Document:

LEASE

     This  Lease  is  made  as  of  this  8th day of August 1995 (the "Effective
Date"), by and between Alta California Associates, an unincorporated association
("Landlord") and Optivision, Inc., a California corporation ("Tenant") by virtue
of  the  following  facts  and  circumstances:

                                    RECITALS

     A     Landlord  is  the owner of a certain leasehold interest consisting of
land,  buildings  and  improvements  located  in  Palo Alto, Santa Clara County,
California,  commonly  designated  as  3450  and  3460  Hillview  Avenue  (the
"Property"). The Property includes 7.358 acres of land, two buildings - the 3450
Hillview Building (consisting of approximately 43,472 gross rentable square feet
("RSF") and herein referred to as the "Building") and the 3460 Hillview building
(the  "3460  Hillview  Building")  consisting  of approximately 35,568 RSF. This
property  is  more  particularly  described  as:

          a  portion  of  the  land  of The Leland J. Stanford Junior University
          located within the boundaries of the County of Santa Clam, California,
          being  Lot  6  as  said  lot  is  shown  on the Map of Tract No. 4781,
          Stanford  Industrial  Park,  filed  November 13, 1969, as Document No.
          3718383,  in  Book  261  at  Page 40-41, Official Records, Santa Clara
          County.

     Landlord's  leasehold  interest was and is derived from that certain ground
lease  by  and  between  the  Board  of  Trustees  of the Leland Stanford Junior
University,  as  ground  lessor,  and  Bayhill  Associates, a California general
partnership  and  predecessor-in-interest  of Landlord as ground lessee, copy of
which  is  attached hereto as Exhibit A.  A memorandum of the aforesaid original
                              ---------
lease  was  dated  as of March 15, 1979 and recorded as Documents No. 6327352 in
Book #380 at Page 619, Official Records, Santa Clara County, California. Bayhill
Associates  assigned  all  of  its  interest in and to the leasehold to Landlord
pursuant  to  the  terms  and  conditions  of  a  certain Amendment, Assignment,
Assumption and Consent to Assignment of Lease Agreement dated as of November 25,
1981, recorded December 1, 1981, as Document NO. 7224755 at Book G473, Page 708,
Official  Records,  Santa  Clara  County,  California.

     B.     Tenant desires to lease from Landlord, and Landlord desires to lease
to  Tenant,  the  entirety  of  the  Building

     C.     Tenant  also  desires  to  obtain  and  Landlord is willing to grant
Tenant, an option and a right of first offer to lease space in the 3460 Hillview
Building  on  the  terms  and  conditions  stated  herein.

                                        1
<PAGE>
     NOW,  THEREFORE,  for  good  and valuable consideration, the parties hereto
agree  as  follows:

     1.   LEASE:
          -----

          A.     Grant:  Landlord  hereby  leases  to  Tenant, and Tenant hereby
                 -----
leases  from  Landlord, (i) the Building, (ii) the nonexclusive right to use all
other  area  of  the  Property  outside  of  the  Building and the 3460 Hillview
Building  (herein the "Common Area") as depicted on Exhibit B. including without
                                                    ------- --
limitation  all  of the parking areas of the Common Area, and (iii) the right to
mark all parking spaces located in the parking area adjacent to the entry of the
Building  as  "visitor".  or  "[Tenant's  name]  visitor"  or "[Tenant's name]";
together  with  all  easements  and  rights  appurtenant  to  the  foregoing
(collectively  the  "Premises").

          B.     Early Entry:  Upon waiver of the conditions precedent contained
                 -----------
in  paragraph  23  of this Lease, Landlord shall immediately demolish all of the
interior of the Building (other than the space located on the first floor of the
building  and  labeled  as "Early Entry Space" on attached Exhibit B so that the
                                                           ---------
demolition  is  completed  on  or  before  [September 5, 1995], except for minor
demolition  work which will not cause traffic, dust, noise, or other disturbance
which will materially interfere with the use of the Early Entry Space by Tenant.
On  September 5, 1995 Tenant shall have the right to take early occupancy of the
Early  Entry  Space  on  the  following  terms  and  conditions:

               (i)     Rent:  The  Base  Rent  the  Early  Entry  Space shall be
                       ----
payable  on  a  full-service  basis,  at  the  rate  of  $13,000  per  month.

               (ii)     Commencement  Date:  Notwithstanding  the Tenant's entry
                        ------------------
into the Early Entry Space, the Commencement Date of this Lease shall not occur,
and  Tenant  shall have no duty to pay Taxes, insurance premiums, nor Landlord's
Maintenance  Expenses  until,  the  "Completion"  (pursuant  to  the Improvement
Agreement)  of  the Initial Improvements for all of that portion of the Premises
other  than  the  Early  Space.

               (iii)     Rent  Reduction  During  Construction:  To  compensate
                         -------------------------------------
Tenant  being  deprived  of  the  Early Entry Space after the. Commencement Date
(during construction of the Initial Improvements therein), the Base Monthly Rent
payable  under  this  paragraph  3 shall be reduced in the amount of $13,000, or
$420  per  day  (i.e., $13,000 / 31). The rent for any partial month between the
Completion  of  the  Initial  Improvements to the Premises (other than the Early
Entry  Space)  and  the  Completion  of Initial Improvements for the Early Entry
Space shall be prorated based on the actual number of days in the partial month.

               (iv)     Completion  of  Improvements  for the Early Entry Space:
                        -------------------------------------------------------
Within  10  days  following  the  Commencement  Date,  Tenant  shall  surrender
possession  of  the  Early Entry Space to Landlord, who shall thereupon promptly
commence  and  complete  the  Initial  Improvements  to  be  constructed therein
pursuant  to  the  Improvement  Agreement  so  that the same are Completed on or
before  the thirty-first (31st) day following surrender of the Early Entry Space
to  Landlord.  If  the  Initial  Improvements  for the Early Entry Space are not
"Completed"  by said date in accordance with the Improvement Agreement, then the
Base  Monthly  Rent  payable  hereunder for the Premises pursuant to paragraph 3
shall be reduced at the rate of $420 per day for each day of delay in completion
of  the  Initial  Improvements  for  the  Early  Entry  Space.

                                        2
<PAGE>
     2.   TERM  OF  LEASE:
          ---------------

          A.     Initial  Term:  The  term  of  this Lease ("Term") shall be for
                 -------------
seven (7) years, commencing on the later of November 1, 1995 or the "Completion"
of  the  Landlord's Work (as defined in the Improvement Agreement) in all of the
Premises,  other than the Early Entry Space, (the "Commencement Date") and shall
end  on  the  day  immediately  preceding  the seventh annual anniversary of the
Commencement Date, unless the Term is extended in accordance with paragraph 2.B,
below.

          B.     Options  to Renew:  Tenant shall have two successive options to
                 -----------------
extend the Lease Term, each for a period of five years. Tenant shall exercise an
option in writing not later than nine months prior to the then existing date for
the expiration of the Lease Term. The Base Monthly Rent for the extension period
shall be determined in accordance with paragraph 3.B; provided, however, that if
the Landlord and Tenant cannot agree upon the Base Monthly Rent for any extended
Term  within  the  time permitted for mutual agreement pursuant to paragraph 33,
then  Tenant  may  elect to either rescind its exercise of the renewal option or
proceed  with  an appraisal of the "fair market rental value" of the Premises in
accordance  with  paragraph  3.B.

     3.   RENT:
          ----

          A.     Base Rent:  "Base  Monthly Rent"  shall be payable by Tenant to
                 ---------
Landlord in advance on or about the first day of each month throughout the Lease
Term  as  follows:

               (i)     First  Lease  Year:  The  Base Monthly Rent for the first
                       ------------------
lease year shall be equal to the following:

          First 60 days of Lease Term                  = $ 22,313.72 per month

         Remainder of first lease year                 = $ 69,120.48 per month
         (i.e., until the 1st anniversary of
         the Commencement Date)

               (ii)     Next  Six  Lease Years:  On the first anniversary of the
                        ----------------------
Lease  Commencement  Date  and  on  each  subsequent  anniversary  of  the Lease
Commencement  Date,  through  the  sixth anniversary of the Lease Term, the Base
Monthly  Rent  shall  be adjusted to one hundred four percent (104%) of the Base
Monthly  Rent  in  effect  immediately  prior  to the adjustment. (E.g., for the
second  lease  year  -  $ 71,885.30 (104% of $69,120.48) and for the third lease
year  -  $74,760.71  (104%  of  $  71,885.30).

               (iii)     Additional  Base Monthly Rent:  In addition to the Base
                         -----------------------------
Monthly Rent, commencing on the sixty-first day following the Lease Commencement
Date  and  on  or about the first day of each succeeding month until the seventh
(7th) anniversary of the Commencement Date, Tenant shall also pay to Landlord as
"Additional  Base  Rent"  the sum of Three Thousand Six Hundred Eight and 18/100
Dollars  ($3,608.18)  per  month. Additional Base Rent shall not be adjusted nor
shall  it  be  payable  after  the  seventh  (7th)  annual  anniversary  of  the
Commencement  Date.  Base Monthly Rent and Additional Base Rent are collectively
referred  to  herein  as  "Base  Rent."

                                        3
<PAGE>
          B.     Base  Monthly Rent for Extension Period:  If  the Lease Term is
                 ---------------------------------------
extended  beyond the seventh (7th) anniversary of the Commencement Date, then on
each  "Adjustment Date" and for the five lease year periods thereafter, the Base
Monthly  Rent  payable  for the Premises shall be adjusted to an amount equal to
100%  of "fair market rental value" of the Premises as of the Adjustment Date in
question.  As  used  in  this paragraph "Adjustment Date" shall mean the seventh
(7th)  anniversary  of  the  Commencement  Date  and  every  fifth  subsequent
anniversary  date  of  the  Commencement  Date  (i.e.,  the  12th,  17th,  etc.
anniversary dates of the Commencement Date). "Fair market rental value" shall be
determined  as  of  each  such  Adjustment Date in accordance with the following
procedure:

               (i)     "Fair  market  rental  value"  shall be based on the fair
                        ---------------------------
market  rental  rate  of  premises  in  the vicinity of the Premises (including,
without limitation, such periodic rental adjustments in amounts and at intervals
as  may  be  typical for such comparable leases). Such rent (and any appropriate
periodic  adjustments  thereto)  shall be made to reflect, if and as applicable,
the  following:  (i)  the  fact  that  no  commission  and no tenant improvement
allowance or refurbishing by Landlord will be paid or insured in connection with
the  extension,  (ii)  the  fact that capital improvements may have been made at
Landlord's  expense,  but  may  not  have been fully amortized as a reimbursable
"Landlord Maintenance Expense" and will not, after the recalculation of the Base
Monthly Rent to fair market value rental, continue to be reimbursable by Tenant,
(iii)  the  fact  that the rental rate initially established shall be subject to
any  rental rate adjustments in accordance with the foregoing, and (iv) the then
existing  condition  of  the  Premises  (or,  if  Tenant  has  not fulfilled its
maintenance obligations under this Lease, the condition the Premises would be in
had  Tenant  performed  such  obligations). "Fair market rental value" shall not
include  any  rental  value  for any Alterations (as hereinafter defined) to the
Premises  at  the  expense  of  the  Tenant.

               (ii)     Tenant's  Notice  of  Rental:  Concurrently  with  its
                        ----------------------------
exercise of extension option, Tenant shall deliver to Landlord written notice of
Tenant's  determination of the current fair market rental value of the Premises,
(including  any  appropriate  periodic rental rate adjustments) for the extended
period ("Tenant's Rent Determination"). If Landlord disagrees with Tenant's Rent
Determination,  then  Landlord  shall  notify Tenant on or before the fourteenth
(14th)  day  following  delivery  of Tenant's fair market rental value notice of
Landlord's  determination  of  the fair market rental value of the Premises (and
any  appropriate  periodic rental rate adjustments) for the extended period (the
"Landlord's  Rent  Determination").  If Landlord does not so notify Tenant, then
Tenant's  determination of the current fair market rental value for the Premises
(and any rental rate adjustments for the extended period) shall be determinative
and  binding  on  Landlord  and  Tenant.

               (iii)     Dispute  Resolution:  If  Landlord  disagrees  with
                         -------------------
Tenant's  Rent  Determination  of the current fair market rental value, then the
parties  shall meet and confer for an additional period of fourteen (14) days to
reach agreement. If they are unable to reach agreement within the permitted time
period, then Tenant may elect to rescind its renewal of the Lease by delivery of
a  written  notice  to Landlord within ten (10) days following conclusion of the
14-day  negotiation period, in which case the Lease will terminate in accordance
with  its  terms  at  the  end  of  the  existing Lease Term. If Tenant fails to
exercise  the  election  as  herein  provided by delivery of written notice in a
timely fashion, then "fair market rental value" (and any appropriate adjustments
thereof)  shall  be  determined  by  an  appraisal  conducted  by  real  estate
appraiser(s),  all  of  which  shall  be  licensed  real  estate brokers in good
standing  with  at  least  five (5) years experience appraising comparable space
located  in  the  vicinity  of  the  Premises  in  accordance with the following
procedures:

                                        4
<PAGE>
                    (a)     Tenant  may  demand  an  appraisal by giving written
notice  to  Landlord at anytime after the lapse of the negotiation period, which
demand  to  be  effective must state the name, address, and qualifications of an
appraiser  selected  by  Tenant.  Within  ten  (10)  days following the Tenant's
appraisal  demand,  the  Landlord shall either approve the appraiser selected by
the  Tenant  or  select  a second properly qualified appraiser by giving written
notice  of  name,  address,  and  qualification of said appraiser to Tenant.  If
Landlord  fails  to  select  an  appraiser  within  the ten (10) day period, the
appraiser  selected  by  Tenant  shall be deemed selected by both parties and no
other  appraiser  shall  be  selected.

                    (b)     If  only  one  appraiser is selected, that appraiser
shall  notify  the  parties  in  simple  letter form of its determination of the
current  fair  market  rental  (and any associated adjustments) for the Premises
within  fifteen  (15)  days  following  selection,  which  appraisal  shall  be
conclusively determinative and binding on the parties as the current fair market
rental value for the Premises, unless the appraiser's determination is less than
the  Tenant's  Rent  Determination  or  greater  than  the  Landlord's  Rent
Determination  (in  which  case  the average of the Landlord's or  Tenant's Rent
Determination,  as  the  case  may  be,  shall  be  conclusively  binding on the
parties).

                    (c)     If  each party selects an appraiser, each appraiser,
within  ten  (10) days after being selected, shall make his determination of the
current  fair  market rental for the Premises in simple letter form.  If the two
(2) appraisers agree on the current fair market rental value (and any associated
adjustments),  they  shall  notify  the  parties in writing of such fact and the
agreed value shall be determinative and binding upon the parties. If the two (2)
appraisers  are  unable to agree on the current fair market rental value (or the
adjustments  thereto)  within  twenty (21) days following the appointment of the
second  appraiser, then on or before the fifth (5th) day following delivery of a
written  notice  by  either  party  to  the  appraisers  demanding  agreement or
appointment of a third appraiser, the appraisers shall (i) notify the parties in
writing  of  their  best  opinion  as  to  the fair market rental value (and any
associated  periodic  rental  adjustments)  for  Premises  during  the extension
period,  and  (ii)  the name of a third appraiser. If the two appraisers fail to
select  a  third  qualified  appraiser within such five (5) day period, then the
third  appraiser  shall  be appointed by the then presiding judge of Santa Clara
County,  upon  application  of  either  Landlord or Tenant. Within ten (10) days
following  appointment of the third appraiser, the third appraiser shall provide
it  opinion  of  the  fair  market  rental  value  and  any  associated periodic
adjustments.  The  "fair  market rental value" of the Premises shall be equal to
the average of the three appraisals; provided, that (i) if the third appraiser's
opinion  is  more  than  the  higher  or  less  than  the lower of the other two
appraisals, then it shall be disregarded in calculating the average, and (ii) if
three  appraisals will be considered under the foregoing rule and the highest or
lowest  of  the  three appraisals differs from the middle appraisal by more than
ten  percent (10%) of the middle appraisal, then such materially higher or lower
appraisal(s)  shall  be  disregarded  in  calculating  the  average.

