or defacement, including without limitation,  discoloration caused by
such  installation or removal.  Landlord shall have the fight, at its option, to
deduct from the Security Deposit such sums as are reasonably necessary to remove
such signs,  including,  but not limited to, the costs and  expenses  associated
with any repairs necessitated by such removal. Notwithstanding the foregoing, in
no event shall any: (a) neon,  flashing or moving  sign(s) or (b) sign(s)  which
shall  interfere with the visibility of any sign,  awning,  canopy,  advertising
matter,  or  decoration  of any kind of any other  business  or  occupant of the
Building or the Park be permitted  hereunder.  Tenant further agrees to maintain
any such sign, awning,  canopy,  advertising  matter,  lettering,  decoration or
other thing as may be approved in good condition and repair at all times.

33. Mortgagee Protection:  Upon any default on the part of Landlord, Tenant will
give written notice by registered or certified mail to any beneficiary of a deed
of trust or  mortgagee  of a mortgage  covering  the  Premises  who has provided
Tenant  with notice of their  interest  together  with an address for  receiving
notice,  and shall offer such beneficiary or mortgagee a reasonable  opportunity
to cure the  default  (which,  in no event shall be less than ninety (90) days),
including time to obtain possession of die Premises by power <PAGE>

of sale or a judicial  foreclosure,  if such should prove  necessary to cffcct a
cure.  If such  default  cannot  be cured  within  such time  period,  then such
additional  time as may be  necessary  will be  given  to  such  beneficiary  or
mortgagee  to effect  s6ch cure so long as such  beneficiary  or  mortgagee  has
commenced  the cure within the original  time period and  thereafter  diligently
pursues  such  cure to  completion,  in which  event  th@is  Lease  shall not be
tenninated while such cure is being diligently pursued.  Tenant agrees that each
lender to whom this Lease has been  assigned  by  Landlord  is an express  third
party beneficiary  hereof Tenant shall not make any prepayment of Rent more than
one (1) month in advance  without the prior written consent of each such lender,
except if Tenant is  required  to make  quarterly  payments  of Rent in  advance
pursuant to the  provisions of Section 8 above.  Tenant waives the collection of
any deposit from such  lender(s) or any purchaser at a foreclosure  sale of such
lender(s)'  deed of trust  unless the  lender(s)  or such  purchaser  shall have
actually  received  and not  refunded  the  deposit.  Tenant  agrees to make all
payments  under this Lease to the lender with the most senior  encumbrance  upon
receiving a direction,  in writing,  to pay said amounts to such lender.  Tenant
shall comply with such written direction to pay- without  determining whether an
event of default exists under such lender's loan to Landlord.

34. Quitclaim:  Upon any termination of this Lease,  Tenant shall, at Landlord's
request,  execute, have acknowledged qnd deliver to Landlord a quitclaim deed of
Tenant's  interest  in and to the  Premises.  If Tenant  fails to so  deliver to
Landlord such a quitclaim  deed,  Tenant hereby agrees that Landlord  shall have
the full  authority  and right to record  such a  quitclaim  deed signed only by
Landlori.  and such quitclaim  deed shall be deemed  conclusive and binding upon
Tenant.

35. Modifications for Lender: If, in connection with obtaining financing for the
Premises or any portion  thereof,  Landlord's  lender shall  request  reasonable
modification(s) to this Lease as a condition to such financing, Tenant shall not
unreasonably  withhold,  delay or  defer  its  consent  thereto,  provided  such
modifications do not materially adversely affect TenanVs rights hereunder or the
use, occupancy or quiet enjoyment of Tenant hereunder

36. Warranties of Tenant: Tenant hereby warrants and represents to Landlord, for
the express  benefit of  Landlord,  that Tenant has  undertaken  a complete  and
independent  evaluation of the risks inherent in the execution of this Lease and
the operation of die Premises for die use permitted hereby, and that, based upon
said  independent  evaluation,  Tenant has  elected to enter into this Lease and
hereby assumes all risks with respect  thereto.  Tenant hereby further  warrants
and  represents  to  Landlord,  for the  express  benefit of  Landlord,  that in
entering  into this  Lease,  Tenant has not  relied  upon any  statement,  fact,
promise or  representation  (whether  express or  implied,  written or oral) not
specifically set forth herein in writing and that any statement,  fact,  promise
or representation (whether express or implied, written or oral) made at any time
to Tenant,  which is not  expressly  incorporated  herein in writing,  is hereby
waived by Tenant.

37.  Comoliance with Americans widi Disabilities Act: Landlord and Tenant hereby
agrCc and  acknowledge  that the Premises,  the Building  and/or the Park may be
subject to the  requirements of the Americans with  Disabilities  Act, a
federal
law codified at 42 U.S.C. 12101 et seq, including,  but not limited to Title III
thereof,  all regulations and guidelines related thereto,  togethcr with any and
all laws, rules,  regulations,  ordinances,  codes and statutes now or hereafter
enacted by local or state agencies having  jurisdiction  thereof,  including all
requirements  of Title  24 of the  State  of  California,  as the same may be in
effect  on the date of this  Lease and may be  hereafter  modified,  amended  or
supplemented  (collectively,  the "ADA"). Tenant shall be solely responsible for
conducting  its own  independent  investigation  of this matter and for ensuring
that the design of all  improvements  or  alterations to be made to the Premises
by, or on behalf of,  Tenant  strictly  comply with a  requirements  of die ADA.
Subject to  reimbursement  pursuant  to Section 6 of the Lease,  if any  barrier
removal work or other work is required to the Building,  the Common Areas or the
Park under the ADA,  then such work  shall be the  responsibility  of  Landlord;
provided,  if such work is required under the ADA as a result of Tenant's use of
the Premises or any work or  alteration  made to the Premises by or on behalf of
Tenant,  then such work  shall be  performed  by  Landlord  at the sole cost and
expense of Tenant.  Except as otherwise  expressly  provided in this  provision,
Tenant  shall  be  responsible  at its sole  cost  and  expense  for  fully  and
faithfully  complying with all  applicable  requirements  of the ADA,  including
without  limitation,  not  discriminating  against any  disabled  persons in the
operation  of  Tenant's  business  in or about the  Premises,  and  offering  or
otherwise  providing  auxiliary aids and services as, and when,  required by the
ADA.  Within ten (10) days after  receipt,  Landlord and Tenant shall advise the
other  party in writing,  and provide the other with copies of (as  applicable),
any  notices  alleging  violation  of the ADA  relating  to any  portion  of the
Premises or the Building;  any claims made or  threatened  in writing  regarding
noncompliance  with the ADA and  relating to any portion of the  Premises or the
Building; or any governmental or regulatory actions or investigations instituted
or threatened  regarding  noncompliance with the ADA and relating to any portion
of the  Premises or the  Building.  Tenant  shall and hereby  agrees to protect,
defend (with  counsel  acceptable  to Landlord)  and hold Landlord and the other
Indeninitees  harmless  and  indemnify  the  Indemnitces  from and  against  all
liabilities, damages, claims, <PAGE>

