Document:

FIRST ADDENDUM TO LEASE

     This First  Addendum to Lease  ("First  Addendum")  is dated for  reference
purposes  August  18,  1999,  and is made  between  The  Joseph  Pell & Eda Pell
Revocable Trust dated August 18, 1989 ("Landlord") and Adept Technology, Inc., a
California  corporation,  ("Tenant")  to be a part of that  certain  Lease dated
April 30,  1998.  Landlord  and  Tenant  agree  that the Lease is  modified  and
supplemented by this First Addendum.

     Landlord  and Tenant are parties to the Lease  pursuant  to which  Landlord
leased to Tenant and Tenant leased from Landlord  building space.  Tenant wishes
to expand its Premises the Lease is hereby amended as follows:

1.   Premises.  The added premises ("Added  Premises") of  approximately  12,862
     square feet located at 4659 Las Positas Road in the Arroyo Business Park in
     Livermore, California, as shown by Exhibit A attached hereto.

2.   Term.  The term of the Added Premises shall commence on the date the Tenant
     opens  for  business  or 120 days  after the date this  First  Addendum  is
     signed. The length of the term shall be four (4) years.

3.   Base Rent. Tenant agrees to pay Landlord Base Rent as follows:

     Months  1-18     $.94 psf NNN
     Months 19-48    $1.04 psf NNN

     Rent for the first  full  month of the Term  shall be paid by  Tenant  upon
     Tenant's execution of this Lease.

4.   Security Deposit. Upon execution of this First Addendum, Tenant will pay to
     Landlord a Security  Deposit  in the amount of Twelve  Thousand  and Ninety
     Dollars ($12,090.00).

5.   Tenant Improvements:

     A.  Plans and  Specifications.  Tenant  shall have an architect of Tenant's
         choice   ("Architect")   prepare   construction   drawings  and  design
         specifications for the Premises. All such architectural and engineering
         drawings and  specifications are herein referred to as the "Plans." The
         Plans shall be  submitted  to Landlord for  Landlord's  approval  which
         shall be evidenced by Landlord's signing the Plans. Landlord's approval
         shall not be unreasonably  withheld,  delayed or conditioned.  Landlord
         shall have ten (10) business days to review the Plans.

     B.  Selection  of  Contractor.  The  contractor  ("Contractor")  who  shall
         perform the tenant  improvement  work in the Premises shall be selected
         by Tenant.  Landlord  shall have ten (10)  business  days to approve or
         disapprove Tenant's selection of a Contractor, which approval shall not
         be unreasonably withheld,  delayed or conditioned.  Landlord's criteria
         for evaluation of Tenant's Contractor shall include, but not be limited
         to,  reputation  and  quality  of  workmanship,  record  of  completing
         previous  jobs,  relationship  with the City of Livermore  Building and
         Planning

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         Departments,   cooperativeness   in  dealing  with   Landlord  and  its
         employees,   and  financial  strength.  If  Landlord  rejects  Tenant's
         Contractor,  the reasons for the rejection  shall be stated in a letter
         to Tenant. If a Contractor is rejected by Landlord,  another Contractor
         shall be selected  and its name  submitted  in writing  within five (5)
         business days. Each Contractor shall be evaluated by Landlord using the
         criteria stated above.

     C.  Standard  of   Construction.   Contractor  shall  complete  all  tenant
         improvement  work in  accordance  with  the  Plans  and  shall  make no
         alterations,  additions,  or  reinforcements  to the  structure  of the
         Building  except as  specifically  approved  by  Landlord  in  writing.
         Tenant, or Contractor,  at its expense,  shall procure all building and
         other permits  required for completion of Tenant's work.  Tenant agrees
         that all work done by Tenant, its Contractor and  subcontractors  shall
         be performed in full compliance with all laws, rules, orders,  permits,
         ordinances,   directions,   regulations   and   requirements   of   all
         governmental  agencies,  offices,  and departments of all  governmental
         agencies,  offices,  and  departments  having  jurisdiction,  including
         without limitation applicable provisions pertaining to use of hazardous
         or toxic materials and the American with  Disabilities Act, and in full
         compliance  with  the  rules,  orders,   directions,   regulations  and
         requirements   of  the  Board  of  Fire   Underwriters   or  any  other
         organization performing a similar function.

         Landlord shall have the right to enter the Premises at any time to post
         any Notice of Non-Responsibility or other notice on the Premises during
         Tenant's    construction.    Contractor   and   all   contractors   and
         subcontractors  retained by Tenant or Contractor  shall be bondable and
         bonded licensed contractors,  possessing good labor relations, adequate
         financial   strength,   and  have  a  record  of   performing   quality
         workmanship.

         During the course of construction, Tenant shall maintain builder's risk
         insurance in the form and content reasonably  satisfactory to Landlord.
         Tenant's  insurance  shall name Landlord as an  additional  insured and
         shall  provide that it may not be cancelled or amended  without  twenty
         (20) days prior written notice to Landlord. At least seven (7) calendar
         days  prior to  commencement  of  construction,  Tenant  shall  provide
         Landlord  with a  certificate  of such  insurance  and  evidence of any
         required bonds in form satisfactory to Landlord.

         Contractor  shall complete the tenant  improvement  work with diligence
         and in such a manner as not to  interfere  with the use or enjoyment of
         other portions of the Building or adjacent buildings or common areas by
         Landlord or other tenants.  Contractor  shall provide for all temporary
         power,  water and other  utility  facilities  as required in connection
         with the  construction of Tenant's work.  Contractor  shall provide its
         own dumpster for collection and  disposition  of  construction  debris,
         which  shall be located at a location  approved  by  Landlord,  and all
         construction   debris  from  construction   shall  be  disposed  of  in
         Contractor's  dumpster  and not in trash  facilities  for the  Project.
         Contractor's construction materials,

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         tools,  equipment  and debris shall be stored only within the Premises,
         or in areas  designated  for  that  purpose  by  Landlord.  Work  space
         exterior  to the  Premises  shall be  available  only with the  written
         approval of Landlord.  Tenant's  construction  work shall be subject to
         the   inspection   and    supervision   of   Landlord   and   Landlord"
         representative.

     D.  Liability.  Tenant and  Contractor  shall  indemnify  and hold harmless
         Landlord for any and all claims  arising  from  Tenant's  work.  Tenant
         shall  pay for all  damage  to the  Building  or  appurtenant  areas or
         equipment,  as well as all damage to tenants  or  occupants  thereof or
         their  licensees or  invitees,  including,  but not limited to,  losses
         incurred  as  the  result  of  power  outages  caused  by  Tenant's  or
         Contractor's  work in the  Building.  Any such  damages may be deducted
         from the Allowance  (as  hereinafter  defined).  Tenant shall be solely
         responsible   for  the   adequacy   in  all   respects  of  the  tenant
         improvements,   including  without   limitation   compliance  with  all
         governmental  requirements,  compatibility with the Building shell, and
         any special  requirements  of Tenant's  proposed  equipment or machines
         with respect to ambient  temperatures,  electrical  use or current,  or
         water availability.

