<PAGE>
                                                               EXHIBIT 10.19
                                LEASE AGREEMENT


                                by and between


                           SHORELINE INVESTMENTS V,

                       a California general partnership,


                                  as LANDLORD



                                      and



                          CyberSource Corporation, a

                             Delaware corporation,


                                   as TENANT



                            for Premises located at

                             1295 Charleston Road

                            Mountain View, CA 94043
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
<S>                                                                         <C>
1.      Parties...........................................................   1

2.      Demise of Premises................................................   1

3.      Term..............................................................   1

4.      Rent..............................................................   2

        A.      Time of Payment...........................................   2
        B.      Monthly Installment.......................................   2
        C.      Late Charge...............................................   2
        D.      Additional Rent...........................................   3
        E.      Place of Payment..........................................   3
        F.      Advance Payment...........................................   3

5.      Security Deposit..................................................   3

6.      Use of Premises...................................................   4

7.      Taxes and Assessments.............................................   4

        A.      Tenant's Property.........................................   4
        B.      Property Taxes............................................   4
        C.      Other Taxes...............................................   6

8.      Insurance.........................................................   6

        A.      Indemnity.................................................   6
        B.      Liability Insurance.......................................   6
        C.      Property Insurance........................................   7
        D.      Tenant's Insurance; Release of Landlord...................   7
        E.      Mutual Waiver of Subrogation..............................   8

9.      Utilities.........................................................   8

10.     Repairs and Maintenance...........................................   8

        A.      Landlord's Repairs........................................   8
        B.      Tenant's Repairs..........................................   9

11.     Common Area.......................................................  10

12.     Common Area Charges...............................................  11

13.     Alterations.......................................................  12

14.     Acceptance of the Premises........................................  13

15.     Default...........................................................  13

        A.      Events of Default.........................................  13
        B.      Remedies..................................................  15
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                         <C>
16.     Destruction.......................................................  17

        A.      Landlord's Duty to Restore................................  17
        B.      Landlord's Right to Terminate.............................  18
        C.      Tenant's Right to Terminate...............................  19
        D.      Abatement of Rent.........................................  19

17.     Condemnation......................................................  20

        A.      Definition of Terms.......................................  20
        B.      Rights....................................................  20
        C.      Total Taking..............................................  20
        D.      Partial Taking............................................  20

18.     Mechanics' Lien...................................................  21

19.     Inspection of the Premises........................................  21

20.     Compliance with Laws..............................................  21

21.     Subordination.....................................................  21

        A.      Priority..................................................  22
        B.      Subsequent Security Instruments...........................  22
        C.      Documents.................................................  22
        D.      Tenant's Attornment.......................................  23
        E.      Lender....................................................  23

22.     Holding Over......................................................  23

23.     Notices...........................................................  23

24.     Attorney's Fees...................................................  24

25.     Nonassignment.....................................................  24

        A.      Landlord's Consent Required...............................  24
        B.      Transferee Information Required...........................  24

26.     Successors........................................................  25

27.     Mortgagee Protection..............................................  26

28.     Landlord Loan or Sale.............................................  26

29.     Surrender of Lease Not Merger.....................................  26

30.     Waiver............................................................  26

31.     General...........................................................  26

        A.      Captions..................................................  27
        B.      Definition of Landlord....................................  27
        C.      Time of Essence...........................................  27
        D.      Severability..............................................  27
        E.      Joint and Several Liability...............................  27
</TABLE>

                                      ii
<PAGE>

<TABLE>
<S>                                                                        <C>
        F.      Law.......................................................  27
        G.      Agent.....................................................  28
        H.      WAIVER OF JURY TRIAL......................................  28

32.     Sign..............................................................  28

33.     Interest on Past Due Obligations..................................  29

34.     Surrender of the Premises.........................................  29

35.     Authority.........................................................  29

36.     C.C. & R.'s.......................................................  29

37.     Brokers...........................................................  30

38.     Limitation on Landlord's Liability................................  30

39.     Hazardous Material................................................  31

        A.      Definitions...............................................  31
        B.      Permitted Use.............................................  31
        C.      Hazardous Materials Management Plan.......................  31
        D.      Use Restriction...........................................  33
        E.      Tenant Indemnity..........................................  33
        F.      Compliance................................................  34
        G.      Assignment and Subletting.................................  34
        H.      Surrender.................................................  34
        I.      Right to Appoint Consultant...............................  34
        J.      Holding Over..............................................  35
        K.      Provisions Survive Termination............................  35
        L.      Controlling Provisions....................................  35

40.     Interruption......................................................  35

41.     Quiet Possession..................................................  35

42.     Default by Landlord; Landlord's Liability.........................  36
</TABLE>

                                      iii
<PAGE>

                                LEASE AGREEMENT
                                ---------------

        1.    Parties. This Lease, dated for reference purposes as of November
              -------
3, 1999, is made by and between SHORELINE INVESTMENTS V, a California general
partnership ("Landlord"), and CyberSource Corporation, a Delaware corporation
("Tenant").

        2.    Demise of Premises. Landlord hereby leases to Tenant and Tenant
              ------------------
hereby leases from Landlord, upon the terms and conditions hereinafter set
forth, those certain premises (the "Premises") situated in the City of Mountain
View, County of Santa Clara, State of California, described as follows:
approximately seventy-two thousand (72,000) square feet of floor space commonly
known as 1295 Charleston Road, located in the building (the "Building"), as
shown cross-hatched on the site plan (the "Site Plan") attached hereto as
Exhibit "A". The Building is located on a parcel of land (the "Parcel")
containing other buildings (the Building and such other buildings are
hereinafter collectively referred to as the "Buildings") as shown on the Site
Plan, which Parcel is described in Exhibit "B" attached hereto. In the event
Landlord subdivides the Parcel in the future into two (2) or more legal parcels,
the term "Parcel" shall thereafter refer to the legal parcel on which the
Premises are located. Landlord shall not be required to make any alterations,
additions or improvements to the Premises and the Premises shall be leased to
Tenant in an "as-is" condition.

        3.    Term. The term of this Lease ("Lease Term") shall be for seven (7)
              ----
years, commencing on January 1, 2000 (the "Commencement Date") and ending on
December 31, 2006 unless sooner terminated pursuant to any provision hereof.
Notwithstanding said scheduled Commencement Date, if for any reason Landlord
cannot deliver possession of the Premises to Tenant on said date, Landlord shall
not be subject to any liability therefor, nor shall such failure affect the
validity of this Lease or the obligations of Tenant hereunder, but in such case
Tenant shall not be obligated to pay rent until possession of the Premises is
tendered to Tenant and the commencement and termination dates of this Lease
shall be revised to conform to the date of Landlord's delivery of possession.
Notwithstanding the foregoing, if Landlord has not delivered possession of the
Premises to Tenant on or before January 31, 2000, then Tenant shall have the
right to terminate this Lease by giving written notice of termination to
Landlord at any time after January 31, 2000, but prior to the time that Landlord
delivers possession of the Premises to Tenant. Upon giving of such notice of
termination by Tenant, this Lease shall terminate without liability of either
party to the other and Landlord shall return to Tenant any prepaid rent or
security deposit received by Landlord. Tenant's right to terminate this Lease as
provided above shall be Tenant's sole and exclusive remedy for Landlord's
failure to deliver possession of the Premises on or before January 31, 2000 or
any other date. Landlord shall permit Tenant to occupy the Premises prior to the
Commencement Date,

                                       1
<PAGE>

beginning November 15, 1999. Such occupancy prior to the Commencement Date shall
be subject to all the provisions of this Lease, including the obligation to pay
all Additional Rent (as defined in Paragraph 4D below), but excluding only the
obligation to pay the Monthly Installment of rent.

        4.    Rent.
              ----

              A. Time of Payment. Tenant shall pay to Landlord as rent for the
                 ---------------
Premises the respective sums specified in Subparagraph 4.B below (the "Monthly
Installment") each month in advance on the first day of each calendar month,
without deduction or offset, prior notice or demand, commencing on the
Commencement Date and continuing through the term of this Lease, together with
such additional rents as are payable by Tenant to Landlord under the terms of
this Lease. The Monthly Installment for any period during the Lease Term which
period is less than one (1) full month shall be a pro rata portion of the
Monthly Installment based upon a thirty (30) day month.

              B. Monthly Installment. The Monthly Installment of rent payable
                 -------------------
each month during the Lease Term shall be the following respective amounts
during the following time periods:

              TIME PERIOD                         MONTHLY INSTALLMENT
              -----------                         -------------------

              1/1/2000-12/31/2000                 $187,200.00
              1/1/2001-12/31/2001                 $187,200.00
              1/1/2002-12/31/2002                 $194,400.00
              1/1/2003-12/31/2003                 $201,600.00
              1/1/2004-12/31/2004                 $208,800.00
              1/1/2005-12/31/2005                 $216,000.00
              1/1/2006-12/31/2006                 $223,200.00

              C. Late Charge. Tenant acknowledges that late payment by Tenant to
                 -----------
Landlord of rent and other sums due hereunder will cause Landlord to incur costs
not contemplated by this Lease, the exact amount of which will be extremely
difficult to ascertain. Such costs include, but are not limited to, processing
and accounting charges, and late charges which may be imposed on Landlord by the
terms of any mortgage or deed of trust covering the Premises. Accordingly, if
any installment of rent or any other sum due from Tenant shall not be received
by Landlord within ten (10) days after such amount shall be due, Tenant shall
pay to Landlord, as Additional Rent, a late charge equal to six percent (6%) of
such overdue amount. The parties hereby agree that such late charge represents a
fair and reasonable estimate of the costs Landlord will incur by reason of late
payment by Tenant. Acceptance of such late charge by Landlord shall in no event
constitute a waiver of Tenant's default with respect to such overdue amount, nor
prevent Landlord from exercising any of its other rights and remedies granted
hereunder.

                                       2
<PAGE>

              D. Additional Rent. All taxes, insurance premiums, Common Area
                 ---------------
Charges (as defined in Paragraph 12 below), late charges, costs and expenses
which Tenant is required to pay hereunder, together with all interest that may
accrue thereon pursuant to the provisions of this Lease in the event of Tenant's
failure to pay such amounts after notice to Tenant, and all reasonable damages,
costs, and attorneys' fees and expenses which Landlord may incur by reason of
any default of Tenant or failure on Tenant's part to comply with the terms of
this Lease, shall be deemed to be additional rent ("Additional Rent") and shall
be paid in addition to the Monthly Installment of rent, and, in the event of
nonpayment by Tenant, Landlord shall have all of the rights and remedies with
respect thereto as Landlord has for the nonpayment of the Monthly Installment of
rent.

              E. Place of Payment. Rent shall be payable in lawful money of the
                 ----------------
United States of America to Landlord at SHORELINE INVESTMENTS V, c/o Realprop
Development Company, 1710 Zanker Road, Suite 100, San Jose, California 95112 or
to such other person(s) or at such other place(s) as Landlord may designate in
writing.

              F. Advance Payment. Concurrently with the execution of this Lease,
                 ---------------
Tenant shall pay to Landlord the sum of One Hundred Eighty-seven Two Hundred
Dollars ($187,200.00) to be applied to the Monthly Installment of rent first
accruing under this Lease.

