Document:

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                                                                   EXHIBIT 10.25

                            COMMERCIAL PROPERTY LEASE

                                     Between

                           Hollywood Media Center, LLC
                                   as Landlord

                                       and

                             Hollywood Software Inc.
                                    as Tenant

                                 January 1, 2000

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                            COMMERCIAL PROPERTY LEASE

         This Commercial Property Lease (this "Lease"), dated January 1, 2000,
is made by and between HOLLYWOOD MEDIA CENTER, LLC, a California limited
liability company ("Landlord"), and Hollywood Software Inc. (jointly known as
"Tenant").

                                   ARTICLE 1.
                             SUMMARY OF BASIC TERMS
                             ----------------------

         As used in this Lease, the following terms shall have the meanings set
forth below, subject to the qualifications, adjustments and exceptions set forth
elsewhere in this Lease;

         (a)      Premises: The "Premises" consists of 2nd floor space of
Building known as 1604 N. Cahuenga (approximately 2115 square feet) including
suites 113, 114, 115, 116, 119, 120, 121.

         (b)      Building: All building improvements and related structures now
existing and hereafter constructed and installed on the Land and commonly known
as 1604 N. Cahuenga, Los Angeles, California.

         (c)      Land: The parcel(s) of land upon which the Building is
located.

         (d)      Lease Term: Four (4) Years.

         (e)      Commencement Date: January 1, 2000.

         (f)      Expiration Date: December 31, 2003, at the hour of 11:59 p.m.
on said date.

         (g)      Initial Monthly Basic Rent: $2,355 per month

         (h)      Tenant's Share: 40% second floor common area.

         (i)      Permitted Use: Office

         (j)      Tenant's Share of Monthly Operating Expense Base:

         (k)      Landlord's Address for Notices:

                  Hollywood Media Center, LLC
                  Attn. Jose Malagon
                  1604 N. Cahuenga Blvd., Suite 100
                  Hollywood, California 90028

         (1)      Tenant's Address for Notices:

                  Jim Miller,
                  1604 N. Cahuenga, Suite 115
                  Hollywood, CA 90028

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                                   ARTICLE 2.

                                 DEMISE AND TERM
                                 ---------------

         2.1.     Premises: Common Areas. Landlord hereby leases the Premises to
Tenant and Tenant hereby leases the Premises from Landlord, subject to all the
terms, covenants and conditions of this Lease. Tenant shall also have the
non-exclusive right to use, in common with others entitled to such use, outside
area on north side of building (collectively, the "Common Areas") for trash
container and emergency exits.

         2.2.     Term. The Premises are leased for the Lease Term, which shall
commence on the Commencement Date and shall expire on the Expiration Date,
unless sooner terminated pursuant to the provisions of this Lease.

                                   ARTICLE 3.

                                      RENT
                                      ----

         3.1.     Monthly Basic Rent. Tenant shall pay monthly rent ("Monthly
Basic Rent") in advance on the first day of each mouth during the Lease Term,
without offset, deduction, or abatement (except as herein otherwise expressly
provided) in addition to all other sums due and payable by Tenant hereunder.

         3.2.     Adjustments to Monthly Basic Rent. Subject to the provisions
of Section 3.1, the Monthly Basic Rent shall be increased as of the first day of
the 2nd year and each successive year thereafter (individually referred to as a
"CPI Increase Date." and collectively as the "CPI Increase Dates") beginning on
the first day of the fourth year of the Lease Term by the method described in
this Section 3.2. On each of the CPI Increase Dates, Monthly Basic Rent shall be
increased over the amount payable in the immediately preceding calendar year
equal to the percentage increase in the CPI for the immediately preceding twelve
month period. In no event shall any increase pursuant to this Section 3.2 be
less than two percent (2%) or more than five percent (5%) over the amount
payable during the immediately preceding calendar year even if the CPI increase
for any relevant period is greater then five percent (5%) or less than two
percent (2%) and even if the CPI for any relevant period should decrease. As
used herein, the CPI shall be the Consumer Price Index for all Urban Consumers
(all items) for the Los Angeles/Anaheim/Riverside Statistical Area, 1982-1984 =
100, as reported by the United States Department of Labor, Bureau of Labor
Statistics ("Bureau"). Landlord shall endeavor to calculate and give Tenant
written notice (a "Rent Increase Notice") of the increase in Monthly Basic Rent
prior to the CPI Increase Date, but Landlord's failure to do so shall not
relieve Tenant of its obligation to pay the increased Monthly Basic Rent as of
the CPI Increase Date. If Landlord fails to give a Rent Increase Notice to
Tenant prior to an CP1 Increase Date, Tenant shall pay the Monthly Basic Rent
then in effect until Landlord delivers a Rent Increase Notice to Tenant. Upon
Landlord's delivery of such Rent Increase Notice, Tenant shall pay the
difference between the total Monthly Basic Rent which would have been payable
from the relevant CPI Increase Date had such Rent Increase Notice been given and
the actual amount of Monthly Basic Rent been paid up to the date such Rent
Increase Notice is given. Should the Bureau discontinue the publication of the
CPI, or publish the same less frequently, or alter the same in some manner, then
Landlord in its discretion shall adopt as the CPI hereunder the substitute index
or procedure which reasonably reflects and monitors consumer prices for the
geographical area in which the Premises are located.

         3.3.     Additional Rent: Rent. The term "Additional Rent" means
Tenant's Share (as defined in Section 1(h)) of Operating Expenses and all other
sums of money or charges (whether or not designated as Additional

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Rent) required to be paid by Tenant to Landlord under this Lease, other than
Monthly Basic Rent. Monthly Basic Rent and Additional Rent are sometimes
collectively referred to herein as "Rent."

         3.4.     Payment of Rent. Tenant shall pay all Rent due under this
Lease promptly when the same is due, without offset, deduction or prior demand,
in lawful money of the United States of America. All Rent shall be payable to
Landlord at Landlord's address set forth herein or at such other address as
Landlord may from time to time designate in writing.

         3.5.     Late Charges. Tenant acknowledges that late payment by Tenant
to Landlord of Monthly Basic Rent and other sums due hereunder will cause
Landlord to incur costs not contemplated by this Lease, the exact amount of
which will be extremely difficult to ascertain. Such costs include, but are not
limited to, late charges which may be imposed upon Landlord by the terms of any
mortgage or deed of trust covering the Building. Accordingly, if any installment
of Monthly Basic Rent, or Additional Rent or any other sum due hereunder is not
received by Landlord within ten (10) days after the same is due, then, without
any requirement for notice to Tenant, Tenant shall pay to Landlord a late charge
equal to ten percent (10%) of such overdue amount. The parties agree, that such
late charge represents a fair and reasonable estimate of the costs Landlord will
incur by reason of late payment by Tenant. Acceptance of such late charge by
Landlord shall in no event constitute a waiver of Tenant's default with respect
to such overdue amount, nor prevent Landlord from exercising any of its rights
and remedies granted hereunder. In the event that a late charge is payable
hereunder for three (3) or more payments due in any single calendar year, then
notwithstanding Section 3.1 or any other provision of this Lease to the
contrary, Monthly Basic Rent shall, at Landlord's option, thereafter become due
and payable quarterly in advance.

                                   ARTICLE 4.

                                SECURITY DEPOSIT
                                ----------------

No security deposit was required.

                                   ARTICLE 5.

                               OPERATING EXPENSES
                               ------------------

         4.1.     Taxes.

         (a)      The term "Rental Taxes" means any commercial rental tax or
gross receipts tax assessed upon or measured by such Rent.

         (b)      The term "Real Estate Taxes" means: (i) any fee, license fee,
license tax, business license fee, levy, charge, assessment, penalty or tax
imposed by any taxing authority against the Building and/or the Land; (ii) any
tax on Landlord's right to receive or the receipt of rent or income from the
Building and/or the Land or against Landlord's business of leasing the Building
and/or the Land; (iii) any tax or charge for fire protection, streets,
sidewalks, road maintenance, refuse or other services provided to the Building
or to the Land by any governmental agency; (iv) any tax imposed upon this
transaction or based upon a reassessment of the Building or Land due to a change
in ownership; and (v) any charge or fee replacing any tax previously included
within the definition of Real Estate Taxes. "Real Estate Taxes" does not,
however, include Landlord's federal or state net income, franchise, inheritance
or estate taxes or any Rental Tax.

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         4.2.     Operating Expenses.

                  (a)      Tenant shall pay to Landlord Tenant's Share of all
Operating Expenses (defined in Section 5.2(b) below) for each calendar year, or
part thereof, during the Lease Term (subject to any waiver of Additional Rent as
expressly provided in this Lease). Tenant's Share of Operating Expenses per
month for the period ending December 31, 2001, shall not exceed Tenant's Share
of Monthly Operating Expense Base (Section 1(j)). On or before the beginning of
each calendar year during the Lease Term, Landlord shall endeavor to submit to
Tenant a written estimate of Tenant's Share of Operating Expenses for the
upcoming calendar year, Tenant shall pay Tenant's Share of Operating Expenses
for each calendar year or partial calendar year in monthly installments, based
upon Landlord's estimate, on the first (1st) day of each calendar month. Within
ninety (90) days after the end of each calendar year or partial calendar year,
Landlord shall furnish Tenant with a statement of the actual amount of Tenant's
Share of Operating Expenses for such period (the "Year-End Statement"), but
Landlord's failure to timely provide such statement shall not constitute a
waiver of Landlord's right to submit such statement subsequent to the end of
such ninety (90) day period and shall not affect Landlord's right to collect or
Tenant's obligation to pay any amounts due thereunder. Tenant shall have the
right, at its expense, to have a certified public accountant review Landlord's
books and records relating to the Operating Expenses for such period at
Landlord's office during normal business hours and after reasonable notice to
Landlord and shall have sixty (60) days after delivery of the Year-End Statement
to object in writing to the accuracy of the Year-End Statement. If Tenant does
not object within such sixty (60) day period, the Year-End Statement shall be
conclusive and binding on Tenant. Objections by Tenant shall not excuse or abate
Tenant's obligations to make payments required under this Section 5.2(a) pending
the resolution of Tenant's objections. If the total amount paid by Tenant under
this Section 5.2(a) for any calendar year is less than the actual amount due
from Tenant for such year as shown on the Year-End Statement, Tenant shall pay
the difference to Landlord within fifteen (15) days after the furnishing of each
such statement. If the total amount paid by Tenant hereunder for any such
calendar year exceeds the actual amount due from Tenant for such calendar year,
such excess shall be credited against the next installment due from Tenant to
Landlord under this Section 5.2.(a).

                  (b)      "Operating Expenses" shall include all Rental Taxes,
Real Estate Taxes, and all costs and expenses of operating, maintaining, owning
and repairing the Building and the Land, including, but not limited to: water
and sewer charges; insurance premiums for all insurance policies deemed
necessary by Landlord; deductible amounts under insurance policies; wages of
Landlord's employees engaged in the operation, maintenance or repair of the
Building or the Land, including all customary employee benefits, worker's
compensation and payroll taxes; legal, accounting and other consulting fees; the
cost of heating, ventilation, air conditioning (collectively, "HVAC"),
electricity, water and other services and utilities; security services, all
costs and expenses incurred by Landlord, including interest on any funds
borrowed by Landlord to pay such costs, to pay the cost of any capital
improvements and replacements to all or any portion of the Building and/or the
Land, appropriately amortized over the useful life of such improvements;
supplies, materials, equipment and tools; and maintenance and repair of all
landscaped and common areas; and management fees, or, if no managing agent is
retained for the Building, a sum for management and administrative expenses
equal to seven percent (7%) of all Operating Expenses. Operating Expenses shall
not include depreciation on the existing Building and improvements or on the
equipment therein, ground lease rent, loan payments (except as expressly
provided above), executive salaries, real estate brokers' commissions, legal
fees in connection with lease negotiations or tenant disputes, or utilities or
other services which Tenant or any other tenant of the Building pays for
directly.

                                   ARTICLE 6.

                      CONDITION OF PREMISES; TENANT'S WORK
                      -------------------------------------

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         4.1.     Condition of Premises. Tenant is fully familiar with the
condition of the Premises and hereby accepts the Premises in an "AS-IS"
condition, without any representation or warranty or any kind, express or
implied, by Landlord and, except as provided in Section 6.2 without any
obligation on the part of the Landlord to alter or improve the Premises or any
portion thereof.

                                   ARTICLE 7.

                        ALTERATIONS AND ADDITIONS; LIENS
                        --------------------------------

         4.1.     Landlord's Consent.

                  (a)      Tenant shall not make or permit to be made any
alterations, additions or improvements (singularly and collectively
"Alterations") to the Building or the Premises or any part thereof without the
prior written consent of Landlord in each instance, except that Landlord's
consent shall not be required for minor decorations of the Premises such as wall
coverings and wall hangings, built-in cabinetry, display cases and movable
partitions, nor for the installation of furnishings, fixtures and equipment.
Tenant understands that building is registered with historic designation and
alterations to the building will need the additional consent and approval from
the designated historic societies.

                  (b)      Landlord will not unreasonably withhold or delay its
consent to Tenant's written request to make any Alterations, provided and upon
the condition that all of the following conditions shall be satisfied: (i) the
Alterations are nonstructural and do not impair the strength of the Building or
any part thereof, (ii) the Alterations are to the interior of the Premises and
do not affect any part of the Building outside the Premises; (iii) the
Alterations do not affect the proper functioning of the Building systems; (iv)
Landlord shall have approved the final plans and specifications for the
Alterations and all contractors who will perform them, (v) Tenant pays all of
Landlord's actual costs in reviewing Tenant's plans or otherwise incurred by
Landlord in connection with the Alterations, and (vi) before proceeding with any
Alteration which will cost more than $2,000 (exclusive of the costs of items
constituting Tenant Property, as defined in Section 7.3), Tenant obtains and
delivers to Landlord, at Landlord's option, either: (x) a performance bond and a
labor and materials payment bond for the benefit of Landlord, issued by a
corporate surety licensed to do business in California, each in an amount equal
to one hundred twenty five percent (125%) of the estimated cost of the
Alterations and in form satisfactory to Landlord, or (y) such other security as
shall be reasonably satisfactory to Landlord. Unless all of the foregoing
conditions are satisfied, Landlord shall have the right to withhold its consent
to the Alterations in Landlord's sole and absolute discretion.

         4.2.     Additional Requirements.

                  (a)      Not less than ten (10) days nor more than twenty (20)
days prior to commencement of any Alterations, Tenant shall notify Landlord of
the work commencement date so that Landlord may post notices of
nonresponsibility about the Premises. All Alterations must comply with all
Applicable Laws (as defined in Section 9.3 below) and governmental requirements,
the other terms of this Lease, and the final plans and specifications approved
by Landlord. Tenant, at its expense, shall obtain all necessary permits and
certificates for the commencement performance of Alterations and for final
approval thereof upon completion, and shall cause the Alterations to be
performed in compliance therewith and with all applicable insurance
requirements, and in a good, first-class and workmanlike manner. Landlord's
review and approval of Tenant's plans and specifications shall be solely for
Landlord's benefit. Landlord shall have no duty toward Tenant, nor shall
Landlord be deemed to have made any representation or warranty to Tenant, with
respect to the safety, adequacy, correctness, efficiency or compliance with
Applicable Laws of the design of the Alterations, the plans and specifications
therefor, or any other matter regarding the Alterations.

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                  (b)      Alterations shall be performed so as not to interfere
with any other tenant of the Building, cause labor disharmony therein, or delay
or impose any additional expense on Landlord in the construction, maintenance
repair or operation of the Building. Throughout the performance of the
Alterations, Tenant shall carry, or cause its contractor to carry, workers
compensation insurance and liability insurance in amounts reasonably required by
Landlord. Tenant shall furnish Landlord with satisfactory evidence that such
insurance is in effect at or before the commencement of the Alterations and,
upon request, at reasonable intervals thereafter until completion of the
Alterations.

         4.3.     Ownership and Surrender of Alterations. All Alterations,
including but not limited to, wall coverings, paneling and built-in cabinetry
shall become a part of the realty and belong to Landlord and shall be
surrendered with the Premises, but all movable furniture, equipment and trade
fixtures ("Tenant's Property") shall remain the property of Tenant and may,
provided Tenant repairs any damage to the Premises or the Building caused
thereby, be removed by Tenant prior to the expiration or sooner termination of
the Lease Term. Notwithstanding the previous sentence, upon the expiration or
sooner termination of the Lease Term, if Landlord shall make a written request
that Tenant remove some or all of the Alterations made by Tenant, Tenant shall,
at its expense, immediately remove the Alterations requested by Landlord to be
removed and repair any damage to the Premises or the Building caused by such
removal.

         4.4.     Liens. Tenant shall pay when due all claims for labor,
materials and services furnished by or at the request of Tenant or Tenant's
Affiliates (as defined in Section 10.8 below). Tenant shall keep the Premises,
the Building and the Land free from all liens, security interests and
encumbrances (including, without limitation, all mechanics' liens and stop
notices) created as a result of or arising in connection with the Alterations or
any other labor, services or materials provided for or at the request of Tenant.
Said liens, security interests and encumbrances singularly and collectively
shall be referred to herein as "Liens." Tenant shall not use materials in
connection with the Alterations that are subject to any Liens. If Tenant fails
to keep the Premises, the Building and the Land free from Liens, then, in
addition to any other rights and remedies available to Landlord, Landlord may
take any action necessary to discharge such liens, including, but not limited
to, payment to the claimant on whose behalf the Lien was filed. Tenant shall
indemnify Landlord for, and hold Landlord harmless from and against, all
Liabilities (as defined in Section 10.8. below) so incurred by Landlord, without
regard to any defense or offset that Tenant may have had against the claimant.
Neither Landlord's curative action nor the reimbursement of Landlord by Tenant
shall cure Tenant's default in failing to keep the Premises, the Building and
the Land free from Liens.

                                   ARTICLE 8.

                             MAINTENANCE OF PREMISES
                             -----------------------

         4.1.     Landlord's Maintenance.

                  (a)      Subject to Article 14. and Article 15. hereof and to
Tenant's payment obligations under Section 5.2(a) above, Landlord shall repair
and maintain the Common Areas and the structural portions of the Building and
the Land, including, but not limited to, the structural portions of the roof,
the foundations and exterior load-bearing walls. However, if the repair or
maintenance is caused in whole or in part by the act, neglect, fault or omission
of Tenant or Tenant's Affiliates, or by Tenant's Alterations, Tenant shall
immediately pay the entire cost of such repair or maintenance and shall
indemnify Landlord for and hold Landlord harmless from and against all
liabilities incurred by Landlord in connection therewith. Landlord shall have a
reasonable time after written notice from Tenant to perform necessary repairs or
maintenance. Tenant waives all rights to terminate this Lease due to a condition
of the Premises or the Building or granted under law to make repairs at
Landlord's expense under Sections 1941 and 1942 of the California Civil Code or
under any similar laws now or

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hereafter in effect. Except as otherwise specifically provided in Article 14.
and Article 15. hereof, Tenant shall not be entitled to any abatement of rent,
and Landlord shall not be liable for any injury to or interference with Tenant's
business arising from Landlord's performance of its repair obligations pursuant
to this Section 8.1(a).

                  (b)      Landlord may at any time temporarily close all
entrances, pedestrian sidewalks, loading docks, delivery areas or landscaped
areas to make repairs or changes or to prevent the acquisition of public rights
in such areas; and may do such other acts in and to such areas as in its
judgment may be desirable to improve the convenience thereof.

                  (c)      Landlord may cause the Premises to be inspected and
treated from time to time and at such intervals as Landlord may require for pest
control and extermination. All costs of such pest control and extermination
shall be paid by Tenant.

         4.2.     Tenant's Obligations for Maintenance: Condition Upon
Surrender.

                  (a)      Except as provided in Section 8.1. of this Lease,
Tenant shall, at its sole cost and expense, keep and maintain in good condition
and repair (including replacement of parts and equipment if necessary) the
Premises and every part thereof and any and all appurtenances thereto wherever
located, including, but without limitation, the exterior and interior portion of
all doors, door frames, door checks, windows, window frames, window moldings,
plate glass, storefront, all plumbing and sewage facilities within the Premises,
including free flow up to the main sewer line, all grease traps, vents, hoods,
fixtures, heating and air conditioning and electrical systems, sprinkler
systems, interior and non-load-bearing walls, floors and ceilings. The Premises
shall be mainatined in a manner comparable to that of other restaurants within
the Hollywood, California area. If Tenant refuses or neglects to commence and to
complete repairs promptly and adequately, as set forth herein, Landlord may, but
shall not be required to, make and complete said repairs and Tenant shall
reimburse Landlord for the cost thereof upon demand. Landlord shall have the
right, without liability, to enter the Premises for the purposes of making such
repairs upon Tenant's failure to do so. Tenant shall contract for, in its own
name, and shall pay for a qualified service contractor to inspect, adjust, clean
and repair the HVAC equipment at the Premises on a quarterly basis, including
changing filters as recommended, and shall pay for a qualified service
contractor to clean all grease traps, vents and hoods on a monthly basis. Tenant
shall deliver to Landlord a copy of Tenant's current service contracts from time
to time during the Lease Term.

                  (b)      Upon the expiration of this Lease, Tenant shall
surrender the Premises in good condition and repair, free of debris and in good
operating order, ordinary wear and tear excepted. Ordinary wear and tear shall
not include any damage or deterioration that would have been prevented by good
maintenance practices or by Tenant performing all of its obligations under this
Lease. The obligations of Tenant shall include the repair of any damage
occasioned by the installation, maintenance or removal of Tenant's trade
fixtures, furnishings and equipment. If Tenant shall abandon, vacate or
surrender the Premises, or be dispossessed by process of law or otherwise, any
personal property left on the Premises shall be deemed, at the option of
Landlord, to have been abandoned by Tenant.

         4.3.     Care of Premises. Tenant shall keep the Premises (including
the service areas adjacent to the Premises, display windows and signs) orderly,
neat, safe and clean and free from rubbish, dirt and vermin at all times and
shall store all trash and garbage within the Premises in appropriate
receptacles. No such trash or garbage shall be stored in the Premises for in
excess of twenty-four (24) hours. If Landlord provides any trash receptacles or
services or facilities for trash pick up, then Tenant shall be obligated to use
the same in common with all other tenants in the Building and shall pay Tenant's
Share of the actual cost thereof as an Operating

                                      -8-

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Expense. Tenant shall not place any of its property, equipment or supplies in
the Common Area nor shall Tenant cause any refuse, waste or other debris to be
stored, placed upon, or disposed of within the Common Area. If Tenant violates
the preceding sentence, Landlord may deem any such property, equipment or
supplies abandonment and may dispose of the same at Tenant's expense. Tenant
shall keep closed, when not being used for ingress or egress, all doors leading
to the exterior of the Building. Should Tenant breach any of its obligations
under this Section 8.3 on more than three (3) occasions during the Lease Term,
Landlord may, in addition to any other remedies, perform the requisite cleaning
or maintenance on behalf of Tenant and at Tenant's sole expense, in addition to
Landlord's rights under Article 4 hereunder. Tenant shall reimburse Landlord for
all costs incurred by it pursuant to the preceding sentence within five (5) days
of Landlord's demand. Tenant is responsible for maintaining outdoor patio space
including pruning, trimming and watering.