     E.  Tenant  Improvement  Allowance.  Landlord  shall  contribute,  for  the
         Premises,  an amount equal to the product of Sixteen  Dollars  ($16.00)
         times the square  footage of the Premises (that is,  $205,792.00)  (the
         "Allowance").   The   Allowance   shall   include  all   architectural,
         engineering  and  consultant  fees,  and  all  other  fees  charged  in
         conjunction  with  preparation  of the Plans.  All costs  exceeding the
         Allowance shall be borne by Tenant.

     F.  Disbursement of Allowance.  Once a month, on or before the tenth (10th)
         day of the  month,  Tenant  shall  present to  Landlord  a Request  for
         Disbursement   ("Request  for  Disbursement")   requesting  payment  by
         Landlord  of any  costs  associated  with the  design,  engineering  or
         construction of the tenant  improvements for the Premises.  The Request
         for Disbursement shall include the following information:

         (i) A certificate from Tenant confirming that all of the work contained
         in the Request for  Disbursement  has been completed in accordance with
         the applicable contracts.

         (ii) Unconditional  mechanics lien releases and copies of invoices from
         the  Contractor,  subcontractors,   suppliers  and  materialmen  marked
         "Paid."

         (iii) And such other  reasonable  documentation  as may be requested by
         Landlord  not later than the  twenty-fifth  (25th) day of the  previous
         month.

     G.  Allowance  Payments.  Payment  shall  not be  made on any  Request  for
         Disbursement  until all of the information and  documentation  above is
         complete.  Payment  shall be made only for those  materials  which have
         been installed or which have been  delivered to the Premises.  Landlord
         shall  have  five (5)  calendar  days from the date of  receipt  of the
         Request for Disbursement to review same and

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         request clarification. If Landlord is in Agreement with the Request for
         Disbursement,  payment  shall be made to Tenant within ten (10) days of
         receipt of the Request for  Disbursement.  If any items are in dispute,
         Landlord  shall not make  payment on those  items  until the dispute is
         resolved,  but Landlord shall make payment to Tenant of all amounts not
         in  dispute  within  ten  (10)  days  of  receipt  of the  Request  for
         Disbursement.  Landlord  shall  not  unreasonably  withhold,  delay  or
         condition  its  approval  of any  Request  for  Disbursement  or on any
         specific request for payment made therein. A final disbursement of Five
         Thousand Dollars ($5,000.00) shall be held until all punchlist items in
         the Premises are complete, and the time for the filing of any mechanics
         liens claimed or which might be filed on account of any work  performed
         by Tenant,  Contractor,  subcontractors,  suppliers or materialmen  has
         passed.  Any  damage  to  Landlord's   property  will  be  repaired  to
         Landlord's satisfaction.  Once Landlord has disbursed the entire amount
         of the  Allowance  to  Tenant,  except the final  disbursement  of Five
         Thousand  Dollars  ($5,000.00),  any and all costs  associated with the
         design,  engineering  or  construction  of the  Premises  shall be paid
         directly by Tenant.

8.   Except as set forth  herein, the Lease shall remain  unmodified and in full
     force and effect.  Should  there by any  conflict  between the terms of the
     Lease  and the  terms of this  First  Addendum,  the  terms  of this  First
     Addendum shall control.

     IN WITNESS WHEREOF,  the parties have executed this First Addendum to Lease
as of the date written below.

Landlord:       The Joseph Pell and Eda Pell Revocable
                Trust dated August 18, 1989

                /s/ Karen Pell
                --------------------------------------
                Karen Pell, Trustee

                Date: 9-21-99
                      --------------------------------

Tenant:         Adept Technology, Inc.

                /s/ K.M. Fisher
                --------------------------------------

                Date: 9-16-99
                      --------------------------------

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                                   EXHIBIT A

          IDENTIFICATION OF THE PREMISES. THE BUILDING AND THE PROJECT

                               [GRAPHIC OMITTED]

                                                               Project

          Premises                                             Building

    Added Premises

                                 First Addendum
                             Arroyo Business Center
                      46O3, 4647, & 4659 Las Positas Road,
                             Livermore, California

                                   Exhibit ALEASE

         This Lease is entered  into and made as of the 28th day of April,  2000
by and between Michael A. and Diane L. Edwards (hereinafter together referred to
as  "Landlord"),   and  Adept  Technology,  INC.,  a(n)  California  corporation
(hereinafter  referred  to as  "Tenant"),  who, in  consideration  of the mutual
covenants  and  agreements  set  forth  below,  mutually  covenant  and agree as
follows:

         1.  Lease of  Premises.  In  consideration  of the rents and  covenants
hereinafter  set forth,  Landlord  hereby  leases to Tenant,  and Tenant  hereby
accepts and leases from  Landlord,  the real property  commonly known as 2575 N.
Dragoon,   Tucson,   Arizona  85745  together  with  all  improvements   thereon
(collectively,  "Premises"),  which are legally  described on Exhibit A attached
hereto and made a part hereof.

         2. Term.  The term of this Lease ("Term") shall be for a period of five
(5) years  commencing  April 28, 2000 and expiring  April 28, 2005 unless sooner
terminated as provided herein.  Upon the termination or sooner expiration of the
Term,  all  improvements  to the Premises  made by Tenant  during the Term shall
become Landlord's property. At any time up until 90 days prior to the expiration
of this Lease, the Landlord grants to Tenant one option to extend the Lease Term
for one period of five (5) years upon terms to be  negotiated at the time of the
option request from the Tenant.

         3. Rent. Tenant shall pay to Landlord at the office of Landlord,  or to
such  other  person or at such  other  place as  Landlord  may from time to time
direct in writing,  in lawful money of the United  States of America,  an annual
rental  ("Base  Rent") of One Hundred  Thirty Six Thousand  Nine Hundred  Twenty
Dollars ($136,920) payable in equal monthly  installments  ("Monthly Base Rent")
of Eleven  Thousand  Four Hundred Ten Dollars  ($11,410) in advance on or before
the first day of each and every calendar month of the term of this Lease. If the
Term of this  Lease  commences  on a day other  than the first day of a calendar
month,  or ends on a day other than the last day of a calendar  month,  then the
Monthly Base Rent for such fractional  month shall be prorated on the basis of a
365-day  year.  If default  shall be made in the due and punctual  payment of an
installment  of rent, the amount of the  installment  due and payable shall bear
interest at the rate of eighteen percent (18%) per annum from the due date until
paid.

Lease for 2575 N. Dragoon, Tucson, AZ
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         4. Rent Adjustment. For the lease period of April 28, 2000 to April 28,
2005, there shall be no annual rent adjustment made.

         5.  Condition of Premises.  Tenant's entry and possession of all or any
part of the Premises  shall be  conclusive  evidence as against  Tenant that the
Premises  are  in  good  order  and  satisfactory  condition  when  Tenant  took
possession  thereof.  No promise of Landlord or its agents to alter,  remodel or
improve the  Premises or any  improvements  on or  comprising  the same,  and no
representation  respecting the condition of the Premises or the  improvements on
or comprising the same, have been made by Landlord or its agents to Tenant,  and
Tenant accepts the same "as is".

