Document:

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                                                                    EXHIBIT 10.7

                                 LEASE AGREEMENT
                                      (NNN)
                             BASIC LEASE INFORMATION

LEASE DATE:               June 4, 1998

LANDLORD:                 MILPITAS INDUSTRIAL PROPERTIES, INC.,
                          a Delaware corporation

LANDLORD'S ADDRESS:       c/o LPC MS, Inc.
                          101 Lincoln Centre Drive, Fourth Floor
                          Foster City, California 94404-1167

TENANT:                   Viko Technology Inc.,
                          A California corporation, dba Adaptive Electronics

TENANT'S ADDRESS:         1605 Mabury Road, Units A and B
                          San Jose, California 95133

PREMISES:                 Approximately 25,200 rentable square feet as shown on
                          Exhibit A

PREMISES ADDRESS:         1605 Mabury Road, Units A and B
                          San Jose, California 95133

BUILDING B:               Approximately 62,400 rentable square feet
LOT
 (BUILDING'S TAX PARCEL): APN 254-17-075-00
MABURY INDUSTRIAL PARK:   Approximately 217,777 rentable square feet

TERM:                     April 1, 1998 ("Commencement Date"), through
                          March 31, 2003 ("Expiration Date")

BASE RENT (3):            Seventeen Thousand Four Hundred Thirty and 00/100
                          Dollars ($17,430.00) per month commencing on April 1,
                          1998 through March 31, 1999

ADJUSTMENTS TO BASE RENT: April 1, 1999 - December 31, 1999 the Base Rent shall
                          increase to $18,102.00 per month
                          January 1, 2000 - March 31, 2000 the Base Rent shall
                          increase to $18,522.00 per month
                          April 1, 2000 - March 31, 2001 the Base Rent shall
                          increase to $19,026.00 per month
                          April 1, 2001 - 12/31/2001 the Base Rent shall
                          increase to $19,530.00 per month
                          January 1, 2002 - March 31, 2002 the Base Rent shall
                          increase to $20,916.00 per month
                          April 1, 2002 - March 31, 2003 the Base Rent shall
                          increase to $21,924.00 per month

SECURITY DEPOSIT (4):     Thirteen Thousand Four Hundred Eighty-Two and 00/100
                          Dollars ($13,482.00) presently being held by
                          Landlord.

*TENANT'S SHARE OF OPERATING EXPENSES (6.1):            11.57% of the Park
*TENANT'S SHARE OF TAX EXPENSES (6.2):                  40.38% of Building B
*TENANT'S SHARE OF COMMON AREA UTILITY COSTS (7):       11.57% of the Park
*TENANT'S SHARE OF UTILITY EXPENSES (7):                11.57% of the Park
*The amount of Tenant's Share of the expenses as referenced above shall be
subject to modification as set forth in this Lease.

PERMITTED USES (9):       PC Board assembly, general office and other legally
                          related uses, but only to the extent permitted by the
                          City of San Jose and all agencies and governmental
                          authorities having jurisdiction thereof

UNRESERVED PARKING
SPACES:                   Twenty-five (25) non-exclusive and non-designated
                          spaces

BROKER (38):              None for Tenant
                          LPC MS, Inc. for Landlord

EXHIBITS:                 Exhibit A - Premises, Building, Lot and/or Park
                          Exhibit B - Tenant Improvements
                          Exhibit C - Rules and Regulations
                          Exhibit D - Covenants, Conditions and Restrictions
                          (Intentionally omitted)
                          Exhibit E - Hazardous Materials Disclosure Certificate
                          - Example
                          Exhibit F - Change of Commencement Date - Example
                          Exhibit G - Tenant's Initial Hazardous Materials
                          Disclosure Certificate
                          Exhibit H - Sign Criteria (Intentionally omitted)

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION                                                                                     PAGE
-------                                                                                     ----
<S>                                                                                         <C>
1.       PREMISES........................................................................     3
2.       ADJUSTMENT OF COMMENCEMENT DATE; CONDITION OF THE PREMISES......................     3
3.       RENT............................................................................     3
4.       SECURITY DEPOSIT................................................................     4
5.       TENANT IMPROVEMENTS.............................................................     4
6.       ADDITIONAL RENT.................................................................     4
7.       UTILITIES.......................................................................     6
8.       LATE CHARGES....................................................................     7
9.       USE OF PREMISES.................................................................     7
10.      ALTERATIONS AND ADDITIONS; AND SURRENDER OF PREMISES............................     8
11.      REPAIRS AND MAINTENANCE.........................................................     9
12.      INSURANCE.......................................................................    10
13.      WAIVER OF SUBROGATION...........................................................    11
14.      LIMITATION OF LIABILITY AND INDEMNITY...........................................    11
15.      ASSIGNMENT AND SUBLEASING.......................................................    12
16.      AD VALOREM TAXES................................................................    13
17.      SUBORDINATION...................................................................    13
18.      RIGHT OF ENTRY..................................................................    13
19.      ESTOPPEL CERTIFICATE............................................................    14
20.      TENANT'S DEFAULT................................................................    14
21.      REMEDIES FOR TENANT'S DEFAULT...................................................    14
22.      HOLDING OVER....................................................................    15
23.      LANDLORD'S DEFAULT..............................................................    16
24.      PARKING.........................................................................    16
25.      SALE OF PREMISES................................................................    16
26.      WAIVER..........................................................................    16
27.      CASUALTY DAMAGE.................................................................    16
28.      CONDEMNATION....................................................................    17
29.      ENVIRONMENTAL MATTERS / HAZARDOUS MATERIALS.....................................    17
30.      FINANCIAL STATEMENTS............................................................    19
31.      GENERAL PROVISIONS..............................................................    19
32.      SIGNS...........................................................................    21
33.      MORTGAGEE PROTECTION............................................................    21
34.      QUITCLAIM.......................................................................    21
35.      MODIFICATIONS FOR LENDER........................................................    21
36.      WARRANTIES OF TENANT............................................................    21
37.      COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT.................................    22
38.      BROKERAGE COMMISSION............................................................    22
39.      QUIET ENJOYMENT.................................................................    22
40.      LANDLORD'S ABILITY TO PERFORM TENANT'S UNPERFORMED OBLIGATIONS..................    22
</TABLE>

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                                 LEASE AGREEMENT

DATE: This Lease is made and entered into as of the Lease Date set forth on Page
      1. The Basic Lease Information set forth on Page 1 and this Lease are and
      shall be construed as a single instrument.

1. PREMISES: Landlord hereby leases the Premises to Tenant upon the terms and
conditions contained herein. Landlord hereby grants to Tenant a license for the
right to use, on a non-exclusive basis, parking areas and ancillary facilities
located within the Common Areas of the Park, subject to the terms of this Lease.
Landlord and Tenant hereby agree that for purposes of this Lease, as of the
Lease Date, the rentable square footage area of the Premises, the Building, the
Lot and the Park shall be deemed to be the number of rentable square feet as set
forth in the Basic Lease Information on Page 1. Tenant hereby acknowledges that
the rentable square footage of the Premises may include a proportionate share of
certain areas used in common by all occupants of the Building and/or the Park
(for example an electrical room or telephone room). Tenant further agrees that
the number of rentable square feet of the Building, the Lot and the Park may
subsequently change after the Lease Date commensurate with any modifications to
any of the foregoing by Landlord, and Tenant's Share shall accordingly change.

2. ADJUSTMENT OF COMMENCEMENT DATE: CONDITION OF THE PREMISES:

     2.1 If Landlord cannot deliver possession of the Premises on the
Commencement Date, Landlord shall not be subject to any liability nor shall the
validity of the Lease be affected; provided, the Lease Term and the obligation
to pay Rent shall commence on the date possession is tendered and the Expiration
Date shall be extended commensurately. In the event the commencement date and/or
the expiration date of this Lease is other than the Commencement Date specified
in the Basic Lease Information, as the case may be, Landlord and Tenant shall
execute a written amendment to this Lease, substantially in the form of Exhibit
F hereto, wherein the parties shall specify the actual commencement date,
expiration date and the date on which Tenant is to commence paying Rent. The
word "Term" whenever used herein refers to the initial term of this Lease and
any extension thereof. By taking possession of the Premises, Tenant shall be
deemed to have accepted the Premises in good condition and state of repair.
Tenant hereby acknowledges and agrees that neither Landlord nor Landlord's
agents or representatives has made any representations or warranties as to the
suitability, safety or fitness of the Premises for the conduct of Tenant's
business, Tenant's intended use of the Premises or for any other purpose. Tenant
agrees that at any time before or during the Term of this Lease, Landlord shall
have the right to relocate Tenant from the Premises described herein to other
space within the Park on substantially the same terms and conditions of this
Lease provided the other space is of comparable size.

      2.2 In the event Landlord permits Tenant to occupy the Premises prior to
the Commencement Date, such occupancy shall be at Tenant's sole risk and subject
to all the provisions of this Lease, including, but not limited to, the
requirement to pay Rent and the Security Deposit, and to obtain the insurance
required pursuant to this Lease and to deliver insurance certificates as
required herein. In addition to the foregoing, Landlord shall have the right to
impose such additional conditions on Tenant's early entry as Landlord shall deem
appropriate. If, at any time, Tenant is in default of any term, condition or
provision of this Lease, any such waiver by Landlord of Tenant's requirement to
pay rental payments shall be null and void and Tenant shall immediately pay to
Landlord all rental payments so waived by Landlord.

3. RENT: On the date that Tenant executes this Lease, Tenant shall deliver to
Landlord the original executed Lease, the Base Rent (which shall be applied
against the Rent payable for the first month Tenant is required to pay Base
Rent), the Security Deposit, and all insurance certificates evidencing the
insurance required to be obtained by Tenant under Section 12 of this Lease.
Tenant agrees to pay Landlord, without prior notice or demand, or abatement,
offset, deduction or claim, the Base Rent described in the Basic Lease
Information, payable in advance at Landlord's address specified in the Basic
Lease Information on the Commencement Date and thereafter on the first (1st) day
of each month throughout the balance of the Term of the Lease. In addition to
the Base Rent set forth in the Basic Lease Information, Tenant shall pay
Landlord in advance on the Commencement Date and thereafter on the first (1st)
day of each month throughout the balance of the Term of the Lease, as Additional
Rent, Tenant's Share of Operating Expenses, Tax Expenses, Common Area Utility
Costs, and Utility Expenses, as well as the Administrative Expenses. Tenant
shall also pay to Landlord as Additional Rent hereunder, immediately on
Landlord's demand therefor, any and all costs and expenses incurred by Landlord
to enforce the provisions of this Lease, including, but not limited to, costs
associated with the delivery of notices, delivery and recordation of notice(s)
of default, attorneys' fees, expert fees, court costs and filing fees
(collectively, the "Enforcement Expenses"). The term "Rent" whenever used herein
refers to the aggregate of all of these amounts. If Landlord permits Tenant to
occupy the Premises without requiring Tenant

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to pay rental for a period of time, the waiver of the requirement to pay rental
payments shall only apply to waiver of the Base Rent and Tenant shall otherwise
perform all other obligations of Tenant required hereunder. The Rent for any
fractional part of a calendar month at the commencement or termination of the
Lease term shall be a prorated amount of the Rent for a full calendar month
based upon a thirty (30) day month. The prorated Rent shall be paid on the
Commencement Date and the first day of the calendar month in which the date of
termination occurs, as the case maybe.

4. SECURITY DEPOSIT: Upon Tenant's execution of this Lease, Tenant shall deliver
to Landlord, as a Security Deposit for the performance by Tenant of its
obligation under this Lease, the amount specified in the Basic Lease
Information. If Tenant is in default, Landlord may, but without obligation to do
so, use the Security Deposit, or any portion thereof, to cure the default or to
compensate Landlord for all damages sustained by Landlord resulting from
Tenant's default, including, but not limited to the Enforcement Expenses. Tenant
shall immediately on demand, pay to Landlord a sum equal to the portion of the
Security Deposit so applied or used so as to replenish the amount of the
Security Deposit held to increase such deposit to the amount initially deposited
with Landlord. At any time after Tenant has defaulted hereunder, Landlord may
require an increase in the amount of the Security Deposit required hereunder for
the then balance of the Lease Term and Tenant shall, immediately on demand, pay
to Landlord additional sums in the amount of such increase. As soon as
practicable after the termination of this Lease, Landlord shall return the
Security Deposit to Tenant, less such amounts as are reasonably necessary, as
determined solely by Landlord, to remedy Tenant's default(s) hereunder or to
otherwise restore the Premises to a clean and safe condition, reasonable wear
and tear expected. If the cost to restore the Premises exceeds the amount of the
Security Deposit, Tenant shall promptly deliver to Landlord any and all of such
excess sums as reasonably determined by Landlord. Landlord shall not be required
to keep the Security Deposit separate from other funds, and, unless otherwise
required by law, Tenant shall not be entitled to interest on the Security
Deposit. In no event or circumstance shall Tenant have the right to any use of
the Security Deposit and, specifically, Tenant may not use the Security Deposit
as a credit or to otherwise offset any payments required hereunder, including,
but not limited to, Rent or any portion thereof.

5. TENANT IMPROVEMENTS: Tenant hereby accepts the Premises as suitable for
Tenant's intended use and as being in good operating order, condition and
repair, "AS IS". Tenant acknowledges and agrees that neither Landlord nor any of
Landlord's agents, representatives or employees has made any representations as
to the suitability, fitness or condition of the Premises for the conduct of
Tenant's business or for any other purpose, including without limitation, any
storage incidental thereto. Tenant further acknowledges and agrees that neither
Landlord nor any of Landlord's agents, representatives or employees has agreed
to perform or undertake (i) any alterations to the Premises, or (ii) construct
any improvements in or to the Premises (collectively, "Tenant Improvements").
Any exception to the foregoing provisions must be made by express written
agreement by both parties.

6. ADDITIONAL RENT: It is intended by Landlord and Tenant that this Lease be a
"triple net lease." The costs and expenses described in this Section 6 and all
other sums, charges, costs and expenses specified in this Lease other than Base
Rent are to be paid by Tenant to Landlord as additional rent (collectively,
"Additional Rent").

         6.1 OPERATING EXPENSES: In addition to the Base Rent set forth in
Section 3, Tenant shall pay Tenant's Share, which is specified in the Basic
Lease Information, of all Operating Expenses as Additional Rent. The term
"Operating Expenses" as used herein shall mean the total amounts paid or payable
by Landlord in connection with the ownership, maintenance, repair and operation
of the Premises, the Building and the Lot, and where applicable, of the Park
referred to in the Basic Lease Information. The amount of Tenant's Share of
Operating Expenses shall be reviewed from time to time by Landlord and shall be
subject to modification by Landlord if there is a change in the rentable square
footage of the Premises, the Building and/or the Park.. These Operating Expenses
may include, but are not limited to:

                  6.1.1 Landlord's cost of repairs to, and maintenance of, the
         roof, the roof membrane and the exterior walls of the Building;

                  6.1.2 Landlord's cost of maintaining the outside paved area,
         landscaping and other common areas for the Park. The term "Common
         Areas" shall mean all areas and facilities within the Park exclusive of
         the Premises and the other portions of the Park leasable exclusively to
         other tenants. The Common Areas include, but are not limited to,
         interior lobbies, mezzanines, parking areas, access and perimeter
         roads, sidewalks, rail spurs, landscaped areas and similar areas and
         facilities;

                  6.1.3 Landlord's annual cost of insurance insuring against
         fire and extended coverage (including, if Landlord elects, "all risk"
         or "special purpose" coverage) and all other

<PAGE>

         insurance, including, but not limited to, earthquake, flood and/or
         surface water endorsements for the Building, the Lot and the Park
         (including the Common Areas), rental value insurance against loss of
         Rent in an amount equal to the amount of Rent for a period of at least
         six (6) months commencing on the date of loss, and subject to the
         provisions of Section 27 below, any deductible;

                  6.1.4 Landlord's cost of: (i) modifications and/or new
         improvements to the Building, the Common Areas and/or the Park
         occasioned by any rules, laws or regulations effective subsequent to
         the date on which the Building was originally constructed, (ii)
         reasonably necessary replacement improvements to the Building, the
         Common Areas and the Park after the Lease Date; and (iii) new
         improvements to the Building, the Common Areas and/or the Park that
         reduce operating costs or improve life/safety conditions, all as
         reasonably determined by Landlord, in it's sole discretion;

                  6.1.5 If Landlord elects to so procure, Landlord's cost of
         preventive maintenance, and repair contracts including, but not limited
         to, contracts for heating, ventilation and air conditioning systems,
         lifts for disabled persons, and trash or refuse collection;

                  6.1.6 Landlord's cost of security and fire protection services
         for the Building and/or the Park, as the case may be, if in Landlord's
         sole discretion such services are provided;

                  6.1.7 Landlord's cost for maintenance and repair of any rail
         spur and rail crossing, and for the creation and negotiation of, and
         pursuant to, any rail spur or track agreements, licenses, easements or
         other similar undertakings;

                  6.1.8 Landlord's cost of supplies, equipment, rental equipment
         and other similar items used in the operation and/or maintenance of the
         Park; and

                  6.1.9 Landlord's cost for the repairs and maintenance items
set forth in Section 11.2 below.

         6.2 TAX EXPENSES: In addition to the Base Rent set forth in Section 3,
Tenant shall pay its share, which is specified in the Basic Lease Information,
of all real property taxes applicable to the land and improvements included
within the Lot on which the Premises are situated and one hundred percent (100%)
of all personal property taxes now or hereafter assessed or levied against the
Premises or Tenant's personal property. The amount of Tenant's share of Tax
Expenses shall be reviewed from time to time by Landlord and shall be subject to
modification by Landlord if there is a change in the rentable square footage of
the Premises, the Building and/or the Park. Tenant shall also pay one hundred
percent (100%) of any increase in real property taxes attributable, in
Landlord's sole discretion, to any and all alterations or other improvements of
any kind, which are above standard improvements customarily installed for
similar buildings located within the Building or the Park (as applicable),
whatsoever placed in, on or about the Premises for the benefit of, at the
request of, or by Tenant. The term "Tax Expenses" shall mean and include,
without limitation, any form of tax and assessment (general, special,
supplemental, ordinary or extraordinary), commercial rental tax, payments under
any improvement bond or bonds, license fees, license tax, business license fee,
rental tax, transaction tax, levy, or penalty imposed by authority having the
direct or indirect power of tax (including any city, country, state or federal
government, or any school, agricultural, lighting, drainage or other improvement
district thereof) as against any legal or equitable interest of Landlord in the
Premises, the Building, the Lot or the Park, as against Landlord's right to rent
or as against Landlord's business of leasing the Premises or the occupancy of
Tenant or any other tax, fee or excise, however described, including, but not
limited to, any value added tax, or any tax imposed in substitution (partially
or totally) of any tax previously included within the definition of real
property taxes, or any additional tax the nature of which was previously
included within the definition of real property taxes. The term "Tax Expenses"
shall not include any franchise, estate, inheritance, net income, or excess
profits tax imposed upon Landlord.

<PAGE>

6.4 PAYMENT OF EXPENSES: Landlord shall estimate Tenant's Share of the Operating
Expenses and Tax Expenses for the calendar year in which the Lease commences.
Commencing on the Commencement Date, one twelfth (1/12th) of this estimated
amount shall be paid by Tenant to Landlord, as Additional Rent, and thereafter
on the first (1st) day of each month throughout the remaining months of such
calendar year. Thereafter, Landlord may estimate such expenses as of the
beginning of each calendar year during the Term of this Lease and Tenant shall
pay one-twelfth (1/12th) of such estimated amount as Additional Rent hereunder
on the first (1st) day of each month during such calendar year and for each
ensuing calendar year throughout the Term of this Lease. Tenant's obligation to
pay Tenant's Share of Operating Expenses and Tax Expenses shall survive the
expiration or earlier termination of this Lease.

6.5 ANNUAL RECONCILIATION: By June 30th of each calendar year, or as soon
thereafter as reasonably possible Landlord shall endeavor to furnish Tenant with
an accounting of actual Operating Expenses and Tax Expenses. Within thirty (30)
days of Landlord's delivery of such accounting, Tenant shall pay to Landlord the
amount of any underpayment. Notwithstanding the foregoing, failure by Landlord
to give such accounting by such date shall not constitute a waiver by Landlord
of its right to collect any of Tenant's underpayment at any time. Landlord shall
credit the amount of any overpayment by Tenant toward the next estimated monthly
installment(s) falling due, or where the Term of the Lease has expired, refund
the amount of overpayment to Tenant. If the term of the Lease expires prior to
the annual reconciliation of expenses, Landlord shall have the right to
reasonably estimate Tenant's Share of such expenses, and if Landlord determines
that an underpayment is due, Tenant hereby agrees that Landlord shall be
entitled to deduct such underpayment from Tenant's Security Deposit. If Landlord
reasonably determines that an overpayment has been made by Tenant, Landlord
shall refund such overpayment to Tenant as soon as practicable thereafter.
Notwithstanding the foregoing, failure of Landlord to accurately estimate
Tenant's Share of such expenses or to otherwise perform such reconciliation of
expenses, including without limitation, Landlord's failure to deduct any portion
of any underpayment from Tenant's Security Deposit, shall not constitute a
waiver of Landlord's right to collect any of Tenant's underpayment at any time
during the Term of the Lease or at any time after the expiration or earlier
termination of this Lease.

6.6 AUDIT: After delivery to Landlord of at least thirty (30) days prior written
notice, Tenant, at its sole cost and expense through any accountant designated
by it, shall have the right to examine and/or audit the books and records
evidencing such costs and expenses for the previous one (1) calendar year,
during Landlord's reasonable business hours but not more frequently than once
during any calendar year. Any such accounting firm designated by Tenant may not
be compensated on a contingency fee basis. The results of any such audit (and
any negotiations between the parties related thereto) shall be maintained
strictly confidential by Tenant and its accounting firm and shall not be
disclosed, published or otherwise disseminated to any other party other than to
Landlord and its authorized agents. Landlord and Tenant shall use their best
efforts to cooperate in such negotiations and to promptly resolve any
discrepancies between Landlord and Tenant in the accounting of such costs and
expenses.

7. UTILITIES: Utility Expenses, Common Area Utility Costs and all other sums or
charges set forth in this Section 7 are considered part of Additional Rent. In
addition to the Base Rent set forth in Section 3 hereof, Tenant shall pay the
cost of all water, sewer use, sewer discharge fees and sewer connection fees,
gas, heat, electricity, refuse pickup, janitorial service, telephone and other
utilities billed or metered separately to the Premises and/or Tenant. Tenant
shall also pay Tenant's Share of any assessments or charges for utility or
similar purposes included within any tax bill for the Lot on which the Premises
are situated, including, without limitation, entitlement fees, allocation unit
fees, and/or any similar fees or charges, and any penalties related thereto. For
any such utility fees or use charges that are not billed or metered separately
to Tenant, including without limitation, water and refuse pick up charges,
Tenant shall pay to Landlord, as Additional Rent, without prior notice or
demand, on the Commencement Date and thereafter on the first (1st) day of each
month throughout the balance of the Term of this Lease the amount which is
attributable to Tenant's use of the utilities or similar services, as reasonably
estimated and determined by Landlord based upon factors such as size of the
Premises and intensity of use of such utilities by Tenant such that Tenant shall
pay the portion of such charges reasonably consistent with Tenant's use of such
utilities and similar service ("Utility Expenses"). If Tenant disputes any such
estimate or determination, then Tenant shall either pay the estimated amount or
cause the Premises to be separately metered at Tenant's sole expense. In
addition, Tenant shall pay to Landlord Tenant's Share of any Common Area utility
costs, fees, charges or expenses ("Common Area Utility Costs"). Tenant shall pay
to Landlord one-twelfth (1/12th) of the estimated amount of Tenant's Share of
the Common Area Utility Costs on the Commencement Date and thereafter on the
first (1st) day of each month throughout the balance of the Term of this Lease
and any reconciliation thereof shall be substantially in the same manner as
specified in Section 6.5 above. The amount of Tenant's Share of Common Area
Utility Costs shall be reviewed from time to time by Landlord and shall be
subject to modification by Landlord if there is a change in the rentable square
foot of the Premises, the Building and/or the Park. Tenant acknowledges that the
Premises may become subject to the rationing of utility services or restrictions
on utility use as required by a public utility

<PAGE>

company, governmental agency or other similar entity having jurisdiction
thereof. Notwithstanding any such rationing or restriction on use of any such
utility services, Tenant acknowledges and agrees that its tenancy and occupancy
hereunder shall be subject to such rationing restrictions as may be imposed upon
Landlord, Tenant, the Premises, the Building or the Park, and Tenant shall in no
event be excused or relieved from any covenant or obligation to be kept or
performed by Tenant by reason of any such rationing or restrictions. Tenant
further agrees to timely and faithfully pay, prior to delinquency, any amount,
tax, charge, surcharge, assessment or imposition levied, assessed or imposed
upon the Premises, or Tenant's use and occupancy thereof. Notwithstanding
anything to the contrary contained herein, if permitted by applicable Laws,
Landlord shall have the right at any time and from time to time during the Term
of this Lease to either contract for service from a different company or
companies (each such company shall be referred to herein as an "Alternate
Service Provider") other than the company or companies presently providing
electricity service for the Building or the Park (the "Electric Service
Provider") or continue to contract for service from the Electric Service
Provider, at Landlord's sole discretion. Tenant hereby agrees to cooperate with
Landlord, the Electric Service Provider, and any Alternate Service Provider at
all times and, as reasonably necessary, shall allow Landlord, the Electric
Service Provider, and any Alternate Service Provider reasonable access to the
Building's electric lines, feeders, risers, wiring, and any other machinery
within the Premises.

8. LATE CHARGES: Any and all sums of charges set forth in this Section 8 are
considered part of Additional Rent. Tenant acknowledges that late payment (the
fifteenth day of each month or any time thereafter) by Tenant to Landlord of
Base Rent, Tenant's Share of Operating Expenses, Tax Expenses, Common Area
Utility Costs, and Utility Expenses, Administrative Expenses, or the other sums
due hereunder, will cause Landlord to incur cost not contemplated by this Lease,
the exact amount of such costs being extremely difficult and impracticable to
fix. Such cost include, without limitation, processing and accounting charges,
and late charges that may be imposed on Landlord by the terms of any note
secured by any encumbrance against the Premises, and late charges and penalties
due to late payment of real property taxes on the Premises. Therefore, if any
installment of Rent or any other sum due from Tenant is not received by Landlord
when due, Tenant shall promptly pay to Landlord all of the following, as
applicable: (a) an additional sum equal to five percent (5%) such delinquent
amount plus interest on such delinquent amount at the rate equal to the prime
rate plus three percent (3%) for the time period such payments are delinquent as
a late charge for every month or portion thereof that such sums remain unpaid,
(b) the amount of seventy five dollars ($75) for each three-day notice prepared
for or served on, Tenant, (c) the amount of fifty dollars ($50) relating to
checks for which there are not sufficient funds. If Tenants delivers to Landlord
a check for which there are not sufficient funds, Landlord may, at its sole
option, require Tenant to replace such check with a cashier' s check for the
amount of such check and all other charges payable hereunder. The parties agree
that this late charge and the other charges referenced above represent a fair
and reasonable estimate of the costs that Landlord will incur by reason of late
payment by Tenant. Acceptance of any late charge or other charges shall not
constitute a waiver by Landlord of Tenant's default with respect to the
delinquent amount, nor prevent Landlord from exercising any of the other rights
and remedies available to Landlord for any other breach of Tenant under this
Lease. If a late charge or other charge becomes payable for any three (3)
installments of Rent within any twelve (12) month period, then Landlord, at
Landlord's sole option, can either require the Rent be paid quarterly in
advance, or be paid monthly in advance by cashier's check or by electronic funds
transfer.

9. USE OF PREMISES:

         9.1 COMPLIANCE WITH LAWS, RECORDED MATTERS, AND RULES AND REGULATIONS:
The Premises are to be used solely for the purposes and uses specified in the
Basic Lease Information and for no other uses or purposes without Landlord's
prior written consent, which consent shall not be unreasonably withheld or
delayed so long as proposed used (i) does not involve the used of Hazardous
Materials other than as expressly permitted under the provisions of Section 29
below, (ii) does not require any additional parking in excess of the parking
spaces already licensed to Tenant pursuant to the provisions of Section 24 of
this Lease, and (iii) is compatible and consistent with the other uses then
being made in the Park and in other similar types of buildings in the vicinity
of the Park, as reasonably determined by Landlord. The uses of the Premises by
Tenant and its employees, representative, agents, invitees, licensees,
subtenants, customers or contractors (collectively, "Tenant's Representative")
shall be subject to, and at all times in compliance with, (a) any and all
applicable laws, ordinances, statutes, orders, and regulations as same exist
from time to time (collectively the "Laws"), (b) any and all documents, matters
or instruments, including without limitation, any declarations of covenants,
conditions and restrictions, and any supplements thereto, each of which has been
or hereafter is recorded in any official or public records with respect to the
Premises, the Building, the Lot and/or the Park, or any portion thereof
(collectively, the "Recorded Matters"), and (c) any and all rules and
regulations set forth in Exhibit C, attached to and made a part of this Lease,
and any other reasonable rules and regulations promulgated by Landlord now or
hereafter enacted relating to parking and the operation of the Premises, the
Building and the Park (collectively, the "Rules and Regulations"). Tenants
agrees to, and does hereby, assume full and complete responsibility to ensure
that the Premises are adequate to fully meet the needs and requirements of
Tenant's intended operations of its business within the Premises, and Tenant's
use of the Premises and that same are in
<PAGE>

compliance with all applicable Laws throughout the Term of this Lease.
Additionally, Tenant shall be solely responsible for the payment of all costs,
fees and expenses associated with any modifications, improvements or alterations
to the Premises, Building, the Common Areas and/or the Park occasioned by the
enactment of, or changes to, any Laws arising form Tenant's particular use of
the Premises or alterations, improvements or additions made to the Premises
regardless of when such Laws became effective.

      9.2   PROHIBITION ON USE: Tenant shall not use the Premises or permit
anything to be done in or about the Premises nor keep or bring anything therein
which will in any way conflict with any of the requirements of the Board of Fire
Underwriters or similar body now or hereafter constituted or in any way increase
the existing rate of or affect any policy of fire or other insurance upon the
Building or any of its content, or cause a cancellation of any insurance policy.
No auctions may be held or otherwise conducted in, or about the Premises, the
Building, the Lot or the Park without Landlord's written consent thereto, which
consent may be given or withheld in Landlord's sole discretion. Tenants shall
not do or permit anything to be done in or about the Premises which will any way
obstruct or interfere with the rights of Landlord, other tenants or occupants of
the Building, other buildings in the Park, or other persons or business in the
area, or injure or annoy other tenants or use or allow the Premises to be used
for any unlawful or objectionable purpose, as determined by Landlord, in its
reasonable discretion, for the benefit quite enjoyment and use by Landlord and
all other tenants or occupants of the Building or other buildings in the Park;
nor shall Tenant cause, maintain or permit any private or public nuisance in, on
or about the Premises, Building, Park and/or the Common Areas, including, but
not limited to, any offensive odors, noises, fumes or vibrations. Tenant shall
not damage or deface or otherwise commit or suffer to be committed any waste in,
upon or about the Premises. Tenant shall not place or store, nor permit any
other person or entity to place or store, any property, equipment materials,
supplies, personal property or any other items or good outside of the Premises
for any period of time. Tenant shall not permit any animals, including, but not
limited to, any household pets, to be brought or kept in or about the Premises.
Tenant shall place no loads upon the floors, walls, or ceilings in excess of the
maximum designed load permitted by the applicable Uniform Building Code or which
may damage the Building or outside areas; nor place any harmful liquids in the
drainage systems; nor dump or store waste materials, refuse or other such
materials, or allow such to remain outside the Building area, except for any
non-hazardous or non-harmful materials which may be stored in refuse dumpsters
or in any enclosed trash areas provided. Tenant shall honor the terms of all
Record Matters relating to the Premises, the Building, the Lot and/or the Park.
Tenant shall honor the Rules and Regulations. If Tenant fails to comply with
such Laws, Recorded Matters, Rules and Regulations or the provisions of this
Lease, Landlord shall have the right to collect from Tenant a reasonable sum as
a penalty, in addition to all rights and remedies of Landlord hereunder
including, but not limited to, the payment by Tenant to Landlord of all
Enforcement Expenses and Landlord's costs and expenses, if any to cure any such
failures of Tenant, if Landlord, at its sole option, elects to undertake such
cure.

10.   ALTERATIONS AND ADDITIONS; AND SURRENDER OF PREMISES:

      10.1  ALTERATIONS AND ADDITIONS: Tenants shall not install any signs,
fixtures, improvements nor make or permit any other alterations or additions to
the Premises in excess of $5,000.00 without the prior written consent of
Landlord. If any such alternation or addition is expressly permitted by
Landlord, Tenant shall deliver at least twenty (20) days prior notice to
Landlord, from the date Tenant intends to commence construction, sufficient to
enable Landlord to post a Notice of Non-Responsibility. In all events, Tenants
shall obtain all permits or other governmental approvals prior to commencing any
of such work and deliver a copy of same to Landlord. All alterations and
additions shall be installed by a licensed contractor approved by Landlord, at
Tenant's sole expense in compliance with all applicable Laws (including, but not
limited to, the ADA as defined herein), Recorded Matters, and Rules and
Regulations. Tenant shall keep the Premises and the property on which the
Premises are situated free from any liens arising out of any work performed,
materials furnished or obligations incurred by or on behalf of Tenant. As a
condition to Landlord's consent to the installation of any fixtures, additions
or other improvements, Landlord may require Tenant to post and obtain a
completion and indemnity bond for up to one hundred fifty percent (150%) of the
cost of the work.

      10.2  SURRENDER OF PREMISES: Upon the termination of this Lease, whether
by forfeiture, lapse of the time or otherwise, or upon the termination of
Tenant's right to possession of the Premises, Tenant will at once surrender and
deliver up the Premises, together with the fixtures (other than trade fixtures),
additions and improvements which Landlord has notified Tenant, in writing, that
Landlord will require Tenant not to remove, to Landlord in good condition and
repair (including, but not limited to, replacing all light bulbs and ballasts
not in good working condition) and in the condition in which the Premises
existed as of the Commencement Date, except for reasonable wear and tear.
Reasonable wear and tear shall not include any damage or deterioration to the
floors of the Premises arising from the use of the forklifts in, on or about the
Premises (including, without limitation, any marks or stains of any portion of
the floors), and any damage or deterioration that would have been prevented by
proper maintenance by Tenant or Tenant otherwise performing all of its
obligations under this Lease. Upon such termination of this Lease, Tenant shall
remove all tenant signage, trade fixtures, furniture, furnishings, personal
property, additions and other improvements unless Landlord request, in writing,
that

<PAGE>

Tenant not remove some or all of such fixtures (other than trade fixtures),
additions or improvements installed by, or on behalf of Tenant or situated in or
about the Premises. By the date which is twenty (20) days prior to such
termination of this Lease, Landlord shall notify Tenant in writing of those
fixtures (other than trade fixtures), alterations, additions, and other
improvements which Landlord shall require Tenant not to remove the Premises.
Tenant shall repair any damage caused by the installation or removal of such
signs, trade fixtures, furnishings, additions and improvements which are to be
removed from the Premises by the Tenant hereunder. If Landlord fails to so
notify Tenant at least twenty (20) days prior to such termination of this Lease,
then Tenant shall remove all tenant signage, alterations, furniture,
furnishings, trade fixtures, additions and other improvements installed in or
about the Premises by, or on behalf of Tenant. Tenant shall ensure that the
removal of such items and the repair of the Premises will be completed prior to
such termination of this Lease.

11.   REPAIRS AND MAINTENANCE:

      11.1  TENANT'S REPAIRS AND MAINTENANCE OBLIGATIONS: Except for those
portions of the Building to be maintained by Landlord, as provide in Sections
11.2 and 11.3 below, Tenant shall, at Tenant's sole cost and expense, keep and
maintain the Premises and the adjacent dock and staging areas in good, clean and
safe conditions and repair to the satisfaction of Landlord including, but not
limited to repairing any damage caused by Tenant or Tenant's Representatives and
replacing any property so damaged by Tenant or Tenant's Representatives. Without
limiting the generality of the foregoing, Tenant shall be solely responsible for
maintaining, repairing and replacing (a) all mechanical systems, heating,
ventilation and air conditioning systems exclusively serving the Premises not to
exceed $650 per each single repair, (b) all plumbing, electrical wiring and
equipment serving the Premises, (c) all interior lighting (including, without
limitation, light bulbs and/or ballasts) and exterior lighting serving the
Premises or adjacent to the Premises, (d) all glass, windows, window frames,
window casements, skylights, interior and exterior doors, door frames and door
closers, (e) all roll-up doors, ramps and dock equipment, including without
limitation, dock bumpers, dock plates, dock seals, dock levelers and dock lights
(f) all tenants signage, (g) lifts for disabled persons serving the Premises,
(h) sprinkler systems fire protection systems and security systems. (i) all
partitions, fixtures, equipment, interior painting, and interior walls and
floors of the Premises and every part thereof (including, without limitation,
any demising walls contiguous to any portion of the Premises).

      11.2  REIMBURSABLE REPAIRS AND MAINTENANCE OBLIGATIONS: Subject to the
provisions of Section 6 and 9 of this Lease and except for (i) the obligations
of Tenants set forth in Section 11.1 above, (ii) the obligations of Landlord set
forth in Section 11.3 below, and (iii) the repairs rendered necessary by the
intentional or negligent acts or omissions of Tenant or any Tenant's
Representatives, Landlord agrees, at Landlord's expense, subject to
reimbursement pursuant to Section 6 above, to keep in good repair the plumbing
and mechanical systems exterior to the Premises, any rail spur and rail
crossing, the roof, roof membranes, exterior walls of the Building, signage
(exclusive of tenant signage), and exterior electrical wiring and equipment,
exterior lighting, exterior glass, exterior doors/entrances and door closers
exterior window casements, exterior painting of the Building (exclusive of the
Premises), and underground utility and sewer pipes outside the exterior walls of
the Building. For purpose of this Section 11.2 the term "exterior" shall mean
outside of and not exclusively serving the Premises. Unless otherwise notified
by Landlord, in writing, that Landlord has elected to procure and maintain the
following described contract(s), Tenant shall procure and maintain (a) the
heating, ventilation and air conditioning systems preventative maintenance and
repair contract(s); such contract(s) to be on a bi-monthly or quarterly basis,
as reasonably determined by Landlord, and (b) the fire and sprinkler protection
services and preventative maintenance and repair contract(s), (including,
without limitation, monitoring services); such contract(s) to be on a bi-monthly
or quarterly basis, as reasonably determined by Landlord. Landlord reserves the
right, but without the obligations to do so, to procure and maintain (i) the
heating, ventilation and air conditioning systems preventative maintenance and
repair contract(s).and/or (ii) the fire and sprinkler protection services and
preventative maintenance and repair contract(s)(including, without limitation,
monitoring services). If Landlord so elects to procure and maintain any such
contract(s), Tenant will reimburse Landlord for the cost thereof in accordance
with the provisions of Section 6 above. If Tenant procures and maintains any
such contract(s), Tenant will promptly deliver to Landlord a true and complete
copy each such contract and any all renewals or extensions thereof, and each
service report or other summary received by Tenant pursuant to or in connection
with such contract(s).

      11.3  LANDLORD'S REPAIR AND MAINTENANCE OBLIGATIONS: Except for repairs
rendered necessary by the intentional or negligent acts or omissions of Tenant
or any Tenant's Representatives. Landlord agrees, at Landlord's sole cost and
expense, to (a) keep in good repair the structural portions of the floors,
foundations and exterior perimeter walls of the Building (exclusive of glass and
exterior doors), and (b) replace the structural portions of the roof of the
Building (excluding the roof membrane) as, and when, Landlord determines such
replacements to be necessary in Landlord's sole discretion.

      11.4  TENANT'S FAILURE TO PERFORM REPAIRS AND MAINTENANCE OBLIGATIONS:
Except for normal maintenance and repair of the items described above, Tenant
shall have no right of access to or right to install

<PAGE>

any device on the roof of the Building nor make any penetrations of the roof of
the Building without the express prior written consent of Landlord. If Tenant
refuses or neglects to repair and maintain the Premises and the adjacent areas
properly as required herein and to the reasonable satisfaction of Landlord,
Landlord may, but without obligation to do so at any time make such repairs
and/or maintenance without Landlord having any liability to Tenant for any loss
or damage that may accrue to Tenant's merchandise, fixtures or other property,
or to Tenant's business by reason thereof, except to the extent any damage is
caused by the willful misconduct or gross negligence of Landlord or its
authorized agents and representatives. In the event Landlord makes such repairs
and/or maintenance, upon completion thereof Tenant shall pay to Landlord, as
additional rent, the Landlord's cost for making such repairs and/or maintenance,
plus twenty percent (20%) for overhead, upon presentation of a bill thereof,
plus any Enforcement Expenses. The obligations of Tenant hereunder shall survive
the expiration of the Term of this Lease or the earlier termination thereof.
Tenants hereby waives any right to repair at the expenses of Landlord under any
applicable Laws now or hereafter in effect respecting the Premises.