losses,  penalties,   judgments,  charges  and  expenses  (including  reasonable
attorneys'  fees,  costs of court and expenses  necessary in the  prosecution or
defense of any litigation  including the enforcement of this provision)  arising
from or in any way  related  to,  directly  or  indirectly,  Tenant's or Tenants
Representatives'  violation or alleged  violation of the ADA. Tenant agrees that
the  obligations  of Tenant  herein  shall  survive  the  expiration  or earlier
termination of this Lease.

38. Brokerage  Commission:  Landlord and Tenant each represents and wan-ants for
the  benefit  of the  other  that it has had no  dealings  with any real  estate
broker,  agent or finder in connection  with the Premises and/or the negotiation
of this Lease,  except for the  Broker(s)  (as set forth on Page 1), and that it
knows  of no other  real  estate  broker,  agent  or  finder  who is or might be
entitled to a real estate  brokerage  commission  or finder's fee in  connection
with this Lease or  otherwise  based upon  contacts  between  the  claimant  and
Tenant.  Each party shall indemnify and hold harmless the other from and against
any and a  liabilities  or  expenses  arising  out of  claims  made for a fee or
commission by any real estate  broker,  agent or finder in  connection  with the
Premises and Us Lease other than Broker(s),  if any,  resulting from the actions
of the indemnifying party. Any real estate brokerage  commission or finder's fee
payable to the Broker(s) in connection with this Lease shall only be payable and
applicable  to the extent of the initial  Term of the Lease and to the extent of
the Premises as same exist as of the date on which Tenant  executes  this Lease.
Unless expressly agreed to in writing by Landlord and Broker(s),  no real estate
brokerage  commission or finder's fee shall be owed to, or otherwise payable to,
the Broker(s)  for any renewals or other  extensions of the initial Term of this
Lease or for any  additional  space  leased by Tenant other than the Premises as
same exists as of the date on which Tenant  executes this Lease.  Tenant further
represents and warrants to Landlord that Tenant will not receive (i) any portion
of any  brokerage  commission  or  finder's  fee  payable  to the  Broker(s)  in
connection  with this Lease or (ii) any other form of  compensation or incentive
from the Broker(s) with respect to this Lease.

39. Quiet Enjoyment: Landlord covenants with Tenant, upon the paying of Rent and
observing and keeping the covenants,  agreements and conditions of this Lease on
its part to be kept,  and during the  periods  that Tenant is not  otherwise  in
default of any of the terms or  provisions  of this  Lease,  and  subject to the
rights of any of Landlord's lenders, (i) that Tenant shall and may peaceably and
quietly hold, occupy and enjoy the Premises and the Common Areas during die Term
of this  Lease,  and (ii)  neither  Landlord,  nor any  successor  or  assign of
Landlord,  shall disturb Tenant's occupancy or enjoyment of die Premises and the
Common Areas.

40.   Landlord's   Ability  to   Perform   Tenant's   Unperformed   Obligations:
Notwithstanding  anything to die  contrary  contained  in this Lease,  if Tenant
shall fail to perform any of the terms,  provisions,  covenants or conditions to
be performed or complied  with by Tenant  pursuant to this Lease,  and/or if the
failure of Tenant  relates to a matter  which in Landlords  judgment  reasonably
exercised is of an emergency  nature and such failure shall remain uncured for a
period  of  time  commensurate  with  such  emergency,  then  Landlord  may,  at
Landlord's option without any obligation to do so, and in its sole discretion as
to the  necessity  therefor,  perform  any such term,  provision,  covenant,  or
condition, or make any such payment and Landlord by reason of so doing shall not
be liable or responsible  for any loss or damage thereby  sustained by Tenant or
anyone holding under or through Tenant.  If Landlord so performs any of Tenant's
obligations  hereunder,  the full amount of the cost and expense entailed or the
payment  so made or the amount of the loss so  sustained  shall  immediately  be
owing by Tenant to  Landlord,  and Tenant shall  promptly  pay to Landlord  upon
demand,  as Additional  Rent, the full amount thereof with interest thereon from
the date of payment at the greater of (i) ten percent  (10%) per annum,  or (ii)
the highest rate permitted by applicable law and Enforcement Expenses.

<PAGE>

IN WITNESS  WHEREOF,  this Lease is cxecuted by the parties as of the Lease Date
referenced  on Page I of this  Ixase.  LANDLORD  RIVERSIDE  BUSINESS  CENTER,  a
California Limited Partnership By:

LINCOLN PROPERTY COMPANY NO. 1239 Limited Partnership, a California Partnership
By:
LEGACY PARTNERS COMMERCIAL, INC., a Texas corporation as Agent for Riverside
Business Center, a California Limited Partnership.
By:
TENANT:

Compaitive Communication, Inc.
a California Corporation
NOTE IfTenan(Is a CORPORATION, lite authorized officers must sign on beho@rqfthe
corporation and indicate the capacity in which

<PAGE>

image

This  exhibit,
entitled

"Premises",  is and shall  constitute  EXHIBIT A to that certain Lease Agreement
dated July 21, 1999 (the "Lease:),  by and between  RIVERSIDE  BUSMSS CENTER,  a
California  Limited  Partnership  ("Landlord")  and Competitive  Communications,
Inc., a California  Corporation  ("Tenant") for the leasing of certain  premises
located in the  Riverside  Business  Center at Building  4, 3751  Merced  Drive,
Suites A, B & C Riverside, CaUbrnia (the "Premises").