         6. Use. Tenant shall use and occupy the Premises for the purpose of the
engineering,  design, and fabrication of equipment only and for no other purpose
whatsoever.  Tenant  shall not allow the  Premises  or the  equipment  contained
therein to be used for any purpose  which may  materially  increase  the rate of
insurance  thereon.  Tenant shall not permit any transfer by operation of law or
otherwise of its interest in the Premises  acquired through this Lease, and will
not permit the Premises to be used for any unlawful purpose,  or for any purpose
which may injure the  reputation  of the Premises or increase the fire hazard of
the same or disturb other tenants or members of the  neighborhood.  Tenant shall
not allow any signs, cards or placards to be posted or placed on the Premises or
permit any  alteration  of or  addition to any part  thereof,  without the prior
written consent of Landlord first had.

         7. Alterations, Mechanics' Lien. Tenant may not perform any alterations
to or for the  benefit of the  Premises  or any part  thereof  without the prior
written consent of Landlord first had which will not be  unreasonably  withheld.
Landlord's  consent  to any such  alterations  shall be  conditioned  upon  such
requirements as Landlord deems appropriate  including,  without limitation,  the
submission of detailed plans and  specifications  therefor and to require Tenant
to furnish to Landlord  satisfactory security for the payment of all costs to be
incurred in  connection  with any such  alterations.  Furthermore,  Tenant shall
furnish Landlord with contractors' affidavits and full and final waivers of lien
covering all labor and materials  expended and used in connection  with any such
alterations.  Tenant shall not permit any mechanic's  lien or liens to be placed
upon the Premises thereon during the Term hereof, and in the event of the filing
of such lien,  Tenant shall  promptly pay and remove the same. If default in the
payment and release of such lien shall  continue for ten (10) days after written
notice thereof from Landlord to Tenant, Landlord

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shall have the right and  privilege at  Landlord's  option of paying the same or
any portion thereof without inquiry as to the validity thereof,  and any amounts
so paid, including expenses and interest, shall be additional rent hereunder due
from Tenant to Landlord and shall be repaid to Landlord immediately on rendition
of a statement therefor.

         8.  Indemnity.  Tenant  covenants  and agrees  that it will  indemnify,
protect,  defend and hold  Landlord  harmless  against  and from any  penalty or
damages or charges imposed for any violation of any laws or ordinances,  whether
occasioned by the act or neglect of Tenant or those  holding  under Tenant,  and
that Tenant shall at all times protect,  indemnify, defend and hold Landlord and
its  officers,  directors,  shareholders,  partners and  beneficiaries  harmless
against and from any and all claims,  including workmen's  compensation  claims,
losses,  costs,  damages or  expenses  arising out of or from or relating to any
occurrence  on or about the Premises  causing  injury to any person or damage to
property whomsoever or whatsoever; and shall protect, indemnify, defend and hold
all of them  harmless  against  and from any and all claims and against and from
any and all losses,  costs,  damages and expenses  arising out of any failure of
Tenant in any  respect  to  comply  with or  perform  all the  requirements  and
provisions  hereof,  and Tenant  shall  defend at its  expense  any such  claims
against said persons and entities.

         9. Non-Liability of Landlord.  (a) Landlord shall be not liable for any
damage occasioned by failure to keep the Premises in repair,  nor for any damage
done or occasioned by or from plumbing,  gas, water,  sprinkler,  steam or other
pipes or  sewerage  or the  bursting,  leaking or running of any pipes,  tank or
plumbing  fixtures,  in,  above,  upon or  about  Premises  or any  building  or
improvement thereon, nor for any damage occasioned by water or ice being upon or
coming through the roof, skylights, trap doors or otherwise, nor for any damages
arising from act or neglect of any owners or occupants of adjacent or contiguous
property.

         (b) The term  "Landlord"  as used  herein  shall mean only the owner or
owners at the time in  question  or at issue of the fee title to, or a  lessee's
interest  in a ground  lease of,  the  Premises.  Except as  otherwise  provided
herein,  in the event of a transfer of such title or interest,  Landlord  herein
named  (and in case of any  subsequent  transfers,  the then  grantor)  shall be
relieved from and after the date of such transfer of all liability  with respect
to Landlord's obligations thereafter to be observed or performed,  provided that
any funds in the possession of Landlord, or the then grantor at the time of such
transfer, in which Tenant has an interest, shall be delivered or credited to

Lease for 2575 N. Dragoon, Tucson, AZ
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the grantee. The obligations contained in this Lease to be performed or observed
by Landlord shall, subject to the foregoing, be binding on Landlord's successors
and assigns, but only during their respective periods of ownership.

         10. Taxes,  Utilities and Operating Expenses. (a) Tenant shall contract
for and pay to  either  Landlord  on  demand or the  governmental  entities  and
utility companies  directly,  in addition to the Base Rent above specified,  all
real estate taxes and  assessments  of every kind and nature  whatsoever,  water
rents, gas, electric,  light and power bills taxed, consumed by Tenant or levied
or charged against the Premises during the Term of this Lease;  and in the event
said real estate taxes and assessments, water rents and bills for gas, electric,
light and power and such other  costs and  expenses  shall not be paid when due,
Landlord shall have the right,  but not the obligation,  to pay the same,  which
amounts so paid, together with any sums paid by Landlord to keep the Premises in
a clean and healthy  condition as required  hereby,  shall be so much additional
Base Rent and shall be payable  with the  installment  of Monthly Base Rent next
due thereafter.

         (b) Tenant shall pay to Landlord,  or reimburse  Landlord for, specific
or general  taxes or  excises on rents or other  income  from the  Premises  and
specific or general  gross  receipts  taxes or excises on rents or other  income
from the Premises.

         (c) Tenant  acknowledges and agrees that this Lease is intended to be a
so-called  "net  lease" in that it is to be  completely  carefree  to  Landlord,
except  as  expressly  stated  otherwise  herein;   and  that  Landlord  is  not
responsible during the Term for any costs,  charges,  expenses or outlays of any
nature  whatsoever  arising  from or  relating  to the  Premises,  or the use or
occupancy thereof,  or the contents thereof, or the business carried on therein;
and furthermore,  Tenant shall pay all charges,  expenses, costs, and outlays of
every nature and kind  relating to the Premises,  except as otherwise  expressly
stated in this Lease.

         (d) Prior to Tenant  entering into any  agreement  with any third party
for any  maintenance or repair of any part of the Premises,  Tenant shall submit
the  name  thereof  to  Landlord  for  its  prior  written  approval  not  to be
unreasonably withheld.

         11.  Access to  Premises.  Tenant  shall allow  Landlord  access to the
Premises at all times during normal  business hours for the purpose of examining
or exhibiting the same, or to make any

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repairs Landlord so elects or alterations  thereto which Landlord may reasonably
see fit to make.

