Document:

<PAGE>

                                                                   EXHIBIT 10.13

[LOGO OF CB RICHARD ELLIS]

ARTICLE ONE: BASIC TERMS

  This Article One contains the Basic Terms of this Lease between the
Landlord and Tenant named below.  Other Articles, Sections and Paragraphs of the
Lease referred to in this Article One explain and define the Basic Terms and are
to be read in conjunction with the Basic Terms.

  Section 1.01. Date of Lease:                  June 1, 1998
                              --------------------------------------------------

  Section 1.02. Landlord (include legal entity): Steve R. and Barbara A. Keeling
                                                 -------------------------------

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Address of Landlord: 3746 Amaryllis Drive, San Diego, California 92106
                     -----------------------------------------------------------

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  Section 1.03. Tenant (include legal entity):  LXN Corporation, a Delaware
                                                --------------------------------
Corporation
--------------------------------------------------------------------------------
Address of Tenant:  5893 Oberlin Drive, Suite 105, San Diego, California 92121
                    ------------------------------------------------------------

--------------------------------------------------------------------------------

  Section 1.04. Property: The Property is part of Landlord's multi-tenant real
                property development known as
                  6325 Lusk Boulevard, San Diego, California 92121
--------------------------------------------------------------------------------
and described or depicted in Exhibit "A" (the "Project"). The Project includes
the land, the buildings and all other improvements located on the land, and the
common areas described in Paragraph 4.05(a). The Property is (include street
address, approximate square footage and description)  6325 Lusk Boulevard,
                                                     ---------------------------
consisting of approximately 49,942 square feet. Tenant's leased premises
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consists of approximately 31,849 square feet.  NIVN=62
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  Section 1.05. Lease Term:  Five (5)  years  No. (0)  months beginning on
                            ----------       ---------
December 1, 1998 or such other date as is specified in this Lease, and ending on
----------------
November 30, 2003
--------------------------------------------------------------------------------

  Section 1.06. Permitted Uses:  (See Article Five)  Office, research and
                                                     ---------------------------
development, manufacturing, and other uses permitted in the M1-B zoning.
--------------------------------------------------------------------------------

  Section 1.07. Tenant's Guarantor: (if none, so state)  None
                                                         -----------------------

  Section 1.08. Brokers: (See Article Fourteen) (if none, so state)
Landlord's Broker:  CB Richard Ellis, Inc.
                   -------------------------------------------------------------
Tenant's Broker:    CB Richard Ellis, Inc.
                   -------------------------------------------------------------

  Section 1.09. Commission Payable to Landlord's Broker: (See Article Fourteen)
$  Per agreement with CB Richard Ellis, Inc.
  ------------------------------------------------------------------------------

  Section 1.10. Initial Security Deposit: (See Section 3.03) $  See Additional
                                                                ----------------
Terms Rider
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  Section 1.11. Vehicle Parking Spaces Allocated to Tenant: (See Section 4.05)
Ninety-six (96)
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  Section 1.12. Rent and Other Charges Payable by Tenant:

  (a) BASE RENT: Thirty-five thousand thirty-four and NO/100------------ Dollars
                 -------------------------------------------------------
($35,034.00-------) per month for the first  twelve (12)  months, as provided in
-------------------                         -------------
Section 3.01, and shall be increased on the first day of the  13th, 25th, 37th,
                                                             -------------------
and 49th month(s) after the Commencement Date, either (i) as provided in Section
--------
3.02, or (ii) by a fixed rate of four percent (4%) per annum.  If (ii) is
              ----------------------------------------------
completed, then (i) and Section 3.02 are inapplicable.)

  (b) OTHER PERIODIC PAYMENTS: (i) Real Property Taxes (See Section 4.02); (ii)
Utilities (See Section 4.03); (iii) Insurance Premiums (See Section 4.04); (iv)
Tenant's Initial Pro Rata Share of Common Area Expenses  64  % (See Section
                                                        ----
4.05); (v) Impounds for Insurance Premiums and Property Taxes (See Section
4.08); (vi) Maintenance, Repairs and Alterations (See Article Six).

  Section 1.13. Landlord's Share of Profit on Assignment or Sublease: (See
Section 9.05)  fifty  percent (  50  %) of the Profit (the "Landlord's Share").
              -------          ------

  Section 1.14. Riders: The following Riders are attached to and made a part of
this Lease: (If none, so state)
                               -------------------------------------------------
  (1) Option to Extend Term Lease Rider
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  (11) Additional Terms Lease Rider
--------------------------------------------------------------------------------
  (111) Leased Premises
--------------------------------------------------------------------------------

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                                       1

                                                                  /s/ MB 8/27/98
(C) 1988 Southern California Chapter   SIOR/TM/          Initials ______________
         of the Society of Industrial                             /s/ SK 8/27/98
         and Office Realtors,(R) Inc.                             ______________

                            (Multi-Tenant Net Form)
<PAGE>

[LOGO OF CB RICHARD ELLIS]  Industrial Real Estate Lease
                            (Multi-Tenant Facility)
                            CB Richard Ellis, Inc.
                            LICENSED REAL ESTATE BROKER

ARTICLE ONE: BASIC TERMS

  This Article One contains the Basic Terms of this Lease between the Landlord
and Tenant named below. Other Articles, Sections and Paragraphs of the Lease
referred to in this Article One explain and define the Basic Terms and are to be
read in conjunction with the Basic Terms.

  Section 1.01. Date of Lease:                June 1, 1998
                                ------------------------------------------------
  Section 1.02. Landlord (include legal entity): Steve R. and Barbara A. Keeling
                                                --------------------------------

--------------------------------------------------------------------------------
Address of Landlord:  3746 Amaryllis Drive, San Diego, California 92106
                    ------------------------------------------------------------

--------------------------------------------------------------------------------

  Section 1.03. Tenant (include legal entity):   LXN Corporation, a Delaware
                                               ---------------------------------
Corporation
--------------------------------------------------------------------------------
Address of Tenant:  5893 Oberlin Drive, Suite 105, San Diego, California 92121
                  --------------------------------------------------------------

--------------------------------------------------------------------------------

  Section 1.04. Property: The Property is part of Landlord's multi-tenant real
property development known as 6325 Lusk Boulevard, San Diego, California 92121
                              --------------------------------------------------

--------------------------------------------------------------------------------
and described or depicted in Exhibit "A" (the "Project"). The Project includes
the land, the buildings and all other improvements located on the land, and the
common areas described in Paragraph 4.05(a). The Property is (include street
address, approximate square footage and description)
                                                    ----------------------------
    6325 Lusk Boulevard, consisting of approximately 30,000 square feet
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

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  Section 1.05. Lease Term: Five (5) years No (0) months beginning on December
                            --------       ------                     ---------
1, 1998 or such other date as is specified in this Lease, and ending on November
-------                                                                 --------
30, 2003
--------------------------------------------------------------------------------

  Section 1.06. Permitted Uses: (See Article Five) Office, research and
                                                   ----------------------------
development, manufacturing, and other uses permitted in the M1-B zoning.
--------------------------------------------------------------------------------

  Section 1.07. Tenant's Guarantor: (If none, so state)    None
                                                        ------------------------

  Section 1.08. Brokers: (See Article Fourteen)(if none, so state)
Landlord's Broker:    CB Richard Ellis, Inc.
                  --------------------------------------------------------------
Tenant's Broker:      CB Richard Ellis, Inc.
                  --------------------------------------------------------------

  Section 1.09. Commission Payable to Landlord's Broker: (See Article Fourteen)
$ Per agreement with CB Richard Ellis, Inc.
--------------------------------------------------------------------------------

  Section 1.10. Initial Security Deposit: (See Section 3.03) $ See Additional
                                                               -----------------
Terms Rider
--------------------------------------------------------------------------------

  Section 1.11. Vehicle Parking Spaces Allocated to Tenant: (See Section 4.05)
Eighty-nine (89)
--------------------------------------------------------------------------------

  Section 1.12. Rent and Other Charges Payable by Tenant:

    (a) BASE RENT: Thirty-three thousand and No/100-------- Dollars ($33,000.00)
                  -----------------------------------------         ------------
per month for the first twelve (12) months, as provided in Section 3.01, and
                        ----------
shall be increased on the first day of the 13th, 25th, 37th, and 49th month(s)
                                           --------------------------
after the Commencement Date, either (i) as provided in Section 3.02, or (ii)
by a fixed rate of four percent (4%) per annum. (If (ii) is completed, then (i)
----------------------------------------------
and Section 3.02 are inapplicable.)

    (b) OTHER PERIODIC PAYMENTS: (i) Real Property Tax (See Section 4.02); (ii)
Utilities (See Section 4.03); (iii) Insurance Premiums (See Section 4.04); (iv)
Tenant's Initial Pro Rata Share of Common Area Expenses 60.07---------% (See
                                                        ---------------
Section 4.05); (v) Impounds for Insurance Premiums and Property Taxes (See
Section 4.08); (vi) Maintenance, Repairs and Alterations (See Article Six).

  Section 1.13. Landlord's Share of Profit on Assignment or Sublease: (See
Section 9.05) Fifty percent (.50-----------%) of the Profit (the "Landlord's
              -----          ---------------
Share").

  Section 1.14. Riders: The following Riders are attached to and made a part of
this Lease: (If none, so state)
                               -------------------------------------------------
(i) Option to Extend Term Lease Rider
--------------------------------------------------------------------------------
(ii) Additional Terms Lease Rider
--------------------------------------------------------------------------------

                                       1

                                                                        /s/ SK
(C) 1988 Southern California Chapter   SIOR(TM)              Initials __________
         of the Society of Industrial                                   /s/ MB
         and Office Realtors,(R) Inc.                                 __________

                            (Multi-Tenant Net Form)
<PAGE>

ARTICLE TWO: LEASE TERM

     Section 2.01. Lease of Property For Lease Term. Landlord leases the
Property to Tenant and Tenant leases the Property from Landlord for the Lease
Term. The Lease Term is for the period stated in Section 1.05 above and shall
begin and end on the dates specified in Section 1.05 above, unless the beginning
or end of the Lease Term is changed under any provision of this Lease. The
"Commencement Date" shall be the date specified in Section 1.05 above for the
beginning of the Lease Term. Unless advanced or delayed under any provision of
this Lease.

     Section 2.02. Delay in Commencement. Landlord shall not be liable to Tenant
if Landlord does not deliver possession of the Property to Tenant on the
Commencement Date. Landlord's non-delivery of the Property to Tenant on that
date shall not affect this Lease or the obligations of Tenant under this Lease
except that the Commencement Date shall be delayed until Landlord delivers
possession of the Property to Tenant and the Lease Term shall be extended for a
period equal to the delay in delivery of possession of the Property to Tenant,
plus the number of days necessary to end the Lease Term on the last day of a
month. If Landlord does not deliver possession of the Property to Tenant within
sixty (60) days after the Commencement Date, Tenant may elect to cancel this
Lease by giving written notice to Landlord within ten (10) days after the sixty
(60)-day period ends. If Tenant gives such notice, the Lease shall be cancelled
and neither Landlord nor Tenant shall have any further obligations to the other.
If Tenant does not give such notice, Tenant's right to cancel the Lease shall
expire and the Lease Term shall commence upon the delivery of possession of the
Property to Tenant. If delivery of possession of the Property to tenant is
delayed, Landlord and Tenant shall, upon such delivery, mutually execute an
amendment to this Lease setting forth the actual Commencement Date and
expiration date of the Lease.

     Section 2.03. Early Occupancy. If Tenant occupies the Property prior to the
Commencement Date, Tenant's occupancy of the Property shall be subject to all of
the provisions of this Lease. Early occupancy of the Property shall not advance
the expiration date of this Lease. Tenant shall pay Base Rent and all other
charges specified in this Lease for the early occupancy period.

     Section 2.04. Holding Over. Tenant shall vacate the Property upon the
expiration or earlier termination of this Lease. Tenant shall reimburse Landlord
for an indemnify Landlord against all damages which Landlord incurs from
Tenant's delay in vacating the Property. If Tenant does not vacate the Property
upon the expiration or earlier termination of the Lease and Landlord thereafter
accepts rent from Tenant, Tenant's occupancy of the Property shall be a "month-
to-month" tenancy, subject to all of the terms of this Lease applicable to a
month-to-month tenancy, except that the Base Rent then in effect shall be
increased by twenty-five percent (25%).

ARTICLE THREE: BASE RENT

     Section 3.01. Time and Manner of Payment. Upon execution of this Lease,
Tenant shall pay Landlord the Base Rent in the amount stated in Paragraph
1.12(a) above for the first month of the Lease Term. On the first day of the
second month of the Lease Term and each month thereafter, Tenant shall pay
Landlord the Base Rent, in advance, without offset, deduction or prior demand.
The Base Rent shall be payable at Landlord's address or at such other place as
Landlord may designate in writing.

     Section 3.03. Security Deposit; Increases.

     (a)  Upon the execution of this Lease, Tenant shall deposit with Landlord a
cash Security Deposit in the amount set forth in Section 1.0 above. Landlord may
apply all or part of the Security Deposit to any unpaid rent or other charges
due from Tenant or to cure any other defaults of Tenant. If Landlord uses any
part of the Security Deposit, Tenant shall restore the Security Deposit to its
full amount within ten (10) days after Landlord's written request. Tenant's
failure to do so shall be a material default under this Lease. No interest shall
be paid on the Security Deposit. Landlord shall not be required to keep the
Security Deposit separate from its other accounts and no trust relationship is
created with respect to the Security Deposit.

                                       2

                                                                        /s/ SK
(C) 1988 Southern California Chapter   SIOR(TM)              Initials __________
         of the Society of Industrial                                   /s/ MB
         and Office Realtors,(R) Inc.                                 __________

                            (Multi-Tenant Net Form)
<PAGE>

     Section 3.04. Termination; Advance Payments. Upon termination of this
Lease, under Article Seven (Damage or Destruction), Article Eight (Condemnation)
or any other termination not resulting from Tenant's default, and after Tenant
has vacated the Property in the manner required by this Lease, Landlord shall
refund or credit to Tenant (or Tenant's successor) the unused portion of the
Security Deposit, any advance rent or other advance payments made by Tenant
to Landlord, and any amounts paid for real property taxes and other reserves
which apply to any time periods after termination of the Lease.

ARTICLE FOUR: OTHER CHARGES PAYABLE BY TENANT

     Section 4.01. Additional Rent. All charges payable by Tenant other than
Base Rent are called "Additional Rent." Unless this Lease provides otherwise,
Tenant shall pay all Additional Rent then due with the next monthly installment
of Base Rent. The term "rent" shall mean Base Rent and Additional Rent.

     Section 4.02. Property Taxes.

     (a) Real Property Taxes. Tenant shall pay all real property taxes on the
Property (including any fees, taxes or assessments against, or as a result of,
any tenant improvements installed on the Property by or for the benefit of
Tenant) during the Lease Term. Subject to Paragraph 4.02(c) and Section 4.08
below, such payment shall be made at least ten (10) days prior to the
delinquency date of the taxes so long as Tenant is provided the tax bill
fifteen (15) days prior to said delinquency date. Within such ten (10) -day
period, Tenant shall furnish Landlord with satisfactory evidence that the real
property taxes have been paid. Landlord shall reimburse Tenant for any real
property taxes paid by Tenant covering any period of time prior to or after the
Lease Term. If Tenant fails to pay the real property taxes when due, Landlord
may pay the taxes and Tenant shall reimburse Landlord for the amount of such tax
payment as Additional Rent.

     (b) Definition of "Real Property Tax." "Real property tax" means: (i) any
fee, license fee, license tax, business license fee, commercial rental tax,
levy, charge, assessment, penalty or tax imposed by any taxing authority against
the Property; (ii) any tax on the Landlord's right to receive, or the receipt
of, rent or income from the Property or against Landlord's business of leasing
the Property; (iii) any tax or charge for fire protection, streets, sidewalks,
road maintenance, refuse or other services provided to the Property by any
governmental agency; (iv) any tax imposed upon this transaction or based upon a
re-assessment of the Property due to a change of ownership, as defined by
applicable law, or other transfer of all or part of Landlord's interest in the
Property; and (v) any charge or fee replacing any tax previously included within
the definition of real property tax. "Real property tax" does not, however,
include Landlord's federal or state income, franchise, inheritance or estate
taxes.