                                   ARTICLE 9.

                 CONDUCT OF BUSINESS BY TENANT; LIQUOR LICENSE
                 ---------------------------------------------

         4.1.     Use of Premises. Tenant shall use and occupy the Premises
during the Lease Term solely for the purposes described in Article I above, and
for no other purpose or purposes without the prior written consent of Landlord,
which may be granted or withheld in Landlord's sole and absolute discretion. If
any governmental license or permit shall be required for the proper and lawful
conduct of Tenant's business or other activity carried on in the Premises
including, without limitation, any and all liquor licenses ("Liquor Licenses")
required to be maintained by Tenant, or if failure to procure such license or
permit might or would, in any way, affect Landlord, Landlord's Affiliates, the
Building or the Premises, then Tenant, at Tenant's expense, shall duly procure
and thereafter maintain such license or permit and submit the same for
inspection by Landlord. Tenant, at Tenant's expense, shall, at all times, comply
with the requirements of each such license or permit.

                  (a)      Tenant shall, within ten (10) days following the date
this Lease is executed, complete

         4.2.     Operation of Business.  Tenant shall continuously conduct its
business at all times in a lawful, and reputable manner and in good faith,
consistent with the operation of sit down restaurants in the Hollywood area, and
shall not do any act tending to injure the reputation of Landlord or the
Building. Tenant shall use its best efforts to prevent its employees from
smoking or loitering in any part of the Building including the restrooms
therein.

         4.3.     Compliance with Laws. Tenant shall promptly comply with all
federal, state, county, city, municipal, and local laws, statutes, rules,
regulations, ordinances and codes now or hereafter applicable to the Premises or
to the use, cleanliness, safety and occupancy of the Premises including, without
limitation, laws regulating the smoking of tobacco, the provisions of the
Americans With Disabilities Act and all directions, rules and regulations of any
health officers, fire marshals, building inspectors, or other officials of the
governmental agencies having jurisdiction over the Premises (collectively,
"Applicable Laws").

         4.4.     Hazardous Substances.

                  (a)      Tenant shall not engage in any activity in or about
the Premises or the Building or any portion thereof used by Tenant which
constitutes a Reportable Use (as hereinafter defined) of Hazardous Substances
without the express prior written consent of Landlord, which consent Landlord
may withhold or at any time revoke, in its sole and absolute discretion.
"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 (iii) the presence
in, on or about the Premises of

                                      -9-
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a Hazardous Substance with respect to which any Applicable Law requires that a
notice be given to persons entering or occupying the Premises, the Building or
neighboring properties. Notwithstanding the foregoing, Tenant may, without
Landlord's prior consent, but upon notice to Landlord and in compliance with all
Applicable Laws, use any ordinary and customary materials reasonably required to
be used by Tenant in the normal course of its permitted business at the
Premises, so long as such use is not a Reportable Use and does not expose the
Premises, the Building or neighboring properties to any meaningful risk of
contamination or damage or expose Landlord to any liability therefor. In
addition, Landlord may (but without any obligation to do so) condition its
consent to any Reportable Use of any Hazardous Substance by Tenant upon Tenant's
giving Landlord such additional assurances as Landlord, in its reasonable
discretion, deems necessary to protect itself, the public, the Premises, the
Building and the environment against damage, contamination or injury and/or
liability therefor, including but not limited to the installation (and, at
Landlord's option, removal on or before the expiration or earlier termination of
this Lease) of reasonably necessary protective modifications to the Premises
and/or the deposit of an additional Security Deposit under Article 4 hereof.

                  (b) if Tenant knows, or has reasonable cause to believe, that
a Hazardous Substance has come to be located in, on, under or about the Premises
or the Building, other than as previously consented to by Landlord in writing,
Tenant shall immediately give Landlord written notice thereof, together with a
copy of any statement, report, notice, registration, application, permit,
business plan, license, claim, action, or proceeding given to, or received from,
any governmental authority or private party concerning the presence, spill,
release, discharge of, or exposure to, such Hazardous Substance, including but
not limited to all such documents as may be involved in any Reportable Use
involving the Premises. Tenant shall not cause or permit any Hazardous Substance
to be spilled or released in, on, under or about the Premises (including,
without limitation, through the plumbing or sanitary sewer system).

                  (c) Tenant shall indemnify, protect, defend and hold Landlord,
its agents, employees, lenders and ground Landlord. if any, and the Premises,
harmless from and against any and all damages, liabilities, judgments, costs,
claims, liens, expenses, penalties, loss of permits and attorneys' and
consultants' fees arising out of or involving any Hazardous Substance brought
onto the Premises by or for Tenant or by anyone under Tenant's control Tenant's
obligations under this Section 9.4. shall include, but not be limited to, the
effects of any contamination or injury to person, property or the environment
created or suffered by Tenant, and the cost of investigation (including
consultants' and attorneys' fees and testing), removal, remediation, restoration
and/or abatement thereof, or of any contamination therein involved, and shall
survive the expiration or earlier termination of this Lease. No termination,
cancellation or release agreement entered into by Landlord and Tenant shall
release Tenant from its obligations under this Lease with respect to Hazardous
Substances, unless specifically so agreed by Landlord in writing at the time of
such agreement.

                  (d) The term "Hazardous Substance" as used in this Lease
shall mean any product, substance, chemical, material or waste whose presence,
nature, quantity and/or intensity of existence, use, manufacture, disposal,
transportation, spill, release or effect, 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 Landlord to any governmental agency or third
party under any applicable statute or common law theory and all other substances
now or hereafter defined as or included in the definition of "hazardous
substances," "hazardous wastes," "hazardous materials," or "toxic substances,"
"toxic wastes," or "toxic materials" under any applicable federal, state or
local laws or regulations now or hereafter in effect. Hazardous Substance shall
include, but not be limited to, any flammable or explosive materials, petroleum
or petroleum products, oil, crude oil, natural gas or synthetic gas usable for
fuel, radioactive materials.

         4.5.    Prohibited Uses. Tenant shall comply with all of the following:

                                      -10-
<PAGE>

                  (a) Tenant shall not do or permit anything to be done in or
about the Premises nor bring nor keep anything therein which could cause a
cancellation of any insurance policy covering the Premises, the Building, any
part thereof or any of its contents.

                  (b) Tenant shall not do or permit anything to be done in or
about the Premises which would in any way obstruct or interfere with the rights
of other tenants or occupants of the Building or injure or annoy them.

                  (c) Tenant shall not use or allow the Premises to be used for
my unlawful purpose or in any manner that constitutes a public nuisance.

                  (d) Tenant shall not cause, maintain, suffer or permit any
nuisance in, on or about the Premises.

                  (e) Tenant shall not permit noise or odors in the Premises
which are objected to by Landlord or by any tenant or occupant of the Building,
and, upon written notice from Landlord, Tenant shall immediately cease and
desist from causing such noise or odor.

                  (f) Tenant shall not commit or allow to be committed any waste
in or upon the Premises.

                  (g) Tenant shall not use or permit the Premises or any portion
thereof to be used as living quarters, sleeping quarters or for lodging purposes
or for any unlawful purposes.

                  (h) Tenant shall not conduct any auctions, liquidation, going
out of business, fire or bankruptcy sales on or about the Premises.

                  (i) Tenant agrees that all receiving and delivery of goods and
merchandise and all removal of merchandise, supplies, equipment, trash and
garbage shall be made only by way of the south rear entrance of the Building.

                  (j) Tenant shall not place, or permit to be placed, any
merchandise or other obstruction on the sidewalks immediately adjoining the
Premises.

                  (k) Tenant shall not go upon the roof of the Building or
permit anyone else to do so without Landlord's prior approval except for
maintenance of equipment.

                  (1) Tenant shall not obstruct the Common Area and/or store
anything in the Common Area or outside the Building except for space expressly
designated by Landlord for storage.

                  (m) Tenant shall not directly or indirectly engage in any
business which is similar to or competing with the business carried on at the
Premises within a driving radius of three (3) miles from the Premises.

         4.6.     Signs. Tenant shall not place, or cause to be placed or
maintained, any sign or advertising matter of any kind anywhere within the
Building, except in the interior of the Premises, without Landlord's prior
written approval. No handwritten signs shall be permitted. No illuminated signs
located in the interior of the Premises and which are visible from outside of
the Premises shall advertise any product. All signs located in the interior of
the Premises shall be in good taste so as not to detract from the general
appearance of the Premises and the Building. Tenant shall maintain in good
condition and repair at all times any sign or advertising matter of any

                                      -11-
<PAGE>

kind which has been approved by Landlord for use by Tenant. Non-tenant exterior
building signage capabilities are not included as part of this lease and are
reserved by landlord.

                                   ARTICLE 10.

                             INSURANCE AND INDEMNITY
                             -----------------------

          4.1. Building. Landlord shall, during the Lease Term, carry insurance
against fire, vandalism, malicious mischief and such other perils as are from
time to time included in a standard extended coverage endorsement and, at
Landlord's option, special extended coverage endorsements and/or earthquake and
flood insurance, insuring the Building (including the Premises) at full
replacement cost, if available. The cost of such insurance shall be deemed an
Operating Expense of the Building. Landlord shall not be recurred to insure any
of the Tenant's Property or other items required to be insured by Tenant
pursuant to Section 10.2.

         4.2. Tenant's Property. At all times during the Lese Term, Tenant at
its expense, shall maintain in effect policies of casualty insurance covering:
(a) all Alterations made by Tenant and all Tenant Improvements; and (b) all of
Tenant's Property, and all merchandise, furnishings, equipment, trade fixtures
and other personalty from time to time in, on or about the Premises, in an
amount not less than their full replacement cost (without deduction for
depreciation) from time to time during the Lease Term. Such policies shall
provide for protection against any perils normally included within the
classification of "All Risks," and shall contain endorsements covering:
demolition and increased cost of construction; water damage, vandalism and
malicious mischief; and liability for changes in law. The proceeds of such
insurance shall be used for the repair or replacement of the property so
insured, except that upon termination of this Lease following a casualty as set
forth herein, the proceeds applicable to the items described in clause (a) above
shall be paid to Landlord, and the proceeds applicable to the items described in
clause (b) above shall be paid to Tenant.

         4.3. Liability Insurance. At all times during the Lease Term, Tenant
shall maitain commercial general liability insurance (sometimes known as broad
form comprehensive general liability insurance) insuring Tenant against
liability for bodily injury, property damage (including loss of use of
property), personal injury and "dram shop" liability, arising out of the
operation, use or occupancy of the Premises. Tenant shall cause Landlord, and
any mortgagee of the Building designated by Landlord, to be named as an
additional insured under such policy. The initial amount of such insurance shall
be Two Million Dollars ($2,000,000) per occurrence, and shall be subject to
periodic increases based upon inflation, increased liability awards,
recommendation of Landlord's professional insurance advisors and other relevant
factors. Tenant shall also maintain workers' compensation insurance as required
by law. The liability insurance obtained by Tenant hereunder shall (a) contain a
provision that such policy shall be primary and non-contributing with respect to
any policies carried by Landlord and that any coverage carried by Landlord shall
be excess insurance; (b) contain cross-liability endorsements (or the
equivalent thereof); (c) be written on an "occurrence" basis, and (d) insure
Tenant's performance under Section 10.8 hereof. The amount of liability
insurance carried by Tenant shall not limit Tenant's liability nor relieve
Tenant of any of its obligations under this Lease. Landlord may also obtain
comprehensive public liability insurance, in an amount and with coverage
determined by Landlord, insuring Landlord against liability arising out of
ownership, operation, use or occupancy of the Premises, and the cost thereof
shall be deemed an Operating Expense of the Building.

         4.4. Loss of Income Insurance. At all times during the Lease Term,
Tenant shall maintain loss-of-income and extra-expense insurance in such amounts
as will reimburse Tenant for direct or indirect loss of earnings attributable to
all losses, damage or destruction caused by acts or omissions described in
Section 14.3(b).

                                      -12-

<PAGE>

         4.5. Payment of Premiums. Prior to the Commencement Date, Tenant shall
deliver to Landlord a copy of the policies of insurance required to be
maintained by Tenant under this Article 10. At least thirty (30) days prior to
the expiration of any such policy, Tenant shall deliver to Landlord a
certificate of insurance executed by an authorized officer of the insurance
company naming Landlord, and any mortgagee of the Building designated by
Landlord, as an additional insured. Within thirty (30) days thereafter, Tenant
shall provide Landlord with a copy of the insurance policy, showing that the
insurance which Tenant is required to maintain hereunder is in full force and
effect.

         4.6. General Insurance Provisions.

                  (a) Any insurance which Tenant is required to maintain under
this Lease shall remain in effect throughout the Lease Term and shall include a
provision which requires the insurance carrier to give Landlord not less than
thirty (30) days' written notice prior to any cancellation or modification of
such coverage.

                  (b) If Tenant fails to deliver any policy certificate or
renewal to Landlord required under this Lease within the prescribed time period
or if any such policy is canceled or modified during the Lease Term without
Landlord's consent, Landlord may obtain such insurance, in which case Tenant
shall reimburse Landlord for the cost of such insurance together with an
administrative fee equal to ten percent (10%) of the premium therefor within ten
(10) days after receipt of a statement that indicates the cost of such
insurance.

                  (c) Tenant shall maintain all insurance required under this
Lease with responsible insurance companies, acceptable to Landlord, and which
are rated "AA" or better by Best Insurance Guide and qualified to do business in
the State of California. At Landlord's request, Tenant's insurance policies
shall also name any mortgagee, ground Landlord or similar lien holder as its
interest in the Premises may appear.

         4.7. Waivers of Subrogation and Liability. Tenant and Tenant's
Affiliates hereby release Landlord and waive any cause of action which Tenant or
anyone claiming by, through or under Tenant, by subrogation or otherwise, might
now or hereafter have against Landlord or Landlord's Affiliates based on any
loss, damage or injury which is insured against under any insurance policy which
this Lease requires Tenant to carry. Landlord and Landlord's Affiliates hereby
release Tenant and Tenant's Affiliates and waive any cause of action which
Landlord or anyone claiming by, through, or under Landlord, by subrogation or
otherwise, might now or hereafter have against Tenant and Tenant's Affiliates
based an any loss, damage or injury which is insured against under any insurance
policy which this Lease requires Landlord to carry. All policies of insurance
written to insure all buildings, service and delivery areas, improvements,
contents, and all other such property (real or personal) shall contain a proper
provision, by endorsement or otherwise, whereby the insurance carrier issuing
the same (a) acknowledges that the insured has waived and released its right of
subrogation which such carrier might otherwise have had, and (b) waives and
releases any remaining right of subrogation it may have, or claim to have, all
without impairment of or invalidation of such insurance.

         4.8. Indemnification. As used in this Lease, the term "Liabilities"
shall mean all losses, costs, damages, expenses, demands, claims, fines,
penalties, liabilities, actions, causes of action, injuries, judgments,
including, but not limited to, attorneys' fees and costs. As used in this Lease,
the term "Landlord's Affiliates" and "Tenant's Affiliates" shall mean all
affiliates, directors, officers, shareholders, partners, members, managers,
agents, employees, invitees, customers, successors and assigns of Landlord and
Tenant, respectively. Tenant shall indemnify Landlord and Landlord's Affiliates
against and hold Landlord and Landlord's Affiliates harmless from any and all
Liabilities arising from or in connection with: (i) Tenant's use of the
Premises; (ii) the conduct of Tenant's business or anything else done or
permitted by Tenant to be done in or about the Premises, including any
contamination of the Premises or any other property resulting from the presence
or use of Hazardous Substances caused or permitted by Tenant; (iii) any breach
or default in the performance of Tenant's obligations under this Lease; (iv) any
misrepresentation or breach of warranty by Tenant under this Lease; or (v) other
acts or omissions

                                      -13-
<PAGE>

of Tenant or Tenant's Affiliates or any persons claiming through or under them.
Tenant shall defend Landlord against any such Liabilities at Tenant's expense
with counsel reasonably acceptable to Landlord or, at Landlord's election,
Tenant shall reimburse Landlord for any legal fees or costs (including costs
incurred for the negotiation of a settlement, enforcement of rights or
otherwise) incurred by Landlord in connection with any such Liabilities. As a
material part of the consideration to Landlord, Tenant assumes all Liabilities
it may incur and all risks of damage to property or injuries or to persons in or
about the Premises arising from any cause, and Tenant hereby waives all claims
in respect thereof against Landlord or Landlord's Affiliates. If Landlord or any
of Landlord's Affliates shall, without any fault on its part, be made a party to
any litigation commenced by or against Tenant, then Tenant shall protect and
hold Landlord and Landlord's Affiliates harmless and shall pay all costs,
expenses and reasonable attorneys' fees incurred or paid by Landlord in
connection with such litigation. Notwithstanding the above, Tenant shall have no
obligation to indemnify, defend or hold harmless Landlord or Landlord's
Affiliates against Liabilities resulting solely from the gross negligence or
willful misconduct of Landlord or its agents or employees.

         4.9. Exemption From Liability. Landlord and Landlord's Affiliates shall
not be liable for any Liabilities incurred by Tenant or Tenant's Affiliates
arising from or in connection with: (a) acts or omissions of any tenant of the
Building or any other persons (including, but not limited to, any parking valet
services and their employees), (b) explosion, fire, steam, electricity, water,
gas, rain, pollution or contamination; (c) the breakage, leakage, obstruction or
other defects of plumbing, HVAC, electrical, sanitary, safety, elevator or other
utilities and systems of the Building or the failure to furnish any of the
foregoing; (d) any work maintenance repair rebuilding or improvement performed
by or at the request of Landlord or Landlord's Affiliates for the Premises, the
Building or the Land, (e) any entry by Landlord or Landlord's Affiliates on the
Premises; (f) any defects in the Premises, the Building, the Land or any
portions thereof; (g) any interference with light or other incorporeal
hereditaments; and (h) any other acts, omissions or causes.

                                   ARTICLE 5.

                                   UTILITIES
                                   ---------

         5.1. Utility Charges. Water, gas, heat, electricity, power included in
base rent for normal usage 8:00am to 6:00pm, Monday thru Friday excluding
national holidays.

         5.2. Discontinuance and Interruption of Utility Services. Landlord
shall not be liable to Tenant in damages or otherwise (a) if any utility becomes
unavailable from any public utility company, public authority or any other
person or entity (including Landlord) supplying or distributing such utility, or
(b) for any interruption in a utility service (including, without limitation,
any HVAC) caused by the making of any necessary repairs or improvements or by
any cause beyond Landlord's reasonable control, and the same shall not
constitute a termination of this Lease or an eviction of Tenant.

                                   ARTICLE 6.

                              ESTOPPEL CERTIFICATES
                              ---------------------

                  (a) Tenant shall, within ten (10) days after request thereof
by Landlord, execute and deliver to Landlord a written statement certifying (a)
that this Lease is unmodified and in full force and effect (or, if there have
been modifications hereto, that this Lease is in full force and effect, as
modified, and stating the date and nature of such modifications), (b) the date
of commencement of the Lease Term, (c) that Rent is paid currently without any
offset or defense thereto, (d) the amount of Rent, if any, paid in advance,
(e) that there are no uncured defaults by Landlord or stating those claimed by
Tenant, and (f) any other information reasonably requested by Landlord.

                                      -14-
<PAGE>

                  (b) If Tenant fails to deliver such certificates or
acknowledgement within such ten-day period, Landlord and any current or
prospective purchaser or encumbrances may conclusively presume that (i) this
Lease is in full force and effect, without modification except as may be
represented by Landlord, (ii) Landlord is not in default under the Lease, and
(iii) not more than one (1) month's Monthly Basic Rent has been paid in advance.

                                   ARTICLE 7.

                            ASSIGNMENT AND SUBLETTING
                            -------------------------

           7.1. Landlord's Consent Required.

                  (a) Tenant shall not voluntarily or by operation of law
assign, transfer, mortgage or otherwise transfer or encumber (collectively,
"assign") Tenant's interest in this Lease or sublet the Premises without
Landlord's prior written consent, which consent Landlord shall not unreasonably
withhold, subject to the provisions of Sections 13.2 through 13.4. No subletting
of less than the entire Premises shall be permitted.

                  (b) If Tenant is other than an individual, a change in the
control of Tenant shall constitute an assignment requiring Landlord's consent.
The transfer, on a cumulative basis, of twenty-five percent (25%) or more of the
voting control of Tenant shall constitute a change in control for this purpose.

                  (c) The involvement of Tenant or its assets in any
transaction, or series of transactions (by way of merger, sale, acquisition,
financing, refinancing, transfer, leverage buy-out or otherwise), whether or not
a formal assignment or hypothecation of this Lease or Tenant's assets occurs,
shall constitute an assignment requiring Landlord's consent.

                  (d) An assignment of Tenant's interest in this Lease, or a
subletting of the Premises, without Landlord's specific prior written consent
shall, at Landlord's option, be deemed either a default curable after notice in
accordance with Section 16.1(b), or a non-curable default without the necessity
of any notice and grace period. If Landlord elects to treat such uncontested to
assignment or subletting as a non-curable default, Landlord shall have the right
to either: (i) terminate this Lease, or (ii) upon thirty (30) days' written
notice ("Landlord's Notice"), increase the Monthly Basic Rent for the Premises
to the greater of the then fair market rental value of the Premises, as
determined in good faith by Landlord or one hundred ten percent (110%) of the
Monthly Basic Rent then in effect. Pending determination of the new fair market
rental value, if disputed by Tenant, Tenant shall pay the amount set forth in
Landlord's Notice, with any overpayment credited against the next installment(s)
of Monthly Basic Rent coming due, and any underpayment for the period
retroactively to the effective date of the adjustment being due and payable
immediately upon the determination thereof.

          7.2. Terms and Conditions Applicable to Assignment and Subletting.

                  (a) Regardless of Landlord's consent, any assignment or
subletting shall not (i) be effective without the express written assumption by
such assignee or subtenant of the obligations of Tenant under this Lease, (ii)
release Tenant, or any guarantor of Tenant's obligations, of any obligations
hereunder, or (iii) alter the primary liability of Tenant for the payment of
Monthly Basic Rent and other sums due Landlord hereunder or for the performance
of any other obligations to be performed by Tenant under this Lease.

                  (b) Landlord may accept Rent or performance of Tenant's
obligations from any person other than Tenant pending approval or disapproval of
an assignment. Neither a delay in the approval or disapproval of such assignment
nor the acceptance of any Rent or performance shall constitute a waiver or
estoppel of Landlord's right to exercise its remedies for any Default by Tenant
under Section 16.1. of this Lease.