         12. Holding Over. Tenant shall, at the expiration or sooner termination
of this Lease by lapse of time or  otherwise,  yield up immediate  possession of
the Premises to Landlord,  and failing to do so, shall pay as liquidated damages
for the whole time such possession is withheld,  the sum of Five Hundred Dollars
($500) per calendar day;  provided,  however,  the  provisions of this paragraph
shall  not be  held  as a  waiver  by  Landlord  of any  right  of  re-entry  as
hereinafter  set forth;  nor shall the receipt of said rent or any part thereof,
or any other act in apparent  affirmance of tenancy,  operate as a waiver of the
right to terminate  this Lease and the Term hereby  granted for the period still
unexpired for a breach of any of the covenants contained herein.

         13. Fire and  Casualty.  In the event the  Premises or any part thereof
shall be rendered  untenantable  during any portion of the Term of this Lease by
fire or other  casualty,  Landlord,  at its option,  may terminate this Lease or
require  Tenant,  at is cost and  expense,  to repair  the same  within 180 days
thereafter.  If Tenant is  required  to repair the  Premises,  this Lease  shall
remain in effect,  provided  such  repairs are  completed  within said time.  If
Tenant shall not repair the Premises  within said time,  then at the end of such
time,  the Term hereby created shall  terminate.  If this Lease is terminated by
reason  of fire or other  casualty  as  herein  specified,  Base  Rent  shall be
apportioned and paid to the date of such fire or other casualty.

         14.  Signs.  Tenant may place  signs on or about the  Premises  and may
remove  the  same;  provided,   however,   that  Tenant  receives  any  required
governmental  approvals therefor and the placement of such signs shall in no way
impair or damage any  structure of the  Premises.  All signs shall be removed by
Tenant,  without damage to the Premises, and at its cost, upon the expiration of
the Term or the  termination of this Lease.  Tenant shall comply with all codes,
zoning and other  applicable  ordinances and all other laws and regulations with
respect  to the  size,  placement  and  appearance  of such  signs  prior to the
installation thereof.

         15. Repairs.  Except as otherwise provided herein,  Landlord shall have
no obligation to perform any repairs or replacements to or of the Premises or to
incur any expense for replacing or repairing any  improvements  on or comprising
the  Premises.  Tenant  shall keep the  Premises,  including  all  improvements,
fixtures and appurtenances  thereon and therein,  in good repair,  replacing all
broken  glass with glass of the same size and quality as that  broken,  and will
replace all damaged equipment and fixtures with

Lease for 2575 N. Dragoon, Tucson, AZ
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others  of equal  quality,  and shall  keep the  Premises,  including  adjoining
alleys,  if any, in a clean and healthful  condition and in compliance  with all
conditions, covenants and restrictions affecting the Premises and all applicable
municipal zoning codes and ordinances, governmental regulations and laws, all at
Tenant's  sole  cost and  expense.  Upon the  expiration  of the Term or  sooner
termination  of this Lease,  Tenant  shall yield up the  Premises to Landlord in
good condition and repair, loss by ordinary wear excepted, and shall deliver the
keys therefor at the place of payment of Monthly Base Rent.  Except as otherwise
provided herein,  Tenant hereby assumes the full and sole responsibility for all
repairs to, and for any condition, operation, maintenance and management of, the
Premises as of the date hereof and throughout the Term of this Lease.  If Tenant
does not make repairs as required  hereunder  promptly and adequately,  Landlord
may, but is not obligated to, make such repairs and pay the costs  thereof,  and
such  costs  shall be so much  additional  Base  Rent  immediately  due from and
payable by Tenant to Landlord upon demand therefor.

         16.  Environmental  Concerns.  (a) As used herein,  the term "Hazardous
Material"  shall mean any substance or material which has been determined by any
state, federal or local governmental authority to be capable of posing a risk of
injury to health,  safety or  property,  including  all of those  materials  and
substances  designated as hazardous or toxic by the county in which the Premises
are located,  the U.S.  Environmental  Protection  Agency,  the Consumer Product
Safety Commission, the U.S. Food and Drug Administration, the Arizona Department
of  Environmental  Quality,  or any other  governmental  agency now or hereafter
authorized to regulate materials and substances in the environment.

         (b) Tenant  agrees not to introduce  any  Hazardous  Material in, on or
adjacent  to  the  Premises  without  (i)  obtaining  Landlord's  prior  written
approval,  (ii) providing Landlord with thirty (30) days prior written notice of
the exact amount,  nature and manner of intended use of such Hazardous Material,
and (iii) complying with all applicable  federal,  state and local laws,  rules,
regulations, policies and authorities relating to the storage, use, disposal and
clean up of Hazardous Material,  including, but not limited to, the obtaining of
all proper permits.

         (c) Tenant shall  immediately  notify  Landlord of any  inquiry,  test,
investigation or enforcement proceeding by, against or directed at Tenant or the
Premises concerning any Hazardous  Material.  Tenant acknowledges that Landlord,
as the owner of the Premises, shall have the right, at its election, in

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its own name or as Tenant's agent, to negotiate, defend, approve, and appeal, at
Tenant's  expense,  any action  taken or order issued with regard to a Hazardous
Material by any applicable governmental authority.

         (d) If Tenant's storage,  use or disposal of any Hazardous Material in,
on or adjacent to the Premises results in any contamination of the Premises, the
soil, surface or groundwater thereunder or the air above and around the Premises
(i) requiring  remediation under federal,  state or local statutes,  ordinances,
regulations or policies,  or (ii) at levels which are  unacceptable to Landlord,
in  Landlord's  sole  and  absolute   discretion,   Tenant  shall  clean-up  the
contamination  immediately,  at Tenant's sole cost and expense.  Tenant  further
agrees to indemnify, defend, protect and hold Landlord harmless from and against
any claims, suits, causes of action, fines, penalties,  costs, damages, loss and
fees,  including attorneys' fees and costs, arising out of or in connection with
(i) any clean-up work, inquiry or enforcement  proceeding  relating to Hazardous
Material  currently  or hereafter  used,  stored or disposed of by Tenant or its
agents, employees, contractors,  licensees or invitees on or about the Premises,
and (ii) the  use,  storage,  disposal  or  release  by  Tenant  of its  agents,
employees,  contractors,  licensees or invitees of any Hazardous  Material on or
about the Premises.

         (e)  Notwithstanding any other right of entry granted to Landlord under
this  Lease,  Landlord  shall  have the right to enter the  Premises  or to have
consultants  enter the Premises  throughout the Term at reasonable  times during
business hours for the purposes of determining:  (1) whether the Premises are in
conformity with federal, state and local statutes,  regulations,  ordinances and
policies,  including  those  pertaining  to the  environmental  condition of the
Premises; (2) whether Tenant has complied with all of its obligations hereunder;
and (3) the corrective  measures,  if any, required of Tenant to ensure the safe
use, storage and disposal of Hazardous Material. Tenant shall provide access and
reasonable  assistance for such inspections.  Such inspections may include,  but
are not limited to,  entering the  Premises  with  machinery  for the purpose of
obtaining  laboratory  samples.  Landlord  shall not be limited in the number of
such inspections during the Term. If, during such inspections,  it is found that
Tenant's use of Hazardous Material constitutes a violation of this Lease, Tenant
shall reimburse  Landlord for the cost of such inspections  within ten (10) days
of receipt of a written demand therefor.  If such consultants determine that the
Premises  are  contaminated  with  Hazardous  Material  or in  violation  of any
applicable  environmental law, Tenant shall, in a timely manner, at its expense,
remove such Hazardous Material or otherwise comply with the recommendation of

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such  consultants to the reasonable  satisfaction of Landlord and any applicable
governmental  agencies.  If  Tenant  fails  to do  so,  Landlord,  in  its  sole
discretion,  may, in addition to all other remedies  available to Landlord under
this Lease and at law and in equity,  cause the violation or contamination to be
remedied at Tenant's sole cost and expense. The right granted to Landlord herein
to inspect the Premises  shall not create a duty on  Landlord's  part to inspect
the Premises,  or liability of Landlord for Tenant's use, storage or disposal of
Hazardous Material, it being agreed and acknowledged that Tenant shall be solely
responsible for all liability in connection therewith.