        5.    Security Deposit. Tenant shall deposit with Lessor the sum of Two
              ----------------
Hundred Thousand Dollars ($200,000.00) (the "Security Deposit") upon execution
of this Lease, to secure the faithful performance by Tenant of each term,
covenant and condition of this Lease. If Tenant shall at any time fail to make
any payment or fail to keep or perform any term, covenant or condition on its
part to be made or performed or kept under this Lease, Landlord may, but shall
not be obligated to and without waiving or releasing Tenant from any obligation
under this Lease, use, apply or retain the whole or any part of the Security
Deposit (A) to the extent of any sum due to Landlord; (B) to make any required
payment on Tenant's behalf; or (C) to compensate Landlord for any loss, damages,
attorney's fees or expense sustained by Landlord due to Tenant's default. In
such event, Tenant shall, within five (5) days of written demand by Landlord,
remit to Landlord sufficient funds to restore the Security Deposit to its
original sum. No interest shall accrue on the Security Deposit. Landlord shall
not be required to keep the Security Deposit separate from its general funds.
Should Tenant comply with all the terms, covenants, and conditions of this Lease
and at the end of the term of this Lease leave the Premises in the condition
required by this Lease, then said Security Deposit, less any sums owing to
Landlord or which Landlord is otherwise entitled to retain, shall be returned to
Tenant within thirty (30) days after the termination of this Lease and vacancy
of the Premises by Tenant.

                                       3
<PAGE>

        6.    Use of Premises. Tenant shall use the Premises only in conformance
              ---------------
with applicable governmental laws, regulations, rules and ordinances for the
purpose of general office, research and development, software development and
engineering, sales, and any related lawful purpose and for no other purpose.
Tenant shall indemnify, protect, defend, and hold Landlord harmless against any
loss, expense, damage, attorneys' fees or liability arising out of the failure
of Tenant to comply with any applicable law. Tenant shall not commit or suffer
to be committed, any waste upon the Premises, or any nuisance, or other acts or
things which may disturb the quiet enjoyment of any other tenant in the
buildings adjacent to the Premises, or allow any sale by auction upon the
Premises, or allow the Premises to be used for any unlawful purpose, or place
any loads upon the floor, walls or ceiling which endanger the structure, or
place any harmful liquids in the drainage system of the Building. No waste
materials or refuse shall be dumped upon or permitted to remain upon any part of
the Parcel outside of the Building, except in trash containers placed inside
exterior enclosures designated for that purpose by Landlord. No materials,
supplies, equipment, finished products or semifinished products, raw materials
or articles of any nature shall be stored upon or permitted to remain on any
portion of the Parcel outside of the Building. Tenant shall strictly comply with
the provisions of Paragraph 39 below.

        7.    Taxes and Assessments.
              ---------------------

              A. Tenant's Property. Tenant shall pay before delinquency any and
                 -----------------
all taxes and assessments, license fees and public charges levied, assessed or
imposed upon or against Tenant's fixtures, equipment, furnishings, furniture,
appliances and personal property installed or located on or within the Premises.
Tenant shall cause said fixtures, equipment, furnishings, furniture, appliances
and personal property to be assessed and billed separately from the real
property of Landlord. If any of Tenant's said personal property shall be
assessed with Landlord's real property, Tenant shall pay Landlord the taxes
attributable to Tenant within ten (10) days after receipt of a written statement
from Landlord setting forth the taxes applicable to Tenant's property.

              B. Property Taxes. Tenant shall pay, as Additional Rent, Tenant's
                 --------------
Pro Rata Share (as defined below) of all Property Taxes levied or assessed with
respect to the land comprising the Parcel and with respect to all buildings and
improvements located on the Parcel which become due or accrue during the term of
this Lease. Tenant shall pay such Property Taxes to Landlord on or before the
later of the following dates: (1) ten (10) days prior to the delinquency date;
or (2) twenty (20) days after receipt of billing. If Tenant fails to do so,
Tenant shall reimburse Landlord, on demand, for all interest, late fees and
penalties that the taxing authority charges Landlord. In the event Landlord's
mortgagee requires an impound for Property Taxes, then on the first day of each

                                       4
<PAGE>

month during the Lease Term, Tenant shall pay Landlord one twelfth (1/12) of its
annual share of such Property Taxes. Tenant's liability hereunder shall be
prorated to reflect the Commencement and termination dates of this Lease.

        As used in this Lease, the term "Tenant's Pro Rata Share" shall mean a
fraction, expressed as a percentage, the numerator of which is the number of
square feet of floor space contained in the Premises and the denominator of
which is the number of square feet of floor space contained in all of the
Buildings located on the Parcel. As of the Commencement Date, Tenant's Pro Rata
Share expressed as a fraction is 72,000/300,608 and expressed as a percentage is
23.95%.

        For the purpose of this Lease, "Property Taxes" means and includes all
taxes, assessments (including, but not limited to, assessments for public
improvements or benefits), taxes based on vehicles utilizing parking areas,
taxes based or measured by the rent paid, payable or received under this Lease,
taxes on the value, use, or occupancy of the Premises, the Buildings and/or the
Parcel, Environmental Surcharges, and all other governmental impositions and
charges of every kind and nature whatsoever, whether or not customary or within
the contemplation of the parties hereto and regardless of whether the same shall
be extraordinary or ordinary, general or special, unforeseen or foreseen, or
similar or dissimilar to any of the foregoing which, at any time during the
Lease Term, shall be applicable to the Premises, the Buildings and/or the Parcel
or assessed, levied or imposed upon the Premises, the Buildings and/or the
Parcel, or become due and payable and a lien or charge upon the Premises, the
Buildings and/or the Parcel, or any part thereof, under or by virtue of any
present or future laws, statutes, ordinances, regulations or other requirements
of any governmental authority whatsoever. The term "Environmental Surcharges"
shall mean and include any and all expenses, taxes, charges or penalties imposed
by the Federal Department of Energy, the Federal Environmental Protection
Agency, the Federal Clean Air Act, or any regulations promulgated thereunder or
any other local, state or federal governmental agency or entity now or hereafter
vested with the power to impose taxes, assessments, or other types of surcharges
as a means of controlling or abating environmental pollution or the use of
energy. The term "Property Taxes" shall not include any federal, state or local
net income, estate, or inheritance tax imposed on Landlord or any penalties or
late charges assessed for failing to pay the Property Taxes when due.

              C. Other Taxes. Tenant shall, as Additional Rent, pay or reimburse
                 -----------
Landlord for any tax based upon, allocable to, or measured by the area of the
Premises or the Buildings or the Parcel; or by the rent paid, payable or
received under this Lease; any tax upon or with respect to the possession,
leasing, operation, management, maintenance, alteration, repair, use or
occupancy of the Premises or any portion thereof; any privilege tax, excise tax,
business and occupation tax, gross receipts tax, sales and/or use tax, water
tax, sewer tax, employee tax, occupational license tax imposed upon Landlord or
Tenant with respect to the Premises; any tax upon this transaction or any

                                       5
<PAGE>

document to which Tenant is a party creating or transferring an interest or an
estate in the Premises.

        8.    Insurance.
              ---------

              A. Indemnity. Tenant agrees to indemnify, protect and defend
                 ---------
Landlord against and hold Landlord harmless from any and all claims, causes of
action, judgments, obligations or liabilities, and all reasonable expenses
incurred in investigating or resisting the same (including reasonable attorneys'
fees), on account of, or arising out of, the operation, maintenance, use or
occupancy of the Premises and the Parcel and all areas appurtenant thereto by
Tenant or Tenant's Agents (as defined in Paragraph 31G below). This Lease is
made on the express understanding that Landlord shall not be liable for, nor
suffer loss by reason of, injury to person or property, from whatever cause
(except for the active negligence or willful misconduct of Landlord), which in
any way may be connected with the operation, use or occupancy of the Premises
specifically including, without limitation, any liability for injury to the
person or property of Tenant or its Agents. Notwithstanding the foregoing,
Landlord shall not be indemnified for losses, damages, liabilities, judgments,
actions, claims, attorneys fees, costs and expenses arising from (i) the active
negligence or willful misconduct of Landlord or its Agents; (ii) Landlord's
violation of any governmental law, order or regulation unless Tenant has assumed
pursuant to the provisions of this Lease Landlord's obligations with respect to
such law, order or regulation; or (iii) a breach of Landlord's obligations under
this Lease; or (iv) any construction defects in the Buildings.

              B. Liability Insurance. Tenant shall, at Tenant's expense, obtain
                 -------------------
and keep in force during the term of this Lease a policy of commercial general
liability insurance insuring Landlord and Tenant against claims and liabilities
arising out of the operation, use, or occupancy of the Premises and all areas
appurtenant thereto, including parking areas. Such insurance shall be in an
amount of not less than Three Million Dollars ($3,000,000.00) for bodily injury
or death as a result of any one occurrence and Five Hundred Thousand Dollars
($500,000.00) for damage to property as a result of any one occurrence. The
insurance shall be with companies approved by Landlord, which approval Landlord
agrees not to withhold unreasonably. Tenant shall deliver to Landlord, prior to
possession, and at least thirty (30) days prior to the expiration thereof, a
certificate of insurance evidencing the existence of the policy required
hereunder and such certificate shall certify that the policy (1) names Landlord
as an additional insured, (2) shall not be canceled or altered without thirty
(30) days prior written notice to Landlord, (3) insures performance of the
indemnity set forth in Subparagraph 8.A above, (4) the coverage is primary and
any coverage by Landlord is in excess thereto and (5) contains a cross-liability
endorsement.

        Landlord may maintain a policy or policies of commercial general
liability insurance insuring

                                       6
<PAGE>

Landlord (and such others as are designated by Landlord), against liability for
personal injury, bodily injury, death and damage to property occurring or
resulting from an occurrence in, on or about the Premises or the Common Area,
with such limits of coverage as Landlord may from time to time determine are
reasonably necessary for its protection. The cost of any such liability
insurance maintained by Landlord shall be a Common Area Charge and Tenant shall
pay, as Additional Rent, Tenant's Pro Rata Share of such cost to Landlord as
provided in Paragraph 12 below.

              C. Property Insurance. Landlord shall obtain and keep in force
                 ------------------
during the term of this Lease a policy or policies of insurance covering loss or
damage to the Premises and the Buildings, in the amount of the full replacement
value thereof, providing protection against those perils included within the
classification of "all risk" insurance, plus a policy of rental income insurance
in the amount of one hundred percent (100%) of twelve (12) months rent
(including, without limitation, sums payable as Additional Rent), plus, at
Landlord's option, flood insurance and earthquake insurance, and any other
coverages which Landlord may from, time to time, elect to maintain or which may
be required from time to time by Landlord's Lender. Tenant shall have no
interest in nor any right to the proceeds of any insurance procured by Landlord
on the Premises. Tenant shall, within twenty (20) days after receipt of billing,
pay to Landlord as Additional Rent, Tenant's Pro Rata Share of such insurance
procured and maintained by Landlord. Tenant acknowledges that such insurance
procured by Landlord shall contain a deductible which reduces Tenant's cost for
such insurance and, in the event of loss or damage, Tenant shall be required to
pay to Landlord Tenant's Pro Rata Share of the amount of such deductible (not to
exceed Ten Thousand Dollars ($10,000.00)).