                                      -15-
<PAGE>

                  (c) The consent of Landlord to any assignment or subletting
shall not constitute a consent to any subsequent assignment or subletting by
Tenant or to any subsequent or successive assignment or subletting by the
assignee or subtenant. However, Landlord may consent to subsequent sublettings
and assignments of the sublease or any amendments or modifications thereto
without notifying Tenant or anyone else liable under this Lease or the sublease
and without obtaining their consent, and such action shall not relieve such
persons from liability under this Lease or the sublease.

                  (d) In the event of any default by Tenant or breach of
Tenant's obligation under this Lease, Landlord may proceed directly against
Tenant, any guarantors or anyone else responsible for the performance of
Tenant's obligations under this Lease, including any subtenant, without first
exhausting Landlord's remedies against any other person or entity responsible
therefore to Landlord, or any security held by Landlord.

                  (e) Each request for consent to an assignment or subletting
shall be in writing, accompanied by information relevant to Landlord's
determination as to the financial and operational responsibility and
appropriateness of the proposed assignee or subtennant, including but not
limited to the intended use and/or proposed modification of the Premises, if
any, together with a non-refundable deposit of $500 as reasonable consideration
for Landlord's considering and processing the request for consent. Tenant agrees
to provide Landlord with such other or additional information and/or
documentation as may be reasonably requested by Landlord.

                  (f) Any assignee of, or subtenant under, this Lease shall, by
reason of accepting such assignment or entering into such sublease, be deemed,
for the benefit of Landlord, to have assumed and agreed to conform and comply
with each and every term, covenant, condition and obligation herein to be
observed or performed by Tenant during the term of said assignment or sublease,
other than such obligations as are contrary to or inconsistent with the
provisions of an assignment or sublease to which Landlord has specifically
consented in writing.

                  (g) Landlord, as a condition to giving its consent to any
assignment or subletting, may require that Tenant deposit a Security Deposit in
an amount equal to the greater of: (i) two months' installments of the Monthly
Basic Rent then in effect, and (ii) two months' installments due under any such
sublease, if applicable.

                  (h) Landlord, as a condition to giving its consent to any
assignment or subletting, may require that the amount and adjustment schedule of
the Monthly Basic Rent payable under this Lease be adjusted to what is then the
market value and/or adjustment schedule for property similar to the Premises as
then constituted, as determined by Landlord.

         7.3. Additional Terms and Conditions Applicable to Subletting. The
following terms and conditions shall apply to any subletting by Tenant of the
Premises and shall be deemed included in all subleases under this Lease whether
or not expressly incorporated therein:

                  (a) Tenant hereby assigns and transfers to Landlord all of
Tenant's interest in all rentals and income arising from any sublease of the
Premises heretofore or hereafter made by Tenant, and Landlord may collect such
rent and income and apply same toward Tenants obligations under this Lease;
provided, however, that until a Default (as defined in Section 16.1) shall occur
in the performance of Tenant's obligations under this Lease, Tenant may, except
as otherwise provided in this Lease, receive, collect and enjoy the rents
accruing under such sublease. Landlord shall not, by reason of the foregoing
provision or any other assignment of such sublease to Landlord, nor by reason of
the collection of the rents from a subtenant, be deemed liable to the subtenant
for any failure of Tenant to perform and comply with any of Tenant's obligations
to such subtenant under such Sublease. Tenant hereby irrevocably authorized and
directs any such subtenant, upon receipt of a written notice

                                      -16-

<PAGE>

from Landlord stating that a default exists in the performance of Tenant's
obligations under this Lease, to pay to Landlord the rents and other charges due
and to become due under the sublease. Subtenant shall rely upon any such
statement and request from Landlord and shall pay such rents and other charges
to Landlord without any obligation or right to inquire as to whether such
default exists and notwithstanding any notice from or claim form Tenant to the
contrary. Tenant shall have no right or claim against such subtenant, or, until
the default has been cured, against Landlord, for any such rents and other
charges so paid by said subtenant to Landlord.

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

                  (c) Any matter or thing requiring the consent of the sublessor
under a sublease shall also require the of Land1ord herein.

                  (d) No subtenant under a sublease approved by Landlord shall
further assign or sublet all or any part of the Premises.

         7.4. Take-Back Rights. If Tenant agrees to assign this Lease or to
sublet the Premises, Tenant shall, prior to the effective date thereof (the
"Effective Date"), deliver to Landlord executed counterparts of any such
agreement and of all ancillary agreements with the proposed assignee or
subtenant, as applicable. Landlord shall then have the right, which Landlord may
exercise by written notice to Tenant given within thirty (30) days after
Landlord receives the foregoing documents, to terminate this Lease on the
Effective Date as if it were the Expiration Date in lieu of consenting to, or
refusing to consent to, such proposed assignment or sublease.

                                   ARTICLE 8.

                             DAMAGE OR DESTRUCTION
                             ---------------------

         8.1. Landlord's Restoration. If the Building or the Premises are
partially damaged or totally destroyed by fire or other casualty, and if this
Lease is not terminated as provided in this Article 14, Tenant shall instruct
its insurers to pay to Landlord any proceeds attributable to Tenant Improvements
and Alterations, and Landlord shall repair the damage and restore or rebuild the
Building or the Premises (except for Tenant's Property) after Landlord receives
notice of the damage or destruction and Landlord receives substantially all of
the insurance proceeds receivable on account of the casualty. However, Landlord
shall not be required to spend amounts in excess of the insurance proceeds
actually received for such repair, restoration or rebuilding. Landlord shall
attempt to make any required repairs or restoration promptly and so as not to
interfere unreasonably with Tenant's use and occupancy of the Premises, but
Landlord shall not be obligated to perform such work on an overtime or premium
pay basis.

         8.2. Rent Abatement. Subject to Section 14.3, if all or part of the
Premises are rendered completely or partially untenantable on account of fire or
other casualty, the Monthly Basic Rent shall be abated in the proportion that
the rentable area of the untenantable portion of the Premises bears to the total
rentable area of the Premises. Such abatement shall commence on the date of the
damage or destruction and shall continue until the Premises have been
substantially repaired and Tenant has reasonable access to the Premises.
However, if Tenant reoccupies the damaged portion of the Premises prior to the
date that the Premises are substantially repaired, the Monthly Basic Rent
allocable to the reoccupied portion shall be payable by Tenant from the date of
such occupancy in the proportion that the rentable area of the reoccupied
portion of the Premises bears to the total rentable area of the Premises.

                                      -17-
<PAGE>

         8.3. Exception to Abatement. Monthly Basic Rent shall not be abated or
reduced if: (a) the Premises or a portion thereof are rendered untenantable for
a period of five (5) consecutive days or less; or (b) because of acts or
omissions of Tenant or Tenant's Affiliates either (i) Landlord (or any mortgagee
of the Building) is unable to collect all of the insurance proceeds (including,
without limitation, rent insurance proceeds) for damage or destruction of the
Premises or the Building, or (ii) the Premises or the Building was damaged or
destroyed or rendered completely or partially untenantable. The collection of
Rent by Landlord under the circumstances described in clause (b) above shall not
preclude Landlord from seeking damages from Tenant or exercising any other
rights and remedies it may have under this Lease or at law or in equity.

         8.4. Election to Terminate. Landlord may terminate this Lease upon
written notice to Tenant if: (a) repairs to the Premises or other portions of
the Building cannot reasonably be completed within one hundred eighty (180) days
of the date of damage (assuming such repairs are made without the payment of
overtime or other premiums); or (b) any mortgagee of the Building shall require
that the insurance proceeds or any portion thereof be applied to the mortgage
debt; or (c) the damage or condition arising as a result of such damage is not
fully covered, except for deductible amounts, by insurance policies; or (d) less
than one (1) year remains in the Lease Term at the time of the damage or
destruction or events which render the Building or the Premises untenantable and
the time necessary to repair or restore the Building of the Premises would
exceed ninety (90) days (assuming such repairs are made without the payment of
overtime or other premiums). If Landlord elects to terminate this Lease, its
notice of termination shall be given within sixty (60) days after the date of
the damage, destruction or events causing untenantability, and this Lease shall
terminate on the date specified in such notice. Tenant shall have the right to
terminate this Lease following any of the occurrences described in this Section
14.4 if Landlord does not elect to terminate this Lease within the time herein
provided, and Landlord fails to perform its obligations under Section 14.1
through any applicable cure period following notice to Landlord as provided in
Article 17.

         8.5. Waiver of Rights. Landlord and Tenant acknowledge that the
provisions of this Article 14 govern the rights and obligations of the parties
in the event of substantial or total damage or destruction of the Premises, and
the provisions of Article 15 govern the rights and obligations of the parties in
the event of condemnation of the Premises. Tenant hereby waives the protection
of any statute, code or judicial decisions which grants Tenant the right to
terminate this Lease in the event of a substantial or total damage or
destruction or condemnation of the Premises including, without limitation,
Sections 1931(2) and 1933(4) of the California Civil Code and Section 1265.130
of the California Code of Civil Procedure and any similar law now or hereafter
in effect.

                                   ARTICLE 9.
                                 EMINENT DOMAIN
                                 --------------

          9.1. Total Condemnation. If all or substantially all of the Premises
or the Building shall be taken by any public or quasi public authority under the
power of eminent domain, or deeded to any such authority under threat of eminent
domain, then this Lease shall terminate on the date the condemnation authority
takes possession of the Premises or the Building, as the case may be, and
Landlord shall refund any Rent which has been paid in advance for the period
subsequent to the date of the taking.

         9.2. Partial Condemnation. If only a part of the Premises, the Building
or the Land is taken by or deeded to any public or quasi public authority under
the power or threat of eminent domain, then, except as otherwise provided in
this Section 15.2, this Lease shall continue in full force and effect. From and
after the date the condemning authority takes possession of any portion of the
Premises, the Monthly Basic Rent shall be reduced in the proportion which the
portion of the Premises so taken bears to the total area of the Premises
immediately prior to such condemnation. If more than twenty percent (20%) of the
Premises, the Building or the Land shall be taken or deeded under the power or
threat of eminent domain, Landlord shall have the right to terminate this Lease
upon written notice to Tenant within ten (10) days after such taking. If, by
reason of such condemnation the Premises are rendered untenantable to the extent
that Tenant shall no longer be able to reasonably conduct its business
therefrom, in Tenant's reasonable judgment, Tenant shall have the right to
terminate this Lease by written notice to Landlord within ten (10) days after
such taking. If neither party exercises said right of termination, then (a) the
Lease Term shall terminate only as to the part so taken, (b) this Lease shall
continue in effect, except that the Monthly Basic Rent shall be reduced in
proportion to the amount of the Premises taken, and (c) Landlord shall, at its
own cost and expense, make all the necessary repairs or alterations to the
Premises so that the remaining Premises is a complete architectural unit. During
the Lease Term (or any holding over) a transfer of title by Landlord to any
public or quasi public body, agency, or person, corporate or otherwise having
the power of eminent domain either under threat of condemnation or while
condemnation proceedings are pending, shall be deemed a condemnation.

                                      -18-
<PAGE>

         9.3. Landlord's and Tenant's Damages. All damages awarded for any
taking under the power of eminent domain, whether for the whole or a part of the
Premises or the Building, shall belong to and be the property of Landlord.
However, Landlord shall not be entitled to any separate award to Tenant made for
any diminution in value of the leasehold, or for relocation expenses and/or for
depreciation to, and cost of removal of, Tenant's merchandise and fixtures.

                                   ARTICLE 10.
                         DEFAULT BY TENANT AND REMEDIES
                         ------------------------------

         10.1. Default. The occurrence of any one or more of the following
events shall constitute a "Default" hereunder by Tenant:

               (a) The failure by Tenant to make any payment of Rent as and when
due, when such failure shall continue for a period of five (5) days after the
date that such payment was due;

               (b) The failure by Tenant to observe or perform any of the
express or implied covenant or provisions of this Lease to be observed or
performed by Tenant, other than as specified in Section 16.1(a), where such
failure shall continue for a period of thirty (30) days after written notice
thereof from Landlord to Tenant; provided, however, that any such notice shall
be in lieu of, and not in addition to, any notice required under California Code
of Civil Procedure '1161 or any similar successor statute; provided, further,
that if the nature of Tenant's default in such that more than thirty (30) days
are reasonably required for its cure, then Tenant shall not be deemed to be in
default if Tenant shall commence such cure within said thirty (30) day period
and thereafter continuously and diligently prosecute such cure to completion;

               (c) The making by Tenant of any general assignment for the
benefit of creditors; the filing by or against Tenant of a petition to have
Tenant adjudged a bankrupt or a petition for reorganization or arrangement under
any Law relating to bankruptcy (unless, in the case of a petition filed against
Tenant, the same is dismissed within thirty (30) days); the appointment of a
trustee or receiver to take possession of substantially all of Tenant's assets
located at the Premises or of Tenant's interest in this Lease, where possession
is not restored to Tenant within thirty (30) days; the attachment, execution or
other judicial seizure of substantially all of Tenant's assets located at the
Premises or of Tenant's interest in this Lease, where such seizure is not
discharged within thirty (30) days; or if this Lease shall, by operation of law
or otherwise, pass to any person or persons other than Tenant; in the event of
the happening of any of the above proceedings or events, neither this Lease nor
any interest in the Premises shall be deemed an asset of Tenant subject to such
proceeding or event;

                                      -19-
<PAGE>

                   (d) Tenant's failure to conduct its business in the Premises
on the days and during the times provided in Section 9.2 above;

                   (e) If the performance of Tenant's obligations under this
Lease is guaranteed, (i) the death or incapacity of any 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 repudiation
or anticipatory breach of its obligations under its guaranty, or (v) Tenant's
failure to deliver to Landlord, within ten (10) days after request therefor, a
confirmation, signed by each guarantor, of the continued effectiveness of such
guarantor's guaranty;

                   (f) Tenant's failure to deliver an Estoppel Certificate
required under Article 12. hereof within the time required therein; and

                   (g) If Tenant is comprised of one or more individuals,
(i) the death or incapacity of any such individual, or (ii) any such individual
becomes insolvent or the subject of a bankruptcy filing.

          10.2. Remedies.
                --------
                   (a) In the event of any such Default by Tenant, in addition
to any other remedies available to Landlord at law or in equity, Landlord shall
have the immediate option to terminate this Lease and all rights of Tenant
hereunder. In the event that Landlord shall elect to so terminate this Lease,
then Landlord may recover from Tenant all damages incurred by Landlord by reason
of Tenant's default, including (i) the worth at the time of award of any unpaid
Rent which had been earned at the time of such termination; plus (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 Tenant proves could have been reasonably avoided; plus (iii)
the worth at the time of award of the amount by which the unpaid Rent for the
balance of the Lease Term after the time of award exceeds the amount of such
rental loss that Tenant proves could be reasonably avoided; plus (iv) any other
amount necessary to compensate Landlord for all the detriment proximately caused
by Tenant's failure to perform Tenant's 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 and
reasonable attorney's fees. As used in Sections 16.2(a)(i) and (ii) above, the
"worth at the time of award" is computed by allowing interest at a per annum
rate (the "Interest Rate") equal to the lesser of (A) eighteen percent (18%) per
annum or (B) the maximum rate permitted by applicable law governing interest
rate restrictions. As used in Section 16.2(a)(iii) above, the "worth at the time
of award" is computed by discounting such amount at the discount rate of the
Federal Reserve Bank of San Francisco at the time of award plus
one percent (1.0%).

                   (b) In the event of any such Default by Tenant, Landlord
shall also have the right, with or without terminating this Lease, to re-enter
the Premises and remove all persons and property from the Premises. Such
property may be removed and stored in a public warehouse or elsewhere at the
cost of and for the account of Tenant or disposed of in a reasonable manner by
Landlord. No re-entry or taking possession of the Premises by Landlord pursuant
to this Section 16.2(b) shall be construed as an election to terminate this
Lease unless a written notice of such intention is given to Tenant or unless the
termination thereof is decreed by a court of competent jurisdiction.

                   (c) If Landlord does not elect to terminate this Lease as
provided above, Landlord may continue this Lease and Tenant's right to
possession in effect (under California Civil Code Section 1951.4) and recover
all Rent as it becomes due, provided Landlord gives to Tenant a written notice
that Landlord will not unreasonably withhold its consent to any assignment or
sublease of the Premises proposed by Tenant. If Landlord does not elect to
terminate this Lease, Landlord may, but shall not be obligated to, relet the
Premises or
                                     -20-

<PAGE>

any part thereof, for the account of Tenant, for all or part of the remaining
Lease Term on such terms and conditions as Landlord in its sole discretion may
deem advisable, and Landlord shall have the right to re-enter the Premises to
make alterations and repairs to the Premises, and to take whatever other
actions may be necessary to relet, protect or preserve the Premises. In the
event that Landlord shall elect to so relet, then all rent received by Landlord
from such reletting shall be applied: first, to the payment of any indebtedness
other than Monthly Basic Rent due hereunder from Tenant to Landlord; second, to
the payment of any costs of reletting, including brokerage commissions; third,
to the payment of the cost of any alterations and repairs to the Premises;
fourth, to the payment of Monthly Basic Rent due and unpaid hereunder; and the
residue, if any, shall be held by Landlord and applied to payment of future Rent
and the same may become due and payable hereunder. Should the portion of any
rent received from such reletting during any month that is applied to the
payment of Rent hereunder be less that the Rent payable during that month by
Tenant hereunder, then Tenant shall pay such deficiency to Landlord immediately
upon demand therefor by Landlord. Such deficiency shall be calculated and paid
monthly. Tenant shall also pay to Landlord, as soon as ascertained, any costs
and expenses of reletting incurred by Landlord, including but not limited to
brokerage commissions and costs of making alterations and repairs, to the extent
the same are not covered by the rent received from such reletting.

                10.3. Waiver of Redemption. Tenant hereby waives, for itself
and all persons claiming by and under Tenant, all rights and privileges which
it might have under any present or future law redeem the Premises or to continue
the Lease in effect after being dispossessed or ejected from the Premises.

                10.4. Performance by Landlord. If Tenant fails to perform any
covenant or condition to be performed by Tenant, Landlord may perform such
covenant or condition at its option, after notice to Tenant. All costs incurred
by Landlord in so performing shall immediately be reimbursed to Landlord by
Tenant, together with interest at the Interest Rate computed from the due date.
Any performance by Landlord of Tenant's obligations shall not waive or cure such
default. Landlord may perform Tenant's defaulted obligations at Tenant's sole
cost and expense without notice in the case of any emergency. All costs and
expenses incurred by Landlord, including reasonable attorneys' fees (whether or
not legal proceedings are instituted), in collecting Rent or enforcing the
obligations of Tenant under this Lease shall be paid by Tenant to Landlord
upon demand.

                10.5. Remedies Cumulative. All rights, options and remedies of
Landlord contained in this Lease shall be construed and held to be cumulative,
and no one of them shall be exclusive of the other, and Landlord shall have the
right to pursue any one or all of such remedies or any other remedy or relief
which may be provided by law, whether or not stated in this Lease.

                                 ARTICLE 11.
                             DEFAULT BY LANDLORD

               Landlord shall not be in default hereunder unless Landlord fails
to perform the obligations required of Landlord within a reasonable time, but
in no event earlier than thirty (30) days after written notice by Tenant to
Landlord, specifying wherein Landlord has failed to perform such obligation;
however, that if the nature of Landlord's obligations is such that more than
thirty (30) days are required for performance, then Landlord shall not be in
default if Landlord commences performance within such thirty (30) day period
and thereafter diligently prosecutes the same to completion; provided, further,
that Landlord shall use its best efforts to commence performing its obligations
to repair any damage to the Premises within five (5) business days following its
receipt of written notice from Tenant that such damage is continuing to cause
actual damage to property of Tenant or unreasonably interfere with the conduct
of Tenant's business on the Premises. In no event shall Tenant have the right to
terminate this Lease or withhold Rent as a result of Landlord's default and
Tenant's remedies shall be limited to an action for damages, injunction or
specific performance of this Lease.

                                  ARTICLE 12.

                                      -21-

<PAGE>

                               ACCESS BY LANDLORD

               Landlord or Landlord's agent shall have the right to enter the
Premises at all reasonable times to examine the same, to show the Premises to
prospective purchasers or mortgagees of the Building, and to make such repairs,
alterations, improvements or additions as Landlord may deem necessary or
desirable. Landlord's agent may be accompanied by a representative or agent of
another tenant of the Building for any such purposes. Landlord shall have the
right, but not the obligation, to make improvements to the Building and the
Land, including, without limitation, repairs, cleaning and updating of the
Building exterior. In addition, Landlord may exhibit the Premises to prospective
purchasers of the Building, and place usual "For Sale" notices upon the
Premises, and, during the six (6) months prior to the expiration of the Lease
Term, Landlord may also exhibit the Premises to prospective tenants, and place
usual "To Let" or "For Rent" notices upon the Premises. In connection with any
such entry by Landlord or any such work by Landlord, Landlord shall use
reasonable efforts to minimize any interference with Tenant's customers or
employees or the conduct of Tenant's business in the Premises, but, except as
otherwise specifically provided in this Lease, the same shall not constitute an
eviction of Tenant in whole or in part, Landlord shall not be liable to Tenant
for any injury to or interference with Tenant's business, and Tenant shall not
be entitled to any abatement, reduction or offset of Rent by virtue of any entry
by Landlord into the Premises, or any interference with Tenant's business, made
in accordance with the provisions of this Article 18.

                                   ARTICLE 13.
                           TAXES ON TENANT'S PROPERTY

               Tenant shall be responsible for and shall pay before
delinquency all municipal, county, state and federal taxes levied or assessed
during the Lease Term against any leasehold interest or Tenant's leasehold
improvements, equipment, furniture, fixtures and other personal property located
in the Premises. For the purpose of this Article, the phrase before
"delinquency" means prior to the assessment of any penalty or the accrual of
any interest as the result of the failure to pay such taxes. If any or all of
Tenant's leasehold improvements, equipment, furniture, trade fixtures or
other personal property shall be assessed and taxed with the Land or Building,
Tenant shall pay its share of such taxes to Landlord within ten (10) days
after delivery to Tenant by Landlord of a statement in writing setting forth
the amount of such taxes applicable to Tenant's Property.

                                   ARTICLE 20.
                                  HOLDING OVER

               Tenant shall not hold over in the Premises after the expiration
or sooner termination of the Lease Term. Tenant shall indemnify Landlord and
Landlord's Affiliates for and hold Landlord and Landlord's Affiliates harmless
from and against, any and all Liabilities arising out of or in connection with
any delay by Tenant in surrendering and vacating the Premises, including,
without limitation, any claims made by any succeeding tenant based on any delay
and any Liabilities arising out of or in connection with these claims.

                                 ARTICLE 14.
                            RULES AND REGULATIONS

               Tenant shall comply with and observe all rules and regulations
established by Landlord from time to time for the Building and the Common Areas.
Tenant's failure to keep and observe said rules and regulations shall
constitute a breach of this Lease.