         (f) Tenant shall surrender the Premises to Landlord upon the expiration
or  earlier  termination  of this  Lease  free of  Hazardous  Material  and in a
condition which complies with all governmental statutes, ordinances, regulations
and policies,  recommendations of consultants hired by Landlord,  and such other
reasonable requirements as may be imposed by Landlord.

         (g) Tenant's obligations hereunder and all indemnification  obligations
of Tenant under this Lease shall survive the  expiration or earlier  termination
of this Lease.

         17.  Insurance.  (a) Tenant  covenants  and agrees that it shall at all
times  during  the Term of the  Lease,  at its own cost and  expense,  carry and
maintain general liability insurance, including contractual liability insurance,
and property damage insurance for personal injury,  death or property damage, or
destruction of property,  occurring in, on or about the Premises with limits not
less than One Million Dollars  ($1,000,000.00) per occurrence or in such greater
amounts as Landlord may reasonably  require from time to time. Tenant shall also
carry  workmen's  compensation  insurance  as  required  by law and  such  other
insurance in such amounts as Landlord may reasonably require from time to time.

         (b) Tenant, at its expense,  shall at all times during the Term of this
Lease keep the Premises and insured  against loss by fire or any other casualty,
with extended  coverage,  for 100% of the full  replacement  cost therefor,  and
vandalism and malicious mischief coverage,  and shall keep all such insurance in
full force and effect during the entire Term of this Lease.

         (c) The  foregoing  insurance  shall be in companies  authorized  to do
business in the State of Arizona and in form,  substance  and amount  (where not
stated  above)  satisfactory  to Landlord and any  mortgagee or  beneficiary  of
Landlord.  The foregoing  insurance  shall  specify  Landlord,  its  successors,
mortgagee, trustee, beneficiary and assigns as additional

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insureds or payment of loss thereunder to Landlord,  its successors,  mortgagee,
trustee,  beneficiary  or assigns.  Policies  or  certificates  evidencing  such
insurance  shall be  delivered  to  Landlord  within  thirty (30) days after the
execution of this Lease, and renewals thereof shall be delivered to the Landlord
at least  thirty  (30)  days  prior to the  expiration  dates of the  respective
policies.  In the event  Landlord  at any time shall cause a mortgage or deed of
trust to be placed against the Premises,  Landlord shall be entitled to have all
appropriate insurance policies called for in this Lease endorsed with a standard
mortgagee loss payable clause,  making losses,  if any, payable to the mortgagee
or trustee or beneficiary as their  interests may appear.  Each of said policies
shall provide that Landlord be provided with thirty (30) days' advance notice of
intent to cancel the same.

         (d) In the event  Tenant  shall at any time fail,  neglect or refuse to
procure  insurance  required  hereunder or pay the premium costs as hereinbefore
provided therefor, or to provide Landlord upon demand with evidence of insurance
as required  herein,  then Landlord may at its discretion  procure or renew such
insurance, and any amounts paid therefor by Landlord shall be so much additional
rent due from Tenant to Landlord to be paid along with the next  installment  of
Monthly Base Rent hereunder, with interest at the rate of eighteen percent (18%)
per annum  from the date of  payment  thereof by  Landlord  until the  repayment
thereof to Landlord by Tenant.

         (e) Notwithstanding the foregoing, Landlord may during the Term of this
Lease keep the  improvements of the Premises insured against loss by fire or any
other  casualty with such extended  coverage and in such amounts as Landlord may
reasonably  deem  necessary  from time to time. In such event,  Tenant shall pay
Landlord upon demand the annual premium costs for such insurance.

         18.  Assignment  or  Subletting.  Tenant  shall not  transfer,  convey,
assign, encumber or hypothecate any interest in this Lease or in the Premises or
sublease all or any part thereof,  or allow any other person or entity to occupy
or use all or any part of the Premises without first obtaining  Landlord's prior
written consent,  which may be withheld by Landlord in its sole discretion.  Any
transfer or a series of  transactions  resulting  in the  transfer of control of
Tenant,  other than by reason of death,  shall be deemed to be an assignment and
transfer of Tenant's  interest under this Lease for purposes of this Section 19.
The term  "control",  as used  herein  shall  mean  the  power  to  directly  or
indirectly  direct,  or cause a direction  of, the  management  and  policies of
Tenant.

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         19.  Condemnation.  (a) If the whole of the Premises  shall be taken or
condemned for a public or quasi-public use or purpose by a competent  authority,
or if a portion of the Premises  shall be so taken that as a result  thereof the
balance of either cannot be used for the same purpose and with substantially the
same utility to Tenant as immediately  prior to such taking, or if the taking is
material and  substantial  and Landlord elects to terminate this Lease (Landlord
is hereby given such right to terminate), which election shall be made by giving
written  notice  thereof to Tenant  within  thirty  (30) days after  delivery of
possession to the condemning authority,  then in any of such events, the Term of
this Lease  shall  terminate  upon  delivery  of  possession  to the  condemning
authority,  and any award,  compensation or damages (hereinafter  referred to as
the "Award") shall be paid to and be the sole property of Landlord,  whether the
Award shall be made as compensation for diminution of the value of the leasehold
estate or the fee of the Premises or  otherwise;  and Tenant  hereby  assigns to
Landlord all of Tenant's right, title and interest, if any, in and to the Award.
Tenant shall continue to pay rents and other charges  hereunder  until the Lease
is terminated and any  impositions and insurance  premiums  prepaid by Tenant or
any unpaid  impositions  or other rents and charges  which  accrue  prior to the
termination,  shall be adjusted between the parties hereto.

         (b)  Notwithstanding  anything to the contrary set forth in this Lease,
in the event that one or more of the following  are taken through  condemnation,
Tenant may terminate  this Lease upon thirty (30) days' prior written  notice to
Landlord:

         (i)  ten  percent  (10%)  or  more  of the  usable  square  feet of the
Premises; or

         (ii) a lesser portion of the Premises that, if taken,  would materially
and adversely affect Tenant's use and occupancy of the Premises for the uses set
forth in Paragraph 6 hereof.