12.   INSURANCE:

      12.1  TYPES OF INSURANCE: Tenant shall maintain in full force and effect
at all times during the Term of this Lease, at Tenant's sole cost and expense,
for the protection of Tenant and Landlord, as their interest may appear,
policies of insurance issued by a carrier or carriers reasonably acceptable to
Landlord and its lender(s) which afford the following coverage (i) worker's
compensation: statutory limits; (ii) employer's liability, as required by law,
with a minimum limit of $100,000 per employee and $500,000 per occurrence; (iii)
commercial general liability insurance (occurrence form) providing coverage
against any and all claims for bodily injury and property damage occurring in,
on or about the Premises arising out of Tenant's and Tenant's Representatives'
use and/or occupancy of the Premises. Such insurance shall include coverage for
blanket contractual liability, fire damage, premises, personal injury, completed
operations, products liability, personal and advertising, and a plate-glass
rider to provide coverage for all glass in, on or about the Premises including,
without limitation, skylights. Such insurance shall have combined single limit
of not less than One Million Dollars ($1,000,000) per occurrence with a Two
Million Dollar ($2,000,000) aggregate limit and excess/umbrella insurance in the
amount of Two Million Dollars ($2,000,000). If Tenants has other locations which
it owns or leases, the policy shall include an aggregate limit per location
endorsement. If necessary, as reasonably determined by Landlord, Tenant shall
provide for restoration of the aggregate limit; (iv) comprehensive automobile
liability insurance: a combined single limit of not less than $2,000,000 per
occurrence and insuring Tenant against liability for claims arising out of the
ownership, maintenance, or use of any owned, hired or non-owned automobiles; (v)
"all risk" or "special purpose" property assurance, including without limitation
, sprinkle leakage, boiler and machinery comprehensive form, if applicable,
covering damage to or loss of any personal property, trade fixtures, inventory,
fixtures and equipment located in on or about the Premises, and in addition,
coverage for flood, earthquake, and business interruption of Tenant, together
with , if the property of Tenant's invitees is to be kept in the Premises,
warehouser's legal liability or bailee customer insurance for the full
replacement cost of the property belonging to invitees and located in the
Premises. Such insurance shall be written on a replacement cost basis (without
deduction for depreciation) in an amount equal to one hundred percent (100%) of
the full replacement value of the aggregate of the items referred to in this
subparagraph (v); and (vi) such other insurance as Landlord deems necessary and
prudent or as may otherwise be required by any of Landlord's lenders or joint
venture partners.

      12.2  INSURANCE POLICIES: Insurance required to be maintained by Tenant
shall be written by companies (i) licensed to do business in the State of
California (ii) domiciled in the United States of America, and (iii) having a
"General Policyholders Rating" of at least A:X (or such higher rating as may be
required by a lender having a lien on the Premises) as a set forth in the most
current issue of "A.M. Best's Rating Guides." Any deductible amounts under any
of the insurance policies required hereunder shall not exceed One Thousand
Dollars ($1,000). Tenant shall deliver to Landlord certificates of insurance and
true and complete copies of any and all endorsements required herein for all
insurance required to be maintained by Tenant hereunder at the time of execution
of this Lease by Tenant. Tenant shall, at least thirty (30) days prior to
expiration of each policy, furnish Landlord with certificates of renewal or
"binders" thereof. Each certificate shall expressly provide that such policies
shall not be cancelable or otherwise subject to modification except after thirty
(30) days prior written notice to the parties named as additional insured as
required in this Lease (except for cancellation for nonpayment of premium, in
which event cancellation shall not take effect until at least ten (10) days'
notice has been given to Landlord). Tenant shall have the right to provide
insurance coverage which it is obligated to carry pursuant to the terms of this
Lease under a blanket policy expressly affords coverage for the Premises and for
Landlord as required by this Lease.

      12.3  ADDITIONAL INSUREDS AND COVERAGE: Landlord, any property management
company and/or agent of Landlord for the Premises, the Building, the Lot or the
Park, and any lender(s) of Landlord having a lien against the Premises, the
Building, the Lot or the Park shall be named as additional insureds under all of
the policies required in Section 12.1 (iii) above. Additionally, such policies
shall provide for severability of interest.

<PAGE>

All insurance to be maintained by Tenant shall, except for workers compensation
and employer's liability, be primary, without right of contribution from
insurance maintained by Landlord. Any umbrella/excess liability policy (which
shall be in "following form") shall provide that if the underlying aggregate is
exhausted, the excess coverage will drop down as primary insurance. The limits
of insurance maintained by Tenant shall not limit Tenant's liability under this
Lease. It is the parties' intention that the insurance to be procured and
maintained by Tenant as required herein shall provide coverage for any and all
damage or injury arising from or related to Tenant's operations of its business
and/or Tenant's or Tenant's Representatives' use of the Premises and/or any of
the areas within the Park, whether such events occur within the Premises (as
described in Exhibit A hereto) or in any other areas of the Park. It is not
contemplated or anticipated by the parties that the aforementioned risks of loss
be borne by Landlord's insurance carriers, rather it is contemplated and
anticipated by Landlord and Tenant that such risks of loss be borne by Tenant's
insurance carriers pursuant to the insurance policies procured and maintained by
Tenant as required herein.

      12.4  FAILURE OF TENANT TO PURCHASE AND MAINTAIN INSURANCE: In the event
Tenant does not purchased the insurance required in this Lease or keep the same
in full force and effect throughout the Term of this Lease (including any
renewals or extension), Landlord may, but without obligation to do so, purchased
the necessary insurance and pay the premiums therefor. If Landlord so elects to
purchase such insurance, Tenant shall promptly pay to Landlord as Additional
Rent, the amount so paid by Landlord, upon Landlord demand therefor. In
addition, Landlord may recover from Tenant and Tenant agrees to pay, as
Additional Rent, any and all Enforcement Expenses and damages which Landlord may
sustain by reason of Tenant's failure to obtain and maintain such insurance. If
Tenant fails to maintain any insurance required in this Lease, Tenant shall be
liable for all losses, damages and costs resulting from such failure.

13.   WAIVER OF SUBROGATION: Landlord and Tenant hereby mutually waive their
respective rights of recovery against each other for any loss of, or damage to,
either parties' property to the extend that such loss or damage is insured by
insurance policy required to be in effect at the time of such loss or damage.
Each party shall obtain any special endorsements, if required by its insurer
whereby the insurer waives its right of subrogation against the other party.
This provision is intended to waive fully, and for the benefit of the parties
hereto, any rights and/or claims which might give rise to a right of subrogation
in favor of any insurance carrier. The coverage obtained by Tenant pursuant to
Section 12 of this Lease shall include, without limitation, a waiver of
subrogation endorsement attached to the certificate of insurance. The provisions
of this Section 13 shall not apply in those instances in which such waiver of
subrogation would invalidate such insurance coverage or would cause either
party's insurance coverage to be voided or otherwise uncollectible.

14.   LIMITATION OF LIABILITY AND INDEMNITY: Except to the extent of damage
resulting from the sole active gross negligence or willful misconduct of
Landlord or its authorized representatives, Tenant agrees to protect, defend
(with counsel acceptable to Landlord) and hold Landlord and Landlord's lenders,
partners, members, property management company (if other than Landlord), agents,
directors, officers, employees, representatives, contractors, shareholder,
successors and assigns and each of their respective partner, members, directors,
employees, representatives, agents, contractors, shareholders, successors, and
assigns (collectively, the "Indemnities") harmless and indemnify the Indemnities
from and against all liabilities, damages, claims, losses, judgments, charges
and expenses (including reasonable attorneys' fees, cost of court and expenses
necessary in the prosecution or defense of any litigation including the
enforcement of this provision) arising from or in any way related to, directly
or indirectly, (i) Tenant's or Tenant's Representatives use of the Premises,
Building and /or the Park, (ii) the conduct of Tenant's business, (iii) from any
activity, work or thing done, permitted to suffered by Tenant in or about the
Premises, (iv) in any way connected with the Premises or with the improvements
or personal property therein, including, but not limited to, any liability for
injury to person or property of Tenant, Tenant's Representative, or third party
person, and/or (v) Tenant's failure to perform any covenant or obligation of
Tenant under this Lease. Tenant agrees that the obligations of Tenants herein
shall survive the expiration or earlier termination of this Lease.

      Except to the extent of damage resulting from the sole active gross
negligence or willful misconduct of Landlord or its authorized representatives,
to the fullest extent permitted by law, Tenants agrees that neither Landlord nor
any of Landlord's lender(s), partner, members, employees, representatives, legal
representatives, successors or assigns shall at any time or to any extent
whatsoever be liable, responsible or in any way accountable for any loss,
liability, injury, death or damage to persons or property which at any time may
be suffered or sustained by Tenant or by any person(s) whomsoever, who may at
any time be using, occupying or visiting the Premises, the Building or the Park,
including, but not limited to, any acts, errors or omissions by or on behalf of
any other tenants or occupants of the Building and/or the Park. Tenants shall
not in any event or circumstance, be permitted to offset or otherwise credit
against any payments of Rent required herein for matters for which Landlord may
be liable hereunder. Landlord and its authorized representatives shall not be
liable for any interference with light or air, or for any latent defect in the
Premises or the Building.

<PAGE>

15.   ASSIGNMENT AND SUBLEASING:

      15.1  PROHIBITION: Tenant shall not assign, mortgage, hypothecate,
encumber, grant any license or concession, pledge or otherwise transfer this
Lease (collectively, "assignment"), in whole or in part whether voluntarily or
involuntarily or by operation of law, nor sublet or permit occupancy by any
person other than tenant of all or any portion of the Premises without first
obtaining the prior written consent of Landlord, which consent shall not be
unreasonably withheld. Tenant hereby agrees that Landlord may withhold its
consent to any proposed sublease or assignment if the proposed sublease or
assignment if the proposed sublessee or assignee or its business is subject to
compliance with additional requirements of the ADA (defined below) and/or
Environmental Laws (defined below) beyond those requirements which are
applicable to Tenant, unless the proposed sublessee or assignee shall (a) first
deliver plans and specifications for complying with such additional requirements
and obtain Landlord's written consent thereto, and (b) comply with all the
Landlord's conditions for or contained in such consent, including without
limitation, requirements for security to assure the lien-free completion of such
improvements. If Tenants seeks to sublet or assign all or any portion of the
Premises, Tenants shall deliver to Landlord at least thirty (30) days prior to
the proposed commencement of the sublease or assignment (the "Proposed Effective
Date") the following: (i) the name of the proposed assignee or sublessee; (ii)
such information as to such assignee's or sublessee's financial responsibility
and standing as Landlord may reasonably require; and (iii) the aforementioned
plans and specifications, if any. Within ten (10) days after Landlord's receipt
of a written request from Tenant that Tenant seeks to sublet or assign all or
any portion of the premises, Landlord shall deliver to Tenant a copy of
Landlord's standard form of sublease of assignment agreement (as applicable),
which instrument shall be utilized for each proposed sublease or assignment (as
applicable), and such instrument shall include a provision whereby the assignee
or sublessee assumes all of Tenant's obligations hereunder and agrees to be
bound by the terms hereof. As Additional Rent hereunder, Tenant shall pay to
Landlord a fee in the amount of one hundred dollars ($100) plus Tenant shall
reimburse Landlord for actual legal and other expenses incurred by Landlord in
connection with any actual or proposed assignment or subletting. In the event
the sublease or assignment (1) by itself or taken together with prior
sublease(s) or partial assignment(s) covers or totals, as the case may be, more
than twenty-five percent (25%) of the rentable square feet of the Premises or
(2) is for a term which by itself or taken together with prior or other
subleases or partial assignment is greater than fifty percent (50%) of the
period remaining in the Term of this Lease as of the time of the Proposed
Effective Date, then Landlord shall have the right, to be exercised by giving
written notice to Tenant, to recapture the space described in the sublease or
assignment. If such recapture notice is given, it shall serve to terminate this
Lease with respect to the proposed sublease or assignment space, or, if the
proposed sublease or assignment space covers all the Premises, it shall serve to
terminate the entire term of this Lease in either case, as of the Proposed
Effective Date. However, no termination of this Lease with respect to part or
all of the Premises shall become effective without the prior written consent,
where necessary, of the holder of each deed of trust encumbering the Premises or
any part thereof. If this Lease is terminated pursuant to the foregoing with
respect to less than the entire Premises, the Rent shall be adjusted on the
basis of the proportion of square feet retained by Tenant to the square feet
originally demised and this Lease as so amended shall continue thereafter in
full force and effect. Each permitted assignee or sublessee shall assume and be
deemed to assume this Lease and shall be and remain liable jointly and severally
with Tenant for payment of Rent and for the due performance of, and compliance
with all the terms, covenants, conditions, and agreements herein contained on
Tenant's part to be performed or complied with, for the term of this Lease. No
assignment or subletting shall affect the continuing primary liability of Tenant
(which, following assignment, shall be joint and several with the assignee), and
Tenant shall not be released from performing any of the terms, covenants and
conditions of this Lease. Tenant hereby acknowledges and agrees that it
understands that Landlord's accounting department may process and accept Rent
payments without verifying that such payments are being made by Tenant, a
permitted sublessee or a permitted assignee in accordance with the provisions of
this Lease. Although such payments may be processed and accepted by such
accounting department personnel, any and all actions or omissions by the
personnel of Landlord's accounting department shall not be considered as
acceptance by Landlord of any proposed assignee or sublessee nor shall such
actions or omissions be deemed to be a substitute for the requirement that
Tenant obtain Landlord's prior written consent to any such subletting or
assignment, and any such actions or omissions by the personnel of Landlord's
accounting department shall not be considered as a voluntary relinquishment by
Landlord of any of its rights hereunder nor shall any voluntary relinquishment
of such rights be inferred therefrom. For purposes hereof, in the event Tenant
is a corporation, partnership, joint venture, trust or other entity other than a
natural person, any change in the direct or indirect ownership of Tenant
(whether pursuant to one or more transfers) which results in a change of more
than fifty percent (50%) in the direct or indirect ownership of Tenant shall be
deemed to be an assignment within the meaning of this Section 15 and shall be
subject to all the provisions hereof. Any and all options, first rights of
refusal, tenant improvement allowances and other similar rights granted to
Tenant in this Lease, if any, shall not be assignable by Tenant unless expressly
authorized in writing by Landlord.

<PAGE>

      15.2  EXCESS SUBLEASE RENTAL OR ASSIGNMENT CONSIDERATION: In the event of
any sublease or assignment of all or any portion of the Premises where the rent
or other consideration provided for in the sublease or assignment either
initially or over the term of the sublease or assignment exceeds the Rent or pro
rata portion of the Rent, as the case may be, for such space reserved in the
lease, Tenant shall pay the Landlord monthly, as Additional Rent, at the same
time as the monthly installments of Rent are payable hereunder, fifty percent
(50%) of the excess of each such payment of rent or other consideration in
excess of the Rent called for hereunder.

      15.3  WAIVER: Notwithstanding any assignment or sublease, or any
indulgences, waivers or extensions of time granted by Landlord to any assignee
or sublessee, or failure by Landlord to take action against any assignee or
sublessee, Tenant waives notice of any default of any assignee or sublessee and
agrees that Landlord may, at its option, proceed against Tenant without having
taken action against or joined such assignee or sublessee, except that Tenant
shall have the benefit of any indulgences, waivers and extensions of the time
granted to any such assignee or sublessee.

16.   AD VALOREM TAXES: Prior to delinquency, Tenant shall pay all taxes and
assessments levied upon trade fixtures, alterations, additions, improvements,
inventories and personal property located and/or installed on or in the Premises
by, or on behalf of, Tenant; and if requested by Landlord, Tenant shall promptly
deliver to Landlord copies of receipts for payment of all such taxes and
assessments. To the extent any such taxes are not separately assessed or billed
to Tenant, Tenant shall pay the amount thereof as invoiced by Landlord.

17.   SUBORDINATION: Without the necessity of any additional document being
executed by Tenant for the purpose of effecting a subordination, and at the
election of Landlord or any bona fide mortgagee or deed of trust beneficiary
with a lien on all or any portion of the Premises or any ground lessor with
respect to the land of which the Premises are a part, the rights of Tenant under
this Lease and this Lease shall be subject and subordinate at all times to: (i)
all ground leases or underlying leases which may now exist or hereafter be
executed affecting the Building or the land upon which the Building is situated
or both, and (ii) the lien of any mortgage or deed or trust which may now exist
or hereafter be executed in any amount for which the Building, the Lot, ground
leases or underlying leases, or Landlord's interest or estate in any of said
items is specified as security. Notwithstanding the foregoing, Landlord or any
such ground lessor, mortgagee, or any beneficiary shall have the right to
subordinate or cause to be subordinated any such ground leases or underlying
leases or any such liens to this Lease. If any ground lease or underlying lease
terminates for any reason or any mortgage or deed of trust is foreclosed or a
conveyance in lieu of foreclosure is made for any reason, Tenant shall,
notwithstanding any subordination and upon the request of such successor to
Landlord, attorn to and become the Tenant of the successor in interest to
Landlord, provided such successor in interest will not disturb Tenant's use,
occupancy or quiet enjoyment of the Premises so long as Tenant is not in default
of the terms and provisions of this Lease. The successor in interest to Landlord
following foreclosure, sale or deed in lieu thereof shall not be (a) liable for
any act or omission of any prior lessor or with respect to events occurring
prior to acquisition of ownership; (b) subject to any offsets or defenses which
Tenant might have against any prior lessor; (c) bound by prepayment of more than
one (1) month's Rent, except in those instances when Tenant pays Rent quarterly
in advance pursuant to Section 8 hereof, then not more than three months' Rent;
(d) liable to Tenant for any Security Deposit not actually received by such
successor in interest to the extent any portion or all of such Security Deposit
has not already been forfeited by, or refunded to, Tenant. Landlord shall be
liable to Tenant for all or any portion of the Security Deposit not forfeited
by, or refunded to Tenant, until and unless Landlord transfers such Security
Deposit too the successor in interest. Tenant covenants and agrees to execute
(and acknowledge if required by Landlord, any lender or ground lessor) and
deliver, within five (5) days of a demand or request by Landlord and in the form
requested by Landlord, ground lessor, mortgagee or beneficiary, any additional
documents evidencing the priority or subordination of this Lease with respect to
any such ground leases or underlying leases or the lien of any mortgage or deed
of trust. Tenant's failure to timely execute and deliver such additional
documents shall, at Landlord's option, constitute a material default hereunder.
It is further agreed that Tenant shall be liable to Landlord, and shall
indemnify Landlord from and against any loss , cost, damage or expense,
incidental, consequential, or otherwise, arising or accruing directly or
indirectly, from any failure of Tenant to execute or deliver to Landlord any
such additional documents, together with any and all Enforcement Expenses.

18.   RIGHT OF ENTRY: Tenant grants Landlord or its agents the right to enter
the Premises at all reasonable times for purposes of inspection, exhibition,
posting of notices, repair or alteration. At Landlord's option, Landlord shall
at all times have and retain a key with which to unlock all the doors in, upon
and about the Premises, excluding Tenant's vaults and safes. It is further
agreed that Landlord shall have the right to use any and all means Landlord
deems necessary to enter the Premises in an emergency. Landlord shall have the
right to place "for rent" or "for lease" signs on the outside of the Premises,
the Building and in the Common Areas. Landlord shall also have the right to
place "for sale" signs on the outside of the Building and in the Common Areas.
Tenant hereby waives any claim from damages or for any injury or inconvenience
to or interference with

<PAGE>

Tenant's business, or any other loss occasioned thereby except for any claim for
any of the foregoing arising out of the sole active gross negligence or willful
misconduct of Landlord or its authorized representatives.

19.   ESTOPPEL CERTIFICATE: Tenant shall execute (and acknowledge if required by
any lender or ground lessor) and deliver to Landlord, within five (5) days after
Landlord provides such to Tenant, a statement in writing certifying that this
Lease is unmodified and in full force and effect (or, if modified, stating the
nature of such modification), the date to which the Rent and other charges are
paid in advance, if any, acknowledging that there are not, to Tenant's
knowledge, any uncured defaults on the part of Landlord hereunder or specifying
such defaults as are claimed, and such other matters as Landlord may reasonably
require. Any such statement may be conclusively relied upon by Landlord and any
prospective purchaser or encumbrancer of the Premises. Tenant's failure to
deliver such statement within such time shall be conclusive upon the Tenant that
(a) this Lease is in full force and effect, without modification except as may
be represented by Landlord; (b) there are no uncured defaults in Landlord's
performance; and (c) not more than one month's Rent has been paid in advance,
except in those instances when Tenant pays Rent quarterly in advance pursuant to
Section 8 hereof, then not more than three month's Rent has been paid in
advance. Failure by Tenant to so deliver such certified estoppel certificate
shall be a material default of the provisions of this Lease. Tenant shall be
liable to Landlord, and shall indemnify Landlord from and against any loss,
cost, damage or expense, incidental, consequential, or otherwise, arising or
accruing directly or indirectly, from any failure of Tenant to execute or
deliver to Landlord any such certified estoppel certificate, together with any
and all Enforcement Expenses.

20.   TENANT'S DEFAULT: The occurrence of any one or more of the following
events shall, at Landlord's option, constitute a material default by Tenant of
the provisions of this Lease:

      20.1  The abandonment of the Premises by Tenant of the vacation of the
Premises by Tenant which would cause any insurance policy to be invalidated or
otherwise lapse. Tenant agrees to notice and service of notice as provided for
in this Lease and waives any right to any other or further notice or service of
notice which Tenant may have under any stature or law now or hereafter in
effect;

      20.2  The failure by Tenant to make any payment of Rent, Additional Rent
or any other payment required hereunder on the date said payment is due. Tenant
agrees to notice and service of notice as provided for in this Lease and waives
any right to any other or further notice or service of notice which Tenant may
under any stature or law now or hereafter in effect;

      20.3  The failure by Tenant to observe, perform or comply with any of the
conditions, covenants or provisions of this Lease (except failure to make any
payment of Rent and/or Additional Rent) and such failure is not cured within the
time period required under the provisions of this Lease. If such failure is
susceptible of cure but cannot reasonably be cured within the aforementioned
time period (if any), as determined solely by Landlord, Tenant shall promptly
commence the cure of such failure and thereafter diligently prosecute such cure
to completion within the time period specified by Landlord in any written notice
regarding such failure as may be delivered to Tenant by Landlord. In no event or
circumstance shall Tenant have more than fifteen (15) days to complete any such
cure, unless otherwise expressly agree to in writing Landlord (in Landlord's
sole discretion);

      20.4  The making of a general assignment by Tenant for the benefit of
creditors, the filing of a voluntary petition by Tenant or the filing of an
involuntary petition by any of Tenant's creditors seeking the rehabilitation,
liquidation, or reorganization of Tenant under any law relating to bankruptcy,
insolvency or other relief of debtors and, in the case of an involuntary action,
the failure to remove or discharge the same within sixty (60) days of such
filing, the appointment of a receiver or other custodian to take possession of
substantially all of Tenant's assets or this leasehold, Tenant's insolvency or
inability to pay Tenant's debts or failure generally to pay Tenant's debts when
due, any court entering a decree or order directing the winding up or
liquidation of Tenant or of substantially all of Tenant's assets, Tenant taking
any action toward the dissolution or winding up of Tenant's affairs, the
cessation or suspension of Tenant's use of the Premises, or the attachment,
execution or other judicial seizure of substantially all of Tenant's assets or
this leasehold;

      20.5  Tenant's use or storage of Hazardous Materials in, on or about the
Premises, the Building, the Lot and/or the Park other than as expressly
permitted by the provisions of Section 29 below; or

      20.6  The making of any material misrepresentation of omission by Tenant
in any materials delivered by or on behalf of Tenant to Landlord pursuant to
this Lease.

<PAGE>

21.   REMEDIES FOR TENANT'S DEFAULT:

      21.1  LANDLORD' RIGHTS: In the event or Tenant's material default under
this Lease, Landlord may terminate Tenant's right to possession of the Premises
by any lawful means in which case upon delivery of written notice by Landlord
this Lease shall terminate on the date specified by Landlord in such notice and
Tenant shall immediately surrender possession of the Premises to Landlord. In
addition, the Landlord shall have the immediate right of re-entry whether or not
this Lease is terminated, and if this right of re-entry is exercised following
abandonment of the Premises by Tenant, Landlord may consider any personal
property belonging to Tenant and left on the Premises to also have been
abandoned. No re-entry or taking possession of the Premises by Landlord pursuant
to this Section 21 shall be construed as an election to terminate this Lease
unless a written notice of such intention is given to Tenant. If Landlord relets
the Premises or any portion thereof, (i) Tenant shall be liable immediately to
Landlord for all costs Landlord incurs in reletting Premises or any part
thereof, including, without limitation, broker's commissions, expenses of
cleaning, redecorating, and further improving the Premises and other similar
costs (collectively, the "Reletting Costs"), and (ii) the rent received by
Landlord from such reletting shall be applied to the payment of, first, any
indebtedness from Tenant to Landlord other than Base Rent, Operating Expenses,
Tax Expenses, Administrative Expenses, Common Area Utility Costs, and Utility
Expenses; second, all costs including maintenance, incurred by Landlord in
reletting; and, third, Base Rent, Operating Expenses, Tax Expenses,
Administrative Expenses, Common Area Utility Costs, Utility Expenses, and all
other sums due under this Lease. Any and all of the Reletting Costs shall be
fully chargeable to Tenant and shall not be prorated or otherwise amortized in
relation to any new lease for the Premises or any portion thereof. After
deducting the payments referred to above, any sum remaining from the rental
Landlord receives from reletting shall be held by Landlord and applied in
payment of future Rent as Rent becomes due under this Lease. In no event shall
Tenant be entitled to any excess rent received by Landlord. Reletting may be for
a period shorter or longer than the remaining term of this Lease. No act by
Landlord other than giving written notice to Tenant shall terminate this Lease.
Acts of maintenance, efforts to relet the Premises or the appointment of a
receiver on Landlord's initiative to protect Landlord's interest under this
Lease shall not constitute a termination of Tenant's right to possession. So
long as this Lease is not terminated, Landlord shall have the right to remedy
any default of Tenant, to maintain or improve the Premises, to cause a receiver
to be appointed to administer the Premises and new or existing subleases and to
add to the Rent payable hereunder all of Landlord's reasonable costs in so
doing, with interest at the maximum rate permitted by law from the date of such
expenditure.

      21.2  DAMAGES RECOVERABLE: If Tenant breaches this Lease and abandons the
Premises before the end of the Term, or if Tenant's right to possession is
terminated by Landlord because of a breach or default under this Lease, then in
either such case, Landlord may recover from Tenant all damages suffered by
Landlord as a result of Tenant's failure to perform its obligations hereunder,
including, but not limited to, the portion of any broker's or leasing agent's
commission incurred with respect to the leasing of the Premises to Tenant for
the balance of the Term of the Lease remaining after the date on which Tenant is
in default of its obligations hereunder, and all Reletting Costs and the worth
at the time of the award (computed in accordance with paragraph (3) of
Subdivision (a) of Section 1951.2 of the California Civil Code) of the amount by
which the Rent then unpaid hereunder for the balance of the Lease Term exceeds
the amount of such loss of Rent for the same period which Tenant proves could be
reasonably avoided by Landlord and in such case, Landlord prior to the award,
may relet the Premises for the purpose of mitigating damages suffered by
Landlord because of Tenant's failure to perform its obligations hereunder;
provided, however that even though Tenant has abandoned the Premises following
such breach, this Lease shall nevertheless continue in full force and effect for
as long as Landlord does not terminate Tenant's right of possession, and until
such termination, Landlord shall have the remedy described in Section 1951.4 of
the California Civil Code (Landlord may continue this Lease in effect after
Tenant's breach and abandonment and recover Rent as it becomes due, if Tenant
has the right to sublet or assign, subject only to reasonable limitations) and
may enforce all its rights and remedies under this Lease, including the right to
recover the Rent from Tenant as it becomes due hereunder. The "worth at the time
of the award" within the meaning of Subparagraphs (a)(1) and (a)(2) of Section
1951.2 of the California Civil Code shall be computed by allowing interest at
the rate of ten percent (10%) per annum. Tenant waives redemption or relief from
forfeiture under California Code of Civil Procedure Sections 1174 and 1179, or
under any other present or future law, in the event Tenant is evicted or
Landlord takes possession of the Premises by reason of any default of Tenant
hereunder.

      21.3  RIGHTS AND REMEDIES CUMULATIVE: The foregoing right and remedies of
Landlord are not exclusive; they are cumulative in addition to any rights and
remedies now or hereafter existing at law, in equity by statute or otherwise, or
to any equitable remedies Landlord may have, and to any remedies Landlord may
have under bankruptcy laws or laws affecting creditor's rights generally. In
addition to all remedies set forth above, if Tenant materially defaults under
this Lease, any and all Base Rent waived by Landlord under Section 3 above shall
be immediately due and payable to Landlord and all options granted to Tenant
hereunder shall automatically terminate, unless otherwise expressly agreed to in
writing by Landlord.

<PAGE>

      21.4  WAIVER OF A DEFAULT: The waiver by Landlord of any default of any
provision of this Lease shall not be deemed or construed a waiver of any other
default by Tenant hereunder of any subsequent default of this Lease, except for
the default specified in the waiver.

22.   HOLDING OVER: If Tenant holds possession of the Premises after the
expiration of the Term of this Lease with Landlord's consent, Tenant shall
become a tenant from month-to-month upon the terms and provisions of this Lease,
provided the monthly Base Rent during such hold over period shall be 150% of the
Base Rent due on the last month of the Lease Term, payable in advance on or
before the first day of each month. Acceptance by Landlord of the monthly Base
Rent without the additional fifty percent (50%) increase of Base Rent shall not
be deemed or construed as a waiver by Landlord of any of its rights to collect
the increased amount of the Base Rent as provided herein at any time. Such
month-to-month tenancy shall not constitute renewal or extension for any further
term. All options, if any, granted under the terms of this Lease shall be deemed
automatically terminated and be of no force or effect during said month-to-month
tenancy. Tenant shall continue in possession until such tenancy shall be
terminated by either Landlord or Tenant giving written notice of termination to
the other party at least thirty (30) days prior to the effective date of
termination. This paragraph shall not be construed as Landlord's permission for
Tenant to hold over. Acceptance of Base Rent by Landlord following expiration or
termination of this Lease shall not constitute a renewal of this Lease.

23.   LANDLORD'S DEFAULT: Landlord shall not be deemed in breach or default of
this Lease unless Landlord fails within a reasonable time to perform an
obligation required to be performed by Landlord hereunder. For purposes of this
provision, a reasonable time shall not be less than thirty (30) days after
receipt by Landlord of written notice specifying the nature of the obligation
Landlord has not performed; provided, however, that if the nature of Landlord's
obligation is such that more than thirty (30) days, after receipt of written
notice, is reasonably necessary for its performance, then Landlord shall not be
in breach or default of this Lease if performance of such obligation is
commenced within such thirty (30) day period and thereafter diligently pursued
to completion.

24.   PARKING: Tenant shall have a license to use the number of non-designated
and non-exclusive parking spaces specified in the Basic Lease Information.
Landlord shall exercise reasonable efforts to insure that such spaces are
available to Tenant for its use, but Landlord shall not be required to enforce
Tenant's right to use the same.

25.   SALE OF PREMISES: In the event of any sale of the Premises by Landlord or
the cessation otherwise of Landlord's interest therein. Landlord shall be and is
hereby entirely released from any and all of its obligations to perform or
further perform under this Lease and from all liability hereunder accruing from
or after the date of such sale; and the purchaser, at such sale or any
subsequent sale of the Premises shall be deemed, without any further agreement
between the parties of their successors in interest or between the parties and
any such purchaser, to have assumed and agreed to carry out any and all of the
covenants and obligations of the Landlord under this Lease. For purposes of this
Section 25, the term "Landlord" means only the owner and/or agent of the owner
as such parties exist as of the date on which Tenant executes this Lease. A
ground lease or similar long term lease by Landlord of the entire Building, of
which the premises are a part, shall be deemed a sale within the meaning of this
Section 25. Tenant agrees to attorn to such new owner provided such new owner
does not disturb Tenant's use, occupancy or quiet enjoyment of the Premises so
long as Tenant is not in default of any of the provisions of this Lease.

26.   WAIVER: No delay or omission in the exercise of any right or remedy of
Landlord on any default by Tenant shall impair such a right or remedy or be
construed as a waiver. The subsequent acceptance of Rent by Landlord after
default by Tenant of any covenant or term of this Lease shall not deemed a
waiver of such default, other than a waiver of timely payment of the particular
Rent payment involved, and shall not prevent Landlord from maintaining an
unlawful detainer or other action based on such breach. No payment by Tenant or
receipt by Landlord of a lesser amount than the monthly Rent and other sums due
hereunder shall be deemed to be other than on account of the earliest Rent of
other sums due, nor shall any endorsement or statement on any check or
accompanying any check or payment be deemed an accord and satisfaction; and
Landlord may accept such check or payment without prejudice to Landlord's right
to recover the balance of such Rent or other sum or pursue any other remedy
provided in this Lease. No failure, partial exercise or delay on the part of the
Landlord in exercising any right, power or privilege hereunder shall operate as
a waiver thereof.

27.   CASUALTY DAMAGE: If the Premises or any part thereof shall be damaged by
fire or other casualty, Tenant shall give prompt written notice thereof to
Landlord. In case the Building shall be so damaged by fire or other casualty
that substantial alteration or reconstruction of the Building shall, in
Landlord's sole opinion, be required (whether or not the Premises shall have
been damaged by such fire or other casualty), Landlord may, at its option,
terminate this Lease by notifying Tenant in writing of such termination within
ninety (90) days after the date of such damage, in which event the Rent shall be
abated as of the date of such damage. If Landlord does not elect to terminate
this Lease, and provided insurance proceeds and any contributions from Tenant,
if

<PAGE>

necessary, are available to fully repair the damage, Landlord shall within one
hundred twenty (120) days after the date of such damage commence to repair and
restore the Building and shall proceed with reasonable diligence to restore the
Building (except that Landlord shall not be responsible for delays outside its
control) to substantially the same condition in which it was immediately prior
to the happening of the casualty; provided, Landlord shall not be required to
rebuild, repair, or replace any part of Tenant's furniture, furnishings,
fixtures and/or equipment removable by Tenant or any improvements, alterations
or additions installed by or for the benefit of Tenant under the provisions of
this Lease. Landlord shall not in any event be required to spend for such work
an amount in excess of the insurance proceeds (excluding any deductible) and any
contributions from Tenant, if necessary, actually received by Landlord as a
result of the fire or other casualty. Landlord shall not be liable for any
inconvenience or annoyance to Tenant, injury to the business of Tenant, loss of
use of any part of the Premises by the Tenant or loss of Tenant's personal
property resulting in any way from such damage or the repair thereof, except
that, subject to the provisions of the next sentence, Landlord shall allow
Tenant a fair diminution of Rent during the time and to the extent the Premises
are unfit for occupancy. Notwithstanding anything to the contrary contained
herein, if the Premises or any other portion of the Building be damaged by fire
or other casualty resulting from the intentional or negligent acts or omissions
of Tenant or any of Tenant's Representatives, (i) the Rent shall not be
diminished during the repair of such damage, (ii) Tenant shall not have any
right to terminate this Lease due to the occurrence of such casualty or damage,
and (iii) Tenant shall be liable to Landlord for the cost and expense of the
repair and restoration of all or any portion of the Building caused thereby
(including, without limitation, any deductible) to the extent such cost and
expense is not covered by insurance proceeds. In the event the holder of any
indebtedness secured by the Premises requires that the insurance proceeds be
applied to such indebtedness, then Landlord shall have the right to terminate
this Lease by delivering written notice of termination to Tenant within thirty
(30) days after the date of notice to Tenant of any such event, whereupon all
rights and obligations shall cease and terminate hereunder except for those
obligations expressly intended to survive any such termination of this Lease.
Except as otherwise provided in this Section 27, Tenant hereby waives the
provisions of Sections 1932(2.), 1933(4.), 1941 and 1942 of the California Civil
Code.

28.   CONDEMNATION: If twenty-five percent (25%) or more of the Premises is
condemned by eminent domain, inversely condemned or sold in lieu of condemnation
for any public or quasi-public use or purpose ("Condemned"), then Tenant or
Landlord may terminate this Lease as of the date when physical possession of the
Premises is taken and title vests in such condemning authority, and Rent shall
be adjusted to the date of termination. Tenant shall not because of such
condemnation assert any claim against Landlord or the condemning authority for
any compensation because of such condemnation, and Landlord shall be entitled to
receive the entire amount of any award without deduction for any estate of
interest or other interest of Tenant. If neither party elects to terminate this
Lease, Landlord shall, if necessary, promptly proceed to restore the Premises or
the Building to substantially its same condition prior to such partial
condemnation, allowing for the reasonable effects of such partial condemnation,
and a proportionate allowance shall be made to Tenant, as solely determined by
Landlord, for the Rent corresponding to the time during which, and to the part
of the Premises of which, Tenant is deprived on account of such partial
condemnation and restoration. Landlord shall not be required to spend funds for
restoration in excess of the amount received by Landlord as compensation
awarded.

29.   ENVIRONMENTAL MATTERS/HAZARDOUS MATERIALS:

      29.1  HAZARDOUS MATERIALS DISCLOSURE CERTIFICATE: Prior to executing this
Lease, Tenant has completed, executed and delivered to Landlord Tenant's initial
Hazardous Materials Disclosure Certificate (the "Initial HazMat Certificate"), a
copy of which is attached hereto as Exhibit G and incorporated herein by this
reference. Tenant covenants, represents and warrants to Landlord that the
information on the Initial HazMat Certificate is true and correct and accurately
describes the use(s) of Hazardous Materials which will be made and/or used on
the Premises by Tenant. Tenant shall commencing with the date which is one year
from the Commencement Date and continuing every year thereafter, complete,
execute, and deliver to Landlord, a Hazardous Materials Disclosure Certificate (
"the HazMat Certificate" ) describing Tenant's present use of Hazardous
Materials on the Premises, and any other reasonably necessary documents as
requested by Landlord. The HazMat Certificate required hereunder shall be in
substantially the form as that which is attached hereto as Exhibit E.

      29.2  DEFINITION OF HAZARDOUS MATERIALS: As used in this Lease, the term
Hazardous Materials shall mean and include (a) any hazardous or toxic wastes,
materials or substances, and other pollutants or contaminants, which are or
become regulated by any Environmental Laws; (b) petroleum, petroleum by
products, gasoline, diesel fuel, crude oil or any fraction thereof; (c) asbestos
and asbestos containing material, in any form, whether friable or non-friable;
(d) polychlorinated biphenyls, (e) radioactive materials; (f) lead and
lead-containing materials; (g) any other material, waste or substance displaying
toxic, reactive, ignitable or corrosive characteristics, as all such terms are
used in their broadest sense, and are defined or become defined by any
Environmental Law (defined below); or (h) any materials which cause or threatens
to cause a nuisance

<PAGE>

upon or waste to any portion of the Premises, the Building, the Lot, the Park or
any surrounding property; or poses or threatens to pose a hazard to the health
and safety of persons on the Premises or any surrounding property.

      29.3  PROHIBITION; ENVIRONMENTAL LAWS: Tenant shall not be entitled to use
nor store any Hazardous Materials on, in, or about the Premises, the Building,
the Lot and the Park, or any portion of the foregoing, without, in each
instance, obtaining Landlord's prior written consent thereto. If Landlord
consents to any such usage or storage, then Tenant shall be permitted to use
and/or store only those Hazardous Materials that are necessary for Tenant's
business and to the extent disclosed in the HazMat Certificate and as expressly
approved by Landlord in writing, provided that such usage and storage is only to
the extent of the quantities of Hazardous Materials as specified in the then
applicable HazMat Certificate as expressly approved by Landlord and provided
further that such usage and storage is in full compliance with any and all
local, state and federal environmental, health and/or safety-related laws,
statutes, orders, standards, courts' decisions, ordinances, rules and
regulations (as interpreted by judicial and administrative decisions), decrees,
directives, guidelines, permits or permit conditions, currently existing and as
amended, enacted, issued or adopted in the future which are or become applicable
to Tenant or all or any portion of the Premises (collectively, the
"Environmental Laws"). Tenant agrees that any changes to the type and/or
quantities of Hazardous Materials specified in the most recent HazMat
Certificate may be implemented only with the Prior written consent of Landlord,
which consent may be given or withheld in Landlord's sole discretion. Tenant
shall not be entitled nor permitted to install any tanks under, on or about the
Premises for the storage of Hazardous Materials without the express written
consent of Landlord, which may be given or withheld in Landlord's sole
discretion. Landlord shall have the right at all times during the Term of this
Lease to (i) inspect the Premises, (ii) conduct tests and investigations to
determine whether Tenant is in compliance with the provisions of this Section
29, and (iii) request lists of all Hazardous Materials used, stored or otherwise
located on, under or about any portion of the Premises and/or the Common Areas.
The cost of all such inspections, tests and investigations shall be borne solely
by Tenant, if Landlord reasonably determines that Tenant or any of Tenant's
Representatives are directly or indirectly responsible in any manner for any
contamination revealed by such inspections, tests and investigations. The
aforementioned rights granted herein to Landlord and its representatives shall
not create (a) a duty on Landlord's part to inspect, test, investigate, monitor
or otherwise observe the Premises or the activities of Tenant and Tenant's
Representatives with respect to Hazardous Materials, including without
limitation, Tenant's operation, use and any remediation related thereto, or (b)
liability on the part of Landlord and its representatives for Tenant's use,
storage, disposal or remediation of Hazardous Materials, it being understood
that Tenant shall be solely responsible for all liability in connection
therewith.