The Premises  consist of the rentable  square footage of space  specified in the
Basic  Lease  Information  and has the  address  specified  in the  Basic  Lease
Information.  The  Premises  are a part of and  are  contained  in the  Building
specified in the Basic Lease  Inforrmation.  Ile cross-hatched  area depicts the
Premises within the building:

<PAGE>

                             Exhibit C to Lease Agreement

                                  Rules & Regulations

This exhibit, entitled "Rules & Regulations",  is and shall constitute EXHIBIT C
to that  certain  Lease  Agreement  dated July 21,  1999 (the  "Lease"),  by and
between RIVERSIDE BUSINESS CENTER, a California Limited Partnership ("Landlord")
and Competitive Communication, Inc., a California Corporation (*Tenant") for the
leasing of certain premises located in the Riverside Business Center at Building
4. 3751 Merced Drive,  Suites A, B & Cc Riverside,  California (the "Premises*).
The terms,  conditions and provisions of this EXHIBIT C are hereby  incorporated
into and arc made a part of (lie Lease.  Any capitalized  terms  used-herein and
not otherwise  defined  herein shall have the meaning  ascribed to such terms as
set forth in [lie Lease sic:

1.      No  advertisement,  picture or sign of any sort shall be displayed on or
        outside the Premises or the Building  without the prior written  consent
        of Landlord. Landlord shall have the right to remove any such unapproved
        item without notice and at Tenant's expense.

2.      Tenant shall not regularly park motor vehicles in designated parking
        areas after the  conclusion of normal daily  business activity.

3.      Tenant shall not use any method of heating or air conditioning other
        than that supplied by Landlord without the prior written consent of
        Landlord.

4.      All window  coverings  installed by Tenant- and visible from the outside
        of the Building  require the prior written approval of Landlord.

5.      Tenant  shall  not use,  keep or  permit  to be used or kept any foul or
        noxious gas or substance or any flammable or combustible materials on or
        around the Premises, the Building or the Park.

6.      Tenant  shall not alter any lock or install any new locks or bolts on
        any door at the  Premises  without  the prior  consent of Landlord.

7.      Tenant agrees not to make any duplicate keys without the prior consent
        or Landlord.

8.      Tenant  shall park motor  vehicles  in those  general  parking  areas as
        designated by Landlord  except for loading and  unloading.  During those
        periods  of  loading  and  unloading,   Tenant  shall  not  unreasonably
        interfere  with traffic  flow within the Park and loading and  unloading
        areas of other tenants.

9.      Tenant shall not disturb, solicit or canvas any occupant of the Building
        or Park and shall cooperate to prevent same.

10.     No person shall go on the roof without Landlord's permission.

11.     Business  machines and  mechanical  equipment  belonging to Tenant which
        cause noise or vibration that may be transmitted to the structure of the
        Building,  to such a degree as to be  objectionable to Landlord or other
        Tenants,  shall be placed and maintained by Tenant, at Tenant's expense,
        on vibration  eliminators or other devices sufficient to eliminate noise
        or vibration.

12.     All goods,  including  material  used to store  goods,  delivered to the
        Premises of Tenant  shall be  immediately  moved into (lie  Premises and
        shall not be left in parking or receiving areas overnight.

13.     Tractor  trailers  which must be unhooked  or parked  with dolly  wheels
        beyond the concrete  loading  areas must use steel plates or wood blocks
        under the dolly wheels to prevent damage to the asphalt paving surfaces.
        No parking or storing of such  trailers  will be  permitted  in the auto
        parking areas of the Park or on streets adjacent thereto.

14.     Forklifts  which  operate on asphalt  paving  areas shall not have solid
        rubber tires and shall only use tires that do not damage the asphalt.

15.     Tenant is  responsible  for the  storage  and  removal  of all trash and
        refuse.  All such  trash  and  refuse  shall be  contained  in  suitable
        receptacles  stored behind screened  enclosures at locations approved by
        Landlord.

16.     Tenant shall not store or permit the storage or  placement of goods,  or
        merchandise  or  pallets  or  equipment  of any  sort in or  around  the
        Premises,  the  Building,  the  Park or any of the  Common  Areas of the
        foregoing.  No displays or sales of merchandise  shall be allowed in the
        parking lots or other Common Areas.

17.     Tenant shall not permit any animals,  including, but not limited to, any
        household  pets,  to be  brought or kept in or about the  Premises,  the
        Building, the Park or any of the Common Areas of the foregoing.

18.     Tenant  shall not permit any motor  vehicles to be washed on any portion
        of the  Premises or in the Common  Areas of the Park,  nor shall  Tenant
        permit  mechanical work or maintenance of motor vehicles to be performed
        on any portion of the Premises or in the Common Areas of the Park.

<PAGE>

                                          EXHIBIT D

                  COVENANT AND AGREEMENT AND DECLARATION OF RESTRICTIONS

         This covenant and Agreement and  Declaration of Restriction is made and
entered into this 17th day of October,  1986, by RIVERSIDE  BUSINESS  CENTER,  a
California Limited  Partnership,  the owner of record of (he following described
real property situated in the City of Riverside,  County of Riverside,  State of
California:

         Parcels  1, 2 and 3 of Parcel Map 21191 as shown by map on file in Book
134 of Parcel Maps at pages 33 through 34 thereof  Records of Riverside  County,
California,

Which property is referred to herein as Parcels 1, 2 or 3 or collectively as the
property.

