EXHIBIT 10.23

CALIFORNIA, REDWOOD CITY (HQ)

|Address:    |  | 305 Main Street
Redwood City, CA 94063
|----------- |  | --------------------------------------
|Lease Term: |  | July 1, 1999 through June 30, 2005    

|Total Number of Square Feet: |  | $55,870    
|---------------------------- |  | -----------
|Security Deposit:            |  | $160,000.00
|Payment Schedule:            |  | $156,436.00

Monthly
installments will be subject to an annual increase during the lease term corresponding with the Consumer Price Index for the previous year, provided that such increases shall in no event be
less than four percent (4%) nor greater than six percent (6%).

Employees at this location: 249(total does include contractors)

See
attached for list of employees

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LEASE AGREEMENT

1.Parties.This Lease, dated for reference purposes as of May 7, 1999 (the
"Effective Date"), is made by and between Brugger Corporation, doing business as "Brockway Properties", a California corporation with its principal
office at 25 Haciendas Drive, Woodside, California 94062 ("Landlord"), and Niku Corporation, a Delaware corporation with its principal office at 955
Charter Street, Redwood City 94063 ("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 Redwood City, County of San Mateo, State
of California, described as follows: approximately FIFTY-FIVE THOUSAND EIGHT HUNDRED SEVENTY (55,870) square feet of floor space commonly known as the Brugger Building, located at 305 Main
Street, Redwood City, California 94063 (the "Building"), and located on a parcel of land containing a parking lot and other structures, all as shown on
the site plan (the "Site Plan") attached hereto as Exhibit A.

3.Term.The term of this Lease ("Lease Term") shall be
for six (6) years commencing on July 1, 1999 (the "Commencement Date") and ending on June 30, 2005, 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. In the event
Landlord shall permit Tenant to occupy the Premises prior to the Commencement Date, such occupancy shall be subject to all the provisions of this Lease, including the obligation to pay the Monthly
Installment of rent, and Common Area Charges.

4.Rent



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5.Security Deposit.Tenant shall deposit the sum of ONE HUNDRED SIXTY THOUSAND AND NO/100 DOLLARS
($160,000.00) (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, attorneys' 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.

6.Use of Premises.Tenant shall use the Premises only in conformance with applicable governmental
laws, regulations, rules and ordinances for the purpose of 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 act
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 Parcel outside of
the Building. Tenant shall strictly comply with the provisions of Paragraph 39 below.

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7.Taxes and Assessments.



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8.Insurance.



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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.



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Should
Tenant fail to make repairs required of Tenant hereunder forthwith upon five (5) 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, 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. 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 reason of the negligence of Tenant or any other tenant or occupant of the Parcel. In no event shall
Landlord be responsible for any consequential damages arising or alleged to have arisen from any of the foregoing matters. 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. Landlord shall not be liable for any damages arising from any act or neglect of
any other tenant, if any, of the Building 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

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"Common Area." 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. 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. Tenant shall have the exclusive use of one hundred percent (100%) of the parking spaces in the Common Area as designated from time to time by Landlord. 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 vehicle 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 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 Tenant's Pro Rata Share of such costs as provided in Paragraph 12 below.

12.Common Area Charges.Tenant shall pay to Landlord, as Additional Rent, 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 8.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.

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 and without a valid building permit issued by the appropriate governmental authority.
Landlord agrees that such consent will not be unreasonably withheld. 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 Lease Term, any alteration, addition, or change to the Common Area is required by law, regulation, ordinance or
order of any

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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.

14.Warranty, Acceptance of Premises, Disclaimer.



15.Default.



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16.Destruction.In the event that any portion of the Premises are destroyed or damaged by an uninsured
peril, Landlord or Tenant may, upon written notice to the other, given within thirty (30) days after the occurrence of such damage or destruction, elect to terminate this Lease; provided,
however, that either party may, within thirty (30) days after receipt of such notice, elect to make any required repairs and/or restoration at such party's sole cost and expense, in which event
this Lease shall remain in full force and effect, and the party having made such election to restore or repair shall thereafter diligently proceed with such repairs and/or restoration.

In
the event the Premises are damaged or destroyed from any insured peril to the extent of fifty percent (50%) or more of the then replacement cost of the Premises, Landlord or Tenant
may, upon written notice to the other, given within thirty (30) days after the occurrence of such damage or destruction, elect to terminate this Lease. If a party does not give such notice in
writing within such period, the parties shall be deemed to have elected to rebuild or restore the Premises, in which event Landlord shall, at its expense, promptly rebuild or restore the Premises to
their condition prior to the damage or destruction and Tenant shall pay to Landlord upon commencement of reconstruction the amount of any deductible from the insurance policy.