      29.4  TENANT'S ENVIRONMENTAL OBLIGATIONS: Tenant shall give to Landlord
immediate verbal and follow-up written notice of any spills, releases,
discharges, disposals, emissions, migrations, removals or transportation of
Hazardous Materials on, under or about any portion of the Premises or in any
Common Areas. Tenant, at its sole cost and expense, covenants and warrants to
promptly investigate, clean up, remove, restore and otherwise remediate
(including, without limitation, preparation of any feasibility studies or
reports and the performance of any and all closures) any spill, release,
discharge, disposal, emission, migration or transportation of Hazardous
Materials arising from or related to the intentional or negligent acts or
omissions of Tenant or Tenant's Representatives such that the affected portions
of the Park and any adjacent property are returned to the condition existing
prior to the appearance of such Hazardous Materials. Any such investigation,
clean up, removal, restoration and other remediation shall only be performed
after Tenant has obtained Landlord's prior written consent, which consent shall
not be unreasonably withheld so long as such actions would not potentially have
a material adverse long-term or short-term effect on any portion of the
Premises, the Building, the Lot or the Park. Notwithstanding the foregoing,
Tenant shall be entitled to respond immediately to an emergency without first
obtaining Landlord's prior written consent. Tenant, at its sole cost and
expense, shall conduct and perform, or cause to be conducted and performed, all
closures as required by any Environmental Laws or any agencies or other
governmental authorities having jurisdiction thereof. If Tenant fails to so
promptly investigate, clean up, remove, restore, provide closure or otherwise so
remediate, Landlord may, but without obligation to do so, take any and all steps
necessary to rectify the same and Tenant shall promptly reimburse Landlord, upon
demand, for all costs and expenses to Landlord of performing investigation,
clean up, removal, restoration, closure and remediation work. All such work
undertaken by Tenant, as required herein, shall be performed in such a manner so
as to enable Landlord to make full economic use of the Premises, the Building,
the Lot and the Park after the satisfaction completion of such work.

      29.5  ENVIRONMENTAL INDEMNITY: In addition to Tenant's obligations as set
forth hereinabove, Tenant and Tenant's officers and directors agree to, and
shall, protect, indemnify, defend (with counsel acceptable to Landlord) and hold
Landlord and the other Indemnitees harmless from and against any and all claims,
judgments, damages, penalties, fines, liabilities, losses (including, without
limitation, diminution in value of any portion of the Premises, the Building,
the Lot or the Park, damages for the loss of or restriction on the use of
rentable or usable space, and from any adverse impact of Landlord's marketing of
any space within the building and/or Park), suits, administrative proceedings
and costs (including, but not limited to attorneys'

<PAGE>

and consultant fees and court costs) arising at any time during or after the
Term of this Lease in connection with or related to, directly or indirectly, the
use, presence, transportation, storage, disposal, migration, removal, spill,
release or discharge of Hazardous Materials on, in or about any portion of the
Premises, the Common Areas, the Building, the Lot or the Park as a result
(directly or indirectly) of the intentional or negligent acts or omissions of
Tenant or any of Tenant's Representatives. Neither the written consent of
Landlord to the presence, use or storage of Hazardous Materials in, on, under or
about any portion of the Premises, the Building, the Lot and/or the Park, nor
the strict compliance by Tenant with all Environmental Laws shall excuse Tenant
and Tenant's officers and directors from its obligations of indemnification
pursuant hereto. Tenant shall not be relieved of its indemnification obligations
under the provisions of this Section 29.5 due to Landlord's status as either an
"owner" or "operator" under any Environmental Laws.

      29.6  SURVIVAL: Tenant's obligations and liabilities pursuant to the
provisions of this Section 29 shall survive the expiration or earlier
termination of this Lease. If it is determined by Landlord that the condition of
all or any portion of the Premises, the Building, the Lot and/or the Park is not
in compliance with the provisions of this Lease with respect to Hazardous
Materials, including without limitation all Environmental Laws at the expiration
or earlier termination of this Lease, then in Landlord's sole discretion,
Landlord may require Tenant to hold over possession of the Premises until Tenant
can surrender the Premises to Landlord in the condition in which the Premises
existed as of the Commencement Date and prior to the appearance of such
Hazardous Materials, except for reasonable wear and tear, including without
limitation, the conduct or performance of any closures as required by any
Environmental Laws. The burden of proof hereunder shall be upon Tenant. For
purposes hereof, the term "reasonable wear and tear" shall not include any
deterioration in the condition or diminution of the value of any portion of the
Premises, the Building, the Lot and/ or the Park in any manner whatsoever
related to directly, or indirectly, Hazardous materials. Any such holdover by
Tenant will be with Landlord's consent, will not be terminable by Tenant in any
event or circumstance and will otherwise be subjected to the provisions of
Section 22 of this Lease.

30.   FINANCIAL STATEMENTS: Tenant, for the reliance of Landlord, any lender
holding or anticipated to acquire a lien upon the Premises, the Building or the
Park or any portion thereof, or any prospective purchaser of the Building or the
Park or any portion thereof, within ten (10) days after Landlord's request
therefor, but not more often than once annually so long as Tenant is not in
default of this Lease, shall deliver to Landlord then current audited financial
statements of Tenant (including interim periods following the end of last fiscal
year for which annual statements are available) which statements shall be
prepared or compiled by a certified public accountant and shall present fairly
the financial condition of Tenant at such dates and the results of its
operations and changes in its financial positions for the periods ended on such
dates. If an audited financial statement has not been prepared, Tenant shall
provide Landlord with an unaudited financial statement and/or such other
information, the type and form of which are acceptable to Landlord in Landlord's
reasonable discretion, which reflects the financial condition of Tenant. If
Landlord so requests, Tenant shall deliver to Landlord an opinion of certified
public accountant, including a balance sheet and profit and loss statement for
the most recent prior year, all prepared in accordance with generally accepted
accounting principles consistently applied. Any and all options granted to
Tenant's financial condition at the time of Tenant's exercise of any such
option.

31.   GENERAL PROVISIONS

      31.1  TIME. Time is of the essence in this Lease and with respect to each
and all of its provisions with performance is a factor.

      31.2  SUCCESSORS AND ASSIGNS. The covenants and conditions herein
contained, subject to the provisions as assignment, apply to the bind the heirs,
successors, executors, administrators and assigns of the parties hereto.

      31.3  RECORDATION. Tenant shall not record this Lease or a short form
memorandum hereof without the prior written consent of the Landlord.

      31.4  LANDLORD'S PERSONAL LIABILITY. The liability of Landlord (which, for
purposes of this Lease, shall include landlord and the owner of the Building if
other than Landlord) to Tenant for any default by Landlord under the terms of
this Lease shall be limited to the actual interest of Landlord and its present
or future partners or members in the Premises or the Building and Tenant agrees
to look solely to the Premises for satisfaction of any liability and shall not
look to other assets of Landlord nor seek any recourse against the assets of the
individual partners, members, directors, officers, shareholders, agents or
employees of Landlord (including without limitation, any property management
company of Landlord); it being intended that Landlord and the individual
partners, members, directors, officers, shareholders, agents and employees of
Landlord

<PAGE>

(including without limitaion, and property management company of Landlord) shall
not be personally liable in any manner whatsoever for any judgment or
deficiency. The liability of Landlord under this Lease is limited to its actual
period of ownership of title to the Building, and Landlord shall be
automatically released from further performance under this Lease upon transfer
of landlord's interest in the Premises or the Building.

      31.5  SEPARABILITY. Any provisions of this Lease which shall prove to be
invalid, void or illegal shall in no way affect, impair or invalidate any other
provisions hereof and such other provision shall remain in full force and
effect.

      31.6  CHOICE OF LAW. This Lease shall be governed by, and construed in
accordance with, the laws of the State of California.

      31.7  ATTORNEYS' FEES. In the event any dispute between the parties
results in litigation or other proceeding, the prevailing party shall be
reimbursed by the party not prevailing for all reasonable costs and expenses,
including, without limitation, reasonable attorneys' and experts' fees and costs
incurred by the prevailing party in connection with such litigation or other
proceeding, and any appeal thereof. Such costs, expenses and fees shall be
included in and made a part of the judgment recovered by the prevailing party,
if any.

      31.8  ENTIRE AGREEMENT. This Lease supersedes any prior agreements,
representations, negotiations or correspondence between the parties, and
contains the entire agreement of the parties on matters covered. No other
agreement, statement or promise made by any party, that is not in writing and
signed by all parties to this Lease, shall be binding.

      31.9  WARRANTY OF AUTHORITY. On the date that Tenant executes this Lease,
Tenant shall deliver to Landlord an original certificate of status for Tenant
issued by the California Secretary of State or statement of partnership for
Tenant recorded in the country in which the Premises are located, as applicable,
and such other documents as Landlord may reasonably request with regard to the
lawful existence of Tenant. Each person executing this Lease on behalf of a
party represents and warrants that (1) such person is duly and validly
authorized to do so on behalf of the entity it purports to so bind, and (2) if
such party is a partnership, corporation or trustee, that such partnership,
corporation or trustee has full right and authority to enter into this Lease and
perform all of its obligations hereunder. Tenant herby warrants that this Lease
is valid and binding upon Tenant and enforceable against Tenant in accordance
with its terms.

      31.10 NOTICES. Any and all notices and demands required or permitted to be
given hereunder to Landlord shall be in writing and shall be sent: (a) by United
States mail, certified and postage prepaid; or (b) by personal delivery; or (c)
by overnight courier, addressed to Landlord at 101 Lincoln Centre Drive, Fourth
Floor, Foster City, California 94404-1167. Any and all notices and demands
required or permitted to be given hereunder to Tenant shall be in writing and
shall be sent: (i) by United States mail, certified and postage prepaid; or (ii)
by personal delivery to any employee or agent of Tenant over the age of eighteen
(18) years of age; or (iii) by overnight courier, all of which shall be
addressed to Tenant at the Premises. Notice and/or demand shall be deemed given
upon the earlier of actual receipt of the third day following deposit in the
United States mail. Any notice or requirement of service required by any statute
or law now or hereafter in effect, including, but not limited to, California
Code of Civil Procedure Sections 1161, 1161.1, and 1162 (including any
amendments, supplements or substitutions thereof), is hereby waived by Tenant.

      31.11 JOINT AND SEVERAL. If Tenant consists of more than one person or
entity, the obligations of all such persons or entities shall be joint and
several.

      31.12 COVENANTS AND CONDITIONS. Each provision to be performed by Tenant
hereunder shall be deemed to be both a covenant and a condition.

      31.13 WAIVER OF JURY TRIAL. The parties hereto shall and they hereby do
waive trial by jury in any action, proceeding or counterclaim brought by either
of the parties hereto against the other on any matters whatsoever arising out of
or in any way related to this Lease, the relationship of Landlord and Tenant,
Tenant's use or occupancy of the Premises, the Building of the Park, and/or any
claim of injury, loss or damage.

      31.14 COUNTERCLAIMS. In the event Landlord commences any proceedings for
nonpayment of Rent, Additional Rent, or any other sums or amounts due hereunder,
Tenant shall not interpose any counterclaim or whatever nature or description in
any such proceedings, provided, however, nothing contained herein shall be
deemed or construed as a waiver of the Tenant's right to assert such claims in
any separate action brought by Tenant or the right to offset the amount of any
final judgment owed by Landlord to Tenant.

<PAGE>

      31.15 UNDERLINING. The use of underlining within the Lease is for
Landlord's reference purposes only and no other meaning or emphasis is intended
by this use, not should any be inferred.

      31.16 MERGER. The voluntary or other surrender of this Lease by Tenant,
the mutual termination or cancellation hereof by Landlord and Tenant, or a
termination of this Lease by Landlord for a material default by Tenant
hereunder, shall not work a merger, and, at the sole option of Landlord, (i)
shall terminate all or any existing subleases or subtenancies, or (ii) may
operate as an assignment to Landlord of any of all of such subleases or
subtenancies. Landlord's election of either or both of the foregoing option
shall be exercised by delivery by Landlord of written notice thereof to Tenant
and all known subtenants under any sublease.

32.   SIGNS: All signs and graphics of every kind visible in or from public view
or corridors or the exterior of the Premises shall be subject to Landlord's
prior written approval and shall be subject to any applicable governmental laws,
ordinances and regulations and in compliance with Landlord's sign criteria as
same may exist from time to time or as set forth in Exhibit H hereto and made a
part hereof. Tenant shall remove all such signs and graphics prior to the
termination of this Lease. Such installations and removals shall be made in a
manner as to avoid damage or defacement of the Premises; and Tenant shall repair
any damage or defacement, including without limitation, discoloration caused by
such installation or removal. Landlord shall have the right, at its option, to
deduct from the Security Deposit such sums as are reasonably necessary to remove
such signs, including, but not limited to, the costs and expenses associated
with any repairs necessitated by such removal. Notwithstanding the foregoing, in
no event shall any: (a) neon, flashing or moving sign(s) or (b) sign(s) which
shall interfere with the visibility of any sign, awning, canopy, advertising
matter, or decoration of any kind of any other business or occupant of the
Building of the Park be permitted hereunder. Tenant further agrees to maintain
any such sign, awning, canopy, advertising matter, lettering, decoration or
other thing as may be approved in good condition and repair at all times.

33.   MORTGAGEE PROTECTION: Upon any default on the part of Landlord, Tenant
will give written notice by registered or certified mail to any beneficiary of a
deed of trust or mortgagee of a mortgage covering the Premises who has provided
Tenant with notice of their interest together with an address for receiving
notice, and shall offer such beneficiary or mortgagee a reasonable opportunity
to cure the default (which, in no event shall be less than ninety (90) days),
including time to obtain possession of the Premises by power of sale or a
judicial foreclosure, if such should prove necessary to effect a cure. If such
default cannot be cured within such time period, then such additional time as
may be necessary will be given to such beneficiary or mortgagee to effect such
cure so long as such beneficiary or mortgagee has commenced the cure within the
original time period and thereafter diligently pursues such cure to completion,
in which event this Lease shall be terminated while such cure is being
diligently pursued. Tenant agrees that each lender to whom this Lease has been
assigned by Landlord is an express third party beneficiary hereof. Tenant shall
not make any prepayment of Rent more than one (1) month in advance without the
prior written consent of each such lender, except if Tenant is required to make
quarterly payments of Rent in advance pursuant to the provisions of Section 8
above. Tenant waives the collection of any deposit from such lender(s) or any
purchaser at a foreclosure sale of such lender(s)' deed of trust unless the
lender(s) or such purchaser shall have actually received and not refunded the
deposit. Tenant agrees to make all payments under this Lease to the lender with
the most senior encumbrance upon receiving a direction, in writing, to pay said
amounts to such lender. Tenant shall comply with such written direction to pay
without determining whether an event of default exists under such lender's loan
to Landlord.

34.   QUITCLAIM: Upon any termination of this Lease, Tenant shall, at Landlord's
request, execute, have acknowledged and deliver to Landlord a quitclaim deed of
Tenant's interest in and to the Premises. If Tenant fails to so deliver to
Landlord such a quitclaim deed, Tenant hereby agrees that Landlord shall have
the full authority and right to record such a quitclaim deed signed only by
Landlord and such quitclaim deed shall be deemed conclusive and binding upon
Tenant.

35.   MODIFICATIONS FOR LENDER: If, in connection with obtaining financing for
the Premises or any portion thereof, Landlord's lender shall request reasonable
modifications(s) to this Lease as a condition to such financing, Tenant shall
not unreasonably withhold, delay or defer its consent thereto, provided such
modifications do not materially adversely affect Tenant's rights hereunder or
the use, occupancy or quiet enjoyment of Tenant hereunder.

36.   WARRANTIES OF TENANT: Tenant hereby warrants and represents to Landlord,
for the express benefit of Landlord, that Tenant has undertaken a complete and
independent evaluation of the risks inherent in the execution of this Lease and
the operation of the Premises for the use permitted hereby, and that, based upon
said independent evaluation, Tenant has elected to enter into this Lease and
hereby assumes all risks with respect thereto. Tenant hereby further warrants
and represents to Landlord, for the express benefit of Landlord, that in
entering into this Lease, Tenant has not relied upon any statement, fact,
promise or representation (whether express or implied, written or oral) not
specifically set forth herein in writing and that any statement, fact,

<PAGE>

promise or representation (whether express or implied, written or oral) made at
any time to Tenant, which is not expressly incorporated herein in writing, is
hereby waived by Tenant.

37.   COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT: Landlord and Tenant
hereby agree and acknowledge that the Premises, the Building and/or the Park may
be subject to the requirements of the Americans with Disabilities Act, a federal
law codified at 42 U.S.C. 12101 et seq, including, but not limited to Title III
thereof, all regulations and guidelines related thereto, together with any and
all laws, rules, regulations, ordinances, codes and statures now or hereafter
enacted by local or state agencies having jurisdiction thereof, including all
requirements of Title 24 of the State of California, as the same may be in
effect on the date of this Lease and may be hereafter modified, amended or
supplemented (collectively, the "ADA"). Tenant shall be solely responsible for
conducting its own independent investigation of this matter and for ensuring
that the design of all improvements or alterations to be made to the Premises
by, or on behalf of, Tenant strictly comply with all requirements of the ADA.
Subject to reimbursement pursuant to Section 6 of the Lease, if any barrier
removal work or other work is required to the Building, the Common Areas or the
Park under the ADA, then such work shall be the responsibility of Landlord;
provided, if such work is required under the ADA as a result of Tenant's use of
the Premises or any work or alteration made to the Premises by or on behalf of
Tenant, then such work shall be performed by Landlord at the sole cost and
expense of Tenant. Except as otherwise expressly provided in this provision,
Tenant shall be responsible at its sole cost and expense for fully and
faithfully complying with all applicable requirements of the ADA, including
without limitation, not discriminating against any disabled persons in the
operation of Tenant's business in or about the Premises, and offering or
otherwise providing auxiliary aids and services as, and when, required by the
ADA. Within ten (10) days after receipt, Landlord and Tenant shall advise the
other party in writing, and provide the other with copies of (as applicable),
any notices alleging violation of the ADA relating to any portion of the
Premises or the Building; any claims made or threatened in writing regarding
noncompliance with the ADA and relating to any portion of the Premises or the
Building; or any governmental or regulatory actions or investigations instituted
or threatened regarding noncompliance with the ADA and relating to any portion
of the Premises or the Building. Tenant shall and hereby agrees to protect,
defend (with counsel acceptable to Landlord) and hold Landlord and the other
Indemnitees harmless and indemnify the Indemnitees from and against all
liabilities, damages, claims, losses, penalties, judgments, charges and expenses
(including reasonable attorneys' fees, costs of court and expenses necessary in
the prosecution or defense of any litigation including the enforcement of this
provision) arising from or in any way related to, directly or indirectly,
Tenant's or Tenant's Representatives' violation or alleged violation of the ADA.
Tenant agrees that the obligations of Tenant herein shall survive the expiration
or earlier termination of this Lease.

38.   BROKERAGE COMMISSION: Landlord and Tenant each represents and warrants for
the benefit of the other that it has had no dealings with any real estate
broker, agent or finder in connection with the Premises and/or the negotiation
of this Lease, except for the Broker(s) (as set forth on Page 1), and that it
knows of no other real estate broker, agent or finder who is or might be
entitled to a real estate brokerage commission or finder's fee in connection
with this Lease or otherwise based upon contacts between the claimant and
Tenant. Each party shall indemnify and hold harmless the other from and against
any and all liabilities or expenses arising out of claims made for a fee or
commission by any real estate broker, agent of finder in connection with the
Premises and this Lease other than Broker(s), if any, resulting from the actions
of the indemnifying party. Any real estate brokerage commission of finder's fee
payable to the Broker(s) in connection with this Lease shall only be payable and
applicable to the extent of the initial Term of the Lease and to the extent of
the Premises as same exist as of the date on which Tenant executes this Lease.
Unless expressly agreed to in writing by Landlord and Broker(s), no real estate
brokerage commission or finder's fee shall be owed to, or otherwise payable to,
the Broker(s) for any renewals or other extensions of the initial Term of this
Lease or for any additional space leased by Tenant other than the Premises as
same exists as of the date on which Tenant executes this Lease. Tenant further
represents and warrants to Landlord that Tenant will not receive (i) any portion
of any brokerage commission or finder's fee payable to the Broker(s) in
connection with this Lease or (ii) any other form of compensation or incentive
from the Broker(s) with respect to this Lease.

39.   QUIET ENJOYMENT: Landlord covenants with Tenant, upon the paying of Rent
and observing and keeping the covenant, agreements and conditions of this Lease
on its part to be kept, and during the periods that Tenant is not otherwise in
default of any of the terms or provisions of this Lease, and subject to the
rights of any of Landlord's lenders, (i) that Tenant shall and may peaceably and
quietly hold, occupy and enjoy the Premises and the Common areas during the Term
of this Lease, and (ii) neither Landlord, nor any successor or assign of
Landlord, shall disturb Tenant's occupancy or enjoyment of the Premises and the
Common Areas.

40.   LANDLORD'S ABILITY TO PERFORM TENANT'S UNPERFORMED OBLIGATIONS:
Notwithstanding anything to the contrary contained in this Lease, if Tenant
shall fail to perform any of the terms, provisions, covenants or conditions to
be performed or complied with by Tenant pursuant to this Lease, and/or if the
failure of Tenant relates to a matter which in Landlord's judgment reasonably
exercised is of an emergency nature and such failure shall remain uncured for a
period of time commensurate with such emergency, then Landlord may, at

<PAGE>

Landlord's option without any obligation to do so, and in its sole discretion as
to necessity therefor, perform any such term, provision, covenant, or condition,
or make any such payment and landlord by reason of so doing shall not be liable
or responsible for any loss or damage thereby sustained by Tenant or anyone
holding under or through Tenant. If Landlord so performs any of Tenant's
obligations hereunder, the full amount of the cost and expense entailed or the
payment so made or the amount of the loss so sustained shall immediately be
owing by Tenant to Landlord, and Tenant shall promptly pay to Landlord upon
demand, as Additional Rent, the full amount thereof with interest thereon from
the date of payment at the greater of (i) ten percent (10%) per annum, or (ii)
the highest rate permitted by applicable law and Enforcement Expenses.

      IN WITNESS WHEREOF, this Lease is executed by the parties as of the Lease
Date referenced on Page 1 of this Lease.

TENANT:

Viko Technology , Inc.,
a California corporation,
dba Adaptive Electronics

By: /s/ Bill de Carbonel
    ----------------------------

Its: Vice President

Date: 6/17/98

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

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

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

LANDLORD:

MILPITAS INDUSTRIAL PROPERTIES, INC.,
A Delaware Corporation

By: LPS MS, Inc.,
    as manager and agent for MILPITAS INDUSTRIAL PROPERTIES, INC.

    By: /s/ Senior Vice President
        --------------------------
             Senior Vice President

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

<PAGE>

                               EXHIBIT A- PREMISES

This exhibit, entitled "Premises", is and shall constitute EXHIBIT A to that
certain Lease Agreement dated June 4, 1998 ("the Lease"), by and between
MILPITAS INDUSTRIAL PROPERTIES, INC., a Delaware corporation ("Landlord") and
Viko Technology, Inc., a California corporation, dba Adaptive Electronics
("Tenant") for the leasing of certain premises located in the Mabury Industrial
Park at Building B, 1605 Malbury Road, Units A and B, San Jose, California (the
"Premises")

The Premises consist of the rentable square footage of space specified in the
Basic Lease Information and has the address specified in the Basic Lease
Information. The Premises are a part of and are contained in the Building
specified in the Basic Lease Information. The cross-hatched area depicts the
Premises within the Building.

<PAGE>

                         EXHIBIT B- TENANT IMPROVEMENTS

This exhibit, entitled "Tenant Improvements", is and shall constitute EXHIBIT B
to that certain Lease agreement dated June 4, 1998 (the "Lease"), by and between
MILPITAS INDUSTRIAL PROPERTIES, INC., a Delaware corporation ("Landlord") and
Viko Technology, Inc., a California corporation, dba Adaptive Electronics
("Tenant") for the leasing of certain premises located in the Malbury Industrial
Park at Building B, 1605 Malbury Road, Units A and B, San Jose, California (the
"Premise"). The terms, conditions and provisions of this EXHIBIT B are hereby
incorporated into and are made a part of the Lease. Any capitalized terms used
herein and not otherwise defined herein shall have the meaning ascribed to such
terms as set forth in the Lease:

TENANT IMPROVEMENTS, AS-IS CONDITION: Tenant hereby accepts the Premises as
suitable for Tenant's intended use and as being good operating order, condition
and repair, "AS-IS", and without representation or warranty by Landlord nor any
of Landlord's agents, representatives or employees as to the suitability,
fitness, condition, use or occupancy which may be made thereof. Tenant further
acknowledges and agrees that neither Landlord nor any of Landlord's agents,
representatives or employees has agreed to undertake any alterations or
construct any improvements ("Tenants Improvements") to the Premises. Any
expectations to the foregoing must be by written agreement executed by Landlord
and Tenant.

<PAGE>

                          EXHIBIT C TO LEASE AGREEMENT

                               RULES & REGULATIONS

This exhibit, entitled "Rules & Regulations", is and shall constitute EXHIBIT C
to that certain Lease Agreement dated June 4, 1998 (the" Lease"), by and between
MILPITAS INDUSTRIAL PROPERTIES INC., a Delaware corporation ("Landlord") and
Viko Technology, Inc., a California corporation, dba Adaptive Electronics
(`'Tenant") for leasing of certain premises located in the Mabury Industrial
Park at Building B, 1605 Mabury Road, Units A and B, San Jose , California (the
"Premises"). The terms, conditions and provisions of this EXHIBIT C are hereby
incorporated into and are made a part of the Lease. Any capitalized terms used
herein and not otherwise defined herein shall have the meaning ascribed to such
terms as set forth in the Lease:

      1.    No advertisement, picture or sign of any shall be displayed on or
            outside the Premises or the Building without the prior written
            consent of Landlord. Landlord shall have the right to remove any
            such unapproved item without notice and at the Tenant's expense.

      2.    Tenant shall not regularly park motor vehicles in designated parking
            areas after the conclusion of normal daily business activity, except
            for company vehicles that may be parked periodically overnight.

      3.    Tenant shall not use any method of heating the air conditioning the
            prior other than the supplied by Landlord without the prior written
            consent of Landlord.

      4.    All window coverings installed by Tenant and visible from the
            outside of the Building require the prior written approval of
            Landlord.

      5.    Tenant shall not use, keep or permit to be used or kept any foul or
            noxious gas or substance or any flammable or combustible materials
            on or around the Premises, the building or the Park.

      6.    Tenant shall not alter any lock or install any new locks or bolts on
            any door at the Premises without the prior consent of Landlord.

      7.    Tenants agree not to make any duplicate keys without the prior
            consent of Landlord.

      8.    Tenant shall park motor vehicles in those general parking areas as
            designated by Landlord except for loading and unloading. During
            those periods of loading and unloading, Tenant shall not
            unreasonably interfere with traffic flow within the Park and loading
            and unloading areas of other tenants.

      9.    Tenant shall not disturb, solicit or canvas any occupant of the
            Building or Park and shall cooperate to prevent same.

      10.   No person shall go on the roof without Landlord's permission.

      11.   Business machines and mechanical equipment belonging to Tenant which
            cause noise or vibration that may be transmitted to the structure of
            the Building, to such as a degree as to be objectionable to Landlord
            or other Tenants, shall be placed and maintained by Tenant, at
            Tenant's expense, on vibration eliminators or other devices
            sufficient to eliminate noise or vibration.

      12.   All goods, including material used to store goods, delivered to the
            Premises of Tenant shall be immediately moved into the Premises and
            shall not be left in parking or receiving areas overnight.

      13.   Tractor trailers which must be unhooked or parked with dolly wheels
            beyond the concrete loading areas must use steel plates or wood
            blocks under the dolly wheels to prevent damage to the asphalt
            paving surfaces. No parking or storing of such trailers will be
            permitted in the auto parking areas of the Park or on streets
            adjacent thereto.

      14.   Forklifts which operate on asphalt paving areas shall not have solid
            rubber tires and shall not only use tires that do not damage the
            asphalt.

      15.   Tenant is responsible for the storage and removal of all trash and
            refuse. All such trash and refuse shall be contained in suitable
            receptacles stored behind screened enclosures at locations approved
            by Landlord.

      16.   Tenant shall not store or permit the storage or placement of goods,
            or merchandise or pallets or equipment of any sort in or around the
            Premises, the Building, the Park or any of the Common Area of the
            foregoing. No displays or sales of merchandise shall be allowed in
            the parking lots or other Common Areas.

      17.   Tenant shall not permit any animals, including, but not limited to,
            any household pets, to be brought or kept in or about the Premises,
            the Building, the Park or any of the Common Areas of the foregoing.

      18.   Tenant shall not permit any permit any motor vehicles to be washed
            on any portion of the Premises or in the Common Areas of the Park,
            nor shall Tenant permit mechanical work or maintenance of motor
            vehicles to be performed on any portion of the Premises or in the
            Common Areas of the Park.

<PAGE>

                                    EXHIBIT E

                   HAZARDOUS MATERIALS DISCLOSURE CERTIFICATE

Your cooperation in this matter is appreciated. Initially, the information
provided by you in this Hazardous Materials Disclosure Certificate is necessary
for the Landlord (identified below) to evaluate and finalized a lease agreement
with you as tenant. After a lease agreement is signed by you and the Landlord
(the "Lease Agreement"), on an annual basis in accordance with the provisions of
Section 29 of the signed Lease Agreement, you are to provide an update to the
information initially provided by you in this certificate. The information
contained in the initial Hazardous Materials Disclosure Certificate and each
annual certificate provided by you thereafter will be maintained in
confidentiality by Landlord subject to release and disclosure as required by (i)
any lenders and owners and their respective environmental consultants, (ii) any
prospective purchaser(s) of all or any portion of the property on which the
Premises are located, (iii) Landlord to defend itself or its lenders, partners
or representatives against any claim or demand, and (iv) any laws, rules,
regulations, orders, decrees, or ordinances, including, without limitation,
court orders or subpoenas. Any and all capitalized terms used herein, which are
not otherwise defined herein, shall have the same meaning ascribed to such term
in the signed Lease Agreement. Any questions regarding this certificate should
be directed to, and when completed, the certificate should be delivered to:

Landlord

                   _____________________________________________________________
                   _____________________________________________________________
                   c/o LPC MS, INC.
                   101 Lincoln Centre Drive, Fourth Floor
                   Foster City, California  94404
                   Attn: ______________________________________________________
                   Phone: (650) 571-2200

Name of (Prospective) Tenant : _________________________________________________

Mailing Address: ______________________________________________________________
________________________________________________________________________________

Contact Person, Title and Telephone Number (s): ________________________________

Contact Person for Hazardous Waste Materials Management and Manifest and
Telephone Number(s):
________________________________________________________________________________
________________________________________________________________________________

Address of (Prospective) Premises : ____________________________________________

Length of (Prospective) initial Term : ________________________________________
________________________________________________________________________________

1.    GENERAL INFORMATION:

      Describe the initial proposed operations to take place in, on, or about
the Premises, including, without limitation, principal products processed,
manufactured or assembled services and activities to be provided or otherwise
conducted. Existing tenants should describe any proposed changes to on-going
operations.
_______________________________________________________________________________
_______________________________________________________________________________
<PAGE>

2.    USE STORAGE AND DISPOSAL OF HAZARDOUS MATERIAL

      2.1   Will any Hazardous Materials be used, generated, stored or disposed
            of in, on or about the Premises ? Existing tenants should describe
            any Hazardous Materials which continue to be used, generated, stored
            or disposed of in, on or about the Premises.

            Wastes                     Yes [ ]                No [ ]

            Chemical Products          Yes [ ]                No [ ]

            Other                      Yes [ ]                No [ ]

            If Yes is marked, please explain: __________________________________
            ____________________________________________________________________
            ____________________________________________________________________

      2.2   If Yes is marked in Section 2.1, attach a list of any Hazardous
            Materials to be used, generated, stored or disposed of in, on or
            about the Premises, including the applicable hazard class and an
            estimate of the quantities of such Hazardous Materials at any given
            time; estimated annual throughput; the proposed location(s) and
            method of storage (excluding nominal amounts of ordinary household
            cleaners and janitorial supplies which are not regulated by any
            Environmental Laws); and the proposed location(s) and method of
            disposal for each Hazardous Material, including, the estimated
            frequency, and the proposed contractors or subcontractors. Existing
            tenants should attach a list setting forth the information requested
            above and such list should include actual data from on going
            operations and identification of any variations in such information
            from the prior year's certificate.

3.    STORAGE TANKS AND SUMPS

      3.1   Is any above or below grounds storage of gasoline, diesel,
            petroleum, or other Hazardous Materials in tanks or sumps proposed
            in, on or about the Premises? Existing tenants should described any
            such actual or proposed activities.

            Yes [ ]            No [ ]

            If yes, please explain: ____________________________________________
            ____________________________________________________________________
            ____________________________________________________________________

4.    WASTE MANAGEMENT

      4.1   Has your company been issued an EPA Hazardous Waste Generator I.D.
            Number? Existing tenants should describe any additional
            identification numbers issued since the previous certificate.

            Yes [ ]            No [ ]

      4.2   Has your company field a biennial or quarterly reports as a
            hazardous waste generator? Existing tenants should describe any new
            reports field.

            Yes [ ]            No [ ]

            If yes, attach a copy of the most recent report field..

<PAGE>

5.    WASTEWATER TREATMENT AND DISCHARGE

      5.1   Will your company discharge wastewater or other wastes to;
            __________ storm drain?   ________ sewer?
            __________ surface water? ________ no wastewater or other wastes
                                               discharged.

            Existing tenants should indicate any actual discharges. If so,
            describe the nature of any proposed or actual discharge(s).

            ____________________________________________________________________
            ____________________________________________________________________

      5.2   Will any such wastewater or waste be treated before discharge?

            Yes [ ]            No [ ]

            If yes, describe the type of treatment proposed to be conducted.
            Existing tenants should describe the actual treatment conducted.

            ____________________________________________________________________
            ____________________________________________________________________

6.    AIR DISCHARGES

      6.1   Do you plan for air filtration systems or stacks to be used in your
            company's operations in, on or about the Premises that will
            discharge into the air; and will such air emissions be monitored?
            Existing tenants should indicate whether or not there are any such
            air filtration systems or stacks in use in, on or about the Premises
            which discharge into the air and whether such air emissions are
            being monitored.

            Yes [ ]            No [ ]

            If yes, please describe: ___________________________________________
            ____________________________________________________________________
            ____________________________________________________________________

      6.2   Do you propose to operate any of the following types of equipment,
            or any other equip- ment requiring an air emissions permit? Existing
            tenants should specify any such equipment being operated in, or
            about the Premises.

            ___________ Spray booth(s) ___________  Incinerator(s)
            ___________ Dip tank(s)    ___________  Other (Please describe)
            ___________ Drying oven(s) ___________  No Equipment Requiring Air
                                                    Permits

            If yes, please describe: ___________________________________________
            ____________________________________________________________________
            ____________________________________________________________________

7.    HAZARDOUS MATERIALS DISCLOSURES

      7.1   Has your company prepared or will it be required to prepare a
            Hazardous Materials management plan ("Management Plan") pursuant to
            Fire Department or other governmental or regulatory agencies'
            requirements? Existing tenants should indicate whether or not a
            Management Plan is required and has been prepared.

<PAGE>

            Yes [ ]            No [ ]

            If yes, attach a copy of the Management Plan. Existing tenants
            should attach a copy of any required updates to the Management Plan.

      7.2   Are any of the Hazardous Materials, and in particular chemicals,
            proposed to be used in your operations in, on or about the Premises
            regulated under Proposition 65? Existing tenants should indicate
            whether or not there are any new Hazardous Materials being so used
            which are regulated under Proposition 65.

            Yes [ ]            No [ ]

            If yes, Please explain: ____________________________________________
            ____________________________________________________________________
            ____________________________________________________________________

8.    ENFORCEMENT ACTIONS AND COMPLAINTS

      8.1   With respect to Hazardous Materials or Environmental Laws, has your
            company ever been Subject to any agency enforcement actions,
            administrative orders, or consent decrees or has your company
            received request for information, notice or demand letters, or any
            other inquiries regarding its operations? Existing tenants should
            indicate whether or not any such actions, orders or decrees have
            been, or are in the process of being, undertaken or if any such
            request have been received.

            Yes [ ]            No [ ]

            If yes, describe the actions, orders or decrees and any continuing
            compliance obligations imposed as a result of these actions, orders
            or decrees and also describe any requests, notices or demands, and
            attach a copy of all such documents. Existing tenants should
            describe and attach a copy of any new actions, orders, decrees,
            requests, notices or demands not already delivered to Landlord
            pursuant to the provisions of section 29 of the signed Lease Agree-
            ment.

            ____________________________________________________________________
            ____________________________________________________________________
            ____________________________________________________________________

      8.2   Have there ever been, or are there now pending, any lawsuits against
            your company regar- ding any environmental or health and safety
            concerns?

            Yes [ ]            No [ ]

            If yes, describe any such lawsuits and attach copies of the
            complaint(s), cross complaints(s), pleadings and all other documents
            related thereto as requested by Landlord. Existing tenants should
            describe and attach a copy of any new complaint(s),
            cross-complaint(s), pleadings and other related documents not
            already delivered to Landlord pursuant to the provisions Section 29
            of the signed Lease Agreement.

            ____________________________________________________________________
            ____________________________________________________________________
            ____________________________________________________________________

      8.3   Have there been any problems or complaints from the adjacent
            tenants, owners or other neighbors at your company's current
            facility with regard to environmental or health and safety concerns?
            Existing tenants should indicate whether or not there have been any
            such problems or complaints from adjacent tenants, owners or other
            neighbors at, about or near the Premises.

            Yes [ ]            No [ ]

<PAGE>

                  If yes, please describe. Existing tenants should describe any
            such problems or complaints not already disclosed to Landlord under
            the provisions of the signed Lease Agreement

            ____________________________________________________________________
            ____________________________________________________________________
            ________________________

9.    PERMITS AND LICENCES

      9.1   Attach copies of all Hazardous Materials permits licenses including
            a Transporter Permit number issued to your company with respect to
            its proposed operations in, on or about the Premises, including
            without limitation, any wastewater discharge permits, air emissions
            permits, and use permits or approvals. Existing tenants should
            attach copies of any new permits and licenses as well as any
            renewals of permits or licenses previously issued.

The undersigned hereby acknowledges and agrees that (A) this Hazardous Materials
Disclosure Certificate is being delivered in connection with, and as required
by, Landlord in connection with the evaluation and finalization of a Lease
Agreement and will be attach thereto as an exhibit; (B) that this Hazardous
Materials Disclosure Certificate is being delivered in accordance with, and as
required by, the provisions of Section 29 of the Lease Agreement; and (C) that
tenant shall have and retain full and complete responsibility and liability with
respect to any of the Hazardous Materials disclosed in the HazMat Certificate
notwithstanding Landlord's/Tenant's receipt and/or approval of such certificate.
Tenant further agrees that none of the following described acts or events shall
be construed or otherwise interpreted as either (a) excusing, diminishing or
otherwise limiting Tenant from the requirement to fully and faithfully perform
its obligations under the Lease with respect to Hazardous Materials , including
without limitation, Tenant's indemnification of the Indemnitees and compliance
with all Environmental Laws, or (b) imposing upon Landlord, directly or
indirectly, any duty or liability with respect to any such Hazardous Materials,
including, without limitation, any duty on Landlord to investigate or verify
otherwise the accuracy of the representations and statements made therein or to
ensure that Tenant is in compliance with all Environmental Laws; (i) the
delivery of such certificate to Landlord and/or Landlord's acceptance of such
certificate, (ii) Landlord's review and approval of such certificate, (iii)
Landlord's failure to obtain such certificate from Tenant at any time, or (iv)
Landlord's actual or constructive knowledge of the types and quantities of
Hazardous Materials being used, stored, generated, disposed of or transported on
or about the Premises by Tenant or Tenant's Representatives. Notwithstanding the
foregoing or anything to the contrary contained herein, the undersigned
acknowledges and agrees that Landlord and its partners, lenders and
representatives may, and will, rely upon the statements, representations,
warranties and certifications made herein and the truthfulness thereof in
entering into the Lease Agreement and the continuance thereof throughout the
term, and any renewals thereof, of the Lease Agreement.

