<PAGE>

                                                                   EXHIBIT 10.14

                                     LEASE
                                     -----

     THIS LEASE (the "Lease") is made as of October 17th, 2000 (dated for
                      -----
reference purposes only and referred to herein as the "Effective Date") between
Maude Avenue Land Corporation, a Delaware corporation (the "Landlord") and
Loudcloud, Inc., a Delaware corporation (the "Tenant").

                               BASIC LEASE TERMS
                               -----------------

     1.   Tenant: Loudcloud, Inc., a Delaware corporation

     2.   Premises: The entire building (the "Building") located at 1030 Maude
          Avenue, Sunnyvale, California, and the surface parking lot adjacent to
          the Building. The land on which the Premises is located is referred to
          herein as the "Land." The Land and the Building are hereinafter known
          as the "Property".

     3.   Rentable Square Footage of the Premises and Building: 120,000

     4.   Security Deposit: $23,218,790.00 Letter of Credit

          The amount of the Letter of Credit shall be subject to reduction
          and/or return to the Tenant in accordance with the terms of this
          Lease.

     5.   Permitted Use: General office use.

     6.   Tenant's Real Estate Broker: Cornish & Carey Commercial
                                       2804 Mission College Boulevard
                                       Santa Clara, CA 94054

     7.   Landlord's Real Estate Broker: Bailes & Associates
                                         11601 Wilshire Blvd.
                                         Los Angeles, CA 90025

     8.   Commencement Date: Substantial Completion of the Landlord Work and
          delivery of the Premises to Tenant with such governmental approvals,
          sign-offs or other authorizations which may be necessary for legal
          occupancy, which date is estimated to be approximately December 1,
          2000.

     9.   Termination Date: 30 months after Commencement Date, subject to early
          termination as set forth in the Lease.

     10.  Base Rent:

          Months             Rate       Monthly Rent
          ------------------------------------------

          1-12               $7.60      $912,000.00
          13-24              $7.91      $949,000.00
          25-30              $8.22      $984,000.00

                                     Page 1
<PAGE>

          The first month's Base Rent in the amount of $912,000.00 shall be paid
          upon execution of the Lease by Tenant.

     11.  Addresses for Notices:

          Landlord:

                    Maude Avenue Land Corporation
                    700 E. Middlefield
                    Mountain View, CA 94043
                    Attention: Jan Collinson

          With a copy to:

                    Jonathan Kennedy, Esq.
                    Shartsis, Friese & Ginsburg LLP
                    One Maritime Plaza, 18th Floor
                    San Francisco, CA 94111

          Tenant:

                    Loudcloud, Inc.
                    599 N. Mathilda Avenue
                    Sunnyvale, CA 94086
                    Attention: Joyce Abel

     1.   LEASE AGREEMENT AND TERM.
          ------------------------

          A.   On the terms stated in this Lease, Landlord leases the Premises
to Tenant, and Tenant leases the Premises from Landlord, for the Term beginning
on the Commencement Date (as determined in accordance with Section 3) and ending
on the Termination Date unless extended or sooner terminated pursuant to this
Lease.

          B.   Within thirty (30) days following the occurrence of the
Commencement Date, Landlord and Tenant shall enter into an agreement (which is
attached hereto as Rider 1) confirming the Commencement Date and the Termination
Date. If Tenant fails to enter into such agreement, then the Commencement Date
and the Termination Date shall be the dates designated by Landlord in such
agreement.

          C.   Landlord shall have the unilateral right, in its sole and
absolute discretion, to terminate this Lease by providing Tenant with a six (6)
month notice of termination ("Notice of Termination"); provided, however that
the date of termination set forth in the Notice of Termination shall not be
earlier than the first day of the twenty-fifth (25th) month of the Term.

                                     Page 2
<PAGE>

     2.   RENT.
          ----

          A.   Types of Rent. Commencing on the Commencement Date, Tenant shall
               -------------
pay the following Rent in the form of a check (or via wire transfer) to Landlord
pursuant to instructions to be given by Landlord to Tenant prior to the
Commencement Date.

               (1)  Base Rent. Base Rent is payable in monthly installments in
                    ---------
advance on or before the first day of each month of the Term in the amount set
forth on the Basic Lease Terms.

               (2)  Operating Cost Rent means the Operating Costs for the
                    -------------------
applicable fiscal year of the Lease, paid monthly in advance in an estimated
amount. Definitions of Operating Costs and the method for billing and payment of
Operating Cost Rent are set forth in this Article 2.

               (3)  Tax Rent means the Taxes for the applicable fiscal year of
                    --------
this Lease, paid semi-annually as set forth in Section 2.B(l) below. A
definition of Taxes and the method for billing and payment of Tax Rent are set
forth in this Article 2.

               (4)  Additional Rent in the amount of all costs, expenses,
                    ---------------
liabilities, Late Charge (as hereinafter defined) and Default Interest (as
hereinafter defined) and all other amounts which Tenant is required to pay under
this Lease, excluding Base Rent, Operating Cost Rent, and Tax Rent. Additional
Rent shall be due and payable within ten (10) business days of Landlord's
invoice therefor, except as expressly provided herein.

               (5)  Rent as used in this Lease means Base Rent, Operating Cost
                    ----
Rent, Tax Rent and Additional Rent. Tenant's agreement to pay Rent is an
independent covenant, with no right of setoff, deduction or counterclaim of any
kind.

               (6)  Default Interest. Any sum due from Tenant to Landlord not
                    ----------------
paid when due shall bear interest from the date due until paid at the lesser of
eighteen percent (18%) per annum or the maximum rate permitted by law ("Default
Interest").

               (7)  Late Charge and Interest on Late Payments. If Tenant fails
                    -----------------------------------------
to pay any installment of Rent or other charge to be paid by Tenant pursuant to
this Lease when due and payable (collectively referred to herein as a "Late
Payment"), then Tenant shall pay a late charge equal to five percent (5%) of the
amount of such Late Payment ("Late Charge"). In addition, Tenant shall pay to
Landlord Default Interest on any Late Payments of Rent from the date due until
paid. Such Late Charge and Default Interest shall constitute Additional Rent due
and payable by Tenant to Landlord upon the date of payment of the Late Payment.

     B.   Payment of Operating Cost Rent and Tax Rent.
          -------------------------------------------

               (1)  Payment of Estimated Operating Cost Rent and Tax Rent.
                    -----------------------------------------------------
Landlord shall estimate the Operating Costs and Taxes by April 1 of each fiscal
year, or as soon as reasonably possible thereafter. Landlord may revise these
estimates whenever it obtains more accurate information, such as an increase in
utility or maintenance costs. Within ten (10) days after receiving the original
or revised estimate from Landlord, Tenant shall pay Landlord one
<PAGE>

twelfth (1/12th) of this estimate, multiplied by the number of months (if any)
that have elapsed in the applicable fiscal year to the date of such payment
including the current month, minus payments previously made by Tenant for the
months elapsed. On the first day of each month thereafter, Tenant shall pay
Landlord one-twelfth (1/12th) of this estimate, until a new estimate becomes
applicable.

               (2)  Correction of Operating Cost Rent. Landlord shall deliver to
                    ---------------------------------
Tenant a report for the previous fiscal year (the "Operating Cost Report") by
April 1 of each year, or as soon as reasonably possible thereafter, setting
forth (a) the actual Operating Costs incurred, (b) the amount of Operating Cost
Rent due from Tenant, and (c) the amount of Operating Cost Rent paid by Tenant.
Within thirty (30) days after such delivery, Tenant shall pay to Landlord the
amount due minus the amount paid. If the amount paid exceeds the amount due,
Landlord shall apply the excess to Tenant's payments of Operating Cost Rent next
coming due.

               (3)  Correction of Tax Rent. Landlord shall deliver to Tenant a
                    ----------------------
report for the previous fiscal year (the "Tax Report") by April 1 of each year,
                                          ----------
or as soon as reasonably possible thereafter, setting forth (a) the actual
Taxes, (b) the amount of Tax Rent due from Tenant, and (c) the amount of Tax
Rent paid by Tenant. Within thirty (30) days after such delivery, Tenant shall
pay to Landlord the amount due from Tenant minus the amount paid by Tenant. If
the amount paid exceeds the amount due, Landlord shall apply any excess as a
credit against Tenant's payments of Tax Rent next coming due.

          C.   Definitions.
               -----------

               (1)  Included Operating Costs. "Operating Costs" means any
                    ------------------------   ---------------
expenses, costs and disbursements of any kind, without duplication, other than
Taxes, paid or incurred by Landlord in connection with the management,
maintenance, operation, insurance, repair and other related activities in
connection with any part of the Property (including the Building and the
Premises) and of the personal property, fixtures, machinery, equipment, systems
and apparatus used in connection therewith, including the cost of providing
those services required to be furnished by Landlord under this Lease and a
management fee equal to four percent (4%) of the Base Rent. Operating Costs
shall also include the costs of any capital improvements which are intended to
reduce Operating Costs or improve safety, and those made to keep the Property in
compliance with governmental requirements, or to replace existing capital
improvements, facilities and equipment within the Building or the common areas
of the Property, such as the resurfacing of the parking areas (collectively,
"Included Capital Items"), provided, that the costs of any Included Capital Item
 ----------------------
shall be amortized by Landlord, together with an amount equal to interest at ten
percent (10%) per annum, over the estimated useful life of such item and only
amortized costs are included in Operating Costs, unless the cost of the Included
Capital Item is less than Ten Thousand Dollars ($10,000) in which case it shall
be expensed in the year in which it was incurred.

               (2)  Excluded Operating Costs. Operating Costs shall not include:
                    ------------------------

                    (i)   costs of capital improvements other than Included
Capital Items;
<PAGE>

                    (ii)   interest and principal payments on mortgages or any
other debt costs, or rental payments on any ground lease of the Property;

                    (iii)  real estate brokers' leasing commissions;

                    (iv)   legal fees, space planner fees and advertising
expenses incurred with regard to leasing the Building;

                    (v)    costs or expenditures to the extent which Landlord is
reimbursed by others (e.g., insurance proceeds or warranties);

                    (vi)   franchise or income taxes imposed upon Landlord;

                    (vii)  the wages of any employee for services not related
directly to the management, maintenance, operation and repair of the Property;

                    (viii) costs incurred in connection with the removal of any
Hazardous Material, except to the extent caused by the release or emission of
the Hazardous Material in question caused or permitted by Tenant or Tenant's
agents, contractors, invitees or employees; and

                    (ix)   costs to correct any construction defect in the
Premises within the 200 day period provided in Section 3(B) hereof, and costs to
bring the Building into compliance with any CC&R's or laws existing and enforced
against the Building as of the date of Substantial Completion of the Landlord
Work (as both terms are defined in Section 3(A) hereof).

               (3)  Taxes. "Taxes" means any and all taxes, assessments and
                    -----   -----
charges of any kind, general or special, ordinary or extraordinary, levied
against the Property, which Landlord shall pay or become obligated to pay in
connection with the ownership, leasing, renting, management, use, occupancy,
control or operation of the Property or of the personal property, fixtures,
machinery, equipment, systems and apparatus used in connection therewith. Taxes
shall include real estate taxes, personal property taxes, sewer rents, water
rents, special or general assessments, transit taxes, ad valorem taxes, and any
tax levied on the rents hereunder or the interest of Landlord under this Lease
(the "Rent Tax"). Taxes shall also include all fees and other costs and expenses
      --------
paid by Landlord in seeking a refund or reduction of any Taxes, whether or not
the Landlord is ultimately successful. Taxes shall also include any assessments
or fees paid to any business park owners association, or similar entity, which
are imposed against the Property pursuant to any Covenants, Conditions and
Restrictions ("CC&R's") recorded against the Land and any installments of
               ------
principal and interest required to pay annual debt service for any existing or
future general or special assessments for public improvements, services or
benefits, and any increases resulting from reassessments imposed in connection
with any change in ownership or new construction.

     For any year, the amount to be included in Taxes (a) from taxes or
assessments payable in installments, shall be the amount of the installments
(with any interest) due and payable during such year, and (b) from all other
Taxes, shall at Landlord's election be the amount accrued, assessed, or
otherwise imposed for such year or the amount due and payable in such year. Any
<PAGE>

refund or other adjustment to any Taxes by the taxing authority shall apply
during the year in which the adjustment is made. Taxes shall not include any net
income (except Rent Tax), capital, stock, succession, transfer, franchise, gift,
estate or inheritance tax, except to the extent that such tax shall be imposed
in lieu of any portion of Taxes. If any particular tax or assessment may be paid
in installments, the amount included in Taxes shall be the amount of such
installment that is due and payable for the applicable year, whether or not
Landlord actually pays such Taxes in full or in installments.

               (4)  Lease Year. "Lease Year" means each consecutive twelve-month
                    ----------   ----------
period beginning with the Commencement Date, except that if the Commencement
Date is not the first day of a calendar month, then the first Lease Year shall
be the period from the Commencement Date through the final day of the twelve
months after the first day of the following month, and each subsequent Lease
Year shall be the twelve months following the prior Lease Year.

               (5)  Fiscal Year, "Fiscal Year" means the calendar year, except
                    -----------   -----------
that the first fiscal year and the last fiscal year of the Term may be a partial
calendar year.

          D.   Commutation of Base Rent and Rent Adjustment.
               --------------------------------------------

               (1)  Prorations. If this Lease begins on a day other than the
                    ----------
first day of a month, the Base Rent, Operating Cost Rent and Tax Rent shall be
prorated for such partial month based on the actual number of days in such
month. If this Lease begins on a day other than the first day, or ends on a day
other than the last day, of the fiscal year, Operating Cost Rent and Tax Rent
shall be prorated for the applicable fiscal year. If any Operating Cost paid in
one fiscal year relates to more than one fiscal year, Landlord may
proportionately allocate such Operating Cost among the related fiscal years.

               (2)  Rent Adjustments. The square footage of the Premises and the
                    ----------------
Building set forth in the Basic Lease Terms are conclusively deemed to be the
actual square footage thereof, without regard to any subsequent remeasurement of
the Premises or the Building.

               (3)  Miscellaneous. So long as Tenant is in breach or default of
                    -------------
any obligation under this Lease, whether or not such breach or default is
subsequently cured, Tenant shall not be entitled to any refund of any amount
from Landlord. If this Lease is terminated for any reason prior to the annual
determination of Operating Cost Rent or Tax Rent, either party shall pay the
full amount due to the other within fifteen (15) days after Landlord's notice to
Tenant of the amount when it is determined. Landlord may commingle any payments
made with respect to Operating Cost Rent or Tax Rent, without payment of
interest.

     3.   CONSTRUCTION OF INTERIOR IMPROVEMENTS; POSSESSION.
          -------------------------------------------------

          A.   Construction of Interior Improvements. Except for the Substantial
               -------------------------------------
Completion (as hereinafter defined) of the work described in Exhibit A attached
                                                             ---------
hereto and the provision of the furniture, furnishings and equipment described
in Exhibit B attached hereto (collectively, "Landlord Work"), which shall be
   ---------
constructed by Landlord at its sole cost and expense, Landlord is leasing the
Premises to Tenant "as is," without any obligation to alter,
<PAGE>

remodel, improve, or decorate any part of the Premises. For the purposes of this
Lease, "Substantial Completion" shall mean the completion of the Landlord Work
except for minor insubstantial details of construction, decoration or mechanical
adjustments which remain to be done and the obtaining of the necessary and the
issuance of the City of Sunnyvale of any certificates necessary to allow
occupancy of the Premises. In the event of any dispute as to whether Substantial
Completion has occurred, the decision of Landlord's architect shall be final and
binding on the parties. Notwithstanding the foregoing, Landlord represents and
warrants that the Premises, the building operating systems serving the Premises,
the roof of the Building and the Landlord Work shall be in good condition and in
substantial compliance with all laws as of the Commencement Date, subject to
latent defects and the punch list items.

          B.  Tenant's Possession/Condition of Premises and Property. Tenant's
              ------------------------------------------------------
taking possession of any portion of the Premises shall be conclusive evidence
that the Premises is in good order, repair and condition, subject only to those
"punch list items" noted in writing to Landlord within the thirty (30) day
period immediately following the date on which Tenant takes possession of such
portion of the Premises, and to latent defects noted in writing to Landlord
within the two hundred (200) day period immediately following the date on which
Landlord substantially completes the Landlord Work, which punch list items and
latent defects as described herein shall be responsibility of Landlord to
correct and/or repair in accordance with the terms of this Lease.

          C.  Inability to Give Possession. Landlord shall use commercially
              ----------------------------
reasonable efforts to deliver the Premises to Tenant with the Landlord Work
substantially completed on or before December 1, 2000. If the Landlord shall be
unable to give possession of the Premises on the estimated Commencement Date,
then Landlord shall not be subject to any liability for the failure to give
possession on said date. Under such circumstances the Base Rent shall not
commence until the Premises are made available to Tenant by Landlord, and no
failure to give possession on the estimated Commencement Date shall affect the
validity of this Lease or the obligations of the Tenant hereunder, provided that
the Term shall be extended by the period of time possession is delayed.
Notwithstanding the foregoing, in the event that Landlord is unable to deliver
the Premises Substantially Complete as of March 1, 2001 (the "Outside Delivery
Date"), Tenant shall have a right to terminate this Lease by written notice to
Landlord given no later than March 9, 2001. If Tenant delivers its termination
notice to Landlord, this Lease shall terminate as of March 15, 2001 unless
Landlord is able to deliver the Premises Substantially Complete on or before
that date.

          D.  Early Entry. Tenant may enter the Premises prior to the
              -----------
Commencement Date, but only in strict accordance with this subsection 3(D). In
no event shall Tenant enter the Premises prior to November 27, 200O. From and
after November 27, 2000, Tenant may enter the Premises to install Tenant's trade
fixtures and furniture, but only if the scope of work, the fixtures to be
installed, the manner and time of such installation, and the contractor
performing the installation are approved in writing by Landlord prior to such
installation, which approval will not be unreasonably withheld or delayed.
Tenant shall have a right to install a security system in the Premises, and
notwithstanding the other provisions of this Lease, remove such system at the
expiration of the Term, provided that the scope of work, the type of security
system, the manner and time of installation and the contractor performing the
installation are approved in writing by Landlord prior to such installation,
which approval will not be unreasonably withheld or delayed,

                                     Page 7
<PAGE>

and further provided that Tenant will be responsible for the entire cost of
repairing and restoring the Property after such removal as provided in Section
16 of this Lease. Such early entry shall be without payment of Base Rent and
Additional Rent, but shall otherwise be governed by all of the terms and
conditions of this Lease, including without limitation the insurance and
indemnity obligations.

     4.   SERVICES AND UTILITIES. Landlord represents and warrants that there
          ----------------------
are presently in existence water, sewer, gas and electrical lines and surface
drainage systems on the Premises which have been licensed, permitted, completed
and installed in accordance with the plans and specifications that were reviewed
by Tenant prior to the date hereof. As of the Commencement Date, Tenant shall
promptly pay, as the same become due, all charges for water, gas, electricity,
telephone, WAN and other telecommunications lines and services, sewer service,
waste pick-up and any other utilities, materials and services furnished directly
to or used by Tenant on or about the Premises during the Term, including without
limitation, (i) meter, use and/or connection fees, hook-up fees, or standby
fees. Any interruption or cessation of any services or utilities resulting from
any causes, including any entry for repairs pursuant to this Lease, and any
renovation, redecoration or rehabilitation of any area of the Building shall not
render Landlord liable for damages to either person or property or for
interruption or loss to Tenant's business, nor be construed as an eviction of
Tenant, nor work an abatement of any portion of Rent, nor relieve Tenant from
fulfillment of any covenant or agreement hereof.

     5.   SECURITY DEPOSIT
          ----------------

          A.  Tenant concurrently with the execution of this Lease shall provide
a letter of credit (the "Letter of Credit") to Landlord in the amount of the
Security Deposit, which Letter of Credit shall be substantially in the form of
Exhibit C attached to this Lease.
---------

          B.  The Letter of Credit, among other provisions, (i) shall be issued
by a commercial bank reasonably satisfactory to Landlord ("Issuer"); (ii) shall
be payable in the City of San Francisco or the City of San Jose, (iii) shall be
an unconditional and irrevocable letter of credit; (iv) shall be freely
transferable by Landlord, (v) shall be automatically renewed for successive one
year periods; (v) shall provide that it is governed by the Uniform Customs and
Practice for Documentary Credits (1993 revisions), International Chamber of
Commerce Publication No. 500 and (vi) shall be kept in effect during the entire
term of the Lease plus a period of ninety (90) days thereafter. Landlord may
only draw upon the Letter of Credit (i) upon a Default (as defined in Section 14
hereof), or (ii) as provided in the Letter of Credit, if the Letter of Credit is
not renewed as required under this Lease.

          C. The Letter of Credit may be applied by Landlord to cure, in whole
or part, any Default of Tenant under this Lease, and upon notice by Landlord of
such application, Tenant shall replenish the Security Deposit in full by paying
to Landlord within ten (10) days of demand the amount so applied. Landlord's
application of the Security Deposit shall not constitute a waiver of Tenant's
Default to the extent that the Security Deposit does not fully compensate
Landlord for all losses, damages, costs and expenses incurred by Landlord in
connection with such Default and shall not prejudice any other rights or
remedies available to Landlord under this Lease or by Law. If converted to cash,
Landlord shall not pay any interest on the Security Deposit or to keep the
Security Deposit separate from its general accounts. The Security Deposit

                                     Page 8
<PAGE>

shall not be deemed an advance payment of Rent or a measure of damages for any
Default by Tenant under this Lease, nor shall it be a bar or defense of any
action that Landlord may at any time commence against Tenant. In the absence of
evidence satisfactory to Landlord of an assignment of the right to receive the
Security Deposit or the remaining balance thereof, Landlord may return the
Security Deposit to the original Tenant, regardless of one or more assignments
of this Lease. Upon the transfer of Landlord's interest under this Lease,
Landlord's obligation to Tenant with respect to the Security Deposit shall
terminate upon transfer to the transferee of the Security Deposit, or any
balance thereof. If Tenant shall fully and faithfully comply with all the terms,
provisions, covenants, and conditions of this Lease, the Security Deposit, or
any balance thereof, shall be returned to Tenant within thirty (30) days after
Landlord recovers possession of the Premises or such longer time as may be
permissible under Law. Tenant hereby waives any and all rights of Tenant under
the provisions of Section 1950.7 of the California Civil Code or other Law
regarding security deposits.

          D.  Subject to subsection (G) below, provided that Tenant has not
committed a Default hereunder, Tenant shall have the right to reduce the Letter
of Credit in the following amounts and as of the following dates, by following
the procedure provided in subsection (F) below:

              (i)   As of the date that is the first day of the seventh (7/th/)
month after the IPO Date (as defined in this paragraph), the Letter of Credit
may be reduced to $17,414,093. The "IPO Date" shall mean the later of the
Commencement Date and the date of any initial public offering of shares of
Tenant on the New York Stock Exchange, the American Stock Exchange or the NASDAQ
Exchange;

              (ii)  As of the date that is the first day of the thirteenth
(13/th/) month after the IPO Date, the Letter of Credit may be reduced to
$13,060,570;

              (iii) As of the date that is the first day of the nineteenth
(19/th/) month after the IPO Date, the Letter of Credit may be reduced to
$9,795,428; and

              (iv)  As of the date that is the first day of the twenty-fifth
(25/th/) month after the IPO Date, the Letter of Credit may be reduced to
$7,346,571.

          E.  Subject to subsection (G) below, provided that Tenant has not
committed a Default hereunder, Tenant shall have the right to reduce the Letter
of Credit in the following amounts and as of the following dates, by following
the procedure provided in subsection (F) below:

              (i)   As of the date that is the first day of the seventh (7/th/)
month after the Commencement Date, the Letter of Credit may be reduced to
$19,570,790;

              (ii)  As of the date that is the first day of the thirteenth
(13/th/) month after the Commencement Date, the Letter of Credit may be reduced
to $15,922,790;

              (iii) As of the date that is the first day of the nineteenth
(19/th/) month after the Commencement Date, the Letter of Credit may be reduced
to $12,126,790; and

                                     Page 9
<PAGE>

              (iv)  As of the date that is the first day of the twenty-fifth
(25th) month after the Commencement Date, the Letter of Credit may be reduced to
$8,330,790.

          F.  As of each date that the Letter of Credit is permitted to be
reduced as described above, Tenant shall provide to Landlord a written notice
informing Landlord that such condition has been met. Provided Landlord
reasonably agrees that the requirements for reduction of the Letter of Credit
have been complied with as set forth in this Section, the amount of the Letter
of Credit shall be reduced as provided herein, by either an amendment to the
Letter of Credit or a replacement Letter of Credit. It shall be the
responsibility of Tenant to obtain and pay for any such amendment or replacement
Letter of Credit.

          G.  Tenant shall be required to elect whether it wants to exercise its
rights under subsection (D) or subsection (E) above. In the event Tenant elects
to exercise its rights to reduce the Letter of Credit under subsection (D)
above, then subsection (E) above shall be of no further force or effect and
Tenant shall have no rights to reduce the Letter of Credit under subsection (E).
In the event Tenant elects to exercise its rights to reduce the Letter of Credit
under subsection (E) above, then subsection (D) above shall be of no further
force or effect and Tenant shall have no rights to reduce the Letter of Credit
under subsection (D).

     6.   ALTERATIONS.
          -----------

          A.  Landlord's Consent and Conditions. Tenant shall not make any
              ---------------------------------
improvements or alterations to the Premises (the "Work") without in each
                                                  ----
instance submitting plans and specifications for the Work to Landlord and
obtaining Landlord's prior written consent, which may be given or withheld in
Landlord's sole and absolute discretion. In the event that Landlord consents to
such Work, Landlord shall prepare a budget for such Work and, upon Tenant's
approval of such budget, Landlord shall perform the Work. Tenant shall pay all
costs and expenses of such Work, including Landlord's actual out-of-pocket costs
incurred for reviewing of all of the plans and all other items submitted by
Tenant, and including paying to Landlord a construction management fee equal to
five percent (5%) of the cost of the Work. Payment shall be made within ten (10)
business days of Landlord's invoice therefor.

