1
                                                                   Exhibit 10.40

                        OAKLAND INTERNATIONAL AIRPORT





                                                                        FORM "A"
                                                   South Airport Tenant (A.O.A.)



Date:       August 1, 1989
      --------------------------




             Ref:  -  Lease Agreement/Right of Entry Between Port
                      of Oakland and Tenant/Lessee
                   -  FAR 107.11(B)
                   -  M.O.I.A. Security Program dated 5/1/88


                     "EXCLUSIVE AREA SECURITY AGREEMENT"

This letter serves as an agreement between Federal Express Corporation 
("Federal Express") and the Port of Oakland.  The purpose of this agreement is 
to identify the "Restricted Area(s)" and "Air Operations Area(s)" of the (AOA)
as associated access points for which Federal Express agrees herein to
exercise exclusive security responsibility under the Metropolitan Oakland
International Airport Security Program, and the F.A.R. 107.11B.  A copy of
the Federal Express exclusive area is depicted on Tab "T" of the M.O.I.A.
Security Manual and identified as those doors and/or gates of the AOA/or
restricted areas which borders Bldg. 119; all doors, thoroughfares and ramp
area(s) adjacent to the building complex, Gates #C-5 and C-6____________________
________________________________________________________________________________
________________________________________________________________________________
associated with leased facilities.  The procedures implemented by Federal 
Express to secure these AOA'(s) or Restricted Area(s) in accordance with the 
M.O.I.A. Security Program are also described below:

1.       For that portion of the AOA which borders all doors and/or
         thoroughfare(s) of Building M-119 and the associated ramp, Federal 
         Express personnel will control access to this AOA by locking all 
         doors when unattended.  All personnel entries into exclusive area via 
         Building M-119 will be subjected to the exclusive control of Federal 
         Express Personnel access beyond "exclusive areas" onto common use 
         AOA's will be first established by positive identification and 
         authorized access certification as outlined in, Section 404 of the 
         M.O.I.A. Security Program.

2.       Federal Express agrees to control the movement of persons within its 
         exclusive area by the posting of signs and necessary surveillance as 
         required to maintain compliance with Section 404 of the M.O.I.A. 
         Security Program.

3.       Federal Express will ensure that "back ground check(s)" are 
         accomplished and that current records are maintained in accordance 
         with Section 404.A3 and B of the M.O.I.A. Security Manual.

4.       Federal Express agrees to maintain a current manifest of personnel 
         having authorized airport I.D. Access Badges and will promptly
         notify the Airport Manager or his delegated representative of any
         assigned I.D. Badge deemed out of control due to termination of
         employee, loss of I.D. badge(s), etc.

5.       Federal Express personnel will challenge all persons within or 
         adjacent to their exclusive use area(s) not recognized as authorized 
         presence within the AOA (Re:
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"EXCLUSIVE AREA SECURITY AGREEMENT"
FORM "A" South Airport Tenant (continued)



         404 of the M.O.I.A. Security Program) and promptly report them to
         airport management (i.e., Airport Operations Control Center).

6.       Federal Express will immediately notify the Airport Manager or his 
         designated representative each time a suspicious act is observed or 
         an unresolved question arises concerning airport security.

7.       Federal Express will promptly notify the Airport Manager or his 
         designated representative when the procedures described herein are 
         not adequate to perform the control function as stated.

8.       Federal Express personnel and/or representative(s) when utilizing 
         common use passenger gates/doors which affords access onto the
         AOA (i.e., loading bridges, baggage carousel(s), baggage door
         portals, etc.) will secure common use doors immediately upon
         completion of aircraft/passenger operations and will ensure that
         common use gates and/or doors are not left unattended while open
         during aircraft/passenger operation details.

9.       Federal Express personnel and/or representative(s) when escorting 
         (i.e., sponsoring and/or facilitating) cargo operations within
         the common use area(s) of the AOA will control movement of person by
         abiding by the personnel identification rules as outlined in section
         404 of the M.O.I.A. Security Program.

10.      Federal Express will ensure compliance with vehicle access I.D. 
         program (Positive Identification) for company and/or contract
         service vehicle(s) while within/on the AOA.

11.      Federal Express agrees to control the movement of persons sponsored 
         and/or escorted onto the A.O.A. as required and to maintain
         compliance with Section 404 of the M.O.I.A. Security Program.

              Federal Express shall promptly reimburse the Port the amount of
              any civil penalty or fine that may be assessed against the Port
              by any governmental agency for violation of airport security
              rules or regulations which violation is caused by Federal Express
              failure to comply with "Exclusive Area Security Agreement."


- ------------------------                   ----------------------------------
      Date                                 Airline Station Manager/Tenant


    08/10/89                                /s/ BEN BETANCOUNT
- ------------------------                   ----------------------------------
      Date                                       Airport Manager

Attachment                                 FEDERAL EXPRESS CORPORATION

                                           BY: /s/ GILBERT MOOK
                                              -------------------------------

                                           TITLE:     VP
                                                 ----------------------------


cc:  M.O.I.A. Security Manual - Tab "T"
     Airport Properties Department
     Airport Tenant Chron File