Document:

ARRILLAGA LEASE 6282001

                                                               Exhibit 10.5

LEASE AGREEMENT

 

THIS LEASE, made this 28th day of June, 2001, between JOHN ARRILLAGA,
Trustee, or his Successor Trustee, UTA dated 7/20/77 (JOHN ARRILLAGA SURVIVOR'S
TRUST) as amended, and RICHARD T. PEERY, Trustee, or his Successor Trustee, UTA
dated 7/20/77 (RICHARD T. PEERY SEPARATE PROPERTY TRUST) as amended,
hereinafter called Landlord, and PROTEIN DESIGN LABS, INC., a Delaware
corporation, hereinafter called Tenant.

 

WITNESSETH:

Landlord hereby leases to Tenant and Tenant hereby hires and takes from
Landlord those certain premises (the "Premises") outlined in Red on Exhibit
A, attached hereto and incorporated herein by this reference thereto more
particularly described as follows:

 

A portion of that certain 41,472+ square foot, one-story building
located at 34810 Campus Drive, Fremont California 94555, consisting of
approximately 11,265+ square feet of space. Said Premises is more
particularly shown within the area outlined in Red on Exhibit A attached
hereto. The entire parcel, of which the Premises is a part, is shown within the
area outlined in Green on Exhibit A attached. The Premises shall be
improved by Landlord as shown on Exhibit B attached hereto, and is
leased on an "as-is" basis, in its present condition, and in the
configuration as shown in Red on Exhibit B attached hereto.

The word "Premises" as used throughout this Lease is hereby defined to
include the nonexclusive use of landscaped areas, sidewalks and driveways in
front of or adjacent to the Premises, and the nonexclusive use of the area
directly underneath or over such sidewalks and driveways. The gross leasable
area of the building shall be measured from outside of exterior walls to outside
of exterior walls, and shall include any atriums, covered entrances or egresses
and covered building loading areas. 

Said letting and hiring is upon and subject to the terms, covenants and
conditions hereinafter set forth and Tenant covenants as a material part of the
consideration for this Lease to perform and observe each and all of said terms,
covenants and conditions. This Lease is made upon the conditions of such
performance and observance.

	USE. Tenant shall use the Premises only in conformance with
applicable governmental laws, regulations, rules and ordinances for the purpose
of general office, and storage uses necessary for Tenant to conduct Tenant's
business, provided that such uses shall be in accordance with all current and
future applicable governmental laws and ordinances and zoning restrictions, and
for no other purpose. Tenant shall not do or permit to be done in or about the
Premises nor bring or keep or permit to be brought or kept in or about the
Premises anything which is prohibited by or will in any way increase the
existing rate of (or otherwise affect) fire or any insurance covering the
Premises or any part thereof, or any of its contents, or will cause a
cancellation of any insurance covering the Premises or any part thereof, or any
of its contents. Tenant shall not do or permit to be done anything in, on or
about the Premises which will in any way obstruct or interfere with the rights
of other tenants or occupants of the Premises or neighboring premises or injure
or annoy them, or use or allow the Premises to be used for any improper,
immoral, unlawful or objectionable purpose, nor shall Tenant cause, maintain or
permit any nuisance in, on or about the Premises. No sale by auction shall be
permitted on the Premises. Tenant shall not place any loads upon the floors,
walls, or ceiling which endanger the structure, or place any harmful fluids or
other materials in the drainage system of the building, or overload existing
electrical or other mechanical systems. No waste materials or refuse shall be
dumped upon or permitted to remain upon any part of the Premises or outside of
the building in which the Premises are a part, except in trash containers placed
inside exterior enclosures designated by Landlord for that purpose or inside of
the building proper where designated by Landlord. No materials, supplies,
equipment, finished products or semi-finished products, raw materials or
articles of any nature shall be stored upon or permitted to remain outside the
Premises. Tenant shall not place anything or allow anything to be placed near
the glass of any window, door partition or wall which may appear unsightly from
outside the Premises. No loudspeaker or other device, system or apparatus which
can be heard outside the Premises shall be used in or at the Premises without
the prior written consent of Landlord. Tenant shall not commit or suffer to be
committed any waste in or upon the Premises. Tenant shall indemnify, defend and
hold Landlord harmless against any loss, expense, damage, reasonable attorneys'
fees, or liability arising out of failure of Tenant to comply with any
applicable law for which Tenant is obligated to comply under the terms of this
Lease. Tenant shall comply with any covenant, condition, or restriction
("CC&R's") affecting the Premises. Landlord has provided a copy of said
CC&R's to Tenant. The provisions of this Paragraph are for the benefit of
Landlord only and shall not be construed to be for the benefit of any Tenant or
occupant of the Premises. 

	TERM.

	The Term of this Lease shall be for a period of THREE (3) years
(unless sooner terminated as hereinafter provided) and, subject to
Paragraphs 2B and 3, shall commence (the "Commencement Date") on the 1st day
of August, 2001 and end on the 31st day of July, 2004.
	Possession of the Premises shall be tendered by Landlord to Tenant and
the Term of the Lease shall commence when the first of the following
occurs:

	Upon the occupancy of the Premises by any of Tenant's operating personnel;
or
	When the Tenant Improvements have been substantially completed for Tenant's
use and occupancy, in accordance and compliance with Exhibit B of this
Lease Agreement; or
	As otherwise agreed in writing. 

It is agreed in the event said Lease commences on a date other than the first
day of the month the Term of the Lease will be extended to account for the
number of days in the partial month. The Basic Rent during the resulting partial
month will be pro-rated (for the number of days in the partial month) at the
Basic Rent rate scheduled for the projected Commencement Date as shown in
Paragraph 4A.

	POSSESSION. If Landlord, for any reason whatsoever, cannot
deliver possession of said Premises to Tenant at the commencement of the said
Term, as hereinbefore specified, this Lease shall not be void or voidable; no
obligation of Tenant shall be affected thereby; nor shall Landlord or Landlord's
agents be liable to Tenant for any loss or damage resulting therefrom; but in
that event the commencement and termination dates of the Lease, and all other
dates affected thereby shall be revised to conform to the date of Landlord's
delivery of possession, as specified in Paragraph 2B above. The above is,
however, subject to the provision that the period of delay of delivery of the
Premises shall not exceed sixty (60) days from the Commencement Date
herein (except those delays caused by Acts of God, strikes, war, utilities,
governmental bodies, weather, unavailable materials, and delays beyond
Landlord's control shall be excluded in calculating such period) in which
instance Tenant, at its option, may, by written notice to Landlord, terminate
this Lease; provided Tenant submits said notice to Landlord prior to the
expiration of said 60 day period.

	RENT.

	Basic Rent. Tenant agrees to pay to Landlord at such place as
Landlord may designate without deduction, offset, prior notice, or demand, and
Landlord agrees to accept as Basic Rent for the Leased Premises the total sum of
ONE MILLION ONE HUNDRED FIFTY FIVE THOUSAND SEVEN HUNDRED EIGHTY NINE AND NO/100
DOLLARS ($1,155,789.00) in lawful money of the United States of America, payable
as follows:

On August 1, 2001, the sum of THIRTY THOUSAND NINE HUNDRED SEVENTY EIGHT AND
75/100 DOLLARS ($30,978.75) shall be due, and a like sum due on the first day of
each month thereafter, through and including July 31, 2002.

On August 1, 2002, the sum of THIRTY TWO THOUSAND ONE HUNDRED FIVE AND 25/100
DOLLARS ($32,105.25) shall be due, and a like sum due on the first day of each
month thereafter, through and including July 1, 2003.

On August 1, 2003, the sum of THIRTY THREE THOUSAND TWO HUNDRED THIRTY ONE
AND 75/100 DOLLARS ($33,231.75) shall be due, and a like sum due on the first
day of each month thereafter, through and including July 1, 2004; or until the
entire aggregate sum of ONE MILLION ONE HUNDRED FIFTY FIVE THOUSAND SEVEN
HUNDRED EIGHTY NINE AND NO/100 DOLLARS ($1,155,789.00) has been paid.

 

	Time for Payment. Full monthly Rent is due in advance on the first
day of each calendar month. In the event that the Term of this Lease commences
on a date other than the first day of a calendar month, on the date of
commencement of the Term hereof Tenant shall pay to Landlord as Rent for the
period from such date of commencement to the first day of the next succeeding
calendar month that proportion of the monthly Rent hereunder for the number of
days between such date of commencement and the first day of the next succeeding
calendar month. In the event that the Term of this Lease for any reason ends on
a date other than the last day of a calendar month, on the first day of the last
calendar month of the Term hereof Tenant shall pay to Landlord as Rent for the
period from said first day of said last calendar month to and including the last
day of the Term hereof that proportion of the monthly Rent hereunder for the
number of days between said first day of said last calendar month and the last
day of the Term hereof.

	Late Charge. Notwithstanding any other provision of this Lease, if
Tenant is in default in the payment of Rent as set forth in this Paragraph 4
when due, or any part thereof, Tenant agrees to pay Landlord, in addition to the
delinquent Rent due, a late charge for each Rent payment in default ten (10)
days. Said late charge shall equal ten percent (10%) of each Rent payment so in
default.

	Additional Rent. Beginning with the Commencement Date of the Term of
this Lease, Tenant shall pay to Landlord or to Landlord's designated agent in
addition to the Basic Rent and as Additional Rent the following:

	All Taxes relating to the Premises as set forth in Paragraph 13, and
	All insurance premiums and deductibles relating to the Premises, as set
forth in Paragraph 17, and
	All charges, costs and expenses, which Tenant is required to pay hereunder,
together with all interest and penalties, costs and expenses including
reasonable attorneys' fees and legal expenses, that may accrue thereto in the
event of Tenant's failure to pay such amounts, and all damages, reasonable costs
and expenses which Landlord may incur by reason of default of Tenant or failure
on Tenant's part to comply with the terms of this Lease. In the event of
nonpayment by Tenant of Additional Rent, Landlord shall have all the rights and
remedies with respect thereto as Landlord has for nonpayment of Rent, and
	All prorated costs and expenses related to the Ardenwood Property Owners'
Association as set forth in Paragraph 46.

The Additional Rent due hereunder shall be paid to Landlord or Landlord's
agent (i) within five days for taxes and insurance and within thirty (30) days
for all other Additional Rent items after presentation of invoice from Landlord
or Landlord's agent setting forth such Additional Rent (notwithstanding anything
to the contrary herein, Landlord shall not be required to submit ongoing monthly
statements to Tenant reflecting amounts owed as Additional Rent) and/or (ii) at
the option of Landlord, Tenant shall pay to Landlord monthly, in advance,
Tenant's prorata share of an amount estimated by Landlord to be Landlord's
approximate average monthly expenditure for such Additional Rent items, which
estimated amount shall be reconciled within one hundred twenty (120) days of the
end of each calendar year or more frequently if Landlord elects to do so at
Landlord's sole and absolute discretion as compared to Landlord's actual
expenditure for said Additional Rent items, with Tenant paying to Landlord, upon
demand, any amount of actual expenses expended by Landlord in excess of said
estimated amount, or Landlord crediting to Tenant (providing Landlord may
withhold any amount thereof required to cure Tenant's default in the performance
of any of the terms, covenants and conditions of this Lease) any amount of
estimated payments made by Tenant in excess of Landlord's actual expenditures
for said Additional Rent Items. Within thirty (30) days after receipt of
Landlord's reconciliation, Tenant shall have the right, at Tenant's sole
expense, to audit, at a mutually convenient time at Landlord's office,
Landlord's records specifically limited to the foregoing expenses. Such audit
must be conducted by Tenant or an independent nationally recognized accounting
firm that is not being compensated by Tenant or other third party on a
contingency fee basis. Tenant shall submit to Landlord a complete copy of said
audit at no expense to Landlord and a written notice stating the results of said
audit, and if such notice by Tenant and the respective audit reveals that
Landlord has overcharged Tenant, and the audit is not challenged by Landlord,
the amount overcharged shall be credited to Tenant's account within thirty (30)
days after completion of Landlord's review and approval of said audit. Landlord
shall make reasonable efforts to respond to Tenant's audit request within ninety
(90) days of receipt of the same; however, in the event that Landlord is unable
to respond within that time period, Landlord shall not have waived its rights to
respond to said audit.

	Fixed Management Fee. Beginning with the Commencement Date of the
Term of this Lease, Tenant shall pay to Landlord, in addition to the Basic Rent
and Additional Rent, a fixed monthly management fee ("Management Fee") equal to
three percent (3%) of the Basic Rent due for each month during the Lease Term.

The reference to "Rent" in this Paragraph 4 includes Basic Rent, Additional
Rent, and fixed Management Fee. The respective obligations of Landlord and
Tenant under this Paragraph shall survive the expiration or other termination of
the Term of this Lease, and if the Term hereof shall expire or shall otherwise
terminate on a day other than the last day of a calendar year, the actual
Additional Rent incurred for the calendar year in which the Term hereof expires
or otherwise terminates shall be determined and settled on the basis of the
statement of actual Additional Rent for such calendar year and shall be prorated
in the proportion which the number of days in such calendar year preceding such
expiration or termination bears to 365.

	Place of Payment of Rent. All Rent hereunder shall be paid to
Landlord at the office of Landlord at: PEERY/ARRILLAGA, FILE 1504, BOX 60000,
SAN FRANCISCO, CA 94160, or to such other person or to such other place as
Landlord may from time to time designate in writing.

	Security Deposit. Concurrently with Tenant's execution of this Lease,
Tenant shall deposit with Landlord the sum of SIXTY SIX THOUSAND FOUR HUNDRED
SIXTY THREE AND 50/100 Dollars ($66,463.50). Said sum shall be held by Landlord
as a Security Deposit for the faithful performance by Tenant of all of the
terms, covenants, and conditions of this Lease to be kept and performed by
Tenant during the Term hereof. If Tenant defaults with respect to any provision
of this Lease, including, but not limited to, the provisions relating to the
payment of Rent and any of the monetary sums due herewith, Landlord may (but
shall not be required to) use, apply or retain all or any part of this Security
Deposit for the payment of any other amount which Landlord may spend by reason
of Tenant's default or to compensate Landlord for any other loss or damage which
Landlord may suffer by reason of Tenant's default. If any portion of said
Deposit is so used or applied, Tenant shall, within ten (10) days after written
demand therefor, deposit cash with Landlord in the amount sufficient to restore
the Security Deposit to its original amount. Tenant's failure to do so shall be
a material breach of this Lease. Landlord shall not be required to keep this
Security Deposit separate from its general funds, and Tenant shall not be
entitled to interest on such Deposit. If Tenant fully and faithfully performs
every provision of this Lease to be performed by it, the Security Deposit or any
balance thereof shall be returned to Tenant (or at Landlord's option, to the
last assignee of tenant's interest hereunder) at the expiration of the Lease
Term and after Tenant has vacated the Premises; provided, however, that Landlord
may withhold therefrom the amount necessary to cover the cost of restoration of
the Premises if Tenant fails to do so as required under Lease Paragraph 5 and to
cure any then uncured default by Tenant under this Lease. In the event of
termination of Landlord's interest in this Lease, Landlord shall transfer said
Deposit to Landlord's successor in interest whereupon Tenant agrees to release
Landlord from liability for the return of such Deposit or the accounting
therefor.

