Document:

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                                                                   EXHIBIT 10.21

                               DATED        1999

                           OGDEN PROPERTIES LIMITED
                                      and
                              DIGITAL ISLAND INC
               Counterpart/
                                   L E A S E
                                 in respect of
                            Third Floor City Reach
                5 Greenwich View Place Millharbour Isle of Dogs

                                                            Le Brasseur J Tickle
                                                                      Solicitors
                                                                  6-7 Park Place
                                                                   Leeds LS1 2RU

                                                              Tel:  0113 2341220
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                                THE PARTICULARS

1.   "The Landlord"                OGDEN PROPERTIES LIMITED

     Registered Office             Boston Hall, Boston Spa, Yorkshire
                                   LS23 6AD

2.   "The Tenant"                  DIGITAL ISLAND INC

     Registered Office             Suite 1200 45 Fremont Street San Francisco
                                   CA 94105

3.   "The Demised Premises"        Third Floor City Reach, 5 Greenwich View
                                   Place, Millharbour, Isle of Dogs London
                                   E14 9NN

4;   "The Fixed Term"              Ten Years (10 years)

5.   "the Term Commencement Date"  13th September 1999

6    "The Term Expiry Date"        12th September 2009

7    "The Initial Rent"            The Initial Rent means from and including
                                   the Term Commencement Date until the
                                   Rent Start Date a peppercorn (if demanded)
                                   and thereafter the sum of (Pounds)204,440 per
                                   annum

8.   "The Rent Start Date"         13th October 1999

9.   "The Rest Review Date"        12th September 2004

10.  "The Service Charge Date"     13th September 1999

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1.   THE PARTIES

THIS LEASE is made the    day of       One thousand nine hundred and ninety nine

BETWEEN

THE LANDLORD named in the Particulars (hereinafter called "the Landlord") of the
first part and THE TENANT named in the Particulars (hereinafter called "the
Tenant") of the second part and THE SURETY named in the Particulars (hereinafter
called "the Surety") of the third part

2.   DEFINITIONS

IN this Lease except where the context otherwise requires the following words
have the following meanings

Account Day               means the 31st day of December or such other day as
                          the Landlord shall notify to the Tenant and the first
                          Account Day shall be the 31st day of December 1999

adjoining property        means the property of the Landlord abutting upon
                          adjacent to or situate in the vicinity of the Demised
                          Premises including where the Demised Premises form
                          part of a larger property belonging to the Landlord
                          the other part or parts of that property

Advance Service Charge    means the sum of (Pounds)59,180 (being the annual
                          payable during the period up to the first Account Day)

Authorised Guarantee      means the form of Authorised Guarantee Agreement set
                          out in the Sixth Schedule hereto

Atrium                    means the entrance lobby shared with the adjoining
                          office building shown edged yellow on the Site Plan

Atrium Services           means the services provided for the Atrium and may
                          include in particular but without prejudice to the
                          generality of the foregoing the matters set out in the
                          Fourth Schedule Part III but subject to the provisos
                          referred to in Clause 6.3 hereof

Building                  means the office building constructed on the Property
                          comprising ground floor and seven upper floors the
                          basement car park with the plant rooms serving the
                          same

Common Parts              means those parts of the Building which it is not
                          intended shall be demised to any particular tenant or
                          occupier which shall include without prejudice to the
                          generality of the foregoing the lifts stairs toilets
                          corridors service corridors and service rooms and
                          plant rooms and fire escapes

Conduits                  means all ducts shafts cisterns tanks radiators water
                          gas electricity and telephone supply pipes wires and
                          cables sewers drains soil pipes waste water pipes
                          gutters soakaway meters and any other pipes wires and
                          cables other than those belonging to the relevant
                          supply authorities

Demised Premises          means all that the premises described in the First
                          Schedule hereto but including all additions and
                          improvements thereto

Disputes Procedure        means the procedure for settling disputes as to value
                          in accordance with the

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                          provisions of Clause 9 hereof

Estate                    means the piece or parcel of land at Millharhour Isle
                          of Dogs in the London Borough of Tower Hamlets and
                          known as Greenwich View Place as the same is for the
                          pu1poses of identification only edged green on the
                          Site Plan

Fixed Term                means the period of years specified in the Particulars
                          commencing from the Term Start Date specified in the
                          Particulars