                    (d)     If  only  one appraiser is selected, then each party
shall  pay one-half of the fees and expenses of that appraiser. If more than one
appraiser  is  selected, then each party shall bear the fees and expenses of the
appraiser  it  selects  and  one-half  of  the  fees  and  expenses of any third
appraiser.

          C.     Additional  Rent:  Commencing  on  the  Commencement  Date  and
                 ----------------
continuing  throughout the Lease Term, Tenant shall pay, as additional rent (the
"Additional  Rent"),  (i)  "Taxes"  as  required  by paragraph 7, (ii) insurance
premiums  for  Landlord's  insurance  as  required  by

                                        5
<PAGE>
paragraph  8.B, (iii) "Landlord's Maintenance Expenses" as required by paragraph
12,  and  (ii)  any  other  charges  due  Landlord  pursuant  to  this  Lease.

          D.     Payment of Rent:  All rent shall be paid in lawful money of the
                 ---------------
United  States,  to Landlord at its address for notices as set forth below or at
such  other  place as Landlord may designate from time to time by written notice
to  Tenant. In the event the Commencement Date or Lease expiration date falls on
a  day  other  than the first day or the last day of a month, respectively, then
Base  Rent  for such months shall be prorated based on the actual number of days
of  said  month  in  the  Lease  Term.

          E.     Late Payment Charge:  If any Base Rent is not paid on or before
                 -------------------
the  fifth  (5th)  day  after  the due date thereof or if any other sum due from
Tenant  is  not  paid  within  five  (5) days after Landlord's written notice to
Tenant  that  such  amount  has  not been received when due, Tenant shall pay an
additional  sum  equal  to  three  percent  (3%) of the amount overdue as a late
charge  and,  in  addition thereto shall pay to Landlord interest on the overdue
amount  from  the  date  the payment was due until paid at the annual percentage
rate  of  ten percent (10%) (the "Agreed Interest Rate"). The parties agree that
the  foregoing  sums  represent 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 of Tenant's default with respect to
the  overdue  amount.

     4.   SECURITY  DEPOSIT:
          -----------------

     Tenant  shall pay to Landlord the aggregate sum of $145,196.48 in cash upon
execution  of  this  Lease  as  and  for  a  security deposit to secure Tenant's
performance  of  all  terms  and  conditions  of  this  Lease. Pending waiver by
Landlord  and  Tenant  of  the condition precedent to their performance found in
paragraph  23,  below,  said  sum  shall  be  held by Cornish & Carey Commercial
Brokerage  in  an  interest-bearing  trust account established for such specific
purposes. From and after the date on which Landlord and Tenant shall have waived
the  condition  precedent  to  their  obligations  as set forth in paragraph 23,
Landlord shall take and apply one-half of the aforesaid monies in payment of the
first  rent  due  under  the  terms  of this Lease. The balance of the aforesaid
monies  shall  consist  of  a  security deposit securing performance of Tenant's
obligations  under  this  Lease.  The  amount  held  as  a  deposit shall not be
construed as an advance payment of any rental due and Landlord may commingle the
security  deposit  with  other  funds  of  Landlord.  If Tenant fails to perform
Tenant's  obligations,  Landlord may, but without any obligation to do so, apply
all  or  any  portion  of  the  security  deposit toward fulfillment of Tenant's
unperformed  obligations.  If Landlord does so apply any portion of the security
deposit,  Tenant's  failure  to remit to Landlord a sufficient amount in cash to
restore the security deposit to the original amount within 10 days after receipt
of  Landlord's  written  demand  to  do so shall constitute a default under this
Lease. Within twenty (20) days following the termination of this Lease, Landlord
shall  return  the  security deposit (or so much as has not been applied to cure
Tenant's default in accordance with this paragraph) to Tenant without payment of
interest  until said twentieth (20th) day and with interest on the unpaid amount
thereafter  until  paid  at  the  Agreed  Rate.  If  Landlord sells or otherwise
transfers  Landlord's  rights  or  interests  under  this  Lease, Landlord shall
deliver  the  security  deposit  to the transferee, whereupon, Landlord shall be
released  from  any  further  liability  to  Tenant with respect to the security
deposit.

                                        6
<PAGE>
     5.   USE:
          ---

     Tenant may use the Premises only for technological research and development
and  associated.  administrative  uses  and prototype manufacturing, and for any
other  use  permitted by the laws, rules, regulations, building codes, statutes,
and  orders  of  any  local,  state  or  federal  governmental  authority having
jurisdiction  over  the  Premises  ("Laws")  and  the  Ground  Lease.

     6.   UTILITIES:
          ---------

     Tenant  shall  pay  before  delinquency  all  charges  or  assessments  for
telephone,  water,  sewer,  gas,  heat,  electricity,  garbage  disposal,  trash
disposal  and  all  other utilities and services of any kind that may be used on
the  Premises  throughout  the  Lease  Term.

     7.   TAXES:
          -----

     Subject  to  the  other  provisions  of  this  paragraph, commencing on the
Commencement Date, Tenant shall pay one hundred percent (100%) of all ad valorem
real  property  taxes  and assessments ("Taxes") levied against the Building and
Tenant's  Pro  Rata  Share of the Taxes levied against the Common Area. Landlord
and  Tenant shall pro rate all Taxes the first and last years of the Lease Term.
The  actual  amount  of Taxes payable by Tenant shall be equitably determined by
Landlord in accordance with a mathematical formula which shall take into account
the  proportionate share which the RSF of the Building leased by Tenant bears to
the  total  amount  of RSF within the Building and in the 3460 Hillview Building
upon  which,  in turn, the Taxes are based. Tenant shall pay 1/12th of its share
of  Taxes  for  each  year  on  a  monthly  basis  (with an appropriate year-end
reconciliation)  in  accordance  with the procedure described in paragraph 12.A,
below.  Notwithstanding  the  foregoing,  Tenant's  responsibility  to reimburse
Landlord  for  Taxes  as  hereinabove  described  shall  be  limited as follows:

          (1)     If  and  to  the extent the Tax is increased due solely to the
sale  or  conveyance  by  Landlord  or  any  other  "change or ownership" of the
Property,  or any portion thereof or interest therein (collectively a "Change of
Ownership"),  Tenant's  obligation  to  reimburse  Landlord  for  Taxes  for the
thirty-six  months  immediately  succeeding  the  Change  of Ownership shall not
exceed  (i) the Taxes that would have been payable by Tenant for such period had
the  Change  of  Ownership  not  occurred,  plus  (ii)  the  following:

          For  the  12-month  period  immediately  succeeding  the  Change  of
          Ownership,  twenty-five  percent  (25%) of the Taxes which are payable
          only  as  a consequence of the Change of Ownership Taxes for the first
          12  months  succeeding  the  Change  of  Ownership;

          For  the 13th through months succeeding the Change of Ownership, fifty
          percent  (50%)  of  the Taxes, which are payable for 13th through 24th
          months succeeding the Change of Ownership only as a consequence of the
          Change  of  Ownership;

          For  the  25th through 36th months succeeding the Change of Ownership,
          seventy-five  percent  (75%)  of  the Taxes, which are payable for the
          25th  through  36th  months  succeeding  the  Ownership  only  as  a
          consequence  of  the  Change  of  Ownership.

                                        7
<PAGE>
          (2)     If any assessment is levied against the Property, Landlord may
elect  to  either  pay  the  assessment in fall or allow the assessment to go to
bond. If Landlord pays the assessment in full, Tenant shall pay to Landlord each
time payment of Taxes is made, a sum equal to that which would have been payable
(as  both  principal  and interest) had Landlord allowed the assessment to go to
bond.

          (3)     No  Tax  reasonably attributable to the 3460 Hillview Building
shall  be  included  in  Taxes  (unless  or  until Tenant leases said building).

          (4)     "Taxes" shall not include any transfer, inheritance, franchise
or  net  income  tax.

          (5)     In the event that Tenant shall desire in good faith to contest
or  otherwise  review by appropriate legal or administrative proceeding any Tax,
Tenant  may  withhold  payment  of  the  Tax  being  contested  if nonpayment is
permitted during the pendency of such proceedings without the foreclosure of any
or  the  imposition  of  any fine or penalty. At the request of Tenant, Landlord
shall cooperate with Tenant in any contest or other proceedings which Tenant may
desire to bring pursuant to this paragraph. Within ten (10) days after the final
determination  of  the amount due from Tenant with respect to the Tax contested,
Tenant  shall  pay  the amount so determined to be due, together with all costs,
expenses  and  interest,  whether  or  not this Lease shall have then expired or
terminated.

     Landlord  shall be solely responsible for payment of the balance of any Tax
allocable  to  the  Property.

     8.   INSURANCE:
          ---------

          A.     Liability  Insurance:  Tenant  agrees  at  all times during the
                 --------------------
Lease Term (including any extension of the Term hereof) to maintain in force and
effect  at  its  sole cost and expense comprehensive public liability insurance,
from  a  responsible  insurance  company authorized to do business in California
with  a combined single limit of not less than $2,000,000 for injury or death to
any  person  or  damage  to property and $3,000,000 excess umbrella coverage for
injury  or  death or property damage for any claims, demands or causes of action
of  any  person  arising  out  of accidents occurring on the Premises during the
Lease  Term  or  arising  out of Tenant's use of the Premises. Landlord shall be
named  as  an  additional  insured  on  said  policy.

          B.     Building  Casualty  Insurance:  At  all  times  Landlord  shall
                 -----------------------------
maintain  full  replacement cost, fire and property damage insurance in extended
coverage,  "all  risk"  form  (including coverage for malicious mischief, flood,
inflation,  sprinkler leakage and boiler and machinery coverage endorsements (if
applicable),  and earthquake coverage), against loss from physical damage to the
Premises, including the Building, the Landlord's Work (but excluding any Initial
Improvements  which  are  Tenant's  Property) and the Common Area. The insurance
policy  or  policies  shall name Landlord and Tenant as named insureds and shall
include  a  lender  loss  payable  endorsement  in  favor  of Landlord's lender,
provided,  however,  Landlord's lender shall agree that so long as this Lease is
not  terminated  as  a  consequence of a casualty, the proceeds of the insurance
shall be used to restore the Building as may be required by paragraph 14, below.

                                        8
<PAGE>
     Landlord shall also maintain policies of insurance against rental abatement
covering  all Base Rent and Additional Rent payable with respect to the Building
in  the  case  of  a  casualty  to be insured against under this paragraph for a
12-month  period.

     Tenant  shall  pay  its  share  of  the  annual  premiums for the foregoing
Landlord's  insurance  on  a  monthly  basis  (with  an  appropriate  year-end
reconciliation)  in  accordance  with the procedure described in paragraph 12.A,
below; provided, however that Tenant shall not be required to reimburse Landlord
for  any  premium  for  insurance (i) allocable to insurance carried by Landlord
prior to the Commencement Date of this Lease, or (ii) for any earthquake premium
which  is not commercially reasonable given the amount of coverage obtained. The
deductible  for  Landlord's  insurance shall be determined by Landlord, shall be
commercially  reasonable taking into account both the size of the deductible and
the  resulting  premium  for the policy, and shall be subject to the approval of
the  Tenant,  which  approval  shall  not  be  unreasonably  withheld.

          C.     Tenant's  Other  Insurance:  Tenant shall separately insure its
                 --------------------------
Alterations  and  other  Tenant's  Property  located on or in the Building in an
amount  equal  to at least 90% of the full amount of the replacement cost of the
same,  which  may  from  time  to  time  increase  as  a  result of inflation or
otherwise. Tenant shall additionally maintain workers' compensation insurance at
statutory  limits.

          D.     Release and Waiver of Subrogation:  Notwithstanding anything to
                 ---------------------------------
the  contrary  in  the  Lease,  parties  hereto  release  each  other, and their
respective  employees,  agents,  contractors, officers, shareholders, directors,
successors,  (sub)tenants  and  assigns (herein collectively "Agents"), from any
liability  for  injury to any person or damage to property that arises out of or
incident  to  any  peril actually covered by insurance carried by the parties or
out a peril of the type to be covered by the insurance required to be carried by
either  the Landlord or the Tenant under the terms of this Lease, whether due to
the  negligence  of  Landlord or Tenant or their respective Agents, or any other
cause.  Each  party  shall cause each insurance policy obtained by it to provide
that  the insurer waives all right of recovery by way of subrogation against the
other  party  and  its Agents in connection with any injury or damage covered by
such  policy.

     9.   COMMON  AREA:
          ------------

     Landlord shall repair, maintain and operate the Common Area, provided, that
in exercising any such rights regarding the Common Area, Landlord shall take all
reasonable  steps  to  minimize  any  disruption  to Tenant's business. Tenant's
obligation  to  reimburse  Landlord  for the cost incurred by the Landlord to so
repair,  maintain  and  operate  the  Common  Area is set forth in paragraph 12,
below.

     10.  CONDITION  OF  PREMISES  AT  LEASE  COMMENCEMENT:
          ------------------------------------------------

     Tenant  shall  have  the  right  to  conduct  a  complete inspection of the
Premises  until August 31, 1995. Landlord represents to Tenant that the Building
and  Property are in good order, repair and condition, comply with the Americans
With  Disabilities Act (ADA) and are seismically sound, save and except only the
work  to  be  completed by Landlord prior to the Commencement Date in accordance
with  the  following:

                                        9
<PAGE>
          A.     HVAC:  The  existing  HVAC  system  for  the  Building has been
                 ----
inspected  and  is presently in good operating condition. A correct and complete
copy  of  the  inspection has been delivered to Tenant prior to the execution of
this  Lease.  Nonetheless,  the  units themselves are not new and replacement of
the  existing  HVAC  units may be necessary during the Lease Term. If and to the
extent  that  it  is  determined  by  at  least  two  independent  licensed HVAC
contractors  that  one or more HVAC units presently in place require replacement
or  will  require  replacement  within six months after the Commencement Date of
this  Lease, then Landlord, at its cost and expense, shall promptly replace said
unit(s).  Should  the  replacement  be required after the 6th month of the Lease
Term,  then throughout the remainder of the then existing Lease Term, commencing
on  the  first  day  of  the  month immediately succeeding the completion of the
replacement,  Tenant  shall  reimburse Landlord for its share of the cost of the
replacement  as  a  "Landlord's  Maintenance  Expense" in an amount equal to the
monthly  amortized  amount  of  the  replacement unit, based on its useful life.
Tenant's  duty  to reimburse Landlord for such amortized cost shall cease on the
earlier of the expiration of the Lease or the date Base Monthly Rent is reset to
the  fair  market  rental  value  of  the Premises. The monthly amortized amount
payable  by Tenant shall be pro rated for any partial month, based on the actual
number  of  days  in  the  month  within  the  Lease  Term.

          B.     Parking  Area Resealing and Restripping:  As part of Landlord's
                 ---------------------------------------
Work  under  the  Improvement  Agreement  and  at  its  sole  cost  and  without
reimbursement  by Tenant or reduction in the Allowance for Initial Improvements,
Landlord,  at  Landlord's sole cost and without reimbursement from Tenant, shall
reseal and restripe all of the parking areas in the Common Area. Such work shall
be  performed  by  Landlord  prior  to  the  Commencement  Date  of  this Lease.

