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                                   [PSA LOGO]

                                     MASTER
                              REPURCHASE AGREEMENT

                             SEPTEMBER 1996 VERSION

                                                    Dated as of October 13, 2000

AMONG:

CREDIT SUISSE FIRST BOSTON (EUROPE) LIMITED, as Buyer

CREDIT SUISSE FIRST BOSTON CORPORATION, as Agent

and

ONYX ACCEPTANCE FUNDING CORPORATION, as Seller

1.     APPLICABILITY

       From time to time the parties hereto may enter into transactions in which
       one party ("Seller") agrees to transfer to the other("Buyer") securities
       or other assets ("Securities") against the transfer of funds by Buyer,
       with a simultaneous agreement by Buyer to transfer to Seller such
       Securities at a date certain or on demand, against the transfer of funds
       by Seller. Each such transaction shall be referred to herein as a
       "Transaction" and, unless otherwise agreed in writing, shall be governed
       by this Agreement, including any supplemental terms or conditions
       contained in Annex I hereto and in any other annexes identified herein or
       therein as applicable hereunder.

2.     DEFINITIONS

       (a)    "Act of Insolvency", with respect to any party, (i) the
              commencement by such party as debtor of any case or proceeding
              under any bankruptcy, insolvency, reorganization, liquidation,
              moratorium, dissolution, delinquency or similar law, or such
              party seeking the appointment or election of a receiver,
              conservator, trustee, custodian or similar official for such party
              or any substantial part of its property, or the convening of any
              meeting of creditors for purposes of commencing any such case or
              proceeding or seeking such an appointment or election, (ii) the
              commencement of any such case or proceeding against such party, or
              another seeking such an appointment or election, or the filing
              against a party of an application for a protective decree under
              the provisions of the Securities Investor Protection Act of 1970,
              which (A) is consented to or not timely contested by such party,
              (B) results in the entry of an order for relief, such an
              appointment or election, the issuance of such a protective decree
              or the entry of an order having a similar effect, or (C) is not
              dismissed within 15 days, (iii) the making by such party of a
              general assignment for the benefit of creditors, or (iv) the
              admission in writing by such party of such party's inability to
              pay such party's debts as they become due;

       (b)    "Additional Purchased Securities", Securities provided by Seller
              to Buyer pursuant to Paragraph 4(a) hereof;

       (c)    "Buyer's Margin Amount", with respect to any Transaction as of any
              date, the amount obtained by application of the Buyer's Margin
              Percentage to the Repurchase Price for such Transaction as of such
              date:

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       (d)    "Buyer's Margin Percentage", with respect to any Transaction as of
              any date, a percentage (which may be equal to the Seller's Margin
              Percentage) agreed to by Buyer and Seller or, in the absence of
              any such agreement, the percentage obtained by dividing the Market
              Value of the Purchased Securities on the Purchase Date by the
              Purchase Price on the Purchase Date for such Transaction;

       (e)    "Confirmation", the meaning specified in Paragraph 3(b) hereof;

       (f)    "Income", with respect to any Security at any time, any principal
              thereof and all interest, dividends or other distributions
              thereon;

       (g)    "Margin Deficit", the meaning specified in Paragraph 4(a) hereof;

       (h)    "Margin Excess", the meaning specified in Paragraph 4(b) hereof;

       (i)    "Margin Notice Deadline", the time agreed to by the parties in the
              relevant Confirmation, Annex I hereto or otherwise as the deadline
              for giving notice requiring same-day satisfaction of margin
              maintenance obligations as provided in Paragraph 4 hereof (or, in
              the absence of any such agreement, the deadline for such purposes
              established in accordance with market practice);

       (j)    "Market Value", with respect to any Securities as of any date, the
              price for such Securities on such date obtained from a generally
              recognized source agreed to by the parties or the most recent
              closing bid quotation from such a source, plus accrued Income to
              the extent not included therein (other than any Income credited or
              transferred to, or applied to the obligations of, Seller pursuant
              to Paragraph 5 hereof) as of such date (unless contrary to market
              practice for such Securities);

       (k)    "Price Differential", with respect to any Transaction as of any
              date, the aggregate amount obtained by daily application of the
              Pricing Rate for such Transaction to the Purchase Price for such
              Transaction on a 360-day-per-year basis for the actual number of
              days during the period commencing on (and including) the Purchase
              Date for such Transaction and ending on (but excluding) the date
              of determination (reduced by any amount of such Price Differential
              previously paid by Seller to Buyer with respect to such
              Transaction);

       (1)    "Pricing Rate", the per annum percentage rate for determination of
              the Price Differential;

       (m)    "Prime Rate", the prime rate of U.S. commercial banks as published
              in The Wall Street Journal (or, if more than one such rate is
              published, the average of such rates);

       (n)    "Purchase Date", the date on which Purchased Securities are to be
              transferred by Seller to Buyer;

       (o)    "Purchase Price", (i) on the Purchase Date, the price at which
              Purchased Securities are transferred by Seller to Buyer, and (ii)
              thereafter, except where Buyer and Seller agree otherwise, such
              price increased by the amount of any cash transferred by Buyer to
              Seller pursuant to Paragraph 4(b) hereof and decreased by the
              amount of any cash transferred by Seller to Buyer pursuant to
              Paragraph 4(a) hereof or applied to reduce Seller's obligations
              under clause (ii) of Paragraph 5 hereof;

       (p)    "Purchased Securities", the Securities transferred by Seller to
              Buyer in a Transaction hereunder, and any Securities substituted
              therefor in accordance with Paragraph 9 hereof. The term
              "Purchased Securities" with respect to any Transaction at any time
              also shall include Additional Purchased Securities delivered
              pursuant to Paragraph 4(a) hereof and shall exclude Securities
              returned pursuant to Paragraph 4(b) hereof;

       (q)    "Repurchase Date", the date on which Seller is to repurchase the
              Purchased Securities from Buyer, including any date determined by
              application of the provisions of Paragraph 3(c) or ll hereof;

       (r)    "Repurchase Price", the price at which Purchased Securities are to
              be transferred from Buyer to Seller upon termination of a
              Transaction, which will be determined in each case (including
              Transactions terminable upon demand) as the sum of the Purchase
              Price and the Price Differential as of the date of such
              determination;

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              "Seller's Margin Amount", with respect to any Transaction as of
              any date, the amount obtained by application of the Seller's
              Margin Percentage to the Repurchase Price for such Transaction as
              of such date;

       (t)    "Seller's Margin Percentage", with respect to any Transaction as
              of any date, a percentage (which may be equal to the Buyer's
              Margin Percentage) agreed to by Buyer and Seller or, in the
              absence of any such agreement, the percentage obtained by dividing
              the Market Value of the Purchased Securities on the Purchase Date
              by the Purchase Price on the Purchase Date for such Transaction.

3.     INITIATION; CONFIRMATION; TERMINATION

       (a)    An agreement to enter into a Transaction may be made orally or in
              writing at the initiation of either Buyer or Seller. On the
              Purchase Date for the Transaction, the Purchased Securities shall
              be transferred to Buyer or its agent against the transfer of the
              Purchase Price to an account of Seller.

       (b)    Upon agreeing to enter into a Transaction hereunder, Buyer or
              Seller (or both), as shall be agreed, shall promptly deliver to
              the other party a written confirmation of each Transaction (a
              "Confirmation"). The Confirmation shall describe the Purchased
              Securities (including CUSIP number, if any), identify Buyer and
              Seller and set forth (i) the Purchase Date, (ii) the Purchase
              Price, (iii) the Repurchase Date, unless the Transaction is to be
              terminable on demand, (iv) the Pricing Rate or Repurchase Price
              applicable to the Transaction, and (v) any additional terms or
              conditions of the Transaction not inconsistent with this
              Agreement. The Confirmation, together with this Agreement, shall
              constitute conclusive evidence of the terms agreed between Buyer
              and Seller with respect to the Transaction to which the
              Confirmation relates, unless with respect to the Confirmation
              specific objection is made promptly after receipt thereof. In the
              event of any conflict between the terms of such Confirmation and
              this Agreement, this Agreement shall prevail.

       (c)    In the case of Transactions terminable upon demand, such demand
              shall be made by Buyer or Seller, no later than such time as is
              customary in accordance with market practice, by telephone or
              otherwise on or prior to the business day on which such
              termination will be effective. On the date specified in such
              demand, or on the date fixed for termination in the case of
              Transactions having a fixed term, termination of the Transaction
              will be effected by transfer to Seller or its agent of the
              Purchased Securities and any Income in respect thereof received by
              Buyer (and not previously credited or transferred to, or applied
              to the obligations of, Seller pursuant to Paragraph 5 hereof)
              against the transfer of the Repurchase Price to an account of
              Buyer.

4.     MARGIN MAINTENANCE

       (a)    If at any time the aggregate Market Value of all Purchased
              Securities subject to all Transactions in which a particular party
              hereto is acting as Buyer is less than the aggregate Buyer's
              Margin Amount for all such Transactions (a "Margin Deficit"), then
              Buyer may by notice to Seller require Seller in such Transactions,
              at Seller's option, to transfer to Buyer cash or additional
              Securities reasonably acceptable to Buyer ("Additional Purchased
              Securities"), so that the cash and aggregate Market Value of the
              Purchased Securities, including any such Additional Purchased
              Securities, will thereupon equal or exceed such aggregate Buyer's
              Margin Amount (decreased by the amount of any Margin Deficit as of
              such date arising from any Transactions in which such Buyer is
              acting as Seller).

       (b)    If at any time the aggregate Market Value of all Purchased
              Securities subject to all Transactions in which a particular party
              hereto is acting as Seller exceeds the aggregate Seller's Margin
              Amount for all such Transactions at such time (a "Margin Excess"),
              then Seller may by notice to Buyer require Buyer in such
              Transactions, at Buyer's option, to transfer cash or Purchased
              Securities to Seller, so that the aggregate Market Value of the
              Purchased Securities, after deduction of any such

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              cash or any Purchased Securities so transferred, will thereupon
              not exceed such aggregate Seller's Margin Amount (increased by the
              amount of any Margin Excess as of such date arising from any
              Transactions in which such Seller is acting as Buyer).

       (c)    If any notice is given by Buyer or Seller under subparagraph (a)
              or (b) of this Paragraph at or before the Margin Notice Deadline
              on any business day, the party receiving such notice shall
              transfer cash or Additional Purchased Securities as provided in
              such subparagraph no later than the close of business in the
              relevant market on such day. If any such notice is given after the
              Margin Notice Deadline, the party receiving such notice shall
              transfer such cash or Securities no later than the close of
              business in the relevant market on the next business day following
              such notice.

       (d)    Any cash transferred pursuant to this Paragraph shall be
              attributed to such Transactions as shall be agreed upon by Buyer
              and Seller.

       (e)    Seller and Buyer may agree, with respect to any or all
              Transactions hereunder, that the respective rights of Buyer or
              Seller (or both) under subparagraphs (a) and (b) of this Paragraph
              may be exercised only where a Margin Deficit or a Margin Excess,
              as the case may be, exceeds a specified dollar amount or a
              specified percentage of the Repurchase Prices for such
              Transactions (which amount or percentage shall be agreed to by
              Buyer and Seller prior to entering into any such Transactions).

       (f)    Seller and Buyer may agree, with respect to any or all
              Transactions hereunder, that the respective rights of Buyer and
              Seller under subparagraphs (a) and (b) of this Paragraph to
              require the elimination of a Margin Deficit or a Margin Excess, as
              the case may be, may be exercised whenever such a Margin Deficit
              or a Margin Excess exists with respect to any single Transaction
              hereunder (calculated without regard to any other Transaction
              outstanding under this Agreement).

5.     INCOME PAYMENTS

       Seller shall be entitled to receive an amount equal to all Income paid or
       distributed on or in respect of the Securities that is not otherwise
       received by Seller, to the full extent it would be so entitled if the
       Securities had not been sold to Buyer. Buyer shall, as the parties may
       agree with respect to any Transaction (or, in the absence of any such
       agreement, as Buyer shall reasonably determine in its discretion), on the
       date such Income is paid or distributed either (i) transfer to or credit
       to the account of Seller such Income with respect to any Purchased
       Securities subject to such Transaction or (ii) with respect to Income
       paid in cash, apply the Income payment or payments to reduce the amount,
       if any, to be transferred to Buyer by Seller upon termination of such
       Transaction. Buyer shall not be obligated to take any action pursuant to
       the preceding sentence (A) to the extent that such action would result in
       the creation of a Margin Deficit, unless prior thereto or simultaneously
       therewith Seller transfers to Buyer cash or Additional Purchased
       Securities sufficient to eliminate such Margin Deficit, or (B) if an
       Event of Default with respect to Seller has occurred and is then
       continuing at the time such Income is paid or distributed.

6.     SECURITY INTEREST

       Although the parties intend that all Transactions hereunder be sales and
       purchases and not loans, in the event any such Transactions are deemed to
       be loans, Seller shall be deemed to have pledged to Buyer as security for
       the performance by Seller of its obligations under each such Transaction,
       and shall be deemed to have granted to Buyer a security interest in, all
       of the Purchased Securities with respect to all Transactions hereunder
       and all Income thereon and other proceeds thereof.

7.     PAYMENT AND TRANSFER

       Unless otherwise mutually agreed, all transfers of funds hereunder shall
       be in immediately available funds. All Securities transferred by one
       party hereto to the other party (i) shall be in suitable form for
       transfer or shall be accompanied by duly executed instruments of transfer
       or assignment in blank and

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       such other documentation as the party receiving possession may reasonably
       request, (ii) shall be transferred on the book-entry system of a Federal
       Reserve Bank, or (iii) shall be transferred by any other method mutually
       acceptable to Seller and Buyer.

8.     SEGREGATION OF PURCHASED SECURITIES

       To the extent required by applicable law, all Purchased Securities in the
       possession of Seller shall be segregated from other securities in its
       possession and shall be identified as subject to this Agreement.
       Segregation may be accomplished by appropriate identification on the
       books and records of the holder, including a financial or securities
       intermediary or a clearing corporation. All of Seller's interest in the
       Purchased Securities shall pass to Buyer on the Purchase Date and, unless
       otherwise agreed by Buyer and Seller, nothing in this Agreement shall
       preclude Buyer from engaging in repurchase transactions with the
       Purchased Securities or otherwise selling, transferring, pledging or
       hypothecating the Purchased Securities, but no such transaction shall
       relieve Buyer of its obligations to transfer Purchased Securities to
       Seller pursuant to Paragraph 3,4 or 11 hereof, or of Buyer's obligation
       to credit or pay Income to, or apply Income to the obligations of, Seller
       pursuant to Paragraph 5 hereof.

       REQUIRED DISCLOSURE FOR TRANSACTIONS IN WHICH THE SELLER RETAINS CUSTODY
       OF THE PURCHASED SECURITIES

              Seller is not permitted to substitute other securities for those
              subject to this Agreement and therefore must keep Buyer's
              securities segregated at all times, unless in this Agreement Buyer
              grants Seller the right to substitute other securities. If Buyer
              grants the right to substitute, this means that Buyer's securities
              will likely be commingled with Seller's own securities during the
              trading day. Buyer is advised that, during any trading day that
              Buyer's securities are commingled with Seller's securities, they
              [will]* [may]** be subject to liens granted by Seller to [its
              clearing bank]* [third parties]** and may be used by Seller for
              deliveries on other securities transactions. Whenever the
              securities are commingled, Seller's ability to resegregate
              substitute securities for Buyer will be subject to Seller's
              ability to satisfy [the clearing]* [any]** lien or to obtain
              substitute securities.

* Language to be used under 17 C.F.R. Section 403.4(e) if Seller is a
government securities broker or dealer other than a financial institution.

**Language to be used under 17 C.F.R. Section 403.5(d) if Seller is a financial
institution.

9.     SUBSTITUTION

       (a)    Seller may, subject to agreement with and acceptance by Buyer,
              substitute other Securities for any Purchased Securities. Such
              substitution shall be made by transfer to Buyer of such other
              Securities and transfer to Seller of such Purchased Securities.
              After substitution, the substituted Securities shall be deemed to
              be Purchased Securities.

       (b)    In Transactions in which Seller retains custody of Purchased
              Securities, the parties expressly agree that Buyer shall be
              deemed, for purposes of subparagraph (a) of this Paragraph, to
              have agreed to and accepted in this Agreement substitution by
              Seller of other Securities for Purchased Securities; provided,
              however, that such other Securities shall have a Market Value at
              least equal to the Market Value of the Purchased Securities for
              which they are substituted.

10.    REPRESENTATIONS

       Each of Buyer and Seller represents and warrants to the other that (i) it
       is duly authorized to execute and deliver this Agreement, to enter into
       Transactions contemplated hereunder and to perform its obligations
       hereunder and has taken all necessary action to authorize such execution,
       delivery and per-

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       formance, (ii) it will engage in such Transactions as principal (or, if
       agreed in writing, in the form of an annex hereto or otherwise, in
       advance of any Transaction by the other party hereto, as agent for a
       disclosed principal), (iii) the person signing this Agreement on its
       behalf is duly authorized to do so on its behalf (or on behalf of any
       such disclosed principal), (iv) it has obtained all authorizations of any
       governmental body required in connection with this Agreement and the
       Transactions hereunder and such authorizations are in full force and
       effect and (v) the execution, delivery and performance of this Agreement
       and the Transactions hereunder will not violate any law, ordinance,
       charter, by-law or rule applicable to it or any agreement by which it is
       bound or by which any of its assets are affected. On the Purchase Date
       for any Transaction Buyer and Seller shall each be deemed to repeat all
       the foregoing representations made by it.

11.    Events of Default

       In the event that (i) Seller fails to transfer or Buyer fails to purchase
       Purchased Securities upon the applicable Purchase Date, (ii) Seller fails
       to repurchase or Buyer fails to transfer Purchased Securities upon the
       applicable Repurchase Date, (iii) Seller or Buyer fails to comply with
       Paragraph 4 hereof, (iv) Buyer fails, after one business day's notice, to
       comply with Paragraph 5 hereof, (v) an Act of Insolvency occurs with
       respect to Seller or Buyer, (vi) any representation made by Seller or
       Buyer shall have been incorrect or untrue in any material respect when
       made or repeated or deemed to have been made or repeated, or (vii) Seller
       or Buyer shall admit to the other its inability to, or its intention not
       to, perform any of its obligations hereunder (each an "Event of
       Default"):

       (a)    The nondefaulting party may, at its option (which option shall be
              deemed to have been exercised immediately upon the occurrence of
              an Act of Insolvency), declare an Event of Default to have
              occurred hereunder and, upon the exercise or deemed exercise of
              such option, the Repurchase Date for each Transaction hereunder
              shall, if it has not already occurred, be deemed immediately to
              occur (except that, in the event that the Purchase Date for any
              Transaction has not yet occurred as of the date of such exercise
              or deemed exercise, such Transaction shall be deemed immediately
              canceled). The nondefaulting party shall (except upon the
              occurrence of an Act of Insolvency) give notice to the defaulting
              party of the exercise of such option as promptly as practicable.

       (b)    In all Transactions in which the defaulting party is acting as
              Seller, if the nondefaulting party exercises or is deemed to have
              exercised the option referred to in subparagraph (a) of this
              Paragraph, (i) the defaulting party's obligations in such
              Transactions to repurchase all Purchased Securities, at the
              Repurchase Price therefor on the Repurchase Date determined in
              accordance with subparagraph (a) of this Paragraph, shall
              thereupon become immediately due and payable, (ii) all Income paid
              after such exercise or deemed exercise shall be retained by the
              nondefaulting party and applied to the aggregate unpaid Repurchase
              Prices and any other amounts owing by the defaulting party
              hereunder, and (iii) the defaulting party shall immediately
              deliver to the nondefaulting party any Purchased Securities
              subject to such Transactions then in the defaulting party's
              possession or control.

       (c)    In all Transactions in which the defaulting party is acting as
              Buyer, upon tender by the nondefaulting party of payment of the
              aggregate Repurchase Prices for all such Transactions, all right,
              title and interest in and entitlement to all Purchased Securities
              subject to such Transactions shall be deemed transferred to the
              nondefaulting party, and the defaulting party shall deliver all
              such Purchased Securities to the nondefaulting party.

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       (d)    If the nondefaulting party exercises or is deemed to have
              exercised the option referred to in subparagraph (a) of this
              Paragraph, the nondefaulting party, without prior notice to the
              defaulting party, may:

              (i)    as to Transactions in which the defaulting party is acting
                     as Seller, (A) immediately sell, in a recognized market (or
                     otherwise in a commercially reasonable manner) at such
                     price or prices as the nondefaulting party may reasonably
                     deem satisfactory, any or all Purchased Securities subject
                     to such Transactions and apply the proceeds thereof to the
                     aggregate unpaid Repurchase Prices and any other amounts
                     owing by the defaulting party hereunder or (B) in its sole
                     discretion elect, in lieu of selling all or a portion of
                     such Purchased Securities, to give the defaulting party
                     credit for such Purchased Securities in an amount equal to
                     the price therefor on such date, obtained from a generally
                     recognized source or the most recent dosing bid quotation
                     from such a source, against the aggregate unpaid Repurchase
                     Prices and any other amounts owing by the defaulting party
                     hereunder; and

              (ii)   as to Transactions in which the defaulting party is acting
                     as Buyer, (A) immediately purchase, in a recognized market
                     (or otherwise in a commercially reasonable manner) at such
                     price or prices as the nondefaulting party may reasonably
                     deem satisfactory, securities ("Replacement Securities") of
                     the same class and amount as any Purchased Securities that
                     are not delivered by the defaulting party to the
                     nondefaulting party as required hereunder or (B) in its
                     sole discretion elect, in lieu of purchasing Replacement
                     Securities, to be deemed to have purchased Replacement
                     Securities at the price therefor on such date, obtained
                     from a generally recognized source or the most recent
                     closing offer quotation from such a source.

              Unless otherwise provided in Annex I, the parties acknowledge and
              agree that (1) the Securities subject to any Transaction hereunder
              are instruments traded in a recognized market, (2) in the absence
              of a generally recognized source for prices or bid or offer
              quotations for any Security, the nondefaulting party may establish
              the source therefor in its sole discretion and (3) all prices,
              bids and offers shall be determined together with accrued Income
              (except to the extent contrary to market practice with respect to
              the relevant Securities).

       (e)    As to Transactions in which the defaulting party is acting as
              Buyer, the defaulting party shall be liable to the nondefaulting
              party for any excess of the price paid (or deemed paid) by the
              nondefaulting party for Replacement Securities over the Repurchase
              Price for the Purchased Securities replaced thereby and for any
              amounts payable by the defaulting party under Paragraph 5 hereof
              or otherwise hereunder.

       (f)    For purposes of this Paragraph 11, the Repurchase Price for each
              Transaction hereunder in respect of which the defaulting party is
              acting as Buyer shall not increase above the amount of such
              Repurchase Price for such Transaction determined as of the date of
              the exercise or deemed exercise by the nondefaulting party of the
              option referred to in subparagraph (a) of this Paragraph.

       (g)    The defaulting party shall be liable to the nondefaulting party
              for (i) the amount of all reasonable legal or other expenses
              incurred by the nondefaulting party in connection with or as a
              result of an Event of Default, (ii) damages in an amount equal to
              the cost (including all fees, expenses and commissions) of
              entering into replacement transactions and entering into or
              terminating hedge transactions in connection with or as a result
              of an Event of Default, and (iii) any other loss, damage, cost or
              expense directly arising or resulting from the occurrence of an
              Event of Default in respect of a Transaction.

       (h)    To the extent permitted by applicable law, the defaulting party
              shall be liable to the nondefaulting party for interest on any
              amounts owing by the defaulting party hereunder, from the date the
              defaulting party becomes liable for such amounts hereunder until
              such amounts are (i) paid in full

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              by the defaulting party or (ii) satisfied in full by the exercise
              of the nondefaulting party's rights hereunder. Interest on any sum
              payable by the defaulting party to the nondefaulting party under
              this Paragraph 11(h) shall be at a rate equal to the greater of
              the Pricing Rate for the relevant Transaction or the Prime Rate.

       (i)    The nondefaulting party shall have, in addition to its rights
              hereunder, any rights otherwise available to it under any other
              agreement or applicable law.

12.    SINGLE AGREEMENT

       Buyer and Seller acknowledge that, and have entered hereinto and will
       enter into each Transaction hereunder in consideration of and in reliance
       upon the fact that, all Transactions hereunder constitute a single
       business and contractual relationship and have been made in consideration
       of each other. Accordingly, each of Buyer and Seller agrees (i) to
       perform all of its obligations in respect of each Transaction hereunder,
       and that a default in the performance of any such obligations shall
       constitute a default by it in respect of all Transactions hereunder, (ii)
       that each of them shall be entitled to set off claims and apply property
       held by them in respect of any Transaction against obligations owing to
       them in respect of any other Transactions hereunder and (iii) that
       payments, deliveries and other transfers made by either of them in
       respect of any Transaction shall be deemed to have been made in
       consideration of payments, deliveries and other transfers in respect of
       any other Transactions hereunder, and the obligations to make any such
       payments, deliveries and other transfers may be applied against each
       other and netted.

13.    NOTICES AND OTHER COMMUNICATIONS

       Any and all notices, statements, demands or other communications
       hereunder may be given by a party to the other by mail, facsimile,
       telegraph, messenger or otherwise to the address specified in Annex II
       hereto, or so sent to such party at any other place specified in a notice
       of change of address hereafter received by the other. All notices,
       demands and requests hereunder may be made orally, to be confirmed
       promptly in writing, or by other communication as specified in the
       preceding sentence.

14.    ENTIRE AGREEMENT; SEVERABILITY

       This Agreement shall supersede any existing agreements between the
       parties containing general terms and conditions for repurchase
       transactions. Each provision and agreement herein shall be treated as
       separate and independent from any other provision or agreement herein and
       shall be enforceable notwithstanding the unenforceability of any such
       other provision or agreement.

