Document:

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                                                                  Exhibit 10.4

                            DRUGABUSE SCIENCES, INC.

                                1999 STOCK PLAN B

                          ADOPTED ON DECEMBER 15, 1999

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                                TABLE OF CONTENTS

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                                                                                  PAGE NO.
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<S>         <C>                                                                     <C>
SECTION 1.  ESTABLISHMENT AND PURPOSE................................................1

SECTION 2.  ADMINISTRATION...........................................................1

   (a)   Committees of the Board of Directors........................................1
   (b)   Authority of the Board of Directors.........................................1

SECTION 3.  ELIGIBILITY..............................................................1

   (a)   General Rule................................................................1
   (b)   Ten-Percent Shareholders....................................................1

SECTION 4.  STOCK SUBJECT TO PLAN....................................................2

   (a)   Basic Limitation............................................................2
   (b)   Additional Shares...........................................................2

SECTION 5.  TERMS AND CONDITIONS OF AWARDS OR SALES..................................2

   (a)   Stock Purchase Agreement....................................................2
   (b)   Duration of Offers and Nontransferability of Rights.........................2
   (c)   Purchase Price..............................................................2
   (d)   Withholding Taxes...........................................................3
   (e)   Restrictions on Transfer of Shares..........................................3
   (f)   Accelerated Vesting.........................................................3

SECTION 6.  TERMS AND CONDITIONS OF OPTIONS..........................................3

   (a)   Stock Option Agreement......................................................3
   (b)   Number of Shares............................................................3
   (c)   Exercise Price..............................................................3
   (d)   Withholding Taxes...........................................................3
   (e)   Exercisability..............................................................4
   (f)   Accelerated Exercisability..................................................4
   (g)   Basic Term..................................................................4
   (h)   Nontransferability..........................................................4
   (i)   No Rights as a Shareholder..................................................4
   (j)   Modification, Extension and Assumption of Options...........................4
   (k)   Restrictions on Transfer of Shares..........................................5
   (l)   Accelerated Vesting.........................................................5

SECTION 7.  PAYMENT FOR SHARES.......................................................5

   (a)   General Rule................................................................5

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   (b)   Surrender of Stock..........................................................5
   (c)   Services Rendered...........................................................5
   (d)   Promissory Note.............................................................5
   (e)   Exercise/Sale...............................................................6
   (f)   Exercise/Pledge.............................................................6

SECTION 8.  ADJUSTMENT OF SHARES.....................................................6

   (a)   General.....................................................................6
   (b)   Mergers and Consolidations..................................................6
   (c)   Reservation of Rights.......................................................7

SECTION 9.  SECURITIES LAWS REQUIREMENTS.............................................7

SECTION 10.  NO RETENTION RIGHTS.....................................................7

SECTION 11.  DURATION AND AMENDMENTS.................................................7

   (a)   Term of the Plan............................................................7
   (b)   Right to Amend or Terminate the Plan........................................7
   (c)   Effect of Amendment or Termination..........................................8

SECTION 12.  DEFINITIONS.............................................................8

SECTION 13.  EXECUTION..............................................................10

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                                    ii

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                   DRUGABUSE SCIENCES, INC. 1999 STOCK PLAN B

SECTION 1.  ESTABLISHMENT AND PURPOSE.

         The purpose of the Plan is to offer selected individuals an
opportunity to acquire a proprietary interest in the success of the Company,
or to increase such interest, by purchasing Shares of the Company's Stock.
The Plan provides both for the direct award or sale of Shares and for the
grant of Options to purchase Shares. Options granted under the Plan may
include Nonstatutory Options as well as ISOs intended to qualify under
Section 422 of the Code.

         Capitalized terms are defined in Section 12.

SECTION 2.  ADMINISTRATION.

         (a) COMMITTEES OF THE BOARD OF DIRECTORS. The Plan may be
administered by one or more Committees. Each Committee shall consist of one
or more members of the Board of Directors who have been appointed by the
Board of Directors. Each Committee shall have such authority and be
responsible for such functions as the Board of Directors has assigned to it.
If no Committee has been appointed, the entire Board of Directors shall
administer the Plan. Any reference to the Board of Directors in the Plan
shall be construed as a reference to the Committee (if any) to whom the Board
of Directors has assigned a particular function.

         (b) AUTHORITY OF THE BOARD OF DIRECTORS. Subject to the provisions
of the Plan, the Board of Directors shall have full authority and discretion
to take any actions it deems necessary or advisable for the administration of
the Plan. All decisions, interpretations and other actions of the Board of
Directors shall be final and binding on all Purchasers, all Optionees and all
persons deriving their rights from a Purchaser or Optionee.

SECTION 3.  ELIGIBILITY.

         (a) GENERAL RULE. Only Employees, Outside Directors and Consultants
shall be eligible for the grant of Options or the direct award or sale of
Shares. Only Employees shall be eligible for the grant of ISOs.

         (b) TEN-PERCENT SHAREHOLDERS. An individual who owns more than 10%
of the total combined voting power of all classes of outstanding stock of the
Company, its Parent or any of its Subsidiaries shall not be eligible for the
grant of an ISO unless (i) the Exercise Price is at least 110% of the Fair
Market Value of a Share on the date of grant and (ii) such ISO by its terms
is not exercisable after the expiration of five years from the date of grant.
For purposes of this Subsection (b), in determining stock ownership, the
attribution rules of Section 424(d) of the Code shall be applied.

                               1

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SECTION 4.  STOCK SUBJECT TO PLAN.

         (a) BASIC LIMITATION. Shares offered under the Plan may be
authorized but unissued Shares or treasury Shares. The aggregate number of
Shares that may be issued under the Plan (upon exercise of Options or other
rights to acquire Shares) shall not exceed 8,000,000 Shares, subject to
adjustment pursuant to Section 8. The number of Shares that are subject to
Options or other rights outstanding at any time under the Plan shall not
exceed the number of Shares that then remain available for issuance under the
Plan. The Company, during the term of the Plan, shall at all times reserve
and keep available sufficient Shares to satisfy the requirements of the Plan.

         (b) ADDITIONAL SHARES. In the event that any outstanding Option or
other right for any reason expires or is canceled or otherwise terminated,
the Shares allocable to the unexercised portion of such Option or other right
shall again be available for the purposes of the Plan. In the event that
Shares issued under the Plan are reacquired by the Company pursuant to any
forfeiture provision, right of repurchase or right of first refusal, such
Shares shall again be available for the purposes of the Plan, except that the
aggregate number of Shares which may be issued upon the exercise of ISOs
shall in no event exceed 8,000,000 Shares (subject to adjustment pursuant to
Section 8).

SECTION 5.  TERMS AND CONDITIONS OF AWARDS OR SALES.

         (a) STOCK PURCHASE AGREEMENT. Each award or sale of Shares under the
Plan (other than upon exercise of an Option) shall be evidenced by a Stock
Purchase Agreement between the Purchaser and the Company. Such award or sale
shall be subject to all applicable terms and conditions of the Plan and may
be subject to any other terms and conditions which are not inconsistent with
the Plan and which the Board of Directors deems appropriate for inclusion in
a Stock Purchase Agreement. The provisions of the various Stock Purchase
Agreements entered into under the Plan need not be identical.

         (b) DURATION OF OFFERS AND NONTRANSFERABILITY OF RIGHTS. Any right
to acquire Shares under the Plan (other than an Option) shall automatically
expire if not exercised by the Purchaser within 30 days after the grant of
such right was communicated to the Purchaser by the Company. Such right shall
not be transferable and shall be exercisable only by the Purchaser to whom
such right was granted.

         (c) PURCHASE PRICE. The Purchase Price of Shares to be offered under
the Plan, if newly issued, shall not be less than the par value of such
Shares. Subject to the preceding sentence, the Purchase Price shall be
determined by the Board of Directors at its sole discretion. The Purchase
Price shall be payable in a form described in Section 7.

         (d) WITHHOLDING TAXES. As a condition to the purchase of Shares, the
Purchaser shall make such arrangements as the Board of Directors may require
for the satisfaction of any federal, state, local or foreign withholding tax
obligations that may arise in connection with such purchase.

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         (e) RESTRICTIONS ON TRANSFER OF SHARES. Any Shares awarded or sold
under the Plan shall be subject to such special forfeiture conditions, rights
of repurchase, rights of first refusal and other transfer restrictions as the
Board of Directors may determine. Such restrictions shall be set forth in the
applicable Stock Purchase Agreement and shall apply in addition to any
restrictions that may apply to holders of Shares generally.

         (f) ACCELERATED VESTING. Unless the applicable Stock Purchase
Agreement provides otherwise, any right to repurchase a Purchaser's Shares at
the original Purchase Price (if any) upon termination of the Purchaser's
Service shall lapse and all of such Shares shall become vested if (i) the
Company is subject to a Change in Control before the Purchaser's Service
terminates and (ii) the repurchase right is not assigned to the entity that
employs the Purchaser immediately after the Change in Control or to its
parent or subsidiary. A Stock Purchase Agreement may also provide for
accelerated vesting in the event of the Optionee's death or disability or
other events.

SECTION 6. TERMS AND CONDITIONS OF OPTIONS.

         (a) STOCK OPTION AGREEMENT. Each grant of an Option under the Plan
shall be evidenced by a Stock Option Agreement between the Optionee and the
Company. Such Option shall be subject to all applicable terms and conditions
of the Plan and may be subject to any other terms and conditions which are
not inconsistent with the Plan and which the Board of Directors deems
appropriate for inclusion in a Stock Option Agreement. The provisions of the
various Stock Option Agreements entered into under the Plan need not be
identical.

         (b) NUMBER OF SHARES. Each Stock Option Agreement shall specify the
number of Shares that are subject to the Option and shall provide for the
adjustment of such number in accordance with Section 8. The Stock Option
Agreement shall also specify whether the Option is an ISO or a Nonstatutory
Option.

         (c) EXERCISE PRICE. Each Stock Option Agreement shall specify the
Exercise Price. The Exercise Price of an ISO shall not be less than 100% of
the Fair Market Value of a Share on the date of grant, and a higher
percentage may be required by Section 3(b). The Exercise Price of a
Nonstatutory Option to purchase newly issued Shares shall not be less than
the par value of such Shares. Subject to the preceding two sentences, the
Exercise Price under an Option shall be determined by the Board of Directors
at its sole discretion. The Exercise Price shall be payable in a form
described in Section 7.

         (d) WITHHOLDING TAXES. As a condition to the exercise of an Option,
the Optionee shall make such arrangements as the Board of Directors may
require for the satisfaction of any federal, state, local or foreign
withholding tax obligations that may arise in connection with such exercise.
The Optionee shall also make such arrangements as the Board of Directors may
require for the satisfaction of any federal, state, local or foreign
withholding tax obligations that may arise in connection with the disposition
of Shares acquired by exercising an Option.

         (e) EXERCISABILITY. Each Stock Option Agreement shall specify the
date when all or any installment of the Option is to become exercisable. The
exercisability provisions of a Stock Option Agreement shall be determined by
the Board of Directors at its sole discretion.

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         (f) ACCELERATED EXERCISABILITY. Unless the applicable Stock Option
Agreement provides otherwise, all of an Optionee's Options shall become
exercisable in full if (i) the Company is subject to a Change in Control
before the Optionee's Service terminates, (ii) such Options do not remain
outstanding, (iii) such Options are not assumed by the surviving corporation
or its parent and (iv) the surviving corporation or its parent does not
substitute options with substantially the same terms for such Options. A
Stock Option Agreement may also provide for accelerated exercisability in the
event of the Optionee's death, disability or retirement or other events.

         (g) BASIC TERM. The Stock Option Agreement shall specify the term of
the Option. The term shall not exceed 10 years from the date of grant, and in
the case of an ISO a shorter term may be required by Section 3(b). Subject to
the preceding sentence, the Board of Directors at its sole discretion shall
determine when an Option is to expire. A Stock Option Agreement may provide
for expiration prior to the end of its term in the event of the termination
of the Optionee's Service or death.

         (h) NONTRANSFERABILITY. No Option shall be transferable by the
Optionee other than by beneficiary designation, will or the laws of descent
and distribution. An Option may be exercised during the lifetime of the
Optionee only by the Optionee or by the Optionee's guardian or legal
representative. No Option or interest therein may be transferred, assigned,
pledged or hypothecated by the Optionee during the Optionee's lifetime,
whether by operation of law or otherwise, or be made subject to execution,
attachment or similar process.

         (i) NO RIGHTS AS A SHAREHOLDER. An Optionee, or a transferee of an
Optionee, shall have no rights as a shareholder with respect to any Shares
covered by the Optionee's Option until such person becomes entitled to
receive such Shares by filing a notice of exercise and paying the Exercise
Price pursuant to the terms of such Option.

         (j) MODIFICATION, EXTENSION AND ASSUMPTION OF OPTIONS. Within the
limitations of the Plan, the Board of Directors may modify, extend or assume
outstanding Options or may accept the cancellation of outstanding Options
(whether granted by the Company or another issuer) in return for the grant of
new Options for the same or a different number of Shares and at the same or a
different Exercise Price. The foregoing notwithstanding, no modification of
an Option shall, without the consent of the Optionee, impair the Optionee's
rights or increase the Optionee's obligations under such Option.

         (k) RESTRICTIONS ON TRANSFER OF SHARES. Any Shares issued upon
exercise of an Option shall be subject to such special forfeiture conditions,
rights of repurchase, rights of first refusal and other transfer restrictions
as the Board of Directors may determine. Such restrictions shall be set forth
in the applicable Stock Option Agreement and shall apply in addition to any
restrictions that may apply to holders of Shares generally.

         (l) ACCELERATED VESTING. Unless the applicable Stock Option
Agreement provides otherwise, any right to repurchase an Optionee's Shares at
the original Exercise Price upon termination of the Optionee's Service shall
lapse and all of such Shares shall become vested if (i) the Company is
subject to a Change in Control before the Optionee's Service terminates and
(ii) the repurchase right is not assigned to the entity that employs the
Optionee immediately after

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the Change in Control or to its parent or subsidiary. A Stock Option
Agreement may also provide for accelerated vesting in the event of the
Optionee's death or disability or other events.

SECTION 7. PAYMENT FOR SHARES.

         (a) GENERAL RULE. The entire Purchase Price or Exercise Price of
Shares issued under the Plan shall be payable in cash or cash equivalents at
the time when such Shares are purchased, except as otherwise provided in this
Section 7.

         (b) SURRENDER OF STOCK. To the extent that a Stock Option Agreement
so provides, all or any part of the Exercise Price may be paid by
surrendering, or attesting to the ownership of, Shares that are already owned
by the Optionee. Such Shares shall be surrendered to the Company in good form
for transfer and shall be valued at their Fair Market Value on the date when
the Option is exercised. The Optionee shall not surrender, or attest to the
ownership of, Shares in payment of the Exercise Price if such action would
cause the Company to recognize compensation expense (or additional
compensation expense) with respect to the Option for financial reporting
purposes.

         (c) SERVICES RENDERED. At the discretion of the Board of Directors,
Shares may be awarded under the Plan in consideration of services rendered to
the Company, a Parent or a Subsidiary prior to the award.

         (d) PROMISSORY NOTE. To the extent that a Stock Option Agreement or
Stock Purchase Agreement so provides, all or a portion of the Exercise Price
or Purchase Price (as the case may be) of Shares issued under the Plan may be
paid with a full-recourse promissory note. The Shares shall be pledged as
security for payment of the principal amount of the promissory note and
interest thereon. The interest rate payable under the terms of the promissory
note shall not be less than the minimum rate (if any) required to avoid the
imputation of additional interest under the Code. Subject to the foregoing,
the Board of Directors (at its sole discretion) shall specify the term,
interest rate, amortization requirements (if any) and other provisions of
such note.

         (e) EXERCISE/SALE. To the extent that a Stock Option Agreement so
provides, and if Stock is publicly traded, payment may be made all or in part
by the delivery (on a form prescribed by the Company) of an irrevocable
direction to a securities broker approved by the Company to sell Shares and
to deliver all or part of the sales proceeds to the Company in payment of all
or part of the Exercise Price and any withholding taxes.

         (f) EXERCISE/PLEDGE. To the extent that a Stock Option Agreement so
provides, and if Stock is publicly traded, payment may be made all or in part
by the delivery (on a form prescribed by the Company) of an irrevocable
direction to pledge Shares to a securities broker or lender approved by the
Company, as security for a loan, and to deliver all or part of the loan
proceeds to the Company in payment of all or part of the Exercise Price and
any withholding taxes.

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SECTION 8. ADJUSTMENT OF SHARES.

         (a) GENERAL. In the event of a subdivision of the outstanding Stock,
a declaration of a dividend payable in Shares, a declaration of an
extraordinary dividend payable in a form other than Shares in an amount that
has a material effect on the Fair Market Value of the Stock, a combination or
consolidation of the outstanding Stock into a lesser number of Shares, a
recapitalization, a spin-off, a reclassification or a similar occurrence, the
Board of Directors shall make appropriate adjustments in one or more of (i)
the number of Shares available for future grants under Section 4, (ii) the
number of Shares covered by each outstanding Option or (iii) the Exercise
Price under each outstanding Option.

         (b) MERGERS AND CONSOLIDATIONS. In the event that the Company is a
party to a merger or consolidation, outstanding Options shall be subject to
the agreement of merger or consolidation. Such agreement, without the
Optionees' consent, may provide for:

                  (i) The continuation of such outstanding Options by the
         Company (if the Company is the surviving corporation);

                  (ii) The assumption of the Plan and such outstanding Options
         by the surviving corporation or its parent;

                  (iii) The substitution by the surviving corporation or its
         parent of options with substantially the same terms for such
         outstanding Options; or

                  (iv) The cancellation of such outstanding Options without
         payment of any consideration.

         (c) RESERVATION OF RIGHTS. Except as provided in this Section 8, an
Optionee or Purchaser shall have no rights by reason of (i) any subdivision
or consolidation of shares of stock of any class, (ii) the payment of any
dividend or (iii) any other increase or decrease in the number of shares of
stock of any class. Any issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall not
affect, and no adjustment by reason thereof shall be made with respect to,
the number or Exercise Price of Shares subject to an Option. The grant of an
Option pursuant to the Plan shall not affect in any way the right or power of
the Company to make adjustments, reclassifications, reorganizations or
changes of its capital or business structure, to merge or consolidate or to
dissolve, liquidate, sell or transfer all or any part of its business or
assets.

SECTION 9. SECURITIES LAW REQUIREMENTS.

         Shares shall not be issued under the Plan unless the issuance and
delivery of such Shares comply with (or are exempt from) all applicable
requirements of law, including (without limitation) the Securities Act of
1933, as amended, the rules and regulations promulgated thereunder, state
securities laws and regulations, and the regulations of any stock exchange or
other securities market on which the Company's securities may then be traded.

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SECTION 10. NO RETENTION RIGHTS.

         Nothing in the Plan or in any right or Option granted under the Plan
shall confer upon the Purchaser or Optionee any right to continue in Service
for any period of specific duration or interfere with or otherwise restrict
in any way the rights of the Company (or any Parent or Subsidiary employing
or retaining the Purchaser or Optionee) or of the Purchaser or Optionee,
which rights are hereby expressly reserved by each, to terminate his or her
Service at any time and for any reason, with or without cause.

SECTION 11. DURATION AND AMENDMENTS.

         (a) TERM OF THE PLAN. The Plan, as set forth herein, shall become
effective on the date of its adoption by the Board of Directors, subject to
the approval of the Company's shareholders. In the event that the
shareholders fail to approve the Plan within 12 months   after its adoption
by the Board of Directors, any grants of Options or sales or awards of Shares
that have already occurred shall be rescinded, and no additional grants,
sales or awards shall be made thereafter under the Plan. The Plan shall
terminate automatically 10 years after its adoption by the Board of Directors
and may be terminated on any earlier date pursuant to Subsection (b) below.

         (b) RIGHT TO AMEND OR TERMINATE THE PLAN. The Board of Directors may
amend, suspend or terminate the Plan at any time and for any reason;
provided, however, that any amendment of the Plan which increases the number
of Shares available for issuance under the Plan (except as provided in
Section 8), or which materially changes the class of persons who are eligible
for the grant of ISOs, shall be subject to the approval of the Company's
shareholders. Shareholder approval shall not be required for any other
amendment of the Plan.

         (c) EFFECT OF AMENDMENT OR TERMINATION. No Shares shall be issued or
sold under the Plan after the termination thereof, except upon exercise of an
Option granted prior to such termination. The termination of the Plan, or any
amendment thereof, shall not affect any Share previously issued or any Option
previously granted under the Plan.

SECTION 12. DEFINITIONS.

         (a) "BOARD OF DIRECTORS" shall mean the Board of Directors of the
Company, as constituted from time to time.

         (b) "CHANGE IN CONTROL" shall mean:

                  (i) The consummation of a merger or consolidation of the
         Company with or into another entity or any other corporate
         reorganization, if persons who were not shareholders of the Company
         immediately prior to such merger, consolidation or other reorganization
         own immediately after such merger, consolidation or other
         reorganization 50% or more of the voting power of the outstanding
         securities of each of (A) the continuing or surviving entity and (B)
         any direct or indirect parent corporation of such continuing or
         surviving entity; or

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                  (ii) The sale, transfer or other disposition of all or
         substantially all of the Company's assets.

A transaction shall not constitute a Change in Control if its sole purpose is
to change the state of the Company's incorporation or to create a holding
company that will be owned in substantially the same proportions by the
persons who held the Company's securities immediately before such transaction.

         (b) "CODE" shall mean the Internal Revenue Code of 1986, as amended.

         (c) "COMMITTEE" shall mean a committee of the Board of Directors, as
described in Section 2(a).

         (d) "COMPANY" shall mean DrugAbuse Sciences, Inc., a California
corporation.

         (e) "CONSULTANT" shall mean a person who performs bona fide services
for the Company, a Parent or a Subsidiary as a consultant or advisor,
excluding Employees and Outside Directors.

         (f) "EMPLOYEE" shall mean any individual who is a common-law
employee of the Company, a Parent or a Subsidiary.

         (g) "EXERCISE PRICE" shall mean the amount for which one Share may
be purchased upon exercise of an Option, as specified by the Board of
Directors in the applicable Stock Option Agreement.

         (h) "FAIR MARKET VALUE" shall mean the fair market value of a Share,
as determined by the Board of Directors in good faith. Such determination
shall be conclusive and binding on all persons.

         (i) "ISO" shall mean an employee incentive stock option described in
Section 422(b) of the Code.

         (j) "NONSTATUTORY OPTION" shall mean a stock option not described in
Sections 422(b) or 423(b) of the Code.

         (k) "OPTION" shall mean an ISO or Nonstatutory Option granted under
the Plan and entitling the holder to purchase Shares.

         (l) "OPTIONEE" shall mean an individual who holds an Option.

         (m) "OUTSIDE DIRECTOR" shall mean a member of the Board of Directors
who is not an Employee.

         (n) "PARENT" shall mean any corporation (other than the Company) in
an unbroken chain of corporations ending with the Company, if each of the
corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain. A corporation that attains the status of a

                                    8

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Parent on a date after the adoption of the Plan shall be considered a Parent
commencing as of such date.

         (o) "PLAN" shall mean this DrugAbuse Sciences, Inc. 1999 Stock Plan
B.

         (p) "PURCHASE PRICE" shall mean the consideration for which one
Share may be acquired under the Plan (other than upon exercise of an Option),
as specified by the Board of Directors.

         (q) "PURCHASER" shall mean an individual to whom the Board of
Directors has offered the right to acquire Shares under the Plan (other than
upon exercise of an Option).

         (r) "SERVICE" shall mean service as an Employee, Outside Director or
Consultant.

         (s) "SHARE" shall mean one share of Stock, as adjusted in accordance
with Section 8 (if applicable).

         (t) "STOCK" shall mean the Common Stock of the Company.

         (u) "STOCK OPTION AGREEMENT" shall mean the agreement between the
Company and an Optionee which contains the terms, conditions and restrictions
pertaining to the Optionee's Option.

         (v) "STOCK PURCHASE AGREEMENT" shall mean the agreement between the
Company and a Purchaser who acquires Shares under the Plan which contains the
terms, conditions and restrictions pertaining to the acquisition of such
Shares.