                                ARTICLE 152.
                                 NO PARKING

                                    -22-

 <PAGE>

                 Tenant acknowledges that no parking is provided by Landlord for
Tenant or any of its guests, invitees, or employees, and Landlord shall not be
liable or responsible to provide parking at any time. Tenant assumes all risk of
loss or damage as a result of the adoption of any ordinance or other Applicable
Law requiring parking as a condition of any use of the Premises by Tenant.

                                 ARTICLE 16.
                               QUIET ENJOYMENT

               Upon payment by Tenant of the Rent herein provided, and upon
the observance and performance of all the covenants, terms and conditions on
Tenant's part to be observed and performed, Tenant shall peaceably and quietly
hold and enjoy the Premises for the Lease Term hereby demised without hindrance
or interruption by Landlord or any other person or persons lawfully or equitably
claiming by, through or under Landlord, subject, nevertheless, to the terms and
conditions of this Lease and any mortgages to which this Lease is subordinate.

                                 ARTICLE 17.
                           SECURITY OF THE PREMISES

               Tenant shall be solely responsible for the security of the
Premises and neither Tenant nor his employees or agents shall do anything to
jeopardize the security of any individuals or property in the Building. Tenant
shall hold Landlord harmless from all liability relating to the security of
the Building or Premises.

                                 ARTICLE 18.
                              SECURITY INTEREST

               As security for payment of Rent and the performance of Tenant's
other obligations hereunder, Tenant hereby grants to Landlord a lien and
security interest in all of Tenant's Property within the Premises, including
all improvements, equipment, trade fixtures and other personal property at any
time placed on or in the Premises, to the full extent of Tenant's and any
assignee's or subtenant's interest therein, and in all Liquor Licenses and all
proceeds of the sale, transfer, or other disposition thereof. Within ten (10)
days after Landlord's written request, Tenant shall execute and deliver to
Landlord UCC financing statements and/or other appropriate documents to evidence
such lien, and Tenant does hereby irrevocably appoint Landlord as Tenant's
attorney in fact to execute and file any and all such financing statements in
order to perfect Landlord's security interest. Notwithstanding any provision to
the contrary herein contained, within ten (10) days after receiving a written
notice from Tenant of a requirement by any lender or equipment lessor that
Landlord's security interest under this Article 25 must be subordinated to any
lien or security interest of such lender or equipment lessor as a condition of
financing or leasing of Tenant's improvements, equipment, trade fixtures, or
other personal property at any time placed on or in the Premises, Landlord shall
execute an appropriate subordination agreement, including any amendment of
Landlord's UCC financing statements, as may be reasonably required by such
lender or equipment lessor in connection with such financing or leasing
transaction.

                                 ARTICLE 19.
                            BROKER'S COMMISSION

               Landlord and Tenant each represent and warrant that it has had
no dealing with any real estate broker, agent or finder in connection with the
negotiation of this Lease, and that it knows of no other real estate broker,
agent or finder who is or might be entitled to a commission or fee in connection
with this Lease. Landlord and Tenant shall each indemnify, defend and hold the
other harmless from and against all Liabilities arising from any claim in
connection with a breach of the preceding representation and warranty. The
foregoing indemnify shall survive the expiration or sooner termination of
this Lease.

                                    -23-

<PAGE>

                                 ARTICLE 20.
                                MISCELLANEOUS

               20.1. Waiver. One or more waivers of any covenant or condition
by Landlord shall not be construed as a waiver of a subsequent breach of the
same covenant or condition or as a waiver of any other covenant or condition.
Landlord's consent or approval to or of any act by Tenant requiring Landlord's
consent or approval shall not be deemed to render unnecessary Landlord's consent
or approval to or of any subsequent similar act by Tenant. No breach of a
covenant or condition of this Lease shall be deemed to have been waived by
Landlord, unless such waiver has been given in writing by Landlord.

               20.2. Entire Agreement. This Lease and the Exhibits, if any,
attached hereto and forming a part hereof, set forth all of the covenants,
promises, agreements, conditions and understanding between Landlord and
Tenant concerning the Premises. There are no covenants, promises, agreements,
conditions or understandings, either oral or written, between Landlord and
Tenant other than as set forth herein. Tenant has not relied upon any
representation of Landlord or its agents, other than any items contained in
this Lease, as an inducement to enter into this Lease. No alteration,
amendment, change or addition to this Lease shall be binding upon Landlord or
Tenant unless in writing and signed by each party.

               20.3. No Partnership. Nothing contained herein shall be deemed
or construed by the parties hereto, nor by any third party, as creating
between the parties hereto any relationship of principal and agent, or of
partners or of joint venturers, it being understood and agreed that neither
the method of computation of rent, nor any other provision contained herein,
nor any acts of the parties herein, shall be deemed to create any relationship
between the parties hereto other than the relationship of landlord and tenant.

               20.4. Use of Pronouns. Whenever herein the singular number is
used, the same shall include the plural, and the masculine gender shall include
the feminine and neuter genders, and vice versa.

               20.5. Delays.  In the event that either party hereto is delayed,
hindered in or prevented from the performance of any act required by this Lease
by reason of strikes, lockouts, labor troubles, inability to procure materials,
failure of power, restrictive governmental laws or regulations, riots,
insurrection, war or any other similar reason not the fault of the party delayed
in performing work or doing acts required under the terms of this Lease, then
performance of such act shall be excused for the period of the delay and the
period for the performance of any such act shall be extended for a period
equivalent to the period of such delay. The party entitled to such extension
shall give written notice as soon as possible to the other party hereto of its
claim of right to such extension and the reason(s) therefore. The provisions of
this Section 27.5 shall not excuse Tenant from prompt payment of Rent.

               20.6.  Notices. Any notice, demand, request, or other
instrument which may be or is required to be given under this Lease shall be
delivered by hand or sent by reputable overnight carrier, and shall be addressed
(a) if to Landlord, at the address set forth in Section 1(k) hereof, or at such
other address as Landlord may designate by written notice from time to time to
Tenant, and (b) if to Tenant, at the address set forth in Section 1(1) hereof,
or at such other address as Tenant may designate by written notice from time to
time from Landlord. All notices shall be effective upon delivery or attempted
delivery.

               20.7. Captions and Section Numbers.  The captions, section
numbers, article numbers, and table of contents appearing in this Lease are
inserted only as a matter of convenience and in no way define, limit, construe,
or describe the scope or intent of such sections or articles of this Lease or
in any way affect this Lease.

                                    -24-

<PAGE>

               20.8. Recording. Tenant shall not record this Lease without the
written consent of Landlord. However, upon the request of either party hereto,
the other party shall join in the execution of a memorandum or so-called "short
form" of this Lease for the purposes of recordation. Said memorandum or short
form of this Lease shall describe the parties, the Premises, the Lease Term and
any special provisions and shall incorporate this Lease by reference.

               20.9. Furnishing of Financial Statements. Upon Landlord's
lender's written request, Tenant shall promptly furnish Landlord, from time to
time, with financial statements certified by Tenant to be true and correct
reflecting the current financial condition of Tenant and of any guarantor.

               20.10. Sale or Transfer by Landlord. The term "Landlord" as
used in this Lease, so far as covenants or obligations on the part of
Landlord are concerned, shall be limited to mean and include only the owner or
owners, at the time in question, of the fee title to the Building. In the event
of any transfer, assignment or other conveyance or transfers of any such title
or interest, Landlord herein named (and in case of any subsequent transfers or
conveyances, the then grantor) shall be automatically freed and relieved from
and after the date of such transfer, assignment or conveyance of all liability
with respect to the performance of any covenants or obligations on the part of
Landlord contained in this Lease thereafter to be performed. Without further
agreement, the transferee of such title or interest shall be deemed to have
agreed to observe and perform any and all obligations of Landlord hereunder,
during its ownership of the Premises. Landlord may transfer its interest in the
Premises without the consent of Tenant and such transfer or subsequent transfer
shall not be deemed a violation on Landlord's part of any of the terms and
conditions of this Lease. Tenant hereby waives the protection of any statute or
rule of law which gives or purports to give Tenant any right to terminate this
Lease or surrender possession of the Premises upon a transfer of Landlord's
interest in the Building and/or this Lease.

               20.11. Interest on Past Due Obligations. In addition to any
late charges payable hereunder, any amount due from Tenant to Landlord which is
not paid when due shall bear interest at the Interest Rate. The payment of such
interest shall not excuse or cure any default by Tenant under this Lease.

               20.12. Liability of Landlord. Notwithstanding any term or
provision in this Lease to the contrary, Landlord's liability for the
performance of its duties and obligations under this Lease shall be limited to
Landlord's interest in the Premises and the Building, and neither Landlord nor
any of Landlord's Affiliates shall have any personal liability under this Lease.

               20.13. Accord and Satisfaction. No payment by Tenant or receipt
by Landlord of a lesser amount than the Rent due hereunder shall be deemed to
be other than on account of the earliest stipulated Rent. No endorsement or
statement on any check or any letter accompanying any check or payment as rent
shall be deemed an accord and satisfaction. Landlord may accept any such check
or payment without prejudice to Landlord's right to recover the balance of the
Rent owing or to pursue any other remedy provided in this Lease.

               20.14. Execution of Lease. The submission of this Lease for
examination does not constitute a reservation of a right or option to lease
the Premises, and this Lease shall become effective as a lease only upon
execution and delivery thereof by both Landlord and Tenant.

               20.15. Laws of the State of California. This Lease shall be
governed by, and construed in accordance with, the laws of the State of
California.

               20.16. Partial Invalidity. If any provision of this Lease or the
application thereof to any person or circumstances shall, to any extent, be
invalid or unenforceable, the remainder of this Lease shall not be affected
hereby and each provision of this Lease shall be valid and enforceable to the
fullest extent permitted by law.

                                  -25-
<PAGE>

               20.17. Legal Expenses. Tenant shall reimburse Landlord upon
demand for any costs or expenses incurred by Landlord in connection with any
breach or default of Tenant under this Lease, whether or not suit is commenced
or judgment entered. Landlord shall reimburse Tenant upon demand for any costs
or expenses incurred by Tenant in connection with any breach or default of
Landlord under this Lease, whether or not suit is commenced or judgment entered.
Such costs shall include legal fees and costs incurred for the negotiation of a
settlement, enforcement of rights or otherwise. Furthermore, if any action for
breach of or to enforce the provisions of this Lease is commenced, the court in
such action shall award to the party in whose favor a judgment is entered, a
reasonable sum as attorneys' fees and costs.

               20.18. Joint and Several Liability; Successors. If Tenant is
comprised of more than one person or entity, each and all of such persons and
entities shall be jointly and severally liable for payment and performance of
all covenants, liabilities, and obligations of Tenant under this Lease. All
terms, conditions, covenants, agreements, rights and liabilities herein given
to or imposed upon, the respective parties hereto shall extend to and bind the
several respective heirs, executors, administrators, successors, subtenants,
sublessees, concessionaires, assigns and marital communities, if any, of the
said parties. No rights, however, shall inure to the benefit of any assignee
of Tenant unless the assignment to such assignee has been approved by Landlord
in writing.

               20.19. Waiver of Trial by Jury. THE RESPECTIVE PARTIES HERETO
HEREBY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT
BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER OR ANY MATTER WHATSOEVER
ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF
LANDLORD AND TENANT, TENANT'S USE OR OCCUPANCY OF THE LEASED PREMISES, OR ANY
CLAIM OF INJURY OR DAMAGE, OR THE ENFORCEMENT OF ANY REMEDY UNDER ANY STATUTE
OR OTHERWISE.

               20.20. Mortgagee Approval; Financing Provisions. This Lease is
subject to approval by Landlord's Mortgagee within thirty (30) days of its
execution and delivery by both Landlord and Tenant.

               Tenant accepts this Lease subject and subordinate to any and
all recorded leases, mortgages or deeds of trust presently existing, if any,
or hereafter encumbering the Premises and any renewals, modifications,
extensions or replacements thereof and to all existing ordinances and recorded
restrictions, covenants, easements, and agreements with respect to the
Premises. Notwithstanding any provision to the contrary herein contained,
Landlord shall use its best efforts to request each holder of any encumbrance
hereafter encumbering or desiring to encumber the Premises to execute,
acknowledge and deliver to Landlord and Tenant a Subordination,
Nondisturbance and Attornment Agreement substantially in the form of Exhibit
"D" attached hereto and incorporated herein by reference ("SNDA"). Except
as otherwise provided in any such SNDA, upon any foreclosure, judicially or
non-judicially, of any such mortgage or deed of trust, or the sale of the
Premises in lieu of foreclosure, or any other transfer of Landlord's interest
in the Premises, whether or not in connection with a mortgage or deed of
trust, then upon the election of (1) the mortgagee or holder of any such deed
of trust made at any time before the completion of any such sale or transfer
by foreclosure or by deed in lieu of foreclosure, or (2) the purchaser or
transferee upon such sale or transfer made within sixty (60) days after
completion of such sale or transfer, Tenant agrees to attorn to the purchaser
at such foreclosure sale or to the grantee under any deed in lieu of foreclosure
or to any other transferee of Landlord's interest, and shall recognize such
purchaser, grantee, or other transferee as Landlord under this Lease, and no
further attornment or other agreement shall be required to effect or evidence
Tenant's attornment to and recognition of such purchaser or grantee as Landlord
hereunder. The foregoing election by said mortgagee, holder, or purchaser, shall
be evidenced by a written notice thereof delivered to Tenant, which notice shall
include or be accompanied by, without limitation, an agreement by said
mortgagee, holder, or purchaser to not disturb Tenant's possession and quiet
enjoyment of the Premises upon and subject to the provisions of this Lease, for
the remainder of the term thereof; provided, in each case, that Tenant is not
then or at any time thereafter in breach or default of any of the provisions of
this Lease. The foregoing nondisturbance agreement shall not be construed as an
express subordination of the mortgage or deed of trust to

                                    -26-

<PAGE>

the Lease, unless expressly so provided in said notice, or as otherwise herein
expressly provided, and shall not require the mortgagee, holder, or purchaser
to recognize or subordinate the lien thereof to any option or right of first
refusal to purchase or lease the Premises, or to purchase or lease any other
space or improvements within the Premises. Such agreement of Tenant to attorn
shall be specifically enforceable and shall survive any such foreclosure sale,
trustee's sale, conveyance in lieu thereof, or any other transfer of Landlord's
interest in the Premises. Tenant, upon demand, before or after any such
foreclosure sale, trustee's sale, conveyance in lieu thereof, or other transfer
shall execute, acknowledge, and deliver to the mortgagee any reasonable written
instruments and certificates evidencing such attornment as the mortgagee or
other prospective transferee may reasonably require. Notwithstanding anything to
the contrary implied in this Section, any mortgagee under any mortgage shall
have the right at any time to subordinate any such mortgage to this Lease on
such terms and subject to such conditions as the mortgagee in its discretion may
consider appropriate.

    IN WITNESS WHEREOF, the parties have executed this lease on the date
first above mentioned.

"Landlord"

Hollywood Media Center, LLC

By:  /s/ Jose Malagon
     ---------------------
Its: Jose Malagon
     ---------------------

"Tenant"

By:  /s/ David W Gajda
     ---------------------
Its: CEO
     ---------------------

                                      -27-<PAGE>
                                                                   EXHIBIT 10.26

                                      LEASE

THIS LEASE is made as of the first day of February, 1999, by and between Spieker
Properties, L.P., a California limited partnership (hereinafter called
"Landlord"), and Hollywood Software, Inc., a California corporation (hereinafter
called "Tenant").

                                   1. PREMISES

     Landlord leases to Tenant and Tenant leases from Landlord, upon the terms
and conditions hereinafter set forth, those premises (the "Premises") outlined
in red on Exhibit B and described in the Basic Lease Information. The Premises
shall be all or part of a building (the "Building") and of a project (the
"Project"), which may consist of more than one building and additional
facilities, as described in the Basic Lease Information. The Building and
Project are outlined in blue and green respectively on Exhibit B. Landlord and
Tenant acknowledge that physical changes may occur from time to time in the
Premises, Building or Project, and that the number of buildings and additional
facilities which constitute the Project may change from time to time, which may
result in an adjustment in Tenant's Proportionate Share, as defined in the Basic
Lease Information, as provided in Paragraph 7.A.

                      2. POSSESSION AND LEASE COMMENCEMENT

A. Existing Improvements. If this Lease pertains to a Premises in which the
interior improvements have already been constructed ("Existing Improvements"),
the provisions of this Paragraph 2.A. shall apply and the term commencement date
("Term Commencement Date") shall be the earlier of the date on which: (1) Tenant
takes possession of some or all of the Premises; or (2) Landlord notifies Tenant
that Tenant may occupy the Premises. If for any reason Landlord cannot deliver
possession of the Premises to Tenant on the scheduled Term Commencement Date,
Landlord shall not be subject to any liability therefor, nor shall Landlord be
in default hereunder nor shall such failure affect the validity of this Lease,
and Tenant agrees to accept possession of the Premises at such time as Landlord
is able to deliver the same, which date shall then be deemed the Term
Commencement Date. Tenant shall not be liable for any Rent (defined below) for
any period prior to the Term Commencement Date. Tenant acknowledges that Tenant
has inspected and accepts the Premises in their present condition, "as is," and
as suitable for, the Permitted Use (as defined below), and for Tenant's intended
operations in the Premises. Tenant agrees that the Premises and other
improvements are in good and satisfactory condition as of when possession was
taken. Tenant further acknowledges that no representations as to the condition
or repair of the Premises nor promises to alter, remodel or improve the Premises
have been made by Landlord or any agents of Landlord unless such are expressly
set forth in this Lease. Upon Landlord's request, Tenant shall promptly execute
and return to Landlord a "Start-Up Letter" in which Tenant shall agree, among
other things, to acceptance of the Premises and to the determination of the Term
Commencement Date, in accordance with the terms of this Lease, but Tenant's
failure or refusal to do so shall not negate Tenant's acceptance of the Premises
or affect determination of the Term Commencement Date.

B. Construction of Improvements. If this Lease pertains to a Building to be
constructed or improvements to be constructed within a Building, the provisions
of this Paragraph 2.B. shall apply in lieu of the provisions of Paragraph 2.A.
above and the term commencement date ("Term Commencement Date") shall be the
earlier of the date on which: (1) Tenant takes possession of some or all of the
Premises; or (2) the improvements to be constructed or performed in the Premises
by Landlord (if any) shall have been substantially completed in accordance with
the plans and specifications, if any, described on Exhibit C and Tenant's taking
of possession of the Premises or any part thereof shall constitute Tenant's
confirmation of substantial completion for all purposes hereof, whether or not
substantial completion of the Building or Project shall have occurred. If for
any reason Landlord cannot deliver possession of the Premises to Tenant on the
scheduled Term Commencement Date, Landlord shall not be subject to any liability
therefor, nor shall Landlord be in default hereunder nor shall such failure
affect the validity of this Lease, and Tenant agrees to accept possession of the
Premises at such time as such improvements have been substantially completed,
which date shall then be deemed the Term Commencement Date. Tenant shall not be
liable for any Rent for any period prior to the Term Commencement Date (but
without affecting any obligations of Tenant under any improvement agreement
appended to this Lease). In the event of any dispute as to substantial
completion of work performed or required to be performed by Landlord, the
certificate of Landlord's architect or general contractor shall be conclusive.
Substantial completion shall have occurred notwithstanding Tenant's submission
of a punchlist to Landlord, which Tenant shall submit, if at all, within three
(3) business days after the Term Commencement Date or otherwise in accordance
with any improvement agreement appended to this Lease. Upon Landlord's request,
Tenant shall promptly execute and return to Landlord a "Start-Up Letter" in
which Tenant shall agree, among other things, to acceptance of the Premises and
to the determination of the Term Commencement Date, in accordance with the terms
of this Lease, but Tenant's failure or refusal to do so shall not negate
Tenant's acceptance of the Premises or affect determination of the Term
Commencement Date.

                                     3. TERM

     The term of this Lease (the "Term") shall commence on the Term Commencement
Date and continue in full force and effect for the number of months specified as
the Length of Term in the Basic Lease Information or until this Lease is
terminated as otherwise provided herein. If the Term Commencement Date is a date
other than the first day of the calendar month, the Term shall be the number of
months of the Length of Term in addition to the remainder of the calendar month
following the Term Commencement Date.

                                     4. USE

A. General. Tenant shall use the Premises for the permitted use specified in the
Basic Lease information ("Permitted Use") and for no other use or purpose.
Tenant shall control Tenant's employees, agents, customers, visitors, invitees,
licensees, contractors, assignees and subtenants (collectively, "Tenant's
Parties") in such a manner that Tenant and Tenant's Parties cumulatively do not
exceed the occupant density (the "Occupancy Density") or the parking density
(the "Parking Density") specified in the Basic Lease Information at any time.
Tenant shall pay the Parking Charge specified in the Basic Lease Information as
Additional Rent (as hereinafter defined) hereunder. So long as Tenant is
occupying the Premises, Tenant and Tenant's Parties shall have the nonexclusive
right to use, in common with other parties occupying the Building or Project,
the parking areas, driveways and other common areas of the Building and Project,
subject to the terms of this Lease and such rules and regulations as Landlord
may from time to time prescribe. Landlord reserves the right, without notice or
liability to Tenant, and without the same constituting an actual or constructive
eviction, to alter or modify the common areas from time to time including the
location and configuration thereof, and the amenities and facilities which
Landlord may determine to provide from time to time.

B. Limitations. Tenant shall not permit any odors, smoke, dust, gas, substances,
noise or vibrations to emanate from the Premises or from any portion of the
common areas as a result of Tenant's or any Tenant's Party's use thereof, nor
take any action which would constitute a nuisance or would disturb, obstruct or
endanger any other tenants or occupants of the Building or Project or elsewhere,
or interfere with their use of their respective premises or common areas.
Storage outside the Premises of materials, vehicles or any other

                                       3
<PAGE>

items is prohibited. Tenant shall not use or allow the Premises to be used for
any immoral, improper or unlawful purpose, nor shall Tenant cause or maintain or
permit any nuisance in, on or about the Premises. Tenant shall not commit or
suffer the commission of any waste in, on or about the Premises. Tenant shall
not allow any sale by auction upon the Premises, or place any loads upon the
floors, walls or ceilings which could endanger the structure, or place any
harmful substances in the drainage system of the Building or Project. No waste,
materials or refuse shall be dumped upon or permitted to remain outside the
Premises. Landlord shall not be responsible to Tenant for the non-compliance by
any other tenant or occupant of the Building or Project with any of the
above-referenced rules or any other terms or provisions of such tenant's or
occupant's lease or other contract.