	ACCEPTANCE AND SURRENDER OF PREMISES. By entry hereunder,
Tenant accepts the Premises as being in good and sanitary order, condition and
repair and accepts the building and improvements included in the Premises in
their present condition and without representation or warranty by Landlord as to
the condition of such building or as to the use or occupancy which may be made
thereof. Any exceptions to the foregoing must be by written agreement executed
by Landlord and Tenant. Tenant agrees on the last day of the Lease Term, or on
the sooner termination of this Lease, to surrender the Premises promptly and
peaceably to Landlord in good condition and repair (damage by Acts of God, fire,
normal wear and tear excepted), with all interior walls painted, or cleaned so
that they appear freshly painted, and repaired or replaced, if damaged; all
floors cleaned and waxed; all carpets cleaned and shampooed; all broken, marred
or nonconforming acoustical ceiling tiles replaced; all windows washed; the air
conditioning and heating systems serviced by a reputable and licensed service
firm and in good operating condition and repair; the plumbing and electrical
systems and lighting in good order and repair, including replacement of any
burned out or broken light bulbs or ballasts; the lawn and shrubs in good
condition including the replacement of any dead or damaged plantings; the
sidewalk, driveways and parking areas in good order, condition and repair (said
landscaping, sidewalks, driveways and parking areas are considered Common Areas
of the Parcel and shall be maintained by Landlord throughout the Term of the
Lease; however Tenant shall be responsible for its proportionate share of any
maintenance, repairs, and/or replacements which are completed during the Lease
Term); together with all alterations, additions, and improvements which may have
been made, in, to, or on the Premises (except moveable trade fixtures installed
at the expense of Tenant) except that Tenant shall ascertain from Landlord
within thirty (30) days before the end of the Term of this Lease whether
Landlord desires to have the Premises or any part or parts thereof restored to
their condition and configuration as when the Premises were delivered to Tenant
and if Landlord shall so desire, then Tenant shall restore said Premises or such
part or parts thereof before the end of this Lease at Tenant's sole cost and
expense. Tenant, on or before the end of the Term or sooner termination of this
Lease, shall remove all of Tenant's personal property and trade fixtures from
the Premises, and all property not so removed on or before the end of the Term
or sooner termination of this Lease shall be deemed abandoned by Tenant and
title to same shall thereupon pass to Landlord without compensation to Tenant.
Landlord may, upon termination of this Lease, remove all moveable furniture and
equipment so abandoned by Tenant, at Tenant's sole cost, and repair any damage
caused by such removal at Tenant's sole cost. Upon surrender of the Premises to
Landlord, Tenant shall provide Landlord with keys for all interior locking doors
and Tenant agrees to pay to Landlord the cost of Landlord re-keying (i) all
exterior doors (including mechanical rooms) and (ii) all interior doors with
locks to which Tenant is not able to provide Landlord keys. If Tenant has
installed a cardkey system, Tenant shall also be responsible for the costs
Landlord incurs in replacing the doors and/or door frames in which such cardkey
system was installed and removing any and all equipment and wiring related
thereto. If the Premises be not surrendered at the end of the Term or sooner
termination of this Lease, Tenant shall indemnify Landlord against loss or
liability resulting from the delay by Tenant in so surrendering the Premises
including, without limitation, any claims made by any succeeding Tenant founded
on such delay. Nothing contained herein shall be construed as an extension of
the Term hereof or as a consent of Landlord to any holding over by Tenant. The
voluntary or other surrender of this Lease or the Premises by Tenant or a mutual
cancellation of this Lease shall not work as a merger and, at the option of
Landlord, shall either terminate all or any existing subleases or subtenancies
or operate as an assignment to Landlord of all or any such subleases or
subtenancies. 

	"AS-IS" BASIS. Subject only to Landlord making the
improvements shown on Exhibit B attached hereto, it is hereby agreed that
the Premises leased hereunder is leased strictly on an "as-is" basis and in its
present condition, and in the configuration as shown on Exhibit B
attached hereto, and by reference made a part hereof. Subject to Landlord's
maintenance of the Common Areas of the Building and Parcel pursuant to Paragraph
11 below, it is specifically agreed between the parties that after Landlord
makes the interior improvements as shown on Exhibit B, Landlord shall not
be required to make, nor be responsible for any cost, in connection with any
repair, restoration, and/or improvement to the Premises in order for this Lease
to commence, or thereafter, throughout the Term of this Lease. Notwithstanding
anything to the contrary within this Lease, Landlord makes no warranty or
representation of any kind or nature whatsoever as to the condition or repair of
the Premises, nor as to the use or occupancy which may be made thereof.

	ALTERATIONS AND ADDITIONS. Tenant shall not make, or suffer to
be made, any alteration or addition to the Premises, or any part thereof,
without the written consent of Landlord first had and obtained by Tenant (such
consent not to be unreasonably withheld), but at the cost of Tenant, and any
addition to, or alteration of, the Premises, except moveable furniture and trade
fixtures, shall at once become a part of the Premises and belong to Landlord.
Landlord reserves the right to approve all contractors and mechanics proposed by
Tenant to make such alterations and additions. As a condition to Landlord
granting its consent to any alterations, Tenant shall deliver plans and
specifications for Landlord's review and approval, and within five business days
of completion of said alterations, Tenant shall deliver to Landlord an original
1/8" scaled sepia or an other electronic format as solely determined by
Landlord. Tenant shall retain title to all moveable furniture and trade fixtures
placed in the Premises. All heating, lighting, electrical, air conditioning,
security systems, floor to ceiling partitioning, drapery, carpeting, and floor
installations made by Tenant, together with all property that has become an
integral part of the Premises, shall not be deemed trade fixtures. Tenant agrees
that it will not proceed to make such alteration or additions, without having
obtained consent from Landlord to do so, and until five (5) days from the
receipt of such consent, in order that Landlord may post appropriate notices to
avoid any liability to contractors or material suppliers for payment for
Tenant's improvements. Tenant will at all times permit such notices to be posted
and to remain posted until the completion of work. Tenant shall, if required by
Landlord, secure at Tenant's own cost and expense, a completion and lien
indemnity bond, satisfactory to Landlord, for such work. Tenant further
covenants and agrees that any mechanic's lien filed against the Premises for
work claimed to have been done for, or materials claimed to have been furnished
to Tenant, will be discharged by Tenant, by bond or otherwise, within ten (10)
days after notice of filing thereof, at the cost and expense of Tenant. Any
exceptions to the foregoing must be made in writing and executed by both
Landlord and Tenant.

	RULES AND REGULATIONS AND COMMON AREA. Subject to the terms
and conditions of this Lease and such Rules and Regulations as Landlord may from
time to time prescribe, Tenant and Tenant's employees, invitees and customers
shall, in common with other occupants of the Parcel/Building in which the
premises are located, and their respective employees, invitees and customers,
and others entitled to the use thereof, have the non-exclusive right to use the
access roads, parking areas, and facilities provided and designated by Landlord
for the general use and convenience of the occupants of the Parcel/Building in
which the Premises are located, which areas and facilities are referred to
herein as "Common Area". This right shall terminate upon the termination of this
Lease. Landlord reserves the right from time to time to make changes in the
shape, size, location, amount and extent of Common Area. Landlord further
reserves the right to promulgate such reasonable rules and regulations relating
to the use of the Common Area, and any part or parts thereof, as Landlord may
deem appropriate for the best interests of the occupants of the Parcel/Building.
Such Rules and Regulations may be amended by Landlord from time to time, with or
without advance notice, and all amendments shall be effective upon delivery of a
copy to Tenant. Landlord shall not be responsible to Tenant for the non-
performance by any other tenant or occupant of the Parcel/Building of any of
said Rules and Regulations.

Landlord shall operate, manage and maintain the Common Area. The manner in
which the Common Area shall be maintained and the expenditures for such
maintenance shall be at the discretion of Landlord.

	PARKING. Tenant shall have the right to the nonexclusive use
of sixty two (62) parking spaces in the common parking area of the building.
Tenant agrees that Tenant, Tenant's employees, agents, representatives, and/or
invitees shall not use parking spaces in excess of said 62 parking spaces
allocated to Tenant hereunder. Landlord shall have the right, at Landlord's sole
discretion, to specifically designate the location of Tenant's parking spaces
within the common parking area of the building in the event of a dispute among
the tenants occupying the building referred to herein, in which event Tenant
agrees that Tenant, Tenant's employees, agents, representatives and/or invitees
shall not use any parking spaces other than those parking spaces specifically
designated by Landlord for Tenant's use. Said parking spaces, if specifically
designated by Landlord to Tenant, may be relocated by Landlord at any time, and
from time to time. Landlord reserves the right, at Landlord's sole discretion,
to rescind any specific designation of parking spaces, thereby returning
Tenant's parking spaces to the common parking area. Landlord shall give Tenant
written notice of any change in Tenant's parking spaces. Tenant shall not, at
any time, park, or permit to be parked, any trucks or vehicles adjacent to the
loading area so as to interfere in any way with the use of such areas, nor shall
Tenant, at any time, park or permit the parking of Tenant's trucks and other
vehicles or the trucks and vehicles of Tenant's suppliers or others, in any
portion of the common areas not designated by Landlord for such use by Tenant.
Tenant shall not park nor permit to be parked, any inoperative vehicles or
equipment on any portion of the common parking area or other common areas of the
building. Tenant agrees to assume responsibility for compliance by its employees
with the parking provision contained herein. If Tenant or its employees park in
other than designated parking areas, then Landlord may charge Tenant, as an
additional charge, and Tenant agrees to pay Ten Dollars ($10.00) per day for
each day or partial day each such vehicle is parking in any area other than that
designated. Tenant hereby authorizes Landlord, at Tenant's sole expense, to tow
away from the building any vehicle belonging to Tenant or Tenant's employees
parked in violation of these provisions, or to attach violation stickers or
notices to such vehicles. Tenant shall use the parking area for vehicle parking
only and shall not use the parking areas for storage.

 

	TENANT MAINTENANCE. Tenant shall, at its sole cost and
expense, keep and maintain the Premises (including appurtenances) and every part
thereof in a high standard of maintenance and repair, and in good and sanitary
condition. Subject to Landlord's maintenance of the Common Areas of the Building
and Parcel pursuant to Paragraph 11 below, Tenant's maintenance and repair
responsibilities herein referred to include, but are not limited to,
janitorization, plumbing systems within the non-common areas of the Premises
(such as water and drain lines, sinks), electrical systems within the non-common
areas of the Premises (such as outlets, lighting fixtures, lamps, bulbs, tubes,
ballasts), heating and air-conditioning controls within the non-common areas of
the Premises (such as mixing boxes, thermostats, time clocks, supply and return
grills), non-common elevators (if any), and all interior improvements within the
Premises including but not limited to: wall coverings, window coverings,
acoustical ceilings, vinyl tile, carpeting, partitioning, doors (both interior
and exterior, including closing mechanisms, latches, locks), skylights (if any),
automatic fire extinguishing systems, and all other interior improvements of any
nature whatsoever. Tenant agrees to provide carpet shields under all rolling
chairs or to otherwise be responsible for wear and tear of the carpet caused by
such rolling chairs if such wear and tear exceeds that caused by normal foot
traffic in surrounding areas. Areas of excessive wear shall be replaced at
Tenant's sole expense upon Lease termination. Tenant hereby waives all rights
hereunder, and benefits of, subsection 1 of Section 1932 and Sections 1941 and
1942 of the California Civil Code and under any similar law, statute or
ordinance now or hereafter in effect.

	EXPENSES OF OPERATION, MANAGEMENT, AND MAINTENANCE OF THE COMMON AREAS
OF THE PARCEL AND BUILDING IN WHICH THE PREMISES ARE LOCATED. As
Additional Rent and in accordance with Paragraph 4D of this Lease, Tenant shall
pay to Landlord Tenant's proportionate share (calculated on a square footage or
other equitable basis as calculated by landlord) of all expenses of operation,
management, maintenance and repair of the Common Areas of the Parcel including,
but not limited to, license, permit, and inspection fees; security; utility
charges associated with exterior landscaping and lighting (including water and
sewer charges); all charges incurred in the maintenance and replacement of
landscaped areas, lakes, parking lots and paved areas (including repairs,
replacement, resealing and restriping), sidewalks, driveways, maintenance,
repair and replacement of all fixtures and electrical, mechanical and plumbing
systems; supplies, materials, equipment and tools; the cost of capital
expenditures which have the effect of reducing operating expenses, provided,
however, that in the event Landlord makes such capital improvements, Landlord
may amortize its investment in said improvements (together with interest at the
rate of fifteen (15%) percent per annum on the unamortized balance) as an
operating expense in accordance with standard accounting practices, provided,
that such amortization is not at a rate greater than the anticipated savings in
the operating expenses.

As Additional Rent and in accordance with Paragraph 4D of this Lease, Tenant
shall pay its proportionate share (calculated on a square footage or other
equitable basis as calculated by Landlord) of the cost of operation (including
common utilities), management, maintenance, and repair of the building
(including structural and common areas such as lobbies, restrooms, janitor's
closets, hallways, elevators, mechanical and telephone rooms, stairwells,
entrances, spaces above the ceilings and janitorization of said common areas) in
which the Premises are located. The maintenance items herein referred to
include, but are not limited to, all windows, window frames, plate glass,
glazing, truck doors, main plumbing systems of the building (such as water drain
lines, sinks, toilets, faucets, drains, showers and water fountains), main
electrical systems (such as panels and conduits), heating and air-conditioning
systems (such as compressors, fans, air handlers, ducts, boilers, heaters),
structural elements and exterior surfaces of the building; store fronts, roof,
downspouts, building common area interiors (such as wall coverings, window
coverings, floor coverings and partitioning), ceilings, building exterior doors,
skylights (if any), automatic fire extinguishing systems, and elevators (if
any); license, permit and inspection fees; security, supplies, materials,
equipment and tools; the cost of capital expenditures which have the effect of
reducing operating expenses, provided, however, that in the event Landlord makes
such capital improvements, Landlord may amortize its investment in said
improvements (together with interest at the rate of fifteen (15%) percent per
annum on the unamortized balance) as an operating expense in accordance with
standard accounting practices, provided, that such amortization is not at a rate
greater than the anticipated savings in the operating expenses. Tenant hereby
waives all rights hereunder, and benefits of, subsection 1 of Section 1932 and
Sections 1941 and 1942 of the California Civil Code and under any similar law,
statute or ordinance now or hereafter in effect.

"Additional Rent" as used herein shall not include Landlord's debt
repayments; cost for the installation of partitioning or any other tenant
improvements for third party tenants; cost of attracting third party tenants;
depreciation; interest; or executive salaries.

	UTILITIES OF THE BUILDING IN WHICH THE PREMISES ARE LOCATED.
As Additional Rent and in accordance with Paragraph 4D of this Lease Tenant
shall pay its proportionate share (calculated on a square footage or other
equitable basis as calculated by Landlord) of the cost of all utility charges
such as water, gas, electricity, (telephone, telex and other electronic
communications service, if applicable) sewer service, waste pick-up and any
other utilities, materials or services furnished directly to the building in
which the Premises are located, including, without limitation, any temporary or
permanent utility surcharge or other exactions whether or not hereinafter
imposed.

Landlord shall not be liable for and Tenant shall not be entitled to any
abatement or reduction of rent by reason of any interruption or failure of
utility services to the Premises when such interruption or failure is caused by
accident, breakage, repair, strikes, lockouts, or other labor disturbances or
labor disputes of any nature, or by any other cause, similar or dissimilar,
beyond the reasonable control of Landlord.

Provided that Tenant is not in default in the performance or observance of
any of the terms, covenants or conditions of this Lease to be performed or
observed by it, Landlord shall furnish to the Premises between the hours of 8:00
am and 6:00 pm, Mondays through Fridays (holidays excepted) and subject to the
rules and regulations of the Common Area hereinbefore referred to, reasonable
quantities of water, gas and electricity suitable for the intended use of the
Premises and heat and air-conditioning required in Landlord's judgment for the
comfortable use and occupation of the Premises for such purposes. Tenant agrees
that at all times it will cooperate fully with Landlord and abide by all
regulations and requirements that Landlord may prescribe for the proper
functioning and protection of the building heating, ventilating and air-
conditioning systems. Whenever heat generating machines, equipment, or any other
devices (including exhaust fans) are used in the Premises by Tenant which affect
the temperature or otherwise maintained by the air-conditioning system, Landlord
shall have the right to install supplementary air-conditioning units in the
Premises and the cost thereof, including the cost of installation and the cost
of operation and maintenance thereof, shall be paid by Tenant to Landlord upon
demand by Landlord. Tenant will not, without the written consent of Landlord,
use any apparatus or device in the Premises (including, without limitation),
electronic data processing machines or machines using current in excess of 110
Volts which will in any way increase the amount of electricity, gas, water or
air-conditioning usually furnished or supplied to premises being used as general
office space, or connect with electric current (except through existing
electrical outlets in the Premises), or with gas or water pipes any apparatus or
device for the purposes of using electric current, gas, or water. If Tenant
shall require water, gas, or electric current in excess of that usually
furnished or supplied to premises being used as general office space, Tenant
shall first obtain the written consent of Landlord, which consent shall not be
unreasonably withheld and Landlord may cause an electric current, gas or water
meter to be installed in the Premises in order to measure the amount of electric
current, gas or water consumed for any such excess use. The cost of any such
meter and of the installation, maintenance and repair thereof, all charges for
such excess water, gas and electric current consumed (as shown by such meters
and at the rates then charged by the furnishing public utility); and any
additional expense incurred by Landlord in keeping account of electric current,
gas, or water so consumed shall be paid by Tenant, and Tenant agrees to pay
Landlord therefor promptly upon demand by Landlord.