WHEREAS the  undersigned  desires to divide the property into three parcels,  as
described above, pursuant to tentative Parcel Map 2119 1 -, and

WHEREAS the undersigned desires to establish a common driveway to serve Parcels
1. 2 and 3; and

WHEREAS the undersigned  desires to restrict the property with the nonexclusive,
reciprocal easements and the obligations contained herein;

NOW,  THEREFORE,  the undersigned  hereby  covenants and agrees with the City of
Riverside as follows:

1.              A  nonexclusive,  reciprocal  casement for ingress and egress is
                hereby established over and across the northeasterly 15 feet and
                the southeasterly 13 1/2 feet of Parcel I for he use and benefit
                of Parcels 2 and 3.

2.              A  nonexclusive,  reciprocal  casement for ingress and egress is
                hereby established over and across the southwesterly 15 feet and
                the southeasterly 13 1/2 feet of Parcel 2 for he use and benefit
                it of Parcels I and 3.

3.              A  nonexclusive,  reciprocal  easement for ingress and egress is
                hereby established over and across the northwesterly 13 1/2 feet
                of Parcel 3 for the use and benefit of Parcels and 2.

4.              The casement areas described above are planned to be developed
                as a common driveway and shall be kept in a free and open
                condition at all times to permit unimpeded access to parcels 1,2
                and 3 and Magnolia Avenue, Pierce Street and Merced Drive. No
                structure shall be placed or constructed in the easement areas.
                Each casement area shall be maintained in accordance with
                the standards of the City of Riverside for private driveways and
                in a good, usable and safe condition at all times for the fee
                owner of such casement area.

5.              In the  event  any of the  property  is  sold or  leased  or the
                ownership is otherwise changed, as the parcels arc conveyed, the
                grantor  shall  grant  and/or  reserve,   as  appropriate,   the
                above-described non-exclusive,  reciprocal casements for ingress
                and  egress.  This  casement  shall  include  all rights  deemed
                reasonable and necessary for the  construction,  maintenance and
                use of common driveway facilities.

6.              The terms of this  Covenant and  Agreement  and  Declaration  of
                Restrictions  may be  enforced  by the  City of  Riverside,  its
                successors  or assigns,  or by any owner or tenant of any of the
                property. Should the City or any owner or tenant bring an action
                to enforce any of the terms of this  reasonable  attorneys' fee,
                expert witnesses' fees and reasonable costs of unit.

7.              This  Covenant and  Agreement and  declaration  of  Restrictions
                shall  run  with  (he  land  and  shall  be  binding   upon  the
                undersigned,  its  successor  and assigns and shall  continue in
                effect  until such time as it is released by the City Council of
                the City of Riverside

<PAGE>

                                    EXHIBIT E

                           CHANGE OF COMMENCEMENT DATE

                                     EXAMPLE

This First  Amendment to Lease  Agreement (the  "Amendment") is made and entered
into         as         of________________          1998,         by         and
between________________________("Landlord"),        and_________________________
("Tenant"), with reference to the following facts:

                                    RECITALS

A.  Landlord  and  Tenant  have  entered  into  that  certain  Lease   Agreement
dated_________________________   (the  "Lease"),  for  the  leasing  of  certain
premises containing approximately _______________________rentable square feet of
space located at  __________________________________  Riverside, California (the
"Premises") as such Premises are more fully described in the Lease.

B.    Landlord and Tenant wish to amend the Commencement Date of the Lease.

NOW,  THEREFORE,  in  consideration  of the  foregoing  and for  other  good and
valuable   consideration,   the  receipt  and   adequacy  of  which  are  hereby
acknowledged, Landlord and Tenant hereby agree as follows:

1.       Recitals'. Landlord and Tenant agree that the above recitals are true
         and correct.

2.       The Commencement Date of the Lease shall be

3.       The last day of the Term of the Lease (the "Expiration Date") shall be

4.       The dates on which the Base Rent will be adjusted are:

--------------------------------------------------------------------------------
for the period                                   the monthly Base Rent shall be
--------------------------------------------------------------------------------
for the period                                   the monthly Base Rent shall be.
--------------------------------------------------------------------------------
for the period                                   the monthly Base Rent shall be
--------------------------------------------------------------------------------

5.       Effect of Amendment:  Except as modified  herein,  the terms and
conditions of the Lease shall remain  unmodified and continue in full force and
effect.  In the event of any conflict  between the terms and  conditions of the
Lease and this  Amendment,  the terms and conditions of this Amendment shall
prevail.

6.       Definitions:  Unless otherwise  defined in this Amendment,  all terms
not defined in this Amendment shall have the meaning set forth in the Lease.

7.  Authority:  Subject to the provisions of the Lease,  this Amendment shall be
binding upon and inure to the benefit of the parties  hereto,  their  respective
heirs, legal representatives,  successors and assigns. Each party hereto and the
persons  signing  below  warrant that the person  signing  below on such party's
behalf  is  authorized  to do so and to bind  such  party  to the  terms of this
Amendment.

8.       The terms and provisions of the Lease are hereby incorporated in this
Amendment.

IN WITNESS WHEREOF,  the parties have executed this Amendment as of the date and
year first above written.