         (w) "SUBSIDIARY" means any corporation (other than the Company) in
an unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain. A corporation that
attains the status of a Subsidiary on a date after the adoption of the Plan
shall be considered a Subsidiary commencing as of such date.

                                    9

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SECTION 13. EXECUTION.

         To record the adoption of the Plan by the Board of Directors, the
Company has caused its authorized officer to execute the same.

                                         DRUGABUSE SCIENCES, INC.

                                         By:
                                             ----------------------------
                                         Title:
                                               --------------------------

                                    10<PAGE>

                                                                   Exhibit 10.8

                               SUBLEASE AGREEMENT

I.       DEFINED TERMS:

BASE RENT MONTHLY:        $4,500.00 (1,500 square feet @
                          $3.00 per rentable square foot)

BUILDING:                 1430 O'Brien Drive, Menlo Park, CA

EFFECTIVE DATE:           OCTOBER 1, 1998

EXPIRATION DATE:          SEPTEMBER 30, 2000

LANDLORD:                 Menlo Business Park, Joint Venture, a
                          California general partnership

LEASABLE SQUARE FEET:     1,500 square feet

MASTER LEASE:             That certain Lease dated March 21, 1988 as amended on
                          March 23, 1992, June 23, 1993 and April 10, 1997
                          between Menlo Business Park as Landlord, and ETAK,
                          Inc., as Tenant.

PERMITTED USES:           General Office

PREMISES:                 That portion of Building 7 along with the
                          non-exclusive use of a pro-rata share of parking
                          spaces as shown on Exhibit "A" together with
                          shared use of the Common Areas

COMMENCEMENT DATE:        OCTOBER 1, 1998

SUBLESSEE:                Drug Abuse Sciences, Inc.

SUBLESSEE'S ADDRESS:      1430 O'Brien Drive, Suite E
                          Menlo Park, CA  94025

SUBLESSOR:                ETAK, Inc.

SUBLESSOR'S ADDRESS:      1605 Adams Drive
                          Menlo Park, CA  94025

TERM:                     Twenty-four (24) months

EXHIBITS:                 EXHIBIT "A" - Premises
                          EXHIBIT "B" - Master Lease
                          EXHIBIT "C" - Landlord's Consent

<PAGE>

         THIS SUBLEASE AGREEMENT ("SUBLEASE") is entered into as of the
Effective Date by and between Sublessor and Sublessee.

         THE PARTIES ENTER this Sublease on the basis of the following facts,
understandings and intentions:

         A. Sublessor is presently a lessee of the Premises in the Building
pursuant to the Master Lease by and between Landlord and Sublessor. A copy of
the Master Lease with all exhibits and addenda thereto, is attached hereto as
EXHIBIT "B".

         B. Sublessor desires to sublease a portion of the Premises to Sublessee
and Sublessee desires to sublease a portion of the Premises ("SUBLEASE
PREMISES") from Sublessor on all of the terms, covenants and conditions
hereinafter set forth.

         C. All of the terms and definitions in the Definitions Section are
incorporated herein by this reference.

         NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and promises
of the parties, the parties hereto agree as follows:

         1. SUBLEASE. Sublessor shall sublease to Sublessee, and Sublessee shall
sublease from Sublessor the Premises for the Term upon all of the terms,
covenants and conditions herein contained. In addition, Sublessor shall lease to
Sublessee, and Sublessee shall lease from Sublessor, any and all permanent
improvements ("IMPROVEMENTS") on the Premises constructed and/or owned by
Sublessor or Landlord, upon all of the terms, covenants and conditions herein
contained. As used herein, "PREMISES" shall include the Sublease Premises and
the Improvements.

                  1.1 ACCESS. Sublessee and Sublessee's employees, agent,
contractors and suppliers shall have the right at any time after the
Commencement Date to enter the Premises, at their sole risk. Sublessee shall
provide Sublessor, before such entry, with certificates of the insurance
required of Sublessee pursuant to the terms of this Sublease.

         2. CONDITION OF PREMISES. As of the Effective Date, Sublessee
acknowledges that Sublessee shall have conducted Sublessee's own investigation
of the Premises and the physical condition thereof, including accessibility and
location of utilities, improvements, existence of hazardous materials, including
but not limited to asbestos, asbestos containing materials, polychlorinated
biphenyls (PCB) and earthquake preparedness, which in Sublessee's judgment
affect or influence Sublessee's use of the Premises and Sublessee's willingness
to enter this Sublease. Sublessee recognizes that Sublessor would not sublease
the Premises except on an "as is" basis (except painting and cleaning of carpet)
and acknowledges that Sublessor has made no representations of any kind in
connection with improvements or physical conditions on, or bearing on, the use
of the Premises. Sublessee shall rely solely on Sublessee's own inspection and
examination of such items and not on any representations of Sublessor, express
or implied. Sublessee further recognizes and agrees that neither Sublessor nor
Landlord shall be required to perform any work of construction, alteration or
maintenance of or to the Premises; provided, however, Sublessor shall deliver
the Premises to Sublessee in broom clean condition and in the same arrangement
and condition as the Premises now is, except that Sublessor shall remove on

                                      2
<PAGE>

or before the Commencement Date all of Sublessor's furnishings (except those
furnishings noted in Addendum One) located on the Premises and shall repair
wall damage, touch up paint and shampoo carpets.

*Sublessee hereby acknowledges that the Premises is accessible only through a
ground floor entrance and that Premises is not accessible by elevator or other
handicapped accessible means.

         3.       SUBLEASE SUBJECT TO MASTER LEASE.

                  3.1 INCLUSIONS. It is expressly understood, acknowledged and
agreed by Sublessee that all of the other terms, conditions and covenants of
this Sublease shall be those stated in the Master Lease except as excluded in
Section 3.2 herein, modified as appropriate in the circumstances so as to make
such Articles, and any Sections contained therein, applicable only to the
subleasing hereunder by Sublessor of the particular Premises covered hereby.
Sublessee shall assume, be subject to, be bound by and comply with all of said
Articles and Sections of the Master Lease with respect to the Premises and shall
satisfy all applicable terms and conditions of the Master Lease for the benefit
of both Sublessor and Landlord, it being understood and agreed that wherever in
the Master Lease the word "Tenant" appears; for the purposes of this Sublease,
the word "Sublessee" shall be substituted, and wherever the word "Landlord"
appears, for the purpose of this Sublease, the word "Sublessor" shall be
substituted; and that upon the breach of any of said terms, conditions or
covenants of the Master Lease by Sublessee or upon the failure of Sublessee to
pay Rent or comply with any of the provisions of this Sublease, Sublessor may
exercise any and all rights and remedies granted to Landlord by the Master
Lease. In the event of any conflict between this Sublease and the Master Lease,
the terms of this Sublease shall control. It is further understood and agreed
that Sublessor has no duty or obligation to Sublessee under the aforesaid
Articles and Sections of the Master Lease other than to maintain the Master
Lease in full force and effect during the Term of this Sublease; provided,
however, that Sublessor shall not be liable to Sublessee for any earlier
termination of the Master Lease which is not due to the fault of Sublessor.
Whenever the provisions of the Master Lease incorporated as provisions of this
Sublease require the written consent to Landlord, said provisions shall be
construed to require the written consent of both Landlord and Sublessor.
Sublessee hereby acknowledges that it has read and is familiar with all the
terms of the Master Lease, and agrees that this Sublease is subordinate and
subject to the Master Lease and that any termination thereof without the fault
of Sublessor shall likewise terminate this Sublease.

                  3.2 EXCLUSIONS. The terms and provisions of the following
Sections and portions of the Master Lease are not incorporated into this
Sublease:

                           (i) As to the Master Lease: Sections 3 (definitions
of Commencement Date, Monthly Rent, Premises, Tenant's Proportionate Share of
Building Expenses, Tenant's Proportionate Share of Project Expenses and Term;
5.a; 7; 11.a; 16; 17.c; 19; 26; and 32.

                  3.3 TIME FOR NOTICE. The time limits provided for in the
provisions of the Master Lease for the giving of notice, making of demands,
performance of any act, condition or covenant, or the exercise of any right,
remedy or option, are amended for the purposes of this Sublease by lengthening
or shortening the same in each instance by five (5) days, as appropriate, so
that notices may be given, demands made, or any act, condition or covenant
performed, or any

                                      3
<PAGE>

right, remedy or option hereunder exercised, by Sublessor or Sublessee, as
the case may be, within the time limit relating thereto contained in the
Master Lease. If the Master Lease allows only five (5) days or less for
Sublessor to perform any act, or to undertake to perform such act, or to
correct any failure relating to the Premises or this Sublease, then Sublessee
shall nevertheless be allowed three (3) days to perform such act, undertake
such act and/or correct such failure.

         4. LANDLORD'S OBLIGATIONS. It shall be the obligation of Landlord to
(i) provide all services to be provided by Landlord under the terms of the
Master Lease and (ii) to satisfy all obligations and covenants of Landlord made
in the Master Lease. Sublessee acknowledges that Sublessor shall be under no
obligation to provide any such services or satisfy any such obligations or
covenants; provided, however, Sublessor, upon written notice by Sublessee, shall
diligently attempt to enforce all obligations of Landlord under the Master
Lease.

         5. RENT.

                  5.1 BASE RENT. Upon execution hereof, Sublessee shall deliver
the first MONTHS Base Rent to Sublessor, to be applied against Sublessee's
obligation for Base Rent for the month of OCTOBER, 1998. Sublessee shall pay to
Sublessor the Base Rent in advance on the first day of each month of the Term,
commencing on the Commencement Date. In the event the first day of the Term
shall not be the first day of a calendar month or the last day of the Term is
not the last day of the calendar month, the Base Rent shall be appropriately
prorated based on a thirty (30) day month. All installments of Base Rent shall
be delivered to Sublessor's Address, or at such other place as may be designated
in writing from time to time by Sublessor, in lawful money of the United States
and without deduction or offset for any cause whatsoever.

                  5.2 BUILDING EXPENSES AND PROJECT EXPENSES. Sublessor shall be
responsible for all costs and expenses of every kind and nature which may be
imposed, pursuant to the Master Lease including, but not limited to, additional
rent, operating costs, and tax costs, all as defined in the Master Lease.

                                      4
<PAGE>

         6. USE. The Premises is to be used for the Permitted Uses, and for no
other purpose or business without the prior written consent of Landlord and
Sublessor. In no event shall the Premises be used for a purpose or use
prohibited by the Master Lease.

         7. REPAIRS AND MAINTENANCE. Sublessor shall be responsible for
maintaining the Buildings in good operation condition and repair and for
providing the following services and utilities: garbage collection, HVAC
maintenance and repair, and general building maintenance. Sublessee shall, at
Sublessee's sole expense, repair any area damaged by Sublessee, Sublessee's
agents, employees and visitors. Sublessee acknowledges that Sublessor is under
no duty to make repairs or improvements to the Premises, other than those
specifically listed in Addendum One, and Sublessee hereby waives any right it
may have at law or in equity to enforce the same. Notwithstanding the foregoing,
to the extent Landlord is obligated under the Master Lease to make any repairs
in or to the Premises, Sublessor, upon written notice by Sublessee, shall
diligently attempt to enforce such obligation of Landlord.

         8. ASSIGNMENT. Sublessee shall not assign this Sublease or further
sublet any portion of the Premises, or mortgage, pledge, hypothecate, license,
or in any manner transfer its interest in the Premises or this Sublease.

         9. DAMAGE AND DESTRUCTION.

                  9.1 TERMINATION OF MASTER LEASE. If the Premises is damaged or
destroyed and Landlord or Sublessor exercises any option either may have to
terminate the Master Lease, if any, this Sublease shall terminate as of the date
of the termination of the Master Lease.

                  9.2 CONTINUATION OF SUBLEASE. If the Master Lease is not
terminated following any damage or destruction as provided above, this Sublease
shall remain in full force and effect. Sublessee shall be obligated to repair
the Premises to substantially the condition it was in prior to such damage or
destruction to the extent that insurance proceeds exist to cover the cost of
such repairs, provided, however, (i) that Sublessor shall diligently enforce any
obligation of Landlord to rebuild the Premises in accordance with the Master
Lease; and (ii) Sublessor shall make available to Sublessee insurance proceeds
Sublessor receives as a result of such damage or destruction limited to
Sublessee's actual out of pocket expenses.

         10. EMINENT DOMAIN.

                  10.1 TOTAL CONDEMNATION. If all of the Premises is condemned
by eminent domain, inversely condemned or sold in lieu of condemnation, for any
public or a quasi-public use or purpose ("CONDEMNED" or "CONDEMNATION"), this
Sublease shall terminate as of the date of title vesting in such proceeding, and
Base Rent shall be adjusted to the date of termination.

                  10.2 PARTIAL CONDEMNATION. If any portion of the Premises is
Condemned, and Sublessor exercises any option to terminate the Master Lease,
this Sublease shall automatically terminate as of the date of the termination of
the Master Lease. If this Sublease is not terminated following any such
Condemnation, this Sublease shall remain in full force and effect and Sublessor
shall promptly restore the Premises to the extent of any Condemnation proceeds
recovered by Sublessor and, in addition, Sublessor shall diligently enforce any
rights under the Master Lease to require Landlord to rebuild the Premises. Base
Rent shall be equitably adjusted

                                      5
<PAGE>

to take into account interference with Sublessee's ability to conduct its
operations on the Premises as a result of the Premises being Condemned.
Sublessee hereby waives the provisions of California Code of Civil Procedure
Section 1265.130 permitting a court of law to terminate this Sublease.

                  10.3    SUBLESSEE'S AWARD. Subject to the provisions of the
Master Lease, Sublessee shall have the right to recover from the condemning
authority, but not from Sublessor, such compensation as may be separately
awarded to Sublessee in connection with costs and removing Sublessee's
merchandise, furniture, fixtures, leasehold improvements and equipment to a new
location.

         11. INSURANCE. All insurance policies required to be carried by
Sublessee, pursuant to the Master Lease, shall contain a provision whereby
Sublessor and Landlord are each named as additional insureds under such
policies.

         12. END OF TERM. At least two months prior to the expiration of the
Sublease, Sublessor and Sublessee shall determine whether Sublessee, or the
Landlord intends to require restoration, repair, or removal of any items
installed, modified, or damaged by Sublessee during the Term. If such
restoration or repair is required, Sublessee shall promptly and diligently
undertake such action and complete such work to Sublessor's reasonable
satisfaction of or before the Expiration Date. Upon the expiration of the Term
or sooner termination of this Sublease, Sublessee shall return the Premises to
Sublessee broom clean, in substantially the same condition as existed on the
Commencement Date, reasonable wear and tear excepted.

         13. SECURITY. Sublessee acknowledges that Sublessor has no obligation
or responsibility to Sublessee, under this Sublease, for security for the
Premises. Sublessee shall take all necessary and appropriate measures to
safeguard the Premises.

         14.      MISCELLANEOUS.

                  14.1    ENTIRE AGREEMENT. This Sublease contains all of the
covenants, conditions and agreements between the parties concerning the
Premises, and shall supersede all prior correspondence, agreements and
understandings concerning the Premises, both oral and written. No addition or
modification of any term or provision of this Sublease shall be effective
unless set forth in writing and signed by both Sublessor and Sublessee.

                  14.2    CAPTIONS. All captions and headings in this Sublease
are for the purposes of reference and convenience and shall not limit or expand
the provisions of this Sublease.

                  14.3    LANDLORD'S CONSENT. This Sublease is conditioned upon
Landlord's written approval of this Sublease on or before the Commencement
Date. If Landlord refuses to consent to this Sublease, this Sublease shall
terminate and neither party shall have any continuing obligation to the other
with respect to the Premises.

                  14.4    AUTHORITY. Each person executing this Sublease on
behalf of a party hereto represents and warrants that he or she is authorized
and empowered to do so and to thereby bind the party on whose behalf he or she
is authorized and empowered to do so and to thereby bind the party on whose
behalf he or she is signing.

                                       6

<PAGE>

                  14.5    ATTORNEYS' FEES. In the event either party shall
bring any action or proceeding for damages or for an alleged breach of any
provision of this Sublease to recover rents, or to enforce, protect or
establish any right or remedy hereunder, the prevailing party shall be entitled
to recover reasonable attorneys' fees and court costs as part of such action or
proceeding.

                  14.6    BROKER. Each party hereto represents to the other
that it has not had any dealings with a broker in connection with this Sublease
other than Tarlton Properties, Inc. Each party indemnifies the other and agrees
to hold the other party harmless from and against any and all liabilities or
expenses, including attorneys' fees and costs, arising out of or in connection
with claims made by any broker for commissions or fees resulting from this
Sublease.

         15. HOLDING OVER. Unless an agreement for a Sublease extension has
been reached and subject to Sublessor's and Landlord's prior approval of any
holdover, such holdover shall be on a month to month basis terminable by either
party upon thirty days (30) written notice to the other. In such event, Base
Rent shall be increased to one hundred twenty five percent (125%) of the Base
Rent payable during the last month of the subleased Term. If Sublessor or
Landlord does not approve holdover, Sublessee shall be in violation of the
Sublease if Sublessee has not vacated the Subleased Premises at the end of the
Term in the manner required by the Sublease.

         16. SECURITY DEPOSIT. Sublessee shall deposit with Sublessor the sum
of Nine Thousand dollars ($9,000.00) as a Security Deposit for the full and
faithful performance of every provision of this Sublease to be performed by
Sublessee. If Sublessee defaults with respect to any provision of this
Sublease, Sublessor may apply all or any part of the Security Deposit for the
payment of any Rent or other sum in default, the repair of such damage to the
Premises or the payment of any other amount which the Sublessor may spend or
become obligated to spend as outlined in Section 7 of the Lease.

         IN WITNESS WHEREOF, the parties hereto have executed two (2) or more
copies of this Sublease, effective as of the Effective Date.

Sublessor                                              Sublessee

ETAK, Inc.                                             Drug Abuse Sciences, Inc.

By:     /s/ Louis F. Corrado                      By:    /s/  Stanley A. Kaplan
   --------------------------------                  --------------------------
Print Name: Louis F. Corrado                                  Stanley A. Kaplan

Its:    Director, HR & General Affairs                   Its:  President & CEO
    ----------------------------------                       ------------------

                                       7

<PAGE>

                                    EXHIBIT A
                                    PREMISES

MENLO BUSINESS PARK                                                  BUILDING #7

SKETCH OF PROPERTY.

                                       8

<PAGE>

                                                                      EXHIBIT B

                               MENLO BUSINESS PARK

                               STANDARD FORM LEASE

                                 by and between

               MENLO BUSINESS PARK and PATRICIAN ASSOCIATES, INC.

                                  ("Landlord")

                                       and

                                   ETAK, INC.

                                   ("Tenant")

                                       9

<PAGE>

                                      LEASE

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

PARAGRAPH                                                              Page
---------                                                              -----
<S>                                                                    <C>
1.  PARTIES...............................................................3

2.  PREMISES..............................................................3

3.  DEFINITIONS...........................................................3

         (a)  Alterations.................................................3
         (b)  Anticipated Commencement Date...............................3
         (c)  Building....................................................3
         (d)  Building Expenses...........................................3
         (e)  CC&R's......................................................4
         (f)  City........................................................4
         (g)  Commencement Date...........................................4
         (h)  County......................................................4
         (i)  HVAC........................................................4
         (j)  Interest Rate...............................................4
         (k)  Landlord's Agents...........................................4
         (l)  Lot 7.......................................................4
         (m)  Monthly Rent................................................4
         (n)  Outside Area................................................4
         (o)  Premises....................................................4
         (p)  Project.....................................................4
         (q)  Common Area Expenses........................................4
         (r)  Real Property Taxes.........................................5
         (s)  Reference Rate..............................................5
         (t)  Rent........................................................5
         (u)  Security Deposit............................................5
         (v)  Sublease....................................................5
         (w)  Subrent.....................................................5
         (x)  Subtenant...................................................5
         (y)  Tenant Improvements.........................................5
         (z)  Tenant Improvement Amounts..................................5
         (aa)  Tenant's Personal Property.................................6
         (bb)  Tenant's Proportionate Share of Building Expenses..........6
         (cc)  Tenant's Proportionate Share of Common Area Expenses.......6
         (dd)  Term.......................................................6
         (ee)  Termination Date...........................................6

4.  LEASE TERM............................................................6

         (a)  Term........................................................6
</TABLE>

                                       i

<PAGE>

<TABLE>
<CAPTION>

<S>                                                                    <C>
         (b)  Commencement Date...........................................6
         (c)  Commencement Date Memorandum................................6
         (d)  Tenant Delays...............................................6
         (e)  Early Entry.................................................7
         (f)  Termination.................................................7
         (g)  Options to Extend...........................................7

5.  RENT..................................................................8

         (a)  Monthly Rent................................................8
         (b)  Adjustments.................................................8
         (c)  Additional Rent.............................................9
         (d)  Prorations..................................................9

6.  INTEREST AND LATE PAYMENT CHARGES.....................................9

7.  SECURITY DEPOSIT.....................................................10

8.  HOLDING OVER.........................................................10

9.  TENANT IMPROVEMENTS..................................................11

10.  CONDITION OF PREMISES...............................................11

11.  USE OF THE PREMISES.................................................12

         (a)  Tenant's Use...............................................12
         (b)  CC&R's.....................................................12
         (c)  Compliance.................................................12

12.  QUIET ENJOYMENT.....................................................13

13.  ALTERATIONS.........................................................13

         (a)  Permitted Alterations......................................13
         (b)  Notice.....................................................14

14.  SURRENDER OF THE PREMISES...........................................15

15.  REAL AND PERSONAL PROPERTY TAXES....................................15

         (a)  Payment by Tenant..........................................15
         (b)  Tax on Improvements........................................16
         (c)  Proration..................................................16
         (d)  Payment on Expiration of Term..............................16
         (e)  Personal Property Taxes....................................16
         (f)  Failure to Pay.............................................16

16.  UTILITIES AND SERVICES..............................................16

17.  BUILDING EXPENSES...................................................17

         (a)  Definition.................................................17

                                      ii
<PAGE>

         (b)  Payment....................................................18
         (c)  Tenant's Repairs and Maintenance...........................18
         (d)  Landlord's Repairs and Maintenance.........................18
         (e)  Waiver and Landlord Liability for Repairs..................19

18.  COMMON AREA EXPENSES................................................19

         (a)  Common Areas...............................................19
         (b)  Use of Common Areas........................................19
         (c)  Specific Provisions re: Vehicle Parking....................20
         (d)  Maintenance of Common Areas................................20
         (e)  Tenant's Share and Payment.................................21

19.  PARKING.............................................................21

20.  [THIS PARAGRAPH INTENTIONALLY LEFT BLANK]...........................21

21.  [THIS PARAGRAPH INTENTIONALLY LEFT BLANK]...........................21

22.  LANDLORD'S RIGHT TO ENTER THE PREMISES..............................21

23.  SIGNS...............................................................22

24.  INSURANCE...........................................................22

         (a)  Indemnification............................................22
         (b)  Tenant's Insurance.........................................23
         (c)  Land Insurance.............................................23
         (d)  Deductibles................................................24
         (e)  Certificates...............................................24
         (f)  Increased Coverage.........................................24
         (g)  Co-Insurer.................................................24
         (h)  Insurance Requirements.....................................24
         (i)  Landlord's Disclaimer......................................25
         (j)  Failure to Pay.............................................25

25.  WAIVED OF SUBROGATION...............................................25

26.  DAMAGE OR DESTRUCTION...............................................25

         (a)  Landlord's Obligation to Rebuild...........................25
         (b)  Landlord's Right to Terminate..............................25
         (c)  Limited Obligation to Repair...............................26
         (d)  Abatement of Rent..........................................26
         (e)  Uninsured Casualty.........................................27

27.  CONDEMNATION........................................................27

         (a)  Total Taking -Termination..................................27
         (b)  Partial Taking.............................................27
         (c)  No Apportionment of Award..................................28
         (d)  Temporary Taking...........................................28

                                     iii
<PAGE>

         (e)  Sale Under Threat of Condemnation..........................28

28.  ASSIGNMENT AND SUBLETTING...........................................28

         (a)  Landlord's Consent.........................................28
         (b)  Sublease Form..............................................29
         (c)  No Waiver..................................................29
         (d)  Information to be Furnished................................29
         (e)  Landlord's Alternatives....................................29
         (f)  Proration..................................................30
         (g)  Executed Original..........................................30
         (h)  Transfer to Purchaser......................................30
         (i)  Tenant Affiliates..........................................30

29.  DEFAULT.............................................................31

         (a)  Tenant's Default...........................................31
         (b)  Remedies...................................................32
         (c)  Landlord's Default.........................................33

30.  SUBORDINATION.......................................................34

31.  NOTICES.............................................................34

32.  ATTORNEYS'FEES......................................................35

33.  ESTOPPEL CERTIFICATE................................................35

34.  TRANSFER OF THE PREMISES BY LANDLORD................................36

35.  LANDLORD'S RIGHT TO PERFORM TENANT'S COVENANTS......................36

36.  TENANT'S REMEDY.....................................................36

37.  MORTGAGE PROTECTION.................................................36

38.  BROKERS.............................................................36

39.  ACCEPTANCE..........................................................37

40.  RECORDING...........................................................37

41.  [THIS PARAGRAPH INTENTIONALLY LEFT BLANK]...........................37

42.  MODIFICATIONS FOR LENDER............................................37

43.  SEWER FEES..........................................................37

44.  GENERAL.............................................................37

         (a)  Captions...................................................37
         (b)  Executed Copy..............................................37

                                     iv
<PAGE>

         (c)  Time.......................................................37
         (d)  Separability...............................................38
         (e)  Choice of Law..............................................38
         (f)  Gender; Singular, Plural...................................38
         (g)  Binding Effect.............................................38
         (h)  Waiver.....................................................38
         (i)  Entire Agreement...........................................38
         (j)  Authority..................................................38
         (k)  Contingency................................................39
         (l)  Release....................................................39
         (m)  Exhibits...................................................39
         (n)  Lease Summary..............................................39
</TABLE>

                                     v
<PAGE>

                                  LEASE SUMMARY

Lease Date:  March 21, 1988

Landlord:  Menlo Business Park and Patrician Associates, Inc.

