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                                                                    EXHIBIT 10.9

    [LOGO]        AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION

           STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE -- NET
                (DO NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS)

1.      BASIC PROVISIONS ("BASIC PROVISIONS").

        1.1     PARTIES: This Lease ("LEASE"), dated for reference purposes
only June 6, 1997, is made by and between BOONE/FETTER/OCCIDENTAL I ("LESSOR")
and SOFTWARE TECHNOLOGIES CORPORATION ("LESSEE"), (collectively the "PARTIES,"
or individually a "PARTY").

        1.2     PREMISES: That certain real property, including all improvements
therein or to be provided by Lessor under the terms of this Lease, and commonly
known as 404 East Huntington Drive, Monrovia, located in the County of Los
Angeles, State of California, and generally described as (describe briefly the
nature of the property and, if applicable, the "PROJECT", if the property is
located within a Project) approximately 43,393 square feet of high tech space
("PREMISES"). (See also Paragraph 2)

        1.3     TERM: (See Paragraph 50 of Addendum) __ years and __________
months ("ORIGINAL TERM") commencing ______________ ("COMMENCEMENT DATE") and
ending August 31, 2003 ("EXPIRATION DATE"). (See also Paragraph 3)

        1.4     EARLY POSSESSION: N/A ("EARLY POSSESSION DATE"). (See also
Paragraphs 3.2 and 3.3)

        1.5     BASE RENT: $36,754.00 per month ("BASE RENT"), payable on the
1st day of each month commencing (See Paragraph 51 of Addendum). (See also
Paragraph 4)

[X] If this box is checked, there are provisions in this Lease for the Base Rent
    to be adjusted.

        1.6     BASE RENT PAID UPON EXECUTION: $0 as Base Rent for the period
N/A.

        1.7     SECURITY DEPOSIT: $91,126.00 (See Paragraph 52) ("SECURITY
DEPOSIT"). (See also Paragraph 5)

        1.8     AGREED USE: Office space, light assembly or any lawful use.
(See also Paragraph 6)

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

        1.10    REAL ESTATE BROKERS: (See also Paragraph 15)

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

[ ] _________________________ represents Lessor exclusively ("LESSOR'S BROKER");

[ ] ______________________ represents Lessee exclusively ("LESSEE'S BROKER"); or

[X] CB Commercial and Carl Anderson represents both Lessor and Lessee ("DUAL
AGENCY").

                (b) PAYMENT TO BROKERS: Upon execution and delivery of this
Lease by both Parties, Lessor shall pay to the Broker the fee agreed to in their
separate written agreement (or if there is no such agreement, the sum of * % of
the total Base Rent for the brokerage services rendered by said Broker). *4% for
1st 60 months; 2% for months 61-72

        1.11    GUARANTOR. The obligations of the Lessee under this Lease are to
be guaranteed by _______________________________________________________________
_________________________________________ ("GUARANTOR"). (See also Paragraph 37)

        1.12    ADDENDA AND EXHIBITS. Attached hereto is an Addendum or Addenda
consisting of Paragraphs 50 through 61.1 and Exhibits A,B, all of which
constitute a part of this Lease.

2.      PREMISES.

        2.1     LETTING. Lessor hereby leases to Lessee, and Lessee hereby
leases from Lessor, the Premises, for the term, at the rental, and upon all of
the terms, covenants and conditions set forth in this Lease. Unless otherwise
provided herein, any statement of size set forth in this Lease, or that may have
been used in calculating rental, is an approximation which the Parties agree is
reasonable and the rental based thereon is not subject to revision whether or
not the actual size is more or less.

        2.2     CONDITION. Lessor shall deliver the Premises to Lessee broom
clean and free of debris on the Commencement Date or the Early Possession Date,
whichever first occurs ("START DATE"), and, so long as the required service
contracts described in Paragraph 7.1(b) below are obtained by Lessee within
thirty (30) days following the Start Date, warrants that the existing
electrical, plumbing, fire sprinkler, lighting, heating, ventilating and air
conditioning systems ("HVAC"), loading doors, if any, and all other such
elements in the Premises, other than those constructed by Lessee, shall be in
good operating condition on said date and that the structural elements of the
roof, bearing walls and foundation of any buildings on the Premises (the
"BUILDING") shall be free of material defects. If a non-compliance with said
warranty exists as of the Start Date, Lessor shall, as Lessor's sole obligation
with respect to such matter, except as otherwise provided in this Lease,
promptly after receipt of written notice from Lessee setting forth with
specificity the nature and extent of such non-compliance, rectify same at
Lessor's expense. If, after the Start Date, Lessee does not give Lessor written
notice of any non-compliance with this warranty, correction of such
non-compliance shall be the obligation of Lessee at Lessee's sole cost and
expense. (See Paragraphs 53 of Addendum)

        2.3     COMPLIANCE. Lessor warrants that the improvements on the
Premises comply with all applicable laws, covenants or restrictions of record,
building codes, regulations and ordinances ("APPLICABLE REQUIREMENTS") in effect
on the Start Date. Said warranty does not apply to the use to which Lessee will
put the Premises or to any Alterations or Utility Installations (as defined in
Paragraph 7.3(a)) made or to be made by Lessee. NOTE: Lessee is responsible for
determining whether or not the zoning is appropriate for Lessee's intended use,
and acknowledges that past uses of the Premises may no longer be allowed. If the
Premises do not comply with said warranty, Lessor shall, except as otherwise
provided, promptly after receipt of written notice from Lessee setting forth
with specificity the nature and extent of such non-compliance, rectify the same
at Lessor's expense. If Lessee does not give Lessor written notice of a
non-compliance with this warranty within six (6) months following the Start
Date, correction of that non-compliance shall be the obligation of Lessee at
Lessee's sole cost and expense. If the Applicable Requirements are hereafter
changed (as opposed to being in existence at the Start Date, which is addressed
in Paragraph 6.2(e) below) so as to require during the term of this Lease the
construction of an addition to or an alteration of the Building, the remediation
of any Hazardous Substance, or the reinforcement or other physical modification
of the Building ("CAPITAL EXPENDITURE"), Lessor and Lessee shall allocate the
cost of such work as follows:

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(c)1997 -- AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION          FORM 204N-R-2/97
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               (a) Subject to Paragraph 2.3(c) below, if such Capital
Expenditures are required as a result of the specific and unique use of the
Premises by Lessee as compared with uses by tenants in general, Lessee shall be
fully responsible for the cost thereof, provided, however that if such Capital
Expenditure is required during the last two (2) years of this Lease and the cost
thereof exceeds six (6) months' Base Rent, Lessee may instead terminate this
Lease unless Lessor notifies Lessee, in writing, within ten (10) days after
receipt of Lessee's termination notice that Lessor has elected to pay the
difference between the actual cost thereof and the amount equal to six (6)
months' Base Rent. If Lessee elects termination, Lessee shall immediately cease
the use of the Premises which requires such Capital Expenditure and deliver to
Lessor written notice specifying a termination date at least ninety (90) days
thereafter. Such termination date shall, however, in no event be earlier than
the last day that Lessee could legally utilize the Premises without commencing
such Capital Expenditure.

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

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

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

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

3.      TERM.

        3.1     TERM. The Commencement Date, Expiration Date and Original Term
of this Lease are as specified in Paragraph 50.

        3.2     EARLY POSSESSION. If Lessee totally or partially occupies the
Premises prior to the Commencement Date, the obligation to pay Base Rent shall
be abated for the period of such early possession. All other terms of this Lease
(including but not limited to the obligations to pay Real Property Taxes and
insurance premiums and to maintain the Premises) shall, however, be in effect
during such period. Any such early possession shall not affect the Expiration
Date.

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

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

4.      RENT.

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

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

5.      SECURITY DEPOSIT. Lessee shall deposit with Lessor upon execution hereof
the Security Deposit as security for Lessee's faithful performance of its
obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults
under this Lease, Lessor may use, apply or retain all or any portion of said
Security Deposit for the payment of any amount due Lessor or to reimburse or
compensate Lessor for any liability, expense, loss or damage which Lessor may
suffer or incur by reason thereof. If Lessor uses or applies all or any portion
of said Security Deposit, Lessee shall within ten (10) days after written
request therefor deposit monies with Lessor sufficient to restore said Security
Deposit to the full amount required by this Lease. If the Base Rent increases
during the term of this Lease, Lessee shall, upon written request from Lessor,
deposit additional moneys with Lessor so that the total amount of the Security
Deposit shall at all times bear the same proportion to the increased Base Rent
as the initial Security Deposit bore to the initial Base Rent. Should the Agreed
Use be amended to accommodate a material change in the business of Lessee or to
accommodate a sublessee or assignee, Lessor shall have the right to increase the
Security Deposit to the extent necessary, in Lessor's reasonable judgment, to
account for any increased wear and tear that the Premises may suffer as a result
thereof. If a change in control of Lessee occurs during this Lease and following
such change the financial condition of Lessee is, in Lessor's reasonable
judgment, significantly reduced, Lessee shall deposit such additional monies
with Lessor as shall be sufficient to cause the Security Deposit to be at a
commercially reasonable level based on said change in financial condition.
Lessor shall not be required to keep the Security Deposit separate from its
general accounts. Within fourteen (14) days after the expiration or termination
of this Lease, if Lessor elects to apply the Security Deposit only to unpaid
Rent, and otherwise within thirty (30) days after the Premises have been vacated
pursuant to Paragraph 7.4(c) below, Lessor shall return that portion of the
Security Deposit not used or applied by Lessor. No part of the Security Deposit
shall be considered to be held in trust, to bear interest or to be prepayment
for any monies to be paid by Lessee under this Lease.

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                                                                FORM 204N-R-2/97

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6.      USE.

        6.1     USE. Lessee shall use and occupy the Premises only for the
Agreed Use, or any other legal use which is reasonably comparable thereto, and
for no other purpose. Lessee shall not use or permit the use of the Premises in
a manner that is unlawful, creates damage, waste or a nuisance, or that disturbs
owners and/or occupants of, or causes damage to neighboring properties. Lessor
shall not unreasonably withhold or delay its consent to any written request for
a modification of the Agreed Use, so long as the same will not impair the
structural integrity of the improvements on the Premises or the mechanical or
electrical systems therein, is not significantly more burdensome to the
Premises. If Lessor elects to withhold consent, Lessor shall within five (5)
business days after such request give written notification of same, which notice
shall include an explanation of Lessor's objections to the change in use.

        6.2     HAZARDOUS SUBSTANCES.

                (a) REPORTABLE USES REQUIRE CONSENT. The term "HAZARDOUS
SUBSTANCE" as used in this Lease shall mean any product, substance, or waste
whose presence, use, manufacture, disposal, transportation, or release, either
by itself or in combination with other materials expected to be on the Premises,
is either: (i) potentially injurious to the public health, safety or welfare,
the environment or the Premises, (ii) regulated or monitored by any governmental
authority, or (iii) a basis for potential liability of Lessor to any
governmental agency or third party under any applicable statute or common law
theory. Hazardous Substances shall include, but not be limited to, hydrocarbons,
petroleum, gasoline, and/or crude oil or any products, by-products or fractions
thereof. Lessee shall not engage in any activity in or on the Premises which
constitutes a Reportable Use of Hazardous Substances without the express prior
written consent of Lessor and timely compliance (at Lessee's expense) with all
Applicable Requirements. "REPORTABLE USE" shall mean (i) the installation or use
of any above or below ground storage tank, (ii) the generation, possession,
storage, use, transportation, or disposal of a Hazardous Substance that requires
a permit from, or with respect to which a report, notice, registration or
business plan is required to be filed with, any governmental authority, and/or
(iii) the presence at the Premises of a Hazardous Substance with respect to
which any Applicable Requirements requires that a notice be given to persons
entering or occupying the Premises or neighboring properties. Notwithstanding
the foregoing, Lessee may use any ordinary and customary materials reasonably
required to be used in the normal course of the Agreed Use, so long as such use
is in compliance with all Applicable Requirements, is not a Reportable Use, and
does not expose the Premises or neighboring property to any meaningful risk of
contamination or damage or expose Lessor to any liability therefor. In addition,
Lessor may condition its consent to any Reportable Use upon receiving such
additional assurances as Lessor reasonably deems necessary to protect itself,
the public, the Premises and/or the environment against damage, contamination,
injury and/or liability, including, but not limited to, the installation (and
removal on or before Lease expiration or termination) of protective
modifications (such as concrete encasements) and/or increasing the Security
Deposit.

               (b) DUTY TO INFORM LESSOR. If Lessee knows, or has reasonable
cause to believe, that a Hazardous Substance has come to be located in, on,
under or about the Premises, other than as previously consented to by Lessor,
Lessee shall immediately give written notice of such fact to Lessor, and provide
Lessor with a copy of any report, notice, claim or other documentation which it
has concerning the presence of such Hazardous Substance.

               (c) LESSEE REMEDIATION. Lessee shall not cause or permit any
Hazardous Substance to be spilled or released in, on, under, or about the
Premises (including through the plumbing or sanitary sewer system) and shall
promptly, at Lessee's expense, take all investigatory and/or remedial action
reasonably recommended, whether or not formally ordered or required, for the
cleanup of any contamination of, and for the maintenance, security and/or
monitoring of the Premises or neighboring properties, that was caused or
materially contributed to by Lessee, or pertaining to or involving any Hazardous
Substance brought onto the Premises during the term of this Lease, by or for
Lessee, or any third party.

               (d) LESSEE INDEMNIFICATION. Lessee shall indemnify, defend and
hold Lessor, its agents, employees, lenders and ground lessor, if any, harmless
from and against any and all loss of rents and/or damages, liabilities,
judgments, claims, expenses, penalties, and attorneys' and consultants' fees
arising out of or involving any Hazardous Substance brought onto the Premises by
or for Lessee, or any third party (provided, however, that Lessee shall have no
liability under this Lease with respect to underground migration of any
Hazardous Substance under the Premises from adjacent properties). Lessee's
obligations shall include, but not be limited to, the effects of any
contamination or injury to person, property or the environment created or
suffered by Lessee, and the cost of investigation, removal, remediation,
restoration and/or abatement, and shall survive the expiration or termination of
this Lease. NO TERMINATION, CANCELLATION OR RELEASE AGREEMENT ENTERED INTO BY
LESSOR AND LESSEE SHALL RELEASE LESSEE FROM ITS OBLIGATIONS UNDER THIS LEASE
WITH RESPECT TO HAZARDOUS SUBSTANCES, UNLESS SPECIFICALLY SO AGREED BY LESSOR IN
WRITING AT THE TIME OF SUCH AGREEMENT.

               (e) LESSOR INDEMNIFICATION. Lessor and its successors and assigns
shall indemnify, defend, reimburse and hold Lessee, its employees and lenders,
harmless from and against any and all environmental damages, including the cost
of remediation, which existed as a result of Hazardous Substances on the
Premises prior to the Start Date or which are caused by the gross negligence or
willful misconduct of Lessor, its agents or employees. Lessor's obligations, as
and when required by the Applicable Requirements, shall include, but not be
limited to, the cost of investigation, removal, remediation, restoration and/or
abatement, and shall survive the expiration or termination of this Lease.

               (f) INVESTIGATIONS AND REMEDIATIONS. Lessor shall retain the
responsibility and pay for any investigations or remediation measures required
by governmental entities having jurisdiction with respect to the existence of
Hazardous Substances on the Premises prior to the Start Date, unless such
remediation measure is required as a result of Lessee's use (including
"Alterations", as defined in Paragraph 7.3(a) below) of the Premises, in which
event Lessee shall be responsible for such payment. Lessee shall cooperate fully
in any such activities at the request of Lessor, including allowing Lessor and
Lessor's agents to have reasonable access to the Premises at reasonable times in
order to carry out Lessor's investigative and remedial responsibilities.

               (g) LESSOR TERMINATION OPTION. If a Hazardous Substance Condition
occurs during the term of this Lease, unless Lessee is legally responsible
therefor (in which case Lessee shall make the investigation and remediation
thereof required by the Applicable Requirements and this Lease shall continue in
full force and effect, but subject to Lessor's rights under Paragraph 6.2(d) and
Paragraph 13), Lessor may, at Lessor's option, either (i) investigate and
remediate such Hazardous Substance Condition, if required, as soon as reasonably
possible at Lessor's expense, in which event this Lease shall continue in full
force and effect, or (ii) if the estimated cost to remediate such condition
exceeds twelve (12) times the then monthly Base Rent or $100,000, whichever is
greater, give written notice to Lessee, within thirty (30) days after receipt by
Lessor of knowledge of the occurrence of such Hazardous Substance Condition, of
Lessor's desire to terminate this Lease as of the date sixty (60) days following
the date of such notice. In the event Lessor elects to give a termination
notice, Lessee may, within ten (10) days thereafter, give written notice to
Lessor of Lessee's commitment to pay the amount by which the cost of the
remediation of such Hazardous Substance Condition exceeds an amount equal to
twelve (12) times the then monthly Base Rent or $100,000, whichever is greater.
Lessee shall provide Lessor with said funds or satisfactory assurance thereof
within thirty (30) days following such commitment. In such event, this Lease
shall continue in full force and effect, and Lessor shall proceed to make such
remediation as soon as reasonably possible after the required funds are
available. If Lessee does not give such notice and provide the required funds or
assurance thereof within the time provided, this Lease shall terminate as of the
date specified in Lessor's notice of termination.

        6.3     LESSEE'S COMPLIANCE WITH APPLICABLE REQUIREMENTS. Except as
otherwise provided in this Lease, Lessee shall, at Lessee's sole expense, fully,
diligently and in a timely manner, materially comply with all Applicable
Requirements, the requirements of any applicable fire insurance underwriter or
rating bureau, and the recommendations of Lessor's engineers and/or consultants
which relate in any manner to the Premises, without regard to whether said
requirements are now in effect or become effective after the Start Date. Lessee
shall, within ten (10) days after receipt of Lessor's written request, provide
Lessor with copies of all permits and other documents, and other information
evidencing Lessee's compliance with any Applicable Requirements specified by
Lessor, and shall immediately upon receipt, notify Lessor in writing (with
copies of any documents involved) of any threatened or actual claim, notice,
citation, warning, complaint or report pertaining to or involving the failure of
Lessee or the Premises to comply with any Applicable Requirements.

        6.4     INSPECTION; COMPLIANCE. Lessor and Lessor's "Lender" (as defined
in Paragraph 30 below) and consultants shall have the right to enter into
Premises at any time, in the case of an emergency, and otherwise at reasonable
times, for the purpose of inspecting the condition of the Premises and for
verifying compliance by Lessee with this Lease. The cost of any such inspections
shall be paid by Lessor, unless a violation of Applicable Requirements, or a
contamination is found to exist or be imminent, or the inspection is requested
or ordered by a governmental authority. In such case, Lessee shall upon request
reimburse Lessor for the cost of such inspections, so long as such inspection is
reasonably related to the violation or contamination.

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                                                                FORM 204N-R-2/97

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

        7.1     LESSEE'S OBLIGATIONS.

                (a) IN GENERAL. Subject to the provisions of Paragraph 2.2
(Condition), 2.3 (Compliance), 6.3 (Lessee's Compliance with Applicable
Requirements), 7.2 (Lessor's Obligations), 9 (Damage or Destruction), and 14
(Condemnation), Lessee shall, at Lessee's sole expense, keep the Premises,
Utility Installations, and Alterations in good order, condition and repair
(whether or not the portion of the Premises requiring repairs, or the means of
repairing the same, are reasonably or readily accessible to Lessee, and whether
or not the need for such repairs occurs as a result of Lessee's use, any prior
use, the elements or the age of such portion of the Premises), including, but
not limited to, all equipment or facilities, such as plumbing, heating,
ventilating, air-conditioning, electrical, lighting facilities, boilers,
pressure vessels, fire protection system, fixtures, walls (interior and
exterior), ceilings, roofs, floors, windows, doors, plate glass, skylights,
landscaping, driveways, parking lots, fences, retaining walls, signs, sidewalks
and parkways located in, on, or adjacent to the Premises. Lessee, in keeping the
Premises in good order, condition and repair, shall exercise and perform good
maintenance practices, specifically including the procurement and maintenance of
the service contracts required by Paragraph 7.1(b) below. Lessee's obligations
shall include restorations, replacements or renewals when necessary to keep the
Premises and all improvements thereon or a part thereof in good order, condition
and state of repair. Lessee shall, during the term of this Lease, keep the
exterior appearance of the Building in a first-class condition consistent with
the exterior appearance of other similar facilities of comparable age and size
in the vicinity, including, when necessary, the exterior repainting of the
Building.

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

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

        7.2     LESSOR'S OBLIGATIONS. Subject to the provisions of Paragraphs
2.2 (Condition), 2.3 (Compliance), 9 (Damage or Destruction) and 14
(Condemnation), it is intended by the Parties hereto that Lessor have no
obligation, in any manner whatsoever, to repair and maintain the Premises, or
the equipment therein, all of which obligations are intended to be that of the
Lessee. It is the intention of the Parties that the terms of this Lease govern
the respective obligations of the Parties as to maintenance and repair of the
Premises, and they expressly waive the benefit of any statute now or hereafter
in effect to the extent it is inconsistent with the terms of this Lease.

        7.3     UTILITY INSTALLATIONS; TRADE FIXTURES; ALTERATIONS.

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

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

               (c) INDEMNIFICATION. Lessee shall pay, when due, all claims for
labor or materials furnished or alleged to have been furnished to or for Lessee
at or for use on the Premises, which claims are or may be secured by any
mechanic's or materialmen's lien against the Premises or any interest therein.
Lessee shall give Lessor not less than ten (10) days' notice prior to the
commencement of any work in, on or about the Premises, and Lessor shall have the
right to post notices of non-responsibility. If Lessee shall contest the
validity of any such lien, claim or demand, then Lessee shall, at its sole
expense defend and protect itself, Lessor and the Premises against the same and
shall pay and satisfy any such adverse judgment that may be rendered thereon
before the enforcement thereof. If Lessor shall require, Lessee shall furnish a
surety bond in an amount equal to one and one-half times the amount of such
contested lien, claim or demand, indemnifying Lessor against liability for the
same. If Lessor elects to participate in any such action, Lessee shall pay
Lessor's attorneys' fees and costs.

        7.4     OWNERSHIP; REMOVAL; SURRENDER; AND RESTORATION.

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

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

               (c) SURRENDER/RESTORATION. Lessee shall surrender the Premises by
the Expiration Date or any earlier termination date, with all of the
improvements, parts and surfaces thereof broom clean and free of debris, and in
good operating order, condition and state of repair, ordinary wear and tear
excepted. "Ordinary wear and tear" shall not include any damage or deterioration
that would have been prevented by good maintenance practice. Lessee shall repair
any damage occasioned by the installation, maintenance or removal of Trade
Fixtures, Lessee Owned Alterations and/or Utility Installations, furnishings,
and equipment as well as the removal of any storage tank installed by or for
Lessee, and the removal, replacement, or remediation of any soil, material or
groundwater contaminated by Lessee. Trade Fixtures shall remain the property of
Lessee and shall be removed by Lessee. The failure by Lessee to timely vacate
the Premises pursuant to this Paragraph 7.4(c) without the express written
consent of Lessor shall constitute a holdover under the provisions of Paragraph
26 below.

                                     PAGE 4
                                                                FORM 204N-R-2/97

<PAGE>   5

8.      INSURANCE; INDEMNITY.

        8.1     PAYMENT FOR INSURANCE. Lessee shall pay for all insurance
required under Paragraph 8 except to the extent of the cost attributable to
liability insurance carried by Lessor under Paragraph 8.2(b) in excess of
$11,000,000 per occurrence. Premiums for policy periods commencing prior to or
extending beyond the Lease term shall be prorated to correspond to the Lease
term. Payment shall be made by Lessee to Lessor within ten (10) days following
receipt of an invoice.

        8.2     LIABILITY INSURANCE.

                (a) CARRIED BY LESSEE. Lessee shall obtain and keep in force a
Commercial General Liability Policy of Insurance protecting Lessee and Lessor
against claims for bodily injury, personal injury and property damage based upon
or arising out of the ownership, use, occupancy or maintenance of the Premises
and all areas appurtenant thereto. Such insurance shall be on an occurrence
basis providing single limit coverage in an amount not less than $2,000,000 per
occurrence with an "ADDITIONAL INSURED -- MANAGERS OR LESSORS OF PREMISES
ENDORSEMENT" and contain the "AMENDMENT OF THE POLLUTION EXCLUSION ENDORSEMENT"
for damage caused by heat, smoke or fumes from a hostile fire. The Policy shall
not contain any intra-insured exclusions as between insured persons or
organizations, but shall include coverage for liability assumed under this Lease
as an "insured contract" for the performance of Lessee's indemnity obligations
under this Lease. The limits of said insurance shall not, however, limit the
liability of Lessee nor relieve Lessee of any obligation hereunder. All
insurance carried by Lessee shall be primary to and not contributory with any
similar insurance carried by Lessor, whose insurance shall be considered excess
insurance only.

                (b) CARRIED BY LESSOR. Lessor shall maintain liability insurance
as described in Paragraph 8.2(a), in addition to, and not in lieu of, the
insurance required to be maintained by Lessee. Lessee shall not be named as an
additional insured therein.

        8.3     PROPERTY INSURANCE -- BUILDING, IMPROVEMENTS AND RENTAL VALUE.

                (a) BUILDING AND IMPROVEMENTS. The Insuring Party shall obtain
and keep in force a policy or policies in the name of Lessor, with loss payable
to Lessor, any groundlessor, and to any Lender(s) insuring loss or damage to the
Premises. The amount of such insurance shall be equal to the full replacement
cost of the Premises, as the same shall exist from time to time, or the amount
required by any Lenders, but in no event more than the commercially reasonable
and available insurable value thereof. If Lessor is the Insuring Party, however,
Lessee Owned Alterations and Utility Installations, Trade Fixtures, and Lessee's
personal property shall be insured by Lessee under Paragraph 8.4 rather than by
Lessor. If the coverage is available and commercially appropriate, such policy
or policies shall insure against all risks of direct physical loss or damage
(except the perils of flood and/or earthquake unless required by a Lender),
including coverage for debris removal and the enforcement of any Applicable
Requirements requiring the upgrading, demolition, reconstruction or replacement
of any portion of the Premises as the result of a covered loss. Said policy or
policies shall also contain an agreed valuation provision in lieu of any
coinsurance clause, waiver of subrogation, and inflation guard protection
causing an increase in the annual property insurance coverage amount by a factor
of not less than the adjusted U.S. Department of Labor Consumer Price Index for
All Urban Consumers for the city nearest to where the Premises are located. If
such insurance coverage has a deductible clause, the deductible amount shall not
exceed $1,000 per occurrence, and Lessee shall be liable for such deductible
amount in the event of an Insured Loss.

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

                (c) ADJACENT PREMISES. If the Premises are part of a larger
building, or of a group of buildings owned by Lessor which are adjacent to the
Premises, the Lessee shall pay for any increase in the premiums for the property
insurance of such building or buildings if said increase is caused by Lessee's
acts, omissions, use or occupancy of the Premises.

        8.4     LESSEE'S PROPERTY/BUSINESS INTERRUPTION INSURANCE.

                (a) PROPERTY DAMAGE. Lessee shall obtain and maintain insurance
coverage on all of Lessee's personal property, Trade Fixtures, and Lessee Owned
Alterations and Utility Installations. Such insurance shall be full replacement
cost coverage with a deductible of not to exceed $1,000 per occurrence. The
proceeds from any such insurance shall be used by Lessee for the replacement of
personal property, Trade Fixtures and Lessee Owned Alterations and Utility
Installations. Lessee shall provide Lessor with written evidence that such
insurance is in force.

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

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

        8.5     INSURANCE POLICIES. Insurance required herein shall be by
companies duly licensed or admitted to transact business in the state where the
Premises are located, and maintaining during the policy term a "General
Policyholders Rating" of at least B+, V, as set forth in the most current issue
of "Best's Insurance Guide", or such other rating as may be required by a
Lender. Lessee shall not do or permit to be done anything which invalidates the
required insurance policies. Lessee shall, prior to the Start Date, deliver to
Lessor certified copies of policies of such insurance or certificates evidencing
the existence and amounts of the required insurance. No such policy shall be
cancelable or subject to modification except after thirty (30) days prior
written notice to Lessor. Lessee shall, at least thirty (30) days prior to the
expiration of such policies, furnish Lessor with evidence of renewals or
"insurance binders" evidencing renewal thereof, or Lessor may order such
insurance and charge the cost thereof to Lessee, which amount shall be payable
by Lessee to Lessor upon demand. Such policies shall be for a term of at least
one year, or the length of the remaining term of this Lease, whichever is less.
If either Party shall fail to procure and maintain the insurance required to be
carried by it, the other Party may, but shall not be required to, procure and
maintain the same.

        8.6     WAIVER OF SUBROGATION. Without affecting any other rights or
remedies, Lessee and Lessor each hereby release and relieve the other, and waive
their entire right to recover damages against the other, for loss of or damage
to its property arising out of or incident to the perils required to be insured
against herein. The effect of such releases and waivers is not limited by the
amount of insurance carried or required, or by any deductibles applicable
hereto. The Parties agree to have their respective property damage insurance
carriers waive any right to subrogation that such companies may have against
Lessor or Lessee, as the case may be, so long as the insurance is not
invalidated thereby.

        8.7     INDEMNITY. Except for Lessor's gross negligence or willful
misconduct, Lessee shall indemnify, protect, defend and hold harmless the
Premises, Lessor and its agents, Lessor's master or ground lessor, partners and
Lenders, from and against any and all claims, loss of rents and/or damages,
liens, judgments, penalties, attorneys' and consultants' fees, expenses and/or
liabilities arising out of, involving, or in connection with, the use and/or
occupancy of the Premises by Lessee. If any action or proceeding is brought
against Lessor by reason of any of the foregoing matters, Lessee shall upon
notice defend the same at Lessee's expense by counsel reasonably satisfactory to
Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not
have first paid any such claim in order to be defended or indemnified.

        8.8     EXEMPTION OF LESSOR FROM LIABILITY. Lessor shall not be liable
for injury or damage to the person or goods, wares, merchandise or other
property of Lessee, Lessee's employees, contractors, invitees, customers, or any
other person in or about the Premises, whether such damage or injury is caused
by or results from fire, steam, electricity, gas, water or rain, or from the
breakage, leakage, obstruction or other defects of pipes, fire sprinklers,
wires, appliances, plumbing, HVAC or lighting fixtures, or from any other cause,
whether the said injury or damage results from conditions arising upon the
Premises or upon other portions of the Building of which the Premises are a
part, or from other sources or places. Lessor shall not be liable for any
damages arising from any act or neglect of any other tenant of Lessor.
Notwithstanding Lessor's negligence or breach of this Lease, Lessor shall under
no circumstances be liable for injury to Lessee's business or for any loss of
income or profit therefrom.

9.      DAMAGE OR DESTRUCTION.

        9.1     DEFINITIONS.

                (a) "PREMISES PARTIAL DAMAGE" shall mean damage or destruction
to the improvements on the Premises, other than Lessee Owned Alterations and
Utility Installations, which can reasonably be repaired in six (6) months or
less from the date of the damage or destruction.

                                     PAGE 5
                                                                FORM 204N-R-2/97

<PAGE>   6
Lessor shall notify Lessee in writing within thirty (30) days from the date of
the damage or destruction as to whether or not the damage is Partial or Total.

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

                (c) "INSURED LOSS" shall mean damage or destruction to
improvements on the Premises, other than Lessee Owned Alterations and Utility
Installations and Trade Fixtures, which was caused by an event required to be
covered by the insurance described in Paragraph 8.3(a), irrespective of any
deductible amounts or coverage limits involved.

                (d) "REPLACEMENT COST" shall mean the cost to repair or rebuild
the improvements owned by Lessor at the time of the occurrence to their
condition existing immediately prior thereto, including demolition, debris
removal and upgrading required by the operation of Applicable Requirements, and
without deduction for depreciation.

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

        9.2     PARTIAL DAMAGE -- INSURED LOSS. If a Premises Partial Damage
that is an Insured Loss occurs, then Lessor shall, at Lessor's expense, repair
such damage (but not Lessee's Trade Fixtures or Lessee Owned Alterations and
Utility Installations) as soon as reasonably possible and this Lease shall
continue in full force and effect; provided, however, that Lessee shall, at
Lessor's election, make the repair of any damage or destruction the total cost
to repair of which is $10,000 or less, and, in such event, Lessor shall make any
applicable insurance proceeds available to Lessee on a reasonable basis for that
purpose. Notwithstanding the foregoing, if the required insurance was not in
force or the insurance proceeds are not sufficient to effect such repair, the
Insuring Party shall promptly contribute the shortage in proceeds (except as to
the deductible which is Lessee's responsibility) as and when required to
complete said repairs. In the event, however, such shortage was due to the fact
that, by reason of the unique nature of the improvements, full replacement cost
insurance coverage was not commercially reasonable and available, Lessor shall
have no obligation to pay for the shortage in insurance proceeds or to fully
restore the unique aspects of the Premises unless Lessee provides Lessor with
the funds to cover same, or adequate assurance thereof, within ten (10) days
following receipt of written notice of such shortage and request therefor. If
Lessor receives said funds or adequate assurance thereof within said ten (10)
day period, the party responsible for making the repairs shall complete them as
soon as reasonably possible and this Lease shall remain in full force and
effect. If such funds or assurance are not received, Lessor may nevertheless
elect by written notice to Lessee within ten (10) days thereafter to: (i) make
such restoration and repair as is commercially reasonable with Lessor paying any
shortage in proceeds, in which case this Lease shall remain in full force and
effect, or have this Lease terminate thirty (30) days thereafter. Lessee shall
not be entitled to reimbursement of any funds contributed by Lessee to repair
any such damage or destruction. Premises Partial Damage due to flood or
earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be
some insurance coverage, but the net proceeds of any such insurance shall be
made available for the repairs if made by either Party.