	TAXES. 

	As Additional Rent and in accordance with Paragraph 4D of this Lease, Tenant
shall pay to Landlord, monthly in advance or as they become due, pursuant to
statements submitted by Landlord, Tenant's proportionate share (which pro rata
share shall be allocated to the Leased Premises by square footage or other
equitable basis, as calculated by Landlord) of all Real Property Taxes relating
to the Premises accruing with respect to the Premises during the Term of this
Lease and the Extended Term (if any). The term "Real Estate Taxes" shall also
include supplemental taxes related to the period of Tenant's Lease Term whenever
levied, including any such taxes that may be levied after the Lease Term has
expired. In the event the Premises leased hereunder consist of only a portion of
the entire tax parcel, Tenant shall pay to Landlord monthly in advance or as
they become due, pursuant to statements submitted to Tenant by Landlord,
Tenant's proportionate share of such real estate taxes allocated to the Leased
Premises by square footage or other reasonable basis as calculated and
determined by Landlord. If the tax billing pertains 100% to the Leased Premises,
and Landlord chooses to have Tenant pay said real estate taxes directly to the
Tax Collector, then in such event it shall be the responsibility of Tenant to
obtain the tax and assessments bills and pay, prior to delinquency, the
applicable real property taxes and assessments pertaining to the Leased
Premises, and failure to receive a bill for taxes and/or assessments shall not
provide a basis for cancellation of or non-responsibility for payment of
penalties for nonpayment or late payment by Tenant. The term "Real Property
Taxes", as used herein, shall mean (i) all taxes, assessments, levies and other
charges of any kind or nature whatsoever, general and special, foreseen and
unforeseen (including all installments of principal and interest required to pay
any general or special assessments for public improvements and any increases
resulting from reassessments caused by any change in ownership of the Premises)
now or hereafter imposed by any governmental or quasi-governmental authority or
special district having the direct or indirect power to tax or levy assessments,
which are levied or assessed against, or with respect to the value, occupancy or
use of, all or any portion of the Premises (as now constructed or as may at any
time hereafter be constructed, altered, or otherwise changed) or Landlord's
interest therein; any improvements located within the Premises (regardless of
ownership); the fixtures, equipment and other property of Landlord, real or
personal, that are an integral part of and located in the Premises; or parking
areas, public utilities, or energy within the Premises; (ii) all charges, levies
or fees imposed by reason of environmental regulation or other governmental
control of the Premises and (iii) all costs and fees (including reasonable
attorneys' fees) incurred by Landlord in reasonably contesting any Real Property
Tax and in negotiating with public authorities as to any Real Property Tax. If
at any time during the Term of this Lease the taxation or assessment of the
Premises prevailing as of the Commencement Date of this Lease shall be altered
so that in lieu of or in addition to any Real Property Tax described above there
shall be levied, assessed or imposed (whether by reason of a change in the
method of taxation or assessment, creation of a new tax or charge, or any other
cause) an alternate or additional tax or charge (i) on the value, use or
occupancy of the Premises or Landlord's interest therein or (ii) on or measured
by the gross receipts, income or rentals from the Premises, on Landlord's
business of leasing the Premises, or computed in any manner with respect to the
operation of the Premises, then any such tax or charge, however designated,
shall be included within the meaning of the term "Real Property Taxes" for
purposes of this Lease. If any Real Property Tax is based upon property or rents
unrelated to the Premises, then only that part of such Real Property Tax that is
fairly allocable to the Premises shall be included within the meaning of the
term "Real Property Taxes." Notwithstanding the foregoing, the term "Real
Property Taxes" shall not include estate, inheritance, gift or franchise taxes
of Landlord or the federal or state net income tax imposed on Landlord's income
from all sources.

	Taxes on Tenant's Property. Tenant shall be liable for and shall pay
ten days before delinquency, taxes levied against any personal property or trade
fixtures placed by Tenant in or about the Premises. If any such taxes on
Tenant's personal property or trade fixtures are levied against Landlord or
Landlord's property or if the assessed value of the Premises is increased by the
inclusion therein of a value placed upon such personal property or trade
fixtures of Tenant and if Landlord, after written notice to Tenant, pays the
taxes based on such increased assessment, which Landlord shall have the right to
do regardless of the validity thereof, but only under proper protest if
requested by Tenant, Tenant shall within five (5) days after demand, as the case
may be, repay to Landlord the taxes so levied against Landlord, or the
proportion of such taxes resulting from such increase in the assessment;
provided that in any such event Tenant shall have the right, in the name of
Landlord and with Landlord's full cooperation, to bring suit in any court of
competent jurisdiction to recover the amount of such taxes so paid under
protest, and any amount so recovered shall belong to Tenant.

	ASSESSMENT CREDITS. The demised property herein may be subject
to a special assessment levied by the City of Fremont as part of an Improvement
District. As a part of said special assessment proceedings (if any), additional
bonds were or may be sold and assessments were or may be levied to provide for
construction contingencies and reserve funds. Interest shall be earned on such
funds created for contingencies and on reserve funds which will be credited for
the benefit of said assessment district. To the extent surpluses are created in
said district through unused contingency funds, interest earnings or reserve
funds, such surpluses shall be deemed the property of Landlord. Notwithstanding
that such surpluses may be credited on assessments otherwise due against the
Leased Premises, Tenant shall pay to Landlord, as Additional Rent if, and at the
time of any such credit of surpluses, an amount equal to all such surpluses so
credited. For example: if (i) the property is subject to an annual assessment of
$1,000.00, and (ii) a surplus of $200.00 is credited towards the current year's
assessment which reduces the assessment amount shown on the property tax bill
from $1,000.00 to $800.00, Tenant shall, upon receipt of notice from Landlord,
pay to Landlord said $200.00 credit as Additional Rent.

	LIABILITY INSURANCE. Tenant, at Tenant's expense, agrees to
keep in force during the Term of this Lease a policy of commercial general
liability insurance with combined single limit coverage of not less than Two
Million Dollars ($2,000,000) per occurrence for bodily injury and property
damage occurring in, on or about the Premises, including parking and landscaped
areas. Such insurance shall be primary and noncontributory as respects any
insurance carried by Landlord. The policy or polices effecting such insurance
shall name Landlord as additional insureds, and shall insure any liability of
Landlord, contingent or otherwise, as respects acts or omissions of Tenant, its
agents, employees or invitees or otherwise by any conduct or transactions of any
of said persons in or about or concerning the Premises, including any failure of
Tenant to observe or perform any of its obligations hereunder; shall be issued
by an insurance company admitted to transact business in the State of
California; and shall provide that the insurance effected thereby shall not be
canceled, except upon thirty (30) days' prior written notice to Landlord. A
certificate of insurance of said policy shall be delivered to Landlord. If,
during the Term of this Lease, in the considered opinion of Landlord's Lender,
insurance advisor, or counsel, the amount of insurance described in this
Paragraph 15 is not adequate, Tenant agrees to increase said coverage to such
reasonable amount as Landlord's Lender, insurance advisor, or counsel shall deem
adequate.

	TENANT'S PERSONAL PROPERTY INSURANCE AND WORKMAN'S COMPENSATION
INSURANCE. Tenant shall maintain a policy or policies of fire and
property damage insurance in "all risk" form with a sprinkler leakage
endorsement insuring the personal property, inventory, trade fixtures, and
leasehold improvements within the Leased Premises for the full replacement value
thereof. The proceeds from any of such policies shall be used for the repair or
replacement of such items so insured.

Tenant shall also maintain a policy or policies of workman's compensation
insurance and any other employee benefit insurance sufficient to comply with all
laws.

	PROPERTY INSURANCE. Landlord shall purchase and keep in force,
and as Additional Rent and in accordance with Paragraph 4D of this Lease, Tenant
shall pay to Landlord (or Landlord's agent if so directed by Landlord) Tenant's
proportionate share (allocated to the Leased Premises by square footage or other
equitable basis as calculated and determined by Landlord) of the deductibles on
insurance claims and the cost of, policy or policies of insurance covering loss
or damage to and/or destruction of the Premises (excluding routine maintenance
and repairs and incidental damage or destruction caused by accidents or
vandalism for which Tenant is responsible under Paragraph 10) in the amount of
the full replacement value thereof, providing protection against those perils
included within the classification of "all risks" insurance and flood and/or
earthquake insurance, if available, plus a policy of rental income insurance in
the amount of one hundred (100%) percent of twelve (12) months Basic Rent, plus
sums paid as Additional Rent. If such insurance cost is increased due to
Tenant's use of the Premises, Tenant agrees to pay to Landlord the full cost of
such increase. Tenant shall have no interest in nor any right to the proceeds of
any insurance procured by Landlord for the Premises.

In addition and notwithstanding anything to the contrary in this Paragraph
17, each party to this Lease hereby waives all rights of recovery against the
other party or its officer, employees, agents and representatives for loss or
damage to its property or the property of others under its control, arising from
any cause insured against under the fire and extended coverage (excluding,
however, any loss resulting from Hazardous Material contamination of the
Property) required to be maintained by the terms of this Lease Agreement to the
extent full reimbursement of the loss/claim is received by the insured party.
Each party required to carry property insurance hereunder shall cause the policy
evidencing such insurance to include a provision permitting such release of
liability ("waiver of subrogation endorsement") provided, however, that if the
insurance policy of either releasing party prohibits such waiver, then this
waiver shall not take effect until consent to such waiver is obtained; provided,
however, that if the insurance policy of either releasing party prohibits such
waiver, then this waiver shall not take effect until consent to such waiver is
obtained. If such waiver is so prohibited, the insured party affected shall
promptly notify the other party thereof. In the event the waivers are issued to
the parties and are not valid under current policies and/or subsequent insurance
policies, the non-complying party will provide, to the other party, 30 days
advance notification of the cancellation of the subrogation waiver, in which
case neither party will provide such subrogation waiver thereafter and this
Paragraph will be null and void. The foregoing waiver of subrogation shall not
include any loss resulting from Hazardous Material contamination of the Property
or any insurance coverage relating thereto.

	INDEMNIFICATION. Landlord shall not be liable to Tenant and
Tenant hereby waives all claims against Landlord for any injury to or death of
any person or damage to or destruction of property in or about the Premises by
or from any cause whatsoever, including, without limitation, gas, fire, oil,
electricity or leakage of any character from the roof, walls, basement or other
portion of the Premises but excluding, however, the willful misconduct or
negligence of Landlord, its agents, servants, employees, invitees or contractors
of which negligence Landlord has knowledge and reasonable time to correct.
Except as to injury to persons or damage to property to the extent arising from
the willful misconduct or the negligence of Landlord, its agents, servants,
employees, invitees, or contractors, Tenant shall hold Landlord harmless from
and defend Landlord against any and all expenses, including reasonable
attorneys' fees, in connection therewith, arising out of any injury to or death
of any person or damage to or destruction of property occurring in, on or about
the Premises, or any part thereof, from any cause whatsoever, accruing and/or
occurring during the Term of this Lease.

	COMPLIANCE. Tenant, at its sole cost and expense, shall
promptly comply with all laws, statutes, ordinances and governmental rules,
regulations or requirements now or hereafter in effect; with the requirements of
any board of fire underwriters or other similar body now or hereafter
constituted; and with any direction or occupancy certificate issued pursuant to
law by any public officer; provided, however, that no such failure shall be
deemed a breach of the provisions if Tenant, immediately upon notification,
commences to remedy or rectify said failure. The judgment of any court of
competent jurisdiction or the admission of Tenant in any action against Tenant,
whether Landlord be a party thereto or not, that Tenant has violated any such
law, statute, ordinance or governmental rule, regulation, requirement, direction
or provision, shall be conclusive of that fact as between Landlord and Tenant.
Tenant shall, at its sole cost and expense, comply with any and all requirements
pertaining to said Premises, of any insurance organization or company, necessary
for the maintenance of reasonable fire and public liability insurance covering
requirements pertaining to said Premises.

	LIENS. Tenant shall keep the Premises free from any liens
arising out of any work performed, materials furnished or obligation incurred by
Tenant. In the event that Tenant shall not, within ten (10) days following
notice of the imposition of such lien, cause the same to be released of record,
Landlord shall have, in addition to all other remedies provided herein and by
law, the right, but no obligation, to cause the same to be released by such
means as it shall deem proper, including payment of the claim giving rise to
such lien. All sums paid by Landlord for such purpose, and all expenses incurred
by it in connection therewith, shall be payable to Landlord by Tenant on demand
with interest at the prime rate of interest as quote by the Bank of
America.

	ASSIGNMENT AND SUBLETTING. 

	Tenant shall not assign, transfer, or hypothecate the leasehold estate under
this Lease, or any interest therein, and shall not sublet the Premises, or any
part thereof, or any right or privilege appurtenant thereto, or suffer any other
person or entity to occupy or use the Premises, or any portion thereof, without,
in each case, the prior written consent of Landlord which consent will not be
unreasonably withheld. As a condition for granting this consent to any
assignment, transfer, or subletting, Landlord shall require that (i) the
sublease be a triple net sublease and that the basic rent due under any
such sublease be no less than the then current market rent with annual increases
at the then prevailing market rent, (ii) that the sublease shall not provide for
subtenant to have an option to extend the term of the sublease or an option to
expand the sublet space, and (iii) Tenant pay Landlord monthly throughout the
term of any approved sublease, as Additional Rent (and therefore subject to the
terms of Paragraph 4.C ("Late Charge") and Paragraph 24 ("Bankruptcy and
Default"), all rents and/or additional consideration due Tenant from its
assignees, transferees, or subtenants in excess of the Rent payable by Tenant to
Landlord hereunder for the assigned, transferred and/or subleased space ("Excess
Rent"). Tenant shall, by thirty (30) days written notice, advise Landlord of its
intent to assign or transfer Tenant's interest in the Lease or sublet the
Premises or any portion thereof for any part of the Term hereof. Within thirty
(30) days after receipt of said written notice, Landlord may, in its sole
discretion, elect to terminate this Lease as to the portion of the Premises
described in Tenant's notice on the date specified in Tenant's notice by giving
written notice of such election to terminate. If no such notice to terminate is
given to Tenant within said thirty (30) day period, Tenant may proceed to locate
an acceptable sublessee, assignee, or other transferee for presentment to
Landlord for Landlord's approval, all in accordance with the terms, covenants,
and conditions of this Paragraph 21. If Tenant intends to sublet the entire
Premises and Landlord elects to terminate this Lease, this Lease shall be
terminated on the date specified in Tenant's notice. If, however, this Lease
shall terminate pursuant to the foregoing with respect to less than all the
Premises, the Rent, as defined and reserved hereinabove shall be adjusted on a
pro rata basis to the number of square feet retained by Tenant, and this Lease
as so amended shall continue in full force and effect. In the event Tenant is
allowed to assign, transfer or sublet the whole or any part of the Premises,
with the prior written consent of Landlord, no assignee, transferee or subtenant
shall assign or transfer this Lease, either in whole or in part, or sublet the
whole or any part of the Premises, without also having obtained the prior
written consent of Landlord. A consent of Landlord to one assignment, transfer,
hypothecation, subletting, occupation or use by any other person shall not
release Tenant from any of Tenant's obligations hereunder or be deemed to be a
consent to any subsequent similar or dissimilar assignment, transfer,
hypothecation, subletting, occupation or use by any other person. Any such
assignment, transfer, hypothecation, subletting, occupation or use without such
consent shall be void and shall constitute a breach of this Lease by Tenant and
shall, at the option of Landlord exercised by written notice to Tenant,
terminate this Lease. The leasehold estate under this Lease shall not, nor shall
any interest therein, be assignable for any purpose by operation of law without
the written consent of Landlord. As a condition to its consent, Landlord shall
require Tenant to pay all expenses in connection with the sublease and/or
assignment, and Landlord shall require Tenant's subtenant, assignee or
transferee (or other assignees or transferees) to assume in writing all of the
obligations under this Lease and for Tenant to remain liable to Landlord under
the Lease. Notwithstanding the above, in no event shall Landlord consent to a
sub-sublease.
	Notwithstanding the foregoing, Landlord and Tenant agree that it shall not
be unreasonable for Landlord to refuse to consent to a proposed assignment,
sublease or other transfer ("Proposed Transfer") if the Premises or any other
portion of the Property would become subject to additional or different
Government Requirements as a direct or indirect consequence of the Proposed
Transfer and/or the Proposed Transferee's use and occupancy of the Premises and
the Property. However, Landlord may, in its sole discretion, consent to such a
Proposed Transfer where Landlord is indemnified by Tenant and (i) Subtenant or
(ii) Assignee, in form and substance satisfactory to Landlord's counsel, by
Tenant and/or Proposed Transferee from and against any and all costs, expenses,
obligations and liability arising out of the Proposed Transfer and/or the
Proposed Transferee's use and occupancy of the Premises and the Property. 
	Any and all sublease agreement(s) between Tenant and any and all
subtenant(s) (which agreements must be consented to by Landlord, pursuant to the
requirements of this Lease) shall contain the following language:

"If Landlord and Tenant jointly and voluntarily elect, for any reason
whatsoever, to terminate the Master Lease prior to the scheduled Master Lease
termination date, then this Sublease (if then still in effect) shall terminate
concurrently with the termination of the Master Lease. Subtenant expressly
acknowledges and agrees that (1) the voluntary termination of the Master Lease
by Landlord and Tenant and the resulting termination of this Sublease shall not
give Subtenant any right or power to make any legal or equitable claim against
Landlord, including without limitation any claim for interference with contract
or interference with prospective economic advantage, and (2) Subtenant hereby
waives any and all rights it may have under law or at equity against Landlord to
challenge such an early termination of the Sublease, and unconditionally
releases and relieves Landlord, and its officers, directors, employees and
agents, from any and all claims, demands, and/or causes of action whatsoever
(collectively, "Claims"), whether such matters are known or unknown, latent or
apparent, suspected or unsuspected, foreseeable or unforeseeable, which
Subtenant may have arising out of or in connection with any such early
termination of this Sublease. Subtenant knowingly and intentionally waives any
and all protection which is or may be given by Section 1542 of the California
Civil Code which provides as follows: "A general release does not extend to
claims which the creditor does not know or suspect to exist in his favor at the
time of executing the release, which if known by him must have materially
affected his settlement with debtor.