For Menlo                      12121 Wilshire Blvd.
Business Park:                 Suite 512
                               Los Angeles, California  90025
                               Attn:  John O. Lewis

With a copy to:                The Lewis & Tarlton Company
                               P.O. Box 1212
                               Los Altos, California   94023
                               Attn:  Lorrin C. Tarlton

For Patrician                  Bankers Life Building
Associates, Inc.:              Fifth Floor
                               711 High Street
                               Des Moines, Iowa  50307

Address of Tenant:

Prior to                       1455 Adams Drive
Commencement Date:             Menlo Park, California

After Commencement             1430 O'Brien Drive, Suite A
Date:                          Menlo Park, California

Contact: Matt Pitchon      Telephone:       (415) 328-3825

Premises:         Approximately 25,775 sq. ft. of Building No. 7
                  (consisting of 18,222 sq. ft. on the ground floor
                  and 7,553 sq. ft. on the mezzanine level)

Building Address:          1430 O'Brien Drive, Suite A
                           Menlo Park, California

Square Footage of Building No. 7:  63,390 sq. ft.

Square Footage of all leasable Lots within the Project:  2,060,693

Tenant's Percentage Share of Common
                                         Area Expenses:        25.775  =  40.66%
                                                               ------
                                                               63,390

                                       1
<PAGE>

Tenant's Percentage Share
       of Project Expenses:                          153,594 x 40.66%  =  3.03%
                                                     ----------------
                                                     2,060,693

Anticipated Commencement Date:      May 15, 1988

Term:                      Thirty-Six (36) months, with one (1) 2-year option
                           to extend

Monthly Rent:              $16,622.64/month, triple net, with annual CPI
                           adjustments

Security Deposit:          $30,000.00

Signage:                   One monument sign in common with other tenants of
                           Building No. 7, per Menlo Park Signage Ordinance; one
                           (1) identification sign to be painted, at Tenant's
                           sole expense, on the glass frontage of the Premises.

                                      2
<PAGE>

                                      LEASE

         1.       PARTIES. THIS LEASE (the "Lease"), dated ____________________
____________________, 1988, is entered into by and between MENLO BUSINESS PARK,
a California general partnership, whose address is 12121 Wilshire Boulevard,
Suite 512, Los Angeles, California 90025, and PATRICIAN ASSOCIATES, INC., a
California corporation, whose address is Fifth Floor, Bankers Life Building, 711
High Street, Des Moines, Iowa 50307 ("Landlord") and ETAK, INC., a California
corporation, whose address is 1455 Adams Drive, Menlo Park, California
("Tenant").

         2.       PREMISES. Landlord hereby leases to Tenant and Tenant hereby
leases from Landlord those certain premises (the "Premises") consisting of
25,775 square feet of combined ground floor and mezzanine space in that certain
building ("Building") commonly known as 1430 O'Brien Drive containing a total
area of approximately 63,390 square feet, all as shown on EXHIBIT "A-1" attached
hereto, together with the right to use in common with the other tenants of the
Building the driveways and walkways for access thereto. Tenant shall have the
right to use the parking areas described in Paragraph 19 and shown on EXHIBIT
"A-1" hereto, and the Common Areas located within the Outside Areas of the
Project, as such terms are hereinafter defined, subject to the terms of this
Lease. Upon the Commencement Date (as hereinafter defined) or as soon thereafter
as is practicable, Landlord's engineer or architect shall enter the Premises for
the purpose of re-measuring the Premises. Upon completion of said
re-measurement, said engineer shall deliver to Landlord and Tenant certificates
which, for the purposes of this Lease, shall conclusively establish the area (in
square feet) of the Premises, at which time, Tenant's Proportionate Share of
Building Expenses (as hereinafter defined), Tenant's Proportionate Share of
Common Area Expenses (as hereinafter defined) and Tenant's proportionate share
of parking spaces contained in Lot 7 (as hereinafter defined) shall be adjusted
to reflect the findings of said engineer or architect.

         3.       DEFINITIONS. The following terms shall have the following
  meanings in this Lease:

                  (a)      "ALTERATIONS" shall mean any alterations,
         decorations, additions or improvements made in, on or about the
         Building or the Premises after the Commencement Date, including, but
         not limited to, lighting, heating, ventilating, air conditioning and
         electrical fixtures, pipes and conduits, partitioning, wall coverings,
         cabinetry, carpeting and/or other floor covering, ceiling tile,
         fixtures and carpentry installations.

                  (b)      "ANTICIPATED COMMENCEMENT DATE" shall be May 15,
         1988.

                  (c)      "BUILDING" shall mean that certain building of
         approximately sixty-three thousand three hundred ninety (63,390) square
         feet the address of which is 1430 O'Brien Drive, Menlo Park,
         California.

                  (d)      "BUILDING EXPENSES" shall mean those expenses related
         to the Building as defined by Paragraph 17 of this Lease.

                                      3
<PAGE>

                  (e)      "CC&R'S" shall mean those certain covenants,
         conditions and restrictions recorded August 14, 1985, as Instrument No.
         85082618, Records of San Mateo County, California, as the same are
         amended from time to time.

                  (f)      "CITY" shall mean the City of Menlo Park, State of
         California.

                  (g)      "COMMENCEMENT DATE" shall mean the first day of the
         Lease as determined in accordance with Paragraph 4(b).

                  (h)      "COUNTY" shall mean the County of San Mateo, State of
         California.

                  (i)      "HVAC" shall mean the heating, ventilating and air
         conditioning system serving the Building.

                  (j)      "INTEREST RATE" shall mean the "Reference Rate"
         described below, but in no event greater than the maximum rate of
         interest permitted by law.

                  (k)      "LANDLORD'S AGENTS" shall mean Landlord's authorized
         agents, contractors, partners, subsidiaries, directors, officers and
         employees.

                  (l)      "LOT 7" shall mean the legal lot containing 153,594
         square feet of land area upon which the Building is situated.

                  (m)      "MONTHLY RENT" shall mean the rent payable pursuant
         to Paragraph 5(a), as adjusted from time to time pursuant to the terms
         of this Lease.

                  (n)      "OUTSIDE AREA" shall mean all areas and facilities
         within the Project exclusive of the Premises and other portions of the
         Project leased exclusively to other tenants. The Outside Area includes,
         but is not limited to, striped parking areas, access and perimeter
         roads, sidewalks, landscaped areas and similar areas and facilities.
         Tenant's use of the Outside Areas shall be subject to the reasonable
         rules and regulations established by Landlord from time to time.

                  (o)      "PREMISES" shall mean the 25,775 square foot portion
         of the Building (consisting of 18,222 square feet on the ground floor
         and 7,553 square feet on the mezzanine level) for the exclusive use of
         Tenant, as shown on EXHIBIT "A-1" hereto and non-exclusive access
         rights to the Building and the use of 71 of the 177 parking spaces on
         Lot 7.

                  (p)      "PROJECT" shall mean that certain real Property, and
         all improvements thereon, including the Building, other buildings, if
         any, and related improvements, as shown on EXHIBIT "A-2" hereto.

                  (q)      "COMMON AREA EXPENSES" shall mean those expenses
         related to the Project as set forth in Paragraph 18 of this Lease.

                                      4
<PAGE>

                  (r)      "REAL PROPERTY TAXES" shall mean any form of tax,
         assessment, license, fee, rent tax, levy, penalty (if a result of
         Tenant's delinquency), real property or other tax (other than
         Landlord's federal and state net income, gross receipts, estate,
         succession, inheritance, or franchise taxes), now or hereafter imposed
         by any authority having the direct or indirect power to tax or by any
         city, county, state or federal government or any improvement district
         or other district or division thereof, whether such tax or any portion
         thereof: (i) is determined by the area of the Premises or any part
         thereof or the rent and other sums payable hereunder by Tenant or by
         other tenants of the Project, including, but not limited to, any gross
         income or excise tax levied by any of the foregoing authorities with
         respect to receipt of such rent or other sums due under this Lease;
         (ii) is levied or assessed in lieu of, in substitution for, or in
         addition to, existing or additional taxes with respect to the Project
         or the Premises whether or not now customary or within the
         contemplation of the parties; or (iii) is based upon any legal or
         equitable interest of Landlord in the Project or the Premises or any
         part thereof.

                  (s)      "REFERENCE RATE" shall mean two percent (2%) above
         the rate of interest as publicly announced by Wells Fargo Bank for
         ninety (90) day unsecured loans to corporate borrowers with the highest
         credit standing.

                  (t)      "RENT" shall mean Monthly Rent plus the Additional
         Rent defined in Paragraph 5(c).

                  (u)      "SECURITY DEPOSIT" shall mean that amount held by
         Landlord pursuant to Paragraph 7.

                  (v)      "SUBLEASE" shall mean any transfer, sublease,
         assignment, license or concession agreement, encumbrance or
         hypothecation of this Lease or the Tenant's interest in the Lease or in
         and to all or any portion of the Premises. If Tenant is a partnership,
         a withdrawal or change of partners owning more than a fifty percent
         (50%) interest in such partnership, or if Tenant is a privately held
         corporation, any transfer of more than fifty percent (50%) of its
         outstanding stock, shall constitute a transfer herein.

                  (w)      "SUBRENT" shall mean consideration of any kind
         received, or to be received, by Tenant from a Subtenant as a result of
         its sublease.

                  (x)      "SUBTENANT" shall mean the person or entity with whom
         a Sublease agreement is proposed to be or is made.

                  (y)      "TENANT IMPROVEMENTS" shall mean those certain
         improvements to the Premises to be constructed pursuant to EXHIBIT "B".

                  (z)      "TENANT IMPROVEMENT AMOUNTS" shall mean the
         Additional Rent paid by Tenant to Landlord in order to compensate
         Landlord for the cost of additional Tenant Improvements.

                                      5
<PAGE>

                  (aa)     "TENANT'S PERSONAL PROPERTY" shall mean Tenant's
         removable trade fixtures, furniture, equipment and other personal
         property in the Premises.

                  (bb)     "TENANT'S PROPORTIONATE SHARE OF BUILDING EXPENSES"
         shall mean the square footage of the Premises (25,775) divided by the
         square footage of the Building (63,390) which equals 40.66%.

                  (cc)     "TENANT'S PROPORTIONATE SHARE OF COMMON AREA
         EXPENSES" shall mean the square footage of Lot 7 (153,594) times 40.66%
         (62,451.3204) divided by the square footage of the leaseable Lots in
         the Project (2,060,693) which equals 3.03%.

                  (dd)     "TERM" shall mean the term of this Lease set forth in
         Paragraph 4(a) as it may be extended pursuant to Paragraph 4(g) below.

                  (ee)     "TERMINATION DATE" shall mean the date upon which
         this Lease shall terminate pursuant to the terms of this Lease.

                  4.       LEASE TERM.

                           (a)      TERM. The Term of this Lease shall be for a
         period of thirty-six (36) months from the Commencement Date.

                           (b)      COMMENCEMENT DATE. The Commencement Date of
         this Lease shall be the earliest occurring of the following dates:

                                    (i)      The date by which (A) the City has
                  approved the Tenant Improvements constructed pursuant to
                  EXHIBIT "B" in accordance with its building code, as evidenced
                  by its written approval of such Tenant Improvements in
                  accordance with the building permits issued for such Tenant
                  Improvements, and (B) the architect supervising the
                  construction of the Tenant Improvements has certified in
                  writing to Tenant and Landlord that Tenant Improvements
                  described in EXHIBIT "B" have been substantially completed in
                  accordance with the Plans approved by the parties; or

                                    (ii)     The date Tenant commences occupancy
                  of the Premises, for the purpose of commencing its business
                  therein in the ordinary course, with the written consent of
                  Landlord.

                  (c)      COMMENCEMENT DATE MEMORANDUM. When the actual
         Commencement Date is determined, the parties shall execute a
         Commencement Date Memorandum setting forth such date in the form shown
         in EXHIBIT "C".

                  (d)      TENANT DELAYS. If the Commencement Date has been
         delayed beyond the Anticipated Commencement Date due to "Tenant Delays"
         as described in EXHIBIT "B", then Tenant shall pay to Landlord on the

                                      6
<PAGE>

         Commencement Date the sum calculated pursuant to the provisions of said
         EXHIBIT "B".

                  (e)      EARLY ENTRY. If Tenant is permitted to enter the
         Premises prior to the Commencement Date for the purpose of inspection
         of the work in progress, or for the fixturing of the Premises or for
         any other purpose permitted in writing by Landlord, such early entry
         shall be at Tenant's sole risk and subject to all the terms and
         provisions set forth in Paragraph 12 of EXHIBIT "B".

                  (f)      TERMINATION.

                           (i)      Subject to delays due to causes beyond the
                  reasonable control of Landlord, Landlord shall use reasonable
                  speed and diligence in the construction of the Tenant
                  Improvements and shall use its commercially reasonable best
                  efforts to have the Premises ready for Tenant's occupancy on
                  or before the Anticipated Commencement Date; provided,
                  however, that nothing contained in this Lease shall be
                  construed to create a liability on the part of Landlord for
                  its failure, due to any cause other than the gross negligence
                  or willful misconduct of Landlord, to have the Premises ready
                  for occupancy on said date, as extended pursuant to the
                  provisions of Subparagraph 4(f)(ii) below.

                           (ii)     Except as extended for the period of time
                  equal to any "Tenant Delays" as described in Subparagraph (d)
                  above, if the Commencement Date shall not have occurred before
                  six (6) months from the date hereof, either party, at its
                  option, and at no fault to the terminating party, may
                  terminate this Lease by giving thirty (30) days written notice
                  of its election to so terminate to the other party. If this
                  option is exercised by either party, this Lease shall be of no
                  further force or effect, and neither party shall have any
                  right or claim against the other except with respect to claims
                  of gross negligence or willful misconduct. Both parties hereby
                  agree to cooperate in good faith and with due diligence in
                  order to avoid the termination contemplated by this
                  Subparagraph 4(f)(ii), including the permission by Landlord to
                  allow Tenant to enter upon and occupy, on a reasonable rental
                  proration, those portions of the Premises which are complete
                  and which Tenant may occupy pursuant to applicable law.

                  (g)      OPTIONS TO EXTEND. Landlord hereby grants Tenant one
         (1) option (the "Option") to extend the Term for a period of two (2)
         years (the "Extension Term"). The Option must be exercised, if at all,
         by written notice from Tenant to Landlord delivered at least four (4)
         months (or earlier if practicable) prior to the expiration of the
         initial Term. All of the terms and conditions of this Lease shall
         remain in effect during the Extension Term except for Monthly Rent,
         which shall be as set forth below in Paragraph 5. Notwithstanding the
         foregoing, Tenant shall not be permitted to exercise the Option if, on
         the date of such exercise Tenant either (i) is in default under this
         Lease or (ii) has elected to have the Mezzanine improved as set forth
         in

                                      7
<PAGE>

         EXHIBIT "B". Notwithstanding anything contained in this Lease to the
         contrary, in the event Tenant elects to have the Mezzanine
         improved as set forth in EXHIBIT "B", Tenant's right to
         exercise the Option shall thereupon cease and Landlord and Tenant
         hereby agree that the Term of this Lease shall terminate three (3)
         years from the date upon which such "Mezzanine improvements" are
         completed.

                  5.       RENT.

                           (a)      MONTHLY RENT. Tenant shall pay to Landlord,
         in lawful money of the United States, for each calendar month of the
         Term, Monthly Rent in the amount of Sixteen Thousand Six Hundred
         Twenty-Two and 64/100 Dollars ($16,622.64), subject to the adjustment
         as provided in Paragraph 5(b) below, in advance, on the first day of
         each calendar month of the Term, without abatement, deduction, claim,
         offset, prior notice or demand. Tenant shall pay to Landlord Sixteen
         Thousand Six Hundred Twenty-Two and 64/100 Dollars ($16,622.64), which
         amount represents Monthly Rent payable for the first month of the Term
         on or prior to the date of Tenant's occupancy of the Premises.

                           (b)      ADJUSTMENTS.

                                    (i)      The Monthly Rent as set forth
                  hereinabove shall be increased effective on the yearly
                  anniversary of the Commencement Date of each year during the
                  Term of this Lease or the Extension Term, as the case may be,
                  in accordance with the percentage increase, if any, in the
                  Consumer Price Index - Urban Wage Earners and Clerical Works
                  (San Francisco-Oakland Area; Base: 1982-84=100) ("Index"), as
                  published by the United States Department of Labor, Bureau of
                  Labor Statistics. The Index for the month next preceding the
                  yearly anniversary of the Commencement Date of this Lease or
                  the Extension Term, as the case may be, shall be compared with
                  the Index for the like month of the previous year and the
                  Monthly Rent shall be increased and paid thereafter in
                  accordance with the percentage increase, if any, between such
                  Indices. In no event, however, shall the percentage increase
                  in any year during the Term of this Lease or the Extension
                  Term, as the case may be, be less than four percent (4%) or
                  greater than eight percent (8%) of the Monthly Rent in effect
                  for the immediately preceding year of the Term or the
                  Extension Term, as the case may be. Should said Bureau
                  discontinue the publication of the above Index, or publish the
                  same less frequently, or vary the method of calculation of
                  same, or alter the same in some other manner, then Landlord
                  shall adopt, at its sole discretion, a substitute index or
                  substitute procedure which reasonably reflects and monitors
                  comparable consumer prices.

                           (ii)     In the event the "Costs" (as such term is
                  defined in Paragraph 5 of EXHIBIT "B") of designing and
                  constructing the Tenant Improvements exceed the Improvement
                  Allowance (as such term is

                                      8
<PAGE>

                  defined in EXHIBIT "B") and all or  any portion of such
                  excess is attributable to Tenant's "Changes in Plans" (as
                  provided in EXHIBIT "B"), the Monthly Rent shall be
                  increased by an amount equal to One and Five-Tenths Cent
                  ($.015) multiplied by the dollar difference between the
                  Improvement Allowance and the final "Costs" of the Tenant
                  Improvements.

                           (iii)    In the event Tenant elects to have the
                  "mezzanine space" contained in the Premises improved as
                  provided in EXHIBIT "B", the Monthly Rent shall be increased,
                  upon completion of such improvements, by an amount
                  equal to One and Five-Tenths Cent ($.015) multiplied by the
                  cost of designing and constructing said improvements. If the
                  cost of said improvements exceeds One Hundred Eighty-Eight
                  Thousand Eight Hundred Twenty-Five Dollars ($188,825.00),
                  Tenant shall pay to Landlord within thirty (30) days of
                  invoice, that portion of the actual cost that exceeds One
                  Hundred Eighty-Eight Thousand Eight Hundred Twenty-Five
                  Dollars ($188,825.00).

                  (c)      ADDITIONAL RENT. All amounts required to be paid by
         Tenant under this Lease (exclusive of Monthly Rent), including, without
         limitation, Real Property Taxes payable pursuant to Paragraph 15
         hereof, repair and maintenance charges payable pursuant to Paragraph 17
         hereof and insurance premiums payable pursuant to Paragraph 24 hereof
         shall constitute Additional Rent.

                  (d)      PRORATIONS. If the Commencement Date is not the first
        (1st) day of a month, or if the Termination Date of this Lease is not
         the last day of a month, a prorated installment of Monthly Rent shall
         be paid for the fractional month during which this Lease commences or
         terminates.

         6.       INTEREST AND LATE PAYMENT CHARGES. In the event Tenant fails
to make any payment to Landlord when due, such payment shall accrue interest
from the date such payment was due, until paid, at the Interest Rate, as defined
in Paragraph 3(i) above. In addition, Tenant acknowledges that late payment by
Tenant to Landlord of Rent and other charges provided for under this Lease will
cause Landlord to incur costs not contemplated by this Lease, the exact amount
of such costs being extremely difficult or impracticable to fix. Such costs
include, but are not limited to, processing and accounting charges, and late
charges that may be imposed on Landlord by the terms of any encumbrance and
notes secured by any encumbrance covering the Premises, or late charges and
penalties due to late payment of Real Property Takes due on the Premises.
Therefore, if any installment of Rent or any other charge due from Tenant is not
received by Landlord within ten (10) days after receipt of written notice that
such payment is due (the "Grace Period"), then, commencing with the second such
occurrence, Tenant shall pay to Landlord an additional sum equa1 to six percent
(6%) of the amount overdue as a late charge for every month or portion thereof
that the Rent or other charges remain unpaid. The parties agree that this late
charge represents a fair and reasonable estimate of the costs that Landlord will
incur by reason of the late payment by Tenant. Acceptance of any late charge
shall not constitute a waiver by Landlord of Tenants default with respect to the
overdue amount, and shall not prevent Landlord from exercising any of the other
rights and remedies available to Landlord for any

                                      9
<PAGE>

other breach of Tenant under this Lease. Notwithstanding the foregoing, upon
the fifth (5th) occurrence during the Term of this Lease of Tenant's failure
to pay Monthly Rent or Additional Rent within ten (10) days after the date
when due, Landlord may condition its acceptance of future Rent upon a
requirement that Tenant concurrently execute an amendment to this Lease which
provides that Monthly Rent for the next twelve (12) months of the Term of
this Lease shall be made in quarterly installments, in advance, in an amount
equal to the sum of the Monthly Rent amounts payable during such three (3)
month period.

INITIALS:

                  --------------------                -------------------------
                  Landlord                            Tenant

                  7.       SECURITY DEPOSIT.

                           (a)      Landlord and Tenant hereby acknowledge that
         the sum of Thirty Thousand Dollars ($30,000.00) held by Landlord as a
         security deposit for the full and faithful performance of that certain
         lease agreement by and between Landlord and Tenant, dated August 14,
         1985, encumbering that certain building located at 1455 Adams Drive,
         Menlo Park, California ("Building 15") (the "Building 15 Lease") shall
         be held by Landlord as a Security Deposit for the full and faithful
         performance of every provision of this Lease to be performed by Tenant.
         If Tenant defaults with respect to any provision of this Lease,
         Landlord may apply all or any part of the Security Deposit for the
         payment of any Rent or other sum in default, the repair of such damage
         to the Premises or the payment of any other amount which Landlord may
         spend or become obligated to spend by reason of Tenant's default or to
         compensate Landlord for any other loss or damage which Landlord mar
         suffer by reason of Tenants default to the full extent permitted by
         law. If any portion of the Security Deposit is so applied, Tenant
         shall, within ten (10) days after written demand therefor, deposit cash
         with Landlord in an amount sufficient to restore the Security Deposit
         to its original amount, and Tenant's failure to do so shall be a
         default under this Lease. Landlord shall not be required to keep the
         Security Deposit separate from its general funds and Tenant shall not
         be entitled to interest on the Security Deposit. If Tenant is not
         otherwise in default, the Security Deposit or any balance thereof shall
         be returned to Tenant within thirty (30) days of the Termination Date.