     (c) Joint Assessment. If the Property is not separately assessed, Landlord
shall reasonably determine Tenant's share of the real property tax payable by
Tenant under Paragraph 4.02(a) from the assessor's worksheets or other
reasonably available information. Tenant shall pay such share to Landlord within
fifteen (15) days after receipt of Landlord's written statement.

     (d) Personal Property Taxes.

          (i) Tenant shall pay all taxes charged against trade fixtures,
     furnishings, equipment or any other personal property belonging to Tenant.
     Tenant shall try to have personal property taxed separately from the
     Property.

          (ii) If any of Tenant's personal property is taxed with the
     Property, Tenant shall pay Landlord the taxes for the personal property
     within fifteen (15) days after Tenant receives a written statement from
     Landlord for such personal property taxes.

     Section 4.03. Utilities. Tenant shall pay, directly to the appropriate
supplier, the cost of all natural gas, heat, light, power, sewer service,
telephone, water, refuse disposal and other utilities and services supplied to
the Property. However, if any services or utilities are jointly metered with
other property, Landlord shall make a reasonable determination of Tenant's
proportionate share of the cost of such utilities and services and Tenant shall
pay such share to Landlord within fifteen (15) days after receipt of Landlord's
written statement.

     Section 4.04. Insurance Policies.

     (a) Liability Insurance. During the Lease Term, Tenant shall maintain a
policy of commercial general liability insurance (sometimes known as broad form
comprehensive general liability insurance) insuring Tenant against liability for
bodily injury, property damage (including loss of use of property) and personal
injury arising out of the operation, use of occupancy of the Property. Tenant
shall name Landlord as an additional insured under such policy. The initial
amount of such insurance shall be One Million Dollars ($1,000,000) per
occurrence and shall be subject to periodic increase based upon inflation,
increase liability awards, recommendation of Landlord's professional insurance
advisers and other relevant factors. The liability insurance obtained by Tenant
under this Paragraph 4.04(a) shall (i) be primary and non-contributing; (ii)
contain cross-liability endorsements; and (iii) insure Landlord against Tenant's
performance under Section 5.05, if the matters giving rise to the indemnity
under Section 5.05 result from the negligence of Tenant. The amount and coverage
of such insurance shall not limit Tenant's liability nor relieve Tenant of any
other obligation under this Lease. Landlord may also obtain comprehensive public
liability insurance in an amount and with coverage determined by Landlord
insuring Landlord against liability arising out of ownership operation, use or
occupancy of the Property. The policy obtained by Landlord shall not be
contributory and shall not provide primary insurance.

     (b) Property and Rental Income Insurance. During the Lease Term, Landlord
shall maintain policies of insurance covering loss of or damage to the Property
in the full amount of its replacement value and provide upon written request by
Tenant evidence of said insurance within fifteen (15) days after such request is
made by Tenant. Such policy shall contain an Inflation Guard Endorsement and
shall provide protection against all perils included within the classification
of fire, extended coverage, vandalism, malicious mischief, special extended
perils (all risk), sprinkler leakage and any other perils which Landlord deems
reasonably necessary. Landlord shall have the right to obtain flood and
earthquake insurance if required by any lender holding a security interest in
the Property. Landlord shall not obtain insurance for Tenant's fixtures or
equipment or building improvements installed by Tenant on the Property. During
the Lease Term, Landlord shall also maintain a rental income insurance policy,
with loss payable to Landlord, in an amount equal to one year's Base Rent, plus
estimated real property taxes and insurance premiums. Tenant shall be liable for
the payment of any deductible amount under Landlord's or Tenant's insurance
policies maintained pursuant to this Section 4.04, in an amount not to exceed
Ten Thousand Dollars ($10,000). Tenant shall not do or permit anything to be
done which invalidates any such insurance policies.

     (c) Payment of Premiums. Subject to Section 4.08, Tenant shall pay all
premiums for the insurance policies described in Paragraphs 4.04(a) and (b)
(whether obtained by Landlord or Tenant) within fifteen (15) days after Tenant's
receipt of a copy of the premium statement or other evidence of the amount due,
except Landlord shall pay all premiums for non-primary comprehensive public
liability insurance which Landlord elects to obtain as provided in Paragraph
4.04(a). For insurance policies

                                       3

                                                                        /s/ SK
(C) 1988 Southern California Chapter   SIOR(TM)              Initials __________
         of the Society of Industrial                                   /s/ MB
         and Office Realtors,(R) Inc.                                 __________

                            (Multi-Tenant Net Form)
<PAGE>

maintained by Landlord which cover improvements on the entire Project, Tenant
shall be liable for Tenant's prorated share of the premiums, in accordance with
the formula in Paragraph 4.05(e) for determining Tenant's share of Common Area
costs. If insurance policies maintained by Landlord cover improvements on real
property other than the Project, Landlord shall deliver to Tenant a statement of
the premium applicable to the Property showing in reasonable detail how Tenant's
share of the premium was computed. If the Lease Term expires before the
expiration of an insurance policy maintained by Landlord, Tenant shall be liable
for Tenant's prorated share of the insurance premiums. Before the Commencement
Date. Tenant shall deliver to Landlord a copy of any policy of insurance which
Tenant is required to maintain under this Section 4.04. At lease thirty (30)
days prior to the expiration of any such policy, Tenant shall deliver to
Landlord a renewal of such policy. As an alternative to providing a policy of
insurance, Tenant shall have the right to provide Landlord a certificate of
insurance, executed by an authorized officer of the insurance company, showing
that the insurance which Tenant is required to maintain under this Section 4.04
is in full force and effect and containing such other information which Landlord
reasonably requires.

    (d) General Insurance Provisions.

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

        (ii) If Tenant fails to deliver any policy, certificate or renewal to
Landlord required under this Lease within the prescribed time period or if any
such policy is cancelled or modified during the Lease Term without Landlord's
consent, Landlord may obtain such insurance, in which case Tenant shall
reimburse Landlord for the cost of such insurance within fifteen (15) days after
receipt of a statement that indicates the cost of such insurance.

        (iii) Tenant shall maintain all insurance required under this Lease with
companies holding a "General Policy Rating" of A-12 or better, as set forth in
the most current issue of "Best Key Rating Guide". Landlord and Tenant
acknowledge the insurance markets are rapidly changing and that insurance in the
form and amounts described in this Section 4.04 may not be available in the
future. Tenant acknowledges that the insurance described in this Section 4.04 is
for the primary benefit of Landlord. If at any time during the Lease Term,
Tenant is unable to maintain the insurance required under the Lease, Tenant
shall nevertheless maintain insurance coverage which is customary and
commercially reasonable in the insurance industry for Tenant's type of business,
as that coverage may change from time to time. Landlord makes no representation
as to the adequacy of such insurance to protect Landlord's or Tenant's
interests. Therefore, Tenant shall obtain any such additional property or
liability insurance which Tenant deems necessary to protect Landlord and Tenant.

        (iv) Unless prohibited under any applicable insurance policies
maintained, Landlord and Tenant each hereby waive any and all rights of recovery
against the other, or against the officers, employees, agents or representatives
of the other, for loss of or damage to its property or the property of others
under its control, if such loss or damage is covered by any insurance policy in
force (whether or not described in this Lease) at the time of such loss or
damage. Upon obtaining the required policies of insurance, Landlord and Tenant
shall give notice to the insurance carriers of this mutual waive of subrogation.

    Section 4.05. Common Areas; Use, Maintenance and Costs.

    (a) Common Areas. As used in this Lease, "Common Areas" shall mean all areas
within the Project which are available for the common use of tenants of the
Project and which are not leased or held for the exclusive use of Tenant or
other tenants, including, but not limited to, parking areas, driveways,
sidewalks, loading areas, access roads, corridors, landscaping and planted
areas. Landlord, from time to time, may change the size, location, nature and
use of any of the Common Areas, convert Common Areas into leasable areas,
construct additional parking facilities (including parking structures) in the
Common Areas, and increase or decrease Common Area land and/or facilities.
Tenant acknowledges that such activities may result in inconvenience to Tenant.
Such activities and changes are permitted if they do not materially affect
Tenant's use of the Property.

    (b) Use of Common Areas. Tenant shall have the nonexclusive right (in common
with other tenants and all others to whom Landlord has granted or may grant such
rights) to use the Common Areas for the purposes intended, subject to such
reasonable rules and regulations as Landlord may establish from time to time.
Tenant shall abide by such rules and regulations and shall use its best effort
to cause others who use the Common Areas with Tenant's express or implied
permission to abide by Landlord's rules and regulations. At any time, Landlord
may close any common Areas to perform any acts in the Common Areas as, in
Landlord's judgment, are desirable to improve the Project. Tenant shall not
interfere with the rights of Landlord, other tenants or any other person
entitled to use the Common Areas.

    (c) Specific Provision re: Vehicle Parking. Tenant shall be entitled to use
the number of vehicle parking spaces in the Project allocated to Tenant in
Section 1.11 of the Lease without paying any additional rent. Tenant's parking
shall not be reserved and shall be limited to vehicles no larger than standard
size automobiles or pickup utility vehicles. Tenant shall not cause large trucks
or other large vehicles to be parked within the Project or on the adjacent
public streets. Temporary parking of large delivery vehicles in the Project may
be permitted by the rules and regulations established by Landlord. Vehicles
shall be parked only in striped parking spaces and not in driveways, loading
areas or other locations not specifically designated for parking. Handicapped
spaces shall only be used by those legally permitted to use them. If Tenant
parks more vehicles in the parking area than the number set forth in Section
1.11 of this Lease, such conduct shall be a material breach of this Lease. In
addition to Landlord's other remedies under the Lease, Tenant shall pay a daily
charge determined by Landlord for each such additional vehicle.

    (d) Maintenance of Common Areas. Landlord shall maintain the Common Areas in
good order, condition and repair and shall operate the Project, in Landlord's
sole discretion, as a first-class industrial/commercial real property
development. Tenant shall pay Tenant's pro rata share (as determined below) of
all costs incurred by Landlord for the operation and maintenance of the Common
Areas. Common Area costs include, but are not limited to, costs and expenses for
the following: gardening and landscaping; utilities, water and sewage charges;
maintenance of signs (other than tenants' signs); premiums for liability,
property damage, fire and other types of casualty insurance on the Common Areas
and worker's compensation insurance; all property taxes and assessments levied
on or attributable to the Common Areas and all Common Area improvements; all
personal property taxes levied on or attributable to personal property used in
connection with the Common Areas; straight-line depreciation on personal
property owned by Landlord which is consumed in the operation or maintenance of
the Common Areas; rental or lease payments paid by Landlord for rented or leased
personal property used in the operation or maintenance

                                       4

                                                                        /s/ SK
(C) 1988 Southern California Chapter   SIOR(TM)              Initials __________
         of the Society of Industrial                                   /s/ MB
         and Office Realtors,(R) Inc.                                 __________

                            (Multi-Tenant Net Form)

<PAGE>

of the Common Areas: fees for required licenses and permits: repairing,
resurfacing, repaving, maintaining, painting, lighting, cleaning, refuse
removal, security and similar items; reserves for roof replacement and exterior
painting and other appropriate reserves; and a reasonable allowance to Landlord
for Landlord's supervision of the Common Areas (not to exceed five percent (5%)
of the gross rents of the Project for the calendar year). Landlord may cause any
or all of such services to be provided by third parties and the cost of such
services shall be included in Common Area costs. Common Area costs shall not
include depreciation of real property which forms part of the Common Areas.

     (e) Tenant's Share and Payment. Tenant shall pay Tenant's annual pro rata
share of all Common Area costs (prorated for any fractional month) upon written
notice from the Landlord that such costs are due and payable, and in any event
prior to delinquency. Tenant's pro rata share shall be calculated by dividing
the square foot area of the Property, as set forth in Section 1.04 of the Lease,
by the aggregate square foot area if the Project which is leased or held for
lease by tenants, as of the date on which the computation is made. Tenant's
initial pro rata share is set out in Paragraph 1.12(b). Any changes in the
Common Area costs and/or the aggregate area of the Project leased or held for
lease during the Lease Term shall be effective on the first day of the month
after such change occurs. Landlord may, at Landlord's election, estimate in
advance and charge to Tenant as Common Area costs, all real property taxes for
which Tenant is liable under Section 4.02 of the Lease, all insurance premiums
for which Tenant is liable under Section 4.04 of the Lease, all maintenance and
repair costs for which Tenant is liable under Section 6.04 of the Lease, and all
other Common Area costs payable by Tenant hereunder. At Landlord's election,
such statements of estimated Common Area costs shall be delivered monthly,
quarterly or at any other periodic intervals to be designated by Landlord.
Landlord may adjust such estimates at any time based upon Landlord's experience
and reasonable anticipation of costs. Such adjustments shall be effective as of
the next rent payment date after notice to Tenant. Within sixty (60) days after
the end of each calendar year of the Lease Term, Landlord shall deliver to
Tenant a statement prepared in accordance with generally accepted accounting
principles setting forth, in reasonable detail, the Common Area costs paid or
incurred by Landlord during the preceding calendar year and Tenant's pro rata
share. Upon receipt of such statement, there shall be an adjustment between
Landlord and Tenant, with payment to or credit given by Landlord (as the case
may be) so that Landlord shall receive the entire amount of Tenant's share of
such costs and expenses for such period.

     Section 4.06. Late Charges. Tenant's failure to pay rent promptly may cause
Landlord to incur unanticipated costs. The exact amount of such costs are
impractical or extremely difficult to ascertain. Such cots may include, but are
not limited to processing and accounting charges and late charges which may be
imposed on Landlord by any ground lease, mortgage or trust deed encumbering the
Property. Therefore, if Landlord does not receive any rent payment within ten
(10) days after it becomes due, Tenant shall pay Landlord a late charge equal
to ten percent (10%) of the overdue amount. The parties agree that such late
charge represents a fair and reasonable estimate of the costs Landlord will
incur by reason of such late payment.

     Section 4.07. Interest on Past Due Obligations. Any amount owned by Tenant
to Landlord which is not paid when due shall bear interest at the rate of twelve
percent (12%) per annum from the due date of such amount. However, interest
shall not be payable on late charges to be paid by Tenant under this Lease. The
payment of interest on such amounts shall not excuse or cure any default by
Tenant under this Lease. If the interest rate specified in this Lease is higher
than the rate permitted by law, the interest rate is hereby decreased to the
maximum legal interest rate permitted by law.

     Section 4.08. Impounds for Insurance Premiums and Real Property Taxes. If
requested by any ground lessor or lender to whom Landlord has granted a security
interest in the Property, or if Tenant is more than ten (10) days late in the
payment of rent more than once in any consecutive twelve (12)-month period,
Tenant shall pay Landlord a sum equal to one-twelfth (1/12) of the annual real
property taxes and insurance premiums payable by Tenant under this Lease,
together with each payment of Base Rent. Landlord shall hold such payments in a
non-interest bearing impound account. If unknown, Landlord shall reasonably
estimate* the amount of real property taxes and insurance and premiums when due.
Tenant shall pay any deficiency of funds in the impound account to Landlord upon
written request. If Tenant defaults under this Lease, Landlord may apply any
funds in the impound account to any obligation then due under this Lease. *along
with documentation as to how such estimate was calculated.

ARTICLE FIVE: USE OF PROPERTY

     Section 5.01. Permitted Uses. Tenant may use the Property only for the
Permitted Uses set forth in Section 1.06 above.

     Section 5.02. Manner of Use. Tenant shall not cause or permit the Property
to be used in any way which constitutes a violation of any law, ordinance, or
governmental regulation or order, which annoys or interferes with the rights of
tenants of the Project, or which constitutes a nuisance or waste. Tenant shall
obtain and pay for all permits, including a Certificate of Occupancy, required
for Tenant's occupancy of the Property and shall promptly take all actions
necessary to comply with all applicable statutes, ordinances, rules,
regulations, orders and requirements regulating the use by Tenant of the
Property, including the Occupational Safety and Health Act.