15.    NON-ASSIGNABILITY; TERMINATION

       (a)    The rights and obligations of the parties under this Agreement and
              under any Transaction shall not be assigned by either party
              without the prior written consent of the other party, and any such
              assignment without the prior written consent of the other party
              shall be null and void. Subject to the foregoing, this Agreement
              and any Transactions shall be binding upon and shall inure to the
              benefit of the parties and their respective successors and
              assigns. This Agreement may be terminated by either party upon
              giving written notice to the other, except that this Agreement
              shall, notwithstanding such notice, remain applicable to any
              Transactions then outstanding.

       (b)    Subparagraph (a) of this Paragraph 15 shall not preclude a party
              from assigning, charging or otherwise dealing with all or any part
              of its interest in any sum payable to it under Paragraph 11
              hereof.

16.    GOVERNING LAW

       This Agreement shall be governed by the laws of the State of New York
       without giving effect to the conflict of law principles thereof.

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17.    NO WAIVERS, ETC.

       No express or implied waiver of any Event of Default by either party
       shall constitute a waiver of any other Event of Default and no exercise
       of any remedy hereunder by any party shall constitute a waiver of its
       right to exercise any other remedy hereunder. No modification or waiver
       of any provision of this Agreement and no consent by any party to a
       departure herefrom shall be effective unless and until such shall be in
       writing and duly executed by both of the parties hereto. Without
       limitation on any of the foregoing, the failure to give a notice
       pursuant to Paragraph 4(a) or 4(b) hereof will not constitute a waiver
       of any right to do so at a later date.

18.    USE OF EMPLOYEE PLAN ASSETS

       (a)    If assets of an employee benefit plan subject to any provision of
              the Employee Retirement Income Security Act of 1974 ("ERISA") are
              intended to be used by either party hereto (the "Plan Party") in a
              Transaction, the Plan Party shall so notify the other party prior
              to the Transaction. The Plan Party shall represent in writing to
              the other party that the Transaction does not constitute a
              prohibited transaction under ERISA or is otherwise exempt
              therefrom, and the other party may proceed in reliance thereon but
              shall not be required so to proceed.

       (b)    Subject to the last sentence of subparagraph (a) of this
              Paragraph, any such Transaction shall proceed only if Seller
              furnishes or has furnished to Buyer its most recent available
              audited statement of its financial condition and its most recent
              subsequent unaudited statement of its financial condition.

       (c)    By entering into a Transaction pursuant to this Paragraph, Seller
              shall be deemed (i) to represent to Buyer that since the date of
              Seller's latest such financial statements, there has been no
              material adverse change in Seller's financial condition which
              Seller has not disclosed to Buyer, and (ii) to agree to provide
              Buyer with future audited and unaudited statements of its
              financial condition as they are issued, so long as it is a Seller
              in any outstanding Transaction involving a Plan Party.

19.    INTENT

       (a)    The parties recognize that each Transaction is a "repurchase
              agreement" as that term is defined in Section 101 of Title 11 of
              the United States Code, as amended (except insofar as the type of
              Securities subject to such Transaction or the term of such
              Transaction would render such definition inapplicable), and a
              "securities contract" as that term is defined in Section 741 of
              Title 11 of the United States Code, as amended (except insofar as
              the type of assets subject to such Transaction would render such
              definition inapplicable).

       (b)    It is understood that either party's right to liquidate Securities
              delivered to it in connection with Transactions hereunder or to
              exercise any other remedies pursuant to Paragraph 11 hereof is a
              contractual right to liquidate such Transaction as described in
              Sections 555 and 559 of Title 11 of the United States Code, as
              amended.

       (c)    The parties agree and acknowledge that if a party hereto is an
              "insured depository institution," as such term is defined in the
              Federal Deposit Insurance Act, as amended ("FDIA"), then each
              Transaction hereunder is a "qualified financial contract," as that
              term is defined in FDIA and any rules, orders or policy statements
              thereunder (except insofar as the type of assets subject to such
              Transaction would render such definition inapplicable).

       (d)    It is understood that this Agreement constitutes a "netting
              contract" as defined in and subject to Title IV of the Federal
              Deposit Insurance Corporation Improvement Act of 1991 ("FDICIA")
              and each payment entitlement and payment obligation under any
              Transaction hereunder shall constitute a "covered contractual
              payment entitlement" or "covered contractual payment obligation",

                                       9
<PAGE>   10

              respectively, as defined in and subject to FDICIA (except insofar
              as one or both of the parties is not a "financial institution" as
              that term is defined in FDICIA).

20.    DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS

       The parties acknowledge that they have been advised that.

       (a)    in the case of Transactions in which one of the parties is a
              broker or dealer registered with the Securities and Exchange
              Commission ("SEC") under Section 15 of the Securities Exchange Act
              of 1934 ("1934 Act"), the Securities Investor Protection
              Corporation has taken the position that the provisions of the
              Securities Investor Protection Act of 1970 ("SIPA") do not protect
              the other party with respect to any Transaction hereunder;

       (b)    in the case of Transactions in which one of the parties is a
              government securities broker or a government securities dealer
              registered with the SEC under Section 15C of the 1934 Act, SIPA
              will not provide protection to the other party with respect to any
              Transaction hereunder; and

       (c)    in the case of Transactions in which one of the parties is a
              financial institution, funds held by the financial institution
              pursuant to a Transaction hereunder are not a deposit and
              therefore are not insured by the Federal Deposit Insurance
              Corporation or the National Credit Union Share Insurance Fund, as
              applicable.

CREDIT SUISSE FIRST BOSTON                  ONYX ACCEPTANCE FUNDING
  (EUROPE) LIMITED, as Buyer                  CORPORATION, as Seller

By: /s/ C.J. HUGH-JONES                      By:
   --------------------------------             --------------------------------
Name: C.J. Hugh-Jones                        Name:
     ------------------------------               ------------------------------
Title: Attorney-in-Fact                      Title:
      -----------------------------                -----------------------------

By: /s/ ANDREW WALTON
   --------------------------------
Name: Andrew Walton
     ------------------------------
Title: Attorney-in-Fact
      -----------------------------

CREDIT SUISSE FIRST BOSTON
  CORPORATION, as Agent

By:
   --------------------------------
Name:
     ------------------------------
Title:
      -----------------------------

                                       10
<PAGE>   11
                                     ANNEX I

                        SUPPLEMENTAL TERMS AND CONDITIONS

         This Annex I forms a part of the Master Repurchase Agreement dated as
of October 13, 2000 (the "Master Repurchase Agreement" and, together with this
Annex I and Annex II, the "Agreement") between Credit Suisse First Boston
(Europe) Limited, as Buyer (the "Buyer"), Credit Suisse First Boston Corporation
("CSFB" or "Agent"), as Agent, and Onyx Acceptance Funding Corporation, as
Seller (the "Seller"). Capitalized terms used but not defined in this Annex I
shall have the meanings ascribed to them in the Master Repurchase Agreement. The
supplemental terms set forth in this Annex I (the "Supplemental Terms") modify
the terms and conditions under which the parties, from time to time, enter into
Transactions. To the extent that the terms of this Annex I conflict with the
terms of the Master Repurchase Agreement, the terms of this Annex I shall
control.

1. OPTIONAL ANNEXES

         In addition to this Annex I and Annex II, the following Annexes and any
Schedules thereto shall form part of the Agreement and shall be applicable
thereunder: None.

2. ADDITIONAL OR REPLACED DEFINITIONS

         a. Paragraph 2 of the Master Repurchase Agreement shall be modified to
include the following additional or replaced definitions:

                  i. "Adjusted EBITDA Coverage" means, with respect to any
         fiscal quarter of Onyx, the average, as of the last day of such fiscal
         quarter and each of the three immediately preceding fiscal quarters of
         Onyx, of the sum of: (1) the consolidated pre-tax income, (2) interest
         expense, (3) amortization of excess servicing asset and (4) other
         amortization and depreciation, less any gain on sale recognized
         according to FASB 125 (or a successor thereto), divided by consolidated
         interest expense of Onyx or its subsidiaries, each of the above-listed
         items as they appear in the consolidated financial statements of Onyx
         prepared in accordance with GAAP.

                  ii. "Adjusted Tangible Net Worth" means the sum of (1)
         Consolidated Tangible Net Worth and (2) Subordinated Debt; provided,
         however, that Subordinated Debt shall not exceed 20% of Consolidated
         Tangible Net Worth.

                  iii. "Base Currency" means the lawful money of the United
         States of America, as designated by the phrase "U.S. Dollar" and the
         sign "$".

                  iv. "Business Day" shall mean any day excluding Saturday,
         Sunday or any other day on which banks in New York City, London or
         California are authorized or required by law to close.

<PAGE>   12

                  v. "Buyer's Margin Percentage" means, with respect to any
         Transaction as of any date, a percentage (which may be equal to the
         Seller's Margin Percentage) determined by the Buyer in its sole
         discretion.

                  vi. "Change of Control" means that at any time (i) Onyx shall
         own less than 100% of all classes of capital stock of Seller, (ii) any
         event or condition occurs that results in any Person or "group" (within
         the meaning of Section 13(d) or 14(d) of the Exchange Act) other than a
         Person or group that owns the majority of the capital stock of Onyx on
         the date of this Agreement: (A) having acquired beneficial ownership of
         50% or more of any outstanding class of capital stock of Onyx having
         ordinary voting power in the election of directors of Onyx or (B)
         obtaining the power (whether or not exercised) to elect a majority of
         Onyx's directors, or (iii) Onyx or Seller merge or consolidate with any
         other Person.

                  vii. "Consolidated Tangible Net Worth" means, at any date, (i)
         the amount which, in conformity with GAAP, would be set forth opposite
         the caption "shareholder's equity" (or any like caption) on a
         consolidated balance sheet of Onyx and its subsidiaries at such date,
         minus (ii) the aggregate amount of any Intangible Assets at such date.

                  viii. "Default" means an event that would constitute an Event
         of Default with the giving of notice and/or lapse of time.

                  ix. "Excess Collections" means, with respect to any
         Securitized Pool, an amount equal to the excess of (i) the aggregate
         amount of collections on the automobile contracts and loans included in
         such Securitized Pool over (ii) the amount required for (A) payments or
         distributions to holders of securities (other than residual securities)
         collateralized or supported by such Securitized Pool and (B) payments
         of any expenses related to such Securitized Pool, which expenses are,
         pursuant to any agreement, required to be paid by way of application of
         such collections.

                  x. "Exchange Act" means the Securities Exchange Act of 1934,
         as amended.

                  xi. "GAAP" means generally accepted accounting principles as
         in effect from time to time in the United States of America,
         consistently applied.

                  xii. "Governmental Authority" means any nation, government, or
         state, or any political subdivision of any of them, or any court,
         entity or agency exercising executive, legislative, judicial,
         regulatory or administrative functions of or pertaining to government.

                  xiii. "Intangible Assets" means all licenses, franchises,
         patents, patent applications, trademarks, trade names, copyrights, good
         will, research and development expense, organizational expense,
         deferred expenses and other like intangible assets shown on the
         consolidated balance sheet of Onyx and its subsidiaries.

                  xiv. "Market Value" means, with respect to any Purchased
         Security and as of any date, an amount equal to the present value, as
         of such date, of the distributions due to the holder of such Purchased
         Security, as determined by Buyer in its sole discretion based upon
         information regarding the performance of Securitized Pools and other
         data regarding the automobile-loan-securitization industry.

                                       2

<PAGE>   13

                  xv. "Material Adverse Change" means (a) with respect to Seller
         or Onyx, as applicable, a material adverse change in the business,
         operations, properties, prospects or condition (financial or otherwise)
         of Seller or Onyx, as applicable, or (b) with respect to Seller, a
         material adverse change in the ability of Seller to perform its
         obligations under this Agreement.

                  xvi. "One-Month LIBOR" means, as of any date, the average of
         interbank offered rates for one-month U.S. dollar deposits in the
         London market based on quotations of major banks that are most recently
         available as of such date, as calculated by Buyer.

                  xvii. "Onyx" means Onyx Acceptance Corporation.

                  xviii. "Other Facility" means any credit or insurance
         facility, other than the facility established pursuant to this
         Agreement, of Seller or Onyx.

                  xix. "Person" means an individual, partnership, corporation
         (including a business trust), limited liability company, joint stock
         company, trust, unincorporated association, joint venture, government
         (or any agency or political subdivision thereof) or other entity.

                  xx. "Price Differential Repayment Date" means, with respect to
         a Purchased Security, the last Business Day of the month following the
         Purchase Date and the last Business Day of each succeeding month
         thereafter; provided that with respect to such Purchased Security the
         last Price Differential Payment Date shall be the related Repurchase
         Date; and, provided further, that if any such date is not a Business
         Day, the Price Differential Payment Date shall be the next succeeding
         Business Day.

                  xxi. "Pricing Rate" shall have the meaning, with respect to
         any Transaction, set forth in the confirmation related to such
         Transaction.

                  xxii. The definition of "Purchase Price" in Paragraph 2(o) is
         amended by adding the following sentence at the end of such definition:
         "The price at which any Purchased Security shall be transferred by the
         Seller to the Buyer on the related Purchase Date shall be determined by
         CSFB in its sole discretion."

                  xxiii. "Residual Collections" means, with respect to any
         Securitized Pool, the Excess Collections generated by such Securitized
         Pool (including, without limitation, any releases from any reserve
         account established in connection with such Securitized Pool).

                  xxiv. "SEC" means the U.S. Securities and Exchange Commission.

                  xxv. "Securitization Assets" means the sum of (1) trust
         receivables and (2) excess servicing (retained interest in securitized
         assets net of amortization), each of the above-listed items as they
         appear in the consolidated financial statements of Onyx and its
         subsidiaries prepared in accordance with GAAP.

                                       3

<PAGE>   14

                  xxvi. "Securitized Pool" means a securitized pool of
         automobile contracts and loans that were originated or purchased by
         Onyx.

                  xxvii. "Seller's Bid Submission Deadline" means, with respect
         to the date and time of day on which Buyer presents bids to Seller
         pursuant to Section 10(b)ii of these Supplemental Terms, such time of
         day on the immediately succeeding Business Day;

                  xxviii. "Servicer Default" means, with respect to any
         Securitized Pool, a default by the servicer of such Securitized Pool in
         the performance of its servicing obligations, as set forth in the
         servicing agreement related to such Securitized Pool.

                  xxix. "Servicer Securitization Statement" means, with respect
         to any Securitized Pool, a servicing report or servicing certificate
         with respect to such Securitized Pool prepared by the servicer of such
         Securitized Pool.

                  xxx. "Spot Rate" means, with respect to any date and any
         currency other than the Base Currency, the rate of conversion of such
         currency to the Base Currency on such date, as determined by Agent.

                  xxxi. "Total Assets" means, at any date, all items or amounts
         which, in conformity with GAAP, would be set forth as "assets" on a
         consolidated balance sheet of Onyx and its subsidiaries at such date.

                  xxxii. "Total Liabilities" means, at any date, all claims on
         assets which, in conformity with GAAP, would be set forth as
         "liabilities" on a consolidated balance sheet of Onyx and its
         subsidiaries at such date.

         b. Accounting Terms and Determinations. Unless otherwise defined or
specified in this Agreement, all accounting terms shall be construed herein, all
accounting determinations hereunder shall be made, all financial statements
required to be delivered hereunder shall be prepared and all financial records
shall be maintained in accordance with GAAP applied on a basis consistent with
the financial statements referred to herein.

3. MODIFICATION OF PARAGRAPH 3(b) OF THE MASTER REPURCHASE AGREEMENT

         Paragraph 3(b) of the Master Repurchase Agreement shall be modified as
follows:

         a. The following sentence shall be added immediately prior to the last
sentence of Paragraph 3(b) of the Master Repurchase Agreement:

         Each Transaction made under the Agreement shall be confirmed by CSFB,
         as agent for each of Buyer and Seller, on or before the relevant
         Purchase Date by confirmation in accordance with this Paragraph 3(b).

                                       4

<PAGE>   15

         b. The last sentence of Paragraph 3(b) of the Master Repurchase
Agreement shall be amended to read as follows:

         In the event of any conflict between the terms of such Confirmation and
         this Agreement, such Confirmation shall prevail.

4. MODIFICATION OF PARAGRAPH 5 OF THE MASTER REPURCHASE AGREEMENT

         Paragraph 5 of the Master Repurchase Agreement shall be amended as
follows:

            The first sentence of Paragraph 5 is amended by adding in
         subparagraph "(a)" before the word "Seller" at the beginning of the
         first sentence. Paragraph 5 is further amended by adding the following
         subparagraphs after subparagraph "5(a)":

               (b) Each party agrees to be liable to the relevant taxing
                   authority for the full amount of any Taxes required by
                   governing law to be deducted or withheld from payments or
                   distributions of income that the party receives from the
                   issuer of the Securities ("Income Payments"). All payments
                   made by one party to the other party in respect of any
                   Transaction pursuant to this Agreement, including any Income
                   Payments payable by Buyer to Seller, shall be made free and
                   clear of, and without any, withholding or deduction for or on
                   account of any Taxes, unless such withholding or deduction is
                   required by any applicable law, as modified by the practice
                   of any relevant governmental revenue authority. If such
                   withholding or deduction is so required, then the payor shall
                   (i) promptly notify the payee of such requirement, (ii) pay
                   to the relevant authorities the full amount required to be
                   deducted or withheld promptly upon learning that such
                   deduction or withholding is required, (iii) promptly forward
                   to the payee an official receipt (or certified copy), or
                   other such documentation, evidencing such payment to such
                   authorities, and (iv) pay to the payee such additional
                   amounts as are necessary to yield and remit to the payee an
                   amount which, after deduction of all Taxes (including any
                   Taxes imposed on the additional amounts) so withheld or
                   deducted, equals the full amount that the payee would have
                   received had no such withholding or deduction been required;
                   provided, however, that in no event will Seller be entitled
                   to receive any amount in respect of any Income Payment
                   greater than Seller would have received had it not entered
                   into the relevant Transaction. If (i) the payor fails to
                   remit in a timely manner the appropriate amount to the
                   relevant governmental revenue authority in respect of any
                   amount that the payor is required to withhold or deduct from
                   any payment to the payee and (ii) a liability for such amount
                   is assessed directly against the payee, then the payor shall,
                   in addition to its liability to pay additional amounts to the
                   payee pursuant to the preceding sentence, be liable to the
                   payee for any interest or penalties that are thereby imposed
                   upon the payee by reason of such failure by the payor. In the
                   event of Buyer failing to remit, either directly or through
                   its agent, the full amount owing to Seller pursuant to this
                   Agreement, Buyer hereby undertakes to pay interest to Seller
                   (upon demand) on the amount due and outstanding at the rate
                   of the LIBOR Rate as it fluctuates from day to day plus 1%.
                   Such sum shall accrue daily commencing on and inclusive of
                   the third Business Day after the relevant payment date,
                   unless otherwise agreed between the parties.

                                       5

<PAGE>   16

               (c) Each party agrees to complete (accurately and in a manner
                   reasonably satisfactory to the other party), execute, arrange
                   for any required certification of, and deliver to the other
                   party or such government or taxing authority as the other
                   party directs, any form or document that may be required or
                   reasonably requested in order to assist or enable the other
                   party to secure the benefit of any available exemption or
                   relief from any deduction or withholding on account of any
                   Taxes or, if there is no available exemption or relief as
                   aforesaid, to secure the benefit of any reduced rate of
                   deduction or withholding, in respect of any payment under
                   this Agreement, promptly upon the earlier of: (i) reasonable
                   demand by the other party and (ii) learning that the form or
                   document is so required. Without limitation of the foregoing,
                   Seller agrees to deliver to Agent, on the date of this
                   Agreement, a completed Form W-9, Request for Taxpayer
                   Identification Number and Certification, it being understood
                   that Buyer shall have no obligation to enter into any
                   Transaction pursuant to this Agreement prior to Agent's
                   receipt of such Form W-9. Failure to comply with or perform
                   any tax covenant provided for hereunder will terminate the
                   payor's obligation to pay any additional amount to the extent
                   such additional amount would not be required to be paid but
                   for such failure.

               (d) (1) In the event a Tax Event occurs with respect to this
                   Agreement, at the option of such party (exercised by written
                   notice to the other party, such notice being treated as a
                   demand pursuant to Paragraph 3(c) of this Agreement), the
                   Repurchase Date for the Transaction with respect to which the
                   Tax Event occurred shall be immediately deemed to occur and
                   such Repurchase Date shall be treated as the date of
                   determination for the purposes of calculating the Repurchase
                   Price.

                   (2) The occurrence with respect to either party of any of the
                   following events will constitute a "Tax Event" for the
                   purposes of this subparagraph 5(d):

                       (i) the party shall be required on the next succeeding
                       payment date to pay to the other party an additional
                       amount under subparagraph 5(b) hereof as a result of a
                       Change in Tax Law;

                       (ii) there is a substantial likelihood that the party
                       will be required on the next succeeding payment date to
                       pay to the other party an additional amount under
                       subparagraph 5(b) hereof and such substantial likelihood
                       results from an action taken by a taxing authority or
                       court of competent jurisdiction, on or after the date on
                       which such Transaction was entered into (regardless of
                       whether such action was taken or brought with respect to
                       a party to this Agreement); or

                       (iii) the party will be required on the next succeeding
                       payment date to pay to the other party an additional
                       amount under subparagraph 5(b) hereof as a result of a
                       consolidation, amalgamation, merger or transfer of
                       substantially all of the assets of such other party by
                       such other party.

                                       6
<PAGE>   17

               (e) Each party agrees that it will pay any Stamp Tax levied or
                   imposed upon it or in respect of its execution or performance
                   of this Agreement by an government or other authority in a
                   jurisdiction in which it is incorporated, organized, managed
                   and controlled, or is considered to have its seat, or in
                   which a branch or office through which it is acting for the
                   purpose of this Agreement is located (a "Stamp Tax
                   Jurisdiction") and will indemnify the other party against any
                   Stamp Tax levied or imposed upon the other party or in
                   respect of the other party's execution or performance of this
                   Agreement by any such Stamp Tax Jurisdiction which is not
                   also a Stamp Tax Jurisdiction with respect to the other
                   party. Notwithstanding the foregoing, if a party becomes a
                   Defaulting Party under this Agreement, then such party agrees
                   to indemnify the other party for any Stamp Taxes imposed upon
                   such other party by reason of such other party's enforcement
                   and protection, as a result of such other default, of its
                   rights under this Agreement or any related credit support
                   document.

               (f) For the purposes of this Paragraph 5:

                   (1) "Change in Tax Law" means the enactment, promulgation,
                       execution or ratification of, or any change in or
                       amendment to, any law (or in the application or official
                       interpretation of any law) that occurs on or after the
                       date on which the relevant Transaction is entered into.

                   (2) "Defaulting Party" means a party that defaults in the
                       performance of any obligation thereof under this
                       Agreement.

                   (3) "Law" includes any treaty, law, rule or regulation (as
                       modified, in the case of tax matters, by practice of any
                       relevant governmental revenue authority either generally
                       or with respect to a party to this Agreement) and "Change
                       in Tax Law" shall be construed accordingly.

                   (4) "LIBOR Rate" means, with respect to any date, the posted
                       rate for United States dollar deposits for one month that
                       appears on Telerate Page 3750 (as defined below) as of
                       11:00 A.M., London time, on such date. "Telerate Page
                       3750" means the display page designated on the Bridge
                       Information Systems Telerate Service (or such other page
                       as may replace that page on that service, or such other
                       service as may be nominated as the information vendor,
                       for the purpose of displaying London inter-bank offered
                       rates of major banks). If, on such date, no posted rate
                       appears on Telerate Page 3750, LIBOR will be determined
                       on such date on the basis of quotations of major banks
                       that are most recently available as of such date, as
                       calculated by Agent.

                   (5) "Stamp Tax" means any stamp, registration, documentation
                       or similar tax.

                   (6) "Tax" or "Taxes" means any present or future tax, levy,
                       impost, duty, charge, assessment or fee of any nature
                       that is imposed by a governmental or other taxing
                       authority in respect of any payment under this Agreement
                       other than any franchise or income taxes imposed upon any
                       party to this Agreement.

                                       7
<PAGE>   18

5. MODIFICATION OF PARAGRAPH 9 OF THE MASTER REPURCHASE AGREEMENT

         Paragraph 9 of the Master Repurchase Agreement shall be amended by
adding the following new subparagraphs (c) and (d) to such Paragraph:

         (c) In the case of any Transaction for which the Repurchase Date is
             other than the business day immediately following the Purchase Date
             and with respect to which Seller does not have any existing right
             to substitute substantially the same Securities for the Purchased
             Securities, Seller shall have the right, subject to the proviso to
             this sentence, upon notice to Buyer, which notice shall be given at
             or prior to 10:00 am (New York Time) on such business day, to
             substitute substantially the same Securities for any Purchased
             Securities; provided, however, that Buyer may elect, by the close
             of business on the business day notice is received, or by the close
             of the next business day if notice is given after 10:00 am (New
             York Time) on such day, not to accept such substitution. In the
             event such substitution is accepted by Buyer, such substitution
             shall be made by Seller's transfer to Buyer of such other
             Securities and Buyer's transfer to Seller of such Purchased
             Securities, and after substitution, the substituted Securities
             shall be deemed to be Purchased Securities. In the event Buyer
             elects not to accept such substitution, Buyer shall offer Seller
             the right to terminate the Transaction.

         (d) In the event Seller exercises its right to substitute or terminate
             under sub-paragraph (c), Seller shall be obligated to pay to Buyer,
             by the close of the business day of such substitution or
             termination, as the case may be, an amount equal to (A) Buyer's
             actual cost (including all fees, expenses and commissions) of (i)
             entering into replacement transactions; and/or (ii) terminating
             transactions or substituting Securities in like transactions with
             third parties in connection with or as a result of such
             substitution or termination, and (B) to the extent Buyer determines
             not to enter into replacement transactions, the loss incurred by
             Buyer directly arising or resulting from such substitution or
             termination. The foregoing amounts shall be solely determined and
             calculated by Buyer in good faith. For the purposes of this
             Paragraph 9(d), the term of any replacement transaction,
             terminating transaction or transaction with respect to substituting
             Securities shall not be greater than thirty (30) days.