              D. Tenant's Insurance; Release of Landlord. Tenant acknowledges
                 ---------------------------------------
that the insurance to be maintained by Landlord on the Premises pursuant to
Subparagraph 8.C above will not insure any of Tenant's property. Accordingly,
Tenant, at Tenant's own expense, shall maintain in full force and effect on all
of its fixtures, equipment, leasehold improvements and personal property in the
Premises, a policy of "All Risk" coverage insurance to the extent of at least
ninety percent (90%) of their insurable value. Tenant hereby releases Landlord,
and its partners, officers, agents, employees, and servants, from any and all
claims, demands, losses, expenses or injuries to the Premises or to the
furnishings, fixtures, equipment, inventory or other personal property of Tenant
in, about, or upon the Premises, which are caused by perils, events or
happenings where the same are covered by the insurance required by this Lease or
which are the subject of insurance carried by Tenant and in force at the time of
such loss.

              E. Mutual Waiver of Subrogation. Tenant and Landlord hereby
                 ----------------------------
mutually waive their respective rights for recovery against each other for any
loss of or damage to the property of

                                       7
<PAGE>

either party, to the extent such loss or damage is insured by any insurance
policy required to be maintained by this Lease or otherwise in force at the time
of such loss or damage. Each party shall obtain any special endorsements, if
required by the insurer, whereby the insurer waives its right of subrogation
against the other party hereto. The provisions of this Subparagraph E shall not
apply in those instances in which waiver of subrogation would cause either
party's insurance coverage to be voided or otherwise made uncollectible.

        9.    Utilities. Tenant shall pay for all water, gas, light, heat,
              ---------
power, electricity, telephone, trash pick-up, sewer charges, and all other
services supplied to or consumed on the Premises, and all taxes and surcharges
thereon. In addition, the cost of any utility services supplied to the Common
Area or not separately metered to the Premises shall be a Common Area Charge and
Tenant shall pay Tenant's Pro Rata Share of such costs to Landlord as provided
in Paragraph 12 below.

        10.   Repairs and Maintenance.
              -----------------------

              A. Landlord's Repairs. Subject to the provisions of Paragraph 16,
                 ------------------
Landlord shall keep and maintain the exterior roof, structural elements and
exterior walls of the Building in good order and repair. Landlord shall not,
however, be required to maintain, repair or replace the interior surface of
exterior walls, nor shall Landlord be required to maintain, repair or replace
windows, doors, skylights or plate glass. Landlord shall have no obligation to
make repairs under this Subparagraph until a reasonable time after receipt of
written notice from Tenant of the need for such repairs. Tenant shall reimburse
Landlord, as Additional Rent, within fifteen (15) days after receipt of billing,
for the cost of such repairs and maintenance which are the obligation of
Landlord hereunder, provided however, that Tenant shall not be required to
reimburse Landlord for the cost of maintenance and repairs of the structural
elements of the Building unless such maintenance or repair is required because
of the negligence or willful misconduct of Tenant or its Agents. As used herein,
the term "structural elements of the Building" shall mean and be limited to the
foundation, footings, floor slab (but not flooring), structural walls, and roof
structure (but not roofing or roof membrane). Notwithstanding the foregoing, if
the roof surface or membrane requires replacement during the Lease Term, then
Landlord and Tenant shall share the cost of such replacement as follows: Tenant
shall pay a fraction of the cost of such replacement, which fraction shall have
as its numerator the number of months remaining in the Lease Term and shall have
as its denominator one hundred twenty (120) months. Landlord shall pay the
balance of the cost of such replacement. Tenant shall pay Tenant's share of the
costs of such replacement within fifteen (15) days after receipt of billing.

        Landlord warrants that the HVAC equipment shall be in good working order
on the

                                       8
<PAGE>

Commencement Date. If any HVAC equipment requires replacement (as opposed to
routine maintenance and repair) during the first six (6) months of the Lease
Term, Landlord shall perform such replacement at its sole cost and expense.
After the first six (6) months of the Lease Term, Tenant shall be responsible
for all repair, maintenance and replacement of the HVAC equipment in accordance
with Subparagraph B below.

              B. Tenant's Repairs. Except as expressly provided in Subparagraph
                 ----------------
10.A above, Tenant shall, at its sole cost, keep and maintain the entire
Premises and every part thereof, including without limitation, the windows,
window frames, plate glass, glazing, skylights, truck doors, doors and all door
hardware, the walls and partitions, and the electrical, plumbing, lighting,
heating, ventilating and air conditioning systems and equipment in good order,
condition and repair. The term "repair" shall include replacements, restorations
and/or renewals when necessary as well as painting. Tenant's obligation shall
extend to all alterations, additions and improvements to the Premises, and all
fixtures and appurtenances therein and thereto. Tenant shall, at all times
during the Lease Term, have in effect a service contract for the maintenance of
the heating, ventilating and air conditioning ("HVAC") equipment with an HVAC
repair and maintenance contractor approved by Landlord. The HVAC service
contract shall provide for periodic inspection and servicing at least once every
three (3) months during the term hereof, and Tenant shall provide Landlord with
a copy of such contract and all periodic service reports.

        Should Tenant fail to commence to make repairs required of Tenant
hereunder forthwith upon fifteen (15) days notice from Landlord or should Tenant
fail thereafter to diligently complete the repairs, Landlord, in addition to all
other remedies available hereunder or by law and without waiving any alternative
remedies, upon written notice to Tenant may make the same, and in that event,
Tenant shall reimburse Landlord as Additional Rent for the cost of such
maintenance or repairs within five (5) days of written demand by Landlord.

        Landlord shall have no maintenance or repair obligations whatsoever with
respect to the Premises except as expressly provided in Subparagraph 10.A and
Paragraph 11 and 16. Tenant hereby expressly waives the provisions of Subsection
1 of Section 1932 and Sections 1941 and 1942 of the Civil Code of California and
all rights to make repairs at the expense of Landlord as provided in Section
1942 of said Civil Code. Unless caused by Landlord's active negligence or
willful misconduct, there shall be no allowance to Tenant for diminution of
rental value, and no liability on the part of Landlord, by reason of
inconvenience, annoyance or injury to business arising from the making of, or
the failure to make, any repairs, alterations, decorations, additions or
improvements in or to any portion of the Premises or the Building or Common Area
(or any of the areas used in connection with the operation thereof, or in or to
any fixtures, appurtenances or equipment), or by

                                       9
<PAGE>

reason of the negligence of Tenant or any other tenant or occupant of the
Parcel. Unless caused by Landlord's active negligence or willful misconduct,
Tenant hereby agrees that Landlord shall not be liable for injury to Tenant's
business or any loss of income therefrom or for damage to the goods, wares,
merchandise or other property of Tenant, Tenant's employees, invitees,
customers, or any other person in or about the Premises, the Building, or the
Common Area, nor shall Landlord be liable for injury to the person of Tenant,
Tenant's employees, agents or contractors whether such damage or injury is
caused by or results from fire, steam, electricity, gas, water or rain, or from
the breakage, leakage, obstruction or other defects of pipes, sprinklers, wires,
appliances, plumbing, air conditioning or lighting fixtures, or from any other
cause, whether the said damage or injury results from conditions arising upon
the Premises or upon other portions of the Building, or from other sources or
places and regardless of whether the cause of such damage or injury or the means
of repairing the same is inaccessible to Tenant. In no event shall Landlord be
responsible for any consequential damages arising or alleged to have arisen from
any of the foregoing matters. Landlord shall not be liable for any damages
arising from any act or neglect of any other tenant, if any, of the Buildings or
the Parcel.

        11.   Common Area. Subject to the terms and conditions of this Lease and
              -----------
such rules and regulations as Landlord may from time to time prescribe, Tenant
and Tenant's employees, invitees and customers shall, in common with other
occupants of the Parcel, and their respective employees, invitees and customers,
and others entitled to the use thereof, have the non-exclusive right to use the
access roads, parking areas and facilities provided and designated by Landlord
for the general use and convenience of the occupants of the Parcel, which areas
and facilities are referred to herein as "Common Area." The Common Area does not
include the inside portion of any Buildings. This right shall terminate upon the
termination of this Lease. Landlord reserves the right from time to time to make
changes in the shape, size, location, amount and extent of the Common Area,
provided that such changes shall not unreasonably interfere with Tenant's access
or use of the Premises or reduce the number of parking spaces to be provided for
Tenant under this Paragraph 11. Landlord further reserves the right to
promulgate such reasonable rules and regulations relating to the use of the
Common Area, and any part or parts thereof, as Landlord may deem appropriate for
the best interest of the occupants of the Parcel. The rules and regulations
shall be binding upon Tenant upon delivery of a copy of them to Tenant, and
Tenant shall abide by them and cooperate in their observance. Such rules and
regulations may be amended by Landlord from time to time, with or without
advance notice, and all amendments shall be effective upon delivery of a copy of
them to Tenant. No such rules and regulations shall (i) require Tenant to pay
additional Monthly Installment of rent or Additional Rent or materially decrease
Tenant's rights or materially increase Tenant's obligations under this Lease.
Tenant shall have the non-exclusive use of two hundred sixty-seven (267) of the
parking spaces in the Common Area as designated from time to time by Landlord.

                                       10
<PAGE>

Tenant shall not at any time park or permit the parking of Tenant's trucks or
other vehicles, or the trucks or other vehicles of others, adjacent to loading
areas so as to interfere in any way with the use of such areas, nor shall Tenant
at any time park or permit the parking of Tenant's vehicles or trucks, or the
vehicles or trucks of Tenant's suppliers or others, in any portion of the Common
Area not designated by Landlord for such use by Tenant. Tenant shall not abandon
any inoperative vehicles or equipment on any portion of the Common Area. Tenant
shall make no alterations, improvements or additions to the Common Area.

        Landlord shall operate, manage, insure, maintain and repair the Common
Area in good order, condition and repair. The manner in which the Common Area
shall be maintained and the expenditures for such maintenance shall be at the
reasonable discretion of Landlord. The cost of such repair, maintenance,
operation, insurance and management, including without limitation, maintenance
and repair of landscaping, irrigation systems, paving, sidewalks, fences, and
lighting, shall be a Common Area Charge and Tenant shall pay to Landlord its
share of such costs as provided in Paragraph 12 below.

        12.   Common Area Charges. Tenant shall pay to Landlord, as Additional
              -------------------
Rent, within ten (10) days after receipt of billing (together with reasonable
back-up information) upon demand but not more often than once each calendar
month, an amount equal to Tenant's Pro Rata Share of the Common Area Charges as
defined in Subparagraph 7.B and Paragraphs 9, 11, 13 and 36 of this Lease.
Tenant acknowledges and agrees that the Common Area Charges shall include an
additional five percent (5%) of the actual expenditures in order to compensate
Landlord for accounting, management and processing services. Provided Tenant
notifies Landlord within six (6) months after receipt of a detailed statement of
Tenant's Pro Rata Share of the Common Area Charges that Tenant disputes such
statements received from Landlord, Tenant or its CPA (as defined below) shall
have the right, at Tenant's sole cost and expense, provided Tenant utilizes a
Certified Public Accountant (the "CPA") compensated on an hourly basis, upon at
least thirty (30) days prior notice to Landlord at any time during regular
business hours to audit, review and photocopy Landlord's records pertaining to
Common Area Charges for the immediately previous calendar year only. Tenant
agrees to keep all information thereby obtained by Tenant confidential. If such
audit reveals that Landlord has overcharged Tenant, the amount overcharged shall
be credited to Tenant's account within thirty (30) days after the audit is
concluded. Notwithstanding anything to the contrary contained in this Lease,
Common Area Charges shall not include any of the following: (i) legal fees
incurred in Lease preparations; (ii) costs for which Landlord receives
reimbursement from insurance; (iii) bad debt or rent loss; (iv) reserves for
loss, interest or penalties resulting from Landlord's negligence; (v) costs
associated with the operation of Landlord's off-site business premises (except
for the five (5) percent administrative fee permitted above); (vi) advertising
and leasing costs; (vii) costs incurred as a result

                                       11
<PAGE>

of the active negligence or willful misconduct or violation of law by Landlord
or its Agents; (viii) costs for which Landlord obtains reimbursement from
others; (ix) fees, commissions, attorneys fees, costs or other disbursements
incurred in connection with negotiations or disputes with any other occupant of
the Buildings, if any, and costs arising from the violation by Landlord of the
terms and conditions of any lease or other agreement; (x) depreciation,
amortization or other expense reserves; (xi) costs and expenses for which Tenant
reimburses Landlord directly or which Tenant pays directly to a third person;
(xii) costs in the nature of management or administrative fees or expenses,
other than the five (5) percent administrative fee described in this Paragraph
12.