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

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

        9.5     DAMAGE NEAR END OF TERM. If at any time during the last six (6)
months of this Lease there is damage for which the cost to repair exceeds one
(1) month's Base Rent, whether or not an Insured Loss, Lessor may terminate this
Lease effective sixty (60) days following the date of occurrence of such damage
by giving a written termination notice to Lessee within thirty (30) days after
the date of occurrence of such damage. Notwithstanding the foregoing, if Lessee
at that time has an exercisable option to extend this Lease or to purchase the
Premises, then Lessee may preserve this Lease by, (a) exercising such option and
(b) providing Lessor with any shortage in insurance proceeds (or adequate
assurance thereof) needed to make the repairs on or before the earlier of (i)
the date which is ten days after Lessee's receipt of Lessor's written notice
purporting to terminate this Lease, or (ii) the day prior to the date upon which
such option expires. If Lessee duly exercises such option during such period and
provides Lessor with funds (or adequate assurance thereof) to cover any shortage
in insurance proceeds, Lessor shall, at Lessor's commercially reasonable
expense, repair such damage as soon as reasonably possible and this Lease shall
continue in full force and effect. If Lessee fails to exercise such option and
provide such funds or assurance during such period, then this Lease shall
terminate on the date specified in the termination notice and Lessee's option
shall be extinguished.

        9.6     ABATEMENT OF RENT; LESSEE'S REMEDIES.

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

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

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

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

10.     REAL PROPERTY TAXES.

        10.1    DEFINITION OF "REAL PROPERTY TAXES." As used herein, the term
"REAL PROPERTY TAXES" shall include any form of assessment; real estate,
general, special, ordinary or extraordinary, or rental levy or tax (other than
inheritance, personal income or estate taxes); improvement bond; and/or license
fee imposed upon or levied against any legal or equitable interest of Lessor in
the Premises, Lessor's right to other income therefrom, and/or Lessor's business
of leasing, by any authority having the direct or indirect power to tax and
where the funds are generated

                                     PAGE 6
                                                                FORM 204N-R-2/97

<PAGE>   7

with reference to the Building address and where the proceeds so generated are
to be applied by the city, county or other local taxing authority of a
jurisdiction within which the Premises are located. The term "REAL PROPERTY
TAXES" shall also include any tax, fee, levy, assessment or charge, or any
increase therein, imposed by reason of events occurring during the term of this
Lease, including but not limited to, a change in the ownership of the Premises.

        10.2

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

                (b) ADVANCE PAYMENT. In the event Lessee incurs a late charge on
any Rent payment, Lessor may, at Lessor's option, estimate the current Real
Property Taxes, and require that such taxes be paid in advance to Lessor by
Lessee, either: (i) in a lump sum amount equal to the installment due, at least
twenty (20) days prior to the applicable delinquency date, or (ii) monthly in
advance with the payment of the Base Rent. If Lessor elects to require payment
monthly in advance, the monthly payment shall be an amount equal to the amount
of the estimated installment of taxes divided by the number of months remaining
before the month in which said installment becomes delinquent. When the actual
amount of the applicable tax bill is known, the amount of such equal monthly
advance payments shall be adjusted as required to provide the funds needed to
pay the applicable taxes. If the amount collected by Lessor is insufficient to
pay such Real Property Taxes when due, Lessee shall pay Lessor, upon demand,
such additional sums as are necessary to pay such obligations. All monies paid
to Lessor under this Paragraph may be intermingled with other monies of Lessor
and shall not bear interest. In the event of a Breach by Lessee in the
performance of its obligations under this Lease, then any balance of funds paid
to Lessor under the provisions of this Paragraph may, at the option of Lessor,
be treated as an additional Security Deposit.

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

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

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

12.     ASSIGNMENT AND SUBLETTING.

        12.1    LESSOR'S CONSENT REQUIRED.

                                     PAGE 7
                                                                FORM 204N-R-2/97

<PAGE>   8

13.     DEFAULT; BREACH; REMEDIES.

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

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

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

                (c) The failure by Lessee to provide (i) reasonable written
evidence of compliance with Applicable Requirements, (ii) the service contracts,
(iii) the rescission of an unauthorized assignment or subletting, (iv) a Tenancy
Statement, (v) a requested subordination, (vi) evidence concerning any guaranty
and/or Guarantor, (vii) any document requested under Paragraph 42 (easements),
or (viii) any other documentation or information which Lessor may reasonably
require of Lessee under the terms of this Lease, where any such failure
continues for a period of ten (10) days following written notice to Lessee.

                (d) A Default by Lessee as to the terms, covenants, conditions
or provisions of this Lease, or of the rules adopted under Paragraph 40 hereof,
other than those described in subparagraphs 13.1(a), (b) or (c), above, where
such Default continues for a period of thirty (30) days after written notice;
provided, however, that if the nature of Lessee's Default is such that more than
thirty (30) days are reasonably required for its cure, then it shall not be
deemed to be a Breach if Lessee commences such cure within said thirty (30) day
period and thereafter diligently prosecutes such cure to completion.

                (e) The occurrence of any of the following events: (i) the
making of any general arrangement or assignment for the benefit of creditors;
(ii) becoming a "DEBTOR" as defined in 11 U.S.C. Section 101 or any successor
statute thereto (unless, in the case of a petition filed against Lessee, the
same is dismissed within sixty (60) days); (iii) the appointment of a trustee or
receiver to take possession of substantially all of Lessee's assets located at
the Premises or of Lessee's interest in this Lease, where possession is not
restored to Lessee within thirty (30) days; or (iv) the attachment, execution or
other judicial seizure of substantially all of Lessee's assets located at the
Premises or of Lessee's interest in this Lease, where such seizure is not
discharged within thirty (30) days; provided, however, in the event that any
provision of this subparagraph (e) is contrary to any applicable law, such
provision shall be of no force or effect, and not affect the validity of the
remaining provisions.

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

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

        13.2    REMEDIES. If Lessee fails to perform any of its affirmative
duties or obligations, within ten (10) days after written notice (or in case of
an emergency, without notice), Lessor may, at its option, perform such duty or
obligation on Lessee's behalf, including but not limited to the obtaining of
reasonably required bonds, insurance policies, or governmental licenses, permits
or approvals. The costs and expenses of any such performance by Lessor shall be
due and payable by Lessee upon receipt of invoice therefor. If any check given
to Lessor by Lessee shall not be honored by the bank upon which it is drawn,
Lessor, at its option, may require all future payments to be made by Lessee to
be by cashier's check. In the event of a Breach, Lessor may, with or without
further notice or demand, and without limiting Lessor in the exercise of any
right or remedy which Lessor may have by reason of such Breach:

                (a) Terminate Lessee's right to possession of the Premises by
any lawful means, in which case this Lease shall terminate and Lessee shall
immediately surrender possession to Lessor. In such event Lessor shall be
entitled to recover from Lessee: (i) the unpaid Rent which had been earned at
the time of termination; (ii) the worth at the time of award of the amount by
which the unpaid rent which would have been earned after termination until the
time of award exceeds the amount of such rental loss that the Lessee proves
could have been reasonably avoided; (iii) the worth at the time of award of the
amount by which the unpaid rent for the balance of the term after the time of
award exceeds the amount of such rental loss that the Lessee proves could be
reasonably avoided; and (iv) any other amount necessary to compensate Lessor for
all the detriment proximately caused by the Lessee's failure to perform its
obligations under this Lease or which in the ordinary course of things would be
likely to result therefrom, including but not limited to the cost of recovering
possession of the Premises, expenses of reletting, including necessary
renovation and alteration of the Premises, reasonable attorneys' fees, and that
portion of any leasing commission paid by Lessor in connection with this Lease
applicable to the unexpired term of this Lease. The worth at the time of award
of the amount referred to in provision (iii) of the immediately preceding
sentence shall be computed by discounting such amount at the discount rate of
the Federal Reserve Bank of the District within which the Premises are located
at the time of award plus one percent (1%). Efforts by Lessor to mitigate
damages caused by Lessee's Breach of this Lease shall not waive Lessor's right
to recover damages under Paragraph 12. If termination of this Lease is obtained
through the provisional remedy of unlawful detainer, Lessor shall have the right
to recover in such proceeding any unpaid Rent and damages as are recoverable
therein, or Lessor may reserve the right to recover all or any part thereof in a
separate suit. If a notice and grace period required under Paragraph 13.1 was
not previously given, a notice to pay rent or quit, or to perform or quit given
to Lessee under the unlawful detainer statute shall also constitute the notice
required by Paragraph 13.1. In such case, the applicable grace period required
by Paragraph 13.1 and the unlawful detainer statute shall run concurrently, and
the failure of Lessee to cure the Default within the greater of the two such
grace periods shall constitute both an unlawful detainer and a Breach of this
Lease entitling Lessor to the remedies provided for in this Lease and/or by said
statute.

                (b) Continue the Lease and Lessee's right to possession and
recover the Rent as it becomes due, in which event Lessee may sublet or assign,
subject only to reasonable limitations. Acts of maintenance, efforts to relet,
and/or the appointment of a receiver to protect the Lessor's interests, shall
not constitute a termination of the Lessee's right to possession.

                (c) Pursue any other remedy now or hereafter available under the
laws or judicial decisions of the state wherein the Premises are located. The
expiration or termination of this Lease and/or the termination of Lessee's right
to possession shall not relieve Lessee from liability

                                     PAGE 8
                                                                FORM 204N-R-2/97

<PAGE>   9
under any indemnity provisions of this Lease as to matters occurring or accruing
during the term hereof or by reason of Lessee's occupancy of the Premises.

        13.3    INDUCEMENT RECAPTURE. Any agreement for free or abated rent or
other charges, or for the giving or paying by Lessor to or for Lessee of any
cash or other bonus, inducement or consideration for Lessee's entering into this
Lease, all of which concessions are hereinafter referred to as "INDUCEMENT
PROVISIONS," shall be deemed conditioned upon Lessee's full and faithful
performance of all of the terms, covenants and conditions of this Lease. Upon
Breach of this Lease by Lessee, any such Inducement Provision shall
automatically be deemed deleted from this Lease and of no further force or
effect, and any rent, other charge, bonus, inducement or consideration
theretofore abated, given or paid by Lessor under such an Inducement Provision
shall be immediately due and payable by Lessee to Lessor, notwithstanding any
subsequent cure of said Breach by Lessee. The acceptance by Lessor of rent or
the cure of the Breach which initiated the operation of this paragraph shall not
be deemed a waiver by Lessor of the provisions of this paragraph unless
specifically so stated in writing by Lessor at the time of such acceptance.

        13.4    LATE CHARGES. Lessee hereby acknowledges that late payment by
Lessee of Rent will cause Lessor to incur costs not contemplated by this Lease,
the exact amount of which will be extremely difficult to ascertain. Such costs
include, but are not limited to, processing and accounting charges, and late
charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent
shall not be received by Lessor within five (5) days after such amount shall be
due, then, without any requirement for notice to Lessee, Lessee shall pay to
Lessor a one-time late charge of $1,500 of each such overdue amount. The Parties
hereby agree that such late charge represents a fair and reasonable estimate of
the costs Lessor will incur by reason of such late payment. Acceptance of such
late charge by Lessor shall in no event constitute a waiver of Lessee's Default
or Breach with respect to such overdue amount, nor prevent the exercise of any
of the other rights and remedies granted hereunder. In the event that a late
charge is payable hereunder, whether or not collected, for three (3) consecutive
installments of Base Rent, then notwithstanding any provision of this Lease to
the contrary, Base Rent shall, at Lessor's option, become due and payable
quarterly in advance.

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

        13.6    BREACH BY LESSOR.

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

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

14.     CONDEMNATION. If the Premises or any portion thereof are taken under the
power of eminent domain or sold under the threat of the exercise of said power
(collectively "CONDEMNATION"), this Lease shall terminate as to the part taken
as of the date the condemning authority takes title or possession, whichever
first occurs. If more than ten percent (10%) of any building portion of the
premises, or more than twenty-five percent (25%) of the land area portion of the
premises not occupied by any building, is taken by Condemnation, Lessee may, at
Lessee's option, to be exercised in writing within ten (10) days after Lessor
shall have given Lessee written notice of such taking (or in the absence of such
notice, within ten (10) days after the condemning authority shall have taken
possession) terminate this Lease as of the date the condemning authority takes
such possession. If Lessee does not terminate this Lease in accordance with the
foregoing, this Lease shall remain in full force and effect as to the portion of
the Premises remaining, except that the Base Rent shall be reduced in proportion
to the reduction in utility of the Premises caused by such Condemnation.
Condemnation awards and/or payments shall be the property of Lessor, whether
such award shall be made as compensation for diminution in value of the
leasehold, the value of the part taken, or for severance damages; provided,
however, that Lessee shall be entitled to any compensation for Lessee's
relocation expenses, loss of business goodwill and/or Trade Fixtures, without
regard to whether or not this Lease is terminated pursuant to the provisions of
this Paragraph. All Alterations and Utility Installations made to the Premises
by Lessee, for purposes of Condemnation only, shall be considered the property
of the Lessee and Lessee shall be entitled to any and all compensation which is
payable therefor. In the event that this Lease is not terminated by reason of
the Condemnation, Lessor shall repair any damage to the Premises caused by such
Condemnation.

15.     BROKERS' FEE.

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

16.     ESTOPPEL CERTIFICATES.

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

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

                                     PAGE 9
                                                                FORM 204N-R-2/97
<PAGE>   10
     (c) If Lessor desires to finance, refinance, or sell the Premises, or any
part thereof, Lessee and all Guarantors shall deliver to any potential lender or
purchaser designated by Lessor such financial statements as may be reasonably
required by such lender or purchaser, including, but not limited to, Lessee's
financial statements for the past three (3) years. All such financial statements
shall be received by Lessor and such lender or purchaser in confidence and shall
be used only for the purposes herein set forth.

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

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

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

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

21.     TIME OF ESSENCE. Time is of the essence with respect to the performance
of all obligations to be performed or observed by the Parties under this Lease.

22.     NO PRIOR OR OTHER AGREEMENTS; BROKER DISCLAIMER. This Lease contains all
agreements between the Parties with respect to any matter mentioned herein, and
no other prior or contemporaneous agreement or understanding shall be effective.
Lessor and Lessee each represents and warrants to the Brokers that it has made,
and is relying solely upon, its own investigation as to the nature, quality,
character and financial responsibility of the other Party to this Lease and as
to the nature, quality and character of the Premises. Brokers have no
responsibility with respect thereto or with respect to any default or breach
hereof by either Party. The liability (including court costs and Attorneys'
fees), of any Broker with respect to negotiation, execution, delivery or
performance by either Lessor or Lessee under this Lease or any amendment or
modification hereto shall be limited to an amount up to the fee received by such
Broker pursuant to this Lease; provided, however, that the foregoing limitation
on each Broker's liability shall not be applicable to any gross negligence or
willful misconduct of such Broker.

23.     NOTICES.

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

                23.2    DATE OF NOTICE. Any notice sent by registered or
certified mail, return receipt requested, shall be deemed given on the date of
delivery shown on the receipt card, or if no delivery date is shown, the
postmark thereon. If sent by regular mail the notice shall be deemed given
forty-eight (48) hours after the same is addressed as required herein and mailed
with postage prepaid. Notices delivered by United States Express Mail or
overnight courier that guarantee next day delivery shall be deemed given
twenty-four (24) hours after delivery of the same to the Postal Service or
courier. Notices transmitted by facsimile transmission or similar means shall be
deemed delivered upon telephone confirmation of receipt, provided a copy is also
delivered via delivery or mail. If notice is received on a Saturday, Sunday or
legal holiday, it shall be deemed received on the next business day.

24.     WAIVERS. No waiver by Lessor of the Default or Breach of any term,
covenant or condition hereof by Lessee, shall be deemed a waiver of any other
term, covenant or condition hereof, or of any subsequent Default or Breach by
Lessee of the same or of any other term, covenant or condition hereof. Lessor's
consent to, or approval of, any act shall not be deemed to render unnecessary
the obtaining of Lessor's consent to, or approval of, any subsequent or similar
act by Lessee, or be construed as the basis of an estoppel to enforce the
provision or provisions of this Lease requiring such consent. The acceptance of
Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any
payment by Lessee may be accepted by Lessor on account of monies or damages due
Lessor, notwithstanding any qualifying statements or conditions made by Lessee
in connection therewith, which such statements and/or conditions shall be of no
force or effect whatsoever unless specifically agreed to in writing by Lessor at
or before the time of deposit of such payment.

25.     RECORDING. Either Lessor or Lessee shall, upon request of the other,
execute, acknowledge and deliver to the other a short form memorandum of this
Lease for recording purposes. The Party requesting recordation shall be
responsible for payment of any fees applicable thereto.

26.     NO RIGHT TO HOLDOVER. Lessee has no right to retain possession of the
Premises or any part thereof beyond the expiration or termination of this Lease.
In the event that Lessee holds over, then the Base Rent shall be increased to
one hundred fifty percent (150%) of the Base Rent applicable during the month
immediately preceding the expiration or termination. Nothing contained herein
shall be construed as consent by Lessor to any holding over by Lessee.

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

28.     COVENANTS AND CONDITIONS; CONSTRUCTION OF AGREEMENT. All provisions of
this Lease to be observed or performed by Lessee are both covenants and
conditions. In construing this Lease, all headings and titles are for the
convenience of the Parties only and shall not be considered a part of this
Lease. Whenever required by the context, the singular shall include the plural
and vice versa. This Lease shall not be construed as if prepared by one of the
Parties, but rather according to its fair meaning as a whole, as if both Parties
had prepared it.

29.     BINDING EFFECT; CHOICE OF LAW. This Lease shall be binding upon the
parties, their personal representatives, successors and assigns and be governed
by the laws of the State in which the Premises are located. Any litigation
between the Parties hereto concerning this Lease shall be initiated in the
county in which the Premises are located.

30.     SUBORDINATION; ATTORNMENT; NON-DISTURBANCE.

        30.1    SUBORDINATION. This Lease and any Option granted hereby shall be
subject and subordinate to any ground lease, mortgage, deed of trust, or other
hypothecation or security device (collectively, "SECURITY DEVICE"), now or
hereafter placed upon the Premises, to any and all advances made on the security
thereof, and to all renewals, modifications, and extensions thereof. Lessee
agrees that the holders of any such Security Devices (in this Lease together
referred to as "Lessor's Lender") shall have no liability or obligation to
perform any of the obligations of Lessor under this Lease. Any Lender may elect
to have this Lease and/or any Option granted hereby superior to the lien of its
Security Device by giving written notice thereof to Lessee, whereupon this Lease
and such Options shall be deemed prior to such Security Device, notwithstanding
the relative dates of the documentation or recordation thereof.

        30.2    ATTORNMENT. Subject to the non-disturbance provisions of
Paragraph 30.3, Lessee agrees to attorn to a Lender or any other party who
acquires ownership of the Premises by reason of a foreclosure of a Security
Device, and that in the event of such foreclosure, such new

                                    PAGE 10
                                                                FORM 204N-R-2/97

<PAGE>   11

owner shall not: (i) be liable for any act or omission of any prior lessor or
with respect to events occurring prior to acquisition of ownership; (ii) be
subject to any offsets or defenses which Lessee might have against any prior
lessor; or (iii) be bound by prepayment of more than one (1) month's rent.

        30.3    NON-DISTURBANCE. With respect to Security Devices entered into
by Lessor after the execution of this Lease, Lessee's subordination of this
Lease shall be subject to receiving a commercially reasonable non-disturbance
agreement (a "NON-DISTURBANCE AGREEMENT") from the Lender which Non-Disturbance
Agreement provides that Lessee's possession of the Premises, and this Lease,
including any options to extend the term hereof, will not be disturbed so long
as Lessee is not in Breach hereof and attorns to the record owner of the
Premises. Further, within sixty (60) days after the execution of this Lease,
Lessor shall use its commercially reasonable efforts to obtain a Non-Disturbance
Agreement from the holder of any pre-existing Security Device which is secured
by the Premises. In the event that Lessor is unable to provide the
Non-Disturbance Agreement within said sixty (60) days, then Lessee may, at
Lessee's option, directly contact Lessor's lender and attempt to negotiate for
the execution and delivery of a Non-Disturbance Agreement.

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

31.     ATTORNEYS' FEES. If any Party or Broker brings an action or proceeding
involving the Premises to enforce the terms hereof or to declare rights
hereunder, the Prevailing Party (as hereafter defined) in any such proceeding,
action, or appeal thereon, shall be entitled to reasonable attorneys' fees. Such
fees may be awarded in the same suit or recovered in a separate suit, whether or
not such action or proceeding is pursued to decision or judgment. The term,
"PREVAILING PARTY" shall include, without limitation, a Party or Broker who
substantially obtains or defeats the relief sought, as the case may be, whether
by compromise, settlement, judgment, or the abandonment by the other Party or
Broker of its claim or defense. The attorneys' fees award shall not be computed
in accordance with any court fee schedule, but shall be such as to fully
reimburse all attorneys' fees reasonably incurred. In addition, Lessor shall be
entitled to attorneys' fees, costs and expenses incurred in the preparation and
service of notices of Default and consultations in connection therewith, whether
or not a legal action is subsequently commenced in connection with such Default
or resulting Breach.

32.     LESSOR'S ACCESS; SHOWING PREMISES; REPAIRS. Lessor and Lessor's agents
shall have the right to enter the Premises at any time, in the case of an
emergency, and otherwise at reasonable times for the purpose of showing the same
to prospective purchasers, lenders, or lessees, and making such alterations,
repairs, improvements or additions to the Premises as Lessor may deem necessary.
All such activities shall be without abatement of rent or liability to Lessee.
Lessor may at any time place on the Premises any ordinary "FOR SALE" signs and
Lessor may during the last six (6) months of the term hereof place on the
Premises any ordinary "FOR LEASE" signs. Lessee may at any time place on or
about the Premises any ordinary "FOR SUBLEASE" sign.

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

34.     SIGNS. Except for ordinary "For Sublease" signs, Lessee shall not place
any sign upon the Premises without Lessor's prior written consent. All signs
must comply with all Applicable Requirements.

35.     TERMINATION; MERGER. Unless specifically stated otherwise in writing by
Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual
termination or cancellation hereof, or a termination hereof by Lessor for Breach
by Lessee, shall automatically terminate any sublease or lesser estate in the
Premises; provided, however, that Lessor may elect to continue any one or all
existing subtenancies. Lessor's failure within ten (10) days following any such
event to elect to the contrary by written notice to the holder of any such
lesser interest, shall constitute Lessor's election to have such event
constitute the termination of such interest.

36.     CONSENTS. Except as otherwise provided herein, wherever in this Lease
the consent of a Party is required to an act by or for the other Party, such
consent shall not be unreasonably withheld or delayed. Lessor's actual
reasonable costs and expenses (including but not limited to architects',
attorneys', engineers' and other consultants' fees) incurred in the
consideration of, or response to, a request by Lessee for any Lessor consent,
including, but not limited to consents to an assignment, a subletting or the
presence or use of a Hazardous Substance, shall be paid by Lessee upon receipt
of an invoice and supporting documentation therefor. Lessor's consent to any
act, assignment or subletting shall not constitute an acknowledgment that no
Default or Breach by Lessee of this Lease exists, nor shall such consent be
deemed a waiver of any then existing Default or Breach, except as may be
otherwise specifically stated in writing by Lessor at the time of such consent.
The failure to specify herein any particular condition to Lessor's consent shall
not preclude the imposition by Lessor at the time of consent of such further or
other conditions as are then reasonable with reference to the particular matter
for which consent is being given. In the event that either Party disagrees with
any determination made by the other hereunder and reasonably requests the
reasons for such determination, the determining party shall furnish its reasons
in writing and in reasonable detail within ten (10) business days following such
request.

37.     GUARANTOR.

        37.1    EXECUTION. The Guarantors, if any, shall each execute a guaranty
in the form most recently published by the American Industrial Real Estate
Association, and each such Guarantor shall have the same obligations as Lessee
under this Lease.

        37.2    DEFAULT. It shall constitute a Default of the Lessee if any
Guarantor fails or refuses, upon request to provide: (a) evidence of the
execution of the guaranty, including the authority of the party signing on
Guarantor's behalf to obligate Guarantor, and in the case of a corporate
Guarantor, a certified copy of a resolution of its board of directors
authorizing the making of such guaranty, (b) current financial statements, (c) a
Tenancy Statement, or (d) written confirmation that the guaranty is still in
effect.

38.     QUIET POSSESSION. Subject to payment by Lessee of the Rent and
performance of all of the covenants, conditions and provisions on Lessee's part
to be observed and performed under this Lease, Lessee shall have quiet
possession and quiet enjoyment of the Premises during the term hereof.

39.     OPTIONS.

        39.1    DEFINITION. "OPTION" shall mean: (a) the right to extend the
term of or renew this Lease or to extend or renew any lease that Lessee has on
other property of Lessor; (b) the right of first refusal or first offer to lease
either the Premises or other property of Lessor; (c) the right to purchase or
the right of first refusal to purchase the Premises or other property of Lessor.

        39.3    MULTIPLE OPTIONS. In the event that Lessee has any multiple
Options to extend or renew this Lease, a later Option cannot be exercised unless
the prior Options have been validly exercised.

        39.4    EFFECT OF DEFAULT ON OPTIONS.

                (a) Lessee shall have no right to exercise an Option: (i) during
the period commencing with the giving of any notice of Default and continuing
until said Default is cured, (ii) during the period of time any Rent is unpaid
(without regard to whether notice thereof is given Lessee), (iii) during the
time Lessee is in Breach of this Lease, or (iv) in the event that Lessee has
been given three (3) or more notices of separate Default, whether or not the
Defaults are cured, during the twelve (12) month period immediately preceding
the exercise of the Option.

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

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

40.     MULTIPLE BUILDINGS. If the Premises are a part of a group of buildings
controlled by Lessor, Lessee agrees that it will observe all reasonable rules
and regulations which Lessor may make from time to time for the management,
safety, and care of said properties, including

                                    PAGE 11
                                                                FORM 204N-R-2/97

<PAGE>   12

the care and cleanliness of the grounds and including the parking, loading and
unloading of vehicles, and that Lessee will pay its fair share of common
expenses incurred in connection therewith.

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

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

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

44.     AUTHORITY. If either Party hereto is a corporation, trust, limited
liability company, partnership, or similar entity, each individual executing
this Lease on behalf of such entity represents and warrants that he or she is
duly authorized to execute and deliver this Lease on its behalf. Each party
shall, within thirty (30) days after request, deliver to the other party
satisfactory evidence of such authority.

45.     CONFLICT. Any conflict between the printed provisions of this Lease and
the typewritten or handwritten provisions shall be controlled by the typewritten
or handwritten provisions.

46.     OFFER. Preparation of this Lease by either Party or their agent and
submission of same to the other Party shall not be deemed an offer to lease to
the other Party. This Lease is not intended to be binding until executed and
delivered by all Parties hereto.

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

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

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

50.     See Addendum 50.

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

________________________________________________________________________________

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

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

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

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

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

Executed at: Monrovia, California        Executed at:___________________________
on: July 1, 1997                         on: July 1, 1997
By LESSOR:                               By LESSEE:
          BOONE/FETTER/OCCIDENTAL I            SOFTWARE TECHNOLOGIES CORPORATION

By: /s/ BLAINE P. FETTER                 By: /s/ JAMES T. DEMETRIADES
    ---------------------------------        -----------------------------------
Name Printed: Blaine P. Fetter           Name Printed: James T. Demetriades
Title: Partner                           Title: President

By:__________________________________    By:____________________________________
Name Printed:________________________    Name Printed:__________________________
Title:_______________________________    Title:_________________________________
Address: 602 East Huntington Drive,      Address:_______________________________
         Ste D                                   _______________________________
         Monrovia, CA 91016              Telephone: (818) 445-7000
Telephone: (818) 305-5530                Facsimile: (818) 445-5548
Facsimile: (818) 305-5541                Federal ID No._________________________
Federal ID No. 95-3947813

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

                                    PAGE 12
                                                                FORM 204N-R-2/97

<PAGE>   13
                       RIDER TO LEASE DATED JUNE 6, 1997
                                 BY AND BETWEEN
                      BOONE/FETTER/OCCIDENTAL I, AS LESSOR
                                      AND
                  SOFTWARE TECHNOLOGIES CORPORATION, AS LESSEE

     The following additional provisions are incorporated in the Lease dated
June 6, 1997 by and between BOONE/FETTER/OCCIDENTAL I ("Lessor") and SOFTWARE
TECHNOLOGIES CORPORATION ("Lessee"). In the event of any conflicts between the
provisions of this Rider and Paragraphs 1 through 49 of the printed lease form,
the provisions of this Rider shall prevail.

     50.  TERM. The lease term for Phase I of Exhibit "B" shall be 72 months
beginning September 1, 1997 and ending August 31, 2003. The lease term for Phase
II of Exhibit "B" shall be 64 months beginning May 1, 1998 and ending August 31,
2003. Lessee may occupy the area shown as Phase II of Exhibit "B" no later than
October 15, 1997.

     51.  BASE RENT.          Months 1 - 2        $0   NNN
                              Months 3 - 8   $36,754   NNN
                              Months 9 - 35  $45,563   NNN
                              Months 36 - 72 $49,902   NNN

     52.  SECURITY DEPOSIT.   Lessee to initially provide $91,126 (two months
rent) as security deposit. Lessor will release $45,563 in the 13th month of the
lease term to Lessee or credit it against the 13th month's rent at Lessee's
option.

     53.  WARRANTIES. Lessor shall warrant the roof membrane for the first two
(2) years of the lease term. Lessor shall warrant the HVAC system for the first
twelve (12) months of lease beginning September 1, 1997 and all other building
systems for sixty (60) days, provided they are not problems created by Lessee's
inappropriate usage or failure to maintain (i.e. in the case of the HVAC, a 24
hour per day usage requires higher frequency of service). All warranties of new
equipment will be passed through to Software Technologies Corporation.

     54.  TENANT IMPROVEMENT ALLOWANCE. Lessor shall provide Lessee with a
Tenant Improvement Allowance not to exceed $417,906.76 including all areas
outlined in Exhibit "B". Lessee shall be responsible for any and all costs
incurred for tenant improvement work in excess of the T.I. Allowance. Lessor
shall be responsible for all repairs to the Entire Premises, where necessary,
and all work required to bring the Entire Premises into compliance with current
building codes

                                       1

<PAGE>   14
including ADA and including the repainting of the building's exterior and the
slurry coating and restriping of the asphalt parking lot prior to September 1,
1997.
     55.  COMMON AREA: USE, MAINTENANCE AND COSTS.
     55.1 COMMON AREAS. Lessor owns and manages a parcel of real property known
as Tech Center East, Phase II, located at the southeast corner of the
intersection of Huntington Drive and California Avenue in Monrovia, California.
Said real property, including land, buildings, common areas, and all other
improvements thereon is herein called the "Entire Premises." Exhibit "A"
attached hereto depicts the Entire Premises. As used herein, "common areas"
shall mean all areas within the Entire Premises which are not specifically
leased or held for lease by Lessor, including, without limiting the foregoing,
parking areas, driveways, sidewalks, loading areas, access and egress roads,
corridors, landscaped and planted areas, and all other improvements provided by
Lessor for the common use of Lessees. Lessor may from time to time change the
size, location, nature, and use of any of the common areas including converting
common areas into leasable areas, and increasing or decreasing common area land
and/or facilities.
     55.2 USE OF COMMON AREAS. Lessee, its employees, agents, customers, and
business invitees shall have the non-exclusive use (in common with other
Lessees) to use the common areas for the purpose intended, subject to such
reasonable rules and regulations relating to such use as Lessor may from time
to time establish. Lessee agrees after notice thereof to abide by such rules
and regulations and to use its best efforts to cause its officers, employees,
agents, customers, and business invitees to conform thereto. Lessor may at any
time temporarily close any common areas to effect construction, repairs, or
changes thereto, or prevent the acquisition of public rights in such areas, and
may do such other acts in and to the common areas as in its reasonable judgment
may be desirable to improve the convenience thereof. Lessee shall not at any
time interfere with rights of the Lessor, or other Lessees, or of any other
person entitled to use the common areas to use any part thereof.
     55.3 MAINTENANCE OF COMMON AREAS. Lessor shall operate, manage, equip,
clean, sweep, remove refuse, light, patrol, repair, replace, and maintain the
common areas for their intended purposes.
     55.4 COMMON AREA COSTS. Lessee shall pay to Lessor, in the manner provided
in Paragraph 55.5, Lessee's pro rata share of all common area costs. Common area
costs shall include all costs and expenses incurred by the Lessor for the
operation

                                       2
<PAGE>   15
and maintenance of the common areas during the lease term (including reasonable
appropriate reserves) including, without limiting the foregoing, costs and
expenses of garden and landscaping; water and sewage charges; maintenance of
signs (other than Lessee's signs); premiums for liability, property damage,
fire and other types of casualty, and workmen's compensation insurance; all
real property taxes and assessments levied on or attributable to the common
areas and all improvements therein; personal property taxes levied on or
attributable to personal property used in connection with the common areas; fees
for required licenses and permits; costs and expenses of repairs, resurfacing,
repaving, maintenance, painting, lighting, exterior light electricity,
cleaning, refuse removal, air conditioner servicing, parking lot sweeping,
window washing, security and similar items; and a reasonably allowance to
Lessor for Lessor's supervision of the common areas (but such allowance for
supervision shall not exceed in any calendar year five percent (5%) of the
total of the aforementioned costs and expenses excluding property taxes and
insurance premiums for such calendar year). Lessor may, however, cause any or
all such services to be provided by an independent contractor or contractors.
Common area costs shall not include depreciation or common area improvements.