C. Compliance with Regulations. By entering the Premises, Tenant accepts the
Premises in the condition existing as of the date of such entry. Tenant shall at
its sole cost and expense strictly comply with all existing or future applicable
municipal, state and federal and other governmental statutes, rules,
requirements, regulations, laws and ordinances, including zoning ordinances and
regulations, and covenants, easements and restrictions of record governing and
relating to the use, occupancy or possession of the Premises, to Tenant's use of
the common areas, or to the use, storage, generation or disposal of Hazardous
Materials (hereinafter defined) (collectively "Regulations"). Tenant shall at
its sole cost and expense obtain any and all licenses or permits necessary for
Tenant's use of the Premises. Tenant shall at its sole cost and expense promptly
comply with the requirements of any board of fire underwriters or other similar
body now or hereafter constituted. Tenant shall not do or permit anything to be
done in, on, under or about the Project or bring or keep anything which will in
any way increase the rate of any insurance upon the Premises, Building or
Project or upon any contents therein or cause a cancellation of said insurance
or otherwise affect said insurance in any manner. Tenant shall indemnify, defend
(by counsel reasonably acceptable to Landlord), protect and hold Landlord
harmless from and against any loss, cost, expense, damage, attorneys' fees or
liability arising out of the failure of Tenant to comply with any Regulation.
Tenant's obligations pursuant to the foregoing indemnity shall survive the
expiration or earlier termination of this Lease.

D. Hazardous Materials, As used in this Lease, "Hazardous Materials" shall
include, but not be limited to, hazardous, toxic and radioactive materials and
those substances defined as "hazardous substances," "hazardous materials,"
"hazardous wastes," "toxic substances," or other similar designations in any
Regulation. Tenant shall not cause, or allow any of Tenant's Parties to cause,
any Hazardous Materials to be handled, used, generated, stored, released or
disposed of in, on, under or about the Premises, the Building or the Project or
surrounding land or environment in violation of any Regulations. Tenant must
obtain Landlord's written consent prior to the introduction of any Hazardous
Materials onto the Project. Notwithstanding the foregoing, Tenant may handle,
store, use and dispose of products containing small quantities of Hazardous
Materials for "general office purposes" (such as toner for copiers) to the
extent customary and necessary for the Permitted Use of the Premises; provided
that Tenant shall always handle, store, use, and dispose of any such Hazardous
Materials in a safe and lawful manner and never allow such Hazardous Materials
to contaminate the Premises, Building, or Project or surrounding land or
environment. Tenant shall immediately notify Landlord in writing of any
Hazardous Materials' contamination of any portion of the Project of which Tenant
becomes aware, whether or not caused by Tenant. Landlord shall have the right at
all reasonable times to inspect the Premises and to conduct tests and
investigations to determine whether Tenant is in compliance with the foregoing
provisions, the costs of all such inspections, tests and investigations to be
borne by Tenant. Tenant shall indemnify, defend (by counsel reasonably
acceptable to Landlord), protect and hold Landlord harmless from and against any
and all claims, liabilities, losses, costs, loss of rents, liens, damages,
injuries or expenses (including attorneys' and consultants' fees and court
costs), demands, causes of action, or judgments directly or indirectly arising
out of or related to the use, generation, storage, release, or disposal of
Hazardous Materials by Tenant or any of Tenant's Parties in, on, under or about
the Premises, the Building or the Project or surrounding land or environment,
which indemnity shall include, without limitation, damages for personal or
bodily injury, property damage, damage to the environment or natural resources
occurring on or off the Premises, losses attributable to diminution in value or
adverse effects on marketability, the cost of any investigation, monitoring,
government oversight, repair, removal, remediation, restoration, abatement, and
disposal, and the preparation of any closure or other required plans, whether
such action is required or necessary prior to or following the expiration or
earlier termination of this Lease. Neither the consent by Landlord to the use,
generation, storage, release or disposal of Hazardous Materials nor the strict
compliance by Tenant with all laws pertaining to Hazardous Materials shall
excuse Tenant from Tenant's obligation of indemnification pursuant to this
Paragraph 4.D. Tenant's obligations pursuant to the foregoing indemnity shall
survive the expiration or earlier termination of this Lease.

                            5. RULES AND REGULATIONS

     Tenant shall faithfully observe and comply with the building rules and
regulations attached hereto as Exhibit A and any other rules and regulations and
any modifications or additions thereto which Landlord may from time to time
prescribe in writing for the purpose of maintaining the proper care,
cleanliness, safety, traffic flow and general order of the Premises or the
Building or Project. Tenant shall cause Tenant's Parties to comply with such
rules and regulations. Landlord shall not be responsible to Tenant for the
non-compliance by any other tenant or occupant of the Building or Project with
any of such rules and regulations, any other tenant's or occupant's lease or any
Regulations.

                                     6. RENT

A. Base Rent. Tenant shall pay to Landlord and Landlord shall receive, without
notice or demand throughout the Term, Base Rent as specified in the Basic Lease
Information, payable in monthly installments in advance on or before the first
day of each calendar month, in lawful money of the United States, without
deduction or offset whatsoever, at the Remittance Address specified in the Basic
Lease Information or to such other place as Landlord may from time to time
designate in writing. Base Rent for the first full month of the Term shall be
paid by Tenant upon Tenant's execution of this Lease. If the obligation for
payment of Base Rent commences on a day other than the first day of a month,
then Base Rent shall be prorated and the prorated installment shall be paid on
the first day of the calendar month next succeeding the Term Commencement Date.
The Base Rent payable by Tenant hereunder is subject to adjustment as provided
elsewhere in this Lease, as applicable. As used herein, the term "Base Rent"
shall mean the Base Rent specified in the Basic Lease Information as it may be
so adjusted from time to time.

B. Additional Rent. All monies other than Base Rent required to be paid by
Tenant hereunder, including, but not limited to, Tenant's Proportionate Share of
Operating Expenses as specified in Paragraph 7 of this Lease charges to be paid
by Tenant under Paragraph 15, the interest and late charge described in
Paragraphs 26.C. and D., and any monies spent by Landlord pursuant to Paragraph
30, shall be considered additional rent ("Additional Rent"). "Rent" shall mean
Base Rent and Additional Rent.

                              7. OPERATING EXPENSES

A. Operating Expenses. In addition to the Base Rent required to be paid
hereunder, beginning with the expiration of the Base Year specified in the Basic
Lease Information (the "Base Year"), Tenant shall pay as Additional Rent,
Tenant's Proportionate Share of the Building and/or Project (as applicable), as
defined in the Basic Lease Information, of increases in Operating Expenses
(defined below) over the Operating Expenses incurred by Landlord during the Base
Year (the "Base Year Operating Expenses"), in the manner set forth below. Tenant
shall pay the applicable Tenant's Proportionate Share of each such Operating
Expenses. Landlord and Tenant acknowledge that it the number of buildings which
constitute the Project increases or decreases, or if physical changes are made
to the Premises, Building or Project or the configuration of any thereof,
Landlord may at its discretion reasonably adjust Tenant's Proportionate Share of
the Building or Project to reflect the change. Landlord's determination of
Tenant's Proportionate Share of the Building and of the

                                       4
<PAGE>

Project shall be conclusive so long as it is reasonably and consistently
applied. "Operating Expenses" shall mean all expenses and costs of every kind
and nature which Landlord shall pay or become obligated to pay, because of or in
connection with the ownership, management, maintenance, repair, preservation,
replacement and operation of the Building or Project and its supporting
facilities and such additional facilities now and in subsequent years as may be
determined by Landlord to be necessary or desirable to the Building and/or
Project (as determined in a reasonable manner) other than those expenses and
costs which are specifically attributable to Tenant or which are expressly made
the financial responsibility of Landlord or specific tenants of the Building or
Project pursuant to this Lease. Operating Expenses shall include, but are not
limited to, the following:

           (1) Taxes. All real property taxes and assessments, possessory
           interest taxes, sales taxes, personal property taxes, business or
           license taxes or fees, gross receipts taxes, service payments in lieu
           of such taxes or fees, annual or periodic license or use fees,
           excises, transit charges, and other impositions, general and special,
           ordinary and extraordinary, unforeseen as well as foreseen, of any
           kind (including fees "in-lieu" of any such tax or assessment) which
           are now or hereafter assessed, levied, charged, confirmed, or imposed
           by any public authority upon the Building or Project, its operations
           or the Rent (or any portion or component thereof), or any tax,
           assessment or fee imposed in substitution, partially or totally, of
           any of the above. Operating Expenses shall also include any taxes,
           assessments, reassessments, or other fees or impositions with respect
           to the development, leasing, management, maintenance, alteration,
           repair, use or occupancy of the Premises, Building or Project or any
           portion thereof, including, without limitation, by or for Tenant, and
           all increases therein or reassessments thereof whether the increases
           or reassessments result from increased rate and/or valuation (whether
           upon a transfer of the Building or Project or any portion thereof or
           any interest therein or for any other reason). Operating Expenses
           shall not include inheritance or estate taxes imposed upon or
           assessed against the interest of any person in the Project, or taxes
           computed upon the basis of the net income of any owners of any
           interest in the Project. If it shall not be lawful for Tenant to
           reimburse Landlord for all or any part of such taxes, the monthly
           rental payable to Landlord under this Lease shall be revised to net
           Landlord the same net rental after imposition of any such taxes by
           Landlord as would have been payable to Landlord prior to the payment
           of any such taxes.

           (2) Insurance. All insurance premiums and costs, including, but not
           limited to, any deductible amounts, premiums and other costs of
           insurance incurred by Landlord, including for the insurance coverage
           set forth in Paragraph 8.A. herein.

           (3) Common Area Maintenance.

                   (a) Repairs, replacements, and general maintenance of and for
                   the Building and Project and public and common areas and
                   facilities of and comprising the Building and Project,
                   including, but not limited to, the roof and roof membrane,
                   windows, elevators, restrooms, conference rooms, health club
                   facilities, lobbies, mezzanines, balconies, mechanical rooms,
                   building exteriors, alarm systems, pest extermination,
                   landscaped areas, parking and service areas, driveways,
                   sidewalks, loading areas, fire sprinkler systems, sanitary
                   and storm sewer lines, utility services,
                   heating/ventilation/air conditioning systems, electrical,
                   mechanical or other systems, telephone equipment and wiring
                   servicing, plumbing, lighting, and any other items or areas
                   which affect the operation or appearance of the Building or
                   Project, which determination shall be at Landlord's
                   discretion, except for: those items expressly made the
                   financial responsibility of Landlord pursuant to Paragraph 10
                   hereof; those items to the extent paid for by the proceeds of
                   insurance; and those items attributable solely or jointly to
                   specific tenants of the Building or Project.

                   (b) Repairs, replacements, and general maintenance shall
                   include the cost of any capital improvements made to or
                   capital assets acquired for the Project or Building that in
                   Landlord's discretion may reduce any other Operating
                   Expenses, including present or future repair work, are
                   reasonably necessary for the health and safety of the
                   occupants of the Building or Project, or are required to
                   comply with any Regulation, such costs or allocable portions
                   thereof to be amortized over such reasonable period as
                   Landlord shall determine, together with interest on the
                   unamortized balance at the publicly announced "prime rate"
                   charged by Wells Fargo Bank, N.A. (San Francisco) or its
                   successor at the time such improvements or capital assets are
                   constructed or acquired, plus two (2) percentage points, or
                   in the absence of such prime rate, then at the U.S. Treasury
                   six-month market note (or bond, if so designated) rate as
                   published by any national financial publication selected by
                   Landlord, plus four (4) percentage points, but in no event
                   more than the maximum rate permitted by law, plus reasonable
                   financing charges.

                   (c) Payment under or for any easement, license, permit,
                   operating agreement, declaration, restrictive covenant or
                   instrument relating to the Building or Project.

                   (d) All expenses and rental related to services and costs of
                   supplies, materials and equipment used in operating, managing
                   and maintaining the Premises, Building and Project, the
                   equipment therein and the adjacent sidewalks, driveways,
                   parking and service areas, including, without limitation,
                   expenses related to service agreements regarding security,
                   fire and other alarm systems, janitorial services, window
                   cleaning, elevator maintenance, Building exterior
                   maintenance, landscaping and expenses related to the
                   administration, management and operation of the Project,
                   including without limitation salaries, wages and benefits and
                   management office rent.

                   (e) The cost of supplying any services and utilities which
                   benefit all or a portion of the Premises, Building or
                   Project, including without limitation services and utilities
                   provided pursuant to Paragraph 15 hereof.

                   (f) Legal expenses and the cost of audits by certified public
                   accountants; provided, however, that legal expenses
                   chargeable as Operating Expenses shall not include the cost
                   of negotiating leases, collecting rents, evicting tenants nor
                   shall it include costs incurred in legal proceedings with or
                   against any tenant or to enforce the provisions of any lease.

                   (g) A management and accounting cost recovery fee equal to
                   five percent (5%) of the sum of the Project's base rents and
                   Operating Expenses to the extent not included in such base
                   rents (other than such management and accounting fee).

If the rentable area of the Building and/or Project is not fully occupied during
any fiscal year of the Term as determined by Landlord, an adjustment may be made
in Landlord's discretion in computing the Operating Expenses for such year so
that Tenant pays an equitable portion of all variable items (e.g., utilities,
janitorial services and other component expenses that are affected by variations
in occupancy levels) of Operating Expenses, as reasonably determined by
Landlord; provided, however, that in no event shall Landlord be entitled to
collect in excess of one hundred percent (100%) of the total Operating Expenses
from all of the tenants in the Building or Project, as the case may be.

Operating Expenses shall not include the cost of providing tenant improvements
or other specific costs incurred for the account of, separately billed to and
paid by specific tenants of the Building or Project, the initial construction
cost of the Building, or debt service on any mortgage or deed of trust recorded
with respect to the Project other than pursuant to Paragraph 7.A.(3)(b) above.
Notwithstanding anything herein to the contrary, in any instance wherein
Landlord, in Landlord's sole discretion, deems Tenant to be responsible for any

                                       5
<PAGE>

amounts greater than Tenant's Proportionate Share, Landlord shall have the right
to allocate costs in any manner Landlord deems appropriate.

The above enumeration of services and facilities shall not be deemed to impose
an obligation on Landlord to make available or provide such services or
facilities except to the extent if any that Landlord has specifically agreed
elsewhere in this Lease to make the same available or provide the same. Without
limiting the generality of the foregoing, Tenant acknowledges and agrees that it
shall be responsible for providing adequate security for its use of the
Premises, the Building and the Project and that Landlord shall have no
obligation or liability with respect thereto, except to the extent if any that
Landlord has specifically agreed elsewhere in this Lease to provide the same.

B. Payment of Estimated Operating Expenses. "Estimated Operating Expenses" for
any particular year shall mean Landlord's estimate of the Operating Expenses for
such fiscal year made with respect to such fiscal year as hereinafter provided.
Landlord shall have the right from time to time to revise its fiscal year and
interim accounting periods so long as the periods as so revised are reconciled
with prior periods in a reasonable manner. During the last month of each fiscal
year during the Term, or as soon thereafter as practicable, Landlord shall give
Tenant written notice of the Estimated Operating Expenses for the ensuing fiscal
year. Tenant shall pay Tenant's Proportionate Share of the difference between
Estimated Operating Expenses and Base Year Operating Expenses with installments
of Base Rent for the fiscal year to which the Estimated Operating Expenses
applies in monthly installments on the first day of each calendar month during
such year, in advance. Such payment shall be construed to be Additional Rent for
all purposes hereunder. If at any time during the course of the fiscal year,
Landlord determines that Operating Expenses are projected to vary from the then
Estimated Operating Expenses by more than five percent (5%), Landlord may, by
written notice to Tenant, revise the Estimated Operating Expenses for the
balance of such fiscal year, and Tenant's monthly installments for the remainder
of such year shall be adjusted so that by the end of such fiscal year Tenant has
paid to Landlord Tenant's Proportionate Share of the revised difference between
Estimated Operating Expenses and Base Year Operating Expenses for such year,
such revised installment amounts to be Additional Rent for all purposes
hereunder.

C. Computation of Operating Expense Adjustment. "Operating Expense Adjustment"
shall mean the difference between Estimated Operating Expenses and actual
Operating Expenses for any fiscal year, over Base Year Operating Expenses,
determined as hereinafter provided. Within one hundred twenty (120) days after
the end of each fiscal year, or as soon thereafter as practicable, Landlord
shall deliver to Tenant a statement of actual Operating Expenses for the fiscal
year just ended, accompanied by a computation of Operating Expense Adjustment.
If such statement shows that Tenant's payment based upon Estimated Operating
Expenses is less than Tenant's Proportionate Share of actual increases in
Operating Expenses over the Base Year Operating Expenses, then Tenant shall pay
to Landlord the difference within twenty (20) days after receipt of such
statement, such payment to constitute Additional Rent for all purposes
hereunder. If such statement shows that Tenant's payments of Estimated Operating
Expenses exceed Tenant's Proportionate Share of actual increases in Operating
Expenses over the Base Year Operating Expenses, then (provided that Tenant is
not in default under this Lease) Landlord shall pay to Tenant the difference
within twenty (20) days after delivery of such statement to Tenant. If this
Lease has been terminated or the Term hereof has expired prior to the date of
such statement, then the Operating Expense Adjustment shall be paid by the
appropriate party within twenty (20) days after the date of delivery of the
statement. Tenant's obligation to pay increases in Operating Expenses over the
Base Year Operating Expenses shall commence on January 1 of the year succeeding
the Base Year. Should this Lease terminate at any time other than the last day
of the fiscal year, Tenant's Proportionate Share of the Operating Expense
Adjustment shall be prorated based on a month of 30 days and the number of
calendar months during such fiscal year that this Lease is in effect. Tenant
shall in no event be entitled to any credit if Operating Expenses in any year
are less than Base Year Operating Expenses. Notwithstanding anything to the
contrary contained in Paragraph 7.A or 7.B, Landlord's failure to provide any
notices or statements within the time periods specified in those paragraphs
shall in no way excuse Tenant from its obligation to pay Tenant's Proportionate
Share of increases in Operating Expenses.

D. Gross Lease. This shall be a gross Lease; however, it is intended that Base
Rent shall be paid to Landlord absolutely net of all costs and expenses other
than Operating Expenses each year equal to Tenant's Proportionate Share of Base
Year Operating Expenses, except as otherwise specifically provided to the
contrary in this Lease. The provisions for payment of increases in Operating
Expenses and the Operating Expense Adjustment are intended to pass on to Tenant
and reimburse Landlord for all costs and expenses of the nature described in
Paragraph 7.A. incurred in connection with the ownership, management,
maintenance, repair, preservation, replacement and operation of the Building
and/or Project and its supporting facilities and such additional facilities, in
excess of the Base Year Operating Expenses, now and in subsequent years as may
be determined by Landlord to be necessary or desirable to the Building and/or
Project.

E. Tenant Audit. If Tenant shall dispute the amount set forth in any statement
provided by Landlord under Paragraph 7.B. or 7.C. above, Tenant shall have the
right, not later than twenty (20) days following receipt of such statement and
upon the condition that Tenant shall first deposit with Landlord the full amount
in dispute, to cause Landlord's books and records with respect to Operating
Expenses for such fiscal year to be audited by certified public accountants
selected by Tenant and subject to Landlord's reasonable right of approval. The
Operating Expense Adjustment shall be appropriately adjusted on the basis of
such audit. If such audit discloses a liability for a refund in excess of ten
percent (10%) of Tenant's Proportionate Share of the Operating Expenses
previously reported, the cost of such audit shall be borne by Landlord;
otherwise the cost of such audit shall be paid by Tenant. If Tenant shall not
request an audit in accordance with the provisions of this Paragraph 7.E. within
twenty (20) days after receipt of Landlord's statement provided pursuant to
Paragraph 7.B. or 7.C., such statement shall be final and binding for all
purposes hereof.

                        8. INSURANCE AND INDEMNIFICATION

A. Landlord's Insurance. All insurance maintained by Landlord shall be for the
sole benefit of Landlord and under Landlord's sole control.

          (1) Property Insurance. Landlord agrees to maintain property insurance
          insuring the Building against damage or destruction due to risk
          including fire, vandalism, and malicious mischief in an amount not
          less than the replacement cost thereof, in the form and with
          deductibles and endorsements as selected by Landlord. At its election,
          Landlord may instead (but shall have no obligation to) obtain "All
          Risk" coverage, and may also obtain earthquake, pollution, and/or
          flood insurance in amounts selected by Landlord.

          (2) Optional Insurance. Landlord, at Landlord's option, may also (but
          shall have no obligation to) carry insurance against loss of rent, in
          an amount equal to the amount of Base Rent and Additional Rent that
          Landlord could be required to abate to all Building tenants in the
          event of condemnation or casualty damage for a period of twelve (12)
          months. Landlord may also (but shall have no obligation to) carry such
          other insurance as Landlord may deem prudent or advisable, including,
          without limitation, liability insurance in such amounts and on such
          terms as Landlord shall determine. Landlord shall not be obligated to
          insure, and shall have no responsibility whatsoever for any damage to,
          any furniture, machinery, goods, inventory or supplies, or other
          personal property or fixtures which Tenant may keep or maintain in the
          Premises, or any leasehold improvements, additions or alterations
          within the Premises.

          (3)

                                       6
<PAGE>

B. Tenant's Insurance,

          (1) Property Insurance. Tenant shall procure at Tenant's sole cost and
          expense and keep in effect from the date of this Lease and at all
          times until the end of the Term, insurance on all personal property
          and fixtures of Tenant and all improvements, additions or alterations
          made by or for Tenant to the Premises on an "All Risk" basis, insuring
          such property for the full replacement value of such property.

          (2) Liability Insurance. Tenant shall procure at Tenant's sole cost
          and expense and keep in effect from the date of this Lease and at all
          times until the end of the Term Commercial General Liability insurance
          covering bodily injury and property damage liability occurring in or
          about the Premises or arising out of the use and occupancy of the
          Premises and the Project, and any part of either, and any areas
          adjacent thereto, and the business operated by Tenant or by any other
          occupant of the Premises. Such insurance shall include contractual
          liability insurance coverage insuring all of Tenant's indemnity
          obligations under this Lease. Such coverage shall have a minimum
          combined single limit of liability of at least Two Million Dollars
          ($2,000,000.00), and a minimum general aggregate limit of Three
          Million Dollars ($3,000,000.00) with an "Additional Insured --
          Managers or Lessors of Premises Endorsement." All such policies shall
          be written to apply to all bodily injury (including death), property
          damage or loss, personal and advertising injury and other covered
          loss, however occasioned, occurring during the policy term, shall be
          endorsed to add Landlord and any party holding an interest to which
          this Lease may be subordinated as an additional insured, and shall
          provide that such coverage shall be "primary" and non-contributing
          with any insurance maintained by Landlord, which shall be excess
          insurance only. Such coverage shall also contain endorsements
          including employees as additional insureds if not covered by Tenant's
          Commercial General Liability insurance. All such insurance shall
          provide for the severability of interests of insureds; and shall be
          written on an "occurrence" basis, which shall afford coverage for all
          claims based on acts, omissions, injury and damage, which occurred or
          arose (or the onset of which occurred or arose) in whole or in part
          during the policy period.