<PAGE>

                                    EXHIBIT F

            TENANT'S INITIAL HAZARDOUS MATERIALS DISCLOSURE CERTIFICATE

Your  cooperation  in this matter is  appreciated.  Initially,  the  information
provided by you in this Hazardous Materials Disclosure  Certificate is necessary
for the Landlord  (identified  below) to evaluate and finalize a lease agreement
with you as Tenant.  After a lease  agreement  is signed by you and the Landlord
(the "Lease Agreement"), on an annual basis in accordance with the provisions of
Section 29 of the signed  Lease  Agreement,  you are to provide an update to the
information  initially  provided  by you in this  certificate.  The  information
contained in the initial  Hazardous  Materials  Disclosure  Certificate and each
annual   certificate   provided  by  you   thereafter   will  be  maintained  in
confidentiality by Landlord subject to release and disclosure as required by (i)
any lenders and owners and their respective environmental consultants,  (ii) any
prospective  purchaser(s)  of all or any  portion of the  property  on which the
Premises are located,  (iii) Landlord to defend itself or its lenders,  partners
or  representatives  against  any claim or  demand,  and (iv) any  laws,  rules,
regulations,  orders,  decrees,  or ordinances,  including,  without limitation,
court orders or subpoenas.  Any and all capitalized terms used herein, which are
not otherwise defined herein,  shall have the same meaning ascribed to such term
in the signed Lease Agreement.  Any questions  regarding this certificate should
be directed to, and when completed, the certificate should be delivered to:

Landlord:             RIVERSIDE BUSINESS CENTER,
                      A California Limited Partnership
                      c/o LEGACY PARTNERS COMMERCIAL, INC.
                      P.O. Box 19693, 30 Executive Park, Suite 100
                      Irvine, California 92623
                      Attn: - Terry Thompson
                      Phone: (714) 261-9871

Name of Tenant:       Competitive communications, Inc.
                      a California Corporation

Mailing Address:      3751 Merced Drive, Suites A, B & C (Bldg. 4)
                      Riverside, California 92503

Contact Person,  Title and Telephone  Number(s):  Dave,  Klein (909) 687-6100
Contact Person for Hazardous Waste Materials  Management and Manifests and
Telephone Number(s): Same as above

Address of Premises: Same as above.

Length of initial Term: 38 Months

1.      GENERAL INFORMATION:

Describe  the  initial  proposed  operations  to take place in, on, or about die
Premises,   including,   without   limitation,   principal  products  processed,
manufactured  or assembled  services and  activities to be provided or otherwise
conducted.  Existing  Tenants should  describe any proposed  changes to on-going
operations TELEPHONE & CABLE TV SERVICE PROVIDER ADMINISTRATIVE OFFICES.

2.       USE, STORAGE AND DISPOSAL OF HAZARDOUS MATERIALS

2.1 Will any Hazardous Materials be used,  generated,  stored or disposed of in,
on or about  the  Premises?  Existing  Tenants  should  describe  any  Hazardous
Materials which continue to be used, generated,  stored or disposed of in, on or
about the Premises.

--------------------------------------------------------------------------------
Wastes                                     Yes                 No    X
--------------------------------------------------------------------------------
Chemical Products                          Yes                 No    X
Other                                      Yes                 No    X

         If Yes is marked, please explain: - - -

2.2      If Yes is marked in Section 2.1, attach a list of any Hazardous
Materials to be used,

<PAGE>

generated,  stored or disposed of in, on or about the  Premises,  including  the
applicable  hazard  class and an estimate of the  quantifies  of such  Hazardous
Materials  at  any  given  time;  estimated  annual  throughput;   the  proposed
location(s)  and  method of  storage  (excluding  nominal  amounts  of  ordinary
household  cleaners  and  janitorial  supplies  which are not  regulated  by any
Environmental  Laws);  and the proposed  location(s)  and method of disposal for
each Hazardous Material,  including,  the estimated frequency,  and the proposed
contractors  or  subcontractors.  Existing  Tenants should attach a list setting
forth the  information  requested above and such list should include actual data
from  on-going  operations  and the  identification  of any  variations  in such
information from the prior years certificate.

3.       STORAGE TANKS AND SUMPS

3.1 Is any above or below ground  storage of  gasoline,  diesel,  petroleum,  or
other  Hazardous  Materials  in tanks  or sumps  proposed  in,  on or about  the
Premises?   Existing  Tenants  should  describe  any  such  actual  or  proposed
activities.

-------------------------------------------------------------------------------
Yes                                No   X
--------------------------------------------------------------------------------

If yes, please explain: -----

4.       WASTE MANAGEMENT

4.1      Has your company been issued an EPA Hazardous Waste Generator
I.D. Number?  Existing Tenants should describe any additional identification
numbers issued since the previous certificate.

--------------------------------------------------------------------------------
Yes                                 No    X
-------------------------------------------------------------------------------

4.2 Has your company filed a biennial or quarterly  reports as a hazardous waste
generator? Existing Tenants should describe any new reports filed.

--------------------------------------------------------------------------------
Yes                                 No    X
--------------------------------------------------------------------------------

If yes, attach a copy of the most recent report filed.

5.       WASTEWATER TREATMENT AND DISCHARGE

5.1      Will your company discharge wastewater or other wastes to:

-------------------------------------------------------------------------------
storm drain? ___________                 _______X______sewer?
--------------------------------------------------------------------------------

----------------------------------------------------------------------------
surface water?___________                _______________no wastewater or other
                                         wastes discharged.
----------------------------------------------------------------------------

Existing Tenants should indicate any actual discharges. If so, describe the
nature of any proposed or actual discharge(s)
        TOILET ONLY - HUMAN WASTE          .

5.2      Will any such wastewater or waste be treated before discharge?

-------------------------------------------------------------------------------
Yes                                 No    X
-------------------------------------------------------------------------------

If yes,  describe  the type of  treatment  proposed  to be  conducted.  Existing
Tenants should describe the actual treatment conducted.

6.       AIR DISCHARGES

6.1 Do you plan for any air  filtration  systems  or  stacks  to be used in your
company's  operations  in, on or about the Premises that will discharge into the
air; and will such air emissions be monitored?  Existing Tenants should indicate
whether or not there are any such air filtration systems or stacks in use in, on
or  about  the  Premises  which  discharge  into  the air and  whether  such air
emissions are being monitored.

-------------------------------------------------------------------------------
Yes                                 No    X
-------------------------------------------------------------------------------

If yes, please describe:

<PAGE>

6.2 Do you propose to operate any of the  following  types of  equipment  or any
other  equipment  requiring an air emissions  permit?  Existing  Tenants  should
specify any such equipment being operated in, on or about the Premises.