          B.  Ownership. Upon completion, (i) all Work and all furniture (except
              ---------
Tenant's Furniture, as defined below, and except as otherwise agreed in writing
by Landlord and Tenant) shall become the property of Landlord, and (ii) Tenant's
trade fixtures and furniture installed and paid for by Tenant (except for
furniture that is attached to the Work, the Building or any of Landlord's
furniture, which attached furniture shall become the property of Landlord) (the
"Tenant's Furniture)) and items which Landlord requires Tenant to remove at
Tenant's cost at the termination of the Lease shall be the property of Tenant.
All Work and all furniture owned by Landlord shall be surrendered to Landlord
with the Premises at the termination of the Lease or of Tenant's right to
possession, or at Landlord's option (which shall be stated at the time Landlord
consents to such Work), shall be removed in accordance with this Article.

          C.  Damage to Systems. Landlord may also at any reasonable time make
              -----------------
any repairs or alterations which Landlord deems necessary for the safety or
protection of the Property, or which Landlord is required to make by any court
or pursuant to any insurance

                                    Page 10
<PAGE>

requirements and all applicable governmental laws, ordinances and regulations
("Governmental Requirements"). The cost of any repairs made by Landlord on
  -------------------------
account of Tenant's Default, or on account of the misuse or neglect by Tenant or
its invitees, contractors or agents anywhere in the Building, shall become
Additional Rent payable by Tenant on demand.

          D.  No Liens. Tenant has no authority to cause or permit any lien or
              --------
encumbrance of any kind to affect Landlord's interest in the Property; any such
lien or encumbrance shall attach to Tenant's interest only. If any mechanic's
lien shall be filed or claim of lien made for work or materials furnished to
Tenant, then Tenant shall at its expense within ten (10) days thereafter either
discharge or contest the lien or claim. If Tenant contests the lien or claim,
then Tenant shall (i) within such ten (10) day period, provide Landlord adequate
security for the lien or claim, (ii) contest the lien or claim in good faith by
appropriate proceedings that operate to stay its enforcement, and (iii) pay
promptly any final adverse judgment entered in any such proceeding. If Tenant
does not comply with these requirements, Landlord may discharge the lien or
claim, and the amount paid, as well as attorney's fees and other expenses
incurred by Landlord, shall become Additional Rent payable by Tenant on demand.

          E.  Intentionally Omitted.
              ---------------------

          F.  Removal Upon Termination. Upon the termination of this Lease or
              ------------------------
Tenant's right of possession Tenant shall remove from the Premises and Building
its trade fixtures, furniture, moveable equipment and other personal property,
any improvements which Landlord elects shall be removed by Tenant pursuant to
this Article, and any improvements to any portion of the Property other than the
Premises. If Tenant does not timely remove such property, then Tenant shall be
conclusively presumed to have, at Landlord's election (i) conveyed such property
to Landlord without compensation or (ii) abandoned such property, and Landlord
may dispose of or store any part thereof in any manner at Tenant's sole cost,
without waiving Landlord's right to claim from Tenant all expenses arising out
of Tenant's failure to remove the property, and without liability to Tenant or
any other person. Landlord shall have no duty to be a bailee of any such
personal property. If Landlord elects abandonment, Tenant shall pay to Landlord,
upon demand, any expenses incurred for disposition.

     7.   USE OF PREMISES.
          ---------------

          A.  Limitation on Use. Tenant shall use the Premises only for the
              -----------------
Permitted Use stated in the Basic Lease Terms. Tenant shall not allow any use of
the Premises which will negatively affect the cost of coverage of Landlord's
insurance on the Property, unless Tenant pays any additional premiums as a
result of such use. Tenant shall not permit any nuisance or waste upon the
Premises, or allow any offensive noise or odor in or around the Premises. At the
end of each business day, or more frequently if necessary, Tenant shall deposit
all garbage and other trash (excluding any inflammable, explosive and/or
hazardous materials) in trash bins or containers approved by Landlord in
locations designated by Landlord from time to time. If any governmental
authority shall deem the Premises to be a "place of public accommodation" under
the Americans with Disabilities Act or any other comparable law as a result of
Tenant's peculiar use, Tenant shall either modify its use to cause such
authority to rescind its designation or be responsible for any alterations,
structural or otherwise, required to be made to the Building or the Premises
under such laws.

                                    Page 11
<PAGE>

          B.  Signs. Tenant shall not place on any portion of the exterior or
              -----
interior of the Building any permanent or semi-permanent sign, placard,
lettering, displays or other advertising or communicative material ("Sign")
without the prior written approval of Landlord, which approval with respect to a
Sign on the exterior of the Building Landlord may give or withhold in its sole
discretion, and which approval with respect to a Sign in the interior of the
Building Landlord shall not unreasonably withhold. Tenant may put a banner on
the Building for a period not to exceed two (2) weeks with Landlord's prior
approval, which approval shall not be unreasonably withheld. Landlord shall have
the right to reasonably approve the location, design, size and materials of any
proposed signage. Subject to Landlord's reasonable approval, Tenant shall have
the right, at Tenant's sole cost and expense, to place its name on a monument
sign, which monument shall be in a location approved by Landlord. Any approved
signs shall strictly conform to all Governmental Requirements and any CC&R's
recorded against the Property. Tenant shall, at its sole cost and expense,
maintain such signs in good condition and repair. Tenant shall remove the signs
upon the termination of the Lease and repair any damage caused to the Property
by such removal.

          C.  Parking. Tenant shall have the right to park in the Building's
              -------
parking facilities without the payment of a parking fee (but Operating Costs
shall include the cost and expense of the maintenance and operation of such
parking facilities) upon terms and conditions as may from time to time be
established by Landlord. Landlord shall not be liable to Tenant, nor shall this
Lease be affected, if any parking is impaired by moratorium, initiative,
referendum, law, ordinance, regulation or order passed, issued or made by any
governmental or quasi-governmental body. Tenant shall comply with all
Governmental Requirements, including any traffic mitigation requirements imposed
by any federal, state or local governmental or quasi-governmental agency or
entity.

          D.  Prohibition Against Use of Roof and Structure of Building. Tenant
              ---------------------------------------------------------
shall be prohibited from using all or any portion of the roof of the Building or
any portion of the structure of the Building during the Term of this Lease for
any purposes (including without limitation for the installation, maintenance and
repair of a satellite dish and/or other telecommunications equipment), without
the prior written consent of Landlord, which consent Landlord may withhold in
its sole discretion. Notwithstanding the foregoing, Tenant shall have a right to
install one antenna or satellite dish in a location determined by Landlord on
the roof, provided Tenant executes a separate agreement prepared by Landlord
concerning Tenant's rights and obligations with respect to such antenna or
satellite dish, and further provided that Landlord shall have the right to
approve the size of such antenna or satellite dish.

     8.   GOVERNMENTAL REQUIREMENTS AND BUILDING RULES. Tenant shall comply with
          --------------------------------------------
all Governmental Requirements applying to its use of the Premises. Tenant shall
also comply with all reasonable rules for the Property which may be established
and amended from time to time by Landlord ("Rules and Regulations"). The present
Rules and Regulations are set forth in Exhibit D.

     9.   REPAIR AND MAINTENANCE.
          ----------------------

          Landlord shall keep in good order, condition and repair the Building
and the Premises, including all Building systems and common areas, and including
all utilities and

                                    Page 12
<PAGE>

related utility lines and pipes outside of the Building. The costs incurred by
Landlord to perform the foregoing obligations shall be "Operating Costs" (as
defined in and subject to the terms of Section 2C) and shall be passed through
to Tenant. Any damage to any of the foregoing caused by the negligence or
willful acts or omissions of Tenant or of Tenant's agents, employees or
invitees, or by reason of the failure of Tenant to perform or comply with any
terms of this Lease, or caused by Tenant or Tenant's agents, employees or
contractors during the performance of any work shall be repaired by Landlord,
solely at Tenant's expense, or at Landlord's election, such repairs shall be
made by Tenant, at Tenant's expense, with contractors approved by Landlord.
Tenant agrees to exercise reasonable efforts to give Landlord prompt
notification of the need for any repairs or maintenance; provided that such
notification shall not affect Landlord's obligation to perform periodic
inspections of the Building during the Lease Term. Tenant waives the provisions
of Sections 1941 and 1942 of the California Civil Code and any similar or
successor law regarding Tenant's right to make repairs and deduct the expenses
of such repairs from the Rent due under this Lease.

     10.  INSURANCE; INDEMNIFICATION: WAIVER OF SUBROGATION
          -------------------------------------------------

          A.   Tenant's Insurance. Tenant shall maintain insurance as follows,
               ------------------
with such other terms, coverages and insurers, as Landlord shall reasonably
require from time to time:

               (1)  Commercial general liability insurance ("CGL"), with (a)
contractual liability including the indemnification provisions contained in this
Lease, (b) a severability of interest endorsement, (c) limits of not less than
One Million Dollars ($1,000,000) combined single limit per occurrence and not
less than Two Million Dollars ($2,000,000) in the aggregate for bodily injury,
sickness or death, and property damage.

               (2)  Property Insurance on a "Special Form" - property form
covering the replacement cost of all of Tenant's trade fixtures, equipment and
personal property,

               (3)  Statutory workers' compensation or similar insurance in form
          and amounts required by law and employer's liability insurance with a
          one Million Dollar ($l,000,000) limit, including a waiver of
          subrogation in favor of the Landlord.

               (4)  Owned, non-owned and hired automobile liability coverage in
          the amount of One Million Dollars ($l,000,000) in a form reasonably
          acceptable to Landlord.

               (5)  A Ten Million Dollar ($l0,000,000) excess liability umbrella
          policy also covering excess workers compensation and automobile
          liability required in Subsections 10(A) (l), (3) and (4) above.

     Tenant's insurance shall be primary and not contributory to that carried by
Landlord, its agents, or mortgagee. Landlord, and if any, Landlord's building
manager or agent, mortgagee and ground lessor shall be named as additional
insureds as respects to CGL and automobile liability coverage. The company or
companies writing any insurance which Tenant is required to maintain under this
Lease, as well as the form of such insurance, shall at all times be subject to

                                    Page 13
<PAGE>

Landlord's written approval. Such insurance companies shall have a A.M. Best
rating of AX or better.

               (4)  Tenant shall cause any general contractor of Tenant
performing Work on the Premises to maintain insurance as follows, with such
other terms, coverages and insurers, as Landlord shall reasonably require from
time to time: (i)Commercial General Liability Insurance, including contractor's
liability coverage, contractual liability coverage, completed operations
coverage, broad form property damage endorsement, and contractor's protective
liability coverage, to afford protection with limits, for each occurrence, of
not less than Five Million Dollars ($5,000,000) with respect to personal injury,
death or property damage. Such policy or policies shall also cover any Work
which is performed by subcontractors hired by the general contractor and (ii)
Workers' compensation or similar insurance in form and amounts required by law.
Such insurance shall contain a waiver of subrogation provision in favor of
Landlord and its agents.

     Tenant's contractor's insurance shall be primary and not contributory to
that carried by Tenant, Landlord, their agents or mortgagees. Tenant and
Landlord, and if any, Landlord's building manager or agent, mortgagee or ground
lessor shall be named as additional insured on Tenant's contractor's insurance
policies.

          D.   Insurance Certificates. Tenant shall deliver to Landlord
               ----------------------
certificates evidencing all insurance required to be maintained by Tenant no
later than ten (10) days prior to the Commencement Date. Each certificate will
provide for thirty (30) days prior written notice of cancellation, termination
or non-renewal to Landlord and Tenant.

          E.   Landlord's Insurance. Landlord shall maintain property insurance
               --------------------
on a "Special Form" - property form on the Building, for the full replacement
cost of the Building, including all alterations and tenant improvements and all
of Landlord's furniture, with such terms, coverages and conditions as Landlord
reasonably determines to be appropriate, the cost of which shall be included in
Operating Costs.

          F.   Indemnification. To the fullest extent permissible under
               ---------------
applicable law, Tenant shall indemnify, defend, protect and hold harmless
Landlord and its shareholders, officers, directors, employees and agents against
any and all claims by any third party for injury to any person or damage to or
loss of any property occurring on or about the Property, except to the extent
caused by the gross negligence or willful misconduct of Landlord or Landlord's
agents. Tenant's obligations under this section shall survive the termination of
this Lease.

          G.   Waiver of Subrogation. Notwithstanding anything to the contrary
               ---------------------
in this Lease, Landlord and Tenant release each other and their respective
agents, employees, successors and assigns from all liability for damage to any
property that is actually covered by property insurance in force or which would
have been covered by property insurance, had the party obtained insurance
required under the terms of this Lease, without regard to the negligence of the
entity so released. In addition, Landlord and Tenant agree as follows:

               (i)  Landlord agrees that, so long as the same is permitted under
the laws of the State of California, it will include in its "Special Form"
policies appropriate clauses

                                    Page 14
<PAGE>

pursuant to which the insurance companies (i) waive all right of subrogation
against Tenant with respect to losses payable under such policies and/or (ii)
agree that such policies shall not be invalidated should the insured waive in
writing prior to a loss any or all right of recovery against any party for
losses covered by such policies. If such waiver and agreement from Landlord's
insurer are available only for an additional premium or fee, Tenant agrees to
reimburse Landlord for the cost thereof.

               (ii) Tenant agrees to include, so long as the same is permitted
 under the laws of the State of California, in its "Special Form" insurance
 policy or policies on Tenant's furniture, furnishings, fixtures and other
 property removable by Tenant under the provisions of this Lease appropriate
 clauses pursuant to which the insurance company or companies (i) waive the
 right of subrogation against Landlord and/or any tenant of space in the
 Building with respect to losses payable under such policy or policies and/or
 (ii) agree that such policy or policies shall not be invalidated should the
 insured waive in writing prior to a loss any or all right of recovery against
 any party for losses covered by such policy or policies.

     11.  FIRE AND CASUALTY.
          -----------------

          A.   Termination. If a fire or other casualty causes substantial
               -----------
damage to the Building, Landlord shall engage a registered architect to certify
to both Landlord and Tenant the amount of time needed to restore the Building to
tenantability, using standard working methods without the payment of overtime
and other premiums. If the time needed exceeds twelve (12) months from the
beginning of the restoration, as certified by Landlord's architect, either
Landlord or Tenant may terminate this Lease by notice delivered to the other
party within ten (10) business days after Landlord's delivery to Tenant of the
architect's certificate. If sufficient insurance proceeds will not be available
to Landlord to cover the cost of any restoration to the Building, because (i)
the casualty was not required to be insured against by this Lease and was not
actually insured, or (ii) of insolvency or financial condition of Landlord's
insurance carrier, Landlord may terminate this Lease by written notice to
Tenant, unless Tenant elects to cover the shortfall in proceeds and deposits
with Landlord 125% of the cost of such shortfall, as reasonably determined by
Landlord. Any termination pursuant to this Section 10 shall be effective thirty
(30) days from the date of such termination notice and Rent shall be paid by
Tenant to that date, with an abatement for any portion of the space which has
been untenantable after the casualty.

          B.   Restoration. If a casualty causes damage to the Building but this
               -----------
Lease is not terminated for any reason, then subject to the rights of any
mortgagees or ground lessors, Landlord shall obtain the applicable insurance
proceeds and diligently restore the Building subject to then-current
Governmental Requirements. 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.

     12.  EMINENT DOMAIN. If a part of the Property is taken by eminent domain
          --------------
or deed in lieu thereof which is so substantial that the Premises cannot
reasonably be used by Tenant for the operation of its business, then either
party may terminate this Lease effective as of the date of the taking. Rent
shall abate from the date of the taking in proportion to any part of the
Premises taken. If there is a temporary taking of a part of the Building which
is so substantial that the Premises cannot reasonably be used by Tenant for the
operation of its business, then

                                    Page 15
<PAGE>

Rent shall abate from the date of the taking in proportion to any part of the
Premises taken. The entire award for a taking of any kind shall be paid to
Landlord, and Tenant shall have no right to share in the award, except (i) any
separate award made to Tenant for the taking of Tenant's personal property and
trade fixtures, or its relocation costs, and (ii) in the event of a temporary
taking in which there was no Rent abatement under this Lease, then Tenant shall
be entitled to any portion of the award which was intended to compensate
Landlord for lost rent during the period of the temporary taking. All
obligations accrued to the date of the taking shall be performed by each party.

     13.  RIGHTS RESERVED TO LANDLORD. Landlord may exercise at any time any of
          ---------------------------
the following rights respecting the operation of the Building without liability
to Tenant of any kind:

          A.   Name. To change the name of the Building or the Property.
               ----

          B.   Signs. To install, modify and/or maintain necessary and
               -----
reasonably appropriate signs on the exterior and in the interior of the Building
or on the Property, provided that Landlord may not install on the exterior of
the Building or on the Property a sign with the name of any party other than
Tenant; and to approve prior to installation, any of Tenant's signs in the
Premises visible from the exterior of the Building.

          C.  Window Treatments. To approve, at its discretion, prior to
              -----------------
installation, any shades, blinds, ventilators or window treatments of any kind,
as well as any lighting within the Premises that may be visible from the
exterior of the Building.

          D.  Keys. To retain and use passkeys to enter the Premises or any door
              ----
within the Premises in accordance with Section 13E. Tenant shall not alter or
add any lock or bolt.

          E.  Access. To have access to the Premises with prior (written or
              ------
telephonic) notice and in accordance with Tenant's reasonable security program
procedures (except in the case of an emergency in which case Landlord shall have
the right to immediate access) to inspect the Premises, and to perform its
obligations, or make repairs, alterations, additions or improvements, as
permitted by this Lease.

          F.  Preparation for Reoccpancy. To decorate, remodel, repair, alter or
              --------------------------
otherwise prepare the Premises for reoccupancy at any time after Tenant abandons
the Premises, without relieving Tenant of any obligation to pay Rent.

          G.  Heavy Articles. To approve the weight, size, placement and time
              --------------
and manner of movement within the Building of any safe, central filing system or
other heavy article of Tenant's property. Tenant shall move its property
entirely at its own risk.

          H.  Show Premises. To show the Premises to prospective purchasers,
              -------------
lenders, mortgagees, investors, or rating agencies at any reasonable time, or
prospective tenants during the last twelve (12) months of the Term; provided
that Landlord gives reasonable prior (written or telephonic) notice to Tenant
and does not materially interfere with Tenant's use of the Premises.  Landlord
shall use commercially reasonable efforts to comply with Tenant's reasonable
security measures, during any such entry, except in the event of an emergency.

                                    Page 16
<PAGE>

          I.   Repairs and Alterations. To make repairs or alterations to the
               -----------------------
Property and in doing so transport any required material through the Premises,
to close entrances, doors, corridors, elevators and other facilities in the
Property, to open any ceiling in the Premises, or to temporarily suspend
services or use of "common areas" in the Building. Landlord may perform any such
repairs or alterations after reasonable advance notice to Tenant (except in the
event of an emergency, when notice shall not be required) during ordinary
business hours (except in the event of an emergency), except that Tenant may
require any work in the Premises to be done after business hours if Tenant pays
Landlord for overtime and any other additional expenses incurred. Landlord may
do or permit any work on any nearby building, land, street, alley or way.
Landlord and its contractors and agents shall have the right to enter the
Building at any time (24 hours a day, 7 days a week) in connection with its
rights and obligations under this Lease. Notwithstanding the foregoing, Landlord
shall not exercise any of the foregoing rights to the extent doing so would
unreasonably interfere with Tenant's use of or access to the Premises. When
making any repairs or alterations to the Property, Landlord shall use
commercially reasonable efforts to minimize disruption to Tenant's business;
provided that in no event will Landlord be required to employ overtime or after-
hours workers or to incur additional expenses in order to comply with this
Section.

          J.   Landlord's Agents. If Tenant is in Default under this Lease,
               -----------------
possession of Tenant's funds or negotiation of Tenant's negotiable instrument by
any of Landlord's agents shall not waive any breach by Tenant or any remedies of
Landlord under this Lease.

          K.   CC&R's. Landlord may promulgate and record covenants, conditions
               ------
and restrictions ("CC&R's") which will govern the access, parking, design,
signage and other rights of occupants of the Property, so long as such CC&R's do
not impose any new payment obligation on Tenant (i.e., a dues requirement) or
require Tenant to modify any of the then existing improvements.

     14.  TENANT'S DEFAULT. Any of the following shall constitute a "Default" by
          ----------------
Tenant.

          A.   Rent Default. Tenant fails to pay any Rent within five (5) days
               ------------
after receiving notice that such Rent is past due; provided that (if such notice
is delivered in accordance with Section 1161 of the California Code of Civil
Procedure) such notice shall be in lieu of and not in addition to any notice
required under Section 1161 of the California Code of Civil Procedure, and
further provided that after the second such failure in a calendar year, only the
passage of time, but no notice, shall be required to establish a Default in the
same calendar year;

          B.   Assignment/Sublease or Hazardous Substances Default. Tenant
               ---------------------------------------------------
defaults in its obligations under Article 16 "Assignment and Sublease" or
Article 17 "Hazardous Material";

          C.   Other Performance Default . Tenant fails to perform any other
               -------------------------
obligation to Landlord under this Lease, and this failure continues for thirty
(30) days after written notice from Landlord (provided that (if such notice is
delivered in accordance with Section 1161 of the California Code of Civil
Procedure) such notice shall be in lieu of and not in addition to any

                                    Page 17
<PAGE>

notice required under Section 1161 of the California Code of Civil Procedure,
and further provided that after the second such failure in a calendar year, only
the passage of time, but no notice, shall be required to establish a Default in
the same calendar year), except that if Tenant begins to cure its failure within
the thirty (30) day period but cannot reasonably complete its cure within such
period, then, so long as Tenant continues to diligently attempt to cure its
failure, the thirty (30) day period shall be extended to one hundred twenty
(120) days, or such lesser period as is reasonably necessary to complete the
cure;

          D.   Credit Default. One of the following credit defaults occurs:
               --------------

               (1)  Tenant commences any proceeding under any law relating to
bankruptcy, insolvency, reorganization or relief of debts, or seeks appointment
of a receiver, trustee, custodian or other similar official for the Tenant or
for any substantial part of its property, or any such proceeding is commenced
against Tenant and either remains undismissed for a period of sixty (60) days or
results in the entry of an order for relief against Tenant which is not fully
stayed within seven (7) days after entry;

               (2)  Tenant becomes bankrupt, does not generally pay its debts as
they become due, or admits in writing its inability to pay its debts, or makes a
general assignment for the benefit of creditors;

               (3)  Any third party obtains a levy or attachment under process
of law against Tenant's leasehold interest; and

          E.   Abandonment Default. Tenant abandons the Premises.
               -------------------

          F.   Estoppel Default. Tenant fails to execute, acknowledge and
               ----------------
deliver to Landlord an estoppel certificate within the time frame and as
otherwise provided in Section 23 hereof, or a subordination agreement within the
time frame and as otherwise provided in Section 19 hereof, and this failure
continues for three (3) days after written notice from Landlord (provided that
(if such notice is delivered in accordance with Section 1161 of the California
Code of Civil Procedure) such notice shall be in lieu of and not in addition to
any notice required under Section 1161 of the California Code of Civil
Procedure, and further provided that after the second such failure in a calendar
year, only the passage of time, but no notice, shall be required to establish a
Default in the same calendar year).

     15.  LANDLORD REMEDIES. Upon a Default, Landlord shall have the following
          -----------------
remedies, in addition to all other rights and remedies provided by law or
otherwise provided in this Lease, to which Landlord may resort cumulatively or
in the alternative:

          A.   This Lease shall continue in effect for so long as Landlord does
not terminate Tenant's right to possession by written notice as provided herein,
and Landlord may enforce all its rights and remedies under this Lease, including
the right to recover Rent as it becomes due under this Lease. In such event,
Landlord shall have all of the rights and remedies of a landlord under
California Civil Code Section 1951.4 (lessor may continue Lease in effect after
Tenant's Default and abandonment and recover Rent as it becomes due, if Tenant
has the right to sublet or assign, subject only to reasonable limitations), or
any successor statute. During such time as Tenant is in Default, if Landlord has
not terminated this Lease by written notice and

                                    Page 18
<PAGE>

if Tenant requests Landlord's consent to an assignment of this Lease or a
sublease of the Premises, subject to Landlord's option to recapture), Landlord
shall not unreasonably withhold its consent to such assignment or sublease.
Tenant acknowledges and agrees that in the absence of written notice pursuant to
this Article terminating Tenant's right to possession, no other act of Landlord
shall constitute a termination of Tenant's right to possession or an acceptance
of Tenant's surrender of the Premises, including acts of maintenance or
preservation or efforts to relet the Premises or the appointment of a receiver
upon initiative of Landlord to protect Landlord's interest under this Lease or
the withholding of consent to a subletting or assignment, or terminating a
subletting or assignment, if in accordance with other provisions of this Lease.

          B.   Landlord may enter the Premises and release them to third parties
for Tenant's account for any period, whether shorter or longer than the
remaining Term. Tenant shall be liable immediately to Landlord for all costs
Landlord incurs in reletting the Premises or any part thereof, including,
without limitation, broker's commissions, expenses of cleaning and redecorating
the Premises required by the reletting and like costs. Tenant shall pay to
Landlord the Rent and other sums due under this Lease on the date the Rent is
due, less the rent and other sums received by Landlord from any releasing. No
act by Landlord other than giving written notice to Tenant shall terminate this
Lease. Acts of maintenance, efforts to relet the Premises or the appointment of
a receiver on Landlord's initiative to protect Landlord's interest under this
Lease shall not constitute a termination of Tenant's right to possession.