     Section 5.03. Hazardous Material. As used in this Lease, the term
"Hazardous Material" means any flammable items, explosives, radioactive
materials, hazardous or toxic substances, material or waste or related
materials, including any substances defined as or included in the definition of
"hazardous substances", "hazardous wastes", "hazardous materials" or "toxic
substances" now or subsequently regulated under any applicable federal, state or
local laws or regulations, including without limitation petroleum-based
products, paints, solvents, lead, cyanide, DDT, printing inks, acids,
pesticides, ammonia compounds and other chemical products, asbestos, PCBs and
similar compounds, and including any different products and materials which are
subsequently found to have adverse effects on the environment or the health and
safety of persons. Tenant shall not cause or permit any Hazardous Material to be
generated, produced, brought upon, used, stored, treated or disposed of in or
about the Property by Tenant, its agents, employees, contractors, sublessees or
invitees without the prior written consent of Landlord. Landlord shall be
entitled to take into account such other factors or facts as Landlord may
reasonably determine to be relevant in determining whether to grant or withhold
consent to Tenant's proposed activity with respect to Hazardous Material. In no
event, however, shall Landlord be required to consent to the installation or use
of any storage tanks on the Property. Landlord will warrant to Tenant that the
Property is free of Hazardous Materials as defined above at the time Landlord
delivers the Premises for the construction of Tenant improvements.

     Section 5.04. Signs and Auctions. Tenant shall not place any signs on the
Property without Landlord's prior written consent. Tenant shall not conduct or
permit any auctions or sheriff's sales at the Property.

     Section 5.05. Indemnity. *Tenant shall indemnify Landlord against and hold
Landlord harmless from any and all costs, claims or liability arising from: (a)
Tenant's use of the Property; (b) the conduct of Tenant's business or anything
else done or *With the exception of gross negligence or willful misconduct on
the part of the Landlord, Landlord's agents or assignees,

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(C) 1988 Southern California Chapter   SIOR(TM)              Initials __________
         of the Society of Industrial                                   /s/ MB
         and Office Realtors,(R) Inc.                                 __________

                            (Multi-Tenant Net Form)

<PAGE>

permitted by Tenant to be done in or about the Property, including any
contamination of the Property or any other property resulting from the presence
or use of Hazardous Material caused or permitted by Tenant; (c) any breach or
default in the performance of Tenant's obligations under this Lease; (d) any
misrepresentation or breach of warranty by Tenant under this Lease; or (e) other
acts or omissions of Tenant.  Tenant shall defend Landlord against any such
cost, claim or liability at Tenant's expense with counsel reasonably acceptable
to Landlord or, at Landlord's election, Tenant shall reimburse Landlord for any
legal fees or costs incurred by Landlord in connection with any such claim.  As
a material part of the consideration to Landlord, Tenant assumes all risk of
damage to property or injury to persons in or about the Property arising from
any cause, and Tenant hereby waives all claims in respect thereof against
Landlord, except for any claim arising out of Landlord's gross negligence or
willful misconduct.  As used in this Section, the term "Tenant" shall include
Tenant's employees, agents, contractors and invitees, if applicable.

     Section 5.06.  Landlord's Access.  Landlord or its agents may enter the
Property at all reasonable times to show the Property to potential buyers,
investors or tenants or other parties; to do any other act or to inspect and
conduct tests in order to monitor Tenant's compliance with all applicable
environmental laws and all laws governing the presence and use of Hazardous
Material; or for any other purpose Landlord deems necessary. Landlord shall give
Tenant prior written notice of such entry, except in the case of an emergency.
Landlord may place customary "For Sale" or "For Lease" signs on the Property,
during the last nine months of the Lease term on Suite A.

     Section 5.07.  Quiet Possession.  If Tenant pays the rent and complies with
all other terms of this Lease, Tenant may occupy and enjoy the Property for the
full Lease Term, subject to the provisions of this Lease.

ARTICLE SIX: CONDITION OF PROPERTY; MAINTENANCE, REPAIRS AND ALTERATIONS

     Section 6.01  Existing Conditions.  Landlord will warrant that all current
building systems and subsystems are in good working order as of the date
Landlord turns over the space to Tenant for Tenant Improvement Work, including
HVAC, electrical, mechanical, and plumbing, subject to all recorded matters,
laws, ordinances, and governmental regulations and orders.  Except as provided
herein, Tenant acknowledges that neither Landlord nor any agent of Landlord has
made any representation as to the condition of the Property or the suitability
of the Property for Tenant's intended use.  Tenant represents and warrants that
Tenant has made its own inspection of and inquiry regarding the condition of the
Property and is not relying on any representations of Landlord or any Broker
with respect thereto.  If Landlord or Landlord's Broker has provided a Property
Information Sheet or other Disclosure Statement regarding the Property, a copy
is attached as an exhibit to the Lease. Landlord warrants that the building was
designed and built to code as of 1990.

     Section 6.02.  Exemption of Landlord from Liability.  Landlord shall not be
liable for any damage or injury to the person, business (or any loss of income
therefrom), goods, wares, merchandise or other property of Tenant.  Tenant's
employees, invitees, customers or any other person in or about the Property,
whether such damage or injury is caused by or results from: (a) fire, steam,
electricity, water, gas or rain; (b) the breakage, leakage, obstruction or other
defects of pipes, sprinklers, wires, appliances, plumbing, air conditioning or
lighting fixtures or any other cause; (c) conditions arising in or about the
Property or upon other portions of the Project, or from other sources or places;
or (d) any act or omission of any other tenant of the Project.  Landlord shall
not be liable for any such damage or injury even though the cause of or the
means of repairing such damage or injury are not accessible to Tenant.  The
provisions of this Section 6.02 shall not, however, exempt Landlord from
liability for Landlord's gross negligence or willful misconduct.

     Section 6.03.  Landlord's Obligations.

     (a)  Except as provided in Article Seven (Damage or Destruction) and
Article Eight (Condemnation), Landlord shall keep the following in good order,
condition and repair: the foundations, exterior walls and roof of the Property
(including painting the exterior surface of the exterior walls of the Property
not more often than once every five (5) years, if necessary) and all the
components of electrical, mechanical, plumbing, heating and air conditioning
systems and facilities located in the Property which are concealed or used in
common by tenants of the Project.  However, Landlord shall not be obligated to
maintain or repair windows, doors, plate glass or the interior surfaces of
exterior walls. Landlord shall make repairs under this Section 6.03 within a
reasonable time after receipt of written notice from Tenant of the need for such
repairs.

     (b)  Tenant shall pay or reimburse Landlord for all costs Landlord incurs
under Paragraph 6.03(a) above as Common Area costs as provided for in Section
4.05 of the Lease. Tenant waives the benefit of any statute in effect now or in
the future which might give Tenant the right to make repairs at Landlord's
expense or to terminate this Lease due to Landlord's failure to keep the
Property in good order, condition and repair.

     Section 6.04.  Tenant's Obligations.

     (a)  Except as provided in Section 6.03, Article Seven (Damage or
Destruction) and Article Eight (Condemnation), Tenant shall keep all portions of
the Property (including structural (only to the extent that Tenant's occupancy
causes damage to the structure), nonstructural, interior, systems and
equipment) in good order, condition and repair (including interior repainting
and refinishing, as needed). If any portion of the Property or any system or
equipment in the Property which Tenant is obligated to repair cannot be fully
repaired or restored. Tenant shall promptly replace such portion of the Property
or system or equipment in the Property, regardless of whether the benefit of
such replacement extends beyond the Lease Term; but if the benefit or useful
life of such replacement extends beyond the Lease Term (as such term may be
extended by exercise of any options), the useful life of such replacement shall
be prorated over the remaining portion of the Lease Term (as extended), and
Tenant shall be liable only for that portion of the cost which is applicable to
the Lease Term (as extended). Tenant shall maintain a preventive maintenance
contract providing for the regular inspection and maintenance of the heating and
air conditioning system by a licensed heating and air conditioning contractor,
unless Landlord maintains such equipment under Section 6.03 above. If any part
of the Property or the Project is damaged by any act or omission of Tenant,
Tenant shall pay Landlord the cost of repairing or replacing such damaged
property, whether or not Landlord would otherwise be obligated to pay the cost
of maintaining or repairing such property. It is the intention of Landlord and
Tenant that at all times Tenant shall maintain the portions of the Property
which Tenant is obligated to maintain in an attractive, first-class and fully
operative condition.

     (b)  Tenant shall fulfill all of Tenant's obligations under this Section
6.04 at Tenant's sole expense.  If Tenant fails to maintain, repair or replace
the Property as required by this Section 6.04, Landlord may, upon ten (10) days'
prior written notice to Tenant (except that no notice shall be required in the
case of an emergency), enter the Property and perform such maintenance or repair
(including replacement, as needed) on behalf of Tenant.  In such case, Tenant
shall reimburse Landlord for all costs incurred in performing such maintenance
or repair immediately upon demand.

                                       6

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(C) 1988 Southern California Chapter   SIOR(TM)              Initials __________
         of the Society of Industrial                                   /s/ MB
         and Office Realtors,(R) Inc.                                 __________

                            (Multi-Tenant Net Form)
<PAGE>

   Section 6.05.  Alterations, Additions, and Improvements.

   (a) Tenant shall not make any alterations, additions, or improvements to the
Property without Landlord's prior written consent, except for non-structural
alterations which do not exceed Twenty Thousand Dollars ($20,000.00) in cost
cumulatively over the Lease Term and which are not visible from the outside of
any building of which the Property is part. Landlord may require Tenant to
provide demolition and/or lien and completion bonds in form and amount
satisfactory to Landlord. Tenant shall promptly remove any alterations,
additions, or improvements constructed in violation of this Paragraph 6.05(a)
upon Landlord's written request. All alterations, additions, or improvements
shall be done in a good and workmanlike manner, in conformity with all
applicable laws and regulations, and by a contractor approved by Landlord. Upon
completion of any such work, Tenant shall provide Landlord with "as built"
plans, copies of all construction contracts, and proof of payment for all labor,
materials and lien releases.

  (b) Tenant shall pay when due all claims for labor and material furnished to
the Property. Tenant shall give Landlord at least twenty (20) days' prior
written notice of the commencement of any work on the Property, regardless of
whether Landlord's consent to such work is required. Landlord may elect to
record and post notices of non-responsibility on the Property.

  Section 6.06. Condition upon Termination. Upon the termination of the Lease,
Tenant shall surrender the Property to Landlord, broom clean and in the same
condition as received except for ordinary wear and tear which Tenant was not
otherwise obligated to remedy under any provision of this Lease. However, Tenant
shall not be obligated to repair any damage which Landlord is required to repair
under Article Seven (Damage or Destruction). In addition, Landlord may require
Tenant to remove any alterations, additions or improvements (except those
approved by Landlord in writing) prior to the expiration of the Lease and to
restore the Property to its condition depicted by the mutually approved final
Space Plan, all at Tenant's expense. All alterations, additions and improvements
which Landlord has not required Tenant to remove shall become Landlord's
property and shall be surrendered to Landlord upon the expiration or earlier
termination of the Lease, except that Tenant may remove any of Tenant's
machinery or equipment which can be removed without material damage to the
Property. Tenant shall repair, at Tenant's expense, any damage to the Property
caused by the removal of any such machinery or equipment. In no event, however,
shall Tenant remove any of the following materials or equipment (which shall be
deemed Landlord's property) without Landlord's prior written consent: any power
wiring or power panels; lighting or lighting fixtures; wall coverings; drapes,
blinds or other window coverings; carpets or other floor coverings; heaters, air
conditioners or any other heating or air conditioning equipment; fencing or
security gates; or other similar building operating equipment and decorations.

ARTICLE SEVEN: DAMAGE OR DESTRUCTION

  Section 7.01. Partial Damage to Property.

  (a) Tenant shall notify Landlord in writing immediately upon the occurrence of
any damage to the Property. If the Property is only partially damaged (i.e.,
less than fifty percent (50%) of the Property is untenantable as a result of
such damage or less than thirty-five percent (35%) of Tenant's operations are
materially impaired) and if the proceeds received by Landlord from the insurance
policies described in Paragraph 4.04(b) are sufficient to pay for the necessary
repairs, this Lease shall remain in effect and landlord shall repair the damage
as soon as reasonably possible. landlord may elect (but is not required) to
repair any damage to Tenant's fixtures, equipment, or improvements.

  (b) If the insurance proceeds received by Landlord are not sufficient to pay
the entire cost of repair, or if the cause of the damage is not covered by the
insurance policies which Landlord maintains under Paragraph 4.04(b), Landlord
may elect either to (i) repair the damage within one hundred eighty (180) days,
in which case this Lease shall remain in full force and effect; or (ii)
terminate this Lease as of the date the damage occurred. Landlord shall notify
Tenant in writing within thirty (30) days after receipt of notice of the
occurrence of the damage whether Landlord elects to repair the damage or
terminate the Lease. If Landlord elects to repair the damage, Tenant shall pay
Landlord the "deductible amount" (if damage caused by Tenant) (if any) under
Landlord's insurance policies and, if the damage was due to an act or omission
of Tenant, or Tenant's employees, agents, contractors or invitees, the
difference between the actual cost of repair and any insurance proceeds received
by Landlord. If Landlord elects to terminate the Lease, Tenant may elect to
continue this Lease in full force and effect, in which case Tenant shall repair
any damage to the Property and any building in which the Property is located.
Tenant shall pay the cost of such repairs, except that upon satisfactory
completion of such repairs, Landlord shall deliver to Tenant any insurance
proceeds received by Landlord for the damage repaired by Tenant. Tenant shall
give Landlord written notice of such election within ten (10) days after
receiving Landlord's termination notice. If Landlord has not substantially
completed the repairs within one hundred eighty (180) days per (i) above, then
Tenant may elect to cancel the Lease.

  (c) If the damage to the Property occurs during the last six (6) months of the
Lease Term and such damage will require more than thirty (30) days to repair,
either Landlord or Tenant may elect to terminate this Lease as of the date the
damage occurred, regardless of the sufficiency of any insurance proceeds. The
party electing to terminate this Lease shall give written notification to the
other party of such election within thirty (30) days after Tenant's notice to
Landlord of the occurrence of the damage.

  Section 7.02. Substantial or Total Destruction. If the Property is
substantially or totally destroyed by any cause whatsoever (i.e., the damage to
the Property is greater than partial damage as described in Section 7.01), and
regardless of whether Landlord receives any insurance proceeds, this Lease shall
terminate as of the date the destruction occurred. Notwithstanding the preceding
sentence, if the Property can be rebuilt within six (6) months after the date of
destruction, Landlord may elect to rebuild the Property at Landlord's own
expense, in which case this Lease shall remain in full force and effect.
Landlord shall notify Tenant of such election within thirty (30) days after
Tenant's notice of the occurrence of total or substantial destruction. If
Landlord so elects, Landlord shall rebuild the Property at Landlord's sole
expense, except that if the destruction was caused by an act or omission of
Tenant, Tenant shall pay Landlord the difference between the actual cost of
rebuilding and any insurance proceeds received by Landlord.

  Section 7.03. Temporary Reduction of Rent. If the Property is destroyed or
damaged and Landlord or Tenant repairs or restores the Property pursuant to the
provisions of this Article Seven, any rent payable during the period of such
damage, repair and/or restoration shall be reduced according to the degree, if
any, to which Tenant's use of the Property is impaired. However, the reduction
shall not exceed the sum of one year's payment of Base Rent, insurance premiums
and real property taxes. Except for such possible reduction in Base Rent,
insurance premiums and real property taxes, Tenant shall not be entitled to any
compensation, reduction, or reimbursement from Landlord as a result of any
damage, destruction, repair, or restoration of or to the Property.

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(C) 1988 Southern California Chapter   SIOR(TM)              Initials __________
         of the Society of Industrial                                   /s/ MB
         and Office Realtors,(R) Inc.                                 __________

                            (Multi-Tenant Net Form)
<PAGE>

     Section 7.04. Waiver. Tenant waives the protection of any statute, code or
judicial decision which grants a tenant the right to terminate a lease in the
event of the substantial or total destruction of the leased property. Tenant
agrees that the provisions of Section 7.02 above shall govern the rights and
obligations of Landlord and Tenant in the event of any substantial or total
destruction to the Property.