         (c)  Notwithstanding  anything to the contrary set forth in this Lease,
if any  part of the  Premises  is taken by  condemnation  and this  Lease is not
terminated, Rent shall be proportionately reduced, Landlord shall, at Landlord's
sole expense,  accomplish all necessary  restoration  to the Premises  resulting
from the  Condemnation and Rent shall be abated for the portion of the remaining
Premises not usable by Tenant until Landlord completes the restoration.

         20. Default.  (a) The following events are hereby defined as "Events of
Default":

                  (1) The failure of Tenant to pay an  installment of rent or to
make any other  payments or deposits of money as required  hereunder when due if
the failure continues for five (5)

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days after written notice of the failure from the Landlord to the Tenant; or

                  (2) The  failure of Tenant to  perform  or observe  any of the
other  covenants,  conditions and agreements of this Lease on the part of Tenant
to be performed or observed, and the continuance of such failure for a period of
twenty (20) days after notice in writing thereof (which notice shall specify the
respect in which Landlord  contends that Tenant has failed to perform or observe
any of such covenants, conditions and agreements) from Landlord to Tenant; or

                  (3) (i) The  filing  of an  application  by Tenant  for,  or a
consent to, the appointment of a receiver, trustee or liquidator of itself or of
all its assets; or

                  (ii)     The  filing  by  Tenant of a  voluntary  petition  in
                           bankruptcy  or the filing of a pleading  in any court
                           of record  admitting in writing its  inability to pay
                           its debts as they come due; or

                  (iii)    The making by Tenant of a general  assignment for the
                           benefit of creditors; or

                  (iv)     The  filing  by Tenant  of an  answer  admitting  the
                           material  allegations  of, or its  consenting  to, or
                           defaulting in answering a petition  against it in any
                           bankruptcy proceeding; or

                  (4) The entry of an order,  judgment or decree by any court of
competent jurisdiction adjudicating Tenant a bankrupt, or appointing a receiver,
trustee, or liquidator of it or all of its assets; or

                  (5) The  abandonment  or vacation of the Premises by Tenant or
the failure of Tenant to carry on its  business at the  Premises for a period of
five (5) consecutive days.

         (b) Landlord may treat any one or more Events of Default  defined above
as a breach of this Lease and  thereupon,  at its option,  Landlord may have and
exercise,  in addition to all other remedies  provided by law or in equity,  any
one or more of the following remedies:

                  (1)      Landlord  may  terminate  this  Lease  and  the  Term
                           created  hereby in which event Landlord may forthwith
                           repossess the Premises and be entitled

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                           to recover  forthwith as damages a sum of money equal
                           to the value of the rent and other sums  provided  to
                           be paid by Tenant due and owing  prior to the date of
                           such  termination,  and any  other  sum of money  and
                           damages due or to become due to Landlord from Tenant;
                           or

                  (2)      Landlord may terminate  Tenant's  right of possession
                           only and may repossess the Premises by forcible entry
                           and detainer  suit, or otherwise,  without  demand or
                           notice of any kind to Tenant  (except as  hereinabove
                           expressly  provided)  and  without  terminating  this
                           Lease,  in which  event  Landlord  may,  but shall be
                           under no  obligation  so to do, relet all or any part
                           of the  Premises for such rent and upon such terms as
                           shall be  satisfactory  to  Landlord  (including  the
                           right to relet the  Premises  for a term  greater  or
                           lesser  than  that  remaining  under the Term of this
                           Lease and the right to relet the  Premises  as a part
                           of  a  larger  area  and  the  right  to  change  the
                           character  or use  made  of the  Premises).  For  the
                           purpose  of such  reletting,  Landlord  may make such
                           repairs,  changes,  alterations or additions in or to
                           the Premises which may be necessary or convenient. If
                           Landlord  shall fail or refuse to relet the Premises,
                           then  Tenant  shall pay to  Landlord as damages a sum
                           equal  to the  amount  of the rent  reserved  in this
                           Lease for such period or periods. If the Premises are
                           relet and a sufficient sum shall not be realized from
                           such  reletting  after  paying  all of the  costs and
                           expenses  of  repairs,   changes,   alterations   and
                           additions and the expense of such reletting,  and the
                           collection of the rent accruing therefrom, to satisfy
                           the rents  and other  charges  above  provided  to be
                           paid,   Tenant   shall   satisfy  and  pay  any  such
                           deficiency  upon demand  therefor  from time to time;
                           and  Tenant  agrees  that  Landlord  may file suit to
                           recover any sums  falling due under the terms of this
                           paragraph  and any other  sums due under  this  Lease
                           from time to time,  and that any suit or  recovery of
                           any  portion  due  Landlord  hereunder  shall  be  no
                           defense  to any  subsequent  action  brought  for any
                           amount not  theretofore  reduced to judgment in favor
                           of Landlord.

         (c) Each right, power and remedy of Landlord provided for in this Lease
shall be cumulative and concurrent and shall be in

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addition to every other right,  power or remedy now or hereafter existing at law
or in equity or by statute or otherwise, and the exercise or commencement of the
exercise  by  Landlord  of any one or more of the  rights,  powers  or  remedies
provided for in this Lease or now or hereafter  existing at law or in equity, or
by statute or otherwise,  shall not preclude the  simultaneous or later exercise
by Landlord of any or all such other rights, powers or remedies.

         21.  Subordination.  (a) This Lease,  at  Landlord's  option,  shall be
subordinate  to any  ground  lease,  mortgage,  deed  of  trust,  or  any  other
hypothecation  for security now or hereafter placed upon the Premises and to any
and  all  advances   made  on  the  security   thereof  and  to  all   renewals,
modifications,  consolidations, replacements and extensions thereof. If Landlord
or any mortgagee,  trustee or ground lessor shall elect to have this Lease prior
to the lien of a  mortgagee,  deed of trust or  ground  lease,  and  shall  give
written  notice  thereof to Tenant,  this  Lease  shall be deemed  prior to such
mortgage,  deed of trust or ground  lease,  whether this Lease is dated prior or
subsequent  to the date of said  mortgage,  deed of trust or ground lease or the
date of recording thereof.

         (b) Tenant shall  execute any  documents  required to  effectuate  such
subordination  or to make this Lease prior to the lien of any mortgage,  deed of
trust or ground lease,  as the case may be  (including,  without  limitation,  a
Subordination,  Non-Disturbance  and  Attornment  Agreement in the standard form
used by  Landlord's  lender),  and  failing  to do so within ten (10) days after
written demand therefor,  does hereby make, constitute,  and irrevocably appoint
Landlord as Tenant's  attorney in fact and in Tenant's name, place and stead, to
do the same. Upon Tenant's  written request to Landlord,  Landlord shall request
that its lender issue to Tenant a  non-disturbance  agreement  on such  lender's
standard  form;  provided,  however,  the  failure  of such  lender  to  issue a
non-disturbance agreement shall in no way affect Tenant's obligations under this
Lease.