In
the event the Premises are damaged or destroyed from any insured peril to the extent of less than fifty percent (50%) of the then replacement cost of the Premises, Landlord shall,
at Landlord's expense, promptly rebuild or restore the Premises to their condition prior to the damage or destruction

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and Tenant shall pay to Landlord upon commencement of reconstruction the amount of any deductible from the insurance policy.

In
the event that, pursuant to the foregoing provisions, Landlord is to rebuild or restore the Premises, Landlord shall, within thirty (30) days after the occurrence of such
damage or destruction, provide Tenant with written notice of the time required for such repair or restoration. If such period is longer than one hundred twenty (120) days from the issuance of a
building permit, Tenant may, within thirty (30) days after receipt of Landlord's notice, elect to terminate the Lease by giving written notice to Landlord of such election, whereupon the Lease
shall immediately terminate. The period of time for Landlord to complete the repair or restoration shall be extended for delays caused by the fault or neglect of Tenant or because of acts of God, acts
of Public agencies, labor disputes, strikes, fires, freight embargoes, rainy or stormy weather, ability to obtain materials, supplies or fuels, acts of contractors or subcontractors, or delay of
contractors or subcontractors due to such causes, or other contingencies beyond the control of Landlord. Landlord's obligation to repair or restore the Premises shall not include restoration of
Tenant's trade fixtures, equipment, merchandise, or any improvements, alterations or additions made by Tenant to the Premises.

Unless
this Lease is terminated pursuant to the foregoing provisions, this Lease shall remain in full force and effect; provided, however, that during any period of repairs or
restoration, rent and all other amounts to be paid by Tenant on account of the Premises and this Lease shall be abated in proportion to the area of the Premises rendered not reasonably suitable for
the conduct of Tenant's business thereon. Tenant hereby expressly waives the provisions of Section 1932, Subdivision 2 and Section 1933, Subdivision 4 of the California Civil Code.

17.Condemnation.



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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 non responsibility in accordance 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 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 one hundred eighty (180) 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").



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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.

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, 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. At the date of execution of this Lease, the addresses of Landlord and Tenant are as set forth in the initial paragraph of this Lease,
above.

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

24.Attorneys' 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 attorneys' 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.



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26.Successors.The covenants and agreements contained in this Lease shall 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.

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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, to Tenant's knowledge, 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 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.



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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.

INITIALS:
[ILLEGIBLE] (Landlord) [ILLEGIBLE] (Tenant)

32.Signs.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, such consent not to be unreasonably withheld by Landlord. Any sign erected by the Tenant will be in full compliance with the
laws of Redwood City, and Tenant will bear all costs associated with obtaining any necessary permits. 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 Lease Term, 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 originally 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 and trade fixtures 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

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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 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.Public Record.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.

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.Broker and Commission.Landlord and Tenant acknowledge that the Tenant has been represented by
Soroush Kaboli, an independent California real estate broker (the "Broker"), in obtaining this Lease. Landlord agrees to pay the Broker a leasing commission of ONE HUNDRED THIRTY-FIVE
THOUSAND AND NO/100 DOLLARS ($135,000.00), fifty percent (50%) of which is payable upon execution of this Lease, and the remaining fifty percent (50%) upon occupancy by Tenant. The parties acknowledge
and represent that they have not dealt with any other brokers related to this Lease, and no additional brokerage commission, fee, obligation has been paid or is owed by either party.

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:



39.Hazardous Material.



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[Signature page follows.]

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

|Brugger Corporation |  | Niku Corporation  
|------------------- |  | ------------------
|By                  |  | /s/ Gisela Brugger
|Name:               |  | Gisela Brugger    
|Title:              |  | President         
|Date:               |  | 5/7/99            
|                    |  |                   
|                    |  |                   
|                    |  |                   

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ADDENDUM

This Addendum to the Lease Agreement between Brugger Corporation and Niku Corporation dated May 7, 1999, is intended to state additional terms and
conditions agreed upon by the parties. Any capitalized terms used in this Addendum will have the same meanings as are stated in the Lease.