        55.5 LESSEE'S SHARE AND PAYMENT. Lessee's pro rata share of the common
area costs referred to in Paragraph 55.4 shall be a fraction of which the
numerator is the square foot area of the premises, as set forth in Paragraph
1.2, and the denominator is the aggregate number of square feet of floor area
on the Entire Premises upon the date the computation is made. The annual pro
rata charge to Lessee shall be paid in monthly installments on the first day of
each calendar month of the lease term after commencement thereof (prorated for
any fractional month) in advance, in an amount estimated by the Lessor.
Lessee's pro rata share of insurance charges are not included in the common area
charges and shall be charged annually, in advance, in accordance with
established policies and procedures of the Lessor. Within one hundred twenty
(120) days after the end of each calendar year of the lease term, Lessor shall
furnish to Lessee an accounting statement in reasonable detail, of the actual
costs and expenses paid or incurred by Lessor during the preceding calendar
year in respect of the common areas, prepared in accordance with generally
accepted accounting principles by Lessor's accountant, applied in accordance
with Paragraph 55.5, and thereupon there shall be an adjustment between Lessor
and Lessee, with payment to or credit given by lessor as the case may require,
to the end that lessor

                                       3
<PAGE>   16
shall receive the entire amount of Lessee's share of such costs and expenses
for such period.

     56.   CONDITION AND REPAIR OF PREMISES.

     56.1  NORMAL WEAR AND TEAR DEFINITION. As defined in this Lease, normal
wear and tear is described as gradual physical deterioration of property due to
normal use, passage of time and weather.

     56.2  RESOLVING CONDITION AND REPAIR OF PREMISES DISPUTES. If a dispute
arises concerning the extent of either Lessee's or Lessor's duty to keep the
Premises or the Common Areas in good order and repair or Lessee's duty to
surrender the Premises in the same condition as received except for ordinary
wear and tear, the parties agree of the following procedure to resolve such
dispute:

           A.  The parties will meet at the premises, within five (5) days of
               telephone notice from either party, for the purpose of resolving
               the dispute, including any dispute as to each party's
               responsibility for any required repairs.

           B.  If either party refuses to meet or if the parties are unable to
               resolve their dispute(s) within three (3) business days, then
               either party may refer the dispute to binding arbitration.

           C.  Such arbitration shall be held at a time mutually convenient for
               the parties at a location in Los Angeles County to be selected by
               the arbitrator. The arbitrator shall be selected from the panel
               of arbitrators maintained by the American Arbitration Association
               in Los Angeles County. The rules of the American Arbitration
               Association shall govern the proceeding. All cost of the
               arbitration shall be borne by the parties equally. The prevailing
               party in the arbitration shall be entitled to reimbursement of
               his reasonable attorney's fees, if such party incurs attorney's
               fees. The decision of the arbitrator shall be binding on all
               parties and may be enforced by any court having jurisdiction.

           D.  Unless both parties agree, no other dispute concerning the Lease
               shall be resolved by arbitration except when specifically
               required under this Lease.

     57.   PARKING. Without any additional rent obligation on the part of the
Lessee, Lessee, its officers, employees, and agents shall be entitled to
parking space for

                                       4
<PAGE>   17
one hundred forty-nine (149) vehicles. Said parking spaces shall be located in
the parking areas for the Entire Premises as depicted on Exhibit "A" hereto and
shall be on an assigned or non-assigned basis as Lessor in its reasonable
discretion shall determine. Said parking spaces shall be limited to vehicles no
longer than standard sized automobiles or pick-up utility vehicles and Lessee
shall not park larger trucks or other large vehicles on the Entire Premises.
Lessee shall not use more than one hundred forty-nine (149) parking spaces; if
Lessee parks additional vehicles in the parking area, Lessor may, in addition
to other remedies under this Lease, require the payment of a reasonable daily
charge for each additional vehicle.

      58.   FINANCIAL STATEMENTS. Lessee to provide Lessor with annual
financial statements three (3) months prior to each anniversary date of lease.

      59.   RIGHT OF FIRST NEGOTIATION. If, as and when, Lessor receives a
written proposal to lease other space in the building, the terms of which are
acceptable to Lessor, Lessor will furnish a copy of same to Software
Technologies Corporation and Software Technologies Corporation will have five
(5) business days after receipt of same in which to decline the opportunity or
to agree to the basic terms contained in the proposal. Thereafter, the parties
would have five (5) business days in which to finalize the terms of an
amendment to this lease adding the additional space to the premises. If an
amendment is not executed during that five (5) business day period through no
fault of Lessor, thereafter, Lessor would be free to lease the vacant space to
the party that made the proposal, or to any other party, provided the terms and
conditions of that lease are no more generous to the tenant than those
contained in the original proposal and otherwise proposed to Software
Technologies Corporation by Lessor.

      60.   RIGHT TO SUBLEASE. The Lessee shall have the right to assign the
Lease (including the option to extend the term) or sublet its entire premises
subject to the Lessor's prior written approval which shall not unreasonably be
withheld, conditioned or delayed. In the unlikely event of any profit* as a
result of subletting or assignment, 50% (fifty percent) of that profit would be
remitted to the Lessor as additional rent. *(Profit to be defined as net of any
cost associated with the releasing of the space over the life of the remaining
term).

      61.   OPTION TO RENEW. Provided Lessee is not in default under any of the
terms and conditions of the Lease, and provided Lessee shall give Lessor
written notice of its election to do so not later than one hundred twenty (120)
days prior to the

                                       5
<PAGE>   18
expiration of the Lease; Lessee shall have the option to extend the term of the
original Lease for an additional period of five (5) years upon the same terms
and conditions as the original lease except that the amount of rental for such
extended period shall be adjusted upwards to reflect 98% of the market rental
rate in 2003.

      61.1  In the event that Lessor and Lessee cannot agree on the new base
rent and the other economic terms of the Lease, or any other new or changed
provision of this Lease, and Lessee has provided timely written notice to
Lessor of Lessee's desire to have the open issues determined through
arbitration, the matter shall be submitted for decision to a panel of three (3)
arbitrators. Lessor and Lessee shall each appoint one arbitrator who shall by
profession be a licensed commercial real estate broker or an MIA real estate
appraiser, and who shall be familiar with the building and have been active
(over the three (3) year period ending on the date of such appointment) in the
brokering or appraisal of properties in the Monrovia, California area. The
determination of the arbitrators shall be limited solely to the issue of
whether Lessor's or Lessee's proposed new base rent for the premises and the
other economic terms of the Lease is the closest to 98% of the actual fair
market base rent for the premises including the other economic terms of the
Lease that would be considered "market" by the arbitrators. For the purposes of
this Lease, the actual fair market base rent for the premises including other
economic terms of the Lease that should be considered "market" to the
arbitrators shall mean the annual current base rent per square foot that a
willing, comparably credit worthy, nonrenewal, nonsublease, nonequity,
nonexpansion, new tenant would pay, and a willing landlord of a comparable
building would accept, in an arms-length transaction, for the same amount of
space, giving appropriate consideration to the use by the parties of the AIR
net lease, to provisions reflecting free rent and/or possible rent abatement
during the lease term, brokerage commissions payable by landlord, if any,
length of the lease term, location of the property in which the premises are
being leased, the building standard work letter and/or tenant improvement
allowance provided, if any, the quality, age and configuration of any usable
existing tenant improvements already in the space, and other generally
applicable terms and conditions of a tenancy for the space in question. Each
such arbitrator shall be appointed within five (5) business days after Lessee's
notice to Lessor of its election to have new base rent and the other economic
terms of the Lease determined by this arbitration procedure. The two
arbitrators so appointed shall within five (5) business days of the date of the
appointment of the last appointed

                                       6

<PAGE>   19
arbitrator agree upon and appoint a third arbitrator who shall be qualified
under the same criteria set forth hereinabove for qualification of the initial
two arbitrators. Failing such agreement, either Lessor of Lessee shall have the
right to petition for the appointment of a third arbitrator by the Presiding
Judge of the Superior Court of the County of Los Angeles. The three arbitrators
shall, within thirty (30) days of the appointment of the third arbitrator,
reach a decision as to whether Lessor's or Lessee's proposed new base rent and
other economic terms of the Lease is the closest to 98% of the actual fair
market base rent for the premises including the other economic terms of the
Lease that they consider to be "market," and shall notify Lessor and Lessee
thereof. The decision of the majority of the three arbitrators shall be binding
upon Lessor and Lessee. The cost of the arbitration shall be paid by Lessor and
Lessee, equally.

                                       7
<PAGE>   20
                                                                       EXHIBIT A

                                  [SITE PLAN]
<PAGE>   21
                                                                       EXHIBIT B

                               [GROUP FLOOR PLAN]
<PAGE>   22
                                                                       EXHIBIT B

                              [SECOND FLOOR PLAN]
<PAGE>   23

    [LOGO]        AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION

           STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE -- NET
                (DO NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS)

1.      BASIC PROVISIONS ("BASIC PROVISIONS").

        1.1     PARTIES: This Lease ("LEASE"), dated for reference purposes
only, March 12, 1999, is made by and between BOONE/FETTER/OCCIDENTAL I
("LESSOR") and SOFTWARE TECHNOLOGIES CORPORATION ("LESSEE"), (collectively the
"PARTIES," or individually a "PARTY").

        1.2     PREMISES: That certain real property, including all improvements
therein or to be provided by Lessor under the terms of this Lease, and commonly
known as 602 EAST HUNTINGTON DRIVE, SUITE "B", MONROVIA, located in the County
of Los Angeles, State of California, and generally described as (describe
briefly the nature of the property and, if applicable, the "PROJECT", if the
property is located within a Project) Approximately 7,484 rentable square feet
("PREMISES"). (See also Paragraph 2)

        1.3     TERM: Four (4) years and five (5) months ("ORIGINAL TERM")
commencing April 1, 1999 ("COMMENCEMENT DATE") and ending August 31, 2003
("EXPIRATION DATE"). (See also Paragraph 3)

        1.4     EARLY POSSESSION: Approximately("EARLY POSSESSION DATE"). (See
also Paragraphs 3.2 and 3.3)

        1.5     BASE RENT: $8,606.60 per month ("BASE RENT"), payable on the
first (1st) day  of each month commencing See Paragraphs 50 of Rider.
(See also Paragraph 4)

[X] If this box is checked, there are provisions in this Lease for the Base Rent
    to be adjusted. (See Rider Paragraph 50)

        1.6     BASE RENT PAID UPON EXECUTION: $8,606.60 as Base Rent for the
period April 1, 1999 to April 30, 1999.

        1.7     SECURITY DEPOSIT: $-0- ("SECURITY DEPOSIT"). (See also Paragraph
5)

        1.8     AGREED USE: Training center/general office (See also Paragraph
6)

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

        1.10    REAL ESTATE BROKERS: (See also Paragraph 15)

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

[ ] _________________________ represents Lessor exclusively ("LESSOR'S BROKER");

[X] CB Richard Ellis, Inc. represents Lessee exclusively ("LESSEE'S BROKER"); or

[ ] _________________________ represents both Lessor and Lessee ("DUAL AGENCY").

                (b) PAYMENT TO BROKERS: Upon execution and delivery of this
Lease by both Parties, Lessor shall pay to the Broker the fee agreed to in their
separate written agreement (or if there is no such agreement, the sum of 5% of
the total Base Rent for the brokerage services rendered by said Broker).

        1.11    GUARANTOR. The obligations of the Lessee under this Lease are to
be guaranteed by _______________________________________________________________
_________________________________________ ("GUARANTOR"). (See also Paragraph 37)

        1.12    ADDENDA AND EXHIBITS. Attached hereto is an Addendum or Addenda
consisting of Paragraphs 50 through 59 and Exhibits "A" Lease Inserts, "B"
Common Area Expense, "C" Entire Premises, "D" Parking, all of which constitute a
part of this Lease.

2.      PREMISES.

        2.1     LETTING. Lessor hereby leases to Lessee, and Lessee hereby
leases from Lessor, the Premises, for the term, at the rental, and upon all of
the terms, covenants and conditions set forth in this Lease. Unless otherwise
provided herein, any statement of size set forth in this Lease, or that may have
been used in calculating rental, is an approximation which the Parties agree is
reasonable and the rental based thereon is not subject to revision whether or
not the actual size is more or less.

        2.2     CONDITION. Lessor shall deliver the Premises to Lessee broom
clean and free of debris on the Commencement Date or the Early Possession Date,
whichever first occurs ("START DATE"), and, so long as the required service
contracts described in Paragraph 7.1(b) below are obtained by Lessee within
thirty (30) days following the Start Date, warrants that the existing
electrical, plumbing, fire sprinkler, lighting, heating, ventilating and air
conditioning systems ("HVAC"), loading doors, if any, and all other such
elements in the Premises, other than those constructed by Lessee, shall be in
good operating condition on said date and that the structural elements of the
roof, bearing walls and foundation of any buildings on the Premises (the
"BUILDING") shall be free of material defects. If a non-compliance with said
warranty exists as of the Start Date, Lessor shall, as Lessor's sole obligation
with respect to such matter, except as otherwise provided in this Lease,
promptly after receipt of written notice from Lessee setting forth with
specificity the nature and extent of such non-compliance, rectify same at
Lessor's expense. If, after the Start Date, Lessee does not give Lessor written
notice of any non-compliance with this warranty within: (i) one year as to the
surface of the roof, (ii) twelve (12) months as to the HVAC systems, (iii)
sixty (60) days as to the remaining systems and other elements of the Building,
correction of such non-compliance shall be the obligation of Lessee at Lessee's
sole cost and expense. (See Rider Paragraph 59)

        2.3     COMPLIANCE. Lessor warrants that the improvements on the
Premises comply with all applicable laws, covenants or restrictions of record,
building codes, regulations and ordinances ("APPLICABLE REQUIREMENTS") in effect
on the Start Date. Said warranty does not apply to the use to which Lessee will
put the Premises or to any Alterations or Utility Installations (as defined in
Paragraph 7.3(a)) made or to be made by Lessee. NOTE: Lessee is responsible for
determining whether or not the zoning is appropriate for Lessee's intended use,
and acknowledges that past uses of the Premises may no longer be allowed. If the
Premises do not comply with said warranty, Lessor shall, except as otherwise
provided, promptly after receipt of written notice from Lessee setting forth
with specificity the nature and extent of such non-compliance, rectify the same
at Lessor's expense. If Lessee does not give Lessor written notice of a
non-compliance with this warranty within six (6) months following the Start
Date, correction of that non-compliance shall be the obligation of Lessee at
Lessee's sole cost and expense. If the Applicable Requirements are hereafter
changed (as opposed to being in existence at the Start Date, which is addressed
in Paragraph 6.2(e) below) so as to require during the term of this Lease the
construction of an addition to or an alteration of the Building, the remediation
of any Hazardous Substance, or the reinforcement or other physical modification
of the Building ("CAPITAL EXPENDITURE"), Lessor and Lessee shall allocate the
cost of such work as follows:

               (a) Subject to Paragraph 2.3(c) below, if such Capital
Expenditures are required as a result of the specific and unique use of the
Premises by Lessee as compared with uses by tenants in general, Lessee shall be
fully responsible for the cost thereof, provided, however that if such Capital
Expenditure is required during the last two (2) years of this Lease and the cost
thereof exceeds six (6) months' Base Rent, Lessee may instead terminate this
Lease unless Lessor notifies Lessee, in writing, within ten (10) days after
receipt of Lessee's termination notice that Lessor has elected to pay the
difference

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between the actual cost thereof and the amount equal to six (6) months' Base
Rent. If Lessee elects termination, Lessee shall immediately cease the use of
the Premises which requires such Capital Expenditure and deliver to Lessor
written notice specifying a termination date at least ninety (90) days
thereafter. Such termination date shall, however, in no event be earlier than
the last day that Lessee could legally utilize the Premises without commencing
such Capital Expenditure.

               (b) If such Capital Expenditure is not the result of the specific
and unique use of the Premises by Lessee (such as, governmentally mandated
seismic modifications), then Lessor and Lessee shall allocate the obligation to
pay for such costs pursuant to the provisions of Paragraph 7.1(c); fails to
tender its share of any such Capital Expenditure, Lessee may advance such funds
and deduct same, with Interest, from Rent until Lessor's share of such costs
have been fully paid. If Lessee is unable to finance Lessor's share, or if the
balance of the Rent due and payable for the remainder of this Lease is not
sufficient to fully reimburse Lessee on an offset basis, Lessee shall have the
right to terminate this Lease upon thirty (30) days written notice to Lessor.

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

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

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

3.      TERM.

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

        3.2     EARLY POSSESSION. If Lessee totally or partially occupies the
Premises prior to the Commencement Date, the obligation to pay Base Rent shall
be abated for the period of such early possession. All other terms of this Lease
(including, but not limited to, the obligations to pay Real Property Taxes and
insurance premiums and to maintain the Premises) shall, however, be in effect
during such period. Any such early possession shall not affect the Expiration
Date.

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

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

4.      RENT.

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

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

5.      SECURITY DEPOSIT. Lessee shall deposit with Lessor upon execution hereof
the Security Deposit as security for Lessee's faithful performance of its
obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults
under this Lease, Lessor may use, apply or retain all or any portion of said
Security Deposit for the payment of any amount due Lessor or to reimburse or
compensate Lessor for any liability, expense, loss or damage which Lessor may
suffer or incur by reason thereof. If Lessor uses or applies all or any portion
of said Security Deposit, Lessee shall within ten (10) days after written
request therefor deposit monies with Lessor sufficient to restore said Security
Deposit to the full amount required by this Lease. If the Base Rent increases
during the term of this Lease, Lessee shall, upon written request from Lessor,
deposit additional monies with Lessor so that the total amount of the Security
Deposit shall at all times bear the same proportion to the increased Base Rent
as the initial Security Deposit bore to the initial Base Rent. Should the Agreed
Use be amended to accommodate a material change in the business of Lessee or to
accommodate a sublessee or assignee, Lessor shall have the right to increase the
Security Deposit to the extent necessary, in Lessor's reasonable judgment, to
account for any increased wear and tear that the Premises may suffer as a result
thereof. If a change in control of Lessee occurs during this Lease and following
such change the financial condition of Lessee is, in Lessor's reasonable
judgment, significantly reduced, Lessee shall deposit such additional monies
with Lessor as shall be sufficient to cause the Security Deposit to be at a
commercially reasonable level based on said change in financial condition.
Lessor shall not be required to keep the Security Deposit separate from its
general accounts. Within fourteen (14) days after the expiration or termination
of this Lease, if Lessor elects to apply the Security Deposit only to unpaid
Rent, and otherwise within thirty (30) days after the Premises have been vacated
pursuant to Paragraph 7.4(c) below, Lessor shall return that portion of the
Security Deposit not used or applied by Lessor. No part of the Security Deposit
shall be considered to be held in trust, to bear interest or to be prepayment
for any monies to be paid by Lessee under this Lease.

6.      USE.

        6.1     USE. Lessee shall use and occupy the Premises only for the
Agreed Use, or any other legal use which is reasonably comparable thereto, and
for no other purpose. Lessee shall not use or permit the use of the Premises in
a manner that is unlawful, creates damage, waste or a nuisance, or that disturbs
owners and/or occupants of, or causes damage to neighboring properties. Lessor
shall not unreasonably withhold or delay its consent to any written request for
a modification of the Agreed Use, so long as the same will not impair the
structural integrity of the improvements on the Premises or the mechanical or
electrical systems therein, is not significantly more burdensome to the
Premises. If Lessor elects to withhold consent, Lessor shall within five (5)
business days after such request give written notification of same, which notice
shall include an explanation of Lessor's objections to the change in use.

        6.2     HAZARDOUS SUBSTANCES.

                (a) REPORTABLE USES REQUIRE CONSENT. The term "HAZARDOUS
SUBSTANCE" as used in this Lease shall mean any product, substance, or waste
whose presence, use, manufacture, disposal, transportation, or release, either
by itself or in combination with other materials expected to be on the Premises,
is either: (i) potentially injurious to the public health, safety or welfare,
the environment or the Premises, (ii) regulated or monitored by any governmental
authority, or (iii) a basis for potential liability of Lessor to any
governmental agency or third party under any applicable statute or common law

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theory. Hazardous Substances shall include, but not be limited to, hydrocarbons,
petroleum, gasoline, and/or crude oil or any products, by-products or fractions
thereof. Lessee shall not engage in any activity in or on the Premises which
constitutes a Reportable Use of Hazardous Substances without the express prior
written consent of Lessor and timely compliance (at Lessee's expense) with all
Applicable Requirements. "Reportable Use" shall mean (i) the installation or use
of any above or below ground storage tank, (ii) the generation, possession,
storage, use, transportation, or disposal of a Hazardous Substance that requires
a permit from, or with respect to which a report, notice, registration or
business plan is required to be filed with, any governmental authority, and/or
(iii) the presence at the Premises of a Hazardous Substance with respect to
which any Applicable Requirements requires that a notice be given to persons
entering or occupying the Premises or neighboring properties. Notwithstanding
the foregoing, Lessee may use any ordinary and customary materials reasonably
required to be used in the normal course of the Agreed Use, so long as such use
is in compliance with all Applicable Requirements, is not a Reportable Use, and
does not expose the Premises or neighboring property to any meaningful risk of
contamination or damage or expose Lessor to any liability therefor. In addition,
Lessor may condition its consent to any Reportable Use upon receiving such
additional assurances as Lessor reasonably deems necessary to protect itself,
the public, the Premises and/or the environment against damage, contamination,
injury and/or liability, including, but not limited to, the installation (and
removal on or before Lease expiration or termination) of protective
modifications (such as concrete encasements) and/or increasing the Security
Deposit.

               (b) DUTY TO INFORM LESSOR. If Lessee knows, or has reasonable
cause to believe, that a Hazardous Substance has come to be located in, on,
under or about the Premises, other than as previously consented to by Lessor,
Lessee shall immediately give written notice of such fact to Lessor, and provide
Lessor with a copy of any report, notice, claim or other documentation which it
has concerning the presence of such Hazardous Substance.

               (c) LESSEE REMEDIATION. Lessee shall not cause or permit any
Hazardous Substance to be spilled or released in, on, under, or about the
Premises (including through the plumbing or sanitary sewer system) and shall
promptly, at Lessee's expense, take all investigatory and/or remedial action
reasonably recommended, whether or not formally ordered or required, for the
cleanup of any contamination of, and for the maintenance, security and/or
monitoring of the Premises or neighboring properties, that was caused or
materially contributed to by Lessee, or pertaining to or involving any Hazardous
Substance brought onto the Premises during the term of this Lease, by or for
Lessee, or any third party.

               (d) LESSEE INDEMNIFICATION. Lessee shall indemnify, defend and
hold Lessor, its agents, employees, lenders and ground lessor, if any, harmless
from and against any and all loss of rents and/or damages, liabilities,
judgments, claims, expenses, penalties, and attorneys' and consultants' fees
arising out of or involving any Hazardous Substance brought onto the Premises by
or for Lessee, or any third party (provided, however, that Lessee shall have no
liability under this Lease with respect to underground migration of any
Hazardous Substance under the Premises from adjacent properties). Lessee's
obligations shall include, but not be limited to, the effects of any
contamination or injury to person, property or the environment created or
suffered by Lessee, and the cost of investigation, removal, remediation,
restoration and/or abatement, and shall survive the expiration or termination of
this Lease. NO TERMINATION, CANCELLATION OR RELEASE AGREEMENT ENTERED INTO BY
LESSOR AND LESSEE SHALL RELEASE LESSEE FROM ITS OBLIGATIONS UNDER THIS LEASE
WITH RESPECT TO HAZARDOUS SUBSTANCES, UNLESS SPECIFICALLY SO AGREED BY LESSOR IN
WRITING AT THE TIME OF SUCH AGREEMENT.

               (e) LESSOR INDEMNIFICATION. Lessor and its successors and assigns
shall indemnify, defend, reimburse and hold Lessee, its employees and lenders,
harmless from and against any and all environmental damages, including the cost
of remediation, which existed as a result of Hazardous Substances on the
Premises prior to the Start Date or which are caused by the gross negligence or
willful misconduct of Lessor, its agents or employees. Lessor's obligations, as
and when required by the Applicable Requirements, shall include, but not be
limited to, the cost of investigation, removal, remediation, restoration and/or
abatement, and shall survive the expiration or termination of this Lease.

               (f) INVESTIGATIONS AND REMEDIATIONS. Lessor shall retain the
responsibility and pay for any investigations or remediation measures required
by governmental entities having jurisdiction with respect to the existence of
Hazardous Substances on the Premises prior to the Start Date, unless such
remediation measure is required as a result of Lessee's use (including
"Alterations", as defined in Paragraph 7.3(a) below) of the Premises, in which
event Lessee shall be responsible for such payment. Lessee shall cooperate fully
in any such activities at the request of Lessor, including allowing Lessor and
Lessor's agents to have reasonable access to the Premises at reasonable times in
order to carry out Lessor's investigative and remedial responsibilities.

               (g) LESSOR TERMINATION OPTION. If a Hazardous Substance Condition
occurs during the term of this Lease, unless Lessee is legally responsible
therefor (in which case Lessee shall make the investigation and remediation
thereof required by the Applicable Requirements and this Lease shall continue in
full force and effect, but subject to Lessor's rights under Paragraph 6.2(d) and
Paragraph 13), Lessor may, at Lessor's option, either (i) investigate and
remediate such Hazardous Substance Condition, if required, as soon as reasonably
possible at Lessor's expense, in which event this Lease shall continue in full
force and effect, or (ii) if the estimated cost to remediate such condition
exceeds twelve (12) times the then monthly Base Rent or $100,000, whichever is
greater, give written notice to Lessee, within thirty (30) days after receipt by
Lessor of knowledge of the occurrence of such Hazardous Substance Condition, of
Lessor's desire to terminate this Lease as of the date sixty (60) days following
the date of such notice. In the event Lessor elects to give a termination
notice, Lessee may, within ten (10) days thereafter, give written notice to
Lessor of Lessee's commitment to pay the amount by which the cost of the
remediation of such Hazardous Substance Condition exceeds an amount equal to
twelve (12) times the then monthly Base Rent or $100,000, whichever is greater.
Lessee shall provide Lessor with said funds or satisfactory assurance thereof
within thirty (30) days following such commitment. In such event, this Lease
shall continue in full force and effect, and Lessor shall proceed to make such
remediation as soon as reasonably possible after the required funds are
available. If Lessee does not give such notice and provide the required funds or
assurance thereof within the time provided, this Lease shall terminate as of the
date specified in Lessor's notice of termination.

        6.3     LESSEE'S COMPLIANCE WITH APPLICABLE REQUIREMENTS. Except as
otherwise provided in this Lease, Lessee shall, at Lessee's sole expense, fully,
diligently and in a timely manner, materially comply with all Applicable
Requirements, the requirements of any applicable fire insurance underwriter or
rating bureau, and the recommendations of Lessor's engineers and/or consultants
which relate in any manner to the Premises, without regard to whether said
requirements are now in effect or become effective after the Start Date. Lessee
shall, within ten (10) days after receipt of Lessor's written request, provide
Lessor with copies of all permits and other documents, and other information
evidencing Lessee's compliance with any Applicable Requirements specified by
Lessor, and shall immediately upon receipt, notify Lessor in writing (with
copies of any documents involved) of any threatened or actual claim, notice,
citation, warning, complaint or report pertaining to or involving the failure of
Lessee or the Premises to comply with any Applicable Requirements.

        6.4     INSPECTION; COMPLIANCE. Lessor and Lessor's "Lender" (as defined
in Paragraph 30 below) and consultants shall have the right to enter into
Premises at any time, in the case of an emergency, and otherwise at reasonable
times, for the purpose of inspecting the condition of the Premises and for
verifying compliance by Lessee with this Lease. The cost of any such inspections
shall be paid by Lessor, unless a violation of Applicable Requirements, or a
contamination is found to exist or be imminent, or the inspection is requested
or ordered by a governmental authority. In such case, Lessee shall upon request
reimburse Lessor for the cost of such inspections, so long as such inspection is
reasonably related to the violation or contamination.

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

        7.1     LESSEE'S OBLIGATIONS.

                (a) IN GENERAL. Subject to the provisions of Paragraph 2.2
(Condition), 2.3 (Compliance), 6.3 (Lessee's Compliance with Applicable
Requirements), 7.2 (Lessor's Obligations), 9 (Damage or Destruction), 14
(Condemnation), Lessee shall, at Lessee's sole expense, keep the Premises,
Utility Installations, and Alterations in good order, condition and repair
(whether or not the portion of the Premises requiring repairs, or the means of
repairing the same, are reasonably or readily accessible to Lessee, and whether
or not the need for such repairs occurs as a result of Lessee's use, any prior
use, the elements or the age of such portion of the Premises), including, but
not limited to, all equipment or facilities, such as plumbing, heating,
ventilating, air-conditioning, electrical, lighting facilities, boilers,
pressure vessels, fire protection system, fixtures, walls (interior and
exterior), ceilings, roofs, floors, windows, doors, plate glass, skylights,
landscaping, driveways, parking lots, fences, retaining walls, signs, sidewalks
and parkways located in, on, or adjacent to the Premises. Lessee, in keeping the
Premises in good order, condition and repair, shall exercise and perform good
maintenance practices. Lessee's obligations shall include restorations,
replacements or renewals when necessary to keep the Premises and all
improvements thereon or a part thereof in good order, condition and state of
repair. Lessee shall, during the term of this Lease, keep the exterior
appearance of the Building in a first-class condition consistent with the
exterior appearance of other similar facilities of comparable age and size in
the vicinity, including, when necessary, the exterior repainting of the
Building.

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               (See Rider Paragraph 53)

        7.2     LESSOR'S OBLIGATIONS. Subject to the provisions of Paragraphs
2.2 (Condition), 2.3 (Compliance), 9 (Damage or Destruction) and 14
(Condemnation), it is intended by the Parties hereto that Lessor have no
obligation, in any manner whatsoever, to repair and maintain the Premises, or
the equipment therein, all of which obligations are intended to be that of the
Lessee. It is the intention of the Parties that the terms of this Lease govern
the respective obligations of the Parties as to maintenance and repair of the
Premises, and they expressly waive the benefit of any statute now or hereafter
in effect to the extent it is inconsistent with the terms of this Lease.

        7.3     UTILITY INSTALLATIONS; TRADE FIXTURES; ALTERATIONS.

               (a) DEFINITIONS; CONSENT REQUIRED. The term "UTILITY
INSTALLATIONS" refers to all floor and window coverings, air lines, power
panels, electrical distribution, security and fire protection systems,
communication systems, lighting fixtures, HVAC equipment, plumbing, and fencing
in or on the Premises. The term "TRADE FIXTURES" shall mean Lessee's machinery
and equipment that can be removed without doing material damage to the Premises.
The term "ALTERATIONS" shall mean any modification of the improvements, other
than Utility Installations or Trade Fixtures, whether by addition or deletion.
"LESSEE OWNED ALTERATIONS AND/OR UTILITY INSTALLATIONS" are defined as
Alterations and/or Utility Installations made by Lessee that are not yet owned
by Lessor pursuant to Paragraph 7.4(a). Lessee shall not make any Alterations or
Utility Installations to the Premises without Lessor's prior written consent.
Lessee may, however, make non-structural Utility Installations to the interior
of the Premises (excluding the roof) without such consent but upon notice to
Lessor, as long as they are not visible from the outside, do not involve
puncturing, relocating or removing the roof or any existing walls, and the
cumulative cost thereof during this Lease as extended does not exceed $50,000 in
any one instance (See insert 7.3).

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

               (c) INDEMNIFICATION. Lessee shall pay, when due, all claims for
labor or materials furnished or alleged to have been furnished to or for Lessee
at or for use on the Premises, which claims are or may be secured by any
mechanic's or materialmen's lien against the Premises or any interest therein.
Lessee shall give Lessor not less than ten (10) days' notice prior to the
commencement of any work in, on or about the Premises, and Lessor shall have the
right to post notices of non-responsibility. If Lessee shall contest the
validity of any such lien, claim or demand, then Lessee shall, at its sole
expense defend and protect itself, Lessor and the Premises against the same and
shall pay and satisfy any such adverse judgment that may be rendered thereon
before the enforcement thereof. If Lessor shall require, Lessee shall furnish a
surety bond in an amount equal to one and one-half times the amount of such
contested lien, claim or demand, indemnifying Lessor against liability for the
same. If Lessor elects to participate in any such action, Lessee shall pay
Lessor's attorneys' fees and costs.