Floor Plans               mean the plans annexed hereto and marked 'Third Floor
                          Plan' "Ground Floor Plan" and "Basement Plan"

Forecourt                 means the external areas of the Property not
                          comprised within the Building

Head Lease                means the Lease dated the 18th day of April 1991
                          between Robert Ogden (1) the Landlord (2)

Initial Defect            means a defect in or want of repair of the Building
                          which shall come to or be brought to the attention of
                          the Landlord before I" September 2002 and which arises
                          out of the original design or construction of the
                          Building and is due to faulty or defective design bad
                          workmanship or the use of defective or unsuitable
                          materials in the said original construction of the
                          Building

Initial Rent              means the annual rent described in the Particulars

Insurance Rent            means the rents payable for the insurance of the
                          Demised Premises

Insured Risks             means fire storm tempest lightning impact explosion
                          aircraft (except in war) and articles dropped
                          therefrom (save in war) and malicious damage and such
                          other risks as the Landlord shall from time to time
                          reasonably require in so far as any such risk is in
                          each case available in the United Kingdom insurance
                          market on reasonably acceptable commercial terms

Market Rent               means the rent calculated in accordance with Clause
                          8.1 hereof

Part I Services           means all services provided for the Estate and any
                          adjoining or neighbouring land which may at any time
                          be managed controlled or used in conjunction with the
                          Estate or any part or parts thereof respectively by or
                          on behalf of the Landlord and may include in
                          particular but without prejudice to the generality of
                          the foregoing the matters set out in the Fourth
                          Schedule hereto but subject to the provisos referred
                          to in Clause 6.3 hereof

Part II Services          means all services provided for the Building and may
                          include in particular but without prejudice to the
                          generality of the foregoing the matters set out in the
                          Fourth Schedule Part II but subject to the provisos
                          referred to in Clause 6.3 hereof

Permitted                 means a part of the Demised Premises comprising an
                          area which when sublet will not create with any area
                          retained in the occupation of the Tenant more than six
                          separate areas of occupation or more than six
                          sublettings

Plan                      means the plans annexed hereto

Planning Acts             means the Town and Country Planning Act 1990 and the
                          Public Health Acts 1875-1969 or any statutory
                          modification or re-enactment thereof for the time

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                          being in force and any regulations or orders made or
                          having effect thereunder

Prescribed Rate           means 4 per centum per annum above the National
                          Westminster Bank plc or its successors in business
                          bank rate or other equivalent prime lending rate for
                          the time being in force

Property                  means that part of the Estate demised to the Landlord
                          by the Headlease (including the Demised Premises) and
                          together with the basement the plant rooms serving the
                          same the Forecourt and the Unit Car Park Spaces

Proportion                means a proportion determined from time to time by the
                          Surveyor whose determination shall be final and
                          binding on the parties (save in the case of manifest
                          error) but in making his apportionment as to what
                          proportion whether it be of service charges or
                          otherwise is to be attributable to the Demised
                          Premises the Surveyor shall normally make such
                          apportionment based on the proportion which the net
                          lettable area of the Demised Premises bears to the net
                          lettable area of the Building but may make such
                          apportionment on some other fair and reasonable basis
                          if he considers the same to be fair and reasonable

Qualifying Assignee       means a firm person or company which complies with
                          each of the following criteria

                          (a) that can show that it has net profits before tax
                          (as stated in its accounts prepared and published in
                          accordance with the Companies Act 1985 and 1989 and
                          relevant statements of accounting practice in the case
                          of a limited company or in any other case prepared in
                          accordance with recognised accounting and auditing
                          procedures ("the Audited Accounts") for each of the
                          three completed financial periods (each such period
                          not to exceed 12 months) of the proposed assignee
                          immediately preceding the date of application for
                          Licence to Assign which exceed three time the
                          aggregate annual amount of rents payable hereunder at
                          the date of the proposed assignment

                          (b) that can show that it has net realisable assets
                          which (after the deduction of all figures attributed
                          to goodwill and other intangible assets and of any
                          prospective liability for corporation tax or capital
                          gain tax on capital gains in the event of the assets
                          being realised) as shown in the proposed assignee's
                          preceding financial period of the proposed assignee
                          exceed in value three times the aggregate annual
                          amount of the rents payable hereunder at the date of
                          proposed assignment