      I (print name)___________________ , acting with full authority to bind the
(proposed) Tenant and on behalf of the (proposed) Tenant, certify, represent and
warrant that the information contained in this certificate is true and correct.

      (PROSPECTIVE) TENANT:

      By:_______________________________________

      Title: ___________________________________

      Date: ____________________________________

<PAGE>

                                    EXHIBIT F
                       FIRST AMENDMENT TO LEASE AGREEMENT
                           CHANGE OF COMMENCEMENT DATE

The first Amendment to Lease Agreement (the "Amendment") is made and entered
into to be effective as of ____________________________, by and between
_____________________________ ( "LANDLORD"), AND __________________________
("TENANT"), with reference to the following facts:

                                    RECITALS

A. Landlord and Tenant have entered into that certain Lease Agreement dated
_________ (the "Lease "), for the leasing of certain premises containing
approximately ________ rentable square feet of space located at
____________________ , California (the "Premises") as such Premises are more
fully described in the Lease.

B. Landlord and Tenant wish to amend the Commencement date of the Lease.

NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Landlord and Tenant hereby agree as follows:

            1.    Recitals: Landlord and Tenant agree that the above recitals
                  are true and correct.

            2.    The commencement Date of the Lease shall be
                  ___________________________.

            3.    The last day of the Term of the Lease (the "Expiration Date")
                  shall be ________________.

            4.    The dates on which the Base Rent will be adjusted are:

                  For the period _________to________the monthly Base Rent shall
                  be $__________;

                  For the period _________to________the monthly Base Rent shall
                  be $__________;and

                  For the period _________to________the monthly Base Rent shall
                  be $__________;.

            5.    Effect of Amendment: Except as modified herein, the terms and
                  conditions of the Lease shall remain unmodified and continue
                  in full force and effect. In the event of any conflict between
                  the terms and conditions of the Lease and this Amendment, the
                  terms and conditions of this Amendment shall prevail.

            6.    Definitions: Unless otherwise defined in this Amendment, all
                  terms not defined in this Amendment shall have the meaning set
                  forth in the Lease.

            7.    Authority: Subject to the provisions of the Lease, this
                  Amendment shall be binding upon and inure to the benefit of
                  the parties hereto, their respective heirs, legal
                  representatives, successors and assigns. Each party hereto and
                  the persons signing below warrant that the person signing
                  below on such party's behalf is authorized to do so and to
                  bind such party to the terms of this Amendment.

            8.    The terms and provisions of the Lease are hereby incorporated
                  in this Amendment.

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

(PROPERTY MANAGER: PLEASE PROVIDE TENANT INFORMATION AND WORD PROCESSING WILL
COMPLETE THE SIGNATURE BLOCK).

<PAGE>

                         EXHIBIT G (TENANT / LANDLORD )

           TENANT'S INITIAL HAZARDOUS MATERIALS DISCLOSURE CERTIFICATE

Your cooperation in this matter is appreciated. Initially, the information
provided by you in this Hazardous Materials Disclosure Certificate is necessary
for the Landlord (identified below) to evaluate and finalize a lease agreement
with you as tenant. After a lease agreement is signed by you and the Landlord
(the "Lease Agreement"), on an annual basis in accordance with the provisions of
Section 29 of the signed Lease Agreement, you are to provide an update to the
information initially provided by you in this certificate. The information
contained in the initial Hazardous Materials Disclosure Certificate and each
annual certificate provided by you thereafter will be maintained in
confidentially by Landlord subject to release and disclosure as required by (i)
any lenders and owners and their respective environmental consultants, (ii) any
prospective purchaser(s) of all or any portion of the property on which the
Premises are located , (iii) Landlord to defend itself or its lenders, partners
or representatives against any claim or demand, and (iv) any laws, rules,
regulations, orders, decrees, or ordinances, including, without limitation,
court orders or subpoenas. Any and all capitalized terms used herein, which are
not otherwise defined herein, shall have the same meaning ascribed to such term
in the signed Lease Agreement. Any questions regarding this certificate should
be directed to, and when completed, the certificate should be delivered to :

Landlord:   MILPITAS INDUSTRIAL PROPERTIES, INC.,
            a Delaware corporation
            c/o LPS MS, Inc.
            101 Lincoln Centre Drive, Fourth Floor
            Foster City, California 94404
            Attn: Portfolio Manager
            Phone: (650) 571-2200

Name of (Prospective) Tenant:  Viko Technology, Inc., a California corporation,
                               dba Adaptive Electronics

Mailing Address:    1605 Mabury Road, Units A & B
                    San Jose, California 95133

Contact Person, Title and Telephone Number(s):__________________________________

Contact Person for Hazardous Waste Materials Management and Manifests and
Telephone Number(s): ___________________________________________________________
________________________________________________________________________________
_______________________________________________________________

Address of (Prospective) Premises :   1605 Mabury Road Units A & B, San Jose,
                                      California 95133

Length of (Prospective) initial Term: Sixty (60) months

________________________________________________________________________________

1.    GENERAL INFORMATION:

      Describe the initial proposed operations to take place in, on, or about
      the Premises, including , without limitation, principal products
      processed, manufactured or assembled services and acti- vities to be
      provided or otherwise conducted. Existing tenants should describe any
      proposed changes to on-going operations.

2.    USE, STORAGE AND DISPOSAL OF HAZARDOUS MATERIALS

      2.1   Will any Hazardous Materials be used, generated , stored or disposed
            of in, on or about the Premises? Existing tenants should describe
            any Hazardous Materials which continue to be used, generated, stored
            or disposed of in, on or about the Premises.

<PAGE>

            Wastes             Yes [ ]            No [ ]

            Chemical Products  Yes [ ]            No [ ]

            Other              Yes [ ]            No [ ]

            If Yes is marked, please explain ___________________________________
            ____________________________________________________________________
            ____________________________________________________________________

      2.2   If Yes is marked in Section 2.1, attach a list of any Hazardous
            Materials to be used, generated, stored or disposed of in, or about
            the Premises, including the applicable hazard class and an estimate
            of the quantities of such Hazardous Materials at any given time;
            estimated annual throughput; the proposed location(s) and method of
            storage (excluding nominal amounts of ordinary household cleaners
            and janitorial supplies which are not regulated by any Environmental
            Laws); and the proposed location(s) and method of disposal for each
            Hazardous Material, including, the estimated frequency, and the
            proposed contractors or subcontractors. Existing tenants should
            attach a list setting forth the information requested above and such
            list should include actual data from on-going operations and the
            identification of any variations in such information from the prior
            year's certificate.

3.    STORAGE TANKS AND SUMPS

      3.1   Is any above or below ground storage of gasoline, diesel, petroleum,
            or other Hazardous Materials in tanks or sumps proposed in, on or
            about the Premises? Existing tenants should describe any such actual
            or proposed activities.

            Yes [ ]            No [ ]

      If yes, please explain: __________________________________________________
            ____________________________________________________________________
            ____________________________________________________________________

4.    WASTE MANAGEMENT

      4.1   Has your company been issued an EPA Hazardous Waste Generator I.D.
            Number? Existing tenants should describe any additional
            identification numbers issued since the previous certificate.

            Yes [ ]            No [ ]

      4.2   Has your company filed a biennial or quarterly reports as a
            hazardous waste generator? Existing tenants should describe any new
            reports field.

            Yes [ ]            No [ ]

            If yes, attach a copy of the most recent report filed.

5.    WASTEWATER TREATMENT AND DISCHARGE

      5.1   Will your company discharge wastewater or other wastes to:

            _________ storm drain?   ________ sewer?
            _________ surface water? ________ no wastewater or other wastes
                                              discharged?

            Existing tenants should indicate any actual discharges. If so,
            describe the nature of any proposed or actual discharge(s).

            ____________________________________________________________________
            ____________________________________________________________________

<PAGE>

      5.2   Will any such wastewater or waste be treated before discharge?

            Yes [ ]            No [ ]

            If yes, describe the type of treatment proposed to be conducted.
            Existing tenants should describe the actual treatment conducted.

            ____________________________________________________________________
            ____________________________________________________________________

6.    AIR DISCHARGES

      6.1   Do you plan for any air filtration systems or stacks to be used in
            your company's operations in, on or about the Premises that will
            discharge into the air; and will such air emissions be monitored?
            Existing tenants should indicate whether or not there are any such
            air filtration systems or stacks in use in, on or about the Premises
            which discharge into the air and whether such air emissions are
            being monitored.

            Yes [ ]            No [ ]

            If yes, please describe:____________________________________________
            ____________________________________________________________________
            ____________________________________________________________________

      6.2   Do you propose to operate any of the following types of equipment,
            or any other equip- ment requiring an air emissions permit? Existing
            tenants should specify any such equipment b being operated in, on or
            about the Premises.

            ___________  Spray booth(s) ___________  Incinerator(s)
            ___________  Dip tank(s)    ___________  Other (Please describe)
            ___________  Drying oven(s) ___________  No Equipment Requiring Air
                                                     Permits

            If yes, please describe:____________________________________________
            ____________________________________________________________________
            ____________________________________________________________________

7.    HAZARDOUS MATERIALS DISCLOSURES

      7.1   Has your company prepared or will it be required to prepare a
            Hazardous Materials management plan ("Management Plan") pursuant to
            Fire Department or other governmental or regulatory agencies'
            requirements? Existing tenants should indicate whether or not a
            Management Plan is required and has been prepared.

            Yes [ ]            No [ ]

            If yes, attach a copy of the Management Plan. Existing tenants
            should attach a copy of any required updates to the Management Plan.

      7.2   Are any of the Hazardous Materials, and in particular chemicals,
            proposed to be used in your operations in, on or about the Premises
            regulated under Proposition 65? Existing tenants should indicate
            whether or not there are any new Hazardous Materials being so used
            which are regulated under Proposition 65.

            Yes [ ]            No [ ]

<PAGE>

            If yes, Please explain: ____________________________________________
            ____________________________________________________________________
            ____________________________________________________________________

8.    ENFORCEMENT ACTIONS AND COMPLAINTS

      8.1   With respect to Hazardous Materials or Environmental Laws, has your
            company ever been Subject to any agency enforcement actions,
            administrative orders, or consent decrees or has your company
            received request for information, notice or demand letters, or any
            other inquiries regarding its operations? Existing tenants should
            indicate whether or not any such actions, orders or decrees have
            been, or are in the process of being, undertaken or if any such
            request have been received.

            Yes [ ]            No [ ]

            If yes, describe the actions, orders or decrees and any continuing
            compliance obligations imposed as a result of these actions, orders
            or decrees and also describe any requests, notices or demands, and
            attach a copy of all such documents. Existing tenants should
            describe and attach a copy of any new actions, orders, decrees,
            requests, notices or demands not already delivered to Landlord
            pursuant to the provisions of section 29 of the signed Lease Agree-
            ment .

            ____________________________________________________________________
            ____________________________________________________________________
            ____________________________________________________________________

      8.2   Have there ever been, or are there now pending, any lawsuits against
            your company regar- ding any environmental or health and safety
            concerns?

            Yes [ ]            No [ ]

            If yes, describe any such lawsuits and attach copies of the
            complaint(s), cross complaints(s), pleadings and all other documents
            related thereto as requested by Landlord. Existing tenants should
            describe and attach a copy of any new complaint(s),
            cross-complaint(s), pleadings and other related documents not
            already delivered to Landlord pursuant to the Provisions of Section
            29 of the signed Lease Agreement.

            ____________________________________________________________________
            ____________________________________________________________________
            ____________________________________________________________________

      8.3   Have there been any problems or complaints from adjacent tenants,
            owners or other neighbors at your company's current facility with
            regard to environmental or health and safety concerns?

            Existing tenants should indicate whether or not there have been any
            such problems or complaints from adjacent tenants, owners or other
            neighbors at, about or near the premises.

            Yes [ ]            No [ ]

            If yes, please describe. Existing tenants should describe any such
            problems or complaints not already disclosed to Landlord under the
            provisions of the signed Lease Agreement.

            ____________________________________________________________________
            ____________________________________________________________________
            ____________________________________________________________________

9.    PERMITS AND LICENSES

      9.1   Attach copies of all Hazardous Materials permits and licenses
            including a Transporter Permit number issued to your company with
            respect to its proposed operations in, on or about the Premises,
            including, without limitation, any wastewater discharge permits, air
            emissions permits, and use permits or approvals. Existing tenants
            should attach copies of any new permits and licenses as well as any
            renewals of permits or licenses previously issued.

<PAGE>

      The undersigned hereby acknowledges and agrees that (A) this Hazardous
Materials Disclosure Certificate is being delivered in connection with, and as
required by, Landlord in connection with the evaluation and finalization of a
Lease Agreement and will be attach thereto as an exhibit; (B) that this
Hazardous Materials Disclosure Certificate is being delivered in accordance
with, and as required by, the provisions of Section 29 of the Lease Agreement;
and (C) that tenant shall have and retain full and complete responsibility and
liability with respect to any of the Hazardous Materials disclosed in the HazMat
Certificate notwithstanding Landlord's/Tenant's receipt and/or approval of such
certificate. Tenant further agrees that none of the following described acts or
events shall be construed or otherwise interpreted as either (a) excusing,
diminishing or otherwise limiting Tenant from the requirement to fully and
faithfully perform its obligations under the Lease with respect to Hazardous
Materials, including, without limitation, Tenant's indemnification of the
Indemnitees and compliance with all Environmental Laws, or (b) imposing upon
Landlord, directly or indirectly, any duty or liability with respect to any such
Hazardous Materials, including, without limitation, any duty on Landlord to
investigate or otherwise verify the accuracy of the representations and
statements made therein or to ensure that Tenant is in compliance with all
Environmental Laws; (i) the delivery of such certificate to Landlord and/or
Landlord's acceptance of such certificate, (ii) Landlord's review and approval
of such certificate, (iii) Landlord's failure to obtain such certificate from
Tenant at any time, or (iv) Landlord's actual or constructive knowledge of the
types and quantities of Hazardous Materials being used, stored, generated,
disposed of or transported on or about the Premises by Tenant or Tenant's
Representatives. Notwithstanding the foregoing or anything to the contrary
contained herein, the undersigned acknowledges and agrees that Landlord and its
partners, lenders and representatives may, and will, rely upon the statements,
representations, warranties and certifications made herein and the undersigned
acknowledges and agrees that Landlord and its partners, lenders and
representatives, may, and will rely upon the statements, representations,
warranties, and certifications made herein and the truthfulness thereof in
entering into the Lease Agreement and the continuance thereof throughout the
term, and any renewals thereof, of the Lease Agreement.

      I (print name)____________________________, acting with full authority to
bind the (proposed) Tenant and on behalf of the (proposed) Tenant, certify,
represent and warrant that the information contained in this certificate is true
and correct.

      (PROSPECTIVE) TENANT:

      By:_____________________________________

      Title: _________________________________

      Date: _________________________________

<PAGE>

                       FIRST AMENDMENT TO LEASE AGREEMENT

This First Amendment to Lease Agreement (the "Amendment") is made to be
effective as of October 1, 2002 (the "Amendment Effective Date"), by and between
MILPITAS INDUSTRIAL PROPERTIES, INC., A DELAWARE CORPORATION ("Landlord"), and
VIKO TECHNOLOGY INC., A CALIFORNIA CORPORATION, DBA ADAPTIVE ELECTRONICS
("Tenant"), with reference to the following facts.

                                    RECITALS

      A.    Landlord and Tenant have entered into that certain Lease Agreement,
dated as of June 4, 1998 (the "Lease"), for the Leasing of those certain
premises consisting of approximately 25,200 rentable square feet located at 1605
Mabury Road, Units A and B, San Jose, California (the "Original Premises"), as
such Original Premises are more fully described in the Lease.

      B.    Landlord and Tenant now wish to amend the Lease to provide for,
among other things (I) the extension of the Term of the Lease, and (II) the
expansion of the Original Premises to include those certain premises consisting
of approximately 12,296 rentable square feet located at 1605 Mabury Road, Unit C
(the "Expansion Premises"). The Expansion Premises are depicted on the site plan
attached hereto as Exhibit A and made a part hereof. The foregoing modifications
of the Lease shall be upon, and shall be subject to, each of the terms,
conditions, and provision set forth herein.

NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Landlord and Tenant hereby agree as follows:

      1.    RECITALS: Landlord and Tenant agree that the above recitals are true
and correct and are hereby incorporated herein as though set forth in full.

      2.    TERM: The Expiration Date of the Lease which was originally
scheduled to expire on March 31, 2003, is hereby extended until that date (the
"Revised Expiration Date") which is sixty (60) months after the EP Commencement
Date (defined below), unless sooner terminated in accordance with the provision
of the Lease. Accordingly, the Revised Expiration Date is September 30, 2007.
The 60-month period from and after the EP Commencement Date through the Revised
Expiration Date shall hereinafter be referred to as the "Term" and any and all
references thereto in the Lease shall be modified accordingly. From and after
the Amendment Effective Date, any and all references to the "Expiration Date" in
the Lease shall mean and refer to the Revised Expiration Date referred to
herein.

      3.    ADDITION OF EXPANSION PREMISES:

            3.1   Commencing on October 1, 2002 (the "EP Commencement Date"),
the Original Premises shall be expanded to include the Expansion Premises leased
on all of the same terms and conditions as set forth in the Lease, except as
otherwise expressly set forth in this Amendment. From and after the EP
Commencement Date, the "Premises" as defined in the Basic Lease Information and
in Section 1 of the Lease, shall mean and refer to both the Original Premises
and the Expansion Premises which, in the aggregate, consist of approximately
37,496 rentable square feet located at 1605 Mabury Road, Units A, B and C, San
Jose, California. Accordingly, from and after the EP Commencement Date, all
references in this Amendment and in the Lease to the term "Premises" shall mean
and refer to the aggregate of the Original Premises and the Expansion Premises.
Landlord and Tenant hereby agree that for purposes of the Lease, from and after
the EP Commencement Date, the rentable square footage area of the Premises shall
be conclusively deemed to be 37,496 rentable square feet.

            3.2   Notwithstanding anything to the contrary contained herein or
in the Lease. Landlord shall neither be subject to any liability, nor shall the
validity of the Lease be affected if Landlord is not able to deliver to Tenant
possession of the Expansion Premises by the EP Commencement Date. The Base Rent
for both the Original Premises and the Expansion Premises shall be as set forth
in Paragraph 4 below.

      4.    BASE RENT; ADDITIONAL RENT:

            4.1   The Basic Lease Information and Section 3 of the Lease are
hereby modified to provide that as of the EP Commencement Date the monthly Base
Rent payable by Tenant to Landlord, in accordance with the provisions of Section
3 of the Lease, shall be as follows:

<TABLE>
<CAPTION>
                            ORIGINAL PREMISES         EXPANSION PREMISES        TOTAL AMOUNT OF
      PERIOD                MONTHLY BASE RENT         MONTHLY BASE RENT        MONTHLY BASE RENT
      ------                -----------------         -----------------        -----------------
<S>                         <C>                       <C>                      <C>
10/1/02-11/20/02               $     0.00                 $    0.00                $     0.00

11/21/02-2/18/03               $16,128.00                 $    0.00                $16,128.00

2/19/03-9/30/03                $16,128.00                 $7,869.44                $23,997.44

10/1/03-9/30-04                $16,632.00                 $8,115.36                $24,747.36

10/1/04-9/30/05                $17,136.00                 $8,361.28                $25,497.28

10/1/05-9/30/06                $17,640.00                 $8,607.20                $26,247.20

10/1/06-9/30/07                $18,144.00                 $8,853.12                $26,997.12
</TABLE>

<PAGE>

            4.2   ADDITIONAL RENT Commencing on the Amendment Effective Date and
continuing throughout the Term of the Lease, Tenant is responsible for the
timely payment of all Additional Rent, including without limitation, Operating
Expenses, Tax Expenses, Common Area Utility Costs and Utility Expenses for both
the Original Premises and the Expansion Premises as required by Sections 3 and 6
of the Lease.

      5.    ADVANCE RENT: Concurrently with Tenant's execution of this
Amendment, Tenant shall pay to Landlord the amount of Sixteen Thousand One
Hundred Twenty-Eight Dollars ($16,128.00) which shall represent Tenant's first
monthly installment of Base Rent payable for both the Original Premises and the
Expansion Premises.

      6.    CONDITION OF THE EXPANSION PREMISES: Subject to the provisions of
Paragraph 3 above, on the EP Commencement Date Landlord shall deliver to Tenant
possession of the Expansion Premises in its then existing "AS IS", condition and
state of repair, and Landlord shall not be obligated to provide or pay for any
improvement, remodeling or refurbishment work or services related to the
improvement, remodeling or refurbishment of the Expansion Premises except for
Landlord's provision of the EP Tenant Improvement Allowance, subject to, and as
expressly set forth in Exhibit B attached hereto and made a part hereof. The EP
Tenant Improvements (as defined in Exhibit B) shall be installed by Tenant in
accordance with the terms, conditions, criteria and provisions set forth in
Exhibit B hereto, and not pursuant to Exhibit B attached to the Lease which is
not applicable to the Expansion Premises. The EP Tenant Improvements constructed
hereunder shall comply with the requirements of the Americans with Disabilities
Act, a federal law codified at 42 U.S.C. 12101 et seq., including, but not
limited to Title III thereof, all regulations and guidelines related thereto and
all requirements of Title 24 of the State of California, and all costs incurred
for purposes of compliance therewith shall be a part of and included in the
costs of the EP Tenant Improvements. By taking possession of the Expansion
Premises, Tenant is deemed to have accepted the Expansion Premises in good
condition and state of repair. Any exception to the foregoing provisions must be
made by express written agreement signed by both parties. Tenant acknowledges
that no representations or warranties of any kind, express or implied,
respecting the condition of the Expansion Premises, Building, or Park or have
been made by Landlord or any agent of Landlord to Tenant, except as expressly
set forth herein. Tenant further acknowledges and agrees that the EP Tenant
Improvements described in Exhibit B attached hereto will be installed and
constructed by Tenant in the Expansion Premises and the completion of such EP
Tenant Improvements therein shall not affect Tenant's obligation to pay Rent and
to perform all of Tenant's covenants and obligations under the Lease and this
Amendment. Tenant hereby expressly (I) agrees that Tenant shall have no right or
claim to any abatement, offset or other deduction of the amount of Rent payable
by Tenant for the Original Premises and/or the Expansion Premises due to the
installation and construction of any EP Tenant Improvements, (II) grants
Landlord access to any and all of the Original Premises and Expansion Premises
to inspect Tenant's construction of the EP Tenant Improvements and to exercise
all other rights conferred upon Landlord under the Lease, including the
Amendment and Exhibit B hereto, (III) agrees to not interfere, and to not allow
any of Tenant's Representatives to interfere, with the other tenants in the
Building and the Park, (IV) agrees that Tenant's employees, agents, contractors,
consultants, workmen, mechanics, suppliers and invitees shall fully cooperate,
work in harmony and not, in any manner, unreasonably interfere with Landlord's
work in other areas of the Building or the Park, or the general operation of the
Building, and (V) assumes any and all liability and responsibility for any
damage to the Original Premises, the Expansion Premises and Tenant's personal
property, trade fixtures, furnishings, equipment and goods located therein or
thereabout arising in any manner or related to Tenant's installation and
construction of the EP Tenant Improvements.

      7.    SECURITY DEPOSIT: Concurrently with Tenant's execution of this
Amendment, Tenant shall deposit with Landlord the sum of Five Thousand Seventy
Three and 12/100ths Dollars ($5073.12) (the "EP Security Deposit") . The EP
Security Deposit shall be subject to, and the use and application thereof
governed by, Section 4 of the Lease. The EP Security Deposit shall be added to
the Security Deposit presently being held by Landlord under the lease in the
amount of Twenty One Thousand, Nine Hundred Twenty Four Dollars ($21,924.00)
(the "Original Security Deposit"). From and after the Amendment Effective Date,
the term "Security Deposit" as used in the Lease shall mean and refer to both
the EP Security Deposit and the Original Security Deposit in the aggregate
amount of Twenty-Six Thousand Nine Hundred Ninety-Seven and 12/100ths Dollars
($26,997.12).

      8.    TENANT'S SHARE OF OPERATING EXPENSES: Effective as of the EP
Commencement Date, Tenant's Share of Operating Expenses (as defined in the Basic
Lease Information and Section 6 of the Lease) shall be increased to 17.21% of
the Park.

      9.    TENANT'S SHARE OF TAX EXPENSES: Effective as of the EP Commencement
Date, Tenant's Share of Tax Expenses (as defined in the Basic Lease Information
and Section 6 of the Lease) shall be increased to 60.09% of Building B.

      10.   TENANT'S SHARE OF UTILITY EXPENSES: Effective as of the EP
Commencement Date, Tenant's Share of Utility Expenses (as defined in the Basic
Lease Information and Section 6 of the Lease) shall be increased to 17.21% of
the Park.

      11.   TENANT'S SHARE OF COMMON AREA UTILITY COSTS: Effective as of the EP
Commencement Date, Tenant's Share of Common Area Utility Costs (as defined in
the Basic Lease Information and Section 6 of the Lease) shall be increased to
17.21% of the Park.

      12.   UNRESERVED PARKING SPACES: Effective as of the EP Commencement Date,
the number of parking spaces available to Tenant (As specified in the Basic
Lease Information) shall be increased to 35 non-exclusive and non-designated
parking spaces.

<PAGE>

      13.   INSURANCE: Concurrently with Tenant's execution of this Amendment,
Tenant shall deliver to Landlord those certificates of insurance evidencing that
the Expansion Premises are included within and covered by Tenant's insurance
policies required to be carried by Tenant pursuant to the Lease, including
without limitation, those insurance policies specified in Exhibit B hereto.

      14.   BROKERS: Tenant warrants that, with the exception of BT Commercial,
it has had no dealings with any real estate broker or agent in connection with
the negotiation of this Amendment whose commission shall be payable by Landlord.
If Tenant has dealt with any person, real estate broker or agent with respect to
this Amendment, Tenant shall be solely responsible for the payment of any fee
due to said person or firm, and tenant shall indemnify, defend and hold Landlord
free and harmless against any claims, judgments, damages, costs, expenses, and
liabilities with respect thereto, including attorney's fee and costs.

      15.   BUILDING OPERATING SYSTEMS: Landlord shall deliver the Expansion
Premises with the existing building operating systems serving the Expansion
Premises, including electrical, mechanical and plumbing systems, in good working
condition as of the EP Commencement Date and Tenant shall have a period of
ninety (90) days after the EP Commencement Date to notify Landlord, in writing,
if any of such building operating systems are not in good working condition (the
"BOS Notice"). After receipt by Landlord of the BOS Notice from Tenant (which
notice shall specify in reasonable detail the nature and extent of such problems
and items of disrepair), Landlord shall use commercially reasonable efforts to
cause the prompt correction and/or repair of such problems and items of
disrepair. If Tenant fails to timely deliver to Landlord such BOS Notice within
said ninety (90) day period, Landlord shall have no obligation to perform any
such work thereafter, except as otherwise specifically provided in Section 11.2
of the Lease.

      16.   EFFECT OF AMENDMENT : Except as modified herein, the terms and
conditions of the Lease shall remain unmodified and continue in full force and
effect. In the event of any conflict between the terms and conditions of the
Lease and this Amendment, the terms and conditions of this Amendment shall
prevail and control.

      17.   DEFINITIONS: Unless otherwise defined in this Amendment, all terms
not defined in this Amendment shall have the meanings ascribed to such terms in
the Lease.

      18.   AUTHORITY: Subject to the assignment and subletting provisions of
the Lease, this Amendment shall be binding upon and inure to the benefit of the
parties hereto, their respective heirs, legal representatives, successors and
assigns. Each party hereto and the persons signing below warramt that the person
signing below on such party's behalf is authorized to do so and to bind such
party to the terms of this Amendment.

      19.   INCORPORATION: The terms and provisions of the Lease are hereby
incorporated in this Amendment.

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

TENANT:

VIKO TECHNOLOGY, INC.,
A CALIFORNIA CORPORATION
DBA ADAPTIVE ELECTRONICS

By:    /s/ Bill de Carbonel
   ------------------------------------
Name:  Bill de Carbonel
Title: V.P.

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

LANDLORD:

MILPITAS INDUSTRIAL PROPERTIES, INC..
A DELAWARE CORPORATION

By:    /s/ Hilary Spann
   ------------------------------------
Name:  Hilary Spann
Title: Vice President

<PAGE>

                                    EXHIBIT A
                               EXPANSION PREMISES

This exhibit, entitled "Premises", is and shall constitute Exhibit A to that
certain First Amendment to Lease Agreement dated September 26, 2002 (the
"Amendment"), by and between MILPITAS INDUSTRIAL PROPERTIES, INC., a Delaware
corporation ("Landlord") and VIKO TECHNOLOGY INC., a California corporation, dba
Adaptive Electronics ("Tenant") for the leasing of certain premises located in
the 1605 Mabury Road, Unit C, San Jose, California (the "Expansion Premises").

The Expansion Premises consist of the rentable square footage of space specified
in the Basic Lease Information and has the address specified in the Basic Lease
Information. The Premises are a part of and are contained in the Building
specified in the Basic Lease Information. The cross-hatched area depicts the
Premises within the Building:

                                  [FLOOR PLAN]

<PAGE>

                 EXHIBIT B TO FIRST AMENDMENT TO LEASE AGREEMENT
                             EP TENANT IMPROVEMENTS

This exhibit, entitled "EP Tenant Improvements", is and shall constitute Exhibit
B to that certain First Amendment to Lease Agreement made to be effective as of
October 1, 2002 (the "Amendment"), by and between Milpitas Industrial
Properties, Inc., a Delaware corporation ("Landlord"), and Viko Technology,
Inc., a California corporation, dba Adaptive Electronics ("Tenant"), for the
leasing of, among other premises, the Expansion Premises, located at 1605 Mabury
Road, Unit C, San Jose, California. The terms, conditions and provisions of this
Exhibit B are hereby incorporated into and are made a part of the Amendment. Any
capitalized terms used herein and not otherwise defined herein shall have the
meaning ascribed to such terms as set forth in the Lease or the Amendment, as
applicable.

1.    TENANT TO CONSTRUCT EP TENANT IMPROVEMENTS. Subject to the provisions
below,Tenant shall be solely responsible for the planning, construction and
completion of the interior tenant improvements ("EP Tenant Improvements") to the
Expansion Premises, in accordance with the terms, conditions and provisions of
this Exhibit B. The EP Tenant Improvements shall not include any of Tenant's
personal property, trade fixtures, furnishings, equipment or similar items.
Additionally, the EP Tenant Improvements shall not include any alterations,
additions or improvements to any portion of the Original Premises.

2.    TENANT IMPROVEMENT PLANS.

      A.    PRELIMINARY PLANS AND SPECIFICATIONS. Promptly after execution of
the Amendment, Tenant shall retain a licensed and insured architect
("Architect") to prepare preliminary working architectural and engineering plans
and specifications ("Preliminary Plans and Specifications") for the EP Tenant
Improvements. Tenant shall deliver the Preliminary Plans and Specifications to
Landlord. The Preliminary Plans and Specifications shall be in sufficient detail
to show locations, types and requirements for all heat loads, people loads,
floor loads, power and plumbing, regular and special HVAC needs, telephone
communications, telephone and electrical outlets, lighting, lighting fixtures
and related power, and electrical and telephone switches. Landlord shall
reasonably approve or disapprove the Preliminary Plans and Specifications within
five (5) days after Landlord receives the Preliminary Plans and Specifications
and, if disapproved, Landlord shall return the Preliminary Plans and
Specifications to Tenant, who shall make all necessary revisions within ten (10)
days after Tenant's receipt thereof. This procedure shall be repeated until
Landlord approves the Preliminary Plans and Specifications. The approved
Preliminary Plans and Specifications, as modified, shall be deemed the "Final
Preliminary Plans and Specifications".

      B.    FINAL PLANS AND SPECIFICATIONS. After the Final Preliminary Plans
and Specifications are approved by Landlord and are deemed to be the Final
Preliminary Plans and Specifications, within twenty (20) days following
Landlord's approval of the Final Preliminary Plans and Specifications, Tenant
shall cause the Architect to prepare the final working architectural and
engineering plans, specifications and drawings, ("Final Plans and
Specifications") for the EP Tenant Improvements. Tenant shall then deliver the
Final Plans and Specifications to Landlord. Landlord shall reasonably approve or
disapprove the Final Plans and Specifications within five (5) days after
Landlord receives the Final Plans and Specifications and, if disapproved,
Landlord shall return the Final Plans and Specifications to Tenant who shall
make all necessary revisions within ten (10) days after Tenant's receipt
thereof. This procedure shall be repeated until Landlord approves, in writing,
the Final Plans and Specifications. The approved Final Plans and Specifications,
as modified, shall be deemed the "Construction Documents".

      C.    MISCELLANEOUS. All deliveries of the Preliminary Plans and
Specifications, the Final Preliminary Plans and Specifications, the Final Plans
and Specifications, and the Construction Documents shall be delivered by
messenger service, by personal hand delivery or by overnight parcel service.
While Landlord has the right to approve the Preliminary Plans and
Specifications, the Final Preliminary Plans and Specifications, the Final Plans
and Specifications, and the Construction Documents, Landlord's interest in doing
so is to protect the Expansion Premises, the Original Premises, the Building and
Landlord's interest therein. Accordingly, Tenant shall not rely upon Landlord's
approvals and Landlord shall not be the guarantor of, nor responsible for, the
adequacy and correctness or accuracy of the Preliminary Plans and
Specifications, the Final Preliminary Plans and Specifications, the Final Plans
and Specifications, and the Construction Documents, or the compliance thereof
with applicable laws, and Landlord shall incur no liability of any kind by
reason of granting such approvals.

      D.    BUILDING STANDARD WORK. The Construction Documents shall provide
that the EP Tenant Improvements to be constructed in accordance therewith must
be at least equal, in quality, to Landlord's building standard materials,
quantities and procedures then in use by Landlord ("Building Standards")
attached hereto as Exhibit B-2, and shall consist of improvements which are
generic in nature.

      E.    CONSTRUCTION AGREEMENTS. Tenant hereby covenants and agrees that a
provision shall be included in each and every agreement made with the Architect
and the Contractor with respect to the EP Tenant Improvements specifying that
Landlord shall be a third party beneficiary thereof, including without
limitation, a third party beneficiary of all covenants, representations,
indemnities and warranties made by the Architect and/or Contractor.

3.    PERMITS. Tenant, at its sole cost and expense (subject to the provisions
of Paragraph 5 below), shall obtain all governmental approvals of the
Construction Documents to the full extent necessary for the issuance of a
building permit for the EP Tenant Improvements based upon such Construction
Documents. Tenant, at its sole cost and expense, shall also cause to be obtained
all other necessary approvals and permits from all governmental agencies having
jurisdiction or authority for the construction and installation of the EP Tenant
Improvements in accordance with the approved Construction Documents. Tenant at
its sole cost and expense (subject to the provisions of Paragraph 5 below) shall
undertake all steps necessary to ensure that the construction of the EP Tenant
Improvements is accomplished in strict compliance with all statutes, laws,
ordinances, codes, rules, and regulations applicable to the construction of the
EP Tenant Improvements and the requirements and standards of any insurance
underwriting board, inspection bureau or insurance carrier insuring the
Expansion Premises and/or the Building.
<PAGE>

4.    CONSTRUCTION.

      A.    Tenant shall be solely responsible for the construction,
installation and completion of the EP Tenant Improvements in accordance with the
Construction Documents approved by Landlord. Tenant is solely responsible for
the payment of all amounts when payable in connection therewith without any cost
or expense to Landlord, except for Landlord's obligation to contribute the EP
Tenant Improvement Allowance (defined below) in accordance with the provisions
of Paragraph 5 below. Tenant shall diligently proceed with the construction,
installation and completion of the EP Tenant Improvements in accordance with the
Construction Documents and the completion schedule reasonably approved by
Landlord. No material changes shall be made to the Construction Documents and
the Completion schedule approved by Landlord without Landlord's Prior written
consent, which consent shall not be unreasonably withheld or delayed.

      B.    Tenant, at its sole cost and expense (subject to the provisions of
Paragraph 5 below), shall employ a licensed, insured and bonded general
contractor ("Contractor") to construct the EP Tenant Improvements in accordance
with the Construction Documents. The construction contracts between Tenant and
the Contractor and between the Contractor and subcontractors shall be subject to
Landlord's prior written approval, which approval shall not be unreasonably
withheld or delayed. Proof that the contractor is licensed in California, is
bonded as required under California law, and has the insurance specified in
Exhibit B-1, attached hereto and incorporated herein by this reference, shall be
provided to Landlord at the time that Tenant requests approval of the Contractor
from Landlord. Tenant shall comply with or cause the Contractor to comply with
all other terms and provisions of Exhibit B-1.

      C.    Prior to the commencement of the construction and installation of
the EP Tenant Improvements, Tenant shall provide the following to Landlord, all
of which shall be to Landlord's reasonable satisfaction;

            (i)   An estimated budget and cost breakdown for the EP Tenant
      Improvements;

            (ii)  Estimated completion schedule for the EP Tenant Improvements;

            (iii) Copies of all required approvals and permits from governmental
      agencies having jurisdiction or authority for the construction and
      installation of the EP Tenant Improvements; provided, however, if prior to
      commencement of the construction and installation of EP Tenant
      Improvements, Tenant has not received the electrical, plumbing or
      mechanical permits, Tenant shall only be required to provide Landlord with
      evidence that Tenant has made application therefor, and, upon receipt by
      Tenant of such permits, Tenant shall promptly provide Landlord with copies
      thereof; and

            (iv)  Evidence of Tenant's procurement of insurance required to be
      obtained pursuant to the provisions of Paragraphs 4.B and 4.G.

      D.    Landlord shall, at all reasonable times, have a right to inspect the
Expansion Premises and the EP Tenant Improvements (provided Landlord does not
materially interfere with the work being performed by the Contractor or its
subcontractors) and Tenant shall immediately cease work upon written notice from
Landlord if the EP Tenant Improvements are not in compliance with the
Construction Documents approved by Landlord. If Landlord shall give notice of
faulty construction or any other deviation from the Construction Documents,
Tenant shall cause the Contractor to make corrections promptly. However, neither
the privilege herein granted to Landlord to make such inspections, nor the
making of such inspections by Landlord, shall operate as a waiver of any rights
of Landlord to require good and workmanlike construction and improvements
constructed in accordance with the Construction Documents.

      E.    Subject to Landlord complying with its obligations in Paragraph 5
below, Tenant shall pay and discharge promptly and fully all claims for labor
done and materials and services furnished in connection with the EP Tenant
Improvements. The EP Tenant Improvements shall not be commenced until five(5)
business days after Landlord has received notice from Tenant stating the date
the construction of the EP Tenant improvements is to commence so that Landlord
can post and record any appropriate Notice of Non-responsibility.

      F.    Tenant acknowledges and agrees that the agreements and covenants of
Tenant made in the Lease and the Amendment shall be fully applicable to Tenant's
construction of the EP Tenant Improvements.

      G.    Tenant shall maintain, and cause to be maintained, during the
construction of the EP Tenant Improvements, at its sole cost and expense,
insurance of the types and in the amounts specified in Exhibit B-1 and in
Section 12 of the Lease, together with builders' risk insurance for the amount
of the completed value of the EP Tenant Improvements on an all-risk
non-reporting form covering all improvements under construction, including
building materials, and other insurance in amounts and against such risks as the
landlord shall reasonably require in connection with the EP Tenant Improvements.

      H.    No materials, equipment or fixtures shall be delivered to or
installed upon the Expansion Premises pursuant to any agreement by which another
party has a security interest or rights to remove or repossess such items,
without the prior written consent of Landlord, which consent shall not be
unreasonably withheld.

      I.    Landlord reserves the right to establish reasonable rules and
regulations for the use of the Building during the course of construction of the
EP Tenant Improvements, including, but not limited to, construction parking,
storage of materials, hours of work, use of elevators, and clean-up of
construction related debris.

      J.    Upon completion of the EP Tenant Improvements, Tenant shall deliver
to Landlord the following, all of which shall be to Landlord's reasonable
satisfaction:

<PAGE>

            (i)   Any certificates required for occupancy, including a permanent
      and complete Certificate of Occupancy issued by the City of San Jose.

            (ii)  A Certificate of Completion signed by the Architect who
      prepared the Construction Documents, reasonably approved by Landlord.

            (iii) A cost breakdown itemizing all expenses for the EP Tenant
      Improvements, together with invoices and receipts for the same or other
      evidence of payment.

            (iv)  Final and unconditional mechanic's lien waivers for all the EP
      Tenant Improvements.

            (v)   A Notice of Completion for execution by Landlord, which
      certificate once executed by Landlord shall be recorded by Tenant in the
      official records of the Country of Santa Clara, and Tenant shall then
      deliver to Landlord a true and correct copy of the recorded Notice of
      Completion.

            (vi)  A true and complete copy of all as-built plans and drawings
      for the EP Tenant Improvements.