The term of this Sublease is therefore subject to early termination.
Subtenant's initials here below evidence (a) Subtenant's consideration of and
agreement to this early termination provision, (b) Subtenant's acknowledgment
that, in determining the net benefits to be derived by Subtenant under the terms
of this Sublease, Subtenant has anticipated the potential for early termination,
and (c) Subtenant's agreement to the general waiver and release of Claims
above.

 

Initials: _________Initials: _________"

SubtenantTenant

 

 

	SUBORDINATION AND MORTGAGES. In the event Landlord's title or
leasehold interest is now or hereafter encumbered by a deed of trust, upon the
interest of Landlord in the land and buildings in which the demised Premises are
located, to secure a loan from a lender (hereinafter referred to as "Lender") to
Landlord, Tenant shall, at the request of Landlord or Lender, execute in writing
an agreement (in form reasonably acceptable to Tenant), subordinating its rights
under this Lease to the lien of such deed of trust, or, if so requested,
agreeing that the lien of Lender's deed of trust shall be or remain subject and
subordinate to the rights of Tenant under this Lease. Notwithstanding any such
subordination, Tenant's possession under this Lease shall not be disturbed if
Tenant is not in default and so long as Tenant shall pay all Rent and observe
and perform all of the provisions set forth in this Lease and any subordination
agreement shall reflect the agreement of the Lender to the same. 

	ENTRY BY LANDLORD. Landlord reserves, and shall at all
reasonable times after at least twenty four (24) hours notice (except in
emergencies) have the right to enter the Premises to inspect them; to perform
any services to be provided by Landlord hereunder; to make repairs or provide
any services to a contiguous tenant(s) (if any); to submit the Premises to
prospective purchasers, mortgagers or tenants; to post notices of non-
responsibility; and to alter, improve or repair the Premises or other parts of
the building, all without abatement of Rent, and may erect scaffolding and other
necessary structures in or through the Premises where reasonably required by the
character of the work to be performed; provided, however that the business of
Tenant shall be interfered with to the least extent that is reasonably
practical. Any entry to the Premises by Landlord for the purposes provided for
herein shall not under any circumstances be construed or deemed to be a forcible
or unlawful entry into or a detainer of the Premises or an eviction, actual or
constructive, of Tenant from the Premises or any portion thereof.

	BANKRUPTCY AND DEFAULT. The commencement of a bankruptcy
action or liquidation action or reorganization action or insolvency action or an
assignment of or by Tenant for the benefit of creditors, or any similar action
undertaken by Tenant, or the insolvency of Tenant, shall, at Landlord's option,
constitute a breach of this Lease by Tenant. If the trustee or receiver
appointed to serve during a bankruptcy, liquidation, reorganization, insolvency
or similar action elects to reject Tenant's unexpired Lease, the trustee or
receiver shall notify Landlord in writing of its election within thirty (30 days
after an order for relief in a liquidation action or within thirty (30) days
after the commencement of any action.

Within thirty (30) days after the court approval of the assumption of this
Lease, the trustee or receiver shall cure (or provide adequate assurance to the
reasonable satisfaction of Landlord that the trustee or receiver shall cure) any
and all previous defaults under the unexpired Lease and shall compensate
Landlord for all actual pecuniary loss and shall provide adequate assurance of
future performance under said Lease to the reasonable satisfaction of Landlord.
Adequate assurance of future performance, as used herein, includes, but shall
not be limited to: (i) assurance of source and payment of Rent, and other
consideration due under this Lease; (ii) assurance that the assumption or
assignment of this Lease will not breach substantially any provision, such as
radius, location, use, or exclusivity provision, in any agreement relating to
the above described Premises.

Nothing contained in this section shall affect the existing right of Landlord
to refuse to accept an assignment upon commencement of or in connection with a
bankruptcy, liquidation, reorganization or insolvency action or an assignment of
Tenant for the benefit of creditors or other similar act. Nothing contained in
this Lease shall be construed as giving or granting or creating an equity in the
demised Premises to Tenant. In no event shall the leasehold estate under this
Lease, or any interest therein, be assigned by voluntary or involuntary
bankruptcy proceeding without the prior written consent of Landlord. In no event
shall this Lease or any rights or privileges hereunder be an asset of Tenant
under any bankruptcy, insolvency or reorganization proceedings.

The failure to perform or honor any covenant, condition or representation
made under this Lease shall constitute a default under this Lease by Tenant upon
expiration of the appropriate grace period hereinafter provided. Tenant shall
have a period of five (5) days from the date of written notice from Landlord
within which to cure any default in the payment of Rent or adjustment thereto.
Tenant shall have a period of thirty (30) days from the date of written notice
from Landlord within which to cure any other non-monetary default under this
Lease; provided, however, that with respect to non-monetary defaults not
involving Tenant's failure to pay Basic Rent or Additional Rent, Tenant shall
not be in default if (i) more than thirty (30) days is required to cure such
non-monetary default and (ii) Tenant commences cure of such default as soon as
reasonably practicable after receiving written notice of such default from
Landlord and thereafter continuously and with due diligence prosecutes such cure
to completion. Upon an uncured default of this Lease by Tenant, Landlord shall
have the following rights and remedies in addition to any other rights or
remedies available to Landlord at law or in equity:

	The rights and remedies provided for by California Civil Code Section 1951.2
including but not limited to, recovery of 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 rental loss for the same period that Tenant proves
could be reasonably avoided, as computed pursuant to subsection (b) of said
Section 1951.2. Any proof by Tenant under subparagraphs (2) and (3) of Section
1951.2 of the California Civil Code of the amount of rental loss that could be
reasonably avoided shall be made in the following manner: Landlord and Tenant
shall each select a licensed real estate broker in the business of renting
property of the same type and use as the Premises and in the same geographic
vicinity. Such two real estate brokers shall select a third licensed real estate
broker, and the three licensed real estate brokers so selected shall determine
the amount of the Rent loss that could be reasonably avoided from the balance of
the Term of this Lease after the time of award. The decision of the majority of
said licensed real estate brokers shall be final and binding upon the parties
hereto.
	The rights and remedies provided by California Civil Code Section which
allows Landlord to continue the Lease in effect and to enforce all of its rights
and remedies under this Lease, including the right to recover Rent as it becomes
due, for so long as Landlord does not terminate Tenant's right to possession;
acts of maintenance or preservation, efforts to relet the Premises, or the
appointment of a receiver upon Landlord's initiative to protect its interest
under this Lease shall not constitute a termination of Tenant's right to
possession.

	The right to recover that portion of any leasing
commission paid by Lessor in connection with this Lease applicable to the
unexpired Term of this Lease.
	The right to terminate this Lease by giving notice to Tenant in
accordance with applicable law.
	To the extent permitted by law, the right and power to enter the Premises
and remove therefrom all persons and property, to store such property in a
public warehouse or elsewhere at the cost of and for the account of Tenant, and
to sell such property and apply such proceeds therefrom pursuant to applicable
California law. Landlord may from time to time sublet the Premises or any part
thereof for such term or terms (which may extend beyond the Term of this Lease)
and at such Rent and such other terms as Landlord in its reasonable sole
discretion may deem advisable, with the right to make alterations and repairs to
the Premises. Upon each subletting, (i) Tenant shall be immediately liable to
pay Landlord, in addition to indebtedness other than Rent due hereunder, the
reasonable cost of such subletting, including, but not limited to, reasonable
attorneys' fees, and any real estate commissions actually paid, and the cost of
such reasonable alterations and repairs incurred by Landlord and the amount, if
any, by which the Rent hereunder for the period of such subletting (to the
extent such period does not exceed the Term hereof) exceeds the amount to be
paid as Rent for the Premises for such period or (ii) at the option of Landlord,
rents received from such subletting shall be applied first to payment of
indebtedness other than Rent due hereunder from Tenant to Landlord; second, to
the payment of any costs of such subletting and of such alterations and repairs;
third, to payment of Rent due and unpaid hereunder; and the residue, if any,
shall be held by Landlord and applied in payment of future Rent as the same
becomes due hereunder. If Tenant has been credited with any Rent to be received
by such subletting under option (i) and such Rent shall not be promptly paid to
Landlord by the subtenant(s), or if such rentals received from such subletting
under option (ii) during any month be less than that to be paid during the month
by Tenant hereunder, Tenant shall pay any such deficiency to Landlord. Such
deficiency shall be calculated and paid monthly. No taking possession of the
Premises by Landlord shall be construed as an election on its part to terminate
this Lease unless a written notice of such intention be given to Tenant.
Notwithstanding any such subletting without termination, Landlord may at any
time hereafter elect to terminate this Lease for such previous breach.
	The right to have a receiver appointed for Tenant upon application by
Landlord, to take possession of the Premises and to apply any rental collected
from the Premises and to exercise all other rights and remedies granted to
Landlord pursuant to subparagraph (e) above.

	ABANDONMENT. Tenant shall not vacate or abandon the Premises
at any time during the Term of this Lease and if Tenant shall abandon, vacate or
surrender said Premises, or be dispossessed by the process of law, or otherwise,
any personal property belonging to Tenant and left on the Premises shall be
deemed to be abandoned, at the option of Landlord, except such property as may
be mortgaged to Landlord. Notwithstanding the above, Tenant shall not be in
default under the Lease if it leaves all or any part of Premises vacant so long
as (i) Tenant is performing all of its other obligations under the Lease
including the obligation to pay Rent (ii) Tenant provides on-site security
during normal business hours for those parts of the Premises left vacant, (iii)
such vacancy does not materially and adversely affect the validity or coverage
of any policy of insurance carried by Landlord with respect to the Premises, and
(iv) the utilities and heating and ventilation systems are operated and
maintained to the extent necessary to prevent damage to the Premises or its
systems. 

	DESTRUCTION. In the event the Premises are destroyed in whole
or in part from any cause, except for routine maintenance and repairs and
incidental damage and destruction caused from vandalism and accidents for which
Tenant is responsible under Paragraph 10, Landlord may, at its option:

(a)Rebuild or restore the Premises to their condition prior to the damage
or destruction, or

(b)Terminate this Lease (providing that the Premises is damaged to the
extent of 33 1/3% or more of the replacement cost, exclusive of footings,
foundations and floor slabs).

If Landlord does not give Tenant notice in writing within thirty (30) days
from the destruction of the Premises of its election to either rebuild and
restore them, or to terminate this Lease, Landlord shall be deemed to have
elected to rebuild or restore them, in which event Landlord agrees, at its
expense except for any deductible, which is the responsibility of the Tenant,
promptly to rebuild or restore the Premises to their condition prior to the
damage or destruction. Tenant shall be entitled to a reduction in Rent from the
date of such damage or destruction, provided Tenant is not using any portion of
such damaged area, while such repair is being made in the proportion that the
area of the Premises rendered untenantable by such damage bears to the total
area of the Premises. If Landlord initially estimates that the rebuilding or
restoration will exceed 180 days or if Landlord does not complete the rebuilding
or restoration within one hundred eighty (180) days following the date of
destruction (such period of time to be extended for delays caused by the fault
or neglect of Tenant or because of Acts of God, acts of public agencies, labor
disputes, strikes, fires, freight embargos, rainy or stormy weather, inability
to obtain materials, supplies or fuels, acts of contractors or subcontractors,
or delay of the contractors or subcontractors due to such causes or other
contingencies beyond the control of Landlord), then Tenant shall have the right
to terminate this Lease by giving written notice to Landlord within five days
following the date Tenant receives Landlord's written notice stating that the
restoration will exceed 180 days. Regardless of whether Landlord and/or Tenant
elects to terminate the Lease early as provided herein, Tenant shall remain
liable for the insurance deductible as it relates to the Leased Premises.
Notwithstanding anything herein to the contrary, Landlord's obligation to
rebuild or restore shall be limited to the building and interior improvements
constructed by Landlord as they existed as of the Commencement Date of the Lease
and shall not include restoration of Tenant's trade fixtures, equipment,
merchandise, or any improvements, alterations or additions made by Tenant to the
Premises, which Tenant shall forthwith replace or fully repair at Tenant's sole
cost and expense provided this Lease is not canceled according to the provisions
above.

Unless this Lease is terminated pursuant to the foregoing provisions, this
Lease shall remain in full force and effect. Tenant hereby expressly waives the
provision of Section 1932, Subdivision 2, in Section 1933, Subdivision 4 of the
California Civil Code.

In any event that the building in which the Premises are situated is damaged
or destroyed to the extent of not less than 33 1/3% of the replacement cost
thereof, Landlord may elect to terminate this Lease, whether the Premises be
injured or not. Notwithstanding anything to the contrary herein, Landlord may
terminate this lease in the event of an uninsured event or if insurance proceeds
are insufficient to cover one hundred percent of the rebuilding costs net of the
deductible.

	EMINENT DOMAIN. If all or any part of the Premises shall be
taken by any public or quasi-public authority under the power of eminent domain
or conveyance in lieu thereof, this Lease shall terminate as to any portion of
the Premises so taken or conveyed on the date when title vests in the condemnor,
and Landlord shall be entitled to any and all payment, income, rent, award, or
any interest therein whatsoever which may be paid or made in connection with
such taking or conveyance, and Tenant shall have no claim against Landlord or
otherwise for the value of any unexpired Term of this Lease. Notwithstanding the
foregoing sentence, any compensation specifically awarded Tenant for loss of
business, Tenant's personal property, moving costs or loss of goodwill, shall be
and remain the property of Tenant.

If any action or proceeding is commenced for such taking of the Premises or
any part thereof, or if Landlord is advised in writing by any entity or body
having the right or power of condemnation of its intention to condemn the
Premises or any part thereof, then Landlord shall have the right to terminate
this Lease by giving Tenant written notice thereof within sixty (60) days of the
date of receipt of said written advice, or commencement of said action or
proceeding, or taking conveyance, which termination shall take place as of the
first to occur of the last day of the calendar month next following the month in
which such notice is given or the date on which title to the Premises shall vest
in the condemnor.

In the event of such a partial taking or conveyance of the Premises, if the
portion of the Premises taken or conveyed is so substantial that the Tenant can
no longer reasonably conduct its business, Tenant shall have the privilege of
terminating this Lease within sixty (60) days from the date of such taking or
conveyance, upon written notice to the Landlord of its intention so to do, and
upon giving of such notice this Lease shall terminate on the last day of the
calendar month next following the month in which such notice is given, upon
payment by Tenant of the Rent from the date of such taking or conveyance to the
date of termination.