                  8.       HOLDING OVER. In the event Tenant remains in
possession of all or any part of the Premises after the Termination Date, such
possession shall constitute a month-to-month tenancy only and shall not
constitute a renewal or extension for any further term. In such event, Monthly
Rent shall be increased to an amount equal to (a) one hundred fifty percent
(150%) of the Monthly Rent payable during the last month of the Term, as
extended, if such hold-over was without the written consent of Landlord, or (b)
one hundred fifteen percent (115%) of the Monthly Rent payable during the last
month of the Term, as extended, if such hold-over was with the written consent
of Landlord. In either event, Tenant shall also pay any other sums due hereunder
in the amount and at the times specified in this Lease. Such month-to-month
tenancy shall be subject to every other term, covenant and condition contained
herein.

                                      10
<PAGE>

                  9.       TENANT IMPROVEMENTS. The Tenant Improvements to the
Premises shall be constructed in accordance with the Plans and with the terms of
the Work Letter Agreement attached hereto as EXHIBIT "B".

                  10.      CONDITION OF PREMISES.

                           (a)      Within ten (10) days after the completion of
         the Tenant Improvements, Tenant shall conduct a walk-through inspection
         of the Premises with Landlord and complete a punch-list of items
         needing correction or additional work; which punch-list shall be
         approved in writing by Landlord and Tenant. Other than latent defects
         and the items specified in the punch-list, by taking possession of the
         Premises, Tenant shall be deemed to have accepted the Premises in a
         good, clean and completed condition and repair. The punch-list shall
         not include any damage to the Premises caused by Tenant's move-in;
         which damage shall be repaired or corrected by Tenant, at its expense.
         Tenant acknowledges that, other than as specifically set forth in the
         Lease, neither Landlord nor Landlord's Agents has made any
         representations or warranties as to the suitability or fitness of the
         Premises for the conduct of Tenant's business or for any other purpose,
         and that neither Landlord nor Landlord's Agents has agreed to undertake
         any Alterations or construct any Tenant Improvements or other
         improvements to the Premises except as expressly provided in this
         Lease. If Tenant fails to submit a punch-list to Landlord within such
         ten (10) day period, it shall be deemed that there are no items other
         than latent defects needing additional work or repair. Landlord's
         contractor shall complete all Landlord approved punch-list items within
         thirty (30) days after the walk-through inspection or as soon as
         practicable thereafter.

                           (b)      Landlord warrants to Tenant that the
         Premises, in its state existing on the date that the Lease Term
         commences, but without regard to the use for which Tenant will use the
         Premises, does not violate any covenants or restrictions of record, or
         any applicable building code, regulation or ordinance in effect on the
         Commencement Date. In the event it is determined that this warranty has
         been violated, then it shall be the obligation of Landlord, after
         written notice from Tenant, to rectify promptly, at Landlord's sole
         cost and expense, any such violation.

                           (c)      Landlord hereby assigns to Tenant all
         rights, remedies and benefits of all warranties Landlord may have from
         or against any contractor, subcontractor, supplier or manufacturer with
         regard to defects in the material or workmanship of the Premises,
         including, without limitation, the Building, Tenant Improvements and
         Alterations. By taking possession of and accepting the Premises, Tenant
         shall not be deemed to have waived any right or warranty concerning any
         defect in the material or workmanship of the Premises.

                                      11
<PAGE>

         11.      USE OF THE PREMISES.

                  (a)      TENANT'S USE. Tenant shall use the Premises solely
         for office, research and development, and manufacturing purposes, and
         for uses related thereto. Use of the Outside Area of the Project shall
         be nonexclusive, except for walkways, parking spaces and other areas
         appurtenant to the Building designed for the exclusive use of the
         occupants thereof.

                  (b)      CC&R'S. Tenant agrees that this Lease is subject and
         subordinate to the CC&R's. Tenant acknowledges that it has read the
         CC&R's and knows the contents thereof. Throughout the Term, Tenant
         shall faithfully and timely perform all acts required of tenants
         generally in Menlo Business Park, and subject to Landlord's obligation
         to perform under such CC&Rs with respect to the Outside Areas, and
         Tenant shall otherwise comply with the CC&R's and any modification or
         amendments thereof, including the payment by Tenant of any periodic or
         special dues or assessments charged against the Premises. Tenant hereby
         specifically agrees to comply with the provisions of the CC&R's and the
         City of Menlo Park regulations prohibiting parking on the streets and
         the storage of materials in the parking areas surrounding the Building.
         Tenant shall hold Landlord, Landlord's Agents and Premises harmless and
         indemnify Landlord and Landlord's Agents against any loss, expense,
         damage, attorneys' fees and costs or liability arising out of or in
         connection with the failure of Tenant to so perform or comply with the
         CC&R's.

                  (c)      COMPLIANCE.

                           (i)      Tenant shall not use the Premises or suffer
                  or permit anything to be done in or about the Premises which
                  will in any way conflict with any law, statute, zoning
                  restriction, ordinance or governmental law, rule, regulation
                  or requirement of any duly constituted public authority having
                  jurisdiction over the Premises now in force or which may
                  hereafter be in force, or the requirements of the Board of
                  Fire Underwriters or other similar body now or hereafter
                  constituted relating to or affecting the condition, use or
                  occupancy of the Premises. Tenant shall not commit any public
                  or private nuisance or any other act or thing which might or
                  would disturb the quiet enjoyment of any other tenant of
                  Landlord or any occupant of nearby property. Tenant shall
                  place no loads upon the floors, walls or ceilings in excess of
                  the maximum designed load specified by Landlord or which may
                  damage the Building or Outside Areas, nor place any harmful
                  liquids in the drainage systems, nor dump or store waste
                  materials, refuse or other materials or allow such to remain
                  outside the Building proper, except in the enclosed trash
                  areas constructed for such purpose.

                           (ii)     In particular, Tenant, at its sole cost,
                  shall comply with all laws relating to the storage, use and
                  disposal of hazardous, toxic or radioactive matter, including
                  those materials identified in

                                      12
<PAGE>

                  Sections 66680 through 66685 of Title 22 of the
                  California Administrative Code, Division 4, Chapter 30
                  ("Title 22") as amended from time to time
                  (collectively "Toxic Materials". Landlord hereby acknowledges
                  that Tenant presently uses and shall continue to use small
                  amounts of cleaning solvents ("Cleaning Solvents") from time
                  to time in the ordinary course of its business and that Tenant
                  intends to store of said Cleaning Solvents on the Premises.
                  Tenant agrees that it shall, at its sole cost, comply with all
                  laws (present and future) that relate to the storage, use and
                  disposal of all such Cleaning Solvents at all times during the
                  term of this Lease. Tenant shall be solely responsible for and
                  shall defend, indemnify and hold Landlord and Landlord's
                  Agents harmless from and against all claims, costs and
                  liabilities, including attorneys' fees and costs, arising out
                  of or in connection with its storage, use and disposal of
                  Toxic Materials and said Cleaning Solvents. Tenant shall
                  further be solely responsible for and shall defend, indemnify
                  and hold Landlord, Landlord's Agents and the Premises harmless
                  from and against all claims, costs, and liabilities, including
                  attorneys' fees and costs, arising out of or in connection
                  with the removal, clean-up and restoration work and materials
                  necessary to return the Premises and any other property of
                  whatever nature to their condition existing prior to the
                  appearance of the Toxic Materials and said Cleaning Solvents
                  on the Premises. Tenant's obligations hereunder shall survive
                  the termination of this Lease.

                           (iii)    Tenant shall, at its own cost and expense,
                  promptly and properly observe and comply with, including the
                  making by Tenant of any Alteration to the Premises, all
                  present and future orders, regulations, directions, rules,
                  laws, ordinances, and requirements of all governmental
                  authorities (including, without limitation, state, municipal,
                  county and federal governments and their departments, bureaus,
                  boards and officials) arising from the use or occupancy of, or
                  applicable to, the Premises or privileges appurtenant to or in
                  connection with the enjoyment of the Premises; provided,
                  however, that if such compliance is not due to a specific use
                  of the Premises made by Tenant, as opposed to use of such
                  facilities generally, then Landlord shall, at its cost and
                  expense, effect any such compliance and shall amortize the
                  cost of such compliance over the longest available period,
                  consistent with generally accepted accounting principles, with
                  Tenant paying for its share of such cost to the extent of the
                  period of such amortization falling within the Term of this
                  Lease.

                  12.      QUIET ENJOYMENT. Landlord covenants that Tenant, upon
performing the terms, conditions and covenants of this Lease, shall have quiet
and peaceful possession of the Premises as against any person claiming the same
by, through or under Landlord.

                  13.      ALTERATIONS.

                           (a)      PERMITTED ALTERATIONS. After the
         Commencement Date, Tenant shall not make or permit any Alterations in,
         on or about the Premises,

                                      13
<PAGE>

         except for non-structural Alterations costing Five Thousand Dollars
         ($5,000.00) or less per Alteration, without the
         prior written consent of Landlord, which consent shall not be
         unreasonably withheld. All alterations shall be construed pursuant to
         plans and specifications approved in writing by Landlord.
         Notwithstanding the foregoing Tenant shall not, without the prior
         written consent of Landlord, make any:

                           (i)      Alterations to the exterior of the Building
                  or the Outside Areas;

                           (ii)     Alterations to or penetrations of the
                  structural portions of the Building including, without
                  limitation, the roof, or which will interfere with the proper
                  functioning of any mechanical facilities or equipment located
                  in the Building or Project; and

                           (iii)    Alterations visible from outside the
                  Building to which Landlord may withhold consent based on
                  wholly aesthetic grounds.

         All Alterations shall be installed at Tenant's sole expense, in
         compliance with all applicable laws and the CC&R's, by a licensed
         contractor. The work shall be done in a good and workmanlike manner
         conforming in quality and design with the Premises existing as of the
         Commencement Date, and shall not diminish the value of either the
         Building or the Project. Tenant shall, if required by Landlord, obtain
         and pay for, at its own expense, a completion and indemnity bond, the
         form and amount of which shall be subject to the approval of Landlord.
         All Alterations made by Tenant, unless otherwise agreed in writing by
         Landlord upon approval thereof, shall be and become the property of
         Landlord upon the installation thereof and shall not be deemed Tenant's
         Personal Property; provided, however, that Landlord may, at its option,
         require that Tenant, upon the termination of this Lease, at Tenant's
         expense, remove any or all nonstructural Alterations installed by
         Tenant and return the Building to its condition as of the Commencement
         Date of this Lease, normal wear and tear excepted. Notwithstanding any
         other provision of this Lease, Tenant shall be solely responsible for
         the maintenance and repair of any and all Alterations made by it to the
         Premises.

                  (b)      NOTICE. Tenant shall give Landlord written notice of
         Tenant's intention to perform work on the Premises which might result
         in any claim of lien prior to the commencement of such work and
         Landlord may post and record a Notice of Nonresponsibility or other
         notice Landlord deems proper. Tenant shall not permit any mechanic's,
         materialmen's or other liens to be filed against the property of which
         the Premises are a part relative to work performed by or on behalf of
         Tenant, nor against Tenant's leasehold interest in the Premises. If
         Tenant fails to remove any lien(s) filed against the Premises or all or
         any portion of the Project in connection with any work performed or any
         work claimed to have been performed by or at the direction of Tenant
         within thirty (30) days from the date of the lien filing(s), then
         Landlord may remove such liens(s) at

                                      14
<PAGE>

         Tenant's expense and Tenant shall reimburse Landlord for all
         costs incurred by Landlord in connection with the removal of the
         lien(s), which amount shall be deemed Additional Rent, and shall
         include, without limitation, all sums disbursed, incurred or
         deposited by Landlord, including Landlord's costs, expenses
         and attorneys' fees with interest thereon at the Interest Rate.

                  14.      SURRENDER OF THE PREMISES. Upon the expiration or
earlier termination of this Lease, Tenant shall surrender the Premises to
Landlord in its condition existing as of the Commencement Date, normal wear and
tear and acts of God excepted, with all interior walls in good repair, all
carpets shampooed and cleaned, all floors cleaned and waxed, and the HVAC
equipment in working condition, all to the reasonable satisfaction of Landlord.
Tenant shall remove from the Premises all of Tenant's Alterations which Landlord
requires Tenant to remove pursuant to Paragraph 13 above and all Tenant's
Personal Property, and shall repair any damage and perform any restoration work
caused by such removal; provided, however, that if Tenant is then in default
after all applicable grace periods, Tenant shall not be entitled to remove
Tenant's Personal Property except as specified by written notice delivered by
Landlord to Tenant and except as to the rights granted to holders of secured
interest in such property perfected prior to the date of this Lease, and except
as permitted by Landlord pursuant to executed Landlord lien waivers. If Tenant
fails to remove such Alterations and Tenant's Personal Property which Tenant is
authorized and obligated to remove pursuant to the above, and such failure
continues after the termination of this Lease, Landlord may retain such property
and all rights of Tenant with respect to it shall cease, or Landlord may place
all or any portion of such property in public storage for Tenant's account.
Tenant shall pay to Landlord, upon demand pursuant to California Civil Code
Sections 1980-1991, inclusive, the costs of removal of any such Alterations and
Tenant's Personal Property and storage and transportation costs of same, and the
cost of repairing and restoring the Premises, together with interest at the
Interest Rate from the date of expenditure by Landlord. If the Premises are not
so surrendered at the termination of this Lease, Tenant hereby agrees to
indemnify Landlord and its Agents against all loss or liability resulting from
delay by Tenant in so surrendering the Premises, including, without limitation,
any claims made by any succeeding tenant, losses to Landlord due to lost
opportunities to lease to succeeding tenants, and attorneys' fees and costs.

         15.      REAL AND PERSONAL PROPERTY TAXES.

                  (a)      PAYMENT BY TENANT. Tenant shall pay, as Additional
         Rent, Tenant's pro rata share of all Real Property Taxes levied against
         the Building or Lot 7 during the Term as they shall respectively become
         due and payable. Landlord agrees to forward to Tenant copies of all
         notice and tax bills pertaining to the Premises upon receipt. If Tenant
         shall fail to pay Tenant's pro rata share of Real Property Taxes prior
         to any penalty or delinquency, Landlord shall have the right but not
         the obligation to: (i) pay the same, in which case Tenant shall
         immediately repay such amount to Landlord including interest at the
         Interest Rate from the date paid by Landlord until the date of payment
         by Tenant; and (ii) exercise any and all remedies available to Landlord
         pursuant to Paragraph 29. Tenant may contest the amount or validity of
         any Real Property Taxes by appropriate proceeding, provided that Tenant
         shall promptly pay such taxes unless such proceeding shall operate to
         prevent or stay the collection of the tax so

                                      15
<PAGE>

         contested. Landlord shall join in any such proceeding if any law shall
         so require, provided that Tenant shall indemnify Landlord against any
         liability, cost or expense in connection therewith, including, without
         limitation, attorney's fees and costs. Notwithstanding anything in the
         foregoing to the contrary, however, Tenant shall not be responsible
         for the amount of any increase in Real Property Taxes (excluding any
         such increase due to the normal yearly reassessment) in excess of
         120% of the Real Property Taxes for the prior assessment prior
         arising as a result of a transfer by Landlord of the Premises.

                  (b)      TAX ON IMPROVEMENTS. Tenant shall pay any increase in
         Real Property Taxes attributable to any and all Alterations and Tenant
         Improvements of any kind whatsoever placed in, on or about the Premises
         for the benefit of, at the request of, or by Tenant.

                  (c)      PRORATION. Tenant's liability to pay Real Property
          Taxes shall be prorated on the basis of a 365-day year to account for
         any fractional portion of a fiscal tax year included at the
         commencement or expiration of the Term. With respect to any assessments
         which may be levied against or upon the Premises, or which under the
         laws then in force may be evidenced by improvements or other bonds or
         may be paid in annual installments, only the amount of such annual
         installment (with appropriate proration for any partial year) and
         interest due thereon shall be included within the computation of the
         annual Real Property Taxes levied against the Premises.

                  (d)      PAYMENT ON EXPIRATION OF TERM. If this Lease
         terminates on a date earlier than the end of a fiscal tax year,
         Landlord shall deliver to Tenant a statement setting forth the amount
         of Real Property Taxes to be paid by Tenant prorated to the date of
         termination. Tenant shall pay to Landlord such prorated amount within
         fifteen (15) days of Tenant's receipt of the statement.

                  (e)      PERSONAL PROPERTY TAXES. Tenant shall pay prior to
         delinquency all taxes assessed or levied against Tenant's Personal
         Property in, on or about the Premises. When possible, Tenant shall
         cause its Personal Property to be assessed and billed separately from
         the real or personal property of Landlord.

                  (f)      FAILURE TO PAY. Tenant's failure to pay any of the
         charges required to be paid under this paragraph shall constitute a
         material default under this Lease.

         16.      UTILITIES AND SERVICES. Tenant shall be responsible for and
shall pay promptly all charges for water, gas, electricity, telephone, refuse
pickup, janitorial service, telephone service and all other utilities, materials
and services furnished directly to or used by Tenant in, on or about the
Premises during the Term, together with any taxes thereon. Landlord shall cause
the gas and electricity service to the Premises to be separately metered. The
cost of installing such meters shall be deducted from the Improvement Allowance
(as such term is defined in EXHIBIT "B"). Water service charges shall be
reasonably pro rated to Tenant. Landlord shall not be liable in damages or
otherwise for any failure or interruption of any utility

                                      16
<PAGE>

service or other service furnished to the Premises; provided, however, that
if due to Landlord's negligent acts or willful misconduct such service is
interrupted and Tenant is unable for more than two consecutive business days
to use the Premises, then Monthly Rent shall be abated, commencing with the
date of such interruption, until such service is restored. No such failure or
interruption shall entitle Tenant to terminate this Lease or otherwise to
withhold or abate Rent or other sums due hereunder. Notwithstanding the
foregoing, however, Landlord shall provide a security guard, with an
automobile containing a cellular telephone, for the Project on a twenty-four
(24) hour per day, seven (7) day per week basis.

         17.      BUILDING EXPENSES.

                  (a)      DEFINITION. Tenant shall pay from time to time during
         the term of this Lease (but not more frequently than monthly), within
         thirty (30) days of presentation of invoice therefor from Landlord,
         Tenant's Proportionate Share of Building Expenses, which in this Lease
         shall mean and refer to the "Costs of Operation and Maintenance" of the
         Building. "Costs of Operation and Maintenance" as used in this Lease
         shall be deemed to mean and refer to those expenses incurred by
         Landlord with respect to the operation and maintenance of the Building
         and Lot 7 which, in accordance with generally accepted accounting
         principles consistently applied to the operation, maintenance and
         security of a first class light manufacturing/research and development
         building, are properly chargeable to the operation and maintenance of
         the Building and Lot 7, which costs shall include without limitation,
         repair and maintenance to the roof and the exterior walls of the
         Building, landscape services, heating, ventilation and air conditioning
         maintenance contracts, supplies, compensation and all fringe benefits,
         worker's compensation insurance premiums and payroll taxes paid to, for
         or with respect to all persons engaged in the operating, maintaining or
         cleaning of the Building or Lot 7, costs of Building security, rental
         of personal property used in such maintenance, the insurance required
         to be carried by Landlord with respect to the Building as set forth in
         this Lease, and all other charges directly related to the operation and
         maintenance of the Building and Lot 7, or which are more economically
         handled by Landlord. Regardless of the actual percentage of occupancy
         of the Building, for purposes of this Paragraph 17, the Costs of
         Operation and Maintenance will be calculated as though the Building
         were fully occupied. Costs of Operation and Maintenance shall
         specifically exclude any leasing commissions, advertising and promotion
         expenditures, legal and auditing fees (other than reasonable legal and
         auditing fees necessarily incurred in connection with the maintenance
         and operation of the Building and Lot 7, but not with respect to the
         leasing or improving of the Building or the resolution of disputes with
         any tenants of the Building), depreciation of the Building, interest on
         debt, expenses incurred by Landlord on behalf of or for the benefit of
         other tenants, all expenses for which Landlord is compensated pursuant
         to the provisions of this Lease or through proceeds from insurance or a
         third party, costs of capital improvements and equipment (except for
         "cost saving" capital improvements or equipment; which, for the
         purposes of this Lease, shall mean capital improvements or equipment
         (amortized over the useful life of said capital improvement or
         equipment) where the present value of the projected

                                      17
<PAGE>

         savings in the "Cost of Operation and Maintenance" of the Building
         exceeds the present value of the projected costs of said capital
         improvement or equipment) and all costs incurred by Landlord due to the
         violation by Landlord of any law regulation or ordinance, the CC&Rs,
         any mortgage, deed of trust or ground lease covering the Building or
         any provision of this Lease or any other lease relating to the
         Building. Landlord hereby agrees that all Building Expenses shall be
         fully audited and shall be available for inspection by Tenant
         throughout the Term on an "open book" basis.

                  (b)      PAYMENT. Tenant's payment of Tenant's Proportionate
         Share of Building Expenses shall constitute Additional Rent payable by
         Tenant under this Lease. In addition thereto, Tenant shall pay all of
         any costs incurred by Landlord as a direct result of Tenant's
         disproportionate use of the Building or Lot 7.

                  (c)      TENANT'S REPAIRS AND MAINTENANCE. In addition to the
         payments to be made by Tenant pursuant to the provisions set forth
         above, Tenant shall, at Tenant's sole costs and expense, keep and
         maintain the Premises, including without limitation, all floors,
         subfloors, floor coverings, windows, ceilings, interior walls,
         fixtures, doors, electrical and lighting equipment, plumbing, heating,
         air conditioning, ventilating systems and immediate loading areas
         within the Premises and Tenant's signs, in all respects in good repair
         and in clean and safe condition, reasonable wear and tear excepted, and
         if impractical to repair then the foregoing items shall be replaced.
         Tenant shall, at Tenant's sole cost and expense, immediately upon
         breakage, replace all glass in the Premises that may be broken during
         the Term with glass at least equal to the specification and quality of
         the glass so replaced. If Tenant fails to fulfill its obligations
         hereunder, Landlord shall have the option, after five (5) days written
         notice to Tenant, to assume any or all of the foregoing maintenance and
         repair responsibilities; provided, however, that if Tenant notifies
         Landlord within such five (5) day period of its intention to assume its
         maintenance and repair responsibilities, Landlord shall allow Tenant a
         maximum of thirty (30) days within which to make such repairs. If at
         the end of such thirty (30) day period, Tenant has failed to complete
         said repairs, Landlord shall have the right to enter the Premises,
         effectuate the repairs and require Tenant to reimburse Landlord, as
         Additional Rent, for the cost of all such services, together with an
         accounting and management services fee of five percent (5%) of the cost
         of such services.

                  (d)      LANDLORD'S REPAIRS AND MAINTENANCE. Subject to the
         provisions of Paragraphs 17(c), 26 and 27, Landlord hereby agrees to
         maintain and repair, when necessary, at its sole cost, the structural
         components of the Building (including the utility systems located
         within such structural components); which structural components include
         only the foundations, bearing and exterior walls (excluding glass and
         doors) and the roof (excluding skylights, if any) of the Building.

                                      18
<PAGE>

                  (e)      WAIVER AND LANDLORD LIABILITY FOR REPAIRS. Tenant
         waives the provisions of Sections 1941 and 1942 of the California Civil
         Code and any similar or successor law regarding Tenant's right to make
         repairs and deduct the expenses of such repairs from the Rent due under
         this Lease. Further, Landlord shall not be liable for any failure to
         make any repair or to perform any maintenance unless such failure shall
         persist for an unreasonable time after written notice of the need for
         such repair or maintenance is given to Landlord by Tenant. Except as
         provided in Paragraphs 16 and 26(d), 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 any
         repairs, alterations or improvements in or to any portion of the
         Premises or in or to fixtures, appurtenances and equipment therein.