--------------------------------------------------------------------------
       Spray booth(s)                                          Incinerator(s)
-------------------------------------------------------------------------------
       Dip tank(s)                                    Other (Please describe)
-------------------------------------------------------------------------------
       Drying oven(s)                      No Equipment Requiring Air Permits
-------------------------------------------------------------------------------

If yes, please describe:

7.       HAZARDOUS MATERIALS DISCLOSURES

7.1 Has your  company  prepared  or will it be  required  to prepare a Hazardous
Materials  management  plan  ("Management  Plan") pursuant to Fire Department or
other governmental or regulatory agencies' requirements? Existing Tenants should
indicate whether or not a Management Plan is required and has been prepared.

----------------------------------------------------------------------------
Yes                                No   X
----------------------------------------------------------------------------

If yes, attach a copy of the Management  Plan.  Existing Tenants should attach a
copy of any required updates to the Management Plan.

7.2 Are any of the Hazardous Materials, and in particular chemicals, proposed to
be used in  your  operations  in,  on or  about  the  Premises  regulated  under
Proposition  65? Existing  Tenants should indicate  whether or not there are any
new Hazardous Materials being so used which are regulated under Proposition 65.

--------------------------------------------------------------------------------
Yes 0                              No    X
--------------------------------------------------------------------------------

If yes, please explain:

8.       ENFORCEMENT ACTIONS AND COMPLAINTS

8.1 With respect to Hazardous  Materials or Environmental Laws, has your company
ever been subject to any agency enforcement actions,  administrative  orders, or
consent decrees or has your company received requests for information, notice or
demand  letters,  or any other  inquiries  regarding  its  operations?  Existing
Tenants should indicate whether or not any such actions,  orders or decrees have
been,  or are in the process of being,  undertaken  or if any such requests have
been received.

------------------------------------------------------------------------------
Yes     X                          No
------------------------------------------------------------------------------

If yes,  describe the actions,  orders or decrees and any continuing  compliance
obligations  imposed as a result of these  actions,  orders or decrees  and also
describe  any  requests,  notices  or  demands,  and  attach  a copy of all such
documents.  Existing  Tenants  should  describe  and  attach  a copy  of any new
actions, orders, decrees,  requests, notices or demands not already delivered to
Landlord pursuant to the provisions of Section 29 of the signed Lease Agreement.
DEPARTMENT OF HEALTH SERVICES OCCUPATIONAL HEALTH GRANISH,  LETTER DATED 6-27-9,
WAIVER  GRANTED UNDER  OCCUPATIONAL  LEAD  POISONING  FEE FOR 1997.  (PREVIOUSLY
PROVIDED.) WAIVER GRANTED IF NO CHANGES .

8.2 Have there ever been,  or are there now pending,  any lawsuits  against your
company regarding any environmental or health and safety concerns?

--------------------------------------------------------------------------------
Yes                                No     X
--------------------------------------------------------------------------------

If yes, describe any such lawsuits and attach copies of the complaint(s),  cross
complaint(s),  pleadings and all other documents related thereto as requested by
Landlord.  Existing  Tenants  should  describe  and  attach  a copy  of any  new
complaint(s),  cross  complaint(s),  pleadings and other  related  documents not
already  delivered to Landlord  pursuant to the  provisions of Section 29 of the
signed Lease Agreement.

<PAGE>

8.3 Have there been any problems or complaints from adjacent Tenants,  owners or
other neighbors at your company's  current facility with regard to environmental
or health and safety  concerns?  Existing Tenants should indicate whether or not
there have been any such problems or complaints from adjacent Tenants, owners or
other neighbors at, about or near the Premises.

--------------------------------------------------------------------------------
Yes                                 No    X
--------------------------------------------------------------------------------

If yes, please  describe.  Existing Tenants should describe any such problems or
complaints not already  disclosed to Landlord under the provisions of the signed
Lease Agreement.

9.       PERMITS AND LICENSES

9.1      Attach copies of all Hazardous Materials permits and licenses including
a Transporter

Permit number issued to your company with respect to its proposed operations in,
on  or  about  the  Premises,  including,  without  limitation,  any  wastewater
discharge permits, air emissions permits, and use permits or approvals. Existing
Tenants  should  attach  copies of any new permits  and  licenses as well as any
renewals of permits or licenses previously issued.

The undersigned hereby acknowledges and agrees that (A) this Hazardous Materials
Disclosure  Certificate is being  delivered in connection  with, and as required
by,  Landlord in connection  with the  evaluation  and  finalization  of a Lease
Agreement and will be attached  thereto as an exhibit;  (B) that this  Hazardous
Materials  Disclosure  Certificate is being delivered in accordance with, and as
required by, the provisions of Section 29 of the Lease  Agreement;  and (C) that
Tenant shall have and retain full and complete responsibility and liability with
respect to any of the Hazardous  Materials  disclosed in the HazMat  Certificate
notwithstanding Landlord's/Tenant's receipt and/or approval of such certificate.
Tenant further agrees that none of the following  described acts or events shall
be construed or otherwise  interpreted  as either (a) excusing,  diminishing  or
otherwise  limiting Tenant from the requirement to fully and faithfully  perform
its obligations under the Lease with respect to Hazardous Materials,  including,
without limitation,  Tenant's  indemnification of the Indemnities and compliance
with  all  Environmental  Laws,  or (b)  imposing  upon  Landlord,  directly  or
indirectly,  any duty or liability with respect to any such Hazardous Materials,
including,  without limitation, any duty on Landlord to investigate or otherwise
verify the accuracy of the  representations  and  statements  made therein or to
ensure  that  Tenant  is in  compliance  with all  Environmental  Laws;  (i) the
delivery of such  certificate to Landlord and/or  Landlord's  acceptance of such
certificate,  (ii)  Landlords  review and  approval of such  certificate,  (iii)
Landlord's  failure to obtain such  certificate from Tenant at any time, or (iv)
Landlord's  actual or  constructive  knowledge  of the types and  quantities  of
Hazardous Materials being used, stored, generated, disposed of or transported on
or about the Premises by Tenant or Tenants Representatives.  Notwithstanding the
foregoing  or  anything  to  the  contrary  contained  herein,  the  undersigned
acknowledges   and  agrees  that   Landlord  and  its   partners,   lenders  and
representatives  may,  and  will,  rely  upon the  statements,  representations,
warranties,  and  certifications  made  herein and the  truthfulness  thereof in
entering into the Lease  Agreement and the  continuance  thereof  throughout the
term, and any renewals thereof, of the Lease Agreement.