                                       8

<PAGE>   19

6.   MODIFICATION OF PARAGRAPH 12 OF THE MASTER REPURCHASE AGREEMENT

         Paragraph 12 of the Master Repurchase Agreement shall be amended by
deleting such Paragraph in its entirety and replacing such Paragraph with the
following:

         12. SINGLE AGREEMENT

             Buyer and Seller hereby acknowledge that they consider all
             Transactions and agreements between them to constitute a single
             business and contractual relationship and to have been made in
             consideration of each other and this Agreement. Therefore, (a) each
             party hereby agrees (i) to perform all of its obligations to the
             other party with respect to all Transactions or agreements between
             them, (ii) that a default in the performance of any such
             obligations ("Obligations") shall constitute an Event of Default
             hereunder and (iii) that any Event of Default hereunder shall
             constitute a default in respect of all such other Transactions and
             agreements between them, (b) each party shall have a right of
             setoff against the other party for amounts owing hereunder and any
             other Obligations owing in respect of any other agreement or
             transaction whatsoever, and (c) payments, deliveries, and other
             transfers made by either party hereunder shall be considered to
             have been made in consideration of payments, deliveries, and other
             transfers made by the other party with respect to all other
             agreements or transactions between them, and the Obligations to
             make any such payments, deliveries, and other transfers may be
             applied against each other and netted. As security for the
             performance by each party of all of its Obligations, each party
             hereby grants to the other a security interest in all securities,
             instruments, money, and other property (and all proceeds thereof)
             transferred by such party to the other pursuant to this Agreement.
             With respect to defaulted Obligations which did not arise under
             this Agreement, such security interest may be enforced in
             accordance with the provisions of applicable law or Paragraph
             11(d)(i) hereof (applying such Paragraph as if such defaulted
             Obligations were owed hereunder in respect of a Transaction in
             which the defaulting party is acting as Seller).

7. MODIFICATION OF PARAGRAPH 19 OF THE MASTER REPURCHASE AGREEMENT

         Paragraph 19 of the Master Repurchase Agreement shall be amended by
adding the following new subparagraph (e) to such Paragraph:

         (e) The parties recognize and intend that each Transaction is, and
             shall constitute, a "repurchase agreement" (except insofar as the
             type of Securities subject to such Transaction or the term of such
             Transaction would render such definition inapplicable) and a
             "securities contract," as those terms are defined in Section 212 of
             the U.S. Financial Institutions Reform, Recovery and Enforcement
             Act of 1989 ("FIRREA"), and that this Agreement constitutes a
             "master agreement" as that term is used in such Section.

                                        9

<PAGE>   20

8. AGENCY PROVISIONS

         Notwithstanding any provision to the contrary contained in this
Agreement, any Confirmation or any other agreements or instruments delivered in
connection with any Transaction hereunder:

         a. CSFB, as a broker-dealer registered with the SEC, will arrange, as
agent for each of Buyer and Seller, each Transaction to be entered into pursuant
to this Agreement in accordance with Rule 15a-6 promulgated under the Exchange
Act. As agent for each of Buyer and Seller, CSFB will be responsible for (i)
effecting and settling all such Transactions in compliance with said Rule 15a-6,
(ii) issuing all required confirmations and statements to Buyer and Seller in
compliance with Rule 15c3-1 under the Exchange Act, (iii) maintaining books and
records relating to such Transactions as required by Rules 17a-3 and 17a-4 under
the Exchange Act and (iv) if requested by Buyer or Seller, receiving, delivering
and safeguarding such party's funds and securities in connection with such
Transactions in compliance with Rule 15c3-3 under the Exchange Act.

         b. CSFB is participating in each Transaction solely as agent for each
of Buyer and Seller. CSFB shall have no responsibility or liability to either
Buyer or Seller arising from any failure of Buyer or Seller to pay or perform
any obligation hereunder, including, without limitation, any obligation to
maintain margin. Each of Buyer and Seller agrees to proceed solely against the
other to collect or recover any securities or monies owing to it in connection
with or as a result of any Transaction or otherwise hereunder. CSFB shall
otherwise have no liability in respect of this Agreement or any Transaction,
except that CSFB shall be liable for its gross negligence or willful misconduct,
or its failure to comply with applicable U.S. securities laws and regulations,
in performing its duties as agent for each of Buyer and Seller hereunder.

9. REPRESENTATIONS, WARRANTIES AND COVENANTS

         Paragraph 10 of the Master Repurchase Agreement shall be modified to
include the following additional terms:

         a. Buyer represents and warrants to Seller, and shall on and as of the
Purchase Date of any Transaction be deemed to represent and warrant, as follows:

            i. Buyer has been duly organized and is validly existing as a
corporation in good standing under the laws of the jurisdiction of its
incorporation and is duly qualified and in good standing in each other
jurisdiction where the conduct of its business or the ownership, lease or
operation of its property requires such qualification; and

            ii. this Agreement has been duly executed and delivered by Buyer and
constitutes the legal, valid and binding obligation of Buyer, enforceable
against it in accordance with its terms, subject, as to enforcement, to
bankruptcy, insolvency, reorganization or similar laws of general applicability
relating to or affecting creditors' rights, to the assumption that enforcement
will be undertaken in a commercially reasonable manner and to general principles
of equity and equitable remedies, regardless of whether enforcement is
considered in a proceeding in equity or at law.

                                       10

<PAGE>   21

         b. Agent represents and warrants to Seller, and shall on and as of the
Purchase Date of any Transaction be deemed to represent and warrant, as follows:

            i. Agent has been duly organized and is validly existing as a
         corporation in good standing under the laws of the state of its
         incorporation and is duly qualified and in good standing in each other
         jurisdiction where the conduct of its business or the ownership, lease
         or operation of its property requires such qualification; and

            ii. this Agreement has been duly executed and delivered by Agent and
         constitutes the legal, valid and binding obligation of Agent,
         enforceable against it in accordance with its terms, subject, as to
         enforcement, to bankruptcy, insolvency, reorganization or similar laws
         of general applicability relating to or affecting creditors' rights, to
         the assumption that enforcement will be undertaken in a commercially
         reasonable manner and to general principles of equity and equitable
         remedies, regardless of whether enforcement is considered in a
         proceeding in equity or at law.

         c. Seller represents and warrants to Buyer, and shall on and as of the
Purchase Date of any Transaction be deemed to represent and warrant, as follows:

            i. Seller has been duly organized and is validly existing as a
         corporation in good standing under the laws of the state of its
         incorporation and is duly qualified and in good standing in each other
         jurisdiction where the conduct of its business or the ownership, lease
         or operation of its property requires such qualification;

            ii. this Agreement has been duly executed and delivered by Seller
         and constitutes the legal, valid and binding obligation of Seller,
         enforceable against Seller in accordance with its terms, subject, as to
         enforcement, to bankruptcy, insolvency, reorganization or similar laws
         of general applicability relating to or affecting creditors' rights, to
         the assumption that enforcement will be undertaken in a commercially
         reasonable manner and to general principles of equity and equitable
         remedies, regardless of whether enforcement is considered in a
         proceeding in equity or at law;

            iii. neither the execution and delivery nor the performance by
         Seller of this Agreement will result in or require the creation of any
         lien, security interest or other charge or encumbrance (other than
         pursuant hereto) upon or with respect to any of Seller's properties,
         except for the security interest created by this Agreement;

            iv. neither the execution and delivery nor the performance by Seller
         of this Agreement requires any authorization, approval, consent,
         license, exemption (other than any self-executing exemption), filing,
         registration or the taking of any other action in respect of any
         federal or state authority except where the failure to comply with such
         requirement would not adversely affect the delivery, execution or
         performance by Seller of this Agreement or cause a Material Adverse
         Change;

                                       11

<PAGE>   22

            v. Immediately prior to the delivery by the Seller to the Buyer of
         any Purchased Securities for any Transaction, Seller shall be the legal
         and beneficial owner of such Purchased Securities free and clear of any
         lien, security interest, option or encumbrance;

            vi. there are no delinquent federal, state, city, county or other
         taxes relating to Seller, the Purchased Securities or any arrangement
         pursuant to which the Purchased Securities are issued that might, in
         the reasonable judgment of Buyer, materially adversely affect any of
         the Purchased Securities or cause a Material Adverse Change in Seller,
         and all such delinquent tax liabilities have been satisfied except
         those that are being contested by Seller in good faith;

            vii. since the date of the most recent financial statement delivered
         by Seller to Buyer, there has been no Material Adverse Change; Seller
         shall provide Buyer with such financial statements and other
         information as is contemplated in Section 9(d)xvi of these Supplemental
         Terms;

            viii. there are no actions, suits, investigations, or other
         proceedings pending, or, to the best knowledge of Seller, after due
         inquiry, threatened, against or affecting Seller by or before any
         court, arbitrator, Governmental Authority which challenge any of the
         transactions contemplated under this Agreement or could result in a
         Material Adverse Change and there are no preliminary or permanent
         injunctions or orders by any court or other Governmental Authority
         pending affecting this Agreement or any of the Transactions
         contemplated hereby;

            ix. no certificate, statement, report or other document furnished
         and no representation or warranty made or to be furnished or made to
         Buyer by or on behalf of Seller in or in connection with this Agreement
         or any Transaction contemplated hereby, at the time furnished, contains
         or will contain any untrue statement of a material fact or omits or
         will omit to state any material fact necessary in order to make the
         statements contained therein not misleading; and

            x. Seller is a direct or indirect wholly-owned subsidiary of Onyx.

         d. Seller covenants with Buyer, from and after the date hereof, as
follows:

            i. Seller shall notify Buyer no later than one (1) Business Day
         after obtaining actual knowledge thereof, if any event has occurred
         that constitutes an Event of Default with respect to Seller or any
         event that with the giving of notice or lapse of time, or both, would
         become an Event of Default with respect to Seller;

            ii. Seller shall not take any action that would directly or
         indirectly impair or adversely affect Buyer's title to or the value of
         the Purchased Securities;

            iii. Seller shall not pledge, assign, convey, grant, bargain, sell,
         set over, deliver or otherwise transfer any interest in the Purchased
         Securities, to any person not a party to this Agreement nor will the
         Seller create, incur or permit to exist any lien, encumbrance or
         security interest in or on the Purchased Securities;

                                       12

<PAGE>   23

            iv. Seller shall, at Buyer's request, take all action necessary to
         ensure that Buyer will have a perfected first priority security
         interest in the Purchased Securities in the event that the Transactions
         are recharacterized by a court of competent jurisdiction as loans,
         including among other things, filing such UCC financing statements,
         mortgages or other instruments as Buyer may reasonably request;

            v. Seller shall not enter into any transaction of merger or
         consolidation or amalgamation, or liquidate, wind up or dissolve itself
         (or suffer any liquidation, winding up or dissolution) or sell all or
         substantially all of its assets;

            vi. Seller shall promptly inform Buyer of any changes to the senior
         management of either Seller or Onyx, and such other information as
         Buyer may reasonably request from time to time;

            vii. Seller shall promptly notify Buyer of any litigation against
         Seller or any affiliate of Seller relating to the Purchased Securities
         which, individually or in the aggregate, if adversely determined
         against Seller, would materially affect such Purchased Securities;

            viii. Seller shall provide Buyer with copies of such documentation
         as Buyer may reasonably request evidencing the truthfulness of the
         representations set forth in subsection (b) above;

            ix. Seller shall take all actions necessary to remain duly
         organized, validly existing and in good standing as a domestic
         corporation in Delaware and maintain all requisite authority to conduct
         its business in each jurisdiction in which its business is conducted,
         except where the failure to maintain such authority would not have a
         material adverse effect on the ability of Seller to conduct its
         business or to perform its obligations under this Agreement;

            x. Seller shall not create, incur, assume or suffer to exist any
         guarantee of indebtedness of any person other than an intercompany
         guarantee in favor of an affiliate of Seller;

            xi. Seller shall not change the identity of its independent public
         accountants without prior written notice to Buyer of such change and
         the reason therefor; Seller shall at all times utilize a nationally
         recognized independent public accounting firm;

            xii. the ratio of (A) Adjusted Tangible Net Worth to (B) Total
         Assets shall be at least 15% as of the end of each fiscal quarter of
         Onyx;

            xiii. as of the end of each fiscal quarter of Onyx, the Adjusted
         EBITDA Coverage shall be greater than 1.5;

            xiv. the ratio of (A) Securitization Assets to (B) Adjusted Tangible
         Net Worth shall not be greater than 3 to 1 as of the end of any fiscal
         quarter of Onyx;

                                       13

<PAGE>   24

            xv. as of the end of each fiscal quarter of Onyx, Consolidated
         Tangible Net Worth shall be greater than $45,000,000; and

            xvi. Seller shall provide to Buyer the following financial and
         reporting information:

                (i) as soon as available and in any event within ninety (90)
         days after the close of each fiscal year of Onyx, a consolidated
         balance sheet of Onyx, a consolidated statement of income of Onyx and a
         consolidated statement of changes in financial position of Onyx's
         consolidated financial group as at the end of and for the fiscal year
         just closed, setting forth the corresponding figures of the previous
         fiscal year, if applicable, in comparative form, all in reasonable
         detail and certified (without any qualification or exception deemed
         material by Buyer) by independent public accountants selected by Onyx
         and reasonably satisfactory to Buyer;

                (ii) as soon as available and in any event within forty-five
         (45) days after the close of each of the first three (3) quarters of
         each fiscal year of Seller, the Onyx applicable quarterly Form 10-Q as
         filed with the SEC, including the consolidating statements for Seller,
         subject to normal recurring year-end audit adjustments, and as prepared
         in accordance with GAAP;

                (iii) as soon as available and in any event within thirty (30)
         days after the close of each calendar month other than a month in which
         a quarter of a fiscal year of Onyx closes, a consolidated balance sheet
         of Onyx, a consolidated statement of income of Onyx and a consolidated
         statement of changes in financial position of Onyx's consolidated
         financial group as at the end of such calendar month, as prepared in
         accordance with GAAP;

                (iv) as soon as available and in any event within thirty (30)
         days after the close of each calendar month, loan performance data for
         such month, including pool analytic reports (i.e., prepayment,
         delinquency, repossession and net charge-off reports), with respect to
         each Securitized Pool;

                (v) as soon as available and in any event within thirty (30)
         days after the close of each calendar month, the Servicer
         Securitization Statement for such month with respect to each
         Securitized Pool;

                (vi) promptly, and in any event no later than five (5) Business
         Days, after the commencement thereof, written notice of any material
         actions, suits or proceedings (including arbitrations) against Seller
         or Onyx before any court or other Governmental Authority;

                (vii) immediately upon becoming aware of any development or
         other information which is reasonably likely to result in a Material
         Adverse Change of Seller or Onyx, as applicable, written notice
         specifying the nature of such development or information, such
         anticipated effect and action, if any, Seller or Onyx proposes to take
         or has taken with respect thereto;

                                       14

<PAGE>   25

                (viii) concurrently with the delivery of the financial
         statements required to be furnished by subsections (i) or (ii) above, a
         certificate signed by the chief executive or financial officer of
         Seller, stating (1) that a review of the activities of Seller during
         such quarter or fiscal year, as the case may be, has been made under
         his or her immediate supervision with a view to determining whether
         Seller has observed, performed and fulfilled all of its obligations
         under this Agreement and whether Seller is in compliance with the
         representations, warranties and covenants of the Seller under this
         Agreement, and (2) that there existed during such quarter or fiscal
         year, as the case may be, no Event of Default and no Default or if any
         such Event of Default or Default did exist, specifying the nature
         thereof, the period of existence thereof and what action Seller
         proposes to take, or has taken, with respect thereto; and

                (ix) such other information of a financial or operational nature
         of Seller and/or Onyx as may be reasonably requested by Buyer from time
         to time.

10. EVENT OF DEFAULT

         Paragraph 11 of the Master Repurchase Agreement shall be modified to
include the following additional or supplemental terms:

         a. The following events shall constitute additional events of default
(each an "Event of Default") under the Agreement with respect to Buyer or
Seller, as applicable:

            i. any failure by Seller to pay, whether on the acceleration thereof
         or otherwise, any amounts due under this Agreement or to perform any
         provision of this Agreement in accordance herewith, or any material
         breach of any representation, warranty or covenant of Seller set forth
         in this Agreement;

            ii. the granting by Seller of any security interest, lien, pledge or
         other encumbrance on any Purchased Securities to any person other than
         Buyer;

            iii. Buyer shall for any reason cease to have a valid, first
         priority security interest in any of the Purchased Securities purported
         to be covered thereby, or any Person shall assert that Buyer does not
         have a valid, first priority security interest in any of the Purchased
         Securities;

            iv. the filing by Seller, Onyx or any affiliate, of a petition in
         bankruptcy, the adjudication of Seller, Onyx or any affiliate as
         insolvent or bankrupt, the petition or application by Seller, Onyx or
         any affiliate for any receiver or trustee for itself or any substantial
         part of its property, the commencement by Seller, Onyx or any affiliate
         of any proceeding relating to it under any reorganization, arrangement,
         dissolution or liquidation law, or the initiation of any such
         proceeding against Seller, Onyx or any affiliate, if Seller, Onyx or
         such affiliate indicates by any act its consent thereto or if such
         proceeding is not dismissed within sixty (60) days;

                                       15

<PAGE>   26

            v. Buyer shall reasonably determine that Seller is or will be unable
         to meet its commitments under this Agreement, and notifies Seller of
         such determination, and Seller shall not have responded with
         appropriate information to the contrary to the satisfaction of Buyer
         within thirty-six (36) hours;

            vi. Seller or Onyx violates any law or any regulation promulgated
         pursuant to any such law that relates to the Purchased Securities;

            vii. a final, non-appealable judgment by any competent court in the
         United States of America for the payment of money in an amount of at
         least $100,000 is rendered against Onyx, Seller or any affiliate
         thereof, and the same remains undischarged for a period of sixty (60)
         days after the entry thereof, during which period the execution of such
         judgment is not effectively appealed or otherwise stayed;

            viii. in the reasonable judgment of Agent, a Material Adverse Change
         shall have occurred with respect to Onyx and/or Seller;

            ix. any Change of Control with respect to Seller or Onyx shall have
         occurred, unless Buyer shall have expressly consented to such Change of
         Control in writing, which consent shall not be unreasonably withheld;

            x. any representation or warranty made by Seller in this Agreement
         shall have been incorrect or untrue in any material respect when made
         or repeated or when deemed to have been made or repeated, and Buyer's
         interests shall have been materially adversely affected by such breach;

            xi. Seller shall breach in any material respect any covenant made by
         it in this Agreement and Buyer's interests shall have been materially
         adversely affected by such breach;

            xii. there shall occur an event of default or a default which with
         notice, the passage of time, or both, shall constitute an event of
         default by Onyx or Seller with respect to any normal and customary
         covenants (including, without limitation, an Act of Insolvency of Onyx
         or Seller, as applicable, or the failure of Onyx or Seller, as
         applicable, to make required payments as they become due) under any
         note, instrument, debt contract or agreement, servicing agreement,
         other agreement or lease to which Onyx or Seller, as applicable, is a
         party and under which the obligations of Onyx or Seller, as applicable,
         total at least (A) $1,000,000 in the case of any agreement concerning
         leasehold improvements or equipment financing or any lease, or
         (B)$500,000 in the case of any other note, instrument, debt contract or
         agreement, servicing agreement or other agreement, provided that such
         default: (i) entitles any creditor or obligee of Onyx or Seller, as
         applicable, to accelerate or declare immediately due an amount of at
         least (A) $1,000,000 in the case of any agreement concerning leasehold
         improvements or equipment financing or any lease, or (B)$500,000 in the
         case of any other note, instrument, debt contract or agreement,
         servicing agreement or other agreement; or (ii) otherwise results in a
         Material Adverse Change with respect to Onyx or Seller;

                                       16

<PAGE>   27

            xiii. Seller or Onyx shall have received a "going concern" letter
         from its accounting firm; or

            xiv. a Servicer Default shall have occurred.

         b. Upon the occurrence and during the continuance of an Event of
Default by Seller, in addition to the provisions of the Master Repurchase
Agreement:

            i. If the proceeds of sale of the Purchased Securities are
         insufficient to cover (A) the costs and expenses incurred by Buyer in
         connection with such sale and (B) the payment in full of Seller's
         outstanding obligations to Buyer under this Agreement, then Seller
         shall remain liable for any deficiency.

            ii. Buyer shall incur no liability as a result of the sale of any
         Purchased Securities at any private sale. Seller hereby waives any
         claims against Buyer arising by reason of the fact that the price at
         which any Purchased Securities may have been sold at such a private
         sale was less than the price that might have been obtained therefor at
         a public sale or was less than the aggregate amount of Seller's
         outstanding obligations to Buyer under this Agreement, even if Buyer
         accepts the first offer received and does not offer the Purchased
         Securities to more than one offeree; provided, however, that Buyer
         shall present to Seller any bids that Buyer receives on any Purchased
         Securities in connection with any such private sale and shall allow
         Seller to submit, no later than the Seller's Bid Submission Deadline, a
         bid for such Purchased Securities that is not less than the amount of
         the highest such bid that shall have been so presented to Seller.

            iii. The proceeds of any sale of all or any part of the Purchased
         Securities shall be applied by Buyer in the following order of
         priority:

               first, to the payment of the costs and expenses of such sale and
               all expenses (including the reasonable fees and expenses of
               counsel), liabilities and advances made or incurred by Buyer in
               connection therewith;

               second, to the payment of the Price Differential due or past due;

               third, to the payment of the Repurchase Price of all Purchased
               Securities;

               fourth, to the payment of all other amounts owing under this
               Agreement; and

               fifth, to Seller, or to such other person as a court of competent
               jurisdiction may direct, the payment of any surplus then
               remaining from such proceeds.

                                       17

<PAGE>   28

11. CONDITIONS PRECEDENT

         The purchase of the Securities on any Business Day is subject to the
satisfaction of the following additional conditions precedent, both immediately
prior to such purchase and also after giving effect thereto and to the intended
use thereof:

         a. no Event of Default or Default shall have occurred and be
continuing;

         b. both immediately prior to the entering into of such Transaction and
also after giving effect thereto and to the intended use thereof, the
representations and warranties made by Seller in this Agreement shall be deemed
given and shall be true and complete on and as of the date of the Transaction in
all material respects with the same force and effect as if made on and as of
such date (or, if any such representation or warranty is expressly stated to
have been made as of a specific date, as of such specific date);

         c. both immediately prior to the entering into of such Transaction and
also after giving effect thereto and to the intended use thereof, no covenant
made by Seller in this Agreement shall have been breached; and

         d. the proposed Transaction shall not violate any requirement of law
and shall not be enjoined, temporarily, preliminarily or permanently.

12. MINIMUM AND MAXIMUM TRANSACTION AMOUNTS

         With respect to Transactions entered into hereunder:

         a. the minimum Purchase Price of any Purchased Security subject to a
Transaction shall be $500,000;

         b. the number of Transactions pursuant to the Agreement shall be
limited to one (1) in any five (5) consecutive Business Days; and

         c. The aggregate outstanding Repurchase Price for the Purchased
Securities subject to the Agreement at any one time shall not exceed
$35,000,000.

13. PRIOR NOTICE REQUIRED FOR REPURCHASES

         Seller may repurchase any Purchased Security at any time at the
Repurchase Price of such Purchased Security; provided, however, that no such
repurchase shall occur prior to the second Business Day following Agent's
receipt of Seller's written notice of its intent to effect such repurchase.

14. PAYMENT OF PRICE DIFFERENTIAL

         The Price Differential shall be payable monthly on the Price
Differential Payment Date for the related Transaction. Payment of the Price
Differential to Buyer shall be made by wire transfer in immediately available
funds.

15. REGISTRATION OF PURCHASED SECURITIES; DISTRIBUTIONS ON PURCHASED SECURITIES

         a. The Purchased Securities shall be registered in the name of Credit
Suisse First Boston Corporation.

         b. All payments and distributions, whether in cash or in kind, made on
or with respect to the Purchased Securities will, unless otherwise agreed by
Buyer, be paid, delivered or transferred directly to Buyer (or any such
affiliate as Buyer shall designate). Provided that no Event of

                                       18

<PAGE>   29

Default has occurred, Buyer may, in its sole discretion, use such Income to (a)
satisfy a Margin Deficit under Section 4 of the Agreement, (b) reduce the
Repurchase Price or (c) satisfy any other amounts due and owing to Buyer under
the Agreement. Any amounts in excess of the amounts in clauses (a), (b) and (c)
shall be transferred by Buyer to Seller promptly. Following the occurrence and
continuation of an Event of Default, Buyer shall retain all Income in an amount
not to exceed the sum of (i) the respective Repurchase Prices for the Purchased
Securities and (ii) all other amounts then due and owing by Seller to Buyer (it
being understood that any Income in excess of such sum shall be transferred to
Seller). If Seller shall receive any payment or distribution on or with respect
to the Purchased Securities, it shall hold such payment or distribution in trust
for the benefit of Buyer and shall forward such payment, at the direction of
Buyer, to be applied by Buyer to the then outstanding obligations.

16. TERMINATION

         Notwithstanding any provisions of Paragraph 15 of the Master Repurchase
Agreement to the contrary, this Agreement and all Transactions outstanding
hereunder shall terminate automatically without any requirement for notice on
the date occurring three hundred sixty days after the date as of which this
Agreement is entered into; provided, however, that this Agreement and any
Transaction outstanding hereunder may be extended by mutual agreement of Buyer
and the Seller; and provided further, however, that no such party shall be
obligated to agree to any such extension.