          C.   Landlord may terminate this Lease by giving Tenant written notice
of termination, in which event this Lease shall terminate on the date for
termination set forth in such notice. Tenant shall immediately vacate the
Premises and deliver possession to Landlord, and Landlord may repossess the
Premises and may, at Tenant's sole cost, remove any of Tenant's signs and any of
its other property, without relinquishing its right to receive Rent or any other
right against Tenant. On termination, Landlord has the right to recover from
Tenant as damages:

               (1)  The worth at the time of award of unpaid Rent and other sums
due and payable which had been earned at the time of termination; plus

               (2)  The worth at the time of award of the amount by which the
unpaid Rent and other sums due and payable which after termination until the
time of award exceeds the amount of such Rent loss that Tenant proves could have
been reasonably avoided, plus

               (3)  The worth at the time of award of the amount by which the
unpaid Rent and other sums due and payable for the balance of the Term after the
time of award exceeds the amount of such Rent loss that Tenant proves could be
reasonably avoided; plus

               (4)  Any other amount necessary to compensate Landlord for all
the 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, any costs or
expenses incurred by Landlord: (i) in retaking possession of the Premises; (ii)
in maintaining, repairing, preserving, restoring, replacing, cleaning, altering
or rehabilitating the Premises or any portion thereof, including such acts for
reletting to a new

                                    Page 19
<PAGE>

tenant or tenants; (iii) for leasing commissions; or (iv) for any other costs
necessary or appropriate to relet the Premises; plus

          (5)  At Landlord's election, such other amounts in addition to or in
lieu of the foregoing as may be permitted from time to time by the laws of the
State of California.

     The "worth at the time of award" of the amounts referred to in Sections
          --------------------------
14C(l) and 14C(2) is computed by allowing interest at the maximum rate permitted
by law on the unpaid rent and other sums due and payable from the termination
date through the date of award. The "worth at the time of award" of the amount
referred to in Section 14C(3) is computed by discounting such amount at the
discount rate of the Federal Reserve Bank of San Francisco at the time of award
plus one percent (1%). Tenant waives redemption or relief from forfeiture under
California Code of Civil Procedure Sections 1174 and 1179, or under any other
present or future law, in the event Tenant is evicted or Landlord takes
possession of the Premises by reason of any Default of Tenant hereunder.

          D.   Landlord's Remedies Cumulative. All of Landlord's remedies under
               ------------------------------
this Lease shall be in addition to all other remedies Landlord may have at law
or in equity. Waiver by Landlord of any breach of any obligation by Tenant shall
be effective only if it is in writing, and shall not be deemed a waiver of any
other breach, or any subsequent breach of the same obligation. Landlord's
acceptance of payment by Tenant shall not constitute a waiver of any breach by
Tenant, and if the acceptance occurs after Landlord's notice to Tenant. or
termination of the Lease or of Tenant's right to possession, the acceptance
shall not affect such notice or termination. Acceptance of payment by Landlord
after commencement of a legal proceeding or final judgment shall not affect such
proceeding or judgment. Landlord may advance such monies and take such other
actions for Tenant's account as reasonably may be required to cure or mitigate
any Default by Tenant. Tenant shall immediately reimburse Landlord for any such
advance, and such sums shall bear interest at the Default Interest rate until
paid.

          E.   WAIVER OF TRIAL BY JURY. EACH PARTY WAIVES TRIAL BY JURY IN THE
               -----------------------
EVENT OF ANY LEGAL PROCEEDING BROUGHT BY THE OTHER IN CONNECTION WITH THIS
LEASE. EACH PARTY SHALL BRING ANY ACTION AGAINST THE OTHER IN CONNECTION WITH
THIS LEASE IN A FEDERAL OR STATE COURT LOCATED IN CALIFORNIA, CONSENTS TO THE
JURISDICTION OF SUCH COURTS, AND WAIVES ANY RIGHT TO HAVE ANY PROCEEDING
TRANSFERRED FROM SUCH COURTS ON THE GROUND OF IMPROPER VENUE OR INCONVENIENT
FORUM.

          F.   Tenant hereby waives any and all rights to relief from
forfeiture, redemption or reinstatement granted by Law (including California
Civil Code of Procedure Sections 1174 and 1179) in the event of Tenant being
evicted or dispossessed for any cause or in the event of Landlord obtaining
possession of the Premises by reason of Tenant's Default or otherwise;

          G.   Litigation Costs. Tenant shall pay Landlord's reasonable
               ----------------
attorneys' fees and other costs in enforcing this Lease, whether or not suit is
filed.

                                    Page 20
<PAGE>

     16.  SURRENDER.
          ---------

          (a)  Upon the expiration or earlier termination of this Lease for any
reason, it is Tenant's obligation to surrender the Premises to Landlord in its
condition existing as of the Commencement Date, normal wear and tear and damage
by fire or other casualty excepted (the "Required Condition"). Except for the
removal of Tenant's personal property and trade fixtures, which Tenant shall
remove at its sole expense, Landlord shall perform, at the cost and expense of
Tenant, the work necessary to restore the Premises to the Required Condition.
Tenant shall pay the cost of performing the work necessary to restore the
Premises to the Required Condition, together with a construction management fee
equal to five percent (5%) of such costs and interest at the Interest Rate from
the date of expenditure by Landlord, within ten (10) business days after
receiving Landlord's invoice for such work.

          (b)  Restoring the Premises to the Required Condition shall include
but not be limited to the following: all interior walls repaired and repainted
if marked or damaged, all carpets shampooed and cleaned, all broken, marred or
nonconforming acoustical ceiling tiles replaced, all windows washed, the
plumbing and electrical systems and lighting in good order and repair, including
replacement of any burned out or broken light bulb or ballasts, the HVAC
equipment serviced and repaired by a reputable and licensed service firm
acceptable to Landlord, all floors cleaned and waxed and, if Tenant has
performed any alterations which Landlord does not elect to retain the removal of
such alterations and the restoration of the Premises to its condition prior to
their installation. To the extent the cost of restoring the Premises to the
Required Condition is increased due to Landlord's failure to maintain the
Premises in accordance with the terms of this Lease, Tenant shall not be
responsible for such excess cost.

          (c)  If Tenant fails to remove any personal property, and such failure
continues after the termination of this Lease, Landlord may retain or dispose of
such property and all rights of Tenant with respect to it shall cease, or
Landlord may place all or any portion of such property in public storage for
Tenant's account. Tenant shall be liable to Landlord for all costs of removal of
Tenant's personal property and storage and transportation costs of same,
together with a construction management fee equal to five percent (5%) of such
costs and interest at the Interest Rate from the date of expenditure by
Landlord.

          (d)  If the Premises are not surrendered at the termination of this
Lease in accordance with this Section 16, Tenant shall indemnify Landlord
against all loss or liability, including attorneys' fees and costs, resulting
from delay by Tenant in so surrendering the Premises.

     17.  ASSIGNMENT AND SUBLEASE.
          -----------------------

     A.   In General. Tenant shall not, without the prior consent of Landlord in
          ----------
each case, (i) make or allow any assignment or transfer, by operation of law or
otherwise, of any part of Tenant's interest in this Lease, (ii) grant or allow
any lien or encumbrance, by operation of law or otherwise, upon any part of
Tenant's interest in this Lease, (iii) sublet any part of the Premises, or (iv)
permit anyone other than Tenant and its employees to occupy any part of the
Premises. For purposes of this Article, an assignment shall be deemed to include
a change of twenty-five (25%) percent of the shares of Tenant, resulting from
any transfer, sale or assignment

                                    Page 21
<PAGE>

of shares of stock of Tenant occurring by operation of Law or otherwise if
Tenant is a corporation whose shares of stock are not traded publicly, or a
transfer or series of transfers of all or substantially all of Tenant's assets.
Notwithstanding the foregoing, transfers of stock in a corporation whose shares
are traded in the "over-the-counter" market or any recognized national
securities exchange shall not constitute an assignment for purposes of this
lease, provided that the principal purpose of such transfer or transfers is not
to avoid the restrictions on assignment otherwise applicable under this Article.
Tenant shall remain primarily liable for all of its obligations under this
Lease, notwithstanding any assignment or transfer. No consent granted by
Landlord shall be deemed to be a consent to any subsequent assignment or
transfer, lien or encumbrance, sublease or occupancy. Tenant shall pay all of
Landlord's attorneys' fees in the amount of $l,000.00 and other expenses
incurred in connection with any consent requested by Tenant or in reviewing any
proposed assignment or subletting. Any assignment or transfer, grant of lien or
encumbrance, or sublease or occupancy without Landlord's prior written consent
shall be void.

          B.   Landlord's Consent. Subject to Landlord's right to recapture the
               ------------------
Premises or portion of the Premises affected by the assignment or subletting,
Landlord will not unreasonably withhold its consent to any proposed assignment
or subletting. Without limitation, it shall be reasonable for Landlord to
withhold its consent to any assignment or sublease if (i) Tenant is in Default
under this Lease, (ii) the financial responsibility, nature of business, and
character of the proposed assignee or subtenant are not all reasonably
satisfactory to Landlord, (iii) in the reasonable judgment of Landlord the
purpose for which the assignee or subtenant intends to use the Premises (or a
portion thereof) is inconsistent with the character of the Property or would
violate the terms of this Lease, or (iv) the proposed assignee or subtenant is a
government entity. The foregoing shall not exclude any other reasonable basis
for Landlord to withhold its consent.

          C.   Procedure. Tenant shall notify Landlord of any proposed
               ---------
assignment or sublease at least thirty (30) days prior to its proposed effective
date. The notice shall include the name and address of the proposed assignee or
subtenant, its corporate affiliates in the case of a corporation and its
partners in a case of a partnership, and sufficient information to permit
Landlord to determine the financial responsibility and character of the proposed
assignee or subtenant. As a condition to any effective assignment of this Lease,
the assignee shall execute and deliver in form satisfactory to Landlord prior to
the effective date of the assignment, an assumption of all of the obligations of
Tenant under this Lease. As a condition to any effective sublease, any subtenant
shall execute and deliver in form satisfactory to Landlord prior to the
effective date of the sublease, an agreement to comply with all of Tenant's
applicable obligations under this Lease, and at Landlord's option, an agreement
(except for the economic obligations which subtenant will undertake directly to
Tenant) to attorn to Landlord under the terms of the sublease in the event this
Lease terminates before the sublease expires. Landlord shall notify Tenant in
writing of its approval or disapproval of the proposed sublease or assignment or
its decision to exercise its rights under Section 18 (D) within thirty (30) days
after receipt of Tenant's Notice (and all required information).

          D.   Recapture. Landlord shall have the right and option to exclude
               ---------
from the Premises covered by this Lease ("Recapture") the space proposed to be
sublet or subject to the assignment (except subleases or assignments to an
Affiliate that comply with the provisions of

                                    Page 22
<PAGE>

subsection F below), effective as of the proposed commencement date of such
sublease or assignment. If Landlord elects to recapture, Tenant shall surrender
possession of the space proposed to be subleased or subject to the assignment to
Landlord on the effective date of recapture of such space from the Premises,
such date being the Termination Date for such space. Effective as of the date of
recapture of any portion of the Premises pursuant to this section, the Base
Rent, the Rentable Square Footage of the Premises, Tenant's share of Operating
Costs Rent, Tenant's share of Tax Rent and the allocation of parking spaces
shall be adjusted accordingly.

          E.   Excess Payments. If Tenant shall assign this Lease or sublet any
               ---------------
part of the Premises (except subleases or assignments to an Affiliate that
comply with the provisions of subsection F below) for consideration in excess of
the pro-rata portion of Rent applicable to the space subject to the assignment
or sublet, then Tenant shall pay to Landlord as Additional Rent seventy-five
percent (75%) of any such excess immediately upon receipt; provided that Tenant
shall be first entitled to recover the reasonable costs actually incurred by
Tenant in connection with the sublet for leasing commissions and attorneys'
fees.

          F.   Assignment to Affiliates. Notwithstanding the foregoing,
               ------------------------
Landlord's consent shall not be required with respect to an assignment or
subletting to an Affiliate (as hereinafter defined), provided that (1) the
assignee is a reputable entity of good character, (2) a duplicate original duly
executed sublease or assignment in a form approved by Landlord shall have been
delivered to Landlord at least fifteen (15) days prior to the effective date of
any such assignment or subletting (or in the case of a corporate acquisition or
merger, within ten (10) days after the first date upon which such corporate
acquisition or merger may be announced to the public under applicable law), (3)
such assignment or subletting is for a legitimate business purpose and not
principally for the purpose of avoiding the restrictions on assignment or
subletting otherwise applicable under this Article, and (4) in the case of an
assignment, such assignee has a net worth, computed in accordance with generally
accepted accounting principles (excluding goodwill and intangible assets) at
least equal to or greater than the greater of (a) Tenant's Net Worth as of the
date of this Lease and (b) Tenant's Net Worth immediately preceding such
assignment. For purposes of this Article, the term "Affiliate" shall mean any
                                                    ---------
entity which controls or is controlled by or under common control with Tenant, a
successor corporation related to Tenant by merger, consolidation or
nonbankruptcy reorganization, or a purchaser of substantially all of Tenant's
assets or substantially all of Tenant's assets located in the Premises, or of
substantially all of Tenant's stock, and the term "control" shall mean, in the
case of a corporation, ownership or voting control, directly or indirectly, of
at least fifty (50%) percent of all the voting stock, and in case of a joint
venture, limited liability company, partnership or similar entity, ownership,
directly or indirectly, of at least fifty (50%) percent of all the general or
other partnership, membership (or similar) interests therein. "Affiliate" shall
                                                               ---------
also include Tenant after a change of twenty-five (25%) percent of the shares of
Tenant, resulting from any transfer, sale or assignment of shares of stock of
Tenant occurring by operation of Law or otherwise if Tenant is a corporation
whose shares of stock are not traded publicly. In the event of an assignment or
subletting permitted under this subsection, Tenant shall provide Landlord with
ten (10) days' prior notice of any such proposed action together with evidence
reasonably satisfactory to Landlord to establish that such entity is an
Affiliate, in the case of an assignment, the Net Worth of such entity and an
instrument by which such entity shall expressly assume this Lease by an
instrument satisfactory to Landlord.

                                    Page 23
<PAGE>

          G.  In the event of any sublease or assignment, whether or not with
Landlord's consent, Tenant shall not be released or discharged from any
liability, whether past, present or future, under this Lease, including any
liability arising from the exercise of any renewal or expansion option, to the
extent such exercise is expressly permitted by Landlord. Tenant's liability
shall remain primary, and in the event of default by any subtenant, assignee or
successor of Tenant in performance or observance of any of the covenants or
conditions of this Lease, Landlord may proceed directly against Tenant without
the necessity of exhausting remedies against said subtenant, assignee or
successor. If Landlord grants consent to such sublease or assignment, Tenant
shall pay all reasonable attorneys' fees and expenses incurred by Landlord with
respect thereto.

          H.   If Tenant shall assign this Lease as permitted herein, the
assignee shall expressly assume all of the obligations of Tenant hereunder in a
written instrument satisfactory to Landlord and furnished to Landlord not later
than fifteen (15) days prior to the effective date of the assignment. If Tenant
shall sublease the Premises as permitted herein, Tenant shall, at Landlord's
option, within fifteen (15) days following any request by Landlord, obtain and
furnish to Landlord the written agreement of such subtenant to the effect that
the subtenant will attorn to Landlord and will pay all subrent directly to
Landlord.

          18.  HAZARDOUS MATERIALS.

          A.   Tenant shall comply with all Environmental Laws (as hereinafter
defined) pertaining to Tenant's occupancy and use of the Premises and concerning
the proper storage, handling and disposal of any Hazardous Material (as
hereinafter defined) introduced to the Premises, the Building or the Property by
Tenant or other occupants of the Premises, or their employees, servants, agents,
contractors, customers or invitees. Landlord shall comply with all Environmental
Laws applicable to the Property other than those to be complied with by Tenant
pursuant to the preceding sentence. Tenant shall not generate, store, handle or
dispose of any Hazardous Material in, on, or about the Property without the
prior written consent of Landlord, which may be withheld in Landlord's sole
discretion, except that such consent shall not be required to the extent of
Hazardous Material packaged and contained in office products for consumer use in
general business offices in quantities for ordinary day-to-day use provided such
use does not give rise to, or pose a risk of, exposure to or release of
Hazardous Material. In the event that Tenant is notified of any investigation or
violation of any Environmental Law arising from Tenant's activities at the
Premises, Tenant shall immediately deliver to Landlord a copy of such notice. In
such event or in the event Landlord reasonably believes that a violation of
Environmental Law exists, Landlord may conduct such tests and studies relating
to compliance by Tenant with Environmental Law or the alleged presence of
Hazardous Material upon the Premises as Landlord deems desirable, all of which
shall be completed at Tenant's expense, if it is determined that Tenant has
breached its obligations under this Section. Landlord's inspection and testing
rights are for Landlord's own protection only, and Landlord has not, and shall
not be deemed to have assumed any responsibility to Tenant or any other party
for compliance with Environmental Laws, as a result of the exercise, or non-
exercise of such rights. Tenant hereby indemnifies, and agrees to defend,
protect and hold harmless, the Indemnitees from any and all loss, claim, demand,
action, expense, liability and cost (including attorneys' fees and expenses)
arising out of or in any way related to the presence of any Hazardous Material
introduced to the Premises during the Lease Term by any party other than
Landlord. In case of any action or proceeding brought against the

                                    Page 24
<PAGE>

Indemnitees by reason of any such claim, upon notice from Landlord, Tenant
covenants to defend such action or proceeding by counsel chosen by Landlord, in
Landlord's reasonable discretion. Landlord reserves the right to settle,
compromise or dispose of any and all actions, claims and demands related to the
foregoing indemnity.

          B.   "Environmental Law" or "Environmental Laws" mean all laws,
statutes, or regulations governing the use, storage, disposal or generation of
any Hazardous Material, including, without limitation, the Comprehensive
Environmental Response Compensation and Liability Act of 1980, as amended, and
the Resource Conservation and Recovery Act of 1976, as amended.

          C.   "Hazardous Material" means such substances, material and wastes
which are or become regulated under any Environmental Law; or which are
classified as hazardous or toxic under any Environmental Law; and explosives and
firearms, radioactive material, asbestos, polychlorinated biphenyls, and
petroleum products.

     19.  SUBORDINATION TO GROUND LEASES AND MORTGAGE.
          -------------------------------------------

          A.   Subordination. Landlord shall have the right to cause this Lease
               -------------
to be subordinate to any future ground lease or mortgage respecting the
Building, and any amendments to such ground lease or mortgage, at the election
of the ground lessor or mortgagee as the case may be, provided that the
mortgagee or ground lessor and Tenant shall enter into a nondisturbance
agreement on such mortgagee's or ground lessor's standard form, whereby such
mortgagee or ground lessor agrees that notwithstanding such subordination, in
the event of foreclosure or deed in lieu thereof, such mortgagee or ground
lessor shall recognize Tenant's rights under this Lease, and so long as Tenant
is not in Default under this Lease after the expiration of any applicable notice
and cure periods, Tenant may remain in possession of the Premises under the
terms of this Lease. In the event that any mortgage or deed of trust is
foreclosed or a conveyance in lieu of foreclosure is made for any reason, Tenant
shall, notwithstanding any subordination, attorn to and become the Tenant of the
successor in interest to Landlord; provided such mortgagee or beneficiary
recognizes this Lease and Tenant's right to possession of the Premises on the
terms contained herein. Tenant shall execute and deliver, within seven (7) days
after receipt of written demand by Landlord and in the form reasonably requested
by Landlord, any additional documents evidencing the priority or subordination
of this Lease with respect to any such mortgage or deed of trust.

          B.   Termination of Ground Lease or Foreclosure of Mortgage. If any
ground lease is terminated or mortgage foreclosed or deed in lieu of foreclosure
given and the ground lessor, mortgagee, or purchaser at a foreclosure sale shall
thereby become the owner of the Building, Tenant shall attorn to such ground
lessor or mortgagee or purchaser without any deduction or setoff by Tenant, and
this Lease shall continue in effect as a direct lease between Tenant and such
ground lessor, mortgagee or purchaser. The ground lessor or mortgagee or
purchaser shall be liable as Landlord only during the time such ground lessor or
mortgagee or purchaser is the owner of the Building. At the request of Landlord,
or any ground lessor or mortgagee, Tenant shall execute and deliver within ten
(10) days of the request any document furnished by the requesting party to
evidence Tenant's agreement to attorn.

                                    Page 25
<PAGE>

          C.  Security Deposit. Any ground lessor or mortgagee shall be
              ----------------
responsible for the return of any security deposit by Tenant to the extent the
security deposit, if any, is received by such ground lessor or mortgagee.

          D.  Notice and Right to Cure. Tenant agrees to send by registered or
              ------------------------
certified mail to any ground lessor or mortgagee identified in any notice from
Landlord to Tenant a copy of any notice of default sent by Tenant to Landlord.
If Landlord fails to cure such default within the required time period under
this Lease, but ground lessor or mortgagee begins to cure within ten (10) days
after such period and proceeds diligently to complete such cure, then ground
lessor or mortgagee shall have such additional time as is necessary to complete
such cure, including any time necessary to obtain possession if possession is
necessary to cure, and Tenant shall not begin to enforce its remedies so long as
the cure is being diligently pursued.

     20.  HOLDOVER. Tenant shall have no right to holdover possession of the
          --------
Premises after the expiration or termination of this Lease without Landlord's
prior written consent which Landlord may withhold in its sole and absolute
discretion. If, however, Tenant retains possession of any part of the Premises
after the Term, Tenant shall become a month-to-month tenant for the entire
Premises upon all of the terms of this Lease as might be applicable to such
month-to-month tenancy, except that Tenant shall pay all of Base Rent at two
hundred fifty percent (250%) of the rate in effect immediately prior to such
holdover, computed on a monthly basis for each full or partial month Tenant
remains in possession. Tenant shall also pay Landlord all of Landlord's direct
and consequential damages resulting from Tenant's holdover. No acceptance of
Rent or other payments by Landlord under these holdover provisions shall operate
as a waiver of Landlord's right to regain possession or any other of Landlord's
remedies.

     21.  EXCULPATION OF LANDLORD. Tenant agrees, on its behalf and on behalf of
          -----------------------
its successors and assigns, that any liability or obligation under this Lease
shall only be enforced against Landlord's equity interest in the Property up to
a maximum of Five Million Dollars ($5,000,000.00) and in no event against any
other assets of the Landlord, or Landlord's officers or directors or partners,
and that any liability of Landlord with respect to this Lease shall be so
limited and Tenant shall not be entitled to any judgment in excess of such
amount.

     22.  CONVEYANCE BY LANDLORD. If Landlord shall at any time transfer its
          ----------------------
interest in the Building or this Lease, upon the assumption of this Lease by
such transferee, Landlord shall be released of any obligations and Tenant shall
look solely to Landlord's successors for performance of such obligations. This
Lease shall not be affected by any such transfer.

     23.  ESTOPPEL CERTIFICATE. Tenant shall, within seven (7) days of receiving
          --------------------
a request, execute, acknowledge in recordable form, and deliver to Landlord or
its designee a certificate stating, subject to a specific statement of any
applicable exceptions, that the Lease as amended to date is in full force and
effect, that the Tenant is paying Rent and other charges on a current basis, and
that to the best of the knowledge of the certifying party, the other party has
committed no uncured defaults and has no offsets or claims. The certifying party
may also be required to state the date of commencement of payment of Rent, the
Commencement Date, the Termination Date, the Base Rent, the current Operating
Cost Rent and Tax Rent estimates, the

                                    Page 26
<PAGE>

status of any improvements required to be completed by Landlord, and the amount
of any security deposit.

     24.  FINANCIAL STATEMENTS. Within ten (10) days after Landlord's written
          --------------------
request therefor, Tenant shall deliver to Landlord copies of Tenant's most
recent audited financial statements. Landlord shall use commercially reasonable
efforts to keep such statements confidential, and shall sign a commercially
reasonable non-disclosure statement evidencing such agreement by Landlord.
Notwithstanding the foregoing, Landlord may show such financial statements to
prospective purchasers and lenders, provided such entities sign a commercially
reasonable non-disclosure statement.

     25.  FORCE MAJEURE. Neither party shall be in default under this Lease to
          -------------
the extent that it is unable to perform any of its obligations on account of any
strike or labor problem, equipment, material, supplies or energy shortages
(i.e., such items cannot be obtained at normal costs within a reasonable time
because of limited availability), governmental preemption or prescription,
national emergency, or any other cause of any kind beyond its reasonable control
(provided that the foregoing shall not apply to any monetary obligation) ("Force
                                                                           -----
Majeure").
-------

     26.  NOTICES. All notices, consents, approvals and similar communications
          -------
to be given by one party to the other under this Lease, shall be given in
writing, mailed or personally delivered to the parties at the addresses set
forth in the Basic Lease Terms or to such other person at such other address as
Tenant may designate by notice to Landlord.

Notices shall be sent by personal delivery or by United States certified or
registered mail, or by a reputable national overnight courier service, postage
prepaid. Mailed notices shall be deemed to have been given on the earlier of
actual delivery or three (3) business days after posting in the United States
mail in the case of registered or certified mail, and one business day in the
case of overnight courier. Notices delivered by personal delivery shall be
deemed given on the date of delivery, unless such date is a weekend or holiday,
in which event such notice shall be deemed given on the next-succeeding business
day.

     27.  QUIET POSSESSION. So long as Tenant shall perform all of its
          ----------------
obligations under this Lease, Tenant shall enjoy peaceful and quiet possession
of the Premises, free of any person claiming by, through or under Landlord,
subject to all of the terms of this Lease.

     28.  REAL ESTATE BROKER. Tenant represents to Landlord that Tenant has not
          ------------------
dealt with any real estate broker with respect to this Lease except for any
broker(s) listed in the Basic Lease Terms, and no other broker is in any way
entitled to any broker's fee or other payment in connection with this Lease.
Tenant shall indemnify and defend Landlord against any claims by any other
broker or third party claiming under Tenant for any payment of a leasing
commission, finder's fee or similar payment in connection with this Lease.
Landlord shall indemnify and defend Tenant against any claims by any other
broker or third party claiming under Landlord for any payment of a leasing
commission, finder's fee or similar payment in connection with this Lease.
Landlord shall pay the commissions to the brokers identified in the Basic Lease
Terms pursuant to a separate agreement.