          (3) Workers' Compensation and Employers' Liability Insurance. Tenant
          shall carry Workers' Compensation Insurance as required by any
          Regulation, throughout the Term at Tenant's sole cost and expense.
          Tenant shall also carry Employers' Liability Insurance in amounts not
          less than One Million Dollars ($1,000,000) each accident for bodily
          injury by accident; One Million Dollars ($1,000,000) policy limit for
          bodily injury by disease; and One Million Dollars ($1,000,000) each
          employee for bodily injury by disease, throughout the Term at Tenant's
          sole cost and expense.

          (4) General Insurance Requirements. All coverages described in this
          Paragraph 8.B. shall be endorsed to (i) provide Landlord with thirty
          (30) days' notice of cancellation or change in terms; and (ii) waive
          all rights of subrogation by the insurance carrier against Landlord.
          If at any time during the Term the amount or coverage of insurance
          which Tenant is required to carry under this Paragraph 8.B. is, in
          Landlord's reasonable judgment, materially less than the amount or
          type of insurance coverage typically carried by owners or tenants of
          properties located in the general area in which the Premises are
          located which are similar to and operated for similar purposes as the
          Premises or if Tenant's use of the Premises should change with or
          without Landlord's consent, Landlord shall have the right to require
          Tenant to increase the amount or change the types of insurance
          coverage required under this Paragraph 8.B. All insurance policies
          required to be carried by Tenant under this Lease shall be written by
          companies rated A X or better in "Best's Insurance Guide" and
          authorized to do business in the State of California. In any event
          deductible amounts under all insurance policies required to be carried
          by Tenant under this Lease shall not exceed Five Thousand Dollars
          ($5,000.00) per occurrence. Tenant shall deliver to Landlord on or
          before the Term Commencement Date, and thereafter at least thirty (30)
          days before the expiration dates of the expired policies, certified
          copies of Tenant's insurance policies, or a certificate evidencing the
          same issued by the insurer thereunder; and, if Tenant shall fail to
          procure such insurance, or to deliver such policies or certificates,
          Landlord may, at Landlord's option and in addition to Landlord's other
          remedies in the event of a default by Tenant hereunder, procure the
          same for the account of Tenant, and the cost thereof shall be paid to
          Landlord as Additional Rent.

C. Indemnification. Tenant shall indemnify, defend by counsel reasonably
acceptable to Landlord, protect and hold Landlord harmless from and against any
and all claims, liabilities, losses, costs, loss of rents, liens, damages,
injuries or expenses, including reasonable attorneys' and consultants' fees and
court costs, demands, causes of action, or judgments, directly or indirectly
arising out of or related to (1) claims of injury to or death of persons or
damage to property occurring or resulting directly or indirectly from the use or
occupancy of the Premises, Building or Project by Tenant or Tenant's Parties, or
from activities or failures to act of Tenant or Tenant's Parties; (2) claims
arising from work or labor performed, or for materials or supplies furnished to
or at the request or for the account of Tenant in connection with performance of
any work done for the account of Tenant within the Premises or Project; (3)
claims arising from any breach or default on the part of Tenant in the
performance of any covenant contained in this Lease; and (4) claims arising from
the negligence or intentional acts or omissions of Tenant or Tenant's Parties.
The foregoing indemnity by Tenant shall not be applicable to claims to the
extent arising from the gross negligence or willful misconduct of Landlord.
Landlord shall not be liable to Tenant and Tenant hereby waives all claims
against Landlord for any injury or damage to any person or property in or about
the Premises, Building or Project by or from any cause whatsoever (other than
Landlord's gross negligence or willful misconduct) and, without limiting the
generality of the foregoing, whether caused by water leakage of any character
from the roof, walls, basement or other portion of the Premises, Building or
Project, or caused by gas, fire, oil or electricity in, on or about the
Premises, Building or Project. The provisions of this Paragraph shall survive
the expiration or earlier termination of this Lease.

                            9. WAIVER OF SUBROGATION

     To the extent permitted by law and without affecting the coverage provided
by insurance to be maintained hereunder or any other rights or remedies,
Landlord and Tenant each waive any right to recover against the other for: (a)
damages for injury to or death of persons; (b) damages to property, including
personal property; (c) damages to the Premises or any part thereof; and (d)
claims arising by reason of the foregoing due to hazards covered by insurance
maintained or required to be maintained pursuant to this Lease to the extent of
proceeds recovered therefrom, or proceeds which would have been recoverable
therefrom in the case of the failure of any party to maintain any insurance
coverage required to be maintained by such party pursuant to this Lease. This
provision is intended to waive fully, any rights and/or claims arising by reason
of the foregoing, but only to the extent that any of the foregoing damages
and/or claims referred to above are covered or would be covered, and only to the
extent of such coverage, by insurance actually carried or required to be
maintained pursuant to this Lease by either Landlord or Tenant. This provision
is also intended to waive fully, and for the benefit of each party, any rights
and/or claims which might give rise to a right of subrogation on any insurance
carrier. Subject to all qualifications of this Paragraph 9, Landlord waives its
rights as specified in this Paragraph 9 with respect to any subtenant that it
has approved pursuant to Paragraph 21 but only in exchange for the written
waiver of such rights to be given by such subtenant to Landlord upon such
subtenant taking possession of the Premises or a portion thereof. Each party
shall cause each insurance policy obtained by it to provide that the insurance
company waives all right of recovery by way of subrogation against either party
in connection with any damage covered by any policy.

                     10. LANDLORD'S REPAIRS AND MAINTENANCE

     Landlord shall at Landlord's expense maintain in good repair, reasonable
wear and tear excepted, the structural soundness of the roof, foundations and
exterior walls of the Building The term "exterior walls" as used herein shall
not include windows, glass or plate glass,

                                       7
<PAGE>

doors, special store fronts or office entries. Any damage caused by or repairs
necessitated by any negligence or act of Tenant or Tenant's Parties may be
repaired by Landlord at Landlord's option and Tenant's expense. Tenant shall
immediately give Landlord written notice of any defect or need of repairs in
such components of the Building for which Landlord is responsible, after which
Landlord shall have a reasonable opportunity and the right to enter the Premises
at all reasonable times to repair same. Landlord's liability with respect to any
defects, repairs, or maintenance for which Landlord is responsible under any of
the provisions of this Lease shall be limited to the cost of such repairs or
maintenance, and there shall be no abatement of rent and no liability of
Landlord by reason of any injury to or interference with Tenant's business
arising from the making of repairs, alterations or improvements in or to any
portion of the Premises, the Building or the Project or to fixtures,
appurtenances or equipment in the Building, except as provided in Paragraph 24.
By taking possession of the Premises, Tenant accepts them "as is," as being in
good order, condition and repair and the condition in which Landlord is
obligated to deliver them and suitable for the Permitted Use and Tenant's
intended operations in the Premises, whether or not any notice of acceptance is
given.

                      11. TENANT'S REPAIRS AND MAINTENANCE

     Tenant shall at all times during the Term at Tenant's expense maintain all
parts of the Premises and such portions of the Building as are within the
exclusive control of Tenant in a first-class, good, clean and secure condition
and promptly make all necessary repairs and replacements, as determined by
Landlord, with materials and workmanship of the same character, kind and quality
as the original. Notwithstanding anything to the contrary contained herein,
Tenant shall, at its expense, promptly repair any damage to the Premises or the
Building or Project resulting from or caused by any negligence or act of Tenant
or Tenant's Parties.

                                 12. ALTERATIONS

A. Tenant shall not make, or allow to be made, any alterations, physical
additions, improvements or partitions, including without limitation the
attachment of any fixtures or equipment, in, about or to the Premises
("Alterations") without obtaining the prior written consent of Landlord, which
consent shall not be unreasonably withheld with respect to proposed Alterations
which: (a) comply with all applicable Regulations; (b) are, in Landlord's
opinion, compatible with the Building or the Project and its mechanical,
plumbing, electrical, heating/ventilation/air conditioning systems, and will not
cause the Building or Project or such systems to be required to be modified to
comply with any Regulations (including, without limitation, the Americans With
Disabilities Act); and (c) will not interfere with the use and occupancy of any
other portion of the Building or Project by any other tenant or its invitees.
Specifically, but without limiting the generality of the foregoing, Landlord
shall have the right of written consent for all plans and specifications for the
proposed Alterations, construction means and methods, all appropriate permits
and licenses, any contractor or subcontractor to be employed on the work of
Alterations, and the time for performance of such work, and may impose rules and
regulations for contractors and subcontractors performing such work. Tenant
shall also supply to Landlord any documents and information reasonably requested
by Landlord in connection with Landlord's consideration of a request for
approval hereunder. Tenant shall cause all Alterations to be accomplished in a
first-class, good and workmanlike manner, and to comply with all applicable
Regulations and Paragraph 27 hereof. Tenant shall at Tenant's sole expense,
perform any additional work required under applicable Regulations due to the
Alterations hereunder. No review or consent by Landlord of or to any proposed
Alteration or additional work shall constitute a waiver of Tenant's obligations
under this Paragraph 12, nor constitute any warranty or representation that the
same complies with all applicable Regulations, for which Tenant shall at all
times be solely responsible. Tenant shall reimburse Landlord for all costs which
Landlord may incur in connection with granting approval to Tenant for any such
Alterations, including any costs or expenses which Landlord may incur in
electing to have outside architects and engineers review said plans and
specifications, and shall pay Landlord an administration fee of fifteen percent
(15%) of the cost of the Alterations as Additional Rent hereunder. All such
Alterations shall remain the property of Tenant until the expiration or earlier
termination of this Lease, at which time they shall be and become the property
of Landlord; provided, however, that Landlord may, at Landlord's option, require
that Tenant, at Tenant's expense, remove any or all Alterations made by Tenant
and restore the Premises by the expiration or earlier termination of this Lease,
to their condition existing prior to the construction of any such Alterations.
All such removals and restoration shall be accomplished in a first-class and
good and workmanlike manner so as not to cause any damage to the Premises or
Project whatsoever. If Tenant fails to remove such Alterations or Tenant's trade
fixtures or furniture or other personal property, Landlord may keep and use them
or remove any of them and cause them to be stored or sold in accordance with
applicable law, at Tenant's sole expense. In addition to and wholly apart from
Tenant's obligation to pay Tenant's Proportionate Share of Operating Expenses,
Tenant shall be responsible for and shall pay prior to delinquency any taxes or
governmental service fees, possessory interest taxes, fees or charges in lieu of
any such taxes, capital levies, or other charges imposed upon, levied with
respect to or assessed against its fixtures or personal property, on the value
of Alterations within the Premises, and on Tenant's interest pursuant to this
Lease, or any increase in any of the foregoing based on such Alterations. To the
extent that any such taxes are not separately assessed or billed to Tenant,
Tenant shall pay the amount thereof as invoiced to Tenant by Landlord.

Notwithstanding the foregoing, at Landlord's option (but without obligation),
all or any portion of the Alterations shall be performed by Landlord for
Tenant's account and Tenant shall pay Landlord's estimate of the cost thereof
(including a reasonable charge for Landlord's overhead and profit) prior to
commencement of the work. In addition, at Landlord's election and
notwithstanding the foregoing, however, Tenant shall pay to Landlord the cost of
removing any such Alterations and restoring the Premises to their original
condition such cost to include a reasonable charge for Landlord's overhead and
profit as provided above, and such amount may be deducted from the Security
Deposit or any other sums or amounts held by Landlord under this Lease.

B. In compliance with Paragraph 27 hereof, at least ten (10) business days
before beginning construction of any Alteration, Tenant shall give Landlord
written notice of the expected commencement date of that construction to permit
Landlord to post and record a notice of non-responsibility. Upon substantial
completion of construction, if the law so provides, Tenant shall cause a timely
notice of completion to be recorded in the office of the recorder of the county
in which the Building is located.

                                    13. SIGNS

Tenant shall not place, install, affix, paint or maintain any signs, notices,
graphics or banners whatsoever or any window decor which is visible in or from
public view or corridors, the common areas or the exterior of the Premises or
the Building, in or on any exterior window or window fronting upon any common
areas or service area without Landlord's prior written approval which Landlord
shall have the right to withhold in its absolute and sole discretion; provided
that Tenant's name shall be included in any Building-standard door and directory
signage, if any, in accordance with Landlord's Building signage program,
including without limitation, payment by Tenant of any fee charged by Landlord
for maintaining such signage, which fee shall constitute Additional Rent
hereunder. Any installation of signs, notices, graphics or banners on or about
the Premises or Project approved by Landlord shall be subject to any Regulations
and to any other requirements imposed by Landlord. Tenant shall remove all such
signs or graphics by the expiration or any earlier termination of this Lease.
Such installations and removals shall be made in such manner as to avoid injury
to or defacement of the Premises, Building or Project and any other improvements
contained therein, and Tenant shall repair any injury or defacement including
without limitation discoloration caused by such installation or removal.

                                       8
<PAGE>

                         14. INSPECTION/POSTING NOTICES

After reasonable notice, except in emergencies where no such notice shall be
required, Landlord and Landlord's agents and representatives, shall have the
right to enter the Premises to inspect the same, to clean, to perform such work
as may be permitted or required hereunder, to make repairs, improvements or
alterations to the Premises, Building or Project or to other tenant spaces
therein, to deal with emergencies, to post such notices as may be permitted or
required by law to prevent the perfection of liens against Landlord's interest
in the Project or to exhibit the Premises to prospective tenants, purchasers,
encumbrancers or to others, or for any other purpose as Landlord may deem
necessary or desirable; provided, however, that Landlord shall use reasonable
efforts not to unreasonably interfere with Tenant's business operations. Tenant
shall not be entitled to any abatement of Rent by reason of the exercise of any
such right of entry. Tenant waives any claim for damages for any injury or
inconvenience to or interference with Tenant's business, any loss of occupancy
or quiet enjoyment of the Premises, and any other loss occasioned thereby.
Landlord shall at all times have and retain a key with which to unlock all of
the doors in, upon and about the Premises, excluding Tenant's vaults and safes
or special security areas (designated in advance), and Landlord shall have the
right to use any and all means which Landlord may deem necessary or proper to
open said doors in an emergency, in order to obtain entry to any portion of the
Premises, and any entry to the Premises or portions thereof obtained by Landlord
by any of said means, or otherwise, shall not be construed to be a forcible or
unlawful entry into, or a detainer of, the Premises, or an eviction, actual or
constructive, of Tenant from the Premises or any portions thereof. At any time
within six (6) months prior to the expiration of the Term or following any
earlier termination of this Lease or agreement to terminate this Lease, Landlord
shall have the right to erect on the Premises, Building and/or Project a
suitable sign indicating that the Premises are available for lease.

                           15. SERVICES AND UTILITIES

A. Provided Tenant shall not be in default hereunder, and subject to the
provisions elsewhere herein contained and to the rules and regulations of the
Building, Landlord shall furnish to the Premises during ordinary business hours
of generally recognized business days, to be determined by Landlord (but
exclusive, in any event, of Saturdays, Sundays and legal holidays), water for
lavatory and drinking purposes and electricity, heat and air conditioning as
usually furnished or supplied for use of the Premises for reasonable and normal
office use as of the date Tenant takes possession of the Premises as determined
by Landlord (but not including above-standard or continuous cooling for
excessive heat-generating machines, excess lighting or equipment), janitorial
services during the times and in the manner that such services are, in
Landlord's judgment, customarily furnished in comparable office buildings in the
immediate market area, and elevator service, which shall mean service either by
nonattended automatic elevators or elevators with attendants, or both, at the
option of Landlord. Tenant acknowledges that Tenant has inspected and accepts
the water, electricity, heat and air conditioning and other utilities and
services being supplied or furnished to the Premises as of the date Tenant takes
possession of the Premises, as being sufficient for use of the Premises for
reasonable and normal office use in their present condition, "as is," and
suitable for the Permitted Use, and for Tenant's intended operations in the
Premises. Landlord shall have no obligation to provide additional or after-hours
electricity, heating or air conditioning, but if Landlord elects to provide such
services at Tenant's request, Tenant shall pay to Landlord a reasonable charge
for such services as determined by Landlord. Tenant agrees to keep and cause to
be kept closed all window covering when necessary because of the sun's position,
and Tenant also agrees at all times to cooperate fully with Landlord and to
abide by all of the regulations and requirements which Landlord may prescribe
for the proper functioning and protection of electrical, heating, ventilating
and air conditioning systems. Wherever heat-generating machines, excess lighting
or equipment are used in the Premises which affect the temperature otherwise
maintained by the air conditioning system, Landlord reserves the right to
install supplementary air conditioning units in the Premises and the cost
thereof, including the cost of installation and the cost of operation and
maintenance thereof, shall be paid by Tenant to Landlord upon demand by
Landlord.

B. Tenant shall not without written consent of Landlord use any apparatus,
equipment or device in the Premises, including without limitation, computers,
electronic data processing machines, copying machines, and other machines, using
excess lighting or using electric current, water, or any other resource in
excess of or which will in any way increase the amount of electricity, water, or
any other resource being furnished or supplied for the use of the Premises for
reasonable and normal office use, in each case as of the date Tenant takes
possession of the Premises as determined by Landlord, or which will require
additions or alterations to or interfere with the Building power distribution
systems; nor connect with electric current, except through existing electrical
outlets in the Premises or water pipes, any apparatus, equipment or device for
the purpose of using electrical current, water, or any other resource. If Tenant
shall require water or electric current or any other resource in excess of that
being furnished or supplied for the use of the Premises as of the date Tenant
takes possession of the Premises as determined by Landlord, Tenant shall first
procure the written consent of Landlord which Landlord may refuse, to the use
thereof, and Landlord may cause a special meter to be installed in the Premises
so as to measure the amount of water, electric current or other resource
consumed for any such other use. Tenant shall pay directly to Landlord as an
addition to and separate from payment of Operating Expenses the cost of all such
additional resources, energy, utility service and meters (and of installation,
maintenance and repair thereof and of any additional circuits or other equipment
necessary to furnish such additional resources, energy, utility or service).
Landlord may add to the separate or metered charge a recovery of additional
expense incurred in keeping account of the excess water, electric current or
other resource so consumed. Landlord shall not be liable for any damages
directly or indirectly resulting from nor shall the Rent or any monies owed
Landlord under this Lease herein reserved be abated by reason of: (a) the
installation, use or interruption of use of any equipment used in connection
with the furnishing of any such utilities or services, or any change in the
character or means of supplying or providing any such utilities or services or
any supplier thereof; (b) the failure to furnish or delay in furnishing any such
utilities or services when such failure or delay is caused by acts of God or the
elements, labor disturbances of any character, or any other accidents or other
conditions beyond the reasonable control of Landlord or because of any
interruption of service due to Tenant's use of water, electric current or other
resource in excess of that being supplied or furnished for the use of the
Premises as of the date Tenant takes possession of the Premises; (c) the
inadequacy, limitation, curtailment, rationing or restriction on use of water,
electricity, gas or any other form of energy or any other service or utility
whatsoever serving the Premises or Project, whether by Regulation or otherwise;
or (d) the partial or total unavailability of any such utilities or services to
the Premises or the Building, whether by Regulation or otherwise; nor shall any
such occurrence constitute an actual or constructive eviction of Tenant.
Landlord shall further have no obligation to protect or preserve any apparatus,
equipment or device installed by Tenant in the Premises, including without
limitation by providing additional or after-hours heating or air conditioning.
Landlord shall be entitled to cooperate voluntarily and in a reasonable manner
with the efforts of national, state or local governmental agencies or utility
suppliers in reducing energy or other resource consumption. The obligation to
make services available hereunder shall be subject to the limitations of any
such voluntary, reasonable program. In addition, Landlord reserves the right to
change the supplier or provider of any such utility or service from time to
time. Tenant shall have no right to contract with or otherwise obtain any
electrical or other such service for or with respect to the Premises or Tenant's
operations therein from any supplier or provider of any such service. Tenant
shall cooperate with Landlord and any supplier or provider of such services
designated by Landlord from time to time to facilitate the delivery of such
services to Tenant at the Premises and to the Building and Project, including
without limitation allowing Landlord and Landlord's suppliers or providers, and
their respective agents and contractors, reasonable access to the Premises for
the purpose of installing, maintaining, repairing, replacing or upgrading such
service or any equipment or machinery associated therewith.

C. Tenant shall pay, upon demand, for all utilities furnished to the Premises,
or if not separately billed to or metered to Tenant, Tenant's Proportionate
Share of all charges jointly serving the Project in accordance with Paragraph 7.
All sums payable under this Paragraph 15 shall constitute Additional Rent
hereunder.

                                       9
<PAGE>

                                16. SUBORDINATION

Without the necessity of any additional document being executed by Tenant for
the purpose of effecting a subordination, this Lease shall be and is hereby
declared to 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
Premises and/or the land upon which the Premises and Project are situated, or
both; and (b) any mortgage or deed of trust which may now exist or be placed
upon the Building, the Project and/or the land upon which the Premises or the
Project are situated, or said ground leases or underlying leases, or Landlord's
interest or estate in any of said items which is specified as security.
Notwithstanding the foregoing, Landlord shall have the right to subordinate or
cause to be subordinated any such ground leases or underlying leases or any such
liens to this Lease. If any ground lease or underlying lease terminates for any
reason or any mortgage or deed of trust is foreclosed or a conveyance in lieu of
foreclosure is made for any reason, Tenant shall, notwithstanding any
subordination, attorn to and become the Tenant of the successor in interest to
Landlord provided that Tenant shall not be disturbed in its possession under
this Lease by such successor in interest so long as Tenant is not in default
under this Lease. Within ten (10) days after request by Landlord, Tenant shall
execute and deliver any additional documents evidencing Tenant's attornment or
the subordination of this Lease with respect to any such ground leases or
underlying leases or any such mortgage or deed of trust, in the form requested
by Landlord or by any ground landlord, mortgagee, or beneficiary under a deed of
trust, subject to such nondisturbance requirement If requested in writing by
Tenant, Landlord shall use commercially reasonable efforts to obtain a
subordination, nondisturbance and attornment agreement for the benefit of Tenant
reflecting the foregoing from any ground landlord, mortgagee or beneficiary, at
Tenant's expense, subject to such other terms and conditions as the ground
landlord, mortgagee or beneficiary may require.

                            17. FINANCIAL STATEMENTS

At the request of Landlord from time to time, Tenant shall provide to Landlord
Tenant's and any guarantor's current financial statements or other information
discussing financial worth of Tenant and any guarantor, which Landlord shall use
solely for purposes of this Lease and in connection with the ownership,
management, financing and disposition of the Project.