17. CONFIDENTIALITY

         Each of the parties acknowledges that the Agreement and the terms of
the Securities are confidential in nature and each such party agrees that,
unless otherwise directed by a court or regulatory entity of competent
jurisdiction or as may be required by federal or state law (which determination
as to federal or state law shall be based upon written advice of counsel), it
shall limit the distribution of such documents and the disclosure of such
information to its officers, employees, attorneys, accountants and agents as
required in order to conduct its business with the other parties hereto.
Notwithstanding the foregoing, Buyer shall be permitted to provide a copy of
this Agreement, and shall be permitted to describe the terms of the Securities,
in connection with the re-hypothecation of the Securities. Except as otherwise
provided in this Section 17, Seller shall not disclose the terms of this
Agreement to any Person other than Seller's counsel or accountants without the
prior written consent of Buyer, such consent not to be unreasonably withheld;
provided, however, that prior consent of Buyer shall not be required in the case
of any filing of this Agreement with the SEC or any other Governmental Authority
that is required under applicable law. This Section 17 shall not apply to
information which has entered the public domain through means other than a
breach of the foregoing covenant by the party seeking to distribute such
documents or which the other party has given written permission to disclose.

         Buyer may disclose to any affiliate of Buyer any information concerning
the Purchased Securities (the "Purchased Securities Information") that is
furnished by Seller or any affiliate of Seller to Buyer. Except as otherwise
provided in this Section 17, Buyer shall not disclose to any affiliate of Buyer
any information concerning Seller or any affiliate of Seller other than
Purchased Securities Information (such information, the "Seller Information")
without the prior written consent of Onyx, such consent not to be unreasonably
withheld. Seller hereby

                                       19

<PAGE>   30

acknowledges and agrees that any and all Purchased Securities Information and
Seller Information (collectively, the "Information") that is furnished by Seller
to Buyer and that is disclosed to any affiliate of Buyer in accordance with this
Section 17 may be used and relied upon by any such Buyer affiliate without any
liability to Seller, to the extent the Information is obtained by a Buyer entity
from another Buyer entity.

18. COUNTERPARTS

         This Agreement may be executed in any number of counterparts, each of
which counterparts shall be deemed to be an original, and such counterparts
shall constitute but one and the same instrument.

19. PAYMENT OF EXPENSES

         a. Seller shall pay, or shall cause Onyx to pay, to Buyer, at the date
of execution of the Agreement, all related fees and expenses incurred by Buyer
in connection with the preparation of this Agreement and the enforcement of
Buyer's rights thereunder; provided, however, that Seller shall not be required
to reimburse Buyer in an amount in excess of $20,000 for fees and expenses of
Buyer's counsel incurred in the preparation, reproduction and distribution of
the Agreement and any documents contemplated thereby or relating thereto. The
payment by Seller or Onyx of such fees and expenses to Buyer shall be by wire
transfer in immediately available funds. The effectiveness of the Agreement
shall be conditioned upon Buyer's receipt of such payment.

         b. Notwithstanding the foregoing, Buyer shall pay to Buyer's counsel,
Brown & Wood LLP, at the date of execution of the Agreement, a pre-arranged fee
of $30,000 together with the reasonable disbursements of such counsel incurred
in the preparation, reproduction and distribution of the Agreement and any
documents contemplated thereby or relating thereto. The payment of such fee
shall be by wire transfer in immediately available funds. The effectiveness of
the Agreement shall be conditioned upon the payment of such fee and the
aforementioned expenses.

20. RELIANCE

         Seller further agrees that, notwithstanding any right of Buyer to
investigate fully the affairs of the Seller and notwithstanding any knowledge of
facts determined or determinable by Buyer, Buyer has the right to rely fully on
the representations, warranties, covenants and agreements of Seller contained in
the Agreement and upon the accuracy of any document, instrument, certificate or
exhibit given or delivered hereunder.

                                       20

<PAGE>   31

21. LIMITATION OF DAMAGES

         UNDER NO CIRCUMSTANCES SHALL ANY PARTY TO THIS AGREEMENT BE LIABLE FOR
PUNITIVE DAMAGES IN ANY WAY RELATED TO THIS AGREEMENT AND, EXCEPT AS PROVIDED IN
PARAGRAPH 11(g) OF THIS AGREEMENT, UNDER NO CIRCUMSTANCES SHALL ANY PARTY BE
LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL LOSS OR DAMAGES
SUFFERED OR INCURRED BY ANY OTHER PARTY HERETO, OR BY ANY OTHER PARTY, IN EACH
CASE ARISING UNDER THIS AGREEMENT, REGARDLESS OF WHETHER SUCH DAMAGES COULD HAVE
BEEN FORESEEN OR PREVENTED.

22. CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

         EACH PARTY TO THIS AGREEMENT IRREVOCABLY AND UNCONDITIONALLY (A)
SUBMITS TO THE EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK
STATE COURT SITTING IN NEW YORK CITY, AND ANY APPELLATE COURT FROM ANY SUCH
COURT, SOLELY FOR THE PURPOSE OF ANY SUIT, ACTION OR PROCEEDING BROUGHT TO
ENFORCE ITS OBLIGATIONS HEREUNDER OR RELATING IN ANY WAY TO THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED HEREUNDER AND (B) WAIVES, TO THE FULLEST EXTENT IT
MAY EFFECTIVELY DO SO, ANY DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE
OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT AND ANY RIGHT OF JURISDICTION ON
ACCOUNT OF ITS PLACE OF RESIDENCE OR DOMICILE.

         EACH PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ANY RIGHT THAT
IT MAY HAVE TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

                                       21

<PAGE>   32

23. INCORPORATION OF TERMS

         The Master Repurchase Agreement as supplemented by this Annex I and by
Annex II shall be read, taken and construed as one and the same instrument.

CREDIT SUISSE FIRST BOSTON                    CREDIT SUISSE FIRST BOSTON
   (EUROPE) LIMITED                                (EUROPE) LIMITED

By:                                           By:
    --------------------------------              ------------------------------
Name:                                         Name:
Title:                                        Title:

ONYX ACCEPTANCE FUNDING CORPORATION

By:
    -------------------------------
Name:
Title:

ACCEPTED AND AGREED TO SOLELY IN
ITS CAPACITY AS AGENT:

CREDIT SUISSE FIRST BOSTON
CORPORATION

By:
    -------------------------------
Name:
Title:

                                       22

<PAGE>   33

                                    ANNEX II

             NAMES AND ADDRESSES FOR COMMUNICATIONS BETWEEN PARTIES

FOR ALL NOTICES TO BUYER AND/OR AGENT (OTHER THAN LEGAL NOTICES):

CREDIT SUISSE FIRST BOSTON CORPORATION
Eleven Madison Avenue
New York, NY 10010-3629

Attn: Daniel Miller
      Credit Risk Management
      Tel: (212) 325-8665
      Fax: (212) 325-8170

FOR LEGAL NOTICES TO BUYER AND/OR AGENT ONLY:

CREDIT SUISSE FIRST BOSTON CORPORATION
Eleven Madison Avenue
New York, NY 10010-3629

Attn: Gabriella Morizio
      Legal and Compliance Department
      Tel: (212) 325-9646
      Fax: (212) 325-8170

COPY TO:

CREDIT SUISSE FIRST BOSTON (EUROPE) LIMITED
One Cabot Square
London E14 4QJ

Attn: Kevin Studd
      Managing Director - Legal and Compliance Department

FOR ALL NOTICES TO SELLER

ONYX ACCEPTANCE FUNDING CORPORATION
27051 Towne Centre Drive
Foothill Ranch, CA 92610

Attn: Don P. Duffy
      Executive Vice President and
      Chief Financial Officer

Copy to: Michael A. Krahelski
         Senior Vice President and General Counsel

Telephone No. (949) 465-3505
Facsimile No. (949) 465-3992<PAGE>   1

                                                                   Exhibit 10.10

                                  OFFICE LEASE

                       FUND VIII AND FUND IX ASSOCIATES, a
                        Georgia joint venture partnership

                                   as Landlord

                                       and

                              QUEST SOFTWARE, INC.,
                            a California corporation

                                    as Tenant

                           Dated as of: June ___, 2000

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<S>            <C>
ARTICLE 1      REAL PROPERTY, BUILDING AND PREMISES 1

ARTICLE 2      LEASE TERM 1

ARTICLE 3      BASE RENT 2

ARTICLE 4      ADDITIONAL RENT 2

ARTICLE 5      USE OF PREMISES 6

ARTICLE 6      SERVICES AND UTILITIES 6

ARTICLE 7      REPAIRS 6

ARTICLE 8      CONDITIONS AND ALTERATIONS 7

ARTICLE 9      COVENANT AGAINST LIENS 8

ARTICLE 10     INSURANCE 9

ARTICLE 11     DAMAGE AND DESTRUCTION 11

ARTICLE 12     NONWAIVER 13

ARTICLE 13     CONDEMNATION 13

ARTICLE 14     ASSIGNMENT AND SUBLETTING 13

ARTICLE 15     SURRENDER OF PREMISES; OWNERSHIP AND REMOVAL OF TRADE FIXTURES 16

ARTICLE 16     HOLDING OVER 16

ARTICLE 17     ESTOPPEL CERTIFICATES 17

ARTICLE 18     SUBORDINATION 17

ARTICLE 19     DEFAULTS; REMEDIES 17

ARTICLE 20     COVENANT OF QUIET ENJOYMENT 19

ARTICLE 21     FORCE MAJEURE 19

ARTICLE 22     ATTORNEYS' FEES 20

ARTICLE 23     SIGNS 20

ARTICLE 24     COMPLIANCE WITH LAW 21

ARTICLE 25     LATE CHARGES 21

ARTICLE 26     LANDLORD'S RIGHT TO CURE DEFAULT; PAYMENTS BY TENANT 21

ARTICLE 27     ENTRY BY LANDLORD 22

ARTICLE 28     INTENTIONALLY OMITTED 22
</TABLE>

<PAGE>   3

<TABLE>
<S>            <C>
ARTICLE 29     MISCELLANEOUS PROVISIONS 22
</TABLE>

<TABLE>
<CAPTION>
                              Exhibits
                              --------
<S>            <C>
Exhibit A      Legal Description of Land
Exhibit B      Tenant Improvements
Exhibit C      Direct Expenses Exclusions
Exhibit D      Rules and Regulations
Exhibit E      List of All Recorded Covenants, Conditions and Restrictions
Exhibit F      Form of Tenant's Estoppel Certificate
Exhibit G      Building Signage
</TABLE>

<PAGE>   4

                       SUMMARY OF BASIC LEASE INFORMATION

The undersigned hereby agree to the following terms of this Summary of Basic
Lease Information (the "Summary"). This Summary is hereby incorporated into and
made a part of the attached Office Lease (this Summary and the Office Lease to
be known collectively as the "Lease") which pertains to the office building (the
"Building")located on the real property described in Exhibit A which real
property is in the City of Irvine, California. Each reference in the Office
Lease to any term of this Summary shall have the meaning as set forth in this
Summary for such term. In the event of a conflict between the terms of this
Summary and the Office Lease, the terms of the Office Lease shall prevail. Any
capitalized terms used herein and not otherwise defined herein shall have the
meaning as set forth in the Office Lease.

<TABLE>
<CAPTION>
TERMS OF LEASE                   DESCRIPTION
--------------                   -----------
<S>  <C>                         <C>
1.   Dated as of:                June ___,2000

2.   Landlord:                   FUND VIII AND FUND IX ASSOCIATES,
                                 a Georgia joint venture partnership

3.   Address of Landlord         6200 The Corners Parkway, Suite 250
     (Section 29.16):            Norcross, Georgia 30092-2295

4.   Tenant:                     QUEST SOFTWARE, INC.,
                                 a California corporation

5.   Address of Tenant           8001 Irvine Center Drive
     (Section 29.16):            Irvine, California 92618
                                 Attn: Susan Twellman

6.   Premises (Article 1):       See Exhibit A

7.   Term (Article 2):           Beginning on the date hereof and ending on
                                 the last day of the month in which the 42nd
                                 monthly anniversary of the Rent Commencement
                                 Date occurs

8.   Base Rent (Article 3)       $1.65 per "rentable square feet" per month

     Rent Commencement
     Date:                       The Rent Commencement Date shall be the
                                 first to occur of (i) the date Tenant
                                 commences business in the Premises, (ii)
                                 issuance of a certificate of occupancy or
                                 (iii) August 1, 2000, provided that for the
                                 six month period beginning with the Rent
                                 Commencement Date, Base Rent shall be
                                 calculated on the basis of 33,000 "rentable
                                 square feet"

9.   Brokers (Section 29.20):    Julien J. Studley, Inc. and Cushman & Wakefield
</TABLE>

<PAGE>   5

                                  OFFICE LEASE

        This Office Lease, which includes the preceding Summary of Basic Lease
Information (the "Summary") attached hereto and incorporated herein by this
reference (the Office Lease and Summary to be known sometimes collectively
hereafter as the "Lease"), dated as of the date set forth in Section 1 of the
Summary, is made by and between FUND VIII AND FUND IX ASSOCIATES, a Georgia
joint venture partnership ("Landlord"), and QUEST SOFTWARE, INC., a California
corporation ("Tenant").

                                    ARTICLE 1
                      REAL PROPERTY, BUILDING AND PREMISES

        1.1    Real Property, Building and Premises. Upon and subject to the
terms, covenants and conditions hereinafter set forth in this Lease, Landlord
hereby leases to Tenant and Tenant hereby leases from Landlord all of the land
described in Exhibit A hereto (the "Real Property") and all of the improvements
thereon (the "Improvements"), including the building having an address of 15253
Bake Parkway, Irvine, California (the "Building"), the Real Property,
Improvements and Building being sometimes referred to herein as the "Premises."

        1.2    Rentable Square Feet of Premises and Building. For purposes of
this Lease, "rentable square feet" shall be deemed to be 65,006 for the
Premises.

        1.3    Delivery of the Building and Premises; Tenant Improvement
Allowance. Landlord will deliver to and Tenant will accept the Premises "as is,
where is, with all faults". Landlord agrees to provide a tenant improvement
allowance of $11.00 times the "rentable square feet" in the Building in
accordance with and subject to the terms and conditions set forth in Exhibit B
hereto (the "Tenant Improvements").

                                    ARTICLE 2
                                   LEASE TERM

        2.1    Initial Term. The terms and provisions of this Lease shall be
effective as of the date of this Lease except for the provisions of this Lease
relating to the payment of Rent. The term of this Lease and any validly
exercised option (the "Lease Term") shall be as set forth in Section 7 of the
Summary and Section 2.2 below and shall commence on the date (the "Lease
Commencement Date") set forth in Section 7 of the Summary, and shall terminate
on the date (the "Lease Expiration Date") set forth in Section 7 of the Summary,
unless this Lease is sooner terminated or extended as hereinafter provided. For
purposes of this Lease, the term "Lease Year" shall mean each consecutive twelve
(12) month period, commencing on the Lease Commencement Date unless the context
requires otherwise, during the Lease Term.

        2.2    Option Terms.

               2.2.1 Option Rights. Landlord hereby grants Tenant two (2)
options to extend the Lease Term for all and not less than all of the Premises
for a period of one year each, provided that the second option term shall expire
on December 31, 2005 (the "Option Terms"), which option shall be exercisable
only by written notice delivered by Tenant to Landlord as provided below,
provided that, as of the date of delivery of each of such notices there is not
an outstanding Event of Default by Tenant. Upon the proper exercise of an option
to extend, the Lease Term, as it then applies to the Premises, shall be extended
for a period of one year if the extension relates to the first option period or
until December 31, 2005, if it relates to the second option period. The rights
contained in this Section 2.2 may only be exercised by Tenant, its "Affiliates"
(as defined in Section 14.5 below) or an assignee of Tenant to whom an
assignment of this Lease has been made in accordance with Article 14 (and not
any sublessee or other transferee of Tenant's interest in this Lease).

               2.2.2 Option Rent. The Base Rent payable by Tenant during the
Option Term (the "Option Rent") shall be calculated at the rate of $1.75 per
"rentable square feet" per month.

               2.2.3 Exercise of Option. The options contained in this Section
2.2 shall be exercised by Tenant, if at all, and only in the following manner:
Tenant shall deliver written notice to Landlord (the "Option Notice") not more
than 12 months or less than nine months prior to the expiration of the initial
Lease Term or the initial Option Term, as applicable, stating that Tenant is
exercising its option. Notwithstanding the foregoing, Tenant may extend the time
within which it must deliver the Option Notice to the date which is six months
prior to the expiration

<PAGE>   6

of the initial Lease Term or the initial Option Term, as applicable, provided
Tenant shall have on or before the date which is nine months prior to such
expiration date delivered to Landlord notice that Tenant is electing to extend
such date by as many as three months in which event the expiration of the
initial Lease Term or Option Term, as applicable, shall be automatically
extended by the same number of months.

                                    ARTICLE 3
                                    BASE RENT

        Commencing on the Rent Commencement Date set forth in Section 8 of the
Summary, Tenant shall pay, without notice or demand, to Landlord or Landlord's
agent at the address set forth in Section 3 of the Summary, or at such other
place in the continental United States as Landlord may from time to time
designate in writing, by check drawn upon a bank located in the United States of
America (for currency which, at the time of payment, is legal tender for private
or public debts in the United States of America), base rent ("Base Rent") as set
forth in Section 8 of the Summary, payable in equal monthly installments as set
forth in Section 8 of the Summary in advance on or before the first day of each
and every month during the Lease Term, without any setoff or deduction
whatsoever, except as otherwise expressly provided in this Lease. If any rental
payment date (including any Rent Commencement Date) falls on a day of the month
other than the first day of such month or if any rental payment is for a period
which is shorter than one month, then the rental for any such fractional month
shall be a proportionate amount of a full calendar month's rental based on the
proportion that the number of days in such fractional month bears to the number
of days in the calendar month during which such fractional month occurs. All
other payments or adjustments required to be made under the terms of this Lease
that require proration on a time basis shall be prorated on the same basis.

                                    ARTICLE 4
                                 ADDITIONAL RENT

        4.1    Additional Rent. In addition to paying the Base Rent specified in
Article 3 of this Lease, beginning on the Rent Commencement Date, Tenant shall
pay as additional rent for each "Expense Year," as that term is defined in
Section 4.2.3 of this Lease, all of the annual "Direct Expenses," as that term
is defined in Section 4.2.2 of this Lease, as if Tenant occupied the entire
Premises. Such additional rent, together with any and all other amounts payable
by Tenant to Landlord pursuant to the terms of this Lease, shall be hereinafter
collectively referred to as the "Additional Rent." The Base Rent and Additional
Rent are herein collectively referred to as the "Rent." All amounts payable
under this Article 4 as Additional Rent shall be payable for the same periods
and in the same manner and place as the Base Rent. Without limitation on other
obligations which shall survive the expiration of the Lease Term, the
obligations of Tenant and Landlord provided for in this Article 4 shall survive
the expiration of the Lease Term.

        4.2    Definitions. As used in this Article 4, the following terms shall
have the meanings hereinafter set forth:

               4.2.1 "Calendar Year" shall mean each calendar year in which any
portion of the Lease Term falls, through and including the calendar year in
which the Lease Term expires.

               4.2.2 "Direct Expenses" shall mean "Operating Expenses" and "Tax
Expenses."

               4.2.3  "Expense Year" shall mean each Calendar Year.

               4.2.4 "Operating Expenses" shall mean all direct and indirect
costs, expenses, and assessments charged to the Real Property with respect to
its efficient and economical operation (including insurance premiums for the
insurance policies described in Sections 10.2, 10.3 and 10.5 below), management,
use, maintenance and repair, other than those which are set forth in Section 6.1
below. Operating Expenses shall not include those items set forth on the
Operating Expense Exclusion list attached hereto as Exhibit C.

               4.2.5 "Tax Expenses" shall mean all federal, state, county, or
local governmental or municipal taxes, fees or other impositions of every kind
and nature, whether general, special, ordinary or extraordinary, (including,
without limitation, real estate taxes, general and special assessments, transit
taxes, leasehold taxes or taxes based upon the receipt of rent, including gross
receipts or sales taxes applicable to the receipt of rent, unless required to be
paid by Tenant, personal property taxes imposed upon the fixtures, machinery,
equipment, apparatus,

<PAGE>   7

systems and equipment, appurtenances, furniture and other personal property used
in connection with the Building), which are allocable to a particular Expense
Year (without regard to any different fiscal year used by such governmental or
municipal authority) in connection with the ownership, leasing and operation of
the Real Property or Landlord's interest therein.

                      4.2.5.1 Tax Expenses shall include, without limitation:

               (i)    Any governmental tax on Landlord's rent, right to rent or
other income from the Real Property or as against Landlord's business of leasing
any of the Real Property;

               (ii)   Any assessment, tax, fee, levy or charge in addition to,
or in substitution, partially or totally, of any assessment, tax, fee, levy or
charge previously included as of the date hereof within the definition of real
property tax, it being acknowledged by Tenant and Landlord that Proposition 13
was adopted by the voters of the State of California in the June 1978 election
("Proposition 13") and that assessments, taxes, fees, levies and charges may be
imposed by governmental agencies for such services as fire protection, street,
sidewalk and road maintenance, refuse removal and for other governmental
services formerly provided without charge to property owners or occupants, and,
in further recognition of the decrease in the level and quality of governmental
services and amenities as a result of Proposition 13, Tax Expenses shall also
include any governmental assessments or contribution towards a governmental
cost-sharing agreement for the purpose of augmenting or improving the quality of
services and amenities normally provided by governmental agencies. It is the
intention of Tenant and Landlord that all such new and increased assessments,
taxes, fees, levies and charges and all similar assessments, taxes, fees, levies
and charges be included within the definition of Tax Expenses for purposes of
this Lease;

               (iii)  Any governmental assessment, tax, fee, levy, or charge
allocable to or measured by the area of the Premises or the rent payable
hereunder, including, without limitation, any gross income tax with respect to
the receipt of such rent; and

               (iv)   Any assessment, tax, fee, levy or charge, upon this
transaction or any document to which Tenant is a party, creating or transferring
an interest or an estate in the Premises.

                      4.2.5.2 With respect to any assessment otherwise
includable within Tax Expenses that may be levied against or upon the Real
Property and that under the laws then in force may be evidenced by improvement
or other bonds, or may be paid in annual installments, there shall be included
within the definition of Tax Expenses with respect to any tax fiscal year only
the amount currently payable on such bonds, including interest, for such tax
fiscal year, or the current annual installment for such tax fiscal year, in each
case utilizing the payment or installment method which will minimize the amount
of Tax Expenses.

                      4.2.5.3 If the method of taxation of real estate
prevailing at the time of execution hereof shall be, or has been, altered so as
to cause the whole or any part of the taxes now, hereafter or heretofore levied,
assessed or imposed on real estate to be levied, assessed, or imposed upon
Landlord, wholly or partially, as a capital levy or otherwise, or on or measured
by the rents received therefrom, then such new or altered taxes attributable to
the Real Property shall be included within the term "Tax Expenses" except that
the same shall not include any enhancement of said tax attributable to other
income of Landlord.

                      4.2.5.4 Landlord may in good faith protest any Tax
expenses with the appropriate governing authorities, and any reasonable expenses
reasonably incurred by Landlord in attempting to protest, reduce or minimize Tax
Expenses shall be included in Tax Expenses in the Expense Year such expenses are
paid, provided that such expenses shall not exceed the savings which may
reasonably be expected to be realized as a result of such action. Landlord shall
endeavor to notify Tenant of any proposed increases in the assessed value of the
Property, and if Landlord elects not to protest any such increase, Tenant shall
have the right to do so.

                      4.2.5.5 Tax refunds shall be deducted from Tax Expenses in
the Expense Year to which the same are attributable.

                      4.2.5.6 Subject to the terms of this Section 4.2.5, if Tax
Expenses for any period during the Lease Term or any extension thereof are
increased after payment thereof by Landlord for any reason, including, without
limitation, error or reassessment by applicable governmental or municipal
authorities, such increase shall be included in Tax Expenses in the Expense Year
to which such increase is attributable, and Tenant shall pay Landlord

<PAGE>   8

Tenant's share of such increased Tax Expenses to the extent there exists an
excess for such Expense Year.

                      4.2.5.7 Notwithstanding anything to the contrary contained
in this Lease, there shall be excluded from Tax Expenses (i) all excess profits
taxes, franchise taxes, gift taxes, capital stock taxes, inheritance and
succession taxes, estate taxes, federal and state income taxes, and other taxes
to the extent applicable to Landlord's general or net income, (ii) any items
included as Operating Expenses, and (iii) any items paid by Tenant under Section
4.4 of this Lease.

               4.3    Calculation and Payment of Additional Rent.

                      4.3.1 Payment of Direct Expenses. For any Expense Year
ending or commencing within the Lease Term, Tenant shall pay directly, or, as
applicable, to Landlord, in the manner set forth in Section 4.3.2, below, and as
Additional Rent, an amount equal to the Direct Expenses for such Expense Year.

                      4.3.2 Statement of Actual Direct Expenses and Payment by
Tenant. Landlord shall endeavor to give to Tenant on or before the first day of
April (and must deliver by July 1) following the end of each Expense Year, a
statement (the "Statement"), certified by an appropriate official of Landlord,
which shall state that portion of the Direct Expenses not directly paid by
Tenant, and which portion is allocable to such preceding Expense Year. Tenant
shall pay, within thirty (30) days after receipt of the Statement, the full
amount of the Landlord-billed Direct Expenses for such Expense Year, less the
amounts, if any, paid during such Expense Year as an "Estimated Payment," as
that term is defined in Section 4.3.3, below. In the event the amount paid by
Tenant as an Estimated Payment exceeds the amount of the Landlord-billed Direct
Expenses, Tenant shall receive a credit against the next payment of Additional
Rent due under this Lease. The failure of Landlord to timely furnish the
Statement for any Expense Year shall not prejudice either party from enforcing
its rights under this Article 4; provided, however, that except with regard to
the recalculation of those items of Direct Expenses which are not under
Landlord's reasonable control, specifically including Tax Expenses and public
utility charges, Landlord shall not be permitted to add to Direct Expenses or
bill for the first time any portion of Direct Expenses more than 13 months
following the last day of the Expense Year to which such Direct Expenses relate.