If a portion of the Premises be taken by condemnation or conveyance in lieu
thereof and neither Landlord nor Tenant shall terminate this Lease as provided
herein, this Lease shall continue in full force and effect as to the part of the
Premises not so taken or conveyed, and the Rent herein shall be apportioned as
of the date of such taking or conveyance so that thereafter the Rent to be paid
by Tenant shall be in the ratio that the area of the portion of the Premises not
so taken or conveyed bears to the total area of the Premises prior to such
taking.

	SALE OR CONVEYANCE BY LANDLORD. In the event of a sale or
conveyance of the Premises or any interest therein, by any owner of the
reversion then constituting Landlord, the transferor shall thereby be released
from any further liability upon any of the terms, covenants or conditions
(express or implied) herein contained in favor of Tenant, and in such event,
insofar as such transfer is concerned, Tenant agrees to look solely to the
responsibility of the successor in interest of such transferor in and to the
Premises and this Lease. This Lease shall not be affected by any such sale or
conveyance, and Tenant agrees to attorn to the successor in interest of such
transferor. 

	ATTORNMENT TO LENDER OR THIRD PARTY. In the event the interest
of Landlord in the land and buildings in which the Leased Premises are located
(whether such interest of Landlord is a fee title interest or a leasehold
interest) is encumbered by deed of trust, and such interest is acquired by the
lender or any third party through judicial foreclosure or by exercise of a power
of sale at private trustee's foreclosure sale, Tenant hereby agrees to attorn to
the purchaser at any such judicial foreclosure or foreclosure sale and to
recognize such purchaser as the Landlord under this Lease. In the event the lien
of the deed of trust securing the loan from a Lender to Landlord is prior and
paramount to the Lease, this Lease shall nonetheless continue in full force and
effect for the remainder of the unexpired Term hereof, at the same rental herein
reserved and upon all the other terms, conditions and covenants herein
contained.

	HOLDING OVER. Any holding over by Tenant after expiration or
other termination of the Term of this Lease with the written consent of Landlord
delivered to Tenant shall not constitute a renewal or extension of the Lease or
give Tenant any rights in or to the Leased Premises except as expressly provided
in this Lease. Any holding over after the expiration or other termination of the
Term of this Lease, with the consent of Landlord, shall be construed to be a
tenancy from month to month, on the same terms and conditions herein specified
insofar as applicable except that the monthly Basic Rent shall be increased to
an amount equal to two hundred (200%) percent of the monthly Basic Rent required
during the last month of the Lease term; provided, however, that the monthly
Rent shall be prorated based on the actual number of days in the month for any
partial month of the holding over.

	CERTIFICATE OF ESTOPPEL. Tenant shall at any time within ten
(10) days of receipt of notice from Landlord execute, acknowledge and deliver to
Landlord a statement in writing (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) and the date to which the Rent and other charges are paid in
advance, if any, and (ii) acknowledging that there are not, to Tenant's
knowledge, any uncured defaults on the part of Landlord hereunder, or specifying
such defaults, if any, are claimed. Any such statement may be conclusively
relied upon by any prospective purchaser or encumbrancer of the Premises.
Tenant's failure to deliver such statement within such time shall be conclusive
upon Tenant that this Lease is in full force and effect, without modification
except as may be represented by Landlord; that there are no uncured defaults in
Landlord's performance, and that not more than one month's Rent has been paid in
advance.

	CONSTRUCTION CHANGES. It is understood that the description of
the Premises and the location of ductwork, plumbing and other facilities therein
are subject to such minor changes as Landlord or Landlord's architect determines
to be desirable in the course of construction of the Premises, and no such
changes shall affect this Lease or entitle Tenant to any reduction of Rent
hereunder or result in any liability of Landlord to Tenant. Landlord does not
guarantee the accuracy of any drawings supplied to Tenant and verification of
the accuracy of such drawings rests with Tenant.

	RIGHT OF LANDLORD TO PERFORM. All terms, covenants and
conditions of this Lease to be performed or observed by Tenant shall be
performed or observed by Tenant at Tenant's sole cost and expense and without
any reduction of rent. If Tenant shall fail to pay any sum of money, or other
Rent, required to be paid by it hereunder and such failure shall continue for
five (5) days after written notice thereof by Landlord or shall fail to perform
any other term of covenant hereunder on its part to be performed, and such
failure shall continue for thirty (30) days after written notice thereof by
Landlord (or such longer grace period as shall be provided under Paragraph 24),
Landlord, without waiving or releasing Tenant from any obligation of Tenant
hereunder, may, but shall not be obliged to, make any such payment or perform
any such other term or covenant on Tenant's part to be performed. All sums so
paid by Landlord and all necessary costs of such performance by Landlord
together with interest thereon at the rate of the prime rate of interest per
annum as quoted by the Bank of America from the date of such payment or
performance by Landlord, shall be paid (and Tenant covenants to make such
payment) to Landlord within five (5) business days after demand by Landlord, and
Landlord shall have (in addition to any other right or remedy of Landlord) the
same rights and remedies in the event of nonpayment by Tenant as in the case of
failure by Tenant in the payment of Rent hereunder.

 

	ATTORNEYS' FEES.

	In the event that Landlord should bring suit for the possession of the
Premises, for the recovery of any sum due under this Lease, or because of the
breach of any provision of this Lease, or for any other relief against Tenant
hereunder, then all costs and expenses, including reasonable attorneys' fees,
incurred by Landlord therein shall be paid by Tenant, which obligation on the
part of Tenant shall be deemed to have accrued on the date of the commencement
of such action and shall be enforceable whether or not the action is prosecuted
to judgment.
	Should Landlord be named as a defendant in any suit brought against Tenant
in connection with or arising out of Tenant's occupancy hereunder, Tenant shall
pay to Landlord its costs and expenses incurred in such suit, including
reasonable attorney's fees.

	WAIVER. The waiver by either party of the other party's
failure to perform or observe any term, covenant or condition herein contained
to be performed or observed by such waiving party shall not be deemed to be a
waiver of such term, covenant or condition or of any subsequent failure of the
party failing to perform or observe the same or any other such term, covenant or
condition therein contained, and no custom or practice which may develop between
the parties hereto during the Term hereof shall be deemed a waiver of, or in any
way affect, the right of either party to insist upon performance and observance
by the other party in strict accordance with the terms hereof.

	NOTICES. All notices, demands, requests, advices or
designations which may be or are required to be given by either party to the
other hereunder shall be in writing. All notices, demands, requests, advices or
designations by Landlord to Tenant shall be sufficiently given, made or
delivered if personally served on Tenant by leaving the same at the Premises or
if sent by United States certified or registered mail, postage prepaid or by a
reputable same day or overnight courier service addressed to Tenant at: 34801
CAMPUS DRIVE, FREMONT, CA 94555. All notices, demands, requests, advices or
designations by Tenant to Landlord shall be sent by United States certified or
registered mail, postage prepaid, addressed to Landlord at its offices at:
PEERY/ARRILLAGA, 2560 MISSION COLLEGE BLVD., SUITE 101, SANTA CLARA, CA
95054. Each notice, request, demand, advice or designation referred to in
this Paragraph shall be deemed received on the date of the personal service or
receipt or refusal to accept receipt of the mailing thereof in the manner herein
provided, as the case may be. Either party shall have the right, upon ten (10)
days written notice to the other, to change the address as noted herein;
however, Landlord shall send Tenant notices to only one address .

	EXAMINATION OF LEASE. Submission of this instrument for
examination or signature by Tenant does not constitute a reservation of or
option for a lease, and this instrument is not effective as a lease or otherwise
until its execution and delivery by both Landlord and Tenant.

	DEFAULT BY LANDLORD. Landlord shall not be in default unless
Landlord fails to perform obligations required of Landlord within a reasonable
time, but in no event earlier than (30) days after written notice by Tenant to
Landlord and to the holder of any first mortgage or deed of trust covering the
Premises whose name and address shall have heretofore been furnished to Tenant
in writing, specifying wherein Landlord has failed to perform such obligations;
provided, however, that if the nature of Landlord's obligations is such that
more than thirty (30) days are required for performance, then Landlord shall not
be in default if Landlord commences performance within such thirty (30) day
period and thereafter diligently prosecutes the same to completion.

	CORPORATE AUTHORITY. If Tenant is a corporation (or a
partnership), each individual executing this Lease on behalf of said corporation
(or partnership) represents and warrants that he is duly authorized to execute
and deliver this Lease on behalf of said corporation (or partnership) in
accordance with the by-laws of said corporation (or partnership in accordance
with the partnership agreement) and that this Lease is binding upon said
corporation (or partnership) in accordance with its terms. If Tenant is a
corporation, Tenant shall, within thirty (30) days after execution of this
Lease, deliver to Landlord a certified copy of the resolution of the Board of
Directors of said corporation authorizing or ratifying the specific execution of
this Lease by the individual executing said Lease. In lieu of said corporate
resolution, Tenant may provide Landlord with an outside legal opinion stating
that the party executing this Lease on behalf of Tenant is authorized to do so
by the Board of Directors.

 

	LIMITATION OF LIABILITY. In consideration of the benefits
accruing hereunder, Tenant and all successors and assigns covenant and agree
that, in the event of any actual or alleged failure, breach or default hereunder
by Landlord:

(a)the sole and exclusive remedy shall be against Landlord's interest in
the Premises leased herein;

(b)no partner of Landlord shall be sued or named as a party in any suit
or action (except as may be necessary to secure jurisdiction of the
partnership);

(c)no service of process shall be made against any partner of Landlord
(except as may be necessary to secure jurisdiction of the partnership);

(d)no partner of Landlord shall be required to answer or otherwise plead
to any service of process;

(e)no judgment will be taken against any partner of Landlord;

(f)any judgment taken against any partner of Landlord may be vacated and
set aside at any time without hearing;

(g)no writ of execution will ever be levied against the assets of any
partner of Landlord;

(h)these covenants and agreements are enforceable both by Landlord and
also by any partner of Landlord.

Tenant agrees that each of the foregoing covenants and agreements shall be
applicable to any covenant or agreement either expressly contained in this Lease
or imposed by statute or at common law.

	SIGNS. No sign, placard, picture, advertisement, name or
notice shall be inscribed, displayed or printed or affixed on or to any part of
the outside of the Building or any exterior windows of the Building without the
written consent of Landlord first had and obtained and Landlord shall have the
right to remove any such sign, placard, picture, advertisement, name or notice
without notice to Tenant and at the expense of Tenant. If Tenant is allowed to
print or affix or in any way place a sign in, on, or about the Premises, upon
expiration or other sooner termination of this Lease, Tenant at Tenant's sole
cost and expense shall both remove such sign and repair all damage in such a
manner as to restore all aspects of the appearance of the Premises to the
condition prior to the placement of said sign.

All approved signs or lettering on outside shall be printed, painted, affixed
or inscribed at the expense of Tenant by a person approved of by Landlord.

Tenant shall not place anything or allow anything to be placed near the glass
of any window, door partition or wall which may appear unsightly from outside
the Premises.

	CONSENT. Whenever the consent of one party to the other is
required hereunder, such consent shall not be unreasonably withheld.

	AUTHORITY TO EXECUTE. The parties executing this Lease
Agreement hereby warrant and represent that they are properly authorized to
execute this Lease Agreement and bind the parties on behalf of whom they execute
this Lease Agreement and to all of the terms, covenants and conditions of this
Lease Agreement as they relate to the respective parties hereto.

	HAZARDOUS MATERIALS. Landlord and Tenant agree as follows with
respect to the existence or use of "Hazardous Materials" (as defined herein) on,
in, under or about the Premises and real property located beneath said Premises
and the Common Areas of the Parcel, which includes the entire parcel of land on
which the Premises are located as shown in Green on Exhibit A attached
hereto (hereinafter collectively referred to as the "Property"):

A.As used herein, the term "Hazardous Materials" shall mean any material,
waste, chemical, mixture or byproduct which is or hereafter is defined, listed
or designated under Environmental Laws (defined below) as a pollutant, or as a
contaminant, or as a toxic or hazardous substance, waste or material, or any
other unwholesome, hazardous, toxic, biohazardous, or radioactive material,
waste, chemical, mixture or byproduct, or which is listed, regulated or
restricted by any Environmental Law (including, without limitation, petroleum
hydrocarbons or any distillates or derivatives or fractions thereof,
polychlorinated biphenyls, or asbestos). As used herein, the term "Environmental
Laws" shall mean any applicable Federal, State of California or local government
law (including common law), statute, regulation, rule, ordinance, permit,
license, order, requirement, agreement, or approval, or any determination,
judgment, directive, or order of any executive or judicial authority at any
level of Federal, State of California or local government (whether now existing
or subsequently adopted or promulgated) relating to pollution or the protection
of the environment, ecology, natural resources, or public health and safety.

B.Tenant shall obtain Landlord's written consent, which may be withheld
in Landlord's discretion, prior to the occurrence of any Tenant's Hazardous
Materials Activities (defined below); provided, however, that Landlord's consent
shall not be required for normal use in compliance with applicable Environmental
Laws of customary household and office supplies (Tenant shall first provide
Landlord with a list of said materials use), such as mild cleaners, lubricants
and copier toner. As used herein, the term "Tenant's Hazardous Materials
Activities" shall mean any and all use, handling, generation, storage, disposal,
treatment, transportation, release, discharge, or emission of any Hazardous
Materials on, in, beneath, to, from, at or about the Property, in connection
with Tenant's use of the Property, or by Tenant or by any of Tenant's agents,
employees, contractors, vendors, invitees, visitors or its future subtenants or
assignees. Tenant agrees that any and all Tenant's Hazardous Materials
Activities shall be conducted in strict, full compliance with applicable
Environmental Laws at Tenant's expense, and shall not result in any
contamination of the Property or the environment. Tenant shall not discharge any
Hazardous Materials in the plumbing, sewer and/or storm drains in the Premises
and/or Parcel. Tenant agrees to provide Landlord with prompt written notice of
any spill or release of Hazardous Materials at the Property during the term of
the Lease of which Tenant becomes aware, and further agrees to provide Landlord
with prompt written notice of any violation of Environmental Laws in connection
with Tenant's Hazardous Materials Activities of which Tenant becomes aware. If
Tenant's Hazardous Materials Activities involve Hazardous Materials other than
normal use of customary household and office supplies, Tenant also agrees at
Tenant's expense: (i) to install such Hazardous Materials monitoring, storage
and containment devices as Landlord reasonably deems necessary (Landlord shall
have no obligation to evaluate the need for any such installation or to require
any such installation); (ii) provide Landlord with a written inventory of such
Hazardous Materials, including an update of same each year upon the anniversary
date of the Commencement Date of the Lease ("Anniversary Date"); and (iii) on
each Anniversary Date, to retain a qualified environmental consultant,
acceptable to Landlord, to evaluate whether Tenant is in compliance with all
applicable Environmental Laws with respect to Tenant's Hazardous Materials
Activities. Tenant, at its expense, shall submit to Landlord a report from such
environmental consultant which discusses the environmental consultant's findings
within two (2) months of each Anniversary Date. Tenant, at its expense, shall
promptly undertake and complete any and all steps necessary, and in full
compliance with applicable Environmental Laws, to fully correct any and all
problems or deficiencies identified by the environmental consultant, and
promptly provide Landlord with documentation of all such corrections.

C.Prior to termination or expiration of the Lease, Tenant, at its
expense, shall (i) properly remove from the Property all Hazardous
Materials which come to be located at the Property in connection with Tenant's
Hazardous Materials Activities, and (ii) fully comply with and complete all
facility closure requirements of applicable Environmental Laws regarding
Tenant's Hazardous Materials Activities, including but not limited to (x)
properly restoring and repairing the Property to the extent damaged by such
closure activities, and (y) obtaining from the local Fire Department or other
appropriate governmental authority with jurisdiction a written concurrence that
closure has been completed in compliance with applicable Environmental Laws.
Tenant shall promptly provide Landlord with copies of any claims, notices, work
plans, data and reports prepared, received or submitted in connection with any
such closure activities.