      K.    Tenant shall keep the Expansion Premises, the Original Premises, the
Building and the Park free from all liens and shall indemnify, defend (with
counsel reasonably satisfactory to Landlord), protect, and hold Landlord and the
other Indemnities, harmless from and against any and all claims, demands,
liabilities, judgments, penalties, losses, costs, damages, and expenses
(including, without limitation, attorneys' and experts' fees and costs) relating
to or arising in any manner whatsoever from the EP Tenant Improvements, Tenant's
construction work in the Building or the Premises, or any damage to the Park,
Building or Premises or injury to any personal property or person therein in
connection therewith. Notwithstanding any provision to the contrary in this
Amendment, the indemnity obligations of Tenant under this Amendment shall
survive any termination of this Amendment or the Lease. In addition to the
foregoing indemnity, if there is any damage to the Park, Building or Premises
caused by Tenant's or any of Tenant's Representatives' entry in or on the Park,
Building or Premises in connection with Tenants installation and construction of
the EP Tenant Improvements, Tenant shall immediately restore the Park, Building
or Premises substantially to the same condition existing prior to Tenants and
Tenant's Representatives' entry in, on or about the Park, Building or Premises
for such purpose. Nothing herein shall diminish or excuse Tenant from its
indemnity obligations in Section 14 of the Lease.

5.    EP TENANT IMPROVEMENT ALLOWANCE.

      A.    Subject to Tenant's compliance with the provisions of the Lease and
this Exhibit B, Landlord shall provide to Tenant an allowance in the amount of
One Hundred Twelve Thousand Four Hundred Eight-eight Dollars ($112,488.00) (the
"EP Tenant Improvement Allowance"). The EP Tenant Improvement Allowance shall be
used to design, prepare, plan, obtain the approval of, construct and install the
EP Tenant Improvements and for no other purpose. Except as otherwise expressly
provided herein, Landlord shall have no obligation to contribute the EP Tenant
Improvements Allowance unless and until the Construction Documents have been
approved by Landlord and Tenant has complied with all requirements set forth in
Paragraph 4.C. of this Exhibit B. In addition to the foregoing, Landlord shall
have no obligation to disburse all or any portion of the EP Tenant Improvement
Allowance to Tenant unless Tenant makes a progress payment request pursuant to
the terms and conditions of Paragraph 5.B. below prior to that date which is six
(6) months after the EP Commencement Date. The costs to be paid out of the EP
Tenant Improvement Allowance shall include all reasonable costs and expenses
associated with the design, preparation, approval, planning, construction and
installation of the EP Tenant Improvements (collectively, the "EP Tenant
Improvement Costs"), including all of the following:

            (i)   All costs of the Preliminary Plans and Specifications, the
      Final Plans and Specifications, and the Construction Documents, and
      engineering costs associated with completion of the State of California
      energy utilization calculations under Title 24 legislation;

            (ii)  All costs of obtaining building permits and other necessary
      authorizations from local governmental authorities;

            (iii) All costs of interior design and finish schedule plans and
      specifications including as-built drawings, if applicable;

            (iv)  All direct and indirect costs of procuring, constructing and
      installing the EP Tenant Improvements in the Expansion Premises,
      including, but not limited to, the construction fee for overhead and
      profit and the cost of all on-site supervisory and administrative staff,
      office, equipment and temporary services rendered by the Contractor in
      connection with the construction of the EP Tenant Improvements; provided,
      however, that the construction fee for overhead and profit, the cost of
      all on-site supervisory and administrative staff, office, equipment and
      temporary services shall not exceed amounts which are reasonable and
      customary for such items in the local construction industry;

            (v)   All fees payable to the Architect and any engineer if they are
      required to redesign any portion of the EP Tenant Improvements following
      Tenant's and Landlord's approval of the Construction Documents;

            (vi)  Utility connection fees;

            (vii) Inspection fees and filing fees payable to local governmental
      authorities, if any;

<PAGE>

            (viii) All costs of all permanently affixed equipment and non-trade
      fixtures provided for in the Construction Documents, including the cost of
      installation; and,

            (ix)  A construction management fee payable to Landlord in the
      amount of five percent (5%) of the aggregate of the Excess EP Tenant
      Improvement Costs (defined below) and the EP Tenant Improvement Allowance
      (the "CM Fee").

The EP Tenant Improvement Allowance shall be the maximum contribution by
Landlord for the EP Tenant Improvement Costs, and the disbursement of the EP
Tenant Improvement Allowance is subject to the terms contained hereinbelow.

      B.    Except for payment of the CM Fee, and subject to the provisions of
Paragraph 5.A. above, Landlord will make payments to Tenant from the EP Tenant
Improvement Allowance to reimburse Tenant for EP Tenant Improvement Costs paid
or incurred by Tenant in accordance with the provisions of this Exhibit B.
Payment of the CM Fee shall be the first payment from the EP Tenant Improvement
Allowance and shall be made by means of a deduction or credit against the EP
Tenant Improvement Allowance. All other payments of the EP Tenant Improvement
Allowance shall be by progress payments not more frequently than once per month
and only after satisfaction of the following conditions precedent: (a) receipt
by Landlord of conditional mechanics' lien releases for the work completed and
to be paid by said progress payment, conditioned only on the payment of the sums
set forth in the mechanics' lien release, executed by the Contractor and all
subcontractors, labor suppliers and material men; (b) receipt by Landlord of
unconditional mechanics' lien releases from the Contractor and all
subcontractors, labor suppliers and materialmen for all work other than that
being paid by the current progress payment previously completed by the
Contractor, subcontractors, labor suppliers and materialmen and for which Tenant
has received funds from the EP Tenant Improvement Allowance to pay for such
work; (c) receipt by Landlord of any and all documentation reasonably required
by Landlord detailing the work that has been completed and the materials and
supplies used as of the date of Tenant's request for the progress payment,
including, without limitation, invoices, bills or statements for the work
completed and the materials and supplies used; and (d) completion by Landlord or
Landlord's agents of any inspections of the work completed and materials and
supplies used as deemed reasonably necessary by Landlord. Except for the CM Fee
payment (credit), the EP Tenant Improvement Allowance progress payments shall be
paid to Tenant within thirty (30) days from the satisfaction of the conditions
set forth in the immediately preceding sentence. The preceding notwithstanding,
all EP Tenant Improvement Costs paid or incurred by Tenant prior to Landlord's
approval of the Construction Documents in connection with the design and
planning of the EP Tenant Improvements by Architect shall be paid from the EP
Tenant Improvement Allowance, without any retention, within thirty (30) days
following Landlord's receipt of invoices, bills or statements from Architect
evidencing such costs. Notwithstanding the foregoing to the contrary, Landlord
shall be entitled to withhold and retain five percent (5%) of the EP Tenant
Improvement Allowance or of any EP Tenant Improvement Allowance progress payment
until the lien-free expiration of the time for filing of any mechanics' liens
claimed or which might be filed on account of any work ordered by Tenant or the
Contractor or any subcontractor in connection with the construction and
installation of the EP Tenant Improvements.

      C.    Landlord shall not be obligated to pay any EP Tenant Improvement
Allowance progress payment or the EP Tenant Improvement Allowance retention if
on the date Tenant is entitled to receive the EP Tenant Improvement Allowance
progress payment or the EP Tenant Improvement Allowance retention Tenant is in
default of the Lease. Such payments shall resume upon Tenant curing any such
default within the time periods which may be provided for in the Lease.

      D.    Should the total cost of constructing the EP Tenant Improvements be
less than the EP Tenant Improvement Allowance, the EP Tenant Improvement
Allowance shall be automatically reduced to the amount equal to said actual
cost.

      E.    The term "Excess EP Tenant Improvement Costs" as used herein shall
mean and refer to the aggregate of the amount by which the actual EP Tenant
Improvement Costs exceed the EP Tenant Improvement Allowance. Tenant shall pay
all Excess EP Tenant Improvement Costs at the time said costs are incurred.

6.    TERMINATION. If the Lease is terminated prior the date on which the EP
Tenant Improvements are completed, for any reason due to the default of Tenant
hereunder, in addition to any other remedies available to Landlord under the
Lease , Tenant shall pay to Landlord as Additional Rent under the Lease, within
five (5) days of receipt of a statement therefor, any and all costs incurred by
Landlord and not reimbursed or otherwise paid by Tenant through the date of
termination in connection with the EP Tenant Improvements to the extent planned,
installed and/or constructed as of such date of termination, including, but not
limited to, any costs related to the removal of all or any portion of the EP
Tenant Improvements and restoration costs related thereto. Subject to the
provisions of Section 10.2 of the Lease, upon the expiration or earlier
termination of the Lease, Tenant shall not be required to remove the EP Tenant
Improvements it being the intention of the parties that the EP Tenant
Improvements are to be considered incorporated into the Building.

7.    LEASE PROVISIONS; CONFLICT. The terms and provisions of the Lease and the
Amendment, insofar as they are applicable, in whole or in part, to this Exhibit
B, are hereby incorporated herein by reference, and specifically including all
of the provisions of Section 31 of the Lease. In the event of any conflict
between the terms of the Lease or the Amendment and this Exhibit B, the terms of
this Exhibit B shall prevail and control. Any amounts payable by Tenant to
Landlord hereunder shall be deemed to be Additional Rent under the Lease, as
amended, and, upon any default in the payment of same, Landlord shall have all
rights and remedies available to it as provided for in the Lease, as amended.

<PAGE>

                                   EXHIBIT B-1

                       CONSTRUCTION INSURANCE REQUIREMENTS

Before commencing work, the contractor shall procure and maintain at its sole
cost and expense until completion and final acceptance of the work, at least the
following minimum levels of insurance.

A.    Workers' Compensation in statutory amounts and Employers Liability
      Insurance in the minimum amounts of $100,000 each accident for bodily
      injury by accident and $100,000 each employee for bodily injury by disease
      with a $500,000 policy limit, covering each and every worker used in
      connection with the contract work.

B.    Comprehensive General Liability Insurance on an occurrence basis
      including, but not limited to, protection for Premises/Operations
      Liability, Broad Form Contractual Liability, Owner's and Contractor's
      Protective, and Products/ Completed Operations Liability*, in the
      following minimum limits of liability.

      Bodily Injury, Property Damage, and
      Personal Injury Liability          $2,000,000/each occurrence
                                         $3,000,000/aggregate

      *Products/Completed Operations Liability Insurance is to be provided for a
      period of at least one (1) year after completion of work.

      Coverage should include protection for Explosion, Collapse and Underground
      Damage.

C.    Comprehensive Automobile Liability Insurance with the following minimum
      limits of liability.

      Bodily Injury and Property         $1,000,000/each occurrence
      Damage Liability                   $2,000,000/aggregate

      This insurance will apply to all owned, non-owned or hired automobiles to
      be used by the Contractor in the completion of the work.

D.    Umbrella Liability Insurance in a minimum amount of five million dollars
      ($5,000,000), providing excess coverage on a following-form basis over the
      Employer's Liability limit in Paragraph A and the liability coverages
      outlined in Paragraphs B and C.

E.    Equipment and Installation coverages in the broadest form available
      covering Contractor's tools and equipment and material not

      accepted by Tenant. Tenant will provide Builders Risk Insurance on all
      accepted and installed materials.

All policies of insurance, duplicates thereof or certificates evidencing
coverage shall be delivered to Landlord prior to commencement of any work and
shall name Landlord, and its partners and lenders as additional insureds as
their interests may appear. All insurance policies shall (1) be issued by a
company or companies licensed to be business in the state of California, (2)
provide that no cancellation, non-renewal or material modification shall be
effective without thirty (30) days prior written notice provided to Landlord,
(3) provide no deductible greater than $15,000 per occurrence, (4) contain a
waiver to subrogation clause in favor of Landlord, and its partners and lenders,
and (5) comply with the requirements of Sections 12.2, 12.3 and 12.4 of the
Lease to the extent such requirements are applicable.

<PAGE>

                                   EXHIBIT B-2
                               BUILDING STANDARDS

                            OUTLINE SPECIFICATION FOR

                  NEW OFFICE BUILD-OUT IN INDUSTRIAL BUILDINGS

OFFICE AREA

DEMISING PARTITION AND CORRIDOR WALLS:

Note: One hr. rated walls where required based on occupancy group.

A.    6" 20-gage metal studs at 24" O.C. (or as required by code based on roof
      height) framed full height from finish floor to surface above.

B.    One (1) layer 5/8" drywall Type "X" both sides of wall, fire taped only.

INTERIOR PARTITIONS:

A.    3-5/8" 25-gage metal studs at 24" O.C. to bottom of T-Bar ceiling grid
      approximately 9' 0" high.

B.    One (1) layer 5/8" drywall both sides of wall, smooth ready for paint.

C.    3-5/8" metal studs including all lateral bracing as required by code.

PERIMETER DRYWALL (AT OFFICE AREAS):

A.    3-5/8" metal studs @ 24" O.C. to 12' 0" above finished floor. (or as
      required by Title-24 for full height envelope then use demising wall
      spec.)

B.    One (1) layer 5/8" Type "X" drywall taped smooth and ready for paint.

COLUMN FURRING:

A.    Furring channel all sides of 2-1/2" metal studs per details.

B.    One (1) layer 5/8" drywall taped smooth and ready for paint.

C.    Columns within walls shall be furred-out.

ACOUSTICAL CEILINGS:

Note: Gyp. Bd. ceiling at all restrooms Typ.

A.    2' x 4' standard white T-Bar grid system as manufactured by Chicago
      Metallic of equal.

B.    2' x 4' x 5/8" white, fissured, no-directional acoustical tile to be
      Cortega as manufactured by Armstrong or equal.

PAINTING:

A.    Sheetrock walls within office to receive two (2) coats of interior latex
      paint as manufactured by Kelly Moore or equal. Some portions of second
      coat to be single accent color.

B.    Semigloss paint all restrooms and lunch rooms.

WINDOW COVERING:

A.    1" aluminum mini-blinds as manufactured by Levelor, Bali or equal, color
      to be selected by Legacy Partners Commercial, Inc.

B.    Blinds to be sized to fit window module.

VCT:

A.    VCT to be 1/8" x 12" x 12" as manufactured by Armstrong-Excelon Series or
      equal.
<PAGE>

B.    Slabs shall be water proofed per manufacturer recommendations, at sheet
      vinyl or VCT areas.

LIGHT FIXTURES:

A.    2" x 4" T-bar lay in 3-tube energy efficient fixture with cool white
      fluorescent tubes with prismatic acrylic lens as manufactured by Lithonia
      or equal. (Approximately 50 F.C.)

LIGHT SWITCHES:

A.    Switching as required by Title 24.

B.    Switching assembly to be Levinton or equal, color - White

ELECTRICAL OUTLET:

A.    110V duplex outlet in demising or interior partitions only, as
      manufactured by Leviton or equal color to be White.

B.    Maximum eight (8) outlets per circuit, spacing to meet code or minimum 2
      per office, conference room, reception and 2 dedicated over cabinet at
      lunch room junction boxes above ceiling for large open area with furniture
      partitions.

C.    Transformers to be a minimum of 20% or over required capacity.

D.    Contractors to inspect electric room and to include all necessary metering
      cost.

E.    No aluminum wiring is acceptable.

TELEPHONE/DATA OUTLET:

A.    One (1) single outlet box in wall with pullwire from outlet box to area
      above T-bar ceiling per office.

B.    Cover plate for phone outlets by telephone/data vendors.

FIRE SPRINKLERS:

As required by fire codes.

TOPSET BASE:

A.    4" rubber base as manufactured by Burke or equal, standard colors only.

B.    4" rubber base at VCT areas.

TOILET AREAS:

Wet walls to receive duraboard or wondslboard and marlite up to 48". Floor to
receive sheetvinyl and self coved base as required by code.

CARPET:

Note any of the following carpets are acceptable

Designweave: Alumni 28 oz., Windswept Classic 30 oz. or Stratton Design Series
III 30 oz, Structure II 28 oz.

WOOD DOORS:

Shall be 3' 0" x 7' 0" x 1-3/4" (unless otherwise specified) solid core,
prefinished harmony (rotary N. birch).

DOOR FRAMES:

Shall be ACI or equal, 3-3/4" or 4-7/8" throat, aluminum, standard black,
snap-on trim.

HARDWARE:

1-1/2 pr. butts F179 Stanley, Latchset D10S Rhodes Schlage, Lockset D53PD Rhodes
Schlage, Dome Type floor stop Gylnn Johnson FB13, Closer 4110LCN (where
required)

INSULATION:

By Title 24 insulation.

<PAGE>

PLUMBING:

A.    Shall comply with all local codes and handicapped code requirements.
      Fixtures shall be either "American Standard", "Kohler" or "Norris". All
      toilet accessories and grab bars shall be "Bobrick" or equal and approved
      by owner.

B.    Plumbing bid shall include 5 gallon minimum hot water heater, or insta hot
      with mixer valve including all connections.

TOILET PARTITIONS:

Shall be as manufactured by Fiat, global or equal if approved by owner. Color
shall be chosen by tenant.

HVAC:

HVAC units per specifications.

Five (5) year warranty provided on all HVAC compressor units. All penetrations
including curbs and sleepers to be hot moped to Legacy Partners Commercial, Inc.
standard.

WAREHOUSE AREAS:

Floor - seal concrete with water base clear acrylic sealer.
Fire Extinguishers - 2A 10 BC surface mount by code x by S. F.

400 W metal halide lighting at warehouse minimum 5 to 7 foot candles.

Note: All high pile storage requirements are excluded for standard building T.
I.

Note: When remodeling, all materials and finishes within remodeled or expansion
areas to match existing. If code upgrades are required for hardware, fixtures,
etc. use new specifications.

<PAGE>

                                   ADDENDUM 1
                              RIGHT OF FIRST OFFER

This Addendum 1 (the "Addendum") is incorporated as a part of that certain First
Amendment to Lease Agreement (the "Amendment"), made to be effective as of
October 1, 2002, by and between VIKO TECHNOLOGY, INC., a California corporation,
dba Adaptive Electronics ("Tenant"), and MILPITAS INDUSTRIAL PROPERTIES, INC., a
Delaware corporation ("Landlord"), for the leasing of those certain premises
located at 1605 Mabury Road, Units A, B and C, San Jose, California (the
"Premises"). Any capitalized terms used herein and not otherwise defined herein
shall have the meaning ascribed to such terms as set forth in the Lease and the
Amendment, as applicable.

      1.    RIGHT OF FIRST OFFER. During the first six (6) months after the EP
Commencement Date, Tenant shall have a one-time right of first offer ("First
Offer Right") to lease that certain contiguous space within the Building
containing approximately 12,454 rentable square feet, located at 1605 Mabury
Road, Unit D, San Jose, California (the "First Offer Space") which may become
available for lease, as provided herein below, as determined by Landlord. For
purposes hereof, the First Offer Space shall become available for lease to
Tenant immediately prior to the first time Landlord intends to submit to a third
party a bona fide proposal or letter of intent to lease all or any portion of
the First Offer Space. Notwithstanding anything herein to the contrary, Tenant's
First Offer Right as set forth herein shall be subject and subordinate to all
expansion, first offer and similar rights currently set forth in any lease which
has been executed as of the EP Commencement Date, as such leases may be
subsequently modified, amended or extended (collectively, the "Superior
Rights").

      2.    TERMS AND CONDITIONS. Landlord shall give Tenant written notice (the
"First Offer Notice") that the First Offer Space will or has become available
for lease by Tenant as provided above (as such availability is determined by
Landlord) pursuant to the terms of Tenant's First Offer Right, as set forth in
this Addendum, provided that no holder of Superior Rights desires to lease all
or any portion of the First Offer Space. Any such First Offer Notice delivered
by Landlord in accordance with the provisions of Section 1 above shall set forth
the terms upon which Landlord would lease the First Offer Space to Tenant,
including, without limitation (i) the anticipated date upon which the First
Offer Space will be available for lease by Tenant and the commencement date
therefor, (ii) the Base Rent payable for the First Offer Space, which shall be
equal to the Base Rent then being paid by Tenant under the Lease for the
Premises and adjusted to provide an effective rate at $0.63 per rentable
squarefoot, NNN, for the First Offer Space over the then remaining term of the
Lease, (iii) the tenant improvement allowance for such First Offer Space, if
any, to be provided by Landlord which, in no event shall exceed Thirty-Seven
Thousand Three Hundred Sixty-Two Dollars ($37,362.00), and (iv) the term of the
lease for the First Offer Space shall be coterminous with the Lease. On the
commencement date of the First Offer Space term, Landlord shall deliver to
Tenant possession of the First Offer Space in its then existing condition and
state of repair, "AS IS", without any obligation of Landlord to remodel, improve
or alter the First Offer Space, to perform any other construction or work of
improvement upon the First Offer Space, or to provide Tenant with any
construction or refurbishment allowance, except as otherwise set forth in clause
(iii) above. Tenant acknowledges that no representations or warranties of any
kind, express or implied, respecting the condition of the First Offer Space have
been made by Landlord or any agent of Landlord to Tenant, except as expressly
set forth herein. Tenant further acknowledges that neither Landlord nor any of
Landlord's agents, representatives or employees have made any representations as
to the suitability or fitness of the First Offer Space for the conduct of
Tenant's business, or for any other purpose. Any exception to the foregoing
provisions must be made by express written agreement signed by both parties.

      3.    PROCEDURE FOR ACCEPTANCE. On or before the date which is ten (10)
days after Tenant's receipt of Landlord's First Offer Notice (the "Election
Date"), Tenant shall deliver written notice to Landlord ("Tenant's Election
Notice") pursuant to which Tenant shall have the one-time right to elect either
to: (i) lease the entire First Offer Space described in the First Offer Notice
upon the terms set forth in the First Offer Notice (without variation or
deviation); or (ii) refuse to lease the First Offer Space upon the terms set
forth in the First Offer Notice. If Tenant does not respond, in writing, to
Landlord's First Offer Notice by the Election Date, Tenant shall be conclusively
deemed to have elected not to lease the First Offer Space. If Tenant elects or
is deemed to have elected not to lease the First Offer Space, then Tenant's
First Offer Right set forth in this Addendum shall terminate and Landlord shall
thereafter have the right to lease all or any portion of such First Offer Space
to anyone to whom Landlord desires on any terms Landlord desires.

      4.    LEASE OF FIRST OFFER SPACE. If Tenant timely exercises this First
Offer Right as set forth herein, Tenant shall simultaneously therewith provide
Landlord a non-refundable deposit, equivalent to the last month's Base Rent for
the First Offer Space and the parties shall have ten (10) business days after
Landlord receives Tenant's Election Notice and deposit from Tenant in which to
execute an amendment to the Lease adding such First Offer Space to the Premises
on all of the terms and conditions as applicable to the Premises, as modified to
reflect the terms and conditions as set forth in Landlord's First Offer Notice.
Upon full execution of an amendment for the First Offer Space, the
non-refundable deposit shall be credited toward Base Rent or the security
deposit for the First Offer Space, as agreed between the parties.
Notwithstanding anything to the contrary contained herein, Tenant must elect to
exercise its First Offer Right provided herein, if at all, with respect to all
of the space offered by Landlord to Tenant in Landlord's First Offer Notice, and
Tenant may not elect to lease only a portion thereof.

      5.    LIMITATIONS ON, AND CONDITIONS TO, FIRST OFFER RIGHT.
Notwithstanding anything in the foregoing to the contrary, at Landlord's option,
and in addition to all of Landlord's remedies under the Lease, at law or in
equity, the First Offer Right hereinabove granted to Tenant shall not be deemed
to be properly exercised if any of the following individual events occur or any
combination thereof occur: (i) at any time Tenant is, or has been, in default of
the performance of any of the covenants, conditions or agreements to be
performed under the Lease beyond applicable notice and cure periods; and/or (ii)
on the scheduled commencement date for Tenant's lease of the First Offer Space,
Tenant is in default under the Lease; and/or (iii) Tenant has assigned its
rights and obligations under all or part of the Lease or Tenant has subleased
all or part of the Premises; and/or (iv) Tenant's financial condition is
unacceptable to Landlord at the time Tenant's Election Notice is delivered to
Landlord; and/or (v) Tenant has failed to exercise properly this First Offer
Right in a timely

<PAGE>

manner in strict accordance with the provisions of this Addendum; and/or (vi)
Tenant no longer has possession of all or any part of the Premises under the
Lease, or if the Lease has been terminated earlier, pursuant to the terms and
provisions of the Lease. Tenant's First Offer Right to Lease the First Offer
Space is personal to the original Tenant executing the Lease, and may not be
assigned or exercised, voluntarily or involuntarily, by or to, any person or
entity other than the original Tenant, and shall only be available to and
exercisable by the Tenant when the original Tenant is in actual and physical
possession of the entire Premises.

      6.    BROKERS. Tenant hereby agrees that it will solely be responsible for
any and all brokerage commissions and finder's fees payable to any broker in
connection with any of the First Offer Space described herein and Tenant shall
indemnify, defend and hold Landlord free from, and harmless against, any
liability, claim, judgment, cost, expense, loss, or damages with respect
thereto, including without limitation, attorneys' fees and costs.

<PAGE>

                                   ADDENDUM 2
                         OPTION TO EXTEND THE LEASE TERM

This Addendum 2 (the "Addendum") is incorporated as a part of that certain First
Amendment to Lease Agreement (the "Amendment"), made to be effective as of
October 1, 2002, by and between VIKO TECHNOLOGY, INC., a California corporation,
dba Adaptive Electronics ("Tenant"), and MILPITAS INDUSTRIAL PROPERTIES, INC., a
Delaware corporation ("Landlord"), for the leasing of those certain premises
located at 1605 Mabury Road, Suites A, B, and C, San Jose, California (the
"Premises"). Any capitalized terms used herein and not otherwise defined herein
shall have the meaning ascribed to such terms as set forth in the Lease and the
Amendment, as applicable.

1.    GRANT OF EXTENSION OPTION. Subject to the provisions, limitations and
conditions set forth in Paragraph 5 below, Tenant shall have an option (the
"Option") to extend the Term of the Lease expiring on September 30, 2007 (the
"Initial lease Term") for five (5) years (the "Extended Term").

2.    TENANT'S OPTION NOTICE. Tenant shall have the right to deliver written
notice to Landlord of its intent to exercise this Option (the "Option Notice").
If Landlord does not receive the Option Notice from Tenant by that date which is
neither more than three hundred sixty-five (365) days nor less than two hundred
forty (240) days prior to the end of Initial Lease Term, all rights under this
Option shall automatically terminate and shall be of no further force or effect.
Upon Tenant's proper exercise of this Option and, subject to the provisions,
limitations and conditions set forth in Paragraph 5 below, the Initial Lease
Term shall be extended for the Extended Term.

3.    ESTABLISHING THE INITIAL MONTHLY BASE RENT FOR THE EXTENDED TERM. The
Initial Monthly Base Rent for the Extended Term shall be equal to the then Fair
Market Rental Rate, as hereinafter defined. As used herein, the "Fair Market
Rental Rate" payable by Tenant for the Extended Term shall mean the Base Rent
for the highest and best use for comparable space at which non-equity tenants,
as of the commencement of the Extended Term, will be leasing non-sublease,
non-equity, unencumbered space comparable in size, location and quality to the
Premises for a comparable term, which comparable space is located in the
Building and in other comparable first-class buildings in the vicinity of the
Building, taking into consideration all out-of-pocket concessions generally
being granted at such time for such comparable space, including the condition
and value of existing tenant improvements in the Premises. The Fair Market
Rental Rate shall include the periodic rental increases that would be included
for space leased for the period of the Extended Term.

Neither Landlord nor Tenant shall have the right to have a court or any other
third party entity establish the Fair Market Rental Rate. If Landlord and Tenant
are unable to agree on the Fair Market Rental Rate for the Extended Term within
ten (10) after Landlord's receipt of the Option Notice, Landlord and Tenant
being obligated only to act in good faith, this Option shall automatically
terminate and the Lease shall terminate at the end of the Initial Lease Term,
unless earlier terminated as provided in the Lease.

In no event shall the monthly Base Rent for any period of the Extended Term be
less than the highest monthly Base Rent charged during the Initial Lease Term.
Upon determination of the initial monthly Base Rent for the Extended Term in
accordance with the terms outlined above, Landlord and Tenant shall immediately
execute, at Landlord's sole option, either the standard lease agreement then in
use by Landlord, or an amendment to the Lease. Such new lease agreement or
amendment, as the case may be, shall set forth among other things, the initial
monthly Base Rent for the Extended Term, and the actual commencement date and
expiration date of the Extended Term. Tenant shall have no other right to extend
the term of the Lease under this Addendum unless Landlord and Tenant otherwise
agree in writing.

4.    CONDITION OF PREMISES AND BROKERAGE COMMISSIONS FOR THE EXTENDED TERM. If
Tenant timely and properly exercises this Option, in strict accordance with the
terms contained herein: (1) Tenant shall accept the Premises in its then "As-Is"
condition and, accordingly, Landlord shall not be required to perform any
additional improvements to the Premises; and (2) Tenant hereby agrees that it
will be solely responsible for any and all brokerage commissions and finder's
fees payable to any broker now or hereafter procured or hired by Tenant or who
otherwise claims a commission based on any act or statement of Tenant ("Tenant's
Broker") in connection with the Option. Tenant hereby further agrees that
Landlord shall in no event or circumstance be responsible for the payment of any
such commissions and fees to Tenant's Broker, and Tenant shall indemnify, defend
and hold Landlord free from, and harmless against, any liability, claim,
judgment, cost, expense, loss, or damages with respect thereto, including
without limitation, attorneys' fees and costs.

5.    LIMITATIONS ON, AND CONDITIONS TO, EXTENSION OPTION. This option is
personal to Tenant and may not be assigned, voluntarily or involuntarily,
separate from or as part of the Lease. At Landlord's option, all rights of
Tenant under this Option shall terminate and be of no force or effect if any of
the following individual events occur or any combination thereof occur: (1)
Tenant has been in default at any time during the Initial Lease Term beyond
applicable notice or cure periods, or is in default of any provision of the
Lease on the date Landlord receives the Option Notice; and/or (2) Tenant has
assigned its rights and obligations under all or part of the Lease or Tenant has
subleased all or part of the Premises; and/or (3) Tenant's financial condition
is unacceptable to Landlord at the time the Option Notice is delivered to
Landlord; and/or (4) Tenant has failed to exercise properly this Option in a
timely manner in strict accordance with the provisions of this Addendum; and/or
(5) Tenant no longer has possession of all or any part of the Premises under the
Lease, or if the Lease has been terminated earlier, pursuant to the terms and
provisions of the Lease.

6.    TIME IS OF THE ESSENCE. Time is of the essence with respect to each and
every time period described in this Addendum.<PAGE>
                                                                    EXHIBIT 10.8

                           INDUSTRIAL LEASE AGREEMENT

                             BASIC LEASE INFORMATION

LEASE DATE:

September 1,  1991

LANDLORD:

AETNA LIFE INSURANCE COMPANY,
A Connecticut corporation

LANDLORD'S ADDRESS:

c/o Aetna Property Services, Inc.
Kodak Center
1740 Technology Drive, Suite 600
San Jose, California 95110

TENANT:

Adaptive Circuits, A Division of Viko Technology., Inc.
_______________________________________________________

TENANT'S ADDRESS:

1585-A Mabury Road,
San Jose, CA 95133

PREMISES
SQUARE FOOTAGE:

Approximately Eighteen Thousand Six Hundred
______________(18,600 ) rentable square feet.

PREMISES ADDRESS:

1585-A Mabury  Road
San Jose , California   95133

BUILDING:

Building - "A"
San Jose , California

MONTHS OF TERM:

Sixty    ( 60 )  months

MONTHLY BASE RENT:

<TABLE>
<CAPTION>
Months       Sq. Ft.     Monthly Rate     Monthly Rent
------      -------      ------------     ------------
<S>         <C>          <C>           <C>
1   -  12    18,600 x     $ .  513      =  $ 9,541.80
---------    ------       --------         ----------
13  -  24    18,600 x     $ . 5225      =  $ 9,718.50
--     --    ------       --------         ----------
25  -  36    18,600 x     $ .  532      =  $ 9,895.20
--     --    ------       --------         ----------
37  -  48    18,600 x     $ .  532      =  $ 9,895.20
--     --    ------       --------         ----------
49  -  60    18,600 x     $ . 5415      =  $10,071.90
--     --    ------       --------         ----------
</TABLE>

PREPAID RENT:

N/A
Dollars ($ -0- )

MONTH TO WHICH
PREPAID RENT APPLIED:

N/A   (N/A) month of the Term

SECURITY DEPOSIT:

$20,000.00 (Certificate of Deposit) See Addendum  I
Dollars ($ 20,000.00 )

TENANT'S PROPORTIONATE:

Twenty Six and six tenths percent Eight and five tenths
percent( 8.5%)- Park

SHARE:

Eight and five tenths PERCENT ( 26.6% ) - Building

PERMITTED USE:

Printed circuit board plating manufacture and other
related uses.

BROKER(S):

Jeff Joffman & Greg Green of CB Commercial are
Representing Lessee and will be compensated by Lessee.

TENANT IMPROVEMENTS
ALLOWANCE:

Thirty Seven Thousand Two Hundred and no/100
Dollars ($  37,200.00 )

ARCHITECT:

Lessee's  choice to be approved by Lessor

EXHIBITS:

 EXHIBIT A     -  DIAGRAM OF THE PREMISES
 EXHIBIT B     -  TENANT IMPROVEMENTS
 EXHIBIT B-1   -  FINAL PLANS AND SPECIFICATIONS FOR
                  TENANT IMPROVEMENTS
 EXHIBIT C     -  COMMENCEMENT DATE MEMORANDUM

ADDENDUM OR ADDENDA:

Addendum I - Miscellaneous
Addendum II - Right of First Refusal
_______________________

Multi- Tenant with Tenant Improvements

                                       1
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
    PARAGRAPH                                                                 PAGE
    ---------                                                                 ----
<S>                                                                          <C>
1.    DEMISE.................................................................   4

2.    PREMISES ..............................................................   4

3.    TERM...................................................................   4

4.    RENT ..................................................................   4

5.    LATE CHARGE............................................................   6

6.    SECURITY DEPOSIT.......................................................   6

7.    POSSESION .............................................................   7

8.    USE OF PREMISES........................................................   7

9.    ACCEPTANCE OF PREMISES.................................................   7

10.   SURRENDER..............................................................   7

11.   ALTERATIONS AND ADDITIONS..............................................   8

12.   MAINTENANCE OF PREMISES................................................   8

13.   LANDLORD'S INSURANCE...................................................   9

14.   TENANT'S INSURANCE.....................................................   9

15.   INDEMNIFICATION........................................................   9

16.   SUBROGATION............................................................   10

17.   ABANDONMENT............................................................   10

18.   FREE FROM LIENS........................................................   10

19.   ADVERTISEMENTS AND SIGNS...............................................   10

20.   UTILITIES..............................................................   10

21.   ENTRY BY LANDLORD......................................................   10

22.   DESTRUCTION AND DAMAGE.................................................   10

23.   CONDEMNATION...........................................................   11

24.   ASSIGNMENT AND SUBLETTING..............................................   12

25.   TENANT'S DEFAULT.......................................................   13

26.   LANDLORD'S REMEDIES....................................................   14

27.   ATTORNEY'S FEES........................................................   15

28.   TAXES..................................................................   15

29.   EFFECT OF CONVEYANCE...................................................   15

30.   TENANT'S ESTOPPEL CERTIFICATE..........................................   15

31.   SUBORDINATION..........................................................   16
</TABLE>

                                       2
<PAGE>

                                TABLE OF CONTENTS
                                   (Continued)

<TABLE>
<CAPTION>
     SECTION                                                                  PAGE
     -------                                                                  ----
<S>                                                                          <C>
32.   ENVIRONMENTAL CONVENANTS...............................................   16

33.   NOTICES................................................................   17

34.   WAIVER.................................................................   18

35.   HOLDING OVER...........................................................   18

36.   SUCCESSORS AND ASSIGNS.................................................   18

37.   TIME...................................................................   18

38.   BROKERS................................................................   18

39.   LIMITATION OF LIABILITY................................................   18

40.   FINANCIAL STATEMENTS...................................................   18

41.   RULES AND REGULATIONS..................................................   18

42.   MORTGAGEE PROTECTION...................................................   19

43.   ENTIRE AGREEMENT.......................................................   19

44.   INTEREST...............................................................   19

45.   CONSTRUCTION...........................................................   19

46.   REPRESENTATIONS AND WARRANTIES OF TENANT...............................   19
</TABLE>

EXHIBIT A:  DIAGRAM OF PREMISES

EXHIBIT B:  TENANT IMPROVEMENTS

EXHIBIT B-1:FINAL PLANS AND SPECIFICATIONS FOR TENANT IMPROVEMENTS

EXHIBIT C:  COMMENCEMENT DATE MEMORANDUM

                                      3
<PAGE>

                                 LEASE AGREEMENT

      This Lease Agreement is made and entered into by and between Landlord and
Tenant on the Lease Date. The defined terms used in this Lease which are defined
in the Basic Lease Information set forth on page 1 of this Lease Agreement
("Basic Lease Information") shall have the meaning and definition given them in
the Basic Lease Information. The Basic Lease Information, the exhibit(s), the
addendum or addenda described in the Basic Lease Information, and this Lease
Agreement are and shall be construed as a single instrument and are referred to
herein as the "Lease".

            1.    DEMISE: In consideration for the rents and all other charges
and payments payable by Tenant, and for the agreements, terms and conditions to
be performed by Tenant in this Lease, LANDLORD DOES HEREBY LEASE TO TENANT, AND
TENANT DOES HEREBY HIRE AND TAKE FROM LANDLORD, the Premises described below
(the "Premises"), upon the agreements, terms and conditions of this Lease for
the Term hereinafter stated.

            2.    PREMISES: The Premises demised by this Lease is the square
footage of space specified in the Basic Lease Information and has the address
specified in the Basic Lease Information. The Premises are a part of and are
contained in the Building specified in the Basic Lease Information. The location
and dimensions of the Premises are depicted on Exhibit A, which is attached
hereto and incorporated herein by this reference. Tenant shall have the
non-exclusive right to use the parking and other common areas on the real
property on which the Building is situated (the "Property"). No easement for
light or air is incorporated in the Premises.

            The Premises demised by the Lease shall also include the Tenant
Improvements (as that term is defined in Exhibit B, attached hereto and
incorporated herein by this reference) to be constructed by Landlord within the
interior of the Premises. Landlord shall construct the Tenant Improvements on
the terms and conditions set forth in Exhibit B. Landlord and Tenant agree to
and shall be bound by the terms and conditions of Exhibit B.

            3.    TERM: The term of this Lease (the "Term") shall be for the
period of months specified in the Basic Lease Information, commencing on the
earliest to occur of the following dates (the "Commencement Date"):

            (a)   The date the Tenant Improvements are approved by the
appropriate governmental agency as being in accordance with its building code
and the building permit issued for such improvements, as evidenced by the
issuance of a final building inspection approval; or

            (b)   The date Landlord's architect and general contractor have both
certified in writing to Tenant that the Tenant Improvements have been
substantially completed in accordance with the plans and specifications
therefor, or

            (c)   The date Tenant commences occupancy of the premises;

When the Commencement Date has been determined pursuant to the foregoing,
Landlord and Tenant shall promptly execute a Commencement Date Memorandum in the
form attached hereto as Exhibit C.

            4.    RENT:

            (a)   BASE RENT. Tenant shall pay to Landlord, in advance on the
first day of each month, without further notice or demand and without offset or
deduction, the monthly installments of rent specified in the Basic Lease
Information (the "Base Rent").

            Upon execution of this Lease, Tenant shall pay to Landlord the
Prepaid Rent specified in the Basic Lease Information to be applied toward Base
Rent for the month of the term specified in the Basic Lease Information.

            (b)   ADDITIONAL RENT. In addition to the Base Rent, Tenant shall
pay to Landlord, in accordance with this paragraph 4, Tenant's proportionate
share (which is hereby agreed to be Tenant's Proportionate Share as specified in
the Basic Lease Information) of the following items related to the Building, the
Property, and/or the Outside Areas (as defined in Paragraph 4(b) (3)) (the
"Additional Rent"):

                                       4
<PAGE>

      (1)   TAXES AND ASSESSMENTS. All real estate taxes and assessments. Real
estate taxes and assessments shall include any form of assessment, license, fee,
tax, levy, penalty (if a result of Tenant's delinquency), or tax (other than net
income, estate, succession, inheritance, transfer or franchise taxes), imposed
by any authority having the direct or indirect power to tax, or by any city,
county, state or federal government or any improvement or other district or
division thereof, whether such tax is (i) determined by the area of the
Premises, the Building or the Property, or any part thereof, or the Rent and
other sums payable hereunder by Tenant or by other tenants, including, but not
limited to, any gross income or excise tax levied by any of the foregoing
authorities with respect to receipt of Rent or other sums due under this Lease;
(ii) upon any legal or equitable interest of Landlord in the Premises, the
Building or the Property, or any part thereof; (iii) upon this transaction or
any document to which Tenant is a party creating or transferring any interest in
the Premises, the Building or the Property; (iv) levied or assessed in lieu of,
in substitution for, or in addition to, existing or additional taxes against the
Premises, the Building or the Property, whether or not now customary or within
the contemplation of the parties; or (v) surcharged against the parking area.
Tenant and Landlord acknowledge that Proposition 13 was adopted by the voters of
the State of California in the June, 1978 election and that assessments, taxes,
fees, levies and charges may be imposed by governmental agencies for such
purposes as fire protection, street, sidewalk, road, utility construction and
maintenance, refuse removal and for other governmental services which may
formerly have been provided without charge to property owners or occupants. It
is the intention of the parties that all new and increased assessments, taxes,
fees, levies, and charges due to Proposition 13 or any other cause are to be
included within the definition of real property taxes for purposes of this
Lease.