               Subject to the provisions of this Lease, even though the Lease
Term has expired and Tenant has vacated the Premises, when the final
determination is made of the Direct Expenses for the Expense Year in which this
Lease terminates, (i) if Tenant has not paid all of the Direct Expenses for such
Expense Year, Tenant shall pay to Landlord, within thirty (30) days after
receipt of a reasonably detailed bill therefor, an amount as calculated pursuant
to the provisions of Section 4.3.1 of this Lease, and (ii) if Tenant has made an
overpayment of Additional Rent, Landlord shall pay the same to Tenant within
thirty (30) days of such determination. The provisions of this Section 4.3.2
shall survive the expiration or earlier termination of the Lease Term.

                      4.3.3 Statement of Estimated Direct Expenses. In addition,
Landlord shall endeavor to give Tenant a yearly expense estimate statement (the
"Estimate Statement") on or before the Rent Commencement Date and thereafter
within one hundred twenty (120) days and no later than one hundred eighty (180)
days after the commencement of each new Expense Year, which Estimate Statement
shall set forth Landlord's reasonable estimate (the "Estimate") of what the
total amount of Landlord-billed Direct Expenses for the then-current Expense
Year shall be (the "Estimated Payment"). The failure of Landlord to timely
furnish the Estimate Statement for any Expense Year shall not preclude Landlord
from enforcing its rights to collect any Estimated Payment under this Article 4.
Tenant shall pay, within thirty (30) days of Tenant's receipt of such Estimate
Statement, a fraction of the Estimated Payment for the then-current Expense Year
(reduced by any amounts paid pursuant to the last sentence of this Section
4.3.3). Such fraction shall have as its numerator the number of months which
have elapsed in such current Expense Year to the month of such payment, both
months inclusive, and shall have twelve (12) as its denominator. Until a new
Estimate Statement is furnished, Tenant shall pay monthly, with the monthly Base
Rent installments, an amount equal to one-twelfth (1/12) of the total Estimated
Payment set forth in the previous Estimate Statement delivered by Landlord to
Tenant.

               4.4    Taxes and Other Charges for Which Tenant Is Responsible.
Tenant shall reimburse Landlord, within thirty (30) days of Tenant's receipt of
a reasonably detailed written demand accompanied by appropriate supporting
evidence (but in any case prior to delinquency), for any and all taxes or
assessments required to be paid by Landlord (except to the extent included in
Tax Expenses by Landlord), excluding state, local and federal personal or
corporate income taxes measured by the net income of Landlord from all sources
and estate and inheritance taxes, whether or not now customary or within the
contemplation of the parties hereto, when said taxes

<PAGE>   9

are required to be paid by Tenant and said taxes are measured by or reasonably
attributable to the cost of Tenant's equipment, furniture, fixtures and other
personal property located in the Premises, or by the cost of all leasehold
improvements made in or to the Premises by or for Tenant.

               4.5    Landlord's Books and Records; Tenant's Audit Rights.
Tenant or Tenant's authorized representatives (the "Outside Agent") may, after
reasonable notice to Landlord and at reasonable times, examine, inspect, audit,
and copy the records of Landlord regarding each Statement at Landlord's office
in the continental United States during normal business hours within one (1)
year after the furnishing of the Statement. The Outside Agent shall be a
nationally or regionally recognized firm of certified public accountants ("CPA")
and shall be engaged on a non-contingency fee basis. Unless Tenant takes written
exception to any item within two (2) years after the furnishing of that
Statement (or any corrected Statement), the Statement shall be considered as
final and accepted by Tenant except that Landlord may, at any time during that
two-year period, submit a corrected Statement to Tenant if Operating Expenses
and Tax Expenses on the original Statement were overstated or understated.

               The payment of the amounts shown on the Statement by Tenant shall
not preclude Tenant from questioning the correctness of any item of the
Statement subject to the rights in this Section 4.5, and Tenant shall continue
to pay the amounts reflected on the Statement pending a final determination of
the correctness of the items shown thereon. Tenant and/or its Outside Agent
shall have the right, at Tenant's cost and on no less than ten (10) days' prior
written notice to Landlord and during Landlord's normal business hours, to audit
Landlord's records regarding Operating Expenses and Tax Expenses. Such an Audit
shall be performed in Landlord's office in the continental United States.

               To facilitate an audit by Tenant, Landlord shall keep its books
and records applicable to Operating Expenses and Tax Expenses available to
Tenant on a reasonable basis for the longer of (a) two (2) years after the Lease
Expiration Date or (b) one (1) year after the resolution of any dispute
concerning Operating Expenses and Tax Expenses. Any audit of Operating Expenses
and Tax Expenses for any calendar year must be begun within two (2) years after
Landlord's delivery of the Statement for that year, or the right to audit
Operating Expenses and Tax Expenses for that year shall be deemed waived.

               Tenant agrees diligently to pursue and complete (or to drop) any
audit begun by Tenant, and Landlord agrees it shall not unreasonably interfere
with the execution of Tenant's audit rights. Landlord shall either accept or
reject any such audit within 30 days of the receipt of same. If Landlord shall
reject such audit and the parties cannot otherwise agree on any adjustments,
then Landlord and Tenant shall select a mutually acceptable accounting firm to
conduct such audit, the results of which shall be binding upon the parties. The
cost of such audit shall be borne equally by the parties, and Tenant shall bear
all fees and costs of its audit, unless it is ultimately determined that
Operating Expenses and Tax Expenses taken as a whole for any calendar year were
overstated by four percent (4%) or more. In that event, Landlord shall pay for
the reasonable costs of both audits. Pending resolution of any disputes over
Operating Expenses and Tax Expenses, Tenant shall pay to Landlord any Additional
Rent alleged to be due from Tenant as reflected on Landlord's Statement or any
invoice issued on the basis of Landlord's Statement.

                                    ARTICLE 5
                                 USE OF PREMISES

               5.1    Permitted Use. Tenant shall use the Premises for general
office and administrative purposes only.

               5.2    Prohibited Uses. Tenant shall not use the Premises or any
part thereof for any use or purpose contrary to the provisions of the Rules and
Regulations listed in Exhibit D and those certain covenants, conditions and
restrictions listed on Exhibit E (the "CC&Rs"). This Lease is subject in all
respects to the CC&Rs and the Bylaws of the "Associations" established under the
CC&Rs. Landlord is not aware of any violations of the CC&Rs. Tenant shall comply
with the recorded covenants, conditions and restrictions now or (so long as no
negative impact affects the Premises or Tenant's occupancy of the Premises or
restricts in any material way its rights under the Lease) hereafter affecting
the Premises and with all reasonable rules adopted from time to time by the
Associations established under the CC&Rs. Tenant shall not use or allow another
person or entity to use any part of the Premises for the storage, treatment,
manufacture or sale of "Hazardous Material" as that term is defined in Section
29.24 of this Lease, other than as may be permitted by, and used in accordance
with, all applicable laws, regulations and ordinances pertaining to the
Premises.

<PAGE>   10

                                    ARTICLE 6
                             SERVICES AND UTILITIES

               6.1    In General. From and after the date of this Lease, Tenant
will be responsible, at its sole cost and expense, for the furnishing of all
services and utilities to the Premises, including, but not limited to heating,
ventilation and air-conditioning, electricity, water, telephone, janitorial and
security services, window washing and landscaping services. Landlord represents
that to the best of its knowledge all such utilities are available to the
Premises and may be utilized by Tenant without the payment of any hook up or
similar charges other than customary deposits.

        6.2    Interruption of Use. Tenant agrees that except with respect to
Landlord's gross negligence or intentional acts, Landlord shall not be liable
for damages, by abatement of Rent or otherwise, for failure of Tenant to receive
any service (including telephone and telecommunication services) or utility for
any reason whatsoever, or for any diminution in the quality or quantity thereof,
and such failures or delays or diminution shall never be deemed to constitute an
eviction or disturbance of Tenant's use and possession of the Premises or
relieve Tenant from paying Rent or performing any of its obligations under this
Lease, except as provided in this Lease to the contrary. Furthermore, Landlord
shall not be liable under any circumstances for a loss of, or injury to,
property or for injury to, or interference with, Tenant's business, including,
without limitation, loss of profits, however occurring, through or in connection
with or incidental to any such failure of Tenant to receive any services or
utilities.

        6.3    No Obligation. Landlord shall have no obligation to provide any
services or utilities to the Premises including, but not limited to heating,
ventilation and air-conditioning, electricity, water, telephone, janitorial and
security services, window washing and landscaping services. Landlord represents
that to the best of its knowledge all Building systems are in proper working
order.

                                    ARTICLE 7
                                     REPAIRS

        7.1    Tenant's Obligations.

               7.1.1 Tenant Required Actions. Subject to the provisions of
Section 7.2, Articles 11 and 13 and Section 29.29, Tenant shall, at Tenant's
sole cost and expense, operate, keep, and maintain, and as necessary, repair,
restore, replace, and make any capital improvements to (collectively, the
"Tenant Required Actions") (i) the structural portions of the Building
(excluding the structural skeleton of the Building described in Section 7.2
below), including the ceilings, floor surface, interior walls and wall covering,
shafts, stairs, parking areas, stairwells, elevator cabs, washrooms, and
Building mechanical, electrical and telephone closets (collectively, "Building
Structure"), and (ii) the Building mechanical, electrical, gas, life safety,
plumbing, sprinkler systems, elevators, restrooms, and heating, ventilation and
air-conditioning systems (the "Building Systems"), in good order and repair and
in good and safe working order and condition at all times during the Lease Term,
including any items of the Building Structure or Building Systems included in
the "Tenant Improvements", as that term is defined in Section 1.3, or
"Alterations", as that term is defined in Section 8.1 (collectively, the "Tenant
Maintenance Items"). All repairs and maintenance of the Premises by Tenant as
required under this Lease shall be performed in a good and safe manner by
contractors and other personnel reasonably approved by Landlord, and in
compliance with the provisions of Article 8 below. Notwithstanding the foregoing
or any other provision of this Lease to the contrary, in the event any of the
Tenant Required Actions involve expenditures which would be capitalized under
generally accepted accounting principles, then Landlord shall reimburse Tenant
for such expenditures within 30 days of the request therefor accompanied by
supporting invoices. Tenant shall also be obligated to pay, as an Operating
Expense, the cost of any capital improvements made by Landlord to all or any
portion of the Premises after the Lease Commencement Date which are required for
Tenant's use of the Premises under any governmental law or regulation which was
not applicable as of the date of commencement of construction of the Building by
Landlord or any capital expenditures reimbursed to Tenant pursuant to the
preceding sentence; provided, however, that each such capital expenditure shall
be amortized (including interest on the unamortized cost at Landlord's then
current cost of funds) over its useful life as Landlord shall reasonably
determine, provided, however, that Tenant shall not be responsible for such
amortization payments to the extent that the capital expenditure was for an item
as to which Landlord is solely responsible under the provisions of Section 7.2
below.

        7.1.2 Maintenance Contracts. As a part of Tenant's Required Actions,
Tenant shall, at Tenant's sole cost and expense, maintain contracts for the
inspection, maintenance and service of the (i) heating, air conditioning and

<PAGE>   11

ventilation equipment, (ii) boiler, fired or unfired pressure vessels, (iii)
fire sprinkler and/or standpipe and hose or other automatic fire extinguishing
systems, including fire alarm and/or smoke detection, and (iv) electrical
systems.

        7.2    Landlord's Obligations. It is intended by the parties hereto that
Landlord have no obligation, in any manner whatsoever, to take any of the Tenant
Required Actions with respect to the Building Systems or Building Structure,
except as set forth in this Section 7.2, below. It is the intention of the
parties that the terms of this Lease govern the respective obligations of the
parties as to maintenance and repair of the Premises. Tenant waives the right to
make repairs at the expense of Landlord or to terminate this Lease by reason of
any needed repairs under Sections 1941 and 1942 of the California Civil Code, or
any similar law, statute, or ordinance, now or hereafter in effect.
Notwithstanding the foregoing, during the Lease Term, Landlord shall maintain
and repair at its sole cost and expense the structural skeleton of the Building
consisting only of the floor slabs, foundation, roof structure, roof membrane,
exterior walls and exterior glass and mullions ("Landlord Maintenance Items").

                                    ARTICLE 8
                           CONDITIONS AND ALTERATIONS

        8.1    Landlord's Consent to Alterations. Tenant may, without the need
to obtain the consent or approval of Landlord, make any improvements,
alterations, additions or changes to the Premises the cost of which does not
exceed $30,000.00 (exclusive of wall or floor coverings) in the aggregate
(collectively, the "Alterations") desired by Tenant which do not create a Design
Problem, by providing Landlord with written notice not less than six (6)
business days prior to the commencement thereof. For purposes of this Lease,
"Design Problem" shall mean any alteration, repair, modification, or improvement
by Tenant which (a) materially or adversely affects the Building Systems or
Building Structure, (b) is not in compliance with applicable laws, or (c)
affects the exterior appearance of the Building. Tenant may not make any
Alteration which may create a Design Problem (collectively, "Consent
Alterations"), without first procuring the prior written consent of Landlord to
such Alterations, which consent shall be requested by Tenant not less than ten
(10) business days prior to the commencement thereof, and which consent shall
not be unreasonably withheld by Landlord and shall state whether the consent
alterations must be removed on termination of the Lease; provided if the Design
Problem materially or adversely affects the Building System or Building
Structure, then Landlord may condition its consent upon Tenant assuring that the
proposed Alteration complies with applicable Laws and complies with other
conditions that Landlord may reasonably require of Tenant. In the event Tenant
proposes to make a Consent Alteration, Tenant's notice regarding the proposed
Alteration shall include the plans and specifications for the Alterations.
Landlord shall grant or withhold its consent to any Consent Alterations within
ten (10) business days of receipt of Tenant's notice; Landlord's failure to
respond within three (3) business days after receipt by Landlord of a second
notice given after such ten (10) business day period shall be deemed to evidence
Landlord's approval with respect to the same.

        8.2    Manner of Construction. In connection with the making of
Alterations, except for minor or purely cosmetic Alterations such as painting or
replacement of wall or floor covering ("Finish Work"), Tenant shall utilize only
contractors and subcontractors who normally and regularly perform similar work
in Comparable Buildings, or which have been otherwise approved by Landlord,
which approval shall not be unreasonably withheld or delayed. Subject to the
terms of Article 24, below, Tenant shall construct all Alterations in
conformance with any and all applicable rules and regulations of any federal,
state, county or municipal code or ordinance and, when required pursuant to
applicable Law, pursuant to a valid building permit issued by the City of
Irvine. Landlord's approval of the plans, specifications and working drawings
for Tenant's Alterations shall create no responsibility or liability on the part
of Landlord for their completeness, design sufficiency, or compliance with all
laws, rules and regulations of governmental agencies or authorities. All work
with respect to any Alterations must be done in a good and workmanlike manner
and diligently prosecuted to completion. Upon completion of any Alterations,
Tenant agrees to cause a Notice of Completion to be recorded in the office of
the Recorder of Orange County in accordance with Section 3093 of the Civil Code
of the State of California or any successor statute, and, except as to Finish
Work, Tenant shall deliver to Landlord a reproducible copy of the construction
set of drawings of the Alterations (or, at Tenant's election, a copy of the
final working drawings for such Alterations, with field changes shown thereon)
within thirty (30) days following completion thereof.

        8.3    Construction Insurance. Prior to the commencement of any
Alteration, Tenant shall provide Landlord with reasonable evidence that Tenant
or Tenant's contractors carries "Builder's All Risk" insurance and worker's
compensation insurance in a commercially reasonable amount (but not less than
$1,000,000 of commercial general liability) given the scope of such Alterations,
covering the construction of such Alterations, it being understood and agreed
that all of such Alterations shall be insured by Tenant pursuant to Article 10
of this Lease

<PAGE>   12

immediately upon completion thereof. In addition, Landlord may, in its
discretion, require any "Transferee," as that term is defined in Section 14.1,
below, other than any Affiliate, to obtain a lien and completion bond or some
alternate form of security satisfactory to Landlord in an amount sufficient to
ensure the lien-free completion of such Alterations and naming Landlord as a
co-obligee.

        8.4    Landlord's Property. Subject to the terms of this Lease, all
Alterations, improvements, fixtures and/or equipment which may be installed or
placed in or about the Premises, from time to time, shall be at the sole cost of
Tenant and shall be and become the property of Landlord, except that Tenant
shall have the right to remove any such Alterations, not attached or built into
the Premises and trade fixtures which Tenant can reasonably substantiate to
Landlord have not been paid for with any tenant improvement allowance funds
provided to Tenant by Landlord, together with any non-affixed personal property
in the Premises and Tenant's "tele-data" equipment, provided Tenant repairs any
damage to the Premises and Building caused by such removal. Upon the expiration
or early termination of the Lease Term, Landlord may, by written notice to
Tenant, require Tenant at Tenant's expense to remove any improvements in the
Premises, including any cabling and wiring, Alterations and Tenant Improvements
with respect to which Landlord designated, in its approval of the plans and
specifications for such Alterations and Tenant Improvements , that the same are
to be removed at the end of the Term of the Lease, and repair any damage to the
Premises and Building caused by such removal, and leave the Premises in a
broom-clean condition. If Tenant fails to complete such removal and/or to repair
any damage caused by the removal of any such improvement, after notice to Tenant
from Landlord, and a reasonable opportunity (based on the then current
circumstances) for Tenant to complete such removal and/or repair, Landlord may
do so and may charge the cost thereof to Tenant.

                                    ARTICLE 9
                             COVENANT AGAINST LIENS

        Tenant has no authority or power to cause or permit any lien or
encumbrance of any kind whatsoever, whether created by act of Tenant, operation
of law or otherwise, to attach to or be placed upon the Real Property, Building
or Premises, and any and all liens and encumbrances created by Tenant shall
attach to Tenant's interest only. Landlord shall have the right at all times to
post and keep posted on the Premises customary notices of non-responsibility
which it deems necessary for protection from such liens. Tenant covenants and
agrees not to suffer or permit any lien of mechanics or materialmen or others to
be placed against the Real Property, the Building or the Premises with respect
to work or services claimed to have been performed for or materials claimed to
have been furnished to Tenant or the Premises, and, in case of any such lien
attaching or notice of any such lien, Tenant covenants and agrees to cause it to
be immediately released and removed of record or to protest such lien by filing
a bond within ten (10) business days after notice by Landlord, and if Tenant
shall fail to do so Landlord, at its sole option, may, after an additional five
(5) business days notice to Tenant, take all action necessary to release and
remove such lien, without any duty to investigate the validity thereof, and all
sums, costs and expenses, including reasonable attorneys' fees and costs,
incurred by Landlord in connection with such lien shall be deemed Additional
Rent under this Lease and shall be due and payable by Tenant within thirty (30)
days of receipt of an invoice therefor.

                                   ARTICLE 10
                                    INSURANCE

        10.1   Indemnification and Waiver.

               10.1.1 Waiver. Tenant hereby assumes all risk of damage to
property or injury to persons in or upon the Premises from any cause whatsoever
and agrees that Landlord, its partners and their respective officers, agents,
servants, and employees (collectively, the "Landlord Parties") shall not be
liable for any damage either to person or property or resulting from the loss of
use thereof, which damage is sustained by Tenant or by other persons claiming
through Tenant, except to the extent caused by the gross negligence or wilful
misconduct of the Landlord Parties, subject to the provisions of Section 10.4
hereof.

               10.1.2 Tenant's Indemnity. Tenant shall indemnify, defend,
protect, and hold harmless Landlord and the Landlord Parties from any and all
claims, loss, cost, damage, expense and liability (including without limitation
court costs and reasonable attorneys' fees) (collectively, "Claims") incurred in
connection with or arising from (1) any cause in or on the Premises during the
Lease Term or any holdover period and (2) subject to the terms of the last
sentence of Section 10.1.3, below, any acts or omissions or wilful misconduct of
Tenant or any person

<PAGE>   13

claiming by, through or under Tenant, its partners, and their respective
officers agents, servants or employees of Tenant or any such person
(collectively, "Tenant Parties"), in or on or about the Premises or the Real
Property either prior to, during, or after the expiration of the Lease Term,
provided that, except as set forth below, the terms of the foregoing indemnity
shall not apply to the extent such Claims arise from (a) the gross negligence,
intentional acts or wilful misconduct of the Landlord Parties in connection with
the Landlord Parties' activities in, on or about the Real Property, including
the Premises, subject to the provisions of Section 10.4 hereof, or (b)
environmental conditions existing prior to the date hereof. Notwithstanding the
foregoing, because Tenant must carry insurance pursuant to Section 10.3.2,
below, to cover its personal property and all office furniture, trade fixtures,
office equipment and merchandise within the Premises and the Tenant Improvements
and Alterations, Tenant hereby agrees to protect, defend, indemnify and hold
Landlord harmless from any Claim with respect to any such property within the
Premises, to the extent such Claim is covered by Tenant's insurance, even if
resulting from the negligence or wilful misconduct of the Landlord Parties.

               10.1.3 Landlord's Indemnity. Landlord shall indemnify, defend,
protect, and hold harmless Tenant and the Tenant Parties from any Claims
incurred in connection with or arising from (1) any cause in or about the Real
Property during the Lease Term (to the extent covered by Landlord's commercial
general liability insurance policies carried pursuant to the terms of Section
10.2 below), or (2) any negligent acts or omissions or wilful misconduct of any
of the Landlord Parties in, on, or about the Premises or the Real Property
(subject to the terms of the last sentence of Section 10.1.2, above), either
prior to, during, or after the expiration of the Lease Term, provided that,
except as set forth below, the terms of the foregoing indemnity shall not apply
to the extent such Claims arise from the negligence or wilful misconduct of the
Tenant Parties in connection with the Tenant Parties' activities in, on, or
about the Real Property. Notwithstanding the foregoing, because Landlord is
required to maintain pursuant to the terms of Section 10.2, below, insurance on
the Building and Real Property and Tenant compensates Landlord for such
insurance as part of Operating Expenses, Landlord hereby agrees to protect,
defend, indemnify and hold Tenant harmless from any Claims with respect to the
Building and Landlord's equipment and property on the Real Property to the
extent such Claim is covered by Landlord's insurance (or would have been covered
by insurance Landlord is obligated to provide hereunder), even if resulting from
the negligent acts or wilful misconduct of the Tenant Parties.

               10.1.4 Waiver of Consequential Damages. Notwithstanding any
contrary provision of this Lease, neither Landlord nor Tenant shall be liable to
the other party for any consequential damages for a breach or default under this
Lease (excluding fraud or wilful misconduct), provided that this sentence shall
not be applicable to any consequential damages which may be incurred by the
Landlord Parties relating to or in connection with any holdover by Tenant
following the expiration of the Lease Term, subject to and in accordance with
the provisions of Article 16 hereof.

               10.1.5 General Terms. The provisions of this Section 10.1 shall
survive the expiration or sooner termination of this Lease with respect to any
claims or liability occurring prior to such expiration or termination.

        10.2   Landlord's Insurance. Landlord shall maintain during the Lease
Term commercial general liability insurance, "all-risk" insurance insuring the
Building against loss or damage due to fire and other casualties covered within
the classification of fire and extended coverage, vandalism coverage and
malicious mischief, sprinkler leakage, water damage, earthquake and special
extended coverage. Such coverage shall be written for one hundred percent (100%)
of the replacement cost value of the Building, without deduction for
depreciation, and shall be from such companies, and on such other terms and
conditions as Landlord may from time to time reasonably determine. Such
insurance coverage shall also include a rental loss endorsement (12 months)and
one or more loss payee endorsements in favor of the holders of any mortgages or
deeds of trust encumbering the interest of Landlord in the Real Property or the
ground or underlying lessors of the Real Property, or any portion thereof. Such
policy shall also contain a "stipulated value" endorsement deleting any
co-insurance provisions. Notwithstanding the foregoing provisions of this
Section 10.2, the coverage and amounts of insurance carried by Landlord in
connection with the Building shall at a minimum be comparable to the coverage
and amounts of insurance which are carried by institutional landlords of
Comparable Buildings. Landlord shall also carry Worker's Compensation and
Employee's Liability coverage as required by applicable law. Upon inquiry by
Tenant, from time to time, Landlord shall inform Tenant of all such insurance
carried by Landlord and provide Tenant with certificates relating thereto.
Tenant shall, at Tenant's expense, comply as to the Premises with all customary
insurance company requirements pertaining to the use of the Premises to the
extent consistent with the insurance company requirements imposed at the
Comparable Buildings. If Tenant's conduct or use of the Premises other than for
the uses permitted under Section 5.1 of this Lease causes any increase in the
premium for such insurance policies, then Tenant shall, following notice from
Landlord either (i) cease such conduct or use, or (ii) reimburse Landlord for
any such increase. Tenant, at Tenant's expense, shall comply with all rules,
orders, regulations or requirements of the

<PAGE>   14

American Insurance Association (formerly the National Board of Fire
Underwriters) and with any similar body to the extent consistent with the rules,
orders, regulations or requirements imposed at the Comparable Buildings.
Landlord may carry earthquake and flood insurance with a deductible of not less
than five percent (5%) of the replacement value of the Building at the time of
loss and not more than the amount of deductible then customarily maintained
under similar insurance with respect to Comparable Projects, and Tenant will
reimburse Landlord for the premium cost thereof.

        10.3   Tenant's Insurance. Tenant shall maintain the following coverages
in the following amounts.

               10.3.1 Commercial General Liability Insurance covering the
insured against claims of bodily injury, personal injury and property damage
arising out of Tenant's operations or use of the Premises, including a Broad
Form Commercial General Liability endorsement covering the insuring provisions
of this Lease and covering the performance by Tenant of the indemnity agreements
set forth in Section 10.1 of this Lease, for limits of liability not less than:

<TABLE>
<S>                                         <C>
        Bodily Injury and                   $5,000,000 each occurrence
        Property Damage Liability           $5,000,000 annual aggregate

        Personal Injury Liability           $5,000,000 each occurrence
                                            $5,000,000 annual aggregate
</TABLE>

               10.3.2 "All-Risk" Insurance, with commercially reasonable
deductibles, covering (i) all office furniture, trade fixtures, office
equipment, merchandise and all other items of Tenant's property on the Premises
installed by, for, or at the expense of Tenant, (ii) the Tenant Improvements,
and (iii) all other improvements, alterations and additions to the Premises,
including any improvements, alterations or additions installed at Tenant's
request above the ceiling of the Premises or below the floor of the Premises.
Such insurance shall be written for the full replacement cost value, new,
without deduction for depreciation, of the covered items and in amounts that
meet any co-insurance clauses of the policies of insurance and may include, at
Tenant's sole option, a vandalism and malicious mischief endorsement, and
sprinkler leakage coverage.