I, Dave Kilne , acting with full authority to bind the (proposed)  tenant and on
behalf  of the  (proposed)  Tenant,  certify,  represent  and  warrant  that the
information contained in this certificate is true and correct.

Tenant:        Competitive Communication, Inc.,
               a California Corporation
By:
               Dave Kiln
Date:                    7-27-99

<PAGE>

                    ADDENDUM I to Lease Agreement
                     Additional Lease Provisions

This Addendum I is  incorporated  as part of that certain Lease  Agreement dated
July 21, 1999 (the "Lease"), by and between Competitive  Communication,  Inc., a
California  Corporation  ("Tenant") and RIVERSIDE  BUSINESS CENTER, a California
Limited  Partnership  (*Landlord") for leasing of those premises located at 3751
Merced  Drive,  Suites  A, B & C,  Riverside,  CA  92503  as  more  particularly
described in Exhibit to the Lease (the  "Premises*).  Any capitalized  term used
herein and not otherwise herein shall have the meaning ascribed to such terms as
set forth in the Lease.

ADDITIONAL  RENT:  Notwithstanding  Sections 6 and 7 of the Lease,  Landlord and
Tenant hereby agree that Tenant shall not be required to pay the Additional Rent
as such term is defined in  Sections 6 and 7 of the Lease,  but  rather,  Tenant
shall pay to Landlord  throughout  the Term of the Lease a fixed  monthly sum as
set forth below as payment for Operating  Expenses,  Tax  Expenses,  Common Area
Utility  costs,  Utility  Expenses  and  Administrative  Expenses,  all of which
comprise Additional Rent.

PERIOD                                                 Monthly Additional Rent
November 15, 1999 - September 14, 2000                 $160.60 ($0.05 PSF/Month)
September 15, 2000 - September 14, 2001                $192.72 ($0.06 PSF/Month)
September 15, 2001 - November 14, 2002                 $224.84 ($0.07 PSF/Month)

Tenant  agrees  to pay  Landlord  the  Additional  Rent in  accordance  with the
schedule  set forth above on the first (1st') day of each month  throughout  the
Term of the Lease. The Additional Rent shall be subject to Late Charges pursuant
to Section 8 of the Lease.

TENANT  IMPROVEMENTS:  Tenant  shall  assume the Premises in its present "As Is"
condition except that Landlord shall install  Landlord's  building standard mini
blinds on the storefront windows and doors.

<PAGE>

                                EXHIBIT G

                        RIVERSIDE BUSINESS CENTER
                              SIGN CRITERIA
                       MULTI-TENANT AND INDUSTRIAL SUITES

All  Tenants  are  required to install  signage at the  Tenant's  expense and in
accordance with the sign criteria.

All signs shall be approved by the  Landlord  and  property  permitted  by local
governing authorities prior to installation.

1.      TYPE

A.      Multi-Tenant Buildings 1-10, 12 and 13 - Tenants leasing less than 3,000
        square  feet may have a  fiberglass  mounted  wall  sign  with a maximum
        1-112" thick x 16" high x 5' long sign dimension,  Tenants leasing 3,000
        square feet or greater may have the aforementioned  sign or individually
        cut foam  letters  which are 2" thick and 24' high,  with a maximum sign
        width which is equal tono more than 75% of lineal leased frontage.

B.      Industrial  Buildings  14-19 -  Maximum  width  shall be equal to no
        more  than 75% of 11 neal  leased  frontage,  24"  maximum
        channel-lite letters.

II.     DESIGN

A.      Channel Letter: 8" (maximum) thick internally  illuminated channel
        letters,  with 60 mi. amp neon tubing,  shall be composed of red facts
        (211-1 Acrylite Red, same as 2283 Red).

B.      Foam Letter:  2" thick  non-illuminated  foam letters composed of
        *Profound Blue" #260 (Ameritone) faces and "Badger Gray" #298
        returns for Buildings 1-10, 12 and 13 and 14-19 with over 3,000 square
        feet of Tenant lease space.

C.      Wall Mounted Fiberglass Plaques:  Non-illuminated  wall mounted
        fiberglass  identifications sign shall be composed of *Profound
        Blue' #260  background  and white copy  #AGB-225D  for  Buildings
        1- 10, 12 and 13 less than 3,000 square feet of Tenant lease
        space.

Tenants with two (2) frontage on a public  street,  parking lot or mall shall be
allowed two (2) wall signs.

Ill.    GENERAL SPECIFICATIONS

A.             No animated, flashing or audible signs will be permitted.
B.             No exposed lamps or tubing will be permitted.
C.             No exposed crossovers, raceways or conduit will be permitted.
D.             Painted lettering will not be permitted.
E.             Each Tenant shall be permitted to place upon each entrance of its
               demised premises not more thin 144 square inches of vinyl,  white
               lettering not to exceed two (2) inches in height indicating hours
               of business,  emergency telephone numbers, approved credit cards,
               etc.

F.             Special  event or sales  advertising  may be  placed in or on the
               interior  windows  for  a  maximum  of  30  days,  otherwise,  no
               advertising place cards, flags, balloons, banners, etc., shall be
               affixed or maintained upon either the interior or exterior of the
               glass panes and supports of the show  windows and doors,  or upon
               the exterior wall of the buildings.