        13.   Alterations. Tenant shall not make, or suffer to be made, any
              -----------
alterations, improvements or additions in, on, about or to the Premises or any
part thereof, without the prior written consent of Landlord (which consent shall
not be unreasonably withheld or delayed) and without a valid building permit
issued by the appropriate governmental authority, if required; provided,
however, Landlord's consent shall not be required for non-structural changes to
the interior of the Premises which cost less than Fifteen Thousand Dollars
($15,000.00). As a condition to giving such consent, Landlord may require that
Tenant agree to remove any such alterations, improvements or additions at the
termination of this Lease, and to restore the Premises to their prior condition.
Unless Landlord requires that Tenant remove any such alteration, improvement or
addition, any alteration, addition or improvement to the Premises, except
movable furniture and trade fixtures not affixed to the Premises, shall become
the property of Landlord upon termination of the Lease and shall remain upon and
be surrendered with the Premises at the termination of this Lease. Without
limiting the generality of the foregoing, all heating, lighting, electrical
(including all wiring, conduit, outlets, drops, buss ducts, main and subpanels),
air conditioning, partitioning, drapery, and carpet installations made by Tenant
regardless of how affixed to the Premises, together with all other additions,
alterations and improvements that have become an integral part of the Building,
shall be and become the property of the Landlord upon termination of the Lease,
and shall not be deemed trade fixtures, and shall remain upon and be surrendered
with the Premises at the termination of this Lease.

        If, during the Term hereof, any alteration, addition or change of any
sort to all or any portion of the Premises is required by law, regulation,
ordinance or order of any public agency, Tenant shall promptly make the same at
its sole cost and expense. If during the Term hereof, any alteration, addition,
or change to the Common Area is required by law, regulation, ordinance or order
of any public agency, Landlord shall make the same and the cost of such
alteration, addition or change shall be a Common Area Charge and Tenant shall
pay Tenant's Pro Rata Share of said cost to Landlord as provided in Paragraph 12
above.

                                       12
<PAGE>

        14.   Acceptance of the Premises. By entry and taking possession of the
              --------------------------
Premises pursuant to this Lease, Tenant accepts the Premises as being in good
and sanitary order, condition and repair and accepts the Premises in their
condition existing as of the date of such entry. If any alterations to the
Premises are required by the Americans with Disabilities Act, Tenant shall make
such alterations at Tenant's sole cost. Tenant acknowledges that neither
Landlord nor Landlord's Agents has made any representation or warranty as to the
suitability of the Premises to the conduct of Tenant's business. Any agreements,
warranties or representations not expressly contained herein shall in no way
bind either Landlord or Tenant, and Landlord and Tenant expressly waive all
claims for damages by reason of any statement, representation, warranty, promise
or agreement, if any, not contained in this Lease. This Lease constitutes the
entire understanding between the parties hereto and no addition to, or
modification of, any term or provision of this Lease shall be effective until
set forth in a writing signed by both Landlord and Tenant.

        15.   Default.
              -------

              A. Events of Default. A breach of this Lease by Tenant shall
                 -----------------
exist if any of the following events (hereinafter referred to as "Event of
Default") shall occur:

                 (1)      Default in the payment when due of any
                          installment of rent or other payment required
                          to be made by Tenant hereunder, where such
                          default shall not have been cured within three
                          (3) days after written notice of such default
                          is given to Tenant. If Landlord serves Tenant
                          with a Notice to Pay or Quit pursuant to the
                          applicable unlawful detainer statutes, such
                          Notice to Pay or Quit shall also constitute
                          the written notice required by this clause;

                 (2)      Tenant's breach or violation of any of the provisions
                          of Paragraph 25 below;

                 (3)      Tenant's breach or violation of any of the provisions
                          of Paragraph 39 below;

                 (4)      Tenant's failure to perform any other term,
                          covenant or condition contained in this Lease
                          where such failure shall have continued for
                          twenty (20) days after written notice of such
                          failure is given to Tenant or if such failure
                          cannot be cured within said twenty (20) day
                          period, Tenant fails to commence to cure such
                          failure within said twenty (20) day period and
                          thereafter diligently completes such cure;

                                       13
<PAGE>

                 (5)      Tenant's vacating or abandonment of the Premises;

                 (6)      Tenant's assignment of its assets for the benefit of
                          its creditors;

                 (7)      The sequestration of, attachment of, or
                          execution on, any substantial part of the
                          property of Tenant or on any property
                          essential to the conduct of Tenant's business,
                          shall have occurred and Tenant shall have
                          failed to obtain a return or release of such
                          property within thirty (30) days thereafter,
                          or prior to sale pursuant to such
                          sequestration, attachment or levy, whichever
                          is earlier;

                 (8)      Tenant or any guarantor of Tenant's
                          obligations hereunder shall commence any case,
                          proceeding or other action seeking
                          reorganization, arrangement, adjustment,
                          liquidation, dissolution or composition of it
                          or its debts under any law relating to
                          bankruptcy, insolvency, reorganization or
                          relief of debtors, or seek appointment of a
                          receiver, trustee, custodian, or other similar
                          official for it or for all or any substantial
                          part of its property;

                 (9)      Tenant or any such guarantor shall take any corporate
                          action to authorize any of the actions set forth in
                          Clause 8 above; or

                 (10)     Any case, proceeding or other action against
                          Tenant or any guarantor of Tenant's
                          obligations hereunder shall be commenced
                          seeking to have an order for relief entered
                          against it as debtor, or seeking
                          reorganization, arrangement, adjustment,
                          liquidation, dissolution or composition of it
                          or its debts under any law relating to
                          bankruptcy, insolvency, reorganization or
                          relief of debtors, or seeking appointment of a
                          receiver, trustee, custodian or other similar
                          official for it or for all or any substantial
                          part of its property, and such case,
                          proceeding or other action (i) results in the
                          entry of an order for relief against it which
                          is not fully stayed within seven (7) business
                          days after the entry thereof or (ii) remains
                          undismissed for a period of forty-five (45)
                          days.

              B. Remedies. Upon any Event of Default, Landlord shall have the
                 --------
following remedies, in addition to all other rights and remedies provided by
law, to which Landlord may resort

                                       14
<PAGE>

cumulatively, or in the alternative:

                         (1)      Recovery of Rent. Landlord shall be entitled
                                  ----------------
                                  to keep this Lease in full force and effect
                                  (whether or not Tenant shall have abandoned
                                  the Premises) and to enforce all of its rights
                                  and remedies under this Lease, including the
                                  right to recover rent and other sums as they
                                  become due, plus interest at the Permitted
                                  Rate (as defined in Paragraph 33 below) from
                                  the due date of each installment of rent or
                                  other sum until paid.

                         (2)      Termination. Landlord may terminate this Lease
                                  -----------
                                  by giving Tenant written notice of
                                  termination. On the giving of the notice all
                                  of Tenant's rights in the Premises and the
                                  Building and Parcel shall terminate. Upon the
                                  giving of the notice of termination, Tenant
                                  shall surrender and vacate the Premises in the
                                  condition required by Paragraph 34, and
                                  Landlord may re-enter and take possession of
                                  the Premises and all the remaining
                                  improvements or property and eject Tenant or
                                  any of Tenant's subtenants, assignees or other
                                  person or persons claiming any right under or
                                  through Tenant or eject some and not others or
                                  eject none. This Lease may also be terminated
                                  by a judgment specifically providing for
                                  termination. Any termination under this
                                  paragraph shall not release Tenant from the
                                  payment of any sum then due Landlord or from
                                  any claim for damages or rent previously
                                  accrued or then accruing against Tenant. In no
                                  event shall any one or more of the following
                                  actions by Landlord constitute a termination
                                  of this Lease:

                                  (a)      maintenance and preservation of the
                                           Premises;

                                  (b)      efforts to relet the Premises;

                                  (c)      appointment of a receiver in order to
                                           protect Landlord's interest
                                           hereunder;

                                  (d)      consent to any subletting of the
                                           Premises or assignment of this Lease
                                           by Tenant, whether pursuant to
                                           provisions hereof concerning
                                           subletting and assignment or
                                           otherwise; or

                                       15
<PAGE>

                                  (e)      any other action by Landlord or
                                           Landlord's agents intended to
                                           mitigate the adverse effects from any
                                           breach of this Lease by Tenant.

                         (3)      Damages. In the event this Lease is terminated
                                  -------
                                  pursuant to Subparagraph 15.B.2 above, or
                                  otherwise, Landlord shall be entitled to
                                  damages in the following sums:

                                  (a)      the worth at the time of award of the
                                           unpaid rent which has been earned at
                                           the time of termination; plus

                                  (b)      the worth at the time of award of the
                                           amount by which the unpaid rent which
                                           would have been earned after
                                           termination until the time of award
                                           exceeds the amount of such rental
                                           loss that Tenant proves could have
                                           been reasonably avoided; plus

                                  (c)      the worth at the time of award of the
                                           amount by which the unpaid rent for
                                           the balance of the term after the
                                           time of award exceeds the amount of
                                           such rental loss that Tenant proves
                                           could be reasonably avoided; and

                                  (d)      any other amount necessary to
                                           compensate Landlord for all detriment
                                           proximately caused by Tenant's
                                           failure to perform Tenant's
                                           obligations under this Lease, or
                                           which in the ordinary course of
                                           things would be likely to result
                                           therefrom including, without
                                           limitation, the following: (i)
                                           expenses for cleaning, repairing or
                                           restoring the Premises; (ii) expenses
                                           for altering, remodeling or otherwise
                                           improving the Premises for the
                                           purpose of reletting, including
                                           installation of leasehold
                                           improvements (whether such
                                           installation be funded by a reduction
                                           of rent, direct payment or allowance
                                           to the succeeding lessee, or
                                           otherwise); (iii) real estate
                                           broker's fees, advertising costs and
                                           other expenses of reletting the
                                           Premises; (iv) costs of carrying the
                                           Premises such as taxes and insurance
                                           premiums thereon, utilities and
                                           security precautions; (v) expenses in
                                           retaking possession of the Premises;
                                           and (vi) reasonable attorney's fees
                                           and court costs.