      (2)   INSURANCE. All insurance premiums, including premiums for "all
risk," fire and extended coverage (including earthquake endorsements) insurance
for the Building, public liability insurance, other insurance as Landlord deems
necessary, and any deductibles paid under policies of any such insurance.

      (3)   OUTSIDE AREAS EXPENSES. All costs to maintain, repair, replace,
supervise, insure (including provision of public liability insurance) and
administer the areas outside of the Building ("Outside Areas"), including
parking areas, landscaping (including maintenance contracts), sprinkler systems,
sidewalks, driveways, curbs, lighting systems, and utilities for Outside Areas.

      (4)   PARKING CHARGES. Any parking charges or other costs levied, assessed
or imposed by, or at the direction of, or resulting from statutes or
regulations, or interpretations thereof, promulgated by any governmental
authority or insurer in connection with the use or occupancy of the Building,
the Outside Areas and/or the Property.

      (5)   MAINTENANCE AND REPAIR OF BUILDING. All costs to maintain, repair,
and replace the structural portions of the roof, the roof coverings, the
foundation, the floor slab, the load bearing walls, and the exterior walls
(including the painting thereof) of the Building, the heating, ventilation, and
air conditioning ("HVAC") systems serving the Building and/or the Premises
(including the cost of the maintenance contracts), and all costs to maintain,
repair and replace all utility and plumbing systems, fixtures and equipment
located outside the Building.

      (6)   MANAGEMENT AND ADMINISTRATION. All costs for management and
administration of the Building and the Property, including a property management
fee, accounting, auditing, billing, postage, employee benefits, payroll taxes,
etc. The total fee charged for items in this paragraph shall equal ten percent
(10%) of the sum of the total costs and expenses described in paragraph 4 (b)
and its sub-paragraphs.

            (C)   PAYMENT OF ADDITIONAL RENT.

      (1) Upon commencement of this Lease, Landlord shall submit to Tenant an
      estimate of monthly Additional Rent for the period between the
      Commencement Date and the following December 31 and Tenant shall pay such
      estimated Additional Rent on a monthly basis concurrently with the payment
      of the Base Rent. Tenant shall continue to make said monthly payments
      until notified by Landlord of a change therein. By March 1 of each
      calendar year, Landlord shall endeavor to provide to Tenant a statement
      showing the actual Additional Rent due to Landlord for the prior calendar
      year, prorated from the Commencement Date during the first year. If the
      total of the monthly payments of Additional Rent that Tenant has made for
      the prior calendar year (or portion thereof during which this Lease was in
      effect) is less than the actual Additional Rent chargeable to Tenant for
      such Prior calendar year, then Tenant shall pay the difference in a lump
      sum within ten (10) days after receipt of such statement from Landlord.
      Any overpayment by Tenant of Additional Rent for the prior calendar year
      shall be credited towards the Additional Rent next due.

                                       5
<PAGE>

      (2) The actual Additional Rent for the prior calendar year shall be used
      for purposes of calculating Tenant's monthly payment of estimated
      additional Rent for the current year, subject to adjustment as provided
      above, except that in any year in which resurfacing of the parking area or
      material roof repairs are planned, Landlord may include the estimated
      costs of such work in the estimated monthly Additional Rent. Landlord
      shall make the final determination of Additional Rent for the year in
      which this Lease terminates as soon as possible after termination of such
      year. Tenant shall remain liable for payment of any amount due to Landlord
      in excess of the estimated Additional Rent previously paid by Tenant, and,
      conversely, Landlord shall promptly return to Tenant any overpayment, even
      though the term has expired and Tenant has vacated the premises failure of
      Landlord to submit statements as called for herein shall not be deemed a
      waiver of Tenant's obligation to pay Additional Rent as herein provided.

            (d)   GENERAL PAYMENT TERMS. The Base Rent, additional rent and all
                  other sums payable by Tenant to Landlord hereunder are
                  referred to as the "Rent". All Rent shall be paid without
                  deduction, offset or abatement in lawful money of the United
                  States of America. Checks are to be made payable to Aetna
                  Property Services and shall be mailed to: Aetna Property
                  Services, Kodak Center, 1740 Technology Drive, #600, San Jose,
                  California 95110, or to such other person or place as Landlord
                  may, from time to time, designate to Tenant in writing. Rent
                  for any partial month during the Term shall be prorated for
                  the portion thereof falling due within the Term.

      5. LATE CHARGE: Notwithstanding any other provision of this Lease, Tenant
      hereby acknowledges that late payment to Landlord of Rent or other amounts
      due hereunder will cause Landlord to incur costs not contemplated by this
      Lease, the exact amount of which will be extremely difficult to ascertain.
      If any Rent or other sums due from Tenant are not received by Landlord or
      by Landlord's designated agent within ten (10) days after their due date,
      then Tenant shall pay to Landlord a late charge equal to ten percent (10
      %) of such overdue amount, plus any attorneys' fees incurred by Landlord
      by reason of Tenant's failure to pay Rent and/or other charges when due
      hereunder. Landlord and Tenant hereby agree that such late charges
      represent a fair and reasonable estimate of the costs that Landlord will
      incur by reason of Tenant's late payment. Landlord's acceptance of such
      late charges shall not constitute a waiver of Tenant's default which
      respect to such overdue amount or estop Landlord from exercising any of
      the other rights and remedies granted under this Lease.

           Initials:

           Landlord________________   Tenant______________

      6. SECURITY DEPOSIT: Concurrently with Tenant's execution of the Lease,
Tenant shall deposit with Landlord the Security Deposit specified in the basic
Lease Information as security for the full and faithful performance of each and
every term, covenant and condition of this Lease. Landlord may use, apply or
retain the whole or any part of the Security Deposit as may be reasonably
necessary (a) to remedy Tenant's default in the payment of any Rent, (b) to
repair damage to the premises caused by Tenant, (c) to clean the Premises upon
termination of this Lease, (d) to reimburse Landlord for the Payment of any
amount which Landlord may reasonably spend or be required to spend by reason of
Tenant's default, or (e) to compensate Landlord for any other loss or damage
which Landlord may suffer by reason of Tenant's default. Should Tenant
faithfully and fully comply with all of the terms, covenants and conditions of
this Lease, within thirty (30) days following the expiration of the Term , the
Security Deposit or any balance thereof shall be returned to Tenant or, at the
option of Landlord, to the last assignee of Tenant's interest in this Lease.
Landlord shall not be required to keep the Security Deposit separate from its
general funds and Tenant shall not be entitled to any interest on such deposit.
If Landlord so uses or applies all or any portion of said deposit, within five
(5) days after written demand therefor Tenant shall deposit cash with Landlord
in an amount sufficient to restore the Security Deposit to the full extent of
the above amount, and Tenant's failure to do shall be a default under this
Lease. In the event Landlord transfers its interest in this Lease, Landlord
shall transfer the then remaining amount of the Security Deposit to Landlord's
successor in interest, and thereafter Landlord shall have no further liability
to Tenant with respect to such Security Deposit.

                                       6
<PAGE>

      7.    POSSESION:

            (A) TENANT'S RIGHT OF POSSESSION. Subject to Paragraph 7(b), Tenant
shall be entitled to possession of the Premises upon commencement of the Term.

            (B)   DELAY IN DELIVERING POSSESSION. If for any reason whatsoever,
Landlord cannot deliver possession of the Premises to Tenant at the commencement
of the Term, this Lease shall not be void or voidable, nor shall Landlord, or
Landlord's agent's, be liable to Tenant for any loss or damage resulting
therefrom. Tenant shall not be liable for Rent until Landlord delivers
possession of the Premises to Tenant. That expiration date of the Term shall be
extended by the same number of days that Tenant's possession of the Premises was
delayed.

      8.    USE OF PREMISES:

                  (A) PERMITTED USES. The premises shall be used for the
      Permitted Uses specified in the Basic Lease Information and no other. The
      Premises shall not be used to create any nuisance or trespass, for any
      illegal purpose, for any purpose not permitted by applicable laws and
      regulations, or for any purpose that would vitiate the insurance or
      increase the premiums for insurance on the Premises or the Building.
      Tenant agrees not to overload the floor(s) of the Building.

                  (B)   COMPLIANCE WITH GOVERNMENTAL REGULATIONS. Tenant shall
at Tenant's expense, faithfully observe and comply with all municipal , State
and Federal statutes, rules, regulations, ordinances, requirements, and others,
now in force or which may hereafter be in force pertaining to the Premises or
Tenant's use thereof, including without limitation, any statutes, rules,
regulations, ordinances, requirements, or orders requiring installation of fire
sprinkler systems, seismic reinforcement and related alterations, and removal of
asbestos, whether substantial in costs or otherwise, and all recorded covenants,
conditions and restrictions affecting the property ("Private Restrictions") now
in force or which may hereafter be in force; provided, however, that Tenant
shall not be required to make structural changes to the premises or building not
related to Tenant's specific use of the Premises unless the requirement for such
changes is imposed as a result of any improvements or additions made or proposed
to be made at Tenant's request. The judgment of any court of competent
jurisdiction, or the admission of Tenant in any action or proceeding against
Tenant, whether Landlord be a party thereto or not, that Tenant has violated any
such rule, regulation, ordinance, statute or Private Restriction, shall be
conclusive of that fact as between Landlord and Tenant.

      9.    ACCEPTANCE OF PREMISES: By entry hereunder, Tenant accepts the
Premises as suitable for Tenant's intended use and as being in good and sanitary
operating order, condition and repair, AS IS, and without representation or
warranty by Landlord as to the condition, use or occupancy which may be made
thereof. Any Exceptions to the foregoing must be by written agreement executed
by Landlord and Tenant.

      10.   SURRENDER: Tenant's agrees that on the last day of the Term, or on
the sooner termination of this Lease, Tenant shall surrender the Premises to
Landlord (a) in good condition and repair (damage by Acts of God, fire, and
normal wear and tear excepted ), but with all interior walls painted or cleaned
so they appear painted, any carpets cleaned, and with all floors cleaned and
waxed, together with all alterations, additions and improvements which may have
been made in or on the Premises; except that Tenant shall remove trade fixtures
put in at the expense of Tenant and any improvements as to which Landlord has,
prior to the date of surrender, consented to or requested removal; and (b)
otherwise in accordance with Paragraph 32(f). Tenant shall repair all damage
caused by such removal and otherwise restore the Premises in accordance with the
preceding sentence at Tenant's sole cost and expense. On or before the
expiration or sooner termination of this Lease, Tenant shall remove all of
Tenant's personal property from the Premises. All property of tenant not so
removed, unless such non-removal is consented to by Landlord, shall be deemed
abandoned by Tenant, provided that in such event Tenant shall remain liable to
Landlord for all costs incurred in storing and disposing of such abandoned
property of Tenant. If the Premises are not surrendered at the end of the term
or sooner Termination of this Lease, and in accordance with the provisions of
this Paragraph 10 and of Paragraph 321(f), Tenant hereby indemnifies Landlord
against loss or liability resulting from delay by Tenant in so surrendering the
Premises including, without limitation, any claims made by any succeeding Tenant
founded on such delay.

                                       7
<PAGE>

11. ALTERARIONS AND ADDITIONS:

      (A)   Tenant shall not make, or permit to be made, any alteration or
addition to the Premises, or any part thereof, without the prior written consent
of Landlord, such consent not to be unreasonably withheld. See Addendum I.

      (B)   Any alteration or addition to the Premises shall be at Tenant's sole
costs and expense, in compliance with all applicable laws and requirements
requested by Landlord, and in accordance with plans and specifications approved
in writing by Landlord.

      (C)   In the event Landlord consents to a proposed alteration or addition,
such consent shall include Landlord's advice whether or not such proposed
alteration or addition shall be required to be removed at the expiration or
termination of this Lease. If Landlord fails so to advise Tenant regarding
whether or not a proposed alteration or addition may be removed at the
expiration or termination of this Lease, then Tenant shall be required to
surrender the alteration or addition to Landlord with the Premises, without
compensation to Tenant, at the expiration or termination of this Lease. All
additions, alterations or improvements, including, but no limited to, heating,
lighting, electrical, air conditioning, fixed partitioning, drapery, wall
covering and paneling, built-in cabinet work and carpeting installations made by
Tenant, together with all property that has become an integral part of the
Building, shall at once be and become the property of Landlord, and shall not be
deemed trade fixtures.

      (D)   Tenant agrees not to proceed to make such alterations or additions,
notwithstanding consent from Landlord to do so, until three business days after
Tenant's 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 posted
and to remain posted until the completion of work.

12. MAINTENANCE OF PREMISES:

            (A)   MAINTENANCE BY TENANT. Throughout the term, Tenant's shall, at
its sole expense, (1) keep and maintain in good order and condition, repair, and
replace the Premises, and every part thereof, including glass, windows, window
frames, skylights, interior and exterior doors and door frames, and the interior
of the Premises, (excepting only those portions of the Building to be maintained
by Landlord, as provided in Paragraph 12(c) below), (2) keep and maintain in
good order and condition, repair and replace all utility and plumbing systems,
fixtures and equipment, including without limitation, electricity, gas, water,
and sewer, located in or on the Premises, and furnish all expendables, including
light bulbs, paper goods and soaps, used in the Premises, (3) repair all damage
to the Premises, the Building or the Outside Areas caused by the negligence or
willful misconduct of Tenant or its agents, employees, contractors or invitees.
Tenant shall not do anything to cause any damage, deterioration or unsightliness
to the Building and the Outside Areas.

            (B)   LANDLORD'S RIGHT TO MAINTAIN AND REPAIR AT TENANT'S EXPENSE.
Notwithstanding the foregoing, Landlord shall have the right, but not the
obligation, the Tenant's expense, to enter the Premises and perform Tenant's
maintenance, repair and replacement work. Within ten (10) days after invoice
therefor from landlord, Tenant shall pay all reasonable costs and expenses
incurred by Landlord in connection with such maintenance, repair and replacement
work.

            (C)   MAINTENANCE BY LANDLORD. Subject to the provisions of
Paragraph 12(a),22 and 23, and further subject to Tenant's obligation under
Paragraph 4 to reimburse Landlord, in the form of Additional Rent, for Tenant's
Proportionate Share of the cost and expense of the following items, Landlord
agrees to repair and maintain the following items: the structural portions of
the roof and the roof coverings (provided that Tenant installs no additional air
conditioning or other equipment on the roof that damages structural portions of
the roof or the roof coverings), the foundation, the floor slab, the load
bearing walls, and the exterior walls (excluding any glass therein but including
the painting thereof) of the Building; the HVAC systems serving the Building
and/or the Premises; the utility and plumbing systems, fixtures, and equipment
located outside the Building; and the parking areas, landscaping, sprinkler
systems, sidewalks, driveways, curbs, and lighting systems in the Outside Areas.
Landlord shall not be required to repair or maintain conditions created due to
any act, negligence or omission of Tenant or its agents, contractors, employees
or invitees. Landlord's obligation hereunder to repair and maintain is subject
to the condition precedent that Landlord shall have received written notice of
the need for such repairs and maintenance, Tenant shall promptly report in
writing to Landlord any defective condition known to it which Landlord is
required to repair, and failure to so report such defects shall make Tenant
responsible to Landlord for any liability incurred by Landlord by reason of such
condition.

                                       8
<PAGE>

            (D)   TENANT'S WAIVER OF RIGHTS. Tenant hereby expressly waives all
rights to make repairs at the expense of Landlord or to terminate this Lease, as
provided for in California Civil Code Sections 1941 and 1942, and 1932(1),
respectively, and any similar or successor statute or law in effect or any
amendment thereof during the Term.

      13.   LANDLORD'S INSURANCE: Landlord shall purchase and keep in force
fire, extended coverage and "all risk" insurance covering the Building. Tenant
shall, at its sole cost and expense, comply with any and all reasonable
requirements pertaining to the Premises of any insurer necessary for the
maintenance of reasonable fire and public liability insurance covering the
Building and appurtenances. Landlord, at Tenant's cost, may maintain "Loss of
Rents" insurance, insuring that the Rent will be paid in a timely manner to
Landlord for a period of at least twelve (12) months if the premises are
destroyed or rendered unusable or inaccessible by any cause insured against
under this Lease.

      14.   TENANT'S INSURANCE:

            (A)   PUBLIC LIABILITY INSURANCE. Tenant shall, at Tenant's expense,
secure and keep in force a "broad form" public liability insurance and property
damage policy covering the Premises and the Outside Areas, insuring Tenant and
naming Landlord and its lenders as additional insured's, against liability
arising out of the ownership, use, occupancy or maintenance of the Premises and
all outside Areas. The minimum limit of coverage of such policy shall be in the
amount of not less than Three Million Dollars ($3,000,000.00) for injury or
death of one person in any one accident or occurrence and in the amount of not
less than Three- Million Dollars ($3,000,000.00) for injury or death of more
than one person in any one accident or occurrence, shall include an extended
liability endorsement providing contractual liability coverage (which shall
include coverage for Tenant's indemnification obligations in this Lease), and
shall contain a severability of interest clause or a cross liability
endorsement. Such insurance shall further insure Landlord and Tenant against
liability for property damage of at least One Million Dollars ($1,000,000.00).
The limit of any insurance shall not limit the liability of Tenant hereunder. No
policy shall be cancellable or subject to reduction of coverage, and loss
payable clauses shall be subject to Landlord's approval. Such policies of
insurance shall be issued as primary policies and not contributing with or in
excess of coverage that Landlord may carry, by an insurance company authorized
to do business in the State of California for the issuance of such type of
insurance coverage and rated A: XIII or better in Best's Key Rating Guide. A
copy of said policy or a certificate evidencing to Landlord's reasonable
satisfaction that such insurance is in effect shall be delivered to Landlord
upon commencement of the Term, and thereafter whenever Landlord shall reasonably
request.

            (B)   PERSONAL PROPERTY INSURANCE. Tenant shall maintain in full
force and effect on all of its fixtures and equipment on the Premises, a policy
or policies of fire and extended coverage insurance with standard coverage
endorsement to the extent of the full replacement cost thereof. During the term
of this Lease the proceeds from any such policy or policies of insurance shall
be used for the repair or replacement of the fixtures and equipment so insured.
Landlord shall have no interest in the insurance upon Tenant's equipment and
fixtures and will sign all documents reasonably necessary in connection with the
settlement of any claim or loss by Tenant. Landlord will not carry insurance on
Tenant's possessions. Tenant shall furnish Landlord with a certificate
evidencing to Landlord's reasonable satisfaction that such insurance is in
effect, and whenever required, shall satisfy Landlord that such policy is in
full force and effect.

            15.   INDEMNIFICATION:

            (A)   OF LANDLORD. Tenant shall indemnify and hold harmless Landlord
and agents, employees, partners, shareholders, directors, invitees, and
independent contractors (collectively "Agents") of Landlord against and from any
of all claims, liabilities, judgments, cost, demands, causes of action and
expenses (including, without limitation, reasonable attorneys' fees) arising
from (1) Tenant's use of the Premises or from any activity done, permitted or
suffered by Tenant in or about the Premises, the Building or the Property, and
(2) any act, neglect, fault, willful misconduct or omission of Tenant, or
Tenant's Agents or from any breach or default in the terms of this Lease by
Tenant, and (3) any action or proceeding brought on account of any matter in
Items (1) or (2). If any action or proceeding is brought against Landlord by
reason of any such claim, upon notice from Landlord, Tenant shall defend the
same at Tenant's expense by counsel reasonably satisfactory to Landlord. As a
material part of the consideration of the Landlord, Tenant hereby assumes all
risk of damage to property or injury to persons in or about the Premises from
any cause whatsoever (except that which is caused by the sole active negligence
or willful misconduct by Landlord or its Agents or by the failure of Landlord to
observe any of the terms and conditions of this Lease, if such failure has
persisted of an unreasonable period of time after written notice of such
failure), and Tenant hereby waives all claims in respect thereof against
Landlord. The obligations of Tenant under this Paragraph 15 shall survive any
termination of this Lease.

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<PAGE>

            (B)   NO IMPAIRMENT OF INSURANCE. The forgoing indemnity shall not
relieve any insurance carrier of its obligations under any policies required to
be carried by either party pursuant to this Lease, to the extent that such
policies cover the peril or occurrence that results in the claim that is subject
to the foregoing indemnity.

            16.   SUBROGATION: Landlord and Tenant hereby mutually waive any
claim against the other during the Term for any injury to person or loss of
damage to any of their property located on or about the Premises, the Building
or the Property that is cause by or results from perils covered by insurance
carried by the respective parties, to the extent of the proceeds of such
insurance actually received with respect to such injury, loss or damage, whether
or not due to the negligence of the other party or its agents. Because the
foregoing waivers will preclude the assignment of any claim by way of
subrogation to an insurance company or any other person, each party now agrees
to immediately give to its insurer written notice of the terms of these mutual
waivers and shall have their insurance policies indorsed to prevent in
invalidation of the insurance coverage because of these waivers. Nothing in this
Paragraph 16 shall relieve a party of liability to the other for failure to
carry insurance required by this Lease.

            17.   ABANDONMENT: Tenant shall not abandon the Premises at any time
during the Term. In the event of abandonment, the rights and remedies of Tenant
and Landlord shall be determined in accordance with the applicable California
statutes in effect at the time of abandonment.

            18.   FREE FROM LIENS: Tenant shall keep that Premises and the
Property, free from any liens arising out of any work performed, materials
furnished, or obligations incurred by or for Tenant.

            19.   ADVERTISEMENTS AND SIGNS: Tenant shall not place or permit to
be placed in, upon, or about the Premises or the Property any signs,
advertisements or notices without obtaining Landlord's prior written consent or
without complying with applicable law, and will not conduct, or permit to be
conducted, any sale by auction on the Premises or otherwise on the Property.
Tenant shall remove any sign, advertisement or notice placed on the Premises by
Tenant upon the expiration of the Term or sooner termination of this Lease, and
Tenant shall repair any damage or injury to the Premises or the Property caused
thereby, all at Tenant's expense. If any signs are not removed, or necessary
repairs not made, Landlord shall have the right to remove the signs and repair
any damage or injury to the Premises at Tenant's sole cost and expense.

            20.   UTILITIES: Tenant shall pay for all water, gas, heat, light,
power, telephone service and all other materials and services supplied to the
Premises. If Tenant fails to pay for any of the foregoing when due, Landlord may
pay the same and add such amount to the Rent

            21.   ENTRY BY LANDLORD: Tenant shall permit Landlord and its Agents
to enter into and upon the Premises at all reasonable times, upon reasonable
notice (except in the case of an emergency, for which no notice shall be
required), and subject to Tenant's reasonable security arrangements, for the
purpose of inspecting the same or showing the Premises to prospective
purchasers, lenders or Tenants or to alter, improve, maintain and repair the
Premises as required or permitted of Landlord under the Terms hereof without any
rebate of Rent and without any liability to Tenant for any loss of occupation or
quiet enjoyment of the Premises thereby occasioned (except for actual damages
resulting from the negligence or willful misconduct of Landlord or its agents);
and Tenant shall Permit Landlord to post notices of non-responsibility and
ordinary "for sale" or "for lease" signs, provided that Landlord may post such
"for lease" signs and exhibit the Premises to prospective tenants only during
the six (6) months prior to termination of this Lease. No such entry shall be
construed to be a forceable or unlawful entry into, or a detainer of, the
Premises, or an eviction of Tenant from the Premises.

            22.   DESTRUCTION AND DAMAGE:

            (A)   If the Building is damage by fire or other perils covered by
extended coverage insurance, Landlord shall, at Landlord's option:

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<PAGE>

            (1)   In the event of total destruction (which shall mean
destruction or damage in excess of twenty-five percent (25 %) of the full
insurable value thereof) of the Building, elect either to commence promptly to
repair and restore the Building and prosecute the same diligently to completion,
in which event this Lease shall remain in full force and effect; or not to
repair or restore the Building in which event this Lease shall terminate.
Landlord shall give Tenant written notice of its intention within sixty (60)
days after the occurrence of such destruction. If Landlords elects not to
restore the Building, this Lease shall be deemed to have terminated as of the
date of such total destruction.

            (2)   In the event of a partial destruction (which shall mean
destruction or damage to an extent not exceeding twenty-five percent (25%) of
the full insurable value thereof) of the Building for which Landlord will
receive insurance proceeds sufficient to cover the cost to repair and restore
such partial destruction and, if the damage thereto is such that the Building
maybe substantially repaired or restored to its condition existing immediately
prior to such damage or destruction within one hundred eighty (180) days from
the date of such destruction, Landlord shall commence and proceed diligently
with the work of repair and restoration, in which event the Lease shall continue
in full force and effect. If such repair and restoration requires longer that
one hundred eighty (180) days or if the insurance proceeds therefor (plus any
amounts Tenant may elect or is obligated to contribute) are not sufficient to
cover the cost of such repair and restoration. Landlord may elect either to so
repair and restore, in which event the Lease shall continue in full force and
effect, or not to repair or restore, in which event the lease shall terminate.
In either case, Landlord shall give written notice to Tenant of its intention
within sixty (60) days after the destruction occurs. If Landlord elects not to
restore the Building, this Lease shall be deemed to have terminated as of the
date of such partial destruction.

            (3)   Notwithstanding anything to the anything to the contrary
contained in this Paragraph 22, in the event of damage to the Building or the
Premises occurring during the last twelve (12) months of the Term, Landlord may
elect to terminate this Lease by written notice of such election given to Tenant
within thirty (30) days after the damage occurs.

            (B)   If the Building is damaged by any peril not covered by
extended coverage insurance, and the cost to repair such damage exceeds any
amount Tenant may agree to contribute. Landlord may elect either to commence
promptly to repair and restore the Building and prosecute the same diligently to
completion, in which event this Lease shall remain in full force and effect; or
not to repair or restore the Building, in which event this Lease shall
terminate. Landlord shall give Tenant written notice of its intention within
sixty (60) days after the occurrence of such damage. If Landlord elects not to
restore the Building, this Lease shall be deemed to have terminated as of the
date on which Tenant surrenders possession of the Premises to Landlord, except
that if the damage to the Premises materially impairs Tenant's ability to
continue its business operations in the Premises, then this Lease shall be
deemed to have terminated as of the date such damage occurred.

            (C)   In the event of the repair and restoration as herein provided,
the monthly installments of Base Rent shall be abated proportionately in the
ratio which Tenant's use of the Premises is impaired during the period of such
repair or restoration, to the extent of rental abatement insurance proceeds
received by Landlord. Tenant shall not be entitled to any compensation or
damages for loss of use of the whole or any part of the Premises and/or any
inconvenience or annoyance occasioned by such damage, repair or restoration

            (D)   If Landlord is obligated to or elects to repair or restore as
herein provided, Landlord shall repair or restore only those portions of the
Building and Premises which were originally provided at Landlord's expense,
substantially to their condition existing immediately prior to the occurrence of
the damage or destruction; and Tenant shall promptly repair and restore, at
Tenant's expense, Tenant's fixtures, improvements, alterations and additions in
and to the Premises or Building which were not provided at Landlord's expense.

            (E)   Tenant hereby waives the provisions of California Civil Code
Section 1932(2) and Section 1933(4) which permit termination of a lease upon
destruction of the leased premises, and the provisions of any similar law now or
hereinafter in effect, and the provisions of this Paragraph 22 shall govern
exclusively in case such destruction.

      23.   CONDEMNATION: If twenty-five (25%) or more of the Building or the
parking area for the Premises is taken for any public or quasi-public purpose by
any lawful governmental power or authority, by exercise of the right of
appropriation, inverse condemnation, condemnation or eminent domain, or sold to
prevent such taking (each such event being referred to as a "Condemnation"),
Landlord may, at its option, terminate this Lease as of the date title vests in
the condemning party. If the Building after any

                                       11
<PAGE>

Condemnation and any repairs by Landlord would be untenantable for the conduct
of Tenant's business operations, Tenant shall have the right to terminate this
Lease as of the date title vests in the condemning party. If either party elects
to terminate this Lease as provided herein, such election shall be made by
written notice to the other party given within thirty (30) days after the nature
and extent of such Condemnation have been finally determined. Tenant shall not
because of such taking assert any claim against Landlord. Landlord shall be
entitled to receive the proceeds of all Condemnation awards, and Tenant hereby
assigns to Landlord all of its interest in such awards. If less than twenty-five
percent (25%) of the Building or the parking area is taken, Landlord at its
option may terminate this Lease. If neither Landlord nor Tenant elects to
terminate this Lease to the extent permitted above, Landlord shall promptly
proceed to restore the premises, to the extent of any Condemnation award
received by Landlord, to substantially their same condition as existed prior to
such Condemnation, allowing for the reasonable effects of such condemnation, and
a proportionate abatement shall be made to that Base Rent corresponding to the
time during which, and to the portion of the floor area of the Building
(adjusted of any increase thereto resulting from any reconstruction) of which,
Tenant is deprived on account of such Condemnation and restoration. The
provisions of California Code of Civil Procedure Section 1265.130, which allows
either party to petition the Superior Court to terminate the Lease in the Event
of a partial taking of the Premises, and any other applicable law now or
hereafter enacted, are hereby waived by Landlord and Tenant.

      24.   ASSIGNMENT AND SUBLETTING

            (A)   Tenant shall not voluntarily or by operation of law, (1)
mortgage, pledge, hypothecate or encumber these Lease or any interest herein,
(2) assign or transfer this Lease or any interest herein, sublet the Premises or
any part thereof, or any right or privilege appurtenant thereto, or allow any
other person (the employees, agents and invitees of Tenant excepted) to occupy
or use the premises, or any portion thereof, without first obtaining the written
consent of Landlord, which consent shall not be withheld unreasonably. When
Tenant requests Landlord's consent to such assignment or subletting, it shall
notify Landlord in writing of the name and address of the proposed assignee or
subtenant and the nature and character of the business of the proposed assignee
or subtenant and shall provide current financial statements for the proposed
assignee or subtenant prepared in accordance with generally accepted accounting
principles. Tenant shall also provide Landlord with a copy of the proposed
sublet or assignment agreement, including all material terms and conditions
thereof. Landlord shall have the option, to be exercised within thirty (30) days
of receipt of the foregoing, to (1) cancel this Lease as of the commencement
date stated in the proposed sublease or assignment, (2) acquire from Tenant the
interest, or any portion thereof, in this Lease and/or the Premises that Tenant
proposes to assign or sublease, on the same terms and conditions as stated in
the proposed sublet or assignment agreement, (3) consent to the proposed
assignment or sublease, or (4) refuse its consent to the proposed assignment or
sublease providing that such consent shall not be unreasonably withheld, any
consent or refusal to consent shall be delivered to Lessee within 10 business
days.

            (B)   Without otherwise limiting the criteria upon which Landlord
may withhold its consent, Landlord may take into account the reputation and
credit worthiness of the proposed assignee or subtenant, the character of the
business proposed to be conducted in the Premises or portion thereof sought to
be subleased, and the potential impact of the proposed assignment or sublease on
the economic value of the Premises. In any event, Landlord may withhold its
consent to any assignment or sublease, if (1) the actual use proposed to be
conducted in the Premises or portion thereof conflicts with the provisions of
Paragraph 8(a) or (b) above or with any other lease which restricts the used to
which any space in the Building maybe put, or (2) the proposed assignment or
sublease requires alterations, improvements or additions to the Premises or
portions thereof.

            (C)   If Landlord approves an assignment or subletting as herein
provided, Tenant shall pay to Landlord, as Additional Rent the difference, if
any, between (1) the Base Rent plus Additional Rent allocable to that part of
the Premises affected by such assignment or sublease pursuant to the provisions
of this Lease, and (2) the rent and any additional rent payable by the assignee
or sub lessee to Tenant, after deducting the cost incurred by Tenant in
connection with any such assignment or sublease. The assignment or sublease
agreement, as the case may be, after approval by Landlord, shall not be amended
without Landlord's prior written consent, and shall contain a provision
directing to assignee or subtenant to pay the rent or other sums due thereunder
directly to Landlord upon receiving written notice from Landlord that Tenant is
in default under this Lease with respect to the payment of Rent. Landlord's
collection of such rent and other sums shall not constitute an acceptance by
Landlord of attornment by such assignee or subtenant. A consent to one
assignment, subletting, occupation or use shall not be deemed to be a consent to
any assignment, subletting, occupation or use, and consent to any assignment or
subletting shall in no way relieve Tenant of any liability under this Lease. Any
assignment or subletting without Landlord's consent shall be void, and shall, at
the option of Landlord, constitutes a Default under this Lease.

                                       12
<PAGE>

            (D)   Tenant shall pay Landlord's reasonable fees, not to exceed One
Thousand Dollars ($ 1,000.00) per transaction, incurred in connection with
Landlord's review and processing of documents regarding any proposed assignment
or sublease.

            (E)   Tenant acknowledges and agrees that the restrictions,
conditions and limitations imposed by this Paragraph 24 on Tenant's ability to
assign or transfer this Lease or any interest herein, to sublet the Premises or
any part thereof, to Transfer or assign any right or privilege appurtenant to
the Premises, or to allow any other person to occupy or use the Premises or any
portion thereof, are, for the purposes of California Civil Code Section 1951.4,
as amended from time to time, and for all other purposes, reasonable at the time
that the lease was entered into, and shall be deemed to be reasonable at the
time that Tenant seeks to assign or transfer this Lease or any interest herein,
to sublet the Premises or any part thereof, to transfer or assign any right or
privilege appurtenant to the premises, or to allow any other person to occupy or
use the Premises or any portion thereof.

      25.   TENANT'S DEFAULT: The occurrence of any one of the following events
shall constitute an event of default on the part of Tenant ("Default"):

            (A)   The abandonment of the Premises by Tenant;

            (B)   Failure to pay any installment of Rent or any other monies due
and payable hereunder, said failure continuing for a period of three (3) days
after the same is due;

            (C)   A general assignment by Tenant for the benefit of creditors;

            (D)   The filing of a voluntary petition in bankruptcy by Tenant,
the filling of a voluntary petition for an arrangement, the filing of a
petition, voluntary or involuntary, for reorganization, or the filing of an
involuntary petition by Tenant's creditors, said involuntary petition remaining
undischarged for a period of sixty (60) days;

            (E)   Receivership , attachment, or other judicial seizure of
substantially all of Tenant's assets on the Premises such attachment or other
seizure remaining undismissed or undischarged for a period of sixty (60) days
after the levy thereof;

            (F)   Failure of Tenant to execute and deliver to Landlord any
estoppel, certificate subordination agreement, or lease amendment within the
time periods and in the manner required by Paragraph 30 or 31 or 42;

            (G)   An assignment or sublease, or attempted assignment or
sublease, of this Lease or the Premises by Tenant contrary to the provision of
Paragraph 24, unless such assignment or sublease is expressly conditioned upon
Tenant having received Landlord's consent thereto;

            (H)   Failure of Tenant to restore the Security Deposit to the
amount and within the time period provided in Paragraph 6 above;

            (I)   Failure in the performance of any Tenant's covenants,
agreements or obligations hereunder (except those failures specified as events
of Default in other paragraphs of this Paragraph 25, which shall be governed by
such other Paragraphs), which failure continues for (10) days after written
notice thereof from Landlord to Tenant provided that, if Tenant has exercised
reasonable diligence to cure such failure and such failure cannot be cured
within such ten (10) day period despite reasonable diligence, Tenant shall not
be in default under this subparagraph unless Tenant fails thereafter diligently
and continuously to prosecute the cure to completion; and

            (J)   Chronic delinquency by Tenant in the payment of Rent, or any
other periodic payments required to be paid by Tenant under this Lease. "Chronic
delinquency" shall mean failure by Tenant to pay Rent, or any other payments
required to be paid by Tenant under this Lease within three (3) days after
written notice thereof for any three (3) months (consecutive or nonconsecutive)
during any twelve (12) month period. In the event of a Chronic Delinquency, in
addition to Landlord's other remedies for Default provided in this Lease, at
Landlord's option, Landlord shall have the right to require that Rent be paid by
Tenant quarterly, in advance.

                  Tenant agrees that any notice given by Landlord pursuant to
Paragraph 25(b), (i) or (j) above shall satisfy the requirements for notice
under California Code of Civil Procedure Section 1161, and Landlord shall not be
required to give any additional notice in order to be entitled to commence an
unlawful detainer proceeding.

                                       13
<PAGE>

            26.   LANDLORD'S REMEDIES:

            (A)   TERMINATION. In the event of any default by Tenant, then in
addition to any other remedies available to Landlord at law or in equity and
under this Lease, Landlord shall have the immediate option to terminate this
Lease and all rights of Tenant hereunder by giving written notice of such
intention to terminate. In the event that Landlord shall elect to so terminate
this Lease then Landlord may recover from Tenant:

            (1)   the worth at the time of award of any unpaid Rent and any
other sums due and payable which have been earned at the time of such
termination; plus

            (2)   the worth at the time of award of the amount by which the
unpaid Rent and any other sums due and payable which would have been earned
after termination until the time of award exceeds the amount of such rental loss
Tenant proves could have been reasonably avoided; plus

            (3)   the worth at the time of award of the amount by which the
unpaid Rent and any other sums due and payable for the balance of the term of
this Lease after the time of award exceeds that amount of such rental loss that
Tenant proves could be reasonably avoided; plus

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

            (5)   such reasonable attorneys' fees incurred by Landlord as a
result of a Default, and costs in the event suit is filed by Landlord to enforce
such remedy; and plus

            (6)   at Landlord's election, such other amounts in addition to or
in lieu of the foregoing as may be permitted from time to time by applicable
law.

As used in subparagraph (1) and (2) above, the "worth at the time of award" is
computed by allowing interest at an annual rate equal to twelve (12%) percent
per annum or the maximum rate permitted by law, whichever is less. As used in
subparagraph (3) above, the "worth at the time of award" is computed by
discounting such amount at the discount rate of the Federal Reserve Bank of San
Francisco at the time of award, plus one percent (1%). Tenant waives redemption
or relief from forfeiture under California Code of Civil Procedure Sections 1174
and 1179, or under any other present or future law, in the event Tenant is
evicted or Landlord takes possession of the Premises by reason of any Default of
Tenant hereunder.

            (B)   CONTINUATION OF LEASE. In the event of any Default by Tenant,
then in addition to any other remedies available to Landlord at law or in equity
and under this Lease, Landlord shall have the remedy described in California
Civil Code Section 1951.4 (Landlord may continue this Lease in effect after
Tenant's Default and abandonment and recover Rent as it becomes due, provided
Tenant has the right to sublet or assign, Subject only to reasonable
limitation).

            (C)   RE-ENTRY. In the event of any Default by Tenant, Landlord
shall also have the right, with or without terminating this Lease, in compliance
with applicable law, to re-enter the Premises and remove all persons and
property from the premises; such property may be removed and stored in a public
warehouse or elsewhere at the cost of and for the account of Tenant.

            (D)   RELETTING. In the event of the abandonment of the Premises by
Tenant or in the event that Landlord shall elect to re-enter as provided in the
Paragraph 26(b) or shall take possession of the Premises pursuant to legal
proceeding or pursuant to any notice provided by law, then if Landlord does not
elect to terminate this Lease as provided in Paragraph 26(a), Landlord may from
time to time, without terminating this Lease, relet the Premises or any part
thereof for such term or terms and at such rental or rentals and upon such other
terms and conditions as Landlord in its sole discretion may deem advisable with
the right to make alterations and repairs to the Premises. In the event that
Landlord shall elect to so relet, then rentals received by Landlord from such
reletting shall be applied in the following order: (1) to reasonable attorneys'
fees incurred by Landlord as a result of a Default and costs in the event suit
is filed by Landlord to enforce such remedies; (2) to the payment of any
indebtedness other than Rent due hereunder from Tenant to Landlord; (3) to the
payment of any costs of such reletting; (4) to the payment of the costs of any
alterations and repairs to the Premises; (5) to the payment of Rent due the
unpaid hereunder; and (6) the residue, if any, shall be held by Landlord and
applied in payment of future Rent and other sums payable by Tenant hereunder as
the same may become due and payable hereunder. Should that portion of such
rentals received from such reletting during any month, which is applied to the
payment of Rent hereunder, be less than the Rent payable during the month by
Tenant hereunder, then Tenant shall pay such deficiency to Landlord. Such
deficiency shall be calculated and paid monthly. Tenant shall also pay to
Landlord, as soon as ascertained, any cost and expenses incurred by Landlord in
such reletting or in making such alterations and repairs not covered by the
rentals received from such reletting.