               10.3.3 Form of Policies. The minimum limits of policies of
liability insurance required of Tenant or Landlord under this Lease shall in no
event limit the liability of Tenant or Landlord under this Lease. Each party's
insurance shall (i) name the other party (including, as to Landlord, the
"Lender," as described in Article 18 below), as an additional insured; (ii)
specifically cover the indemnity obligations of the insuring party set forth in
Section 10.1 of this Lease to the extent customarily and commercially available;
(iii) be issued by an insurance company having a rating of not less than B+/VII
in Best's Insurance Guide or which is otherwise reasonably acceptable to the
named party and licensed to do business in the State of California; (iv) be
primary insurance as to all claims thereunder and provide that any insurance
carried by the named party is not excess and is non-contributing with any
insurance requirement of the insuring party; and (v) contain a cross-liability
endorsement or severability of interest clause acceptable to the named party.
The insuring party shall cause its insurance carrier to provide that said
insurance carrier shall give thirty (30) days' (or ten days' in the event of
nonpayment of the premium) prior written notice to the named party and any
mortgagee or ground or underlying lessor of the named party prior to the date
said insurance is canceled. The parties agree that the insuring party may
satisfy its insurance requirements herein with a "blanket" or "umbrella"
insurance policy covering the Premises and other premises of the insuring party.
The insuring party shall deliver said policy or policies or certificates thereof
to the named party on or before the date that Tenant first enters the Premises
for purposes of performing any work or installing any of its fixtures, equipment
or personal property and at least thirty (30) days before the expiration dates
thereof. In the event the insuring party shall fail to procure such insurance,
or to deliver such policies or certificate at least thirty (30) days before the
expiration dates thereof, the named party may, at its option, if such failure
continues for ten (10) business days following written notice to the insuring
party, procure such policies for the account of the insuring party, and the cost
thereof shall be paid to the named party as Additional Rent within thirty (30)
days after delivery to the insuring party of bills therefor.

        10.4   Subrogation. Landlord and Tenant agree to have their respective
insurance companies issuing property damage insurance waive any rights of
subrogation that such companies may have against Landlord or Tenant, as the case
may be. Landlord and Tenant hereby waive any right that either may have against
the other on account of any loss or damage to their respective property to the
extent such loss or damage is insurable under the

<PAGE>   15

types of policies of insurance set forth in Sections 10.2 and 10.3.2, above.

        10.5   Additional Insurance Obligations. Tenant shall carry and maintain
during the entire Lease Term, at Tenant's sole cost and expense, such increased
amounts of the insurance required to be carried by Tenant pursuant to this
Article 10, and such other reasonable types of insurance coverage (exclusive, as
to insurance required under the provisions of Section 10.3, of earthquake and
flood insurance) and in such reasonable amounts covering the Premises and
Tenant's operations therein, as may be reasonably requested by Landlord;
provided that such requests shall be consistent with the treatment of comparable
tenants in the Comparable Buildings.

                                   ARTICLE 11
                             DAMAGE AND DESTRUCTION

        11.1   Repair of Damage to Premises by Landlord. Except in the case
where Landlord or its agents are already aware of the same, Tenant shall notify
Landlord of any material damage to the Premises resulting from fire or any other
casualty promptly following the date Tenant becomes aware of such damage. If the
Building or Premises shall be damaged by fire or other casualty, Landlord shall
promptly and diligently, subject to reasonable delays for insurance adjustment
or other matters beyond Landlord's reasonable control, and subject to all other
terms of this Article 11, restore the Building, the Building Structure and
Building Systems, except for those items which were constructed by or for the
benefit of Tenant above and beyond the Tenant Improvement Allowance (the "Base,
Shell and Core") . Such restoration shall be to substantially the same condition
of the Base, Shell and Core prior to the casualty, except for modifications
required by zoning and building codes and other laws. Notwithstanding any other
provision of this Lease, upon the occurrence of any damage to the Premises,
Tenant shall assign to Landlord (or to any party designated by Landlord) all
insurance proceeds payable to Tenant under Tenant's insurance required under
items (ii) and (iii) of Section 10.3.2 of this Lease, and Landlord shall repair
any injury or damage to the property covered by the proceeds being assigned.
Except as provided below with respect to the termination of the Lease, if the
cost of restoration of the Base, Shell and Core shall exceed the amount of
insurance proceeds scheduled to be received by Landlord from Landlord's
casualty, earthquake and/or flood insurance due to the deductible amounts under
such insurance (which deductible amounts shall not be in excess of commercially
reasonable amounts for Comparable Buildings), Tenant shall pay such shortfall
(not to exceed the deductible amounts permitted under this Lease or in the event
of earthquake damage, the first $150,000 of such deductible amount during the
Initial Term or the first $159,000 during any Option Terms) to Landlord prior to
Landlord's repair of the damage to the Base, Shell and Core. If the cost of such
repair to the Tenant Improvements by Landlord is estimated, after review of the
costs by Tenant, to exceed the amount of insurance proceeds scheduled to be
received by Landlord from Tenant's insurance carrier, as assigned by Tenant,
Tenant shall pay any such short fall to Landlord prior to Landlord's repair of
the damage. In the event this Lease shall terminate as a result of such damage,
(i) Tenant shall assign to Landlord the right to receive any insurance proceeds
received from Tenant's insurance carrier related to the Tenant Improvements
constructed utilizing the proceeds of the Tenant Improvement Allowance, and (ii)
Tenant shall retain the insurance proceeds related to those of the Tenant
Improvements which were constructed utilizing funds provided by Tenant over and
above the Tenant Improvement Allowance. Tenant shall retain all insurance
proceeds related to Tenant's personal property, furniture, fixtures and
equipment. In connection with such repairs and replacements, Tenant shall, prior
to the commencement of construction of the Tenant Improvements, submit to
Landlord, for Landlord's review and approval, which approval shall not be
unreasonably withheld, conditioned, or delayed, all plans, specifications and
working drawings relating thereto, and Tenant shall have the right to alter the
design of the previously existing Tenant Improvements, provided that such
redesign shall not delay the repairs and restoration, and Tenant shall select
the contractors to perform such improvement work; provided, however, that
Landlord shall have the right to approve the contractor and the primary
subcontractors relating to the Tenant Improvements, which approval shall not be
unreasonably withheld, conditioned or delayed. Landlord shall not be liable for
any inconvenience or annoyance to Tenant or its visitors, or injury to Tenant's
business resulting in any way from such damage or the repair thereof. Rent shall
abate if and to the extent rental loss insurance is being received by Landlord
or would have been so received if Landlord had obtained insurance which it is
required to obtain under this Lease.

        11.2   Right To Terminate. Notwithstanding the terms of Section 11.1 of
this Lease, Landlord may elect not to rebuild and/or restore the Premises and/or
Building and/or Real Property and instead terminate this Lease by notifying
Tenant in writing (the "Landlord Termination Notice") of such termination within
sixty (60) days after the date of Landlord's discovery of damage (the "Damage
Date"), such notice to include a termination date giving Tenant ninety (90) days
to vacate the Premises, but Landlord may so elect only if the Premises, Building
and/or Real Property shall be damaged by fire or other casualty or cause,
whether or not the Premises are affected, and one or

<PAGE>   16

more of the following conditions is present: (i) repairs cannot reasonably be
completed within 225 days of the Damage Date (when such repairs are made without
the payment of overtime or other premiums); (ii) the cost of the damage exceeds
$1,000,000.00 or is not covered by Landlord's insurance policies, or (iii) the
holder of any mortgage on the Building or Real Property shall require (based on
such holder's legal right to so require for reasons other than a default by
Landlord under said mortgage) that the insurance proceeds or any portion thereof
be used to retire the mortgage debt and the remaining proceeds are not
sufficient to repair the damage, provided that in such instance, Landlord agrees
to negotiate in good faith with said holder to have the proceeds applied to
restoration. Likewise, Tenant may elect to terminate this Lease by notifying
Landlord in writing of such termination within sixty (60) days after the Damage
Date, such notice to include a termination date effective as of the date of the
notice, but Tenant may so elect only if the Premises, Building and/or Real
Property shall be damaged by fire or other casualty or cause, whether or not the
Premises are affected, and repairs cannot reasonably be completed within 225
days of the Damage Date (when such repairs are made without the payment of
overtime or other premiums).

        11.3   Waiver of Statutory Provisions. The provisions of this Lease,
including this Article 11, constitute an express agreement between Landlord and
Tenant with respect to any and all damage to, or destruction of, all or any part
of the Premises, the Building or the Real Property, and any statute or
regulation of the State of California, including, without limitation, Sections
1932(2) and 1933(4) of the California Civil Code, with respect to any rights or
obligations concerning damage or destruction in the absence of an express
agreement between the parties, and any other statute or regulation, now or
hereafter in effect, shall have no application to this Lease or any damage or
destruction to all or any part of the Premises, the Building or the Real
Property.

                                   ARTICLE 12
                                    NONWAIVER

        No waiver of any provision of this Lease shall be implied by any failure
of either party to enforce any remedy on account of the violation of such
provision, even if such violation shall continue or be repeated subsequently,
any waiver by either party of any provision of this Lease may only be in
writing, and no express waiver shall affect any provision other than the one
specified in such waiver and that one only for the time and in the manner
specifically stated. No receipt of monies by Landlord from Tenant after the
termination of this Lease shall in any way alter the length of the Lease Term.

                                   ARTICLE 13
                                  CONDEMNATION

        13.1   Permanent Taking. If the whole or any part of the Premises or
Building shall be taken by power of eminent domain or condemned by any competent
authority for any public or quasi-public use or purpose, or if any adjacent
property or street shall be so taken or condemned, or reconfigured or vacated by
such authority in such manner as to require the use, reconstruction or
remodeling of any part of the Premises or Building, or if Landlord shall grant a
deed or other instrument in lieu of such taking by eminent domain or
condemnation (collectively, a "Taking"), and if such Taking involves a Taking of
all or substantially all of the Premises, Landlord shall have the option to
terminate this Lease upon delivery of ninety (90) days' notice. If more than
twenty-five percent (25%) of the rentable square feet of the Premises is taken,
Tenant shall have the option to terminate this Lease upon delivery of ninety
(90) days' notice, provided such notice is given no later than 90 days after the
date of such taking. Landlord shall be entitled to receive the entire award or
payment in connection therewith, except that Tenant shall have the right to
receive an award for its relocation expenses, damages to Tenant's personal
property, trade fixtures, and loss of goodwill. All Rent shall be apportioned as
of the date of such termination, or the date of such taking, whichever shall
first occur. If any part of the Premises shall be taken, and this Lease shall
not be so terminated, the Rent shall be proportionately abated or reduced based
on the number of rentable square feet of the Premises so taken. Tenant hereby
waives any and all rights it might otherwise have pursuant to Section 1265.130
of The California Code of Civil Procedure, or any successor statute.

        13.2   Temporary Taking. Notwithstanding anything to the contrary
contained in this Article 13, in the event of a temporary taking of all or any
portion of the Premises for a period of one hundred and twenty (120) days or
less, then this Lease shall not terminate but the Base Rent and the Additional
Rent shall be abated for the period of such taking (commencing on the date of
such taking) in proportion to the ratio that the amount of rentable square feet
of the Premises taken bears to the total rentable square feet of the Premises;
provided that if the remaining portion of the Premises is not sufficient to
allow Tenant to effectively conduct its business therein, and if Tenant does not
conduct its business from such remaining portion, then Base Rent and the
Additional Rent shall be abated

<PAGE>   17

for the entire Premises for such time as Tenant continues to be so prevented
from using, and does not use, the Premises. Landlord shall be entitled to
receive the entire award made in connection with any such temporary taking.

                                   ARTICLE 14
                            ASSIGNMENT AND SUBLETTING

        14.1   Transfers. Subject to the provisions of this Article 14, Tenant
shall not, without the prior written consent of Landlord, assign, mortgage,
pledge, hypothecate, encumber, or permit any lien to attach to, or otherwise
transfer, this Lease or any interest hereunder, permit any assignment or other
transfer of this Lease or any interest hereunder by operation of law, sublet the
Premises or any part thereof, or otherwise permit the occupancy or use of the
Premises by any persons other than Tenant, its Affiliates and their employees
(all of the foregoing are hereinafter sometimes referred to collectively as
"Transfers" and any person to whom any Transfer is made or sought to be made is
hereinafter sometimes referred to as a "Transferee"). Any Transfer with respect
to which Landlord's consent is required under this Article 14 and with respect
to which such consent requirement is not exempted under this Article 14 is
referred to herein as a "Consent Transfer." If Tenant desires Landlord's consent
to any Consent Transfer, Tenant shall notify Landlord in writing, which notice
(the "Transfer Notice") shall include (i) the proposed effective date of the
Transfer, which shall not be less than (a) in the case of a sublease of less
than 24,000 rentable square feet, ten (10) business days, (b) in the case of a
sublease of 24,000 square feet or more, fifteen (15) business days, and (c) in
the case of an assignment of this Lease or any other Transfer, twenty (20)
business days after the date of delivery of the Transfer Notice, (ii) a
description of the portion of the Premises to be transferred (the "Subject
Space"), (iii) all of the principal terms of the proposed Transfer and the
consideration therefor, including a calculation of the "Transfer Premium," as
that term is defined in Section 14.3 below, in connection with such Transfer,
the name and address of the proposed Transferee, and a copy of all existing
and/or proposed documentation pertaining to the proposed Transfer, including all
then existing material, executed operative documents to evidence such Transfer
or the agreements incidental or related to such Transfer, (iv) current financial
statements of the proposed Transferee and (v) to the extent reasonably
available, any other reasonable information reasonably and customarily required
by landlords of Comparable Buildings in connection with the review of similar
Transfers. Subject to the terms of this Article 14, any Consent Transfer made
without Landlord's prior written consent shall, at Landlord's option, be null,
void and of no effect. Whether or not Landlord consents to any Consent Transfer,
Tenant shall pay Landlord's review and processing fees, as well as any
reasonable legal fees incurred by Landlord, within thirty (30) days after
written request by Landlord.

        14.2   Landlord's Consent. Landlord shall not unreasonably withhold,
delay or condition its consent to any proposed Consent Transfer. Subject to the
provisions of this Section 14.2, the parties hereby agree that it shall be
reasonable under this Lease and under any applicable law for Landlord to
withhold consent to any proposed Consent Transfer where one or more of the
following apply, without limitation as to other reasonable grounds for
withholding consent:

               14.2.1 The Transferee is of a character or reputation or engaged
in a business which is materially inconsistent with the quality of the Building;
or

               14.2.2 The Transferee intends to use the Subject Space for
purposes which are inconsistent with those permitted under this Lease; or

               14.2.3 The Transferee is not a party of reasonable financial
worth and/or financial stability in light of the responsibilities to be
undertaken in connection with the Transfer on the date consent is requested;
provided that the provisions of this Section 14.2. shall be applicable only if
(i) the proposed Transfer is an assignment of Tenant's interest in the Lease,
(ii) the proposed Transfer concerns twenty thousand (20,000) rentable square
feet or more of the Premises, or (iii) upon the consummation of the proposal
Transfer, the Original Tenant and/or its Affiliates will not continue to
directly occupy (i.e., have not subleased or otherwise transferred its space) at
least forty thousand (40,000) rentable square feet of the Premises.

        If Landlord consents to any Consent Transfer pursuant to the terms of
this Section 14.2, Tenant may within six months after Landlord's consent, but
not later than the expiration of said six-month period, enter into such Transfer
of the Premises or portion thereof, provided that if there are any material
changes in the terms and conditions from those specified in the Transfer Notice
such that Landlord would initially have been entitled to refuse its consent to
such Transfer under this Section 14.2, Tenant shall again submit the Transfer to
Landlord for its consent under this Article 14.

<PAGE>   18

        14.3   Transfer Premium.

               14.3.1 Definition of Transfer Premium. Subject to the terms of
this Article 14, if Landlord consents to a Consent Transfer, as a condition
thereto which the parties hereby agree is reasonable, Tenant shall pay to
Landlord one half of any "Transfer Premium," as that term is defined in this
Section 14.3, received by Tenant from such Transferee. "Transfer Premium" shall
mean all rent, additional rent or other consideration payable by such Transferee
in connection with the Transfer in excess of the Rent and Additional Rent
payable by Tenant under this Lease during the term of the Transfer on a per
rentable square foot basis if less than all of the Premises is transferred
(unless all or a portion of the Subject Space is subject to different Rent and
Additional Rent terms, in which case, to the extent applicable, such different
terms shall be applicable), after deducting the actual, out-of-pocket expenses
incurred or to be incurred by Tenant for the following (collectively, the
"Subleasing Costs") (i) any changes, alterations and improvements to the
Premises in connection with the Transfer, (ii) any space planning, architectural
or design fees or expenses incurred in marketing such space or in connection
with such Transfer, (iii) any improvement allowance or other monetary
concessions provided to the Transferee, (iv) any brokerage commissions incurred
by Tenant in connection with the Transfer, (v) legal fees incurred in connection
with the Transfer, including those fees and costs reimbursed to Landlord
pursuant to the last sentence of Section 14.1, (vi) any lease takeover costs
incurred by Tenant in connection with the Transfer, (vii) out-of-pocket costs of
advertising the space which is the subject of the Transfer, and (viii) the
amount of any Base Rent and Additional Rent paid by Tenant to Landlord with
respect to the Subject Space during the period, not to exceed four (4) months,
commencing on the later of (a) the earlier of the date Tenant contracts with a
reputable broker to market the Subject Space or commences negotiations with the
Transferee as evidenced by an exchange of proposals, or (b) the date Tenant
vacates the Subject Space, until the commencement of the term of the Transfer.
"Transfer Premium" shall also include, but not be limited to, key money, bonus
money or other cash consideration paid by Transferee to Tenant in connection
with such Transfer, but shall exclude any payment which is not in excess of fair
market value for (i) services rendered by Tenant to Transferee or (ii) for
assets, fixtures, inventory, equipment, or furniture transferred by Tenant to
Transferee in connection with such Transfer.

               14.3.2 Payment of Transfer Premiums. The determination of the
amount of the Transfer Premium shall be made on a monthly basis in accordance
with the terms of this Section 14.3.2, as rent or other consideration is
received by Tenant by under the Transfer. For purposes of calculating the
Transfer Premium, Tenant's Subleasing Costs shall be credited against the first
amounts received by Tenant as a result of the Transfer.

        14.4   Effect of Transfer. Subject to the terms of this Article 14, if
Landlord consents to a Consent Transfer, (i) the terms and conditions of this
Lease shall in no way be deemed to have been waived or modified, (ii) such
consent shall not be deemed consent to any further Consent Transfer by either
Tenant or a Transferee, (iii) Tenant shall deliver to Landlord, promptly after
execution, an original executed copy of all documentation pertaining to the
Transfer, and (iv) Tenant shall furnish upon Landlord's request a reasonable
statement, certified by an independent certified public accountant, or Tenant's
chief financial officer or other appropriate officer of Tenant, setting forth in
reasonable detail the computation of any Transfer Premium Tenant has derived and
expects to derive from such Transfer. No Transfer relating to this Lease or
agreement entered into with respect thereto, whether with or without Landlord's
consent, shall relieve Tenant from liability under this Lease, including,
without limitation, in connection with the Subject Space, unless Tenant shall
provide evidence acceptable to Landlord, in its sole but reasonable discretion,
to the effect that the Transferee has a net worth in excess of $350,000,000.
Landlord or its authorized representatives shall have the right at all
reasonable times during normal business hours following ten (10) business days
advance notice to audit the books, records and papers of Tenant directly
relating to any Consent Transfer. If the Transfer Premium respecting any Consent
Transfer shall be found understated, or overstated, the appropriate party shall
within thirty (30) days after demand, pay to the other the deficiency or excess,
and if understated by more than ten percent (10%), Tenant shall pay Landlord's
costs of such audit.

        14.5   Non-Transfers. Notwithstanding anything to the contrary contained
in this Article 14, an assignment of this Lease or subletting of all or a
portion of the Premises to an entity (an "Affiliate") which is controlled by,
controls, or is under common control with, Tenant or Tenant's parent or any
subsidiary of Tenant or Tenant's parent, or to a resulting entity from a merger
or consolidation of Tenant with another entity, shall not be deemed a Transfer
under this Article 14, and Landlord's consent shall not be required in
connection therewith, provided that Tenant notifies Landlord of any such
assignment or sublease and promptly supplies Landlord with any documents or
information reasonably requested by Landlord regarding such assignment or
sublease or such Affiliate or resulting entity, and further provided that such
assignment or sublease is not a subterfuge by Tenant to avoid its

<PAGE>   19

obligations under this Lease and shall in no way relieve Tenant from any
liability under this Lease. "Control," as used in this Section 14.5, shall mean
the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a person or entity, whether through
the ownership of voting securities, by contract or otherwise. As used in this
Section 14.5, "Affiliate" shall also include any entity which is subleasing from
Tenant less than 12,000 square feet of rentable area of the Premises and on a
consolidated basis no more than 36,000 square feet and with respect to which no
demising wall is to be erected, and with the only identification of such
subtenant appearing on the door or doors to the offices, if any, in that portion
or portions of the Premises being occupied by such sublessee.

                                   ARTICLE 15
                        SURRENDER OF PREMISES; OWNERSHIP
                          AND REMOVAL OF TRADE FIXTURES

        15.1   Surrender of Premises. No act or thing done by Landlord or any
agent or employee of Landlord during the Lease Term shall be deemed to
constitute an acceptance by Landlord of a surrender of the Premises unless such
intent is specifically acknowledged in a writing signed by Landlord. The
delivery of keys to the Premises to Landlord or any agent or employee of
Landlord shall not constitute a surrender of the Premises or effect a
termination of this Lease, whether or not the keys are thereafter retained by
Landlord, and notwithstanding such delivery Tenant shall be entitled to the
return of such keys at any reasonable time upon request until this Lease shall
have been properly terminated. The voluntary or other surrender of this Lease by
Tenant, whether accepted by Landlord or not, or a mutual termination hereof,
shall not work a merger.

        15.2   Removal of Tenant Property by Tenant. Upon the expiration of the
Lease Term, or upon any earlier termination of this Lease, Tenant shall, subject
to the provisions of this Article 15 and Section 8.4 above, quit and surrender
possession of the Premises to Landlord in good order and condition, reasonable
wear and tear, casualty events, damage resulting from the negligence or
misconduct of the Landlord Parties, and repairs which are specifically made the
responsibility of Landlord hereunder excepted. Upon such expiration or
termination, Tenant shall, without expense to Landlord, remove or cause to be
removed from the Premises all debris and rubbish, and such items of
free-standing furniture, equipment, cabinet work, and other personal property
owned by Tenant or installed or placed by Tenant at its expense in the Premises,
and such similar articles of any other persons claiming under Tenant, as
Landlord may, in its sole discretion, require to be removed, and, subject to the
terms of this Lease, Tenant shall repair at its own expense all damage to the
Premises and Building resulting from such removal.

                                   ARTICLE 16
                                  HOLDING OVER

        (a)    If Tenant holds over after the expiration of the Lease Term
hereof, with or without the express or implied consent of Landlord, such tenancy
shall be from month-to-month only, and shall not constitute a renewal hereof or
an extension for any further term, and in such case Base Rent shall be payable
at a monthly rate equal to one hundred fifty percent (150%) of the Base Rent
applicable during the last rental period of the Lease Term under this Lease.
Such month-to-month tenancy shall be subject to every other term, covenant and
agreement contained herein. Nothing contained in this Article 16 shall be
construed as consent by Landlord to any holding over by Tenant, and Landlord
expressly reserves the right to require Tenant to surrender possession of the
Premises to Landlord as provided in this Lease upon the expiration or other
termination of this Lease. Except for the time limitation on Landlord's right to
seek consequential damages set forth in the next sentence (which time limitation
shall also apply to Landlord's rights to seek damages other than by reason of
the following sentence), the provisions of this Article 16 shall not be deemed
to limit or constitute a waiver of any other rights or remedies of Landlord
provided herein or at law. If Tenant fails to surrender the Premises within
sixty (60) days after the termination or expiration of this Lease, then, in
addition to any other liabilities to Landlord accruing therefrom, Tenant shall
protect, defend, indemnify and hold Landlord harmless from all loss, costs
(including reasonable attorneys' fees) and liability resulting from such
failure, including, without limiting the generality of the foregoing, any claims
made by any succeeding tenant founded upon such failure to surrender, and any
lost profits to Landlord resulting therefrom.

        (b)    Notwithstanding the foregoing, by written notice to Landlord
given at least 270 days prior to the expiration of the original Term, Tenant
shall have one time right to elect to holdover in the Premises (which holdover
will be deemed to be with Landlord's consent) for one (1), two (2), or three (3)
full months (as specified in Tenant's notice) at a Base Rent of $1.75 per
"rentable square feet" per month and Additional Rent, and such continued
occupancy by Tenant shall be subject to all of the other terms, covenants and
conditions of this Lease, so

<PAGE>   20

far as applicable. The Lease Term will be extended for the period specified in
such notice by Tenant to Landlord and a vacation of the Premises by Tenant prior
to such date will not relieve Tenant of liability for Monthly Base Rent and
Additional Rent accruing under this Lease through the expiration of the Term, as
extended pursuant to Tenant's notice. The provisions of this Subsection 16(b)
will survive the expiration or earlier termination of this Lease.