                                    Page 27
<PAGE>

     29.  MISCELLANEOUS.
          -------------

          A.  Successors and Assigns. Subject to the limits on Tenant's
              ----------------------
assignment contained herein, the provisions of this Lease shall be binding upon
and inure to the benefit of all successors and assigns of Landlord and Tenant.

          B.  Date Payments are Due. Except for payments of Base Rent or
              ---------------------
payments to be made by Tenant under this Lease which are due upon demand, Tenant
shall pay to Landlord any amount for which Landlord renders a statement of
account within thirty (30) days of Landlord's delivery of Landlord's statement.

          C.  Meaning; of "Landlord," "Re-Entry," and "including".  The term
              ---------------------------------------------------
"Landlord" means only the owner of the Building and the lessor's interest in
this Lease from time to time. The words "re-entry" and "re-enter" are not
restricted to their technical legal meaning. The words "including" and similar
words shall mean including, without limitation.

          D.  Time of the Essence. Time is of the essence of each provision of
              -------------------
this Lease.

          E.  No Option. This document shall not be effective for any purpose
              ---------
until it has been executed and delivered by both parties.

          F.  Severability. The unenforceability of any provision of this Lease
              ------------
shall not affect any other provision.

          G.  Governing Law. This Lease shall be governed in all respects by the
              -------------
laws of the State of California.

          H.  No Oral Modification. No modification of this Lease shall be
              --------------------
effective unless it is a written modification signed by both parties.

          I.  Landlord's Right to Cure. Landlord may cure any Default by Tenant
              ------------------------
and any expenses incurred by Landlord in connection with the exercise of such
cure shall become Additional Rent due from Tenant on demand by Landlord.

          J.  Captions. The captions used in this Lease shall have no effect on
              --------
the construction of this Lease.

          K.  Authority. Landlord and Tenant each represents to the other that
              ---------
it has full power and authority to execute and perform this Lease.

          L.  Landlord's Enforcement of Remedies. Landlord may enforce any of
              ----------------------------------
its remedies under this Lease either in its own name or through an agent.

                                    Page 28
<PAGE>

          M.  Entire Agreement. This Lease, together with all Appendices,
              ----------------
constitutes the entire agreement between the parties. No representations or
agreements of any kind have been made by either party which are not contained in
this Lease.

          N.  Landlord's Title. Landlord's title shall always be paramount to
              ----------------
the interest of the Tenant, and nothing in this Lease shall empower Tenant to do
anything which might in any way impair Landlord's title.

          O.  Light and Air Rights. Landlord does not grant in this Lease any
              --------------------
rights to light and air in connection with Property.

          P.  Singular and Plural. Wherever appropriate in this Lease, a
              -------------------
singular term shall be construed to mean the plural where necessary, and a
plural term the singular. For example, if at any time two parties shall
constitute Landlord or Tenant, then the relevant term shall refer to both
parties together.

          Q.  No Construction Against Drafting Party. The rule of construction
              --------------------------------------
that ambiguities are resolved against the drafting party shall not apply to this
Lease.

          R.  Survival. All obligations of Landlord and Tenant under this Lease
              --------
shall survive the termination of this Lease.

          S.  Building Manager and Service Providers. Landlord may perform any
              --------------------------------------
of its obligations under this Lease through its employees or third parties hired
by the Landlord.

                                    Page 29
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the
date set forth above.

                               LANDLORD:

                               MAUDE AVENUE LAND CORPORATION, a Delaware
                               corporation

                               By: /s/ Steven K. Shevick
                                  -----------------------------------
                               Print Name: STEVEN K. SHEVICK
                                          ---------------------------
                               Print Title: PRESIDENT
                                           --------------------------

                               TENANT:

                               LOUDCLOUD, INC.,
                               a Delaware corporation


                               By: /s/ Roderick Sherwood III
                                  -----------------------------------
                               Print Name: RODERICK SHERWOOD
                                          ---------------------------
                               Print Title: CFO
                                           --------------------------

                               By:___________________________________
                               Print Name: __________________________
                               Print Title: _________________________

                                    Page 30
<PAGE>

                                   EXHIBIT A

                                 LANDLORD WORK

Work described in the following plans, which Landlord hand delivered to Melinda
Carlisle on October 5, 2000:

Title/Description and Plan Date
-------------------------------

Plans and Specifications for 1030 Maud Avenue:

Furniture Installation plans 9/19/00 1st floor

Furniture Installation plans 9/20/00 2nd floor

Site plan set 3/13/00

Cafeteria 7/19/00

Interior Improvements 8/20/00

T.I. Electrical Specs 6/12/00

T.I. Mechanical Specs 6/12/00

Interior Improvement Specs 5/3l/00

                                    Page 31
<PAGE>

                                   EXHIBIT B
                     FURNITURE, FURNISHINGS AND EQUIPMENT
                                [See Attached]
<PAGE>

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

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

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

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

--------------------------------------------------------
1030 MAUDE AVENUE
--------------------------------------------------------
EQUIPMENT INVENTORY
--------------------------------------------------------
NOVEMBER 2000
--------------------------------------------------------

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

--------------------------------------------------------
ITEM                                        QUANTITY
--------------------------------------------------------

--------------------------------------------------------
3 X 4 WHITEBOARD                                 115
--------------------------------------------------------

--------------------------------------------------------
8 X 4 WHITEBOARD                                  19
--------------------------------------------------------

--------------------------------------------------------
PROJECTION SCREEN                                 12
--------------------------------------------------------

--------------------------------------------------------
CHAIRMATS                                        425
--------------------------------------------------------

--------------------------------------------------------
UNDER COUNTER FRIDGE                               3
--------------------------------------------------------

--------------------------------------------------------
STAND UP FRIDGE                                    3
--------------------------------------------------------
<PAGE>

                     [LETTERHEAD OF CONTRACT OFFICE GROUP]

[LOGO]

                                     A c k n o w l e d g e m e n t      PAGE:1

                                                     SHIP TO:

REBECCA SCAVONE                                      REBECCA SCAVONE
SYNOPSYS                                             SYNOPSYS
700 EAST MIDDLEFIELD RD                              1030 MAUDE AVENUE
MOUNTAIN VIEW, CA 94043-4033                         BLDG. 4, RECEPTION STATION
650 584-1457                                         SUNNYVALE, CA 94086
                                                     650 584-1457
                                               Terms: NET 30 DAYS

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
ORDER NO.        DATE      CUSTOMER'S P.O. NO.  CUSTOMER NO.      SALESPERSON
--------------------------------------------------------------------------------

0000072235    l0/10/00       117318            0000282776         BRENDA ZIGENIS

---------------------------------------------------------------------------------------------------------------
???INE  QUANTITY   CATALOG NO./VENDOR        D E S C R I P T I O N                       UNIT SELL   EXTENSION
===============================================================================================================
<S>     <C>        <C>                       <C>                                         <C>         <C>
                            Special Instructions
                         RECEPTION STATION - 1ST FLOOR

001        2        *HFP-3637-B*         STRAIGHT FABRIC PANEL POWER
                    HAWORTH, INC.        36" X 37" , FP-OAF, FP- OAF, TR- OOJ, TR- OOJ


002        1        *HFP-4237-B*         STRAIGHT FABRIC PANEL POWER
                    WORTH, INC.          42" X 37" , FP- OAF, FP- OAF, TR- OOJ, TR- OOJ


003        3        *HFP-4837-B*         STRAIGHT FABRIC PANEL POWER
                    HAWORTH, INC.        48" X 37" , FP- OAF, FP- OAF, TR- OOJ, TR- OOJ


004        1        *BFM-1-B             BASE FEED MODULE,HARDWIRE
                    HAWORTH, INC.        (B)

005        1        PCC-90-B             90 DEG. POWER CONNECTOR COVER
                    HAWORTH, INC.        4" (BOX OF 6)
                                         (B) , TR- OOJ

006        1        PRD-3-B              DUPLEX RECEPTACLES (BOX OF 6)
                    HAWORTH, INC.        (B) , TR- OOJ

007        1        HWSP-3029-L          WORK SURFACE SUPPORT PANEL 30"
                    HAWORTH, INC.        (L) , HP- 035

008        1        HWSP-3029-R          WORK SURFACE SUPPORT PANEL 30"
                    HAWORTH, INC.        (R) , HP- 03J

009        1        PPD-18               PENCIL DRAWER
                    HAWORTH, INC.

010        1        *WRCS-430*           90 DEG. CORNER WORK SURFACE
                    HAWORTH, INC.        W/O KEYBOARD 48" X 30"
                                         OH- 03J, TR- OOJ, TR- OOJ
-------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                     [LETTERHEAD OF CONTRACT OFFICE GROUP]

[LOGO]

                                     A c k n o w l e d g e m e n t      PAGE:2

                                                     SHIP TO:

REBECCA SCAVONE                                      REBECCA SCAVONE
SYNOPSYS                                             SYNOPSYS
700 EAST MIDDLEFIELD RD                              1030 MAUDE AVENUE
MOUNTAIN VIEW, CA 94043-4033                         BLDG. 4, RECEPTION STATION
650 584-1457                                         SUNNYVALE, CA 94086
                                                     650 584-1457
                                               Terms: NET 30 DAYS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
    ORDER NO.          DATE                CUSTOMER'S P.O. NO.        CUSTOMER NO.                    SALESPERSON
---------------- ------------------ ----------------------------- ----------------------- ------------------------------------------
    0000072235         10/10/00       117318                      0000282776               BRENDA ZIGENIS
------ --------------- ----------------------------- -------------------------------------- ------------------ ---------------------
LINE       QUANTITY          CATALOG NO./VENDOR                 DESCRIPTION                      UNIT SELL        EXTENSION
------ --------------- ----------------------------- -------------------------------------- ------------------ ---------------------
<S>    <C>             <C>                           <C>                                     <C>               <C>
0011         1           *WS-4230*                    REGULAR WORK SURFACE 42" X 30"
                         HAWORTH, INC.                (_) ,OH- 03J ,TR- OOJ ,TR- OOJ

0012         1           *WS-430*                     REGULAR WORK SURFACE 48" X 30"
                         HAWORTH, INC.                (_) ,OH- 03J ,TR- OOJ, TR- 00J

0013         1           WS-630                       REGULAR WORK SURFACE  72" X 30"
                         HAWORTH, INC.                ( ) ,OH- 03J ,TR- OOJ ,TR- OOJ

0014         1           LFRS-242-LDCF                2-HI LATERAL FILE, RADIUS CASE
                         HAWORTH, INC.                42 INCHES
                                                      (LDCF) ,TR- OOJ ,TR- OOJ

1015         1           PDS-24-HLN                   SUSPENDED PEDESTAL DRAWER 24"
                         HAWORTH, INC.                (HLN) ,TR- OOJ




                                                               ***END OF ORDER***


------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                    [LETTERHEAD OF CONTRACT OFFICE GROUP]

[LOGO]

                                     A c k n o w l e d g e m e n t      PAGE: 1

                                                   SHIP TO:

REBECCA SCAVONE                                    REBECCA SCAVONE
SYNOPSYS                                           SYNOPSYS
700 EAST MIDDLEFIELD RD                            1030 MAUDE AVENUE
                                                   BLDG. 4, 1st Floor, Phase 1
MOUNTAIN VIEW, CA 94043-4033                       SUNNYVALE, CA 94086

650 548-1457                                           650 548-1457
                                                Terms: NET 30 DAYS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
    ORDER NO.          DATE                CUSTOMER'S P.O. NO.        CUSTOMER NO.                    SALESPERSON
---------------- ------------------ ----------------------------- ----------------------- ------------------------------------------
    0000072244         10/10/00       117318                      0000282776               BRENDA ZIGENIS
------ --------------- ----------------------------- -------------------------------------- ------------------ ---------------------
LINE       QUANTITY          CATALOG NO./VENDOR                 DESCRIPTION                      UNIT SELL        EXTENSION
------ --------------- ----------------------------- -------------------------------------- ------------------ ---------------------
<S>    <C>             <C>                           <C>                                     <C>               <C>
                                                      Special Instructions
                                            ----------                     ----------
                                            HAWORTH - SVA, 1ST FLOOR, PHASE 1

0001         3         *EFN-242-B* (B), FP-            STRAIGHT FABRIC PANEL NO-POWER
                       HAWORTH, INC.                    24" X 42"
                                                        (B), FP- AF, FP- AF, TR- J, TR- J,
                                          Tag For:     PHASE 1, BLDG. 4, FIRST FLOOR

            49         *EFN-266-B*                     STRAIGHT FABRIC PANEL NO-POWER
                       HAWORTH, INC.                    24" X 66"
                                                        (B) ,FP- OAF, FP- OAF, TR- J, TR- J,
                                          Tag For:     PHASE 1, BLDG. 4, FIRST FLOOR

0003         1         *EFN-3066-B*                    STRAIGHT FABRIC PANEL NO-POWER
                       HAWORTH, INC.                    30" X 66"
                                                       (B) , FP- OAF, FP- OAF, TR- J, TR- J,
                                          Tag For:     PHASE 1, BLDG. 4, FIRST FLOOR

0004        28         *EFN-366-B*                     STRAIGHT FABRIC PANEL NO-POWER
                       HAWORTH, INC.                    30" X 66"
                                                       (B) , FP- OAF ,FP- OAF , TR- 00J ,TR- 00J
                                          Tag For:     PHASE 1, BLDG. 4, FIRST FLOOR

0005        5          *EFN-442-B*                     STRAIGHT FABRIC PANEL NO-POWER
                       HAWORTH, INC.                    48" X 42"
                                                       (B) , FP- OAF ,FP- OAF , TR- 00J ,TR- 00J
                                          Tag For:     PHASE 1, BLDG. 4, FIRST FLOOR

0006       43          *EFN-466-B*                     STRAIGHT FABRIC PANEL NO-POWER
                       HAWORTH, INC.                    48" X 66"
                                                       (B) , FP- OAF ,FP- OAF , TR- 00J ,TR- 00J
                                          Tag For:     PHASE 1, BLDG. 4, FIRST FLOOR

            3          *EFP-266-B*                     STRAIGHT FABRIC PANEL POWER
                       HAWORTH, INC.                    24" X 66"
                                                       (B) , FP- OAF ,FP- OAF , TR- 00J ,TR- 00J
                                          Tag For:     PHASE 1, BLDG. 4, FIRST FLOOR

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                     [LETTERHEAD OF CONTRACT OFFICE GROUP]

[LOGO]

                                     A c k n o w l e d g e m e n t        PAGE:


                                                 SHIP TO:

REBECCA SCAVONE                                  REBECCA SCAVONE
SYNOPSYS                                         SYNOPSYS
700 EAST MIDDLEFIELD RD                          1030 MAUDE AVENUE
                                                 BLDG 4, 1ST FLOOR, PHASE 1
MOUNTAIN VIEW, CA 94043-4033                     SUNNYVALE, CA 94086

650 548-1457                                     650 548-1457
                                          Terms: NET 30 DAYS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
    ORDER NO.          DATE                CUSTOMER'S P.O. NO.        CUSTOMER NO.                    SALESPERSON
---------------- ------------------ ----------------------------- ----------------------- ------------------------------------------
    0000072244         10/10/00       117318                      0000282776               BRENDA ZIGENIS
------ --------------- ----------------------------- --------------------------------------------- ------------------ --------------
LINE       QUANTITY          CATALOG NO./VENDOR                 DESCRIPTION                           UNIT SELL         EXTENSION
------ --------------- ----------------------------- --------------------------------------------- ------------------ --------------
<S>    <C>             <C>                           <C>                                            <C>               <C>

0008        5          *EFP-442-B*                    STRAIGHT FABRIC PANEL POWER
                       HAWORTH, INC.                  48" X 42"
                                                      (B) ,FP- OAF ,FP- OAF ,TR- OOJ  ,TR- OOJ
                                          Tag For:    PHASE 1, BLDG. 4, FIRST FLOOR

0009       55          *EFP-466-B*                    STRAIGHT FABRIC PANEL POWER
                       HAWORTH, INC.                  48" X 66"
                                                      (B) ,FP- OAF ,FP- OAF ,TR- OOJ ,TR- OOJ
                                          Tag For:    PHASE 1, BLDG. 4, FIRST FLOOR

0010        5          *FPFC-42-B*                    90 DEG. FABRIC FINISH POST 42"
                       HAWORTH, INC.                  (B) ,FP- OAF ,TR- OOJ ,TR- OOJ
                                          Tag For:    PHASE 1, BLDG. 4, FIRST FLOOR

0011       12          *FPFC-66-B*                    90 DEG. FABRIC FINISH POST 66"
                       HAWORTH, INC.                  (B) ,FP- OAF ,TR- OOJ ,TR- OOJ
                                          Tag For:    PHASE 1, BLDG. 4, FIRST FLOOR

0012        2          *FPFS-42-B*                    180 DEG FABRIC FINISH POST 42"
                       HAWORTH, INC.                  (B) ,FP- OAF ,TR- OOJ ,TR- OOJ
                                          Tag For:    PHASE 1, BLDG. 4, FIRST FLOOR

0013       27          *FPFS-66-B*                    180 DEG FABRIC FINISH POST 66"
                       HAWORTH, INC.                  (B)      ______ POWER BASE
                                                      (B), FP- OAF, TR- J,
                                          Tag For:    PHASE 1, BLDG. 4, FIRST FLOOR

0014       15          PRD-3-B                        DUPLEX RECEPTACLES (BOX OF 6)
                       HAWORTH, INC.                  (B) ,TR- OOJ
                                          Tag For:    PHASE 1, BLDG. 4, FIRST FLOOR

0015        5          TFM-6-B                        TOP FEED MODULE 68" FOR PANEL
                       HAWORTH, INC.                  HEIGHT 64" & 68"
                                                      (B) ,TR- OOJ ,TR- OOJ
                                          Tag For:    PHASE 1, BLDG. 4, FIRST FLOOR

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                     [LETTERHEAD OF CONTRACT OFFICE GROUP]

[LOGO]

                                     A c k n o w l e d g e m e n t        PAGE:


                                                 SHIP TO: -

REBECCA SCAVONE                                  REBECCA SCAVONE
SYNOPSYS                                         SYNOPSYS
700 EAST MIDDLEFIELD RD                          1030 MAUDE AVENUE
                                                 BLDG. 4, 1st FLOOR, PHASE 1
MOUNTAIN VIEW, CA 94043-4033                     SUNNYVALE, CA 94086

650 548-1457                                     650 548-1457
                                          Terms: NET 30 DAYS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
    ORDER NO.          DATE                CUSTOMER'S P.O. NO.        CUSTOMER NO.                    SALESPERSON
---------------- ------------------ ----------------------------- ----------------------- ------------------------------------------
    0000072244         10/10/00       117318                      0000282776               BRENDA ZIGENIS
------ --------------- ----------------------------- --------------------------------------------- ------------------ --------------
LINE       QUANTITY          CATALOG NO./VENDOR                 DESCRIPTION                           UNIT SELL         EXTENSION
------ --------------- ----------------------------- --------------------------------------------- ------------------ --------------
<S>    <C>             <C>                           <C>                                            <C>               <C>

0016       58          *FDRF-4*                        REG. FLIPPER DOOR - FABRIC 48"
                       HAWORTH, INC.                   (_) ,HC- 03J ,R5-AP5 ,TR- OOJ ,TR- OOJ
                                          Tag For:     PHASE 1, BLDG. 4, FIRST FLOOR

0017        6          HTB-4811                        TACKBOARD 48" X 11"
                       HAWORTH, INC.                   ,3A- 022.
                                          Tag For:     PHASE 1, BLDG. 4, FIRST FLOOR

0018       50          HTB-4816                        TACKBOARD 48" X 16"
                       HAWORTH, INC.                   ,3A- 022
                                          Tag For:     PHASE 1, BLDG. 4, FIRST FLOOR

0019        2          HTB-4833                        TACKBOARD 48" X 33"
                       HAWORTH, INC.                   ,3A- 022
                                          Tag For:     PHASE 1, BLDG. 4, FIRST FLOOR

0020       48          HTL-0048-T                      TASK LIGHT 48"
                       HAWORTH, INC.                   (T) ,TR- OOJ
                                          Tag For:     PHASE l, BLDG. 4, FIRST FLOOR

0021       16          HTL-0054-T                      TASK LIGHT 54"
                       HAWORTH, INC.                   (T) ,TR- OOJ
                                          Tag For:     PHASE 1, BLDG. 4, FIRST FLOOR

0022       58          SR-4                            REGULAR SHELF 48"
                       HAWORTH, INC.                   ,OV- 03J ,TR- OOJ ,TR- OOJ
                                          Tag For:     PHASE 1, BLDG. 4, FIRST FLOOR

0023       12          HWSP-3029-L                     WORK SURFACE SUPPORT PANEL 30"
                       HAWORTH, INC.                   (L) ,HP- 03J
                                          Tag For:     PHASE 1, BLDG. 4, FIRST FLOOR

0024       17          HWSP-3029-R                     WORK SURFACE SUPPORT PANEL 30"
                       HAWORTH, INC.                   (R) ,HP- 03J
                                          Tag For:     PHASE 1, BLDG. 4, FIRST FLOOR

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

[LOGO]
[LETTERHEAD OF CONTRACT OFFICE GROUP]
                                    A c k n o w l e d g e m e nt           PAGE:


                                                     SHIP TO:

REBECCA SCAVONE                                      REBECCA SCAVONE
SYNOPSYS                                             SYNOPSYS
700 EAST MIDDLEFIELD RD                              1030 MAUDE AVENUE
                                                     BLDG 4, 1ST FlOOR, PHASE 1
MOUNTAIN VIEW, CA 94043-4033                         SUNNYVALE, CA 94086

650 548-1457                                                      650 548-1457
                                                          Terms: NET 30 DAYS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
   ORDER NO.             DATE           CUSTOMER'S P.O. NO.          CUSTOMER NO.                      SALESPERSON
------------------------------------------------------------------------------------------------------------------------------------
     0000072244         l0/l0/00      117318                         0000282776              BRENDA ZIGENIS
====================================================================================================================================
LINE       QUANTITY          CATALOG NO./VENDOR                   D E S C R I P T I O N                       UNIT SELL    EXTENSION
====================================================================================================================================
<S>        <C>               <C>                       <C>
 0025            27             *WRCS-430*             90 DEG. CORNER WORK SURFACE
                                HAWORTH, INC.          W/O KEYBOARD 48" X 30",
                                                       H-3J,  TR-J, TR-J,
                                           Tag For:     PHASE 1, BLDG. 4, FIRST FLOOR

 0026             4             *WS-424*               REGULAR WORK SURFACE 48" X 24"
                                HAWORTH, INC.          (_)       W/O GROMMET,
                                                       H-3J,  TR-J,
                                           Tag For:    PHASE 1, BLDG. 4, FIRST FLOOR

 0027            31             WS-430                REGULAR WORK SURFACE 48" X 30"
                                HAWORTH, INC.          (_)       W/O GROMMET,
                                                       H-03J,  TR-J,
                                           Tag For:    PHASE 1, BLDG. 4, FIRST FLOOR

 0028            27              WS-430-R2             REGULAR WORK SURFACE 48" X 30"
                                 HAWORTH, INC.         (R2), OH- 03J,  TR- OOJ, TR- OOJ
                                           Tag For:    PHASE 1, BLDG. 4, FIRST FLOOR

 0029            11              PDM-24-JLN            MOBILE PEDESTAL DRAWER 24"
                                 HAWORTH, INC.         (JLN) , TR- OOJ
                                           Tag For:    PHASE 1, BLDG. 4, FIRST FLOOR

 0030            38              PDS-24-HLN            SUSPENDED PEDESTAL DRAWER 24"
                                 HAWORTH, INC.         (HLN), TR- OOJ
                                           Tag For:    PHASE 1, BLDG. 4, FIRST FLOOR


 0031            27              PDS-24-JLN            SUSPENDED PEDESTAL DRAWER 24"
                                 HAWORTH, INC.         (JLN) , TR- OOJ
                                          Tag For:     PHASE 1, BLDG. 4, FIRST FLOOR

 0032            16              *SSDT-3360-F*         VERT. STOR. UNIT, CLOSED BACK,
                                 HAWORTH, INC.         FLIPPER DOOR, 33" X 60"
                                                       (F) ,3A- 022 , R5- AP5, HP- 035, TR- OOJ
                                          Tag For:     PHASE 1, BLDG. 4, FIRST FLOOR


------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

[LOGO]
Contract Office Group
931 Cadillac Court           A c k n o w l e d g e m e n t                 PAGE:
Milpitas, CA 95035
Tel 408-262-6400
Fax 408-262-1193

                                                  SHIP TO:

REBECCA SCAVONE                                   REBECCA SCAVONE
SYNOPSYS                                          SYNOPSYS
700 EAST MIDDLEFIELD RD                           1030 MAUDE AVENUE
                                                  BLDG 4, 1ST FlOOR, PHASE 1
MOUNTAIN VIEW, CA 94043-4033                      SUNNYVALE, CA 94086

650 548-1457                                                      650 548-1457
                                                          Terms: NET 30 DAYS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
   ORDER NO.             DATE           CUSTOMER'S P.O. NO.          CUSTOMER NO.                      SALESPERSON
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>           <C>                                <C>
     0000072244         l0/l0/00      117318                         0000282776              BRENDA ZIGENIS
====================================================================================================================================
LINE       QUANTITY       CATALOG NO./VENDOR                       D E S C R I P T I O N                        UNIT SELL  EXTENSION
====================================================================================================================================

 0033           11       *INQ53043LINE1*                    TRANSITIONAL DESK - 30" x 60"
                         HAWORTH, INC.
                                                            ,(OR), (2), OH- 03J, (1), TR- J, TR- J
                                            Tag For:        PHASE 1, BLDG. 4, FIRST FLOOR

 0034           11       *INQ53043LINE6*                    TRANSITIONAL DESK - 30" X 60"
                         HAWORTH, INC.                      W/ DMS-1 HOLE IN UPPER RIGHT HAND CORNER,
                                                            (OL), (2), OH- 03J, (l), TR- J, TR- J
                                            Tag For:        PHASE 1, BLDG. 4, FIRST FLOOR

