With Allen wrench, loosen the locking pin under the handle and remove the cap unit. Using needle-nose pliers, tighten (clockwise) the top ring-seal down onto the ball valve. If that doesn't stop the leak (or if you have to tighten the ring so much that the ball is too stiff to operate), then replace the whole cartridge. Don't try to replace the ball seal rings, they're too delicate and too difficult to get aligned properly. In some cases, it's cheaper to just buy a new faucet.
Experienced Retiree, September 2009