                                       16
<PAGE>

                          (e)      The "worth at the time of award" of
                                   the amounts referred to in
                                   Subparagraphs (a) and (b) of this
                                   Paragraph 15.B(3) is computed by
                                   allowing interest at the Permitted
                                   Rate. The "worth at the time of
                                   award" of the amounts referred to in
                                   Subparagraph (c) of this Paragraph
                                   15.B(3) is computed by discounting
                                   such amount at the discount rate of
                                   the Federal Reserve Board of San
                                   Francisco at the time of award plus
                                   one percent (1%). The term "rent" as
                                   used in this Paragraph 15 shall
                                   include all sums required to be paid
                                   by Tenant to Landlord pursuant to the
                                   terms of this Lease.

        16      Destruction.
                -----------

                A.  Landlord's Duty to Restore. If the Premises are damaged by
                    --------------------------
any peril after the Commencement Date of this Lease, Landlord shall restore the
Premises unless the Lease is terminated by Landlord pursuant to Paragraph 16.B
or by Tenant pursuant to Paragraph 16.C. All insurance proceeds available from
the property damage insurance carried by Landlord pursuant to Paragraph 8.C
shall be paid to and become the property of Landlord. If this Lease is
terminated pursuant to either Paragraphs 16.B or 16.C, then all insurance
proceeds available from the insurance required to be carried by Tenant which
covers loss to property that is Landlord's property or would become Landlord's
property on the termination of this Lease shall be paid to and become the
property of Landlord. If this Lease is not so terminated, then upon receipt of
the insurance proceeds (if the loss is covered by insurance) and the issuance of
all necessary governmental permits, Landlord shall commence and diligently
prosecute to completion the restoration of the Premises, to the extent then
allowed by Law, to substantially the same condition in which the Premises were
immediately prior to such damage. Landlord's obligation to restore shall be
limited to the Premises as they existed as of the Commencement Date, excluding
any trade fixtures and/or personal property and/or alterations constructed or
installed by Tenant in the Premises. Tenant shall forthwith replace or fully
repair all trade fixtures installed by Tenant and existing at the time of such
damage or destruction.

                B.  Landlord's Right to Terminate. Landlord shall have the
                    -----------------------------
option to terminate this Lease in the event any of the following occurs, which
option may be exercised only by delivery to Tenant of a written notice of
election to terminate within thirty (30) days after the date of such damage:

                    (1)   The Premises are damaged by any peril either
                          (i) covered by the type of insurance Landlord
                          is required to carry pursuant to Paragraph 8.C
                          or

                                       17
<PAGE>

                          (ii) covered by valid and collectible insurance
                          actually carried by Landlord and in force at the time
                          of such damage or destruction, to such an extent that
                          the estimated restoration cost exceeds fifty percent
                          (50%) of the then actual replacement cost thereof.

                    (2)   The Premises are damaged by any peril both (i)
                          not covered by the type of insurance Landlord
                          is required to carry pursuant to Paragraph 8.C
                          and (ii) not covered by valid and collectible
                          insurance actually carried by Landlord and in
                          force at the time of such damage or
                          destruction, to such an extent that the
                          estimated restoration cost exceeds five
                          percent (5%) of the then actual replacement
                          cost thereof; provided, however, that Landlord
                          may not terminate this Lease pursuant to this
                          subparagraph if Tenant agrees in writing to
                          pay the amount by which the restoration cost
                          exceed five percent (5%) of the replacement
                          cost of the Premises and deposits with
                          Landlord an amount equal to the estimated
                          amount of such excess within thirty (30) days
                          after Landlord has notified Tenant with its
                          election to terminate this Lease pursuant to
                          this subparagraph.

                    (3)   The Premises are damaged by any peril during
                          the last twelve (12) months of the Lease Term
                          to such an extent that the estimated cost to
                          restore equals or exceeds an amount equal to
                          six (6) times the Monthly Installment of rent
                          then due; provided, however, that Landlord may
                          not terminate this Lease pursuant to this
                          subparagraph if Tenant, at the time of such
                          damage, has an express written option to
                          further extend the term of this Lease and
                          Tenant exercises such option to so further
                          extend the Lease Term within fifteen (15) days
                          following the date of such damage.

                    (4)   The Premises are damaged by any peril and, because of
                          the Laws then in force, (i) may not be restored to
                          substantially the same condition in which it was prior
                          to such damage, or (ii) if restored, may not be used
                          for the same use being made thereof before such
                          damage.

                C.  Tenant's Right to Terminate. If the Improvements are damaged
by any peril and Landlord does not elect to terminate this Lease or is not
entitled to terminate this Lease pursuant to Paragraph 14.B, then as soon as
reasonably practicable, Landlord shall furnish Tenant with the

                                       18
<PAGE>

written opinion of Landlord's architect or construction consultant as to when
the restoration work required of Tenant may be completed. Tenant shall have the
option to terminate this Lease in the event any of the following occurs, which
option may be exercised only by delivery to Landlord of a written notice of
election to terminate within fifteen (15) days after Tenant receives from
Landlord the estimate of the time needed to complete such restoration:

                         (1)      The Premises are damaged by any peril and, in
                                  the reasonable opinion of Landlord's architect
                                  or construction consultant, the restoration of
                                  the Premises cannot be substantially completed
                                  within two hundred seventy (270) days after
                                  the date of the damage.

                         (2)      The Premises are damaged by any peril within
                                  twelve (12) months of the last day of the
                                  Lease Term, and, in the reasonable opinion of
                                  Landlord's architect or construction
                                  consultant, the restoration of the Premises
                                  cannot be substantially completed within
                                  ninety (90) days after the date of such
                                  damage.

                    D.   Abatement of Rent. In the event of damage to the
                         -----------------
Premises which does not result in the termination of this Lease, the Monthly
Installment of rent and Additional Rent shall be temporarily abated during the
period of restoration in proportion to the degree to which Tenant's use of the
Premises is impaired by such damage. Tenant shall not be entitled to any
compensation from Landlord for loss of Tenant's property or loss to Tenant's
business caused by such damage or restoration. Tenant hereby waives the
provisions of Section 1932, Subdivision 2, and Section 1933, Subdivision 4, of
the California Civil Code, and the provisions of any similar law, hereinafter
enacted.

              17    Condemnation.
                    ------------

                    A.  Definition of Terms. For the purposes of this Lease, the
                        -------------------
term (1) "Taking" means a taking of the Premises or damage to the Premises
related to the exercise of the power of eminent domain and includes a voluntary
conveyance, in lieu of court proceedings, to any agency, authority, public
utility, person or corporate entity empowered to condemn property; (2) "Total
Taking" means the taking of the entire Premises or so much of the Premises or
Common Area as to prevent or substantially impair the use of the Premises by
Tenant for the uses herein specified; provided, however, in no event shall a
Taking of less than ten percent (10%) of the Common Area be deemed a Total
Taking; (3) "Partial Taking" means the taking of only a portion of the Premises
which does not constitute a Total Taking; (4) "Date of Taking" means the date
upon which the title

                                       19
<PAGE>

to the Premises, or a portion thereof, passes to and vests in the condemnor or
the effective date of any order for possession if issued prior to the date title
vests in the condemnor; and (5) "Award" means the amount of any award made,
consideration paid, or damages ordered as a result of a Taking.

                B.       Rights. The parties agree that in the event of a Taking
                         ------
all rights between them or in and to an Award shall be as set forth herein and
Tenant shall have no right to any Award except as set forth herein.

                C.       Total Taking. In the event of a Total Taking during the
                         ------------
term hereof (1) the rights of Tenant under the Lease and the leasehold estate of
Tenant in and to the Premises shall cease and terminate as of the Date of
Taking; (2) Landlord shall refund to Tenant any prepaid rent; (3) Tenant shall
pay Landlord any rent or charges due Landlord under the Lease, each prorated as
of the Date of Taking; (4) Tenant shall receive from Landlord those portions of
the Award attributable to trade fixtures of Tenant and for moving expenses of
Tenant; and (5) the remainder of the Award shall be paid to and be the property
of Landlord.



                D.       Partial Taking. In the event of a Partial Taking during
                         --------------
the term hereof (1) the rights of Tenant under the Lease and the leasehold
estate of Tenant in and to the portion of the Premises taken shall cease and
terminate as of the Date of Taking; (2) from and after the Date of Taking the
Monthly Installment of rent shall be an amount equal to the product obtained by
multiplying the Monthly Installment of rent immediately prior to the Taking by a
fraction, the numerator of which is the number of square feet contained in the
Premises after the Taking and the denominator of which is the number of square
feet contained in the Premises prior to the Taking; (3) Tenant shall receive
from the Award the portions of the Award attributable to trade fixtures of
Tenant; (4) the remainder of the Award shall be paid to and be the property of
Landlord; and (5) Landlord shall, to the extent of the Award received by it,
repair any damage to the remainder of the Premises caused by such Partial
Taking.

        18      Mechanics' Lien. Tenant shall (A) pay for all labor and services
                ---------------
performed for, materials used by or furnished to, Tenant or any contractor
employed by Tenant with respect to the Premises; (B) indemnify, defend, protect
and hold Landlord and the Premises harmless and free from any liens, claims,
liabilities, demands, encumbrances, or judgments created or suffered by reason
of any labor or services performed for, materials used by or furnished to,
Tenant or any contractor employed by Tenant with respect to the Premises; (C)
give notice to Landlord in writing five (5) days prior to employing any laborer
or contractor to perform services related to, or receiving materials for use
upon the Premises; and (D) permit Landlord to post a notice of nonresponsibility
in accordance

                                       20
<PAGE>

with the statutory requirements of California Civil Code Section 3094 or any
amendment thereof. In the event Tenant is required to post an improvement bond
with a public agency in connection with the above, Tenant agrees to include
Landlord as an additional obligee.

        19   Inspection of the Premises. Tenant shall permit Landlord and its
             --------------------------
Agents to enter the Premises at any reasonable time upon reasonable notice for
the purpose of inspecting the same, performing Landlord's maintenance and repair
responsibilities, posting a notice of non-responsibility for alterations,
additions or repairs and at any time within ninety (90) days prior to expiration
of this Lease, to place upon the Premises, ordinary "For Lease" or "For Sale"
signs.

        20   Compliance with Laws. Tenant shall, at its own cost, comply with
             --------------------
all of the requirements of all municipal, county, state and federal authorities
now in force, or which may hereafter be in force, pertaining to the use and
occupancy of the Premises, and shall faithfully observe all municipal, county,
state and federal law, statutes or ordinances now in force or which may
hereafter be in force. The judgment of any court of competent jurisdiction or
the admission of Tenant in any action or proceeding against Tenant, whether
Landlord be a party thereto or not, that Tenant has violated any such ordinance
or statute in the use and occupancy of the Premises shall be conclusive of the
fact that such violation by Tenant has occurred.

        21   Subordination. The following provisions shall govern the
             -------------
relationship of this Lease to any underlying lease, mortgage or deed of trust
which now or hereafter affects the Premises, the Building and/or the Parcel, or
Landlord's interest or estate therein (the "Project") and any renewal,
modification, consolidation, replacement, or extension thereof (a "Security
Instrument").

             A.   Priority. This Lease is subject and subordinate to all
                  --------
Security Instruments existing as of the Commencement Date. However, if any
Lender so requires, this Lease shall become prior and superior to any such
Security Instrument.