G.             Each Tenant who has a non-customer door for receiving merchandise
               may have uniformly applied on said door in location,  as directed
               by Landlord,  in 2" high block  letters,  the  Tenant's  name and
               address. Color letter shall be "Profound Blue* #260.

H.             At the termination of Tenant's Lease, Tenant shall be required to
               remove his signs and patch the area to match the surrounding
               area.

<PAGE>Exhibit # 10.16

                        CLEC License approval Letter - MS

<PAGE>

              BEFORE THE PUBLIC SERVICE COMMISSION OF MISSISSIPPI
DOCKET NO. 97-AD-770
                           IN RE:   APPLICATION OF BELLSOUTH TELECOMUNICATIONS,
                           INC. AND COMPETITIVE COMMUNICATIONS, INC. FOR
                           APPROVAL OF AN INTERCONNECTION AGREEMENT UNDER
                           THE TELECOMMUNICATIONS ACT OF 1996

                                      ORDER

         This  matter  is  before  the  Mississippi  Public  Service  Commission
("Commission")   upon  the  request  of   Bellsouth   Telecommunications,   Inc.
("BellSouth")  and  Competitive  Communications,  Inc.  ("CCI") for  approval of
Amendment to  Interconnection  Agreement Between  BellSouth  Telecommunications,
Inc. and Competitive Communications,  Inc. dated October 1, 1996 pursuant to the
provisions  of Sections 251 and 252 of the  Telecommunications  Act of 1996 (the
"Amendment").  The original interconnection  agreement between the parties dated
October1, 1996 (the "Intercommunication Agreement") has been previously approved
in this docket by the Commission on January 22, 1998.

         The  Commission,  being  fully  apprised  in the  premises  and  having
considered the documents before it, and upon  recommendation  of the Mississippi
Public  Utilities  Staff  ("MPUS"),  finds that it is appropriate to approve the
Amendment for the reasons set forth below:

<PAGE>

                                           I.

         On August 31,1999,  BellSouth and CCI filed with this Commission a copy
of their Amendment  which had been negotiated  between them pursuant to Sections
251 and 252 of the Act, together with a request that the Commission approve said
Amendment pursuant to Section 252(e) of the Act.

                                           II.
         Simultaneously with the filing of the Amendment on August 31, 1999, CCI
and BellSouth  provided notice of said filing of all parties of record in Docket
No.  95-UA-358,  the docket pending before this Commission for  consideration of
local exchange  telecommunications  competition in Mississippi.  Said notice set
forth the  intention  of CCI and  BellSouth  to  present  the  Amendment  to the
Commission for approval on or after  twenty-five (25) days from August 31, 1999,
the date of said notice.  No  opposition  or  objection  has been raised to said
Amendment.

                                           III.
     This  Commission  has duly  considered  the  Amendment  in view of the Act,
particularly Section 252 (e)(2)(A) which provides:

(2)  Grounds  for rejection.--The  State commission may only reject--

    (A) An agreement (or portion thereof) adopted by negotiation  under
subsection (a) if it finds that--

       (i) the agreement (or portion thereof) discriminates against

           telecommunications carrier not a party to the agreement; or
<PAGE>

(ii) the  implementation of such agreement or portion is not consistent with the

public  interest,  convenience,  and  necessity;....

Thus, our review of such agreements is restricted to determining:

(1) whether the agreement discriminates against  a  telecommunications  carrier

not a party  to the  agreement;  or (2) whether or not the  implementation  of

such  agreement  is  consistent  with the public interest,  convenience, and

necessity. Further, any party contending that a  negotiated  agreement  is

either  discriminatory  or  contrary  to the public interest, convenience, and

necessity has the burden of proving such.

                                       IV.

         Upon a review of the Amendment, the Commission finds that the Amendment

meets  the  standards  set forth in  Section  252 (e) for the  approval  by this

Commission.  The  Amendment  does not  discriminate  in any manner  against  any

telecommunications   carrier  not  a  party  to  the   Amendment   nor  has  any

telecommunications  carrier made such a claim.  The Amendment  simply sets forth

the terms and conditions of the business relationship between BellSouth and CCI.

Those  terms  and   conditions,   on  their  face,  do  not  address  any  other

telecommunications  carrier and this  Commission's  review has not  revealed any

discriminatory  intent  or  result  inherent  in  those  terms  and  conditions.

Moreover, BellSouth has represented that pursuant to Section 252 (1) of the Act,

it will make the terms and  conditions of the  Amendment  available to any other

requesting

<PAGE>

telecommunications  carrier.  Thus, the Amendment does not discriminate  against

any  telecommunications  carrier not a party to the Amendment.

         We  further  find  that  the  terms  of  the  Amendment  are  not to be

considered as a precedential standard for other amendments, nor is it binding on

any other carrier not a party to the Amendment.

         We further find that the terms of the Amendment is consistent  with the

public interest,  convenience,  and necessity.  The Amendment is consistent with

the intent of Congress as that  intent is  revealed  in the Act.  The  Amendment

provides for new  competitors  in the local exchange  market,  which will likely

bring new services,  lower prices and other  benefits to the public at large and

to local telephone service customers in particular.

         IT IS, THEREFORE, ORDERED THAT:

         The  Amendment  does not  discriminate  against any  telecommunications

carrier  not a  party  to the  Amendment,  and is  consistent  with  the  public

interest, convenience, and necessity, and therefore, this Commission does hereby

approve the Amendment.

         Chairman Bo Robinson voted ____; Vice-Chairman George Byars voted ____;

 Commissioner Nielsen Cochran voted ____.

<PAGE>

         SO ORDERED on this the 8th day of November, 1999.

                                    MISSISSIPPI PUBLIC SERVICE COMMISSION

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

                                    BO ROBINSON, CHAIRMAN

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

                                    GEORGE BYARS, VICE CHAIRMAN

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

                                    NIELSEN COCHRAN, COMMISSIONER

ATTEST:  A TRUE COPY

--------------------------
BRIAN U. RAY
Executive Secretary

<PAGE>

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