          C.     Americans  With  Disabilities  Act:  As part of Landlord's Work
                 ----------------------------------
under  the  Improvement Agreement, at its sole cost and without reimbursement by
Tenant  or  reduction  in  the  Allowance for Initial Improvements, prior to the
Commencement  Date  of  the  Lease,  Landlord shall make all improvements to the
Common Area and the exterior of the Building which are required by the Americans
for  Disabilities  Act  (ADA),  including  without limitation those improvements
described  on  attached  Exhibit C, in accordance with plans approved by Tenant,
                         ---------
which  approval  shall  not  be  unreasonably  withheld  on  delayed.

          D.     Refurbishment:  As  part  of  "Landlord's  Work"  under  the
                 -------------
Improvement  Agreement,  at its sole cost and without reimbursement by Tenant or
reduction  in the Allowance for Initial Improvements, Landlord shall also repair
and  replace (to good condition) those items described on attached Exhibit D, in
                                                                   ---------
accordance  with  plans  approved  by  Tenant,  which  approval  shall  not  be
unreasonably  withheld  or  delayed.  Notwithstanding the foregoing, the parties
agree that the following shall apply to the Construction Cost (as defined in the
Improvement  Agreement)  which  Landlord  incurs  to  replace  the  bathrooms:

               (i)     If  the Construction Cost for the Initial Improvements to
the  entire Premises is less than the Allowance, then the Landlord may apply the
unused  portion  of  the  Allowance  to  the  Construction Cost for the bathroom
reconstruction.

               (ii)     If  the  unused  portion of the Allowance does not repay
all  of  the  Construction  Cost  incurred  by  Landlord  for  the  bathroom
reconstruction,  then  Tenant  shall

                                       10
<PAGE>
pay  the  first $13,000 of such Construction Cost and the Landlord shall pay the
remainder,  if  any.

               (iii)     If  the  unused  portion  of  the  Allowance  plus  the
Tenant's  contribution  pursuant to subpart (ii) above does not repay all of the
Construction  Cost incurred by Landlord for the bathroom reconstruction, then on
the Commencement Date of the Lease, Tenant shall advance to Landlord 50% of such
shortfall.  The  amount so advanced by Tenant shall be reimbursed by Landlord to
Tenant, without interest, in twelve equal monthly installments payable to Tenant
commencing  on  the  first  day  of  the  third full month of the Lease Term and
continuing  on  the  first  day  of  the  eleven  calendar months thereafter. To
facilitate the payments between the parties, the amount of such reimbursement by
Tenant  may  be offset against the Base Rent payable by Tenant under this Lease.

     11.  REPAIRS  AND  MAINTENANCE:
          -------------------------

          A.     By  Landlord:  Subject  to  Tenant's  reimbursement obligations
                 ------------
under  paragraph  12  and  Tenant's obligations under paragraph 10, at all times
during the Lease Term, Landlord shall maintain and repair the exterior glass and
walls,  the foundation, bearing walls, elevators and elevator shafts, stairs and
stairwells,  and  the  roof of the Building, the plumbing, heating, fire safety,
water, sewer, and electrical systems serving or located within the Building, and
the  Common  Area  (including, without limitation, the landscaping in and around
Building  and  the-3460  Hillview  Building and, the parking areas of the Common
Area)  all  in  a  condition  and  repair  consistent  with  the normal level of
maintenance  of  the  other  buildings in the Stanford Industrial Park. The roof
membrane shall at all time be watertight. Landlord shall execute and maintain in
force  a  service contract with a roof inspection and an authorized HVAC service
company  mutually  acceptable  to Tenant and Landlord. Except as provided in the
last sentence of paragraph 11.B, Landlord shall promptly comply with any present
or  future  law  requiring  improvement  or repair to the Premises. Tenant shall
provide Landlord with written notice of the need for repairs or maintenance that
is  the  obligation  of  Landlord  hereunder, within a reasonable time of Tenant
becoming  aware  of the need for repairs. Except as expressly provided herein to
the  contrary,  there shall be no abatement of rent, except to the extent Tenant
cannot reasonably use the Premises for its intended purpose, as a result of such
repairs  or  maintenance  or  as a result of the Landlord's failure to make such
repairs.

          B.     By  Tenant:  Except  as  otherwise  provided in the improvement
                 ----------
Agreement  and  in  paragraphs  10, 11.A, 14, 15, and 18 hereof to the contrary,
Tenant,  its sole expense, shall maintain the Building in the condition existing
on  the  Commencement  Date (or on the date the Early Entry Work is Completed in
the  case of the Early Entry Space), excepting only ordinary wear and tear, acts
of  God,  condemnation,  and  Hazardous  Materials not released, disposed of, or
emitted on or about the Premises by Tenant or its Agents. At Tenant's sole cost,
Tenant  shall  also  promptly  and  properly  observe  and  comply with all Laws
requiring  modifications  or  repairs to the Premises, if such modifications and
repairs  are  required as a consequence of the specific nature of the use of the
Premises  by  Tenant  and are not generally required for comparable buildings in
the  vicinity.

          C.     Reserve:  Landlord  shall  establish  a reserve for the repairs
                 -------
and  replacements  (both  routine and extraordinary) to the roof membrane of the
Building,  the  parking  areas  and paving in the Common Area and for compliance
with  any Laws applicable to the Buildings in the amount of Five

                                       11
<PAGE>
Hundred  dollars  ($500)  per  month.  Tenant  shall  pay said reserve amount to
Landlord,  together  with the Base Rent or the first day of each calendar month.

     12.  REIMBURSEMENT  OF  LANDLORD'S  EXPENSES:
          --------------------------------------

     As  additional  rent, Tenant shall reimburse Landlord for Tenant's Share of
the  costs  and  expenses reasonably incurred by Landlord after the Commencement
Date  to  discharge  its repair and obligations under this Lease with respect to
the  Common  Area  (see  paragraph  9)  and  with  respect  to the Building (see
paragraph  11)  (collectively  referred  to  herein  as  "Landlord's Maintenance
Expenses").  Tenant  shall pay such share of Landlord's Maintenance Expenses, as
well  as,  Tenant's  share  of  Taxes  and  insurance  premiums,  as  follows:

          A.     As  additional  rent,  Tenant shall pay the estimated amount of
Taxes  reimbursable  to Landlord pursuant to paragraph 7, the insurance premiums
reimbursable  to  Landlord  pursuant  to paragraph 8, and Tenant's Proportionate
Share of Landlord's Maintenance Expenses in monthly installments as estimated by
Landlord.  Prior  to  the  Commencement Date and on or before January 31 of each
calendar year Landlord shall deliver to Tenant Landlord's reasonable estimate of
the  amount  of  such  reimbursable expenses that it anticipates will be paid or
incurred  for  each  calendar year of the Lease Term, During such calendar year,
Tenant  shall  pay  such  estimates  in  monthly  installments concurrently with
payment  of the installments of Base Rent. At the end of each calendar year, the
estimated  amount shall be reconciled with the actual amount required to be paid
by  Tenant.  On or before January 31 of each year, Landlord shall provide Tenant
with  a  statement  of  the  actual amount of such reimbursable expenses for the
preceding  calendar  year  and  Tenant's  share of such expenses. Within 30 days
following  the date such statement is delivered to Tenant, Landlord shall refund
to  Tenant  all  excess  payments  or  Tenant  shall  pay to Landlord the entire
deficiency.

          B.     In the case of Landlord's Maintenance Expenses, at its election
Landlord  may  also  demand  that  Tenant  pay,  as  additional  rent,  Tenant's
Proportionate Share of any actual Landlord's Maintenance Expense not theretofore
billed  to Tenant nor included in the estimated amount of Landlord's Maintenance
Expenses for the calendar year in question. Such payments will be made by Tenant
thirty  (30)  days  after  receipt  by  Tenant  of  a written bill therefor from
Landlord,  provided,  however,  that  all  such  billings shall be made not more
frequently  than  once  per  month.

As used in this paragraph "Tenant's Share" of Landlord's Maintenance Expenses is
(i)  100% of the Landlord's Maintenance Expenses incurred solely with respect to
the Building, and (ii) 55% of the Landlord's Maintenance Expenses for the Common
Area  (unless  the  RSF  of  the  Building  or  of the 3460 Hillview Building is
reduced,  in  which  case  the  Tenant's Proportionate Share of Common Operating
Expenses  shall  be recalculated to equal the percentage derived by dividing the
RSF  of  the  Building  and  the  RSF of both the Building and the 3460 Hillview
Building).

     Notwithstanding  anything  to the contrary in this Lease, in no event shall
"Landlord's  Maintenance Expenses" include, nor shall Tenant have any obligation
to  perform or to pay directly, or to reimburse Landlord for, all or any portion
of  the  following  repairs,

                                       12
<PAGE>
maintenance,  improvements,  replacements,  claims, losses, fees, charges, costs
and  expenses (collectively, "Costs"), nor shall any portion of the Allowance be
used  for  any  of  the  following  Costs:

          (1)     Certain  Maintenance  Costs:  Costs  to  repair,  replace  or
                  ---------------------------
improve  the  roof  covering,  the  parking  areas  of  the Property, and/or the
Building structure, including the foundation, exterior walls, bearing walls, and
roof structure and, except to the extent expressly made the obligation of Tenant
under  the  last  sentence of paragraph 11.B, Costs incurred to make any repair,
replacement  or  improvement  required  to  comply  with  any Law respecting the
condition  of  the  Premises.

          (2)     Base  Building  Deficiency:  Costs  incurred  to discharge the
                  --------------------------
Landlord's  obligations  to  repair  and  refurbish  the  Building  pursuant  to
paragraph  10,  to correct any construction defect in the Building or the Common
Area,  or  to  correct  any failure of the Building or the Common Area to comply
with  applicable  Law,  land use restrictions or underwriters' requirement as of
Effective  Date  of  this  Lease.

          (3)     Caused  by  Others:  Costs  occasioned by the act, omission or
                  ------------------
violation  of  Law  by  Landlord, any occupant of the 3460 Hillview Building, or
their  respective  Agents.

          (4)     Casualties  and Condemnations:  Costs occasioned by fire, acts
                  -----------------------------
of  God,  or other casualties or by the exercise of the power of eminent domain.

          (5)     Capital  Improvements:  Subject to paragraph 10.A, Costs which
                  ---------------------
are  properly capitalized under generally accepted accounting principles, except
to  the  extent  that  (i)  Landlord's Maintenance Expenses otherwise payable by
Tenant  under  the  Lease are reduced and (ii) Tenant's share of such Landlord's
Maintenance  Expense is based upon an equitable amortization of the cost of such
item  over  its useful life.     Costs for amortization of a capital improvement
or  repair performed prior to the resetting of Monthly Base Rent to "fair market
value"  after  the  Base  Monthly  Rent  is  so  reset.

          (6)     Reimbursable  Expenses:  Costs  for which Landlord has a right
                  ----------------------
of  reimbursement  from  others.

          (7)     Depreciation  &  Reserves:  Depreciation and amortization and,
                  -------------------------
except  to  the  extent  provided  in  paragraph  11  .C, any reserve for Costs.

          (8)     Landlord's  Financing:  Interest, charges and fees incurred on
                  ---------------------
debt to finance the Landlord's Maintenance Expense or Landlord's Work, including
without  limitation,  payments  on obligations secured by mortgages and deeds of
trust  and  rent  and  other  payments  under  ground  leases.

          (9)     Hazardous  Materials:  Except  to  the  extent  caused  by the
                  --------------------
release,  emission,  or disposal of the Hazardous Material in question by Tenant
or its Agents on or about the Premises, Costs to investigate the presence of any
Hazardous  Material  (defined  below),  to  respond  to  any  claim of Hazardous
Material  contamination  or  damage,  to  remove any Hazardous Material from the
Property.

          (10)     Management:  Wages,  salaries, compensation, and labor burden
                   ----------
for  any  employee  of Landlord or its Agents not stationed on the Property on a
full-time  basis  or any fee, profit or compensation retained by Landlord or its
Agents  for  management  and

                                       13
<PAGE>
administration  of  the  Property in excess of the management fee which would be
charged  by  a  professional  management  service  for  operation  of comparable
projects in the vicinity; provided however, that the parties agree that Landlord
shall  use  its  best efforts to obtain a reputable management company to manage
the  Property  at  a  fee  not  exceeding  3%  of  the  Base  Monthly  Rent.

          (11)     Duplication:  Costs  for  which  Tenant  reimburses  Landlord
                   -----------
directly  or  which  Tenant  pays  directly  to  a  third  person.

     13.  ALTERATIONS:
          -----------

     Tenant  shall  have  the right to make improvements, additions, alterations
and modifications to the Premises ("Alteration") from and after the Commencement
Date  of  this  Lease  with  the consent of Landlord, which consent shall not be
unreasonably  withheld  and  shall be deemed given if not reasonably withheld by
Landlord  in  a  writing  delivered  to  Tenant  within  fifteen (15) days after
delivery  to  Landlord  of  Tenant's  request  for  Landlord's consent; provided
however,  that  Tenant shall not be required to obtain Landlord's consent to any
Alteration  does  not  affect  structure of the Building and costs Five Thousand
Dollars  ($5,000)  or  less.  All Alterations shall be constructed in accordance
with  applicable  Laws  and  at  Tenant's own expense. Subject to paragraph 8.D,
Tenant  will  indemnify  and  defend  Landlord from all liens, claims or damages
caused  by Tenant's construction of Alterations to the Premises. All Alterations
shall  remain  the  property  of Tenant during the Lease Term and may be removed
from  the  Premises  at  any time. Landlord shall have no lien or other interest
whatsoever  in  any  such  Alteration  or  on  any  equipment, trade fixtures or
personal  property installed in the Premises by Tenant at its cost (collectively
"Tenant's  Property");  and  within ten (10) days following receipt of a written
request,  Landlord  shall  execute documents in reasonable form to evidence such
waiver  by  Landlord  of  any  right,  title,  fine, or interest in the Tenant's
Property  located  in  the  Premises.  Tenant  shall  restore  all damage to the
Premises  caused  by  any  removal  of  Tenant's  Property. Within ten (10) days
following  a request by Tenant, Landlord shall inform Tenant whether it reserves
the  right  to  any  Alteration installed by Tenant removed from the Premises by
Tenant  upon  termination  of  the  Lease.

     14.  DAMAGE  &  DESTRUCTION:
          ----------------------

          A.     Landlord's  Duty  to Restore:  If the Premises, the Building or
                 ----------------------------
the  Common  Area  is  damaged  by any peril, Landlord shall restore the same to
substantially  the  same  condition  existing  immediately prior to such damage,
unless  the Lease is terminated by Landlord or Tenant pursuant to this paragraph
14.  If  the  Lease is not terminated, all insurance proceeds available from the
fire  and  property  damage  insurance  to  be  carried  by Landlord pursuant to
paragraph  8  shall  be  paid  to an independent depository and disbursed as the
restoration  work  progresses  in  accordance  with the customary procedures for
disbursement  of  construction  loan  proceeds.  If  this Lease is terminated by
Landlord  or  Tenant  pursuant to this paragraph 14, then all insurance proceeds
available  from  insurance  carried  by  Landlord  shall  be  paid  to Landlord.