        7.4     OWNERSHIP; REMOVAL; SURRENDER; AND RESTORATION.

               (a) OWNERSHIP. Subject to Lessor's right to require removal or
elect ownership as hereinafter provided, all Alterations and Utility
Installations made by Lessee shall be the property of Lessee, but considered a
part of the Premises. Unless otherwise instructed per Paragraph 7.4(b) hereof,
all Lessee Owned Alterations and Utility Installations shall, at the expiration
or termination of this Lease, become the property of Lessor and be surrendered
by Lessee with the Premises. Notwithstanding the foregoing, Lessee shall have
the right (but not the obligation) to remove any such Lessee Owned Alterations
and Utility Installations, provided that Lessee repairs all damage caused by
such removal.

               (b) REMOVAL. By delivery to Lessee of written notice from Lessor
not earlier than ninety (90) and not later than thirty (30) days prior to the
end of the term of this Lease, Lessor may require that any or all Lessee Owned
Alterations or Utility Installations be removed by the expiration or termination
of this Lease. Lessor may require the removal at any time of all or any part of
any Lessee Owned Alterations or Utility Installations made without the required
consent. Notwithstanding the foregoing, Lessor shall not have the right to
require that Lessee remove any Lessee Owned Alterations, Utility Installations,
or other improvements existing in the Premises as of the Effective Date, nor any
Lessee Owned Alterations, Utility Installations or other improvements paid for
in whole or in part by the $35,000.00 Tenant Improvement Allowance provided by
Lessor.

               (c) SURRENDER/RESTORATION. Lessee shall surrender the Premises by
the Expiration Date or any earlier termination date, with all of the
improvements, parts and surfaces thereof broom clean and free of debris, and in
good operating order, condition and state of repair, ordinary wear and tear
excepted. "Ordinary wear and tear" shall not include any damage or deterioration
that would have been prevented by good maintenance practice. Lessee shall repair
any damage occasioned by the installation, maintenance or removal of Trade
Fixtures, Lessee Owned Alterations and/or Utility Installations, furnishings,
and equipment as well as the removal of any storage tank installed by or for
Lessee, and the removal, replacement, or remediation of any soil, material or
groundwater contaminated by Lessee. Trade Fixtures shall remain the property of
Lessee and shall be removed by Lessee. The failure by Lessee to timely vacate
the Premises pursuant to this Paragraph 7.4(c) without the express written
consent of Lessor shall constitute a holdover under the provisions of Paragraph
26 below.

8.      INSURANCE; INDEMNITY.

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

        8.2     LIABILITY INSURANCE.

                (a) CARRIED BY LESSEE. Lessee shall obtain and keep in force a
Commercial General Liability Policy of Insurance protecting Lessee and Lessor
against claims for bodily injury, personal injury and property damage based upon
or arising out of the ownership, use, occupancy or maintenance of the Premises
and all areas appurtenant thereto. Such insurance shall be on an occurrence
basis providing single limit coverage in an amount not less than $2,000,000 per
occurrence with an "ADDITIONAL INSURED -- MANAGERS OR LESSORS OF PREMISES
ENDORSEMENT" and contain the "AMENDMENT OF THE POLLUTION EXCLUSION ENDORSEMENT"
for damage caused by heat, smoke or fumes from a hostile fire. The Policy shall
not contain any intra-insured exclusions as between insured persons or
organizations, but shall include coverage for liability assumed under this Lease
as an "insured contract" for the performance of Lessee's indemnity obligations
under this Lease. The limits of said insurance shall not, however, limit the
liability of Lessee nor relieve Lessee of any obligation hereunder. All
insurance carried by Lessee shall be primary to and not contributory with any
similar insurance carried by Lessor, whose insurance shall be considered excess
insurance only.

                (b) CARRIED BY LESSOR. Lessor shall maintain liability insurance
as described in Paragraph 8.2(a), in addition to, and not in lieu of, the
insurance required to be maintained by Lessee. Lessee shall not be named as an
additional insured therein.

        8.3     PROPERTY INSURANCE -- BUILDING, IMPROVEMENTS AND RENTAL VALUE.

                (a) BUILDING AND IMPROVEMENTS. The Insuring Party shall obtain
and keep in force a policy or policies in the name of Lessor, with loss payable
to Lessor, any groundlessor, and to any Lender(s) insuring loss or damage to the
Premises. The amount of such insurance shall be equal to the full replacement
cost of the Premises, as the same shall exist from time to time, or the amount
required by any Lenders, but in no event more than the commercially reasonable
and available insurable value thereof. If Lessor is the Insuring Party, however,
Lessee Owned Alterations and Utility Installations,

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Trade Fixtures, and Lessee's personal property shall be insured by Lessee under
Paragraph 8.4 rather than by Lessor. If the coverage is available and
commercially appropriate, such policy or policies shall insure against all risks
of direct physical loss or damage (except the perils of flood and/or earthquake
unless required by a Lender), including coverage for debris removal and the
enforcement of any Applicable Requirements requiring the upgrading, demolition,
reconstruction or replacement of any portion of the Premises as the result of a
covered loss. Said policy or policies shall also contain an agreed valuation
provision in lieu of any coinsurance clause, waiver of subrogation, and
inflation guard protection causing an increase in the annual property insurance
coverage amount by a factor of not less than the adjusted U.S. Department of
Labor Consumer Price Index for All Urban Consumers for the city nearest to where
the Premises are located. If such insurance coverage has a deductible clause,
the deductible amount shall not exceed $1,000 per occurrence, and Lessee shall
be liable for such deductible amount in the event of an Insured Loss.

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

                (c) ADJACENT PREMISES. If the Premises are part of a larger
building, or of a group of buildings owned by Lessor which are adjacent to the
Premises, the Lessee shall pay for any increase in the premiums for the property
insurance of such building or buildings if said increase is caused by Lessee's
acts, omissions, use or occupancy of the Premises.

        8.4     LESSEE'S PROPERTY/BUSINESS INTERRUPTION INSURANCE.

                (a) PROPERTY DAMAGE. Lessee shall obtain and maintain insurance
coverage on all of Lessee's personal property, Trade Fixtures, and Lessee Owned
Alterations and Utility Installations. Such insurance shall be full replacement
cost coverage with a deductible of not to exceed $1,000 per occurrence. The
proceeds from any such insurance shall be used by Lessee for the replacement of
personal property, Trade Fixtures and Lessee Owned Alterations and Utility
Installations. Lessee shall provide Lessor with written evidence that such
insurance is in force.

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

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

        8.5     INSURANCE POLICIES. Insurance required herein shall be by
companies duly licensed or admitted to transact business in the state where the
Premises are located, and maintaining during the policy term a "General
Policyholders Rating" of at least B+, V, as set forth in the most current issue
of "Best's Insurance Guide", or such other rating as may be required by a
Lender. Lessee shall not do or permit to be done anything which invalidates the
required insurance policies. Lessee shall, prior to the Start Date, deliver to
Lessor certified copies of policies of such insurance or certificates evidencing
the existence and amounts of the required insurance. No such policy shall be
cancelable or subject to modification except after thirty (30) days prior
written notice to Lessor. Lessee shall, at least thirty (30) days prior to the
expiration of such policies, furnish Lessor with evidence of renewals or
"insurance binders" evidencing renewal thereof, or Lessor may order such
insurance and charge the cost thereof to Lessee, which amount shall be payable
by Lessee to Lessor upon demand. Such policies shall be for a term of at least
one year, or the length of the remaining term of this Lease, whichever is less.
If either Party shall fail to procure and maintain the insurance required to be
carried by it, the other Party may, but shall not be required to, procure and
maintain the same.

        8.6     WAIVER OF SUBROGATION. Notwithstanding anything to the contrary
in this Lease, Lessee and Lessor each hereby release and relieve the other, and
waive their entire right to recover damages against the other, for loss of or
damage to its property arising out of or incident to the perils required to be
insured against herein. The effect of such releases and waivers is not limited
by the amount of insurance carried or required, or by any deductibles applicable
hereto. The Parties agree to have their respective property damage insurance
carriers waive any right to subrogation that such companies may have against
Lessor or Lessee, as the case may be, so long as the insurance is not
invalidated thereby.

        8.7     INDEMNITY. Except for Lessor's gross negligence or willful
misconduct, Lessee shall indemnify, protect, defend and hold harmless the
Premises, Lessor and its agents, Lessor's master or ground lessor, partners and
Lenders, from and against any and all claims, loss of rents and/or damages,
liens, judgments, penalties, attorneys' and consultants' fees, expenses and/or
liabilities arising out of, involving, or in connection with, the use and/or
occupancy of the Premises by Lessee. If any action or proceeding is brought
against Lessor by reason of any of the foregoing matters, Lessee shall upon
notice defend the same at Lessee's expense by counsel reasonably satisfactory to
Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not
have first paid any such claim in order to be defended or indemnified.

        8.8     EXEMPTION OF LESSOR FROM LIABILITY. Lessor shall not be liable
for injury or damage to the person or goods, wares, merchandise or other
property of Lessee, Lessee's employees, contractors, invitees, customers, or any
other person in or about the Premises, whether such damage or injury is caused
by or results from fire, steam, electricity, gas, water or rain, or from the
breakage, leakage, obstruction or other defects of pipes, fire sprinklers,
wires, appliances, plumbing, HVAC or lighting fixtures, or from any other cause,
whether the said injury or damage results from conditions arising upon the
Premises or upon other portions of the Building of which the Premises are a
part, or from other sources or places. Lessor shall not be liable for any
damages arising from any act or neglect of any other tenant of Lessor.
Notwithstanding Lessor's negligence or breach of this Lease, Lessor shall under
no circumstances be liable for injury to Lessee's business or for any loss of
income or profit therefrom.

9.      DAMAGE OR DESTRUCTION.

        9.1     DEFINITIONS.

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

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

                (c) "INSURED LOSS" shall mean damage or destruction to
improvements on the Premises, other than Lessee Owned Alterations and Utility
Installations and Trade Fixtures, which was caused by an event required to be
covered by the insurance described in Paragraph 8.3(a), irrespective of any
deductible amounts or coverage limits involved.

                (d) "REPLACEMENT COST" shall mean the cost to repair or rebuild
the improvements owned by Lessor at the time of the occurrence to their
condition existing immediately prior thereto, including demolition, debris
removal and upgrading required by the operation of Applicable Requirements, and
without deduction for depreciation.

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

        9.2     PARTIAL DAMAGE -- INSURED LOSS. (See Rider Paragraph 54)
Notwithstanding the foregoing, if the required insurance was not in force or the
insurance proceeds are not sufficient to effect such repair, the Insuring Party
shall promptly contribute the shortage in proceeds (except as to the deductible
which is Lessee's responsibility) as and when required to complete said repairs.
In the event, however, such shortage was due to the fact that, by reason of the
unique nature of the improvements, full replacement cost insurance coverage was
not commercially reasonable and available, Lessor shall have no obligation to
pay for the shortage in insurance proceeds or to fully restore the unique
aspects of the Premises unless Lessee provides Lessor with the funds to cover
same, or adequate assurance thereof, within ten (10) days following receipt of
written notice of such shortage and request therefor. If Lessor receives said
funds or adequate assurance thereof within said ten (10) day period, the party
responsible for making the repairs shall complete them as soon as reasonably
possible and this Lease shall remain in full force and effect. If such funds or
assurance are not received, Lessor may nevertheless elect by written notice to
Lessee within ten (10) days thereafter to: (i) make such restoration and repair
as is commercially reasonable with Lessor paying any shortage in proceeds, in
which case this Lease shall remain in full force and effect, or have this Lease
terminate thirty (30) days thereafter. Lessee shall not be entitled to
reimbursement of

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any funds contributed by Lessee to repair any such damage or destruction.
Premises Partial Damage due to flood or earthquake shall be subject to Paragraph
9.3, notwithstanding that there may be some insurance coverage, but the net
proceeds of any such insurance shall be made available for the repairs if made
by either Party.

        9.3     PARTIAL DAMAGE -- UNINSURED LOSS. (See Rider Paragraph 55) Such
termination shall be effective sixty (60) days following the date of such
notice. In the event Lessor elects to terminate this Lease, Lessee shall have
the right within ten (10) days after receipt of the termination notice to give
written notice to Lessor of Lessee's commitment to pay for the repair of such
damage without reimbursement from Lessor. Lessee shall provide Lessor with said
funds or satisfactory assurance thereof within thirty (30) days after making
such commitment. In such event this Lease shall continue in full force and
effect, and Lessor shall proceed to make such repairs as soon as reasonably
possible after the required funds are available. If Lessee does not make the
required commitment, this Lease shall terminate as of the date specified in the
termination notice.

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

        9.5     DAMAGE NEAR END OF TERM. If at any time during the last six (6)
months of this Lease there is damage for which the cost to repair exceeds one
(1) month's Base Rent, whether or not an Insured Loss, Lessor may terminate this
Lease effective sixty (60) days following the date of occurrence of such damage
by giving a written termination notice to Lessee within thirty (30) days after
the date of occurrence of such damage. Notwithstanding the foregoing, if Lessee
at that time has an exercisable option to extend this Lease or to purchase the
Premises, then Lessee may preserve this Lease by, (a) exercising such option and
(b) providing Lessor with any shortage in insurance proceeds (or adequate
assurance thereof) needed to make the repairs on or before the earlier of (i)
the date which is ten days after Lessee's receipt of Lessor's written notice
purporting to terminate this Lease, or (ii) the day prior to the date upon which
such option expires. If Lessee duly exercises such option during such period and
provides Lessor with funds (or adequate assurance thereof) to cover any shortage
in insurance proceeds, Lessor shall, at Lessor's commercially reasonable
expense, repair such damage as soon as reasonably possible and this Lease shall
continue in full force and effect. If Lessee fails to exercise such option and
provide such funds or assurance during such period, then this Lease shall
terminate on the date specified in the termination notice and Lessee's option
shall be extinguished.

        9.6     ABATEMENT OF RENT; LESSEE'S REMEDIES.

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

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

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

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

10.     REAL PROPERTY TAXES.

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

        10.2

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

                (b) ADVANCE PAYMENT. In the event Lessee incurs a late charge on
any Rent payment, Lessor may, at Lessor's option, estimate the current Real
Property Taxes, and require that such taxes be paid in advance to Lessor by
Lessee, either: (i) in a lump sum amount equal to the installment due, at least
twenty (20) days prior to the applicable delinquency date, or (ii) monthly in
advance with the payment of the Base Rent. If Lessor elects to require payment
monthly in advance, the monthly payment shall be an amount equal to the amount
of the estimated installment of taxes divided by the number of months remaining
before the month in which said installment becomes delinquent. When the actual
amount of the applicable tax bill is known, the amount of such equal monthly
advance payments shall be adjusted as required to provide the funds needed to
pay the applicable taxes. If the amount collected by Lessor is insufficient to
pay such Real Property Taxes when due, Lessee shall pay Lessor, upon demand,
such additional sums as are necessary to pay such obligations. All monies paid
to Lessor under this Paragraph may be intermingled with other monies of Lessor
and shall not bear interest. In the event of a Breach by Lessee in the
performance of its obligations under this Lease, then any balance of funds paid
to Lessor under the provisions of this Paragraph may, at the option of Lessor,
be treated as an additional Security Deposit.

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

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

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

12.     ASSIGNMENT AND SUBLETTING.

        12.1    LESSOR'S CONSENT REQUIRED. (See Rider Paragraph 57)

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13.     DEFAULT; BREACH; REMEDIES.

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

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

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

                (c) The failure by Lessee to provide (i) reasonable written
evidence of compliance with Applicable Requirements, (ii) the service contracts,
(iii) the rescission of an unauthorized assignment or subletting, (iv) a Tenancy
Statement, (v) a requested subordination, (vi) evidence concerning any guaranty
and/or Guarantor, (vii) any document requested under Paragraph 42 (easements),
or (viii) any other documentation or information which Lessor may reasonably
require of Lessee under the terms of this Lease, where any such failure
continues for a period of ten (10) days following written notice to Lessee.

                (d) A Default by Lessee as to the terms, covenants, conditions
or provisions of this Lease, or of the rules adopted under Paragraph 40 hereof,
other than those described in subparagraphs 13.1(a), (b) or (c), above, where
such Default continues for a period of thirty (30) days after written notice;
provided, however, that if the nature of Lessee's Default is such that more than
thirty (30) days are reasonably required for its cure, then it shall not be
deemed to be a Breach if Lessee commences such cure within said thirty (30) day
period and thereafter diligently prosecutes such cure to completion.

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

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

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

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execution of this Lease.

        13.2    REMEDIES. If Lessee fails to perform any of its affirmative
duties or obligations, within ten (10) days after written notice (or in case of
an emergency, without notice), Lessor may, at its option, perform such duty or
obligation on Lessee's behalf, including but not limited to the obtaining of
reasonably required bonds, insurance policies, or governmental licenses, permits
or approvals. The costs and expenses of any such performance by Lessor shall be
due and payable by Lessee upon receipt of invoice therefor. If any check given
to Lessor by Lessee shall not be honored by the bank upon which it is drawn,
Lessor, at its option, may require all future payments to be made by Lessee to
be by cashier's check. In the event of a Breach, Lessor may, with or without
further notice or demand, and without limiting Lessor in the exercise of any
right or remedy which Lessor may have by reason of such Breach:

                (a) Terminate Lessee's right to possession of the Premises by
any lawful means, in which case this Lease shall terminate and Lessee shall
immediately surrender possession to Lessor. In such event Lessor shall be
entitled to recover from Lessee: (i) the unpaid Rent which had been earned at
the time of termination; (ii) the worth at the time of award of the amount by
which the unpaid rent which would have been earned after termination until the
time of award exceeds the amount of such rental loss that the Lessee proves
could have been reasonably avoided; (iii) the worth at the time of award of the
amount by which the unpaid rent for the balance of the term after the time of
award exceeds the amount of such rental loss that the Lessee proves could be
reasonably avoided; and (iv) any other amount necessary to compensate Lessor for
all the detriment proximately caused by the Lessee's failure to perform its
obligations under this Lease or which in the ordinary course of things would be
likely to result therefrom, including but not limited to the cost of recovering
possession of the Premises, expenses of reletting, including necessary
renovation and alteration of the Premises, reasonable attorneys' fees, and that
portion of any leasing commission paid by Lessor in connection with this Lease
applicable to the unexpired term of this Lease. The worth at the time of award
of the amount referred to in provision (iii) of the immediately preceding
sentence shall be computed by discounting such amount at the discount rate of
the Federal Reserve Bank of the District within which the Premises are located
at the time of award plus one percent (1%). Efforts by Lessor to mitigate
damages caused by Lessee's Breach of this Lease shall not waive Lessor's right
to recover damages under Paragraph 12. If termination of this Lease is obtained
through the provisional remedy of unlawful detainer, Lessor shall have the right
to recover in such proceeding any unpaid Rent and damages as are recoverable
therein, or Lessor may reserve the right to recover all or any part thereof in a
separate suit. If a notice and grace period required under Paragraph 13.1 was
not previously given, a notice to pay rent or quit, or to perform or quit given
to Lessee under the unlawful detainer statute shall also constitute the notice
required by Paragraph 13.1. In such case, the applicable grace period required
by Paragraph 13.1 and the unlawful detainer statute shall run concurrently, and
the failure of Lessee to cure the Default within the greater of the two such
grace periods shall constitute both an unlawful detainer and a Breach of this
Lease entitling Lessor to the remedies provided for in this Lease and/or by said
statute.

                (b) Continue the Lease and Lessee's right to possession and
recover the Rent as it becomes due, in which event Lessee may sublet or assign,
subject only to reasonable limitations. Acts of maintenance, efforts to relet,
and/or the appointment of a receiver to protect the Lessor's interests, shall
not constitute a termination of the Lessee's right to possession.

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

        13.3    INDUCEMENT RECAPTURE. Any agreement for free or abated rent or
other charges, or for the giving or paying by Lessor to or for Lessee of any
cash or other bonus, inducement or consideration for Lessee's entering into this
Lease, all of which concessions are hereinafter referred to as "INDUCEMENT
PROVISIONS," shall be deemed conditioned upon Lessee's full and faithful
performance of all of the terms, covenants and conditions of this Lease. Upon
Breach of this Lease by Lessee, any such Inducement Provision shall
automatically be deemed deleted from this Lease and of no further force or
effect, and any rent, other charge, bonus, inducement or consideration
theretofore abated, given or paid by Lessor under such an Inducement Provision
shall be immediately due and payable by Lessee to Lessor, notwithstanding any
subsequent cure of said Breach by Lessee. The acceptance by Lessor of Rent or
the cure of the Breach which initiated the operation of this paragraph shall not
be deemed a waiver by Lessor of the provisions of this paragraph unless
specifically so stated in writing by Lessor at the time of such acceptance.

        13.4    LATE CHARGES. Lessee hereby acknowledges that late payment by
Lessee of Rent will cause Lessor to incur costs not contemplated by this Lease,
the exact amount of which will be extremely difficult to ascertain. Such costs
include, but are not limited to, processing and accounting charges, and late
charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent
shall not be received by Lessor within five (5) days after such amount shall be
due, then, without any requirement for notice to Lessee, Lessee shall pay to
Lessor a one-time late charge equal to five percent (5%) of each such overdue
amount. The Parties hereby agree that such late charge represents a fair and
reasonable estimate of the costs Lessor will incur by reason of such late
payment. Acceptance of such late charge by Lessor shall in no event constitute a
waiver of Lessee's Default or Breach with respect to such overdue amount, nor
prevent the exercise of any of the other rights and remedies granted hereunder.
In the event that a late charge is payable hereunder, whether or not collected,
for three (3) consecutive installments of Base Rent, then notwithstanding any
provision of this Lease to the contrary, Base Rent shall, at Lessor's option,
become due and payable quarterly in advance.

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

        13.6    BREACH BY LESSOR.

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

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

14.     CONDEMNATION. If the Premises or any portion thereof are taken under the
power of eminent domain or sold under the threat of the exercise of said power
(collectively "CONDEMNATION"), this Lease shall terminate as to the part taken
as of the date the condemning authority takes title or possession, whichever
first occurs. If more than ten percent (10%) of any building portion of the
Premises, or more than twenty-five percent (25%) of the land area portion of the
Premises not occupied by any building, is taken by Condemnation, Lessee may, at
Lessee's option, to be exercised in writing within ten (10) days after Lessor
shall have given Lessee written notice of such taking (or in the absence of such
notice, within ten (10) days after the condemning authority shall have taken
possession) terminate this Lease as of the date the condemning authority takes
such possession. If Lessee does not terminate this Lease in accordance with the
foregoing, this Lease shall remain in full force and effect as to the portion of
the Premises remaining, except that the Base Rent shall be reduced in proportion
to the reduction in utility of the Premises caused by such Condemnation.
Condemnation awards and/or payments shall be the property of Lessor, whether
such award shall be made as compensation for diminution in value of the
leasehold, the value of the part taken, or for severance damages; provided,
however, that Lessee shall be entitled to any compensation for Lessee's
relocation expenses, loss of business goodwill and/or Trade Fixtures, without
regard to whether or not this Lease is terminated pursuant to the provisions of
this Paragraph. All Alterations and Utility Installations made to the Premises
by Lessee, for purposes of Condemnation only, shall be considered the property
of the Lessee and Lessee shall be entitled to any and all compensation which is
payable therefor. In the event that this Lease is not terminated by reason of
the Condemnation, Lessor shall repair any damage to the Premises caused by such
Condemnation.

15.     BROKERS' FEE.

        15.1    ADDITIONAL COMMISSION. In addition to the payments owed pursuant
to Paragraph 1.10 above, and unless Lessor and the Brokers otherwise agree in
writing, Lessor agrees that: (a) if Lessee exercises any Option, (b) if Lessee
acquires any rights to the Premises or other premises owned by Lessor and
located within the same Project, if any, within which the Premises is located,
(c) if Lessee remains in possession of the Premises, with the consent of Lessor,
after the expiration of this Lease, or (d) if Base Rent is increased, whether by
agreement or operation of an escalation clause herein, then,

                                  PAGE 8 OF 12

(C)1997 -- AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION          FORM STN-6-2/97E

                                    REVISED
<PAGE>   31

Lessor shall pay Brokers a fee in accordance with the schedule of said Brokers
in effect at the time of the execution of this Lease.

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

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

16.     ESTOPPEL CERTIFICATES.

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

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

                (c) If Lessor desires to finance, refinance, or sell the
Premises, or any part thereof, Lessee and all Guarantors shall deliver to any
potential lender or purchaser designated by Lessor such financial statements as
may be reasonably required by such lender or purchaser, including, but not
limited to, Lessee's financial statements for the past three (3) years. All such
financial statements shall be received by Lessor and such lender or purchaser in
confidence and shall be used only for the purposes herein set forth.

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

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

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

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

21.     TIME OF ESSENCE. Time is of the essence with respect to the performance
of all obligations to be performed or observed by the Parties under this Lease.

22.     NO PRIOR OR OTHER AGREEMENTS; BROKER DISCLAIMER. This Lease contains all
agreements between the Parties with respect to any matter mentioned herein, and
no other prior or contemporaneous agreement or understanding shall be effective.
Lessor and Lessee each represents and warrants to the Brokers that it has made,
and is relying solely upon, its own investigation as to the nature, quality,
character and financial responsibility of the other Party to this Lease and as
to the nature, quality and character of the Premises. Brokers have no
responsibility with respect thereto or with respect to any default or breach
hereof by either Party. The liability (including court costs and Attorneys'
fees), of any Broker with respect to negotiation, execution, delivery or
performance by either Lessor or Lessee under this Lease or any amendment or
modification hereto shall be limited to an amount up to the fee received by such
Broker pursuant to this Lease; provided, however, that the foregoing limitation
on each Broker's liability shall not be applicable to any gross negligence or
willful misconduct of such Broker.

23.     NOTICES.

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

                23.2    DATE OF NOTICE. Any notice sent by registered or
certified mail, return receipt requested, shall be deemed given on the date of
delivery shown on the receipt card, or if no delivery date is shown, the
postmark thereon. If sent by regular mail the notice shall be deemed given
forty-eight (48) hours after the same is addressed as required herein and mailed
with postage prepaid. Notices delivered by United States Express Mail or
overnight courier that guarantee next day delivery shall be deemed given
twenty-four (24) hours after delivery of the same to the Postal Service or
courier. Notices transmitted by facsimile transmission or similar means shall be
deemed delivered upon telephone confirmation of receipt, provided a copy is also
delivered via delivery or mail. If notice is received on a Saturday, Sunday or
legal holiday, it shall be deemed received on the next business day.

24.     WAIVERS. No waiver by Lessor of the Default or Breach of any term,
covenant or condition hereof by Lessee, shall be deemed a waiver of any other
term, covenant or condition hereof, or of any subsequent Default or Breach by
Lessee of the same or of any other term, covenant or condition hereof. Lessor's
consent to, or approval of, any act shall not be deemed to render unnecessary
the obtaining of Lessor's consent to, or approval of, any subsequent or similar
act by Lessee, or be construed as the basis of an estoppel to enforce the
provision or provisions of this Lease requiring such consent. The acceptance of
Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any
payment by Lessee may be accepted by Lessor on account of monies or damages due
Lessor, notwithstanding any qualifying statements or conditions made by Lessee
in connection therewith, which such statements and/or conditions shall be of no
force or effect whatsoever unless specifically agreed to in writing by Lessor at
or before the time of deposit of such payment.

25.     RECORDING. Either Lessor or Lessee shall, upon request of the other,
execute, acknowledge and deliver to the other a short form memorandum of this
Lease for recording purposes. The Party requesting recordation shall be
responsible for payment of any fees applicable thereto.

26.     NO RIGHT TO HOLDOVER. Lessee has no right to retain possession of the
Premises or any part thereof beyond the expiration or termination of this Lease.
In the event that Lessee holds over, then the Base Rent shall be increased to
one hundred fifty percent (150%) of the Base Rent applicable during the month
immediately preceding the expiration or termination. Nothing contained herein
shall be construed as consent by Lessor to any holding over by Lessee.

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

28.     COVENANTS AND CONDITIONS; CONSTRUCTION OF AGREEMENT. All provisions of
this Lease to be observed or performed by Lessee are both covenants and
conditions. In construing this Lease, all headings and titles are for the
convenience of the Parties only and shall not be considered a part of this
Lease. Whenever required by the context, the singular shall include the plural
and vice versa. This Lease shall not be construed as if prepared by one of the
Parties, but rather according to its fair meaning as a whole, as if both Parties
had prepared it.

29.     BINDING EFFECT; CHOICE OF LAW. This Lease shall be binding upon the
parties, their personal representatives, successors and assigns and be governed
by the laws of the State in which the Premises are located. Any litigation
between the Parties hereto concerning this Lease shall be initiated in the
county in which the Premises are located.

                                  Page 9 of 12

                                                                FORM STN-6-2/97E

<PAGE>   32

30.     SUBORDINATION; ATTORNMENT; NON-DISTURBANCE.

        30.1    SUBORDINATION. This Lease and any Option granted hereby shall be
subject and subordinate to any ground lease, mortgage, deed of trust, or other
hypothecation or security device (collectively, "SECURITY DEVICE"), now or
hereafter placed upon the Premises, to any and all advances made on the security
thereof, and to all renewals, modifications, and extensions thereof. Lessee
agrees that the holders of any such Security Devices (in this Lease together
referred to as "Lessor's Lender") shall have no liability or obligation to
perform any of the obligations of Lessor under this Lease. Any Lender may elect
to have this Lease and/or any Option granted hereby superior to the lien of its
Security Device by giving written notice thereof to Lessee, whereupon this Lease
and such Options shall be deemed prior to such Security Device, notwithstanding
the relative dates of the documentation or recordation thereof.

        30.2    ATTORNMENT. Subject to the non-disturbance provisions of
Paragraph 30.3, Lessee agrees to attorn to a Lender or any other party who
acquires ownership of the Premises by reason of a foreclosure of a Security
Device, and that in the event of such foreclosure, such new owner shall not: (i)
be liable for any act or omission of any prior lessor or with respect to events
occurring prior to acquisition of ownership; (ii) be subject to any offsets or
defenses which Lessee might have against any prior lessor; or (iii) be bound by
prepayment of more than one (1) month's rent.

        30.3    NON-DISTURBANCE. With respect to Security Devices entered into
by Lessor after the execution of this Lease, Lessee's subordination of this
Lease shall be subject to receiving a commercially reasonable non-disturbance
agreement (a "NON-DISTURBANCE AGREEMENT") from the Lender which Non-Disturbance
Agreement provides that Lessee's possession of the Premises, and this Lease,
including any options to extend the term hereof, will not be disturbed so long
as Lessee is not in Breach hereof and attorns to the record owner of the
Premises. Further, within sixty (60) days after the execution of this Lease,
Lessor shall use its commercially reasonable efforts to obtain a Non-Disturbance
Agreement from the holder of any pre-existing Security Device which is secured
by the Premises. In the event that Lessor is unable to provide the
Non-Disturbance Agreement within said sixty (60) days, then Lessee may, at
Lessee's option, directly contact Lessor's lender and attempt to negotiate for
the execution and delivery of a Non-Disturbance Agreement.

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

31.     ATTORNEYS' FEES. If any Party or Broker brings an action or proceeding
involving the Premises to enforce the terms hereof or to declare rights
hereunder, the Prevailing Party (as hereafter defined) in any such proceeding,
action, or appeal thereon, shall be entitled to reasonable attorneys' fees. Such
fees may be awarded in the same suit or recovered in a separate suit, whether or
not such action or proceeding is pursued to decision or judgment. The term,
"PREVAILING PARTY" shall include, without limitation, a Party or Broker who
substantially obtains or defeats the relief sought, as the case may be, whether
by compromise, settlement, judgment, or the abandonment by the other Party or
Broker of its claim or defense. The attorneys' fees award shall not be computed
in accordance with any court fee schedule, but shall be such as to fully
reimburse all attorneys' fees reasonably incurred. In addition, Lessor shall be
entitled to attorneys' fees, costs and expenses incurred in the preparation and
service of notices of Default and consultations in connection therewith, whether
or not a legal action is subsequently commenced in connection with such Default
or resulting Breach.

32.     LESSOR'S ACCESS; SHOWING PREMISES; REPAIRS. Lessor and Lessor's agents
shall have the right to enter the Premises at any time, in the case of an
emergency, and otherwise at reasonable times for the purpose of showing the same
to prospective purchasers, lenders, or lessees, and making such alterations,
repairs, improvements or additions to the Premises as Lessor may deem necessary.
All such activities shall be without abatement of rent or liability to Lessee.
Lessor may at any time place on the Premises any ordinary "FOR SALE" signs and
Lessor may during the last six (6) months of the term hereof place on the
Premises any ordinary "FOR LEASE" signs. Lessee may at any time place on or
about the Premises any ordinary "FOR SUBLEASE" sign.

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

34.     SIGNS. Except for ordinary "For Sublease" signs, Lessee shall not place
any sign upon the Premises without Lessor's prior written consent. All signs
must comply with all Applicable Requirements.

35.     TERMINATION; MERGER. Unless specifically stated otherwise in writing by
Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual
termination or cancellation hereof, or a termination hereof by Lessor for Breach
by Lessee, shall automatically terminate any sublease or lesser estate in the
Premises; provided, however, that Lessor may elect to continue any one or all
existing subtenancies. Lessor's failure within ten (10) days following any such
event to elect to the contrary by written notice to the holder of any such
lesser interest, shall constitute Lessor's election to have such event
constitute the termination of such interest.