ARTICLE EIGHT: CONDEMNATION

     If all or any portion of the Property is taken under the power of eminent
domain or sold under the threat of that power (all of which are called
"Condemnation"), this Lease shall terminate as to the part taken or sold on the
date the condemning authority takes title or possession, whichever occurs first.
If more than fifteen percent (15%) of the floor area of the building in which
the Property is located, or which is located on the Property, is taken, either
Landlord or Tenant may terminate this Lease as of the date the condemning
authority takes title or possession, by delivering written notice to the other
within ten (10) days after receipt of written notice of such taking (or in the
absence of such notice, within ten (10) days after the condemning authority
takes title or possession). If neither Landlord nor Tenant terminates this
Lease, this Lease shall remain in effect as to the portion of the Property not
taken, except that the Base Rent and Additional Rent shall be reduced in
proportion to the reduction in the floor area of the Property. Any Condemnation
award or payment shall be distributed in the following order: (a) first, to any
ground lessor, mortgagee or beneficiary under a deed of trust encumbering the
Property, the amount of its interest in the Property; (b) second, to Tenant,
only the amount of any award specifically designated for loss of or damage to
Tenant's trade fixtures or removable personal property; and (c) third, to
Landlord, the remainder of such award, whether as compensation for reduction in
the value of the leasehold, the taking of the fee, or otherwise. If this Lease
is not terminated, Landlord shall repair any damage to the Property caused by
the Condemnation, except that Landlord shall not be obligated to repair any
damage for which Tenant has been reimbursed by the condemning authority. If the
severance damages received by Landlord are not sufficient to pay for such
repair, Landlord shall have the right to either terminate this Lease or make
such repair at Landlord's expense.

ARTICLE NINE: ASSIGNMENT AND SUBLETTING

     Section 9.01. Landlord's Consent Required. No portion of the Property or of
Tenant's interest in this Lease may be acquired by any other person or entity,
whether by sale, assignment, mortgage, sublease, transfer, operation of law, or
act of Tenant, without Landlord's prior written consent, except as provided in
Section 9.02 below. Landlord has the right to grant or withhold its consent as
provided in Section 9.05 below. Any attempted transfer without consent shall be
void and shall constitute a non-curable breach of this Lease. If Tenant is a
partnership, any cumulative transfer of more than twenty percent (20%) of the
partnership interests shall require Landlord's consent. Any change in Tenant's
ownership that affects the financial condition of Tenant in a negative manner
shall require Landlord's consent.

     Section 9.02. Tenant Affiliate. Tenant may assign this Lease or sublease
the Property, without Landlord's consent, to any corporation which controls, is
controlled by or is under common control with Tenant, or to any corporation
resulting from the merger of or consolidation with Tenant ("Tenant's
Affiliate"). In such case, any Tenant's Affiliate shall assume in writing all of
Tenant's obligations under this Lease.

     Section 9.03. No Release of Tenant. No transfer permitted by this Article
Nine, whether with or without Landlord's consent, shall release Tenant or change
Tenant's primary liability to pay the rent and to perform all other obligations
of Tenant under this Lease. Landlord's acceptance of rent from any other person
is not a waiver of any provision of this Article Nine. Consent to one transfer
is not a consent to any subsequent transfer. If Tenant's transferee defaults
under this Lease, Landlord may proceed directly against Tenant without pursuing
remedies against the transferee. Such action shall not relieve Tenant's
liability under this Lease.

     Section 9.04. Offer to Terminate. If Tenant desires to assign the Lease or
sublease the Property, Tenant shall have the right to offer, in writing, to
terminate the Lease as of a date specified in the offer. If Landlord elects in
writing to accept the offer to terminate within twenty (20) days after notice of
the offer, the Lease shall terminate as of the date specified and all the terms
and provisions of the Lease governing termination shall apply. If Landlord does
not so elect, the Lease shall continue in effect until otherwise terminated and
the provisions of Section 9.05 with respect to any proposed transfer shall
continue to apply.

     Section 9.05. Landlord's Consent.

     (a) Tenant's request for consent to any transfer described in Section 9.01
shall set forth in writing the details of the proposed transfer, including the
name, business and financial condition of the prospective transferee, financial
details of the proposed transfer (e.g., the term of and the rent and security
deposit payable under any proposed assignment or sublease), and any other
information Landlord deems relevant. Landlord shall have the right to withhold
consent, if reasonable, or to grant consent, based on the following factors: (i)
the business of the proposed assignee or subtenant and the proposed use of the
Property; (ii) the net worth and financial reputation of the proposed assignee
or subtenant; (iii) Tenant's compliance with all of its obligations under the
Lease; and (iv) such other factors as Landlord may reasonably deem relevant. If
Landlord objects to a proposed assignment solely because of the net worth and/or
financial reputation of the proposed assignee. Tenant may nonetheless sublease
(but not assign), all or a portion of the Property to the proposed transferee,
but only on the other terms of the proposed transfer.

     (b) If Tenant assigns or subleases, the following shall apply:

     (i) Tenant shall pay to Landlord as Additional Rent under the Lease the
Landlord's Share (stated in Section 1.13) of the Profit (defined below) on such
transaction as and when received by Tenant, unless Landlord gives written notice
to Tenant and the assignee or subtenant that Landlord's Share shall be paid by
the assignee or subtenant to Landlord directly. The "Profit" means (A) all
amounts paid to Tenant for such assignment or sublease, including "key" money,
monthly rent in excess of the monthly rent payable under the Lease, and all fees
and other consideration paid for the assignment or sublease, including fees
under any collateral agreements, less (B) costs and expenses directly incurred
by Tenant in connection with the execution and performance of such assignment or
sublease for real estate broker's commissions and costs of renovation or
construction of tenant improvements required under such assignment or sublease.
Tenant is entitled to recover such costs and expenses before Tenant is obligated
to pay the Landlord's Share to Landlord. The Profit in the

                                       8

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(C) 1988 Southern California Chapter   SIOR(TM)              Initials __________
         of the Society of Industrial                                   /s/ MB
         and Office Realtors,(R) Inc.                                 __________

                            (Multi-Tenant Net Form)
<PAGE>

case of a sublease of less than all the Property is the rent allocable to the
sublease space as a percentage on a square footage basis.

    (ii) Tenant shall provide Landlord a written statement certifying all
  amounts to be paid from any assignment or sublease of the Property within
  thirty (30) days after the transaction documentation is signed, and Landlord
  may inspect Tenant's books and records relating to the Property to verify the
  accuracy of such statement. On written request, Tenant shall promptly furnish
  to Landlord copies of all the transaction documentation, all of which shall be
  certified by Tenant to be complete, true and correct. Landlord's receipt of
  Landlord's Share shall not be a consent to any further assignment or
  subletting. The breach of Tenant's obligation under this Paragraph 9.05(b)
  shall be a material default of the Lease.

  Section 9.06. No Merger. No merger shall result from Tenant's sublease of the
Property under this Article Nine. Tenant's surrender of this Lease or the
termination of this Lease in any other manner. In any such event, Landlord may
terminate any or all subtenancies or succeed to the interest of Tenant as
sublandlord under any or all subtenancies.

ARTICLE TEN: DEFAULTS; REMEDIES

  Section 10.01. Covenants and Conditions. Tenant's performance of each of
Tenant's obligations under this Lease is a condition as well as a covenant.
Tenant's right to continue in possession of the Property is conditioned upon
such performance. Time is of the essence in the performance of all covenants and
conditions.

  Section 10.02. Defaults. Tenant shall be in material default under this Lease:

  (a) If Tenant abandons the Property or if Tenant's vacation of the Property
results in the cancellation of any insurance described in Section 4.04;

  (b) If Tenant fails to pay rent or any other charge when due more than three
(3) times during the term including 10 day grace period stated in 4.06;

  (c) If Tenant fails to perform any of Tenant's non-monetary obligations under
this Lease for a period of thirty (30) days after written notice from Landlord;
provided that if more than thirty (30) days are required to complete such
performance, Tenant shall not be in default if Tenant commences such performance
within the thirty (30)-day period and thereafter diligently pursues its
completion. However, Landlord shall not be required to give such notice if
Tenant's failure to perform constitutes a non-curable breach of this Lease. The
notice required by this Paragraph is intended to satisfy any and all notice
requirements imposed by law on Landlord and is not in addition to any such
requirement.

  (d) (i) If Tenant makes a general assignment or general arrangement for the
benefit of creditors; (ii) if a petition for adjudication of bankruptcy or for
reorganization or rearrangement is filed by or against Tenant and is not
dismissed within thirty (30) days; (iii) if a trustee or receiver is appointed
to take possession of substantially all of Tenant's assets located at the
Property or of Tenant's interest in this Lease and possession is not restored to
Tenant within thirty (30) days; or (iv) if substantially all of Tenant's assets
located at the Property or of Tenant's interest in this Lease is subjected to
attachment, execution or other judicial seizure which is not discharged within
(30) days.  If a court of competent jurisdiction determines that any of the acts
described in this subparagraph (d) is not a default under this Lease, and a
trustee is appointed to take possession (or if Tenant remains a debtor in
possession) and such trustee or Tenant transfers Tenant's interest hereunder,
then Landlord shall receive, as Additional Rent, the excess, if any, of the rent
(or any other consideration) paid in connection with such assignment or sublease
over the rent payable by Tenant under this Lease.

  (e) If any guarantor of the Lease revokes or otherwise terminates, or purports
to revoke or otherwise terminate, any guaranty of all or any portion of Tenant's
obligations under the Lease. Unless otherwise expressly provided, no guaranty of
the Lease is revocable.

  Section 10.03. Remedies. On the occurrence of any material default by Tenant,
Landlord may, at any time thereafter, with or without notice or demand and
without limiting Landlord in the exercise of any right or remedy which Landlord
may have:

  (a) Terminate Tenant's right to possession of the Property by any lawful
means, in which case this Lease shall terminate and Tenant shall immediately
surrender possession of the Property to Landlord. In such event, Landlord shall
be entitled to recover from Tenant all damages incurred by Landlord by reason of
Tenant's default, including (i) the worth at the time of the award of the unpaid
Base Rent, Additional Rent and other charges which Landlord had earned at the
time of termination; (ii) the worth at the time of the award in the amount by
which the unpaid Base Rent, Additional Rent and other charges which Landlord
would have earned after termination until the time of the award exceeds the
amount of such rental loss that Tenant proves Landlord could have reasonably
avoided; (iii) the worth at the time of the award of the amount by which the
unpaid Base Rent, Additional Rent and other charges which Tenant would have paid
for the balance of the Lease Term after the time of award exceeds the amount of
such rental loss that Tenant proves Landlord could have reasonably avoided; and
(iv) any other amount necessary to compensate Landlord for all the detriment
proximately caused by Tenant's failure to perform its obligations under the
Lease or which in the ordinary course of things would be likely to result
therefrom, including, but not limited to, any costs or expenses Landlord incurs
in maintaining or preserving the Property after such default, the cost of
recovering possession of the Property, expenses of reletting, including
necessary renovation or alteration of the Property, Landlord's reasonable
attorneys' fees incurred in connection therewith, and any real estate commission
paid or payable. As used in subparts (i) and (ii) above, the "worth at the time
of the award" is computed by allowing interest on unpaid amounts at the rate of
fifteen percent (15%) per annum, or such lesser amount as may then be the
maximum lawful rate. As used in subpart (iii) above, the "worth at the time of
the award" is computed by discounting such amount at the discount rate of the
Federal Reserve Bank of San Francisco at the time of the award, plus one percent
(1%). If Tenant has abandoned the Property, Landlord shall have the option of
(i) retaking possession of the Property and recovering from Tenant the amount
specified in this Paragraph 10.03(a), or (ii) proceeding under Paragraph
10.03(b);

  (b) Maintain Tenant's right to possession, in which case this Lease shall
continue in effect whether or not Tenant has abandoned the Property. In such
event, Landlord shall be entitled to enforce all of Landlord's rights and
remedies under this Lease, including the right to recover the rent as it becomes
due;

  (c) Pursue any other remedy now or hereafter available to Landlord under the
laws or judicial decisions of the state in which the Property is located.

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         of the Society of Industrial                                   /s/ MB
         and Office Realtors,(R) Inc.                                 __________

                            (Multi-Tenant Net Form)
<PAGE>

     Section 10.05. Automatic Termination. Notwithstanding any other term or
provision hereof to the contrary, the Lease shall terminate on the occurrence of
any act which affirms the Landlord's intention to terminate the Lease as
provided in Section 10.03 hereof, including the filing of any unlawful detainer
action against Tenant. On such termination, Landlord's damages for default shall
include all costs and fees, including reasonable attorneys' fees that Landlord
incurs in connection with the filing, commencement, pursuing and/or defending of
any action in any bankruptcy court or other court with respect to the Lease: the
obtaining of relief from any stay in bankruptcy restraining any action to evict
Tenant; or the pursuing of any action with respect to Landlord's right to
possession of the Property. All such damages suffered (apart from Base Rent and
other rent payable hereunder) shall constitute pecuniary damages which must be
reimbursed to Landlord prior to assumption of the Lease by Tenant or any
successor to Tenant in any bankruptcy or other proceeding.

     Section 10.06. Cumulative Remedies. Landlord's exercise of any right or
remedy shall not prevent it from exercising any other right or remedy.

ARTICLE ELEVEN: PROTECTION OF LENDERS

     Section 11.01. Subordination. Landlord shall have the right to subordinate
this Lease to any ground lease, deed of trust of mortgage encumbering the
Property, any advances made on the security thereof and any renewals,
modifications, consolidations, replacements or extensions thereof, whenever made
or recorded. Tenant shall cooperate with Landlord and any lender which is
acquiring a security interest in the Property or the Lease. Tenant shall execute
such further documents and assurances as such lender may require, provided that
Tenant's obligations under this Lease shall not be increased in any material way
(the performance of ministerial acts shall not be deemed material), and Tenant
shall not be deprived of its rights under this Lease. Tenant's right to quiet
possession of the Property during the Lease Term shall not be disturbed if
Tenant pays the rent and performs all of Tenant's obligations under this Lease
and is not otherwise in default. If any ground lessor, beneficiary or mortgagee
elects to have this Lease prior to the lien of its ground lease, deed of trust
or mortgage and gives written notice thereof to Tenant, this Lease shall be
deemed prior to such ground lease, deed of trust or mortgage whether this Lease
is dated prior or subsequent to the date of said ground lease, deed of trust or
mortgage or the date of recording thereof.

     Section 11.02. Attornment. If Landlord's  interest in the Property is
acquired by any ground lessor, beneficiary under a deed of trust, mortgagee, or
purchaser at a foreclosure sale, Tenant shall attorn to the transferee of or
successor to Landlord's interest in the Property and recognize such transferee
or successor as Landlord under this Lease. Tenant waives the protection of any
statute or rule of law which gives or purports to give Tenant any right to
terminate this Lease or surrender possession of the Property upon the transfer
of Landlord's interest.

     Section 11.03. Signing of Documents. Tenant shall sign and deliver any
instrument or documents necessary or appropriate to evidence any such
attornment or subordination or agreement to do so. If Tenant fails to do so
within ten (10) days after written request, Tenant hereby makes, constitutes and
irrevocably appoints Landlord, or any transferee or successor of Landlord, the
attorney-in-fact of Tenant to execute and deliver any such instrument or
document.

     Section 11.04. Estoppel Certificates

     (a)  Upon Landlord's written request, Tenant shall execute, acknowledge and
deliver to Landlord a written statement certifying: (i) that none of the terms
of provisions of this Lease have been changed (or if they have been changed,
stating how they have been changed); (ii) that this Lease has not been cancelled
or terminated; (iii) the last date of payment of the Base Rent and other charges
and the time period covered by such payment; (iv) that Landlord is not in
default under this Lease (or, if Landlord is claimed to be in default, stating
why); and (v) such other representations or information with respect to Tenant
or the Lease as Landlord may reasonably request or which any prospective
purchaser or encumbrancer of the Property may require. Tenant shall deliver such
statement to Landlord within ten (10) days after Landlord's request. Landlord
                             --------------------------------------
may give any such statement by Tenant to any prospective purchaser or
encumbrancer of the Property. Such purchaser or encumbrancer may rely
conclusively upon such statement as true and correct.

     (b)  If Tenant does not deliver such statement to Landlord within such ten
(10)-day period, Landlord, and any prospective purchaser or encumbrancer, may
conclusively presume and rely upon the following facts: (i) that the terms and
provisions of this Lease have not been changed except as otherwise represented
by Landlord; (ii) that this Lease has not been cancelled or terminated except as
otherwise represented by Landlord; (iii) that not more than one month's Base
Rent or other charges have been paid in advance; and (iv) that Landlord is not
in default under the Lease. In such event, Tenant shall be estopped from denying
the truth of such facts.