          B.     Landlord's  Right to Terminate:  Landlord shall have the option
                 ------------------------------
to  terminate  this Lease in the event any of the following occurs, which option
may  be  exercised only by delivery

                                       14
<PAGE>
to  Tenant  of a written notice of election to terminate within thirty (30) days
after  the  date  of  such  damage:

               (i)     The  Building  is  damaged  by  any  peril  both  (i) not
required  to  be  covered by the type of insurance Landlord is required to carry
pursuant  to paragraph 8, and (ii) not actually covered by valid and collectible
insurance  carried  by  Landlord  and  in  force  at  the time of such damage or
destruction,  to  such an extent that the estimated cost to restore the Building
exceeds  ten  percent  (10%)  of  the  then  actual replacement cost thereof; or

               (ii)     The  Premises  are  damaged by any peril during the last
twelve  (12) months of the Lease Term and the restoration of the Premises cannot
be substantially completed within sixty (60) days after the date of such damage;
provided,  however,  that Landlord may not terminate this Lease pursuant to this
subparagraph  if Tenant, at the time of such damage, exercises any option Tenant
may  then have to extend the term of this Lease and Tenant exercises such option
to  so  further  extend  the  Lease  Term  within thirty (30) days following the
delivery  to  Tenant  of  Landlord's  written  termination  notice.

     C.     Tenants  Right  to Abatement and Termination:  If all or any portion
            --------------------------------------------
of  the  Premises, the Building, or the Common Area should become unsuitable for
Tenant's  intended  use  (a)  as  a  consequence of fire, casualty, or any other
peril,  (b) for a period exceeding seven (7) days in any thirty-day period, as a
consequence  of  cessation  of  the  availability  of  utilities,  or  (c)  as a
consequence  of  the presence of any Hazardous Material not released, emitted or
disposed  of on or about the Premises by Tenant or its Agents, then Tenant shall
be  entitled  to an equitable abatement of all Base Rent and any Additional Rent
payable  hereunder  to  the  extent of the interference with Tenant's use of the
Premises occasioned thereby and, if such interference cannot be corrected or the
damage  resulting  therefrom  repaired  so  that the Premises will be reasonably
suitable for Tenant's intended use within one hundred eight (180) days following
the  occurrence  of  such event, then Tenant also shall be entitled to terminate
this  Lease  by  delivery  of  written  notice  of  termination  to  Landlord.

     15.     CONDEMNATION:
             ------------

          A.     Taking  of Premises:  If all or any part of the Premises or the
                 -------------------
Common  Area is taken by means of (i) any taking by the exercise of the power of
eminent domain, whether by legal proceedings or otherwise, (ii) a voluntary sale
or  transfer  by Landlord to any condemnor under threat of condemnation or while
legal  proceedings  for condemnation are pending, or (iii) any taking by inverse
condemnation  (a "Condemnation"), and the Premises and the Common Area cannot be
reconstructed  within  a  reasonable  period of time and thereby made reasonably
suitable for Tenant's continued occupancy for Tenant's intended use, then Tenant
shall have the option of terminating this Lease. Any such option to terminate by
Tenant  must  be  exercised  within  a  reasonable  period  of time, and will be
effective  as  of  the  date  that  possession  of  the Premises is taken by the
condemnor.

          B.     Restoration  Following the Taking:  If any part of the Premises
                 ---------------------------------
or  the  Common  Area is taken by Condemnation and this Lease is not terminated,
then  Landlord  shall  make  all  repairs  and  alterations  that are reasonably
necessary  to  make  that  which  is  not  taken  a  complete architectural unit
reasonably  suitable for Tenant's occupancy for Tenant's intended

                                       15
<PAGE>
use;  provided,  that  Landlord  shall  not  be required to expend more for such
restoration  than the amount of the condemnation award received by Landlord with
respect  to  the  Condemnation.

          C.     Abatement  of  Rent:  Except in the case of a temporary taking,
if  any  portion  of the Premises is taken by Condemnation and this Lease is not
terminated,  then  as  of  the  date  possession  is  taken,  the  Base Rent and
Additional Rent shall be equitably reduced in proportion to the reduction in the
fair  market  rental value of the Premises as a consequence of the Condemnation.

          D.     Division  of  Condemnation  Award:  Tenant shall be entitled to
                 ---------------------------------
receive  a separate award for the Condemnation of Tenant's Property and Tenant's
moving  costs,  severance  damages, and lost goodwill. All other proceeds of the
Condemnation  award  shall  be  the  sole  property  of  Landlord.

     16.  SIGNAGE:
          -------

     Tenant shall have the right to install its signage on any monument signs in
the  Common  Area  in  the  manner  and  at the location on the sign selected by
Tenant, and to erect all other signs permitted by applicable Laws and the Ground
Lease.

     17.  ASSIGNMENT  AND  SUBLETTING:
          ---------------------------

          A.     Requirement  for Landlord's Consent:  Tenant shall not sublease
                 -----------------------------------
the  Premises  or  any  portion thereof without the written consent of Landlord,
which  consent  shall  not  be  unreasonably  withheld or delayed. If Landlord's
consent  is not reasonably withheld by delivery of a written notice to Tenant of
Landlord's  disapproval and the reasons therefore within ten (10) days following
delivery  of a request for consent to Landlord, then Landlord's consent shall be
deemed  given. Consent by Landlord to one or more assignments or encumbrances of
this  Lease or to one or more sublettings of the Premises be shall not deemed to
be  a  consent  to  any  subsequent  assignment,  encumbrance,  or  subletting.

          B.     Permitted Transfers:  Notwithstanding the foregoing, Tenant may
                 -------------------
assign  this Lease or sublet all or a portion of the Premises without Landlord's
to  (i) a subsidiary, affiliate, division or corporation controlling, controlled
by  or under common control with Tenant; (ii) a successor corporation related to
Tenant  by  merger,  consolidation,  nonbankruptcy reorganization, or government
action provided the net worth of the successor Tenant shall not be less than the
net  worth  of  the  Tenant  immediately  prior  to  the transaction; or (iii) a
purchaser  of  substantially  all  of  Tenant's  assets located in the Premises,
provided  the  net worth of the purchasing Tenant shall not be less than the net
worth  of  the  selling Tenant immediately prior to the sale. For the purpose of
this Lease, sale of Tenant's capital stock through any public exchange shall not
be  deemed  an assignment, subletting, or any other transfer of the Lease or the
Premises.

          C.     Sharing  of Subletting Profit:  Fifty percent (50%) of any "net
                 -----------------------------
subletting  proceeds"  actually  received  by  Tenant  under  any  sublease  or
assignment (other than a sublease or assignment qualifying under subparagraph B,
above)  shall  be  paid  by  Tenant to Landlord. Tenant's obligation to pay such
consideration  shall  constitute an obligation for additional rent hereunder. As
used  in  this  subparagraph "net subletting proceeds" means the rental actually
received  by  Tenant  in

                                       16
<PAGE>
excess  of  (a) the rent payable hereunder, plus (b) the unamortized cost of any
Initial  Tenant  Improvements denominated as "Tenant's Property" pursuant to the
Improvement  Agreement,  plus  (c)  the  unamortized  cost  of  any  Alterations
installed at Tenant's expense, plus (d) subletting and assignment costs incurred
by  Tenant  in  connection  with  the assignment or sublease (including, without
limitation,  attorneys' fees, brokerage commissions, and remodeling costs), plus
(e)  any vacancy costs incurred by Tenant; and plus (f) any other costs incurred
by  Tenant  to  perform  its  obligations  under  the  assignment  or  sublease.

     18.  HAZARDOUS  SUBSTANCES:
          ---------------------

          A.     Definitions:  As  used  in  this  paragraph the following terms
                 -----------
shall  have  the  following  meanings:

               (i)     "Hazardous  Materials"  means  all  of  those  materials
identified  as  such  by and under State and Federal statutes, laws, ordinances,
rules,  regulations or orders as hazardous, toxic, extremely hazardous, acutely,
hazardous  or  otherwise  harmful to human health or the environment, including,
without  limitation  petroleum,  asbestos,  radon,  and  radioactive  materials.

               (ii)     "Environmental  Laws"  shall  mean  all local, state, or
federal  laws, statutes, ordinances, rules, regulations, judgments, injunctions,
stipulations, decrees, orders, permits, approvals, treaties, or protocols now or
hereafter  enacted,  issued  or  promulgated by any governmental authority which
relate  to  any  Hazardous  Material  or  to  the use, handling, transportation,
production,  disposal, discharge, release, emission, sale, or storage of, or the
exposure  of  any  person  to,  a  Hazardous  Material.

          B.     Tenant's Hazardous Materials Activities:  Tenant shall strictly
                 ---------------------------------------
comply  with all Environmental Laws governing Tenant's use, generation, storage,
transfer or disposal of Hazardous Materials on or about the Premises. Within the
time  permitted by applicable Environmental Law, Tenant, at its sole cost, shall
perform  or  cause  to  be  performed,  any  investigation, remediation, removal
action,  and  detoxification  of the Premises required by Environmental Law as a
consequence  of any release of a Hazardous Material by Tenant or its Agents into
the  soil,  groundwater,  surface water or building materials of the Premises in
violation  of  any  Environmental  Law  ("Tenant's  Contamination").

          C.     Hazardous  Material  Indemnity  by  Tenant:  Subject  to
                 ------------------------------------------
subparagraphs 18.D through F, below, Tenant shall indemnify, defend with counsel
reasonably  acceptable  to Landlord, protect, and hold harmless Landlord and its
heirs,  executors,  successors  and  assigns  (collectively  the  "Landlord
Indemnitees")  from  and  against  all  claims,  actions,  suits,  proceedings,
judgments, losses, costs, personal injuries, damages, liabilities, deficiencies,
fines,  penalties,  damages, attorneys' fees, consultants' fees, investigations,
detoxifications,  remediations,  removals, and expenses of every type and nature
("claims"),  to  the  extent  caused  by (i) Tenant's Contamination, or (ii) the
violation  of  any Environmental Law applicable to the storage, use, disposal or
release  of  a  Hazardous  Material  by  Tenant  or  its  Agents.

          D.     Landlord's  Representations:  Landlord  represents and warrants
                 ---------------------------
that  to  its  knowledge:

               (i)     No Hazardous Materials have been used, generated, stored,
transferred  or disposed of on the Property during its ownership and no previous
owner  or

                                       17
<PAGE>
occupant  has  used, generated, stored, transferred or disposed of any Hazardous
Materials  on  the  Property;

               (ii)     No  Hazardous  Material  is  present  in  the  soil,
groundwater,  ambient  air  or  building  materials  of  the  Premises;  and

               (iii)     Landlord  does  not  have  any  environmental  reports,
investigations  and  assessment  of  the  Property in its possession or control.

          E.     Landlord  Covenant  to  Comply with Environmental Laws:  Within
                 ------------------------------------------------------
the  time permitted by applicable Environmental Law, Landlord, at its sole cost,
shall  perform or cause to be performed, any investigation, remediation, removal
action, detoxification of the Premises or Project required by consequence of any
Hazardous  Material  present at any time on or about the soil, air, groundwater,
surface  water or building materials of the Premises or the Property (other than
Tenant's  Contamination).

          F.     Landlord's  Indemnity:  Landlord  shall  indemnify, defend with
                 ---------------------
counsel  reasonably acceptable to Tenant, protect, and hold harmless Tenant, its
employees,  stockholders,  officers,  directors,  successors,  subtenants,  and
assigns  (collectively  the "Tenant Indemnitees") from and against all Claims to
the  extent  arising out of (i) any Hazardous Material present in the soil, air,
groundwater, surface water or building materials of the Property or the Premises
(other than Tenant's Contamination), or (ii) the violation of any Law applicable
to  the storage, use, disposal or release of a Hazardous Material by Landlord or
its  Agents.

          G.     Waivers:  Notwithstanding  anything  to  the  contrary  in this
                 -------
Lease;  to  the extent arising out of Tenant's Contamination, (i) Landlord shall
have  no  liability or responsibility in any way for, (ii) Landlord shall not be
required  to  reimburse Tenant with respect to, and (iii) Tenant (for itself and
its  successors  and  assigns)  hereby waives and releases all Claims (including
without  limitation, Claims arising under CERCLA, RCRA, the California Hazardous
Material  Substance Account Act, and the California Hazardous Waste Control Law)
against  Landlord  and  the other Landlord Indemnitees with respect to, Tenant's
Contamination.  Notwithstanding  anything  to  the contrary in this Lease Tenant
shall  have  no  liability or responsibility in any way for, Tenant shall not be
required to reimburse Landlord with respect to, and Landlord (for itself and its
successors and assigns) hereby waives and releases all Claims (including without
limitation, Claims arising under CERCLA, RCRA, the California Hazardous Material
Substance  Account  Act, and the California Hazardous Waste Control Law) against
Tenant  and  the  other  Tenant  Indemnitees,  to the extent arising out of, the
presence  of  any Hazardous Material (other than Tenant's Contamination) present
in  the  soil,  groundwater,  surface  water,  air  or building materials of the
Project  or  the  Premises. Landlord, for itself and its successors and assigns,
and  Tenant,  for itself and its successors and assigns, also waive the benefits
of  all  Laws  which provide that a waiver of unknown claims is unenforceable or
which would otherwise limit the obligations, waivers or releases of the Landlord
or  Tenant  as  set  forth  in  this  paragraph,  including  without  limitation
California  Civil  Code  Section  1542.

          H.     Exclusive  Paragraph:  The  parties  agree  that  their  entire
                 --------------------
agreement  with respect to their respective rights and remedies each against the
other  under this Lease are set forth

                                       18
<PAGE>
exclusively  in  this paragraph and no other provision of this Lease shall apply
to  Hazardous  Materials,  except  to  the  extent  that  the  words  "Hazardous
Materials"  are  expressly  used  in  said  paragraph.

     19.  INDEMNITY:
          ---------

          A.     By  Tenant:  Except to the extent arising out of the negligence
                 ----------
or  willful  misconduct  of  Landlord  or  its  Agents, Landlord's breach of its
obligations  or  representations under this Lease, or a violation by Landlord of
any Law, Tenant shall indemnify, defend, protect and hold harmless Landlord from
all  damages,  liabilities,  claims,  judgments,  actions,  attorneys'  fees,
consultants' fees, costs and expenses ("Damages") to the extent arising from (a)
the  negligence  or  willful  misconduct  of  Tenant or its Agents, (b) Tenant's
breach  of  its  obligations  or  representations  under  this Lease, or (c) the
violation by Tenant of any Law relating to the Premises or Tenant's use thereof.

          B.     By  Landlord:  Except  to  the  extent  arising  out  of  the
                 ------------
negligence or willful misconduct of Tenant or its Agents, Tenant's breach of its
obligations or representations under this Lease, or a violation by Tenant of any
Law, Landlord shall indemnify, defend, protect and hold harmless Tenant from all
Damages  to  the extent arising from (a) the negligence or willful misconduct of
Landlord  or  its  Agents,  (b)  Landlord's  breach  of  its  obligations  or
representations  under  this  Lease, or (c) the violation by Landlord of any Law
relating  to  the  Premises  or  this  Lease.