             B.   Subsequent Security Instruments. At Landlord's election, this
                  -------------------------------
Lease shall become subject and subordinate to any Security Instrument created
after the Commencement Date provided that the Lender holding such Security
Instrument agrees that in the event of foreclosure of the Security Instrument in
question, such Lender shall recognize the tenancy of Tenant on the terms and
conditions contained in this Lease so long as Tenant is not in default under
this Lease beyond any notice periods. Notwithstanding such subordination,
Tenant's right to quiet possession of the Premises shall not be disturbed so
long as Tenant is not in default beyond any notice periods and performs all of
its obligations under this Lease, unless this Lease is otherwise terminated
pursuant to its terms.

                                       21
<PAGE>

             C.   Documents. Tenant shall execute any reasonable document or
                  ---------
instrument required by Landlord or any Lender to make this Lease either prior or
subordinate to a Security Instrument, which may include such other matters as
the Lender customarily requires in connection with such agreements, including
provisions that the Lender, if it succeeds to the interest of Landlord under
this Lease, shall not be (i) liable for any act or omission of any prior
landlord (including Landlord), (ii) subject to any offsets or defenses which
Tenant may have against any prior landlord (including Landlord), (iii) bound by
any rent or Additional Rent paid more than one (1) month in advance of its date
due under this Lease unless the Lender receives it from Landlord, (iv) liable
for any defaults on the part of Landlord occurring prior to the time that the
Lender takes possession of the Premises in connection with the enforcement of
its Security Instrument, (v) liable for the return of any Security Deposit
unless such deposit has been delivered to Lender, or (vi) bound by any agreement
or modification of the Lease made without the prior written consent of Lender.
Tenant's failure to execute any such document or instrument with ten (10) days
after written demand therefor shall constitute a default by Tenant. Tenant's
obligation to execute and deliver any subordination agreement to any future
Lender shall be conditioned upon such Lender agreeing that in the event of
foreclosure of the Security Instrument in question, such Lender shall recognize
the tenancy of Tenant on the terms and conditions contained in this Lease so
long as Tenant is not in default under this Lease beyond any notice period.

             D.   Tenant's Attornment. Tenant shall attorn (1) to any purchaser
                  -------------------
of the Premises at any foreclosure sale or private sale conducted pursuant to
any Security Instrument encumbering the Premises; (2) to any grantee or
transferee designated in any deed given in lieu of foreclosure; or (3) to the
lessor under any underlying ground lease should such ground lease be terminated.

             E.   Lender. As used in this Lease, the term "Lender" shall mean
                  ------
(1) any beneficiary, mortgagee, secured party, or other holder of any deed of
trust, mortgage, or other written security device or agreement affecting the
Project; and (2) any lessor under any underlying lease under which Landlord
holds its interest in the Project.

        22   Holding Over. This Lease shall terminate without further notice at
             ------------
the expiration of the Lease Term. Any holding over by Tenant after expiration
shall not constitute a renewal or extension or give Tenant any rights in or to
the Premises except as expressly provided in this Lease. Any holding over after
the expiration with the consent of Landlord shall be construed to be a tenancy
from month to month, at one hundred fifty percent (150%) of the monthly rent for
the last month of the Lease Term, and shall otherwise be on the terms and
conditions herein specified insofar as applicable.

                                       22
<PAGE>

        23   Notices. Any notice required or desired to be given under this
             -------
Lease shall be in writing with copies directed as indicated below and shall be
personally served or given by mail. Any notice given by mail shall be deemed to
have been given when forty-eight (48) hours have elapsed from the time such
notice was deposited in the United States mails, certified and postage prepaid,
return receipt requested addressed to the party to be served with a copy as
indicated herein at the last address given by that party to the other party
under the provisions of this Paragraph 23, provided, however, if the Premises
are physically occupied by Tenant, notice of any default shall be deemed given
only upon receipt by Tenant (or upon Tenant's refusal or failure to accept
receipt). At the date of execution of this Lease, the address of Landlord is:

             SHORELINE INVESTMENTS V
             c/o Realprop Development Company
             1710 Zanker Road, Suite 100
             San Jose, CA 95112

and the address of Tenant is:

             CyberSource Corporation
             1295 Charleston Road
             Mountain View, CA 94043

        After the Commencement Date, the address of Tenant shall be at the
Premises.

        24   Attorney's Fees. In the event either party shall bring any action
             ---------------
 or legal proceeding for damages for any alleged breach of any provision of this
 Lease, to recover rent or possession of the Premises, to terminate this Lease,
 or to enforce, protect or establish any term or covenant of this Lease or right
 or remedy of either party, the prevailing party shall be entitled to recover as
 a part of such action or proceeding, reasonable attorneys' fees and court
 costs, including attorney's fees and costs for appeal, as may be fixed by the
 court or jury. The term "prevailing party" shall mean the party who received
 substantially the relief requested, whether by settlement, dismissal, summary
 judgment, judgment, or otherwise.

        25   Nonassignment.
             -------------

             A. Landlord's Consent Required. Tenant's interest in this Lease is
                ---------------------------
not assignable, by operation of law or otherwise, nor shall Tenant have the
right to sublet the Premises, transfer any interest of Tenant therein or permit
any use of the Premises by another party, without the prior written consent of
Landlord to such assignment, subletting, transfer or use, which consent Landlord
agrees not to withhold unreasonably subject to the provisions of Subparagraph
25.B below. A consent to one assignment, subletting, occupancy or use by another
party shall not be deemed to be a consent to any subsequent assignment,
subletting, occupancy or use by another party. Any

                                       23
<PAGE>

assignment or subletting without such consent shall be void and shall, at the
option of Landlord, terminate this Lease.

        Landlord's waiver or consent to any assignment or subletting hereunder
shall not relieve Tenant from any obligation under this Lease.

                B.  Transferee Information Required. If Tenant desires to assign
                    -------------------------------
its interest in this Lease or sublet the Premises, or transfer any interest of
Tenant therein, or permit the use of the Premises by another party (hereinafter
collectively referred to as a "Transfer"), Tenant shall give Landlord at least
fifteen (15) days prior written notice of the proposed Transfer and of the terms
of such proposed Transfer, including, but not limited to, the name and legal
composition of the proposed transferee, a financial statement of the proposed
transferee, the nature of the proposed transferee's business to be carried on in
the Premises, the payment to be made or other consideration to be given to
Tenant on account of the Transfer, and such other pertinent information as may
be requested by Landlord, all in sufficient detail to enable Landlord to
evaluate the proposed Transfer and the prospective transferee. It is the intent
of the parties hereto that this Lease shall confer upon Tenant only the right to
use and occupy the Premises, and to exercise such other rights as are conferred
upon Tenant by this Lease. The parties agree that this Lease is not intended to
have a bonus value nor to serve as a vehicle whereby Tenant may profit by a
future Transfer of this Lease or the right to use or occupy the Premises as a
result of any favorable terms contained herein, or future changes in the market
for leased space. It is the intent of the parties that any such bonus value that
may attach to this Lease shall be and remain the exclusive property of Landlord,
except as set forth in Paragraph 25.B(2) below. Accordingly, in the event Tenant
seeks to Transfer its interest in this Lease or the Premises, Landlord shall
have the following options, which may be exercised at its sole choice without
limiting Landlord in the exercise of any other right or remedy which Landlord
may have by reason of such proposed Transfer:

                    (1)      With respect to a proposed Transfer for
                             substantially the entire Premises for
                             substantially the entire remaining term of
                             this Lease, Landlord may elect to terminate
                             this Lease effective as of the proposed
                             effective date of the proposed Transfer and
                             release Tenant from any further liability
                             hereunder accruing after such termination date
                             by giving Tenant written notice of such
                             termination within fifteen (15) days after
                             receipt by Landlord of Tenant's notice of
                             intent to transfer as provided above. If
                             Landlord makes such election to terminate this
                             Lease, Tenant shall surrender the Premises, in
                             accordance with Paragraph 34, on or before the
                             effective termination date; or

                                       24
<PAGE>

                         (2)      Landlord may consent to the proposed Transfer
                                  on the condition that Tenant agrees to pay to
                                  Landlord, as Additional Rent, fifty percent
                                  (50%) of any and all rents or other
                                  consideration (including key money) received
                                  by Tenant from the transferee by reason of
                                  such Transfer in excess of the rent payable by
                                  Tenant to Landlord under this Lease (Landlord
                                  50%, Tenant 50%). In addition to the above
                                  allocation of Transfer profits, there is a One
                                  Thousand Five Hundred Dollars ($1,500.00)
                                  Documentation Fee to be paid to Landlord prior
                                  to Landlord approving the Transfer. Tenant
                                  expressly agrees that the foregoing is a
                                  reasonable condition for obtaining Landlord's
                                  consent to any Transfer; or

                         (3)      Landlord may reasonably withhold its consent
                                  to the proposed Transfer.

        26   Successors. The covenants and agreements contained in this Lease
             ----------
shall inure to the benefit of and be binding on the parties hereto and on their
respective heirs, successors and assigns (to the extent the Lease is
assignable).

        27   Mortgagee Protection. In the event of any default on the part of
             --------------------
Landlord, Tenant will give notice by registered or certified mail to any
beneficiary of a deed of trust or mortgagee of a mortgage encumbering the
Premises, whose address shall have been furnished to Tenant, and shall offer
such beneficiary or mortgagee a reasonable opportunity to cure the default,
including time to obtain possession of the Premises by power of sale or judicial
foreclosure, if such should prove necessary to effect a cure.

        28   Landlord Loan or Sale. Tenant agrees promptly following request by
             ---------------------
Landlord to (A) execute and deliver to Landlord any documents, including
estoppel certificates presented to Tenant by Landlord, (1) certifying that this
Lease is unmodified and in full force and effect (or, if modified, specifying
such modification and certifying that the Lease as so modified is in full force
and effect) and the date to which the rent and other charges are paid in
advance, if any, and (2) acknowledging that there are not any uncured defaults
on the part of Landlord hereunder (or specifying such defaults, if any, that are
claimed), and (3) evidencing the status of the Lease as may be required either
by a lender making a loan to Landlord to be secured by a deed of trust or
mortgage covering the Premises or a purchaser of the Premises from Landlord and
(B) to deliver to Landlord the financial statement of Tenant with an opinion of
a certified public accountant, including a balance sheet and profit and loss
statement, for the last completed fiscal year all prepared in

                                       25
<PAGE>

accordance with generally accepted accounting principles consistently applied.
Tenant's failure to deliver an estoppel certificate promptly following such
request shall be an Event of Default under this Lease.

        29   Surrender of Lease Not Merger. The voluntary or other surrender of
             -----------------------------
this Lease by Tenant, or a mutual cancellation thereof, shall not work a merger
and shall, at the option of Landlord, terminate all or any existing subleases or
subtenants, or operate as an assignment to Landlord of any or all such subleases
or subtenants.

        30   Waiver. The waiver by Landlord or Tenant of any breach of any term,
             ------
covenant or condition herein contained shall not be deemed to be a waiver of
such term, covenant or condition or any subsequent breach of the same or any
other term, covenant or condition herein contained.