     Section 11.05. Tenant's Financial Condition. Within ten (10) days after
written request from Landlord, but no more than quarterly Tenant shall deliver
to Landlord such financial statements as Landlord reasonably requires to verify
the net worth of Tenant or any assignee, subtenant, or guarantor of Tenant. In
addition, Tenant shall deliver to any lender designated by Landlord any
financial statements required by such lender to facilitate the financing or
refinancing of the Property. Tenant represents and warrants to Landlord that
each such financial statement is a true and accurate statement as of the date of
such statement. All financial statements shall be confidential and shall be used
only for the purposes set forth in this Lease.

ARTICLE TWELVE. LEGAL COSTS

     Section 12.01. Legal Proceedings. If Tenant or Landlord shall be in breach
or default under this Lease, such party (the "Defaulting Party") shall reimburse
the other party (the "Nondefaulting Party") upon demand for any costs or
expenses that the Nondefaulting Party incurs in connection with any breach or
default of the Defaulting Party under this Lease, whether or not suit is
commenced or judgment entered. Such costs shall include legal fees and costs
incurred for the negotiation of a

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         of the Society of Industrial                                   /s/ MB
         and Office Realtors,(R) Inc.                                 __________

                            (Multi-Tenant Net Form)
<PAGE>

settlement, enforcement of rights or otherwise. Furthermore, if any action for
breach of or to enforce the provisions of this Lease is commenced, the court in
such action shall award to the party in whose favor a judgment is entered, a
reasonable sum as attorneys' fees and costs. The losing party in such action
shall pay such attorneys' fees and costs except in case of [COPY CUT OFF].
Tenant shall also indemnify Landlord against and hold Landlord harmless from all
costs, expenses, demands and liability Landlord may incur if Landlord becomes or
is made a party to any claim or action (a) instituted by Tenant against any
third party, or by any third party against Tenant, or by or against any person
holding any interest under or using the Property by license of or agreement with
Tenant; (b) for foreclosure of any lien for labor or material furnished to or
for Tenant or such other person; (c) otherwise arising out of or resulting from
any act or transaction of Tenant or such other person; or (d) necessary to
protect Landlord's interest under this Lease in a bankruptcy proceeding, or
other proceeding under Title 11 of the United States Code, as amended. Tenant
shall defend Landlord against any such claim or action at Tenant's expense with
counsel reasonably acceptable to Landlord or, at Landlord's election, Tenant
shall reimburse Landlord for any legal fees or costs Landlord incurs in any such
claim or action.

     Section 12.02. Landlord's Consent. Tenant shall pay Landlord's reasonable
attorneys' fees incurred in connection with Tenant's request for Landlord's
consent under Article Nine (Assignment and Subletting), or in connection with
any other act which Tenant proposes to do and which requires Landlord's consent.

ARTICLE THIRTEEN: MISCELLANEOUS PROVISIONS

     Section 13.01. Non-Discrimination. Tenant promises, and it is a condition
to the continuance of this Lease, that there will be no discrimination against,
or segregation of, any person or group of persons on the basis of race, color,
sex, creed, national origin or ancestry in the leasing, subleasing,
transferring, occupancy, tenure or use of the Property of any portion thereof.

     Section 13.02. Landlord's Liability; Certain Duties.

     (a) As used in this Lease, the term "Landlord" means only the current owner
or owners of the fee title to the Property or Project or the leasehold estate
under a ground lease of the Property or Project at the time in question. Each
Landlord is obligated to perform the obligations of Landlord under this Lease
only during the time such Landlord owns such interest or title. Any Landlord who
transfers its title or interest is relieved of all liability with respect to the
obligations of Landlord under this Lease to be performed on or after the date of
transfer. However, each Landlord shall deliver to its transferee all funds that
Tenant previously paid if such funds have not yet been applied under the terms
of this Lease.

     (b) Tenant shall give written notice of any failure by Landlord to perform
any of its obligations under this Lease to Landlord ant to any ground lessor,
mortgagee or beneficiary under any deed of trust encumbering the Property whose
name and address have been furnished to Tenant in writing. Landlord shall not be
in default under this Lease unless Landlord (or such ground lessor, mortgagee or
beneficiary) fails to cure such non-performance within thirty (30) days after
receipt of Tenant's notice. However, if such non-performance reasonably requires
more than thirty (30) days to cure, Landlord shall not be in default if such
cure is commenced within such thirty (30) -day period and thereafter diligently
pursued to completion.

     (c) Notwithstanding any term or provision herein to the contrary, the
liability of Landlord for the performance of its duties and obligations under
this Lease is limited to Landlord's interest in the Property and the Project,
and neither the Landlord nor its partners, shareholders, officers or other
principals shall have any personal liability under this Lease.

     Section 13.03. Severability. A determination by a court of competent
jurisdiction that any provision of this Lease or any part thereof is illegal or
unenforceable shall not cancel or invalidate the remainder of such provision or
this Lease, which shall remain in full force and effect.

     Section 13.04. Interpretation. The captions of the Articles of Sections of
this Lease are to assist the parties in reading this Lease and are not a part of
the terms or provisions of this Lease. Whenever required by the context of this
Lease, the singular shall include the plural and the plural shall include the
singular. The masculine, feminine and neuter genders shall each include the
other. In any provision relating to the conduct, acts or omissions of Tenant,
the term "Tenant" shall include Tenant's agents, employees, contractors,
invitees, successors or others using the Property with Tenant's expressed or
implied permission.

     Section 13.05. Incorporation of Prior Agreements; Modifications. This Lease
is the only agreement between the parties pertaining to the lease of the
Property and no other agreements are effective. All amendments to this Lease
shall be in writing and signed by all parties. Any other attempted amendment
shall be void.

     Section 13.06. Notices. All notices required or permitted under this Lease
shall be in writing and shall be personally delivered or sent by certified mail,
return receipt requested, postage prepaid. Notices to Tenant shall be delivered
to the address specified in Section 1.03 above, except that upon Tenant's taking
possession of the Property, the Property shall be Tenant's address for notice
purposes. Notices to Landlord shall be delivered to the address specified in
Section 1.02 above. All notices shall be effective upon delivery. Either party
may change its notice address upon written notice to the other party.

     Section 13.07. Waivers. All waivers must be in writing and signed by the
waiving party. Landlord's failure to enforce any provision of this Lease or its
acceptance of rent shall not be a waiver and shall not prevent Landlord from
enforcing that provision or any other provision of this Lease in the future. No
statement on a payment check from Tenant or in a letter accompanying a payment
check shall be binding on Landlord. Landlord may, with or without notice to
Tenant, negotiate such check without being bound to the conditions of such
statement.

     Section 13.08. No Recordation. Tenant shall not record this Lease without
prior written consent from Landlord. However, either Landlord or Tenant may
require that a "Short Form" memorandum of this Lease executed by both parties be
recorded. The party requiring such recording shall pay all transfer taxes and
recording fees.

     Section 13.09. Binding Effect; Choice of Law. This Lease binds any party
who legally acquires any rights or interest in this Lease from Landlord or
Tenant. However, Landlord shall have no obligation to Tenant's successor unless
the rights or interests of Tenant's successor are acquired in accordance with
the terms of this Lease. The laws of the state in which the Property is located
shall govern this Lease.

     Section 13.10. Corporate Authority; Partnership Authority. If Tenant is a
corporation, each person signing this Lease on behalf of Tenant represents and
warrants that he has full authority to do so and that this Lease binds the
corporation. Within thirty (30) days after this Lease is signed, Tenant shall
deliver to Landlord a certified copy of a resolution of Tenant's Board of
Directors authorizing the execution of this Lease or other evidence of such
authority reasonably acceptable to Landlord. If Tenant is a partnership, each
person or entity signing this Lease for Tenant represents and warrants that he
or it is a general

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         and Office Realtors,(R) Inc.                                 __________

                            (Multi-Tenant Net Form)

<PAGE>

partner of the partnership, that he or it has full authority to sign for the
partnership and that this Lease binds the partnership and all general partners
of the partnership. Tenant shall give written notice to Landlord of any general
partner's withdrawal or addition. Within thirty (30) days after this Lease is
signed, Tenant shall deliver to Landlord a copy of Tenant's recorded statement
of partnership or certificate of limited partnership.

  Section 13.11. Joint and Several Liability. All parties signing this Lease as
Tenant shall be jointly and severally liable for all obligations of Tenant.

  Section 13.12. Force Majeure. If Landlord cannot perform any of its
obligations due to events beyond Landlord's control, the time provided for
performing such obligations shall be extended by a period of time equal to the
duration of such events. Events beyond Landlord's control include, but are not
limited to, acts of God, war, civil commotion, labor disputes, strikes, fire,
flood or other casualty, shortages of labor or material, government regulation
or restriction and weather conditions.

  Section 13.13. Execution of Lease. This Lease may be executed in counterparts
and, when all counterpart documents are executed, the counterparts shall
constitute a single binding instrument. Landlord's delivery of this Lease to
Tenant shall not be deemed to be an offer to lease and shall not be binding upon
either party until executed and delivered by both parties.

  Section 13.14. Survival. All representations and warranties of Landlord and
Tenant shall survive the termination of this Lease.

ARTICLE FOURTEEN:  BROKERS

  Section 14.01. Broker's Fees.  When this Lease is signed by and delivered to
both Landlord and Tenant, Landlord shall pay a real estate commission to
Landlord's Broker named in Section 1.08 above, if any, as provided in the
written agreement between Landlord and Landlord's Broker, or the sum stated in
Section 1.09 above for services rendered to Landlord by Landlord's Broker in
this transaction. Landlord shall pay Landlord's Broker a commission if Tenant
exercises any option to extend the Lease Term or to buy the Property, or any
similar option or right which Landlord may grant to Tenant, or if Landlord's
Broker is the procuring cause of any other lease or sale entered into between
Landlord and Tenant covering the Property. Such commission shall be the amount
set forth in Landlord's Broker's commission schedule in effect as of the
execution of this Lease. If a Tenant's Broker is named in Section 1.08 above,
Landlord's Broker shall pay an appropriate portion of its commission to Tenant's
Broker if so provided in any agreement between Landlord's Broker and Tenant's
Broker. Nothing contained in this Lease shall impose any obligation on Landlord
to pay a commission or fee to any party other than Landlord's Broker.

  Section 14.02. Protection of Brokers. If Landlord sells the Property, or
assigns Landlord's interest in this Lease, the buyer or assignee shall, by
accepting such conveyance of the Property or assignment of the Lease, be
conclusively deemed to have agreed to make all payments to Landlord's Broker
thereafter required of Landlord under this Article Fourteen. Landlord's Broker
shall have the right to bring a legal action to enforce or declare rights under
this provision. The prevailing party in such action shall be entitled to
reasonable attorneys' fees to be paid by the losing party. Such attorneys' fees
shall be fixed by the court in such action. This Paragraph is included in this
Lease for the benefit of Landlord's Broker.

  Section 14.03. Agency Disclosure; No Other Brokers. Landlord and Tenant each
warrant that they have dealt with no other real estate broker(s) in connection
with this transaction except: CB RICHARD ELLIS, INC., who represents
                              ----------------------
the Landlord, and CB Richard Ellis, Inc., who represents the Tenant.
------------      ----------------------                 ----------

  In the event that CB RICHARD ELLIS, INC. represents both Landlord and Tenant,
                    ----------------------
Landlord and Tenant hereby confirm that they were timely advised of the dual
representation and that they consent to the same, and that they do not expect
said broker to disclose to either of them the confidential information of the
other party.

ARTICLE FIFTEEN: COMPLIANCE

  The parties hereto agree to comply with all applicable federal, state and
local laws, regulations, codes, ordinances and administrative orders having
jurisdiction over the parties, property or the subject matter of this Agreement,
including, but not limited to, the 1964 Civil Rights Act and all amendments
thereto, the Foreign Investment In Real Property Tax Act, the Comprehensive
Environmental Response Compensation and Liability Act, and The Americans With
Disabilities Act.

  ADDITIONAL PROVISIONS MAY BE SET FORTH IN A RIDER OR RIDERS ATTACHED HERETO OR
IN THE BLANK SPACE BELOW. IF NO ADDITIONAL PROVISIONS ARE INSERTED, PLEASE DRAW
A LINE THROUGH THE SPACE BELOW.

                                      12

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         of the Society of Industrial                                   /s/ MB
         and Office Realtors,(R) Inc.                                 __________

                            (Multi-Tenant Net Form)
<PAGE>

        Landlord and Tenant have signed this Lease at the place and on the dates
specified adjacent to their signatures below and have initialed all Riders which
are attached to or incorporated by reference in this Lease.

                                                "LANDLORD"
           7/31, 1998                   Steven R. and Barbara A. Keeling
Signed on ____________________          ________________________________

at___________________________.          ________________________________

                                            /s/ Steven R. Keeling
                                        By: ____________________________
                                              Owner
                                        Its:____________________________

                                        By: ____________________________

                                        Its:____________________________

                                                 "TENANT"

           7/31, 1998                   LXN Corporation,
Signed on ____________________          ________________________________
                                        a Delaware Corporation
at___________________________.          ________________________________

                                              /s/ Randy Nelson
                                        By: ____________________________
                                              President & CEO
                                        Its:____________________________

                                        By: ____________________________

                                        Its:____________________________

        IN ANY REAL ESTATE TRANSACTION, IT IS RECOMMENDED THAT YOU CONSULT WITH
A PROFESSIONAL, SUCH AS A CIVIL ENGINEER, INDUSTRIAL HYGIENIST OR OTHER PERSON
WITH EXPERIENCE IN EVALUATING THE CONDITION OF THE PROPERTY, INCLUDING THE
POSSIBLE PRESENCE OF ASBESTOS, HAZARDOUS MATERIALS AND UNDERGROUND STORAGE
TANKS.
        THIS PRINTED FORM LEASE HAS BEEN DRAFTED BY LEGAL COUNSEL AT THE
DIRECTION OF THE  SOUTHERN CALIFORNIA CHAPTER OF THE SOCIETY OF INDUSTRIAL
AND OFFICE REALTORS(R), INC. NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE
SOUTHERN CALIFORNIA CHAPTER OF THE SOCIETY OF INDUSTRIAL AND OFFICE REALTORS(R),
INC., ITS LEGAL COUNSEL, THE REAL ESTATE BROKERS NAMED HEREIN, OR THEIR
EMPLOYEES OR AGENTS, AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT OR TAX
CONSEQUENCES OF THIS LEASE OR OF THIS TRANSACTION, LANDLORD AND TENANT SHOULD
RETAIN LEGAL COUNSEL TO ADVISE THEM ON SUCH MATTERS AND SHOULD RELY UPON THE
ADVICE OF SUCH LEGAL COUNSEL.

                                      13
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         of the Society of Industrial                                   /s/ MB
         and Office Realtors,(R) Inc.                                 __________

                            (Multi-Tenant Net Form)

<PAGE>

[LETTERHEAD OF CB RICHARD ELLIS]

                      OPTION TO EXTEND TERM LEASE RIDER
                            CB Richard Ellis, Inc.

                          LICENSED REAL ESTATE BROKER

        This Rider is attached to and made part of that certain Lease (the
"Lease") dated June 1, 1998 between Steven R. Keeling, as Landlord, and LXN
                                    -----------------                   ---
Corporation, a Delaware Corporation, as Tenant, covering the property commonly
-----------------------------------
known as 6325 Lusk Boulevard, San Diego, California 92121 (the "Property"). The
         ------------------------------------------------
terms used herein shall have the same definitions as set forth in the Lease. The
provisions of this Rider shall supersede any inconsistent or conflicting
provisions of the Lease.

A.  Option(s) to Extend Term.

    1.  Grant of Option.

    Landlord hereby grants to Tenant one (1) option(s) (the "Option(s)") to
extend the Lease Term for additional term(s) of five (5) years each (the
"Extension(s)"), on the same terms and conditions as set forth in the Lease, but
at an increased rent as set forth below, a Rental Rate of ninety five percent
(95%) of the Fair Market Rate, including annual increases, and a Tenant
Improvement refurbishment allowance of $150,000.00. Each Option shall be
exercised only by written notice delivered to Landlord at least one hundred
eighty (180) days before the expiration of the Lease Term or the preceding
Extension of the Lease Term, respectively. If Tenant fails to deliver Landlord
written notice of exercise of an Option within the prescribed time period, such
Option and any succeeding Options shall lapse, and there shall be no further
right to extend the Lease Term. Each Option shall be exercisable by Tenant on
the express conditions that (a) at the time of the exercise, and at all times
prior to the commencement of such Extension, Tenant shall not be in default
under any of the provisions of the Lease and (b) Tenant has not been ten (10) or
more days late in the payment of rent more than a total of three (3) times
during the Lease Term and all preceding Extensions.