     20.  DEFAULT  AND  REMEDIES:
          ----------------------

          A.     Events  of  Tenant's  Default:  An "Event of Default" by Tenant
                 -----------------------------
shall  occur,  if

               (i)     Tenant fails to pay any Base Rent or Additional Rent when
due  and  such failure is not cured within ten (10) days after Landlord notifies
Tenant  in  writing  that  such  payment  was  not  made  when  due;  or

               (ii)     fails  to perform any other term, covenant, or condition
of  this  Lease  and  Tenant  fails to cure such default within thirty (30) days
after  delivery  of  written  notice from Landlord specifying the nature of such
default where such default could reasonably be cured within said thirty (30) day
period,  or  fails  to commence such cure within said thirty (30) day period and
thereafter  continuously  with  due diligence prosecute such cure to completion,
where  such  default  could  not reasonably be cured within said thirty (30) day
period;  or

               (iii)     Tenant  shall  have  permitted  the  sequestration  or
attachment  of,  or  execution on, or the appointment of a custodian or receiver
with  respect  to,  all or any substantial part of the property of Tenant or any
property  essential  to  the conduct of Tenant's business, and Tenant shall have
failed  to  obtain  a  return or release of such property within sixty (60) days
thereafter  or prior to sale pursuant to such sequestration, attachment or levy,
whichever  is  earlier,  or

               (iv)     A  court  shall have made or entered any decree or order
with  respect to Tenant, or Tenant shall have submitted to or sought a decree or
order  (or a petition or pleading shall have been filed in connection therewith)
which:  (i) grants or constitutes (or seeks) an order for relief, appointment of
a trustee, or confirmation of a reorganization plan under the bankruptcy laws of
the United States; (ii) approves as properly filed (or seeks such approval of) a
petition seeking liquidation or reorganization under said bankruptcy laws or any
other  debtor's

                                       19
<PAGE>
relief  law  or  statute  of  the  United  States or any state thereof, or (iii)
otherwise  directs  (or seeks) the winding up or liquidation of Tenant; and such
petition,  decree  or order shall have continued in effect for a period of sixty
(60)  or  more  days.

          B.     Landlord's Remedies:  In  the  event  of any default by Tenant,
                 -------------------
Landlord  shall have the following remedies, in addition to all other rights and
remedies  provided  by  any  Law  or  otherwise provided in this Lease, to which
Landlord  may  resort  cumulatively  or  in  the  alternative:

               (i)     Maintenance of Lease:  Landlord  may,  at  Landlord's
                       --------------------
election, keep this Lease in effect and enforce by an action at law or in equity
all  of  its  rights  and  remedies under this Lease, including (i) the right to
recover  the rent and other sums as they become due by appropriate legal action,
(i)  the  right  to  make  payments  required  of  Tenant  or  perform  Tenant's
obligations  and  be  reimbursed by Tenant for the cost thereof with interest at
the  Agreed  Interest  Rate  from  the  date  the  sum is paid by Landlord until
Landlord  is  reimbursed  by Tenant, (iii) the remedies of injunctive relief and
specific  performance  to  compel  Tenant  to perform its obligations under this
Lease,  and (iv) the right to recover the rent as it becomes due under the Lease
as  provided  in  California  Civil  Code  Section  1951.4  as  in effect on the
Effective  Date  of  this  Lease.

               (ii)     Termination:  Landlord  may,  at  Landlord's  election,
terminate  this  Lease  by giving Tenant written notice of termination, in which
event  this  Lease shall terminate on the date set forth for termination in such
notice.  Any  termination  under this subparagraph shall not relieve Tenant from
its  obligation  to  pay sums then due Landlord or from any claim against Tenant
for  damages  or rent previously accrued or then accruing. In no event shall any
one  or  more  of the following actions by Landlord, in the absence of a written
election  by  Landlord to terminate this Lease, constitute a termination of this
Lease:  (a)  appointment  of  a receiver in order to protect Landlord's interest
hereunder;  (b)  consent to any subletting of the Premises or assignment of this
Lease  by Tenant, whether pursuant to the provisions hereof or otherwise; or (c)
any  other  action  by  Landlord  or  Landlord's Agents intended to mitigate the
adverse  effects  of  any  breach  of  this  Lease  by Tenant, including without
limitation  any action taken to maintain and preserve the Premises or any action
taken  to  relet  the  Premises  or  any portions thereof. In the event Landlord
terminates  this  Lease,  Landlord shall be entitled, at Landlord's election, to
damages  in an amount as set forth in California Civil Code Section 1951.2 as in
effect  on  Effective  bate  of  this  Lease.  For purposes of computing damages
pursuant  to  Section 1951.2, an interest rate equal to the Agreed Interest Rate
shall  be  used  where permitted. Such damages shall include without limitation:

          (1)     The  worth  at  the  time  of award of the amount by which the
unpaid  rent  for  the  balance  of the term after the time of award exceeds the
amount  of  such  rental  loss  that  Tenant proves could be reasonably avoided,
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%); and

          (2)     Any  other  amount  necessary  to  compensate Landlord for all
detriment proximately caused by Tenant's failure to perform Tenant's obligations
under  this  Lease,  in  the ordinary course of things would be likely to result
therefrom.

                                       20
<PAGE>
          C     Landlord's  Default and Tenant's Remedies: In the event Landlord
                -----------------------------------------
fails  to perform any of its obligations under this Lease and fails to cure such
default  within thirty (30) days after written notice from Tenant specifying the
nature  of such default where such default could reasonably be cured within said
thirty  (30)  day period, or fails to commence such cure within said thirty (30)
day period and thereafter continuously with due diligence prosecute such cure to
completion  where  such default could not reasonably be cured within said thirty
(30)  day  period,  Tenant  shall  have  the  following  remedies:

               (i)     Tenant may proceed in equity or at law to compel Landlord
to  perform its obligations and/or to recover damages proximately caused by such
failure  to  perform  except to the extent provided to the contrary in paragraph
8.D.

               (ii)     Tenant  may  cure  any default of Landlord at Landlord's
cost.  If Tenant at any time by reason of Landlord's default reasonably pays any
sum or does any act that requires the payment of any sum, the sum paid by Tenant
shall  be  immediately  due from Landlord to Tenant at the time the sum is paid,
and  shall  bear  interest  at the Agreed Interest Rate from the date the sum is
paid  by Tenant until Tenant is reimbursed by Landlord. Any such amount shall be
payable  by  Landlord  to Tenant within ten (10) days following Tenant's written
demand  for  payment  and,  if  not  so  paid,  may  be  offset against the next
installments  of  Base  Monthly  Rent  and  Additional Rent payable by Tenant to
Landlord  under  the  Lease.

          D.     No  Waiver:  One  party's  consent to or approval of any act by
                 ----------
the  other  party  requiring  the first party's consent or approval shall not be
deemed  to  waive or render unnecessary the first party's consent to or approval
of any subsequent similar act by the other party. The receipt by Landlord of any
rent  or  payment with or without knowledge of the breach of any other provision
hereof  shall not be deemed a waiver of any such breach unless such waiver is in
writing  and  signed  by  Landlord.  No delay or omission in the exercise of any
right  or  remedy  accruing  to  either party upon any breach by the other party
under  this  Lease shall impair such right or remedy or be construed as a waiver
of  any  such  breach  theretofore or thereafter occurring. The waiver by either
party  of  any breach of any provision of this Lease shall not be deemed to be a
waiver  of  any  subsequent  breach  of  the same or any other provisions herein
contained.

     21.     OPTION TO LEASE AND RIGHT OF FIRST OFFER TO LEASE THE 3460 HILLVIEW
             -------------------------------------------------------------------
BUILDING:
--------

          A.     Existing Lease:  The 3460 Hillview Building is currently leased
                 --------------
to  Knight-Ridder  Information  Services  (formerly Dialog Information Services)
pursuant to that certain lease, dated March 5, 1979 (the "Existing 3460 Hillview
Building  Lease"),  [a  complete  and  accurate  copy  of  has been delivered to
Tenant].  Landlord  shall  notify  Tenant  in  writing of any termination of the
Existing  Building 3460 Lease prior to its stated expiration date of October 14,
1999 or of receipt of any notice from the tenant thereunder exercising the right
of  termination  described  therein  within fifteen (15) days following the date
Landlord  is  made  aware of the termination or the circumstances giving rise to
such  early  termination.

                                       21
<PAGE>
          B.     Option  to  Lease:
                 -----------------

               (i)     Grant  of  Option:  Tenant shall have the option to lease
                       -----------------
all  of  the  3460  Hillview Building or, at Tenant's election the approximately
25,948  square  foot  portion  of  the  3460 Hillview Building consisting of the
entire  second  floor and that portion of the first floor consisting of the area
which  includes  the loading dock, elevator and extends to the existing entry to
building  (the  "Option  Space").  If  Tenant  leases  less than the entire 3460
Hillview  Building, then the existing entry lobby shall be common area. The 3460
Hillview  Building  premises  shall  be measured in a manner which is consistent
with  the  measurement  methodology employed to measure the Building as a 43,472
square  foot  facility.

               (ii)     Terms  of  Lease  for  Option  Space:  The  terms  and
                        ------------------------------------
conditions of the lease for the Option space shall be identical to the terms and
conditions  of  this  Lease (including the Improvement Agreement hereto), except
that:

                    (a)     Terns  of  Lease:  The length of the initial term of
                            ----------------
the  lease  for  the  Option  Space shall be seven (7) years commencing upon the
"Completion"  of  the Initial Improvements for the Option Space (as defined in a
manner  consistent  with  the  improvement  Agreement), and Tenant will have two
options  to extend the term of the lease for the Option Space, each for a period
of  five (5) years. Notwithstanding the foregoing, the parties agree that if the
scheduled  date  for  expiration of the initial term of the lease for the Option
Space  and  the  then scheduled expiration date of this Lease (ignoring for this
purpose  any unexpired options to extend the term of this Lease) at the time the
lease  for  the  Option  Space is signed will occur within twelve months of each
other,  then,  in  such  event,  Tenant  shall elect to lengthen either the then
existing  term  of this Lease or the term of the Option Space so that said dates
do  not  occur  within  a  twelve  month  period.

                    (b)     Base  Monthly Rent:  No "Additional Base Rent" shall
                            ------------------
be  payable  for the Option Space and the Base Monthly Rent for the Option Space
shall  be equal to the "fair market rental value" of the Option Space determined
in  the  manner  described  in  subparagraph  3.B  above,  except  that:

                         (1)     Commissions,  if  any,  payable with respect to
Tenant's  exercise  of  the  option  and  the  size  of  the "Allowance" for the
remodeling  and refurbishment of the Option Space shall be taken into account in
determining  "fair  market  rental  value";  and

                         (2)     Tenant shall deliver to Landlord written notice
of  Tenant's  Rent Determination for the Option Space concurrently with delivery
to  Landlord  of  Tenant's notice exercising the expansion right herein granted.

                    (c)     Construction  of  Initial Improvements to the Option
                            ----------------------------------------------------
Space  and  the  Amount  of  the  Allowance:  Landlord  shall construct "Initial
 ------------------------------------------
Improvements"  in  the  Option  Space  in  accordance  with  the  terms  of  the
Improvement  Agreement  and  shall  provide an "Allowance" for the "Construction
Cost"  of  such  improvements  (as  said  terms  are  defined in the Improvement
Agreement)  in  the  amount  designated  by Tenant in its exercise notice, which
amount  shall  not exceed (x) Twenty Five Dollars ($25:00) per RSF of the Option
Space,  if  the  Option  Space  has  not  been completely remodeled (in a manner

                                       22
<PAGE>
substantially  consistent  with  the  remodeling of the Premises subject to this
Lease  in accordance with the Improvement Agreement) between the Effective Dates
and  the  date of the Tenant's exercise, or (y) Eight Dollars ($8.00) per RSF of
the  Option  Space,  if  the Option been so remodeled (in a manner substantially
consistent  with  the  remodeling  of  the  Premises  subject  to  this Lease in
accordance  with  the  Improvement Agreement). The total amount of the Allowance
designated  by  Tenant  shall  be  factored  into the determination of the "fair
market rental value" (and thereby the "Base Monthly Rent") for the Option Space.

                    (d)     Tenant's Duty to Contribute to Allowance:  If Tenant
                            ----------------------------------------
designates  an  amount  in excess of Eight Dollars ($8.00) per RSF of the Option
Space  as  an  Allowance, then at the election of Landlord, Landlord may require
Tenant  to  fund  up to one-half (1/2) of the Allowance designated by Tenant, in
return for a credit to Tenant against the Base Monthly Rent that would otherwise
be payable for the Option Space. Such rental credit shall be equal to the amount
derived  by  multiplying $0.0166 per month by each $1.00 of the Allowance funded
by  the  Tenant.  Because  of  the aforesaid rent credit, Landlord's election to
require  Tenant  to  fund  a portion of the Allowance shall not reduce the "fair
market  rental  value" of the Option Space upon which the Base Monthly Rent will
be  based.

                    (e)     Condition  of  Option  Space:  At  its sole cost and
                            ----------------------------
without  reduction  in the Allowance, Landlord shall deliver the Option Space to
Tenant  in  compliance  with  all  Laws  (including  without limitation the ADA)
applicable  to the Option Space on the date Tenant exercises its option to lease
(and  without  regard  to new legal requirements that become applicable to Space
merely  because  of  the  construction  of Initial Improvements therein), with a
water-tight  roof,  and  with  all  building operating systems in good operating
condition. To the extent the same or similar work to that described on Exhibit D
is required with respect to the Option Space, at its sole expense Landlord shall
also  complete  all such work prior to delivery of possession of the Premises to
Tenant.  If and to the extent that Landlord is required to and does make repairs
and/or  performs  work  in,  on and about the 3460 Hillview Building at its sole
cost pursuant to this subparagraph, then the resulting improved condition of the
Option  Space  shall  be  taken  into consideration in the determination of fair
market  value  rental  for  the  Option  Space.

               (iii)     Exercise  of  Option:  Tenant may exercise is option to
                         --------------------
lease  the  Option  Space by delivering a written exercise notice to Landlord at
any  time  prior  to January 1, 1999, unless the Existing 3460 Hillview Building
Lease  terminates prior to said date, in which case, Tenant shall have until the
thirtieth  (30th)  day  following delivery to Tenant of Landlord's notice of the
earlier  expiration  of  the  Existing  3460 Hillview Building Lease in which to
exercise  the option to lease herein granted. If Tenant indicates in writing its
election  to  its option to lease the Option Space, then Landlord shall lease to
Tenant  and  Tenant shall lease from Landlord, the Option Space on the foregoing
terms  and  the other terms of this Lease not inconsistent therewith; and within
ten  (10) days after such exercise by Tenant, Landlord and Tenant will execute a
lease  agreement for the Option Space memorializing said lease; provided however
that  the Landlord's failure or refusal to execute the lease agreement shall not
in  any manner adversely affect the validity of the Tenant's lease of the Option
Space.

               (iv)     Tenant's Failure to Exercise Option:  If Tenant does not
                        -----------------------------------
exercise  its  option  to  lease the Option Space within the allowed time period
then  this  Option  shall terminate. Landlord shall thereafter have the right to
lease the Option Space to a third party on such terms as the

                                       23
<PAGE>
Landlord  shall  find acceptable at anytime within the one-year period following
expiration of the option period, free of any rights by Tenant, under either this
subparagraph  21.B or subparagraph 21.C, below. However, if Landlord proposes to
lease the Option Space other than within said one-year period, then subparagraph
21.C  shall  be  applicable  in  accordance  with  its  terms.