                          (c) whose status as the tenant under this Lease would
                          not in the reasonable opinion of the Landlord
                          materially reduce the open market of the Landlord's
                          interest in either the Demised Premises or the
                          Building

                          (d) it is not a company which is for the time being a
                          holding company or subsidiary of the Tenant or another
                          subsidiary of such holding company within the meaning
                          of Section 736 of the Companies Act 1985 and such
                          Assignee together with any surety (other than the
                          Assignor under an authorised guarantee agreement) is
                          on aggregate no less substantial in financial terms
                          than the Tenant for the time being (together with any
                          guarantor for that tenant) at the date of the
                          application for licence to assign

                          (e) it does not enjoy diplomatic or state immunity but
                          this criteria shall not apply where the proposed
                          assignee is the Government of the United Kingdom of
                          Great Britain and Northern Ireland or any department
                          thereof

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                          (f) it is not resident in (which in the case of a
                          corporation shall mean having its registered office
                          located in) a jurisdiction which has no reciprocal
                          enforcement of judgments with the United Kingdom of
                          Great Britain and Northern Ireland

Rent Start Date           means the date named in the Particulars (being the
                          date for the commencement of the payment of the Yearly
                          Rent)

rents                     means the Yearly Rent the Service Charge and the
                          Insurance Rent

Review Day                means the last day of the Review Year

Review Period             means the period starting with the day following the
                          Review Day up to and including the expiry of the Term

Review Year               means the fifth year of the Term

Service Area              means the common areas accessways pedestrian ways
                          service roads and service areas the car and lorry
                          parks and loading bays and any skip areas and
                          landscaped areas within the Estate but excluding for
                          the avoidance of doubt the Property and any part of
                          the Estate specifically or intended to be demised to
                          any occupational tenant

Service Charge            means the rents payable for the provision of the
                          Services in accordance with Clause 8.2 hereof

Service Charge Date       means the date named in the Particulars

Service Operator          means either the Landlord or the person providing the
                          Part I Services in accordance with the Head Lease or
                          any superior lease

Services                  means the Part I Services and the Part II Services and
                          the Atrium Services

Site Plan                 means the plan annexed hereto and marked Site Plan

Structure                 means the main structural walls of the Building
                          together with the main beams foundations and columns
                          forming the principal load bearing structure of the
                          Building together with the roof and roof supports

Surveyor                  means the Surveyor for the time being of the Landlord
                          (who may be a person employed by or otherwise
                          connected with the Landlord)

Term                      means the Fixed Term together with the period of any
                          extensions thereof or of any holding over whether by
                          statute or at common law

Unit Car Park Spaces      means the eight (8) car parking spaces of which the
                          Tenant is granted exclusive use hereunder and shown
                          coloured blue on the Site Plan and/or Floor Plans

Yearly Rent               means until the Review Day the Initial Rent and
                          thereafter during each successive Review Period a rent
                          equal to One hundred and eighty eight thousand three
                          hundred pounds ((Pounds)188,300) or the Market Rent as
                          at the relevant Review Day whichever be the greater
                          such term includes neither the Service Charge nor the
                          Insurance Rent

3.   INTERPRETATION

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3.1  Words importing only the singular number shall where appropriate include
the plural number

3.2  Where the Tenant or the Surety at any time consists of two or more persons
covenants made by those persons shall be deemed to be joint and several

3.3  Words importing the neuter gender only shall include the masculine or
feminine gender (as the case may be) and words importing masculine gender shall
     include the feminine gender and vice versa (including

3.4  Any reference to a statute shall be deemed to include reference to any
further statute for the time being in force amending replacing modifying or
supplementing such statute and any regulations directions or orders made
thereunder

3.5  Any reference to the Landlord shall include its successors in title and
assigns and any reference to the Tenant shall include its successors in title
and assigns

4.   DEMISE AND RENT RESERVED

IN consideration of the respective rents and covenants by and on the part of the
Tenant hereinafter reserved and contained the Landlord hereby demises unto the
Tenant ALL THAT the Demised Premises TOGETHER WITH the easements and rights
specified in the Second Schedule hereto AND EXCEPT AND RESERVING unto the
Landlord and its tenants servants and licensees and all other persons who shall
now have or may hereafter be granted the same by the Landlord the rights and
easements specified in the Third Schedule hereto TO HOLD the same UNTO the
Tenant for the Fixed Term YIELDING AND PAYING to the Landlord:-