36.     CONSENTS. Except as otherwise provided herein, wherever in this Lease
the consent of a Party is required to an act by or for the other Party, such
consent shall not be unreasonably withheld or delayed. Lessor's actual
reasonable costs and expenses (including, but not limited to, architects',
attorneys', engineers' and other consultants' fees) incurred in the
consideration of, or response to, a request by Lessee for any Lessor consent,
including, but not limited to, consents to an assignment, a subletting or the
presence or use of a Hazardous Substance, shall be paid by Lessee upon receipt
of an invoice and supporting documentation therefor. Lessor's consent to any
act, assignment or subletting shall not constitute an acknowledgment that no
Default or Breach by Lessee of this Lease exists, nor shall such consent be
deemed a waiver of any then existing Default or Breach, except as may be
otherwise specifically stated in writing by Lessor at the time of such consent.
The failure to specify herein any particular condition to Lessor's consent shall
not preclude the imposition by Lessor at the time of consent of such further or
other conditions as are then reasonable with reference to the particular matter
for which consent is being given. In the event that either Party disagrees with
any determination made by the other hereunder and reasonably requests the
reasons for such determination, the determining party shall furnish its reasons
in writing and in reasonable detail within ten (10) business days following such
request.

37.     GUARANTOR.

        37.1    EXECUTION. The Guarantors, if any, shall each execute a guaranty
in the form most recently published by the American Industrial Real Estate
Association, and each such Guarantor shall have the same obligations as Lessee
under this Lease.

        37.2    DEFAULT. It shall constitute a Default of the Lessee if any
Guarantor fails or refuses, upon request to provide: (a) evidence of the
execution of the guaranty, including the authority of the party signing on
Guarantor's behalf to obligate Guarantor, and in the case of a corporate
Guarantor, a certified copy of a resolution of its board of directors
authorizing the making of such guaranty, (b) current financial statements, (c) a
Tenancy Statement, or (d) written confirmation that the guaranty is still in
effect.

38.     QUIET POSSESSION. Subject to payment by Lessee of the Rent and
performance of all of the covenants, conditions and provisions on Lessee's part
to be observed and performed under this Lease, Lessee shall have quiet
possession and quiet enjoyment of the Premises during the term hereof.

39.     OPTIONS.

        39.1    DEFINITION. "OPTION" shall mean: (a) the right to extend the
term of or renew this Lease or to extend or renew any lease that Lessee has on
other property of Lessor; (b) the right of first refusal or first offer to lease
either the Premises or other property of Lessor; (c) the right to purchase or
the right of first refusal to purchase the Premises or other property of Lessor.

        39.3    MULTIPLE OPTIONS. In the event that Lessee has any multiple
Options to extend or renew this Lease, a later Option cannot be exercised unless
the prior Options have been validly exercised.

        39.4    EFFECT OF DEFAULT ON OPTIONS.

                (a) Lessee shall have no right to exercise an Option: (i) during
the period commencing with the giving of any notice of Default and continuing
until said Default is cured, (ii) during the period of time any Rent is unpaid
(without regard to whether notice thereof is given Lessee), (iii) during the
time Lessee is in Breach of this Lease, or (iv) in the event that Lessee has
been given three (3) or more notices of separate Default, whether or not the
Defaults are cured, during the twelve (12) month period immediately preceding
the exercise of the Option.

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

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

40.     MULTIPLE BUILDINGS. If the Premises are a part of a group of buildings
controlled by Lessor, Lessee agrees that it will observe all reasonable rules
and regulations which Lessor may make from time to time for the management,
safety, and care of said properties, including the care and cleanliness of the

                                 Page 10 of 12

(C)1997 -- AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION          FORM STN-6-2/97E

                                    REVISED
<PAGE>   33

grounds and including the parking, loading and unloading of vehicles, and that
Lessee will pay its fair share of common expenses incurred in connection
therewith.

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

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

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

44.     AUTHORITY. If either Party hereto is a corporation, trust, limited
liability company, partnership, or similar entity, each individual executing
this Lease on behalf of such entity represents and warrants that he or she is
duly authorized to execute and deliver this Lease on its behalf. Each Party
shall, within thirty (30) days after request, deliver to the other Party
satisfactory evidence of such authority.

45.     CONFLICT. Any conflict between the printed provisions of this Lease and
the typewritten or handwritten provisions shall be controlled by the typewritten
or handwritten provisions.

46.     OFFER. Preparation of this Lease by either Party or their agent and
submission of same to the other Party shall not be deemed an offer to lease to
the other Party. This Lease is not intended to be binding until executed and
delivered by all Parties hereto.

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

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

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

50.     See Addendum 50.

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

________________________________________________________________________________

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

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

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

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

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

Executed at: 602 E. Huntington Dr.       Executed at:
            -------------------------                ---------------------------
on: 3/19/99                              on:
   ----------------------------------       ------------------------------------
By LESSOR:                               By LESSEE: SOFTWARE TECHNOLOGIES CORP.
          ---------------------------              -----------------------------

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

By: /s/ [SIGNATURE ILLEGIBLE]            By: /s/ WILLIAM OVERELL
   ----------------------------------       ------------------------------------
Name Printed: BOONE/FETTER/OCCIDENTAL    Name Printed: SOFTWARE TECHNOLOGIES
              I                                        CORPORATION
             ------------------------                 --------------------------
Title:                                   Title: VP Finance & CFO
      -------------------------------          ---------------------------------
By:                                      By:
   ----------------------------------       ------------------------------------
Name Printed:                            Name Printed:
             ------------------------                 --------------------------
Title:                                   Title:
      -------------------------------          ---------------------------------
Address: 602 E. Huntington Drive, Ste.   Address:
        -----------------------------            -------------------------------
         D, Monrovia, CA 91016
        -----------------------------            -------------------------------
Telephone: (626) 305-5530                Telephone: (   )
          ---------------------------              -----------------------------
Facsimile: (626) 305-5541                Facsimile: (   )
          ---------------------------              -----------------------------
Federal ID No.                           Federal ID No.
              -----------------------                  -------------------------

                                 Page 11 of 12

(C)1997 -- AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION          FORM STN-6-2/97E

                                    REVISED
<PAGE>   34

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

<PAGE>   35
                       RIDER TO LEASE DATED MARCH 12,1999

                                 BY AND BETWEEN

                      BOONE/FETTER/OCCIDENTAL I, AS LESSOR

                                       AND

                        SOFTWARE TECHNOLOGIES CORPORATION

        The following additional provisions are incorporated in the Lease dated
March 12,1999 by and between BOONE/FETTER/OCCIDENTAL I ("Lessor") and SOFTWARE
TECHNOLOGIES CORPORATION ("Lessee"). In the event of any conflicts between the
provisions of this Rider and Paragraphs 1 through 49 of the printed lease form,
the provisions of this Rider shall prevail.

<TABLE>
<S>                                    <C>                      <C>
        50. BASE RENT.                  Months  1 - 30           $1.15 N.N.N.
                                        Months 31 - 53           $1.25 N.N.N.
</TABLE>

        51. COMMON AREA: USE, MAINTENANCE AND COSTS.

        51.1 COMMON AREAS. Lessor owns and manages a parcel of real property
known as Tech Center East, Phase I, located at the south-west corner of the
intersection of Huntington Drive and Shamrock Avenue in Monrovia, California.
Said real property, including land, buildings, common areas, and all other
improvements thereon is herein called the "Entire Premises." Exhibit "C"
attached hereto depicts the Entire Premises. As used herein, "common areas"
shall mean all areas within the Entire Premises which are not specifically
leased or held for lease by Lessor, including, without limiting the foregoing,
parking areas, driveways, sidewalks, loading areas, access and egress roads,
corridors, landscaped and planted areas, and all other improvements provided by
Lessor for the common use of lessees. Lessor may from time to time change the
size, location, nature, and use of any of the common areas including converting
common areas into leasable areas, and increasing or decreasing common area land
and/or facilities. (See Insert 51.1)

        51.2 USE OF COMMON AREAS. Lessee, its employees, agents, customers, and
business invitees shall have the nonexclusive use (in common with other lessees
and all others to whom Lessor has granted or may hereafter grant such rights) to
use the common areas for the purpose intended, subject to such reasonable non
discriminatory rules and regulations relating to such use as Lessor may from
time to time establish. Lessee agrees after notice thereof to abide by such
rules and regulations and to use its reasonable efforts to cause its officers,
employees, agents,

<PAGE>   36
customers, and business invitees to conform thereto. Lessor may at any time
close any common areas to effect construction, repairs, or changes thereto, or
prevent the acquisition of public rights in such areas, and may do such other
acts in and to the common areas as in its judgment may be desirable to improve
the convenience thereof. (See Insert 51.2) Lessee shall not at any time
interfere with rights of the Lessor, or other lessees, or of any other person
entitled to use the common areas to use any part thereof.

        51.3 MAINTENANCE OF COMMON AREAS. Lessor shall operate, manage, equip,
clean, sweep, remove refuse, light, patrol, repair, replace, and maintain the
common areas for their intended purposes in such a manner as Lessor shall
reasonably determine to be appropriate.

        51.4 COMMON AREA COSTS. Lessee shall pay to Lessor, in the manner
provided in Paragraph 51.5, Lessee's pro rata share of all common area costs.
Common area costs shall include all costs and expenses incurred by the Lessor
for the operation and maintenance of the common areas during the lease term
(including appropriate reserves) including, without limiting the foregoing,
costs and expenses of garden and landscaping; water and sewage charges;
maintenance of signs (other than Lessee's signs); premiums for liability,
property damage, fire and other types of casualty, and workmen's compensation
insurance; all real property taxes and assessments levied on or attributable to
the common areas and all improvements therein; personal property taxes levied on
or attributable to personal property used in connection with the common areas;
fees for required licenses and permits; costs and expenses of repairs,
resurfacing, repaving, maintenance, painting, lighting, exterior light
electricity, cleaning, refuse removal, air conditioner servicing, parking lot
sweeping, window washing, security and similar items; and a reasonable allowance
to Lessor for Lessor's supervision of the common areas (but such allowance for
supervision shall not exceed in any calendar year five percent (5%) of the total
of the aforementioned costs and expenses for such calendar year). Lessor may,
however, cause any or all such services to be provided by an independent
contractor or contractors. Common area costs shall not include depreciation or
common area improvements. Notwithstanding anything to the contrary in this
Lease, (1) common area costs payable by Lessee during 1999 shall not exceed the
monthly amounts described on Exhibit "B" attached hereto and made a part hereof,
and (2) common area costs thereafter payable by Lessee shall not increase during
any calendar year by more than ten percent (10%) of the common area costs paid
by Lessee during the

<PAGE>   37

calendar year immediately preceding. The amount of real estate taxes and
premiums for property insurance shall not be subject to the limitation described
in the foregoing sentence and shall be excluded from the amount of common area
costs in each year for purposes of calculating the maximum increase in common
area costs for the next succeeding year; provided, however, that there shall in
any event be excluded from common area costs (a) insurance costs for earthquake
or flood coverage, insurance deductibles, and co-insurance payments. In
addition, if the cost of Lessor's property insurance payable by Lessee should
increase by more than ten percent (10%) from such costs paid by Lessee during
the year immediately preceding, then Lessor shall, upon Lessee request, obtain
at least three (3) competitive bids from qualified insurers and transfer
Lessor's property insurance to the insurer submitting the lowest cost bid,
providing the insurer has an "A" Rating.

        51.5 LESSEE'S SHARE AND PAYMENT. Lessee's pro rata share of the common
area costs referred to in Paragraph 51.4 shall be a fraction of which the
numerator is the rentable square foot area of the premises, as set forth in
Paragraph 1.2, and the denominator is the aggregate number of square rentable
feet of the Entire Premises upon the date the computation is made. The annual
Pro rata charge to Lessee shall be paid in monthly installments on the first day
of each calendar month of the lease term after commencement thereof (prorated
for any fractional month) in advance, in an amount reasonably estimated by the
Lessor. Lessee's pro rata share of insurance charges are not included in the
common area charges and shall be charged annually, in advance, in accordance
with reasonable policies and procedures of the Lessor. Within one hundred and
twenty days (120) after the end of each calendar year of the lease term, Lessor
shall furnish to Lessee an accounting statement in reasonable detail, of the
actual costs and expenses paid or incurred by Lessor during the preceding
calendar year in respect of the common areas, prepared in accordance with
generally accepted accounting principles by Lessor's accountant, applied in
accordance with Paragraph 51.5, and thereupon there shall be an adjustment
between Lessor and Lessee, with payment to or credit given by Lessor as the case
may require, to the end that Lessor shall receive the entire amount of Lessee's
share of such costs and expenses for such period.

        52. OPTION TO RENEW. Provided Lessee is not in breach under any of the
terms and conditions of the Lease, and provided Lessee shall give Lessor written
notice of its election to do so not later than one hundred twenty (120) days
prior to the expiration of the Lease; Lessee shall have the option to extend the
term of the original

<PAGE>   38

Lease for an additional period of five (5) years upon the same terms and
conditions as the original Lease except that the amount of rental for such
extended period shall be adjusted upwards to reflect 98% of the market rental
rate in 2003.

        52.1 In the event that Lessor and Lessee cannot agree on the new base
rent, the matter shall be submitted for decision to a panel of three (3)
arbitrators. Lessor and Lessee shall each appoint one arbitrator who shall by
profession be a licensed commercial real estate broker or an MIA real estate
appraiser, and who shall be familiar with the building and have been active
(over the three (3) year period ending on the date of such appointment) in the
brokering or appraisal of properties in the Monrovia, California area. The
determination of the arbitrators shall be limited solely to the issue of whether
Lessor's or Lessee's proposed new base rent for the premises is the closest to
98% of the actual fair market base rent for the premises including the other
economic terms of the Lease that would be considered "market" by the
arbitrators. For the purposes of this Lease, the actual fair market base rent
for the premises including other economic terms of the Lease that should be
considered "market" to the arbitrators shall mean the annual current base rent
per square foot that a willing, comparably credit worthy, nonrenewal,
nonsublease, nonequity, nonexpansion, new tenant would pay, and a willing
landlord of a comparable building would accept, in an arms-length transaction,
for the same amount of space, giving appropriate consideration to the use by the
parties of the AIR net lease, to provisions reflecting free rent and/or possible
rent abatement during the lease term, brokerage commissions payable by landlord,
if any, length of the lease term, location of the property in which the premises
are being leased, the building standard work letter and/or tenant improvement
allowance provided, if any, the quality, age and configuration of any usable
existing tenant improvements already in the space, and other generally
applicable terms and conditions of a tenancy for the space in question. (See
Insert 52.1) Each such arbitrator shall be appointed within five (5) business
days after Lessee's notice to Lessor of its election to have new base rent and
the other economic terms of the Lease determined by this arbitration procedure.
The two arbitrators so appointed shall within five (5) business days of the date
of the appointment of the last appointed arbitrator agree upon and appoint a
third arbitrator who shall be qualified under the same criteria set forth
hereinabove for qualification of the initial two arbitrators. Failing such
agreement, either Lessor or Lessee shall have the right to petition for the
appointment of a third arbitrator by the Presiding Judge of the Superior Court
of the County of Los Angeles. The three arbitrators shall, within

<PAGE>   39

thirty (30) days of the appointment of the third arbitrator, reach a decision as
to whether Lessor's or Lessee's proposed new base rent and other economic terms
of the Lease is the closest to 98% of the actual fair market base rent for the
premises including the other economic terms of the Lease that they consider to
be "market," and shall notify Lessor and Lessee thereof. The decision of the
majority of the three arbitrators shall be binding upon Lessor and Lessee. The
cost of the arbitration shall be paid by Lessor and Lessee, equally.

        53. REPLACEMENT & REPAIR. Notwithstanding anything to the contrary in
this Lease, but without relieving Lessee of liability resulting from Lessee's
failure to exercise and perform good maintenance practices, if any repairs or
replacements to the Premises could reasonably be capitalized under generally
accepted accounting principles, then Lessor shall perform such repairs and
replacements, and the cost thereof shall be pro rated between the parties and
Lessee shall only be obligated to pay, each month during the remainder of the
term of this Lease, on the date on which Base Rent is due, an amount equal to
the product of multiplying the cost of such replacement by a fraction, the
numerator of which is one, and the denominator of which is the number of months
of the useful life of such replacement as such useful life is specified pursuant
to Federal income tax regulations or guidelines for depreciation thereof
(including interest on the unamortized balance as is then commercially
reasonable in the judgment of Lessor's accountants), with Lessee reserving the
right to prepay its obligation at any time." (See Insert 53)

        54. PARTIAL DAMAGE - INSURED LOSS. If (1) a Premises Partial Damage that
is an Insured Loss occurs, or (2) a Premises Partial Damage that is not an
Insured Loss occurs and the cost to restore the Premises to their prior
condition does not exceed $500,000, then Lessor shall, at Lessor's expense,
repair such damage (but not Lessee's Trade Fixtures or Lessee Owned Alterations
and Utility Installations) as soon as reasonably possible and this Lease shall
continue in full force and effect; provided, however, that Lessee shall, at
Lessor's election, make the repair of any damage or destruction the total cost
to repair of Which is $10,000 or less, and, in such event, Lessor shall make
any applicable insurance proceeds available to Lessee on a reasonable basis for
that purpose. Lessor shall maintain a maximum deductible of $1,000 as long as
Lessor is providing insurance coverage.

        55. PARTIAL DAMAGE - UNINSURED LOSS. If a Premises Partial Damage that
is not an Insured Loss occurs and the cost to restore the Premises to their
prior condition exceeds $500,000, then Lessor may either (1) repair such

<PAGE>   40

damage as soon as reasonably possible at Lessor's expense, in which event this
Lease shall continue in full force and effect, or (2) terminate this Lease by
giving written notice to Lessee within thirty (30) days after receipt by Lessor
of knowledge of the occurrence of such damage.

        56. PARKING. Without any additional rent obligation on the part of the
Lessee, Lessee, its officers, employees, and agents shall have the exclusive use
of all parking spaces located at the Project, which constitutes twenty five (25)
parking spaces. Said parking spaces shall be limited to vehicles no larger than
standard sized automobiles or pick-up utility vehicles, and Lessee shall not
park larger trucks or other large vehicles at the Project. Said parking spaces
shall be located in the parking areas for the Entire Premises as depicted on
Exhibit "D" hereto and shall be on an assigned or non-assigned basis as Lessor
in its reasonable discretion shall determine. Lessee shall not use more than
twenty five (25) parking spaces; if Lessee parks additional vehicles in the
parking area, Lessor may, in addition to other remedies under this Lease,
require the payment of a reasonable daily charge for each additional vehicle.

        57. RIGHT TO SUBLEASE. The Lessee shall have the right to assign the
Lease (including the Option to extend the term) or sublet any or all of the
Premises subject to the Lessor's prior written approval which shall not
unreasonably be withheld, conditioned or delayed. In the unlikely event of any
profit* as a result of subletting or assignment, 50% (fifty percent) of that
profit would be remitted to the Lessor as additional rent. *(Profit to be
defined as net of any cost associated with the releasing of the space over the
life of the remaining term.) Notwithstanding the foregoing, Lessee may, without
Lessor's prior written consent and without payment of any amount to Lessor,
sublet any or all of the Premises or assign this Lease to (1) a subsidiary,
affiliate, division, other person or entity controlling, controlled by or under
common control with Lessee, (2) an entity related to Lessee by merger,
consolidation, nonbankruptcy reorganization or government action, or (3) a
purchaser of substantially all of Lessee's assets located in the Premises,
provided that any such entity or purchaser described in the foregoing clauses
(2) and (3) has, at the time of such transaction, a net worth at lease equal to
Lessee's net worth as of the date of this lease.

        58. TENANT IMPROVEMENTS. Lessor to provide $35,000 tenant improvement
allowance. In addition, Lessor will replace ceiling in area currently used as
warehouse and reinstall glass insert in truck door. (See Insert 58)

<PAGE>   41

        59. WARRANTIES. Lessor shall warrant the H.V.A.C. system for the first
twelve (12) months of the lease beginning (See Insert 59) provided they are not
problems created by Lessee's inappropriate usage or failure to maintain (i.e.,
In the case of HVAC, 24 hour per day usage requires higher frequency of
service). Warranty does not include the quarterly preventative maintenance
program. One (1) year on roof repair, but shall not include building annual
preventative roof maintenance program. All warranties of new equipment will be
passed through to Lessee.

<PAGE>   42
              INSERTS TO THE LEASE BETWEEN BOONE/FETTER/OCCIDENTAL I
                      AND SOFTWARE TECHNOLOGIES CORPORATION

Insert 3.1: Notwithstanding anything to the contrary in this lease, if by April
15, 1999, Lessor has not (i) substantially completed all tenant improvements in
accordance with this Lease, (ii) delivered possession of the Premises to Lessee,
and (iii) obtained all approvals and permits by the appropriate governmental
authorities required for the legal occupancy of the Premises for Lessee's
intended use, then the Commencement Date shall be the later of (a) May 1, 1999,
or (b) the date by which the Lessor shall have performed all of the items
described in the foregoing clauses (i), (ii) and (iii).

Insert 7.3: Exclusive of all computer and communications cabling.

Insert 51.1: ;provided, however, that no such change shall materially decrease
Lessee's rights or access to the Premises.

Insert 51.2: In exercising any rights regarding the common areas, Lessor shall
use reasonable efforts to minimize any interference with Lessee's use and
enjoyment of, and conduct of business at the Premises.

Insert 52.1: Such market rental shall, however, be determined as if the Premises
had not been improved with any alterations or improvements paid for by Lessee.

Insert 53: Notwithstanding anything to the contrary in this Lease, Lessor shall
perform and construct, and Lessee shall have no responsibility to perform or
construct, any repair, maintenance or improvements (a) necessitated by the acts
or omissions of Lessor or any other occupant of the Entire Premises, or their
respective agents, employees or contractors, (b) occasioned by fire, acts of God
or other casualty or by the exercise of the power of eminent domain, (c)
required as a consequence of any violation of the Laws or construction defects
in the Premises, the Entire Premises or the Project as of the Commencement Date,
(d) for which Lessor has a right of reimbursement from others, (e) which could
be treated as a "capital expenditure" under generally accepted accounting
principles, (f) to the water, sewer, and plumbing systems serving the Premises,
the Entire Premises and the Project, and (g) to the common areas, to the
structural elements of the Entire Premises or the Project (including, but not
limited to, the foundation, exterior walls, interior load-bearing walls and
supports, and the roof) and to any portion of the Entire Premises or the Project
outside of the demising walls of the Premises.

Insert 58: The tenant improvement work shall be constructed by Lessor or its
contractor in a manner reasonably satisfactory to Lessee.

Insert 59: on the Commencement Date and all other building systems for sixty
(60) days.

Insert 60:

        60. UNREASONABLE EXPENDITURES, Any expenditure by a party permitted or
required under the Lease, for which such party is entitled to demand and does
demand reimbursement from the other party, shall be limited to the fair market
value of the goods and services involved, shall be reasonably incurred, and
shall be substantiated by documentary evidence available for inspection and
review by the other party or its representative during normal business hours.

        61. SERVICES. Lessor shall provide reasonable heating, ventilation and
air conditioning required for the comfortable occupancy and operation of the
Premises during all hours of Lessee's operation and at such other times as
Lessee may reasonably request. Lessor shall also furnish such water, gas,
electricity, telephone, sewer and refuse pick-up services and utilities to the
Premises, the Entire Premises, and the Project are reasonable and customary for
tenants engaged in Lessee's business at the Premises. Lessor shall provide
Lessee with access to the Premises twenty-four (24) hours a day, seven days a
week.

<PAGE>   43

        62. RIGHT OF FIRST NEGOTIATION. If, as and when, Lessor receives a
written proposal to lease other space in the building, the terms of which are
acceptable to lessor, Lessor will furnish a copy of same to Lessee and Lessee
will have (5) business days after receipt of same in which to decline the
opportunity or to agree to the basic terms contained in the proposal.
Thereafter, the parties would have five (5) business days in which to finalize
the terms of an amendment to this Lease adding the additional space to the
premises. If an amendment is not executed during that five (5) business day
period through no fault of Lessor, thereafter, Lessor would be free to lease the
vacant space to the party that made the proposal, or to any other party,
provided the terms and conditions of that lease are no more generous than those
contained in the original proposal and otherwise proposed to Lessee by Lessor.

<PAGE>   44

                                  [FLOOR PLAN]

<PAGE>   45

                                   [DIAGRAM]

<PAGE>   46

                            FIRST AMENDMENT TO LEASE

        THIS FIRST AMENDMENT TO LEASE is entered as of the 5th day of Aug, 1998,
by and between BOONE/FETTER/OCCIDENTAL I ("Lessor") and SOFTWARE TECHNOLOGIES
CORPORATION ("Lessee") with reference to the following facts and circumstances:

        A. Lessor and Lessee entered that certain Standard Industrial/Commercial
Single-Tenant Lease -- Net dated June 6, 1997, regarding approximately 43,393
square feet of space (the "Existing Space") located at 404 East Huntington
Drive, Monrovia, Los Angeles County, California, as amended and supplemented by
that certain Rider to Lease dated June 6, 1997, between Lessor and Lessee (such
Lease, as so amended and supplemented, being referred to herein as the "Lease").

        B. Lessor and Lessee mutually desire that the Premises subject to the
Lease be expanded to include the remaining space (the "Additional Space") in the
building located at the Project, which Additional Space contains approximately
16,874 square feet.

        C. Lessor and Lessee also desire to modify and amend certain other terms
and conditions of the Lease as provided herein.

        NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Lessor and Lessee hereby agree as follows:

        1. Effective as of September 1, 1998 (the "Effective Date"), Paragraph
1.2 of the Lease is amended by deleting the term "43,393" and substituting
"60,267" in lieu thereof. Notwithstanding the foregoing sentence, if by
September 15, 1998, Lessor has not (i) substantially completed all tenant
improvements in accordance with this Amendment, (ii) delivered possession of the
Additional Space to Lessee, and (iii) obtained all approvals and permits by the
appropriate governmental authorities required for the legal occupancy of the
Additional Space for Lessee's intended use, then the Effective Date shall be
the later of (a) October 1, 1998, or (b) the date by which the Lessor shall have
performed all of the items described in the foregoing clauses (i), (ii) and
(iii). All terms and conditions of Paragraph 2.2 and of the first five sentences
of Paragraph 2.3 of the Lease shall apply with respect to the Additional Space
as of the Effective Date.

        2. From and after the Effective Date, Base Rent per month under the
Lease shall equal the following:

           Months 1 through 3                       $45,563
           Months 4 through 26                      $63,280
           Remainder of Original Term               $69,307

<PAGE>   47

        3. As of the Effective Date, Paragraphs 1.7 and 52 are amended to delete
the term "$91,126.00" and to substitute "$108,843" in lieu thereof. Lessee shall
deposit with Lessor, on the Effective Date, the sum of $17,717 to be held by
Lessor as an additional Security Deposit under the Lease.

        4. As of the Effective Date, Lessor shall provide Lessee with a Tenant
Improvement Allowance of $151,866, which shall be separate from and in addition
to the tenant improvement allowance of $417,906.76 that Lessor has otherwise
agreed to provide Lessee under Paragraph 54 of the Lease. Such additional tenant
improvement work shall be constructed by Lessor or its contractor in a manner
reasonably satisfactory to Lessee. Lessor acknowledges that Lessor has
previously approved plans and specifications for such work as prepared by
Richard Chan Associates and modified by Lessee as of July 26, 1998. Lessor shall
cause such work to be performed by Heil Construction, Inc at a cost of
$261,175.94, subject to existing qualification and exclusions per the August 4,
1998 contract between Boone Fetter Occidental I and Heil Construction, and
change orders.

        Paragraph 2.3(b) is amended by inserting a period after "Paragraph 7.1
(c)" in the third line and deleting the balance of the first sentence. Paragraph
2.3(b) is further amended by deleting the words "does not elect to terminate,
and" from the sixth line.

        6. Paragraph 7. 1 (c) is deleted, and the following language is
substituted in lieu thereof.

                   "(c) REPLACEMENT. Notwithstanding anything to the contrary in
             this Lease, but without relieving Lessee of liability resulting
             from Lessee's failure to exercise and perform good maintenance
             practices, if any repairs or replacements to the Premises could
             reasonably be capitalized under generally accepted accounting
             principles, then Lessor shall perform such repairs and
             replacements, and the cost thereof shall be pro rated between the
             parties and Lessee shall only be obligated to pay, each month
             during the remainder of the term of this Lease, on the date on
             which Base Rent is due, an amount equal to the product of
             multiplying the cost of such replacement by a fraction, the
             numerator of which is one, and the denominator of which is the
             number of months of the useful life of such replacement as such
             useful life is specified pursuant to Federal income tax regulations
             or guidelines for depreciation thereof (including interest on the
             unamortized balance as is then commercially reasonable in the
             judgment of Lessor's accountants), with Lessee reserving the right
             to prepay its obligation at any time."

        7. Paragraph 7.3(a) is amended by deleting the language "not exceed
$50,000 in the aggregate or $10,000 in any one year" from the last line
thereof and substituting "not exceed $50,000 in any one instance" in lieu
thereof.

        8 . Paragraph 7.4(a) is amended by deleting the second sentence thereof
and adding the following sentence to the end of such Paragraph: "Notwithstanding
the foregoing, Lessee shall have the right (but not the obligation) to remove
any such Lessee Owned Alterations and Utility Installations, provided that
Lessee repairs all damage caused by such removal." In addition, Paragraph 7.4(b)
is amended by adding the following sentence to the end of such Paragraph:

                                       2
<PAGE>   48

"Notwithstanding the foregoing, Lessor shall not have the right to require that
Lessee remove any Lessee Owned Alterations, Utility Installations, or other
improvements existing in the Premises as of the Effective Date, nor any Lessee
Owned Alterations, Utility Installations or other improvements paid for in whole
or in part by the $151,866 Tenant Improvement Allowance provided by Lessor."

        9. Paragraph 8.6 is amended by deleting the language "Without affecting
any other rights or remedies," from the first line and substituting
"Notwithstanding anything to the contrary in this Lease," in lieu thereof.

        10. Paragraph 9.2 is amended by deleting the first sentence thereof and
substituting the following language in lieu thereof:

               "If (i) a Premises Partial Damage that is an Insured Loss occurs,
               or (ii) a Premises Partial Damage that is not an Insured Loss
               occurs and the cost to restore the Premises to their prior
               condition does not exceed $500,000, then Lessor shall, at
               Lessor's expense, repair such damage (but not Lessee's Trade
               Fixtures or Lessee Owned Alterations and Utility Installations)
               as soon as reasonably possible and this Lease shall continue in
               full force and effect; provided, however, that Lessee shall, at
               Lessor's election, make the repair of any damage or destruction
               the total cost to repair of which is $10,000 or less, and, in
               such event, Lessor shall make any applicable insurance proceeds
               available to Lessee on a reasonable basis for that purpose."

        11. Paragraph 9.3 is amended by deleting the first sentence thereof and
substituting the following language in lieu thereof:

               "If a Premises Partial Damage that is not an Insured Loss occurs
               and the cost to restore the Premises to their prior condition
               exceeds $500,000, then Lessor may either (i) repair such damage
               as soon as reasonably possible at Lessor's expense, in which
               event this Lease shall continue in full force and effect, or (ii)
               terminate this Lease by giving written notice to Lessee within
               thirty (30) days after receipt by Lessor of knowledge of the
               occurrence of such damage."

        12. Paragraph 55, entitled "Common Area: Use, Maintenance and Costs",
including all subparagraphs, is deleted in its entirety.

        13. Paragraph 57 is deleted, and the following language is substituted
in lieu thereof:

             "57. Without any additional rent obligation on the part of the
        Lessee, Lessee, its officers, employees, and agents shall have the
        exclusive use of all parking spaces located at the Project, which
        constitutes approximately two hundred (200) parking spaces. Said parking
        spaces shall be limited to vehicles no larger than standard sized
        automobiles or pick-up utility vehicles, and Lessee shall not park
        larger trucks or other large vehicles at the Project."

                                       3
<PAGE>   49

        14. Paragraph 60 is amended by deleting "its entire premises" from the
second line thereof and substituting "any or all of the Premises" in lieu
thereof. Paragraph 60 is further amended by inserting the following language
after the word "term" at the end of the Paragraph but within the parenthetical:
"and net of the unamortized value of any improvements and alterations previously
paid for by Lessee". Paragraph 60 is further amended by inserting the following
sentence at the end of the Paragraph:

             "Notwithstanding the foregoing, Lessee may, without Lessor's prior
             written consent and without payment of any amount to Lessor, sublet
             any or all of the Premises or assign this Lease to (i) a
             subsidiary, affiliate, division, other person or entity
             controlling, controlled by or under common control with Lessee,
             (ii) an entity related to Lessee by merger, consolidation,
             nonbankruptcy reorganization or government action, or (iii) a
             purchaser of substantially all of Lessee's assets located in the
             Premises, provided that any such entity or purchaser described in
             the foregoing clauses (ii) and (iii) has, at the time of such
             transaction, a net worth at least equal to Lessee's net worth as of
             the Effective Date."