        31   General.
             -------

             A.   Captions. The captions and paragraph headings used in this
                  --------
Lease are for the purposes of convenience only. They shall not be construed to
limit or extend the meaning of any part of this Lease, or be used to interpret
specific sections. The word(s) enclosed in quotation marks shall be construed as
defined terms for purposes of this Lease. As used in this Lease, the masculine,
feminine and neuter and the singular or plural number shall each be deemed to
include the other whenever the context so requires.

             B.   Definition of Landlord. The term LANDLORD as used in this
                  ----------------------
Lease, so far as the covenants or obligations on the part of Landlord are
concerned, shall be limited to mean and include only the owner at the time in
question of the fee title of the Premises, and in the event of any transfer or
transfers of the title of such fee, the Landlord herein named (and in case of
any subsequent transfers or conveyances, the then grantor) shall after the date
of such transfer or conveyance be automatically freed and relieved of all
liability with respect to performance of any covenants or obligations on the
part of Landlord contained in this Lease, thereafter to be performed; provided
that any funds in the hands of Landlord or the then grantor at the time of such
transfer, in which Tenant has an interest, shall be turned over to the grantee.
It is intended that the covenants and obligations contained in this Lease on the
part of Landlord shall, subject as aforesaid, be binding upon each Landlord, its
heirs, personal representatives, successors and assigns only during its
respective period of ownership.

             C.   Time of Essence. Time is of the essence for the performance of
                  ---------------
each term, covenant and condition of this Lease.

                                       26
<PAGE>

             D.   Severability. In case any one or more of the provisions
                  ------------
contained herein, except for the payment of rent, shall for any reason be held
to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision of this
Lease, but this Lease shall be construed as if such invalid, illegal or
unenforceable provision had not been contained herein. This Lease shall be
construed and enforced in accordance with the laws of the State of California.

             E.   Joint and Several Liability. If Tenant is more than one person
                  ---------------------------
or entity, each such person or entity shall be jointly and severally liable for
the obligations of Tenant hereunder.

             F.   Law. As used in this Lease, the term "Law", "Laws", "law" or
                  ---
"laws" shall mean any judicial decision, statute, constitution, ordinance,
resolution, regulation, rule, administrative order, or other requirement of any
government agency or authority having jurisdiction over the parties to this
Lease or the Premises or both, in effect at the Commencement Date of this Lease
or any time during the Lease Term, including, without limitation, any
regulation, order, or policy of any quasi-official entity or body (e.g., board
                                                                   ----
of fire examiners, public utility or special district).

             G.   Agent. As used in this Lease, the term "Agent" shall mean,
                  -----
with respect to either Landlord or Tenant, its respective agents, employees,
contractors (and their subcontractors), and invitees (and in the case of Tenant,
its subtenants).

             H.   WAIVER OF JURY TRIAL.
                  --------------------

             LANDLORD AND TENANT HEREBY WAIVE THEIR RESPECTIVE RIGHT
             TO TRIAL BY JURY OF ANY CAUSE OF ACTION, CLAIM,
             COUNTERCLAIM OR CROSS-COMPLAINT IN ANY ACTION, PROCEEDING
             AND/OR HEARING BROUGHT BY EITHER LANDLORD AGAINST TENANT
             OR TENANT AGAINST LANDLORD ON ANY MATTER WHATSOEVER
             ARISING OUT OF, OR IN ANY WAY CONNECTED WITH, THIS LEASE,
             THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT'S USE OR
             OCCUPANCY OF THE PREMISES, OR ANY CLAIM OF INJURY OR
             DAMAGE, OR THE ENFORCEMENT OF ANY REMEDY UNDER ANY LAW,
             STATUTE, OR REGULATION, EMERGENCY OR OTHERWISE, NOW OR
             HEREAFTER IN EFFECT.

                                       27
<PAGE>

             INITIALS:  ______ (Landlord)                ______ (Tenant)

        32   Sign. Tenant shall not place or permit to be placed any sign or
             ----
decoration on the Parcel or the exterior of the Building without the prior
written consent of Landlord; provided that Tenant shall be allowed to use the
existing sign monument in front of the Building. Tenant, upon written notice by
Landlord, shall immediately remove any sign or decoration that Tenant has placed
or permitted to be placed on the Parcel or the exterior of the Building without
the prior written consent of Landlord, and if Tenant fails to so remove such
sign or decoration within five (5) days after Landlord's written notice,
Landlord may enter upon the Premises and remove said sign or decoration and
Tenant agrees to pay Landlord, as Additional Rent upon demand, the cost of such
removal. At the termination of this Lease, Tenant shall remove any sign which it
has placed on the Parcel or Building and shall repair any damage caused by the
installation or removal of such sign.

        33   Interest on Past Due Obligations. Any Monthly Installment of rent
             --------------------------------
or any other sum due from Tenant under this Lease which is received by Landlord
after the date the same is due shall bear interest from said due date until
paid, at an annual rate equal to the greater of (the "Permitted Rate"): (1) ten
percent (10%); or (2) five percent (5%) plus the rate established by the Federal
Reserve Bank of San Francisco, as of the twenty-fifth (25th) day of the month
immediately preceding the due date, on advances to member banks under Sections
13 and 13(a) of the Federal Reserve Act, as now in effect or hereafter from time
to time amended. Payment of such interest shall not excuse or cure any default
by Tenant. In addition, Tenant shall pay all costs and attorneys' fees incurred
by Landlord in collection of such amounts.

        34   Surrender of the Premises. On the last day of the Term hereof, or
             -------------------------
on the sooner termination of this Lease, Tenant shall surrender the Premises to
Landlord in their condition existing as of the Commencement Date of this Lease,
ordinary wear and tear excepted, with all painted interior walls washed, and
other interior walls cleaned, and repaired or replaced, all carpets shampooed
and cleaned, the air conditioning and heating equipment serviced and repaired by
a reputable and licensed service firm, all floors cleaned and waxed, all to the
reasonable satisfaction of Landlord. Tenant shall remove all of Tenant's
personal property, trade fixtures and any above the ceiling cable and wiring
abandoned by the Tenant from the Premises, and all property not so removed shall
be deemed abandoned by Tenant. Tenant, at its sole cost, shall repair any damage
to the Premises caused by the removal of Tenant's personal property, machinery
and equipment, which repair shall include, without limitation, the patching and
filling of holes and repair of structural damage. If the Premises are not so
surrendered at the termination of this Lease, Tenant shall indemnify, defend,
protect and hold Landlord harmless from and against loss or liability resulting

                                       28
<PAGE>

from delay by Tenant in so surrendering the Premises including without
limitation, any claims made by any succeeding tenant or losses to Landlord due
to lost opportunities to lease to succeeding tenants.

        35   Authority. The undersigned parties hereby warrant that they have
             ---------
proper authority and are empowered to execute this Lease on behalf of Landlord
and Tenant, respectively.

        36   C. C. & R.'s. This Lease is made subject to all matters of public
             ------------
record affecting title to the property of which the Premises are a part. Tenant
shall abide by and comply with all private conditions, covenants and
restrictions of public record now or hereafter affecting the Premises and any
amendment thereof, including, but not limited to, the following:

                    Those Covenants, Conditions and Restrictions for
             the SHORELINE BUSINESS PARK regarding Architectural
             Control, Development and Use executed by New England
             Mutual Life Insurance Company and recorded on June 1,
             1979, in Book E535 at page 233, Santa Clara County
             records.

        All assessments and charges which are imposed, levied or assessed
against the Parcel and Buildings pursuant to the above-described covenants,
conditions and restrictions shall be a Common Area Charge and Tenant shall pay
its share of such assessments and charges to Landlord as provided in Paragraph
12 above.

        37   Brokers. Tenant represents and warrants to Landlord that it has not
             -------
dealt with any broker respecting this transaction (other than CRESA PARTNERS and
CORNISH & CAREY) and hereby agrees to indemnify and hold Landlord harmless from
and against any brokerage commission or fee, obligation, claim or damage
(including attorneys' fees) paid or incurred respecting any broker (other than
CRESA PARTNERS and CORNISH & CAREY) claiming through Tenant or with which/whom
Tenant has dealt.

        38   Limitation on Landlord's Liability. Tenant, for itself and its
             ----------------------------------
successors and assigns (to the extent this Lease is assignable), hereby agrees
that in the event of any actual, or alleged, breach or default by Landlord under
this Lease that:

             A.   Tenant's sole and exclusive remedy against Landlord shall be
as against Landlord's interest in the Building and Parcel;

             B.   No partner of Landlord shall be sued or named in a party in a
suit or action

                                       29
<PAGE>

(except as may be necessary to secure jurisdiction of the partnership);

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

             D.   No partner of Landlord shall be required to answer or
otherwise plead to any service of process;

             E.   No judgment will be taken against any partner of Landlord;

             F.   Any judgment taken against any partner of Landlord may be
vacated and set aside at any time nunc pro tunc;

             G.   No writ of execution will ever be levied against the assets of
any partner of Landlord;

             H.   The covenants and agreements of Tenant set forth in this
Paragraph 38 shall be enforceable by Landlord and any partner of Landlord.

                                       30
<PAGE>

        39   Hazardous Material.
             ------------------

             A.   Definitions. As used herein, the term "Hazardous Material"
                  -----------
shall mean any substance: (i) the presence of which requires investigation or
remediation under any federal, state or local statute, regulation, ordinance,
order, action, policy or common law; (ii) which is or becomes defined as a
"hazardous waste," "hazardous substance," pollutant or contaminant under any
federal, state or local statute, regulation, rule or ordinance or amendments
thereto including, without limitation, the Comprehensive Environmental Response,
Compensation and Liability Act (42 U.S.C. Section 9601 et seq.) and/or the
Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.); (iii)
which is toxic, explosive, corrosive, flammable, infectious, radioactive,
carcinogenic, mutagenic, or otherwise hazardous and is or becomes regulated by
any governmental authority, agency, department, commission, board, agency or
instrumentality of the United States, the State of California or any political
subdivision thereof; (iv) the presence of which on the Premises causes or
threatens to cause a nuisance upon the Premises or to adjacent properties or
poses or threatens to pose a hazard to the health or safety of persons on or
about the Premises; (v) the presence of which on adjacent properties could
constitute a trespass by Landlord or Tenant; (vi) without limitation which
contains gasoline, diesel fuel or other petroleum hydrocarbons; (vii) without
limitation which contains polychlorinated biphenyls (PCBs), asbestos or urea
formaldehyde foam insulation; or (viii) without limitation radon gas.

             B.   Permitted Use. Subject to the compliance by Tenant with the
                  -------------
provisions of Subparagraphs C, D, E, F, G, H, and I below, Tenant shall be
permitted to use and store on the Premises those Hazardous Materials listed in
Exhibit "C" attached hereto, in the quantities set forth in Exhibit "C", and
reasonable quantities of customary office and janitorial supplies.