                                       14
<PAGE>

            (E)   TERMINATION. No re-entry or taking of possession of the
Premises by Landlord pursuant to this Paragraph 26 shall be construed as an
election to terminate this Lease unless a written notice of such intention is
given to Tenant or unless the termination thereof is decreed by a court of
competent jurisdiction. Notwithstanding any relettng without termination by
Landlord because of any Default by Tenant, Landlord may at any time after such
reletting elect to terminate this Lease for any such Default.

            (F)   CUMULATIVE REMEDIES. The remedies herein provided are not
exclusive and Landlord shall have any and all other remedies provided herein or
by law or in equity.

            (G)   NO SURRENDER. No act or conduct of Landlord, whether
consisting of the acceptance of the keys to the Premises, or otherwise, shall be
deemed to be or constitute an acceptance of the surrender of the Premises by
Tenant prior to the expiration of the Term, and such acceptance by Landlord of
surrender by Tenant shall only flow from and must be evidenced by a written
acknowledgement of acceptance of surrender signed by Landlord. The surrender of
this Lease by Tenant, voluntarily or otherwise, shall not work a merger unless,
Landlord elects in writing that such merger take place, but shall operate as an
assignment to Landlord of any and all existing subleases, or Landlord may, at
its option, elect in writing to treat such surrender as a merger terminating
Tenant's estate under this Lease, and thereupon Landlord may terminate any or
all such subleases by notifying the sublessee of its election so to do within
five (5) days after such surrender.

            27.   ATTORNEY'S FEES: In the event any legal action or proceeding,
including arbitration and declaratory relief, is commenced for the purpose of
enforcing any rights or remedies pursuant to this Lease, the prevailing party
shall be entitled to recover from the non-prevailing party reasonable attorneys'
fees, as well as cost of suit, in said action or proceeding, whether or not such
action is prosecuted to judgment.

            28.   TAXES: Tenant shall be liable for and shall pay, prior to
delinquency, all taxes levied against personal property and trade or business
fixtures of Tenant. If any alteration, addition or improvement installed by
Tenant pursuant to Paragraph 11, or any personal property, trade fixture or
other property of Tenant is assessed and taxed with the Property Tenant shall
pay such taxes to Landlord within ten (10) days after delivery to Tenant of a
statement therefore.

            29.   EFFECT OF CONVEYANCE: The term "Landlord" as used in this
Lease, means only the owner for the time being of the Property containing the
Building, so that, in the event of any sale of the property or the Building,
Landlord shall be and hereby is entirely freed and relieved of all covenants and
obligations of Landlord hereunder accruing from and after the transfer, and it
shall be deemed and construed, without further agreement between the parties and
the purchaser at any such sale, that the purchaser of the Property or the
Building has assumed and agreed to carry out any and all covenants and
obligations of Landlord hereunder.

            30.   TENANT'S ESTOPPEL CERTIFICATE: From time to time, upon written
request of Landlord, Tenant shall execute, acknowledge and deliver to Landlord
or its designee, a written certificate stating (a) the date this Lease was
executed, the Commencement Date of the Term and the date of the term expires;
(b) the date Tenant entered into occupancy of the Premises; (c) the amount of
Rent and the date to which such Rent has been paid; (d) that this Lease is in
full force and effect and has not been assigned, modified, supplemented or
amended in any way (or, if, assigned, modified, supplemented or amended,
specifying the date and terms of any agreement so affecting this Lease) ; (e)
that this Lease represents the entire agreement between the parties with respect
to Tenant's right to use and occupy the Premises (or specifying such other
agreements, if any);(f) that all obligations under this Lease to be performed by
Landlord as of the date of such certificate have been satisfied (or specifying
those as to which Tenant claims that Landlord has yet to perform); (g) that all
required contributions by Landlord to Tenant on account of Tenant's improvements
have been received (or stating exceptions thereto); (h) that on such date there
exist no defenses or offsets that Tenant has against the enforcement of this
Lease by Landlord (or stating exceptions thereto); (i) that no Rent or other sum
payable by Tenant hereunder has been paid more that one (1) month in advance (or
stating exceptions thereto); (j) that security has been deposited with Landlord,
stating the amount thereof; and (k) any other matters evidencing the status of
this Lease that may be required either by a lender making a loan to Landlord to
be secured by a deed of trust covering the Premises or by a purchaser of the
Premises. Any such certificate delivered pursuant to this Paragraph 30 may be
relied upon by a prospective purchaser of Landlord's interest or a mortgagee of
Landlord's interest or assignee of any mortgage upon Landlord's interest in the
Premises. If Tenant shall fail to provide such certificate within ten (10) days
of receipt by Tenant of a written request by Landlord as herein provided, such
failure shall, at Lanlord's election, constitute a Default under this Lease, and
Tenant shall be deemed to have given such certificate as above provided without
modification and shall be deemed to have admitted the accuracy of any
information supplied by Landlord to a prospective purchaser or mortgagee.

                                       15
<PAGE>

            31.   SUBORDINATION: Landlord shall have the right to cause this
Lease to be and remain subject and subordinate to any and all mortgages, deeds
of trust and ground leases, if any ("Encumbrances") that are now or may
hereafter be executed covering the Premises, or any renewals, modifications,
consoliditations, replacements or extensions thereof, for the full amount of all
advances made or to be made thereunder and without regard to the time or
character of such advances, together with interest thereon and subject to all
the terms and provisions thereof; provided only, that in the event or
termination of any such ground lease or upon the foreclosure of any such
mortgage or deed of trust, so long as Tenant is not in default, the holder
thereof ("Holder") shall agree to recognize Tenant's rights under this Lease as
long as Tenant shall pay the rent and observe and perform all the provisions of
this Lease to be observed and performed by Tenant. Within ten (10) days after
Landlords written request, Tenant shall execute, acknowledge and deliver any and
all reasonable documents required by Landlord or the Holder to effectuate such
subordination. If Tenant fails to do so, such failure shall constitute a Default
by Tenant under this Lease. Notwithstanding anything to the contrary set forth
in this Paragraph 31, Tenant hereby attorns and agrees to attorn to any person
or entity purchasing or otherwise acquiring the Premises at any sale at other
proceeding or pursuant to the exercise of any other rights, powers or remedies
under such Encumbrance.

            32.   ENVIRONMENTAL CONVENANTS:

            (A)   As used herein, the term "Hazardous Material" shall mean any
substance or material which has been determined by any state, federal or local
governmental authority to be capable of posing a risk of injury to health,
safety or property, including all of those materials and substances designated
as hazardous or toxic by the city in which the Premises are located, the U.S
Environmental Protection Agency, the Consumer Product Safety Commission, The
Food and Drug Administration, the California Water Resources Control Board, the
Regional Water Quality Control Board, San Francisco Bay Region, the California
Air Resources Board, CAL/OSHA Standards Board, Division of Occupational Safety
and Health, the California Department of Food and Agriculture, the California
Department of Health Services, and any federal agencies that have overlapping
jurisdiction with such California agencies, or any other governmental agency now
or hereafter authorized to regulate materials and substances in the environment.
Without limiting the generality of the foregoing, the term "Hazardous Material"
shall include all of those materials and substances defined as "hazardous
materials" or "hazardous waste" in Sections 66680 through 66685 of Title 22 of
the California Administrative Code. Division 4, Chapter 30, as the same shall be
amended from time to time, petroleum, petroleum-related substances and the
by-products, fractions, constituents and sub-constituents of petroleum or
petroleum-related substances, asbestos, and any other materials requiring
remediation now or in the future under federal, state or local statutes,
ordinances, regulations or policies.

                                 See Addendum I.

                                       16
<PAGE>

            (C)   Tenant shall immediately notify Landlord of any inquiry, test,
investigation or enforcement proceeding by or against Tenant, Landlord or the
Premises concerning a Hazardous Material. Tenant acknowledges that Landlord, as
the owner of the Premises, shall have the right, at its election, in its own
name or as Tenant's agent to negotiate, defend, approve and appeal, at Tenant's
expense, any action taken or order issued with regard to a Hazardous Material by
an applicable governmental authority.

            (D)   If Tenant's storage, use or disposal of any Hazardous Material
in, on or adjacent to the Premises results in any contamination of the Premises,
the soil or surface or groundwater (1) requiring remediation under federal,
state or local statutes, ordinances, regulations, or policies, or (2) at levels
which are unacceptable to Landlord's reasonable judgment, Tenant agrees to clean
up said contamination. Tenant further agrees to indemnify, defend and hold
Landlord harmless from and against any claims, liabilities, suits, causes of
action, costs, expenses or fees, including attorneys' fees and costs, arising
out of or in connection with any remediation, cleanup work, inquiry or
enforcement proceeding in connection therewith, and any Hazardous Materials
currently or hereafter used stored or disposed of by Tenant or agents,
employees, contractors or invitees in, on or adjacent to the Premises.

            (E)   Notwithstanding any other right of entry granted to Landlord
under this Lease, Landlord shall have the right to enter the Premises or to have
consultants enter the Premises throughout the term of this Lease for the purpose
of (1) determining whether the Premises are in conformity with federal, state
and local statutes, regulations, ordinances, and policies including those
pertaining to the environmental condition of the Premises, (2) conducting an
environmental audit or investigation of the Premises for purposes of sale,
transfer, conveyance or financing, (3) determining whether Tenant has complied
with this Paragraph 32, and (4) determining the corrective measures, if any,
required of Tenant to ensure the safe use, storage and disposal of Hazardous
Materials, or to remove Hazardous Materials (except to the extent used stored or
disposed of by Tenant or its agents, employees, contractors or invitees in
compliance with applicable law). Tenant agrees to provide access and reasonable
assistance for such inspections. Such inspections may include, but are not
limited to, entering the Premises or adjacent property with drill rigs or other
machinery for the purpose of obtaining laboratory samples. Landlord shall not be
limited in the number of such inspections during the term of this Lease. To the
extent such inspections disclose the presence of Hazardous Materials used,
stored or disposed of by Tenant or its agents, employees, contractors, or
invitees, Tenant shall reimburse Landlord for the cost of such inspections
within ten (10) days of receipt of a written statement thereof. If such
consultants determine that the Premises are contaminated with Hazardous
Materials used, stored or disposed of by Tenant or its agents, employee's
contractors or invitees, Tenant shall, in a timely manner, at its expense,
remove such Hazardous Materials or otherwise comply with the recommendations of
such consultants to the reasonable satisfaction of Landlord and any applicable
governmental agencies. The right granted to Landlord herein to inspect the
Premises shall not create a duty on Landlord's part to inspect the Premises, or
liability of Landlord for Tenant's use, storage or disposal of Hazardous
Materials, it being understood that Tenant shall be solely responsible for all
liability in connection therewith.

            (F)   Tenant shall surrender the Premises to Landlord upon the
expiration one earlier termination of this Lease free of debris, waste and
Hazardous Materials used, stored or disposed of by Tenant or its agents,
employees, contractors or invitees, and in a condition which complies with all
governmental statutes, ordinances, regulations, and policies, recommendations of
consultants hired by Landlord, and such other reasonable requirements as maybe
imposed by Landlord.

            (G)   Tenants obligations under this Paragraph 32 shall survive
termination of this Lease.

            (H)   Landlord hereby discloses to Tenant that the Premises and the
property are or may be in an area in which contamination of soils or groundwater
by Hazardous Materials may exist. If Tenant desires more definite information
regarding the existence or possible existence of contamination by Hazardous
Materials of soils or groundwater of or beneath the Premises, the Property, or
other real property in the general area of the property, then Tenant shall
investigate such matters.

                                       17
<PAGE>

            33.   NOTICES: All notices and demands which may or are to be
required or permitted to be given to either party by the other hereunder shall
be in writing and shall be sent by United States mail, postage prepaid,
certified, or by personal delivery or overnight courier, addressed to the
addressee at the address for such addressee as specified in the Basic Lease
Information, or to such other place as such party may from time to time
designate in a notice to the other party given as provided herein, or by telex
or telecopy at the number therefor designated by the addressee in a written
notice given as provided herein. Notice shall be deemed given upon the earlier
of actual receipt or the third day following deposit in the United States mail
in the manner described above.

            34.   WAIVER: The waiver of any breach of any term, covenant or
condition of this Lease shall not be deemed to be a waiver of such term,
covenant or condition or any subsequent breach of the same or any other term,
covenant or condition herein contained. The subsequent acceptance of Rent by
Landlord shall not be deemed to be a waiver of any preceding breach by Tenant,
other than the failure of Tenant to pay the particular rental so accepted,
regardless of Landlord's knowledge of such preceding breach at time of
acceptance of such Rent. No delay or omission in the exercise of any right or
remedy of Landlord on any Default by Tenant shall impair such a right or remedy
or be construed as a waiver. Any waiver by Landlord of any Default must be in
writing and shall not be a waiver of any other Default concerning the same or
any other provisions of this Lease.

            35.   HOLDING OVER: Any holding over after the expiration of the
Term, without the express written consent of Landlord, shall constitute a
Default and, without limiting Landlord's remedies provided in this Lease, such
holding over shall be construed to be a tenancy at sufferance, at a rental rate
of one hundred fifty percent (150%) of the Base Rent last due in this Lease,
plus Additional Rent, and shall otherwise be on the terms and conditions herein
specified, so far as applicable.

            36.   SUCCESSORS AND ASSIGNS: The terms, covenants and conditions of
this Lease shall, subject to the provisions as to assignment, apply to and bind
the heirs, successors, executors, administrators and assigns of all of the
parties hereto. If Tenant shall consist of more than one entity or person, the
obligations of Tenant under this Lease shall be joint and several.

            37.   TIME: Time is of the essence of this Lease and each and every
term, condition and provision herein.

            38.   BROKERS: Landlord and Tenant each represents and warrants to
the other that neither it nor its officers or agents nor anyone acting on its
behalf has dealt with any real estate broker except the Broker(s) specified in
the Basic Lease Information in the negotiating or making of this Lease, and each
party agrees to indemnify and hold harmless the other from any claim or claims,
and costs and expenses, including attorneys' fees, incurred by the indemnified
party in conjunction with any such claim or claims of any other broker or
brokers to a commission in connection with this Lease as a result of the actions
of the indemnifying party.

            39.   LIMITATION OF LIABILITY: Tenant agrees that, in the event of
any default or breach by Landlord with respect to any of the terms of the lease
to be observed and performed by Landlord (a) Tenant shall look solely to the
estate and property of Landlord or any a successor in interest in the Property
and the Building, for the satisfaction of Tenant's remedies for the collection
of a judgment (or judicial process) requiring the payment of money by Landlord;
(b) no other property or assets of Landlord, its partners, shareholder,
officers, directors or any successor in interest shall be subject to levy,
execution or other enforcement procedure for the satisfaction of Tenant's
remedies; (c) no personal liability shall at any time be asserted or enforceable
against Landlord's partners or successors in interest (except to the extent
permitted in (a) above), or against Landlord's shareholders, officers or
directors, or their respective partners, shareholders, officers, directors or
successors in interest; and (d) no judgment will be taken against any partner,
shareholder, officer or director of Landlord. The provisions of this section
shall apply only to the Landlord and the parties herein described, and shall not
be for the benefit of any insurer nor any other third party.

            40.   FINANCIAL STAEMENTS: Within thirty (30) days after Landlord's
request, Tenant shall deliver to Landlord the then current financial statements
of Tenant (including interim periods following the end of the last fiscal year
for which annual statements are available), prepared or complied by a certified
public accountant, including a balance sheet and profit and loss statement for
the most recent prior year, all prepared in accordance with generally accepted
accounting principles consistently applied.

            41.   RULES AND REGULATION: Tenant agrees to comply with such
reasonable rules and regulations as Landlord may adopt from time to time for the
orderly and proper operating of the Building and parking and other common areas.
Such rules may include but shall not be limited to the following: (a)
restriction of employee parking to a limited, designated area or areas; and (b)
regulation of the removal, storage and disposal of Tenant's refuse and other
rubbish at the sole cost and expense of Tenant. The rules and regulations shall
be binding upon Tenant upon delivery of a copy of them to Tenant. Landlord shall
not be responsible to Tenant for the failure of any other person to observe and
abide by any of said rules and regulations.

                                       18
<PAGE>

            42.   MORTGAGEE PROTECTION:

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

            (B)   RIGHTS TO CURE. Tenant agrees to give to any trust deed or
mortgage holder ("Holder"), by registered mail, at the same time as it is given
to Landlord, a copy of any notice of default given to Landlord, provided that
prior to such notice Tenant has been notified, in writing, (by way of notice of
assignment of rents and leases, or otherwise) of the address of such Holder.
Tenant further agrees that if Landlord shall have failed to cure such default
within the time provided for in this Lease, then the Holder shall have an
additional twenty (20) days after expiration of such period, or after receipt of
such notice from Tenant (if such notice to the Holder is required by this
Paragraph 42(b)), whichever shall last occur, within which to cure such default
or if such default cannot be cured within that time, then such additional time
as may be necessary if within such (20) days, any Holder has commenced and is
diligently pursuing the remedies necessary to cure such default (including but
not limited to commencement of foreclosure proceedings, if necessary to effect
such cure), in which event this Lease shall not be terminated.

            43.   ENTIRE AGREEMENT:This Lease, including the Exhibits and any
Addenda attached hereto, which are hereby incorporated herein by this reference,
contains the entire agreement of the parties hereto, and no representations,
inducements, promises or agreements, oral or otherwise, between the parties, not
embodied herein or therein, shall be of any force and effect.

            44.   INTEREST: Any installment of Rent and any other sum due from
Tenant under this Lease which is not received by Landlord within ten (10) days
from when the same is due shall bear interest from such tenth (10th) day until
paid at an annual rate equal to the maximum rate of interest permitted by law.
Payment of such interest shall not excuse or cure any Default by Tenant. In
addition, Tenant shall pay all cost and attorneys' fees incurred by Landlord in
collection of such amounts.

            45.   CONSTRUCTION: This Lease shall be construed and interpreted in
accordance with the laws of the State of California. The parties acknowledge and
agree that no rule of construction to the effect that any ambiguities are to be
resolved against the drafting party shall be employed in the interpretation of
this Lease, including the Exhibits and any Addenda attached hereto. All captions
in this Lease are for reference only and shall not be used in the interpretation
of this Lease. Whenever required by the context of this Lease, the singular
shall include the plural, the masculine shall include the feminine, and vice
versa. If any provision of this Lease shall be determined to be illegal or
unenforceable, such determination shall not affect any other provision of this
Lease and all such other provisions shall remain in full force and effect.

            46.   REPRESENTATIONS AND WARRANTIES OF TENANT: Tenant hereby makes
the following representations and warranties, each of which is material and
being relied upon by Landlord, is true in all respects as of the date of this
Lease, and shall survive the expiration or termination of the Lease.

            (A)   If Tenant is an entity, Tenant is duly organized, validly
existing and in good standing under the laws of the state of its organization
and the persons executing this Lease on behalf of Tenant have the full right and
authority to execute this Lease on behalf of Tenant and to bind Tenant without
the consent or approval of any other person or entity. Tenant has full power,
capacity, authority and legal right to execute and deliver this Lease and to
perform all of its obligations hereunder. This Lease is a legal, valid and
binding obligation of Tenant, enforceable in accordance with its terms.

            (B)   Tenant has not (1) made a general assignment for the benefit
of creditors, (2) filed any voluntary petition in bankruptcy or suffered the
filling of an involuntary petition by any creditors, (3) suffered the
appointment of a receiver to take possession of all or substantially all of its
assets, (4) suffered the attachment or other judicial seizure of all or
substantially all of its assets, (5) admitted in writing its inability to pay
its debts as they come due, or (6) made an offer of settlement, extension or
composition to its creditors generally.

                                       19
<PAGE>

            Landlord and Tenant have executed and delivered this Lease as of the
Lease Date specified in the Basic Lease Information.

LANDLORD:                                        TENANT:

AETNA LIFE INSURANCE COMPANY,          Adaptive Circuits, A Division
A Connection corporation               of Viko Technologies

By:    /s/ William E. Whitlow          By:      /s/ Pin Patel
   -------------------------------        --------------------------------

Printed Name: William E. Whitlow       Printed Name: Pin Patel  (Hand written)

Title:  Second Vice President          Title:   V.P. Finance    (Hand written)

                                       By:________________________________

                                       Printed Name:______________________

                                       Title:_____________________________

                                       20
<PAGE>

                             DIAGRAM OF THE PREMISES

                           [DIAGRAM OF THE PREMISES]

       PREMISES:
       1565 - A MABURY ROAD
       SAN JOSE, CA 95133

                                    EXHIBIT A

<PAGE>

                               TENANT IMPROVEMENTS

      This exhibit, entitled "Tenant Improvements", is and shall constitute
EXHIBIT B to the Lease Agreement, dated as of the Lease Date, by and between
Landlord and Tenant for the Premises. The terms and conditions of this EXHIBIT B
are hereby incorporated into and are made a part of the Lease. Capitalized terms
used, but not otherwise defined, in this EXHIBIT B have the meanings ascribed to
such terms in the Lease.

      1.    TENANT IMPROVEMENTS. Subject to the conditions set forth below,
            Landlord agrees to construct certain Tenant Improvements in the
            Premises pursuant to the terms of this EXHIBIT B.

      2.    DEFINITION. "Tenant Improvements" as used in the Lease and this
            EXHIBIT B shall include only those improvements within the interior
            portions of the Premises which are depicted on the Final Plans and
            Specifications (hereafter defined in Paragraph 3) or described
            herein below. "Tenant Improvements" shall specifically not include
            any alterations, additions, or improvements installed or constructed
            by Tenant, and any of Tenant's personal property or trade fixtures.

      The Tenant Improvements may include:

            (a)   Partitioning, doors, floor coverings, finishes, ceilings, wall
coverings and painting, millwork and similar items.

            (b)   Electrical wiring, lighting fixtures, outlets and switches,
and other electrical work.

            (c)   Duct work, terminal boxes, defusers and accessories required
for the completion of the heating, ventilation and air conditioning systems
serving the Premises, including the cost of meter and key control for after-hour
air conditioning.

            (d)   Any additional Tenant requirements including, but not limited
to odor control, special heating, ventilation and air conditioning, noise or
vibration control or other special systems.

            (e)   All fire and life safety control systems such as fire walls,
sprinklers, halon, fire alarms, including piping, wiring and accessories
installed within the building and serving the Premises.

            (f)   All plumbing, fixtures, pipes, and accessories to be installed
within the Building and serving the Premises.

                                    EXHIBIT B

                                   Page 1 of 4

<PAGE>

      5.    TENANT IMPROVEMENTS ALLOWANCE. Landlord shall provide an allowance
for the planning and construction of the Tenant Improvements in the amount
specified in the Basic Lease Information ("Tenant Improvements Allowance"). The
Tenant Improvements Allowance shall be the maximum contribution by Landlord for
the Tenant Improvements Cost, as defined in Paragraph 6. Should the actual cost
of planning and constructing those Tenant Improvements depicted on the Final
Plans and specifications be less than the Tenant Improvements Allowance, the
Tenant Improvements Allowance shall be reduced to an amount equal to said actual
cost.

      6.    TENANT IMPROVEMENTS COST. The Tenant improvements Cost ("Tenant
Improvements Cost") shall include all costs and expenses associated with the
design, preparation, approval and construction of the Tenant Improvements,
including, but not limited, to the following:

      (a)   All costs of preliminary and final architectural and engineering
plans and specifications for the Tenant Improvements, and engineering costs
associated with completion of the State of California energy utilization
calculations under Title 24 legislation;

      (b)   All costs of obtaining building permits and other necessary
authorizations from local governmental authorities;

      (c)   All costs of interior design and finish schedule plans and
specifications including as-built drawings;

      (d)   All direct and indirect costs of procuring, constructing and
installing the Tenant Improvements in the Premises, including, but not limited
to, the construction fee for overhead and profit and the costs of all on-site
supervisory and administrative staff, office, equipment and temporary services
rendered by Landlord's contractor in connection with construction of the Tenant
Improvements;

      (e)   All fees payable to the Architect and Landlord's engineering firm if
they are required by Tenant to redesign any portion of the Tenant Improvements
following Tenant's approval of the Final Plans and Specifications; and

      (f)   Utility connection fees.

In no event shall the Tenant Improvements Cost include any costs of procuring,
constructing or installing in the premises any of Tenant's personal property or
trade fixtures.

                                    EXHIBIT B

                                   Page 2 of 4

<PAGE>

            7.    EXCESS TENANT IMPROVEMENTS COST AND RETENTION.

            8.    CHANGE REQUEST. WHEN THE FINAL PLANS AND SPECIFICATIONS HAVE
BEEN APPROVED BY LANDLORD, THERE SHALL BE NO CHANGES WITHOUT LANDLORD'S PRIOR
WRITTEN CONSENT, EXCEPT FOR (A) NECESSARY ON-SITE INSTALLATION VARIATIONS OR
MINOR CHANGES NECESSARY TO COMPLY WITH BUILDING CODES AND OTHER GOVERNMENTAL
REGULATIONS;

            9.    TERMINATION. If the lease is terminated prior to completion of
the Tenant Improvements, for any reason due to the Default of Tenant under the
Lease, in addition to any other damages available to Landlord, Tenant shall pay
to Landlord, within five (5) days of receipt of a statement therefor, all costs
incurred by Landlord through the date of termination in connection with the
Tenant Improvements.

                                    EXHIBIT B

                                   Page 3 of 4

<PAGE>

            11.   DISCLAIMER. Landlord shall have no liability to Tenant in the
event construction of the Tenant Improvements is delayed or prevented due to any
cause beyond Landlord's reasonable control. If Tenant is entitled or permitted
to enter the Premises prior to completion of the Tenant Improvements, Landlord
shall not be liable to Tenant or its employees or agents for any loss or damage
to property, or injury to person, arising from or related to construction of the
Tenant Improvements. Tenant shall take all reasonable precautions to protect
against such loss, damage, or injury during construction of the Tenant
Improvements,

                                    EXHIBIT B

                                   Page 4 of 4

<PAGE>

                         FINAL PLANS AND SPECIFICATIONS

      Reference is hereby made to that certain Industrial Lease Agreement dated
_____________, 19_____ by and between Aetna Life Insurance Company, a
Connecticut corporation, as landlord ("Landlord"),
and_____________________________________________________ , a______________ , as
tenant ("Tenant"), ("Lease Agreement").

      The Final Plans and Specifications (as defined in EXHIBIT B to the Lease
Agreement) consist of the following described drawings, specifications and other
documents:

Title of Drawing, Specification
or Other Document                                  Date

      The Final Plans and Specifications have been initialed by both Landlord
and Tenant and are on file with Landlord.

INITIALS:

Landlord__________________________             Tenant__________________

                                   EXHIBIT B-1

<PAGE>

                          COMMENCEMENT DATE MEMORANDUM

LANDLORD:       AETNA LIFE INSURANCE COMPANY
                Adaptive Circuits, A Division of Viko Technologies, Inc.

TENANT:         ___________________________________________________________

LEASE DATE:     September 1, 1991

PREMISES:       1585 - A Mabury Road,
                San Jose, CA  95133

      Tenant hereby accepts the Premises as being in the condition required

under the Lease, XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXX

      The Commencement Date of the above referenced Lease is hereby established
as September 1, 1991.

                                TENANT:

                                Adaptive Circuits, A Division of Viko
                                Technologies, Inc.
                                _________________________________
                                _________________________________

                                By:  /s/ Pin Patel
                                   ---------------------------------------------

                                Printed Name:      Pin Patel       (handwritten)

                                Title:             V.P. Finance    (handwritten)

                                Approved and agreed:

                                AETNA LIFE INSURANCE COMPANY,
                                A Connecticut corporation

                                By:  /s/ William E. Whitlow
                                   ---------------------------------------------

                                Printed Name:     William E. Whitlow

                                Title:   Second Vice President

                                    EXHIBIT C

<PAGE>

                                   ADDENDUM I
                                  MISCELLANEOUS

1.    SECURITY DEPOSIT - The security deposit shall be $20,000.00. The security
      deposit currently held is in the form of a Certificate of Deposit. This CD
      shall be increased to an amount that will allow Lessor to cash in said
      certificate and net the full $20,000.00 stipulated, without incurring any
      penalties for early withdrawal in the event of Tenant's default prior to
      the maturity of the certificate.

2.    ALTERNATIONS AND ADDITIONS - Lessee shall have the right to perform
      non-structural/interior alterations and additions to the premises without
      Lessor's approval, at a cost of up to $5,000.00. No exterior or structural
      work may be performed without Lessor's prior written consent. No work in
      excess of cost $5,000.00 may be performed without Lessor's prior written
      consent.

3.    ENVIRONMENTAL COVENANTS - Paragraph 32 (b) of the lease shall be deleted
      in its entirety and replaced as follows:

      (b) Tenant represents, warrants and covenants (i) that it will use and
      store in, on or about the premises, only those Hazardous Materials that
      are necessary for Tenant to conduct its business activities on the
      premises, (ii) that, with respect to any such Hazardous Materials, Tenant
      shall comply with all applicable federal, state and local laws, rules,
      regulations, policies and authorities relating to the storage, use,
      disposal or cleanup of Hazardous Materials, including, but not limited to,
      the obtaining of proper permits, and (iii) that it will not dispose of any
      Hazardous Materials in, on or about the Premises under any circumstances

4.    TENANT IMPROVEMENTS - Lessor will provide a $2.00 per square foot Tenant
      Improvement Allowance ($37,200.00). Tenant shall submit plans and
      specifications to lessor for written approval prior to commencement of the
      work and procurement of the permits. All improvements covered under the
      Tenant Improvement Allowance must be generic, reusable, and not specific
      to Tenant's use. All work must be performed by a licensed and bonded
      contractor. Tenant must submit its choice of contractor and architect to
      Lessor for written approval. Any improvements made in excess of the Tenant
      Improvements Allowance will be at the sole cost of Tenant. Excess
      improvements will still require Lessor's prior approval, and a
      Lessor-approved licensed and bonded contractor must perform the work.
      Lessor reserves the right to have any excess improvement removed, at
      Tenant's expense, upon termination of this lease for any reason, restoring
      the premises to its original condition prior to the excess improvements.

      Lessor and Lessee acknowledge and agree that Lessee shall pay its
      contractor directly. Upon proof of final payment, Lessor's inspection and
      approval of the work within 10 working days of notice of completion from
      lessee, and Lessee's delivery of a full set final building plans to
      Lessor, Lessor shall pay the applicable Tenant Improvement Allowance to
      Lessee. Lessor shall in no way be obligated to perform Lessee's
      obligations under Lessee's contract with its contractor. Lessee hereby
      agrees to indemnify and hold Lessor harmless and defend Lessor with
      counsel reasonable satisfactory to lessor from and against any claims,
      damages, costs, expenses, causes of action, or liabilities of any nature
      whatsoever, which may be asserted against or incurred by Lessor by virtue
      of Lessee's contract with its contractor.

                                   Page 1 of 1

<PAGE>

                                   ADDENDUM I
                             MISCELLANEOUS (CONT'D)

5.    ROOF - Lessor reserves the right to have any roof penetrations (past and
      present) made by the Lessee, restored to its original condition, at
      Lessee's sole cost, upon termination of this Lease for any reason. Prior
      to Lessor's execution of this Lease, Lessee shall deliver to Lessor a map
      of the existing roof penetrations with a legend describing said
      penetrations, and a copy of the required permits for each. Any future
      penetrations will require Lessor's prior written consent Plans and permits
      for future work must be submitted to facilitate Lessor's consent.

                                   Page 2 of 2

<PAGE>

                                   ADDENDUM II
                             RIGHT OF FIRST REFUSAL

1.    RIGHT OF FIRST REFUSAL: During the Initial Term of this Lease, if Lessee
      is not in default in the performance of any of it's obligations under this
      lease, Lessee shall have a one-time Right of First Refusal ("Right of
      First Refusal") to lease the contiguous 28,000 sq. ft. space in building
      #1565 currently leased to USM. This Right of First refusal shall become
      effecitve upn the failure of USM to exercise its existing option to renew.
      Should USM fail to renew, Lessee shall have three business days, upon
      written Notice ("Notice") from Lessor, to exercise this Right of First
      Refusal.

      Additionally, during the Initial Term of this Lease, Lessee shall have a
      one-time Right of First Refusal ("Right of First Refusal") to lease the
      contiguous 23,280 sq. ft. space in building #1605 currently leased to
      Systec, Inc. This Right of First Refusal shall become effective upon the
      failure of Systec to exercise its existing option to renew. Should Systec
      fail to renew, Lessee shall have three business days, upon written Notice
      ("Notice") from Lessor, to exercise this Right of First Refusal.

      If Lessee fails to notify Lessor as and when required for either or both
      of the aforementioned rights, it shall be conclusively presumed that
      Lessee has elected not to lease the Right of First Refusal premises and
      the respective Right of First refusal shall forever terminate.

2.    TERMS AND CONDITIONS: Except for the Base Rent payable for the Right of
      First Refusal Premises, the commencement date of Lessee's lease of the
      Right of First Refusal Premises, and the matters set forth in Paragraph 5
      of this Addendum II, the Right of the First Refusal Premises shall be
      leased by Lessee on the same terms and conditions contained in this Lease.
      Lessee shall be obligated to perform all obligations required of it under
      the lease as to the Right of First refusal premises, including without
      limitation, the obligation to pay Base Rent and Lessee's Share of
      Operating Expenses, as of the commencement date of Lessee's lease of the
      Right of First refusal premises set forth in the Notice. The term of the
      Right of First Refusal Premises shall be coterminous with the remaining
      term of the Initial Term of this Lease.

3.    DEFAULT: The Right of First Refusal shall terminate and be of no force and
      effect if, at the time of the giving of the Notice or on the commencement
      date of Lessee's lease of the Right of First refusal Premises or at any
      time in between the giving of the Notice and said commencement date,
      Lessee is in default pursuant to Paragraph 20 of any of the covenants,
      conditions or agreements to be performed by it under this Lease.

4.    OPTION PERSONAL: The Right of First Refusal is personal to Lessee and may
      not be assigned, voluntarily or involuntarily; separate from or as a part
      of the Lease.

5.    AMENDMENT: Should Lessee exercise the Right of First Refusal, Lessor and
      Lessee shall execute and amendment to this Lease which shall amend the
      definition of the Premises to include the Right of First Refusal Premises,
      adjust the monthly Base Rent to reflect the monthly Base Rent for the
      Right of First Refusal Premises, adjust Lessee's Share based on the
      addition of the Right of First Refusal Premises, and shall provide for
      other matters as Lessor may reasonably require.

                                   Page 1 of 1

<PAGE>

                                  ADDENDUM III
                                 OPTION TO RENEW

      RENEWAL - If Lessee is not in default in the performance of any of its
      obligations under this Lease, Lessee shall have the option ("Option") and
      the right to extend the term on all of the provisions contained in this
      Lease, excluding rental rate and amount of security deposit, for an
      additional five (5) following the expiration of the initial term, by
      giving written notice of exercise of said Option ("Option Notice"), to
      Lessor at least ninety (90) days not more than one hundred eighty (180)
      days before the expiration of the term. If Lessor does not receive from
      Lessee written notice of Lessee's exercise of the option within the time
      stipulated, all rights under this option shall automatically terminate.
      Time is of the essence herein.

      The initial monthly rent for the extended term (the "Initial Extended Term
      Rent") shall be at ninety five percent (95%) of the then prevailing market
      rent for the highest and best use for similar space (the "Fair Rental
      Value") agreed upon solely by and between Lessor and Lessee and their
      agents appointed for this purpose. Neither Lessor nor Lessee shall have
      the right to have a court or any other third party or entity established
      the Fair Rental Value. If Lessor and Lessee are unable to agree on the
      Initial Extended Term Rent in writing within thirty (30) days of delivery
      of the Option Notice, Lessor and Lessee being obligated only to act in
      good faith, this option shall automatically terminate and the Lease shall
      terminate at the end of its Initial term.

      In no event shall the rent for any period of the Extended Term be of less
      than the highest rent charged during the previous term of the Lease. Upon
      determination of the Initial Extended Term Rent, pursuant to the terms
      outlined above, the parties shall immediately execute an amendment to the
      Lease stating the Extended Term and the Initial and the Initial Extended
      Term Rent.

      Notwithstanding anything to the contrary contained in this lease this
      option is personal to Lessee and may not be assigned, voluntarily or
      involuntarily, separate from or as a part of the Lease. Any assignment
      shall not in any way affect or limit the liability of Lessee pursuant to
      the Lease. Notwithstanding the timely giving of the Option Notice, if
      Lessee is in default of any provision of the Lease on the date of the
      commencement of the Extended Term, at Lessor's option all rights of Lessee
      under these options shall terminate and be of no force and effect.

                                   Page 1of 1

<PAGE>

                               FIRST AMENDMENT TO

                                INDUSTRIAL LEASE

      This First Amendment To Industrial Lease Agreement ("this Amendment") is
made effective as of January 22, 1993 by and between AETNA LIFE INSURANCE
COMPANY, a Connecticut corporation ("Landlord") and VIKO TECHNOLOGY, INC., a
California corporation dba Adaptive Circuits ("Tenant") with reference to the
following:

                                    RECITALS

      A.    Landlord and Tenant have entered into that certain Industrial Lease
Agreement dated September 1, 1991 ("Lease") wherein Landlord leased to Tenant
and Tenant leased from Landlord the premises containing approximately 18,600
square feet of space located at 1565-A Mabury Road, San Jose, California
("Premises") for a term of sixty (60) months ending August 31, 1996.

      B.    Landlord and Tenant wish to amend the Lease to add additional space
to the Premises, to extend the Term, to provide for an increase in the Rent and
to add other provisions relating to the expansion of the Premises.

                                    AGREEMENT

      NOW, THEREFORE, for good and valuable consideration, receipt of which is
hereby acknowledged, Landlord and Tenant agree as follows.

      1.    RECITALS. Landlord and Tenant hereby agree that the hereinabove
recitals are true and correct.

      2.    DEFINITIONS. Unless otherwise defined in this Amendment, all
definitions used in this Amendment shall have the same meaning and definition as
given them in the Lease.

      3.    EXPANSION OF PREMISES. Effective upon substantial completion of the
Additional Tenant Improvements (defined below in Paragraph 8), ("Effective
Date"), the 14,800 square feet of space located at 1565 Mabury Road, Unit B, San
Jose California (the "Additional Space") as shown on Exhibit A, which is
attached to this Amendment and incorporated herein by this reference, shall be
added to the Premises and after the Effective Date all references to the
Premises shall include the Additional space. After the Effective Date and with
the addition of the Additional Space to the Premises, the Premises shall consist
of approximately 33,400 square feet of space as shown on Exhibit B, which is
attached to this Amendment and incorporated herein by this reference. When the
Effective Date has been determined Landlord and Tenant shall enter into a
Memorandum of Effective Date setting forth the Effective Date, which Memorandum
shall be in the form attached hereto as Exhibit C and incorporated herein by
this reference.

      4.    EXTENSION OF TERM. The Term of the Lease shall be extended to end on
December 31, 1999. The period commencing on the Effective Date and ending on
December 31, 1999 is hereinafter sometimes referred to as the "Extended Term".

                                   Page 1 of 8

<PAGE>

      5.    BASE RENT. Commencing on the Effective Date the Basic Lease
Information on page 1 of the Lease and Paragraph 4 (a) of the Lease shall be
amended to change the monthly Base Rent as follows:

<TABLE>
<CAPTION>
       Months                 Monthly Base Rent
       ------                 -----------------
<S>                          <C>
Effective Date through          $  8,555.00
month 4 of the Extended
Term

Months 5 through 24
of the Extended Term            $ 12,685.00

Months 25 through 34
of the Extended Term            $ 14,362.00

Months 35 through 46
of the Extended Term            $ 16,032.00

Months 47 through 70
of the Extended Term            $ 16,700.00

Months 71 through the end
of the Extended Term            $ 17,034.00
</TABLE>

      6.    ADDITIONAL RENT. Commencing on the date which is two (2) months
after the Effective Date Paragraph 4(b) of the Lease shall be amended to change
Tenant's proportionate share to 47.7%, if calculated on the total area of the
Building, and 15.3%, if calculated on the total area of the Mabury Industrial
Park.

      7.    SECURITY DEPOSIT. The Security Deposit required by Paragraph 6 of
the Lease and Paragraph 1 of Addendum I of the Lease shall be increased from
$20,000 to $25,000. Said Security Deposit may continue to be in the form of a
certificate of deposit approved by Landlord issued by First Interstate Bank or
another bank or financial institution acceptable to Landlord and shall be
payable to Landlord upon the default of Tenant without any consent or signature
of Tenant required. Tenant shall immediately provide Landlord with evidence that
the required certificate of deposit is issued. If at any time during the Term
there is not a valid certificate of deposit in effect, Landlord may, at its
election, make demand upon Tenant to deposit with Landlord cash in the amount of
the Security Deposit and Tenant shall within three (3) days from such demand
deposit said funds.

      8.    ADDITIONAL TENANT IMPROVEMENTS. Subject to the conditions set forth
below, Landlord agrees to construct certain improvements in the premises
("Additional Tenant Improvements") and Tenant agrees that Landlord shall have
access to the Premises to construct said Additional Tenant Improvements.