         22.  Notices.  Notices  and  demands  required  or  desired to be given
hereunder  shall be given by  personal  delivery or be sent by  certified  mail,
postage prepaid,  return receipt requested,  addressed,  if to Landlord,  at the
address at which the last rental payment was made or required to be made, and if
to Tenant,  addressed to Tenant at the  Premises,  or such other  address as was
last specified respectively by notice by Landlord or Tenant. Notices and demands
shall be deemed to have been given when mailed or, if made by personal delivery,
then upon such delivery.

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         23. Estoppel Certificate by Tenant.  Tenant agrees at any time and from
time to time,  upon not  less  than  five (5)  days  prior  written  request  by
Landlord, to execute, acknowledge and deliver to Landlord a statement in writing
in form and content  requested by Landlord or its lender or potential  purchaser
of the Premises  certifying  that this Lease is  unmodified  and that no default
exists  hereunder  (except as shall be specified and which are known to Tenant),
and also  certifying  the dates to which the rents and other  charges  have been
paid in advance, if any, and such other matters so requested;  it being intended
that any such statement delivered pursuant to this section may be relied upon by
any  prospective  purchaser of the fee or a mortgagee,  trustee,  beneficiary or
assignee of the Premises.

         24.  Mortgagee  Protection.   (a)  If,  in  connection  with  obtaining
financing  for the  Premises or any portion  thereof,  Landlord's  lender  shall
request reasonable modifications to this Lease as a condition to such financing,
Tenant  shall not  unreasonably  withhold,  delay or defer its  consent  to such
modifications,  provided such modifications,  do not materially adversely affect
Tenant's rights under this Lease.

         (b). Tenant shall give to any trust deed or mortgage holder ("Holder"),
by prepaid certified mail, return receipt  requested,  at the same time as it is
given to Landlord,  a copy of any notice of default given to Landlord,  provided
that prior to such  notice  Tenant has been  notified,  in  writing,  (by way of
notice of assignment  of rents and leases,  or otherwise) of the address of such
Holder.  Tenant  further  agrees that if Landlord shall have failed to cure such
default  within the time provided for in this Lease,  then  notwithstanding  any
other terms or conditions  hereof,  the Holder shall have an  additional  thirty
(30) days after the  expiration of such period,  or after receipt of such notice
from  Tenant (if such  notice to the Holder is  required  by this  Section  38),
whichever  shall later  occur,  within  which to cure such  default,  or if such
default cannot be cured within that time,  then such  additional  time as may be
necessary  if within  such  thirty (30) days,  any Holder has  commenced  and is
diligently pursuing the remedies necessary to cure such default (including,  but
not limited to, commencement of foreclosure proceedings, if necessary, to effect
such cure), in which event this Lease shall not be terminated.

         25. Joint and Several  Obligation.  In the event more than one party or
person is the "Tenant" under this Lease,  the obligation to pay rent and perform
and observe all of the other covenants,  conditions and provisions of this Lease
shall be deemed to be the joint and several obligation of all of said parties.

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         26.  Captions and Headings.  The captions and headings  throughout this
Lease are for  convenience  and reference  only,  and shall in no way be held or
deemed to define, limit or construe any of the provisions of this Lease.

         27. Entire  Agreement.  This Lease  supersedes  any and all  agreements
between the parties  hereto  regarding  the  Premises  and sets forth the entire
agreement  between  the  parties  hereto  with  respect to the same and shall be
binding upon and inure to the benefit of the parties hereto and their respective
legal representatives, heirs, successors and assigns.

         28.  Amendments.  None of the  provisions  of this  Lease  shall in any
manner be altered,  waived,  modified,  changed or abandoned except by a written
instrument executed by each of the parties hereto.

         29. No Rent Deduction or Set Off. Tenant's covenant to pay Base Rent is
and shall be independent of each and every other covenant of this Lease.  Tenant
agrees that any claim by Tenant against Landlord shall not be deducted from Base
Rent nor set off against any claim for Base Rent in any action.

         30.  Rent After  Notice or Suit.  It is further  agreed by the  parties
hereto that after the service of notice,  or the commencement of a suit or after
final judgment for possession of the Premises,  Landlord may receive and collect
any rent  due,  and the  payment  of said rent  shall  not waive or affect  said
notice, suit, or judgment.

         31. Plurals;  Successors.  The words  "Landlord" and "Tenant"  wherever
herein used shall be construed to mean  "Landlords"  and  "Tenants" in the event
more than one person or entity  constitutes  either party to this Lease; and all
the covenants and agreements  contained  herein shall be binding upon, and inure
to the benefit of, their respective successors, heirs, executors, administrators
and assigns. In the event Landlord or any successor owner of the Premises or the
Project  shall  convey or  otherwise  dispose of all or any  portion  thereof to
another  person or  entity,  such other  person or entity  shall in its own name
thereupon be and become the  "Landlord"  hereunder and shall assume fully and be
liable for all  liabilities  and  obligations  of this Lease to be  performed by
Landlord  that  first  arise  after the date of  conveyance,  and such  original
Landlord or successor  owner shall,  from and after the date of  conveyance,  be
free of all liabilities and obligations not then incurred.

         32. Landlord's Lien.  Landlord shall have a first lien upon any and all
rents from permitted subtenants or assignees of

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Tenant,  if any,  upon the  interest of Tenant  under this  Lease,  and upon all
personal  property and fixtures of Tenant  located in or upon the  Premises,  to
secure the payment of all rent and other obligations due under this Lease.

         33.  Rules  and  Regulations.   Tenant  shall  observe  all  rules  and
regulations  reasonably  promulgated  by  Landlord  from  time to time,  and all
changes thereto upon notice thereof.

         34.  Landlord's  Expenses.   Tenant  shall  pay  on  demand  Landlord's
expenses,  including  reasonable  attorney's fees,  expenses and  administrative
hearing and court costs incurred  either directly or indirectly in enforcing any
obligation  of  Tenant  under  this  Lease,  in  curing  any  default  by Tenant
hereunder, in connection with appearing, defending or otherwise participating in
any  action or  proceeding  arising  from the  filing,  imposition,  contesting,
discharging  or  satisfaction  of any lien or claim for lien,  in  defending  or
otherwise  participating in any legal  proceedings  initiated by or on behalf of
Tenant wherein Landlord is not adjudicated to be in default under this Lease, or
in connection with any investigation or review of any conditions or documents in
the event Tenant requests Landlord's approval or consent to any action of Tenant
which may be desired by Tenant or required of Tenant hereunder.

         35: Ownership, Authority and Quiet Enjoyment.  Notwithstanding anything
to the contrary set forth in this Lease,  Landlord  represents and warrants that
it is the true and  lawful  owner of the  Building,  the  Premises  and the real
property upon which the Building is located, that Landlord is lawfully empowered
to enter  into  this  Lease  and that so long as  Tenant  shall  perform  all of
Tenant's covenants and obligations hereunder,  Tenant shall have and enjoy quiet
and peaceable  possession of the Premises from and after Landlord's  delivery of
the Premises to Tenant and until the end of the Lease Term.