D.If Landlord, in its sole discretion, believes that the Property has
become contaminated as a result of Tenant's Hazardous Materials Activities,
Landlord in addition to any other rights it may have under this Lease or under
Environmental Laws or other laws, may enter upon the Property and conduct
inspection, sampling and analysis, including but not limited to obtaining and
analyzing samples of soil and groundwater, for the purpose of determining the
nature and extent of such contamination. Tenant shall promptly reimburse
Landlord for the costs of such an investigation, including but not limited to
reasonable attorneys' fees Landlord incurs with respect to such investigation,
that discloses Hazardous Materials contamination for which Tenant is liable
under this Lease. Notwithstanding the above, Landlord may, at its option and in
its sole and absolute discretion, choose to perform remediation and obtain
reimbursement for cleanup costs as set forth herein from Tenant. Any cleanup
costs incurred by Landlord as the result of Tenant's Hazardous Materials
Activities shall be reimbursed by Tenant within thirty (30) days of presentation
of written documentation of the expense to Tenant by Landlord. Such reimbursable
costs shall include, but not be limited to, any reasonable consultant and
attorney fees incurred by Landlord. Tenant shall take all actions necessary to
preserve any claims it has against third parties, including, but not limited to,
its insurers, for claims related to its operation, management of Hazardous
Materials or contamination of the Property. Except as may be required of Tenant
by applicable Environmental Laws, Tenant shall not perform any sampling,
testing, or drilling to identify the presence of any Hazardous Materials at the
Property, without Landlord's prior written consent which may be withheld in
Landlord's discretion. Tenant shall promptly provide Landlord with copies of any
claims, notices, work plans, data and reports prepared, received or submitted in
connection with any sampling, testing or drilling performed pursuant to the
preceding sentence.

E.Tenant shall indemnify, defend (with legal counsel acceptable to
Landlord, whose consent shall not unreasonably be withheld) and hold harmless
Landlord, its employees, assigns, successors, successors-in-interest, agents and
representatives from and against any and all claims (including but not limited
to third party claims from a private party or a government authority),
liabilities, obligations, losses, causes of action, demands, governmental
proceedings or directives, fines, penalties, expenses, costs (including but not
limited to reasonable attorneys', consultants' and other experts' fees and
costs), and damages, which arise from or relate to: (i) Tenant's Hazardous
Materials Activities; (ii) any Hazardous Materials contamination caused by
Tenant prior to the Commencement Date of the Lease; or (iii) the breach of any
obligation of Tenant under this Paragraph 44 (collectively, "Tenant's
Environmental Indemnification"). Tenant's Environmental Indemnification shall
include but is not limited to the obligation to promptly and fully reimburse
Landlord for losses in or reductions to rental income, and diminution in fair
market value of the Property. Tenant's Environmental Indemnification shall
further include but is not limited to the obligation to diligently and properly
implement to completion, at Tenant's expense, any and all environmental
investigation, removal, remediation, monitoring, reporting, closure activities,
or other environmental response action (collectively, "Response Actions").
Tenant shall promptly provide Landlord with copies of any claims, notices, work
plans, data and reports prepared, received or submitted in connection with any
Response Actions.

As evidenced by their initials set forth immediately
below, Tenant acknowledges that Landlord has provided Tenant with copies of the
environmental reports listed on Exhibit C ("Reports"), and Tenant
acknowledges that Tenant and Tenant's experts (if any) have had ample
opportunity to review such reports and that Tenant has satisfied itself as to
the environmental conditions of the Property and the suitability of such
conditions for Tenant's intended use of the Property. To the best of Landlord's
knowledge as of the date of this Lease, except as noted in said Reports, no
additional on site Hazardous Materials contamination exist on the Property;
however, Landlord shall have no obligation to further investigate. 

Initial:____________Initial:_____________

TenantLandlord

It is agreed that the Tenant's responsibilities related to Hazardous
Materials will survive the expiration or termination of this Lease and that
Landlord may obtain specific performance of Tenant's responsibilities under this
Paragraph 44.

 

	BROKERS. Tenant represents and warrants
that it has not dealt with any real estate brokers, agents, or finders in
connection with the original Term of this Lease, and knows of no real estate
broker, agent or finder who is entitled to a commission in connection with this
Lease, except as follows: Randy Scott of Cornish & Carey Oncor International
("Cornish & Carey"), whose commission shall be paid by Landlord in
accordance with Landlord's standard commission policy and schedule ("Lease
Commission"). Tenant agrees to defend, protect, indemnify and hold Landlord
harmless from and against all claims for brokerage commissions, finder's fees,
and other compensation made by any other broker, agent, or finder as consequence
of the Tenant's actions or dealings with such other broker, agent or finder. The
parties hereto acknowledge that Landlord will not pay an additional Lease
Commission to Randy Scott, Cornish & Carey or to any broker in the event the
original Term of this Lease is extended or the square footage leased hereunder
is increased for any reason whatsoever.

In the event this Lease is terminated early, for any reason whatsoever
(excluding, however a termination resulting from Paragraphs 26 ("Destruction")
or 27 ("Eminent Domain"), Tenant agrees to reimburse Landlord for one hundred
percent (100%) of the balance of the unamortized Lease Commission previously
paid by Landlord, that is outstanding as of the early Lease Termination Date.
Said amount shall be paid by Tenant to Landlord by the Lease Termination Date,
and/or Landlord may, at its option, deduct part or all of said unamortized Lease
Commission from Tenant's Security Deposit.

 

	ASSOCIATION DUES: The Premises leased
hereunder is part of the Ardenwood Property Owner's Association (the
"Association"), and is subject to Association Dues to fund the cost of the
Association's obligations and expenses as authorized under said Agreement. As of
the date of this Lease, Tenant's current prorata share of the Association Dues
is currently estimated at $9.89 per month and is subject to adjustment as
provided for by said Association. Said Association Dues are payable by Tenant to
Landlord as Additional Rent on a monthly basis throughout the Term of this
Lease. Tenant understands that it will not be a direct member of the
Association.

 

	MISCELLANEOUS AND GENERAL PROVISIONS.

	Use of Building Name. Tenant shall not, without the written consent
of Landlord, use the name of the building for any purpose other than as the
address of the business conducted by Tenant in the Premises.

	Choice of Law; Severability. This Lease shall in all respects be
governed by and construed in accordance with the laws of the State of
California. If any provision of this Lease shall be invalid, unenforceable or
ineffective for any reason whatsoever, all other provisions hereof shall be and
remain in full force and effect.

	Definition of Terms. The term "Premises" includes the space leased
hereby and any improvements now or hereafter installed therein or attached
thereto. The term "Landlord" or any pronoun used in place thereof includes the
plural as well as the singular and the successors and assigns of Landlord. The
term "Tenant" or any pronoun used in place thereof includes the plural as well
as the singular and individuals, firms, associations, partnerships and
corporations, and their and each of their respective heirs, executors,
administrators, successors and permitted assigns, according to the context
hereof, and the provisions of this Lease shall inure to the benefit of and bind
such heirs, executors, administrators, successors and permitted assigns.

The term "person" includes the plural as well as the singular and
individuals, firms, associations, partnerships and corporations. Words used in
any gender include other genders. If there be more than one Tenant the
obligations of Tenant hereunder are joint and several. The paragraph headings of
this Lease are for convenience of reference only and shall have no effect upon
the construction or interpretation of any provisions hereof.

	Time Of Essence. Time is of the essence of this Lease and of each and
all of its provisions.

	Quitclaim. At the expiration or earlier termination of this Lease,
Tenant shall execute, acknowledge and deliver to Landlord, within ten (10) days
after written demand from Landlord to Tenant, any quitclaim deed or other
document required by any reputable title company, licensed to operate in the
State of California, to remove the cloud or encumbrance created by this Lease
from the real property of which Tenant's Premises are a part.

	Incorporation of Prior Agreements; Amendments. This instrument along
with any exhibits and attachments hereto constitutes the entire agreement
between Landlord and Tenant relative to the Premises and this agreement and the
exhibits and attachments may be altered, amended or revoked only by an
instrument in writing signed by both Landlord and Tenant. Landlord and Tenant
agree hereby that all prior or contemporaneous oral agreements between and among
themselves and their agents or representatives relative to the leasing of the
Premises are merged in or revoked by this agreement.

	Recording. Neither Landlord nor Tenant shall record this Lease or a
short form memorandum hereof without the consent of the other.

	Amendments for Financing. Tenant further agrees to execute any
reasonable amendments required by a lender to enable Landlord to obtain
financing, so long as Tenant's rights hereunder are not substantially
affected.

	Clauses, Plats and Riders. Clauses, plats and riders, if any, signed
by Landlord and Tenant and endorsed on or affixed to this Lease are a part
hereof.

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(This Space Left Blank Intentionally)

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	Diminution of Light, Air or View. Tenant covenants and agrees that no
diminution or shutting off of light, air or view by any structure which may be
hereafter erected (whether or not by Landlord) shall in any way affect this
Lease, entitle Tenant to any reduction of Rent hereunder or result in any
liability of Landlord to Tenant.

IN WITNESS WHEREOF, Landlord and Tenant have executed and delivered this
Lease as of the day and year last written below.

 
	

LANDLORD:
 

	

TENANT:
 

	

JOHN ARRILLAGA SURVIVOR'S TRUST

 

 

	

PROTEIN DESIGN LABS, INC.

a Delaware corporation

 

	

By _____________________________________

John Arrillaga, Trustee 

 

 

	

By _____________________________________

Douglass O. Ebersole, Senior Vice President,

Legal and Licensing

 

	

Date _____________________________________

 

 

	

Date _____________________________________

 

 

	

RICHARD T. PEERY SEPARATE

PROPERTY TRUST

 

 

By _____________________________________

Richard T. Peery, Trustee

 

Date: _____________________________Employment Agreement
                                    Between
                             Christopher M. Condron
                                      and
                              AXA Financial, Inc.
                                      and
           The Equitable Life Assurance Society of the United States

This EMPLOYMENT AGREEMENT (the "Agreement") is entered into as of the 11th day
of May 2001 (the "Effective Date"), between AXA Financial, Inc. ("AXA
Financial") and The Equitable Life Assurance Society of the United States (the
"Equitable"), on the one hand (collectively, the "Company"), and Christopher M.
Condron, on the other (the "Executive").

WHEREAS, the Executive is to be employed effective May 17, 2001 (the "Employment
Date") as President and Chief Executive Officer of AXA Financial, and as
Chairman of the Board and Chief Executive Officer of the Equitable; and

WHEREAS, the Company considers the services of the Executive to be unique and
essential to the success of the Company's business;

NOW, THEREFORE, in consideration of the foregoing premises, the mutual
covenants, terms and conditions set forth herein, and other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
it is hereby agreed between the Company and the Executive as follows:

1. Employment.  During the Employment Term (as defined below):

(a) The Executive agrees to serve as the President and Chief Executive Officer
of AXA Financial reporting to the AXA Financial Board of Directors whose
Chairman is the Chairman of the Management Board and Chief Executive Officer of
the AXA Group.

(b) The Executive will also serve as the Chairman of the Board and Chief
Executive Officer of the Equitable reporting to the Equitable Board of
Directors.

(c) The Executive shall also serve as a Director on the Boards of Directors of
AXA Financial and the Equitable, a Director of Alliance Capital Management
Corporation, and a member of the AXA Group Management Board.

2. Employment Term.  The term of the Executive's employment under this Agreement
shall commence as of the Employment Date and shall continue until terminated by
either party on 30 days' written notice or until the close of the last day of
the calendar month in which the Executive attains age 65, whichever comes first
(the "Employment Term").

3. Representation.  The Executive hereby represents and warrants that the
execution and performance by him of this Agreement does not violate the terms of
any existing agreement or understanding to which the Executive is a party.

4. Duties.  During the Employment Term, and except for illness or incapacity and
reasonable vacation periods consistent with Company policies for other senior
officers, the Executive shall devote all of his business time, attention, skill
<PAGE>
and efforts exclusively to the business and affairs of the Company and its
subsidiaries, shall not be engaged in any other business activity, and shall
perform and discharge well and faithfully the duties of the offices of the
Company held by him, including management of the business affairs of the Company
and strategic and managerial oversight of Alliance Capital Management L.P., and
such other duties as may be assigned to him from time to time by the AXA
Financial and the Equitable Boards of Directors not inconsistent with his
positions; provided, however, that nothing in this Agreement shall preclude the
Executive from devoting time during reasonable periods required for:

(i) serving, in accordance with and after obtaining the approvals required by
Company policies and the approval of the Chief Executive Officer of the AXA
Group, as a director of any company or organization involving no actual or
potential conflict of interest with the Company or any of its affiliates;

(ii) delivering lectures and fulfilling speaking engagements; and

(iii) engaging in charitable, community and other personal activities in
accordance with Company policies;

provided, however, that such activities do not materially affect or interfere
with the performance of the Executive's duties and obligations to the Company or
any of its affiliates.

5. Place of Performance.  The principal place of employment of the Executive
shall be in New York City, New York, USA, but the Executive understands that his
duties under this Agreement will entail significant domestic and international
travel.

6. Compensation.  The Executive shall be compensated for services rendered
during the Employment Term as follows:

(a) Base Salary.  The Executive shall be compensated at an annual base salary
of no less than One Million ($1,000,000) Dollars (the base salary, at the rate
in effect from time to time, is hereinafter referred to as the "Base Salary").
The Company's Organization and Compensation Committee (the "O&C Committee")
shall no less than annually review and may, if appropriate, in its sole
discretion, increase this annual Base Salary during the Employment Term. The
first such review shall be in February 2002, and the effective date of any
increase shall be consistent with the practice of the Company for other senior
officers.

(b) Annual Bonus.  In addition to the Base Salary provided for in Section 6(a)
above, the Company may provide annual bonus awards to the Executive under a
short term incentive compensation plan for senior officers (the "Short Term
Plan") in accordance with the terms of the Short Term Plan and any performance
measures established thereunder.  During the Employment Term, the Executive's
annual target incentive opportunity shall be as provided under the Short Term
Plan but no less than 400 percent of his Base Salary.  An annual bonus of Four
Million ($4,000,000) Dollars under the Short Term Plan shall be guaranteed for
the year 2001 (provided that the Executive remains continuously employed by the
Company through February 2002 and further provided that if the Executive
commences full time service after June 30, 2001 the $4,000,000 bonus shall be
prorated based on a year of 12 months at the rate of $333,333.33 per whole or
partial month worked in 2001), but annual bonus awards shall not be guaranteed
for any subsequent years.
<PAGE>
(c) Target Long-Term Incentive.  The Executive will participate in the AXA
Financial, Inc. 1997 Stock Incentive Plan for Senior Officers or any successor
plan (the "Stock Plan"). The annual target present value of grants to the
Executive under the Stock Plan will be no less than Eight Million ($8,000,000)
Dollars. Except as provided in this Section 6(c), the actual grant of options to
purchase AXA Group ADRs or of other stock compensation under the Stock Plan, and
the terms of such options or other compensation, will be at the sole discretion
of the Stock Option Committee of the AXA Financial Board of Directors or a
successor committee (the "Stock Option Committee"), subject to the provisions of
the Stock Plan and consistent with the treatment of options granted to other
senior officers. The valuation of options granted under the Stock Plan will be
based on the Black-Scholes valuation model as applied in the sole discretion of
the Stock Option Committee and consistent with the treatment of options granted
to other senior officers. A grant of Eight Million ($8,000,000) Dollars in
present value on the effective date of the grant will be made to the Executive
in February 2002, but annual grants shall not be guaranteed for any subsequent
years.

7. Initial Grants.

(a) In connection with the commencement of the Executive's employment, the
Company will grant, effective on the Employment Date, to the Executive in
accordance with the terms of the Stock Plan:

(i) Eight Million Seven Hundred Thousand ($8,700,000) Dollars in face value on
the effective date of the grant of restricted AXA Group ADRs which shall vest at
the rate of one-third per year over three (3) years, with the first one-third to
vest on the first anniversary of the Employment Date, (unless the Executive's
employment is terminated by the Company other than for reasons defined in
Section 9(a), or by the Executive for reasons defined in Section 9(d), in which
case such vesting shall accelerate to the date of such termination). The number
of restricted AXA Group ADRs granted to the Executive pursuant to this Section
7(a)(i) shall be calculated by dividing $8,700,000 by the closing price on the
Employment Date for an AXA Group ADR as reported on the composite transaction
tape of the New York Stock Exchange (as reported in the Wall Street Journal or,
if not reported thereby, any other authoritative source chosen by the Committee)
(the "Fair Market Value"). The Executive shall be entitled to receive all
dividends and other distributions paid with respect to the restricted AXA Group
ADRs granted pursuant to this Section 7(a)(i), provided that if any such
dividends or distributions are paid in AXA Group ADRs, such AXA Group ADRs shall
be subject to the same forfeiture restrictions and restrictions on
transferability as apply to the restricted AXA Group ADRs with respect to which
they were paid.