        15. Paragraph 61 is amended by deleting "default" from the first line
thereof and substituting "Breach" in lieu thereof.

        16. Lessor acknowledges that Lessee is entering, concurrently with this
Amendment, that certain Parking Agreement (the "Parking Agreement") dated the
date hereof between Lessee and Pharmacia & Upjohn Company ("Pharmacia"). Lessor
represents that Lessor is the landlord under the "Pharmacia Lease" described in
the Parking Agreement, and Lessor hereby consents to the Parking Agreement.
Lessor further agrees that in the event of any termination of the Pharmacia
Lease or Pharmacia's rights to use the "Parking Spaces" described in the Parking
Agreement, (i) Lessee's exclusive use of such Parking Spaces shall not be
disturbed in any way, and (ii) the Parking Agreement shall not be terminated but
shall instead be deemed to be a direct agreement and lease of such Parking
Spaces from Lessor to Lessee on the terms and conditions of the Parking
Agreement. Lessor acknowledges that Lessee is relying upon Lessor's foregoing
consent and agreement in entering this Amendment and the Parking Agreement.

        17. Except as expressly amended hereby, the Lease shall remain in full
force and effect. All capitalized terms used, but not defined, herein shall have
the meanings ascribed to them in the Lease. Unless expressly provided otherwise,
all paragraph references herein shall be to paragraphs of the Lease.

                                       4
<PAGE>   50

        IN WITNESS WHEREOF, Lessor and Lessee have executed this First Amendment
to Lease as of the day and year first above written.

                                     LESSOR:
                                     BOONE/FETTER/OCCIDENTAL I
                                     By:  /s/ BLAINE P. FETTER
                                         ------------------------------
                                              Blaine P. Fetter,
                                              General Partner

                                     LESSEE:
                                     SOFTWARE TECHNOLOGIES CORPORATION

                                     By: WILLIAM OVERELL
                                        -------------------------------
                                     Title: VP Finance & CFO
                                            ---------------------------

                                       5<PAGE>   1
                                                                   EXHIBIT 10.10

                                  OFFICE LEASE

Lease Preparation Date:              June 10, 1999

Lessor:        FRANKLIN SELECT REALTY TRUST
               a California Corporation

Lessee:        SOFTWARE TECHNOLOGIES CORPORATION
               a California Corporation

Trade Name:    SAME

1       LEASE TERMS.

        1.01 Premises. The Premises referred to in this Lease contain
approximately Ten Thousand Nine Hundred Seventy-Two (10,972) rentable square
feet and are located as shown on Exhibit "A" attached. The parties hereby agree
that the rentable area of the Premises and Base Monthly Rent schedule shall be
adjusted following the execution of this Lease to reflect measurements made of
the actual rentable area of the Premises determined in accordance with the most
recent BOMA Standards. The address of the Premises is: 100 Marine Parkway, Suite
500, Redwood City, CA 94065.

        1.02 Project. The Project consists of approximately Eighty-One Thousand
Six Hundred Fifty-Seven (81,657) rentable square feet.

        1.03 Lessee's Notice Address. Lessee's Notice Address is the address of
the Premises as defined in Section 1.01 unless otherwise specified here: _______
________________________________________________________________________________

________________________________________________________________________________

        1.04 Lessor's Notice Address. Lessor's Notice address is: c/o
Continental Property Management Co., 3 Twin Dolphin Drive, Suite 195, Redwood
City, CA 94065.

        1.05 Lessee's Permitted Use. GENERAL OFFICE USE ONLY

        1.06 Lease Term. The Lease Term shall commence upon substantial
completion of tenant improvements, and shall terminate sixty (60) months
thereafter.

        1.07 Base Monthly Rent. See Special Provisions Page 1 (Exhibit D)
($__________) in lawful money of the United States of America.

        1.08 Security Deposit. See Special Provisions Page 1 (Exhibit D)
($__________) in lawful money of the United States of America.

                                       1
<PAGE>   2

        1.09 Lease Documentation Fee. N/A Dollars ($ N/A ), in lawful money of
the United States of America.

        1.10 Proportionate Share. Lessee's Proportionate Share is .1344.

        1.11

        1.12 Expense Base Year. The calendar year is 1999.

        1.13 Expense Base Rate. The Expense Base Rate is $ N/A .

        1.14 Tax Base Year. The calendar year is 1999.

2. DEMISE AND POSSESSION.

        2.01 Lessor leases to Lessee and Lessee leases from Lessor the Premises
described in Section 1.01. By entering the Premises, Lessee acknowledges that it
has examined the Premises and accepts the Premises in their present condition
subject only to such additional work Lessor has agreed to do as set forth on
Exhibit "B" attached hereto.

Notwithstanding the foregoing, Lessor warrants and represents that, as of the
commencement date of this Lease, (i) the Premises, the Building, and the Project
will comply with all applicable laws, rules, regulations, codes, ordinances,
covenants, conditions and restrictions ("Laws"), (ii) the Premises will be in
good and clean operating condition and repair, (iii) the electrical, mechanical,
HVAC, plumbing, sewer, elevator and other systems serving the Premises and the
Building will be in good operating condition and repair, and (iv) the roof of
the Building will be in good condition and water tight. Lessor shall, promptly
after receipt of notice from Lessee, remedy any non-compliance with such
warranty at Lessor's sole cost and expense.

        2.02 If for any reason Lessor cannot deliver possession of the Premises
due to the Premises not being Substantially Complete (as hereinafter defined) on
the date the Lease is to commence, as set forth in Section 1.06, Lessor shall
not be subject to any liability nor shall the validity of this Lease be affected
by the delay in delivery of possession. In the event the Premises are not
Substantially Complete on the date set forth in Section 1.06 and the delay is
not the fault of the Lessee, the Lease shall commence when the Premises is
deemed Substantially Complete and the new commencement and termination date
shall be set and agreed to by the Lessor and Lessee in writing and attached
hereto as Exhibit "B"; provided however, either Lessor or Lessee, unless such
party is the cause of the delay, has the right to cancel this Lease by written
notification if possession of the Premises is not delivered within one hundred
and twenty (120) days of the date the Lease Term is to commence as set forth in
Section 1.06. The Premises shall be deemed "Substantially Complete" when (i) the
Lessor has delivered the Premises to the Lessee, (ii) installation of the Tenant
Improvements has

                                       2
<PAGE>   3

occurred subject to the completion of punchlist items or minor corrective work,
(iii) Lessee has direct access from the street to the elevator lobby on the
floor where the Premises are located, (iv) basic services are available to the
Premises, and (v) to the extent required for the lawful occupancy of the
Premises, a temporary occupancy permit has been issued by the appropriate
governmental authorities. If Premises are not Substantially Complete for any
reason, other than delays caused by Lessee, or governmental authorities, or acts
of God, or other circumstances not in control of Lessor, on or before ninety
(90) days after Lease execution, then, in addition to Lessee's other rights and
remedies, Lessee may terminate this Lease by written notice to Lessor, whereupon
any monies previously paid by Lessee to Lessor shall be reimbursed to Lessee and
Lessor shall return the Security Deposit to Lessee.

        2.03 Lessee shall have the nonexclusive right, in common with others, to
use the Public Areas of the Project as specified herein. Lessee shall abide by
and conform to any and all Project Rules (as hereinafter defined) Lessor adopts
from time to time relating to the Public Areas of the Project. As used herein,
the "Public Areas" of the Project include all areas and facilities outside the
Premises and within the exterior boundary line of the Project that are provided
and designated by Lessor from time to time for the general nonexclusive use of
Lessor, Lessee and of other lessees of the Project and their respective
employees, suppliers, shippers, customers and invitees, including, but not
limited to, common entrances, lobbies, corridors, stairways, stairwells, public
restrooms, elevators, parking areas to the extent the use thereof is not
otherwise prohibited by this Lease, roadways, sidewalks, and decorative walls.

3. BASE MONTHLY RENT.

        3.01 On the first day of each calendar month of the Lease Term, Lessee
shall pay in advance, without any deduction, counterclaim or offset, prior
notice or demand, Base Monthly Rent at the place designated by Lessor. However,
the first month's rent is due and payable upon execution of this Lease. In the
event that the Lease Term commences on a day other than the first day of a
calendar month, or ends on a day other than the last day of a calendar month,
then the Base Monthly Rent for the first and/or last fractional months of the
Lease Term shall be prorated on the basis of the number of days elapsed in the
subject month.

        3.02 Intentionally Deleted.

        3.03 Any installment of Rent (as hereinafter defined) or any other
charge payable by Lessee hereunder which is not paid within ten (10) days after
it becomes due shall be considered past due and Lessee shall pay to Lessor as
Additional Rent a late charge equal to ten percent (10%) of such installment or
the sum of twenty-five Dollars ($25.00), whichever is greater, for each month or
fractional month transpiring from the date due until paid. A twenty-five Dollar
($25.00) handling charge shall be paid by Lessee to Lessor for each returned
check and, if two checks are returned in any twelve month period, Lessee may, at
Lessor's sole discretion, be required to pay all future payments of Rent and
other charges due by Lessee hereunder by money order or cashier's check.

                                       3
<PAGE>   4

        3.04 The amount of the Base Monthly Rent includes projected construction
of the Tenant Improvements as indicated on Exhibit "B" attached hereto. In the
event that Lessee requests Lessor to construct additional improvements and/or
final construction costs exceed original estimates, such costs or expenses, upon
itemized notice by Lessor, shall be paid by Lessee to Lessor, or Lessor may, at
its option, increase the Base Monthly Rent according to the terms and conditions
outlined on Exhibit "B", or elsewhere in this Lease.

4. ADDITIONAL RENT.

        4.01 Additional Rent. All charges payable by Lessee other than Base
Monthly Rent is called "Additional Rent". Unless this Lease provides otherwise,
Additional Rent is to be paid with the next monthly installment of Base Monthly
Rent and is subject to the provisions of Section 3.03. The term "Rent" whenever
used in this Lease means Base Monthly Rent and Additional Rent.

        4.02 Operating Expenses.

            A. Definitions:

            "Expense Comparison Year" is each calendar year after the Expense
Base Year.

            "Operating Expenses" are all costs and expenses (excluding Real
Property Taxes) incurred by Lessor in connection with the ownership, operation,
maintenance, management, repair, security and insurance of the Project,
including, but not limited to, the following costs: all supplies, materials,
labor and equipment, used in or related to the operation and maintenance of the
Project; all utilities, including but not limited to, water, electricity, gas,
heating, lighting, sewer waste disposal, security, air-conditioning and
ventilating costs and all charges relating to the use, ownership or operation of
the Project; all maintenance expenses and management costs, including reasonable
management fees charged by a third party, an administrative fee equal to ten
percent (10%) of Operating Expenses, and costs payable under janitorial and
service agreements related to the Project; all legal expenses and accounting
costs; all insurance premiums and costs, including, but not limited to, the
premiums and costs of fire, casualty and liability coverage, rent abatement and
earthquake insurance and any other type of insurance related to the Project; all
maintenance costs relating to the public and service areas within and around the
Project, including, but not limited to, sidewalks, landscaping, service areas,
driveways, parking areas, walkways, building exteriors (including painting),
signs and directories, including, for example, cost of resurfacing and
restriping parking areas; amortization (along with reasonable financing charges)
of capital improvements made to the Project which may be required by any
government authority or which shall improve the operating efficiency of the
Project; all Lessor's costs in managing, maintaining, repairing, operating and
insuring the Project, including for example, clerical, supervisory and
janitorial staff; however, such costs shall not

                                       4
<PAGE>   5

include depreciation on the Project, loan payments, executive salaries, or real
estate brokerage commissions.

Notwithstanding anything to the contrary in this Lease, "Operating Expenses"
shall not include and Lessee shall in no event have any obligation to perform or
to pay directly, or to reimburse Lessor for, all or any portion of the following
repairs, maintenance, improvements, replacements, premiums, claims, losses,
fees, charges, costs and expenses (collectively, "Costs"): (a) Costs occasioned
by casualties or by the exercise of the power of eminent domain; (b) Costs to
correct any construction defect in the Premises or the Building or to comply
with any covenant, condition, restriction, underwriter's requirement or law
applicable to the Premises, the Building or the Project on the commencement of
this Lease; (c) Costs of any renovation, improvement, painting or redecorating
of any portion of the Building or the Project, which is a part of other Premises
in the Project, and not made available for Lessee's use; (d) Insurance
deductibles in excess of $10,000, and co-insurance payments; (e) Costs incurred
in connection with the presence of any Hazardous Material, except to the extent
caused by the release or emission of the Hazardous Material in question by
Lessee; (f) Costs in the nature of amortization or other expense reserves; and
(g) Costs which could properly be capitalized under generally accepted
accounting principles, except to the extent amortized over the useful life of
the capital item in question.

            B. If the Operating Expenses incurred or paid by Lessor for any
Expense Comparison Year during the Lease Term are greater than the Operating
Expenses incurred or paid by Lessor for the Expense Base Year or Expense Base
Rate, as applicable, then Lessee shall pay as Additional Rent an amount equal to
the increase multiplied by Lessee's Proportionate Share as defined in Section
1.10. In the event of any partial Expense Comparison Year, Lessee shall pay the
increase, if any, based on the number of days of such Expense Comparison Year
included within the Lease Term.

            C. As close as reasonably possible to the end of each calendar year,
Lessor shall provide Lessee with a statement of Lessor's best estimate of
Lessee's share of the increase in Operating Expenses for the coming year over
the cost for the Expense Base Year or Expense Base Rate, as applicable. This
amount shall be divided by twelve (12) and beginning with the next regular Base
Monthly Rent payment, Lessee shall pay one-twelfth (1/12th) of the increase
multiplied by the number of elapsed months from the commencement of the Expense
Comparison Year and thereafter shall continue to pay one twelfth (1/12th) of the
increase each month until Lessee receives the next Expense Comparison Year's
statement. As close as reasonably possible to the end of each calendar year,
Lessor shall provide Lessee a statement showing the total actual Operating
Expenses for the calendar year just ended, and Lessee's share of any increase
over the Expense Base Year or Expense Base Rate, as applicable. If Lessee's
estimates paid to date for the preceding calendar year are less than Lessee's
share of the increase, Lessee shall pay the difference concurrently with the
next payment of Base Monthly Rent. In the event that Lessee has paid more than
its share of estimates for the preceding calendar year, Lessor shall credit the
amount towards Lessee's future Operating Expense obligations.

                                       5
<PAGE>   6

            D. Operating Expenses mean the total Operating Expenses for any
calendar year in which the Project is ninety-five percent (95%) occupied.
Operating Expenses for any year (including Lessee's Expense Base Year) during
which the average occupancy of the Project is less than ninety-five percent
(95%) shall be calculated based upon the Operating Expenses that would have been
incurred if the Project were ninety-five percent (95%) occupied during the
entire calendar year.

            E. Lessee shall not be entitled to any reduction, refund, offset,
allowance or rebate in Base Monthly Rent or any other sums due if the Operating
Expenses for any Expense Comparison Year are less than those of the Expense Base
Year or the Expense Base Rate, as applicable, nor shall the failure by Lessor to
provide Lessee with a statement of Operating Expenses for any year of the Lease
Term constitute a waiver by Lessor of its right to collect Lessee's share of any
increase in Operating Expenses. In addition, if, for any reason Lessor should
not elect to bill Lessee for Operating Expense increases or estimates for a
particular Expense Comparison Year, Lessor's right to charge Lessee for such
expenses in subsequent years is not waived.

        4.03 Taxes.

            A. As Additional Rent, Lessee shall reimburse Lessor upon demand for
all taxes, payable by Lessor (other than net income taxes) as defined and stated
in the following paragraphs.

            B. Definitions:

            "Tax Base Year" is the tax fiscal year as indicated in Section 1.13.
However, if the Project in which the Premises are located is not yet fully
assessed or completed as improved real property by the tax fiscal year shown in
Section 1.13, the Tax Base Year is the year in which the first tax bill reflects
the full assessed value of the Project.

            "Tax Comparison Year" is each tax fiscal year commencing on the
anniversary of the Tax Base Year and ending twelve (12) months thereafter.

            "Real Property Taxes" are: (i) any fee, license fee, license tax,
business license fee, commercial rental tax, levy, charge, assessment, penalty
or tax imposed by any taxing authority against the Project; (ii) any tax or fee
on Lessor's right to receive, or the receipt of, rent or income from the Project
or against Lessor's business of leasing the Project or any gross tax receipts;
(iii) any tax or charge for fire protection, streets, sidewalks, road
maintenance, refuse or other services provided to the Project by any
governmental agency; (iv) any tax imposed upon this transaction, or based upon a
re-assessment of the Project due to a change in ownership or transfer of all or
part of Lessor's interest in the Project; and (V) any charge or fee replacing,
substituting for, or in addition to any tax previously included within the
definition of Real Property Taxes. Real Property Taxes do not, however, include
Lessor's federal or state income, franchise, inheritance or estate taxes, or any
tax or assessment expense or any increase therein (i) levied on Lessor's rental
income, unless such

                                       6
<PAGE>   7

tax or assessment expense is imposed in lieu of real property taxes; (ii) in
excess of the amount which would be payable if such tax or assessment expense
were paid in installments over the longest possible term; (iii) imposed on land
and improvements other than the Project; (iv) attributable to Lessor's gift,
transfer, or state taxes; or (v) resulting from the improvement of any of the
Building or the Project for the sole use of other occupants.

            C. If the Real Property Taxes incurred or paid by Lessor for any Tax
Comparison Year ending or commencing during the Lease Term, are greater than the
Real Property Taxes incurred or paid by Lessor for the Tax Base Year, then
Lessee shall pay Lessor an amount equal to the increase multiplied by Lessee's
Proportionate Share as indicated in Section 1.10. In the event of any partial
Tax Comparison Year, Lessee shall pay the increase, if any, based on the number
of days of such Tax Comparison Year included within the Lease Term.

            D. Following the end of each Tax Comparison Year, Lessor shall
provide Lessee a statement of the amount of the increase, if any, in Real
Property Taxes, but failure to do so by Lessor does not constitute a waiver of
its right to collect Lessee's share of the increase in Real Property Taxes. Upon
receipt of the statement, Lessee shall pay in full the amount of its share of
any increase shown on such statement. In the event that any Tax Comparison Year
amount is less than the Tax Base Year amount, Lessee shall not be entitled to
any reduction in rent or to any refund, offset, allowance or rebate of any
nature. At Lessor's sole discretion, Lessor may charge Lessee estimated Real
Property Taxes and such estimates shall be calculated and paid in a similar
manner as described in Section 4.02C for Operating Expense estimates. If the
Lease Term expires before Lessor is able to determine the increase, if any, for
the Lessee's final Tax Comparison Year, Lessor shall estimate the increase and
Lessee shall pay the estimated amount upon demand by Lessor.

            E. Lessee shall pay all taxes charged against trade fixtures,
furnishings, equipment or any other personal property belonging to Lessee.
Lessee shall have personal property taxes billed separately from the Project. If
any of Lessee's personal property is taxed with the Project, Lessee shall pay
Lessor the taxes for the personal property upon demand by Lessor.

        4.04 Based on Lessee's Proportionate Share as defined in Section 1.10,
Lessee shall pay as Additional Rent to Lessor Lessee's share of any parking
charges, utility surcharges, occupancy taxes, or any other costs resulting from
any statutes or regulations, or interpretations thereof, enacted by any
governmental authority in connection with the use or occupancy of the Project or
the parking facilities serving the Project, or any part thereof.

5. SECURITY DEPOSIT.

        If Lessee defaults with respect to any provision of this Lease, Lessor
may retain, use or apply all or any part of the Security Deposit specified in
Section 1.08 to compensate Lessor for any loss or damage suffered by Lessee's
default including but not limited to, the payment of Base Monthly Rent,
Additional Rent or other sums due hereunder, and for payment of

                                       7
<PAGE>   8

amounts Lessor is obligated to expend by reason of Lessee's default. If any
portion is so retained, used or applied, Lessee, upon demand, shall deposit with
Lessor, an amount sufficient to restore the Security Deposit to its original
amount, as adjusted per Section 3.02, except as otherwise provided by applicable
law. Lessor shall not be required to keep the Security Deposit separate from its
general funds, and Lessee shall not be entitled to interest on the Security
Deposit. Within sixty (60) days after the expiration or earlier termination of
the Lease Term and after Lessee has vacated the Premises, Lessor shall return to
Lessee the entire Security Deposit except for amounts that Lessor has deducted
therefrom that are needed by Lessor to cure defaults of Lessee under the Lease
or compensate Lessor for damages for which Lessee is liable pursuant to this
Lease. In no event shall Lessee have the right to apply any part of the Security
Deposit to any Rent payable under this Lease. No trust relationship is created
herein between Lessor and Lessee with respect to the Security Deposit.

6. LEASE DOCUMENTATION FEE.

7.      USE OF PREMISES; QUIET CONDUCT.

        7.01 The Premises may be used and occupied only for Lessee's Permitted
Use as shown in Section 1.05 and for no other purpose, without obtaining
Lessor's prior written consent, which consent Lessor may withhold in its sole
and absolute discretion. Lessee shall comply with all covenants, conditions and
restrictions affecting the Premises. Lessee shall promptly comply with all laws,
ordinances, orders and regulations affecting the Premises. Lessee shall not
perform any act or carry on any practices that may injure the Project or the
Premises or be a nuisance or menace, or disturb the quiet enjoyment of other
lessees in the Project, including, but not limited to, equipment which causes
vibration, use or storage of chemicals, or heat or noise which is not properly
insulated. Lessee shall not cause, maintain or permit any outside storage on or
about the Premises. In addition, Lessee shall not allow any condition or thing
to remain on or about the Premises which diminishes the appearance or aesthetic
qualities of the Premises and/or the Project or the surrounding property.
Additionally, Lessee shall not cause any nuisance or waste on the Premises
and/or the Project.

Notwithstanding anything to the contrary in this Lease, Lessee shall not be
required to comply with or cause the Premises to comply with any laws,
ordinances, order and regulations unless such compliance is necessitated due to
Lessee's particular use of the Premises.

        7.02 California Health and Safety Code Section 25359.7(b) requires any
lessee of real property who knows, or has reasonable cause to believe, that any
release of a hazardous

                                       8
<PAGE>   9

substance has come to be located on or beneath such real property to give
written notice of such condition to the owner. Lessee shall comply with the
requirements of Section 25359.7(b) and any successor statute thereto and with
all other statutes, laws, ordinances, rules, regulations and orders of
governmental authorities with respect to hazardous substances. Lessor shall have
the right to pursue all legal and equitable remedies available to it in the
event of failure of Lessee to comply with the requirements of this Section 7.02.

8. TENANT IMPROVEMENTS.

        Tenant Improvements to be performed in the Premises by Lessor prior to
the commencement of the Lease Term shall be performed in accordance with the
terms and provisions entitled "Lessor's Work" as noted on Exhibit B. Thereafter
during the Lease Term, Lessor shall be under no obligation to alter, change,
decorate or improve the Premises.

9. PARKING.

        Lessee and Lessee's customers, suppliers, employees, and invitees have
the nonexclusive right to their prorata share of parking, based on 2.9 stalls
per 1,000 rentable square feet of office space (which equates to approximately
32 parking stalls), and shall park in common with other lessees in the parking
facilities of the Project as designated by Lessor. Lessee agrees not to
overburden the parking facilities and agrees to cooperate with Lessor and other
lessees in the use of the parking facilities. Lessor reserves the right to, on
an equitable basis, assign specific spaces with or without charges to Lessee as
Additional Rent, make changes in the parking layout from time to time, and to
establish reasonable time limits on parking.

10. UTILITIES AND SERVICES.

        10.01 Description of Services. During the hours of 8:00 a.m. to 6:00
p.m. ("Business Hours") on weekdays except public holidays ("Business Days"),
and subject to the Project Rules (as hereinafter defined), Lessor shall furnish
to the Premises "Project Standard" amounts of electricity (not less than four
(4) watts per rentable square foot), water, heat, airconditioning, and elevator
service consisting of either attended or non-attended automatic elevators. On
Business Days, subject to Project Rules, Lessor shall furnish to the Premises
and its attendant restrooms and other public areas, Project Standard janitorial
service, window washing, fluorescent tube replacement and toilet room supplies;
provided, however, that Lessor shall not be required to provide janitorial
services for portions of the Premises used for preparing or consuming food or
beverages or for similar purposes. Lessor reserves the right to modify the
services as long as the services remain consistent with those provided in
comparable projects in the area. During non-Business Hours, Lessor shall furnish
the Premises with water and elevator service, and, subject to the provisions of
Section 10.02 ("Payment for Additional Utilities and Services"), electricity
and, upon twenty-four (24) hours prior notice from Lessee (notice may not be
required if the Premises are equipped with an over-ride meter), reasonable heat
and air-conditioning. Any additional utilities or services that Lessor may
agree to provide at Lessee's request shall be at Lessee's sole cost and

                                       9
<PAGE>   10

expense. Lessee shall also be responsible for and shall pay lessor any
additional costs (including, without limitation, the costs of installation of
additional heating, air-conditioning or ventilation equipment ("HVAC"), if
required by Lessor) incurred because of the failure of the HVAC system to
perform its function due to (1) arrangement of partitioning in the Premises or
changes or alterations thereto, (2) or from any use of heat-generating machinery
or equipment, or (3) from occupancy of the Premises exceeding one person per one
hundred (100) rentable square feet, or (4) from failure of Lessee to keep all
HVAC vents within the Premises free of obstruction. Lessee at all times agrees
to cooperate fully with Lessor and to abide by the reasonable regulations and
requirements which Lessor may prescribe for the proper functioning and
protection of the HVAC system. Lessor, its contractors and agents throughout the
Lease Term, shall have free access to any and all mechanical installations of
Lessor or Lessee, including, but not limited to, air-cooling, fan, ventilating
and machine rooms and electrical and telephone closets; and Lessee agrees there
shall be no construction of partitions or other obstructions which may interfere
with Lessor's free access thereto, or interfere with the moving of Lessor's
equipment to and from the enclosures containing such installations. Lessee
further agrees that neither Lessee, nor its agents, employees or contractors
shall at any time enter such enclosures or tamper with, adjust or touch or
otherwise in any manner affect such mechanical installations.

        10.02 Payment for Additional Utilities and Services.

            A. Lessee shall pay for heat and air-conditioning furnished at
Lessee's request during non-Business Hours on an hourly basis at one hundred
percent (100%) of the actual cost charged by the utility for such services,
including without limitation the cost of providing such services to the other
parts of the Project which are heated or air-conditioned in common with the
Premises.

            B. In the event Lessee's use of electricity, water or any other
utility exceeds the Project Standard use of such utility, Lessor may determine
the amount of such excess use by any reasonable means (including, but not
limited to, the installation at Lessor's request but at Lessee's expense of a
separate meter, submeter or other measuring device) and charge Lessee for the
cost thereof. In addition, Lessor may impose a reasonable charge for the use of
any additional or unusual janitorial services required by Lessee because of any
above-Project Standard tenant improvements in the Premises, the carelessness of
Lessee or the nature of Lessee's business (including hours of operation).

            C. All sums payable hereunder by Lessee for additional services or
for excess utility usage shall be payable as Additional Rent within ten (10)
days after notice from Lessor of the amounts due; except that Lessor may require
Lessee to pay monthly for the estimated cost of Lessee's excess utility usage if
such usage occurs on a regular basis, and such estimated amounts shall be
payable in advance on the first day of each month.

        10.03 Interruption of Services. In the event of an interruption in, or
failure, or inability to provide any of the above described services or
utilities, such interruption, failure or inability shall not constitute an
eviction of Lessee, constructive or otherwise, or impose

                                       10
<PAGE>   11

upon Lessor any liability whatsoever, including, but not limited to, liability
for consequential damages or loss of business by Lessee. If such interruption
continues for more than sixty (60) days, and the Premises are thereby rendered
untenantable for Lessee's use, Lessee may abate its Rent for the period of such
interruption. Lessee hereby waives the provisions of California Civil Code
Section 1932(l) or any other applicable existing or future law, ordinance or
governmental regulation permitting the termination of this Lease due to such
interruption, failure or inability.

        10.04 Governmental Controls. In the event any governmental authority
having jurisdiction over the Project promulgates or revises any law, ordinance
or regulation or building, fire or other code or imposes mandatory or voluntary
controls or guidelines on Lessor or the Project relating to the use or
conservation of energy or utilities or the reduction of automobile or other
emissions (collectively "Controls") or in the event Lessor is required or elects
to make alterations to the Project in order to comply with such mandatory or
voluntary Controls Lessor may, in its sole discretion, comply with such
Controls, or make such alterations to the Project related thereto. Such
compliance and the making of such alterations shall not constitute an eviction
of Lessee, constructive or otherwise, or impose upon Lessor any liability for
consequential damages or loss of business by Lessee.

11. ALTERATIONS, MECHANICS LIENS.

        11.01 Lessee shall not make any alterations to the interior of the
Premises without Lessor's prior written consent, which consent shall not be
unreasonably withheld. If Lessor gives its consent, no such alterations shall
proceed without Lessor's prior written approval of (i) Lessee's contractor, (ii)
certificates of insurance by Lessee's contractor for public liability and
automobile liability and property damage insurance with limits not less than
$1,000,000.00/$250,000.00/$500,000.00, respectively, endorsed to show Lessor as
an additional insured and for worker's compensation as required, and (iii)
detailed plans and specifications for such work and as built plans upon
completion of such work. Lessee agrees that it shall keep the Premises and the
Project free of all mechanic's liens and any mechanics lien placed against the
Project shall be removed within ten (10) days of receipt of notice of intent to
file lien. In addition, before alterations may begin, valid building permits or
other permits or licenses required must be furnished to Lessor, and, once the
alterations begin, Lessee shall diligently and continuously pursue their
completion. At Lessor's option, any alterations may become part of the realty
and belong to Lessor. If required by Lessor, Lessee shall pay, prior to the
commencement of construction, an amount determined by Lessor as necessary to
cover the costs of demolishing such alterations and/or the cost of returning the
Premises to their condition before any such alterations. Lessor may also require
Lessee to provide Lessor, at Lessee's sole cost and expense, a payment and
performance bond in form acceptable to Lessor, in a principal amount not less
than one and one-half times the estimated cost of such alterations, to insure
Lessor against any liability for mechanic's and materialmen's liens and to
insure completion of the work.

Notwithstanding anything to the contrary in this Section 1 1.01, Lessee shall
have the right to construct non-structural alterations and improvements to the
Premises without Lessor's prior

                                       11
<PAGE>   12

approval, if the cost of any alteration project does not exceed $10,000,
provided Lessee secures all necessary permits, licenses, and required
governmental approvals and "Copies of such are provided to Lessor. Upon Lessee's
request from time to time, Lessor shall advise Lessee in writing whether Lessor
will require Lessee to remove any alterations or improvements upon termination
of this Lease. Lessee's trade fixtures, furniture, equipment and other personal
property installed in the Premises shall at all times be Lessee's property, and
Lessee may remove any or all of such property from the Premises at any time and
from time to time provided that Lessee repairs all damage caused by such
removal. Lessor shall have no lien or other interest whatsoever in any item of
such property.

        11.02 Notwithstanding anything in 1 1.01, Lessee may, with written
consent of Lessor, install trade fixtures, equipment, and machinery in
conformance with the ordinances of the applicable city and county, and they may
be removed upon termination of this Lease provided the Premises are not damaged
by their removal.

        11.03 All private telephone systems and/or other related
telecommunications equipment and lines may not be installed without Lessor's
prior written consent. In addition, if Lessor gives consent, all equipment must
be installed within the Premises and, upon termination of this Lease must be
removed and the Premises restored to the same condition as before such
installation.

        11.04 Lessee shall pay all costs for alterations and shall keep the
Premises, the Project and the underlying real property free from any liens
arising out of work performed for, materials furnished to or obligations
incurred by Lessee.

        11.05 Lessor shall have the right to construct or permit construction of
tenant improvements in or about the Project for existing and new lessees and to
alter any Public Areas in and around the Project. Notwithstanding anything that
may be contained in this Lease, Lessee acknowledges the existence of this right
of Lessor and agrees that such construction shall not be deemed to constitute a
default of this Lease by Lessor and Lessee waives any such claim which it might
have arising from such construction. Lessor shall not exercise any rights under
Section 11.05 or 14.03, if such exercise would unreasonably interfere with
Lessee's use of or access to the Premises or materially increase the obligations
or decrease the rights of Lessee under the Lease. Lessor shall use its best
efforts to minimize any disruption to Lessee.

        11.06 Lessee shall indemnify Lessor against any and all loss, cost,
damage, injury and expense arising out of or in any way related to claims for
work or labor performed, or materials or supplies furnished, to or at the
request of Lessee or in connection with performance of any work done for the
account of Lessee in the Premises, the Public Areas or the Project, whether or
not Lessee obtained Lessor's permission to have such work done, labor performed,
or materials or supplies furnished.

                                       12
<PAGE>   13

12. FIRE INSURANCE; HAZARDS AND LIABILITY INSURANCE.

        12.01 Except as expressly provided as Lessee's Permitted Use, or as
otherwise consented to by Lessor in writing, Lessee shall not do or permit
anything to be done within or about the Premises which shall increase the
existing rate of insurance on the Project or cause cancellation of any insurance
policy covering the Project, nor shall Lessee keep, use or sell, or permit
anyone to keep, use or sell, any article in or about the Premises, which may be
prohibited by the standard form of fire and other insurance policies. Lessee
shall, at its sole cost and expense, comply with any requirements pertaining to
Lessee's particular use of the Premises or any insurance organization insuring
the Project and Project-related apparatus. Lessee agrees to pay to Lessor, as
Additional Rent, any increases in premiums on policies resulting from Lessee's
Permitted Use or other use consented to by Lessor which increases Lessor's
premiums or requires extended coverage by Lessor to insure the Premises.