4.1  Yearly during the Term the Yearly Rent payable without any deduction by
equal quarterly payments in advance on the usual quarter days in every year and
proportionately for any period of less than a year the first such payment being
a proportionate sum in respect of the period from the Rent Commencement Date to
and including the day before the quarter day next after the Rent Commencement
Date to be paid on the Rent Commencement Date and

4.2  By way of further rent the Service Charge and the Insurance Rent to be
calculated from and apportioned as necessary and made on the Service Charge Date

4.3  By way of further rent any interest payable by the Tenant on all such rents
as hereinafter appearing

4.4  If at any time and whenever the Market Rent is not ascertained until after
the relevant Review Date the Tenant shall continue to pay the Yearly Rent at the
rate applicable immediately before the relevant Review Date and within seven
days after the date of such ascertainment pay to the Landlord the amount by
which the rent paid on the usual quarter days on or after the relevant Review
Date falls short of the Market Rent together with interest thereof at four per
cent (4%) below the Prescribed Rate

TENANTS COVENANTS

5.   THE Tenant hereby covenants with the Landlord in manner following:-

To pay Rent

5.1.1  To pay the rent on the days and in the manner set out in this Lease and
not to exercise or: seek to exercise any right or claim to withhold rent or any
right or claim to legal or equitable set-off

5.1.2  If so required in writing by the Landlord to make such payments by
Bankers Order or Credit Transfer to any bank and account in the United Kingdom
that the Landlord may from time to time nominate

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5.1.3  If the Tenant shall fail to pay the rents or any other sum due under the
Lease whether formally demanded or not to pay to the Landlord interest at the
Prescribed Rate on all rents or other sum from the date when they were due to
the date on which they are paid

5.1.4  nothing in the preceding clause shall entitle the Tenant to withhold or
delay any payment of the rents or any other sum due under this Lease after the
date upon which they fall due or in any way prejudice affect or derogate from
the rights of the Landlord in relation to such non-payment including (but
without prejudice to the generality of the above) under the proviso for re-entry
contained in this Lease

To Pay Outgoings

5.2  Subject only to any statutory direction to the contrary to pay and to
indemnify the Landlord against:

5.2.1  All rates taxes assessments duties charges outgoings and impositions
whatsoever (whether parliamentary parochial or otherwise) which are now or may
at any time hereafter be assessed charged or imposed upon the Demised Premises
or on the owner or occupier in respect thereof including a Proportion of
anything payable in respect of the Demised Premises or any part thereof and the
adjoining property of the Landlord or adjacent property or otherwise

5.2.2  Value Added Tax (or any tax of a similar nature that may be substituted
for it or levied in addition to it) chargeable in respect of any payment made by
the Tenant under any of the terms of or in connection with this Lease or in
respect of any payment made by the Landlord where the Tenant agrees in this
Lease to reimburse the Landlord for such payment

To pay for services

5.2.3  To pay for all gas and electricity and water consumed on the Demised
Premises and in the event of such supplies not being separately metered to the
Demised Premises by the relevant supply authority to pay a Proportion of the
costs charges and expenses incurred by the Landlord in respect of such supply
having regard to the consumption measured where appropriate by any sub-meters
which may be installed from time to time for the Demised Premises and if so
required by the Landlord to install and maintain within the Demised Premises
appropriate sub meters for any such services as aforesaid and to observe and
perform at the Tenant's expense all present and future regulations and
requirements of the supply authorities and to keep the Landlord indemnified in
respect of such  regulations and requirements

Void Rates Indemnity

5.2.4  To indemnify the Landlord against any rates as aforesaid payable by the
Landlord after the expiration or sooner determination of the Term through the
Landlord's inability to claim void rate relief for the maximum period
(commencing with the date of expiration or sooner determination of the Term)
which would have been allowed had the Demised Premises been occupied up to the
date of the expiration or sooner determination of the Term

To Paint Inside

5.3  In the third year and every third year thereafter of the Term and in the
last three months of the Term whether determined by effluxion of time or
otherwise to paint or otherwise treat as the case may be all the inside wood and
ironwork of the Demised Premises usually or requiring to be painted or otherwise
treated with two coats of good quality paint or other suitable material of good
quality in a proper and workmanlike manner and on the last occasion in a colour
first approved by the Landlord (such approval not to be unreasonably withheld or
delayed) and also wash paint as aforesaid or repaper the ceilings and walls in
the usual manner