             C.   Hazardous Materials Management Plan.
                  -----------------------------------

                  (i)      Prior to Tenant using, handling, transporting or
                           storing any Hazardous Material at or about the
                           Premises (including, without limitation, those listed
                           in Exhibit "C"), Tenant shall submit to Landlord a
                           Hazardous Materials Management Plan ("HMMP") for
                           Landlord's review and approval, which approval shall
                           not be unreasonably withheld. The HMMP shall
                           describe: (aa) the quantities of each material to be
                           used, (bb) the purpose for which each material is to
                           be used, (cc) the method of storage of each material,
                           (dd) the method of transporting each material to and
                           from the Premises and within the Premises, (ee) the
                           methods Tenant will employ to monitor the use of the
                           material and to

                                       31
<PAGE>

                           detect any leaks or potential hazards, and (ff) any
                           other information any department of any governmental
                           entity (city, state or federal) requires prior to the
                           issuance of any required permit for the Premises or
                           during Tenant's occupancy of the Premises. Landlord
                           may, but shall have no obligation to review and
                           approve the foregoing information and HMMP, and such
                           review and approval or failure to review and approve
                           shall not act as an estoppel or otherwise waive
                           Landlord's rights under this Lease or relieve Tenant
                           of its obligations under this Lease. If Landlord
                           determines in good faith by inspection of the
                           Premises or review of the HMMP that the methods in
                           use or described by Tenant are not adequate in
                           Landlord's good faith judgment to prevent or
                           eliminate the existence of environmental hazards,
                           then Tenant shall not use, handle, transport, or
                           store such Hazardous Materials at or about the
                           Premises unless and until such methods are approved
                           by Landlord in good faith and added to an approved
                           HMMP. Once approved by Landlord, Tenant shall
                           strictly comply with the HMMP and shall not change
                           its use, operations or procedures with respect to
                           Hazardous Materials without submitting an amended
                           HMMP for Landlord's review and approval as provided
                           above.

                  (ii)     Tenant shall pay to Landlord when Tenant submits an
                           HMMP (or amended HMMP) the amount reasonably
                           determined by Landlord to cover all Landlord's costs
                           and expenses reasonably incurred in connection with
                           Landlord's review of the HMMP which costs and
                           expenses shall include, among other things, all
                           reasonable out-of-pocket fees of attorneys,
                           architects, or other consultants incurred by Landlord
                           in connection with Landlord's review of the HMMP.
                           Landlord shall have no obligation to consider a
                           request for consent to a proposed HMMP unless and
                           until Tenant has paid all such costs and expenses to
                           Landlord, and Tenant shall pay all such costs and
                           expenses to Landlord irrespective of whether Landlord
                           consents to such proposed HMMP. Tenant shall pay to
                           Landlord on demand the excess, if any, of such costs
                           and expenses actually incurred by Landlord over the
                           amount of such costs and expenses actually paid by
                           Tenant, and Landlord shall promptly refund to Tenant
                           the excess, if any, of such costs and expenses
                           actually paid by Tenant over the amount of such costs
                           and expenses actually incurred by Landlord.

                                       32
<PAGE>

             D.   Use Restriction. Except as specifically allowed in
                  ---------------
Subparagraph B above, Tenant shall not cause or permit any Hazardous Material to
be used, stored, generated, discharged, transported to or from, or disposed of
in or about the Premises, Building or Parcel, or any other land or improvements
in the vicinity of the Premises, Building or Parcel. Without limiting the
generality of the foregoing, Tenant, at its sole cost, shall comply with all
Laws relating to the storage, use, generation, transport, discharge and disposal
by Tenant or its Agents of any Hazardous Material. If the presence of any
Hazardous Material on the Premises, Building or Parcel caused or permitted by
Tenant or its Agents results in contamination of the Premises, Building or
Parcel or any soil, air, ground or surface waters under, through, over, on, in
or about the Premises, Building or Parcel, Tenant, at its expense, shall
promptly take all actions necessary to return the Premises, Building, Parcel
and/or the surrounding real property to the condition existing prior to the
appearance of such Hazardous Material. In the event there is a release,
discharge or disposal of or contamination of the Premises, Building or Parcel by
a Hazardous Material which is of the type that has been stored, handled,
transported or otherwise used or permitted by Tenant or its Agents on or about
the Premises, Building or Parcel, Tenant shall have the burden of proving that
such release, discharge, disposal or contamination is not the result of the acts
or omissions of Tenant or its Agents.

             E.   Tenant Indemnity. Tenant shall defend, protect, hold harmless
                  ----------------
and indemnify Landlord and its Agents and Lenders with respect to all actions,
claims, losses (including, diminution in value of the Premises), fines,
penalties, fees (including, but not limited to, attorneys' and consultants'
fees) costs, damages, liabilities, remediation costs, investigation costs,
response costs and other expenses arising out of, resulting from, or caused by
any Hazardous Material used, generated, discharged, transported to or from,
stored, or disposed of by Tenant or its Agents in, on, under, over, through or
about the Premises, Building, Parcel and/or the surrounding real property.
Tenant shall not suffer any lien to be recorded against the Premises, Building
or Parcel as a consequence of the disposal of any Hazardous Material on the
Premises, Building or Parcel by Tenant or its Agents, including any so called
state, federal or local "super fund" lien related to the "clean up" of any
Hazardous Material in, over, on, under, through, or about the Premises, Building
or Parcel.

             F.   Compliance. Tenant shall immediately notify Landlord of any
                  ----------
inquiry, test, investigation, enforcement proceeding by or against Tenant or the
Premises concerning any Hazardous Material. Any remediation plan prepared by or
on behalf of Tenant must be submitted to Landlord prior to conducting any work
pursuant to such plan and prior to submittal to any applicable government
authority and shall be subject to Landlord's consent. Tenant acknowledges that
Landlord, as the owner of the Premises, at its election, shall have the sole
right to negotiate,

                                       33
<PAGE>

defend, approve and appeal any action taken or order issued with regard to any
Hazardous Material by any applicable governmental authority.

             G.   Assignment and Subletting. It shall not be unreasonable for
                  -------------------------
Landlord to withhold its consent to any proposed assignment or subletting if (i)
the proposed assignee's or subtenant's anticipated use of the Premises involves
the storage, generation, discharge, transport, use or disposal of any Hazardous
Material; (ii) if the proposed assignee or subtenant has been required by any
prior landlord, lender or governmental authority to "clean up" or remediate any
Hazardous Material; (iii) if the proposed assignee or subtenant is subject to
investigation or enforcement order or proceeding by any governmental authority
in connection with the use, generation, discharge, transport, disposal or
storage of any Hazardous Material.

             H.   Surrender. Upon the expiration or earlier termination of the
                  ---------
Lease, Tenant, at its sole cost, shall remove all Hazardous Materials from the
Premises, Building and Parcel that Tenant or its Agents introduced to the
Premises, Building and/or Parcel. If Tenant fails to so surrender the Premises,
Tenant shall indemnify, protect, defend and hold Landlord harmless from and
against all damages resulting from Tenant's failure to surrender the Premises as
required by this Paragraph, including, without limitation, any actions, claims,
losses, liabilities, fees (including, but not limited to, attorneys' and
consultants' fees), fines, costs, penalties, or damages in connection with the
condition of the Premises including, without limitation, damages occasioned by
the inability to relet the Premises or a reduction in the fair market and/or
rental value of the Premises by reason of the existence of any Hazardous
Material in, on, over, under, through or around the Premises.

             I.   Right to Appoint Consultant. Landlord shall have the right to
                  ---------------------------
appoint a consultant to conduct an investigation to determine whether any
Hazardous Material is being used, generated, discharged, transported to or from,
stored or disposed of in, on, over, through, or about the Premises, in an
appropriate and lawful manner. If Tenant has violated any Law or covenant in
this Lease regarding the use, storage or disposal of Hazardous Materials on or
about the Premises, Tenant shall reimburse Landlord for the cost of such
investigation. Tenant, at its expense, shall comply with all reasonable
recommendations of the consultant required to conform Tenant's use, storage or
disposal of Hazardous Materials to the requirements of applicable Law or to
fulfill the obligations of Tenant hereunder.

             J.   Holding Over. If any action of any kind is required or
                  ------------
requested to be taken by any governmental authority to clean-up, remove,
remediate or monitor any Hazardous Material (the presence of which is the result
of the acts or omissions of Tenant or its Agents) and such action is not
completed prior to the expiration or earlier termination of the Lease, Tenant
shall be deemed to

                                       34
<PAGE>

have impermissibly held over until such time as such required action is
completed, and Landlord shall be entitled to all damages directly or indirectly
incurred in connection with such holding over, including without limitation,
damages occasioned by the inability to re-let the Premises or a reduction of the
fair market and/or rental value of the Premises.

             K.   Provisions Survive Termination. The provisions of this
                  ------------------------------
Paragraph 39 shall survive the expiration or termination of this Lease.

             L.   Controlling Provisions. The provisions of this Paragraph 39
                  ----------------------
are intended to govern the rights and liabilities of the Landlord and Tenant
hereunder respecting Hazardous Materials to the exclusion of any other
provisions in this Lease that might otherwise be deemed applicable. The
provisions of this Paragraph 39 shall be controlling with respect to any
provisions in this Lease that are inconsistent with this Paragraph 39.

        40   Interruption. If, as a result of the active negligence or willful
             ------------
misconduct of Landlord, the Premises should become unsuitable for Tenant's use
as a consequence of the cessation of utilities or other services, interference
with access to the Premises, legal restriction or the presence of any Hazardous
Materials and in any of the foregoing cases the interference with Tenant's
intended use of the Premises continues for a period of seven (7) days or more,
Tenant shall be entitled to an equitable abatement of Base Monthly Rent and
Additional Rent from the date of the first occurrence through the time in which
the Premises are suitable for Tenant's intended use. If such interruption
continues for a period of thirty (30)) consecutive days or more, Tenant shall be
entitled to terminate this Lease, upon written notice to Landlord.

        41   Quiet Possession. Tenant shall peacefully have, hold and enjoy the
             ----------------
Premises, subject to the other terms of this Lease, provided that Tenant pays
the Monthly Installment of rent and Additional Rent and performs all of Tenant's
covenants and agreement contained in this Lease.

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

                                       35
<PAGE>

to completion within such thirty (30) day period, Tenant may, at any time
thereafter, cure the default. If Tenant, at any time, by reason of Landlord's
default, pays any reasonable amount in excess of the amounts Tenant would have
otherwise paid on account thereof as Additional Rent, the reasonable amount paid
by Tenant (in excess of what Tenant would have otherwise paid) in order to
complete Landlord's performance shall be due immediately from Landlord to Tenant
within ten (10) days after written notice.

        IN WITNESS WHEREOF, the parties have executed this Agreement on the
dates set forth below.

                                        TENANT:
                                        CyberSource Corporation, a
                                        Delaware corporation

DATED: November 11, 1999                By: /s/  Charles E. Noreen
                                        Name: Charles E. Noreen
                                        Title: Vice President of Finance and
                                        Administration and Chief Financial
                                        Officer


                                        LANDLORD:

                                        SHORELINE INVESTMENTS V, a
                                        California general partnership

DATED: November 15, 1999                By: /s/  Robert P. Moore
                                        Name: Robert P. Moore
                                        Title: General Partner
                                               ---------------

DATED: November 15, 1999                By: /s/  John J. Bertolotti
                                        Name: John J. Bertolotti
                                        Title: General Partner
                                               ---------------

                                       36
<PAGE>

                                  EXHIBIT "A"


      [Graphics entitled "Site Plan", showing Premises as cross-hatched]
<PAGE>

                                  EXHIBIT "B"

         [Graphics showing legal description of Parcel APN 116-11-030]
          -----------------------------------------------------------
<PAGE>

                                  EXHIBIT "C"

            List of Hazardous Materials Tenant will use on Premises
            -------------------------------------------------------
                            (if none, write "none")

None


        TYPE OF MATERIAL                                    QUANTITY
        ----------------                                    --------