                                   ARTICLE 17
                              ESTOPPEL CERTIFICATES

        Within fifteen (15) business days following a request in writing by
Landlord, Tenant shall execute and deliver to Landlord an estoppel certificate,
which, as submitted by Landlord, shall be substantially in the form of Exhibit
F, attached hereto, indicating therein any exceptions thereto that may exist at
that time, and shall also contain any other customary factual information
certified to Tenant's knowledge, without a duty of investigation or inquiry by
Tenant, reasonably requested by Landlord or Landlord's mortgagee or prospective
mortgagee. Tenant shall execute and deliver whatever other instruments may be
reasonably required for such purposes. Landlord hereby agrees to provide to
Tenant an estoppel certificate signed by Landlord, containing the same types of
information, and within the same periods of time, as set forth above, with such
changes as are reasonably necessary to reflect that the estoppel certificate is
being granted to Tenant by Landlord, rather than being granted by Tenant to
Landlord or to a lender.

                                   ARTICLE 18
                                  SUBORDINATION

        Subject to the terms of this Article 18, this Lease shall be subject and
subordinate to all future ground or underlying leases of the Real Property and
to the lien of any "Lender," which in this Lease shall mean any mortgagee under
a mortgage or beneficiaries under any trust deeds hereafter in force against the
Real Property and the Building, if any, and to all renewals, extensions,
modifications, consolidations and replacements thereof, and to all advances made
or hereafter to be made upon the security of such mortgages or trust deeds,
unless the Lenders or the lessors under such ground lease or underlying leases,
require in writing that this Lease be superior thereto. Landlord's delivery to
Tenant of commercially reasonable non-disturbance agreement(s) in favor of
Tenant from any ground lessors or Lenders, or ground lessors or Lenders who come
into existence at any time prior to the expiration of the Lease Term shall be in
consideration of, and a condition precedent to, Tenant's agreement to be
 bound by the terms of this Article 18. Subject to the non-disturbance
agreements described above, Tenant covenants and agrees in the event any
proceedings are brought for the foreclosure (or deed lieu thereof) of any such
mortgage, or if any ground or underlying lease is terminated, to attorn, to the
lien holder or purchaser or any successors thereto upon any such foreclosure
sale (or deed in lieu thereof), or to the lessor of such ground or underlying
lease, as the case may be, if so requested to do so by such purchaser or lessor,
and to recognize such purchaser or lessor as the lessor under this Lease. Tenant
shall, within 10 business days of request by Landlord, execute such further
instruments or assurances as Landlord may reasonably deem necessary, including a
Subordination, Nondisturbance and Attornment Agreement or other similar form
reasonably required by any lender making a loan secured by the Property to
evidence or confirm the subordination or superiority of this Lease to any such
mortgages, trust deeds, ground leases or underlying leases, subject to the terms
of this Article 18.

                                   ARTICLE 19
                               DEFAULTS; REMEDIES

        19.1   Events of Default. The occurrence of any of the following shall
constitute an event of default ("Event of Default") under this Lease by Tenant:

               19.1.1 Any failure by Tenant to pay any Rent or any other charge
required to be paid under this Lease, or any part thereof, within ten (10)
business days after the due date thereof; or

               19.1.2 Any failure by Tenant to observe or perform any other
provision, covenant or condition of this Lease to be observed or performed by
Tenant where such failure continues for thirty (30) days after written notice
thereof from Landlord to Tenant; provided that if the nature of such default is
such that the same cannot reasonably be cured within a thirty (30)-day period,
Tenant shall not be deemed to be in default if it commences such cure within
such period and thereafter proceeds to rectify and cure said default with
reasonable diligence; or

               19.1.3 The failure by Tenant to observe or perform according to
the provisions of Article 17 or

<PAGE>   21

Article 18 of this Lease where such failure continues for more than ten (10)
business days after notice from Landlord.

        All notices to be given pursuant to this Section 19.1 shall be in
addition to and not in lieu of the notice requirements of the California Code of
Civil Procedure Section 1161 et seq.

        19.2   Remedies Upon Default. Upon the occurrence of any Event of
Default by Tenant, Landlord shall have, in addition to any other remedies
available to Landlord at law or in equity, the option to pursue any one or more
of the following remedies, each and all of which shall be cumulative and
nonexclusive, without any notice or demand whatsoever.

               19.2.1 Terminate this Lease, in which event Tenant shall
immediately surrender the Premises to Landlord, and if Tenant fails to do so,
Landlord may, subject to due process of law and without prejudice to any other
remedy which it may have for possession or arrearages in rent, enter upon and
take possession of the Premises and expel or remove Tenant and any other person
who may be occupying the Premises or any part thereof; and Landlord may recover
from Tenant the following:

                      (i)    The worth at the time of award of any unpaid rent
        which has been earned at the time of such termination; plus

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

                      (iii)  The worth at the time of award of the amount by
        which the unpaid rent for the balance of the Lease Term after the time
        of award exceeds the amount of such rental loss that Tenant proves could
        have been reasonably avoided; plus

                      (iv)   Any other amount reasonably necessary to compensate
        Landlord for all the detriment proximately caused by Tenant's failure to
        perform its obligations under this Lease or which in the ordinary course
        of things would be likely to result therefrom, specifically including
        but not limited to, brokerage commissions and advertising expenses
        incurred, expenses of remodeling the Premises or any portion thereof for
        a new tenant, whether for the same or a different use, and any special
        concessions made to obtain a new tenant; and

                      (v)    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 applicable law.

        The term "rent" as used in this Section 19.2 shall be deemed to be and
to mean all sums of every nature required to be paid by Tenant to Landlord
pursuant to the terms of this Lease. As used in Paragraphs 19.2.1(i) and (ii),
above, the "worth at the time of award" shall be computed by allowing interest
at the rate set forth in Article 25 of this Lease, but in no case greater than
the maximum amount of such interest permitted by law. As used in Paragraph
19.2.1(iii) above, the "worth at the time of award" shall be 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%).

               19.2.2 Landlord shall have the remedy described in California
Civil Code Section 1951.4 (lessor may continue lease in effect after lessee's
breach and abandonment and recover rent as it becomes due, if lessee has the
right to sublet or assign, subject only to reasonable limitations). Accordingly,
if Landlord does not elect to terminate this Lease on account of any default by
Tenant, Landlord may, from time to time, without terminating this Lease, enforce
all of its rights and remedies under this Lease, including the right to recover
all rent as it becomes due.

        19.3   Sublessees of Tenant. In the event Landlord elects to terminate
this Lease on account of any Event of Default by Tenant, Landlord shall have the
right to terminate any and all subleases, licenses, concessions or other
consensual arrangements for possession entered into by Tenant and affecting the
Premises or may, in Landlord's sole discretion, succeed to Tenant's interest in
such subleases, licenses, concessions or arrangements. In the event of
Landlord's election to succeed to Tenant's interest in any such subleases,
licenses, concessions or arrangements, Tenant shall, as of the date of notice by
Landlord of such election, have no further right to or interest in the rent or
other consideration receivable thereunder.

<PAGE>   22

        19.4   Waiver of Default. No waiver by Landlord or Tenant of any
violation or breach of any of the terms, provisions and covenants herein
contained shall be deemed or construed to constitute a waiver of any other or
later violation or breach of the same or any other of the terms, provisions, and
covenants herein contained. Forbearance by Landlord or Tenant in enforcement of
one or more of the remedies herein provided upon an Event of Default shall not
be deemed or construed to constitute a waiver of such default. The acceptance of
any Rent or other payment hereunder by Landlord or Tenant following the
occurrence of any default, whether or not known to Landlord or Tenant, as the
case may be, shall not be deemed a waiver of any such default, except only a
default in the payment of the Rent or other payment so accepted.

        19.5   Efforts to Relet. For the purposes of this Article 19, neither
this Lease nor Tenant's right to possession shall be deemed to have been
terminated by efforts of Landlord to relet the Premises, by its acts of
maintenance or preservation with respect to the Premises, or by appointment of a
receiver to protect Landlord's interests hereunder. The foregoing enumeration is
not exhaustive, but merely illustrative of acts which may be performed by
Landlord without terminating this Lease or Tenant's right to possession.

        19.6   Landlord Default. Notwithstanding anything to the contrary set
forth in this Lease, Landlord shall be in default in the performance of any
obligation required to be performed by Landlord pursuant to this Lease if (i)
Landlord is obligated to make a payment of money to Tenant, and Landlord fails
to pay such unpaid amounts within ten (10) days of written notice from Tenant
that the same was not paid when due, or (ii) such failure is other than the
obligation to pay money, and Landlord fails to perform such obligation within
thirty (30) days after the receipt of notice from Tenant specifying in detail
Landlord's failure to perform; provided, however, if the nature of Landlord's
obligation is such that more than thirty (30) days are required for its
performance, then Landlord shall not be in default under this Lease if it shall
commence such performance within such thirty (30) day period and thereafter
diligently pursue the same to completion. Upon any such default by Landlord
under this Lease, Tenant may, except as otherwise specifically provided in this
Lease to the contrary, exercise any of its rights provided at law or in equity;
provided that, except as otherwise specifically provided in this Lease to the
contrary, Tenant shall have no right to terminate this Lease. Tenant shall have
the right to terminate this Lease if after giving the notice required above,
Landlord fails timely to pay the Tenant Improvement Allowance or cure a breach
of the covenant of quiet enjoyment.

                                   ARTICLE 20
                           COVENANT OF QUIET ENJOYMENT

        Subject to Landlord's rights following an Event of Default, Landlord
covenants that during the Lease Term Tenant shall peaceably and quietly have,
hold and enjoy the Premises subject to the terms, covenants, conditions,
provisions and agreements hereof without interference by any persons lawfully
claiming by or through Landlord. The foregoing covenant is in lieu of any other
covenant express or implied, except as otherwise expressly provided in this
Lease.

                                   ARTICLE 21
                                  FORCE MAJEURE

        Any prevention, delay or stoppage due to strikes, lockouts, labor
disputes, acts of God, inability to obtain services, labor, or materials or
reasonable substitutes therefor after reasonable efforts to do so, governmental
actions, civil commotions, fire or other casualty, and other causes beyond the
reasonable control of the party obligated to perform, except with respect to the
obligations imposed with regard to Rent and other monetary charges to be paid
pursuant to this Lease, and except with regard to the time periods set forth in
Article 11 of this Lease, but preserving the use of this Article in the context
of Article 11 to the extent that the delays described above are on a
"industry-wide" basis and cannot be specifically resolved with respect to the
Premises independent of the industry-wide circumstances (collectively, the
"Force Majeure"), notwithstanding anything to the contrary contained in this
Lease, shall excuse the performance of such party for a period equal to any such
prevention, delay or stoppage and, therefore, if this Lease specifies a time
period for performance of an obligation of either party, that time period shall
be extended by the period of any delay in such party's performance caused by a
Force Majeure.

<PAGE>   23

                                   ARTICLE 22
                                 ATTORNEYS' FEES

        If either party commences an action against the other for the specific
performance of this Lease, for damages for the breach hereof or otherwise for
enforcement of any remedy hereunder, the parties hereto agree that the
prevailing party shall be entitled to recover from the other party such costs
and reasonable attorneys' fees as may have been incurred, including any and all
costs incurred in enforcing, perfecting and executing such judgment.

                                   ARTICLE 23
                                      SIGNS

        23.1   Monument Signage.

               23.1.1 Design and Approval. Subject to the provisions of this
Section 23.1, and any applicable governmental requirements, Tenant shall have
the exclusive right to have a "Tenant Name" as that term is defined below,
placed upon a monument sign (the "Monument Sign") located in front of the
Building.

               23.1.2 Tenant Name. Tenant shall have the right at Tenant's
expense, to designate from time to time during the Lease Term, including any
Option Term, as the "Tenant Name", either (i) the name and/or logo of Tenant, or
(ii) the name and/or logo of a Transferee of Tenant properly approved by
Landlord pursuant to the terms of Article 14, and which Transferee occupies at
least fifty percent (50%) of the Premises, provided that such Tenant Name shall
not be an "Objectionable Name" as that term is defined in this Section 23.1.2,
below. The term "Objectionable Name" shall mean any name which relates to an
entity which is of a character or reputation, or is associated with a political
orientation or faction, which is inconsistent with the quality of the Real
Property, or which would otherwise reasonably offend a landlord of a Comparable
Building.

               23.1.3 Repair and Maintenance; Government Approval. Tenant shall
be responsible for the cost of the design, permitting, construction and
installation of the Monument Sign and Tenant Name (the "Sign Cost"), and shall
also be responsible for the repair and maintenance during the Lease Term of the
Monument Sign. Tenant shall also be responsible for the cost and expense of the
removal of its name from and restoration of the Building, if affected by the
Monument Sign (or from the sign itself, but without restoration obligations) as
of the expiration or earlier termination of the Lease. Tenant acknowledges and
agrees that the Monument Sign shall be subject to all necessary approvals and
permits from governmental agencies and shall comply with the CC&Rs.

        23.2   Building Signage. Tenant shall have the exclusive right, during
the Lease Term, at Tenant's sole cost and expense, to install a sign, with the
specifications as set forth on Exhibit G, attached hereto, on the exterior of
the Building containing the Tenant Name (the "Building Signage"), provided that
such Building Signage shall be subject to all of the terms of the CC&Rs and any
applicable governmental requirements. Except as provided in this Lease, Tenant
shall be responsible, at Tenant's sole cost and expense, to repair and maintain
the Building Signage in first class condition during the Lease Term. In addition
Tenant shall be responsible for the cost and expense of the removal of the
Building Signage as of the termination or earlier expiration of the Lease Term,
and for the cost of repair of any damage to the Building resulting from such
removal.

        23.3   Prohibited Signage and Other Items. Except as approved elsewhere
in this Lease, any signs, notices, logos, pictures, names or advertisements
which are installed and visible from the exterior of the Premises and/or
Building and that have not been individually approved by Landlord may be removed
without notice by Landlord at the sole expense of Tenant. Any signs, window
coverings, or blinds (even if the same are located behind the Landlord approved
window coverings for the Building), or other items visible from the exterior of
the Premises or Building are subject to the prior approval of Landlord, in its
sole but reasonable discretion. Landlord shall have the right to refer to the
Tenant Name in connection with its ownership and operation of the Building,
including its sales and promotional materials and regulatory filings.

                                   ARTICLE 24
                              COMPLIANCE WITH LAW

        Neither Landlord nor Tenant shall do anything in or about the Premises
which will in any way conflict with any law, statute, ordinance or other
governmental rule, regulation or requirement now in force or which may hereafter
be enacted or promulgated (collectively, "Laws"). To the best of Landlord's
knowledge, the Premises comply with all Laws as of the date hereof. Should any
Laws now or hereafter be imposed on Landlord or Tenant

<PAGE>   24

by a state, federal or local governmental body charged with the establishment,
regulation and enforcement of occupational, health or safety standards for
employers, employees or tenants, then (i) Tenant agrees, at its sole cost and
expense, to comply promptly with such Laws if they relate to any of the Tenant
Maintenance Items, the Tenant Improvements or the Alterations or Tenant's use
and occupancy of the Premises and to make all alterations to the Premises,
Building, and/or Real Property as are required to comply with such Laws and (ii)
Landlord shall comply with and all other Laws, including those which relate to
the Landlord Maintenance Items, unless such compliance obligations are triggered
by the construction of the Tenant Improvements or Alterations, in which event
such compliance obligations to the Landlord Maintenance Items shall be at
Tenant's sole cost and expense.

                                   ARTICLE 25
                                  LATE CHARGES

        Any Rent or other amounts payable to Landlord under this Lease, if not
paid by the fifth day after the due date, shall incur a late charge of five
percent (5%) for Landlord's administrative expense in processing such delinquent
payment and in addition thereto shall bear interest at the rate of fifteen
percent (15%) per annum from and after the due date for such payment. In no
event shall the rate of interest payable on any late payment exceed the legal
limits for such interest enforceable under applicable law. The interest shall
accrue from the date such payment was due until the date such payment is
received. Such late charge and interest shall be payable immediately to Landlord
as Additional Rent hereunder. Acceptance of such late charge by Landlord shall
in no event constitute a waiver of Tenant's default with respect to such overdue
amount, or prevent Landlord from exercising any of the other rights and remedies
granted hereunder. Nothing contained in this paragraph, however, shall be
construed to require Landlord to accept a late payment from Tenant. If Landlord
does accept a late payment from Tenant, then Tenant shall remain in default
under this lease until Tenant pays all late charge(s) and interest provided for
in this paragraph. There will also be a charge should any check be returned by a
bank for insufficient funds.

                                   ARTICLE 26
              LANDLORD'S RIGHT TO CURE DEFAULT; PAYMENTS BY TENANT

        26.1   Landlord's Cure. Except as otherwise specifically set forth in
this Lease, all covenants and agreements to be kept or performed by Tenant under
this Lease shall be performed by Tenant at Tenant's sole cost and expense and
without any reduction of Rent. If Tenant shall fail to perform any of its
obligations under this Lease within a reasonable time after such performance is
required by the terms of this Lease, Landlord may, but shall not be obligated
to, after thirty (30) days prior notice to Tenant (or in the case of an
emergency, after such notice as is reasonable under the circumstances), make any
such payment or perform any such act on Tenant's part without waiving its right
based upon any default of Tenant and without releasing Tenant from any
obligations hereunder.

        26.2   Tenant's Reimbursement. Except as may be specifically provided to
the contrary in this Lease, Tenant shall pay to Landlord, within fifteen (15)
days after delivery by Landlord to Tenant of statements therefor, sums equal to
expenditures reasonably made and obligations reasonably incurred by Landlord in
connection with the remedying by Landlord of Tenant's defaults pursuant to the
provisions of Section 26.1. Tenant's obligations under this Section 26.2 shall
survive the expiration or sooner termination of the Lease Term.

                                   ARTICLE 27
                                ENTRY BY LANDLORD

        Subject to the provisions of this Lease, and provided Landlord uses
commercially reasonable efforts to minimize any interference with Tenant's
business, Landlord reserves the right during the hours 9:00 A.M. to 5:00 P.M.,
Monday through Friday (other than a holiday) or at other times when Tenant is
open for business and upon reasonable notice to the Tenant (or in the case of an
emergency upon such notice as is reasonable under the circumstances, including
such attempts as may be reasonable under the circumstances to reach Tenant by
telephone) to enter the Premises to (i) inspect them; (ii) show the Premises to
prospective purchasers, mortgagees or tenants, ground or underlying lessors or
insurers (provided that such right shall not extend to prospective tenants until
twelve (12) months prior to the Lease Expiration Date); (iii) post notices of
nonresponsibility; or (iv) alter, improve or repair the Premises or the Building
if necessary to comply with Laws, or for alterations, repairs or improvements to
the Landlord Maintenance Items. Notwithstanding anything to the contrary
contained in this Article 27, and subject to the notice requirements set forth
in Section 19.1.2, above, and Landlord's compliance with the terms of

<PAGE>   25

Section 26.1, Landlord may enter the Premises at any time to perform any
covenants of Tenant which Tenant fails to perform. Except as otherwise expressly
provided in this Lease, any such entries shall be without the abatement of Rent
and shall include the right to take such reasonable steps as required to
accomplish the stated purposes. Tenant hereby waives any claims (not including
claims for physical property damages (subject to Section 10.4 hereof) or
personal injury damages) for any injuries or inconvenience to or interference
with Tenant's business or lost profits, occasioned thereby. For each of the
above purposes, Landlord shall at all times have a key with which to unlock all
the doors in the Premises, excluding Tenant's vaults, safes and special security
areas designated in advance by Tenant. In an emergency, Landlord shall have the
right to use any means that Landlord may in good faith deem proper to open the
doors in and to the Premises. Subject to the provisions of this Lease, any entry
into the Premises by Landlord in the manner hereinbefore described shall not be
deemed to be a forcible or unlawful entry into, or a detainer of, the Premises,
or an actual or constructive eviction of Tenant from any portion of the
Premises. Notwithstanding the foregoing, as reasonably necessary in connection
with Tenant's business use of the Premises, Tenant may designate certain secure
areas, and on prior written notice to Landlord of these areas, Tenant may deny
Landlord access to such areas except in an emergency or when Landlord is
accompanied by Tenant. Subject to the provisions of this Lease, no provision of
this Lease shall be construed as obligating Landlord to perform any repairs,
alterations or decorations except as otherwise expressly agreed to be performed
by Landlord herein.

                                   ARTICLE 28
                              INTENTIONALLY OMITTED

                                   ARTICLE 29
                            MISCELLANEOUS PROVISIONS

        29.1   Terms. The necessary grammatical changes required to make the
provisions hereof apply either to corporations or partnerships or individuals,
men or women, as the case may require, shall in all cases be assumed as though
in each case fully expressed.

        29.2   Binding Effect. Each of the provisions of this Lease shall extend
to and shall, as the case may require, bind or inure to the benefit not only of
Landlord and of Tenant, but also of their respective successors or assigns,
provided this clause shall not permit any assignment by Tenant contrary to the
provisions of Article 14 of this Lease.

        29.3   No Air Rights. No rights to any view or to light or air over any
property, whether belonging to Landlord or any other person, are granted to
Tenant by this Lease.

        29.4   Modification of Lease. Should any prospective mortgagee or ground
lessor for the Building or Real Property require a modification or modifications
of this Lease, which modification or modifications will not directly or
indirectly cause an increased cost or expense to Tenant under this Lease or in
connection with Tenant's business operations, or have any negative economic
impact, or any other material negative impact, on the Premises or Tenant's
occupancy of the Premises or in any other way adversely change the rights and
obligations of Tenant hereunder including, without limitation, all rights and
obligations of Tenant with respect to renewal, assignment and subletting,
insurance proceeds and Tenant's rights to terminate this Lease, or receive
abatement of Rent, then and in such event, Tenant agrees that this Lease may be
so modified at Landlord's sole cost and expense (including Tenant's reasonable
attorneys' fees for review of the same), and agrees to execute whatever
reasonable documents are required therefor and deliver the same to Landlord
within thirty (30) days following the request therefor. Should Landlord or any
such prospective mortgagee or ground lessor require execution of a short form of
Lease for recording, containing, among other customary provisions, the names of
the parties, a description of the Premises and the Lease Term, Tenant agrees to
execute such short form of Lease and to deliver the same to Landlord within
fifteen (15) business days following Tenant's receipt of written request
therefor.

        29.5   Transfer of Landlord's Interest. Tenant acknowledges that
Landlord has the right to transfer all or any portion of its interest in the
Real Property and Building and in this Lease. Tenant agrees that in the event of
a transfer of fee title and provided that such transferee is a bona fide
purchaser and agrees in writing to perform all of Landlord's obligations
thereafter accruing, Landlord shall automatically be released from all liability
under this Lease thereafter accruing and Tenant agrees to look solely to such
transferee for the performance of Landlord's obligations hereunder arising or
accruing after the date of transfer upon agreement by such transferee to fully
assume and be liable for all obligations of this Lease to be performed by
Landlord which first accrue or arise after the date of the conveyance, and
Tenant shall attorn to such transferee. Tenant further acknowledges that
Landlord

<PAGE>   26

may assign its interest in this Lease to a mortgage lender as additional
security and agrees that such an assignment shall not release Landlord from its
obligations hereunder and that unless and until such mortgage lender succeeds to
Landlord's interest and obligations hereunder, Tenant shall continue to look to
Landlord for the performance of its obligations hereunder.

        29.6   Prohibition Against Recording. A memorandum of this Lease may be
recorded by Tenant provided Landlord may first require Tenant's agreement to
deliver to Landlord an executed, recordable, memorandum of termination of the
same, within ten (10) business days after the expiration or earlier termination
of this Lease and provided Tenant will pay all costs of such recordation.

        29.7   Landlord's Title. Subject to and except for the rights of Tenant
expressly set forth in this Lease, Landlord's title is and always shall be
paramount to the title of Tenant, and nothing herein contained shall empower
Tenant to do any act which can, shall or may encumber the title of Landlord.

        29.8   Captions. The captions of Articles and Sections are for
convenience only and shall not be deemed to limit, construe, affect or alter the
meaning of such Articles and Sections.

        29.9   Relationship of Parties. Nothing contained in this Lease shall be
deemed or construed by the parties hereto or by any third party to create the
relationship of principal and agent, partnership, joint venturer or any
association between Landlord and Tenant.

        29.10  Time of Essence. Time is of the essence of this Lease and each of
its provisions.

        29.11  Partial Invalidity. If any term, provision or condition contained
in this Lease shall, to any extent, be invalid or unenforceable, the remainder
of this Lease, or the application of such term, provision or condition to
persons or circumstances other than those with respect to which it is invalid or
unenforceable, shall not be affected thereby, and each and every other term,
provision and condition of this Lease shall be valid and enforceable to the
fullest extent possible permitted by law.

        29.12  No Warranty. Except as otherwise expressly set forth in this
Lease, in executing and delivering this Lease, Tenant has not relied on any
representation, including, but not limited to, any representation whatsoever as
to the amount of any item comprising Additional Rent or the amount of the
Additional Rent in the aggregate or that Landlord is furnishing the same
services to other tenants, at all, on the same level or on the same basis, or
any warranty or any statement of Landlord which is not set forth herein or in
one or more of the exhibits attached hereto.

        29.13  Landlord Exculpation. It is expressly understood and agreed that,
notwithstanding anything in this Lease to the contrary, the liability of
Landlord or the Landlord Parties to Tenant for performance of Landlord's
obligation under the Lease shall be (i) limited solely and exclusively to an
amount which is equal to the interest of Landlord in the Building and Real
Property and to the proceeds of any insurance (the cost of which is included in
Operating Expenses) or condemnation awards received by Landlord pursuant to the
items of Article 13 of this Lease and (ii) subject to the waiver of
consequential damages set forth in Section 10.1, above. Neither Landlord, nor
any of the Landlord Parties shall have any personal liability therefor, and
Tenant hereby expressly waives and releases such personal liability on behalf of
itself and all persons claiming by, through or under Tenant; provided, however,
if Landlord incurs any liability to Tenant under this Lease which liability is
reduced to a judgment against Landlord, then Tenant shall be entitled to deduct
the amount of such judgment from Rent payable by Tenant under this Lease. The
limitations of liability contained in this Section 29.13 shall inure to the
benefit of Landlord's and the Landlord Parties' present and future partners,
beneficiaries, officers, directors, trustees, shareholders, agents and
employees, and their respective partners, heirs, successors and assigns.