 0035           27       *6650-2104*,                       5 x 12 SHEET OF LAMINATE
                         HAWORTH, INC.                      LAM; H-3J
                                                            H-3J
                                            Tag For:        PHASE 1 & 3, BLDG. 4, FIRST FLOOR

 0036          207       *4320-6101*,                       207 YARDS, NICKEL FABRIC
                         HAWORTH, INC.
                                                            3A-06
                                            Tag For:        PHASE 3,  BLDG. 4, FIRST FLOOR

 0037         1400       *7080-1301*                        1,400  FEET OF T-MOLDING, GRAPHITE, TR-J
                         HAWORTH, INC.                      SHIPPING TO J.B. ENGINEERING,
                                                            TR-J,
                                            Tag For:        PHASE 1 & 3, BLDG. 4, FIRST FLOOR
                                                            FOR CORNER CRANKS IN OFFICES AND KIDNEY
                                                            TABLES




                                                                           ***END OF ORDER***


------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

<TABLE>
          <S>                                          <C>                                  <C>
          [LOGO]
          [LETTERHEAD OF CONTRACT OFFICE GROUP]        A c k n o w l e d g e m e n t        PAGE: 3




                                                            SHIP TO:

     REBECCA SCAVONE                                        REBECCA SCAVONE
     SYNOPSYS                                               SYNOPSYS
     700 EAST MIDDLEFIELD RD                                1030 MAUDE AVENUE
                                                            BLDG.4, 1ST FLOOR, PHASE 3
     MOUNTAIN VIEW, CA 94043-4033                           SUNNYVALE, CA 94086

     650 548-1457                                           650 584-1457
                                                    Terms: NET 30 DAYS
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
  ORDER NO.         DATE           CUSTOMER'S P.O. NO.        CUSTOMER NO.                  SALESPERSON
------------------------------------------------------------------------------------------------------------------------------------

    0000072246    10/10/00      117318                        0000282776       BRENDA ZIGENIS
====================================================================================================================================
LINE    QUANTITY    CATALOG NO./VENDOR                      DESCRIPTION                              UNIT SELL             EXTENSION
====================================================================================================================================
<S>     <C>         <C>                               <C>
                                 _______              Special Instructions________________
                                 HAWORTH              -SV4 1ST FLOOR, PHASE 3
                                                      1ST HALF OF ORDER

 0001        22     *EFN-242-B*                       STRAIGHT FABRIC PANEL NO-POWER
                    HAWORTH, INC.                      24" X 42"
                                                      (B) ,FP- OAF ,FP- OAF, TR- OOJ, TR- OOJ
                                 Tag For:             PHASE 3, BLDG. 4, FIRST FLOOR

 0002       177     *EFN-266-B*                       (B) ,FP- STRAIGHT FABRIC PANEL NO-POWER
                    HAWORTH, INC.                      24" X 66"
                                                      (B) $,FP- OAF ,FP- OAF, TR- OOJ, TR- OOJ
                                 Tag For:             PHASE 3, BLDG. 4, FIRST FLOOR

 0004        89     *EFN-366-B*                       (B) ,FP- STRAIGHT FABRIC PANEL NO-POWER
                    HAWORTH, INC.                      36" X 66"
                                                      (B) ,FP- OAF ,FP- OAF, TR- OOJ, TR- OOJ
                                 Tag For:             PHASE 3, BLDG. 4, FIRST FLOOR

 0005        24      *EFN-442-B*                      STRAIGHT FABRIC PANEL NO-POWER
                     HAWORTH, INC.                     48" X 42"
                                                      (B) ,FP- OAF ,FP- OAF, TR- OOJ, TR- OOJ
                                 Tag For:             PHASE 3, BLDG. 4, FIRST FLOOR

 0006       117      *EFN-466-B*                      STRAIGHT FABRIC PANEL NO-POWER
                     HAWORTH, INC.                     48" X 66"
                                                      (B) ,FP- OAF ,FP- OAF, TR- OOJ, TR- OOJ
                                 Tag For:             PHASE 3, BLDG. 4, FIRST FLOOR

 0007                *EFP-266-B*                      STRAIGHT FABRIC PANEL POWER
                     HAWORTH, INC.                     24" X 66"
                                                      (B) ,FP- OAF, FP- OAF,TR- OOJ, TR- OOJ
                                 Tag For:             PHASE 3, BLDG. 4, FIRST FLOOR

 0008        25      *EFP-442-B*                      (B) ,FP-  STRAIGHT FABRIC PANEL POWER
                     HAWORTH, INC.                     48" X 42"
                                                      (B) ,FP- OAF, FP- OAF, TR- OOJ, TR- OOJ

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

<TABLE>
          <S>                                     <C>                               <C>
          [LOGO]
          931 Cadillac Court                      Acknowledgement                   PAGE: 3
          Milipitas, CA 95035
          Tel 408-262-6400
          Fax 408-262-1193

                                                            SHIP TO:

     REBECCA SCAVONE                                        REBECCA SCAVONE
     SYNOPSYS                                               SYNOPSYS
     700 EAST MIDDLEFIELD RD                                1030 MAUDE AVENUE
                                                            BLDG.4, 1ST FLOOR, PHASE 3
     MOUNTAIN VIEW, CA 94043-4033                           SUNNYVALE, CA 94086
     650 548-1457                                           650 584-1457
                                                    Terms: NET 30 DAYS
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
  ORDER NO.         DATE           CUSTOMER'S P.O. NO.        CUSTOMER NO.                  SALESPERSON
------------------------------------------------------------------------------------------------------------------------------------

    0000072246    10/10/00      117318                        0000282776       BRENDA ZIGENIS
====================================================================================================================================
LINE    QUANTITY    CATALOG NO./VENDOR                      DESCRIPTION                              UNIT SELL             EXTENSION
====================================================================================================================================
<S>     <C>         <C>                                 <C>
Line:     0008 (continued)
                                  Tag For               PHASE 3, BLDG. 4, FIRST FLOOR

 0009      162     *EFP-466-B*,                         STRAIGHT FABRIC PANEL POWER
                   HAWORTH, IN C.                        48" X 66"
                                                        (B), FP-'OAF ,FP- OAF, TR- OOJ, TR- OOJ
                                  Tag For               PHASE 3, BLDG. 4, FIRST FLOOR

            25     *FPFC-42-B*                          90 DEG. FABRIC FINISH POST 42"
                   HAWORTH, INC.                        (B) ,FP -AF, TR- OOJ, TR- OOJ
                                  Tag For               PHASE 3, BLDG. 4, FIRST FLOOR

 0011       31     *FPFC-66-B*                          90 DEG. FABRIC FINISH POST 66"
                   HAWORTH, INC.                        (B) ,FP- OAF, TR- OOJ, TR- OOJ
                                  Tag For               PHASE 3, BLDG. 4, FIRST FLOOR

 0012       14     *FPFS-42-B*                          (B), FP-  180 DEG FABRIC FINISH POST 42"
                   HAWORTH, INC.                        (B), FP- OAF, TR- OOJ ,TR- OOJ
                                  Tag For               PHASE 3, BLDG. 4, FIRST FLOOR

 0013       84     *FPFS-66-B*                          180 DEG FABRIC FINISH POST 66"
                   HAWORTH, INC.                        (B) ,FP -OAF, TR- OOJ, TR- OOJ
                                  Tag For               PHASE 3, BLDG. 4, FIRST FLOOR

 0014        1     PCC-180-B                            180 DEG POWER CONNECTOR COVER
                   HAWORTH, INC.                        4" (BOX OF 6)
                                                        (B) ,TR- OOJ
                                  Tag For               PHASE 3, BLDG. 4, FIRST FLOOR

 0015       48     PRD-3-B                              (B), TR- 00J DUPLEX RECEPTACLES (BOX OF 6)
                   HAWORTH, INC.                        (B) ,TR- OOJ
                                  Tag For               PHASE 3, BLDG. 4, FIRST FLOOR

            28     TFM-6-B                              TOP FEED MODULE 68" FOR PANEL
                   HAWORTH, INC.                        HEIGHT 64" & 68"
                                                        (B), TR- OOJ ,TR- OOJ
                                  Tag For               PHASE 3, BLDG. 4, FIRST FLOOR

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                   [LETTERHEAD OF CONTRACT OFFICE GROUP]
[LOGO]                                   A c k n o w l e d g e m e n t   PAGE: 3

                                                  SHIP TO:

   REBECCA SCAVONE                                REBECCA SCAVONE
   SYNOPSYS                                       SYNOPSYS
   700 EAST MIDDLEFIELD RD                        1030 MAUDE AVENUE
                                                  BLDG. 4, 1ST FLOOR, PHASE 3
   MOUNTAIN VIEW, CA 94043-4033                   SUNNYVALE, CA 94086

   650 548-1457                                   650 584-1457
                                        Terms: NET 30 DAYS

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
   ORDER NO.          DATE         CUSTOMER'S P.O. NO.      CUSTOMER NO.                       SALESPERSON
---------------------------------------------------------------------------------------------------------------------------------

   0000072246       10/10/00       117318                   0000282776          BRENDA ZIGENIS
---------------------------------------------------------------------------------------------------------------------------------
LINE   QUANTITY    CATALOG NO./ VENDOR                 D E S C R I P T I O N                         UNIT SELL      EXTENSION
---------------------------------------------------------------------------------------------------------------------------------
<S>     <C>         <C>                              <C>                                              <C>            <C>
 0017     178         *FDRF-4*                       REG. FLIPPER DOOR - FABRIC 48"
                      HAWORTH, INC.                  ( ), R5- AP5, TR-J,
                              Tag For:               PHASE 3, BLDG. 4, FIRST FLOOR

 0018     146         HTL-0048-T (T), TR-            TASK LIGHT 48"
                      HAWORTH, INC.                  (T), TR- OOJ
                              Tag For:               PHASE 3, BLDG. 4, FIRST FLOOR

 0019      57        HTL-0054-T (T), TR-             TASK LIGHT 54"
                     HAWORTH, INC.                   (T), TR- OOJ
                              Tag For:               PHASE 3, BLDG. 4, FIRST FLOOR

 0020     178        SR-4, OV- 03J, TR- 0            REGULAR SHELF 48"
                     HAWORTH, INC.                   , OV- 03J, TR- OOJ, TR- OOJ
                              Tag For:               PHASE 3, BLDG. 4, FIRST FLOOR

 0028       1        *EFN-3066-B*                    STRAIGHT FABRIC PANEL  NO-POWER
                     HAWORTH, INC.                   30" X 66"
                                                     (B), FP- OAF, FP- OAF, TR- OOJ, TR- OOJ
                              Tag For:               PHASE 3, BLDG. 4, FIRST FLOOR

                                                          ***END OF ORDER***
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                    [LETTERHEAD OF CONTRACT OFFICE GROUP]
[LOGO]                                   A c k n o w l e d g e m e n t   PAGE: 3




                                                  SHIP TO:

   REBECCA SCAVONE                                REBECCA SCAVONE
   SYNOPSYS                                       SYNOPSYS
   700 EAST MIDDLEFIELD RD                        1030 MAUDE AVENUE
                                                  BLDG. 4, 1ST FLOOR, PHASE 3
   MOUNTAIN VIEW, CA 94043-4033                   SUNNYVALE, CA 94086

   650 548-1457                                   650 584-1457
                                        Terms: NET 30 DAYS

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
   ORDER NO.          DATE         CUSTOMER'S P.O. NO.      CUSTOMER NO.                       SALESPERSON
---------------------------------------------------------------------------------------------------------------------------------

   0000072247       10/10/00       117318                   0000282776          BRENDA ZIGENIS
---------------------------------------------------------------------------------------------------------------------------------
LINE   QUANTITY    CATALOG NO./ VENDOR                  D E S C R I P T I O N                         UNIT SELL      EXTENSION
---------------------------------------------------------------------------------------------------------------------------------
<S>    <C>         <C>                               <C>                                             <C>            <C>
                                                     ------Special Instructions------
                                                     HAWORTH  - SV4 1ST FLOOR, PHASE 3
                                                     2ND HALF OF ORDER

 0001       24       HTB-4811, 3A- 022               TACKBOARD 48" X 11"
                     HAWORTH, INC.                   ,3A- 022
                              Tag For:               PHASE 3, BLDG. 4, FIRST FLOOR

 0002      152       HTB-4816                        TACKBOARD 48" X 16"
                     HAWORTH, INC.                   ,3A- 022
                              Tag For:               PHASE 3, BLDG. 4, FIRST FLOOR

 0003       43       HWSP-3029-L (L), HP-            WORK SURFACE SUPPORT PANEL 30"
                     HAWORTH, INC.                   (L), HP- 03J
                              Tag For:               PHASE 3, BLDG 4, FIRST FLOOR

 0004       46       HWSP-3029-R (R), HP             WORK SURFACE SUPPORT PANEL 30"
                     HAWORTH, INC.                   (R), HP- 03J
                              Tag For:               PHASE 3, BLDG 4, FIRST FLOOR

 0005       85       WRCS-430 ( ), OH- 03            90 DEG. CORNER WORK SURFACE
                     HAWORTH, INC.                   W/O KEYBOARD 48" X 30"
                                                     ( ), OH- 03J, TR- 00J, TR- 00J
                              Tag For:               PHASE 3, BLDG. 4, FIRST FLOOR

 0006       15       WS-424 ( ), OH- 03J             REGULAR WORK SURFACE 48" X 24"
                     HAWORTH, INC.                   ( ), OH- 03J, TR- 00J ,TR- 00J
                              Tag For:               PHASE 3, BLDG. 4, FIRST FLOOR

 0007       93       WS-430 ( ), OH- 03J             REGULAR WORK SURFACE 48" X 30"
                     HAWORTH, INC.                   ( ), OH- 03J, TR- 00J, TR- 00J
                              Tag For:               PHASE 3, BLDG. 4, FIRST FLOOR

 0007       85       WS-430-R2                       REGULAR WORK SURFACE 48" X 30"
                     HAWORTH, INC.                   (R2), OH- 03J, TR- OOJ, TR- OOJ
                              Tag For:               PHASE 3, BLDG. 4, FIRST FLOOR

---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>



                     [LETTERHEAD OF CONTRACT OFFICE GROUP]

[LOGO]

                                  A c k n o w l e d g e m e n t          PAGE: 3



                                             SHIP TO:

REBECCA SCAVONE                              REBECCA SCAVONE
SYNOPSYS                                     SYNOPSYS
700 EAST MIDDLEFIELD RD                      1030 MAUDE AVENUE
                                             BLDG. 4, 1ST FLOOR, PHASE 3
MOUNTAIN VIEW, CA 94043-4033                 SUNNYVALE, CA 94086

650 584-1457                                 650 584-1457
                                   Terms: NET 30 DAYS

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
  ORDER NO.     DATE        CUSTOMER'S P.O. NO.       CUSTOMER NO.           SALESPERSON
--------------------------------------------------------------------------------------------------------------
 0000072247   10/10/00   117318                      0000282776              BRENDA ZIGENIS
--------------------------------------------------------------------------------------------------------------
LINE    QUANTITY     CATALOG NO./ VENDOR      D E S C R I P T I O N                     UNIT SELL   EXTENSION
--------------------------------------------------------------------------------------------------------------
<S>     <C>          <C>                      <C>                                       <C>         <C>
0009       34         PDM-24-JLN              MOBILE PEDESTAL DRAWER 24"
                      HAWORTH, INC.            (JLN) ,TR- OOJ
                                 Tag For:     PHASE 3, BLDG. 4, FIRST FLOOR

0010      119         PDS-24-HLN (HLN) ,TR    SUSPENDED PEDESTAL DRAWER 24"
                      HAWORTH, INC.            (HLN) ,TR- OOJ
                                 Tag For:     PHASE 3, BLDG. 4, FIRST FLOOR

           85         PDS-24-JLN (JLN)  ,TR   SUSPENDED PEDESTAL DRAWER 24"
                      HAWORTH, INC.            (JLN) ,TR- OOJ
                                 Tag For:     PHASE 3, BLDG. 4, FIRST FLOOR

0012       55         *SSDT-3360-F*           VERT. STOR. UNIT, CLOSED BACK,
                      HAWORTH, INC.           FLIPPER DOOR, 33" X 60"
                                              , (F) ,3A-022, R5-AP5, TR-J, TR-J,
                                 Tag For:     PHASE 3, BLDG. 4, FIRST FLOOR

0013       34         *INQ53043LINE1*         TRANSITIONAL DESK - 30" X 60"
                      HAWORTH, INC.           NO GROMMETS - NO VSU-FULL MOD
                                              , (OR) ,(2) ,OH- 0J3 ,(l) ,TR- OOJ ,TR- O
                                              OJ
                                 Tag For:     PHASE 3, BLDG. 4, FIRST FLOOR

0014       34         *INQ53043LINE6*         TRANSITIONAL DESK - 30" X 60"
                      HAWORTH, INC.           W/ DMS-1 HOLE IN UPPER RIGHT HAND CORNER
                                              , (OL) ,(2) ,OH- 03J ,(l) ,TR- OOJ,TR- C
                                              OJ
                                 Tag For:     PHASE 3, BLDG. 4, FIRST FLOOR

0015       12         HTB-4833 ,3A- 022       TACKBOARD 48" X 33"
                      HAWORTH, INC.           ,3A- 022
                               Tag For:       PHASE 3, BLDG. 4, FIRST FLOOR
                                              OUTER SIDE OF PANELS IN WALK WAYS

0016        2         WS-424                  REGULAR WORK SURFACE 48" X 24"
                      HAWORTH, INC.           ( ) ,OH- 03J ,TR- OOJ ,TR- OOJ
                               Tag For:       PHASE 3 ' BLDG. 4, FIRST FLOOR
--------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>



                     [LETTERHEAD OF CONTRACT OFFICE GROUP]

[LOGO]

                                  A c k n o w l e d g e m e n t          PAGE: 3



                                             SHIP TO:

REBECCA SCAVONE                              REBECCA SCAVONE
SYNOPSYS                                     SYNOPSYS
700 EAST MIDDLEFIELD RD                      1030 MAUDE AVENUE
                                             BLDG. 4, 1ST FLOOR, PHASE 3
MOUNTAIN VIEW, CA 94043-4033                 SUNNYVALE, CA 94086

650 584-1457                                 650 584-1457
                                   Terms: NET 30 DAYS

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
  ORDER NO.     DATE        CUSTOMER'S P.O. NO.       CUSTOMER NO.           SALESPERSON
--------------------------------------------------------------------------------------------------------------
 0000072247   10/10/00   117318                      0000282776              BRENDA ZIGENIS
--------------------------------------------------------------------------------------------------------------
LINE    QUANTITY     CATALOG NO./ VENDOR      D E S C R I P T I O N                     UNIT SELL   EXTENSION
--------------------------------------------------------------------------------------------------------------
<S>     <C>          <C>                      <C>                                       <C>         <C>
0017         1       HWSP-2429-L              WORK SURFACE SUPPORT PANEL 24"
                     HAWORTH, INC.            (L) ,HP- 03J
                                Tag For:      PHASE 3, BLDG. 4, FIRST FLOOR

0018         1       HWSP-2429-R              WORK SURFACE SUPPORT PANEL 24"
                     HAWORTH, INC.            (R) ,HP- 03J
                                Tag For:      PHASE 3, BLDG. 4, FIRST FLOOR




                                                             ***END OF ORDER***

--------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>


[LOGO]
[LETTERHEAD OF CONTRACT OFFICE GROUP]

                              A c k n o w l e d g e m e n t           PAGE:


                                                 SHIP TO:

REBECCA SCAVONE                                  REBECCA SCAVONE
SYNOPSYS                                         SYNOPSYS
700 EAST MIDDLEFIELD RD                          1030 MAUDE AVENUE
                                                 BLDG. 4 2ND FLOOR, PHASE 2
MOUNTAIN VIEW, CA 94043-4033                     SUNNYVALE, CA 94086

650 584-1457                                     650 584-1457
                                         Terms : NET 30 DAYS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
   ORDER NO.           DATE                CUSTOMER'S P.O. NO.       CUSTOMER NO.                  SALESPERSON
------------------------------------------------------------------------------------------------------------------------------------

    0000072241       10/10/00         117318                          0000282776        BRENDA ZIGENIS
====================================================================================================================================
LINE      QUANTITY    CATALOG NO./ VENDOR                D E S C R I P T I O N                            UNIT SELL       EXTENSION
====================================================================================================================================
<S>       <C>         <C>                               <C>                                              <C>              <C>
                                               ___________ Special Instructions ______________
                                               HAWORTH - SV4, 2ND FLOOR, PHASE 2
                                               FIRST HALF OF ORDER

 0001          95    *EFN-366-B*                        STRAIGHT FABRIC PANEL NO-POWER
                     HAWORTH, INC.                       36" X 66",
                                                        (B), FP-AF, FP-AF, TR-J, TR-J
                                   Tag For:             PHASE 2, BLDG 4, 2ND FLOOR

 0002          27    *EFN-442-B*                        STRAIGHT FABRIC PANEL NO-POWER
                     HAWORTH, INC.                       48" X 42",
                                                        (B), FP-AF, FP-AF, TR-J, TR-J,
                                   Tag For:             PHASE 2, BLDG 4, 2ND FLOOR

 0003         177    *EFN-466-B*,                 (B), F STRAIGHT FABRIC PANEL NO-POWER
                     HAWORTH, INC.                      48" X 66",
                                                        (B), FP-AF, FP-AF, TR-J, TR-J,
                                   Tag For:             PHASE 2, BLDG 4, 2ND FLOOR

 0004          27    *EFP-266-B*                        STRAIGHT FABRIC PANEL POWER
                     HAWORTH, INC.                       24" X 66",
                                                        (B), FP-AF, FP-AF, TR-J, TR-J,
                                   Tag For:             PHASE 2, BLDG 4, 2ND FLOOR

 0005          35    *EFP-442-B*                        STRAIGHT FABRIC PANEL POWER
                     HAWORTH, INC.                       48" X 42",
                                                        (B), FP-AF, FP-AF, TR-J, TR-J,
                                   Tag For:             PHASE 2, BLDG 4, 2ND FLOOR

 0006         174    *EFP-466-B*                        STRAIGHT FABRIC PANEL POWER
                     HAWORTH, INC.                       48" X 66",
                                                        (B), FP-AF, FP-AF, TR-J, TR-J,
                                   Tag For:             PHASE 2, BLDG 4, 2ND FLOOR

 0007           9    *EFN-242-B*,                       STRAIGHT FABRIC PANEL NO-POWER
                     HAWORTH, INC.                       24" X 42"
                                                        (B), FP-AF, FP- OAF, TR- OOJ, TR- OOJ


------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

[LOGO]
[LETTERHEAD OF CONTRACT OFFICE GROUP]

                         A c k n o w l e d g e m e n t                PAGE:


                                                 SHIP TO:

REBECCA SCAVONE                                  REBECCA SCAVONE
SYNOPSYS                                         SYNOPSYS
700 EAST MIDDLEFIELD RD                          1030 MAUDE AVENUE
                                                 BLDG. 4 2ND FLOOR, PHASE 2
MOUNTAIN VIEW, CA 94043-4033                     SUNNYVALE, CA 94086

650 584-1457                                     650 584-1457
                                         Terms : NET 30 DAYS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
   ORDER NO.           DATE                CUSTOMER'S P.O. NO.       CUSTOMER NO.                  SALESPERSON
------------------------------------------------------------------------------------------------------------------------------------

    0000072241       10/10/00         117318                          0000282776        BRENDA ZIGENIS
====================================================================================================================================
LINE      QUANTITY    CATALOG NO./ VENDOR               D E S C R I P T I O N                            UNIT SELL        EXTENSION
====================================================================================================================================
<S>       <C>         <C>                               <C>                                              <C>              <C>
 Line:       0007 (continued)
                                   Tag For:             PHASE 2, BLDG 4, 2ND FLOOR

 0008          91    *EFN-266-B*                        STRAIGHT FABRIC PANEL NO-POWER
                     HAWORTH, INC.                       24" X 66"
                                                        (B), FP- OAF, FP- OAF, TR- 00J, TR- 00J
                                   Tag For:             PHASE 2, BLDG 4, 2ND FLOOR

 0009          28    *FPFC-42-B*                        90 DEG. FABRIC FINISH POST 42"
                     HAWORTH, INC.                      (B)   ______POWER BASE,
                                                        (B), FP- OAF, TR-00J, TR- 00J
                                   Tag For:             PHASE 2, BLDG 4, 2ND FLOOR

 0010          32    *FPFC-66-B*                        90 DEG. FABRIC FINISH POST 66"
                     HAWORTH, INC.                      (B)   ______POWER BASE,
                                                        (B) ,FP- OAF, TR-J,
                                   Tag For:             PHASE 2, BLDG 4, 2ND FLOOR

 0011          17    *FPFS-42-B*                        180 DEG FABRIC FINISH POST 42"
                     HAWORTH, INC.                      (B)   ______POWER BASE,
                                                        (B), FP-AF, TR-J,
                                   Tag For:             PHASE 2, BLDG 4, 2ND FLOOR

 0012          88    *FPFS-66-B*                        180 DEG FABRIC FINISH POST 66"
                     HAWORTH, INC.                      (B)   ______POWER BASE,
                                                        (B),  FP-AF, - TR-J,
                                   Tag For:             PHASE 2, BLDG 4, 2ND FLOOR

 0013           1    PCC-180-B                          180 DEG POWER CONNECTOR COVER
                     HAWORTH, INC.                      4" (BOX OF 6)
                                                        (B), TR- 00J
                                   Tag For:             PHASE 2, BLDG 4, 2ND FLOOR

 0014          52    PRD-3-B                            DUPLEX RECEPTACLES (BOX OF 6)
                     HAWORTH, INC.                      (B) ,TR- OOJ
                                   Tag For:             PHASE 2, BLDG 4, 2ND FLOOR


------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

[LOGO]

Contract Office Group               A c k n o w l e d g e m e n t      PAGE: 3
931 Cadillac Court
Milpitas, CA 95035
Tel 408-262-6400
Fax 408-262-1193