1.Option.Tenant shall have an option to extend the term of the Lease for an additional term of five
(5) years after its termination date. The Tenant will pay base rent equal to ninety percent (90%) of the fair market value for similar "Class A" office space within the same geographic
corridor. In the event Landlord and Tenant can not reach an agreement regarding the base rental rate for the option period, the fair market value shall be established by averaging the rate established
for the property by two
licensed California real estate brokers, one of whom will be chosen by each of the parties. Provided that, in no event will the base rent for the option period be less than the last month's rent due
under the initial six year term of the Lease.

2.Operating Expenses.Notwithstanding any language to the contrary in the Lease, the parties agree
that there are no management fees, and that the Landlord's request for reimbursement of operating expenses shall be made every (3) months.

3.Building Features.Landlord agrees to construct and complete the Building with the "warm shell"
building features list presented to Tenant, as set forth on Exhibit C attached to this Lease.

4.Tenant Improvements and Allowance.Landlord shall complete the interior improvements to the Building
as set forth in the plan prepared by Landlord and attached as Exhibit C to this Lease. Landlord agrees to bear the complete cost of the construction of the lobby on the first floor of the
Building according to the plan already presented by Landlord. In addition, Landlord will pay the cost of the remaining interior improvements up to, but not to exceed, a total of $10.00 per square
foot, for a maximum improvement allowance of $558,700.00. During construction, Tenant and its agents or contractors shall have reasonable access to the Premises for purposes of installing voice, data,
and other communications equipment.

5.  Notwithstanding
any language to the contrary in the Lease, Tenant shall not be obligated to accept delivery of the Premises by Landlord until substantial completion
of the Tenant Improvements set forth In Exhibit C. The parties agree that the July 1, 1999 Commencement Date is a target day, and that the actual occupancy date is subject to the
construction process and buildout schedule.

6.  The
parties agree to keep the terms of this Lease strictly confidential.

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CONCEPTUAL: For planning purposes only.

[MAP]
305 MAIN STREET
REDWOOD CITY, CALFORNIA

Exhibit A, Page 1

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305 Main Street
Redwood City, California

[FLOOR PLANS]

Contact:Brockway PropertiesOwner and Managers
(650) 364-1008  (650) 363-5957 fax

Exhibit A, Page 2

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EXHIBIT B  TENANT IMPROVEMENT PLAN

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305 Main Street, Redwood City

Building Features

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Construction schedule

The project is under construction. The building shell is scheduled for completion in April of 1999.

Toilet rooms

Each floor has a toilet room core. Each women's toilet room has three toilets and two lavatories. One toilet stall is equipped for use by the handicapped and
both lavatories are accessible to the handicapped. The Mens toilet room has the same except it has a urinal in place of one stall. Additional stalls may be added to each toilet room. There is a
janitor closet and a drinking fountain on each floor next to the toilet rooms.

Lobby

The lobby is being constructed as a part of the shell (per plans presented). Therefore, the tenant could construct a lobby to suit their needs. The building
has two elevators with vestibules on each floor.

Drywall and finish

Drywall will be installed at stair shafts, elevator and rest room cores. The drywall will be taped, finished and painted at the inside of the stairs, rest
rooms and elevator vestibule. The exterior of the stairs, rest room cores and elevator shafts will be taped and ready to paint. The tenant will be responsible for finish in these areas. Also, the
tenant is responsible for the framing, insulation, drywall and finish at the perimeter of the second and third floors. This wall is from the floor to two feet high at the glass. The
corridor is a part of the tenant improvements. The interior of the stair shafts and rails will be finish painted as well as the interior of the toilet rooms.

Glass and skin

The shell is made of glass and E.I.F.S. cladding. The E.I.F.S. is a foam insulating finish material. The skin of the building is insulated wherever possible.
The primary glass is a high performance "Viracon" glass.

2/22/99
Exhibit C, Page 1

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305 Main Street, Redwood City

Building Features, Continued

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Heating, Ventilation and Air Conditioning (HVAC)

There are two HVAC units. Each unit is a 75 ton variable air volume (VAV) hot water reheat system with full economizers. The units have "Trane Tracer" direct
digital controls. The units are designed for 1.5 watts per s. f. lighting and 1.75 watts per s.f. Miscellaneous. For the construction of the shell, the units have vertical drops to each floor with
perimeter loop ducts at each floor. The distribution from the duct loop is by the tenant.

Electrical

[Subject to final review and approval]

As
follows:

1200
Ampere switchboard w/ GFI main breaker.

200
Ampere high voltage house panel (277/480 volt) feeding:



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