(ii) Four Million Six Hundred Thousand ($4,600,000) Dollars in present value on
the effective date of the grant of options to purchase AXA Group ADRs which
shall vest at the rate of one-third per year over three (3) years, with the
first one-third to vest on the first anniversary of the Employment Date, (unless
the Executive's employment is terminated by the Company other than for reasons
defined in Section 9(a), or by the Executive for reasons defined in Section
9(d), in which case such vesting shall accelerate to the date of such
termination). The number of options granted pursuant to this Section 7(a)(ii)
shall be calculated by dividing (x) $4,600,000 by (y) the product of 42%
multiplied by the Fair Market Value on the Employment Date; all such options
<PAGE>
shall have an exercise price equal to the Fair Market Value on the Employment
Date and a term of ten (10) years from the Employment Date; and if, prior to the
expiration date of the term of any vested but unexercised options, the
Executive's employment is terminated by the Company other than for reasons
defined in Section 9(a), or by the Executive for reasons defined in Section
9(d), all such vested options (including those whose vesting is accelerated by
reason of such termination) may be exercised at any time prior to the earlier of
the expiration date of the term of the options or the fifth anniversary of the
date of such termination of employment.

(iii) Ten Million ($10,000,000) Dollars in present value on the effective date
of the grant of options to purchase AXA Group ADRs which shall vest 25% on the
third anniversary of the Employment Date, 25% on the fourth anniversary of the
Employment Date, and the remaining 50% on the fifth anniversary of the
Employment Date (unless the Executive's employment is terminated by the Company
other than for reasons defined in Section 9(a), or by the Executive for reasons
defined in Section 9(d), in which case the number of options whose vesting shall
accelerate to the date of such termination shall be determined by (x)
multiplying the number of options granted pursuant to this Section 7(a)(iii) by
a fraction whose numerator is the number of whole calendar months from the
Employment Date to the date of such termination and whose denominator is sixty
(60) and (y) subtracting the number of such options that have vested prior to
the date of such termination.) The number of options granted pursuant to this
Section 7(a)(iii) shall be calculated by dividing (x) $10,000,000 by (y) the
product of 42% multiplied by the Fair Market Value on the Employment Date; all
such options shall have an exercise price equal to the Fair Market Value on the
Employment Date and a term of ten (10) years from the Employment Date; and if,
prior to the expiration date of the term of any vested but unexercised options,
the Executive's employment is terminated by the Company other than for reasons
defined in Section 9(a), or by the Executive for reasons defined in Section
9(d), all such vested options (including those whose vesting is accelerated by
reason of such termination) may be exercised at any time prior to the earlier of
the expiration date of the term of the options or the fifth anniversary of the
date of such termination of employment.

(b) Promptly after the Employment Date the Company will pay the Executive One
Million ($1,000,000) Dollars subject to repayment in full by the Executive if
his employment is terminated by the Company for reasons defined in Section 9(a),
or by the Executive other than for reasons defined in Section 9(d), prior to the
first anniversary of the Employment Date.

(c) No later than July 5, 2001 the Company will pay the Executive One Million
Four Hundred Thousand ($1,400,000) Dollars for lost values incurred by the
Executive in connection with the commencement of his employment with the
Company.

8. Employee Benefits.

(a) General Provisions.  Except as expressly provided in this Agreement, the
Executive shall be eligible to participate in all employee benefit, welfare,
pension and deferred compensation plans offered by the Company (collectively
referred to as the "Benefit Plans") on a basis which is no less favorable to the
Executive than that made available to other senior officers of the Company.  To
the extent permitted by the terms of the existing Benefit Plans or applicable
law, any waiting period for the Executive's participation in the Benefit Plans
shall be waived.
<PAGE>
(b) Vacation and Sick Leave.  The Executive shall be entitled to vacation and
sick leave in accordance with the vacation and sick leave policies adopted by
the Company from time to time for senior officers.

(c) Business Travel and Expenses.  The Executive shall be reimbursed by the
Company for reasonable business expenses, as approved by the Company, which are
incurred and accounted for in accordance with the Company's normal practices and
procedures for reimbursement of expenses.

(d) Executive Car and Driver.  In order to ensure the accessibility and safety
of the Executive during the Employment Term, the Company will provide the
Executive with a car and driver for business and personal purposes.

(e) Air Travel. The Executive may as he deems appropriate conduct his air travel
for business purposes by means of private aircraft and shall be entitled to use
at the Company's expense a private aircraft for personal travel up to a limit of
75 hours in each calendar year (prorated by month for periods of less than a
calendar year) with such aircraft to be provided by the Company by any
commercially reasonable method as long as such methods are available to the
Company.

(f) Financial counseling. The Executive will be entitled to reimbursement by
the Company of fees and disbursements incurred by him for personal financial
counseling services provided by a person or company selected by him up to an
aggregate annual amount of $20,000.

(g) The Company will provide to the Executive the same benefits as the Company
provides to other senior officers with respect to:
    (i)  Parking
   (ii)  City and Country Club Memberships
  (iii)  Executive Health Examination
   (iv)  Life insurance under the Executive Survivor Benefits Plan of the
         Equitable.

9. Termination of Employment.  For purposes of determining entitlements pursuant
to this Agreement the following definitions shall apply:

(a) Termination by the Company for Cause.  Termination for cause shall mean
termination because of (i) the willful failure by the Executive to perform
substantially his duties as an employee of the Company or any of its affiliates
after reasonable notice to the Executive of such failure; (ii) the Executive's
willful misconduct that is materially injurious to the Company or any of its
affiliates; (iii) the Executive's having been convicted of, or entered a plea of
nolo contendere to, a crime that constitutes a felony (other than a felony
involving "limited vicarious liability" as defined in this Section 9(a)); or
(iv) the willful breach by the Executive of any written covenant or agreement
with the Company or any of its affiliates not to disclose any information
pertaining to the Company or any of its affiliates or not to compete or
interfere with the Company or any of its affiliates. For purposes of this
Section 9(a), "limited vicarious liability" shall mean any liability which is
(i) based on acts of the Company for which the Executive is responsible solely
as a result of his office(s) with the Company and (ii) provided that (x) he was
<PAGE>
not directly involved in such acts and either had no prior knowledge of such
intended actions or promptly acted reasonably and in good faith to attempt to
prevent the acts causing such liability or (y) he did not have a reasonable
basis to believe that a law was being violated by such acts. No act or failure
to act will be considered "willful" for purposes of this Section 9(a) unless it
is done, or omitted to be done, by the Executive in bad faith and without
reasonable belief that this action or omission was in the best interests of the
Company.

(b) Termination by the Company for Excessive Absenteeism.  Termination by the
Company for excessive absenteeism shall mean termination because the Executive
shall have been absent from his duties with the Company on a full-time basis for
one hundred twenty (120) days within any six month period.

(c) Death.  If the Executive's employment terminates by reason of death, the
date of his death shall be the date of termination for purposes of this
Agreement.

(d) Termination by the Executive for Good Reason.  Termination for good reason
shall mean:

(i) termination of employment by the Executive after having delivered to the
Company a notice of termination within thirty (30) days after the occurrence of
one or more of the following circumstances, without the Executive's express
written consent, which are not remedied by the Company within thirty (30) days
of its receipt of the Executive's notice of termination:

(A) an assignment to the Executive of any duties materially inconsistent with
his position, duties, responsibilities, and status with the Company, or any
material limitation of the powers of the Executive not consistent with the
powers of the Executive contemplated by Sections 1 and 4 hereof;

(B) any removal of the Executive from the positions specified in Section 1 of
this Agreement;

(C) a diminution of the Executive's titles as specified in Section 1 of this
Agreement;

(D) the Company's requiring the Executive to be based at any office or location
more than 75 miles commuting distance from the location referred to in Section 5
of this Agreement;

(E) a reduction in the Executive's Base Salary or annual bonus target incentive
opportunity as in effect from time to time;

(F) any failure by the Company to comply with any of the provisions of Sections
6 or 7 of this Agreement; or

(G) a failure of the Company to secure a written assumption by any successor
company as provided for in Section 13(g) hereof; and

(ii) termination of employment by the Executive in the event of a "change in
control" (as hereinafter defined) of the Company upon 30 days' written notice,
with the effective date of such termination to occur during the 30-day period
immediately following the first anniversary of the date of such "change in
control." For purposes of this Section 9(d)(ii), "change of control" shall mean
any of the following events:
<PAGE>
(A) Any "person" (as defined in Section 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act")), excluding for this
purpose, (i) AXA (a French corporation (societe anonyme)), any affiliate of AXA,
the Company or any subsidiary of the Company, or (ii) any employee benefit plan
of AXA, any affiliate of AXA, the Company or any subsidiary of the Company, is
or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly of securities of the Company representing more than
50% of the combined voting power of the Company's then outstanding voting
securities entitled to vote generally in the election of directors; provided,
however, that no Change in Control will be deemed to have occurred as a result
of a change in ownership percentage resulting solely from an acquisition of
securities by AXA, any affiliate of AXA, the Company or any subsidiary of the
Company; or

(B) AXA and its affiliates cease to control the election of a majority of the
Board of Directors of the Company;

(C) approval by the stockholders of the Company of a reorganization, merger or
consolidation or sale or other disposition of all or substantially all of the
assets of the Company (a "Business Combination"), in each case, unless,
following such Business Combination, AXA and its affiliates own, directly or
indirectly, more than 50% of the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors of the
company resulting from such Business Combination (including, without limitation,
a company which, as a result of such transaction, owns the Company or all or
substantially all of the Company's assets either directly or through one or more
subsidiaries);

provided that in no event shall the Executive be entitled to terminate his
employment for good reason based on any circumstance relating to a change in the
ownership or control of Alliance Capital Management Corporation, Alliance
Capital Management L.P., Alliance Capital Management Holding L.P. or any of
their subsidiaries, as long as AXA and its affiliates continue to control a
majority of the common stock of the general partner of Alliance Capital
Management L.P. and the Executive continues to have responsibility for the
strategic and managerial oversight of Alliance Capital Management L.P.

(e) Age 65 Expiration of Agreement. Age 65 expiration of this Agreement shall
mean termination of employment as of the close of the last day of the calendar
month in which the Executive attains age 65.

10. Compensation upon Termination.

(a) Absence From Work.  If the Executive's employment is terminated by the
Company for excessive absenteeism as defined in Section 9(b), then the Company
shall pay the Executive, as soon as practicable after the date of termination
(i) any Base Salary and any reimbursable expenses accrued or owing the Executive
hereunder as of the date of termination and (ii) any earned and unpaid bonus
relating to service performed by the Executive prior to termination for
excessive absenteeism.
<PAGE>
(b) Termination for Cause or by the Executive other than for Good Reason.  If
the Executive's employment is terminated by the Company for Cause as defined in
Section 9(a) or by the Executive (other than for Good Reason as defined in
Section 9(d)), then (i) the Company shall pay the Executive, as soon as
practicable after the date of termination, any Base Salary and any reimbursable
expenses accrued or owing the Executive hereunder as of the date of termination;
(ii) the Executive shall immediately forfeit any unvested stock options and
unvested restricted stock shares; and (iii) the Executive shall not be entitled
to any other benefits under any Company plan or policy except as required by
statute.  If the Executive's employment is terminated by the Company for Cause
as defined in Section 9(a), all vested options then outstanding shall be
immediately forfeited; and if the Executive's employment is terminated by the
Executive (other than for Good Reason as defined in Section 9(d)), any vested
options then outstanding shall be exercisable at any time prior to the earlier
of the expiration of the term of the options or the thirtieth day following the
date of the Executive's termination of employment.

(c) Severance Benefits.  In the event the Executive's employment is terminated
by the Company other than for reasons defined in Section 9(a), 9(b), 9(c) or
9(e), or by the Executive for reasons defined in Section 9(d), the Executive
shall be entitled to continuation of Base Salary and participation in the
Benefit Plans for two years from the date of termination; and the payment of an
amount equal to an annual bonus at target for the year in which the termination
occurred, prorated to the date of termination, and additional payments equal to
two annual bonuses at target for the year in which termination occurred (payable
at such times as the Company in the ordinary course would pay annual bonuses for
the year in which the termination occurred and for each of the two years
succeeding the year in which the termination occurred); provided, however, that

(i) in the event the Executive provides services as described in Section 11(a)
of this Agreement prior to the end of the second calendar year following the
year in which any such termination occurs, the Executive's entitlement to
continuation of Base Salary and participation in the Benefit Plans shall cease
on the date the provision of such services commences, and the amount of the
additional payments to be made to the Executive shall be reduced and shall be
determined by (a) multiplying (x) the amount of the additional payments by (y)
a fraction whose numerator is the number of days elapsed from the date of the
Executive's termination of employment to the date the provision of such services
commences and whose denominator is the number of days from the date of the
Executive's termination of employment to the end of the second calendar year
following the year in which such termination occurs, and (b) then subtracting
any amount of such additional payments previously paid to the Executive;

(ii) the Executive shall not be entitled to the above severance benefits unless
the Executive executes a release substantially in the form of Exhibit A to this
Agreement; and

(iii) the severance benefits provided for herein shall be in lieu of any other
severance benefits under any Company plan or policy.

(d) Expiration of Agreement at Age 65. If the Executive's employment is
terminated as a result of age 65 expiration of this Agreement as defined in
Section 9(e), then the retirement provisions of the Benefit Plans shall be
applicable to the Executive.
<PAGE>
11. Non-solicitation and Non-competition.

(a) During his employment with the Company and for a period of six months from
the date of the Executive's termination of employment for any reason, the
Executive will not provide services, in any capacity, whether as an employee,
consultant, independent contractor, owner, partner, shareholder, director, or
otherwise, to any person or entity that provides products or services that
compete with any present or planned business of the Company and any of its
affiliates, including but not limited to any other life insurance or financial
services company, provided that nothing herein shall prevent the Executive from,
after the termination of his employment, being a passive owner of not more than
5% of the outstanding stock of any class of securities of a corporation that is
publicly traded and that may acquire any corporation or business that competes
with the Company or any of its affiliates.

(b) For a period of one year following the termination of the Executive's
employment for any reason, or, if longer, during the period of his continuation
of Base Salary pursuant to Section 10(c) of this Agreement (the "Continuation
Period"), the Executive will not directly or indirectly solicit the business of
any customer or prospective customer of the Company or any of its affiliates for
any purpose other than to obtain, maintain and/or service the customer's
business for the Company or any of its affiliates.

(c) For a period of one year following the termination of the Executive's
employment for any reason, or, if longer, during the Continuation Period, the
Executive agrees not to, directly or indirectly, recruit, solicit or hire any
employees of the Company or any of its affiliates to work for the Executive or
any other person or entity.

(d) Exclusive Property.  The Executive confirms that all confidential
information is and shall remain the exclusive property of the Company.  All
business records, papers and documents kept or made by the Executive relating to
the business of the Company or any of its affiliates shall be and remain the
property of the Company. Upon the termination of his employment with the Company
or upon the request of the Company at any time, the Executive shall promptly
deliver to the Company, and shall not without the consent of the Company's
Boards of Directors retain copies of, any written materials not previously made
available to the public or any records and documents made by the Executive in
his possession concerning the business or affairs of the Company or any of its
affiliates.

(e) Remedies. Without intending to limit the remedies available to the Company,
the Executive acknowledges that a breach of any of the covenants contained in
this Section 11 may result in material irreparable injury to the Company or its
affiliates for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event
of such a breach or threat thereof, the Company shall be entitled to obtain a
temporary restraining order and/or a preliminary or permanent injunction
restraining the Executive from engaging in activities prohibited by this Section
11 or such other relief as may be required to specifically enforce any of the
covenants in this Section 11.
<PAGE>
12. Confidentiality.  During and after the Employment Term, and except as
otherwise required by law, the Executive shall not disclose or make accessible
to any business, person or entity, or make use of (other than in the course of
the business of the Company) any trade secrets, proprietary knowledge or
confidential information which the Executive shall have obtained during his
employment by the Company and which shall not be generally known to or
recognized by the general public.  All information regarding or relating to any
aspect of the business of the Company or any of its affiliates, including but
not limited to that relating to existing or contemplated business plans,
activities or procedures, current or prospective clients, current or prospective
contracts or other business arrangements, current or prospective products,
facilities and methods, manuals, intellectual property, price lists, financial
information (including the revenues, costs, or profits associated with any of
the products or services of the Company or any of its affiliates), or any other
information acquired because of the Executive's employment by the Company, shall
be conclusively presumed to be confidential; provided, however, that
confidential information shall not include any information known generally to
the public (other than as a result of unauthorized disclosure by the Executive).
The Executive's obligations under this Section 12 shall be in addition to any
other confidentiality or nondisclosure obligations of the Executive to the
Company at law or under any other Company policy or agreements.