                                             SHIP TO:

REBECCA SCAVONE                              REBECCA SCAVONE
SYNOPSYS                                     SYNOPSYS
700 EAST MIDDLEFIELD RD                      1030 MAUDE AVENUE
                                             BLDG. 4 2ND FLOOR, PHASE 2
MOUNTAIN VIEW, CA 94043-4033                 SUNNYVALE, CA 94086

650 584-1457                                 650 584-1457
                                   Terms: NET 30 DAYS

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
  ORDER NO.     DATE        CUSTOMER'S P.O. NO.       CUSTOMER NO.           SALESPERSON
--------------------------------------------------------------------------------------------------------------
 0000072241   10/10/00   117318                      0000282776   BRENDA ZIGENIS
--------------------------------------------------------------------------------------------------------------
LINE    QUANTITY     CATALOG NO./VENDOR              DESCRIPTION                     UNIT SELL   EXTENSION
--------------------------------------------------------------------------------------------------------------
<S>     <C>          <C>                      <C>                                    <C>         <C>
0015        31        TFM-6-B                 TOP FEED MODULE 68" FOR PANEL
                      HAWORTH, INC.           HEIGHT 64" & 68"
                                              (B) , TR- 00J ,TR- 00J
                                 Tag For:     PHASE 2, BLDG 4, 2ND FLOOR

0016       194        *FDRF-4*                REG. FLIPPER DOOR - FABRIC 48"
                      HAWORTH, INC.           ( )     WITH LOCK
                                              ,( ) ,HC- 03J  ,R5-AP5, TR- 00J ,TR- 00J
                                 Tag For:     PHASE 2, BLDG 4, 2ND FLOOR

0017       159        HTL-0048-T              TASK LIGHT 48"
                      HAWORTH, INC.           (T) ,TR- 00J
                                 Tag For:     PHASE 2, BLDG 4, 2ND FLOOR

0018        59        HTL-0054-T              TASK LIGHT 54"
                      HAWORTH, INC.           (T) ,TR- 00J
                                 Tag For:     PHASE 2, BLDG 4, 2ND FLOOR

0019       194        SR-4                    REGULAR SHELF 48"
                      HAWORTH, INC.           ,0V - 035 ,TR- 00J ,TR- 00J
                                 Tag For:     PHASE 2, BLDG 4, 2ND FLOOR

0020       324        *4320-6101*             324 YARDS OF NICKEL FABRIC FOR SIDE
                      HAWORTH, INC.           CHAIRS
                                              3A-06
                                 Tag For:     PHASE 2, BLDG 4, 2ND FLOOR

0021        41        *6650-2104*,            5 x 12 SHEET OF LAMINATE
                      HAWORTH, INC.           LAM: H-3J
                                              H-3J
                                 Tag For:     PHASE 2, BLDG 4, 2ND FLOOR

0022      2001        *7080-1301*  , TR-J,    2,001 FEET OF T-MOLDING, GRAPHITE, TR-J
                      HAWORTH, INC.           SHIPPING TO J.B. ENGINEERING , TR-J,

                                 Tag For:     PHASE 2, BLDG 4, 2ND FLOOR
--------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

[LOGO]
[LETTERHEAD OF CONTRACT OFFICE GROUP]

                                A c k n o w l e d g e m e n t            PAGE: 4

                                             SHIP TO:

REBECCA SCAVONE                              REBECCA SCAVONE
SYNOPSYS                                     SYNOPSYS
700 EAST MIDDLEFIELD RD                      1030 MAUDE AVENUE
                                             BLDG. 4 2ND FLOOR, PHASE 2
MOUNTAIN VIEW, CA 94043-4033                 SUNNYVALE, CA 94086

650 584-1457                                 650 584-1457
                                   Terms: NET 30 DAYS

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
  ORDER NO.     DATE        CUSTOMER'S P.O. NO.       CUSTOMER NO.           SALESPERSON
--------------------------------------------------------------------------------------------------------------
 0000072241   10/10/00   117318                      0000282776   BRENDA ZIGENIS
--------------------------------------------------------------------------------------------------------------
LINE    QUANTITY     CATALOG NO./VENDOR              D E S C R I P T I O N           UNIT SELL   EXTENSION
--------------------------------------------------------------------------------------------------------------
<S>     <C>          <C>                      <C>                                    <C>         <C>
                                                       ***END OF ORDER***


--------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                    [LETTERHEAD OF CONTRACT OFFICE GROUP]

[LOGO]                                   A c k n o w l e d g e m e n t   PAGE: 1


                                                  SHIP TO:

REBECCA SCAVONE                                   REBECCA SCAVONE
SYNOPSYS                                          SYNOPSYS
700 EAST MIDDLEFIELD RD                           1030 MAUDE AVENUE
                                                  BLDG. 4 2ND FLOOR, PHASE 2
MOUNTAIN VIEW, CA 94043-4033                      SUNNYVALE, CA 94086

650 584-1457                                      650 584-1457
                                        Terms: NET 30 DAYS

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
   ORDER NO.            DATE           CUSTOMER'S P.0. NO.      CUSTOMER NO.                 SALESPERSON
-------------------------------------------------------------------------------------------------------------------------

   0000072239         10/10/00       117318                    0000282776     BRENDA ZIGENIS
-------------------------------------------------------------------------------------------------------------------------
LINE   QUANTITY      CATALOG NO./ VENDOR                  D E S C R I P T I O N                    UNIT SELL    EXTENSION
-------------------------------------------------------------------------------------------------------------------------
<S>    <C>           <C>                   <C>                                                    <C>          <C>
                                           -------- Special Instructions --------
                                           HAWORTH - SV4, 2ND  FLOOR, PHASE 2
                                           SECOND HALF OF ORDER

0001      48         HWSP-3029-L           WORK SURFACE SUPPORT PANEL 30"
                     HAWORTH, INC.         (L) ,HP-03J
                                 Tag For:  PHASE 2, BLDG 4, 2ND FLOOR

0002      50         HWSP-3029-R           WORK SURFACE SUPPORT PANEL 30"
                     HAWORTH, INC.         (R) ,HP- 03J
                                 Tag For:  PHASE 2, BLDG 4, 2ND FLOOR

0003      93         WRCS-430              90 DEG. CORNER WORK SURFACE
                     HAWORTH, INC.         W/O KEYBOARD 48" X 30"
                                           ( ) ,OH- 03J ,TR- OOJ-,TR- OOJ
                                 Tag For:  PHASE 2, BLDG 4, 2ND FLOOR

0004     105         WS-430                REGULAR WORK SURFACE 48" X 30"
                     HAWORTH, INC.         ( ) ,OH- 03J ,TR- OOJ ,TR- OOJ
                                 Tag For:  PHASE 2, BLDG 4, 2ND FLOOR

0005      93         WS-430-R2             REGULAR WORK SURFACE 48" X 30"
                     HAWORTH, INC.         (R2) ,OH- 03J ,TR- OOJ ,TR- OOJ
                                 Tag For:  PHASE 2, BLDG 4, 2ND FLOOR

0006      35         PDM-24-JLN            MOBILE PEDESTAL DRAWER 24"
                     HAWORTH, INC.         (JLN) ,TR- OOJ
                                 Tag For:  PHASE 2, BLDG 4, 2ND FLOOR

0007     128         PDS-24-HLN            SUSPENDED PEDESTAL DRAWER 24"
                     HAWORTH, INC.         (HLN) ,TR- OOJ
                                 Tag For:  PHASE 2, BLDG 4, 2ND FLOOR

0008      93         PDS-24-JLN            SUSPENDED PEDESTAL DRAWER 24"
                     HAWORTH, INC.         (JLN) ,TR- OOJ
                                 Tag For:  PHASE 2, BLDG 4, 2ND FLOOR

-------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                    [LETTERHEAD OF CONTRACT OFFICE GROUP]

[LOGO]                                   A c k n o w l e d g e m e n t   PAGE: 2


                                                  SHIP TO:

REBECCA SCAVONE                                   REBECCA SCAVONE
SYNOPSYS                                          SYNOPSYS
700 EAST MIDDLEFIELD RD                           1030 MAUDE AVENUE
                                                  BLDG. 4 2ND FLOOR, PHASE 2
MOUNTAIN VIEW, CA 94043-4033                      SUNNYVALE, CA 94086

650 584-1457                                      650 584-1457
                                        Terms: NET 30 DAYS

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
   ORDER NO.            DATE           CUSTOMER'S P.O. NO.      CUSTOMER NO.                 SALESPERSON
-------------------------------------------------------------------------------------------------------------------------

   0000072239         10/10/00       117318                    0000282776         BRENDA ZIGENIS
-------------------------------------------------------------------------------------------------------------------------
LINE   QUANTITY      CATALOG NO./ VENDOR                  D E S C R I P T I O N                    UNIT SELL    EXTENSION
-------------------------------------------------------------------------------------------------------------------------
<S>    <C>           <C>                      <C>                                                  <C>          <C>
0009      59         *SSDT-3360-F*         VERT. STOR. UNIT, CLOSED BACK,
                     HAWORTH, INC.         FLIPPER DOOR, 33" X 60"
                                           , (F) ,3A- 022 ,R5- AP5 ,HP- 03J ,TR- 00J
                                 Tag For:  PHASE 2, BLDG 4, 2ND FLOOR

          35         *INQ53043LINE1*,      TRANSITIONAL DESK - 30" X 60"
0010                 HAWORTH, INC.         (OR) , H-3J,  TR-J,
                                 Tag For:  PHASE 2, BLDG 4, 2ND FLOOR

0011      35         *INQ53043LINE6*       TRANSITIONAL DESK - 30" X 60"
                     HAWORTH, INC.         W/DMS-1 HOLE IN UPPER RIGHT HAND CORNER
                                           , (OL) , (2), OH-03J, (1) , TR-J, TR-J,
                                 Tag For:  PHASE 2, BLDG 4, 2ND FLOOR

0012      12         HTB-4833              TACKBOARD 48" X 33"
                     HAWORTH, INC.         ,3A- 022
                                 Tag For:  PHASE 2, BLDG 4, 2ND FLOOR

0013      27         HTB-4811              TACKBOARD 48" X 11"
                     HAWORTH, INC.         ,3A- 022
                                 Tag For:  PHASE 2, BLDG 4, 2ND FLOOR

0014     165         HTB-4816              TACKBOARD 48" X 16"
                     HAWORTH, INC.         ,3A- 022
                                 Tag For:  PHASE 2, BLDG 4, 2ND FLOOR

0015      12         WS-424                REGULAR WORK SURFACE 48" X 24"
                     HAWORTH, INC.         ( ) ,OH- 03J ,TR- 00J ,TR- OOJ
                                 Tag For:  PHASE 2, BLDG 4, 2ND FLOOR

                                                              ***END OF ORDER***
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

[LOGO] [LETTER OF CONTRACT OFFICE GROUP] A c k n o w l e d g e m e n t   PAGE: 1

                                                  SHIP TO:

   REBECCA SCAVONE                                REBECCA SCAVONE
   SYNOPSYS                                       SYNOPSYS
   700 EAST MIDDLEFIELD RD                        1030 MAUDE AVENUE
                                                  BLDG. 4, 2ND FLOOR, PHASE 4
   MOUNTAIN VIEW, CA 94043-4033                   SUNNYVALE, CA 94086

   650 584-1457                                   650 584-1457
                                        Terms: NET 30 DAYS

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
   ORDER NO.          DATE         CUSTOMER'S P.O. NO.      CUSTOMER NO.                       SALESPERSON
---------------------------------------------------------------------------------------------------------------------------------

   0000072238       10/10/00       117318                   0000282776          BRENDA ZIGENIS
---------------------------------------------------------------------------------------------------------------------------------
LINE   QUANTITY    CATALOG NO./VENDOR                  D E S C R I P T I O N                         UNIT SELL      EXTENSION
---------------------------------------------------------------------------------------------------------------------------------
<S>     <C>        <C>                           <C>                                                 <C>            <C>
                                                 ----------Special Instructions-------------------
                                                 HAWORTH PRODUCT, SV-4 2ND FLOOR, PHASE 4
                                                 FIRST HALF OF ORDER

 0001      95      *EFN-366-B                        STRAIGHT FABRIC PANEL NO-POWER
                    HAWORTH, INC.                     36" X 66"
                                                      (B), FP- OAF, FP- OAF, TR- 00J, TR- 00J
                              Tag For:               PHASE 4, BLDG 4, 2ND FLOOR

 0002      26      *EFN-442-B*                       STRAIGHT FABRIC PANEL NO-POWER
                    HAWORTH, INC.                     48" X 42"
                                                     , (B), FP- OAF, FP- OAF, TR- 00J, TR- 00J
                              Tag For:               PHASE 4, BLDG 4, 2ND FLOOR

 1003     177      *EFN-466-B*                       STRAIGHT FABRIC PANEL NO-POWER
                    HAWORTH, INC.                    48" X 66"
                                                     , (B), FP- OAF, FP- OAF, TR- 00J, TR- 00J
                              Tag For:               PHASE 4, BLDG 4, 2ND FLOOR

 0004      27      *EFP-266-B*                       STRAIGHT FABRIC PANEL POWER
                   HAWORTH, INC.                      24" X 66"
                                                     , (B), FP- OAF, FP- OAF, TR- 00J, TR- 00J
                              Tag For:               PHASE 4, BLDG 4, 2ND FLOOR

 0005      33      *EFP-442-B*                       STRAIGHT FABRIC PANEL POWER
                   HAWORTH, INC.                      48 " X 42"
                                                     , (B), FP- OAF, FP- OAF, TR- 00J, TR- 00J
                              Tag For:               PHASE 4, BLDG 4, 2ND FLOOR

 0006     176      *EFP-466-B*                       STRAIGHT FABRIC PANEL POWER
                   HAWORTH, INC.                      48" X 66"
                                                     , (B), FP- OAF, FP- OAF ,TR- 00J, TR- 00J
                              Tag For:               PHASE 4, BLDG 4, 2ND FLOOR

 0007      27      *FPFC-42-B*                       90 DEG. FABRIC FINISH POST 42"
                   HAWORTH, INC.                      (B)       ______POWER BASE
                                                     , (B), FP- OAF, TR- 00J, TR- 00J

---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                     [LETTERHEAD OF CONTRACT OFFICE GROUP]

[LOGO]                                   A c k n o w l e d g e m e n t   PAGE: 2




                                                  SHIP TO:

   REBECCA SCAVONE                                REBECCA SCAVONE
   SYNOPSYS                                       SYNOPSYS
   700 EAST MIDDLEFIELD RD                        1030 MAUDE AVENUE
                                                  BLDG. 4, 2ND FLOOR, PHASE 4
   MOUNTAIN VIEW, CA 94043-4033                   SUNNYVALE, CA 94086

   650 584-1457                                   650 584-1457
                                        Terms: NET 30 DAYS

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
   ORDER NO.          DATE         CUSTOMER'S P.O. NO.      CUSTOMER NO.                       SALESPERSON
---------------------------------------------------------------------------------------------------------------------------------

   0000072238       10/10/00       117318                   0000282776          BRENDA ZIGENIS
---------------------------------------------------------------------------------------------------------------------------------
LINE   QUANTITY    CATALOG NO./VENDOR                  D E S C R I P T I O N                         UNIT SELL      EXTENSION
---------------------------------------------------------------------------------------------------------------------------------
<S>     <C>        <C>                           <C>                                                 <C>            <C>
 Line:  0007 (continued)
                              Tag For:               PHASE 4, BLDG 4, 2ND FLOOR

 0008     33       *FPFC-66-B*                       90 DEG. FABRIC FINISH POST 66"
                   HAWORTH, INC.                     (B)         _______POWER BASE
                                                     , (B), FP-AF, TR-J,
                              Tag  For:              PHASE 4, BLDG 4, 2ND FLOOR

 0009     16       *FPFS-42-B*                       180 DEG FABRIC FINISH POST 42"
                   HAWORTH, INC.                     (B)         _______POWER BASE
                                                     , (B), FP-AF, TR-J,
                              Tag For:               PHASE 4, BLDG 4, 2ND FLOOR

 0010     89       *FPFS-66-B*                       180 DEG FABRIC FINISH POST 66"
                   HAWORTH, INC.                     (B)         _______POWER BASE
                                                     , (B), FP-AF, TR-J,
                              Tag For:               PHASE 4, BLDG 4, 2ND FLOOR

 0011      1       PCC-180-B                         180 DEG POWER CONNECTOR COVER
                   HAWORTH, INC.                     4" (BOX OF 6)
                                                     (B), TR- 00J
                              Tag For:               PHASE 4, BLDG 4, 2ND FLOOR

 0012      51      PRD-3-B                           DUPLEX RECEPTACLES (BOX OF 6)
                   HAWORTH, INC.                     (B), TR- 00J
                              Tag For:               PHASE 4, BLDG 4, 2ND FLOOR

 0013      31      TFM-6-B                           TOP FEED MODULE 68" FOR PANEL
                   HAWORTH, INC.                     HEIGHT 64" & 68"
                                                     (B), TR- 00J ,TR- 00J
                              Tag For:               PHASE 4, BLDG 4, 2ND FLOOR

 0014     194      *FDRF-4*                          REG. FLIPPER DOOR - FABRIC 48"
                   HAWORTH, INC.                     ( ) WITH LOCK
                                                     , HC-03J, R5-AP5, TR-J,
                              Tag For:               PHASE 4, BLDG 4, 2ND FLOOR

---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
                     [LETTERHEAD OF CONTRACT OFFICE GROUP]


[LOGO]                            A c k n o w l e d g e m e n t          PAGE: 3


                                             SHIP TO:

REBECCA SCAVONE                              REBECCA SCAVONE
SYNOPSYS                                     SYNOPSYS
700 EAST MIDDLEFIELD RD                      1030 MAUDE AVENUE
                                             BLDG. 4, 2ND FLOOR, PHASE 4
MOUNTAIN VIEW, CA 94043-4033                 SUNNYVALE, CA 94086

650 584-1457                                 650 584-1457
                                   Terms: NET 30 DAYS

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
  ORDER NO.     DATE        CUSTOMER'S P.O. NO.        CUSTOMER NO.           SALESPERSON
--------------------------------------------------------------------------------------------------------------
 0000072238   l0/l0/00   117318                      0000282776   BRENDA ZIGENIS
--------------------------------------------------------------------------------------------------------------
LINE    QUANTITY     CATALOG NO./ VENDOR             D E S C R I P T I O N         UNIT SELL   EXTENSION
--------------------------------------------------------------------------------------------------------------
<S>     <C>          <C>                      <C>                                    <C>         <C>
015        26         HTB-4811                TACKBOARD 48" X 11"
                      HAWORTH, INC.           ,3A- 022
                                 Tag For:     PHASE 4, BLDG 4, 2ND FLOOR

016       166         HTB-4816                TACKBOARD 48" X 16"
                      HAWORTH, INC.           ,3A- 022
                                 Tag For:     PHASE 4, BLDG 4, 2ND FLOOR

017       160         HTL-0048-T              TASK LIGHT 48"
                      HAWORTH, INC.           (T) ,TR-  OOJ
                                 Tag For:     PHASE 4, BLDG 4, 2ND FLOOR

0l8        56         HTL-0054-T              TASK LIGHT 54"
                      HAWORTH, INC.           (T) ,TR-  OOJ
                                 Tag For:     PHASE 4, BLDG 4, 2ND FLOOR

019       194         SR-4                    REGULAR SHELF 48"
                      HAWORTH, INC.           ,OV- 03J ,TR- OOJ ,TR- OOJ
                                 Tag For:     PHASE 4, BLDG 4, 2ND FLOOR

022         8         *EFN-242-B*,            STRAIGHT FABRIC PANEL NO-POWER
                      HAWORTH, INC.            24" X 42"
                                              (B), FP-OAF, FP-OAF, TR-J, TR-J
                                 Tag For:     PHASE 4, BLDG 4, 2ND FLOOR

023        92         *EFN-266-B*,            STRAIGHT FABRIC PANEL NO-POWER
                      HAWORTH, INC.            24"  X 66"
                                              (B), FP-OAF, FP-OAF, TR-J, TR-J,
                                 Tag For:     PHASE 4, BLDG 4, 2ND FLOOR



                                                ***END OF ORDER***
--------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
                    [LETTERHEAD OF CONTRACT OFFICE GROUP]

[LOGO]                      A c k n o w l e d g e m e n t                PAGE: 1


                                             SHIP TO:

REBECCA SCAVONE                              REBECCA SCAVONE
SYNOPSYS                                     SYNOPSYS
700 EAST MIDDLEFIELD RD                      1030 MAUDE AVENUE
                                             BLDG. 4, 2ND FLOOR, PHASE 4
MOUNTAIN VIEW, CA 94043-4033                 SUNNYVALE, CA 94086

650 584-1457                                 650 584-1457
                                     Terms: NET 30 DAYS

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
  ORDER NO.     DATE        CUSTOMER'S P.O. NO.       CUSTOMER NO.           SALESPERSON
--------------------------------------------------------------------------------------------------------------
 0000072240   l0/l0/00   117318                      0000282776   BRENDA ZIGENIS
--------------------------------------------------------------------------------------------------------------
LINE    QUANTITY     CATALOG NO./ VENDOR          D E S C R I P T I O N              UNIT SELL   EXTENSION
--------------------------------------------------------------------------------------------------------------
<S>     <C>          <C>                <C>                                          <C>         <C>
                                        ___________Special Instructions__________
                                        HAWORTH PRODUCT, SV-4. 2ND FLOOR, PHASE 4
                                        SECOND HALF OF ORDER

0001       48         HWSP-3029-L             WORK SURFACE SUPPORT PANEL 30"
                      HAWORTH, INC.           (L), HP- 03J
                                 Tag For:     PHASE 4, BLDG 4, 2ND FLOOR

0002       51         HWSP-3029-R             WORK SURFACE SUPPORT PANEL 30"
                      HAWORTH, INC.           (R) ,HP- 03J
                                 Tag For:     PHASE 4, BLDG 4, 2ND FLOOR

0003       93         WRCS-430                90 DEG. CORNER WORK SURFACE
                      HAWORTH, INC.           W/O KEYBOARD 48" X 30"
                                              ( ) ,OH- 03J ,TR- OOJ-,TR- OOJ
                                 Tag For:     PHASE 4, BLDG 4, 2ND FLOOR

0004      105         WS-430                  REGULAR WORK SURFACE 48" X 30"
                      HAWORTH, INC.           ( ) ,OH- 035 ,TR- OOJ ,TR- OOJ
                                 Tag For:     PHASE 4, BLDG 4, 2ND FLOOR

0005       93         WS-430-R2               REGULAR WORK SURFACE 48" X 30"
                      HAWORTH, INC.           (R2) ,OH- 035 ,TR- OOJ ,TR- OOJ
                                 Tag For:     PHASE 4, BLDG 4, 2ND FLOOR

0006       34         PDM-24-JLN (JLN), TR    MOBILE PEDESTAL DRAWER 24"
                      HAWORTH, INC.           (JLN) ,TR- OOJ
                                 Tag For:     PHASE 4, BLDG 4, 2ND FLOOR

0007      127         PDS-24-HLN              SUSPENDED PEDESTAL DRAWER 24"
                      HAWORTH, INC.           (HLN) ,TR- OOJ
                                 Tag For:     PHASE 4, BLDG 4, 2ND FLOOR

0008       93         PDS-24-JLN              SUSPENDED PEDESTAL DRAWER 24"
                      HAWORTH, INC.           (JLN) ,TR- OOJ
                                 Tag For:     PHASE 4, BLDG 4, 2ND FLOOR

--------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                    [LETTERHEAD OF CONTRACT OFFICE GROUP]

[LOGO]

                                       A c k n o w l e d g e m e n t     PAGE: 2


                                                 SHIP TO:

REBECCA SCAVONE                                  REBECCA SCAVONE
SYNOPSYS                                         SYNOPSYS
700 EAST MIDDLEFIELD RD                          1030 MAUDE AVENUE
                                                 BLDG. 4, 2ND FLOOR, PHASE 4
MOUNTAIN VIEW, CA 94043-4033                     SUNNYVALE, CA 94086

650 584-1457                                     650 584-1457
                                          Terms: NET 30 DAYS
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
ORDER NO.                   DATE             CUSTOMER'S P.O. NO.         CUSTOMER NO.                   SALESPERSON
------------------------------------------------------------------------------------------------------------------------------------
0000072240                10/10/00                 117318                0000282776                   BRENDA ZIGENIS
------------------------------------------------------------------------------------------------------------------------------------
  LINE     QUANTITY    CATALOG NO./ VENDOR              D E S C R I P T I O N                            UNIT SELL      EXTENSION
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>         <C>                     <C>                                                       <C>            <C>
  0009        56       *SSDT-3360-F* , (F) ,   VERTICAL STORAGE UNIT, CLOSED BACK
                       HAWORTH, INC.           FLIPPER DOOR, 33" X 60"
                                               ,(F) ,3A- 022 ,R5- AP5 ,HP- 03J ,TR- OOJ
                                   Tag  For:   PHASE 4, BLDG 4, 2ND FLOOR

  0010        34       *INQ53043LINE1*         TRANSITIONAL DESK - 30 X 60
                       HAWORTH, INC.
                                               , (OR) , (2) ,OH- 03J ,(l) ,TR- OOJ ,TR- OOJ
                                   Tag  For:   PHASE 4, BLDG 4, 2ND FLOOR

  0011        34       *INQ53043LINE6* , (OL   TRANSITIONAL DESK - 30 X 60
                       HAWORTH, INC.           W/ DMS-1 HOLE IN UPPER RIGHT HAND CORNER
                                               , (OL) , (2) ,OH- 03J ,(l) ,TR- OOJ , TR- OOJ
                                   Tag  For:   PHASE 4, BLDG 4, 2ND FLOOR

  0012        12       HTB-4833                TACKBOARD 48" X 33"
                       HAWORTH, INC.           , 3A- 022
                                   Tag  For:   PHASE 4, BLDG 4, 2ND FLOOR