                  18.      COMMON AREA EXPENSES.

                           (a)      COMMON AREAS. As used in this Lease, "Common
         Areas. shall mean the Recreational Area depicted on EXHIBIT "A-2", the
         Streetscape, which is a ten-foot strip of planted area located
         throughout the Project, and all other areas within the Project which
         are available for the common use of tenants of the Project and which
         are not leased or held for the exclusive use of Tenant or other tenants
         including, but not limited to, sidewalks, access roads, landscaping and
         planted areas. Landlord may from to time change the size, location,
         nature and use of any of the Common Areas, including converting Common
         Areas into leasable areas, constructing additional parking facilities
         (including parking structures) in the Common Areas, and increasing or
         decreasing Common Area land and/or facilities, and Tenant's
         Proportionate Share of Common Area Expenses will be appropriately
         amended, to the extent that the square footage of the land in the
         Project available for lease is changed from the total set forth in
         EXHIBIT "A-2" of this Lease, which total is 2,060,693 square feet,
         based upon which total square footage Tenant's Proportionate Share of
         Common Area Expenses is calculated (153,594 square feet [which is the
         land area for Building No. 7] multiplied by 40.66% [which is Tenant's
         Proportionate Share of Building Expenses] divided by 2,060,693 equals
         3.03%). Tenant acknowledges that the exercise by Landlord of its right
         to change the size, location, nature and use of the Common Areas may
         result in occasional inconvenience to Tenant from time to time. Such
         activities and changes shall be expressly permitted so long as they do
         not materially adversely affect Tenant's access to or use of the
         Premises.

                  (b)      USE OF COMMON AREAS. Tenant shall have the
         nonexclusive right (in common with other tenants and all others to whom
         Landlord has granted or may grant such rights) to use the Common Areas
         for the purposes intended, subject to such reasonable rules and
         regulations as Landlord may establish from time to time. Tenant shall
         abide by such rules and regulations and shall use its best effort to
         cause others who use the Common Areas with Tenant's express or implied
         permission to abide by Landlord's rules and regulations. At any time,
         Landlord may close any Common Areas to perform any acts in and to the
         Common Areas as, in Landlord's judgment, may be desirable to improve
         the

                                      19
<PAGE>

         Project; provided that such action does not materially adversely
         interfere with Tenant's access to or use of the Premises. Tenant shall
         not, at any time, interfere with the rights of Landlord, other tenants,
         or any other person entitled to use the Common Areas.

                  (c)      SPECIFIC PROVISIONS RE: VEHICLE PARKING. Tenant shall
         not cause large trucks or other large vehicles to be parked within the
         Project or on the adjacent public streets. Temporary parking of large
         delivery vehicles in the Project may be permitted by the rules and
         regulations established by Landlord. Vehicles shall be parked only in
         striped parking spaces on Lot 7 and not in driveways, loading areas or
         other locations not specifically designated for parking. If Tenant
         parks more vehicles in its parking areas than the number set forth
         pursuant to Paragraph 19 below, such conduct shall be a material breach
         of the Lease. In addition to Landlord's other remedies under the Lease,
         Tenant shall pay a reasonable daily charge for each such additional
         vehicle.

                  (d)      MAINTENANCE OF COMMON AREAS. Notwithstanding anything
         in this Lease to the contrary, Landlord shall maintain the Common Areas
         in good order, condition and repair and shall operate the Project, in
         Landlord's sole discretion, as a first class industrial/commercial real
         property development. Tenant shall pay Tenant's Proportionate Share of
         Common Area Expenses, which shall include all costs incurred by
         Landlord for the operation and maintenance of the Common Areas. Common
         Area Expenses include, but are not limited to, costs and expenses for
         the following: gardening and landscaping; utilities, water and sewage
         charges; maintenance of signs (other than Tenant's signs or signs of
         any other tenant of the Project); premiums for liability, property
         damage, fire and other types of casualty insurance on the Common Areas,
         and Worker's Compensation Insurance; compensation and all fringe
         benefits and payroll taxes paid to, for or with respect to all persons
         engaged in the operating, maintaining, or cleaning of the Common Area;
         all Real Property Taxes and assessments levied on or attributable to
         the Common Areas and all Common Area improvements; all personal
         property taxes levied on or attributable to personal property used in
         connection with the Common Areas; straight line depreciation on
         personal property owned by Landlord which is consumed in the operation
         or maintenance of the Common Areas; rental or lease payments paid by
         Landlord for rented or leased personal property used in the operation
         or maintenance of the Common Areas; fees for required licenses and
         permits; repairing, resurfacing, repaving, maintaining, painting,
         lighting, cleaning, refuse removal, security and similar items;
         reserves for roof replacement and exterior painting and other
         appropriate reserves; a fee for Landlord's supervision of the Common
         Areas in the amount of five percent (5%) of the total of all other
         Common Area costs for the calendar year; and other charges directly
         related to the operation and maintenance of the Common Area which are
         more economically handled by Landlord. Landlord may cause any or all of
         such services to be provided by third parties. Common Area costs shall
         not include depreciation of real property which forms part of the
         Common Areas and all items which are specifically excluded from the
         Building Expenses as set forth in Paragraph 17(a) above. Regardless of
         actual occupancy

                                      20
<PAGE>

         of the Project, for the purpose of this Paragraph, the
         costs for the operation and maintenance of the Common Areas will be
         computed as though the Project were 100% leased and occupied (but in no
         event shall such calculation result in a profit to Landlord or any
         third party).

                  (e)      TENANT'S SHARE AND PAYMENT. Tenant shall pay Tenant's
         Proportionate Share of Common Area Expenses, in advance, in monthly
         installments on the first day of each month during the Lease Term
         (prorated for any fractional month). Landlord may adjust such estimates
         at any time and from time to time based upon Landlord's experience and
         reasonable anticipation of costs. Such adjustments shall be effective
         as of the next rent payment date after notice to Tenant. Within thirty
         (30) days after the end of each calendar year of the Lease Term,
         Landlord shall deliver to Tenant a statement prepared in accordance
         with generally accepted accounting principles setting forth, in
         reasonable detail, the actual Common Area Expenses paid or incurred by
         Landlord during the preceding calendar year and Tenant's pro rata
         share. Upon receipt of such statement, there shall be an adjustment
         between Landlord and Tenant with payment to or credit given by Landlord
         (as the case may be) so that Landlord shall receive the entire amount
         of Tenant's share of such costs and expenses for such period. Any
         changes in the Common Area costs and/or the aggregate area leased or
         held for lease for the exclusive use of all tenants of the Project
         during the Lease Term shall be effective on the first day of the month
         after such change occurs. Landlord hereby grants Tenant the right to
         inspect all Common Area Expenses on an "open book" basis throughout the
         Term.

         19.      PARKING. Tenant understands and acknowledges that a portion of
Lot 7 contains parking spaces which shall be reserved for the benefit of other
tenants of the Building, if any. Landlord hereby grants to Tenant during the
term of this Lease, the right, to use seventy-one (71) parking spaces, which
amount represents Tenant's pro rata share of one hundred seventy-seven (177)
available parking spaces located on Lot 7, which are highlighted on EXHIBIT
"A-1" to this Lease. Landlord hereby agrees that five (5) of the seventy-one
(71) spaces granted to Tenant hereunder shall be located in front of the
Building at the entrance of the Premises and shall be designated "reserved for
Etak, Inc." Landlord retains the right to improve, alter, modify and relocate
such parking areas and to regulate access to and the use of the parking areas;
provided, however, that Landlord shall not reduce the overall number of parking
spaces located on Lot 7.

         20.      [THIS PARAGRAPH INTENTIONALLY LEFT BLANK]

         21.      [THIS PARAGRAPH INTENTIONALLY LEFT BLANK]

         22.      LANDLORD'S RIGHT TO ENTER THE PREMISES. Tenant shall permit
Landlord and Landlord's Agents to enter the Premises at all reasonable times
with reasonable notice, except for emergencies in which case no notice shall be
required, to inspect the same, to post Notices of Nonresponsibility and similar
notices and signs indicating the availability of Premises for sale, to show the
Premises to interested parties such as prospective lenders and purchasers, to
make necessary Alterations or repairs, to discharge Tenant's obligations
hereunder when Tenant has

                                      21
<PAGE>

failed to do so within a reasonable time after written notice from Landlord,
and at any reasonable time after one hundred and eighty (180) days prior to
the expiration of the Term, to place upon the Premises a reasonable sign,
after consultation with Tenant, indicating the availability of the Premises
for sale and/or lease and to show the Premises to prospective tenants and
purchasers. Any sign respecting the sale or lease of the Premises shall, if
requested by Tenant and if accurate, contain appropriate language to inform
the public that Tenant is not going out of business. The above rights are
subject to reasonable security regulations of Tenant, and to the requirement
that Landlord shall at all times act in a manner to cause the least possible
interference with Tenant's business.

         23.      SIGNS. Tenant shall have the right to use Tenant's pro rata
share of one of two monument signs already constructed at the center driveway
entrance to the Building. In addition Tenant shall be entitled to design and
install, subject to Landlord's approval (which approval shall not be
unreasonably withheld), a tenant identification sign on the glass frontage of
the Premises. Tenant shall have no right to maintain Tenant identification signs
in any other location in, on or about the Building and shall not display or
erect any signs, displays or other advertising materials that are visible from
the exterior of the Building. The size, design, color and other physical aspects
of permitted sign(s) shall be subject to the Landlord's written approval prior
to installation, which shall not be unreasonably withheld. The cost of the
sign(s), including the installation, maintenance and removal thereof shall be at
Tenant's sole cost and expense; provided, however, that if Landlord decides to
install signs with concrete monument bases, Landlord shall pay the cost of such
bases and Tenant shall be responsible only for the payment of that portion of
the cost of such signs expended to identify Tenant. If Tenant fails to maintain
its sign(s), or if Tenant fails to remove same upon termination of this Lease,
Landlord may do so at Tenant's expense. Tenant shall reimburse Landlord for all
costs incurred by Landlord to effect such removal, which amounts shall be deemed
Additional Rent.

         24.      INSURANCE.

                  (a)      INDEMNIFICATION. Tenant hereby agrees to defend,
         indemnify and hold harmless Landlord and Landlord's Agents from and
         against any all damage, loss, liability and expense including, without
         limitation, reasonable attorneys' fees and legal costs incurred
         directly or by reason of any claim, suit or judgment brought by or on
         behalf of any person or persons for damage, loss or expense due to, but
         not limited to, bodily injury or property damage sustained by such
         person or persons which arise out of, are occasioned by or are in any
         way attributable to the use or occupancy of the Premises by, or the
         acts or omissions of, the Tenant, its agents, employees or any
         contractors brought onto the Premises by Tenant. Tenant and Landlord
         agree that the obligations of Tenant and Landlord herein shall survive
         the termination of this Lease. Notwithstanding the foregoing and the
         provisions of Paragraph 24(h) below, Tenant shall not be required to
         defend, save harmless and indemnify Landlord or Landlord's Agents from
         any liability for injury, loss, accident or damage to any person or
         property resulting from the negligent acts or omissions or the willful
         misconduct of Landlord or those of its agents, contractors, servants,
         employees or licensees, in connection with Landlord's activities on the
         Premises, and Landlord hereby indemnifies and agrees to hold Tenant
         harmless from any and all damages

                                      22
<PAGE>

         arising directly out of such negligence or such willful misconduct;
         provided that such exclusion from Tenant's indemnity and such agreement
         by Landlord to so indemnify and hold Tenant harmless are not intended
         to and shall not relieve any insurance carrier of its obligations under
         policies required to be carried by Tenant pursuant to the provisions of
         this Lease to the extent that such policies cover the results of such
         negligence or such willful misconduct.

                  (b)      TENANT'S INSURANCE. Tenant agrees to maintain in full
         force and effect at all times during the Term, at its own expense, for
         the protection of Tenant and Landlord, as their interests may appear,
         policies of insurance issued by a reasonable carrier or carriers
         acceptable to Landlord which afford the following coverages:

                           (i)      Comprehensive general liability insurance
                  including blanket contractual liability, broad form property
                  damage, personal injury, completed operations, products
                  liability, and fire damage: not less than Two Million Dollars
                  ($2,000,000.00) with a combined single limit for both bodily
                  injury and property damage and naming (if such is the custom
                  in the industry in general for such properties) Landlord as an
                  additional insured.

                           (ii)     "All Risk" property insurance (including,
                  without limitation, Replacement Cost, vandalism, malicious
                  mischief, inflation, sprinkler leakage, and boiler and
                  machinery (e.g., HVAC and other mechanical) coverage
                  endorsements) in the Premises including, without limitation,
                  the Tenant Improvements, Alterations and Tenant's Personal
                  Property located on or in the Premises, which shall be in a
                  form providing coverage comparable to the coverage provided in
                  the standard ISO All-Risk form and in an amount equal to the
                  full amount of the replacement cost, as the same may from time
                  to time increase as a result of inflation. The insurance
                  policy or policies shall name Landlord as an additional named
                  insured and shall include a lender's loss payable endorsement
                  in favor of Landlord's lender (Form 438 BFU Endorsement).

                           (iii)    Rent abatement insurance (as a rider to the
                  "All Risk" policy described above) covering those risks
                  referred to in subparagraph (ii) above in an amount equal to
                  the Rent and taxes (and any other sums payable under the
                  Lease) for a period of at least twelve (12) months from the
                  date of loss.

                  (c)      LANDLAND'S INSURANCE. Landlord covenants and agrees
         that throughout the Term, it will insure the Building (excluding any
         property with respect to which Tenant is obligated to insure pursuant
         to the provisions of Subparagraph 24(b) above), against damage by fire
         and standard extended coverage perils insurance in such reasonable
         amounts with such reasonable deductibles as would be carried by a
         prudent owner of a similar building in Northern California, but in no
         event less than ninety percent (90%) of full

                                      23
<PAGE>

         replacement value of the Building, with rental abatement endorsements
         covering rent, insurance and taxes payable with respect to the
         Building for a 12-month period.  Landlord may, but shall not be
         obliged to, take out and carry any other form or forms of insurance
         as it or the mortgagees of Landlord may reasonably determine
         advisable. Notwithstanding any contribution by Tenant to the cost
         of insurance premiums, with respect to the Building or any alterations
         of the Premises, as provided herein, Tenant acknowledges that it has
         no right to receive any proceeds from any such insurance policies
         carried by Landlord, although Landlord shall use such proceeds in the
         repair and reconstruction of the Building and the Premises unless the
         provisions of Subparagraph 24(b) above shall apply.  Landlord will not
         carry insurance of any kind on Tenant's furniture or furnishings, or
         on any fixtures, equipment, improvements or appurtenances of Tenant
         under this Lease; and Landlord shall not be obligated to repair any
         damage thereto or replace the same.

                  (d)      DEDUCTIBLES. Any policy of insurance required to be
         maintained by Tenant pursuant to this Lease containing a deductible in
         excess of Five Thousand Dollars ($5,000) must be approved in writing by
         Landlord prior to the issuance of such policies, it being understood
         and agreed that Tenant shall be solely responsible for the payment of
         any such deductible.

                  (e)      CERTIFICATES. Tenant shall deliver within fifteen
         (15) days following the Commencement Date and thereafter at least ten
         (10) days prior to expiration of each such policy, certificates of
         insurance evidencing the above coverage with limits not less than those
         specified above. The certificates shall expressly provide that the
         interest of Landlord therein shall not be affected by any breach of
         Tenant of any policy provision for which such certificates evidence
         coverage.

                  (f)      INCREASED COVERAGE. Upon demand, Tenant shall provide
         Landlord, at Tenant's expense, such other insurance as Landlord or
         Landlord's lender may reasonably require and as may be typically
         required in the industry for similar properties, to afford Landlord and
         Landlord's lender adequate protection.

                  (g)      CO-INSURER. If, on account of the failure of Tenant
         to comply with the foregoing provisions, Landlord is adjudged a
         co-insurer by its insurance carrier, then any loss or damage Landlord
         shall sustain by reason thereof, including attorneys' fees and costs,
         shall be borne by Tenant and shall be immediately paid by Tenant upon
         receipt of a bill therefor and evidence of such loss.

                  (h)      INSURANCE REQUIREMENTS. All such insurance (i) shall
         be in a form satisfactory to Landlord and its lender and shall be
         carried with companies that have a general policyholder's rating of not
         less than "A" and a financial rating of not less than Class "X" in the
         most current edition of Best's Insurance Reports, (ii) shall provide
         that such policies shall not be subject to material alteration or
         cancellation except after at least thirty (30) days' prior written
         notice

                                      24
<PAGE>

         to Landlord, and (iii) shall be primary as to Landlord. If
         Tenant fails to procure and maintain the insurance required hereunder,
         Landlord may, but shall not be required to, order such insurance at
         Tenant's expense and Tenant shall reimburse Landlord for all costs
         incurred by Landlord with respect thereto. Tenant's reimbursement to
         Landlord for such amounts shall be deemed Additional Rent, and shall
         include all sums disbursed, incurred or deposited by Landlord including
         Landlord's costs, expenses and reasonable attorneys' fees with interest
         thereon at the Interest Rate.

                  (i)      LANDLORD'S DISCLAIMER. Except as specifically set
         forth elsewhere in this Lease, Landlord and Landlord's Agents shall not
         be liable for any loss or damage to persons or property resulting from
         fire, explosion, falling plaster, glass, tile or sheet rock, steam,
         gas, electricity, water or rain which may leak from any part of the
         Premises, or from the pipes, appliances or plumbing works therein or
         from the roof, street or subsurface or whatsoever, or from any act or
         omission of Tenant or any other tenant of any building of which the
         Premises is a part. Tenant shall give prompt written notice to Landlord
         in case of a casualty or accident or in the event of repair needed to
         the Premises.

                  (j)      FAILURE TO PAY. The failure of Tenant to obtain and
         pay for any insurance required to be obtained and paid for by it
         hereunder shall be deemed a "material default" under Paragraph 28(a)(i)
         of this Lease.

         25.      WAIVED OF SUBROGATION. Landlord and Tenant each hereby waive
all rights of recovery against the other on account of loss and damage
occasioned to such waiving party for its property or the property of others
under its control to the extent that such loss or damage is insured against
under any insurance policies which may be in force at the time of such loss or
damage. Tenant and Landlord shall, upon obtaining policies of insurance required
hereunder give notice to the insurance carrier that the foregoing mutual waiver
of subrogation is contained in this Lease and Tenant and Landlord shall cause
each insurance policy obtained by such party to provide that the insurance
company waives all right of recovery by way of subrogation against either
Landlord or Tenant in connection with any damage covered by such policy.

         26.      DAMAGE OR DESTRUCTION.

                  (a)      LANDLORD'S OBLIGATION TO REBUILD. If the Premises are
         damaged or destroyed, Landlord shall promptly and diligently repair the
         Premises unless it has the right to terminate this Lease as provided in
         subparagraph (b) next below and it elects to so terminate.

                  (b)      LANDLORD'S RIGHT TO TERMINATE. Landlord shall have
         the right to terminate this Lease following damage to or destruction of
         the Premises if any of the following occurs:

                           (i)      insurance proceeds are not available to
                  Landlord to pay one hundred percent (100%) of the cost to
                  substantially repair the damaged or destroyed Premises,
                  excluding and deductible for which

                                      25
<PAGE>

                  Tenant shall be responsible pursuant to Paragraph 24(d) above
                  and excluding any shortfall which Tenant agrees to pay;

                           (ii)     the Premises cannot, pursuant to a
                  certificate to the parties from Landlord's general contractor
                  in charge of construction, with reasonable diligence, be
                  substantially repaired by Landlord within one hundred twenty
                  (120) days after the date of the damage or destruction;

                           (iii)    the Premises cannot be safely repaired
                  because of the presence of hazardous factors, including, but
                  not limited to, active earthquake faults, radiation, chemical
                  waste and other similar dangers;

                           (iv)     the Premises are destroyed or damaged during
                  the last twelve (12) months of the Term; or

                           (v)      Tenant is in default under the terms of this
                  Lease at the time of such damage or destruction.

                  If Landlord elects to terminate this Lease, and Tenant fails
to agree with Landlord as to its rights to preserve this Lease, then Landlord
shall give Tenant written notice of its election to terminate as soon as
practicably possible, but in any event not later than thirty (30) days after it
has knowledge of such damage or destruction, and this Lease shall terminate
retroactively as of the date of such damage or destruction. If this Lease is
terminated, Landlord shall retain all the insurance proceeds resulting from such
damage, except for those proceeds payable under policies obtained by Tenant
which specifically insure Tenant's Personal Property and such other property
which Tenant had the right to remove upon termination of this Lease. If Landlord
elects not to terminate the Lease, Landlord shall promptly, following the date
of such damage or destruction, commence the process of obtaining necessary
permits and approvals, and shall commence repair of the Premises or the Building
as soon as practicable and thereafter prosecute the same diligently to
completion, in which event this Lease will continue in full force and effect.
All insurance proceeds from insurance required under Paragraph 24, excluding
proceeds for trade fixtures, equipment and other Personal Property of Tenant,
and such other property which Tenant had the right to remove upon termination of
this Lease, shall be disbursed and paid to Landlord. Tenant shall be required to
pay to Landlord the amount of any deductibles payable by Tenant in connection
with any insured casualties, unless the casualty was caused by the negligence or
willful misconduct of Landlord.

         (c)      LIMITED OBLIGATION TO REPAIR. Landlord's obligation, should it
         elect or be obligated to repair or rebuild, shall be limited to the
         basic Building and the Tenant Improvements and additional improvements
         with respect to which insurance proceeds are available. Landlord shall
         make available to Tenant any portion of insurance proceeds it receives
         which are allocable to the Alterations constructed by Tenant pursuant
         to this Lease provided Tenant is not then in default.

         (d)      ABATEMENT OF RENT. Rent shall be temporarily abated
         proportionately, but only to the extent of any proceeds received by
         Landlord from

                                      26
<PAGE>

         rental abatement insurance described in Paragraph 24(b)(iii),
         during any period when, by reason of such damage or
         destruction, Landlord reasonably determines that there is substantial
         interference with Tenant's use of the Premises, having regard to the
         extent to which Tenant may be required to discontinue Tenant's use of
         the Premises. Such abatement shall commence upon such damage or
         destruction and end upon substantial completion by Landlord of the
         repair or reconstruction which Landlord is obligated or undertakes to
         do. Subject to the indemnity provisions in favor of Tenant set forth in
         Paragraph 24(a) above, Tenant shall not be entitled to any compensation
         or damages from Landlord for loss of the use of the Premises, damage to
         Tenant's Personal Property or any inconvenience occasioned by such
         damage, repair or restoration. Landlord shall use reasonable efforts to
         minimize interference with Tenant's use and occupancy of the Premises.
         Tenant hereby waives the provisions of Section 1932, Subdivision 2, and
         Section 1933, Subdivision 4, of the California Civil Code, and the
         provisions of any similar law hereinafter enacted.

                  (e)      UNINSURED CASUALTY. Notwithstanding the provisions of
         Paragraph 24 of this Lease, Landlord and Tenant hereby agree that each
         party shall be obligated to contribute, on a dollar-for-dollar basis, a
         sum of up to $25,000 each toward the repair of an uninsured casualty to
         the Premises upon presentation of firm estimates of such repair by
         Landlord's contractor in charge of construction; provided, however,
         that if Landlord's architect or general contractor in charge of
         construction certifies to Landlord and Tenant that the estimated cost
         of the repair of such uninsured casualty shall be in excess of Fifty
         Thousand Dollars ($50,000), then either party may terminate this Lease
         upon ten (10) days prior written notice to the other; provided,
         however, that within ten (10) days after receipt of such ten (10) day
         notice, the party receiving such notice may elect to keep the Lease in
         full force and effect by agreeing to pay all of the costs of repair of
         such uninsured casualty in excess of Fifty Thousand Dollars ($50,000),
         in which event each party shall contribute its Twenty-Five Thousand
         Dollars ($25,000) and the party agreeing to pay for the excess shall do
         so upon presentation of invoice by Landlord's general contractor in
         charge of construction. If neither party elects to terminate as
         aforesaid, then the entire cost of repair of such uninsured casualty
         shall be borne equally by the parties.

         27.      CONDEMNATION.

                  (a)      TOTAL TAKING - TERMINATION. If title to all of the
         Premises or so much thereof is taken for any public or quasi-public use
         under any statute or by right of eminent domain so that reconstruction
         of the Premises will not, in Landlord's and Tenant's mutual opinion,
         result in the Premises being reasonably suitable for Tenant's continued
         occupancy for the uses and purposes contemplated by this Lease, this
         Lease shall terminate as of the date possession of the Premises or part
         thereof be taken.