         36:  Ownership  of  Alterations.  Tenant may  remove  any  alterations,
improvements,  signs, fixtures or equipment that it installs or places in, on or
about  the  Premises  from  time  to  time.  Tenant  shall  be  entitled  to all
depreciation,  amortization and other tax benefits with respect thereto.  Tenant
must repair any damage to the Premises caused by that removal. By written notice
to Tenant at least either sixty (60) days before expiration of the Lease Term or
fifteen  (15) days after any earlier  termination  of this Lease,  Landlord  may
require Tenant, at Tenant's sole expense,  to remove any alterations that cannot
be used for ordinary  general office  purposes and restore the Premises to their
configuration  and condition  before the alterations  were made (unless Landlord
previously notified Tenant

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that such  removal  would not be  required).  If Tenant  fails to complete  that
restoration  before  expiration  of the Lease  Term or,  in the case of  earlier
termination,  within  fifteen  (15) days  after  written  notice  from  Landlord
requesting  the  restoration,  Landlord  may do so and  charge  the  cost of the
restoration to Tenant. On the written request of Tenant, Landlord shall promptly
inform Tenant in writing whether Landlord  considers a particular  alteration or
proposed alteration to be usable for ordinary general office purposes.

         37: Landlord  Indemnity.  Notwithstanding  anything to the contrary set
forth in this  Lease,  Landlord  shall  (i) be  liable  for any and all  injury,
interference,  cost, expense, loss and/or damage caused to Tenant and/or any one
of  Tenant's  agents,  employees,  representatives  or  invitees  as a result of
Landlord's  (a)  negligent  acts or  omissions,  (b) willful  misconduct  or (c)
repairs,  restorations or maintenance  which materially and adversely  interfere
with  Tenant's use of the Premises and (ii)  indemnify and hold harmless each of
Tenant and/or any one of Tenant's agents, employees, representatives or invitees
for all such injury, interference, cost, expense, loss and/or damage.

         38. Hazardous  Material.  Notwithstanding  anything to the contrary set
forth in this Lease,  Landlord  warrants and  represents  to Tenant that, to the
best  of  Landlord's  actual  knowledge  without  independent  investigation  or
inquiry,  as of the effective  date of the Lease:

         (a)  there  has been no  release  onto or  under  the  Premises  of any
Hazardous Material;

         (b) the Premises contain no PCBs, PCB-contaminated electrical equipment
or asbestos- containing materials; and

         (c)  Landlord  has  received no notice of any  inquiry,  investigation,
proceeding  or claim by any  government  agency or other  person  regarding  the
presence of Hazardous Material on, under or about the Premises.

Notwithstanding anything to the contrary set forth in this Lease, if, during the
Lease Term (including any  extensions),  either Landlord or Tenant becomes aware
of (a) any actual or threatened  release of any Hazardous  Material on, under or
about the Premises or (b) any inquiry, investigation1 proceeding or claim by any
government  agency or other person regarding the presence of Hazardous  Material
on, under or about the  Premises,  that party shall give the other party written
notice of the release or investigation within five (5) days after learning of it
and shall  simultaneously  furnish  to the  other  party  copies of any  claims,
notices of violation,  reports or other writings received by the party providing
notice that concerns the release or investigation.

Lease for 2575 N. Dragoon, Tucson, AZ
Page 17

<PAGE>

         39. Hazardous  Material.  Notwithstanding  anything to the contrary set
forth in this Lease, Landlord and Tenant shall, at that party's sole expense and
with counsel  reasonably  acceptable to the other party,  indemnify,  defend and
hold  harmless the other party and the other  party's  shareholders,  directors,
officers, employees, partners, affiliates, agents and successors with respect to
all  losses  arising  out of or  resulting  from the  release  of any  Hazardous
Material  in or  about  the  Premises  by that  party  or that  party's  agents,
assignees,  sublessees,  contractors or invitees. This indemnification  includes
all  losses,  costs of  characterization,  costs of removal,  remedial  actions,
repairs, liabilities,  obligations, penalties, fines, claims, actions (including
remedial  or  enforcement  actions of any kind and  administrative  or  judicial
proceedings, orders or judgments), damages (including consequential and punitive
damages) and costs (including attorney, consultant and expert fees and expenses)
resulting from the release. This indemnification shall survive the expiration or
termination of this Lease.

         40: Tenant Repairs.

Subject to anything else to the contrary set forth in this Lease,  Tenant shall,
at  Tenant's  sole  expense,  repair and  maintain  in good order and  condition
(reasonable  wear and  tear  excepted):

         (a) the  nonstructural  portions of the Premises but including  parking
lot surfaces;

         (b) all  portions of the  Premises,  including  those  listed under the
responsibility  of the  Landlord  that were  damaged by the  Tenant or  Tenant's
employee, agent, or visitor.

         (c) all Premises Systems (as below defined).

"Premises Systems" means all systems and equipment that serve only the Premises.

         41: Landlord Repairs.

Subject to  anything  else to the  contrary  set forth in this  Lease,  Landlord
shall,  at  Landlord's  sole  expense,  repair  and  maintain  in good order and
condition (reasonably wear and tear excepted):

         (a) the structural  portions of the Premises  except as those described
in Paragraph 40(b);

         (c) the exterior  portions of the real  property  and the  improvements
collectively  constituting  the Premises  except as those described in Paragraph
40.

Lease for 2575 N. Dragoon, Tucson, AZ
Page 18

<PAGE>

         42.  Governing  Law. The laws of the State of Arizona  shall govern and
control the validity, construction, performance and enforcement of this Lease.

         43. Severability.  Wherever possible each provision of this Lease shall
be interpreted in such manner as to be effective and valid under applicable law.
In the event any  provision of this Lease shall be prohibited by or held invalid
or  unenforceable  under  applicable law, such provision shall be ineffective to
the  extent  of  such  prohibition,  invalidity  or  unenforceability,   without
affecting  the remainder of such  provision or the remaining  provisions of this
Lease.

         44. Official  Notice.  Tenant shall promptly deliver to Landlord copies
of any and all  notices  received  from any  governmental  authority  or  agency
relating to or affecting the Premises.

         45.  Termination  of Prior  Leases.  Any and all  prior  leases  by and
between  Landlord  and  Tenant  (or any  predecessor  thereof)  relating  to the
Premises are hereby terminated and are no longer of any force or effect.

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

"LANDLORD"                              "TENANT"

/s/ Michael A. Edwards
----------------------------            Adept Technology, Inc. a
Michael A. Edwards                      California corporation

/s/ Diane L. Edwards                    By: /s/ Michael W. Overby
----------------------------                -----------------------
Diane L. Edwards
                                        Title: CFO
                                               --------------------

Lease for 2575 N. Dragoon, Tucson, AZ
Page 19

<PAGE>

                                   EXHIBIT A

The premises is a free-standing building and grounds located at 2575 N. Dragoon,
Tucson, Pima County, Arizona with a legal description of: LOT 9 OF CENTER POINTE
COMMERCE  CENTER  ACCORDING  TO THE MAP  RECORDED  IN BOOK 49 OF MAPS,  PAGE 84,
RECORDS OF PIMA COUNTY, ARIZONA

Lease for 2575 N. Dragoon, Tucson, AZ
Page 20

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