  0013        12       WS-424 (  ) ,OH- 03J    REGULAR WORK SURFACE 48" X 24"
                       HAWORTH, INC.           (  ) ,OH- 03J ,TR- OOJ ,TR- OOJ
                                   Tag  For:   PHASE 4, BLDG 4, 2ND FLOOR



                                                        ***END OF ORDER***
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                     [LETTERHEAD OF CONTRACT OFFICE GROUP]

[LOGO]
                                    A c k n o w l e d g e m e n t        PAGE: 1



                                                   SHIP TO:

REBECCA SCAVONE                                    REBECCA SCAVONE
SYNOPSYS                                           SYNOPSYS
700 EAST MIDDLEFIELD RD                            1030 MAUDE AVE
                                                   BLDG. 4, 1ST & 2ND FLOOR
MOUNTAIN VIEW, CA 94043-4033                       SUNNYVALE, CA 94086

650 584-1457                                       650 584-1457
                                              Terms: NET 30 DAYS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
ORDER NO.                   DATE             CUSTOMER'S P.O. NO.         CUSTOMER NO.                  SALESPERSON
------------------------------------------------------------------------------------------------------------------------------------
0000072411                10/10/00                 117302                 0000282776                  BRENDA ZIGENIS
------------------------------------------------------------------------------------------------------------------------------------
  LINE     QUANTITY    CATALOG NO./ VENDOR               D E S C R I P T I O N                           UNIT SELL      EXTENSION
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>         <C>                  <C>                                                          <C>            <C>
                                            ___________Special Instructions__________
                                            HAWORTH CHAIRS ONLY, SV4, 1ST & 2ND FLOOR

  0001       112       M243-1742                 MB H.E., PNEU2, HA TASK ARMS
                       HAWORTH, INC.             HARD CASTERS
                                                 ,3A- 006 ,TR- OOF
                                    Tag For:     PHASE 1 & 3, BLDG. 4, FIRST FLOOR, CUBES

  0004        45       M243-1742                 MB H.E., PNEU2, HA TASK ARMS
                       HAWORTH, INC.             HARD CASTERS
                                                 ,3A- 006 ,TR- OOF
                                    Tag For:     PHASE 1 & 3, BLDG. 4, FIRST FLOOR
                                                 HARDWALL

  0003       186       M243-1742                 MB H.E., PNEU2, HA TASK ARMS
                       HAWORTH, INC.             HARD CASTERS
                                                 ,3A- 006 ,TR- OOF
                                    Tag For:     PHASE 2 & 4, BLDG. 4, SECOND FLOOR, CUBES

  0004        69       M243-1742                 MB H.E., PNEU2, HA TASK ARMS
                       HAWORTH, INC.             HARD CASTERS
                                                 ,3A- 006 ,TR- OOF
                                    Tag For:     PHASE 2 & 4, BLDG. 4, SECOND FLOOR,
                                                 HARDWALLS


                                                        ***END OF ORDER***
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                    [LETTERHEAD OF CONTRACT OFFICE GROUP]

[LOGO]                                   A c k n o w l e d g e m e n t  PAGE: 1




                                                        SHIP TO:


REBECCA SCAVONE                                         REBECCA SCAVONE
SYNOPSYS                                                SYNOPSYS
700 E MIDDLEFIELD ROAD                                  1030 MAUDE AVENUE
                                                        BUILDING 4, 1ST FLOOR
MOUNTAIN VIEW, CA 94043-4033                            SUNNYVALE, CA 94086

650 584-1457                                            650 584-1457
                                                Terms: NET 30 DAYS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
ORDER NO.          DATE             CUSTOMER'S P.O. NO.          CUSTOMER NO.                   SALESPERSON
----------------------------------------------------------------------------------------------------------------------------
0000072398            10/10/00    117399                        0000282776         BRENDA ZIGENIS
----------------------------------------------------------------------------------------------------------------------------
LINE    QUANTITY   CATALOG NO./VENDOR          D E S C R I P T I O N                              UNIT SELL        EXTENSION
----------------------------------------------------------------------------------------------------------------------------
<S>     <C>     <C>                            <C>                                                <C>              <C>
                               ______________Special Instructions________________
                                       NON-HAWORTH PRODUCT, SV4-1ST FLOOR

 0001   45      SK-10158-J                    42"  X 42" X 30"
                ACTION LAMINATES, IN          CORNER CRANK ADJUSTABLE WORKSURFACE
                                              (23"-35"H), SINGLE LEVEL
                                              LAMINATE:  HAWORTH GRAPHITE
                                              VINYL T-MOLDING, GRAPHITE
                             Tag For:         BUILDING 4, 1ST FLOOR, OFFICES

0002    45      KS-6030-M                     30X60 KIDNEY TABLE ON CASTERS
                ACTION LAMINATES, IN          28" HIGH
                                              LAMINATE: HAWORTH GRAPHITE/TRIM:GRAPHITE
                             Tag For:         BUILDING 4, 1ST FLOOR, OFFICES

0003    32      G93A40                        CALLIOPE SWIVEL TILT CHAIR
                HARTER a Division of          MID BACK, OPEN ARMS
                                              COM: ONE PLUS ONE MISS Y00 SILVER LAKE
                                                   # 2278-801
                                              FRAME: BLACK
                             Tag For:         BUILDING 4, 1ST FLOOR CONFERENCE ROOM
                                              (10)401D, (10)402D, (6)248C, (6) 41.137A

0004    33      G93A40                        CALLIOPE SWIVEL TILT CHAIR
                HARTER a Division of          MID BACK, OPEN ARMS
                                              FABRIC: ONE PLUS ONE PLOWED LAND
                                                      #2291-502 SAGE
                                              FRAME: BLACK
                             Tag For:         BUILDING 4, 1ST FLOOR, MULTIPURPOSE ROOM
                                              400D

0005    22      G93A40                        CALLIOPE SWIVEL TILT CHAIR
                HARTER a Division of          MID BACK, OPEN ARMS

                                              COM: DESIGNTEX DELPHOS SILVER BIRCH
                                                   # 2438-101
                                              FRAME: BLACK
</TABLE>
<PAGE>

                    [LETTERHEAD OF CONTRACT OFFICE GROUP]

[LOGO]                                  A c k n o w l e d g e m e n t  PAGE: 2




                                                        SHIP TO:


REBECCA SCAVONE                                         REBECCA SCAVONE
SYNOPSYS                                                SYNOPSYS
700 E MIDDLEFIELD ROAD                                  1030 MAUDE AVENUE
                                                        BUILDING 4, 1ST FLOOR
MOUNTAIN VIEW, CA 94043-4033                            SUNNYVALE, CA 94086

650 584-1457                                            650 584-1457
                                                Terms: NET 30 DAYS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
ORDER NO.          DATE             CUSTOMER'S P.O. NO.          CUSTOMER NO.                   SALESPERSON
----------------------------------------------------------------------------------------------------------------------------
0000072398            10/10/00    117399                        0000282776         BRENDA ZIGENIS
----------------------------------------------------------------------------------------------------------------------------
LINE    QUANTITY   CATALOG NO./VENDOR          D E S C R I P T I O N                              UNIT SELL        EXTENSION
----------------------------------------------------------------------------------------------------------------------------
<S>     <C>        <C>                         <C>                                                <C>              <C>
LINE:   0005  (continued)
                                    Tag  For:   BUILDING 4, 1ST FLOOR CONFERENCE ROOM
                                                (12)101A, (10)102A

0006     44       24010                         JAZZ SERIES SLED BASE STACKER,
                  FIXTURES MANUFACTURI          ARMLESS, WITHOUT GLIDES
                                                THERMOPLASTIC
                                                COLOR: Y28 NAVY
                                    Tag  For:   BUILDING 4, 1ST FLOOR LUNCH ROOM, 307B

0007      6       SW-LT242416                   24"X24"X16" COFFEE LEG TABLE,
                  CREATIVE WOOD PRODUC          SQUARE LEGS, APRON, GLASS INSET
                                                NATURAL MAPLE
                                                .
                                                GLASS INSET ON 4 TABLES ONLY
                                    Tag  For:   BUILDING 4, 1ST FLOOR
                                                (3) 103A, (1) 104A, LOBBY
                                                (1) 137A, (1) 248C, CONFERENCE ROOM

OO08      2       MD-60-C                       60"DIAMETER X 29" HIGH CONFERENCE TABLE
                  CREATIVE WOOD PRODUC          ON A FULL CYLINDER BASE
                                                NATURAL MAPLE, GROMMET IN CENTER OF
                                                TABLE, EDGE DETAIL: 1 1/2 X 1 l/2
                                    Tag  For:   BUILDING 4, 1ST FLOOR CONFERENCE ROOM
                                                137A, 248C

0010      3       BOW-48144-H                   48" X 144" X 29" HIGH BOW END
                  CREATIVE WOOD PRODUC          CONFERENCE TABLE ON TWO HALF
                                                CYLINDER BASES, PANEL BASE CENTER
                                                NATURAL MAPLE, GROMMET IN CENTER OF
                                                TABLE, EDGE DETAIL: 1 l/2 X 1 l/2
                                    Tag  For:   BUILDING 4, 1ST FLOOR CONFERENCE ROOM
                                                401D, 402D

          1       BOW60192-H                    60" X 192" X 29" HIGH BOW END
                  CREATIVE WOOD PRODUC          CONFERENCE TABLE ON TWO HALF
                                                CYLINDER BASES, PANEL BASE CENTER
</TABLE>

<PAGE>
                [LETTERHEAD OF CONTRACT OFFICE GROUP]


[LOGO]

                                    A c k n o w 1 e d g e m e n t        PAGE: 3



                                                        SHIP TO:

   REBECCA SCAVONE                                      REBECCA SCAVONE
   SYNOPSYS                                             SYNOPSYS
   700 E MIDDLEFIELD ROAD                               1030 MAUDE AVENUE
                                                        BUILDING 4, 1ST FLOOR
   MOUNTAIN VIEW, CA 94043-4033                         SUNNYVALE, CA 94086

   650 584-1457                                         650 584-1457
                                                Terms: NET 30 DAYS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
  ORDER NO.            DATE         CUSTOMER'S P.O. NO.        CUSTOMER NO.                SALESPERSON
------------------------------------------------------------------------------------------------------------------------------------
  0000072398        10/10/00      117399                     0000282776            BRENDA ZIGENIS
====================================================================================================================================
LINE   QUANTITY      CATALOG NO./ VENDOR            D E S C R I P T I O N                            UNIT SELL         EXTENSION
====================================================================================================================================
<S>    <C>           <C>                     <C>                                                    <C>               <C>
Line:     0011 (Continued)
                                             NATURAL MAPLE, GROMMET IN CENTER OF
                                             TABLE, EDGE DETAIL: 1 l/2 X 1 l/2
                                Tag For:     BUILDING 4, 1ST FLOOR CONFERENCE ROOM
                                             10lA

 0012      4       SCB2172                   21" X 72" X 29" HIGH CREDENZA SHELL
                   CREATIVE WOOD PRODUCT     NATURAL MAPLE, EDGE DETAIL:  1 1/2 x
                                               1 l/2, W/GLASS TOPS
                                Tag For:     BUILDING 4, 1ST FLOOR CONFERENCE ROOM
                                             401D, 402D, 101A, 102A

 0013      1       SW-IT363616               36" X 36" X 16" HIGH COFFEE LEG TABLE
                   CREATIVE WOOD PRODUCT     SQUARE LEGS, APRON, GLASS INSET
                                             NATURAL MAPLE
                                             EDGE DETAIL: 1 l/2" X 1 l/2"
                                Tag For:     BUILDING 4, 1ST FLOOR, MAIN LOBBY 103A

 0014      1       H-164-1s                  ENCOUNTER CHAIR SLEEPER, UPHOLSTERED ARM
                   BRAYTON INTERNATIONAL     OVERALL DIMENSIONS: 32.5"WIDE X 34.5"D
                                             31"H
                                             DURATION GRADE 6/COLOR:   DU100 BLACK
                                Tag For:     BUILDING 4, 1ST FLOOR, BREAK ROOM
                                             412D

 0015    204       3210/63                   ECK ADAMS SIDE CHAIR
                   ECK ADAMS                 FABRIC: COM HAWORTH TELLURE NICKEL 3A-06
                                             FRAME FINISH: BLACK
                                Tag For:     BUILDING 4, 1ST FLOOR, CUBES & OFFICES

 0017     11       SQTB-42-DB                42" X 42" X 29" , HIGH LAMINATE LUNCH
                   ACTION LAMINATES, IN      ROOM TABLES, SELF EDGE OR VINYL ON
                                             CHROME X BASES
                                             LAMINATE: WILSONART 4696-60 SLIPSTREAM
                                             CAMPO
                                             BUMPER EDGE: CHARTER IND. BLUE
                                Tag For:     BUILDING 4, 1ST FLOOR, LUNCHROOM, 307B


------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
                  [LETTERHEAD OF CONTRACT OFFICE GROUP]
[LOGO]
                                    A c k n o w 1 e d g e m e n t        PAGE: 4


                                                        SHIP TO:

   REBECCA SCAVONE                                      REBECCA SCAVONE
   SYNOPSYS                                             SYNOPSYS
   700 E MIDDLEFIELD ROAD                               1030 MAUDE AVENUE
                                                        BUILDING 4, 1ST FLOOR
   MOUNTAIN VIEW, CA 94043-4033                         SUNNYVALE, CA 94086

   650 584-1457                                         650 584-1457
                                                Terms: NET 30 DAYS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
  ORDER NO.            DATE         CUSTOMER'S P.O. NO.        CUSTOMER NO.                SALESPERSON
------------------------------------------------------------------------------------------------------------------------------------
  0000072398        10/10/00      117399                     0000282776            BRENDA ZIGENIS
====================================================================================================================================
LINE   QUANTITY      CATALOG NO./VENDOR             D E S C R I P T I O N                            UNIT SELL         EXTENSION
====================================================================================================================================
<S>    <C>        <C>                        <C>                                                    <C>               <C>
 0020       6     20/710                      HERBIE LOUNGE CHAIR
                  CARTWRIGHT                  FABRIC: COM LIZ JORDAN HILL - ARCHITEX
                                              SERLLING, COLOR: SPACE 54" REPEAT
                                              LEG FINISH: NATURAL MAPLE ON MAPLE #22
                                Tag For:      BUILDING 4, 1ST FLOOR, 103A

 0021      27     YARDS                       LIZ JORDAN HILL - ARCHITEX
                  ARCHITEX INTERNATIONAL      SERLLING, COLOR: SPACE, 54" REPEAT

                                              FOR HERBIE LOUNGE CHAIR, 20/710
                                Tag For:      CARTWRIGHT
                                              JACK CARTWRIGHT, INC.
                                              2014 CHESTNUT ST. EXT.
                                              HIGHPOINT, NC 27261
                                              Tag for Order: 0000072398

 0022       7     CUSTOM SYNOPSYS 2           LOBBY CHAIRS, W/MAPLE LEGS
                  MIZZICO FURNITURE,   I      FABRIC: DESIGNTEX ONE PLUS ONE
                                              PLOWED LAND, 2291-502 SAGE
                                              LEG FINISH: NATURAL MAPLE
                                Tag For:      BUILDING 4, 1ST FLOOR, OFF OF MAIN LOBBY
                                              (3) 103A, (3) 104A,

 0023      21     YARDS                       ONE PLUS ONE E, PLOWED LAND
                  DESIGNTEX INC.              2291-502 SAGE
                                Tag For:      MIZZICO
                                              21018 CORSAIR BLVD
                                              HAYWARD, CA 94545
                                              Tag for Order: 0000072398

 0025      17     REWT-2460-DB                24" X 60" X 29"H LAMINATE TABLES
                  ACTION LAMINATES, IN        WITH DURA SERIES T BASES
                                              LAMINATE: WILSONART 7909-60 FUSION MAPLE
                                              BLACK T-MOLDING & BLACK BASES
                                Tag For:      BUILDING 4, 1ST FLOOR MULTIPURPOSE ROOM
                                              400D


------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

<TABLE>
<S>       <C>                                                           <C>                                                  <C>
          [LOGO]  [LETTERHEAD OF CONTRACT OFFICE GROUP]
                                                                        A c k n o w l e d g e m e n t                        PAGE: 5


                                                                                     SHIP TO:

     REBECCA SCAVONE                                                                 REBECCA SCAVONE
     SYNOPSYS                                                                        SYNOPSYS
     700 E MIDDLEFIELD ROAD                                                          1030 MAUDE AVENUE
                                                                                     BUILDING 4, 1ST FLOOR
     MOUNTAIN VIEW, CA 94043-4033                                                    SUNNYVALE, CA 94086


     650 584-1457                                                                    650 584-1457
                                                                             Terms: NET 30 DAYS
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
   ORDER NO.          DATE         CUSTOMER'S P.O. NO.      CUSTOMER NO.                     SALESPERSON
------------------------------------------------------------------------------------------------------------------------------------

   0000072398      10/10/00     117399                     0000282776             BRENDA ZIGENIS

====================================================================================================================================
LINE   QUANTITY      CATALOG NO./VENDOR               D E S C R I P T I O N                          UNIT SELL           EXTENSION
====================================================================================================================================
<S>    <C>        <C>                             <C>
 0026     157     PRISM28CMSP                     CORNER KEYBOARD PLATFORM WITH
                  ADVANTAGE OFFICE SYS            S100 ADJUSTABLE ARM, BLACK
                                   Tag For:       BUILDING 4, 1ST FLOOR, OFFICES & CUBES

 0027     701     YARDS                           DESIGNTEX.FABRIC FOR FLIPPER DOORS
                  DESIGNTEX INC.                  HOSPITALITY
                                                  ROOM SERVICE, COLOR: 2959-904 MONTEVERDE
                                   Tag For;       COM FOR FLIPPER DOORS

 0029       1     DELIVERY ONLY                   NORTHWOOD TO DELIVER ONLY CONFERENCE
                  N0RTHWOOD                       ROOM FURNITURE - 1ST FLOOR

 0030       1     ACTUAL FREIGHT                  ACTUAL FREIGHT CHARGES FOR
                  BRAYTON INTERNATIONAL           BRAYTON INTERNATIONAL ENCOUNTER CHAIR
                                                  SLEEPER BLDG. 4, 1ST FLOOR

 0034      45     YARDS                           ONE PLUS ONE - PLOWED LAND
                  DESIGNTEX INC.                  2291-502 SAGE
                                   Tag For:       SIDEMARK FOR PO#'S 72398 & 72436

 0035      95     YARDS                           DELPHOS - SILVER BIRCH
                  DESIGNTEX INC.                  2438-101
                                   Tag For:       SIDEMARK FOR 72436 & 72398

 0036     105     YARDS                           ONE PLUS ONE - MISS YOO
                  DESIGNTEX INC.                  2278-801 SILVER LAKE
                                   Tag For:       SIDEMARK FOR PO # 'S 72436 & 72398

 0037     200     BACKING                         DESIGNTEX ACRYLIC BACKING FOR THE
                  DESIGNTEX INC.                  FOLLOWING FABRICS:
                                                  95 YARDS OF DELPHOS SILVER BIRCH
                                                  105 YARDS OF MISS YOO SILVER LAKE
                                                  @ $2.75 NET PRICING PER YARD

 0038       2     FABRIC                          LIZ JORDAN HILL - ARCHITEX
                  ARCHITEX INTERNATIONAL          SERLING COLOR : SPACE, 54"


------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

<TABLE>
<S>       <C>                                                           <C>                                                  <C>
          [LOGO]  [LETTERHEAD OF CONTRACT OFFICE GROUP]
                                                                        A c k n o w l e d g e m e n t                        PAGE: 6

                                                                                     SHIP TO:
     REBECCA SCAVONE                                                                 REBECCA SCAVONE
     SYNOPSYS                                                                        SYNOPSYS
     700 E MIDDLEFIELD ROAD                                                          1030 MAUDE AVENUE
                                                                                     BUILDING 4, 1ST FLOOR
     MOUNTAIN VIEW, CA 94043-4033                                                    SUNNYVALE, CA 94086


     650 584-1457                                                                    650 584-1457      <C>
                                                                             Terms: NET 30 DAYS 1  SALESPERSON
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
   ORDER NO.          DATE         CUSTOMER'S P.O. NO.      CUSTOMER NO.                     SALESPERSON
------------------------------------------------------------------------------------------------------------------------------------

   0000072398      10/10/00     117399                     0000282776             BRENDA ZIGENIS

====================================================================================================================================
LINE   QUANTITY      CATALOG NO./VENDOR               D E S C R I P T I O N                          UNIT SELL           EXTENSION
====================================================================================================================================
<S>    <C>        <C>                             <C>
Line      0038 (continued)

                                                  FOR HERBIE LOUNGE CHAIR, 20/710
                                   Tag For:       CARTWRIGHT
                                                  JACK CATWRIGH, INC.
                                                  2014 CHESTNUT STREET
                                                  HIGHPOINT, NC 27261
                                                  Tag for Order: 0000072398







                                                                 ***END OF ORDER***




------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

[LOGO]

Contract Office Group                   A c k n o w l e d g e m e n t    PAGE: 1
931 Cadillac Court
Milpitas, CA 95035
Tel 408-262-6400
Fax 408-262-1193

                                             SHIP TO:

REBECCA SCAVONE                              REBECCA SCAVONE
SYNOPSYS                                     SYNOPSYS
700 EAST MIDDLEFIELD RD                      1030 MAUDE AVENUE
                                             BLDG. 4, 2ND FLOOR
MOUNTAIN VIEW, CA 94043-4033                 SUNNYVALE, CA 94086-4033

650 584-1457                                 650 584-1457
                                   Terms: NET 30 DAYS

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
  ORDER NO.     DATE        CUSTOMER'S P.O. NO.       CUSTOMER NO.           SALESPERSON
--------------------------------------------------------------------------------------------------------------
 0000072436   10/10/00   117399                      0000282776   BRENDA ZIGENIS
--------------------------------------------------------------------------------------------------------------
LINE    QUANTITY     CATALOG NO./VENDOR              DESCRIPTION                        UNIT SELL   EXTENSION
--------------------------------------------------------------------------------------------------------------
<S>     <C>          <C>                      <C>                                       <C>         <C>
                                      -----------Special Instructions-------------
                                      NON-HAWORTH, SV-4  2ND FLOOR

0001      324         3210/63                 ECK ADAMS SIDE CHAIRS
                      ECK ADAMS               FABRIC: COM HAWORTH TELLURE NICKEL 3A-06
                                              FRAME: BLACK
                                 Tag For:     BUILDING 4, 2ND FLOOR, CUBES & OFFICES

0002       69         KS-6030-M               30 X 60 KIDNEY TABLE ON CASTERS
                      ACTION LAMINATES, IN    28" HIGH, VBE GRAY
                                              LAMINATE: HAWORTH GRAPHITE
                                 Tag For:     BUILDING 4, 2ND FLOOR, OFFICES

0003       69         SK-10158-J              42" X 42" x 30"
                      ACTION LAMINATES, IN    CORNER CRANK ADJUSTABLE WORKSURFACE
                                              (23" - 35" H), SINGLE LEVEL
                                              LAMINATE: HAWORTH GRAPHITE
                                              VINYL T-MOLDING, GRAPHITE
                                 Tag For:     BUILDING 4, 2ND FLOOR, OFFICES

0004        7         SCS2172                 CREDENZA SHELL, 21" X 72" X 29" HIGH
                      CREATIVE WOOD PRODUC    NATURAL MAPLE LEGS, W/GLASS TOPS
                                              EDGE DETAIL: 1 1/2" X 1 1/2"
                                 Tag For:     BUILDING 4, 2ND FLOOR
                                              402H, 403E, 404E, lOlE, 101E, 106E, 107E

0005        8         CUSTOM  SYNOPSYS 2      LOBBY CHAIRS, W/MAPLE LEGS
                      MIZZICO FURNITURE, I    FABRIC: DESIGNTEX, ONE PLUS ONE
                                              PLOWED LAND, 2291-502 SAGE
                                              LEG FINISH: NATURAL MAPLE
                                 Tag For:     BUILDING 4, 2ND FLOOR, LOBBY 103A, 400H

0006       45         YARDS                   ONE PLUS ONE
                      DESIGNTEX INC.          PLOWED LAND, 2291-502, SAGE
                                 Tag For:     MIZZICO
                                              21018 CORSAIR BLVD
                                              HAYWARD, CA 94545
--------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

[LOGO]

Contract Office Group               A c k n o w l e d g e m e n t       PAGE: 2
931 Cadillac Court
Milpitas, CA 95035
Tel 408-262-6400
Fax 408-262-1193

                                             SHIP TO:

REBECCA SCAVONE                              REBECCA SCAVONE
SYNOPSYS                                     SYNOPSYS
700 EAST MIDDLEFIELD RD                      1030 MAUDE AVENUE
                                             BLDG. 4, 2ND FLOOR
MOUNTAIN VIEW, CA 94043-4033                 SUNNYVALE, CA 94086-4033

650 584-1457                                 650 584-1457
                                   Terms: NET 30 DAYS

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
  ORDER NO.     DATE        CUSTOMER'S P.O. NO.       CUSTOMER NO.           SALESPERSON
--------------------------------------------------------------------------------------------------------------
 0000072436   10/10/00   117399                      0000282776   BRENDA ZIGENIS
--------------------------------------------------------------------------------------------------------------
LINE    QUANTITY     CATALOG NO./VENDOR              DESCRIPTION                        UNIT SELL   EXTENSION
--------------------------------------------------------------------------------------------------------------
<S>     <C>          <C>                      <C>                                       <C>         <C>
Line: 0006  (continued)                       Tag for Order: 0000072436

0007        6         SW-H242416              24" X 24" X 16" HIGH COFFEE LEG TABLE
                      CREATIVE WOOD PRODUC    SQUARE LEGS, APRON, GLASS INSET
                                              NATURAL MAPLE, W/GLASS TOPS
                                              EDGE DETAIL: 1 1/2" X 1 1/2"

                                              GLASS INSET ON (2) TABLES ONLY
                                 Tag For:     BUILDING 4, 2ND FLOOR, CONFERENCE ROOM
                                              348F, 248G, 102E, 401H
                                              LOBBY AREA 400H, 103E