                  (b)      PARTIAL TAKING. If any part of the Premises is taken
         and the remaining part is reasonably suitable for Tenant's continued
         occupancy for the

                                      27
<PAGE>

         purposes and uses permitted by this Lease, as determined
         in good faith by Tenant, this Lease shall, as to the part so
         taken, terminate as of the date that possession of such part of the
         Premises is taken and the Rent and other sums payable hereunder shall
         be reduced in the same proportion that the floor area of the portion of
         the Premises so taken (less any addition thereto by reason of any
         reconstruction) bears to the original floor area of the Premises.
         Landlord shall, at its own cost and expense, make all necessary repairs
         or alterations to the Premises so as to make the portion of the
         Premises not taken a complete unit. Rent and other sums payable
         hereunder shall be temporarily abated during such restoration period in
         proportion to the degree to which Tenant's use of Premises is impaired.
         Each party hereby waives the provisions of Section 1265.130 of the
         California Code of Civil Procedure allowing either party to petition
         the Superior Court to terminate this Lease in the event of a partial
         taking of the Building or Premises.

                  (c)      NO APPORTIONMENT OF AWARD. Subject to the last
         sentence of this Paragraph 27(c), no award for any partial or entire
         taking shall be apportioned, it being agreed and understood that
         Landlord shall be entitled to the entire award for any partial or
         entire taking. Tenant assigns to Landlord its interest in any award
         which may be made in such taking or condemnation, together with any and
         all rights of Tenant arising in or to the same or any part thereof.
         Nothing contained herein shall be deemed to give Landlord any interest
         in or require Tenant to assign to Landlord any separate award made to
         Tenant for the taking of Tenant's Personal Property, for the
         interruption of Tenant's business, or its moving costs, or for the loss
         of its goodwill.

                  (d)      TEMPORARY TAKING. No temporary taking of the Premises
         shall terminate this Lease or give Tenant any right to any abatement of
         Rent. Any award made to Tenant by reason of such temporary taking shall
         belong entirely to Tenant and Landlord shall not be entitled to share
         therein. Each party agrees to execute and deliver to the other all
         instruments that may be required to effectuate the provisions of this
         subparagraph.

                  (e)      SALE UNDER THREAT OF CONDEMNATION. A sale by Landlord
         to any authority having the power of eminent domain, either under
         threat of condemnation or while condemnation proceedings are pending,
         shall be deemed a taking under the power of eminent domain for all
         purposes of this Paragraph.

         28.      ASSIGNMENT AND SUBLETTING.

                  (a)      LANDLORD'S CONSENT. Tenant shall not enter into any
         Sublease without Landlord's prior written consent, which consent shall
         not be unreasonably withheld. Any attempted or purported Sublease of
         the Premises or any portion thereof without Landlord's prior written
         consent shall be void and confer no rights upon any third person and,
         at Landlord's election, shall terminate this Lease.

                                     28
<PAGE>

                  (b)      SUBLEASE FORM. Each Sublease to which Landlord has
         consented shall be in a form satisfactory to Landlord, and shall be
         executed by Tenant and Subtenant. Each Subtenant shall agree in
         writing, for the benefit of Landlord, to assume, to be bound by, and to
         perform the terms, conditions and covenants of this Lease to be
         performed by Tenant. In no event shall Tenant be released from personal
         liability for the performance of each term, condition and covenant of
         this Lease by reason of Landlord's consent to a Sublease unless
         Landlord specifically grants such release in writing.

                  (c)      NO WAIVER. Consent by Landlord to any particular
         Sublease shall not be deemed to be a consent to any subsequent
         Sublease.

                  (d)      INFORMATION TO BE FURNISHED. If Tenant desires at any
         time to sublease the Premises or any portion thereof, it shall first
         notify Landlord of its desire to do so and shall submit in writing to
         Landlord:

                           (i)      the name of the proposed Subtenant:

                           (ii)     the nature of the proposed Subtenant's
                  business to be carried on in the Premises;

                           (iii)    the terms and provisions of the proposed
                  Sublease and a copy of the proposed Sublease agreement
                  containing a description of the premises proposed to be
                  sublet; and

                           (iv)     such financial information, including
                  financial statements, as Landlord may reasonably request
                  concerning the proposed Subtenant.

                  (e)      LANDLORD'S ALTERNATIVES. As soon as reasonably
         possible, but not later than ten (10) days after Landlord's receipt of
         the information specified in Paragraph 28(d), Landlord may, by written
         notice to Tenant, elect:

                           (i)      to lease for its own account the Premises or
                  the portion thereof so proposed to be subleased by Tenant,
                  upon the same terms as those offered to the proposed Subtenant
                  but on a form acceptable to Landlord;

                           (ii)     (if such proposed sublease area is in excess
                  of 66 percent of the total floor area of the Premises) to
                  lease for its own account the Premises or the portion thereof
                  so proposed to be subleased by Tenant to any person upon any
                  terms desired by Landlord;

                           (iii)    consent to the Sublease by Tenant; or

                           (iv)     refuse its consent to the Sublease which
                  shall not be unreasonably withheld.

                                      29
<PAGE>

         If Landlord elects to proceed in accordance with either subparagraph
28(e)(i) or 28(e)(ii), Landlord and Tenant shall enter into a limited release
agreement whereby Tenant is relieved of any liability, including without
limitation, the payment of Rent, with respect to such released portion of the
Premises during the entire term of the Sublease, whether or not the Sublease is
terminated prior to the expiration of its term for any cause whatsoever, other
than the willful act of Tenant. Upon the expiration of the term of the Sublease
between Landlord and the new tenant for such released space; provided the Term
of this Lease has not expired, Landlord shall return possession of the released
space to Tenant in substantially the same condition, normal wear and tear
excepted, it was in when it was released and delivered to Landlord, and Tenant
shall resume all its obligations under this Lease with respect to such space,
including, without limitation, the payment of Rent attributable to such space.

         If Landlord proceeds with subparagraph 28(e)(i) or 28(e)(iii) above,
Landlord or Tenant, as the case may be, may thereafter enter into a valid
Sublease of the Premises or portion thereof, upon the terms and conditions and
with the proposed Subtenant set forth in the information furnished by Tenant of
Landlord pursuant to subparagraph 28(d), subject, however, to the condition that
any excess of the Subrent over the Rent required to be paid by Tenant hereunder
shall, in either case, be divided equally between Landlord and Tenant after
first deducting from any such excess Tenant's actual costs (not in excess of
market or "customary" costs), as incurred, of brokerage fees, subtenant
improvements and related subleasing costs (but excluding Tenant's holding or
vacancy costs). Any such Subrent to be paid to Landlord or Tenant pursuant
hereto shall be payable to Landlord or Tenant as and when due and payable by the
Subtenant.

                  (f)      PRORATION. If a portion of the Premises is subleased,
         the pro rata share of the Rent attributable to such partial area of the
         Premises shall be determined by Landlord by dividing the Rent payable
         by Tenant hereunder by the total leasable square footage of the
         Premises and multiplying the resulting quotient (the per square foot
         rent) by the number of square feet of the Premises which are subleased.

                  (g)      EXECUTED ORIGINAL. No Sublease shall be valid nor
         shall any Subtenant take possession of the Premises until a fully
         executed original of the Sublease agreement has been delivered to
         Landlord.

                  (h)      TRANSFER TO PURCHASER. A transfer of this Lease to a
         purchaser of Tenant or substantially all of the assets of Tenant shall
         be deemed a Sublease.

                  (i)      TENANT AFFILIATES. Notwithstanding any provision to
         the contrary within Paragraph 28 of this Lease, Landlord hereby grants
         to Tenant the right to assign this Lease or to sublet all or any
         portion of the Premises to any entity controlled by, controlling or
         under common ownership with Tenant so long as:

                           (i)      Tenant remains fully liable under the terms
                    of this Lease,

                                      30
<PAGE>

                           (ii)     Tenant provides Landlord with prior written
                  notice of the identity and notice address of such assignee or
                  subtenant, and

                           (iii)    such assignee or subtenant complies with all
                  of the terms and conditions of this Lease.

         29.      DEFAULT.

                  (a)      TENANT'S DEFAULT. At the option of Landlord, a
         default under this Lease by Tenant shall exist if any of the following
         events shall occur:

                           (i)      If Tenant shall have failed to pay Rent or
                  any other sum required to be paid hereunder after ten
                  (10) days written notice that such payment is due; or

                           (ii)     If Tenant shall have failed to cure a
                  "material non-monetary default" within ten (10) days written
                  notice of such default from Landlord. For purposes hereof,
                  "material non-monetary default" shall mean and refer to a
                  default by Tenant with respect to the provisions of
                  Paragraph 24 (Insurance), Paragraph 30 (Subordination) or
                  Paragraph 33 (Estoppel Certificate);

                           (iii)    If Tenant shall have failed to perform any
                  term, covenant or condition of this Lease except those
                  requiring the payment of money, and Tenant shall have failed
                  to cure such breach within thirty (30) days after written
                  notice from Landlord where such breach could reasonably be
                  cured within such thirty (30) day period; provided, however,
                  that where such failure could not reasonably be cured within
                  the thirty (30) day period, then Tenant shall not be in
                  default unless it fails to commence such cure within the
                  thirty (30) day period and diligently thereafter prosecute
                  the same to completion; or

                           (iv)     If Tenant shall have assigned its assets
                  for the benefit of its creditors in a bankruptcy or
                  receivership context; or

                           (v)      If the sequestration or attachment of or
                  execution on any material part of Tenant's Personal Property
                  essential to the conduct of Tenant's business shall have
                  occurred, and Tenant shall have failed to obtain a return or
                  release of such Personal Property within 90 days thereafter,
                  or prior to sale pursuant to such sequestration, attachment
                  or levy, whichever is earlier; or

                           (vi)     If Tenant shall have failed to continuously
                  or uninterruptedly conduct its business in the Premises, or
                  shall have abandoned the Premises; or

                           (vii)    If a court shall have made or entered any
                  decree or order other than under the bankruptcy laws of the
                  United States adjudging

                                      31
<PAGE>

         Tenant to be insolvent; or approving as properly filed
         a petition seeking reorganization of Tenant; or directing the winding
         up or liquidation of Tenant and such decree or order shall have
         continued for a period of 90 days; or

         (b)      REMEDIES. Upon a default, Landlord shall have the following
remedies, in addition to all other rights and remedies provided by law or
otherwise provided in this Lease, to which Landlord may resort cumulatively or
in the alternative:

                  (i)      Landlord may continue this Lease in full force and
         effect, and this Lease shall continue in full force and effect as long
         as Landlord does not terminate this Lease, and Landlord shall have the
         right to collect Rent when due;

                  (ii)     Landlord may terminate Tenant's right to possession
         of the Premises at any time by giving written notice to that effect,
         and relet the Premises or any part thereof. Tenant shall be liable
         immediately to Landlord for all costs Landlord incurs in reletting the
         Premises or any part thereof, including, without limitation, broker's
         commissions, and expenses of cleaning, redecorating, and further
         improving the Premises and like costs. Reletting may be for a period
         shorter or longer than the remaining Term of this Lease. Acts of
         maintenance, efforts to relet the Premises or the appointment of a
         receiver on Landlord's initiative to protect Landlord's interest under
         this Lease shall not constitute a termination of Tenant's right to
         possession. Upon termination, Landlord shall have the right to remove
         all of Tenant's Personal Property and store same at Tenant's cost and
         to recover from Tenant as damages:

                      A.  The worth at the time of award of any unpaid Rent and
         other sums due and payable which had been earned at the time of
         termination; plus

                      B.  The worth at the time of award of the amount by which
         the unpaid Rent and other sums which would have been payable after
         termination until the time of award exceeds the amount of such Rent
         loss that Tenant proves could have been reasonably avoided; plus

                      C.  The worth at the time of award of the amount by which
         the unpaid Rent and other sums due for the balance of the Term after
         the time of award exceeds the amount of such Rent loss that Tenant
         proves could be reasonably avoided; plus

                      D.  Any other amounts to compensate Landlord for all the
         detriment proximately caused by Tenant's failure to perform

                                      32
<PAGE>

         Tenant's obligations under this Lease, or which, in the ordinary
         course of things, would be likely to result therefrom, including,
         without limitation, any costs or expenses incurred by Landlord: (i) in
         retaking possession of the Premises; (ii) in maintaining, repairing,
         preserving, restoring, replacing, cleaning, altering or rehabilitating
         the Premises or any portion thereof, including such acts for reletting
         to a new tenant or tenants; (iii) for leasing commissions; or (iv) for
         any other costs necessary or appropriate to relet the Premises; plus

                      E.  At Landlord's election, such other amounts and
         remedies in addition to or in lieu of the foregoing as may be permitted
         from time to time by the laws of the State of California including,
         without limitation, the remedies provided by California Civil Code
         Section 1951.4, as amended from time to time.

         The "worth at the time of award" of the amounts referred to in
Paragraphs 29(b)(ii)(A) and 29(b)(ii)(B) is computed by allowing interest at the
Interest Rate on the unpaid rent and other sums due and payable from the
termination date through the date of award. The "worth at the time of award" of
the amount referred to in Paragraph 29(b)(ii)(C) 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%). Tenant waives redemption or relief from
forfeiture under California Code of Civil Procedure Sections 1174 and 1179, or
under any other present or future law, in the event Tenant is evicted or
Landlord takes possession of the Premises by reason of any default of Tenant
hereunder; or

                  (iii)    Landlord may, with or without terminating this Lease,
         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. No re-entry
         or taking possession of the Premises by Landlord pursuant to this
         subparagraph shall be construed as an election to terminate this Lease
         unless a written notice of such intention is given to Tenant.

            (c)         LANDLORD'S DEFAULT. Landlord shall not be deemed to be
in default in the performance of any obligation required to be performed by it
hereunder unless and until it has failed to perform such obligation within
thirty (30) days after receipt of written notice by Tenant to Landlord
specifying the nature of such default; provided, however, that if the nature of
Landlord's obligation is such that more than thirty (30) days are required for
its performance, then Landlord shall not be deemed to be in default if it shall
commence such performance within such thirty (30) day period and thereafter
diligently prosecute the same to completion; provided, however, that if such
default by Landlord can be cured by the payment of money, Tenant, at its
election, may spend such money as is reasonably necessary to cure such default
and thereafter invoice Landlord for the amount so spent, which Landlord shall
promptly pay; provided, however, that in no event may Tenant offset or deduct
such invoiced amount from rental payable under this Lease. Notwithstanding
anything herein contained to the

                                      33
<PAGE>

contrary, Landlord shall immediately cure any default that poses a threat of
injury or damage to the Premises for which Landlord is responsible.

         30.      SUBORDINATION. Without the necessity of any additional
document being executed by Tenant for the purpose of effecting a subordination,
and at the election of Landlord or any bona fide mortgagee or deed of trust
beneficiary with a lien on all or portion of the Premises or any ground lessor
with respect to the Project and/or Building, this Lease shall be subject and
subordinate at all times to:

                  (a)      all ground leases or underlying leases which may now
         exist or hereafter be executed affecting the Building or the land upon
         which the Building is situated or both, and

                  (b)      the lien of any mortgage or deed of trust which may
         now exist or hereafter be executed in any amount for which the
         Building, land, ground leases or underlying leases, or Landlord's
         interest or estate in any of said items 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. In the event that any ground lease or underlying lease
terminates for any reason or any mortgage or deed of trust is foreclosed or a
conveyance in lieu of foreclosure is made for any reason, Tenant shall,
notwithstanding any subordination, attorn to and become the Tenant of the
successor in interest to Landlord. Tenant covenants and agrees to execute and
deliver, upon demand by Landlord and in the form requested by Landlord, any
additional documents evidencing the priority or subordination of this Lease with
respect to any such ground leases or underlying leases or the lien of any such
mortgage or deed of trust. Tenant's failure within ten (10) days after actual
receipt of such additional documents by an officer or Tenant, to execute and
deliver such additional documents shall constitute a "material non-monetary
default" hereunder. Notwithstanding any subordination, or any such termination
or foreclosure, Tenant's right to quiet possession of the Premises shall not be
disturbed so long as Tenant is not in default of this Lease and so long as
Tenant shall pay Rent and perform and observe all obligations of Tenant under
this Lease, unless this Lease is otherwise terminated pursuant to its terms.
Landlord will deliver to counsel for the existing or any future first mortgage
lender with a lien encumbering the Building a form of nondisturbance agreement
presented to Landlord by Tenant, and request that such lender either execute
such form, or execute a nondisturbance agreement which provides substantially
the same protections requested by Tenant, and Landlord shall use its
commercially reasonable best efforts to persuade such lender to execute and
return such a qualified nondisturbance agreement to Tenant as soon as reasonably
possible.

         31.      NOTICES. Any notice or demand required or desired to be given
under this Lease shall be in writing and shall be personally served or in lieu
of personal service may be given by mail. If given by mail, such notice shall be
deemed to have been given when seventy-two (72) hours have elapsed from the time
when such notice was deposited in the United States mail, registered or
certified, and postage prepaid, return receipt requested, addressed to the party
to be served. At the date of execution of this Lease, the addresses of Landlord
and Tenant are as set forth in Paragraph 1; however, for all notices other than
default notices, Tenant may

                                      34
<PAGE>

deliver a single notice to Landlord at the address for Menlo Business Park,
as set forth in said Paragraph 1. After the Commencement Date, the address of
Tenant shall be the address of the Premises. Either party may change its
address by giving notice of same in accordance with this paragraph.

         32.      ATTORNEYS' FEES. If either party brings any action or legal
proceeding with respect to an alleged breach of any provision of this Lease, to
recover rent or other sums due, to terminate this Lease or to enforce, protect
or establish any term, condition or covenant of this Lease or the right of
either party hereunder or at law or in equity, the prevailing party shall be
entitled to recover as a part of such action or proceedings, or in a separate
action brought for that purpose, reasonable attorneys' fees and costs.

         33.      ESTOPPEL CERTIFICATE. Tenant shall within seven (7) days
following written request by Landlord:

                  (i)      Execute and deliver to Landlord estoppel
         certificates, in a form prepared by Landlord (a) certifying that this
         Lease is unmodified and in full force and effect or, if modified,
         stating the nature of such modification and certifying that this Lease,
         as so modified, is in full force and effect and the date to which the
         Rent and other charges are paid in advance, if any, and (b)
         acknowledging that there are not, to Tenant's knowledge, any uncured
         defaults on the part of the Landlord or stating the nature of any
         uncured defaults; (c) evidencing Tenant's understanding with respect to
         the status of the Lease as may be required either by a lender making a
         loan to Landlord to be secured by deed of trust or mortgage covering
         the Premises or a purchaser of the Premises from Landlord; (d)
         certifying the current monthly rent amount and the amount and form of
         Security Deposit on deposit with Landlord; and (e) certifying to such
         other information as Landlord, mortgagees, prospective mortgagees and
         buyers may reasonably request.

         Tenant's failure to deliver an estoppel certificate within ten (10)
days after delivery of Landlord's written request therefor to an officer of
Tenant shall be a "material non-monetary default" hereunder and shall be
conclusive upon Tenant (a) that this Lease is in full force and effect, without
modification except as may be represented by Landlord; (b) that there are now no
uncured defaults in Landlord's performance; (c) that no more than one required
rental payment has been paid in advance; and (d) that the other information
requested by Landlord is correct as stated in the form presented by Landlord.

                  (ii)     Deliver to Landlord the current financial statements
         of Tenant, and financial statements of the two (2) years prior to the
         current financial statement year, with an opinion of a certified public
         accountant, including a balance sheet and profit and loss statement for
         the most recent prior year, all prepared in accordance with generally
         accepted accounting principles consistently applied.

                                      35
<PAGE>

         34.      TRANSFER OF THE PREMISES BY LANDLORD. In the event of any
conveyance of the Premises and assignment by Landlord of this Lease, Landlord
shall be and is hereby entirely released from all liability under any and all of
its covenants and obligations contained in or derived from this Lease occurring
after the date of such conveyance and assignment, but only upon a full
assumption by the transferee of all obligations of Landlord under this Lease
from and after the date of such transfer, and Tenant agrees to attorn to any
entity purchasing or otherwise acquiring the Premises.

         35.      LANDLORD'S RIGHT TO PERFORM TENANT'S COVENANTS. If Tenant
shall at any time fails to make any payment or perform any other act on its part
to be made or performed under this Lease, Landlord may, but shall not be
obligated to, and without waiving or releasing Tenant from any obligation of
Tenant under this Lease, make such payment or perform such other act to the
extent Landlord may deem desirable and, in connection therewith, pay expenses
and employ counsel. All sums so paid by Landlord and all penalties, interest and
costs in connection therewith shall be due and payable by Tenant on the next day
after such payment by Landlord, together with interest thereon at the Interest
Rate from such date to the date of payment thereof by Tenant to Landlord, plus
collection costs and attorneys' fees. Landlord shall have the same rights and
remedies for the nonpayment thereof as in the case of default in the payment of
Rent.

         36.      TENANT'S REMEDY. The obligations of Landlord do not constitute
the personal obligation of the individual partners, trustees, directors,
officers or shareholders of Landlord. If Landlord shall fail to perform any
covenant, term, or condition of this Lease upon Landlord's part to be performed,
Tenant shall be required to deliver to Landlord written notice of the same. If,
as a consequence of such default, Tenant shall recover a money judgment against
Landlord, such judgment shall be satisfied only out of the proceeds of sale
received upon execution of such judgment and levied thereon against the right,
title and interest of Landlord in the Building and out of Rent or other income
from such property receivable by Landlord or out of consideration received by
Landlord from the sale or other disposition of all or any part of Landlord's
right, title or interest in the Premises, and neither Landlord nor Landlord's
Agents shall be liable for any deficiency. Nothing contained in this Paragraph
36 shall limit or reduce Tenant's rights to pursue any legal remedies it may
have against third parties, including the general contractor and all
subcontractors who constructed the Building, the Tenant Improvements or any
Alterations.

         37.      MORTGAGE PROTECTION. In the event of any default on the part
of Landlord, Tenant will give notice by registered or certified mail to any
beneficiary of a deed of trust of mortagee of a mortgage covering the Premises
who has provided Tenant with notice of their interest together with an address
for receiving notice, and shall offer such beneficiary or mortgagee a reasonable
opportunity to cure the default, including time to obtain possession of the
Premises by power of sale or judicial foreclosure, if such should prove
necessary to effect a cure.

         38.      BROKERS. Each party warrants and represents to the other that
it has had no dealings with any real estate broker, agent or finder in
connection with the negotiation of this Lease or the introduction of the parties
to this transaction, except for the Lewis & Tarlton Company, and that it knows
of no other real estate broker, agent or finder who is or might be

                                      36
<PAGE>

entitled to a commission or fee in connection with this Lease. Further, each
party agrees to indemnify and hold harmless the other party and its Agents
from and against any and all liabilities or expenses, including attorneys'
fees and costs, arising out of or in connection with claims made by any other
broker or individual for commissions or fees resulting from the execution of
this Lease by the indemnifying party. All commissions due Lewis & Tarlton
Company shall be paid by Landlord.

         39.      ACCEPTANCE. Delivery of this Lease, duly executed by Tenant,
constitutes an offer to lease the Premises, and under no circumstances shall
such delivery be deemed to create an option or reservation to lease the Premises
for the benefit of Tenant. This Lease shall only become effective and binding
upon full execution hereof by Landlord, delivery of a signed copy to Tenant and
the satisfaction of the Contingency set forth in Paragraph 44(k) below. Upon
acceptance of Tenant's offer to lease under the terms hereof Landlord shall be
entitled to retain the Security Deposit and apply same to any damages, costs and
expenses incurred by Landlord in the event of Tenant's failure to satisfy the
provisions of Paragraph 44(k) below.

         40.      RECORDING. Neither party shall record this Lease nor a short
form memorandum thereof.

         41.      [THIS PARAGRAPH INTENTIONALLY LEFT BLANK]

         42.      MODIFICATIONS FOR LENDER. If, in connection with obtaining
financing for the Premises or any portion thereof, Landlord's lender shall
request reasonable modification to this Lease as a condition to such financing,
Tenant shall not unreasonably withhold, delay or defer its consent thereto,
provided such modifications do not in any way adversely affect Tenant's rights
of the peaceful use and possession of the Premises pursuant to the terms of this
Lease.