                                   Page 2 of 8

<PAGE>

            A.    DEFINITION. "Tenant Improvements" as used in this Amendment
shall include only those generic, standard improvements within the interior
portions of the Premises approved by Landlord and which are depicted on the
Plans and Specifications (hereafter defined in 8.B. below) or described
hereinbelow. "Additional Tenant Improvements" shall specifically not include any
alterations, additions, or improvements installed or constructed by Tenant, and
any of Tenant's personal property or trade fixtures, nor any non-standard
improvements specific to Tenant's use.

            The Additional Tenant Improvements may include:

                  (A)   Partitioning, doors, floor coverings, finishes,
ceilings, wall coverings and painting, millwork and similar items.

                  (B)   Electrical wiring, lighting fixtures, outlets and
switches, and other electrical work.

                  (C)   Duct work, terminal boxes, defusers and accessories
required for the completion of the heating, ventilation and air conditioning
systems serving the Premises, including the cost of meter and key control for
after-hour air conditioning.

                  (D)   Any additional Tenant requirements including, but not
limited to odor control, special heating, ventilation and air conditioning,
noise or vibration control or other special systems.

                  (E)   All fire and life safety control systems such as fire
walls, sprinklers, halon, fire alarms, including piping, wiring and accessories
installed within the Building and serving the Premises.

                  (F)   All plumbing, fixtures, pipes, and accessories to be
installed within the Building and serving the Premises.

            B.    PLANS AND SPECIFICATIONS. Landlord may retain an architect or
other design professional ("Architect") for the preparation of final working
architectural and engineering plans and specifications for the Additional Tenant
Improvements ("Plans and Specifications"). Tenant shall cooperate diligently
with the Architect and shall furnish within ten (10) days after request
therefor, all information required by the Architect for completion of the Plans
and Specifications, and shall provide (in writing, if requested by Landlord),
not later than three (3) business days after request therefor, any approval or
disapproval of the Plans and Specifications which Tenant is permitted to give
under this Paragraph 8. Landlord and Tenant shall indicate their approval of the
Plans and Specifications by initialing them and attaching them to this Amendment
as Exhibit D. Upon completion of the Plans and Specifications and approval
thereof by Landlord and Tenant, Landlord will obtain competitive bids from at
least four general contractors, one of whom will be selected by Tenant and
furnish a copy of all bids to Tenant. Landlord and Tenant shall review each bid
on an "open book" basis and shall select a contractor acceptable to both
Landlord and Tenant. Tenant's failure to approve or disapprove any matters which
Tenant shall be entitled to approve or disapprove pursuant to this Paragraph
8.B. shall be conclusively deemed to be approval of same by Tenant.

                                   Page 3 of 8

<PAGE>

            C.    LANDLORD TO CONSTRUCT IMPROVEMENTS. When the Plans and
Specifications have been approved by Landlord and Tenant, Landlord shall submit
such Plans and Specifications to all governmental authorities having rights of
approval over the Additional Tenant Improvement work and shall apply for all
governmental approvals and building permits. Subject to satisfaction of all
conditions precedent and subsequent to its obligations under this Paragraph 8,
and further subject to the provisions of 8.F. below, Landlord shall thereafter
commence and proceed to complete construction of the Additional Tenant
Improvements in a good and workmanlike manner. As of the date of execution of
this Amendment the Additional Space contains some materials and equipment of the
previous tenant and its creditors, the removal of which is subject to the
jurisdiction of the United States Bankruptcy Court. Landlord agrees to
diligently pursue the removal of such materials and equipment.

            D.    TENANT IMPROVEMENTS ALLOWANCE. Landlord shall provide an
allowance for the planning and construction of the Additional Tenant
Improvements in the amount of $76,491.00 ("Tenant Improvements Allowance"). This
Tenant Improvement Allowance includes $32,091.00 which was not used from the
$37,200.00 allowance set forth in Paragraph 4 of Addendum I of the Lease. The
provisions of said Paragraph 4 of Addendum I of the Lease shall no longer be
applicable or of any effect. The Tenant Improvements Allowance shall be the
maximum contribution by Landlord for the Tenant Improvements Cost, as defined in
8.E below. Should the actual cost of planning and constructing those Additional
Tenant Improvements depicted on the Plans and Specifications be less than the
Additional Tenant Improvements Allowance, the Tenant Improvements Allowance
shall be reduced to an amount equal to said actual cost.

            E.    TENANT IMPROVEMENTS COST. The Tenant Improvements Cost
("Tenant Improvements Cost") shall include all costs and expenses associated
with the design, preparation, approval and construction of the Additional Tenant
Improvements, including, but not limited, to the following:

                  (A)   All costs of preliminary and final architectural and
engineering plans and specifications for the Additional Tenant Improvements, and
engineering costs associated with completion of the State of California energy
utilization calculations under Title 24 legislation;

                  (B)   All costs of obtaining building permits and other
necessary authorizations from local governmental authorities;

                  (C)   All costs of interior design and finish schedule plans
and specifications including as-built drawings;

                  (D)   All direct and indirect costs of procuring, constructing
and installing the Additional Tenant Improvements in the Premises, including,
but not limited to, the construction management fee of four percent (4%) of the
Tenant Improvement Allowance used and the cost of all on-site supervisory and
administrative staff, office, equipment and temporary services rendered by
Landlord's contractor in connection with construction of the Additional Tenant
Improvements;

                                   Page 4 of 8

<PAGE>

                  (E)   All fees payable to the Architect and Landlord's
engineering firm if they are required by Tenant to redesign any portion of the
Additional Tenant Improvements following Tenant's approval of the Final Plans
and Specifications; and

                  (F)   Utility connection fees.

In no event shall the Tenant Improvements Cost include any costs of procuring,
constructing or installing in the Premises any of Tenant's personal property or
trade fixtures.

            F.    EXCESS TENANT IMPROVEMENTS COST. If the Tenant Improvements
Cost is more than the Tenant Improvements Allowance, then the difference between
the Tenant Improvements Cost and the Tenant Improvements Allowance ("Excess
Tenant Improvements Cost") shall be paid by Tenant to Landlord in the following
manner: (a) the Monthly Base Rent shall be increased by amortizing over the Term
of the Lease the amount by which the Excess Tenant Improvements Cost exceeds the
Tenant Improvements Allowance up to a maximum Excess Tenant Improvement Cost of
Fourteen Thousand Eight Hundred Dollars ($14,800) plus ten percent (10%)
interest per annum on such amount, and (b) any Excess Tenant Improvements Cost
greater than Fourteen Thousand Eight Hundred Dollars ($14,800) shall be paid by
Tenant to Landlord in cash. Any Excess Tenant Improvements Cost to be paid by
Tenant in cash shall be paid in a lump sum within ten (10) days of receipt of a
statement from Landlord therefore after completion of the Additional Tenant
improvements.

            G.    CHANGE REQUEST. When the Plans and Specifications have been
approved by Landlord, there shall be no changes without Landlord's prior written
consent, except for (a) necessary on-site installation variations or minor
changes necessary to comply with building codes and other governmental
regulations; and (b) changes approved in writing by both parties. Any costs
related to such governmentally required or requested and approved changes shall
be added to the Tenant Improvements Cost and, to the extent such cost results in
Excess Tenant Improvements Cost, shall be paid for by Tenant as and with any
Excess Tenant Improvements Cost as set forth in subparagraph 8.F. above. The
billing for such additional costs to Tenant shall be accompanied by evidence of
the amounts billed as is customarily used in the business. Costs related to
changes shall include, without limitation, any architectural or design fees, and
Landlord's general contractor's price for effecting the change.

            H.    TERMINATION. If the Lease is terminated prior to completion of
the Additional Tenant Improvements, for any reason due to the Default of Tenant
under the Lease, in addition to any other damages available to Landlord, Tenant
shall pay to Landlord, within five (5) days of receipt of a statement therefor,
all costs incurred by Landlord through the date of termination in connection
with the Additional Tenant Improvements.

            I.    INTEREST. Any payments required to be made by Tenant hereunder
which are not paid when due shall bear interest at the maximum rate permitted by
law from the due date therefore until paid.

            J.    DISCLAIMER. Landlord shall have no liability to Tenant in the
event construction of the Additional Tenant Improvements is delayed or prevented
due to any cause beyond Landlord's reasonable control. Tenant shall take all
reasonable precautions to protect against loss, damage to property or injury to
person during construction of the Additional

                                   Page 5 of 8

<PAGE>

Tenant Improvements, and shall not interfere with the conduct of the Additional
Tenant Improvement, work. Tenant shall cooperate with all reasonable directives
of Landlord and Landlords contractor in order to minimize any disruption or
delay in completion of the Additional Tenant Improvements work. Tenant agrees
that it shall have no claim against Landlord for disruption of Tenant's business
during the construction of the Additional Tenant Improvements nor be entitled to
any offset in Rent as a result of any such disruptions.

      9.    RIGHT OF FIRST REFUSAL. Addendum II to the Lease entitled "Right of
First Refusal" shall be deleted and the following shall be substituted in its
stead as Addendum II:

      During the term of this Lease, Tenant shall have a one-time right of first
refusal ("Right of First Refusal") to lease the approximately 19,200 square feet
of additional space located in the Building, described as 1565-C Mabury Road,
San Jose, California (the "Right of First Refusal Premises") and depicted on
Exhibit E, which is attached to this Amendment and incorporated herein by this
reference. Upon receipt by Landlord of a proposal acceptable to Landlord from a
third party, to lease the Right of First Refusal Premises, Landlord shall offer
this Right of First Refusal to Tenant in writing and Tenant shall have two (2)
business days in which to notify Landlord in writing of Tenant's election to
lease the Right of First Refusal Premises on the same terms and conditions as
set forth in the third party offer. Tenant's notice of election to lease shall
be accompanied by a deposit in the amount of one month's rent ("Deposit"). If
Tenant fails to notify Landlord of Tenant's election to lease said space within
the time specified herein or if Tenant's written notification is not accompanied
by the Deposit in the amount specified in the previous sentence, it shall be
deemed that Tenant has elected not to lease the Right of First Refusal Premises,
and the Right of First Refusal granted hereunder shall forever terminate as to
the Right of First Refusal Premises.

      At Landlord's election this Right of First Refusal shall terminate and
be of no force and effect if, at the time of the giving of the notice by
Landlord of the availability of the Right of First Refusal +Premises or at the
time Tenant is entitled to occupancy of the Right of First Refusal Premises,
Tenant is in Default of the performance of any of the covenants, conditions or
agreements to be performed by Tenant under this Lease.

      This Right of First Refusal is personal to Tenant and may not be assigned,
voluntarily or involuntarily, separate from or as a part of the Lease.

      Should Tenant exercise the Right of First Refusal, Landlord and Tenant
shall immediately enter into a written lease for the Right of First Refusal
Premises, which lease shall be in the same form as this Lease with changes made
to reflect the terms of the third party offer. Should Tenant fail to enter into
a written lease as required by this Paragraph 9, Landlord may at its election
retain the Deposit as LIQUIDATED DAMAGES in lieu of any other monetary and/or
equitable relief to which Landlord might otherwise be entitled.

      Landlord's Initials:___________           Tenant's Initials:___________

      10.   OPTIONS TO EXTEND THE LEASE TERM. Addendum III to the Lease entitled
"Option To Renew" shall be deleted and the following shall be substituted in its
stead as Addendum III.

                                   Page 6 of 8
<PAGE>

            A. FIRST EXTENDED TERM. If Tenant is not in default in the
performance of any of its obligations under this Lease, which default has not
been cured during the applicable cure period, if any, Tenant shall have the
right, at its option, to extend the term of the Lease for five (5) years (the
"First Extended Term"). The Lease of the Premises during the First Extended Term
shall be upon the same terms, covenants, and conditions as are set forth in the
Lease other than Rent and the term of the leasehold. If Landlord does not
receive from Tenant written notice of Tenant's exercise of this option by 5 p.m.
on June 30, 1999 (the "First Option Notice"), all rights under this Paragraph 10
shall automatically terminate. Time is of the essence herein.

            The monthly Base Rent for the First Extended Term shall be 95% of
the current market rent for comparable space (the "FMR") as of July 1, 1999. If
Landlord and Tenant are unable to agree on the FMR within ten (10) days after
receipt of the First Option Notice, then within five (5) days after the
expiration of that period each party, at its cost and by giving written notice
to the other party, shall appoint a real estate appraiser with at least five
years full-time commercial appraisal experience in the area in which the
Premises are located to appraise and set the FMR. If a party does not appoint an
appraiser within ten (10) days after the other party has given notice of the
name of its appraiser, the single appraiser appointed shall be the sole
appraiser and shall set the FMR. If the two appraisers are appointed by the
parties as stated in this paragraph, they shall meet promptly and attempt to set
the FMR for the First Extended Term. If they are unable to agree within ten (10)
days after the second appraiser has been appointed, they shall attempt to elect
a third appraiser meeting the qualifications stated in this paragraph within ten
(10) days after the last day the two appraisers are given to set the FMR. If
they are unable to agree on the third appraiser, either of the parties to this
Lease by giving five (5) days notice to the other party can apply to the then
president of the real estate board of the city in which the Premises are located
for the selection of a third appraiser who meets the qualifications stated in
this paragraph. Each of the parties shall bear one-half (1/2) of the cost of
appointing the third appraiser and of paying the third appraiser's fee. The
third appraiser, however selected, shall be a person who has not previously
acted in any capacity for either party.

            Within ten (10) days after the selection of the third appraiser, a
majority of the appraisers shall set the FMR. If a majority of the appraisers
are unable to set the FMR within the stipulated period of time, the three
appraisals shall be added together and their total divided by three; the
resulting quotient shall be the FMR for the Premises. If, however, the low
appraisal and/or the high appraisal is/are more than ten percent (10%) lower
and/or higher than the middle appraisal, the low appraisal and/or the high
appraisal shall be disregarded. If only one appraisal is disregarded, the
remaining two appraisals shall be added together and their total divided by two;
the resulting quotient shall be the FMR for the Premises. If both the low
appraisal and the high appraisal are disregarded as stated in this paragraph,
the middle appraisal shall be the FMR. After the FMR has been set, the
appraisers shall immediately notify the parties and the parties shall
immediately enter into an amendment setting forth the Rent for the First
Extended Term.

            Notwithstanding any provision in this Paragraph 10 to the contrary,
in no event shall the Rent for the First Extended Term be less than the highest
rent charged during the initial term of the Lease.

            B. SECOND EXTENDED TERM. If Tenant is not in default in the
performance of any of its obligations under this Lease,
which default has not been cured during the

                                   Page 7 of 8
<PAGE>

applicable cure period, if any, and if Tenant has exercised its option to extend
the Term for the First Extended Term, Tenant shall have the right, at its
option, to further extend the term of the Lease for five (5) years (the "Second
Extend Term"). The Lease of the Premises during the Second Extended Term shall
be upon the same terms, covenants and conditions are set forth in the Lease
other than Rent and the term of the leasehold. If Landlord does not receive from
Tenant written notice of Tenant's exercise of this option by 5 p.m., on June 30,
2004 (the "Second Option Notice"), all rights under this Paragraph 8 shall
automatically terminate. Time is of the essence herein.

      The monthly Rent for the Second Extended Term shall be ninety-five percent
(95%) of the current market rent for comparable space (the "FMR) as of July 1,
2004 as agreed upon by Landlord and Tenant. If Landlord and Tenant are unable to
agree on the FMR within ten (10) days after receipt by Landlord of the Second
Option Notice, then the FMR shall be determined by appraisers as set forth in
Paragraph 10.A. above. After the FMR has been set, the appraisers shall
immediately notify the parties and the parties shall immediately enter into an
amendment setting forth the Rent for the Second Extended Term.

      Notwithstanding any provision in this Paragraph 10 to the contrary, in no
event shall the rent for the Second Extended Term be less than the highest rent
charged during the First Extended Term of the Lease.

      11. EFFECT. Except as set forth in this Amendment all terms and conditions
of the Lease shall remain in full force and effect.

(The following Handwritten insert, No. 12, was written by Bill deCarbonel. It is
hard to read but typed here to the best of our ability: 12. Testing/Clause - Tbe
letter dated 3/2/93 (Ehhibit F) shall be made apart hereof)

      IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment to be
effective as of the date first above written.

LANDLORD:

AETNA LIFE INSURANCE COMPANY,
A Connecticut corporation

By:  LINCOLN PROPERTY COMPANY,
     N.C., INC., as Manager and Agent
                                                TENANT:

                                                VIKO TECHNOLOGY, INC.,
                                                A California corporation
                                                dba Adaptive circuits

By:      /s/ (unknown)
         ------------------------
Title:   ------------------------               By:       /s/ Bill de Carbonel
                                                          --------------------
                                                Title:      Vice President

                                   Page 8 of 8
<PAGE>

MABURY INDUSTRIAL PARK

MABURY ROAD                             SAN JOSE, CALIFORNIA
                                              EXHIBIT A

                                  [FLOOR PLAN]

<PAGE>

MABURY INDUSTRIAL PARK

MABURY ROAD                             SAN JOSE, CALIFORNIA
                                              EXHIBIT B

                                  [FLOOR PLAN]

<PAGE>

                          MEMORANDUM OF EFFECTIVE DATE

LANDLORD :                      AETNA LIFE INSURANCE COMPANY

TENANT:                         VIKO TECHNOLOGY, INC.

LEASE DATE:                     September 1, 1991, amended by First Amendment
                                dated January_____, 1993

ADDITIONAL SPACE:               14,800 square feet of space located at 1565
                                Mabury Road, Unit B, San Jose, California

      Tenant hereby accepts the Additional Space as being in the condition
required under the Lease, with all Additional Tenant Improvements completed
(except for minor punchlist items which Landlord agrees to complete).

      The Effective Date of the above-referenced Lease is hereby established as
______________, 1993.

                                                TENANT:

                                                VIKO TECHNOLOGY, INC.,
                                                A California corporation
                                                dba Adaptive Circuirts

                                                By: ___________________________

                                                Printed Name:___________________

                                                Title:__________________________

                                                Approved and agreed:

                                                AETNA LIFE INSURANCE COMPANY,
                                                a Connection corporation

                                                By:    LINCOLN PROPERTY COMPANY
                                                       N.C., INC., as Manager
                                                       and Agent

                                                By:___________________________

                                                Printed Name:___________________

                        EXHIBIT C               Title:__________________________

<PAGE>

                            PLANS AND SPECIFICATIONS

                                  (TO BE ADDED)

                       EXHIBIT D

<PAGE>

See Original for copy of:

EXHIBIT "E" (Mabury Industrial Park Dwg) and,]

EXHIBIT "F" ( Letter from Lincoln Property dated March 2, 1993, Regarding:
            Adaptive Circuits Renewal and Expansion
            At 1565 A & B Mabury Road andAdaptive Electronics
            Renewal at 1605 A Mabury Road)

<PAGE>

                                SECOND AMENDMENT

                                       TO

                                INDUSTRIAL LEASE

      This Second Amendment To Industrial Lease ("this Second Amendment") is
made as of the 1st day of August, 1993 ("Amendment Date") by and between AETNA
LIFE INSURANCE COMPANY, a Connecticut corporation, ("Landlord") and VIKO
TECHNOLOGY, INC., a California corporation, dba Adaptive Circuits ("Tenant")
with reference to the following:

                                    RECITALS

      A.    Landlord and Tenant have entered into that certain Industrial Lease
Agreement dated September 1, 1991("Lease") wherein Landlord leased to Tenant and
Tenant leased from Landlord the premises containing approximately 18,600 square
feet of space located at 1565-A Mabury Road, San Jose, California ("Premises").

      B.    The Lease was amended by that certain First Amendment To Industrial
Lease dated as of January 22, 1993 (the "First Amendment") to extend the Term,
to add an additional 14,800 square feet of space to the Premises, to provide for
additional improvements to be made to the Premises and to make other additions
and modifications to the Lease.

      C.    Landlord and Tenant wish to further amend the Lease to reflect
changes regarding the construction of the Additional Tenant Improvements (as
defined in the First Amendment) and to modify the Base Rent.

      NOW,  THEREFORE, for good and valuable consideration, receipt of which is
hereby acknowledged, Landlord and Tenant agree as follows:

      1.    RECITALS. Landlord and Tenant hereby agree that the hereinabove
recitals are true and correct.

      2.    DEFINITIONS. Unless otherwise defined in this Second Amendment, all
definitions used in this Second Amendment shall have the same meaning and
definition as given them in the Lease and the First Amendment.

      3.    AMENDMENT OF PARAGRAPH 3 OF FIRST AMENDMENT. Paragraph 3 of the
First Amendment shall be deleted and the following shall be substituted in its
stead:

            "3. EXPANSION OF PREMISES. Effective as of the Amendment Date, the
      14,800 square feet of space located at 1565 Mabury Road, Unit B, San Jose,
      California (the "Additional Space") as shown on Exhibit A, which is
      attached to

<PAGE>

      this Amendment and incorporated herein by this reference, shall be added
      to the Premises and after the Amendment Date all references to the
      Premises shall include the Additional Space. After the Amendment date and
      with the addition of the Additional Space to the Premises, the Premises
      shall consist of approximately 33,400 square feet of space as shown on
      Exhibit B, which is attached to this Amendment and incorporated herein by
      this reference."

      4.    DELETION OF EXHIBIT C OF THE FIRST AMENDMENT. Exhibit C of the First
Amendment shall be deleted.

      5.    AMENDMENT OF PARAGRAPH 4 OF THE FIRST AMENDMENT. Paragraph 4 of the
First Amendment shall be deleted and the following shall be substituted in its
stead:

            "4. EXTENSION OF TERM. The term of the Lease shall be extended to
      end on June 30, 2000."

      6.    AMENDMENT OF BASE RENT. Commencing October 1, 1993 the Basic Lease
Information on page 1 of the Lease, Paragraph 4(a) of the Lease and Paragraph 5
of the First Amendment shall be amended to change the monthly Base Rent as
follows:

<TABLE>
<CAPTION>
             Months                          Monthly Base Rent
-------------------------------------        -----------------
<S>                                          <C>
October 1, 1993 - January 31, 1994              $ 8,550.00
February 1, 1994 - September 31, 1995           $12,685.00
October 1, 1995 - July 30, 1996                 $14,362.00
August 1, 1996 - July 30, 1997                  $16,032.00
August 1, 1997 - July 30, 1999                  $16,700.00
August 1, 1999 - June 30, 2000                  $17,034.00
</TABLE>

      7.    AMENDMENT OF ADDITIONAL RENT. The Basic Lease Information on page 1
of the Lease Paragraph 4(b) and Paragraph 6 of the First Amendment shall be
amended to provide that commencing on December 1, 1993 Tenant's proportionate
share shall be 47.7%, if calculated on the total area of the Building, and
15.3%, if calculated on the total area of Mabury Industrial Park.

      8.    AMENDMENT OF PARAGRAPHS 8 OF THE FIRST AMENDMENT. Paragraph 8 of the
First Amendment shall be deleted and the following shall be substituted in its
stead:

            "8. ADDITIONAL TENANT IMPROVEMENTS. Tenant agrees to construc
      certain improvements in the Premises ("Additional Tenant Improvements")
      subject to the conditions set forth below."

            A.    Definition. "Additional Tenant Improvements" as used in this
Paragraph 8 shall be those improvements to the interior portions of the Premises
depicted on those certain Plans and Specifications prepared by Lincoln Property
Company Northern California Inc., Space Planning Division, ("LPC Design") dated
May 27, 1993

                                       2
<PAGE>

and approved by Tenant on June 17, 1993 (the "Plans and Specifications"). There
shall be no changes to the Plans and Specifications without Landlord's prior
written consent.

            B.    Tenant To Construct Additional Tenant Improvements. Tenant
shall submit the Plans and Specifications to all governmental authorities having
rights of approval over the Additional Tenant Improvement work and shall apply
for all required governmental approvals and building permits. Upon obtaining all
required permits and approvals, Tenant shall commence and diligently proceed to
complete the construction of the Additional Tenants Improvements in a good and
workmanlike manner. All construction shall be completed with contractors and
subcontractors approved by the Landlord. Prior to the commencement of
construction Tenant shall provide Landlord with (i) a copy of all fully executed
contracts relating to the Additional Tenant Improvement work and (ii) a list of
all contractors, subcontractors and material suppliers involved in the
construction of the Additional Tenant Improvements. All construction shall be
supervised by Lincoln Property Company Northern California Inc., Construction
Division ("LPC Construction").

            C.    Additional Tenant Improvements Allowance. Landlord shall
provide an allowance for the planning and construction of the Additional Tenant
Improvements in the amount of Seventy-Six Thousand Four Hundred Ninety-One
Dollars ($76,491.00) ("Additional Tenant Improvements Allowance"). This
Additional Tenant Improvement Allowance includes $32,091.00 which was not used
from the $37,200.00 allowance set forth in Paragraph 4 of Addendum I of the
Lease. The provisions of said Paragraph 4 of Addendum I of the Lease shall no
longer be applicable or of any effect. Should the actual cost of planning and
constructing the Additional Tenant Improvements depicted on the Plans and
Specifications be less than the Additional Tenant Improvements Allowance, the
Additional Tenant Improvements Allowance shall be reduced to an amount equal to
said actual cost.

            D.    Additional Tenant Improvement Cost. The Additional Tenant
Improvements Cost ("Additional Tenant Improvements Cost") shall include all
costs and expenses associated with the design, preparation, approval and
construction of the Additional Tenant Improvements, including, but not limited,
to the following:

                  (a)   All costs of preliminary and final architectural and
engineering plans and specifications for the Additional Tenant Improvements, and
engineering costs associated with completion of the State of California energy
utilization calculations under Title 24 legislation;

                  (b)   All costs of obtaining building permits and other
necessary authorizations from local and governmental authorities;

                  (c)   All costs of interior design and finish schedule plans
and specifications including as-built drawings;

                                       3
<PAGE>

                  (d)   All direct and indirect costs of procuring, constructing
and installing the Additional Tenant Improvements in the Premises, including,
but not limited to, the construction management fee of LPC Construction as set
forth in Paragraph 3.f.(d) below.

                  (e)   All fees payable to the LPC Design and Landlord's
engineering firm if they are required by Tenant to redesign any portion of the
Additional Tenant Improvements; and

                  (f)   Utility connection fees.

In no event shall the Additional Tenant Improvements Cost include any costs of
procuring, constructing or installing in the Premises any of Tenant's personal
property or trade fixtures.

            E.    Excess Tenant Improvements Cost. If the Additional Tenant
Improvements Cost is more than the Additional Tenant Improvements Allowance,
then the difference between the Additional Tenant Improvements cost and the
Additional Tenant Improvements Allowance ("Excess Tenant Improvements Cost")
shall be advanced by Landlord up to a maximum amount of Fourteen Thousand Eight
Hundred Dollars ($14,800.00) and shall be repaid by Tenant to Landlord in the
following manner: (a) The Monthly Base Rent shall be increased by amortizing
over the Term of the Lease the amount by which the Excess Tenant Improvements
Cost exceeds the Additional Tenant Improvements Allowance up to a maximum Excess
Tenant Improvement Cost of Fourteen Thousand Eight Hundred Dollars ($14,800.00)
plus ten percent (10%) interest per annum on such amount.

            F.    Payment of Additional Tenant Improvements Allowance and Excess
Tenant Improvements Cost. Tenant shall pay all contractors, subcontractors, and
suppliers. Landlord will reimburse Tenant up to the total amount of the
Additional Tenant Improvements Allowance and Excess Tenant Improvements Cost
subject to the following conditions:

                  (a)   Progress payments to Tenant will be made on a pro rata
basis in the proportion that the total of the Additional Tenant Improvements
Allowance and Excess Tenant Improvements Cost ($91,291.00) bears to the total
Additional Tenant Improvements Cost and the percentage of the Additional Tenant
Improvement work which is completed on the date the payment is requested by
tenant, with a deduction therefrom for retention of ten percent (10%). For
example, if the total Additional Tenant Improvements Cost is $136,936.50 and at
the time Tenant requests a progress payment the Additional Tenant Improves work
is fifty percent (50%) complete, the progress payment to be paid by Landlord to
Tenant would be $41,286.36, calculated as follows:

                  $136,936.50 (total Additional Tenant Improvements Cost)
                  multiplied by 50% (percentage complete) with $68,468.25 (the

                                       4
<PAGE>

                  product) multiplied by 0.67 (the quotient of $91,291.00 [total
                  of the Additional Tenant Improvements Allowance and the Excess
                  Improvements Cost] divided by $136,936.50 [total Additional
                  Tenants Improvements Cost] to equal $45,873.73, with ten
                  percent (10%) deducted for retention for a progress payment of
                  $41,286.36($45,873.73 minus $4,587.37);

                  (b)   Ten percent of any progress payment will be retained by
Landlord from all billings and will be paid to Tenant thirty one (31) days
following delivery to Landlord of a recorded notice of completion accompanied by
unconditional lien releases from all contractors, subcontractors and suppliers
performing work or supplying material with regard to the construction of the
Additional Tenant Improvements;

                  (c)   Tenant shall submit proof of payment for any amount to
be paid to Tenant along with a conditional lien release from any contractor,
subcontractor or supplier for which Tenant has submitted a request for payment
for any current progress payment and an unconditional lien release from such
contractor, subcontractor or supplier for the total of any prior progress
payments previously made to Tenant for payment to such contractor, subcontractor
or supplier; and

                  (d)   Landlord shall fund to LPC Construction for construction
supervision from the Additional Tenant Improvements Allowance and the Excess
Improvements Cost a flat fee of Three Thousand Dollars ($3,000.00) for services
during twelve (12) weeks of construction. If construction of the Additional
Tenant Improvements continues for more than twelve weeks, then LPC Construction
shall be paid additional actual fees at the rate of $100.00 per hour.

      9.    PAYMENT OF ATTORNEY'S FEES. Tenant shall within fifteen (15) days of
receipt of invoice from Landlord pay to Landlord the actual attorney's fees and
costs incurred by Landlord for the preparation of this Second Amendment.

      10.   REPRESENTATION OF TENANT. Tenant represents and warrants to Landlord
that the person executing this Second Amendment on behalf of Tenant has the full
right and authority to execute this Second Amendment on behalf of Tenant and to
bind Tenant without the consent or approval of any other person on entity.
Tenant shall on or before executing this Second Amendment deliver to Landlord a
true and correct copy of Tenant's most recent Statement by Domestic Stock
Corporation filed with the California Department of Corporations.

      11.   EFFECT. Except as set forth in this Second Amendment, all terms and
conditions of the Lease as amended by the First Amendment shall remain in full
force and effect.

                                       5
<PAGE>

Dated: 8/16/93                                 TENANT:

                                               VIKO TECHNOLOGY, INC.,
                                               A California corporation, dba
                                               Adaptive Circuits

                                               By:   /s/ Bill de Carbonel
                                                     -----------------------
                                               Title:      Vice President

Dated: 9/21/93                                 LANDLORD:

                                               AETNA LIFE INSURANCE COMPANY,
                                               A Connecticut corporation

                                               By:   Lincoln Property Company
                                                     Management Services, Inc.,
                                                     as Manager and Agent

                                               By:   /s/ (unknown)
                                                     ------------------------
                                               Title:      V.P. Operations

                                       6

<PAGE>

                       THIRD AMENDMENT TO LEASE AGREEMENT

This Third Amendment to Lease Agreement (the "Amendment") is made and entered
into as of February 17, 1999, by and between MILPITAS INDUSTRIAL PROPERTIES,
INC., A DELAWARE CORPORATION ("LANDLORD"), AND VIKO TECHNOLOGY, INC., A
CALIFORNIA CORPORATION DBA ADAPTIVE CIRCUITS ("TENANT"), with reference to the
following facts.

                                    RECITALS

      A.    Aetna Life Insurance Company, a Connecticut corporation (`Original
            Landlord") and Tenant have entered into that certain Lease Agreement
            dated as of September 1, 1991 and that certain First Amendment dated
            as of January 23, 1993 (the "First Amendment") and that certain
            Second Amendment dated as of August 1, 1993, (hereinafter,
            collectively the "Lease") for the leasing of certain premises
            consisting of approximately 33,400 rentable square feet located at
            1565 A & B Mabury Road, San Jose, California (the "Premises") as
            such Premises are more fully described in the Lease.

      B.    In connection with the sale by Original Landlord to Landlord of
            certain real property of which the Premises is a part, effective as
            of December 21, 1994, Original Landlord assigned all of its rights,
            title and interest in, to and under the Lease to Landlord assumed
            the obligations of Original Landlord under the Lease to the extent
            such obligations first arise and accrue on or after December 21,
            1994.

      C.    Landlord and Tenant now wish to amend the Lease to provide for,
            among other things, the extension of the Term of the Lease, all upon
            and subject to each of the terms, conditions, and provisions set
            forth herein.

NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Landlord and Tenant agree as follows:

            1.    Recitals: Landlord and Tenant agree that the above recitals
                  are true and correct and are hereby incorporated herein as
                  though set forth in full.

            2.    Term. The Term of the Lease shall be extended from July 1,
                  2000 to June 30, 2005 (the "First Extended Term").

            3.    Base Rent. The Basic Lease Information and Section 4 of the
                  Lease are hereby modified to provide that during the First
                  Extended Term of the Lease the monthly Base Rent payable by
                  Tenant to Landlord, in accordance with the provisions of
                  Section 4 of the Lease shall be in accordance with the
                  following schedule:

                                       1
<PAGE>

<TABLE>
<CAPTION>
     Period                                            monthly Base Rent
-----------------                                      -----------------
<S>                                                    <C>
 7/1/00 - 6/30/01                                          $27,722.00
 7/1/01 - 6/30/02                                          $28,724.00
 7/1/02 - 6/30/03                                          $30,060.00
 7/1/03 - 6/30/04                                          $31,396.00
 7/1/04 - 6/30/05                                          $32,732.00
</TABLE>

            4.    Option to Extend the Term: The parties hereby acknowledge and
                  agree that Tenant did exercise the Option to Extend the First
                  Extended Term of the Lease in accordance with the terms and
                  condition set forth in Section 10 of the First Amendment.
                  Tenant further acknowledges and agrees that: 1) the Option to
                  Extend the First Extended Term of the Lease is of no further
                  force and effect; 2) pursuant to the terms and conditions of
                  Section 10 of the First Amendment, Tenant has an additional
                  right to extend the term of the Lease for five years (the
                  "Second Extended Term").

            5.    Grant of Third Extension Option. Subject to the provisions,
                  limitations and conditions set forth in Paragraph d below,
                  Tenant shall have an Option ("Option") to extend the Second
                  Extended Term of the Lease for five (5) years (the "Third
                  Extended Term").

                  a.    Tenant's option Notice. If Landlord does not receive
                  written notice from Tenant of its exercise of this Option on a
                  date which is not more than three hundred sixty (360) days nor
                  less than two hundred forty (240) days prior to the end of the
                  Second Extended Term of the Lease (the "Option Notice"), all
                  rights under this Option shall automatically terminate and
                  shall be of no further force or effect.

                  b.    Establishing the Initial Monthly Base Rent for the Third
                  Extended Term. The Initial monthly Base Rent for the Third
                  Extended Term shall be the then current market rent for
                  similar space within the competitive market area of the
                  Premises (the "Fair Rental Value"). "Fair Rental Value" of the
                  premises means the fair market rental value of the premises as
                  of the commencement of the Third Extended Term, taking into
                  consideration all relevant factors, including length of term,
                  the uses permitted under the Lease, the quality, size, design
                  and location of the Premises, including the condition and
                  value of existing tenant improvements, and the monthly base
                  rent paid by tenants for premises comparable to the Premises,
                  and located within the competitive market are of the Premises
                  as reasonably determined by Landlord.

                  Neither Landlord nor Tenant shall have the right to have a
                  court or any other third party entity establish the Fair
                  Rental Value. If Landlord and Tenant are unable to agree on
                  the Fair Rental Value for the Third Extended Term within ten
                  (10) days of receipt by Landlord of the Option

                                       2
<PAGE>

                  Notice, Landlord and Tenant being obligated only to act in
                  good faith, this Option shall automatically terminate and the
                  Lease shall terminate at the end of its Second Extended Term.

                  In no event shall the monthly Base Rent for any period of the
                  Third Extended Term be less than the highest monthly Base Rent
                  charged during the Second Extended Term of the Lease. Upon
                  determination of the initial monthly Base Rent for the Third
                  Extended Term in accordance with the terms outlined above,
                  Landlord and Tenant shall immediately execute, at Landlord's
                  sole option, either the standard lease agreement then in use
                  by Landlord, or an amendment to this Lease. Such new lease
                  agreement or amendment, as the case may be, shall set forth
                  among other things, the initial monthly Base Rent for the
                  Third Extended Term and the actual commencement date and
                  expiration date for the Third Extended Term. Tenant shall have
                  no other right to extend the term of the Lease under this
                  Amendment unless Landlord and Tenant otherwise agree in
                  writing.

                  c. Condition of Premises and Brokerage Commissions for the
                  Extended Term. If tenant timely and properly exercises this
                  Option, in strict accordance with the terms contained herein:
                  (1) Tenant shall accept the premises in its then "As Is"
                  condition and, accordingly, Landlord shall not be required to
                  perform any additional improvements to the premises; and (2)
                  Tenant hereby agrees that it will be solely responsible for
                  any and all brokerage commissions and finder's fees payable to
                  any broker now or hereafter procured or hired by Tenant or who
                  otherwise claims a commission based on any act or statement of
                  Tenant ("Tenant's Broker") in connection with the Option; and
                  Tenant hereby further agrees that Landlord shall in no event
                  or circumstances be responsible for the payment of any such
                  commissions and fees to Tenant's Broker.

                  d. Limitations On, and Conditions To, Extension Option. This
                  Option is personal to Tenant and may not be assigned,
                  voluntarily or involuntarily, separate from or as part of the
                  Lease. At Landlord's option, all rights of Tenant under this
                  Option shall terminate and be of no force or effect if any of
                  the following individual events occur or any combination
                  thereof occur: (1) Tenant has been in default at any time
                  during the Second Extended Term of the Lease, or is currently
                  in dafault of any provisions of the Lease; and /or (2) Tenant
                  has assigned its rights and obligations under all or part of
                  the Lease or Tenant has subleased all or part of the Premises;
                  and/or (3) Tenant's financial condition is unacceptable to
                  Landlord at the time the Option Notice is delivered to
                  Landlord; and/or (4) Tenant has failed to properly exercise
                  this Option in a timely manner in strict accordance with the
                  provisions of this Amendment; and/or (5) Tenant no longer has
                  possession of all or any part of the Premises under the Lease,
                  or

                                       3
<PAGE>

                        if the lease has been terminated earlier, pursuant to
                        the terms of the Lease.

                  6.    Time is of the Essence. Time is of the essence with
                        respect to each and every time period described in this
                        Amendment.

                  7.    Condition of Premises: Tenant acknowledges and agrees
                        that its possession of the Premises after July 1, 2000
                        is a continuation of Tenants' possesion of the Premises
                        under the lease. Tenant is familiar with the condition
                        of the Premises, and agrees to accept the Premises in
                        their existing condition "AS IS", without any obligation
                        of Landlord to remodel, improve or alter the Premises,
                        to perform any other construction or work of improvement
                        upon the premises, or to provide Tenant with any
                        construction or refurbishing allowance.

                  8.    Brokers. Tenant warrants that it has no dealing with any
                        real estate broker or agent in connection with the
                        negotiation of this Amendment whose commission shall be
                        payable by Landlord. If Tenant has dealt with any
                        person, real estate broker or agent with respect to this
                        Amendment, Tenant shall be solely responsible for the
                        payment of any fee due said person or firm, and Tenant
                        shall hold Landlord free and harmless against any
                        liability with respect thereto, including attorneys'
                        fees and costs.

                  9.    Effect of Amendment: Except as modified herein, the
                        terms and conditions of the Lease shall remain
                        unmodified and continue in full force and effect. In the
                        event of any conflict between the terms and conditions
                        of the Lease and this Amendment, the terms and
                        conditions of this Amendment shall prevail.

                  10.   Definitions: Unless otherwise defined in this Amendment,
                        all terms not defined in this Amendment shall have the
                        meaning set forth in the Lease.

                  11.   Authority: Subject to the provisions of the Lease, this
                        Amendment shall be binding upon and inure to the benefit
                        of the parties hereto, their respective heirs, legal
                        representatives, successors and assigns. Each party
                        hereto and the persons signing below warrant that the
                        person signing below on such party's behalf is
                        authorized to do so and to bind such party to the terms
                        of this Amendment.

                  12.   The terms and provisions of the Llease are hereby
                        incorporated in this Amendment.

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

                                       4
<PAGE>

TENANT:

Viko Technology, Inc.,
A California corporation
dba Adaptive Circuits

By:         /s/ Bill de Carbonel
            ------------------------

Its:        V.P.

Date:       2/19/99

LANDLORD:

MILPITAS INDUSTRIAL PROPERTIES, INC.,
A Delaware Corporation

By:         /s/ Perter b. Ward
            ------------------------

Its:        Vice President

Date:       2/26/99

                                       5

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