        12.02 Lessee, at all times during the term of this Lease and at Lessee's
sole expense, shall maintain a policy of standard fire and extended coverage
insurance with "all risk" coverage on all Lessee's improvements and alterations
in or about the Premises (including the Tenant Improvements constructed by
Lessor in accordance with Exhibit "B" hereto) and on all personal property and
equipment to the extent of at least ninety percent (90%) of their full
replacement value. The proceeds from this policy shall be used by Lessee for the
replacement of personal property and equipment and the restoration of Lessee's
improvements and/or alterations.

        12.03 Lessee, at all times during the Lease Term and at Lessee's sole
expense, shall maintain a policy of commercial general liability coverage with
limits of not less than One Million Dollars ($1,000,000.00) combined single
limit for bodily injury and property damage insuring against all liability of
Lessee and its authorized representatives arising out of or in connection with
Lessee's use or occupancy of the Premises. This policy of insurance shall name
Lessor as an additional insured and shall release Lessor from any claims for
damage to any person, to the Premises, and to the Project, and to Lessee's
personal property, equipment, improvements and alterations in or on the Premises
or the Project, caused by or resulting from risks which are to be insured
against by Lessee under this Lease.

        12.04 All insurance required to be provided by Lessee under this Lease
shall (a) be issued by an insurance company authorized to do business in the
State of California and which is satisfactory to Lessor, (b) be primary and
noncontributing with any insurance carried by Lessor, and (c) contain an
endorsement requiring at least thirty (30) days prior written notice of
cancellation to Lessor before cancellation or change in coverage, scope or limit
of any policy. Lessee shall deliver a certificate of insurance or a copy of the
policy to Lessor within thirty (30) days of execution of this Lease and shall
provide evidence of renewed insurance coverage at each anniversary, prior to the
expiration of any current policies. Lessee's failure to provide evidence of this
coverage to Lessor may, in Lessor's sole discretion, constitute a default under
this Lease.

                                       13
<PAGE>   14

        12.05 Notwithstanding anything in this Lease to the contrary, Lessor and
Lessee mutually release and discharge each other and waive any rights of
subrogation accruing from all claims and liabilities in connection with property
on, or activities conducted in, the Premises or in the Project to the extent
such claims or liability is required to be covered by insurance under this
Lease. Each insurance policy Lessor or Lessee is required to maintain under this
Lease shall include a waiver of the insured's rights of subrogation against the
other party. During the Lease Term, Lessor shall maintain a policy of "all risk"
property insurance covering the Project for full replacement costs thereof, the
premium for which shall be part of Operating Expenses. Lessor shall have the
right to satisfy the requirements of this Section 12.05 through the utilization
of blanket policies of insurance.

13. WAIVER OF CLAIMS AND INDEMNIFICATION.

        13.01 Neither Lessor nor any shareholders, partners, officers or
directors comprising Lessor (collectively, the "Indemnitees") shall be liable or
responsible in any way for, and Lessee hereby waives all claims against the
Indemnitees with respect to or arising out of: (a) any death or any injury of
any nature whatsoever that may be suffered or sustained by Lessee or any
employee, licensee, invitee, guest, agent or customer of Lessee or any other
person, from any causes whatsoever; or (b) for any loss or damage or injury to
any property outside or within the Premises belonging to Lessee or its
employees, agents, customers, licensees, invitees, guests or any other person,
unless such injury or damage is caused by the negligence or willful misconduct
of the Indemnitees or the breach of this Lease by the Indemnitees. Without
limiting the generality of the foregoing, except as to claims caused by the
negligence or willful misconduct of the Indemnitees, or the breach of this Lease
by the Indemnitees, none of the Indemnitees shall be liable for any damage or
damages of any nature whatsoever to persons or property caused by explosion,
fire, theft or breakage, by sprinkler, drainage or plumbing systems, by failure
for any cause to supply adequate drainage, by the interruption of any public
utility or service, by steam, gas, water, rain or other substances leaking,
issuing or flowing into any part of the Premises, by natural occurrence, acts of
the public enemy, riot, strike, insurrection, war, court order, requisition or
order of governmental body or authority, or for any damage or inconvenience
which may arise through repair, maintenance or alteration of any part of the
Project, or by anything done or omitted to be done by any lessee, occupant or
person in the Project. In addition, none of the Indemnitees shall be liable for
any loss or damage for which Lessee is required to insure, nor for any loss or
damage resulting from any construction, alterations or repair.

        In addition, none of the Indemnitees shall be liable for any loss or
damage for which Lessee is required to insure, nor for any loss or damage
resulting from any construction, alterations or repairs, contracted for by
Lessee.

        13.02 Except to the extent caused by the negligence or willful
misconduct of the Indemnitees or the breach of this Lease by the Indemnitees,
Lessee shall hold the Indemnitees harmless and defend the Indemnitees from and
against any and all losses, damages, claims, or liability for any damage to any
property or injury, illness or death of any person: (a) occurring in, on, or
about the Premises, or any part thereof, arising at any time

                                       14
<PAGE>   15

and from any cause whatsoever other than solely by reason of the gross
negligence or willful misconduct of the Indemnitees, their employees or agents;
and (b) occurring in, on, or about any part of the Project other than the
Premises, when such damage, injury, illness or death shall be caused in whole or
in part by the negligence or willful misconduct of Lessee, its agents, servants,
employees, invitees or licensees (including, without limitation, when such
damage, injury, illness or death shall have been caused in part by the
Indemnitees, their employees or agents). The provisions of this Article 13 shall
survive the termination of this Lease with respect to any damage, injury,
illness or death occurring prior to such termination. References herein to the
Indemnitees shall include their respective agents and employees. Lessor shall
hold Lessee harmless and indemnify, protect and defend Lessee from and against
any and all losses, damages, claims or liability for any damage to any property
or injury, illness or death of any person to the extent arising from Lessor's
negligence or willful misconduct.

14. MAINTENANCE AND REPAIRS.

        14.01 During the Lease Term, Lessee shall take good care of the
Premises, and, at Lessee's expense, but under the direction of Lessor, shall
repair and maintain the Premises, including the interior walls and ceilings of
the Premises and improvements and alterations on the Premises, in a first class
condition, and keep the Premises in a clean and orderly condition. As a material
part of the consideration for this Lease, Lessee hereby waives the provisions of
California Civil Code Section 1932(l), 1941 and 1942 or any other applicable
existing or future law, ordinance or governmental regulation permitting Lessee
to make repairs at the Lessor's expense.

Notwithstanding anything to contrary in this Lease, Lessor shall perform and
construct, and Lessee shall have no responsibility to perform or construct, any
repair, maintenance, or improvements (i) necessitated by the acts or omissions
of Lessor or any other occupant of the Project or their respective agents,
contractors or Invitees, (ii) occasioned by fire, acts of God or other casualty
or by the exercise of the power of eminent domain, (iii) required as a
consequence of any violation of applicable Laws or construction defects in the
Premises, the Building or the Project as of the commencement of this Lease, (iv)
for which Lessor has a right of reimbursement from others, (v) which could be
treated as a capital expenditure under generally accepted accounting principles,
(vi) to the electrical, mechanical, plumbing, water, sewer and HVAC systems
serving the Premises, the Building and the Project, and (vii) to any portion of
the Building or the Project outside the demising walls of the Premises.

        14.02 Lessor shall maintain or cause to be maintained in reasonably good
order, condition and repair, the structural portions of the roof, foundations,
floors and exterior walls of the Project, the equipment and facilities by which
utilities and services are provided and the Public Areas of the Project, such as
elevators, stairs, corridors and restrooms; provided, however, that Lessee shall
pay the cost of repairs for damage occasioned by Lessee's use of the Premises or
the Project or any act or omission of Lessee or Lessee's employees, agents,
contractors and licensees, or Lessee's customers, guest or invitees. Lessor
shall be under no

                                       15
<PAGE>   16

obligation to inspect the Premises. Lessee shall promptly report in writing to
Lessor any defective condition known to it, which Lessor is required to repair.

        14.03 Lessor hereby reserves the right, at any time and from time to
time, without the same constituting an actual or constructive eviction, to make
alterations, additions, repairs, improvements to or in or to decrease the size
of area of, all or any part of the Project, the fixtures, and equipment therein,
the heating, ventilation, air-conditioning, plumbing, electrical, fire
protection, life safety, security and all mechanical systems of the Project, the
Public Areas and all other parts of the Project, and to change the arrangement
and/or location of entrances or passageways, doors and doorways, corridors,
elevators, stairs, toilets and other public parts of the Project.

15. AUCTIONS, SIGNS, LANDSCAPING.

        Lessee shall not conduct or permit to be conducted any sale by auction
on the Premises. Lessor shall have the right to control landscaping and approve
the placement, size, and quality of signs. Lessee shall comply with the terms
and conditions regarding sign criteria set forth in the "Project Rules". Lessee
shall not make alterations or additions to the landscaping and shall not place
signs which are visible from the exterior of the Project without the prior
written consent of Lessor, which consent Lessor may withhold in its sole and
absolute discretion. Any signs not in conformity with this Lease may be removed
by Lessor at Lessee's expense.

16. ENTRY BY LESSOR.

        Lessee shall permit Lessor and Lessor's agents to enter the Premises at
all reasonable times for the purpose of inspecting the same, or for the purpose
of maintaining the Project, or for the purpose of making repairs, alterations or
additions to any portion of the Project, including the erection and maintenance
of such scaffolding, canopies, fences and props as may be required, or for the
purpose of posting notices of non-responsibility for alterations, additions or
repairs, or for the purpose of showing the Premises to prospective lessees
during the last six months of the Lease Term, or placing upon the Project any
usual or ordinary "for sale" signs, without any rebate or abatement of Rent and
without any liability to Lessee for any loss of occupation or quiet enjoyment of
the Premises thereby occasioned. Lessee shall permit Lessor at any time within
one hundred eighty (180) days prior to the expiration of this Lease, to place
upon the Premises any usual or ordinary "to let" or "to lease" signs. For each
of the above purposes, Lessor shall at all times have and retain a key which to
unlock all of the doors in, upon and about the Premises, excluding Lessee's
vaults, safes and filing cabinets. Lessee shall not alter any lock or install a
new or additional lock or any bolt on any door of the Premises without the prior
written consent of Lessor, which shall not be unreasonably withheld. If Lessor
gives its consent, such work shall be undertaken by Lessor's locksmith or a
locksmith approved by Lessor, at Lessee's sole cost, and Lessee shall furnish
Lessor with a key. Lessor retains the right to charge Lessee for restoring any
altered doors to their condition prior to the installation of the new or
additional locks.

                                       16
<PAGE>   17

17. ABANDONMENT.

        Lessee shall not abandon the Premises at any time during the Lease Term.
If Lessee abandons the Premises, or is dispossessed by process of law, or
otherwise, any personal property belonging to Lessee left in or about the
Premises will, at the option of Lessor be deemed abandoned and may be disposed
of by Lessor in the manner provided for by the laws of the State of California.

18. DESTRUCTION.

        18.01 Should the Premises or the Project be partially destroyed by any
cause, this Lease shall continue in full force and effect and Lessor, at
Lessor's own cost and expense, shall promptly commence the work of repairing and
restoring the Premises to their prior condition providing that the work can be
accomplished under all applicable government laws and regulations within six (6)
months from the date of damage at a cost not exceeding twenty-five percent (25%)
of the total replacement cost of the Premises or the Project, as the case may
be. Within thirty (30) days of the occurrence of partial destruction, Lessor may
terminate this Lease as of the date of the occurrence if nine (9) months or less
remain in the Lease Term.

        18.02 Should the Premises or the Project be so far destroyed that they
cannot be repaired or restored to their former condition within six (6) months
of the date of damage or at a cost exceeding twenty-five percent (25%) of the
total replacement cost of the Premises or the Project, as the case may be,
Lessor may at Lessor's option either:

            A. Continue this Lease in full force and effect by repairing and
restoring, at Lessor's own cost and expense, the Premises to their former
condition; or

            B. Terminate this Lease by giving Lessee written notice of such
termination.

        18.03 Any insurance proceeds received by Lessor because of the total or
partial destruction of the Premises or the Project shall be the sole property of
Lessor, free from any claims of Lessee, and may be used by Lessor for whatever
purposes Lessor may desire.

        18.04 Should Lessor elect to repair and restore the Premises to their
former condition, there shall be a proportional abatement in the amount of Rent
payable during the period of repair and restoration. The Rent due under the
terms of this Lease shall be reduced between the date of destruction and the
date of completion of restoration and repair based on the extent to which
destruction interferes with Lessee's use of the Premises, as reasonably
determined by Lessor.

        18.05 Lessee hereby waives California Civil Code Sections 1932(2) and
1934(4) providing for termination of hiring upon destruction of the thing hired.

                                       17
<PAGE>   18
        18.06 If the Premises are condemned or damaged by any peril and Lessor
does not elect to terminate the Lease or is not entitled to terminate the Lease
pursuant to its terms, then Lessee shall have the option to terminate the Lease
if the Premises cannot be, or are not in fact, fully restored by Lessor to their
prior condition within one hundred eighty (180) days after the condemnation or
damage.

19. ASSIGNMENT, SUBLETTING AND TRANSFERS OF OWNERSHIP.

        19.01 Lessee shall not, without Lessor's prior written consent, assign,
sell, mortgage, encumber, convey, or otherwise transfer all or any part of
Lessee's leasehold estate, or permit the Premises to be occupied by anyone other
than Lessee and Lessee's employees or sublet the Premises or any portion thereof
(a "Transfer"). Lessee must supply Lessor with any and all documents deemed
necessary by Lessor to evaluate any proposed Transfer at least thirty (30) days
in advance of Lessee's proposed Transfer date.

        19.02 Lessor, within thirty days after receipt of such documents, may
terminate this Lease on the date the Transfer was to have taken effect; in this
event, Lessor may, but is not obligated to, effect a transfer directly with the
transferee. In the case of a sublease, Lessor shall also have the right to
terminate this Lease with respect to that portion of the Premises proposed to be
subleased or that portion of the Lease Term during which the proposed sublease
is to be in effect, in which event, Lessee's liability and this Lease shall
remain in full force and effect for the remainder of the Lease Term as to the
balance of the Leased Premises.

Notwithstanding the above, in the case of a Sublease, Lessor shall not terminate
this Lease with respect to (i) any permitted Transfer under Section 19.06 or
(ii) that portion of the Premises proposed to be subleased or that portion of
the lease Term during which the proposed sublease is to be in effect, if not
more than fifty percent (50%) of the Premises is being sublet. If more than
fifty percent (50%) of the Premises is being sublet, and Lessor elects to
exercise their right of termination, Lessee's rent, security deposit and prorata
share shall be adjusted accordingly to reflect the remaining Premises.

        19.03 If Lessor does not elect to terminate this Lease, in whole or in
part, as stated in Section 19.02, Lessor shall not unreasonably withhold its
consent except that such consent need not be granted if: (a) in the reasonable
judgement of Lessor the transferee is of a character or is engaged in a business
which is not in keeping with the standards of Lessor for the Project; (b) in the
reasonable judgement of Lessor any purpose for which the transferee intends to
use the Premises is not in keeping with the standards of Lessor for the Project;
provided in no event may any purpose for which transferee intends to use the
Premises be in violation of this Lease; (c) the portion of the Premises subject
to the Transfer is not regular in shape with appropriate means of entering and
exiting, including adherence to any local, county or other governmental codes,
or is not otherwise suitable for the normal purposes associated with such a
Transfer; or (d) Lessee is in default under this Lease or any other lease with
Lessor.

                                       18

<PAGE>   19

        19.04 In the event Lessor consents to a Transfer, Lessee shall pay
Lessor fifty percent (50%) of the excess (after deduction of reasonable broker
commissions payable by Lessee in connection with such Transfer), if any, of the
Rent and other charges reserved in the Transfer over the allocable portion of
the Rent and other charges hereunder for the portion of the Premises subject to
the Transfer. For the purposes of this Section 19.04, the Rent reserved in the
Transfer shall be deemed to include any lump sum payment or other consideration
given to Lessee in consideration for the Transfer. Lessee shall pay or cause the
transferee to pay to the Lessor such sums as Additional Rent together with the
monthly installments of Rent due.

        19.05 Any consent to any Transfer which may be given by Lessor, or the
acceptance of any Rent, charges or other consideration by Lessor from Lessee or
any third party, shall not constitute a waiver by Lessor of the provisions of
this Lease, or a release of Lessee from the full performance by it of the
covenants stated herein; and any consent given by Lessor to any transfer shall
not relieve Lessee (or any transferee of Lessee) from the above requirements for
obtaining the written consent of Lessor to any subsequent Transfer.

        19.06 As long as Lessee is the Lessee in possession of the Premises and
no default then exists with respect to the payment when due of Base Monthly Rent
or Additional Rent, Lessee shall have the right subject to the terms and
conditions hereinafter set forth, without the consent of Lessor but with prompt
written notice to Lessor thereafter, to assign its interest in this Lease or
Sublease any of the Premises (a) to any corporation which is a successor to
Lessee either by merger or consolidation, or (b) to a purchaser of substantially
all of Lessee's assets, or (c) to a corporation or other entity which shall
control, be under control of, or be under common control with Lessee (the term
"control" as used herein shall be deemed to mean ownership of more than fifty
percent (50%) of the outstanding voting stock of a corporation, or other
majority equity and control interest if Lessee is not a corporation).

20. DEFAULT BY LESSEE.

        20.01 Lessee shall be in default of this Lease if at any time during the
Lease Term (and regardless of the pendency of any bankruptcy, reorganization,
receivership, insolvency or other proceedings in law, in equity or before any
administrative tribunal which have or might have the effect of preventing Lessee
from complying with the terms of this Lease):

             A. Lessee fails to make payment of any installment of Base Monthly
Rent, Additional Rent, or of any other sum herein specified to be paid by
Lessee, and such failure is not cured within three (3) days after Lessor's
notice to Lessee of such failure of payment which notice shall constitute the
statutory three (3) day notice to pay rent or quit pursuant to Section I 1 61 of
the California Code of Civil Procedure; or

             B. Lessee fails to observe or perform any of its other covenants,
agreements or obligations hereunder, and such failure is not cured within thirty
(30) days after Lessor's written notice to Lessee of such failure; provided,
however, that if the nature of Lessee's obligation is such that more than thirty
(30) days are required for performance, then Lessee

                                       19
<PAGE>   20

shall not be in default if Lessee commences performance within such thirty (30)
day period and thereafter diligently prosecutes the same to completion; or

             C. Lessee becomes insolvent, makes a transfer in fraud of its
creditors, makes a transfer for the benefit of its creditors, voluntarily files
for bankruptcy, is adjudged bankrupt or insolvent in proceedings filed against
Lessee, a receiver, trustee, or custodian is appointed for all or substantially
all of Lessee's assets, fails to pay its debts as they become due, convenes a
meeting of all or a portion of its creditors, or performs any acts of bankruptcy
or insolvency, including the selling of its assets to pay creditors; or

             D. Lessee has abandoned the Premises as defined in Article 17
above.

21. REMEDIES OF LESSOR.

        21.01 Repossession of Premises. Upon any termination of this Lease,
whether by lapse of time or upon termination of Lessee's right to possession of
the Premises without termination of the Lease, Lessee shall surrender possession
and vacate the Premises immediately and deliver possession to Lessor. Lessee
releases Lessor of any liability for any damage resulting therefrom and waives
any right to claim damages for such re-entry. Lessee also agrees that Lessor's
right to re-lease or any other right given to Lessor hereunder or by operation
of law is not relinquished.

        21.02 Termination of Lease after Default. If Lessee defaults under this
Lease before the end of the Lease Term, or if Lessee's right to possession is
terminated by Lessor because of Lessee's default of this Lease, then this Lease
may be terminated by Lessor at its option. On such termination Lessor may
recover from Lessee, in addition to the remedies permitted by law:

             A. The worth, at the time of the award, of the unpaid Base Monthly
Rent and Additional Rent which had been earned at the time of the termination of
this Lease;

             B. The worth, at the time of the award, of the amount by which the
unpaid Base Monthly Rent and Additional Rent which would have been earned after
the date of termination of this Lease until the time of award exceeds the amount
of the loss of rents that Lessee proves could have been reasonably avoided;

             C. The worth, at the time of the award, of the amount by which the
unpaid Base Monthly Rent and Additional Rent for the balance of the Lease Term
after the time of award exceeds the amount of such rental loss for such period
that Lessee proves could be reasonably avoided; and

             D. Any other amount, and court costs, necessary to compensate
Lessor for all detriment proximately cause by Lessee's default of its
obligations under this Lease, or which in the ordinary course of events would be
likely to result therefrom. The detriment proximately caused by Lessee's default
shall include, without limitation, (i) expenses for

                                       20
<PAGE>   21

cleaning, repairing or restoring the Premises, (ii) expenses for altering,
remodeling or otherwise improving the Premises for the purpose of reletting,
(iii) broker's 'fees and commissions, advertising costs and other expenses of
reletting the Premises, (iv) cost of carrying the Premises such as taxes,
insurance premiums, utilities and security precautions, (v) expenses in retaking
possession of the Premise, (vi) attorney's fees and court costs, (vii) any
unearned brokerage commissions paid in connection with this Lease, (viii)
parking fees or occupancy taxes due under this Lease, (ix) reimbursement of any
previously waived Base Monthly Rent, Additional Rent, free rent, or reduced
rental rate, and (x) any concession made or paid by Lessor to the benefit of
Lessee in consideration of this Lease including, but not limited to, any moving
allowances, contributions or payments by Lessor for Tenant improvements or
build-out allowances, or the assumption by Lessor of any of Lessee's previous
lease obligations.

        21.03 Continuation of Lease after Default. Notwithstanding the
foregoing, in the event Lessee has defaulted under this Lease and abandoned the
Premises, this Lease, at Lessor's option, shall continue in full force and
effect so long as Lessor does not terminate Lessee's right to possession of the
Premises, and in such event Lessor may enforce all of its rights and remedies
under this Lease, including the right to recover Rent as it becomes due. In
addition, Lessor shall not be liable in any way whatsoever for its failure or
refusal to relet the Premises. For purposes of this Section 21.03, the following
acts by Lessor shall not constitute the termination of Lessee's right to
possession of the Premises:

             A. Acts of maintenance or preservation or efforts to relet the
Premises, including but not limited to alterations, remodeling, redecorating,
repairs, replacements and/or painting as Lessor shall consider advisable for the
purpose of reletting the Premises or any part thereof; or

             B. The appointment of a receiver upon the initiative of Lessor to
protect Lessor's interest under this Lease or in the Premises.

        21.04 Bankruptcy. In the event of bankruptcy, Lessee assigns to Lessor
all its rights, title and interest in the Premises as security for its
obligations and covenants set forth in this Lease.

        21.05 Definitions and Incidental Rights.

             A. "The worth at the time of the award" of the amounts referred to
in Sections 21.02A and 21.02B, shall be computed by allowing interest at the
rate of ten percent (10%) per annum. "The worth at the time of the award" of the
amount referred to above in Section 21.02C shall be computed by discounting the
amount at the discount rate of the Federal Reserve Bank of San Francisco in
effect at the time of the award, plus one percent (11 V.

             B. Any efforts by Lessor to lessen the damages caused by Lessee's
default of this Lease shall not waive Lessor's right to recover the damages set
forth above.

                                       21
<PAGE>   22

             C. Nothing herein shall be construed to affect other provisions of
this Lease regarding Lessor's right to indemnification from Lessee for liability
arising prior to the termination of this Lease for personal injuries or property
damage.

             D. No right or remedy conferred upon or reserved to Lessor in this
Lease is intended to be exclusive of any other right or remedy granted to Lessor
by statute or common law, and each and every such right and remedy shall be
cumulative.

22. SURRENDER OF LEASE NOT MERGER.

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

23. ATTORNEY'S FEES/COLLECTION CHARGES.

        23.01 In the event of any legal action or proceeding between the parties
hereto, actual attorneys' fees and expenses of the prevailing party in any such
action or proceeding shall be added to the judgement therein. Should Lessor be
named as defendant in any suit brought against Lessee in connection with or
arising out of Lessee's occupancy hereunder, Lessee shall pay to Lessor its
costs and expenses incurred in such suit, including actual attorneys' fees.

        23.02 If Lessor utilizes the services of any attorney for the purpose of
collecting any Rent due and unpaid by Lessee after three (3) days' written
notice to Lessee of such nonpayment of Rent or in connection with any other
default of this Lease by Lessee, Lessee agrees to pay Lessor actual attorneys'
fees as determined by Lessor for such services, regardless of the fact that no
legal action may be commenced or filed by Lessor.

24. CONDEMNATION.

If twenty-five percent (25%) or more of the Premises is taken for any public or
quasi-public purpose by any lawful government power or authority, by exercise of
the right of appropriation, reverse condemnation, condemnation or eminent
domain, or sold to prevent such taking, either Lessee or Lessor may, at its
option, terminate this Lease as of the effective date thereof. Lessee shall not
because of such taking assert any claim against Lessor or the taking authority
for any compensation because of such taking, and Lessor shall be entitled to
receive the entire amount of any award without deduction for any estate of
interest of Lessee. If less than twenty-five percent (25%) of the Premises is
taken, Lessor shall promptly proceed to restore the Premises to substantially
its same condition prior to such partial taking, allowing for any reasonable
effects of such taking, and a proportionate allowance shall be made to Lessee
for the Rent corresponding to the time during which, and to the part of the
Premises which, Lessee is deprived on account of such taking and restoration.

                                       22

<PAGE>   23

25. PROJECT RULES.

        25.01 Lessee shall faithfully observe and comply with the Project Rules
attached to this Lease as Exhibit "C" and Lessor reserves the right to modify
and amend such Project Rules as it deems necessary. Lessor shall not be
responsible to Lessee for the nonperformance by any other lessee or occupant of
the Project of any of such Project Rules.

        25.02 In the event that Lessee fails to cure any violations of such
Project Rules within the cure period provided in Section 20.01B, such failure to
cure shall be deemed a material default of this Lease by Lessee.

26. ESTOPPEL CERTIFICATE.

Lessee shall execute and deliver to Lessor, upon not less than ten (10) days
prior written notice, a statement in writing certifying that this Lease is in
full force and effect, (or, if modified, stating the nature of such
modification) and the date to which Rent and other charges are paid in advance,
if any, and acknowledging that there are not, to Lessee's knowledge, any uncured
defaults on the part of Lessor hereunder or specifying such defaults if they are
claimed. Any such statement may be conclusively relied upon by any prospective
purchaser or encumbrancer of the Premises. Lessee's failure to deliver such
statement within such time shall be conclusive upon Lessee that (1) this Lease
is in full force and effect, without modification except as may be represented
by Lessor; (2) there are no uncured defaults in Lessor's performance; and (3)
not more than one (1) month's Rent has been paid in advance.

27. SALE BY LESSOR.

In the event of a sale or conveyance by Lessor of the Project the same shall
operate to release Lessor from any liability upon any of the covenants or
conditions, expressed or implied, herein contained in favor of Lessee accruing
after the date of such sale, and in such event Lessee agrees to look solely to
the responsibility of the successor in interest of Lessor in and to this Lease.
This Lease shall not be affected by any such sale, and Lessee agrees to attorn
to the purchaser or assignee.

                                       23

<PAGE>   24

28. NOTICES.

        All notices, statements, demands, requests, consents, approvals,
authorizations, offers, agreements, appointments, or designations under this
Lease by either party to the other shall be in writing and shall be considered
sufficiently given and served upon the other party if sent by certified or
registered mail, return receipt request, postage prepaid, or by Federal Express
or other nationally recognized overnight carrier, and addressed as indicated in
Sections 1.03 and 1.04.

29. NO WAIVER.

        The failure of Lessor to insist in any one or more cases upon the strict
performance of any term, covenant or condition of this Lease or in the Project
Rules shall not be construed as a waiver of a subsequent default of the same or
any other covenant, term or condition; nor shall any delay or omission by Lessor
to seek a remedy for any default of this Lease be deemed a waiver by Lessor of
its remedies or rights with respect to such a default. The subsequent acceptance
of Rent by Lessor shall not be deemed to be a waiver of any preceding breach by
Lessee of any term, covenant or condition of this Lease other than the failure
of Lessee to pay the particular Rent so accepted, regardless of Lessor's
knowledge of such preceding breach at the time of acceptance of such Rent.

30. LESSEE'S INTENT.

        If Lessee intends to vacate the Premises on the expiration of the Lease
Term, Lessee shall give Lessor ninety (90) days prior written notice of such
intent to vacate the Premises. If Lessee remains in the Premises after the
expiration of the Lease Term, and has not given prior written notice to Lessor,
such continuance of possession by Lessee shall be deemed to be a month-to-month
tenancy at the sufferance of Lessor terminable on thirty (30) day notice at any
time by either party. All provisions of this Lease, except those pertaining to
term and rent, shall apply to the month-to-month tenancy. Lessee shall pay Base
Monthly Rent in an amount equal to one hundred fifty percent (150%) of the Rent
payable for the last full calendar month of the Lease Term.

31. Intentionally Deleted.

32. DEFAULT OF LESSOR/LIMITATION OF LIABILITY.

        32.01 In the event of any default by Lessor hereunder, Lessee agrees to
give notice of such default, by registered mail, to Lessor at Lessor's Notice
Address as stated in Section 1.04 and to offer Lessor a reasonable opportunity
to cure the default.

        32.02 In the event of any actual or alleged failure or default hereunder
by Lessor, Lessee's sole and exclusive remedy shall be against Lessor's interest
in the Project, and no partner of Lessor shall be sued, be subject to service of
process, or have a judgement obtained against him in connection with any alleged
default, and no writ of execution shall

                                       24
<PAGE>   25

be levied against the assets of any partner, shareholder or officer of Lessor.
The covenants and agreements set forth herein are enforceable by Lessor and also
by any partner, shareholder or officer of Lessor.

33. EXPANSION CLAUSE.

        If during the Lease Term, Lessee executes a lease within the Project for
space larger than the present Premises with a lease term equal to that which
remains on this Lease or one (1) year, whichever is greater, with a Base Monthly
Rent amount at least equal to the present Base Monthly Rent of this Lease, this
Lease shall, at Lessee's sole option, be terminated upon the commencement date
of the lease for such substitute space. Notwithstanding the above, Lessee shall
remain obligated to pay for any adjustments in Rent pursuant to Articles 3 and 4
due Lessor as a result of Lessee's tenancy hereunder and this obligation shall
survive the termination of this Lease pursuant to this Article 33.

34. SUBORDINATION.

        Without the necessity of any additional document being executed by
Lessee for the purpose of effecting a subordination, and at the election of
Lessor or any mortgagee with a lien on the Project or any ground lessor with
respect to the Project, this Lease shall be subject and subordinate at all times
to (a) all ground leases or underlying leases which may now exist or hereafter
be executed affecting the Project, and (b) the lien of any mortgage or deed of
trust which may now exist or hereafter be executed in any amount for which the
Project or Lessor's interest or estate therein is security. In the event that
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, Lessee will, notwithstanding any subordination, attorn to and
become the Lessee of the successor in interest to Lessor, at the option of such
successor in interest. Lessee covenants and agrees to execute and deliver, upon
demand by Lessor and in the form requested by Lessor any additional documents
evidencing the priority or subordination of this Lease with respect to any such
ground lease or underlying leases or the lien of any such mortgage or deed of
trust.

Notwithstanding anything to the contrary in this Article 34, the subordination
of Lessee's rights and interest under the Lease to any mortgage or deed of trust
shall be contingent upon Lessee's having received from any such mortgagee or
beneficiary of any deed of trust a written recognition agreement in form
reasonably satisfactory to Lessee providing that Lessee's rights and interest
shall not be disturbed in the event of any foreclosure of any such mortgage or
deed of trust and confirming that Lessee shall receive all of the rights and
services provided for under the Lease.

35. DEPOSIT AGREEMENT.

        Lessor and Lessee hereby agree that Lessor shall be entitled to
immediately endorse and cash Lessee's good faith rent and the Security Deposit
check(s) accompanying this Lease. It is further agreed and understood that such
action shall not guarantee acceptance of this

                                       25

<PAGE>   26

Lease by Lessor, but, in the event Lessor does not accept this Lease, such
deposits shall be refunded in full to Lessee. This Lease shall be effective only
after Lessee has received a copy fully executed by Lessor.

36. GOVERNING LAW.

        This Lease is governed by and construed in accordance with the laws of
the State of California, and venue of any suit shall be in the county where the
Premises are located.

37. NEGOTIATED TERMS.

        This Lease is a result of the negotiations of the parties and has been
agreed to by both Lessor and Lessee after prolonged discussion.

38. SEVERABILITY.

        If any provision of this Lease is found to be unenforceable, all other
provisions shall remain in full force and effect.

39. BROKER ACKNOWLEDGEMENT.

        Lessee warrants that it has not had any dealings with any real estate
brokers, leasing agents, salesmen, or incurred any obligations for the payment
of real estate brokerage commissions or finder's fees which would be earned or
due and payable by reason of the execution of this Lease other than to CB
Richard Ellis, Inc. and Trammell Crow Company, who will be paid commissions by
Lessor pursuant to a separate agreement between CB Richard Ellis, Inc. and
Lessor. Each party agrees to indemnify, hold harmless, and defend the other
party against any claims or demands for any brokerage commissions, finder's fees
or other charges incurred or alleged to have been incurred by the party by
reason of the execution of this Lease.