        29.14  Entire Agreement. It is understood and acknowledged that there
are no oral agreements between the parties hereto affecting this Lease and this
Lease supersedes and cancels any and all previous negotiations, arrangements,
brochures, agreements and understandings, if any, between the parties hereto or
displayed by Landlord to Tenant with respect to the subject matter thereof, and
none thereof shall be used to interpret or construe this Lease. This Lease
(including all exhibits attached hereto), and any side letter or separate
agreement executed by Landlord and Tenant in connection with this Lease and
dated of even date herewith contain all of the terms, covenants, conditions,
warranties and agreements of the parties relating in any manner to the rental,
use and occupancy of the Premises, shall be considered to be the only agreement
between the parties hereto and their representatives and agents, and none of the
terms, covenants, conditions or provisions of this Lease can be modified,

<PAGE>   27

deleted or added to except in writing signed by the parties hereto. All
negotiations and oral agreements acceptable to both parties have been merged
into and are included herein. There are no other representations or warranties
between the parties, and all reliance with respect to representations is based
totally upon the representations and agreements contained in this Lease.

        29.15  Intentionally Omitted.

        29.16  Notices. All notices, demands, statements, designations,
approvals or other communications (collectively, "Notices") given or required to
be given by either party to the other hereunder or by law shall be in writing,
and shall be delivered personally or by nationally recognized overnight courier
service or sent by United States certified or registered mail, postage prepaid,
return receipt requested (i) to Tenant at the appropriate addresses set forth in
Section 5 of the Summary, or to such other place in the continental United
States as Tenant may from time to time designate in a Notice to Landlord; or
(ii) to Landlord at the addresses set forth in Section 3 of the Summary, or to
such other firm or to such other place in the continental United States as
Landlord may from time to time designate in a Notice to Tenant. Any Notice will
be deemed given on the date it is received as provided in this Section 29.16 or
upon the date personal delivery is made. If Tenant is notified of the identity
and address of Landlord's mortgagee or ground or underlying lessor, Tenant shall
give to such mortgagee or ground or underlying lessor at the address set forth
in such notice a written notice of any default by Landlord under the terms of
this Lease and allow such mortgagee or ground or underlying lessor 30 days
within which to cure such default.

        29.17  Authority. If either party is a corporation or partnership, each
individual executing this Lease on behalf of such party hereby represents and
warrants that such party is a duly formed and existing entity and that such
party has full right and authority to execute and deliver this Lease and that
each person signing on behalf of such party is authorized to do so.

        29.18  Governing Law. This Lease shall be construed and enforced in
accordance with the laws of the State of California.

        29.19  Submission of Lease. Submission of this instrument for
examination or signature by Tenant does not constitute a reservation of or an
option for lease, and it is not effective as a lease or otherwise until
execution and delivery by both Landlord and Tenant.

        29.20  Brokers. Landlord and Tenant hereby warrant to each other that
they have had no dealings with any real estate broker or agent in connection
with the negotiation of this Lease, excepting only the real estate brokers
specified in Section 9 of the Summary (the "Brokers"), to whom Landlord shall be
obligated to pay a commission pursuant to separate brokerage agreements (the
"Brokerage Agreements"), and that they know of no other real estate broker or
agent who is entitled to a commission in connection with this Lease. Each party
agrees to indemnify and defend the other party against and hold the other party
harmless from any and all claims, demands, losses, liabilities, lawsuits,
judgments, and costs and expenses (including without limitation reasonable
attorneys' fees) with respect to any leasing commission or equivalent
compensation alleged to be owing on account of the indemnifying party's dealings
with any real estate broker or agent other than the Broker.

        If at the time of renewal or extension of the term of this Lease, the
Brokerage Agreements between Landlord and Brokers provide that Landlord is not
obligated to pay a commission to Broker if Tenant presents to Landlord and/or
Broker a written exclusive listing agreement with another broker, then in the
event that (i) Landlord or its successor in interest is otherwise obligated to
pay a commission to Brokers pursuant to the terms of the Brokerage Agreement as
the result of any renewal or extension of the term of this Lease, and (ii)
Tenant uses a broker other than Brokers in connection with such renewal or
extension of the term of this Lease and such use is not pursuant to such written
exclusive listing agreement with another broker, then Tenant shall be obligated
to pay any fee, commission or other compensation to such broker and Tenant's
indemnity obligation to Landlord, as set forth in this Section 29.20, shall
apply with regard to such broker.

        29.21  Independent Covenants. If Landlord fails to perform its
obligations set forth herein, Tenant shall not, except as expressly provided in
this Lease to the contrary, be entitled (i) to make any repairs or perform any
acts hereunder at Landlord's expense or (ii) to any setoff of the Rent or other
amounts owing hereunder against Landlord; provided, however, that the foregoing
shall in no way impair the right of Tenant to commence a separate action against
Landlord for any violation by Landlord of the provisions hereof so long as, to
the extent required in this Lease, notice is first given to Landlord and an
opportunity is granted to Landlord to correct such violations as

<PAGE>   28

provided in Section 19.5 above.

        29.22  Intentionally Omitted.

        29.23  Transportation Management. To the extent required by Laws, Tenant
shall fully comply with all present or future programs intended to manage
parking, transportation or traffic in and around the Building.

        29.24  Hazardous Material.

               29.24.1 Definition. As used herein, the term "Hazardous Material"
means any hazardous or toxic substance, material or waste which is or becomes
regulated by any local governmental authority, the State of California or the
United States Government. The term "Hazardous Material" includes, without
limitation, any material or substance which is (i) defined as a "hazardous
waste," "extremely hazardous waste" or "restricted hazardous waste" under
Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the
California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste
Control Law), (ii) defined as a "hazardous substance" under Section 25316 of the
California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous
Materials Release Response Plans and Inventory), (iii) defined as a "hazardous
substance" under Section 25281 of the California Health and Safety Code,
Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (iv)
petroleum, (v) asbestos or asbestos containing materials, (vi) listed under
Article 9 or defined as hazardous or extremely hazardous pursuant to Article 11
of Title 22 of the California Administrative Code, division 4, Chapter 20, (vii)
designated as a "hazardous substance" pursuant to Section 311 of the Federal
Water Pollution Control Act (33 U.S.C. Section 1317), (viii) defined as a
"hazardous waste" pursuant to Section 1004 of the Federal Resource Conservation
and Recovery Act, 42 U.S.C. Section 6902 et seq. (42 U.S.C. 6903), or (ix)
defined as a "hazardous substance" pursuant to Section 101 of the Compensation
and Liability Act, 42 U.S.C. Section 9601 et seq. (42 U.S.C. 9601).

               29.24.2 Operating Expenses. Tenant acknowledges that Landlord may
incur costs for complying with laws, codes, regulations or ordinances relating
to Hazardous Material, including, without limitation, the following: (i)
Hazardous Material present in soil or ground water; (ii) Hazardous Material that
migrates, flows, percolates, diffuses or in any way moves onto or under the Real
Property, (iii) Hazardous Material present on or under the Real Property as a
result of any discharge, dumping or spilling (whether accidental or otherwise)
on the Real Property by persons or entities other than Landlord and Tenant; and
(iv) material which becomes Hazardous Material due to a change in laws, codes,
regulations or ordinances which relate to hazardous or toxic material,
substances or waste. Tenant agrees that the costs incurred by Landlord with
respect to, or in connection with, the Project for complying with laws, codes,
regulations or ordinances relating to Hazardous Material shall be paid by Tenant
if such costs are a result of a violation by Tenant of its covenant and
agreement in Section 5.2 of this Lease, and shall be an Operating Expense only
if such costs qualify (x) under this Section 29.24 to the extent that such
compliance does not relate to Hazardous Materials which exist on or under the
Project prior to the commencement of the Lease Term, and (y) under clause (iv)
so long as such cost and compliance with said clause (iv) is amortized over a
seven-year period with Tenant only being responsible for such costs to the
extent that the term of this Lease is included within such seven-year
amortization period, unless the cost of such compliance, as between Landlord and
Tenant, is made the responsibility of Tenant under this Lease. To the extent
such Operating Expense relating to Hazardous Material is subsequently recovered
or reimbursed through insurance, or recovery from responsible third parties, or
other action, Tenant shall be entitled to a proportionate recovery of such
Operating Expense to which such recovery or reimbursement relates.

               29.24.3 Landlord's Representation. Tenant acknowledges receipt of
that certain Report of Phase I Environmental Site Assessment prepared by
Law/Crandall, Inc., dated April 16, 1996. Landlord hereby represents to Tenant
that to the best of Landlord's knowledge and except as otherwise disclosed in
said report, on execution of this Lease, there will be no Hazardous Materials
located in, on or under the Building, the Real Property or the Premises, and
there has been no violation thereon of any law governing Hazardous Materials.

               29.24.4 Third Parties. Tenant and Landlord agree to share equally
any costs directly attributable to Hazardous Substances in, on, under, at or
about the Premises which arise following the Lease Commencement Date and are
caused by a party other than Landlord and Tenant and their respective agents,
contractors, licensees, invitees or employees (it being agreed that each of
Landlord and Tenant shall be solely responsible for costs directly attributable
to Hazardous substances in, on, under, at or about the Premises caused by its
agents, contractors, licensees, invitees or employees.

<PAGE>   29

        29.25  Rules and Regulations. Tenant shall comply with the Rules and
Regulations set forth in Exhibit D, together with any reasonable changes thereto
which may be made by Landlord from time to time.

        29.26  Reasonable Consent. Except for matters for which there is a
standard of consent or approval specifically set forth in this Lease, in which
case the express standard shall control, and except for matters which could (i)
adversely affect the Systems and Equipment, (ii) adversely affect the Building
structure, or (iii) affect the exterior appearance of the Building, in which
case Landlord shall have the right to act in its sole and absolute discretion
(but at all times in good faith) as to the matters described in items (i), and
(ii) and (iii) above, any time the consent or approval of Landlord or Tenant is
required under this Lease, such consent or approval shall not be unreasonably
withheld, conditioned or delayed. Subject to the foregoing, and except for
matters pertaining to the exercise by either party of any remedies in the event
of a default by the other party, in the event this Lease grants Landlord or
Tenant the right to take action, exercise discretion, establish rules and
regulations or make an allocation or other determination, Landlord and Tenant
shall act reasonably and in good faith.

        29.27  Counterparts. This Lease may be executed in counterparts, each of
which shall be deemed an original, but such counterparts, when taken together
shall constitute one agreement.

        29.28  Building Security. Tenant, at its sole expense, shall be
permitted to install its own security system (which may be a card-key security
system) in the Building and any portion thereof.

        29.29  Telecommunications Equipment and Other Appurtenances.

               29.29.1 Installation. At any time during the Lease Term, Tenant
shall have the exclusive right, so long as Tenant is the sole lessee of all
non-common areas of the Building and thereafter a non-exclusive right, to
install at Tenant's sole cost and expense, satellites, microwave dishes and any
other type of telecommunications or communications device ("Communications
Equipment") upon the roof of the Building at a location designated by Tenant,
which location as well as Tenant's plans and specifications relating to the
installation of Tenant's Communications Equipment shall be subject to Landlord's
reasonable approval, without the payment of operating expenses; provided,
however, Tenant shall pay all cost of such Communications Equipment, including,
without limitation, the utilities and maintenance necessary to Tenant's
operation of the Communications Equipment and liability insurance for such
Communications Equipment, and Landlord may require Tenant to install screening
around such Communications Equipment, at Tenant's sole cost and expense, as
reasonably designated by Landlord or as required by applicable law. The
Communications Equipment shall comply with all governmental laws and ordinances
and with the CC&R's. Tenant shall also have the right to use the Building
shafts, risers and/or conduits within the Building (including the roof) for the
installation and maintenance of conduits, cables, ducts, flues, pipes and other
devices for communications, data processing devices, supplementary HVAC (if
necessary) and other facilities consistent with Tenant's use of the Building and
the Premises. Tenant shall also have the right to install and maintain a back-up
generator and enclosure for support of its communications and data systems.

               29.29.2 Maintenance and Repair. Tenant shall maintain, repair or
replace Communications Equipment, at Tenant's sole cost and expense. During the
Lease Term, Tenant shall have the obligation to repair all damage to the
Building rooftop caused by the installation, repair, maintenance and use of the
Communications Equipment. Further, Tenant shall have the obligation to repair
any damage to the Building rooftop caused by Tenant's Communications Equipment,
reasonable wear and tear, casualty and repairs which are specifically made the
responsibility of Landlord hereunder excepted.

               29.29.3 Termination. Tenant shall be entitled at any time to
terminate such use of space on the roof, in which case Tenant shall be relieved
of all of its obligations to pay any utilities and/or maintenance charges
attributable to the operation of Tenant's Communications Equipment upon removal
of all such equipment from the roof of the Building by Tenant. Upon Tenant's
termination of the use of space on the roof and removal of its Communications
Equipment therefrom, Tenant shall have the obligation to repair all damage to
the Building rooftop caused by such removal of the Communications Equipment,
reasonable wear and tear, casualty and repairs which are specifically made the
responsibility of Landlord under this Lease excepted.

                 Remainder of page is intentionally left blank.

<PAGE>   30

IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be executed
the day and date first above written.

                             Landlord:

                             Fund VIII and Fund IX Associates,
                             a Georgia joint venture

                             By:  Wells Real Estate Fund IX, L.P.,
                                  a Georgia limited partnership, general partner

                                  By:  Wells Capital, Inc.,
                                       a Georgia corporation, general partner

                                       By: /s/ DOUGLAS P. WILLIAMS
                                          ---------------------------
                                       Name: Douglas P. Williams
                                       Title: Senior Vice President

                             Tenant:

                             QUEST SOFTWARE, INC.

                             By:    /s/ DAVID M. DOYLE
                                    ------------------------

                             Name:  David M. Doyle
                                    ------------------------

                             Title: President
                                    ------------------------

<PAGE>   31

                                    EXHIBIT A

                            LEGAL DESCRIPTION OF LAND

<PAGE>   32

                                    EXHIBIT B
                               TENANT IMPROVEMENTS

        1.     The Premises shall be delivered to and accepted by Tenant in its
existing condition.

        2.     Tenant shall select an architect and contractor approved by
Landlord to prepare plans and specifications for for and to construct the
leasehold improvements desired by Tenant. Landlord acknowledges that it has
approved Gensler as architect and either Nexus Construction Services, Inc. or
Turelk, Inc. as the contractor. The plans and specifications shall be submitted
to Landlord for approval, which approval shall not be unreasonably withheld or
delayed. To facilitate Landlord's approval of Tenant's architect and contractor,
Tenant shall obtain and furnish to Landlord an AIA qualification statement and
insurance certificate.

        3.     Landlord will provide Tenant with an allowance of up to $11.00
per square foot of rentable area in the Premises to be applied to the costs
actually incurred by Tenant in improving such space. Such allowance must be
applied to the actual cost of permanent leasehold requirements in the space, not
including cabling and wiring, all in accordance with the approved plans and
specifications, and no portion of such allowance may be utilized for Tenant's
owned property or other similar expenses.

        4.     (a)    Wells Management Company, Inc. shall receive a
construction management fee of $10,405 as consideration for its construction
oversight, which amount shall be deducted from the allowance.

               (b)    The balance of the aforesaid allowance shall be disbursed
by Landlord to Tenant from time to time subject to and conditioned upon Tenant's
fulfillment of the following conditions for disbursement.

               (c)    From time to time after the date of execution of this
Lease, Tenant shall submit to Landlord a request for funds ("Request for
Funds"), containing a statement by or on behalf of Tenant setting forth the
amount of disbursement sought with an itemized breakdown of those expenses
comprising such requested disbursement and accompanied by (i) documentary
evidence satisfactory to Landlord confirming the expenditures identified in the
Request for Funds, and (ii) to the extent any such expenditures are for the
payment for labor performed on and/or materials stored on or incorporated into
any work on the Premises, lien release waivers in form and content satisfactory
to Landlord and executed by each engineer, contractor, subcontractor, supplier
and materialman to be paid pursuant to the Request for Funds and covering all
labor, services, equipment and materials to be paid thereunder.

               (d)    Upon verification of the accuracy of a Request for Funds,
including by Landlord's inspection of the Premises, or otherwise, which
verification shall occur no later than 10 business days after receipt by
Landlord of the Request for Funds and accompanying materials, and upon
satisfaction of all applicable conditions contained herein, Landlord shall make
disbursements to Tenant.

               (e)    Final disbursement shall, in addition to the other
requirements set forth herein, be subject to receipt by Landlord of a
certificate of occupancy allowing Tenant to occupy the Premises without
restriction.

        5.     Tenant shall indemnify and hold Landlord harmless from and
against any and all losses, damages, costs (including attorneys' fees),
liabilities, liens or claims of liens, or causes of action arising out of or
relating to the work of Tenant and its contractors in connection with the
construction of its Tenant Improvements.

<PAGE>   33

                                    EXHIBIT C
                           DIRECT EXPENSES EXCLUSIONS

        1.     Exclusions From Direct Expenses. Despite any other provision of
Article 4 of the Lease, and except as otherwise expressly permitted by the
Lease, Direct Expenses shall not include:

               (a)    Depreciation, interest, or amortization on mortgages or
ground lease payments, except as otherwise expressly permitted by the terms of
the Lease.

               (b)    Real estate brokers' leasing commissions.

               (c)    Initial improvements or alterations to tenant spaces.

               (d)    Any costs expressly excluded from Direct Expenses
elsewhere in the Lease.

               (e)    Costs of any items for which Landlord receives
reimbursement from insurance proceeds or a third party. Insurance proceeds shall
be excluded from Direct Expenses in the year in which they are received, except
that any deductible amount under any insurance policy shall be included within
Direct Expenses.

               (f)    Costs of capital improvements, except as otherwise stated
in Section 7.1.1.

               (g)    Interest, principal, depreciation, attorney fees, costs of
environmental investigations or reports, points, fees, and other lender costs
and closing costs on any mortgage or mortgages, ground lease payments, or other
debt instrument encumbering the Building or Real Property.

               (h)    Insurance premiums to the extent of any refunds of those
premiums, and insurance deductibles in excess of commercially reasonable levels
for Comparable Buildings.

               (i)    Costs, fees, and compensation paid to Landlord, or to
Landlord's subsidiaries or affiliates, for services in or to the Building, or
for supplies or other materials, to the extent that they exceed the charges for
comparable services or supplies rendered by an unaffiliated third party of
comparable skill, competence, stature, and reputation.

               (j)    Management fees in excess of the sum of (i) administrative
salaries of $7,392 for the first Lease Year, increasing by 2.5% in each
subsequent Lease Year, (ii) liability insurance maintained by Landlord pursuant
to Section 10.2, and (iii) 10% of the costs described in subparagraphs (i) and
(ii).

               (k)    counting and audit fees, except as otherwise provided in
Sections 4.5 and 14.4.

        2.     Adjustment of Taxes. For purposes of this Lease, Tax Expenses
attributable to any Expense Year shall be the amount of Tax Expenses assessed
for that year. If Landlord later receives any supplemental or additional
assessment for any such Expense Year, Tenant shall pay Landlord, within thirty
(30) days after the date of the invoice for this assessment, Tenant's Share of
the supplemental or additional assessment. If, by the beginning of the last year
of the Lease Term, the Real Property has not been fully assessed for any year
during the Lease Term, Tax Expenses shall be adjusted to the Tax Expenses that
would have been payable in such year or years if the Real Property had been
fully assessed. These provisions shall survive the Lease Expiration Date or
other termination of this Lease.

<PAGE>   34

                                    EXHIBIT D
                              RULES AND REGULATIONS

Tenant shall faithfully observe and comply with the following Rules and
Regulations.

1.      Except as otherwise provided in Article 23 of this Lease, no sign,
placard, picture, advertisement, name or notice shall be inscribed, displayed or
printed or affixed on or to any part of the outside of the Building without the
prior written consent of Landlord. Landlord shall have the right to remove any
such sign, placard, picture, advertisement, name or notice, unless Landlord has
given written consent, without notice to and at the expense of Tenant. Landlord
shall not be liable in damages for such removal unless the written consent of
Landlord had been obtained.

2.      Tenant, upon the termination of its tenancy, shall deliver to Landlord
all keys, magnetic locks, security systems (if not removed by Tenant), etc. of
offices, rooms and toilet rooms which shall have been furnished to Tenant or
which Tenant shall have made.

3.      The toilet rooms, toilets, urinals, wash bowls and other apparatus shall
not be used for any purpose other than that for which they were constructed, and
no foreign substance of any kind whatsoever shall be thrown therein, and the
expense of any breakage, stoppage, or damage resulting from the violation of
this rule shall be borne by Tenant.

4.      Tenant shall not use the Premises in any manner which exceeds the floor
load design capacity of the floor on which the Premises are located.

5.      Tenant agrees that its use of electrical current shall never exceed the
capacity of the existing base Building feeders, risers or wiring installation.

6.      No part of the Building or Premises shall be used for gambling, immoral
or other unlawful purposes. No birds or animals of any kind shall be brought
into the Building (other than trained assist dogs required to be used by the
visually impaired).

7.      The sidewalks, entrances, passages, corridors, halls, elevators, and
stairways in the Building and on the Real Property shall not be used for any
purposes other than those for which same were intended as ingress and egress.
Tenant shall use reasonable efforts to see that the doors of the Premises are
closed and securely locked before leaving the Building and to cause all water
apparatus (i.e. kitchen sinks and appliances, restroom fixtures, water
fountains, etc.) to be entirely shut off before Tenant or Tenant's employees
leave the Building, so as to prevent waste or damage.

8.      Landlord shall have the right to prohibit any advertising by Tenant
which utilizes Landlord's name, or a picture or visual rendition of the Building
but only to the extent which the same tends, in Landlord's reasonable
discretion, to impair the reputation of the Building or its desirability as a
location for offices and other permitted uses, and upon written notice from
Landlord, Tenant shall refrain from or discontinue such advertising.

9.      In the event of any conflict between the provisions of these Rules and
Regulations and the other provisions of this Lease, the other provisions of this
Lease shall control.

<PAGE>   35

                                    EXHIBIT E

        1.     Covenants, Conditions and Restrictions in an instrument recorded
September 29, 1978 in Book 12864, page 63 of Official Records, as amended by
documents declaring modifications thereof recorded in Book June 5, 1979 13173,
page 1210 of Official Records and recorded May 21, 1980 in Book 13613, page 322
of Official Records.

        2.     Easements, Covenants and Conditions contained in the Deed by and
between The Irvine Company, as Grantor, and SAN/BAR Corporation, as Grantee,
recorded March 30, 1979 in Book 13086, page 1976 of Official Records.

        3.     The Terms, Provisions and Conditions contained in a document
entitled "Declaration of Special Land Use Restrictions ("Regulations"),
Abatement Lien, Mortgage Lien and Option to Repurchase", executed by and between
The Irvine Company and SAN/BAR Corporation, recorded March 30, 1979 in Book
13086, page 1979 of Official Records.

        4.     The Terms, Provisions and Conditions contained in a document
entitled "Reciprocal Easement Agreement", executed by and between The Irvine
Company, Crow IIC East, SAN/BAR Corporation and CB Institutional Fund IV,
recorded January 6, 1982 as Instrument No. 82-004179 of Official Records.

        5.     Covenants, Conditions and Restrictions in an instrument recorded
January 11, 1984 as Instrument No. 84-014634 of Official Records.

<PAGE>   36

                                    EXHIBIT F

                      FORM OF TENANT'S ESTOPPEL CERTIFICATE

        The undersigned as Tenant under that certain Office Lease (the "Lease")
made and entered into as of __________, 2000, and between FUND VIII AND FUND IX
ASSOCIATES, a Georgia joint venture partnership, as Landlord, and the
undersigned as Tenant, for Premises being the entire Office Building located at
15253 Bake Parkway, Irvine, California certifies as follows:

        1.     Attached hereto as Exhibit A is a true and correct copy of the
Lease and all amendments and modifications thereto. The documents contained in
Exhibit A represent the entire agreement between the parties as to the Premises.

        2.     The undersigned has commenced occupancy of the Premises described
in the Lease, currently occupies the Premises, and the Lease Term commenced on
_________.

        3.     The Lease is in full force and effect and has not been modified,
supplemented or amended in any way except as provided in Exhibit A.

        4.     Tenant has not transferred, assigned, or sublet any portion of
the Premises nor entered into any license or concession agreements with respect
thereto except as follows:

        5.     Base Rent became payable on _______________.

        6.     The Lease Term expires on _________________.

        7.     To the actual knowledge of Tenant, without investigation or
inquiry and except as specified herein, all conditions of the Lease to be
performed by Landlord necessary to the enforceability of the Lease have been
satisfied and Landlord is not in default thereunder.

        8.     No rental has been paid more than thirty (30) days in advance and
no security has been deposited with Landlord except as provided in the Lease.

        9.     To the actual knowledge of Tenant, without investigation or
inquiry and except as specified herein, as of the date hereof, there are no
existing defenses or offsets that the undersigned has, which preclude
enforcement of the Lease by Landlord.

        10.    All monthly installments of Base Rent, all Additional Rent and
all monthly installments of estimated Additional Rent have been paid when due
through _________________. The current monthly installment of Base Rent is
$__________. The current monthly installment of Additional Rent is
$____________.

        11.    The undersigned acknowledges that this Estoppel certificate may
be delivered to Landlord's prospective mortgagee, or a prospective purchaser,
and acknowledges that it recognizes that if same is done, said mortgagee,
prospective mortgagee, or prospective purchaser will be relying upon the
statements contained herein in making the loan or acquiring the property of
which the Premises are a part, and in accepting an assignment of the Lease as
collateral security, and that receipt by it of this certificate is a condition
of making of the loan or acquisition of such property.

        Executed at ______________ on the _____ day of ______________, ______.

                                 "Tenant":

                                 QUEST SOFTWARE, INC., a California corporation

                                 By:  ____________________________

                                 Its: ____________________________

<PAGE>   37

                                    EXHIBIT G

                                BUILDING SIGNAGE

        The building signage shall comply with the Covenants, Conditions and
Restrictions and all applicable regulations of the City of Irvine, and shall
meet with Landlord's approval, which approval shall not be unreasonably withheld
or delayed.

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