    2.  Personal Options.

        The Option(s) are personal to the Tenant named in Section 1.03 of the
Lease or any Tenant's Affiliate described in Section 9.02 of the Lease. If
Tenant subleases any portion of the Property or assigns or otherwise transfers
any interest under the Lease to an entity other than a Tenant Affiliate prior to
the exercise of an Option (whether with or without Landlord's consent), such
Option and any succeeding Options shall lapse. If Tenant subleases any portion
of the Property or assigns or otherwise transfers any interest of Tenant under
the Lease to an entity other than a Tenant Affiliate after the exercise of an
Option but prior to the commencement of the respective Extension (whether with
or without Landlord's consent), such Option and any succeeding Options shall
lapse and the Lease Term shall expire as if such Option were not exercised. If
Tenant subleases any portion of the Property or assigns or otherwise transfers
any interest of Tenant under the Lease in accordance with Article 9 of the Lease
after the exercise of an Option and after the commencement of the Extension
related to such Option, then the term of the Lease shall expire upon the
expiration of the Extension during which such sublease or transfer occurred and
only the succeeding Options shall lapse.

B.  Calculation of Rent.

    The Base Rent during the Extension(s) shall be determined by one or a
combination of the following methods (INDICATE METHOD UPON EXECUTION OF
THE LEASE):

    [_] 1. Cost of Living Adjustment (Section B.1, below)
           Rental Adjustment Date(s): The first day of the _____________
           month(s) of the ________________________ Extension(s) of the Lease
           Term.

    [X] 2. Fair Rental Value Adjustment (Section B.2, below) as determined by
           appraiser [X] or broker [_]. Rental Adjustment Date(s): The first day
           of the commencement of the Option Term.
                  -------------------------------

    [_] 3. Fixed Adjustment
           The Base Rent shall be increased to the following amounts (the
           "Adjusted Base Rent(s)") on the dates (the "Rental Adjustment
           Date(s)") set forth below:

               Rental Adjustment Date(s)              Adjusted Base Rent(s)

             ______________________________      $____________________________

             ______________________________      $____________________________

             ______________________________      $____________________________

             ______________________________      $____________________________

                                       1

                                                                        /s/ SK
(C) 1988 Southern California Chapter   SIOR(TM)              Initials __________
         of the Society of Industrial                                   /s/ MB
         and Office Realtors,(R) Inc.                                 __________

                            (Multi-Tenant Net Form)
<PAGE>

  2. Fair Rental Value Adjustment

  The Base Rent shall be increased on the [???](s) specified in Section B.2,
above (the [???] "fair rental value" of the Property, determined in the
following manner:

  (a) Not later than one hundred (100) days prior to any applicable Rental
Adjustment Date, Landlord and Tenant shall meet in an effort to negotiate, in
good faith, the fair rental value of the Property as of such Rental Adjustment
Date. If Landlord and Tenant have not agreed upon the fair rental value of the
Property at least ninety (90) days prior to the applicable Rental Adjustment
Date, the fair rental value shall be determined by appraisal, by one or more
appraisers or brokers (herein called "Appraiser(s)"), as provided in Section
B.2(b), below. If appraiser(s) are used, such appraiser(s) shall have at least
five (5) years' experience in the appraisal of commercial/industrial real
property in the area in which the Property is located and shall be members of
professional organizations such as MAI or equivalent.  If broker(s) are used,
such broker(s) shall have at least five (5) years' experience in the sales and
leasing of commercial/industrial real property in the area in which the Property
is located and shall be members of professional organizations such as the
Society of Industrial and Office Realtors or equivalent.

  (b) If Landlord and Tenant are not able to agree upon the fair rental value of
the Property within the prescribed time period, then Landlord and Tenant shall
attempt to agree in good faith upon a single Appraiser not later than
seventy-five (75) days prior to the applicable Rental Adjustment Date. If
Landlord and Tenant are unable to agree upon a single Appraiser within such time
period, then Landlord and Tenant shall each appoint one Appraiser not later than
sixty-five (65) days prior to the applicable Rental Adjustment Date. Within ten
(10) days thereafter, the two (2) appointed Appraisers shall appoint a third
(3rd) Appraiser. If either Landlord or Tenant fails to appoint its Appraiser
within the prescribed time period, the single Appraiser appointed shall
determine the fair rental value of the Property. If both parties fail to appoint
Appraisers within the prescribed time periods, then the first Appraiser
thereafter selected by a party shall determine the fair rental value of the
Property. Each party shall bear the cost of its own Appraiser and the parties
shall share equally the cost of the single or third Appraiser, if applicable.

  (c) For the purposes of such appraisal, the term "fair market value" shall
mean the price that a ready and willing tenant would pay, as of the applicable
Rental Adjustment Data, as monthly rent to a ready and willing landlord of
property comparable to the Property if such property were exposed for lease on
the open market for a reasonable period of time and taking into account all of
the purposes for which such property may be used. If a single Appraiser is
chosen, then such Appraiser shall determine the fair rental value of the
Property. Otherwise, the fair rental value of the Property shall be the
arithmetic average of the two (2) of the three (3) appraisals which are closest
in amount, and the third appraisal shall be disregarded. In no event, however,
shall the Base Rent be reduced by reason of such computation. Landlord and
Tenant shall instruct the Appraiser(s) to complete the determination of the fair
rental value not later than thirty (30) days prior to the applicable Rental
Adjustment Date. If the fair rental value is not determined prior to the
applicable Rental Adjustment Date, then Tenant shall continue to pay to Landlord
the Base Rent applicable to the Property immediately prior to such Extension,
until the fair rental value is determined. When the fair rental value of the
Property is determined, Landlord shall deliver notice thereof to Tenant, and
Tenant shall pay to Landlord, within ten (10) days after receipt of such notice,
the difference between the Base Rent actually paid by Tenant to Landlord and the
new Base Rent determined hereunder.

                                       2

                                                                        /s/ SK
(C) 1988 Southern California Chapter   SIOR(TM)              Initials __________
         of the Society of Industrial                                   /s/ MB
         and Office Realtors,(R) Inc.                                 __________

                            (Multi-Tenant Net Form)
<PAGE>

                           ADDITIONAL TERMS RIDER #1

                        LEASEHOLD IMPROVEMENT AGREEMENT
             FOR 6325 LUSK BOULEVARD, SAN DIEGO, CALIFORNIA 92121

THIS LEASEHOLD IMPROVEMENT AGREEMENT ("Improvement Agreement") is dated for
reference purposes only as June 1, 1998, and is made by and between STEVEN R.
KEELING, a Delaware corporation ("Landlord"), and LXN CORPORATION, a Delaware
corporation (Tenant"), as part of that certain Industrial Real Estate Lease
("Lease") of even date herewith between them, affecting that real property
commonly known as 6325 Lusk Boulevard, ("Premises") located in the City of San
Diego, County of San Diego, State of California. The following provisions are
hereby added to the Lease and, in the event of conflict between this Improvement
Agreement and the Lease, this Improvement Agreement shall prevail:

                                   SECTION 1
                                  DEFINITIONS

1.1  Definitions.  Wherever used in this Improvement Agreement, capitalized
terms not otherwise defined herein shall have the meaning ascribed to them in
the Lease, and the following terms are defined as follows:

     1.1.1     Interior Tenant Improvement Allowance: Landlord shall provide a
               Tenant Improvement Allowance of twenty dollars ($20.00) per
               square foot (a total of Six Hundred Thousand Dollars
               [$600,000.00]). In addition to the base allowance, Landlord will
               provide an additional Tenant Improvement Allowance of up to five
               dollars ($5.00) per square foot, amortized over the term of the
               lease at a rate of ten percent (10%). This additional payment
               shall be treated as Base Rent and be subject to the same terms
               and conditions thereof.

     1.1.2     Exterior Tenant Improvement Allowance: Landlord will allow Tenant
               to design an entryway to the lobby of the building that will
               entail improvements to landscaping, architectural features of the
               building, and hardscaping. Landlord will also allow Tenant to
               make improvements off Lusk Boulevard to create better access and
               a more prominent corporate image for the building. All said plans
               and improvements to the building and site must first be reviewed
               by the Landlord and have written approval, which shall not be
               unreasonably withheld. All improvements and construction plans
               will be mutually agreed upon by Landlord and Tenant. Landlord
               will agree to amortize up to fifty thousand dollars ($50,000.00)
               for said improvements. The amortization of these additional
               improvements shall be at ten percent (10%) per annum and shall be
               treated as Base Rent, subject to the same terms and conditions
               thereof.

     1.1.3     Architect(s) collectively means Facility Solutions, Inc. and all
               other architects, structural engineers, mechanical engineers,
               construction manager and the other design professionals as are
               needed to design the Improvements, each of whom shall be duly
               licensed by the State of California and in good professional
               standing.

     1.1.4     Landlord's Improvements: Landlord, at Landlord's sole cost and
               expense, shall repaint the building per a mutually approved paint
               scheme, and slurry seal and restripe the parking lot. Landlord
               will perform this work prior to the Lease Commencement Date.

     1.1.5     Applicable Laws and Restrictions means all laws (including
               without limitation the Americans With Disabilities Act), building
               codes, ordinances, regulations, title covenants, conditions, and
               restrictions, and casualty underwriters requirements applicable
               to the Premises and the Improvements.

     1.1.6     Contractor(s) collectively means R.G. Petty Construction of San
               Diego and all other general contractors, design-build
               contractors, subcontractors, and material suppliers who provide
               labor and materials for construction of the Improvements. To the
               extent required by Applicable Laws and Restrictions, each
               Contractor shall be duly licensed by the State of California and
               in good professional standing.

       /s/ SK                      Page 1 of 6                      /s/ MB
___________________                                          ___________________
Landlord's Initials                                            Tenant's Initials
<PAGE>

         1.1.7  Construction Cost means all of the following for Landlord's Work
                or Tenant's Work, as applicable:

                (1) payments to Contractor(s) for labor, material, equipment,
                    and fixtures supplied pursuant to any construction contract
                    entered into in accordance with this Improvement Agreement;

                (2) permits, taxes, fees, charges and levies by governmental and
                    quasi-governmental agencies for Permits or for inspections
                    of Landlord's Work or Tenant's work, as applicable;

                (3) fees paid by Tenant to Architect(s) or fees paid by Landlord
                    to Architect(s), as applicable, for services required by
                    this Improvement Agreement.

         1.1.8  Construction Documents are, as applicable,

                (1) the Final Plans;
                (2) bid packages;
                (3) construction contract:
                (4) material supply agreement; and
                (5) architect's agreement.

         1.1.9  Final Plans are those working drawings, plans, specifications,
                elevations, lighting design, interior finish design, and such
                similar drawings prepared by the Architect(s) and approved by
                Landlord pursuant to this Improvement Agreement.

         1.1.10 Improvements are the alterations, modifications and improvements
                described on the Final Plans, which will be constructed pursuant
                to this Improvement Agreement.

         1.1.11 Landlord's Representative is Steven R. Keeling (619-558-7905) or
                such other person as the Landlord shall designate in writing to
                Tenant as its authorized representative for the purpose of
                administering this Improvement Agreement.

         1.1.12 Permits are following permits, approvals, and consents of
                governmental authorities and third parties having jurisdiction
                over the work, which are required for commencement and
                completion of the Improvements.

         1.1.13 Tenant's Design Requirements is a written general description of
                the Tenant's desired Improvements, which includes:

                (1) design program;
                (2) preliminary space plan; and
                (3) any other information needed by the Architect(s) for
                    preparation of plans and specification for the Improvements.

         1.1.14 Tenant's Representative is Roger O'Neil (213-613-3549) or such
                other person, as the Tenant shall designate in writing to
                Landlord as its authorized representative for the purposes of
                administering this Improvement Agreement.

         1.1.15 Tenant's Work is the construction of all Improvements to the
                premises desired by the tenant and the installation of the
                Tenant's trade fixtures, furnishings, and equipment in the
                Premises.

         1.1.16 Separate Metering: Tenant shall be responsible for the cost of
                providing separate utility metering for the Premises. Said cost
                may be paid out of the Tenant Improvement Allowance.

                                   SECTION 2
                         DESIGNATION OF REPRESENTATIVE

   2.1  Designation of Representative. Landlord and Tenant hereby respectively
appoint the Landlord's Representative and the Tenant's Representative as its
sole representative for the purpose of this Improvement Agreement. Until
replaced by written notice, the Landlord's Representative and the Tenant's
Representative will have the full authority and responsibility to act on behalf
of the Landlord and Tenant, respectively, as required in the Improvement
Agreement.

   /s/ SK                       Page 2 of 6                          /s/ MB
-------------------                                            -----------------
Landlord's Initials                                            Tenant's Initials
<PAGE>

                                   SECTION 3
                         CONTRACT DOCUMENTS & PERMITS

    3.1  Retention of Architect(s) & Delivery of Tenant's Design Requirements.
         Tenant shall retain the Architect(s) (who shall be subject to the
         reasonable approval of Landlord) to prepare the plans and
         specifications for the Improvements. To facilitate timely commencement
         and completion of the Improvements, on or before the date specified,
         Tenant shall deliver to Landlord for Landlord's approval the Tenant's
         Design Requirements, Landlord shall approve or disapprove the Tenant's
         Design as soon as reasonably possible. Landlord will pay for Tenant's
         space planner/architect to perform a test plan on the building at a
         cost not to exceed One Thousand Eight Hundred Dollars ($1,800.00)

    3.2  Preparation & Approval of Final Plans. Immediately following approval
         of Tenant's Design Requirements by Landlord, Tenant shall cause the
         Architect(s) to prepare and deliver to Landlord proposed Final Plans,
         which conform to the Tenant's Design Requirements, for completion of
         such items by the Architect(s). Landlord shall review the Final Plans
         and deliver to Tenant Landlord's written approval or disapproval
         thereof, if disapproved in any respect, the parties shall confer and
         negotiate in good faith to reach written agreement on the Final Plans,
         using all reasonable efforts to achieve final agreement on such
         items(s). Both parties shall initial each page of the approved Final
         Plans.

         The approvals required of Landlord by Sections 3.1 and 3.2 shall not be
         unreasonably withheld conditioned or delayed (within five (5) business
         days of receipt); provided, however, that Landlord may withhold its
         approval in its sole discretion to any work which affects the building
         structure, roof or building service equipment, is visible from the
         exterior of the Premises.

         Any disapproval by Landlord shall be accompanied by a written statement
         of the disapproved item and the reasons for disapproval. If Landlord's
         written notice of disapproval is not delivered in accordance with the
         limits and standards set forth in Sections 3.1 or 3.2, as the case may
         be, approval shall be deemed given.

    3.3  Application For Approvals. When the Final Plans are approved by
         Landlord, Tenant shall submit them to all appropriate governmental
         agencies and third parties for issuance of the Permits required for the
         construction of the Improvements. Tenant shall use all reasonable
         efforts to obtain the Permits within the time permitted. Landlord shall
         not be responsible for any delay or denial of a Permit.

    3.4  Changes to Final Plans. The Final Plans, and other Construction
         Documents may be modified only by a written "Change Order" and executed
         by Landlord and Tenant, which clearly describes (i) the change, and
         (ii) the cost of the change. Landlord' consent to any change requested
         by Tenant may be withheld in its reasonable discretion.

    3.5  Delay in Design Schedule, Inability to Obtain Permits, and Construction
         Cost in Excess of Allowance. Landlord shall have no liability to Tenant
         for any inability to obtain a Permit.

                                   SECTION 4
                            PERFORMANCE OF THE WORK

    4.1  Selection of Contractor(s) and Suppliers. Construction of the
         Landlord's Work, if any, shall be performed under the direction of
         Landlord by Contractor(s) selected by Landlord. Tenant shall enter into
         construction contract(s) with its Contractor(s). Notwithstanding
         selection or approval of the Contractor(s) or the construction
         contract(s), no Contractor of Tenant shall have any right or remedy
         against Landlord. Construction of the Tenant's Work shall be performed
         under the direction of Tenant by Contractor(s) selected by Tenant and
         approved by Landlord, which approval shall not be unreasonably
         withheld.