                            18. ESTOPPEL CERTIFICATE

Tenant agrees from time to time, within ten (10) days after request of Landlord,
to deliver to Landlord, or Landlord's designee, an estoppel certificate stating
that this Lease is in full force and effect, that this Lease has not been
modified (or stating all modifications, written or oral, to this Lease), the
date to which Rent has been paid, the unexpired portion of this Lease, that
there are no current defaults by Landlord or Tenant under this Lease (or
specifying any such defaults), that the leasehold estate granted by this Lease
is the sole interest of Tenant in the Premises and/or the land at which the
Premises are situated, and such other matters pertaining to this Lease as may be
reasonably requested by Landlord or any mortgagee, beneficiary, purchaser or
prospective purchaser of the Building or Project or any interest therein.
Failure by Tenant to execute and deliver such certificate shall constitute an
acceptance of the Premises and acknowledgment by Tenant that the statements
included are true and correct without exception. Tenant agrees that if Tenant
fails to execute and deliver such certificate within such ten (10) day period,
Landlord may execute and deliver such certificate on Tenant's behalf and that
such certificate shall be binding on Tenant. Landlord and Tenant intend that any
statement delivered pursuant to this Paragraph may be relied upon by any
mortgagee, beneficiary, purchaser or prospective purchaser of the Building or
Project or any interest therein. The parties agree that Tenant's obligation to
furnish such estoppel certificates in a timely fashion is a material inducement
for Landlord's execution of this Lease, and shall be an event of default
(without any cure period that might be provided under Paragraph 26.A(3) of this
Lease) if Tenant fails to fully comply or makes any material misstatement in any
such certificate.

                              19. SECURITY DEPOSIT

Tenant agrees to deposit with Landlord upon execution of this Lease, a security
deposit as stated in the Basic Lease Information (the "Security Deposit"), which
sum shall be held and owned by Landlord, without obligation to pay interest, as
security for the performance of Tenant's covenants and obligations under this
Lease. The Security Deposit is not an advance rental deposit or a measure of
damages incurred by Landlord in case of Tenant's default. Upon the occurrence of
any event of default by Tenant, Landlord may from time to time, without
prejudice to any other remedy provided herein or by law, use such fund as a
credit to the extent necessary to credit against any arrears of Rent or other
payments due to Landlord hereunder, and any other damage, injury, expense or
liability caused by such event of default, and Tenant shall pay to Landlord, on
demand, the amount so applied in order to restore the Security Deposit to its
original amount. Although the Security Deposit shall be deemed the property of
Landlord, any remaining balance of such deposit shall be returned by Landlord to
Tenant at such time after termination of this Lease that all of Tenant's
obligations under this Lease have been fulfilled, reduced by such amounts as may
be required by Landlord to remedy defaults on the part of Tenant in the payment
of Rent or other obligations of Tenant under this Lease, to repair damage to the
Premises, Building or Project caused by Tenant or any Tenant's Parties and to
clean the Premises. Landlord may use and commingle the Security Deposit with
other funds of Landlord.

                       20. LIMITATION OF TENANT'S REMEDIES

The obligations and liability of Landlord to Tenant for any default by Landlord
under the terms of this Lease are not personal obligations of Landlord or of the
individual or other partners of Landlord or its or their partners, directors,
officers, or shareholders, and Tenant agrees to look solely to Landlord's
interest in the Project for the recovery of any amount from Landlord, and shall
not look to other assets of Landlord nor seek recourse against the assets of the
individual or other partners of Landlord or its or their partners, directors,
officers or shareholders. Any lien obtained to enforce any such judgment and any
levy of execution thereon shall be subject and subordinate to any lien, mortgage
or deed of trust on the Project. Under no circumstances shall Tenant have the
right to offset against or recoup Rent or other payments due and to become due
to Landlord hereunder except as expressly provided in Paragraph 23.B. below,
which Rent and other payments shall be absolutely due and payable hereunder in
accordance with the terms hereof.

                          21. ASSIGNMENT AND SUBLETTING

 A.       (1) General. This Lease has been negotiated to be and is granted as an
          accommodation to Tenant. Accordingly, this Lease is personal to
          Tenant, and Tenant's rights granted hereunder do not include the right
          to assign this Lease or sublease the Premises, or to receive any
          excess, either in installments or lump sum, over the Rent which is
          expressly reserved by Landlord as hereinafter provided, except as
          otherwise expressly hereinafter provided. Tenant shall not assign or
          pledge this Lease or sublet the Premises or any part thereof, whether
          voluntarily or by operation of law, or permit the use or occupancy of
          the Premises or any part thereof by anyone other than Tenant, or
          suffer or permit any such assignment, pledge, subleasing or occupancy,
          without Landlord's prior written consent except as provided herein. If
          Tenant desires to assign this Lease or sublet any or all of the
          Premises, Tenant shall give Landlord written notice (the "Transfer
          Notice") at least sixty (60) days prior to the anticipated effective
          date of the proposed assignment or sublease, which shall contain all
          of the information reasonably requested by Landlord to address
          Landlord's decision criteria specified hereinafter. Landlord shall
          then have a period of thirty (30) days following receipt of the
          Transfer Notice to notify Tenant in writing that Landlord elects
          either: (i) to terminate this Lease as to the space so affected as of
          the date so requested by Tenant; or (ii) to consent to the proposed
          assignment or sublease, subject, however, to Landlord's prior written
          consent of the proposed assignee or subtenant and of any related
          documents or agreements associated with the assignment or sublease. If
          Landlord should fail to notify Tenant in writing of such election
          within said

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<PAGE>

          period, Landlord shall be deemed to have waived option (i) above, but
          written consent by Landlord of the proposed assignee or subtenant
          shall still be required. If Landlord does not exercise option (i)
          above, Landlord's consent to a proposed assignment or sublease shall
          not be unreasonably withheld. Consent to any assignment or subletting
          shall not constitute consent to any subsequent transaction to which
          this Paragraph 21 applies.

          (2) Conditions of Landlord's Consent. Without limiting the other
          instances in which it may be reasonable for Landlord to withhold
          Landlord's consent to an assignment or subletting, Landlord and Tenant
          acknowledge that it shall be reasonable for Landlord to withhold
          Landlord's consent in the following instances: if the proposed
          assignee does not agree to be bound by and assume the obligations of
          Tenant under this Lease in form and substance satisfactory to
          Landlord; the use of the Premises by such proposed assignee or
          subtenant would not be a Permitted Use or would violate any
          exclusivity or other arrangement which Landlord has with any other
          tenant or occupant or any Regulation or would increase the Occupancy
          Density or Parking Density of the Building or Project, or would
          otherwise result in an undesirable tenant mix for the Project as
          determined by Landlord; the proposed assignee or subtenant is not of
          sound financial condition as determined by Landlord in Landlord's sole
          discretion; the proposed assignee or subtenant is a governmental
          agency; the proposed assignee or subtenant does not have a good
          reputation as a tenant of property or a good business reputation; the
          proposed assignee or subtenant is a person with whom Landlord is
          negotiating to lease space in the Project or is a present tenant of
          the Project; the assignment or subletting would entail any Alterations
          which would lessen the value of the leasehold improvements in the
          Premises or use of any Hazardous Materials or other noxious use or use
          which may disturb other tenants of the Project; or Tenant is in
          default of any obligation of Tenant under this Lease, or Tenant has
          defaulted under this Lease on three (3) or more occasions during any
          twelve (12) months preceding the date that Tenant shall request
          consent. Failure by or refusal of Landlord to consent to a proposed
          assignee or subtenant shall not cause a termination of this Lease.
          Upon a termination under Paragraph 21.A.(1)(i), Landlord may lease the
          Premises to any party, including parties with whom Tenant has
          negotiated an assignment or sublease, without incurring any liability
          to Tenant. At the option of Landlord, a surrender and termination of
          this Lease shall operate as an assignment to Landlord of some or all
          subleases or subtenancies. Landlord shall exercise this option by
          giving notice of that assignment to such subtenants on or before the
          effective date of the surrender and termination. In connection with
          each request for assignment or subletting, Tenant shall pay to
          Landlord Landlord's standard fee for approving such requests, as well
          as all costs incurred by Landlord or any mortgagee or ground lessor in
          approving each such request and effecting any such transfer,
          including, without limitation, reasonable attorneys' fees.

B. Bonus Rent. Any Rent or other consideration realized by Tenant under any such
sublease or assignment in excess of the Rent payable hereunder, after
amortization of a reasonable brokerage commission incurred by Tenant, shall be
divided and paid, ten percent (10%) to Tenant, ninety percent (90%) to Landlord.
In any subletting or assignment undertaken by Tenant, Tenant shall diligently
seek to obtain the maximum rental amount available in the marketplace for
comparable space available for primary leasing.

C. Corporation. If Tenant is a corporation, a transfer of corporate shares by
sale, assignment, bequest, inheritance, operation of law or other disposition
(including such a transfer to or by a receiver or trustee in federal or state
bankruptcy, insolvency or other proceedings) resulting in a change in the
present control of such corporation or any of its parent corporations by the
person or persons owning a majority of said corporate shares, shall constitute
an assignment for purposes of this Lease.

D. Unincorporated Entity. If Tenant is a partnership, joint venture,
unincorporated limited liability company or other unincorporated business form,
a transfer of the interest of persons, firms or entities responsible for
managerial control of Tenant by sale, assignment, bequest, inheritance,
operation of law or other disposition, so as to result in a change in the
present control of said entity and/or of the underlying beneficial interests of
said entity and/or a change in the identity of the persons responsible for the
general credit obligations of said entity shall constitute an assignment for all
purposes of this Lease.

E. Liability. No assignment or subletting by Tenant, permitted or otherwise,
shall relieve Tenant of any obligation under this Lease or alter the primary
liability of the Tenant named herein for the payment of Rent or for the
performance of any other obligations to be performed by Tenant, including
obligations contained in Paragraph 25 with respect to any assignee or subtenant.
Landlord may collect rent or other amounts or any portion thereof from any
assignee, subtenant, or other occupant of the Premises, permitted or otherwise,
and apply the net rent collected to the Rent payable hereunder, but no such
collection shall be deemed to be a waiver of this Paragraph 21, or the
acceptance of the assignee, subtenant or occupant as tenant, or a release of
Tenant from the further performance by Tenant of the obligations of Tenant under
this Lease. Any assignment or subletting which conflicts with the provisions
hereof shall be void.

                                  22. AUTHORITY

Landlord represents and warrants that it has full right and authority to enter
into this Lease and to perform all of Landlord's obligations hereunder and that
all persons signing this Lease on its behalf are authorized to do. Tenant and
the person or persons, if any, signing on behalf of Tenant, jointly and
severally represent and warrant that Tenant has full right and authority to
enter into this Lease, and to perform all of Tenant's obligations hereunder, and
that all persons signing this Lease on its behalf are authorized to do so.

                                23. CONDEMNATION

A. Condemnation Resulting in Termination. If the whole or any substantial part
of the Premises should be taken or condemned for any public use under any
Regulation, or by right of eminent domain, or by private purchase in lieu
thereof, and the taking would prevent or materially interfere with the Permitted
Use of the Premises, either party shall have the right to terminate this Lease
at its option. If any material portion of the Building or Project is taken or
condemned for any public use under any Regulation, or by right of eminent
domain, or by private purchase in lieu thereof, Landlord may terminate this
Lease at its option. In either of such events, the Rent shall be abated during
the unexpired portion of this Lease, effective when the physical taking of said
Premises shall have occurred.

B. Condemnation Not Resulting in Termination. If a portion of the Project of
which the Premises are a part should be taken or condemned for any public use
under any Regulation, or by right of eminent domain, or by private purchase in
lieu thereof, and the taking prevents or materially interferes with the
Permitted Use of the Premises, and this Lease is not terminated as provided in
Paragraph 23.A. above, the Rent payable hereunder during the unexpired portion
of this Lease shall be reduced, beginning on the date when the physical taking
shall have occurred, to such amount as may be fair and reasonable under all of
the circumstances, but only after giving Landlord credit for all sums received
or to be received by Tenant by the condemning authority. Notwithstanding
anything to the contrary contained in this Paragraph, if the temporary use or
occupancy of any part of the Premises shall be taken or appropriated under power
of eminent domain during the Term, this Lease shall be and remain unaffected by
such taking or appropriation and Tenant shall continue to pay in full all Rent
payable hereunder by Tenant during the Term; in the event of any such temporary
appropriation or taking, Tenant shall be entitled to receive that portion of any
award which represents compensation for the use of or occupancy of the Premises
during the Term, and Landlord shall be entitled to receive that portion of any
award which represents the cost of restoration of the Premises and the use and
occupancy of the Premises.

C. Award. Landlord shall be entitled to (and Tenant shall assign to Landlord)
any and all payment, income, rent, award or any interest therein whatsoever
which may be paid or made in connection with such taking or conveyance and
Tenant shall have no claim

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<PAGE>

against Landlord or otherwise for any sums paid by virtue of such proceedings,
whether or not attributable to the value of any unexpired portion of this Lease,
except as expressly provided in this Lease. Notwithstanding the foregoing, any
compensation specifically and separately awarded Tenant for Tenant's personal
property and moving costs, shall be and remain the property of Tenant.

D. Waiver of CCP ss.1265.130. Each party waives the provisions of
California Civil Code Procedure Section 1265.130 allowing either party to
petition the superior court to terminate this Lease as a result of a partial
taking.

                               24. CASUALTY DAMAGE

A. General. If the Premises or Building should be damaged or destroyed by fire,
tornado, or other casualty (collectively, "Casualty"), Tenant shall give
immediate written notice thereof to Landlord. Within thirty (30) days after
Landlord's receipt of such notice, Landlord shall notify Tenant whether in
Landlord's estimation material restoration of the Premises can reasonably be
made within one hundred eighty (180) days from the date of such notice and
receipt of required permits for such restoration. Landlord's determination shall
be binding on Tenant.

B. Within 180 Days. If the Premises or Building should be damaged by Casualty to
such extent that material restoration can in Landlord's estimation be reasonably
completed within one hundred eighty (180) days after the date of such notice
and receipt of required permits for such restoration, this Lease shall not
terminate. Provided that insurance proceeds are received by Landlord to fully
repair the damage, Landlord shall proceed to rebuild and repair the Premises in
the manner determined by Landlord, except that Landlord shall not be required to
rebuild, repair or replace any part of the Alterations which may have been
placed on or about the Premises by Tenant. If the Premises are untenantable in
whole or in part following such damage, the Rent payable hereunder during the
period in which they are untenantable shall be abated proportionately, but only
to the extent of rental abatement insurance proceeds received by Landlord during
the time and to the extent the Premises are unfit for occupancy.

C. Greater than 180 Days. If the Premises or Building should be damaged by
Casualty to such extent that rebuilding or repairs cannot in Landlord's
estimation be reasonably completed within one hundred eighty (180) days after
the date of such notice and receipt of required permits for such rebuilding or
repair, then Landlord shall have the option of either: (1) terminating this
Lease effective upon the date of the occurrence of such damage, in which event
the Rent shall be abated during the unexpired portion of this Lease; or (2)
electing to rebuild or repair the Premises diligently and in the manner
determined by Landlord. Landlord shall notify Tenant of its election within
thirty (30) days after Landlord's receipt of notice of the damage or
destruction. Notwithstanding the above, Landlord shall not be required to
rebuild, repair or replace any part of any Alterations which may have been
placed, on or about the Premises by Tenant. If the Premises are untenantable in
whole or in part following such damage, the Rent payable hereunder during the
period in which they are untenantable shall be abated proportionately, but only
to the extent of rental abatement insurance proceeds received by Landlord during
the time and to the extent the Premises are unfit for occupancy.

D. Tenant's Fault. Notwithstanding anything herein to the contrary, if the
Premises or any other portion of the Building are damaged by Casualty resulting
from the fault, negligence, or breach of this Lease by Tenant or any of Tenant's
Parties, Base Rent and Additional Rent shall not be diminished during the repair
of such damage and Tenant shall be liable to Landlord for the cost and expense
of the repair and restoration of the Building caused thereby to the extent such
cost and expense is not covered by insurance proceeds.

E. Insurance Proceeds. Notwithstanding anything herein to the contrary, if the
Premises or Building are damaged or destroyed and are not fully covered by the
insurance proceeds received by Landlord or if the holder of any indebtedness
secured by a mortgage or deed of trust covering the Premises requires that the
insurance proceeds be applied to such indebtedness, then in either case Landlord
shall have the right to terminate this Lease by delivering written notice of
termination to Tenant within thirty (30) days after the date of notice to
Landlord that said damage or destruction is not fully covered by insurance or
such requirement is made by any such holder, as the case may be, whereupon this
Lease shall terminate.

F. Waiver. This Paragraph 24 shall be Tenant's sole and exclusive remedy in the
event of damage or destruction to the Premises or the Building. As a material
inducement to Landlord entering into this Lease, Tenant hereby waives any rights
it may have under Sections 1932, 1933(4), 1941 or 1942 of the Civil Code of
California with respect to any destruction of the Premises, Landlord's
obligation for tenantability of the Premises and Tenant's right to make repairs
and deduct the expenses of such repairs, or under any similar law, statute or
ordinance now or hereafter in effect.

G. Tenant's Personal Property. In the event of any damage or destruction of the
Premises or the Building, under no circumstances shall Landlord be required to
repair any injury or damage to, or make any repairs to or replacements of,
Tenant's personal property.

                                25. HOLDING OVER

Unless Landlord expressly consents in writing to Tenant's holding over, Tenant
shall be unlawfully and illegally in possession of the Premises, whether or not
Landlord accepts any rent from Tenant or any other person while Tenant remains
in possession of the Premises without Landlord's written consent. If Tenant
shall retain possession of the Premises or any portion thereof without
Landlord's consent following the expiration of this Lease or sooner termination
for any reason, then Tenant shall pay to Landlord for each day of such retention
triple the amount of daily rental as of the last month prior to the date of
expiration or earlier termination. Tenant shall also indemnify, defend, protect
and hold Landlord harmless from any loss, liability or cost, including
consequential and incidental damages and reasonable attorneys' fees, incurred by
Landlord resulting from delay by Tenant in surrendering the Premises, including,
without limitation, any claims made by the succeeding tenant founded on such
delay. Acceptance of Rent by Landlord following expiration or earlier
termination of this Lease, or following demand by Landlord for possession of the
Premises, shall not constitute a renewal of this Lease, and nothing contained in
this Paragraph 25 shall waive Landlord's right of reentry or any other right.
Additionally, if upon expiration or earlier termination of this Lease, or
following demand by Landlord for possession of the Premises, Tenant has not
fulfilled its obligation with respect to repairs and cleanup of the Premises or
any other Tenant obligations as set forth in this Lease, then Landlord shall
have the right to perform any such obligations as it deems necessary at Tenant's
sole cost and expense, and any time required by Landlord to complete such
obligations shall be considered a period of holding over and the terms of this
Paragraph 25 shall apply. The provisions of this Paragraph 25 shall survive any
expiration or earlier termination of this Lease.

                                   26. DEFAULT

A. Events of Default. The occurrence of any of the following shall constitute an
event of default on the part of Tenant:

          (1) Abandonment. Abandonment or vacation of the Premises for a
          continuous period in excess of five (5) days. Tenant waives any right
          to notice Tenant may have under Section 1951.3 of the Civil Code of
          the State of California, the terms of this Paragraph 26.A. being
          deemed such notice to Tenant as required by said Section 1951.3.

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<PAGE>

          (2) Nonpayment of Rent. Failure to pay any installment of Rent or any
          other amount due and payable hereunder upon the date when said payment
          is due, as to which time is of the essence.

          (3) Other Obligations. Failure to perform any obligation, agreement or
          covenant under this Lease other than those matters specified in
          subparagraphs (1) and (2) of this Paragraph 26.A., such failure
          continuing for fifteen (15) days after written notice of such failure,
          as to which time is of the essence.

          (4) General Assignment. A general assignment by Tenant for the benefit
          of creditors.

          (5) Bankruptcy. The filing of any voluntary petition in bankruptcy by
          Tenant, or the filing of an involuntary petition by Tenant's
          creditors, which involuntary petition remains undischarged for a
          period of thirty (30) days. If under applicable law, the trustee in
          bankruptcy or Tenant has the right to affirm this Lease and continue
          to perform the obligations of Tenant hereunder, such trustee or Tenant
          shall, in such time period as may be permitted by the bankruptcy court
          having jurisdiction, cure all defaults of Tenant hereunder outstanding
          as of the date of the affirmance of this Lease and provide to Landlord
          such adequate assurances as may be necessary to ensure Landlord of the
          continued performance of Tenant's obligations under this Lease.

          (6) Receivership. The employment of a receiver to take possession of
          substantially all of Tenant's assets or Tenant's leasehold of the
          Premises, if such appointment remains undismissed or undischarged for
          a period of fifteen (15) days after the order therefor.

          (7) Attachment. The attachment, execution or other judicial seizure of
          all or substantially all of Tenant's assets or Tenant's leasehold of
          the Premises, if such attachment or other seizure remains undismissed
          or undischarged for a period of fifteen (15) days after the levy
          thereof.

          (8) Insolvency. The admission by Tenant in writing of its inability to
          pay its debts as they become due.

B. Remedies Upon Default.

          (1) Termination. In the event of the occurrence of any event of
          default, Landlord shall have the right to give a written termination
          notice to Tenant, and on the date specified in such notice, Tenant's
          right to possession shall terminate, and this Lease shall terminate
          unless on or before such date all Rent in arrears and all costs and
          expenses incurred by or on behalf of Landlord hereunder shall have
          been paid by Tenant and all other events of default of this Lease by
          Tenant at the time existing shall have been fully remedied to the
          satisfaction of Landlord. At any time after such termination, Landlord
          may recover possession of the Premises or any part thereof and expel
          and remove therefrom Tenant and any other person occupying the same,
          including any subtenant or subtenants notwithstanding Landlord's
          consent to any sublease, by any lawful means, and again repossess and
          enjoy the Premises without prejudice to any of the remedies that
          Landlord may have under this Lease, or at law or equity by any reason
          of Tenant's default or of such termination. Landlord hereby reserves
          the right, but shall not have the obligation, to recognize the
          continued possession of any subtenant. The delivery or surrender to
          Landlord by or on behalf of Tenant of keys, entry codes, or other
          means to bypass security at the Premises shall not terminate this
          Lease.

          (2) Continuation After Default. Even though an event of default may
          have occurred, this Lease shall continue in effect for so long as
          Landlord does not terminate Tenant's right to possession under
          Paragraph 26.B.(1) hereof, and Landlord may enforce all of Landlord's
          rights and remedies under this Lease and at law or in equity,
          including without limitation, the right to recover Rent as it becomes
          due, and Landlord, without terminating this Lease, may exercise all of
          the rights and remedies of a landlord under Section 1951.4 of the
          Civil Code of the State of California or any successor code section.
          Acts of maintenance, preservation or efforts to lease the Premises or
          the appointment of a receiver under application of Landlord to protect
          Landlord's interest under this Lease or other entry by Landlord upon
          the Premises shall not constitute an election to terminate Tenant's
          right to possession.

          (3) Increased Security Deposit. If Tenant is in default under
          Paragraph 26.A.(2) hereof and such default remains uncured for ten
          (10) days after such occurrence or such default occurs more than three
          times in any twelve (12) month period, Landlord may require that
          Tenant increase the Security Deposit to the amount of three times the
          current month's Rent at the time of the most recent default.