40. ATTORNEYS' FEES.

        In the event of any action or proceeding brought by either party against
the other under this Lease, the prevailing party shall be entitled to recover
court costs and the fees of its attorneys in such action or proceeding (whether
at the administrative, trial or appellate levels) in such amount as the court or
administrative body may adjudge reasonable.

41. MISCELLANEOUS PROVISIONS.

        41.01 Whenever the singular number is used in this Lease and when
required by the context, the same shall include the plural, and the masculine
gender shall include the feminine and neuter genders, and the word "person"
shall include corporations, firms, partnerships, or associations. If there be
more than one Lessee, the obligations imposed upon Lessee under this Lease shall
be joint and several.

                                       26
<PAGE>   27

        41.02 The section headings or titles of this Lease are not a part of
this Lease and shall have no effect upon the construction or interpretation of
any part of this Lease.

        41.03 This instrument contains all of the agreements and conditions made
between the parties to this Lease and may not be modified orally or in any other
manner than by an agreement in writing signed by all parties to this Lease.
Lessee acknowledges that neither Lessor nor Lessor's agents have made any
representation or warranty as to the suitability of the Premises and/or the
Project to the conduct of Lessee's business. Any agreements, warranties or
representations not expressly contained herein shall in no way bind either
Lessor or Lessee, and Lessor and Lessee expressly waive all claims for damages
by reason of any statement, representation, warranty, promise or agreement, if
any, not contained in this Lease.

        41.04 Time is of the essence of each term and provision of this Lease.

        41.05 Except as otherwise expressly stated, each payment required to be
made by Lessee is in addition to and not in substitution for other payments to
be made by Lessee.

        41.06 Subject to Article 19, the terms and provisions of this Lease are
binding upon and inure to the benefit of the heirs, executors, administrators,
successors and assigns of Lessor and Lessee.

        41.07 Except as otherwise expressly provided in this Lease, all
covenants and agreements to be performed by Lessee under any of the terms of
this Lease shall be performed at Lessee's sole cost and expense and without any
abatement of Rent.

        41.08 There are no light, air or view easements being granted with this
Lease. Any diminution or shutting off of light, air or view by any structure
which may be erected by Lessor or others shall in no way affect this Lease or
impose any liability on Lessor.

        41.09 Lessee shall, to the reasonable satisfaction of Lessor, upon Lease
expiration, surrender the Premises to Lessor in the same condition as received
on the commencement of this Lease (reasonable wear and tear, acts of God,
casualties, condemnation and Hazardous Materials (other than those released or
emitted by Lessee), and Alterations or other Interior Improvements which Lessee
is not required to remove at the termination of the Lease, excepted) with all
originally painted interior walls washed, or repainted if marked or damaged and
other interior walls cleaned and repaired or replaced, all carpets cleaned and
in good condition, and all floors cleaned and waxed. Lessee shall remove all of
Lessee's personal property and trade fixtures from the Premises and all such
property not so removed shall be deemed abandoned by Lessee. Furthermore, Lessee
shall immediately repair all damage to the Premises, Project and Public Areas
caused by any such removal. Lessee shall indemnify Lessor against any loss or
liability resulting from delay by Lessee in so surrendering the Premises,
including without limitation, any claims made by any succeeding lessee based
upon delay in the availability of the Premises.

                                       27

<PAGE>   28

42. SPECIAL PROVISIONS.

Special provisions of this Lease, Articles 43 through 46, are attached hereto
and made apart hereof. If none, so state in the following space:_______________.

                                       28

<PAGE>   29

IN WITNESS WHEREOF, Lessor and Lessee have executed this Lease as of the day and
year indicated by Lessor's execution date as written below.

Lessee warrants that the individual(s) signing on behalf of Lessee have the
authority to bind their principals. In the event that Lessee is a corporation,
Lessee shall deliver to Lessor, concurrently with the execution and delivery of
this Lease, a certified copy of corporate resolutions adopted by Lessee
authorizing said corporation to enter into and perform the Lease and authorizing
the execution and delivery of the Lease on behalf of the corporation by the
parties executing and delivering this Lease. THIS LEASE WHETHER OR NOT EXECUTED
BY LESSEE, IS SUBJECT TO ACCEPTANCE AND EXECUTION BY LESSOR, ACTING ITSELF OR BY
ITS AGENT ACTING THROUGH ITS SENIOR VICE PRESIDENT, VICE PRESIDENT, REGIONAL
VICE PRESIDENT, REGIONAL MANAGER, ASSISTANT REGIONAL MANAGER, OR AREA MANAGER AT
ITS HOME OFFICE.

LESSOR:                                        LESSEE:

FRANKLIN SELECT REALTY TRUST,                  SOFTWARE TECHNOLOGIES CORPORATION
a California Corporation                       a California Corporation

BY:  /s/ Mark Tenboer                          BY: /s/ William Overell
   -----------------------------                  -----------------------------

                                                  WILLIAM L. OVERELL
MARK A TENBOER                                    VICE PRESIDENT FINANCE AND CFO
--------------------------------                  -----------------------------
        (Print Name)                                         (Print Name)

TITLE: Vice President Finance                  TITLE:
       -------------------------                     --------------------------

DATE:         6/18/99                          DATE:          6/18/99
     ---------------------------                    ---------------------------
        (Execution Date)

                                       29

<PAGE>   30
                                   EXHIBIT "B"

                                  LESSOR'S WORK

        A. Lessor shall construct the Premises to the specifications outlined by
Lessee's architect (the "Tenant Improvements") in accordance with the
preliminary space plan (the "Preliminary Plans") attached hereto as Exhibit B-1,
and shall provide a tenant improvement allowance (the "Allowance") not to exceed
$8.00 per rentable square foot. Such allowance shall include all costs related
to the improvements (i.e. materials, labor, permit fees, architectural fees,
life-safety costs, etc.). Any cost exceeding said allowance shall be at Lessee's
sole cost and expense. Lessor shall amortize up to an additional $5.00 per
rentable square foot of tenant improvement costs over the term of the Lease at a
rate of ten percent (10%) annually.

        B. Lessor shall cause three (3) general contractors to bid for
construction of the Tenant Improvements. If Lessee so desires, Lessee may also
select a general contractor, reasonably acceptable to lessor, to bid the work.
All bids will be opened and reviewed together with Lessee. Lessor shall select
the general contractor to construct the Tenant Improvements (the "General
Contractor"), subject to reasonable approval by Lessee if the Contractor's bid
exceeds the Allowance. The General Contractor is the contractor of Lessor only,
and Lessee shall have no liability to the General Contractor under the
construction contract, subject to the provisions of Section A above.

        C. Lessor shall cause to be prepared, as quickly as possible: (i) final
plans, specifications and working drawings of the Tenant Improvements ("Final
Plans"), and (ii) a detailed work cost estimate ("Work Cost Estimate") for the
construction of the Tenant Improvements, all of which shall conform to and
represent logical evolutions of or developments from the Preliminary Plans. The
Final Plans and Work Cost Estimate shall be delivered to Lessee immediately upon
completion. Within ten (10) working days after receipt thereof, Lessee may, at
its election (i) approve the Final Plans and Work Cost Estimate, (ii) deliver to
Lessor specific written changes to such plans as are necessary, in Lessee's
opinion, to conform such plans to the preliminary space plans or to reduce
costs. If Lessee desires to make changes to such plans, Lessor shall not
unreasonably withhold its approval of such changes and the parties shall confer
and negotiate in good faith to reach agreement on modifications to the Final
Plans and Work Cost Estimate as a consequence of such changes. As soon as
approved by Lessor and Lessee, Lessor shall submit the Final Plans to all
appropriate governmental agencies and thereafter Lessor shall use its best
efforts to obtain all required governmental approvals as soon as possible.

        D. Lessor shall pay, and Lessee shall have no responsibility for, the
following costs associated with the Tenant Improvements: (i) costs attributable
to improvements installed outside the demising walls of the Premises; (ii) costs
incurred to remove Hazardous Materials from the Premises, the Building, or the
Project; (iii) Lessor's attorneys fees incurred in connection with the
negotiation of construction contracts and attorneys'

                                       1
<PAGE>   31

and experts' fees and other costs in connection with disputes with third parties
(including, without limitation, the General Contractor); (vi) costs incurred as
a consequence of delay (unless the delay is caused by Lessee), construction
defects or defaults by any contractor; (v) costs recoverable by Lessor on
account of warranties or insurance; (vi) restoration costs in excess of
insurance proceeds as a consequence of casualties; (vii) penalties and late
charges attributable to Lessor's failure to pay construction costs; (viii) costs
to bring the Building and the Project into compliance with applicable Laws,
including, without limitation, the Americans with Disabilities Act and Hazardous
Materials Laws; (ix) wages, labor and overhead for overtime and premium time;
(x) off-site management or other general overhead costs incurred by Lessor; (xi)
construction management, profit and overhead charges; and (xii) interest and
other costs of financing construction.

        E. Effective upon delivery of the Premises to Lessee, Lessor warrants
that (i) construction of the Tenant Improvements was performed in accordance
with all Laws and the Final Plans and in a good and workmanlike manner, and (ii)
all material and equipment installed in the Premises conformed to the Final
Plans and was new and otherwise of good quality.

        F. So long as such occupancy does not interfere with Lessor's
construction of the Tenant Improvements, Lessee shall have the right to enter
the Premises prior to the completion of the Tenant Improvements for the purposes
of installing Lessee's equipment, data and telecommunications systems, and trade
fixtures. Such occupancy shall be subject to all of the terms of the Lease,
except the obligation to pay Rent.

                                        2

<PAGE>   32

                                   EXHIBIT "C"

                                  PROJECT RULES

        The following Project Rules are additional provisions of the foregoing
Lease to which they are attached.

        1. Use of Public Areas. Lessee will not obstruct sidewalks, halls,
passages, exits, entrances, elevators or stairways of the Project (the "Public
Areas"), and Lessee will not use the Public Areas for any purpose other than
ingress and egress to and from the Premises. The Public Areas, except for the
sidewalks, are not open to the general public and Lessor reserves the right to
control and prevent access to the Public Areas of any person whose presence, in
Lessor's opinion, would be prejudicial to the safety, reputation and interests
of the Project and the other lessees thereof.

        2. No Access to Roof. Lessee has no right of access to the roof of the
Project and will not install, repair or replace any antenna, aerial, aerial
wires, fan, air-conditioner or other device on the roof of the Project, without
the prior written consent of Lessor. Any such device installed without such
written consent is subject to removal at Lessee's expense without notice at any
time. In such event Lessee will be liable for any damages or repairs incurred or
required as a result of its installation, use or removal of such devices on the
roof.

        3. Signage. No sign, placard, picture, name, advertisement or notice
visible from the exterior of the Project will be inscribed, painted, affixed or
otherwise displayed by Lessee on or in any part of the Project without the prior
written consent of Lessor. Lessor reserves the right to adopt and furnish Lessee
with general guidelines relating to signs in or on the Project. All approved
signage will be inscribed, painted or affixed at Lessee's expense by a person
approved by Lessor, which approval will not be unreasonably withheld.

        4. Prohibited Uses. The Premises will not be used for manufacturing, for
the storage of merchandise held for sale to the general public, for lodging or
for the sale of goods to the general public. Lessee will not permit any food
preparation on the Premises except that Lessee may use Underwriters' Laboratory
approved equipment for brewing coffee, tea, hot chocolate and similar beverages
so long as such use is in accordance with all applicable federal, state and city
laws, codes, ordinances, rules and regulations.

        5. Janitorial Services. Lessee will not employ any person for the
purpose of cleaning the Premises or permit any person to enter the Project for
such purpose other than the Lessor's janitorial service, except with Lessor's
prior written consent. Lessee will not necessitate, and will be liable for the
cost of, any undue amount of janitorial labor by reason of Lessee's carelessness
in or indifference to the preservation of good order and cleanliness on the
Premises. Janitorial service will not be furnished to areas in the Premises on
nights when such areas are occupied after 9:30 p.m., unless such service is
extended by written agreement to a later hour in specifically designated areas
of the Premises.

                                       1
<PAGE>   33

        6. Keys and Locks. Lessor will furnish Lessee, free of charge, two keys
to each door or lock in the Premises and two keys to access the Building. Lessor
may make a reasonable charge for any additional or replacement keys. Lessee will
not duplicate any keys, alter any locks or install any new or additional lock or
bolt on any door of its Premises or on any other part of the Project without the
prior written consent of Lessor except in the event of a banking or commercial
emergency such as a theft or other invasion of the Lessee's records, and, in any
event, Lessee will immediately provide Lessor with a key for any such lock. On
the termination of the Lease, Lessee will deliver to Lessor all keys to any
locks or doors in the Project and Premises that have been obtained by Lessee and
that have been signed for per the terms and conditions of the Key Receipt
Acknowledgement form (Exhibit E).

        7. Freight. Upon not less than twenty-four (24) hours prior notice to
Lessor, which notice may be verbal, an elevator will be made available for
Lessee's use for transportation of freight, subject to such scheduling as Lessor
in its discretion deems appropriate. Lessee shall not transport freight in loads
exceeding the weight limitations of such elevator. Lessor reserves the right to
prescribe the weight, size and position of all equipment, materials, furniture
or other property brought into the Project, and no property will be received in
the Project or carried up or down the freight elevator or stairs except during
such hours and along such routes and by such persons as may be designated by
Lessor. Lessor reserves the right to require that heavy objects will stand on
wood strips of such length and thickness as is necessary to properly distribute
the weight. Lessor will not be responsible for loss of or damage to any such
property from any cause, and Lessee will be liable for all damage or injuries
caused by moving or maintaining such property.

        8. Nuisances and Dangerous Substances. Lessee will not conduct itself or
permit its agents, employees, contractors or invitees to conduct themselves, in
the Premises or anywhere on or in the Project in a manner which is offensive or
unduly annoying to any other lessee or Lessor's property managers. Lessee will
not install or operate any phonograph, radio receiver, musical instrument, or
television or other similar device in any part of the Public Areas and shall not
operate any such device installed in the Premises in such a manner as to disturb
or annoy other lessees of the Project. Lessee will not use or keep in the
Premises or the Project, any kerosene, gasoline or other combustible fluid or
material other than limited quantities thereof reasonably necessary for the
maintenance of office equipment, or, without Lessor's prior written approval,
use any method of heating or air conditioning other than that supplied by
Lessor. Lessor will not use or keep any foul or noxious gas or substance in the
Premises or permit or suffer the Premises to be occupied or used in a manner
offensive or objectionable to Lessor other occupants of the Project by reason of
noise, odors or vibrations, or interfere in any way with other lessees or those
having business therein. Lessee will not bring or keep any animals in or about
the Premises or the Project.

                                       2
<PAGE>   34

        9. Project Name and Address. Without Lessor's prior written consent,
Lessee will not use the name of the Project in connection with or in promoting
or advertising Lessee's business except as Lessee's address.

        10. Project Directory. A directory for the Project will be provided for
the display of the name and location of Lessee. Lessor reserves the right to
approve any additional names Lessee desires to place in the directory and, if so
approved, Lessor may assess a reasonable charge for adding such additional
names.

        11. Window Coverings. No curtains, draperies, blinds, shutters, shades,
awnings, screens or other coverings, window ventilators, hangings or decorations
or similar equipment shall be attached to, hung or placed in, or used in or with
any window of the Project without the prior written consent of Lessor, and
Lessor shall have the right to control all lighting within the Premises that may
be visible from the exterior of the Project.

        12. Floor Coverings. Lessee will not lay or otherwise affix linoleum,
tile, carpet, or any other floor covering to the floor of the Premises in any
manner except as approved in writing by Lessor. Lessee will be liable for the
cost of repair of any damage resulting from the violation of this rule or the
removal of any floor covering by Lessee or its contractors, employees or
invitees.

        13. Electrical Installations. Lessor will direct Lessee's electricians
as to where and how telephone, telegraph and electrical wires are to be
installed. No boring or cutting for wires will be allowed without the prior
written consent of Lessor. The location of burglar alarms, smoke detectors,
telephones, call boxes and other office equipment affixed to the Premises shall
be subject to the written approval of Lessor.

        14. Office Closing Procedures. Lessee will see that the doors of the
Premises are closed and locked and that all water faucets, water apparatus and
utilities are shut off before Lessee or its employees leave the Premises, so as
to prevent waste or damage. Lessee will be liable for all damage or injuries
sustained by other lessees or occupants of the Project or Lessor resulting from
Lessee's carelessness in this regard or violation of this rule. Lessee will keep
the doors to the Project corridors closed at all times except for ingress and
egress.

        15. Plumbing Facilities. The toilet rooms, toilets, urinals, wash bowls
and other apparatus shall not be used for any purpose other than that for which
they were constructed and no foreign substance of any kind whatsoever shall be
disposed of therein. Lessee will be liable for any breakage, stoppage or damage
resulting from the violation of this rule by the Lessee, its employees or
invitees.

        16. Use of Hand Trucks. Lessee will not use or permit to be used in the
Premises or in the Public Areas any hand trucks, carts or dollies except those
equipped with rubber tires and side guards or such other equipment as Lessor may
approve.

                                        3

<PAGE>   35
        17. Refuse. Lessee will store all its trash and garbage within the
Premises. No material will be placed in the trash boxes or receptacles if such
material may not be disposed of in the ordinary and customary manner of removing
and disposing of trash and garbage in the city in which the Project is located
without being in violation of any law or ordinance governing such disposal. All
trash and garbage removal will be only through such Public Areas for such
purposes and at such times as Lessor may designate.

        18. Soliciting. Canvassing, peddling, soliciting and distribution of
handbills or any other written materials in the Project are prohibited, and
Lessee will cooperate to prevent the same.

        19. Parking. Lessee will use, and will cause its agents, employees,
contractors and invitees to use, the parking spaces to which it is entitled
under the Lease in a manner consistent with Lessor's directional signs and
markings in the Parking Facility. Specifically, but without limitation, Lessee
will not park, or permit its agents, employees, contractors or invitees to park,
in a manner that impedes access to and from the Project or the Parking Facility
or that violates space reservations for handicapped drivers registered as such
with the California Department of Motor Vehicles. Lessor may use such reasonable
means as may be necessary to enforce the directional signs and markings in the
Parking Facility, including but not limited to towing services, and Lessor will
not be liable for any damage to vehicles towed as a result of noncompliance with
such parking regulations.

        20. Fire, Security and Safety Regulations. Lessee will comply with all
safety, security, fire protection and evacuation measures and procedures
established by Lessor or any governmental agency.

        21. Responsibility for Theft. Lessee assumes any and all responsibility
for protecting the Premises from theft, robbery and pilferage, which includes
keeping doors locked and other means of entry to the Premises closed.

        22. Sales and Auctions. Lessee will not display or sell merchandise
outside the exterior walls and doorways of the Premises nor use such areas for
storage. Lessee will not install any exterior lighting, amplifiers or similar
devices or use in or about the Premises any advertising medium which may be
heard or seen outside the Premises, including flashing lights, searchlights,
loudspeakers, phonographs or radio broadcasts. Lessee will not conduct or permit
to be conducted any sale by auction in, upon or from the Premises or elsewhere
in the Project, whether said auction to be voluntary, involuntary, pursuant to
any assignment for the payment of creditors or pursuant to any bankruptcy or
other insolvency proceeding.

        23. Enforcement. Lessor may waive any one or more of these Project Rules
for the benefit of any particular lessee or lessees, but no such waiver by
Lessor will be construed as a waiver of such Project Rules in favor of any other
lessee or lessees, nor prevent Lessor from thereafter enforcing these Project
Rules against any or all of the lessees of the Project.

                                       4
<PAGE>   36

        24. Effect on Lease. These Project Rules are in addition to, and shall
not be construed to in any way modify or amend, in whole or in part, the terms,
covenants, agreements and conditions of the Lease. Violation of these Project
Rules constitutes a failure to fully perform the provisions of the Lease as
referred to in Section 6.1 ("Events of Default").

        25. Additional and Amended Rules. Lessor reserves the right to rescind
or amend these Project Rules and/or adopt any other and reasonable rules and
regulations as in its judgement may from time to time be needed for the safety,
care and cleanliness of the Project and for the preservation of good order
therein.

        26. Hazardous Materials. If Lessee stores or uses any toxic or hazardous
materials on the Premises, Lessee shall institute a plan for the removal of such
toxic or hazardous materials and any containers in which such materials are
stored or packaged. This plan must be in accordance with all governmental
regulations regarding the use, storage and disposal of such materials as
evidenced by Lessee obtaining a written statement from the appropriate
governmental authority. Lessee shall provide Lessor with a copy of the plan and
approval statement.

        27. No Smoking Building. Lessor has declared said Project a smoke-free
environment. There is no smoking permitted in any area of the building (i.e.
restrooms, hallways, stairwells, lobby, etc.), up to and including Lessee's
Premises.

                                       5
<PAGE>   37

                                   EXHIBIT "D"

                               SPECIAL PROVISIONS

43. BASE MONTHLY RENT.

The Base Monthly Rent shall be as follows:

Months 1 thru 12         $3.75/rsf/mo.
Months 13 thru 24        $3.86/rsf/mo.
Months 25 thru 36        $3.98/rsf/mo.
Months 37 thru 48        $4.10/rsf/mo.
Months 49 thru 60        $4.22/rsf/mo.

44. SIGNAGE:

Lessor, at Lessor's sole cost and expense, shall provide building standard
signage for the Premise and the lobby directory.

45. OPTION TO EXTEND LEASE TERM:

        45.01 Option. Lessee is given the option to extend the Lease Term, on
all the provisions contained in this Lease, for one additional five (5) year
period (the "Option Term") following expiration of the initial Lease Term stated
in Section 1.06 (the "Initial Term"), by giving written notice of exercise of
the option (the "Option Notice") to Lessor at least nine (9) months but not more
than one (1) year before the expiration of the Initial Term. Notwithstanding the
foregoing, if Lessee is in default on the date of giving the Option Notice,
Lessee shall have no right to extend the Lease Term and this Lease shall expire
at the end of the Initial Term; or if Lessee is in default on the date the
Option Term is to commence, the Option Term shall not commence and this Lease
shall expire at the end of the Initial Term. The Base Monthly Rent for the
Option Term shall be in an amount equal to the fair market rental ("Fair Market
Rental" as hereinafter defined) of the Premises at the commencement of the
Option Term (the "Adjustment Date"). The Expense Base Year shall be the calendar
year in which the Adjustment Date occurs, and the Tax Base Year shall be the
fiscal year in effect on the Adjustment Date..

        45.02 Fair Market Rental.

        A. "Fair Market Rental" shall mean the rate being paid by tenants
executing leases for comparable space in similar buildings in Redwood Shores,
with similar amenities, taking into consideration: size, location, floor level,
leasehold improvements or allowances provided or to be provided, proposed term
of the lease, extent of services to be provided, the time that the particular
rate under consideration became or is to become

                                       1

<PAGE>   38

effective, and any other relevant terms or conditions. Landlord leasing costs,
not charged to tenants, shall not be considered when determining Fair Market
Rental, nor shall the value of any alterations or improvements paid for by
Lessee. Fair Market Rental as of the Adjustment Date shall be determined by
Lessor with written notice (the "Notice") given to Lessee not later than thirty
(30) days after receipt of the Option Notice, subject to Lessee's right to
arbitration as hereinafter provided. Failure on the part of Lessee to demand
arbitration within thirty (30) days after receipt of the Notice from Lessor
shall bind Lessee to the Fair Market Rental as determined by Lessor. Should
Lessee elect to arbitrate and should the arbitration not have been concluded
prior to the Adjustment Date, Lessee shall pay the Base Monthly Rent to Lessor
after the Adjustment Date, adjusted to reflect the Fair Market Rental as Lessor
has so determined. If the amount of the Fair Market Rental as determined by
arbitration is greater than or less than Lessor's determination, then any
adjustment required to adjust the amount previously paid shall be made by
payment by the appropriate party within ten (10) days after such determination
of Fair Market Rental.

        B. If Lessee disputes the amount claimed by Lessor as Fair Market
Rental, Lessee may require that Lessor submit the dispute to arbitration. The
arbitration shall be conducted and determined in the County of San Mateo in
accordance with the then prevailing rules of the American Arbitration
Association or its successor for arbitration of commercial disputes, except that
the procedures mandated by such rules shall be modified as follows:

        (i) Lessee shall make demand for arbitration in writing within thirty
(30) days after service of the Notice, specifying therein the name and address
of the person to act as the arbitrator on Lessee's behalf. The arbitrator shall
be a real estate appraiser with at least five (5) years full-time commercial
appraisal experience who is familiar with the Fair Market Rental of first-class
commercial office space in Redwood Shores. Failure on the part of Lessee to make
the timely and proper demand for such arbitration shall constitute a waiver of
the right thereto. Within ten (10) business days after the service of the demand
for arbitration, Lessor shall give notice to Lessee specifying the name and
address of the person designated by Lessor to act as arbitrator on its behalf,
which arbitrator shall be similarly qualified. If Lessor fails to notify Lessee
of the appointment of its arbitrator, within or by the time specified, then the
arbitrator appointed by Lessee shall be the arbitrator to determine the Fair
Market Rental for the Premises.

        (ii) If two arbitrators are chosen pursuant to Section 45.02(b)(i)
above, the arbitrators so chosen shall meet within ten (10) business days after
the second arbitrator is appointed and shall appoint a third arbitrator, who
shall be a competent and impartial person with qualifications similar to those
required of the first two arbitrators pursuant to Section 45.02(b)(i) above. If
they are unable to agree upon such appointment within five (5) business days
after expiration of such ten (10) day period, the third arbitrator shall be
selected by the parties themselves. If the parties do not so agree, then either
party, on behalf of both, may request appointment of such a qualified person by
the then president of the Real Estate Board for the County of San Mateo. The
three arbitrators shall decide the

                                       2

<PAGE>   39

dispute, if it has not been previously resolved, by following the procedures set
forth in Section 45.02(b)(iii) below.

        (iii) The Fair Market Rental shall be fixed by the three arbitrators in
accordance with the following procedures. Each of the arbitrators selected by
the parties shall state, in writing, his determination of the Fair Market Rental
supported by the reasons therefor and shall make counterpart copies for each of
the other arbitrators. The arbitrators shall arrange for a simultaneous exchange
of such proposed resolutions. The role of the third arbitrator shall be to
select which of the two proposed resolutions most closely approximates his
determination of Fair Market Rental. The third arbitrator shall have no right to
propose a middle ground or any modification of either of the two proposed
resolutions. The resolution he chooses as that most closely approximating his
determination of the Fair Market Rental shall constitute the decision of the
arbitrators and shall be final and binding upon the parties.

        (iv) In the event of a failure, refusal or inability of any arbitrator
to act, his successor shall be appointed by him, but in the case of the third
arbitrator, his successor shall be appointed in the same manner as that set
forth herein with respect to the appointment of the original third arbitrator.
The arbitrators shall attempt to decide the issue within ten (10) business days
after the appointment of the third arbitrator. Any decision in which the
arbitrator appointed by Lessor and the arbitrator appointed by Lessee concur
shall be binding and conclusive upon the parties, except that such arbitrators
shall not attempt by themselves to mutually ascertain the Fair Market Rental and
any such determination, in a manner other than that provided for in Section
45.02(b)(iii) hereof, shall not be binding on the parties. Each party shall pay
the fees and expenses of its respective arbitrator and both shall share the fees
and expenses of the third arbitrator. Attorneys' fees and expenses of counsel
and of witnesses for the respective parties shall be paid by the respective
party engaging such counsel or calling such witnesses.

        (v) The arbitrators shall have the right to consult experts and
competent authorities for factual information or evidence pertaining to a
determination of Fair Market Rental, but any such consultation shall be made in
the presence of both parties with full right on their part to cross-examine. The
arbitrators shall render the decision and award in writing with counterpart
copies to each party. The arbitrators shall have no power to modify the
provisions of this Lease.

46. SECURITY DEPOSIT:

Lessee shall provide Lessor a security deposit in an amount equal to six (6)
month's rent or a letter of credit in a mutually acceptable form upon execution
of the Lease Agreement.

                                       3

<PAGE>   40
                                   EXHIBIT A

                                 [BUILDING MAP]
<PAGE>   41
                                  EXHIBIT B-1

                                 [BUILDING MAP]
<PAGE>   42
                            FIRST AMENDMENT TO LEASE

This First Amendment to Lease (the "First Amendment") made on July 12, 1999, is
made by and between Franklin Select Realty Trust, a California Corporation
("Lessor"), and Software Technologies Corporation, a California Corporation
("Lessee").

                                    RECITALS

Lessor and Lessee entered into that certain lease dated June 10, 1999 (the
"Lease"), pursuant to which Lessor leased to Lessee, and Lessee leased from
Lessor, those certain premises (the "Existing Premises") comprising
approximately Ten Thousand Nine Hundred Seventy-Two (10,972) rentable square
feet commonly known as 100 Marine Parkway, Suite 500, Redwood City, California,
as more particularly described in the Lease and subsequent Amendments thereof.

NOW, THEREFORE, NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THE
LEASE, LESSOR AND LESSEE AGREE TO AMEND THE RESPECTIVE SECTIONS OF SAID LEASE
AND ALL AMENDMENTS AND EXHIBITS THERETO, AS FOLLOWS:

1.01  Premises. In addition to the Existing Premises identified in the Lease,
Lessor leases to Lessee, and Lessee leases from Lessor, Suite 525, consisting
of approximately Six Thousand Four Hundred Thirty-Four (6,434) rentable square
feet of office space (the "Expansion Premises," and, together with the
Existing Premises, the "Premises"), as shown on Exhibit A attached hereto and
made a part of this First Amendment. Therefore, the entire Premises now
consists of Seventeen Thousand Four Hundred and Six (17,406) rentable square
feet.

1.06  Lease Term. The Lease Term shall commence upon the earlier of October 1,
1999 or upon substantial completion of the tenant improvements by Lessor and
shall terminate September 30, 2004. Pursuant to the additional terms of
Paragraph 2.02 of the Lease, within five (5) business days following full
execution and delivery to Lessee of this First Amendment, Lessee shall provide
Lessor with a final revised space plan as approved by Lessee to replace Exhibit
B-1 (the "Revised Space Plan"), which Revised Space Plan is subject to Lessor's
final approval. Any delays beyond said five (5) business day period or any
changes or modifications made by Lessee to the approved Revised Space Plan or
subsequent working drawings thereafter shall be considered a delay caused by
Lessee. All such resulting delays that cause the tenant improvements to be
substantially completed later than October 1, 1999, except for delays caused
solely by Lessor, its agents or contractors, shall not delay the commencement
of the Lease Term including the payment of rent by Lessee.

1.07  Base Monthly Rent. The Base Monthly Rent for the Premises shall be subject
to the terms and conditions of the Lease, Exhibit D, Section 43 based upon the
size of the Premises as revised under Section 1.01 above.

                                  Page 1 of 2
<PAGE>   43
1.08 Security Deposit: The Security Deposit for the Premises shall be subject
to the terms and conditions of the Lease, Exhibit D, Section 46 based upon the
size of the Premises as revised under Section 1.01 above.

1.10 Proportionate Share. Lessee's Proportionate Share is 21.32%.

Exhibit "B"; Lessor's Work; paragraph "A". The Allowance for tenant
improvements for the Premises shall be subject to the terms and conditions of
the Lease, Exhibit B based upon the size of the Premises as revised under
Section 1.01 above.

Defined Terms. All defined terms as used in this First Amendment shall have the
same meanings as set forth in the Lease, unless otherwise expressly set forth
herein.

All other terms and conditions not amended herein remain unchanged.

IN WITNESS WHEREOF, Lessor and Lessee have executed this First Amendment to
Lease as of the day and year indicated by Lessor's execution date as written
below.

Lessee warrants that the individual(s) signing on behalf of Lessee have the
authority to bind their principals. In the event that Lessee is a corporation,
Lessee shall deliver to Lessor, concurrently with the execution and delivery of
this First Amendment to Lease, a certified copy of corporate resolutions
adopted by Lessee authorizing said corporation to enter into and perform this
First Amendment to Lease and authorizing the execution and delivery of this
First Amendment to Lease on behalf of the corporation by the parties executing
and delivering this First Amendment to Lease. THIS FIRST AMENDMENT TO LEASE
WHETHER OR NOT EXECUTED BY LESSEE, IS SUBJECT TO ACCEPTANCE AND EXECUTION BY
LESSOR, ACTING ITSELF OR BY ITS AGENT ACTING THROUGH ITS SENIOR VICE PRESIDENT,
VICE PRESIDENT, REGIONAL VICE PRESIDENT, REGIONAL MANAGER, ASSISTANT REGIONAL
MANAGER, OR AREA MANAGER AT ITS HOME OFFICE.

LESSOR:                                 LESSEE:

Franklin Select Realty Trust,           Software Technologies Corporation,
a California Corporation                a California Corporation

BY: /s/ MARK TENBOER                    BY: /s/ JAMES T. DEMETRIADES
-------------------------------         -------------------------------
    (Authorized Signature)                  (Authorized Signature)

        Vice President                     Chairman, CEO & President
-------------------------------         -------------------------------

DATE:   7/26/99                         DATE:  7-13-99
-------------------------------         -------------------------------
     (Execution Date)

                                  Page 2 of 2

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