    4.2  Standard for Performance of the Work. Tenant shall cause the Tenant's
         Work to be constructed by well trained, adequately supervised workers,
         in a good and workmanlike manner, free from design material and
         workmanship defects in accordance with all Construction Documents and
         all Applicable Laws and Restrictions. Tenant shall comply, and shall
         cause its Contractor(s) to comply with the rules and regulations
         reasonably promulgated by Landlord for the performance and scheduling
         of the Tenant's Work. In addition to its other rights and remedies,
         Landlord shall have the right to suspend any Tenant's Work which
         interferes with or delays other construction, or detracts from
         harmonious labor relations, in the building.

    4.3  Indemnity. Except for cases of gross negligence and willful misconduct
         on the part of Landlord, Tenant shall indemmnify, defend, and hold
         harmless Landlord from any liabilities,

   /s/ SK                         Page 3 of 6                        /s/ MB
-------------------                                            -----------------
Landlord's Initials                                            Tenant's Initials

<PAGE>

      claims, damage, costs and expenses of every type and nature to the extent
      arising out of or resulting from (i) any personal injury, property damage,
      or interference with Landlord's Work occurring during the performance of
      Tenant's Work, (ii) the negligent acts and omissions of the Tenant or its
      architect, general contractor, subcontractors, material suppliers, agents,
      or employees on or about the Premises during the course of the Tenant's
      Work, (iii) claims of lien of laborers or materialmen or others for work
      performed or materials or supplies furnished for Tenant or persons
      claiming under it, or (iv) a breach by Tenant of this Improvement
      Agreement.

                                   SECTION 5
                            COMPLETION OF THE WORK

5.1   Inspection. Landlord Representative and Landlord's Architect(s) shall have
      the right to enter Premises at all times for the purpose of inspecting the
      progress of the Tenant's Work.

5.2   Delay in Substantial Completion. Landlord shall have no liability
      whatsoever for delay in the construction of the Improvements.

5.3   Completion Guarantee. Landlord will require Tenant to provide a Completion
      Guarantee for "Tenant's Work" in a form acceptable to Landlord. This form
      may be a completion bond or similar instrument approved by Landlord and
      must be provided to Landlord prior to the commencement of construction by
      Tenant.

                                   SECTION 6
                         PAYMENT OF CONSTRUCTION COST

6.1   Duty to Pay Construction Cost. Tenant shall bear their own cost for
      performance of their obligations under this Improvement Agreement, except
      Landlord shall pay the Construction Cost of the Tenant's Work, up to an
      amount equal to the Tenant Improvement Allowance, and such additional
      costs that are the obligation of the Landlord per the Lease Agreement.
      Tenant shall pay the remainder of such Construction Cost.

6.2   Method For Reimbursement of Construction Cost of Tenant's Work. The sums
      Landlord will pay to Tenant under this Improvement Agreement for Tenant's
      Work shall be paid as follows: Tenant shall contract directly with the
      selected contractor and receive invoices and billings directly from them.
      After Tenant has reviewed and approved said invoices and billings, they
      will then submit the invoices and billings to the Landlord on a monthly
      basis for Landlord's review and approval. Landlord shall have thirty (30)
      days to review and approve said invoices and billings and make payment
      directly to Tenant's contractor. Landlord shall have the right to
      disapprove invoices should the work be incomplete.

6.3   Notice of Non-Responsibility. Tenant shall provide Landlord with at least
      ten (10) days prior written notice of the date for commencement of the
      Tenant's Work, in order to permit the Landlord to post, file and record
      such Notices of Non-Responsibility and other instruments as may be
      necessary to protect the Landlord and its property from claims by
      Contractor(s) for unpaid Construction Costs and other liabilities
      associated with the Tenant's Work.

6.4   Liens. Tenant shall not permit any mechanic's, materialmen's or other
      liens to be filed against all or any part of the Project, the Site, the
      Building or the Premises, nor against Tenant's leasehold interest in the
      Premises, by reason of or in connection with any repairs, alterations,
      improvements or other work contracted for or undertaken by Tenant or any
      other act or omission of Tenant or Tenant's agent's, employees,
      contractors, licenses or invitees. Tenant shall, at Landlord's request,
      provide Landlord with enforceable, unconditional and final lien releases
      (and other evidence reasonably requested by Landlord to demonstrate
      protection from liens) from all persons furnishing labor and/or materials
      with respect to the Premises. Landlord shall have the right at all
      reasonable times to post on the Premises and record any notices of non-
      responsibility, which it deems necessary for protection from such liens.
      If any such liens are filed, Tenant shall at its sole cost immediately
      cause such lien to be release of record of bondhold to Landlord's
      reasonable satisfaction so that it no longer affects title to the Project,
      the Site, the Building or the Premises. If Tenant fails to cause such lien
      to be released or bonded within twenty (20) days after thereof, Landlord
      may, without waiving its rights and remedies based on such breach, and
      without releasing Tenant from any of its obligations, cause such lien to
      be released by any means it shall deem proper, including payment in
      satisfaction of the claim giving rise to such lien. Tenant shall pay to
      Landlord within five (5) days after receipt of invoice from Landlord, any
      sum paid by Landlord to remove such liens, together with interest at the
      Interest Rate from the date of such payments by Landlord.

       /s/ SK                      Page 4 of 6                      /s/ MB
___________________                                          ___________________
Landlord's Initials                                            Tenant's Initials
<PAGE>

                                   SECTION 7
                        REMOVAL OF TENANT IMPROVEMENTS

7.1   Removal of Alterations and Tenant Improvements. Except for the Tenant
      Improvements constructed by Tenant which shall remain in the Premises, all
      Alterations required by Landlord to be removed by Tenant at the time
      Landlord provided Tenant with Landlord's consent to a Tenant Alteration
      (or, in the event of a Pre-Approved Alteration (not requiring Landlord's
      consent), at the time Landlord approves Tenant's plans and specifications
      regarding such Pre-Approved Alteration), shall be removed by Tenant upon
      the expiration of this lease. If Tenant is required to remove any such
      items as described above, Tenant shall, as its sole cost, remove the
      identified items on or (or, at Landlord's option, shall pay to Landlord
      all of Landlord's costs of such removal and repair.)

7.2   Removal of Personal Property. All articles of personal property owned by
      Tenant or installed by Tenant at its expense in the Premises shall be and
      remain (including business and trade fixtures, furniture and moveable
      partitions) the property of Tenant, and shall be removed by Tenant from
      the Premises, at Tenant's sole cost and expense, on or before the
      expiration or sooner termination of this lease. Tenant shall promptly
      repair any damage caused by such removal.

7.3   Tenant's Failure to Remove. If Tenant fails to remove, by the expiration
      or sooner termination of this lease, all of its personal property or any
      items of Tenant Improvements or Tenant Alterations identified by Landlord
      for removal pursuant to Section 7.1 above, or if Tenant fails to comply
      with its obligations under Section 7.2, Landlord may, at its option, treat
      such failure as a holdover and/or may (without liability to Tenant for
      loss thereof, at Tenant's sole cost and in addition to Landlord's other
      rights and remedies under this Lease, at law or in equity: (a) remove and
      store such items as private or public sale for such price as Landlord may
      obtain as permitted under applicable law. Landlord shall apply the
      proceeds of any such sale to any amounts due to Landlord under this Lease
      from Tenant (including Landlord's attorneys' fees and other costs incurred
      in the removal, storage and/or sale of such items), with any remainder to
      be paid to Tenant.

                                   SECTION 8
                                 SCOPE OF WORK

8.0   Lease Commencement and Occupancy. The lease term shall commence upon
      completion of Tenant Improvements, but no later than one hundred five
      (105) days after Landlord has delivered the Premises to Tenant for the
      purposes of Tenant Improvement construction. The actual date shall be
      documented in writing by both parties, however, it is anticipated to be on
      or before December 1, 1998.

      (i)    Tenant, along with its contractor's, subcontractor's, agents, etc,
             shall be permitted to enter Tenant's premises at any time prior to
             the anticipated commencement with no obligation to pay rent for the
             purpose of installing furniture, fixtures, equipment, leasehold
             improvements.

      (ii)   During such early occupancy, all terms and conditions of the lease
             shall be in full force and effect.

                                   SECTION 9
                               SECURITY DEPOSIT

9.0   Security Deposit. Upon lease execution, Tenant shall provide Landlord with
      a Security Deposit equal to the following amounts:

      (i)     One (1) month's rent (Thirty-Three Thousand Dollars [$33,000.00]).

      (ii)    Tenant will obtain, and make effective, a Letter of Credit equal
              to two (2) months' rent, if the aggregate of its Cash Reserves
              (cash, cash equivalents, and short-term investments) shall fall
              below Five Million Dollars ($5,000,000.00). Tenant may terminate
              such Letter of Credit, if effective, at any time if Tenant's Cash
              Reserves are equal to, or exceed, Five Million Dollars
              ($5,000,000.00) for three (3) consecutive months.

      (iii)   Tenant shall provide Landlord with internal quarterly financial
              statements as well as the audited annual financial statement.

       /s/ SK                      Page 5 of 6                      /s/ MB
___________________                                          ___________________
Landlord's Initials                                            Tenant's Initials
<PAGE>

                                  SECTION 10
                 OWNERSHIP OF SPECIALIZED TENANT IMPROVEMENTS

10.0      Ownership of Specialized Tenant Improvements. So long as Tenant is not
          in default of this Lease at the termination of the Lease and/or
          applicable extension options, Tenant shall have the right to remove
          from the Premises any specialized Tenant Improvements paid for and
          installed by Tenant, so long as Tenant repairs any damage resulting
          from such removal, and provides Landlord with a list of said
          improvements which they potentially intend to remove at the
          termination of the Lease. This list must be provided to Landlord in
          writing prior to the installation of any specialized equipment that
          shall become attached to the Building and may be perceived as part of
          the Tenant Improvements to the Building.

                                  SECTION 11
                       VACATION OF PREMISES BY LANDLORD

11.0      Vacation of Premises by Landlord: Landlord will vacate the Subject
          Premises on or before September 1, 1998, provided Tenant delivers to
          Landlord by August 1, 1998 an executed Lease, along with the first
          month's rent and the Security Deposit. Landlord will use its best
          efforts to vacate the Subject Premises in the timeliest fashion
          possible. If Landlord has not vacated the Subject Premises by
          September 10, 1998, then Tenant shall have the right to terminate this
          Lease.

                                  SECTION 12
                            RIGHT OF FIRST REFUSAL

12.0      Should Landlord sign a Letter of Intent to lease the space adjacent to
          Tenant's Premises, Landlord shall grant Tenant a Right of First
          Refusal to lease the space under the same terms and conditions as the
          Letter of Intent. Tenant shall have five (5) business days from the
          time they are presented the terms and conditions of the signed Letter
          of Intent to notify the Landlord of their intent to execute their
          First Right of Refusal. Tenant shall take the space under the same
          terms and conditions as the signed Letter of Intent, including Base
          Rent, Tenant Improvements, Base Rent Increases, Security Deposit,
          Term, and other pertinent deal points. Should Tenant elect not to
          exercise this First Right of Refusal, and the transaction contemplated
          thereunder does not occur, then Tenant shall have an ongoing First
          Right of Refusal. Once the space has been leased, Tenant shall no
          longer have any rights to the adjacent Properties.

       /s/ SK                      Page 6 of 6                      /s/ MB
___________________                                          ___________________
Landlord's Initials                                            Tenant's Initials

<PAGE>

                                  ADDENDUM #1

ADDENDUM TO THAT CERTAIN INDUSTRIAL REAL ESTATE LEASE (MULTI-TENANT NET FORM)
DATED JUNE 1, 1998 BY AND BETWEEN STEVEN R. AND BARBARA A. KEELING, (LANDLORD)
AND LXN CORPORATION, A DELAWARE CORPORATION, (TENANT) FOR THE BUILDING LOCATED
AT 6325 LUSK BOULEVARD, SAN DIEGO CALIFORNIA, 92121. TO THE EXTENT THAT THE
PROVISIONS OF THIS ADDENDUM ARE INCONSISTENT WITH THE TERMS AND CONDITIONS OF
THE LEASE, THE PROVISIONS OF THIS ADDENDUM SHALL CONTROL.

--------------------------------------------------------------------------------

                                  SECTION 13
                   ADDITIONAL TENANT IMPROVEMENT ALLOWANCE

13.0      Additional Tenant Improvement Allowance. Tenant shall utilize the
          additional Five and No/100ths Dollars ($5.00) per square foot for
          tenant improvements as stipulated in Section 1.1.1 of the Additional
          Terms Rider. The additional tenant improvement allowance will be
          amortized over the term of the lease at the rate of ten percent (10%).
          Therefore, Landlord shall provide Tenant with a tenant improvement
          allowance of Twenty Five and No/100th Dollars ($25.00) per square foot
          for a total of Seven Hundred Ninety Six Thousand Two Hundred Twenty
          Five and no/100ths Dollars ($796,225.00).

                                  SECTION 14
                            INCREASE IN RENTAL RATE

14.0      Increase in Rental Rate. The first year Rental Rate shall be increased
          to $1.205 per square foot or Thirty-eight Thousand Three Hundred,
          Seventy-eight Dollars and Four Cents ($38,378.04) per month,
          reflecting Tenant's additional improvement allowance of Five and
          No/100th Dollars ($5.00) per square foot. This additional payment
          shall be treated as Base Rent and be subject to the same terms and
          conditions thereof.

/s/ Steven R. Keeling                          9/10/98
_________________________________      _______________________
Steven R. Keeling (LANDLORD)           Date

/s/ Barbara A. Keeling                         9/10/98
_________________________________      _______________________
Barbara A. Keeling (LANDLORD)          Date

LXN Corporation, a Delaware Corporation
(TENANT)

    /s/ Randy Nelson                           9/8/98
By: _____________________________      _______________________
    President & CEO                    Date

                                  Page 1 of 1
<PAGE>

                                Leased Premises

                       [DIAGRAM OF THE LEASED PREMISES]

                  LXN 3,960 SQ FT       REMAINDER 6,023 SQ FT
                    +   111.5                   +    91
                    +   100
                      ===========                 ===========
                    * 4,172 SF                    6,114 SF

                  *Second floor includes an additional 1,935
                   square feet of mezzanine area for a total
                   of 6,107 square feet.

                                                                          /s/ MB
                                                                          /s/ SK
<PAGE>

                                Leased Premises

                       [DIAGRAM OF THE LEASED PREMISES]

          FIRST FLOOR           * LXN 25,558 SF      OTHER 11,639 SF

              *First Floor includes an additional 184 square feet
               for Tenant's pro rata share of the telephone and
               electric room, for a total of 25,742 square feet.
<PAGE>

                                  ADDENDUM #2

ADDENDUM TO THAT CERTAIN INDUSTRIAL REAL ESTATE LEASE (MULTI-TENANT NET FORM)
DATED JUNE 1, 1998 BY AND BETWEEN STEVEN R. AND BARBARA A. KEELING (LANDLORD)
AND LXN CORPORATION, A DELAWARE CORPORATION (TENANT) FOR THE BUILDING LOCATED AT
6325 LUSK BOULEVARD, SAN DIEGO CALIFORNIA, 92121. TO THE EXTENT THAT THE
PROVISIONS OF THIS ADDENDUM ARE INCONSISTENT WITH THE TERMS AND CONDITIONS OF
THE LEASE AND PREVIOUS ADDENDA, THE PROVISIONS OF THIS ADDENDUM SHALL CONTROL.

--------------------------------------------------------------------------------

                                  SECTION 15
               ADDITIONAL EXTERIOR TENANT IMPROVEMENT ALLOWANCE

15.0      Additional Tenant Improvement Allowance. Tenant shall utilize the
          additional Fifty Thousand and No/100ths Dollars ($50,000.00) for
          exterior tenant improvements as stipulated in Section 1.1.2 of the
          Additional Terms Rider. The additional tenant improvement allowance
          will be amortized over the term of the lease at the rate of ten
          percent (10%). Therefore, Landlord shall provide Tenant with a total
          tenant improvement allowance of Eight Hundred Forty-six Thousand Two
          Hundred Twenty-five Dollars ($846,225.00). Any unused portion of the
          Fifty Thousand Dollars ($50,000.00) will be credited toward Tenant's
          portion of the tenant improvement costs.

                                  SECTION 16
                            INCREASE IN RENTAL RATE

16.0      Increase in Rental Rate. The first year Rental Rate shall be increased
          to $1.24 per square foot or Thirty-nine Thousand Four Hundred Ninety-
          two Dollars and Seventy-six Cents ($39,492.76) per month, reflecting
          Tenant's additional improvement allowance of Fifty Thousand Dollars
          ($50,000.00). This additional payment shall be treated as Base Rent
          and be subject to the same terms and conditions thereof.