C. Damages After Default. Should Landlord terminate this Lease pursuant to the
provisions of Paragraph 26.B.(l) hereof, Landlord shall have the rights and
remedies of a Landlord provided by Section 1951.2 of the Civil Code of the State
of California, or any successor code sections. Upon such termination, in
addition to any other rights and remedies to which Landlord may be entitled
under applicable law or at equity, Landlord shall be entitled to recover from
Tenant: (1) the worth at the time of award of the unpaid Rent and other amounts
which had been earned at the time of termination, (2) the worth at the time of
award of the amount by which the unpaid Rent and other amounts that would have
been earned after the date of termination until the time of award exceeds the
amount of such Rent loss that Tenant proves could have been reasonably avoided;
(3) the worth at the time of award of the amount by which the unpaid Rent and
other amounts for the balance of the Term after the time of award exceeds the
amount of such Rent loss that the Tenant proves could be reasonably avoided; and
(4) any other amount and court costs necessary to compensate Landlord for all
detriment proximately caused by Tenant's failure to perform Tenant's obligations
under this Lease or which, in the ordinary course of things, would be likely to
result therefrom. The "worth at the time of award" as used in (1) and (2) above
shall be computed at the Applicable Interest Rate (defined below). The "worth at
the time of award" as used in (3) above shall be computed by discounting such
amount at the Federal Discount Rate of the Federal Reserve Bank of San Francisco
at the time of award plus one percent (1%). If this Lease provides for any
periods during the Term during which Tenant is not required to pay Base Rent or
if Tenant otherwise receives a Rent concession, then upon the occurrence of an
event of default, Tenant shall owe to Landlord the full amount of such Base Rent
or value of such Rent concession, plus interest at the Applicable Interest Rate,
calculated from the date that such Base Rent or Rent concession would have been
payable.

D. Late Charge. In addition to its other remedies, Landlord shall have the right
without notice or demand to add to the amount of any payment required to be made
by Tenant hereunder, and which is not paid and received by Landlord on or before
the first day of each calendar month, an amount equal to ten percent (10%) of
the delinquency for each month or portion thereof that the delinquency remains
outstanding to compensate Landlord for the loss of the use of the amount not
paid and the administrative costs caused by the delinquency, the parties
agreeing that Landlord's damage by virtue of such delinquencies would be
extremely difficult and impracticable to compute and the amount stated herein
represents a reasonable estimate thereof. Any waiver by Landlord of any late
charges or failure to claim the same shall not constitute a waiver of other late
charges or any other remedies available to Landlord.

E. Interest. Interest shall accrue on all sums not paid when due hereunder at
the lesser of eighteen percent (18%) per annum or the maximum interest rate
allowed by law ("Applicable Interest Rate") from the due date until paid.

F. Remedies Cumulative. All rights, privileges and elections or remedies of the
parties are cumulative and not alternative, to the extent permitted by law and
except as otherwise provided herein.

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<PAGE>

                                    27. LIENS

Tenant shall at all times keep the Premises and the Project free from liens
arising out of or related to work or services performed, materials or supplies
furnished or obligations incurred by or on behalf of Tenant or in connection
with work made, suffered or done by or on behalf of Tenant in or on the Premises
or Project. If Tenant shall not, within ten (10) days following the imposition
of any such lien, cause the same to be released of record by payment or posting
of a proper bond, Landlord shall have, in addition to all other remedies
provided herein and by law, the right, but not the obligation, to cause the same
to be released by such means as Landlord shall deem proper, including payment of
the claim giving rise to such lien. All sums paid by Landlord on behalf of
Tenant and all expenses incurred by Landlord in connection therefor shall be
payable to Landlord by Tenant on demand with interest at the Applicable Interest
Rate as Additional Rent. Landlord shall have the right at all times to post and
keep posted on the Premises any notices permitted or required by law, or which
Landlord shall deem proper, for the protection of Landlord, the Premises, the
Project and any other party having an interest therein, from mechanics' and
materialmen's liens, and Tenant shall give Landlord not less than ten (10)
business days prior written notice of the commencement of any work in the
Premises or Project which could lawfully give rise to a claim for mechanics' or
materialmen's liens to permit Landlord to post and record a timely notice of
non-responsibility, as Landlord may elect to proceed or as the law may from time
to time provide, for which purpose, if Landlord shall so determine, Landlord may
enter the Premises. Tenant shall not remove any such notice posted by Landlord
without Landlord's consent, and in any event not before completion of the work
which could lawfully give rise to a claim for mechanics' or materialmen's liens.

                                28. SUBSTITUTION

A. At any time after execution of this Lease, Landlord may substitute for the
Premises other premises in the Project or owned by Landlord in the vicinity of
the Project (the "New Premises") upon not less than sixty (60) days prior
written notice, in which event the New Premises shall be deemed to be the
Premises for all purposes hereunder and this Lease shall be deemed modified
accordingly to reflect the new location and shall remain in full force and
effect as so modified, provided that:

          (1) The New Premises shall be similar in area and in function for
          Tenant's purposes; and

          (2) If Tenant is occupying the Premises at the time of such
          substitution, Landlord shall pay the expense of physically moving
          Tenant, Tenant's property and equipment to the New Premises and shall,
          at Landlord's sole cost, improve the New Premises with improvements
          substantially similar to those the Landlord has committed to provide
          or has provided in the Premises.

                            29. TRANSFERS BY LANDLORD

In the event of a sale or conveyance by Landlord of the Building or a
foreclosure by any creditor of Landlord, the same shall operate to release
Landlord from any liability upon any of the covenants or conditions, express or
implied, herein contained in favor of Tenant, to the extent required to be
performed after the passing of title to Landlord's successor-in-interest. In
such event, Tenant agrees to look solely to the responsibility of the
successor-in-interest of Landlord under this Lease with respect to the
performance of the covenants and duties of "Landlord" to be performed after the
passing of title to Landlord's successor-in-interest. This Lease shall not be
affected by any such sale and Tenant agrees to attorn to the purchaser or
assignee. Landlord's successor(s)-in-interest shall not have liability to Tenant
with respect to the failure to perform any of the obligations of "Landlord," to
the extent required to be performed prior to the date such
successor(s)-in-interest became the owner of the Building.

               30. RIGHT OF LANDLORD TO PERFORM TENANT'S COVENANTS

All covenants and agreements to be performed by Tenant under any of the terms of
this Lease shall be performed by Tenant at Tenant's sole cost and expense and
without any abatement of Rent. If Tenant shall fail to pay any sum of money,
other than Base Rent, required to be paid by Tenant hereunder or shall fail to
perform any other act on Tenant's part to be performed hereunder, including
Tenant's obligations under Paragraph 11 hereof, and such failure shall continue
for fifteen (15) days after notice thereof by Landlord, in addition to the other
rights and remedies of Landlord, Landlord may make any such payment and perform
any such act on Tenant's part. In the case of an emergency, no prior
notification by Landlord shall be required. Landlord may take such actions
without any obligation and without releasing Tenant from any of Tenant's
obligations. All sums so paid by Landlord and all incidental costs incurred by
Landlord and interest thereon at the Applicable Interest Rate, from the date of
payment by Landlord, shall be paid to Landlord on demand as Additional Rent.

                                   31. WAIVER

If either Landlord or Tenant waives the performance of any term, covenant or
condition contained in this Lease, such waiver shall not be deemed to be a
waiver of any subsequent breach of the same or any other term, covenant or
condition contained herein, or constitute a course of dealing contrary to the
expressed terms of this Lease. The acceptance of Rent by Landlord shall not
constitute a waiver of any preceding breach by Tenant of any term, covenant or
condition of this Lease, regardless of Landlord's knowledge of such preceding
breach at the time Landlord accepted such Rent. Failure by Landlord to enforce
any of the terms, covenants or conditions of this Lease for any length of time
shall not be deemed to waive or decrease the right of Landlord to insist
thereafter upon strict performance by Tenant. Waiver by Landlord of any term,
covenant or condition contained in this Lease may only be made by a written
document signed by Landlord, based upon full knowledge of the circumstances.

                                   32. NOTICES

Each provision of this Lease or of any applicable governmental laws, ordinances,
regulations and other requirements with reference to sending, mailing or
delivery of any notice or the making of any payment by Landlord or Tenant to the
other shall be deemed to be complied with when and if the following steps are
taken:

A. Rent. All Rent and other payments required to be made by Tenant to Landlord
hereunder shall be payable to Landlord at Landlord's Remittance Address set
forth in the Basic Lease Information, or at such other address as Landlord may
specify from time to time by written notice delivered in accordance herewith.
Tenant's obligation to pay Rent and any other amounts to Landlord under the
terms of this Lease shall not be deemed satisfied until such Rent and other
amounts have been actually received by Landlord.

B. Other. All notices, demands, consents and approvals which may or are required
to be given by either party to the other hereunder shall be in writing and
either personally delivered, sent by commercial overnight courier, mailed,
certified or registered, postage prepaid or sent by facsimile with confirmed
receipt (and with an original sent by commercial overnight courier) and in each
case addressed to the party to be notified at the Notice Address for such party
as specified in the Basic Lease Information or to such other place as the party
to be notified may from time to time designate by at least fifteen (15) days
notice to the notifying party. Notices shall be deemed served upon receipt or
refusal to accept delivery. Tenant appoints as its agent to receive the service
of all default notices and notice of commencement of unlawful detainer
proceedings the person in charge of or apparently in charge of occupying the
Premises at the time, and, if there is no such person, then such service may be
made by attaching the same on the main entrance of the Premises.

                                       14
<PAGE>

C. Required Notices. Tenant shall immediately notify Landlord in writing of any
notice of a violation or a potential or alleged violation of any Regulation that
relates to the Premises or the Project, or of any inquiry, investigation,
enforcement or other action that is instituted or threatened by any governmental
or regulatory agency against Tenant or any other occupant of the Premises, or
any claim that is instituted or threatened by any third party that relates to
the Premises or the Project.

                               33. ATTORNEYS' FEES

If Landlord places the enforcement of this Lease, or any part thereof, or the
collection of any Rent due, or to become due hereunder, or recovery of
possession of the Premises in the hands of an attorney, Tenant shall pay to
Landlord, upon demand, Landlord's reasonable attorneys' fees and court costs,
whether incurred without trial, at trial, appeal or review. In any action which
Landlord or Tenant brings to enforce its respective rights hereunder, the
unsuccessful party shall pay all costs incurred by the prevailing party
including reasonable attorneys' fees, to be fixed by the court, and said costs
and attorneys' fees shall be a part of the judgment in said action.

                           34. SUCCESSORS AND ASSIGNS

This Lease shall be binding upon and inure to the benefit of Landlord, its
successors and assigns, and shall be binding upon and inure to the benefit of
Tenant, its successors, and to the extent assignment is approved by Landlord as
provided hereunder, Tenant's assigns.

                                35. FORCE MAJEURE

If performance by a party of any portion of this Lease is made impossible by any
prevention, delay, or stoppage caused by strikes, lockouts, labor disputes, acts
of God, inability to obtain services, labor, or materials or reasonable
substitutes for those items, government actions, civil commotions, fire or other
casualty, or other causes beyond the reasonable control of the party obligated
to perform, performance by that party for a period equal to the period of that
prevention, delay, or stoppage is excused. Tenant's obligation to pay Rent,
however, is not excused by this Paragraph 35.

                            36. SURRENDER OF PREMISES

Tenant shall, upon expiration or sooner termination of this Lease, surrender the
Premises to Landlord in the same condition as existed on the date Tenant
originally took possession thereof, including, but not limited to, all interior
walls cleaned, all interior painted surfaces repainted in the original color,
all holes in walls repaired, all carpets shampooed and cleaned, and all floors
cleaned, waxed, and free of any Tenant-introduced marking or painting, all to
the reasonable satisfaction of Landlord. Tenant shall remove all of its debris
from the Project. At or before the time of surrender, Tenant shall comply with
the terms of Paragraph l2.A. hereof with respect to Alterations to the Premises
and all other matters addressed in such Paragraph. If the Premises are not so
surrendered at the expiration or sooner termination of this Lease, the
provisions of Paragraph 25 hereof shall apply. All keys to the Premises or any
part thereof shall be surrendered to Landlord upon expiration or sooner
termination of the Term. Tenant shall give written notice to Landlord at least
thirty (30) days prior to vacating the Premises and shall meet with Landlord for
a joint inspection of the Premises at the time of vacating, but nothing
contained herein shall be construed as an extension of the Term or as a consent
by Landlord to any holding over by Tenant. In the event of Tenant's failure to
give such notice or participate in such joint inspection, Landlord's inspection
at or after Tenant's vacating the Premises shall conclusively be deemed correct
for purposes of determining Tenant's responsibility for repairs and restoration.
Any delay caused by Tenant's failure to carry out its obligations under this
Paragraph 36 beyond the term hereof, shall constitute unlawful and illegal
possession of Premises under Paragraph 25 hereof.

                                   37. PARKING

     So long as Tenant is occupying the Premises, Tenant and Tenant's Parties
shall have the right to use up to the number of parking spaces, if any,
specified in the Basic Lease Information on an unreserved, nonexclusive, first
come, first served basis, for passenger-size automobiles, in the parking areas
in the Project designated from time to time by Landlord for use in common by
tenants of the Building.

     Tenant may request additional parking spaces from time to time and if
Landlord in its sole discretion agrees to make such additional spaces available
for use by Tenant, such spaces shall be provided on a month-to-month unreserved
and nonexclusive basis (unless otherwise agreed in writing by Landlord), and
subject to such parking charges as Landlord shall determine, and shall otherwise
be subject to such terms and conditions as Landlord may require.

     Tenant shall at all times comply and shall cause all Tenant's Parties and
visitors to comply with all Regulations and any rules and regulations
established from time to time by Landlord relating to parking at the Project,
including any keycard, sticker or other identification or entrance system, and
hours of operation, as applicable.

     Landlord shall have no liability for any damage to property or other items
located in the parking areas of the Project, nor for any personal injuries or
death arising out of the use of parking areas in the Project by Tenant or any
Tenant's Parties. Without limiting the foregoing, if Landlord arranges for the
parking areas to be operated by an independent contractor not affiliated with
Landlord, Tenant acknowledges that Landlord shall have no liability for claims
arising through acts or omissions of such independent contractor. In all events,
Tenant agrees to look first to its insurance carrier and to require that
Tenant's Parties look first to their respective insurance carriers for payment
of any losses sustained in connection with any use of the parking areas.

     Landlord reserves the right to assign specific spaces, and to reserve
spaces for visitors, small cars, disabled persons or for other tenants or
guests, and Tenant shall not park and shall not allow Tenant's Parties to park
in any such assigned or reserved spaces. Tenant may validate visitor parking by
such method as Landlord may approve, at the validation rate from time to time
generally applicable to visitor parking. Landlord also reserves the right to
alter, modify, relocate or close all or any portion of the parking areas in
order to make repairs or perform maintenance service, or to restripe or renovate
the parking areas, or if required by casualty, condemnation, act of God,
Regulations or for any other reason deemed reasonable by Landlord.

     Tenant shall pay to Landlord (or Landlord's parking contractor, if so
directed in writing by Landlord), as Additional Rent hereunder, the monthly
charges established from time to time by Landlord for parking in such parking
areas (which shall initially be the charge specified in the Basic Lease
Information as applicable) Such parking charges shall be payable in advance with
Tenant's payment of Basic Rent. No deductions from the monthly parking charge
shall be made for days on which the Tenant does not use any of the parking
spaces entitled to be used by Tenant.

                                38. MISCELLANEOUS

A. General. The term "Tenant" or any pronoun used in place thereof shall
indicate and include the masculine or feminine, the singular or plural number,
individuals, firms or corporations, and their respective successors, executors,
administrators and permitted assigns, according to the context hereof.

                                       15
<PAGE>

B. Time. Time is of the essence regarding this Lease and all of its provisions.

C. Choice of Law. This Lease shall in all respects be governed by the laws of
the State of California.

D. Entire Agreement. This Lease, together with its Exhibits, addenda and
attachments and the Basic Lease Information, contains all the agreements of the
parties hereto and supersedes any previous negotiations. There have been no
representations made by the Landlord or understandings made between the parties
other than those set forth in this Lease and its Exhibits, addenda and
attachments and the Basic Lease Information.

E. Modification. This Lease may not be modified except by a written instrument
signed by the parties hereto. Tenant accepts the area of the Premises as
specified in the Basic Lease information as the approximate area of the Premises
for all purposes under this Lease, and acknowledges and agrees that no other
definition of the area (rentable, usable or otherwise) of the Premises shall
apply. Tenant shall in no event be entitled to a recalculation of the square
footage of the Premises, rentable, usable or otherwise, and no recalculation, if
made, irrespective of its purpose, shall reduce Tenant's obligations under this
Lease in any manner, including without limitation the amount of Base Rent
payable by Tenant or Tenant's Proportionate Share of the Building and of the
Project.

F. Severability. If, for any reason whatsoever, any of the provisions hereof
shall be unenforceable or ineffective, all of the other provisions shall be and
remain in full force and effect.

G. Recordation. Tenant shall not record this Lease or a short form memorandum
hereof.

H. Examination of Lease. Submission of this Lease to Tenant does not constitute
an option or offer to lease and this Lease is not effective otherwise until
execution and delivery by both Landlord and Tenant.

I. Accord and Satisfaction. No payment by Tenant of a lesser amount than the
total Rent due nor any endorsement on any check or letter accompanying any check
or payment of Rent shall be deemed an accord and satisfaction of full payment of
Rent, and Landlord may accept such payment without prejudice to Landlord's right
to recover the balance of such Rent or to pursue other remedies. All offers by
or on behalf of Tenant of accord and satisfaction are hereby rejected in
advance.

J. Easements. Landlord may grant easements on the Project and dedicate for
public use portions of the Project without Tenant's consent; provided that no
such grant or dedication shall materially interfere with Tenant's Permitted Use
of the Premises. Upon Landlord's request, Tenant shall execute, acknowledge and
deliver to Landlord documents, instruments, maps and plats necessary to
effectuate Tenant's covenants hereunder.

K. Drafting and Determination Presumption. The parties acknowledge that this
Lease has been agreed to by both the parties, that both Landlord and Tenant have
consulted with attorneys with respect to the terms of this Lease and that no
presumption shall be created against Landlord because Landlord drafted this
Lease. Except as otherwise specifically set forth in this Lease, with respect to
any consent, determination or estimation of Landlord required or allowed in this
Lease or requested of Landlord, Landlord's consent, determination or estimation
shall be given or made solely by Landlord in Landlord's good faith opinion
whether or not objectively reasonable. If Landlord fails to respond to any
request for its consent within the time period, if any, specified in this Lease,
Landlord shall be deemed to have disapproved such request.

L. Exhibits. The Basic Lease Information, and the Exhibits, addenda and
attachments attached hereto are hereby incorporated herein by this reference and
made a part of this Lease as though fully set forth herein.

M. No Light, Air or View Easement. Any diminution or shutting off of light, air
or view by any structure which may be erected on lands adjacent to or in the
vicinity of the Building shall in no way affect this Lease or impose any
liability on Landlord.

N. No Third Party Benefit. This Lease is a contract between Landlord and Tenant
and nothing herein is intended to create any third party benefit.

O. Quiet Enjoyment. Upon payment by Tenant of the Rent, and upon the observance
and performance of all of the other covenants, terms and conditions on Tenant's
part to be observed and performed, Tenant shall peaceably and quietly hold and
enjoy the Premises for the term hereby demised without hindrance or interruption
by Landlord or any other person or persons lawfully or equitably claiming by,
through or under Landlord, subject, nevertheless, to all of the other terms and
conditions of this Lease. Landlord shall not be liable for any hindrance,
interruption, interference or disturbance by other tenants or third persons, nor
shall Tenant be released from any obligations under this Lease because of such
hindrance, interruption, interference or disturbance.

P. Counterparts. This Lease may be executed in any number of counterparts, each
of which shall be deemed an original.

Q. Multiple Parties. If more than one person or entity is named herein as
Tenant, such multiple parties shall have joint and several responsibility to
comply with the terms of this Lease.

R. Prorations. Any Rent or other amounts payable to Landlord by Tenant hereunder
for any fractional month shall be prorated based on a month of 30 days. As used
herein, the term "fiscal year" shall mean the calendar year or such other fiscal
year as Landlord may deem appropriate.

                          39. PRIOR RIGHT OF OCCUPANCY

Upon full execution of the Lease Agreement, Tenant shall have the right to
occupy the Premises upon substantial completion of the tenant improvements prior
to March 1, 1999, Lease Commencement Date, with all terms and conditions of this
Lease in full force and effect, including the payment of rent and shall be
prorated based on a month of 30 days.

                              40. JURY TRIAL WAIVER

EACH PARTY HERETO (WHICH INCLUDES ANY ASSIGNEE, SUCCESSOR HEIR OR PERSONAL
REPRESENTATIVE OF A PARTY) SHALL NOT SEEK A JURY TRIAL, HEREBY WAIVES TRIAL BY
JURY, AND HEREBY FURTHER WAIVES ANY OBJECTION TO VENUE IN THE COUNTY IN WHICH
THE BUILDING IS LOCATED, AND AGREES AND CONSENTS TO PERSONAL JURISDICTION OF THE
COURTS OF THE STATE IN WHICH THE PROPERTY IS LOCATED, IN ANY ACTION OR
PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY HERETO AGAINST THE OTHER ON ANY
MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE
RELATIONSHIP OF LANDLORD AND TENANT, TENANT'S USE OR OCCUPANCY OF THE PREMISES,
OR ANY CLAIM OF INJURY OR DAMAGE, OR THE ENFORCEMENT OF ANY REMEDY UNDER ANY
STATUTE, EMERGENCY OR OTHERWISE, WHETHER ANY OF THE FOREGOING IS BASED ON THIS
LEASE OR ON TORT LAW. EACH PARTY REPRESENTS THAT IT HAS HAD THE

                                       16
<PAGE>

OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL CONCERNING THE EFFECT OF THIS
PARAGRAPH 40. THE PROVISIONS OF THIS PARAGRAPH 40 SHALL SURVIVE THE EXPIRATION
OR EARLIER TERMINATION OF THIS LEASE.

IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day
and the year first above written.

                          LANDLORD

                          Spieker Properties, L.P.,
                          a California limited partnership

                          By: Spieker Properties, Inc.,
                              a Maryland corporation,
                              its general partner

                          By: /s/ Alan Dibartolomeo
                             ------------------------------------------
                              Alan Dibartolomeo
                              Its: Vice President

                          Date:
                               ----------------------------------------

                          TENANT

                          HOLLYWOOD SOFTWARE, INC.,
                           a California corporation

                          By: /s/ Robert Jackovich
                             ------------------------------------------
                               Robert Jackovich
                               Its: President

                          Date:
                                ---------------------------------------

                                       17

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