         43.      SEWER FEES. Tenant acknowledges that Menlo Business Park Joint
Venture has paid the connection fees for the entire Project. Tenant shall
promptly reimburse Landlord as Additional Rent, upon presentation of invoice,
for payments made by Landlord to Menlo Business Park Joint Venture for the fees
attributable to Tenant's use of the Premises, based upon a formula determined by
the West Bay Sanitary District on the basis of Tenant's use of the Premises and
the number of Tenant's employees therein.

         44.      GENERAL.

                  (a)      CAPTIONS. The captions and headings used in this
         Lease are for the purpose of convenience only and shall not be
         construed to limit to extend the meaning of any part of this Lease.

                  (b)      EXECUTED COPY. Any fully executed copy of this Lease
         shall be deemed an original for all purposes.

                  (c)      TIME. Time is of the essence for the performance of
         each term, condition and covenant of this Lease.

                                      37
<PAGE>

                  (d)      SEPARABILITY. If any one or more of the provisions
         contained herein shall for any reason be held to be invalid, illegal or
         unenforceable in any respect, such invalidity, illegality, or
         unenforceability shall not affect any other provision of this Lease,
         but this Lease shall be construed as if such invalid, illegal or
         unenforceable provision is not part of the Lease.

                  (e)      CHOICE OF LAW. This Lease shall be construed and
         enforced in accordance with the laws of the State of California.

                  (f)      GENDER; SINGULAR, PLURAL. When the contest of this
         Lease requires, the neuter gender includes the masculine, the feminine,
         a partnership or corporation or joint venture, and the singular
         includes the plural.

                  (g)      BINDING EFFECT. The covenants and agreement contained
         in this Lease shall be binding on the parties hereto and on their
         respective successors and assigns to the extent this Lease is
         assignable.

                  (h)      WAIVER. The waiver by Landlord of any breach of any
         term, condition or covenant, of this Lease shall not be deemed to be a
         waiver of such provision or any subsequent breach of the same or any
         other term, condition or covenant of this Lease. The subsequent
         acceptance of Rent hereunder by Landlord shall not be deemed to be a
         waiver of any preceding breach at the time of acceptance of such
         payment. No covenant, term or condition of this Lease shall be deemed
         to have been waived by Landlord unless such waiver is in writing signed
         by Landlord.

                  (i)      ENTIRE AGREEMENT. This Lease is the entire agreement
         between the parties, and there are no agreements or representations
         between the parties except as expressed herein. Except as otherwise
         provided herein, no subsequent change or addition to this Lease shall
         be binding unless in writing and signed by the parties hereto.

                  (j)      AUTHORITY. If Tenant is a corporation or a
         partnership, each individual executing this Lease on behalf of said
         corporation or partnership, as the case may be, represents and warrants
         that he is duly authorized to execute and deliver this Lease on behalf
         of said entity in accordance with its corporate bylaws, statement of
         partnership or certificate of limited partnership, as the case may be,
         and that this Lease is binding upon said entity in accordance with its
         terms. Landlord, at its option, may require a copy of such written
         authorization to enter into this Lease. The failure of Tenant to
         deliver the same to Landlord within seven (7) days of Landlord's
         request therefor shall be deemed a default under this Lease. Further,
         each individual executing this Lease on behalf of Landlord represents
         to Tenant that (i) Landlord is a California general partnership, the
         partners of which are the entities identified collectively herein as
         Landlord, (ii) such individual has the authority to execute and deliver
         this Lease on behalf of the Landlord and on behalf of the entity in
         whose name he has signed this Lease, (iii) Landlord has the right,
         title and interest necessary to enter into this Lease, and

                                      38
<PAGE>

         (iv) on execution hereof, this Lease shall become a binding obligation
         of Landlord. Landlord shall provide Tenant with a copy of Landlord's
         title insurance policy on request by Tenant. Tenant shall be entitled
         to rely, for all purposes, on any notice, waiver or other advice
         received from either entity comprising Landlord, any successor or
         additional such entity, and from any authorized agent of any such
         entity, as having been given with the full authority of Landlord.

                  (k)      CONTINGENCY. Landlord and Tenant hereby agree that
         Landlord's obligations and Tenant's rights under this Lease are
         expressly conditioned upon Tenant's satisfaction of all its obligations
         (past and present) under the Building 15 Lease. In the event Tenant
         fails to satisfy all its monetary obligations (past and present) under
         the Building 15 Lease as of the Commencement Date, Landlord may, but
         shall not be obligated to, terminate all of Tenant's rights hereunder,
         in which case, Tenant shall be obligated, upon such termination, to
         indemnify Landlord for any and all losses or unreimbursed expenses
         incurred by Landlord in connection with this Lease as of such date,
         including but not limited to, architects' fees, engineering fees,
         appraisers' fees, loan fees and good faith deposits paid by Landlord in
         connection with the design and construction of the Tenant Improvements;
         and attorneys' fees incurred by Landlord in connection with this Lease.
         In the event Tenant satisfies all of its monetary obligations under the
         Building 15 Lease on or before the Commencement Date or prior to
         Landlord's termination of Tenant's rights hereunder, Tenant shall be
         allowed to occupy the Premises, at which point in time, Tenant shall be
         relieved of its obligation to pay rent under the Building 15 Lease;
         provided that Tenant agrees to diligently pursue the satisfaction of
         all its obligations under Paragraphs 12, 14 and 15 of the Building 15
         Lease. In the event Tenant fails to satisfy all or said obligations
         within thirty (30) days of Tenant's occupancy of the Premises, Landlord
         may, but shall not be obligated to, satisfy such obligations itself and
         assess all costs of the same, together with a five percent (5%)
         management fee against Tenant as Additional Rent; which amount shall
         bear interest at the Interest Rate until it is paid by Tenant.

                  (l)      RELEASE. Subject to the provisions of Paragraph 44(k)
         above, Landlord and Tenant hereby agree that upon satisfaction by
         Tenant of all its obligations (past and present) under the Building 15
         Lease, the Building 15 Lease shall be terminated and neither party
         shall have any further rights or obligations to the other, except as
         set forth in this Lease.

                  (m)      EXHIBITS. All exhibits, amendments, riders and
         addenda attached hereto are hereby incorporated herein and made a part
         hereof.

                  (n)      LEASE SUMMARY. The Lease Summary attached to this
         Lease is intended to provide general information only. In the event of
         any inconsistency between the Lease Summary and the specific provisions
         of this Lease, the specific provisions of this Lease shall prevail.

                                      39
<PAGE>

                  THIS SPACE INTENTIONALLY LEFT BLANK

                                      40
<PAGE>

                  THIS LEASE is effective as of the date the last signatory
necessary to execute the Lease shall have executed this Lease.

                                     TENANT

Dated: MARCH 21, 1988                ETAK, INC., a California corporation,
       --------

                                     By:  /s/ Matt Pittchon
                                        ----------------------
                                        Its:   V.P. Finance
                                            ------------------
                                     By:
                                        ----------------------
                                        Its:
                                            ------------------

                                    LANDLORD:

Dated: __________, 198_             MENLO BUSINESS PARK,
                                    a California general partnership,

                                    By:  /s/ John O. Lewis
                                       -----------------------
                                         JOHN O. LEWIS
                                         Its:  General Partner

                                    By:   OLTMANS INVESTMENT COMPANY, a
                                          California limited partnership
                                          Its:  General Partner

                                    By:  /s/ J. O. Oltmans
                                         ---------------------
                                         J. O. OLTMANS, II,
                                         General Partner

                                    By:   /s/  R.M.Holmes
                                          --------------------
                                          R. M. HOLMES,
                                          General Partner

                                    PATRICIAN ASSOCIATES, INC.,
                                    a California corporation,

                                    By:  /s/ Karen E. Shaff
                                         ----------------------
                                         Its:  counsel
                                             ------------------

                                    By:  /s/ R.L. Mays
                                         ----------------------
                                         Its:
                                             ------------------

<PAGE>

                                   EXHIBIT A-1

                           SKETCH AND PLAN OF PROPERTY

<PAGE>

                                   EXHIBIT A-2

                             MASTER PLAN AND SKETCH

<PAGE>

                            EXHIBIT B TO MASTER LEASE

                              WORK LETTER AGREEMENT

         Tenant and Landlord are executing simultaneously with this Work Letter
Agreement a lease (the "Lease-) of even date herewith covering certain Premises
described in Paragraph 2 of the Lease. This Work Letter Agreement is
incorporated into said Lease as Exhibit "B" thereto. In consideration of the
mutual covenants contained in the Lease, Tenant and Landlord hereby agree that
the Premises shall be improved as set forth herein.

         1.       BASE BUILDING. Landlord and Tenant understand and acknowledge
that this Work Letter Agreement relates only to the construction of "non-base
building" improvements ("Tenant Improvements") for the Premises. The "base
building work" has been performed by Landlord at Landlord's sole cost and
expense and includes the elements shown on those certain construction drawings
for the Building prepared by Design and Engineering Systems of Redwood City,
California, entitled "Building No. 7" and consisting of sheets Al (Title Sheet
and Index), A2 (Site & Roof Plan - Enlarged Entry Plan #7), A6 (Floor Plan -
Reflected Soffit Plan and Building Section) and A7 (Exterior Elevations)
approved for construction on July 2, 1986, and shall also include a sanitary
line plumbed under the Building slab to the Premises, with additional saw cut
and drains for future toilets, all as shown on the Preliminary Plans described
in Paragraph 2(a) below. The term "base building work" also means and refers to
the building shell without floor covering, wall finish, drop ceilings or
lighting, or any mechanical, electrical or plumbing systems, but with all
Building Code required improvements for unfinished "shell" buildings.

         2.       PRELIMINARY PLANS AND SPECIFICATIONS.

                  (a)  PRELIMINARY PLANS. At Tenant's request, Landlord shall
prepare preliminary plans and an outline of specifications ("Preliminary
Plans") for the construction of the Tenant Improvements for the Premises,
which Preliminary Plans are identified by title, date and job number on
Schedule 1 to this EXHIBIT "B".

                  (b)  DESIGN INFORMATION. Tenant shall deliver to Landlord
not later than March 15, 1988, information (the "Design Information")
sufficient to permit Landlord to prepare the "Plans" described in Paragraph 3
below. Such information to be supplied by Tenant shall include all necessary
design criteria for the construction of the Tenant Improvements, including,
without limitation, the following information:

                  (i)      The locations of doors (including the truck door),
         partitioning, ceiling layouts, lighting fixtures, electrical outlets
         and switches, and telephone outlets;

                  (ii)     The location and extent of special floor loading;

                  (iii)    The location and description of plumbing
         requirements;

<PAGE>

work to be submitted to each approved subcontractor. Tenant shall be entitled
to attend the bid opening and shall be given reasonable prior notice thereof.
Within five (5) days after receipt of the bids and receipt of Landlord's
general contractor's evaluation of such bids, Tenant may either approve a
bid, disapprove all bids or approve one or more bids for negotiation. Should
Tenant approve any bids for negotiation, such negotiation shall be concluded
as soon as reasonably possible but in no event later than five (5) days after
commencement of negotiations by either acceptance of one bid or by rejection
of all. If the first bidding process does not result in the selection of a
subcontractor for each bid subcontract, Landlord shall commence the process
of submitting the disapproved Improvement Budget for bid for each remaining
subcontract to a maximum of three approved subcontractors. If Tenant does not
approve of one of the responding bids for each subcontract in the second
round of bidding, Landlord shall use its best good faith judgment and select
one of the bids in such second round for each subcontract, which bid shall
thereafter be deemed approved by Tenant. As soon as the foregoing bidding
procedure has been completed, Landlord shall prepare and deliver to Tenant
the final Improvement Budget setting forth the Costs of the Tenant
Improvements. In no event shall the final Improvement Budget exceed the
Improvement Allowance (as hereinafter defined) without Tenant's prior written
consent. Changes to the final Improvement Budget may be made only in
accordance with Paragraph 8 below.

         3.       IMPROVEMENT ALLOWANCE. Landlord hereby agrees to credit Tenant
with an improvement allowance in the amount of Four Hundred Sixty-Five Thousand
One Hundred Sixty-Nine Dollars ($465,169.00) (the "Improvement Allowance") for
the "Costs" of the Tenant Improvements. As used herein, the term "Costs" shall
mean and refer to all costs expended by Landlord relative to the design and
construction of the Tenant Improvements in the Premises (excluding the Mezzanine
space), including, but not limited to, the costs of equipment, material and
labor; contractor's field overhead and fee; architectural, design and
engineering fees; working drawings; governmental agency fees; testing and
inspection costs; sales and use taxes (but not real property taxes); permits;
plan check fees; bonds; and all other costs directly related to the construction
of the Tenant Improvements, plus an administrative fee in the amount of five
percent (5%) of said costs to be paid to The Lewis & Tarlton Company for
construction management. The Cost of the Tenant Improvements shall not include
architectural, design or engineering fees incurred in modifying the Plans after
Landlord and Tenant's approval thereof; working drawings (except as a result of
changes requested by Tenant pursuant to Paragraph 8 below) or other expenses not
itemized on the Improvement Budget without Tenant's prior written consent. In
the event that the Costs of the Tenant Improvements exceed the Improvement
Allowance and all or any portion of such excess is attributable to Tenant's
Changes in Plans (as provided in Paragraph 8 below), the Rent shall be adjusted
as provided in Subparagraph 5(b)(ii) of the Lease. Notwithstanding the
foregoing, it is the intent of Landlord and Tenant that the Tenant Improvements
shall be constructed on a "turn key" basis at a Cost not to exceed the
Improvement Allowance. In the event the final Costs exceed the Improvement
Allowance other than due to Changes in Plans as provided in Paragraph 8 below,
such excess Costs shall be the sole responsibility of, and shall be paid by,
Landlord.

         4.       CONSTRUCTION. Upon approval by the parties of the Improvement
Budget, Landlord shall use its commercially reasonable best efforts to
substantially complete the Improvements on or before the Anticipated
Commencement Date set forth in Paragraph 3(b) of the Lease. Landlord shall not
authorize construction of any Improvements which will result in

<PAGE>

"Outside Costs" (i.e., those Improvements which are not within the scope of
work contemplated by the Improvement Budget approved by the parties pursuant
to the provisions of Paragraph 4 above) unless: (i) Tenant shall have
delivered written approval to Landlord of such Outside Costs, or (ii) such
Outside Costs occur as a result of a "force majeure event" described below.
Landlord shall not be liable for any direct or indirect damages as a result
of delays in construction of the Improvements due to events ("force majeure
events") which generally affect the progress of construction beyond
Landlord's reasonable control, including, but not limited to, fire,
earthquake, inclement weather or other acts of God; strikes; boycotts;
availability of materials and labor; changes in governmental regulations or
requirements; changes in the Plans or Improvement Budget pursuant to
Paragraph 8 below; or Tenant Delays defined in Paragraph 4(d) of the Lease.

         5.       AUDITS. All costs associated with the Tenant Improvements will
be audited in accordance with generally accepted accounting practices. Landlord
hereby grants Tenant the exclusive right to review such cost audits before the
commencement of construction of the Tenant Improvements and upon completion;
provided, however, that Tenant shall give Landlord ten (10) days notice of its
election to review such cost audits.

         6.       CHANGES IN PLANS. From and after the date on which the Plans
have been approved by Landlord and Tenant pursuant to Paragraph 3 above, Tenant
shall have the right to request changes in the Plans, provided, however, that:
(a) such requests shall not result in any structural or material change in the
Tenant Improvements as determined by Landlord; (b) such requests conform to
applicable government regulations and, if necessary, are approved by the
applicable governmental agencies; (c) all additional charges of implementing
such changes including, without limitation, architectural fees, increases in
construction costs and other related charges shall be included in Landlord's
Costs and payable by Tenant in accordance with the provisions of Subparagraph
5(b)(ii) of the Lease; (d) such requests shall constitute an agreement on the
part of Tenant to any delay in completion of the Tenant Improvements caused by
reviewing, processing and implementing the changes; and (e) such requests shall
constitute "Tenant Delays" under the provisions of Paragraph 4(d) of the Lease.
Each request for changes in accordance herewith shall be in writing, and if
approved by Landlord, shall be approved in writing.

         7.       COMPLETION OF THE TENANT IMPROVEMENTS. The Premises shall be
deemed to be "Ready for Occupancy" when the work of construction of the Tenant
Improvements has been substantially completed in accordance with the Plans
(subject to the normal so-called to the normal so-called "punch list items") as
evidenced by the delivery to Landlord and Tenant of a certificate from
Landlord's architect with a copy of a temporary certificate (if legally required
as a condition of occupancy) permitting occupancy of the Premises issued by the
City of Menlo Park. Landlord shall diligently complete as soon as reasonably
possible any items of work and adjustment not completed when the Premises are
Ready For Occupancy. Subject to Tenant's obligation to pay certain Costs in
excess of the Improvement Allowance (as provided in Paragraph 5 above), Landlord
hereby agrees to indemnify, defend and hold Tenant harmless from and against any
liens filed in connection with the construction of the Tenant Improvements.

         8.       QUALITY OF CONSTRUCTION. Landlord and Tenant hereby agree that
all Tenant Improvements shall be constructed by J. M. O'Neill, Inc., (O'Neill)
pursuant to a contract
<PAGE>

on a "cost plus a negotiated fixed fee" basis with a guaranteed maximum
amount which shall be prepared based upon and through negotiation and
competitive bidding. Landlord hereby agrees that the general contractor's
construction manager shall have previous experience in similar projects which
is reasonably satisfactory to Tenant. Landlord warrants and represents to
Tenant that all work shall be done in a good and workmanlike manner and in
compliance with all applicable laws and lawful ordinances, by-laws,
regulations and orders of governmental authority and of the insurers of the
Building. Landlord makes no representations, warranties or guarantees,
expressed or implied, including warranties of merchantability or use of the
Premises, except as expressly set forth herein and in the Lease. Upon written
request by Tenant in each instance, Landlord shall enforce for the benefit of
Tenant all warranties, if any, received by Landlord from O'Neill or others in
connection with the construction of the Tenant Improvements to the extent
that said warranties cover any defects in the Improvements which Tenant is
required to repair hereunder.

         9.       CONSTRUCTION REPRESENTATIVE. In connection with the
original construction of the Tenant Improvements, each party shall be bound
by the acts of its respective Construction Representative appointed by each
party upon the execution of this Lease. Landlord's Construction
Representative is Lorrin C. Tarlton, Jr. and Tenant's Construction
Representative is Matt Pitchon. A party may designate a substitute
Construction Representative by giving written notice to the other party.

         10.      EARLY ENTRY.

                  (a)      TENANT'S FINISHING WORK. If prior to the
Commencement Date, Tenant desires to enter upon a portion of the Premises,
upon reasonable written notice to Landlord, in order to install trade
fixtures and equipment and to commence construction of any improvements
within the Premises to be constructed by Tenant at Tenant's sole cost and
expense ("Tenant's Finishing Work"), such entry by Tenant for the purpose of
construction of Tenant's Finishing Work shall be subject to all of the
conditions set forth in this Paragraph 12.

                  (b)      CONTROL OF WORK. Should Tenant elect to enter the
Premises under the terms of this Paragraph 12 for construction of Tenant's
Finishing Work, it is hereby agreed that Tenant, its employees, its agents,
its independent contractors, its suppliers and any other person under
Tenant's direct control ("Tenant's Personnel") installing Tenant's Finishing
Work on the Premises shall be subject to and shall work under the direction
of Landlord and O'Neill. If, in the sole reasonable judgment of Landlord, the
presence of Tenant's Personnel or the work that is being performed by
Tenant's Personnel shall interfere with Landlord's work of construction,
detrimentally affect Landlord's ability to comply with its commitments for
completing its work of improvement in the Premises, Landlord shall have the
right to order any or all of Tenant's early entry work to cease on 24 hours
written notice. If Landlord requires such cessation of work because there
exists interference with the work of construction of the Tenant Improvements,
Tenant shall have Tenant's Personnel remove from the Premises all of Tenant's
tools, equipment and materials.

                  (c)      CONDITIONS OF OCCUPANCY. If Tenant desires to
exercise its right of early entry in accordance with the provisions of this
Paragraph, Tenant further agrees to: (i) pay for and provide certificates
evidencing the existence and amounts of liability insurance carried

<PAGE>

by Tenant, which coverage shall be reasonably approved by Landlord; (ii) pay
utility charges reasonably allocated to Tenant by Landlord; (iii) indemnify
and save Landlord and the Premises harmless from and against all liens,
liabilities, losses, damages, costs, expenses, demands, actions, causes of
action and claims (including, without limitation, attorney's fees and legal
costs) arising out of the use, construction, or occupancy of the Premises by
Tenant, and/or its agents, employees, contractors and servants prior to the
Commencement Date; and (iv) comply with all applicable laws, regulations,
permits and other approvals applicable to such early entry work on the
Premises.

         11.      BUILD-OUT OF MEZZANINE SPACE. Provided that Tenant does not
default in any of its obligations pursuant to the Lease, Landlord hereby
agrees to design and construct Tenant Improvements respecting the Mezzanine
space contained in the Premises, at Tenant's option, exercisable by Tenant
only during the initial term of the Lease. Upon exercise by Tenant of its
option hereunder, Landlord shall grant Tenant One Hundred Eighty-Eight
Thousand Eight Hundred Twenty-Five Dollars ($188,825.00) (or Twenty-Five
Dollars ($25) per square foot of mezzanine space in the event of partial
"build-out" of the mezzanine space) to be used for the design and
construction of said improvements, at which time, Landlord and Tenant shall
enter into an agreement substantially similar to this Agreement with respect
to the "build-out" of such "mezzanine space".

                                        LANDLORD

Dated:  __________, 198_                 MENLO BUSINESS PARK, a California
                                         general partnership

                                         By:    /s/ JOHN O. LEWIS
                                                -----------------------
                                                JOHN O. LEWIS
                                                Its General Partner

                                         By:    OLTMANS INVESTMENT COMPANY,
                                                a California Limited Partnership
                                                Its General Partner

                                         By:    /s/ J.O. OLTMANS, II
                                                --------------------------
                                                J.O. OLTMANS, II,
                                                General Partner

                                         By:    /s/ R.M. HOLMES
                                                --------------------------
                                                R.M. HOLMES,
                                                General Partner

<PAGE>

                                         PATRICIAN ASSOCIATES, INC.,
                                         a California corporation

                                         By:    /s/ Karen E. Shaff
                                                ------------------------

                                         Its:   Karen E. Shaff, Counsel

                                          By:    /s/ R.L. Hays
                                                 ------------------------

                                         Its:   R.L. Hays, Vice President

                                         TENANT

Dated:  March 21, 1988                   ETAK, INC., a California corporation
        --------     -

                                         By:    Matt Pittchon
                                                ---------------------------

                                         Its:   Vice-President Finance
                                                ---------------------------

                                         By:
                                                ----------------------------

                                         Its:
                                                ----------------------------

<PAGE>

                                   EXHIBIT "C"

                         COMMENCEMENT DATE MEMORANDUM

LANDLORD:                MENLO BUSINESS PARK, a California general partnership,
                         and PATRICIAN ASSOCIATES, INC.,a California corporation

TENANT:                  ETAK, INC., a California corporation.

LEASE DATE:              March 21, 1988.
                         --------
PREMISES:                Approximately 25,775 square feet of the building
                         located at

                               1430 O'Brien Drive
                             Menlo Park, California.

                  Pursuant to Paragraph 4(c) of the above referenced Lease, the
Commencement Date is hereby established as December 22, 1988.
                                           -----------------
                                         LANDLORD

Dated:  12/29/1988                       MENLO BUSINESS PARK, a California
        ----------                       general partnership

                                         By:    /s/ John O. Lewis
                                                ---------------------
                                                JOHN O. LEWIS
                                                Its General Partner

                                         By:    OLTMANS INVESTMENT
                                                COMPANY, a California Limited
                                                Partnership
                                                Its General Partner

                                                By: /s/ J.O.Oltmans II
                                                    --------------------
                                                    J.O. OLTMANS, II,
                                                    General Partner

                                                By: /s/ R M Holmes
                                                    ------------------
                                                    R.M. HOLMES
                                                    General Partner

<PAGE>

                                                PATRICIAN ASSOCIATES, INC.,
                                                a California corporation

                                                By:    /s/ G.C. Hauser
                                                       -------------------

                                                Its:   G.C. Hauser
                                                       Vice President

                                                By:    /s/ D.D. Duscher
                                                       -------------------
                                                Its:   D.D. Duscher
                                                       Vice President

                                                TENANT

Dated:  *12/29, 1988                            ETAK, INC. a California
*See attached memo from Tig Tarlton             corporation
  dated 12/29/88.
                                                By:    /s/ Stanley
                                                       -------------------

                                                Its:   Executive Vice President
                                                       ------------------------

                                                By:
                                                       -------------------------

                                                Its:
                                                       -------------------------

<PAGE>

                                       The
                                 LEWIS & TARLTON
                                     Company

August 27, 1991

Matt Pitchon, Vice President
ETAK
1430 O'Brien Drive
Menlo Park, Ca 94025

Re:   Exercise of Option to Extend lease term for two additional years

Dear Matt,

This will confirm our phone conversation this morning and with your "READ and
AGREED" signature below, will constitute a formal exercise by ETAK of that
Option to Extend under Paragraph 4(g), page 5 of your lease.