          C.     Tenant's  Right  of  First  Offer  to  Lease:
                 --------------------------------------------

               (i)     Grant of First Right to Lease:  Landlord hereby grants to
                       -----------------------------
Tenant  a  right  of  first  offer  to Lease the 3460 Hillview Building, or such
portion(s)  thereof  as  Landlord  shall  desire  to lease or to grant any other
occupancy  right  in  a  third party.  If Landlord determines on any occasion to
lease or grant any occupancy right in the 3460 Hillview Building, or any portion
thereof  (the  "Offered  Space"),  then  Landlord  shall  first deliver Tenant a
written  notice ("Landlord's Notice") of such intent and specifying: (a) the RSF
of the Offered Space and the (b) the initial "Base Monthly Rent" for the Offered
Space  and  any  adjustment  to the Base Monthly Rent during the lease term. The
other  terms and conditions of this lease shall be the terms and conditions of a
lease  for  the  Offered  Space,  except  that:

                    (a)     Term  of  Lease:  The  length of the initial term of
                            ---------------
the  lease  for  the  Space  shall  be  seven  (7)  years  commencing  upon  the
"Completion"  of the Initial Improvements for the Offered Space (as defined in a
manner  consistent  with  the  Improvement  Agreement), and Tenant will have two
options to extend the term of the lease for the Space, each for a period of five
(5)  years.  Notwithstanding  the  foregoing,  the  parties  agree  that  if the
scheduled  date  for expiration of the initial term of the lease for the Offered
Space  and  the  then scheduled expiration date of this Lease (ignoring for this
purpose only any unexpired options to extend the term of this Lease) at the time
the  lease  for  the  Offered Space is signed will occur within twelve months of
each  other, then, in such event, Tenant shall elect to lengthen either the then
existing  term  of  this Lease or the term of the lease for the Offered Space so
that  said  dates  do  not  occur  within  a  twelve  month  period.

                    (b)     Base  Rent:  No  "Additional  Base  Rent"  shall  be
                            ----------
payable  for  the  Offered  Space.

                    (c)     Construction  of Initial Improvements to the Offered
                            ----------------------------------------------------
Space  and  the  Amount  of  the  Allowance:  Landlord  shall construct "Initial
-------------------------------------------
Improvements"  in  the  Offered  Space  in  accordance  with  the  terms  of the
Improvement  Agreement  and  shall  provide an "Allowance" for the "Construction
Cost"  of  such  improvements  (as  said  terms  are  defined in the Improvement
Agreement)  in  the  amount  designated  by Tenant in its exercise notice, which
amount  shall not exceed (x) Twenty Five Dollars ($25.00) per RSF of the Offered
Space,  if  the  Offered  Space  has  not been completely remodeled (in a manner
substantially  consistent  with  the  remodeling of the Premises subject to this
Lease  in  accordance with the Improvement Agreement) between the Effective Date
and  the  date of Tenant's exercise, or (y) Eight Dollars ($8.00) per RSF of the
Offered  Space,  if  the  Offered  Space  has  been  so  remodeled  (in a manner
substantially  consistent  with  the remodeling, of the Premises subject to this
Lease  in  accordance  with  the Improvement Agreement). The total amount of the
Allowance  designated  by Tenant shall be factored into the determination of the
"fair market rental value" (and thereby the "Base Monthly Rent") for the Offered
Space.

                    (d)     Tenant's Duty to Contribute to Allowance:  If Tenant
                            ----------------------------------------
designates  an  amount in excess of Eight Dollars ($8.00) per RSF of the Offered
Space  as  an

                                       24
<PAGE>
Allowance, then at the election of Landlord, Landlord may require Tenant to fund
up  to  one-half (1/2) of the Allowance so designated by Tenant, in return for a
credit  against  the  Base  Monthly Rent that would otherwise be payable for the
Offered  Space.  Such  rental  credit  shall  be  equal to the amount derived by
multiplying  $0.0166  per  month  by  each  $1.00 of the Allowance funded by the
Tenant.  Because  of  the  aforesaid rent credit, Landlord's election to require
Tenant  to  fund  a  portion  of the Allowance shall not reduce the "fair market
rental  value"  of  the  Offered  Space  upon which the Base Monthly Rent may be
based.

                    (e)     Condition  of  Offered  Space:  At its sole cost and
                            -----------------------------
without  reduction in the Allowance, Landlord shall deliver the Offered Space to
Tenant  in  compliance  with  all  Laws  (including  without limitation the ADA)
applicable  to  the  Space on the date Tenant exercises its option of lease (and
without  regard  to new legal requirements that become applicable to the Offered
Space  merely because of the construction of Initial Improvements therein), with
a  water-tight roof, and with all operating systems in good operating condition.
To  the  extent  the  same  or  similar  work  to that described on Exhibit D is
required  with  respect to the Offered Space, at its sole expense Landlord shall
also  complete  all such work prior to delivery of possession of the Premises to
Tenant.  If and to the extent that Landlord is required to and does make repairs
and/or  performs  work  in,  on  and  about  the Offered Space, at its sole cost
pursuant to this subparagraph, then the resulting condition of the Offered Space
shall  be  taken  into  consideration  in any determination of fair market value
rental  for  the  Offered  Space.

               (ii)     Tenant's  Exercise  of  Right & Determination Of Initial
                        --------------------------------------------------------
Base Monthly Rent:  Within twenty (20) days following delivery of the Landlord's
-----------------
Notice  to  Tenant,  Tenant shall notify the Landlord that it will (a) lease the
Offered  Space  at the Base Monthly Rent specified in the Landlord's Notice, (b)
lease  the  Offered  Space  at a Base Monthly Rent which differs from the amount
specified  in  the  Landlord's Notice by providing to Landlord written notice of
Tenant's  Rent  Determination  (as defined in paragraph 3), or (c) not lease the
Offered  Space.

     If  Tenant  indicates its agreement to lease the Offered Space on the terms
stated  in  Landlord's  notice,  then  Landlord shall lease to Tenant and Tenant
shall  lease  from Landlord the Offered Space at the Base Monthly Rent (and with
any  adjustments thereto) stated in Landlord's Notice and on the other terms and
conditions  specified  in  this  paragraph.

     If Tenant indicates its agreement to lease the Offered Space at a different
Base  Monthly Rent, then the parties shall exclusively negotiate for a period of
fourteen (14) days following delivery of Tenant's exercise notice to Landlord to
reach  agreement  on  said Base Monthly Rent and all adjustments thereto. If the
parties cannot agree upon the initial Base Monthly Rent during such period, then
Tenant's  shall  be  deemed  to  have waived its right of first offer under this
subparagraph  21.C  unless  it  notifies Landlord in writing that it accepts the
Base Monthly Rent and the adjustments thereto specified in the Landlord's Notice
within two (2) business days following the expiration of said 14-day negotiation
period.

     Notwithstanding anything to the contrary above, if the Landlord's Notice is
delivered to Tenant prior to January 1, 1999, then, in addition to the rights of
Tenant  to  accept  the Base Monthly Rent specified in the Landlord's Notice (if
the  parties  are  not  able  to agree between themselves as to the initial Base
Monthly  Rent  for  the Offered Space within the negotiation

                                       25
<PAGE>
period),  the  Tenant shall have the right to require that the Base Monthly Rent
for the Offered Space be equal to the "fair market rental value" for the Offered
Space  as determined by an appraisal conducted in accordance with the procedures
outlined  in  subparagraph  3.B  above.  In  this  regard:

                    (a)     Tenant  shall  notify  Landlord  of  its election to
require  any  appraisal within two (2) business days following expiration of the
14-day negotiation period. If Tenant fails to so notify Landlord of its election
within  the  permitted  time period, then Tenant's right to require an appraisal
shall  be  deemed  waived.

                    (b)     The  appraiser(s)  shall  be instructed to take into
account any commission payable with respect to the lease of the Offered Space to
Tenant, the other terms of the lease of the Offered Space to Tenant, and in this
subparagraph 21.C, in determining fair market rental value of the Offered Space.

On  or  before  the  tenth  (10th)  day following the determination of the "Base
Monthly  Rent"  in  accordance with the foregoing, the parties shall prepare and
execute  a  Lease for the Offered Space providing for the Base Monthly Rent (and
any adjustments thereto) determined in accordance with this paragraph, the other
matters described above, and all of the other terms and conditions of this Lease
not  inconsistent  therewith

               (iii)     Tenant's Failure to Exercise Right to Lease:  If Tenant
                         -------------------------------------------
does  not indicate in writing its election to lease the Offered Space within the
allowed  time period, or if having notified the Landlord that it elects to lease
the  Offered  Space  at  a  rental  which  differs  from  the  rate specified in
Landlord's  Notice,  Tenant  (a) fails to reach agreement with Landlord upon the
Base  Monthly Rent (and any associated rental adjustments) for the Offered space
and (b) does not either accept the Base Monthly Rent (and adjustments) specified
in  Landlord's Notice or properly demand an appraisal of such amounts within the
time permitted above, then Landlord shall thereafter have the right to lease the
Offered  Space  to  a  third  party  on  such  terms  as the Landlord shall find
acceptable  at anytime within a one-year period following delivery of Landlord's
original  notice  to  the Tenant. If Landlord does not enter into a lease of the
Offered  Space  with  a  third  party  within  said  one  year period, then this
provision shall again become operative and Landlord shall have the obligation to
provide Tenant with another opportunity to lease the Offered Space in accordance
with  the  terms  of  this  Section 21.C, before leasing the space to others. In
addition,  this  right  of  first  offer shall become operative each time that a
lease of the 3460 Hillview Building terminates. Tenant's failure to exercise its
right  of  first  to lease Offered Space on any particular occasion shall not be
deemed a waiver of this right of first refusal on other occasion or with respect
to  any  other  portion  of  the  3460  Hillview  Building.

          D.     Tenant's  Right  to Adjust the Term of This Lease:  At Tenant's
                 -------------------------------------------------
election,  upon  exercise  of  its  option  to  lease  Option  Space pursuant to
subparagraph  21.B  or  its  right  of  first  offer  to lease any Offered Space
pursuant  to  subparagraph  21.C,  Tenant  may  also  elect to lengthen the then
existing  Term of this Lease to a date which is one year longer shorter than the
initial  term  of  the  lease for the Option or Offered Space; provided, however
that  in  no  event may the Tenant shorten the then existing Term of this Lease.
Tenant's  exercise  of such right shall be delivered to Landlord before the date
the  Tenant  executes  a lease agreement for the Offered or the Option Space, as
the case may be.  In no event shall Tenant's extension of the Term of this Lease
affect  any  unexercised  options

                                       26
<PAGE>
to  extend  this  Lease  Term or the "Adjustment Dates" described in paragraph 2
above;  rather,  all  unexercised  options  to  extend  this  Lease shall become
operative  at  the  end  of  the Term of this Lease as extended pursuant to this
subparagraph and the Base Monthly Rent far this Lease shall be determined in the
manner  described  in  Paragraph  2  throughout  the  Term of this Lease and any
extensions  thereof,  without regard to the expiration date of the Lease Term or
the  commencement  date  of  any  extension  period.

     22.     [Intentionally  deleted.]

     23.     CONDITIONS  PRECEDENT  TO  THIS  LEASE:
             --------------------------------------

          A.     To  Landlord's  Obligations:  Landlord  intends to present this
                 ---------------------------
signed,  executed  Lease  and  Tenant's  financial  statements to its lenders to
verify  the  availability  of sufficient financing to generate the Allowance set
forth  in  the  Improvement  Agreement.  Consequently,  a condition precedent to
Landlord's  performance  of  this  Lease  shall  be Landlord's satisfaction that
sufficient  financing  will  be  available  at  market  rates  to  finance  said
Allowance.  If Landlord does not affirmatively waive this condition precedent to
this  Lease  in a writing delivered to Tenant on or before August 31, 1995, then
this  Lease  shall be deemed terminated and the deposits made by Tenant pursuant
to  paragraph 4 shall be returned to Tenant upon demand. In such event, Landlord
shall  execute  any documents reasonably requested by Tenant to ensure return of
said  deposits.  Notwithstanding  this  condition  to  Landlord's  performance,
Landlord shall use all reasonable efforts to obtain such financing and shall (i)
commence  and complete on or before September 5, 1995 demolition of the interior
of  the  Building  other  than  the  "Early  Entry Space"; (ii) proceed with the
planning  and  permitting  tasks for Landlord's Work outlined in the Improvement
Agreement,  and (iii) be solely responsible for, and indemnify and hold harmless
Tenant with respect to, all costs and expenses of space planning and preparation
working  drawing,  as  well  as,  demolition  and/or  construction  during  said
contingency  period.  In  the  event  Landlord  waives  the  subject  condition
precedent,  then  the  costs  and  expenses  so incurred by Landlord which would
otherwise  be included within the definition of "Construction Costs" pursuant to
the  Improvement  Agreement  shall  become  "Construction  Costs"  thereunder.
Notwithstanding  the  foregoing, the parties acknowledge that the Landlord shall
have  no  obligation to commence the demolition of the Premises until the Tenant
has  waived its right to withhold approval of the Final Plans, Cost Estimate and
Scheduled  Completion  Date  in its sole discretion. In this regard, the parties
also acknowledge that Tenant shall be permitted to waive its right to act in its
sole  discretion without waiving its right to withhold its approval of the Final
Plans,  the  Cost  Estimate  and the Scheduled Completion Date in its reasonable
discretion.

          B.     To  Tenant's  Obligations:  Tenant  desires  to  inspect  the
                 -------------------------
existing  condition  of  the  Premises  and  to  estimate  the cost that must be
incurred  to  make  the Premises acceptable to Tenant in its sole discretion and
Tenant  is  unwilling  to  lease  the  Premises  unless it obtains a recognition
agreement from Landlord's lender. Consequently, conditions precedent to Tenant's
performance  of  this  Lease  shall  be:  (i)  Tenant's satisfaction in its sole
discretion  that  the Premises can be rehabilitated to a condition acceptable to
Tenant  in  its  sole  discretion  for  a cost not exceeding the Allowance, (ii)
Tenant's  determination  in its reasonable judgment, based on the advice of HVAC
and  roof  contractors  that  the  remaining  useful  life  of  the roof and the
components  of the HVAC system is at least five (5) years after the Commencement
Date,  and  (iii) a determination by Tenant in its reasonable discretion that it
has  or  will  receive  within a reasonable time recognition and non-disturbance
agreement from the Landlord's permanent and construction lenders, both in a form
reasonably  acceptable to the

                                       27
<PAGE>
Tenant. If Tenant does not affirmatively waive the condition precedent described
in  items  (i)  and  (ii)  of  the  preceding sentence in a writing delivered to
Landlord on or before August 31, 1995, or if Tenant does not affirmatively waive
the  condition  precedent described in item (iii) of the preceding sentence in a
writing  delivered  to  Landlord on or before the tenth (10th) day following the
waiver  of  the  Landlord's financing condition, then this Lease shall be deemed
terminated  and  the  deposits  made  by Tenant pursuant to paragraph 4 shall be
returned  to  Tenant  upon  demand.  In  such event, Landlord shall "execute any
documents  reasonably  requested  by  Tenant  to ensure return of said deposits.
Notwithstanding  this  condition  to  Tenant's performance, Tenant shall proceed
with  the  planning tasks in the Improvement Agreement. In the event that Tenant
waives the subject conditions precedent, then the costs and expenses so incurred
by  Tenant,  which  would  otherwise  be  included  within  the  definition  of
"Construction  Costs"  pursuant  to  the  Improvement  Agreement,  shall  become
"Construction  Costs"  thereunder.

     24.  MISCELLANEOUS  PROVISIONS:
          -------------------------

          A.     Surrender of the Premises:  Prior to the expiration date of the
                 -------------------------
Lease  Term  (or within sixty (60) days following any earlier termination of the
Lease  Term),  Tenant  shall  remove  all  of  the Tenant's Property (other than
Alterations which Tenants elects to surrender and Landlord has agreed may remain
in  the Premises), repair all damage caused by the removal of such property, and
vacate  and  surrender the Premises to Landlord in the condition received on the
Commencement  Date, reasonable wear and tear, condemnations, perils, Alterations
which  Landlord  has agreed in writing may remain in the Premises, and Hazardous
Materials  not placed on or about the Premises by Tenant or its Agents excepted.