13. Other Matters.

(a) Entire Agreement.  This Agreement constitutes the entire agreement between
the Company and the Executive relating to the subject matter hereof and
supersedes any prior agreement or understandings and, except to the extent
expressly provided herein or as required by law, any provisions of any plan,
program, policy or other document of the Company pertaining to the subject
matter hereof.

(b) Assignment.  Except as set forth below, this Agreement and the rights and
obligations contained herein shall not be assignable or otherwise transferable
by either party to this Agreement without the prior written consent of the
other party to this Agreement. Notwithstanding the foregoing, any amounts owing
to the Executive upon his death shall inure to the benefit of his heirs,
legatees, personal representatives, executor or administrator.

(c) Notices.  Any and all notices provided for under this Agreement shall be in
writing and hand delivered or sent by first class registered or certified mail,
postage prepaid, return receipt requested, addressed to the Executive at his
residence or to the Company, attention General Counsel, at its usual place of
business, and all such notices shall be deemed effective at the time of delivery
or at the time delivery is refused by the addressee upon presentation.

(d) Amendment/Waiver.  No provision of this Agreement may be amended, waived,
modified, extended or discharged unless such amendment, waiver, extension or
discharge is agreed to in writing signed by both the Company and the Executive.

(e) Applicable Law.  This Agreement and the rights and obligations of the
parties hereunder shall be construed, interpreted, and enforced in accordance
with the laws of the State of New York (applicable to contracts to be performed
wholly within such State).

(f) Severability.  The Executive hereby expressly agrees that all of the
covenants in this Agreement are reasonable and necessary in order to protect the
Company and its business.  If any provision or any part of any provision of this
<PAGE>
Agreement shall be invalid or unenforceable under applicable law, such part
shall be ineffective only to the extent of such invalidity or unenforceability
and shall not affect in any way the validity or enforceability of the remaining
provisions of this Agreement, or the remaining parts of such provision.
(g) Successor in Interests.  In the event the Company merges or consolidates
with or into any other corporation or corporations, or sells or otherwise
transfers substantially all of its assets to another corporation, the provisions
of this Agreement shall be binding upon and inure to the benefit of the
corporation surviving or resulting from the merger or consolidation or to which
the assets are sold or transferred and, prior to the consummation of any such
event, the Company shall obtain the express written assumption of this Agreement
by the other corporation (other than in the case of a merger after which the
Company is the surviving entity).  All references herein to the Company refer
with equal force and effect to any corporate or other successor of the
corporation that acquires directly or indirectly by merger, consolidation,
purchase or otherwise, all or substantially all of the assets of the Company.

14. Applicable Taxes.  There shall be deducted from any compensation payments
made under this Agreement any federal, state, and local taxes or other amounts
required to be withheld by any entity having jurisdiction over the matter. With
respect to the benefits described in Sections 8(d) and (e) of this Agreement,
the Company will provide the Executive will full tax gross-up due to any imputed
income therefrom, but the Executive shall be personally responsible for payment
of taxes on any other imputed income resulting from any other benefits afforded
under this Agreement.

15. Supplemental Retirement Benefit. The Company will provide the Executive with
a supplemental retirement benefit pursuant to the terms of the letter agreement,
dated May 11, 2001, attached hereto as Exhibit B.

16. Indemnification and Insurance. During the Employment Term the Executive will
be entitled to the protections afforded by the indemnification provisions of the
Company's charter and by-laws and by the directors and officers liability
insurance policies purchased form time to time and maintained by the Company to
the same extent as other directors and senior officers of the Company.

17.Attorneys' Fees. The Company will pay the reasonable and necessary attorneys'
fees and disbursements of Vedder, Price, Kaufman & Kammholz, counsel to the
Executive, incurred by the Executive in connection with this Agreement up to an
aggregate amount for all such attorneys' fees and disbursements of $100,000.

18. Taxes.  In the event that the aggregate of all payments or benefits made or
provided to, or that may be made or provided to, the Executive under this
Agreement and under all other plans, programs and arrangements of the Company
(the "Aggregate Payment") is determined to constitute a "parachute payment," as
such term is defined in Section 280G(b)(2) of the Internal Revenue Code, the
Company shall pay to the Executive, prior to the time any excise tax imposed by
Section 4999 of the Internal Revenue Code ("Excise Tax") is payable with respect
to such Aggregate Payment, an additional amount which, after the imposition of
all income and excise taxes thereon, is equal to the Excise Tax on the Aggregate
Payment.  The determination of whether the Aggregate Payment constitutes a
parachute payment and, if so, the amount to be paid to the Executive and the
time of payment pursuant to this Section 18 shall be made by an independent
auditor (the "Auditor") jointly selected by the Company and the Executive and
paid by the Company.  The Auditor shall be a nationally recognized United States
<PAGE>
public accounting firm which has not, during the two (2) years preceding the
date of its selection, acted in any way on behalf of the Company or any
affiliate thereof.  If the Executive and the Company cannot agree on the firm to
serve as the Auditor, then the Executive and the Company shall each select one
accounting firm and those two firms shall jointly select the accounting firm to
serve as the Auditor.  Notwithstanding the foregoing, in the event that the
amount of the Executive's Excise Tax liability is subsequently determined to be
greater than the Excise Tax liability with respect to which an initial payment
to the Executive under this Section 18 has been made, the Company shall pay to
the Executive an additional amount with respect to such additional Excise Tax
(and any interest and penalties thereon) at the time and in the amount
determined by the Auditor so as to make the Executive whole, on an after-tax
basis, with respect to such Excise Tax (and any interest and penalties thereon)
and such additional amount paid by the Company.  In the event the amount of the
Executive's Excise Tax liability is subsequently determined to be less than the
Excise Tax liability with respect to which any payment to the Executive has been
made under this Section 18, the Executive shall, as soon as practical after the
determination is made, pay to the Company the amount of the overpayment by the
Company, reduced by the amount of any relevant taxes already paid by the
Executive and not refundable, all as determined by the Auditor.  The Executive
and the Company shall cooperate with each other in connection with any
proceeding or claim relating to the existence or amount of liability for Excise
Tax, and all expenses incurred by the Executive in connection therewith shall be
paid by the Company promptly upon notice of demand from the Executive.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its
own behalf by its duly authorized officers, and the Executive has executed this
Agreement on his own behalf intending to be legally bound, as of the Effective
Date.

AXA FINANCIAL, INC.

By: /s/ Edward D. Miller
President and Chief Executive Officer

THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES

By: /s/ Edward D. Miller
Chairman and Chief Executive Officer

EXECUTIVE:

/s/ Christopher M. Condron
_________________________________
Christopher M. Condron

<PAGE>

                                                                      EXHIBIT A

                          General Release and Agreement

     This GENERAL RELEASE AND AGREEMENT (hereinafter "Release") is made and
entered into by __________________________.

1. Pursuant to Section 10(c)(ii) of the Employment Agreement (the "Agreement")
dated as of May 11, 2001 between me and AXA Financial, Inc. and The Equitable
Life Assurance Society of the United States (collectively, the "Company"), on
behalf of my heirs, executors, administrators, personal and legal
representatives and assigns, I hereby waive, release and discharge the Company,
its parent, subsidiaries end affiliates, and its and their current and former
officers, directors, agents, employees, successors and assigns (hereinafter
"Releasees"), from all claims, actions and causes of action, whether known or
unknown, which I have or claim to have against any Releasee from the beginning
of the world to the date of this Release (hereinafter "Claims").

2. This Release covers, but is not limited to, all Claims of discrimination
based upon age, race, religion, color, sex, national origin, disability,
handicap, veteran status, marital status, sexual orientation or any other
protected category arising on or before the date of execution of this Release
under any equal employment opportunity law, ordinance, regulation, or order,
including, but not limited to, Title VII of the Civil Rights Act of 1964, as
amended, the Civil Rights Act of 1991, Executive Orders 11246 and 11141, as
amended, the Age Discrimination in Employment Act of 1967, as amended, the
Americans with Disabilities Act of 1990, the New York Executive Law, and any
other federal, state, or local constitutional or statutory provision, order, or
regulation. Claims do not include any rights I may have (a) under the (i) The
Equitable Retirement Plan for Employees, Managers and Agents; (ii) The Equitable
Excess Retirement Plan; (iii) The Equitable Investment Plan for Employees,
Managers and Agents; (iv) The Equitable Deferred Compensation Plan, Plan B; (v)
the Variable Deferred Compensation Plan for Executives; (vi) The Equitable
Executive Survivor Income Benefit Plan; (vii) The Equitable welfare benefit
plans for employees, managers and agents including Equitable's health, life
Insurance, health care spending account, dependent care spending account,
short-term disability and long-term disability plans; or (viii) the AXA
Financial, Inc. 1997 Stock Incentive Plan; or (b) for payment of the severance
benefits pursuant to Section 10(c) of the Agreement.

3. This Release also covers all Claims arising in tort or in contract relating
to my employment or the termination of my employment with the Company, including
but not limited to, those for fraud, libel, slander, promissory or equitable
estoppel, misrepresentation, wrongful discharge, contract violation, breach of
covenant of good

<PAGE>

faith and fair dealing, and negligent or intentional infliction of emotional
distress arising under the laws of New York or any other state or jurisdiction.
I intend that this Release will discharge the Releases to the maximum extent
permitted by law. This Release is intended to release all Claims, whether known
or unknown, by me from the beginning of the world until the date of this
Release.

4. To the maximum extent permitted by law, I agree not to file (i) a lawsuit or
to commence an arbitration making any Claims against the Releasees or any
Releasee with any federal, state, local or foreign court or self-regulatory
authority relating to my employment with the Company or the termination of my
employment, or (ii) a charge or a complaint making any Claims against the
Releasees or any Releasee with any federal, state or local administrative
agency. Unless I am specifically requested to do so by the Company, or compelled
by legal process issued by a competent court, agency or arbitration tribunal, I
also agree not to participate in any administrative proceeding, litigation or
arbitration filed by any current or former employee or agent of the Releasees
against the Releasees or any Releasee with any federal, state or local
administrative agency or court or a self-regulatory authority relating to their
employment or association with the Company or the termination of their
employment or association with the Company or to contact any current or former
employee(s) or agent(s) of the Company for the purpose of assisting them in any
such administrative proceeding, litigation or arbitration against the Releasees
or any Releasee. I additionally waive any rights to obtain damages with respect
to any administrative proceeding, litigation or arbitration contemplated by this
paragraph.

5. I warrant that I have made no assignment, and will make no assignment, of any
claim, right of action, or any rights of any kind whatsoever, embodied in any of
the Claims covered in this Release, and that no person or entity of any kind has
or had any interest in any of the Claims covered in this Release.

6. I agree to cooperate fully with the Releasees or any Releasee, and, if so
requested, to assist the Releasees or any Releasee in its defense of any claim,
litigation or complaint against them, of which I have knowledge, by any of its
current or former agents, employees, managers or clients, or contractors, or any
of their employees.

7. I agree to keep the terms of this Release completely confidential, provided
that disclosure to my financial advisor, attorney or immediately family, or in
response to valid legal process or as otherwise required by law, will not
violate this covenant.

8. I agree that if any part of this Release is found to be void or unenforceable
by a court or an arbitrator of competent jurisdiction, the remainder of this
Release will remain valid and enforceable.

9. This Release will be governed by the laws of the State of New York and will
be binding upon me and my heirs, administrators, representatives, executors,
successors

                                      -2-

<PAGE>
and assigns and will inure to the benefit of the Releasees and their
heirs, administrators, representatives, executors, successors and assigns.

10. I have read this Release and understand that I am relinquishing all Claims,
including those for employment discrimination, which I might have against the
Releasees.

11. I also release the Company from any Claims for attorney's fees. I
acknowledge that I will be responsible for all of my attorney's fees and costs
with respect to the subject matter of this Release.

     Executed at _______________________________________ this __________ day of

_________________________, 200_.

                                        ______________________________________

-----------------------
     Notary Public

                                       -3-

<PAGE>
                                                                      EXHIBIT B

                                                May 11, 2001

Mr. Christopher M. Condron
15 East 82nd  Street
New York, New York 10028

RE:     SUPPLEMENTAL RETIREMENT BENEFIT

Dear Mr. Condron:

     This letter agreement sets forth the terms of your supplemental retirement
benefit with The Equitable Life Assurance Society of the United States
("Equitable").

     Unless your employment with Equitable is terminated for Cause as defined in
Section 9(a) of the Employment Agreement between you and AXA Financial, Inc. and
Equitable dated as of May 11, 2001 (the "Employment Agreement"), in which event
no benefits will be payable hereunder, Equitable will provide you with a
supplemental retirement benefit that, expressed as a monthly benefit for your
life, will equal 2% times the number of whole years of your employment with
Equitable or any of its affiliates times your "final average monthly earnings."
Your "final average monthly earnings" will mean the average of your highest
monthly earnings for 36 consecutive months during your last 60 months of
employment with Equitable or an affiliate. If your employment with Equitable
ends before you have 36 consecutive months of employment, your "final average
monthly earnings" will be based on the average of your monthly earnings over the
number of whole and partial months of your employment. Earnings shall consist of
your base salary and any annual bonus paid to you pursuant to Section 6(b)of the

<PAGE>

Employment Agreement. In computing your "final average monthly earnings" any
annual bonuses will be averaged over the 12 calendar months in the year for
which the respective bonuses were paid.

     You will be immediately vested in your supplemental retirement benefit
which will be paid to you in a lump sum or, if you make an advance election, as
a monthly annuity for your life or as a 50% joint and survivor annuity, with
your spouse as the survivor. An advance election must be made at least one full
calendar year before payments are scheduled to commence. The lump sum payment
will be made or, if you elected an annuity, the annuity payments will commence,
on the first business day of the month following the earlier of your retirement
under The Equitable Retirement Plan for Employees, Managers and Agents
("Retirement Plan") or your separation from service with Equitable and any of
its affiliates, provided that if you separate from service before age 62, your
retirement benefit will be made or commence on the first business day of the
month following your 62nd birthday. The payments under this letter agreement
will be offset by any payments you are entitled to under the Retirement Plan and
the Equitable Excess Retirement Plan. If you die before your scheduled
commencement date and have not elected a joint and survivor annuity, your
benefit will be paid in a lump sum to a beneficiary you designate, or your
estate, if you have not designated a beneficiary.

     In calculating (i) the lump sum equivalent of your monthly benefit, (ii)
the offset for your other retirement payments, and (iii) the terms of any
annuity benefit elected by you, Equitable will rely on the actuarial and other
factors used to determine equivalent benefits under the Retirement Plan. The
Equitable is the administrator of the supplemental retirement benefit provided
under this letter agreement, and it has discretionary authority to construe and
interpret this agreement.

                                      -2-

<PAGE>

     Any supplemental retirement benefit payable under this letter will be
payable solely from Equitable's general assets as payments become due.
Equitable's obligation to make any payment under this letter agreement shall be
merely that of an unfunded and unsecured promise of the Equitable to pay money
in the future.

     The supplemental retirement benefit provided under this letter agreement is
intended to be primarily for the purpose of providing deferred compensation for
a select group of management or highly compensated employees, as that phrase is
used under Section 201, 301 and 401 of the Employee Retirement Income Security
Act ("ERISA").

                                        Very truly yours,

                                        THE EQUIABLE LIFE ASSURANCE
                                        SOCIETY OF THE UNITED STATES

                                        By:     /s/ Edward D. Miller
                                                ------------------------------
                                                Chairman and
                                                Chief Executive Officer

Accepted and Agreed to:

/s/ Christopher M. Condron
--------------------------
Christopher M. Condron

                                      -3-

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