0009        2         MD-60-C                 60" DIAMETER X 29" HIGH CONFERENCE
                      CREATIVE WOOD PRODUC    TABLE ON A FULL CYLINDER BASE
                                              NATURAL MAPLE, GROMMET CENTER OF TABLE
                                              EDGE DETAIL: 1 1/2" X 1 1/2"
                                 Tag For:     BUILDING 4, 2ND FLOOR, CONFERENCE ROOM
                                              348F, 248G

0010        2         BOW48120-H              48" X 120" X 29" HIGH BOW END CONFERENCE
                      CREATIVE WOOD PRODUC    TABLE ON TWO HALF CYLINDER BASES,
                                              NATURAL MAPLE, GROMMET IN CENTER OF
                                              TABLE, EDGE DETAIL: 1 1/2" X 1 1/2"
                                 Tag For:     BUILDING 4, 2ND FLOOR, CONFERENCE ROOM
                                              102E, 401H

0011        3         BOW60192H               60" X 192" X 29" HIGH BOW END
                      CREATIVE WOOD PRODUC    CONFERENCE TABLE ON TWO HALF
                                              CYLINDER BASES, PANEL BASE CENTER
                                              NATURAL MAPLE; GROMMET IN CENTER OF
                                              TABLE, EDGE DETAIL: 1 1/2" X 1 1/2"
                                 Tag For:     BUILDING 4, 2ND FLOOR, CONFERENCE ROOM
                                              402H, 101E, 104E

0012       52         G93A40                  CALLIOPE SWIVEL TILT CHAIR,
                      HARTER a Division of    MID BACK, OPEN ARMS,

--------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                    [LETTERHEAD OF CONTRACT OFFICE GROUP]

[LOGO]                                   A c k n o w l e d g e m e n t   PAGE: 3



                                                     SHIP TO:

REBECCA SCAVONE                                      REBECCA SCAVONE
SYNOPSYS                                             SYNOPSYS
700 EAST MIDDLEFIELD RD                              1030 MAUDE AVENUE
                                                     BLDG. 4, 2ND FLOOR
MOUNTAIN VIEW, CA 94043-4033                         SUNNYVALE, CA 94086-4033

650 584-1457                                         650 584-1457
                                             Terms: NET 30 DAYS
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
ORDER NO.     DATE         CUSTOMER'S P.O. NO.   CUSTOMER NO.     SALESPERSON
------------------------------------------------------------------------------------------------

0000072436   10/10/00   117399                   0000282776    BRENDA ZIGENIS

------------------------------------------------------------------------------------------------
Line   Quantity   CATALOG NO./ VENDOR       D E S C R I P T I O N      UNIT SELL   EXTENSION
------------------------------------------------------------------------------------------------
<S>    <C>        <C>                    <C>                           <C>         <C>
Line:    0012 (continued)
                                         COM: ONE PLUS ONE MISS YOO SILVER LAKE
                                              # 2278-801
                             Tag For:    BUILDING 4, 2ND FLOOR, CONFERENCE ROOM
                                         (10)403E, (10)404E, (10)106E, (10)107E
                                         (6)348F, (6)248G

0013        52     G93A40                CALLIOPE SWIVEL TILT CHAIR
                   HARTER a Division of MID BACK, OPEN ARMS

                                         COM : DESIGNTEX DELPHOS
                                               # 2438-101 SILVER BIRCH
                             Tag For:    BUILDING 4, 2ND FLOOR, CONFERENCE ROOM
                                         (12)402H, (12)101E, (8)401H, (8)02E
                                         (12)104E

0014         1     H-1641S               ENCOUNTER CHAIR SLEEPER, UPHOLSTERED
                   BRAYTON INTERNATION   ARM, OVERALL DIMENSIONS: 32.5"W X 34.5"D
                                         x 31"H
                                         DURATION GRADE 6/COLOR: DUl00 BLACK
                             Tag For:    BUILDING 4, 2ND FLOOR, BREAKROOM, 412H

0015         4     BOW48144-H            48" X 144" X 29" HIGH BOW END
                   CREATIVE WOOD PRODUC  CONFERENCE TABLE ON TWO HALF
                                         CYLINDER BASES, PANEL BASE CENTER
                                         NATURAL MAPLE, GROMMET IN CENTER OF
                                         TABLE, EDGE DETAIL:
                             Tag For:    BUILDING 4, 2ND FLOOR
                                         106E, 107E, 403E, 404E

0017       255     PRISM28CMSP           CORNER KEYBOARD PLATFORM WITH
                   ADVANTAGE OFFICE SYS  Sl00 ADJUSTABLE ARM, BLACK
                             Tag For:    BUILDING 4, 2ND FLOOR, CUBES, OFFICES

             1                           FREIGHT CHARGES FOR ENCOUNTER CHAIR
0019               BRAYTON INTERNATIONA  SLEEPER
                             Tag For:    BUILDING 4, 2ND FLOOR, BREAKROOM
------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

          [LETTERHEAD OF CONTRACT OFFICE GROUP]

[LOGO]                                  A c k n o w l e d g e m e n t   PAGE: 4



                                                    SHIP TO:

REBECCA SCAVONE                                     REBECCA SCAVONE
SYNOPSYS                                            SYNOPSYS
700 EAST MIDDLEFIELD RD                             1030 MAUDE AVENUE
                                                    BLDG. 4, 2ND FLOOR
MOUNTAIN VIEW, CA 94043-4033                        SUNNWALE, CA 94086-4033

650 584-1457                                        650 584-1457
                                            Terms: NET 30 DAYS
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
ORDER NO.       DATE         CUSTOMER'S P.O. NO.   CUSTOMER NO.    SALESPERSON
------------------------------------------------------------------------------------------------

0000072436    l0/l0/00l   117399                    0000282776 I  BRENDA ZIGENIS

------------------------------------------------------------------------------------------------
LINE   QUANTITY    CATALOG NO./VENDOR      D E S C R I P T I O N        UNIT SELL    EXTENSION
------------------------------------------------------------------------------------------------
<S>    <C>         <C>                     <C>                          <C>          <C>

0021       1     DELIVERY ONLY           NORTHWOOD TO DELIVER ONLY CONFERENCE
                 CREATIVE WOOD PRODUC    ROOM FURNITURE - 2ND FLOOR

0024      11     GLASS                   l/4" THICK RECTANGULAR GLASS TOP TO
                 CREATIVE WOOD PRODUC    SIT ON TOP OF CREDENZAS
                             Tag For:    BLDG 4 CONFERENCE ROOMS










                                                   ***END OF ORDER***
------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

--------------------------------------------------------------------------------
                              1.0 Station Wiring
--------------------------------------------------------------------------------


1.0  General

     Unless otherwise specified:

     .  All cubicles have one standard station outlet
     .  All Offices have two standard station outlets
     .  All conference rooms have on standard wall outlet and one standard floor
        mounted outlet

1.01 Standard Station Outlet

     One Category 3 Voice and four Category 5e Data cables will be terminated
     onto an eight conductor RJ45 modular jack. A Panduit modular Mini-Com jack
     will be used for all UTP cable terminations. The voice four pair will be
     split between two jacks, two pair each terminating on pins 3,4,5 and 6. All
     modular jacks will be mounted in a Panduit Single Gang Faceplate which
     mounts in the drywall (Flush Mount) or into a Panduit Mini-Com Multi-Media
     outlet box for use with the Modular furniture. See sketches for details.

                    The jack color code scheme is as follows:
                    ----------------------------------------

                    White Jack  - Category 3 - Voice 1
                    Black Jack  - Category 3 - Voice 2
                    Blue Jack   - Category 5 - Data 1
                    Red Jack    - Category 5 - Data 2
                    Yellow Jack - Category 5 - Data 3
                    Green Jack  - Category 5 - Data 4

          See exhibits # 1 & 2 for jack layout

          Panduit 8 Conductor, Category 3, 568a, Mini-Com Information Outlets,
          White & Black(Voice)

                             Contractor # CJ88AWH
                             Contractor # CJ88ABL

          Panduit 8 Conductor, Category 5, 568b, Mini-Com Information Outlets,
          Blue, Red, Yellow, & Green (Data)

                             Contractor # CJ588BBU
                             Contractor # CJ588BRD
                             Contractor # CJ588BYL
                             Contractor # CJ588BGR

          Panduit Single Gang Faceplate Executive Series, White (Office)

                             Contractor # CFPE6WH
<PAGE>

Panduit 6 Port Multi-Media Surface Mount Box, White (Cubicle)

                              Contractor # CBX6WH

               Velcro shall be used to fasten Surface Mount Boxes to furniture
               partitions. Double sided tape will not be acceptable
                           ----------------------------------------


1.02 MDF/IDF Terminations

         The IDF Room side of the Category 5e cables serving data jacks will be
         terminated on Panduit patch panels (with color coding matching the
         station end), 568B wired with a Panduit horizontal wire manager
         installed between each panel. The forty-eight Port CAT 5 patch panels
         will be mounted in the relay racks within the MDF/IDF rooms. Placement
         of the patch panels in the racks is shown in exhibit # 9. The
         contractor will furnish and install the following in order to terminate
         each Jack location identified on the attached floor plans.

                Panduit 48 port Snap-in Faceplate patch panels

                         Contractor # CPP48WBL

                Panduit horizontal Wire Management Panel

                         Contractor # WMPl

                Panduit 8 Conductor, Category 5, 568b, Mini-Com Information
                Outlets, Blue, Red, Yellow, & Green (Data)

                         Contractor # CJ588BBU
                         Contractor # CJ588BRD
                         Contractor # CJ588BYL
                         Contractor # CJ588BGR

         The IDF Room side of the Category 3 four pair cables serving voice
         jacks and Wall Phone Outlets will be terminated on Panduit 110 terminal
         blocks. All 4 pairs of the Category 3 voice cable will be cross-
         connected to the feeder cable to the MDF. Voice only outlet cable runs
         (Wall phone, lobby, etc.) will be terminated in a separate column of
         110 blocks from the station voice cable. The contractor will furnish
         and install the following in order to terminate the jack locations
         identified on the attached floor plans.

                Panduit 900 Pr. Pan-Punch Tower system with 4pr. Designations

                         Contractor # P110KT9004
<PAGE>

                     Panduit 110 Vertical Cable Management

                         Contractor # P110VCM



       The contractor will provide an 800 pair copper tie from each IDF to the
       MDF location.
       Wallfield locations for the MDF and IDF are shown in exhibits # 3, 4 & 5.

1.03 Data Racks
     ----------

     All data racks are specified to be self-supporting, standard equipment
     mounting, 19" wide and 7' high, aluminum, manufactured by Chatsworth
     Products, Inc. unless otherwise specified. A Chatsworth double-sided
     vertical wire manager is to be installed between each rack. The racks for
     the MDF and IDF locations are to be provided and installed by the
     contractor as specified by exhibits # 3, 4 and 5.

     Ladder racks will be installed in the MDF/IDF locations as specified by
     exhibits # 3, 4 and 5. A Rack-to Runway mounting plate shall be used over
     all racks. Racks shown as connecting to walls will be finished with a "cut-
     to-size" piece as necessary. Any exposed end of the runway is to be
     finished off with a "End Closing Kit". All right angle corners are to be
     completed with a "Junction Splice" connecting runway to runway, creating a
     "T" junction.

1.04 Distribution/Riser Cable
     ------------------------

     All Inter/lntra building copper distribution/riser cable shall meet
     specifications for the appropriate installation application and
     environmental conditions.

     Horizontal cable will be installed onto "J" hooks or equivalent in the
     ceiling. The cable contractor is to furnish and install the "J" hooks or
     equivalent.

     The contractor will provide sleeves, cable trays and conduits where
     required, through which bundles of horizontal cabling will be pulled for
     termination. Contractors are advised that they must coordinate the
     installation of all station cabling with the construction manager.
<PAGE>

                           Typical Data/Voice Outlet


                                    [LOGO]

                                  Exhibit # 1
<PAGE>

                           Typical Data/Voice Outlet
                               Surface Mount Box

                                    [LOGO]

                                  Exhibit # 2
<PAGE>

                                Building 4 MDF
                                    Layout


                                 [FLOOR PLAN]

                                  Exhibit # 3
<PAGE>

                                Building 4 IDF
                             1st Floor - West Wing


                                 [FLOOR PLAN]

                                  Exhibit # 4
<PAGE>

                                Building 4 IDF
                             1st Floor - East Wing


                                 [FLOOR PLAN]

                                  Exhibit # 5
<PAGE>

                                   EXHIBIT C
                           FORM OF LETTER OF CREDIT

IRREVOCABLE STANDBY LETTER OF CREDIT NO.______________


                                            Drafts drawn must be marked with our
                                            Reference No.___________________

Date of Issue: :___________________

To:________________________________

   ________________________________

   ________________________________

   ________________________________

Applicant:

___________________________________

___________________________________

___________________________________

Ladies and Gentlemen:

     We hereby issue MAUDE AVENUE LAND CORPORATION, a Delaware corporation,
("Beneficiary") our irrevocable Letter of Credit No._________ for the account of
  -----------
_______________________, a _____________________ corporation, and authorize you
to draw hereunder up to the aggregate amount of U.S. $_________________
(__________________________ and ___ /00 U.S. Dollars) by means of your drafts at
sight drawn on _____________________ [Bank], __________________ [City],
_________________________ [State].

     Funds under this Letter of Credit are available to the Beneficiary as
     follows:

Any or all of the sums hereunder may be drawn down at any time and from time to
time from and after the date hereof up to the expiry date, as herein described,
by ________________________ Beneficiary when accompanied by this original Letter
of Credit and:

1.   A sight draft (the "Draft") executed and endorsed by an officer of the
     Beneficiary; and,

2.   A written statement purportedly signed by an officer of the Beneficiary
     certifying that a Default (as defined in the Lease) has occurred and such
     monies are due and owing to the Beneficiary (the "Drawing Statement").

     Notwithstanding such statement, Issuer shall honor such draw without
inquiry and issuer shall not have the authority, ability, right or discretion to
inquire as to the basis for such statement.

                                    Page 33
<PAGE>

     We hereby agree that drawings under this Letter of Credit will be duly
honored upon presentation and delivery of documents specified above at the
counters of ___________________ [Bank], ______________________ [City],
___________________ [State], as follows: Documents hereinabove referred to in
compliance with Letter of Credit terms and conditions, presented before 11:00
a.m. [California] time on a Banking Day on or before the Expiration Date of this
Letter of Credit will be paid on the same Banking Day; documents hereinabove
referred to in compliance with Letter of Credit terms and conditions, presented
after 11:00 a.m. Pacific Standard time on a Banking Day on or before the
Expiration Date of this Letter of Credit will be honored on the next succeeding
Banking Day. As used herein, the term "Banking Day" shall mean any day other
than Saturday, Sunday or a Holiday, on which banks in the State of California
are required to be open for the purpose of conducting commercial banking
business. The amount of each such drawing must be endorsed on the reverse hereof
by the negotiating bank.

     This Letter of Credit shall expire on ______________________ [date], at the
counters of ______________________ [Bank], ____________________ [City],
_______________________ [State].

     Notwithstanding the above Expiration Date of this Letter of Credit, it is a
condition of this Letter of Credit that the term shall be automatically renewed,
without amendment, for successive, additional one (1) year periods unless, at
least thirty (30) days prior to any such date of expiration, we notify the
Beneficiary in writing by overnight courier service to the Beneficiary's address
set forth above (or at such other address as instructed by the Beneficiary),
that this Letter of Credit will not be renewed for such additional one year
period.

     At any time after receipt by you of our non-renewal notice, you may draw
the available amount of the Letter of Credit by presenting your sight draft
drawn on us accompanied by your signed statement certifying that a non-renewal
notice was received and that this Letter of Credit has not been replaced with an
acceptable replacement Letter of Credit.

     This Letter of Credit is transferable in its entirety by the Beneficiary
without payment of any fee or charge. Transfer requests, if any, are restricted
to the counters of the advising Bank, herein designated the Transferring Bank.
Any transfer request in a form acceptable to the Transferring Bank must be
accompanied by the original credit, and the transfer must be duly noted on the
reverse of the original credit by the Transferring Bank. Notice of any transfer,
including the name and country of the transferee must be sent to us by the
Transferring Bank at the time of transfer. The transferee must not be subject to
the applicable provisions of the U.S. Foreign Asset Control Regulations.

     We hereby engage with you and any transferee that each draft drawn under
and in compliance with the terms of this Letter of Credit will by duly honored
on delivery of the documents as specified if presented at this office on or
before the expiration date of this credit or any automatically extended date.
The obligation of issuer under this Letter of Credit shall be the individual
obligation of Issuer and is in no way contingent upon reimbursement with respect
thereto and not dependent on the ability of Issuer to perfect a lien, security
interest, or any other reimbursement.

                                    Page 34
<PAGE>

     Except as otherwise expressly stated herein, this Letter of Credit is
governed by the Uniform Customs and Practice for Documentary credits (1993
Revision), International Chamber of Commerce - Publication 500.

     Please address all correspondence relating to this Letter of Credit to the
attention of ____________________ [our Trade Services Group, Standby Letter of
Credit Unit], mentioning our reference number as it appears above.

                                     Very truly yours,


                                     __________________________________
                                     Preparer/Authorized Signer


                                     __________________________________
                                     Authorized Signer

                                    Page 35
<PAGE>

                                   EXHIBIT D
                             RULES AND REGULATIONS

1.   No sidewalks, entrance, passages, courts, elevators, vestibules, stairways,
corridors or halls shall be obstructed or encumbered by Tenant or used for any
purpose other than ingress and egress to and from the Premises. Tenant shall
further, at Tenant's own expense, keep the sidewalks and curb directly in front
of the Premises clean and free from rubbish.

2.   No awning or other projection shall be attached to the outside walls or
windows of the Building without the prior written consent of Landlord. All
lighting fixtures hung in offices or spaces along the perimeter of the Premises
must be of a quality, type, design, bulb color, size and general appearance
approved by Landlord.

3.   Intentionally omitted.

4.   The water and wash closets and other plumbing fixtures shall not be used
for any purposes other than those for which they were constructed, and no
sweepings, rubbish, rags or other substances shall be thrown therein. All
damages resulting from any misuse of the fixtures shall be borne by Tenant to
the extent that Tenant or Tenant's agents, servants, employees, contractors,
visitors or licensees shall have caused the same.

5.   Tenant shall not mark, paint, drill into or in any way deface any part of
the Premises or the Building. No boring, cutting or stringing of wires shall be
permitted, except with the prior written consent of Landlord, and as Landlord
may direct.

6.   No animal or bird of any kind shall be brought into or kept in or about the
Premises or the Building, except seeing-eye dogs and/ or other assisted care
animals.

7.   Prior to leaving the Premises for the day, Tenant shall draw or lower
window coverings and extinguish all lights.

8.   Tenant shall not make, or permit to be made, any unseemly or disturbing
noises or disturb occupants of neighboring buildings or premises, or those
having business with them. Tenant shall not throw anything out of the doors,
windows or skylights or down the passageways.

9.   Neither Tenant nor any of Tenant's agents, servants, employees,
contractors, visitors or licensees shall at any time bring or keep upon the
Premises any flammable, combustible or explosive fluid, chemical or substance.

10.  No additional locks, bolts or mail slots of any kind shall be placed upon
any of the doors or windows by Tenant, nor shall any change be made in existing
locks or the mechanism thereof. Tenant must, upon the termination of the
tenancy, restore to Landlord all keys of stores, offices and toilet rooms,
either furnished to, or otherwise procured by Tenant, and in the event of the
loss of any keys so furnished, Tenant shall pay to Landlord the cost thereof.

                                    Page 36
<PAGE>

11.  The moving of safes, freight, furniture, fixtures, bulky matter or heavy
equipment of any kind must be made upon previous notice to the Building Manager
and in a manner and at times prescribed by him, and the persons employed by
Tenant for such work are subject to Landlord's prior approval. Landlord reserves
the right to inspect all safes, freight or other bulky articles to be brought
into the Building and to exclude from the Building all safes, freight or other
bulky articles which violate any of these Rules and Regulations or the Lease of
which these Rules and Regulations are a part.

12.  Landlord shall have the right to prohibit any advertising or business
conducted by Tenant referring to the Building which, in Landlord's opinion,
tends to impair the reputation of the Building or its desirability as a first
class building for offices and/or commercial services and upon notice from
Landlord, Tenant shall refrain from or discontinue such advertising.

13.  Tenant's contractors shall, while in the Premises or elsewhere in the
Building, be subject to and under the control and direction of the Building
Manager.

14.  If the Premises is or becomes infested with vermin as a result of the use
or any misuse or neglect of the Premises by Tenant, its agents, servants,
employees, contractors, visitors or licensees, Tenant shall forthwith at
Tenant's expense cause the same to be exterminated from time to time to the
satisfaction of Landlord and shall employ such licensed exterminators as shall
be approved in writing in advance by Landlord.

15.  The requirements of Tenant will be attended to only upon application at the
office of the Building. Building personnel shall not perform any work or do
anything outside of their regular duties unless under special instructions from
the office of the Landlord.

16.  Canvassing, soliciting and peddling in the Building or at the Property are
prohibited and Tenant shall cooperate to prevent the same.

17.  No air conditioning unit or system or other apparatus shall be installed or
used by Tenant without the written consent of Landlord.

18.  There shall not be used in any premises, or in the public halls, plaza
areas, lobbies, or elsewhere in the Building, either by Tenant or by jobbers or
others, in the delivery or receipt of merchandise, any hand trucks or dollies,
except those equipped with rubber tires and sideguards.

19.  Tenant, Tenant's agents, servants, employees, contractors, licensees, or
visitors shall not park any vehicles in any driveways, service entrances, or
areas posted "No Parking" and shall comply with any other parking restrictions
imposed by Landlord from time to time. Tenant shall not store any vehicle within
the parking area. Tenant shall notify Landlord of the presence of any abandoned
cars.

20.  Tenant shall install and maintain, at Tenant's sole cost and expense, an
adequate visibly marked fire extinguisher next to any duplicating or
photocopying machine or similar heat producing equipment, which may or may not
contain combustible material, in the Premises.

                                    Page 37
<PAGE>

21.  Tenant shall not use the name of the Building for any purpose other than as
the address of the business to be conducted by Tenant in the Premises, nor shall
Tenant use any picture of the Building in its advertising or in any other manner
without the prior written permission of Landlord. Landlord expressly reserves
the right at any time to change said name without liability to Tenant.

22.  Tenant shall not install or permit the installation or use of any vending
machine or, to the extent requested by Landlord in writing with respect to any
particular company or person, permit the delivery of any food or beverage to the
Premises by such company or person.

23.  The Premises shall not be used as an employment agency, a public
stenographer or typist, a labor union office, a physician's or dentist's office,
a dance or music studio, a school, a beauty salon, or barber shop, the business
of photographic, multilith or multigraph reproductions or offset printing (not
precluding using any part of the Premises for photographic, multilith or
multigraph reproductions solely in connection with Tenant's own business and/or
activities), a restaurant or bar, an establishment for the sale of
confectionery, soda, beverages, sandwiches, ice cream or baked goods, an
establishment for preparing, dispensing or consumption of food or beverages of
any kind in any manner whatsoever, or news or cigar stand, or a radio,
television or recording studio, theatre or exhibition-hall, or manufacturing, or
the storage or sale of merchandise, goods, services or property of any kind at
wholesale, retail or auction, or for lodging, sleeping or for any immoral
purposes. Notwithstanding the foregoing, Tenant shall have the right to use and
operate the cafe provided by Landlord.

24.  Business machines and mechanical equipment shall be placed and maintained
by Tenant at Tenant's expense in settings sufficient in Landlord's reasonable
judgment to absorb and prevent vibration, noise and annoyance. Tenant shall not
install any machine or equipment which causes noise, heat, cold or vibration to
be transmitted to the structure of the building in which the Premises are
located without Landlord's prior written consent, which consent may not be
unreasonably withheld but may be conditioned on such terms as Landlord may
reasonably require. Tenant shall not place a load upon any floor of the Premises
exceeding the floor load per square foot that such floor was designed to carry
and which is allowed by Law.

25.  Smoking is prohibited in the Premises, the Building and all enclosed Common
Areas of the Building, including all lobbies, all hallways, all elevators and
all lavatories.

                                    Page 38
<PAGE>

                                    RIDER 1
                         COMMENCEMENT DATE AGREEMENT

____________________________,a ________________________ ("Landlord"), and
_________________________, a __________________________ ("Tenant"), have entered
into a certain Lease dated as of ______________________________,2000.

WHEREAS, Landlord and Tenant wish to confirm and memorialize the Commencement
Date and Expiration Date of the Lease as provided for in Article 2 of the Lease;

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
contained herein and in the Lease, Landlord and Tenant agree as follows:

     1.   Unless otherwise defined herein, all capitalized terms shall have the
same meaning ascribed to them in the Lease.

     2.   The Commencement Date (as defined in the Lease) of the Lease is _____.

     3.   The Termination Date (as defined in the Lease) of the Lease is ______.

     4.   Tenant hereby confirms the following:

          (a)  That it has accepted possession of the Premises pursuant to the
               terms of the Lease:

          (b)  That the Landlord Work is Substantially Complete; and

          (c)  That the Lease is in full force and effect.

     5.   Except as expressly modified hereby, all terms and provisions of the
Lease are hereby ratified and confirmed and shall remain in full force and
effect and binding on the parties hereto.

     6.   The Lease and this Commencement Date Agreement contain all of the
terms, covenants, conditions and agreements between the Landlord and the Tenant
relating to the subject matter herein. No prior other agreements or
understandings pertaining to such matters are valid or of any force and effect.

TENANT:                                 LANDLORD:

___________________________________,    __________________________________,

a _________________________________     a ________________________________

                                      39
<PAGE>

By:_______________________________      By:_________________________________

Print Name:_______________________      Print Name:_________________________

Its:______________________________      Its:________________________________


By:_______________________________

Print Name:_______________________

Its:______________________________

                                      40