          B.     Holding  Over:  Subject to paragraph 24.A, Tenant may hold over
                 -------------
after  the  expiration  of  the  Lease  Term  only  with  the written consent of
Landlord. Any such holding over shall be construed to be a tenancy from month to
month  on  the same terms and conditions herein specified insofar as applicable.

          C.     Landlord's  Right  to  Enter:  Landlord or its Agents may enter
                 ----------------------------
the  Premises at any reasonable time for the purpose of (i) inspecting the same,
(ii)  posting  notices  of  nonresponsibility, (iii) supplying any service to be
provided  by  Landlord  to  Tenant,  (iv)  performing  Landlord's- obligation or
performing  Tenant's  obligations  when Tenant has failed to do so within thirty
(30)  days  after  written  notice  from  Landlord,  and/or  (vi)  in case of an
emergency.  However,  Landlord  may not so enter the Premises until it has first
given  Tenant  at  least  twenty-four  (24)  hours'  prior written notice of its
intention to do so (except in case of an emergency) and unless Landlord complies
with  all  of Tenant's security regulations. If Tenant so elects, Landlord shall
be  accompanied by a representative Tenant during any such entry. Landlord shall
not  have the right to open or inspect confidential files or safes, and Landlord
shall  not  disclose  to  others any confidential information regarding Tenant's
business  learned  by  Landlord  during  any  such  entry  into  the  Premises.

          D.     Estoppel  Certificates:  Each  party  agrees,  following  any
                 ----------------------
request  by  the  other; to promptly execute and deliver an estoppel certificate
upon  which  the  requesting  party  and  any  others it designates may rely (i)
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, (ii) stating the date to
which  the  rent  and  other  charges  are  paid  in  advance,  if  any,  (iii)
acknowledging  that  there  are  not,  to  the certifying party's knowledge, any
uncured  defaults  on  the  part

                                       28
<PAGE>
of  the  other  party  hereunder, or if there are stating their nature, and (iv)
certifying  such other information about the Lease as may be reasonably required
by  the  requesting  party.

          E.     Reimbursable  Expenditures:  Any  expenditure  by  a  party
                 --------------------------
permitted  or  required  under  this  Lease, for which such party is entitled to
demand  and  does demand reimbursement from the other party, shall be limited to
the  actual cost to the demanding party of the goods and/or services giving rise
to  such  expenditure, which cost shall not exceed the fair market value of such
goods  and/or services; shall be reasonably incurred; and shall be substantiated
by  documentary  evidence available for inspection and review by the other party
or  its  representative  during  normal  business  hours.

          F.     Notices:  Any  notice required or desired to be given regarding
                 -------
this  Lease  shall  be  in  writing  and may be personally served, or in lieu of
personal  service  may  be  given by overnight mail. If given by overnight mail,
such  notice  shall  be  deemed to have been given (i) on the business day after
mailing  if  such  notice was deposited in the United States mail, certified and
postage  prepaid,  addressed  to the party to be served at its address set forth
below  its signature, and (ii) in all other cases when actually received. Either
party may change its address by giving fifteen (15) days prior written notice of
its  new  address  in  accordance  with  this  paragraph.

          G.     Authority:  Each  individual  executing this Lease on behalf of
                 ---------
an  entity  represents and warrants that he or she is duly authorized to execute
and  deliver  this Lease on behalf of said entity and that this Lease is binding
upon  said  entity  in  accordance  with  its terms without the necessity of any
signature  which  is  not  set  forth  below.

          H.     Brokerage  Commissions:  Each  party warrants to the other that
                 ----------------------
it has not had any dealings with any real estate brokers or salesmen or incurred
any obligations for the payment of real estate brokerage commissions or finders'
fees  would  be  earned  or  due  and payable by reason of the execution of this
Lease,  other than Cornish & Carey Commercial. Landlord shall pay any commission
owing  to  Cornish  &  Carey  Commercial  pursuant to separate agreement between
Landlord  and  said  broker.

          I.     Memorandum  of Lease:  In connection with the execution of this
                 --------------------
Lease,  Landlord  and  Tenant shall execute in recordable form, a "Memorandum of
Lease"  referencing  the  Lease and setting forth the true and legal description
and assessor's parcel number of the Property and the 3460 Hillview Building in a
form  reasonably  acceptable  to  Tenant  in the Official Records of Santa Clara
County, California. The Memorandum of Lease shall recite that the Lease contains
an  option and a right of first offer to expand into the 3460 Hillview Building.
Upon  request, Tenant shall deliver to Landlord's legal counsel in trust, a quit
claim  deed  to  be  recorded  by such counsel only upon the termination of this
Lease.

          J.     Successors  and  Assigns:  This  Lease  shall,  subject  to the
                 ------------------------
provisions  regarding  assignment,  apply  to  and  bind  the  respective heirs,
successors,  executors,  administrators  and  assigns  of  Landlord  and Tenant.
Landlord  shall  not become or be deemed a partner or a joint venturer of Tenant
by  reason  of  this  Lease.

          K     Consents:  Whenever  one party's consent or approval is required
                --------
to  be  given  as  a  condition  to  the  other party's right to take any action
pursuant  to  this  Lease  and no standard for the

                                       29
<PAGE>
giving  or  withholding  of  such  consent is specified in this Lease, then such
consent  or  approval  shall  not  be  unreasonably  withheld  or  delayed.

          L.     Interpretation:  The Lease and the documents referred to herein
                 --------------
constitute  the  entire  agreement between the parties, and there are no binding
agreements or representations between the parties except as expressed herein. No
subsequent  change  or addition to this Lease shall be binding unless in writing
and signed by the parties hereto. Should any provision of this Lease prove to be
invalid or illegal, such invalidity or illegality shall in no way affect, impair
or  invalidate  any  other provision hereof, and such remaining provisions shall
remain  in  full  force  and  effect. Time is of the essence with respect to the
performance  of  every provision of this Lease in which time of performance is a
factor.  Any  executed  copy  of  this Lease shall be deemed an original for all
purposes.  The  language  in  all  parts  of  this  Lease  shall in all cases be
construed  as  a  whole  according  to its fair meaning, and not strictly for or
against  either  Landlord  or  Tenant.  The  captions used in this Lease are for
convenience  only  and  shall  not  be  considered  in  the  construction  or
interpretation of any provision hereof. When the context 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. The terms
"shall," "will," and "agree" are mandatory. The term "may" is permissive. When a
party is required to do something by this Lease, it shall do so at its sole cost
and  expense without right of reimbursement from the other party unless specific
provision  is  made  therefor.

          M.     Attorneys'  Fees:  In  the  event of any legal action for or on
                 ----------------
account  of any breach of or to enforce or interpret any of the covenants, terms
or  conditions  of this Lease, the prevailing party shall be entitled to recover
from  the other party as part of prevailing party's costs, reasonable attorney's
fees,  the  amount of which shall be fixed by the Court and shall be made a part
of  any  judgment  rendered.

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

     ALTA  CALIFORNIA  ASSOCIATES,  an  unincorporated  association

     By:  Louis  J.  Trescony
     -------------------------

     By:  Julian  M.  Trescony
     -------------------------

          General Partner of the Trescony Family Limited Partnership

     Address For Notice:  ALTA CALIFORNIA ASSOCIATES
                          --------------------------

     975 West Alisal. Suite D, Salinas, California 93901-1148
     --------------------------------------------------------

     OPTIVISION, INC.,  a California  corporation

     By: James S. Tyler
     ------------------------------------
     Address  For  Notice:

                                       30
<PAGE>AMNIS SYSTEMS INC.
                               ------------------

                         EXECUTIVE EMPLOYMENT AGREEMENT
                         ------------------------------

     THIS EXECUTIVE EMPLOYMENT AGREEMENT (this "Agreement") is entered into as
of April 18, 2001, by and between AMNIS SYSTEMS INC., a Delaware corporation
(the "Company"), and MICHAEL A. LICCARDO ("Executive").

                                    RECITALS

     A.     The Company is engaged in the manufacture and distribution of
networked streaming video products for high-quality video, management and
distribution.

     B.     The Company wishes to employ Executive and to have the benefit of
his skills and services, and Executive wishes to be employed by the Company, as
President and Chief Executive Officer of the Company on the terms and subject to
the conditions set forth herein.

                                    AGREEMENT

     NOW, THEREFORE, in consideration of these premises, the parties hereto
hereby agree as follows:

     1.     EMPLOYMENT.
            ----------

          (a)     POSITION.  The Company hereby employs Executive, and Executive
                  --------
hereby accepts employment with the Company, as President and Chief Executive
Officer of the Company. Executive shall serve as Chairman of the Board of
Directors of the Company (the "Board of Directors"). Executive shall also serve
as Chairman of the Board of Directors of Optivision, Inc., a California
corporation and a wholly-owned subsidiary of the Company (the "Principal
Subsidiary"), and as President and Chief Executive Officer of the Principal
Subsidiary.

          (b)     AUTHORITY.  Executive shall have the full power and authority
                  ---------
customarily associated with his positions, including without limitation, to
manage, control and direct the activities and operations of the Company.

          (c)     REPORTING.  Executive shall report to the Board of Directors.
                  ---------

          (d)     PLACE OF EMPLOYMENT.  Executive shall perform the services
                  -------------------
required by this Agreement at the Company's principal executive offices in Palo
Alto, California, and shall be provided a suitable office and staff as shall be
necessary for the performance of Executive's duties hereunder.

          (e)     CHANGE OF DUTIES.  The duties of Executive may be modified
                  ----------------
from time to time by the mutual written consent of the Company and Executive.

                                        1
<PAGE>
Notwithstanding any such change, the employment of Executive shall be construed
as continuing under this Agreement as so modified.

          (f)     DEVOTION OF TIME TO COMPANY'S BUSINESS.  During the Term
                  --------------------------------------
of this Agreement (as such term is defined in Section 1(g) hereof), Executive
agrees to devote substantially all of his productive time, ability and attention
to the business and interests of the Company during normal working hours;
provided, however, that the expenditure of reasonable amounts of time for
charitable, educational or professional activities or personal investments,
shall not be deemed a breach of this Agreement if such activities or investments
do not materially interfere with the performance of Executive's duties under
this Agreement.

          (g)     TERM.  Unless sooner terminated as provided in Section 4
                  ----
hereof, the term of this Agreement shall commence as of the date of this
Agreement and shall continue for a term of thirty-six (36) months (the "Initial
Term"), and shall be automatically renewed for successive one (1) year terms
(each, a "Renewal Term") unless a party hereto delivers to the other party
written notice of such party's intention not to renew at least one hundred
twenty (120) days prior to the end of the Initial Term or the applicable Renewal
Term, as the case may be. The Initial Term, together with any Renewal Terms
shall be referred to in this Agreement as the "Term of this Agreement."

     2.     COMPENSATION.
            ------------

          (a)     BASE SALARY.  During the Term of this Agreement, the Company
                  -----------
shall pay to Executive a base salary of two hundred thousand dollars ($200,000)
per year (the "Base Salary"), subject to increase from time to time as shall be
determined in the good faith discretion of the Board of Directors, payable in
arrears in equal semi-monthly installments.

          (b)     DISCRETIONARY BONUS.  In addition to the Base Salary, the
                  -------------------
Company shall pay to Executive such bonuses based on Executive's performance as
the Board of Directors shall determine from time to time in its sole discretion.

          (c)     INCENTIVE PLANS.  In addition to all other benefits and
                  ---------------
compensation provided by this Agreement, Executive shall be eligible to
participate as of the date of this Agreement in all other equity, compensation
and incentive plans as are now or in the future from time to time made available
to senior management executives of the Company.

          (d)     VACATION.  Executive shall be entitled to such annual vacation
                  --------
time with full pay as the Company may provide in its standard policies and
practices for senior management executives; provided, however, that in any event
Executive shall be entitled to a minimum of twenty-one (21) days annual paid
vacation time.

          (e)     DIRECTORS AND OFFICERS LIABILITY INSURANCE.  Executive shall
                  ------------------------------------------
be entitled to continued participation in, and have the benefit of, directors
and officers liability insurance to the same extent such coverage is provided to
the Company's other senior management executives.

                                        2
<PAGE>
          (f)     OTHER BENEFITS.  Executive shall participate in and have the
                  --------------
benefits of all present and future vacation, holiday, paid leave, unpaid leave,
life, accident, disability, dental, vision and health insurance plans, pension,
profit-sharing and savings plans and all other plans and benefits which are now
or in the future from time to time made available to senior management
executives of the Company.

          (g)     WITHHOLDING.  The parties shall comply with all applicable
                  -----------
withholding requirements in connection with all compensation payable to
Executive.

     3.     EXPENSE  REIMBURSEMENT.  The Company shall reimburse Executive for
            ----------------------
all reasonably documented business travel and other out-of-pocket expenses
reasonably incurred by Executive in the course of performing his duties
hereunder this Agreement.

     4.     TERMINATION AND RIGHTS ON TERMINATION.  This Agreement shall
            -------------------------------------
terminate upon the occurrence of any of the following events:

          (a)     DEATH.  Upon the death of Executive, in which event the
                  -----
Company shall:

               (i)     Within ten (10) days of receiving notice of such death,
pay Executive's estate a cash lump sum equal to all accrued Base Salary through
the date of death plus all accrued vacation pay and bonuses, if any;

               (ii)     Continue to pay Executive's then Base Salary to
Executive's estate for the lesser of (A) the remaining Term of this Agreement,
or (B) twelve (12) months from the date of death; and

               (iii)     Provide, at the Company's expense, coverage to
Executive's spouse under the health, dental and vision insurance plans available
to the Company's senior management executives and their dependents or, in the
event any of such health, dental or vision insurance is not continued, the
Company shall pay for the premiums for equivalent coverage, in any event, for a
period equal to the longer of (A) the remaining Term of this Agreement, or (B)
six (6) months from the date of death.

          (b)     DISABILITY.  Upon the mental or physical Disability (as such
                  ----------
term is defined below) of Executive, in which event the Company shall:

               (i)     Within ten (10) days following the determination of
Disability, pay Executive a cash lump sum equal to all accrued Base Salary
through the date of determination plus all accrued vacation pay and bonuses, if
any;

               (ii)     Continue to pay Executive's then Base Salary for the
lesser of (A) the remaining Term of this Agreement, or (B) twelve (12) months
from the date of determination; and

               (iii)     Provide, at the Company's expense, coverage to
Executive under the life, accident and disability insurance policies available
to the Company's senior management executives, and to Executive and his spouse
under the health, dental and vision insurance plans available to the Company's

                                        3
<PAGE>
management executives and their dependents or, in the event any of such life,
accident, disability, health, dental or vision insurance are not continued or
Executive is not eligible for coverage thereunder due to his termination of
employment, the Company shall pay for the premiums for equivalent coverage, in
any event, for a period equal to the longer of (A) the remaining Term of this
Agreement, or (B) six (6) months from the date of determination of Disability.

     For purposes of this Agreement, "Disability" shall mean a physical or
mental condition as determined by Executive's physician which prevents Executive
from carrying out one or more of the material aspects of his assigned duties for
at least ninety (90) consecutive days, or for a total of ninety (90) days in any
six (6) month period.

          (c)     RETIREMENT.  Upon the retirement of Executive at any time, in
                  ----------
which event the Company shall:

               (i)     Within ten (10) days following the effective date of
retirement, pay Executive a cash lump sum equal to all accrued Base Salary
through the date of retirement plus all accrued vacation pay and bonuses, if
any; and

               (ii)     Continue to pay Executive's then Base Salary for the
remaining Term of this Agreement.