This will extend the primary lease for suites AB&C for two years, to a new
termination date of 12-31-93.

In addition you have mentioned that you wish to extend the term of lease for
suites D&E to be coterminous with the same lease. This instrument shall also
serve to extend the lease on suites D&E to 12-31-93. We appreciate this timely
notification and look forward to having ETAK as a tenant at Menlo Business Park
for even more years to come.

Best personal regards,

THE LEWIS &TARLTON COMPANY

/s/  Tig Tarlton
----------------

L.C. Tarlton, Jr.                                      READ and AGREED
Exclusive Agent for
Menlo Business Park Joint Venture                      /s/ Matt Pitchon
                                                       ----------------------

cc:      John Lewis
         Joe Oltmans
         Rod Vogel
         Rick Mallory, Esq.

<PAGE>

TARLTON PROPERTIES

June 23, 1993                                                 REVISED 9-10-93

Mr. Matt Pitchon, V.P. / Operations
ETAK
1430 O'Brien Drive
Menlo Park, CA 94025

RE:      LEASE AGREEMENT TO EXTEND FOR FOUR (4) YEARS, FROM 1-1-94 TO 12-31-97
         1430 O'BRIEN DRIVE, MENLO PARK, CA (SUITES A,B,C,D & E)

Dear Matt,

This letter, when executed by you, will serve as a formal Agreement to Extend
under that certain lease dated March 21, 1988 and amended March 23, 1992.
Following are the conditions of the Agreement:

1. The above referenced lease will be extended to include Suites D&E, and will
exclude Suite F, for a total square footage of 38,677 S.F.

2. Your new rent, as agreed, will be $.85/s.f./mo./NET, beginning January 1,
1994. In accordance with Paragraph 5 (b) of the Lease, your rent will be subject
to an annual Consumer Price Index (Urban Wage Earners and Clerical Workers, San
Francisco-Oakland Area) increase using a minimum of 4% and a maximum of 6%.

3. There will be a $3.00/s.f. Tenant Improvement Allowance, to be paid in cash
by Landlord, to be used by Tenant for carpet and paint.

4. Upon execution of this Agreement, the Security Deposit shall be $32,875.45
(equal to one month's rent).

5. The Tenant's Percentage Share of Common Area Expenses shall be 60.01%.

                  38,677 / 64,452 = 60.01%
                  ------------------------

6. As agreed, the only broker involved in this transaction will be Tarlton
Properties, Inc.

7. ETAK shall have the option, exercisable six (6) months prior to the
expiration of the 2nd year of the extended term, to cancel the portion of this
lease, on suites D&E only, for years 3 & 4 of said lease by the payment of year
3 lease payments (including escalation) at the time of exercise.

8. All other terms and conditions of said Lease shall remain in full force and
effect.

Please acknowledge your acceptance of this Agreement by signing and returning a
copy hereof.

We look forward to having ETAK as a tenant for even more years to come.

<PAGE>

Sincerely,                                          READ and AGREED

TARLTON PROPERTIES, INC.                            /s/ Matt Pitchon, VP OPS
   /s/  L.C. (Tig) Tarlton, Jr.                     ---------------------------
   ----------------------------                     Matt Pitchon, V.P. /
                                                    Operations

Lorrin C. Tarlton, Jr.
Agent for Menlo Business Park Joint Venture

MENLO BUSINESS PARK,
a California general partnership

By:     /s/ John Lewis
        ---------------------
        John O. Lewis

OLTMANS INVESTMENT COMPANY
General Partner

By:     /s/ J O Oltmans II
        ----------------------
        J.O. Oltmans II

By:     /s/ Basil Johnson
        ----------------------
        Basil C. Johnson

PATRICIAN ASSOCIATES, INC.,
a California corporation

By:     /s/  Rod Vogel
        ---------------------------------

Its:    Rod Vogel, Vice President
        ----------------------------------

By:     /s/ Randall C. Mundt
        ----------------------------------

Its:    Randall C. Mundt, Vice President
        ----------------------------------

<PAGE>

TARLTON
PROPERTIES

April 10, 1997

William S. Frank
Manager, Real Estate
ETAK, Inc.
c/o Sony Corporation of America
555 Madison Ave.
New York, NY 10022-3301

RE:      LEASE EXTENSION FOR ETAK, INC.
         1430 O'BRIEN DRIVE, SUITES A,B,C,D& E (BUILDING 7), MENLO PARK, CA

Dear Bill:

This letter, when executed, will serve as a formal Agreement to extend and
modify that certain lease dated March 21, 1988 and amended on March 23, 1992 and
on June 23, 1993, for the Premises located at 1430 O'Brien Drive, Suites
A,B,C,D&E (Building 7), of Menlo Business Park, California (the "Lease").
Following are the conditions of the Agreement:

1.       The commencement date of this extension shall be January 1, 1998 and
the expiration shall be September 30, 2001 (coterminous with the Lease for
Building 18).

         2.       The term of the Lease extension shall be for a period of forty
five (45) months.

         3.       Paragraph 5 is hereby amended with the following monthly rent
schedule

         Year 1            $44,478.55/month ($1.15/s.f.)
         Year 2            Year 1 plus CPI annual increase (min 4%, max 6%)
         Year 3            Year 2 plus CPI annual increase (min 4%, max 6%)
         Year 4            Year 3 plus CPI annual increase (min 4%, max 6%)

         4.       The amount of the Security Deposit per Paragraph 7 of the
Lease is hereby amended to $44,478.55. The existing security deposit of
$38,524.20 is to be credited to new security deposit. Tenant shall deposit
with Landlord an additional $5954.35 to increase the current security deposit
to one month's rent.

         5.       Tenant warrants that there are no brokers other than
Tarlton Properties, Inc., acting as exclusive leasing agent for Menlo
Business Park for which any commissions shall be paid solely by Menlo
Business Park Joint Venture.

<PAGE>

Lease Extension
ETAK, Inc.
Page 56

         6.       Paragraph 17(c) is hereby amended as follows:

Landlord shall, at Tenants expense, obtain at competitive rates, and keep in
full force and effect, a service contract with a licensed HVAC contractor for
the maintenance of the HVAC systems in the Building which shall have the
shortest notice of termination period available.

         7.       All other terms and conditions of said Lease shall remain in
full force and effect. Please acknowledge your acceptance of this Agreement by
signing and returning a copy thereof.

We look forward to having ETAK remain in the Park in the upcoming years.

Sincerely,
TARLTON PROPERTIES, INC.
Exclusive Agents for Menlo Business Park Joint Venture

/s/ L.C. (Tig) Tarlton
----------------------

Lorrin C. Tarlton, Jr.
<PAGE>

Lease Extension
ETAK,Inc.
Page 57

READ AND AGREED

Tenant:

ETAK, Inc.
a California corporation

By:     /s/
        ---------------------------

Its:    Approved by Law Dept.
        ---------------------------

By:
        ---------------------------

Its:
       ---------------------------

Landlord:

PATRICIAN ASSOCIATES, INC.,

By:     /s/  Kurt D. Schaeffer
        ---------------------------
        Kurt D. Schaeffer, Vice President

By:     /s/ R L Minear
        ---------------------------
        R.L. Minear, Vice President

MENLO BUSINESS PARK,
a California general partnership

By:     /s/ John O. Lewis
        ---------------------------
        John O. Lewis, as general partner

By:     Oltmans Investment Company, as general partner

By:     /s/ J.O. Oltmans
        ---------------------------
        J.O. Oltmans II

<PAGE>

Lease Extension
ETAK, Inc.
Page 58

By:     /s/ Basil C. Johnson
        ---------------------------
        Basil C. Johnson

By:     Lorrin C. Tarlton, Jr., and Marilyn L. Tarlton, Trustees, As general
        partner

By:     /s/ Lorrin C. Tarlton, Jr., Trustee
        --------------------------------------
        Lorrin C. Tarlton, Jr., Trustee

By:     /s/ Marilyn L. Tarlton, Trustee
        ----------------------------------
        Marilyn L. Tarlton, Trustee

<PAGE>

Lease Extension
ETAK, Inc.
PAGE 1
                              AMENDMENT TO LEASE

This agreement made this 23rd day of March 1992 by and between Menlo Business
Park, a California General Partnership and Patrician Associates, Inc., a
California corporation, Lessor and ETAK, Inc., a California corporation, Lessee
being the parties to that certain Lease dated March 21, 1988 for the premises
located at 1430 O'Brien Drive, Menlo Park, California designated as Suites A, B
& C consisting of approximately 25,775 square feet hereby express mutual desire
and intent as follows:

Whereas, Lessor desires to lease to Lessee and Lessee desires to lease from
Lessor that certain additional approximately 7,407 square foot space, designated
as Suite F, adjoining the Lessee's existing space as shown on Exhibit "A2"
attached. Now, therefore, it is agreed by and between the parties hereto as
follows:

1.       That the term of this Agreement shall be for twenty one (21) months and
twenty two (22) days commencing the tenth day of March 1992 and ending December
31, 1993 (coterminous with that certain Lease on existing space dated March 21,
1988, per the letter of extension dated August 27, 1991 and signed by Matt
Pitchon, Vice President of ETAK).

2.       That the monthly rent shall be in accordance to the aforementioned
Lease ($0.88/square foot or $6,518.16/month, as of the signing of this
Agreement) and that said monthly rent shall be subject to adjustment in
accordance with paragraph 5 of said Lease dated March 21, 1988.

3.       That the Tenants Percentage Share of Common Area Expenses shall
increase by the following amount: 7,407/64,452 = 11.49%. This brings the total
Percentage Share to 51.48% for that certain Lease.

4.       That the Tenant shall, upon execution of this Agreement, pay an
additional security deposit in the amount of $6,518.16 (one month's rent).

5.       That all of the other terms and conditions of said Lease remain in full
force and effect.

                                    PAGE 1
<PAGE>

Lease Extension
ETAK, Inc.
PAGE 2

6.       That the aforementioned additional space was accepted and occupied by
the Tenant as of March 10, 1992, and that rent is to be paid from that date.

7.       That the aforementioned additional space was accepted "as is", with NO
exceptions.

In Witness whereof the parties hereto have executed this instrument the day and
year herein above written.

                                    PAGE 2
<PAGE>

Lease Extension
ETAK, Inc.
PAGE 3

                              AMENDMENT TO LEASE

LESSEE / TENANT                                LESSOR/LANDLORD

ETAK, Inc., a California corporation           Menlo Business Park, a California
                                               General Partnership

by:     /s/ Matt Pittchon                      by:  /s/ John O. Lewis
        --------------------------                 --------------------------
                                                    John O. Lewis
its:    VP OPS                                      Its General Partner
        --------------------------

                                               Oltman's Investment Company,
                                               a California Limited Partnership

                                               by:     /s/ J.O. Oltamans
                                                       -----------------------
                                                       J.O. Oltmans, II
                                                       General Partner

                                               by:      /s/ Basil Johnson
                                                        ----------------------
                                                        Basil Johnson
                                                        General Partner

                                               Patrician Associates, Inc.,
                                               a California corporation

                                               by:     /s/ Timothy E. Minton
                                                       -------------------------
                                               its:    Timothy E. Minton
                                                       Vice President

                                               by:     /s/ Randall C. Mundt
                                                       -------------------------
                                               its:    Randall C. Mundt
                                                       Vice President

                                    PAGE 3
<PAGE>

Lease Extension
ETAK, Inc.
PAGE 4

                                EXHIBIT "C"

                            SKETCH OF PROPERTY

<PAGE>

                                 EXHIBIT C
                       CONSENT TO SUBLEASE AGREEMENT

The undersigned Landlord under the Master Lease attached hereto as Exhibit
"A" hereby consents to the subletting of the premises described therein on
the express conditions that:

1.  Landlord's consent to the sublease shall not constitute its consent or
waiver of consent to any subsequent sublease or sub-sublease, and shall not
in any manner increase, decrease or otherwise affect the rights and
obligations of Landlord and Tenant under the Master lease unless specifically
stated herein.

2.  In the event of Sublessee default, it is agreed that Sublessor will
remain liable for all the monthly lease payments and any other monies due
through the remainder of the lease term, per the Master Lease.

3.  This Sublease agreement shall in no way release Sublessor from any
obligation or covenant of the Master Lease between Landlord and Tenant.

4.  If any monetary default under the Master Lease occurs, Landlord will have
the right to collect the rent attributable to the subleased premises directly
from Sublessee without (i) waiving any of the Landlord's rights against
Sublessor as a result of such default and (ii) becoming liable to Sublessee
for any failure of Sublessor to perform any obligation of Sublessor under the
Sublease.

5.  If at any time prior to the expiration of the term of the Sublease the
Master Lease shall terminate or be terminated for any reason (or Tenant's
right to possession shall terminate without termination of the Master Lease),
the Landlord shall have the right to elect to either: (a) cause the Sublease
to simultaneously terminate, (b) upon written demand of Landlord, and not
otherwise, to succeed to Sublessor's interest in the Sublease, in which case
Sublessee shall attorn to Landlord for the remainder of the term of the
Sublease, such attornment to be upon all of the terms and conditions of the
Master Lease and the Sublease shall be automatically assigned to Landlord
upon such written demand. The foregoing provisions of this paragraph shall
apply notwithstanding that, as a matter of law, the Sublease may otherwise
terminate upon the termination of the Master Lease and shall be
self-operative upon such written demand of the Landlord, and no further
instrument shall be required to give effect to said provisions. Upon the
demand of Landlord, however, Sublessee agrees to execute, from time to time,
documents in confirmation of the foregoing provisions of this paragraph
satisfactory to Landlord in which Sublessee shall acknowledge such attornment
and shall set forth the terms and conditions of its tenancy. Nothing
contained in this paragraph shall be construed to (i) impair or modify any
right otherwise exercisable by the Landlord, whether under the Master Lease,
any other agreement or in law, or (ii) in the event of an attornment, cause
Landlord to be:

(a) liable for any rent paid by Sublessee to Sublessor more than one month in
advance, or any security deposit paid by Sublessee to Sublessor;

                                  1

<PAGE>

(b) liable for any act or omission of Tenant under the Master Lease or for
any default of Sublessor under the Sublease that occurred prior to the
Landlord's assumption;

(c) subject to any defenses or offsets that Sublessee may have against
Sublessor that arose prior to Landlord's assumption; or

(d) bound by any changes or modification made to the Sublease without the
written consent of Landlord.

Landlord:

PATRICIAN ASSOCIATES, INC.,
a California Corporation

By:     /s/ Tim Wirta                       By:    /s/  John N. Urban
    -----------------------------               ------------------------------

Print Name: Tim Wirta, Vice President       Print Name: John N. Urban, Vice
                                            President

Its:                                        Its:
     ----------------------------                -----------------------------

MENLO BUSINESS PARK,
a California general partnership

By:     John Owen Lewis Trust UTD April 1, 1991
        As general partner

By:     /s/ John O. Lewis
        ----------------------------
        John O. Lewis, Trustee

By:     Oltmans Investment Company,
        as general partner

By:     /s/ J.O. Oltmans II
        ----------------------------
        J.O. Oltmans II

By:     /s/ Basil C. Johnson
        ----------------------------

Print Name: Basil C. Johnson

                                      2

<PAGE>

By:     Lorrin C. Tarlton, Jr., and Marilyn L. Tarlton,
        Trustees UTD 1-23-75, as general partner

By:     /s/ Lorrin C. Tarlton, Jr.,Trustee
        --------------------------------------
        Lorrin C. Tarlton, Jr., Trustee

By:     /s/  Marilyn L. Tarlton, Trustee
        --------------------------------------
        Marilyn L. Tarlton, Trustee

                                        3

<PAGE>

                            ADDENDUM ONE TO SUBLEASE

Sublessor agrees to the following:

1.       Terminate the existing data/phone wiring to a location accessible to
         Sublessee.

2.       Provide a "doorbell" for guests of Sublessee

3.       Provide janitorial service to Sublessee

4.       Provide access to and use of the ground floor restrooms.

Sublessor also agrees to include the use of the existing office furniture and
partitions by Sublessee for the term of the Sublease. Sublessor and Sublessee
will list furniture and partition items below within the first week of the
Sublease Term.

Any damage to the furniture and partitions, excepting normal wear and tear,
will be repaired (or replaced) at the Sublessee's sole expense.

The furniture and partitions will remain intact and with the Premises when
the Sublessee vacates the Premises.

Furniture and Partition Inventory Dated September 25, 1998:

Agreed

ETAK, Inc.

By:
      -------------------------------------

Its:  Director, HR & General Affairs

Drug Abuse Sciences, Inc.

By:
      -------------------------------------

Its:    President & CEO

                                              4

<PAGE>

                        FURNITURE AND PARTITION INVENTORY
                            DATED SEPTEMBER 25, 1998

Quantity                     Description
-------                      -----------

2                            6' Executive Metal Desk
1                            8' Plastic Laminated Conference Table
8                            4' tall metal bookcases
2                            3' tall metal bookcases
3                            5' metal desks
2                            round tables (Plastic Laminated)
1                            3' X 5' work table (Plastic Laminated)
11                           2 drawer black metal files (Hon)
11                           red arm-chairs
8                            blue conference table chairs
2                            grey executive chairs
4                            grey guest chairs
6                            trash cans
3                            white boards

                                        5

<PAGE>

                         SUBLEASE AMENDMENT NUMBER 1

This agreement is made this 23 day of October, 1998 by and between ETAK, Inc.
(Sublessor) and Drug Abuse Sciences, Inc. (Sublessee) being the parties to
that certain Sublease dated October 1,1998 for the Premises located at 1430
O'Brien Dr., Suite E, Menlo Park, CA, consisting of approximately 1,500
leasable square feet.

Now, therefore, it is agreed by and between the parties:

1.2     Neither Sublessee nor any of its employees, agents, guests or
invitees shall be permitted to use any space leased to or occupied by
Sublessor under or pursuant to the Master Lease which is not included in the
Premises, other than such common areas which are appurtenant to or service
the Premises and which are necessary for the use and occupancy thereof,
limited, however, to the extent that the same are available to Sublessor
pursuant to the terms and conditions of the Master Lease.

1.3     This Sublease and the obligation of Sublessee to pay Rent hereunder
and perform all of the other covenants and agreements hereunder on the part
of Sublessee to be performed shall in no way be affected, impaired or excused
because Sublessor is unable to fulfill any of its obligations under this
Sublease expressly or implicitly to be performed by Sublessor or because
Sublessor is unable to make, or is delayed in making, any repairs, additions,
alterations, improvements or decorations or is unable to supply or is delayed
in supplying any equipment or fixtures, if Sublessor is prevented or delayed
from so doing by reason of strikes or labor trouble or by accident,
adjustment of insurance or by any cause whatsoever reasonably beyond
Sublessor's control, including but not limited to, laws, governmental
preemption in connection with a National Emergency or by reason of any rule,
order or regulation or any federal, state, county or municipal authority or
any department or subdivision thereof or any government agency or by reason
of the conditions of supply and demand which have been or are affected by war
or other emergency.

2.1     Sublessee shall not make any alterations, additions or improvements
to the Premises without obtaining the prior written consent of Landlord (if
such consent is required under the terms of the Master Lease) and Sublessor.
Sublessor's consent shall not be unreasonably withheld. The performance of
such alterations, additions and improvements shall be subject to the terms
and conditions of the Master Lease and Sublease.

2.2     If Sublessor shall be unable to give possession of the Premises on
the Commencement Date, the Rent reserved and covenanted to be paid herein
shall not commence until the date on which Sublessor shall be able to give
possession of the Premises to Sublessee, and no such failure to give
possession on such scheduled date shall in any wise affect the validity of
this Sublease or the obligations of Sublessee hereunder or give rise to any
claim for damages by Sublessee or claim for rescission of this Sublease, nor
shall the same in any way be construed to extend the Term. If permission is
given to Sublessee to enter into the possession of the Premises, other than
for the preparation of plans, measurement of and/or decoration of the
Premises, Sublessee covenants and agrees that such occupancy shall be deemed
to be under all the terms, covenants, conditions and provisions of this
Sublease, including the covenant to pay Rent.

                                  1-3

<PAGE>

14.7     Sublessee hereby waives its right to interpose a counterclaim in any
summary proceeding instituted to remove Sublessee from the Premises or in any
action or proceeding instituted for the collection of Fixed Rent, Additional
Rent or other amounts Sublessee is obligated to pay to Sublessor hereunder
unless such counterclaim is compulsory and by the failure to raise such claim
in the proceeding or action, Tenant, would lose the right to assert such
claim.

14.8     Sublessor covenants, that, as long as Sublessee shall duly observe,
perform and comply with all of the terms, covenants and conditions of this
Sublease on its part to be observed, performed or complied with, Sublessee
shall, subject to all of the terms of the Master Lease and this Sublease,
peaceably have, hold and enjoy the Premises during the Term without
molestation or hindrance by Sublessor.

14.9     At any time and from time to time within ten (10) days after a
written request from Sublessor or Sublessee, Sublessor or Sublessee shall
execute, acknowledge and deliver to the other a written statement certifying
(i) that this Sublease has not been modified and is in full force and effect
or, if there has been a modification of this Sublease, that this Sublease is
in full force and effect as modified, and stating such modifications, (ii)
the dates to which the Rent, additional rent and other charges hereunder have
been paid, (iii) that to the best of Sublessor's or Sublessee's knowledge, no
defaults exist under this Sublease or, if any defaults do exist, specifying
the nature of each such default and (iv) as to such other matters as
Sublessor or Sublessee may reasonably request.

14.10   If any of the provisions of this Sublease or the application thereof
to any person or circumstance shall, to any extent, be invalid or
unenforceable, the remainder of this Sublease, or the application of such
provision or provisions to persons or circumstances other than those as to
whom or which it is held invalid or unenforceable, shall not be affected
thereby, and every provision of this Sublease shall be valid and enforceable
to the fullest extent permitted by law.

14.11   This Sublease shall be governed in accordance with the laws of the
State of California.

SUBLESSOR                                 SUBLESSEE
ETAK, Inc.                                Drug Abuse Sciences, Inc.

By:  /s/ Louis F, Connado                 By:  /s/ Stanley A. Kaplan
   -----------------------------             -------------------------------
Print Name: Louis F. Connado                   Stanley A. Kaplan
Its: Director, HR & General Affairs            Its: President & CEO

Landlord:
PATRICIAN ASSOCIATES, INC., a California Corporation

By:  /s/ Tom Wirta                         By:  /s/ Steve W. Pick
    ----------------------------               -----------------------------

                                  2-3

<PAGE>

Print Name: Tim Wirta, Vice President      Print Name: Steve W. Pick, Vice
                                           President

Its:                                       Its:
     -----------------------------              ------------------------------

MENLO BUSINESS PARK, a California general partnership
By:     John Owen Lewis Trust UTD April 1, 1991
        As general partner

By:   /s/ John O. Lewis
    ------------------------------
      John O. Lewis, Trustee

By:   Oltmans Investment Company,
      As general partner

By:   /s/ J.O. Otmans II
    ------------------------------
      J.O. Oltmans II

By:  /s/ Basil C. Johnson
    ------------------------------

Print Name: Basil C. Johnson

By:   Lorrin C. Tarlton, Jr., and Marilyn L. Tarlton,
      Trustees UTD 1-23-75, as general partner

By:  /s/  Lorrin C. Tarlton, Jr., Trustee
    --------------------------------------
     Lorrin C. Tarlton, Jr., Trustee

By:  /s/ Marilyn L. Tarlton, Trustee
    --------------------------------------
      Marilyn L. Tarlton, Trustee

                                  3-3

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