/s/ Steven R. Keeling
_______________________________        _______________________
Steven R. Keeling (LANDLORD)           Date

_______________________________        _______________________
Barbara A. Keeling (LANDLORD)          Date

LXN Corporation, a Delaware Corporation
(TENANT)

    /s/ Michael A. Beeuwsaert                  11/10/98
By: ___________________________        _______________________
               CFO                     Date

                                  Page 1 of 1<PAGE>

                                                                   EXHIBIT 10.14

                                   EXECUTIVE
                          SEVERANCE BENEFITS AGREEMENT

     THIS EXECUTIVE SEVERANCE BENEFITS AGREEMENT (the "AGREEMENT") is entered
into this 5th day of October, 2000 (the "Effective Date"), between MICHAEL
BEEUWSAERT ("EXECUTIVE") and LXN CORPORATION (the "COMPANY"). This Agreement is
intended to provide Executive with the compensation and benefits described
herein upon the occurrence of specific events.  Certain capitalized terms used
in this Agreement are defined in Article 4.

     The Company and Executive hereby agree as follows:

                                   ARTICLE 1

                 SCOPE OF AND CONSIDERATION FOR THIS AGREEMENT

     1.1  Executive is currently employed by the Company.

     1.2  The Company and Executive wish to set forth the compensation and
benefits which Executive shall be entitled to receive in the event Executive's
employment with the Company is terminated under the circumstances described
herein.

     1.3  The duties and obligations of the Company to Executive under this
Agreement shall be in consideration for Executive's past services to the
Company, Executive's continued employment with the Company, and Executive's
execution of a release in accordance with Section 3.1.

     1.4  This Agreement shall supersede any other agreement relating to cash
severance benefits, health benefits and stock option vesting in the event of
Executive's termination of employment with the Company.

                                   ARTICLE 2

                               SEVERANCE BENEFITS

     2.1  SEVERANCE BENEFITS.  A Covered Termination (as defined in Article 4)
entitles Executive to receive the following benefits set forth in Sections 2.2,
2.3, 2.4, and 2.5.

     2.2  SEVERANCE PAYMENT. Executive shall receive a severance payment equal
to twelve (12) months of his Base Salary plus the amount of the bonus Executive
received during the year prior to the Covered Termination. Such payment shall be
subject to all required tax withholding and shall be paid in a lump sum upon the
Executive's compliance with Section 3.1 herein.

                                       1
<PAGE>

     2.3 HEALTH BENEFITS. Provided that Executive elects continued coverage
under federal COBRA law, the Company shall pay the premiums of Executive's group
health insurance coverage, including coverage for Executive's eligible
dependents, for a maximum period of twelve (12) months following a Covered
Termination; provided, however, that (i) the Company shall pay premiums for
Executive's eligible dependents only for coverage for which those eligible
dependents were enrolled immediately prior to the Covered Termination and (ii)
the Company's obligation to pay such premiums shall cease immediately upon
Executive's eligibility for comparable group health insurance provided by a new
employer of Executive. No premium payments will be made following the effective
date of Executive's coverage by a health insurance plan of a subsequent
employer. For the balance of the period that Executive is entitled to coverage
under federal COBRA law, if any, Executive shall be entitled to maintain such
coverage at Executive's own expense.

     2.4 MITIGATION. Except as otherwise specifically provided herein, Executive
shall not be required to mitigate damages or the amount of any payment provided
under this Agreement by seeking other employment or otherwise, nor shall the
amount of any payment provided for under this Agreement be reduced by any
compensation earned by Executive as a result of employment by another employer
or by any retirement benefits received by Executive after the date of the
Covered Termination.

     2.5 TERMINATION OF COMPANY'S OBLIGATIONS. Notwithstanding any provisions in
this Agreement to the contrary, the Company's obligations, and Executive's
rights pursuant to Sections 2.2 and 2.3 herein, regarding salary continuation
and the payment of COBRA premiums, shall cease and be rendered a nullity
immediately should Executive fail to comply with the provisions of the
Executive's Proprietary Information & Inventions Agreement with the Company, a
copy of which is attached hereto as Exhibit B, or if Executive directly or
indirectly competes with the Company.

                                       2
<PAGE>

                                   ARTICLE 3

                     LIMITATIONS AND CONDITIONS ON BENEFITS

     3.1  RELEASE PRIOR TO PAYMENT OF BENEFITS. Upon the occurrence of a Covered
Termination, and prior to the payment of any benefits under this Agreement on
account of such Covered Termination, Executive shall deliver to the Company an
effective release (the "Release") in the form attached hereto and incorporated
herein as Exhibit A. Such Release shall specifically relate to all of
Executive's rights and claims in existence at the time of such execution and
shall confirm Executive's obligations under the Company's standard form of
proprietary information and inventions agreement. It is understood that, as
specified in the applicable Release, Executive has a certain number of calendar
days to consider whether to execute such Release, and if Executive is 40 when he
executes the Release, Executive may revoke such Release within seven (7)
calendar days after execution. In the event Executive does not execute such
Release within the applicable period, or if Executive revokes such Release
within the subsequent seven (7) day period, no benefits shall be payable under
this Agreement, and this Agreement shall be null and void.

     3.2  TERMINATION OF BENEFITS. Benefits under this Agreement shall terminate
immediately if the Executive, at any time, violates any proprietary information
or confidentiality obligation to the Company.

     3.3  NON-DUPLICATION OF BENEFITS. Executive is not eligible to receive
benefits under this Agreement more than one time.

                                   ARTICLE 4

                                  DEFINITIONS

     For purposes of the Agreement, the following terms are defined as follows:

     4.1  "BASE SALARY" means Executive's annual base salary as in effect during
the last regularly scheduled payroll period immediately preceding the Covered
Termination.

     4.2  "BOARD" means the Board of Directors of the Company.

     4.3  "CAUSE" means that, in the reasonable determination of the Company or,
in the case of the Chief Executive Officer, the Board, Executive:

          (a) has committed an act that materially injures the business of the
Company;

          (b) has refused or failed to follow lawful and reasonable directions
of the Board or the appropriate individual to whom Executive reports;

          (c) the Executive's repeated failure to satisfactorily perform the
Executive's job duties after a minimum of thirty (30) days written notice of
such deficiency and an opportunity to cure; or

                                       3
<PAGE>

          (d) has been convicted of a felony involving moral turpitude that is
likely to inflict or has inflicted material injury on the business of the
Company.

     4.4  "CONSTRUCTIVE TERMINATION" means the occurrence of any of the
following events without the Executive's express written consent:

          (a) a substantial dimunition in the nature, status or prestige of the
Employee's responsibilities, title or reporting level as they exist on the
Effective Date of this Agreement;

          (b) the relocation of the Company's executive offices or principal
business location to a point more than thirty (30) miles from the San Diego,
California area;

          (c) a reduction by the Company of the Executive's base Salary as
initially set forth herein or as the same may be increased from time to time;

          (d) any action by the Company (including the elimination of benefit
plans without providing substitutes thereof or the reduction of the Executive's
benefits thereunder) that would substantially diminish the aggregate value of
the Executive's fringe benefits as they exist at such time;

          (e) a failure by the Company to obtain from any successor, before the
succession takes place, an agreement to assume and perform all of the terms and
conditions of this Agreement.

     4.5  "COVERED TERMINATION" means an Involuntary Termination Without Cause
or a Constructive Termination.

     4.6  "INVOLUNTARY TERMINATION WITHOUT CAUSE" means Executive's dismissal or
discharge other than for Cause.  The termination of Executive's employment as a
result of Executive's death or disability will not be deemed to be an
Involuntary Termination Without Cause.

                                   ARTICLE 5

                               GENERAL PROVISIONS

     5.1  EMPLOYMENT STATUS; EMPLOYMENT AGREEMENT SUPERSEDED. This Agreement
does not constitute a contract of employment or impose upon Executive any
obligation to remain as an employee, or impose on the Company any obligation (i)
to retain Executive as an employee, (ii) to change the status of Executive as an
at-will employee, or (iii) to change the Company's policies regarding
termination of employment. In the event of any conflict between the provisions
of this Agreement and the provisions of any other previously existing
employment, severance or other similar agreement, then the provisions of this
Agreement shall govern.

     5.2  NOTICES.  Any notices provided hereunder must be in writing, and such
notices or any other written communication shall be deemed effective upon the
earlier of personal delivery (including personal delivery by facsimile) or the
third day after mailing by first class mail, to the

                                       4
<PAGE>

Company at its primary office location and to Executive at Executive's address
as listed in the Company's payroll records. Any payments made by the Company to
Executive under the terms of this Agreement shall be delivered to Executive
either in person or at the address as listed in the Company's payroll records.

     5.3  SEVERABILITY. Whenever possible, each provision of this Agreement will
be interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement is held to be invalid, illegal or
unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision or any other jurisdiction, but this Agreement will be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provisions had never been contained herein.

     5.4  WAIVER. If either party should waive any breach of any provisions of
this Agreement, he or it shall not thereby be deemed to have waived any
preceding or succeeding breach of the same or any other provision of this
Agreement.

     5.5  ARBITRATION. Unless otherwise prohibited by law or specified below,
all disputes, claims and causes of action, in law or equity, arising from or
relating to this Agreement or its enforcement, performance, breach, or
interpretation shall be resolved solely and exclusively by final and binding
arbitration held in San Diego County, California through Judicial Arbitration &
Mediation Services/Endispute ("JAMS") under the then existing JAMS arbitration
rules. However, nothing in this section is intended to prevent either party from
obtaining injunctive relief in court to prevent irreparable harm pending the
conclusion of any such arbitration. Each party in any such arbitration shall be
responsible for its own attorneys' fees, costs and necessary disbursement;
provided, however, that in the event one party refuses to arbitrate and the
other party seeks to compel arbitration by court order, if such other party
prevails, it shall be entitled to recover reasonable attorneys' fees, costs and
necessary disbursements. Pursuant to California Civil Code Section 1717, each
party warrants that it was represented by counsel in the negotiation and
execution of this Agreement, including the attorneys' fees provision herein.

     5.6  COMPLETE AGREEMENT. This Agreement, including Exhibit A, constitutes
the entire agreement between Executive and the Company and is the complete,
final, and exclusive embodiment of their agreement with regard to this subject
matter, wholly superseding all written and oral agreements with respect to cash
severance benefits and health benefits to Executive in the event of employment
termination. It is entered into without reliance on any promise or
representation other than those expressly contained herein. This Agreement does
not supercede the Proprietary Information & Inventions Agreement, a copy of
which is attached hereto as Exhibit B.

     5.7  AMENDMENT OR TERMINATION OF AGREEMENT. This Agreement may be changed
or terminated only upon the mutual written consent of the Company and Executive.
The written consent of the Company to a change or termination of this Agreement
must be signed by an executive officer of the Company after such change or
termination has been approved by the Board.

                                       5
<PAGE>

     5.8  COUNTERPARTS. This Agreement may be executed in separate counterparts,
any one of which need not contain signatures of more than one party, but all of
which taken together will constitute one and the same Agreement.

     5.9  HEADINGS. The headings of the Articles and Sections hereof are
inserted for convenience only and shall not be deemed to constitute a part
hereof nor to affect the meaning thereof.

     5.10 SUCCESSORS AND ASSIGNS. This Agreement is intended to bind and inure
to the benefit of and be enforceable by Executive, and the Company, and any
surviving entity resulting from a Change in Control and upon any other person
who is a successor by merger, acquisition, consolidation or otherwise to the
business formerly carried on by the Company, and their respective successors,
assigns, heirs, executors and administrators, without regard to whether or not
such person actively assumes any rights or duties hereunder; provided, however,
that Executive may not assign any duties hereunder and may not assign any rights
hereunder without the written consent of the Company, which consent shall not be
withheld unreasonably.

     5.11 CHOICE OF LAW. All questions concerning the construction, validity and
interpretation of this Agreement will be governed by the law of the State of
California, without regard to such state's conflict of laws rules.

     5.12 NON-PUBLICATION. The parties mutually agree not to disclose publicly
the terms of this Agreement except to the extent that disclosure is mandated by
applicable law or to respective advisors (e.g., attorneys, accountants).

     5.13 CONSTRUCTION OF AGREEMENT. In the event of a conflict between the text
of the Agreement and any summary, description or other information regarding the
Agreement, the text of the Agreement shall control.

     IN WITNESS WHEREOF, the parties have executed this Agreement on the
Effective Date written above.

LXN CORPORATION                           MICHAEL BEEUWSAERT

By: /s/ Signature                         /s/ Michael Beeuwsaert
   ----------------------------           ----------------------------
Name:
     --------------------------
Title:
      -------------------------

Exhibit A:  Release (Individual Termination)

                                       6
<PAGE>

                                   EXHIBIT A

                                    RELEASE

     Certain capitalized terms used in this Release are defined in the Executive
Severance Benefits Agreement (the "Agreement") which I have executed and of
which this Release is a part.

     I hereby confirm my obligations under the Company's proprietary information
and inventions agreement.

     I acknowledge that I have read and understand Section 1542 of the
California Civil Code which reads as follows: "A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT
THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY
AFFECTED HIS SETTLEMENT WITH THE DEBTOR." I hereby expressly waive and
relinquish all rights and benefits under that section and any law of any
jurisdiction of similar effect with respect to my release of any claims I may
have against the Company.

     Except as otherwise set forth in this Release, I hereby release, acquit and
forever discharge the Company, its parents and subsidiaries, and their officers,
directors, agents, servants, employees, shareholders, successors, assigns and
affiliates, of and from any and all claims, liabilities, demands, causes of
action, costs, expenses, attorneys fees, damages, indemnities and obligations of
every kind and nature, in law, equity, or otherwise, known and unknown,
suspected and unsuspected, disclosed and undisclosed (other than any claim for
indemnification I may have as a result of any third party action against me
based on my employment with the Company), arising out of or in any way related
to agreements, events, acts or conduct at any time prior to the date I execute
this Release, including, but not limited to: all such claims and demands
directly or indirectly arising out of or in any way connected with my employment
with the Company or the termination of that employment, including but not
limited to, claims of intentional and negligent infliction of emotional
distress, any and all tort claims for personal injury, claims or demands related
to salary, bonuses, commissions, stock, stock options, or any other ownership
interests in the Company, vacation pay, fringe benefits, expense reimbursements,
severance pay, or any other form of disputed compensation; claims pursuant to
any federal, state or local law or cause of action including, but not limited
to, the federal Civil Rights Act of 1964, as amended; the federal Age
Discrimination in Employment Act of 1967, as amended ("ADEA"); the federal
Employee Retirement Income Security Act of 1974, as amended; the federal
Americans with Disabilities Act of 1990; the California Fair Employment and
Housing Act, as amended; tort law; contract law; statutory law; common law;
wrongful discharge; discrimination; fraud; defamation; emotional distress; and
breach of the implied covenant of good faith and fair dealing; provided,
however, that nothing in this paragraph shall be construed in any way to release
the Company from its obligation to indemnify me pursuant to the Company's
indemnification obligation pursuant to agreement or applicable law.

                                       1
<PAGE>

     I acknowledge that I am knowingly and voluntarily waiving and releasing any
rights I may have under ADEA. I also acknowledge that the consideration given
under the Agreement for the waiver and release in the preceding paragraph hereof
is in addition to anything of value to which I was already entitled. I further
acknowledge that I have been advised by this writing, as required by the ADEA,
that: (A) my waiver and release do not apply to any rights or claims that may
arise on or after the date I execute this Release; (B) I have the right to
consult with an attorney prior to executing this Release; (C) I have twenty-one
(21) days to consider this Release (although I may choose to voluntarily execute
this Release earlier); and (D) if I am 40 or older at the time I execute this
Release, I have seven (7) days following the execution of this Release by the
parties to revoke the Release; and (E) if I am 40 or older at the time I execute
this Release, this Release shall not be effective until the date upon which the
revocation period has expired, which shall be the eighth day after this Release
is executed by me.

                                       MICHAEL BEEUWSAERT

                                       -----------------------------------

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

                                       2
<PAGE>

                                   EXHIBIT B

                 PROPRIETARY INFORMATION & INVENTIONS AGREEMENT

                                       3

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