          (d)     TERMINATION BY THE COMPANY FOR CAUSE.  Thirty (30) days after
                  ------------------------------------
delivery by the Company to Executive of a written notice terminating this
Agreement for Cause (as such term is defined below), which notice shall be
supported by a reasonably detailed statement of the relevant facts and reasons
for termination, in which event the Company shall, within ten (10) days
following the effective date of termination, pay Executive a cash lump sum equal
to all accrued Base Salary through the date of termination plus all accrued
vacation pay and bonuses, if any. For purposes of this Agreement, "Cause" shall
mean:

               (i)     Executive shall have committed an act of fraud,
embezzlement or theft; or

               (ii)     Executive shall have been found guilty of a felony or
other crime involving moral turpitude which would materially injure the Company
or its reputation.

          (e)     TERMINATION BY THE COMPANY WITHOUT CAUSE.  Ninety (90) days
                  ----------------------------------------
after delivery by the Company to Executive of a written notice terminating this
Agreement for any reason without cause, in which event the Company shall, within
ten (10) days following the effective date of termination:

               (i)     Pay Executive a cash lump sum equal to (x) all accrued
Base Salary through the date of termination plus all accrued vacation pay and
bonuses, if any, plus (y) as severance compensation, an amount equal to the

                                        4
<PAGE>
greater of (A) twelve (12) months of Executive's Base Salary (at the highest
rate in effect during the Term of this Agreement), or (B) Executive's then Base
Salary for the remaining Term of this Agreement;

               (ii)     Provide, at the Company's expense, coverage to Executive
under the life, accident and disability insurance policies available to the
senior management executives of the Company and to Executive and his dependents
under the health, dental and vision insurance plans available to the Company's
senior management executives and their dependents or, in the event any of such
life, accident, disability, health, dental or vision insurance are not continued
or Executive is not eligible for coverage thereunder due to his termination of
employment, the Company shall pay for the premiums for equivalent coverage, in
any event, for a period of twelve (12) months after the date of termination;

               (iii)     Provide an office, secretarial support and access to
equipment and supplies for a period of six (6) months after the date of
termination; and

               (iv)     Provide Executive reasonable outplacement services.

          (f)     VOLUNTARY TERMINATION BY EXECUTIVE.  Thirty (30) days after
                  ----------------------------------
delivery by Executive to the Company of a written notice terminating this
Agreement for any reason without cause, in which event the Company shall, within
ten (10) days following the effective date of termination, pay Executive a cash
lump sum equal to all accrued Base Salary through the date of termination plus
all accrued vacation pay and bonuses, if any.

          (g)     TERMINATION BY EXECUTIVE FOR GOOD REASON.  Ten (10) days after
                  ----------------------------------------
delivery by Executive to the Company of a written notice terminating this
Agreement for Good Reason (as such term is defined below), in which event the
Company shall, within ten (10) days following the effective date of termination,
pay Executive such amounts in such manner as provided for in Section 4(e)
hereof. For purposes of this Agreement, "Good Reason" shall mean:

               (i)     The attempted assignment of Executive to any duties
inconsistent with, or any adverse change in, Executive's positions, duties,
responsibilities, functions or status with the Company, or the removal of
Executive from, or failure to reelect Executive to, any of such positions;

               (ii)     The removal or failure to reelect Executive as Chairman
of the Board of Directors;

               (iii)     A reduction by the Company of Executive's Base Salary
without his written consent;

               (iv)     The Company shall have required Executive to be based in
excess of fifteen (15) miles from the Company's present executive offices
located in Palo Alto, California, except for travel on Company business to an
extent substantially consistent with Executive's present business travel
obligations;

                                        5
<PAGE>
               (v)     Failure of the Company to provide support, information,
assistance and staffing reasonably appropriate for Executive to carry out
Executive's duties or to achieve the performance goals set by the Company;

               (vi)     The failure by the Company to continue in effect for
Executive any material benefit available to any of the senior management
executives of the Company, including without limitation, any retirement, pension
or incentive plans, life, accident, disability or health insurance plans, equity
or cash bonus plans or savings and profit sharing plans, or any action by the
Company which would adversely affect Executive's participation in or reduce
Executive's benefits under any of such plans or deprive Executive of any fringe
benefit enjoyed by Executive;

               (vii)     The occurrence of any Change of Control, Corporate
Transaction or Subsidiary Disposition (as each such term is defined in Schedule
A attached hereto and made a part hereof);

               (viii)     Failure of the Company to provide financial and other
support, information and assistance reasonably necessary or appropriate for
Executive to implement the business plan of the Principal Subsidiary as
submitted by Executive to the Board of Directors, and as such business plan may
be amended from time to time by Executive after consultation with the Board of
Directors; or

               (ix)     Any other material breach by the Company of this
Agreement which is not cured within ten (10) days of delivery of written notice
thereof by Executive to the Company, or the material breach by the Company of
this Agreement three (3) or more times (whether or not the breaches are the same
and whether or not the breaches are subsequently cured) in any twelve (12) month
period.

          (h)     EFFECT OF TERMINATION.  All rights and obligations of the
                  ---------------------
Company and Executive under this Agreement shall cease as of the effective date
of termination, except that the obligations of the Company under this Section 4
and Executive's obligations under Section 5 hereof shall survive such
termination in accordance with their respective terms. In addition,
notwithstanding anything to the contrary contained herein or in any agreement
with respect thereto, upon termination of Executive's employment pursuant to
this Section 4 (other than Section 4(d) and Section 4(f)), all equity options,
restricted equity grants and similar rights held by Executive with respect to
securities of the Company shall automatically become fully vested and shall
become immediately exercisable for a period of twelve months after the effective
date of termination; provided, however, that in the case of termination pursuant
to Section 4(g)(vii), such equity options, restricted equity grants and similar
rights shall automatically become fully vested sixty (60) days prior to the
effective date of termination and shall be exercisable for the sixty-day period
prior to the effective date of termination and for an additional period of
twelve months after the effective date of termination.

                                        6
<PAGE>
     5.     Confidential Information.
            ------------------------

          (a)     CONFIDENTIAL INFORMATION.  Executive hereby agrees to hold in
                  ------------------------
strict confidence and not to disclose to any third party any of the confidential
and proprietary business, financial, technical, economic, sales and/or other
types of proprietary business information relating to the Company in whatever
form, whether oral, written, or electronic (collectively, the "Confidential
Information"), to which Executive has, or is given (or has had or been given),
access during the course of his employment with the Company. It is agreed that
the Confidential Information is confidential and proprietary to the Company
because such Confidential Information encompasses know-how, trade secrets, or
financial, organizational, sales or other valuable aspects of the business and
trade of the Company, including without limitation, technologies, products,
processes, plans, clients, personnel, operations and business activities. This
restriction shall not apply to any Confidential Information that (a) is
generally available in the public domain or becomes known generally to the
public through no fault of the Executive, (b) was independently known by
Executive prior to receipt thereof, (c) is lawfully made available to Executive
by a third party, (d) is subsequently developed by Executive without regard or
access to Confidential Information, (e) is required by applicable law, legal
process, or any order or mandate of a court or other governmental authority to
be disclosed, or (f) is reasonably believed by Executive, based upon the advice
of legal counsel, to be required to be disclosed in defense of a lawsuit or
other legal or administrative action brought against Executive; provided,
however, that in the case of clause (e) or (f), Executive shall give the Company
reasonable advance written notice of the Confidential Information intended to be
disclosed and the reasons and circumstances surrounding such disclosure, in
order to permit the Company to seek a protective order or other appropriate
request for confidential treatment of the applicable Confidential Information.

          (b)     RETURN OF COMPANY PROPERTY.  In the event of termination of
                  --------------------------
Executive's employment with the Company for whatever reason or no reason,
Executive or Executive's personal representative shall return to the Company all
Confidential Information.

     6.     ENTIRE  AGREEMENT.  This Agreement contains the entire agreement and
            -----------------
understanding between the parties hereto related to Executive's employment by
the Company and supersedes all prior agreements and understandings, oral or
written. No modification, termination or attempted waiver shall be valid unless
in writing and signed by Executive and the Company.

     7.     WAIVER.  No waiver or any right hereunder shall be effective for any
            ------
purpose unless in writing and signed by the party hereto possessing such right.
No such waiver shall be construed to be a waiver of any subsequent right, term
or provision of this Agreement.

     8.     ASSIGNMENT; BINDING EFFECT.  Executive understands that he has been
            --------------------------
selected for employment by the Company on the basis of his personal
qualifications, experience and skills. Executive agrees, therefore, that he
cannot assign or delegate all or any portion of his performance under this

                                        7
<PAGE>
Agreement. This Agreement may not be assigned or transferred by the Company
without the prior written consent of Executive. Subject to the preceding two
sentences, this Agreement shall be binding upon, inure to the benefit of, and be
enforceable by the parties hereto and their respective heirs, legal
representatives, successors, and assigns. Notwithstanding the foregoing, if
Executive accepts employment with an Affiliate (as such term is defined below),
this Agreement shall automatically be deemed to have been assigned to such new
employer (which shall thereafter be an additional or substitute beneficiary of
the covenants contained herein, as appropriate), with the consent of Executive,
and references to the "Company" in this Agreement shall be deemed to refer to
such new employer.

     9.     NOTICE.  All notices, requests, demands and other communications
            ------
required or permitted to be given under this Agreement shall be in writing and
shall be given or made by personally delivering the same to or sending the same
by prepaid certified or registered mail, return receipt requested, or by
reputable overnight courier, or by facsimile machine to the party to which it is
directed at the address set out on the signature page to this Agreement or at
such other address as such party shall have specified by written notice to the
other party as provided in this Section, and shall be deemed to be given if
delivered personally at the time of delivery, or if sent by certified or
registered mail as herein provided three (3) days after the same shall have been
posted, or if sent by reputable overnight courier upon receipt, or if sent by
facsimile machine as soon as the sender receives written or telephonic
confirmation that the facsimile was received by the recipient and such facsimile
is followed the same day by mailing by prepaid first class mail.

     10.     ARBITRATION.  Any dispute between the parties arising out of this
             -----------
Agreement shall be submitted to final and binding arbitration in the City of
Palo Alto, County of Santa Clara, State of California, under the National Rules
for the Resolution of Employment Disputes of the American Arbitration
Association then in effect, upon written notification and demand of either party
therefor. In the event either party demands such arbitration, the American
Arbitration Association shall be requested to submit a list of prospective
arbitrators consisting of persons experienced in matters involving employment
disputes. The provisions of California Code of Civil Procedure Section 1283.05
and the laws of the State of California are incorporated herein and shall be
applicable to the arbitration. In making the award, the arbitrator shall award
recovery of costs and expenses of the arbitration and reasonable attorneys' fees
to the prevailing party. Any award may be entered as a judgment in any court of
competent jurisdiction. Should judicial proceedings be commenced to enforce or
carry out this provision or any arbitration award, the prevailing party in such
proceedings shall be entitled to reasonable attorneys' fees and costs in
addition to other relief. Either party shall have the right, prior to receiving
an arbitration award, to obtain preliminary relief from a court of competent
jurisdiction.

     11.     SEVERABILITY;  HEADINGS.  If any portion of this Agreement is held
             -----------------------
invalid or inoperative, the other portions of this Agreement shall be deemed
valid and operative and, so far as is reasonable and possible, effect shall be
given to the intent manifested by the portion held invalid and inoperative. The
Sections headings herein are for reference purposes only and are not intended in

                                        8
<PAGE>
any way to describe, interpret, define or limit the extent or intent of this
Agreement or of any part hereof

     12.     GOVERNING  LAW.  This Agreement shall in all respects be construed
             --------------
according to the laws of the State of California, applicable to agreements to be
made and to be performed entirely within the State of California.

     13.     COUNTERPARTS.  This Agreement may be executed in any number of
             ------------
counterparts, each of which may be executed by less than all of the parties to
this Agreement, each of which shall be enforceable against the parties actually
executing such counterparts, and all of which together shall constitute one
instrument.

     14.     SIGNATURES.  The parties shall be entitled to rely upon and enforce
             ----------
a facsimile of any authorized signatures as if it were the original.

                                        9
<PAGE>
     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

COMPANY:                                      EXECUTIVE:

AMNIS  SYSTEMS  INC.

By:   /s/  Larry  Bartlett                     /s/  Michael  A. Liccardo
   --------------------------------------      ---------------------------------
Name:      Larry  Bartlett                     MICHAEL  A.  LICCARDO
     ------------------------------------
Title: Vice President and Chief Financial
      -----------------------------------
Officer
-------
                                               Address:  13253  Simon  Lane
                                                       -------------------------
                                                       Los Altos Hills, CA 94027
                                                       -------------------------

                                       10
<PAGE>
                                   SCHEDULE A
                                       TO
                              EMPLOYMENT AGREEMENT

                                   DEFINITIONS

     DEFINITIONS.  For purposes of this Agreement, the following terms shall
     -----------
have the following meanings:

1.      "AFFILIATE"  of, or a person "affiliated" with, a specified person means
a person that directly, or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, the specified
person. For purposes hereof, "control" means the possession, direct or indirect,
of the power to direct or cause the direction of the management and policies of
a person, whether through the ownership of voting securities, by contract or
otherwise.

2.     "CHANGE IN CONTROL" means a change in ownership or control of the Company
effected through either of the following transactions:

     (A)     The direct or indirect acquisition by any person or related group
of persons (other than an acquisition from or by the Company or by a Company
sponsored employee benefit plan or by an entity that directly or indirectly is
controlled by the Company) of beneficial ownership (within the meaning of Rule
13d-3 of the Securities Exchange Act of 1934, as amended) of securities
possessing more than fifty percent (50%) of the total combined voting power of
the Company's outstanding securities pursuant to a tender or exchange offer made
directly to the Company's shareholders which a majority of the Continuing
Directors who are not Affiliates or Associates of the offeror do not recommend
such shareholders accept; or

     (B)     A change in the composition of the Board of Directors over a period
of thirty-six (36) months or less such that a majority of the members of the
Board of Directors (rounded up to the next whole number) ceases, by reason of
one or more contested elections for membership to the Board of Directors, to be
comprised of individuals who are Continuing Directors.

3.     "CONTINUING DIRECTORS"  means members of the Board of Directors who have
been members either (A) continuously for a period of at least thirty-six (36)
months or (B) for less than thirty-six (36) months and were elected or nominated
for election as members of the Board of Directors by at least a majority of the
members of the Board of Directors described in clause (A) who were still in
office at the time such election or nomination was approved by the Board of
Directors.

4.     "CORPORATE TRANSACTION"  means any of the following shareholder-approved
transactions to which the Company is a party:

                                       11
<PAGE>
     (A)     A merger or consolidation in which the Company is not the surviving
entity, except for a transaction the principal purpose of which is to change the
state in which the Company is incorporated;

     (B)     The sale, transfer or other disposition of all or substantially all
of the assets of the Company (including the capital stock of the Principal
Subsidiary) in connection with the complete liquidation or dissolution of the
Company; or

     (C)     Any reverse merger in which the Company is the surviving entity but
in which securities possessing more than fifty percent (50%) of the total
combined voting power of the Company's outstanding securities are transferred to
a person or persons different from those who held such securities immediately
prior to such merger.

5.     "PERSON" shall mean any individual, trust, partnership, company,
corporation, business, organization, group or other entity.

6.     "SUBSIDIARY DISPOSITION" means the disposition by the Company of its
equity holdings in the Principal Subsidiary effected by a merger involving the
Principal Subsidiary (other than a merger into or with the Company), the sale of
all or substantially all of the assets of the Principal Subsidiary, or the sale
or distribution of substantially all of the outstanding capital stock of the
Principal Subsidiary.

                                       12
<PAGE>

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