To Repair

5.4  Throughout the Term to repair and keep in good and substantial repair
(damage by the Insured Risks excepted (save to the extent of the excess which
shall be met and paid by the Tenant) unless payment of any

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insurance money shall be refused as a result of any act or default of the Tenant
and without prejudice to the Landlord's right to reinstate in the event of
damage by any of the Insured Risks) the whole of the .Demised Premises excluding
the Structure but including all Conduits solely serving the Demised Premises and
all additions thereto Provided that (but without prejudice to the Tenant's
painting obligations) the Tenant shall not be required to put the Demised
Premises into a better state of repair than they are in at the date hereof as
shown in the Schedule of Condition annexed hereto AND IN PARTICULAR but without
prejudice to the generality of the foregoing:

5.4.1  when and so often as any Landlord's fixtures belonging to the Demised
Premises shall so require to substitute other fixtures of a similar description
quality and value to the reasonable satisfaction of the Landlord

5.4.2  to treat maintain wash and clean in a suitable manner all washable
surfaces metalwork woodwork window frames doors and door frames and all fixtures
and fittings and items not required to be painted

5.4.3  to keep the Unit Car Park Spaces and the Demised Premises generally in a
proper and neat order and condition and to ensure that no vehicle maintenance is
carried on thereon and that no petrol or oil is discharged from any vehicles
standing on the Forecourt

5.4.4  to clean the interior face of the windows in the Demised Premises at
least once a month

PROVIDED THAT if the Tenant shall fail to keep the Demised Premises or leave the
same at the expiration or sooner determination of the Term in such condition
whether as to painting or repair as aforesaid then and in such case the Landlord
may do or effect all such repairs renovations and decorations for which the
Tenant shall be liable hereunder and the cost thereof shall be paid by the
Tenant to the Landlord on demand and the certificate of the Landlord or the
Landlords Surveyor certifying the cost to the Landlord shall be final and
binding on the Tenant

To Yield Up

5.5.1  At the expiration or sooner determination of the Term quietly to yield up
the Demised Premises so painted polished papered treated washed repaired
cleansed and kept as aforesaid (damage by the Insured Risks excepted unless
payment of any insurance money shall be refused as a result of any act or
default of the Tenant but subject to such excess as aforesaid)

5.5.2  To leave upon the Demised Premises for the absolute use and benefit of
the Landlord all such alterations and additions as the Tenant shall make or
place thereon without any compensation therefor but this provision shall not
extend to the Tenant's trade fixtures and the Tenant shall be at liberty at or
before the expiration or sooner determination of the Term to remove all Tenant's
trade fixtures (including partitioning) which have been erected or set up by the
Tenant both before and after the commencement of the Term the Tenant forthwith
making good all damage done or caused by such removal

5.5.3  If called upon by the Landlord so to do at the expiration or sooner
determination of the Term to remove all partitioning installed by the Tenant in
the Demised Premises and to make good the Demised Premises to the satisfaction
of the Surveyor

To Comply with Enactments

5.6.1  At all times during the Term to observe and comply in all respects with
the provisions and requirements of any and every enactment (which expression in
this covenant includes as well as any and every Act of Parliament already or
hereafter to be passed any and every order regulation and bye-law already or
hereafter to be made under or in pursuance of any such Acts including but
without prejudice to the generality of this covenant or clause the Offices Shops
and Railway Premises Act 1963 and the Factories Act 1961) so far as they relate
to or affect the Demised Premises or the user thereof for the purposes of any
manufacture process trade or business or the employment or residence therein of
any person or persons or any fixtures machinery plant or chattels for the time
being affixed thereto or being thereupon or used for the purposes thereof and to
execute all works and provide and maintain all arrangements which by or under
any enactment or by any government department local authority or other public
authority or duly authorised Officer or Court of competent jurisdiction acting
under or in pursuance of

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any enactment are or may be directed or required to be executed provided and
maintained by a tenant or occupier of premises at any time during the Term upon
or in respect of the Demised Premises or in respect of any such user thereof or
employment or residence therein of any person or persons or fixtures machinery
or chattels as aforesaid and to indemnify the Landlord at all times against all
costs charges and expenses of or incidental to the execution of any works or the
provision or maintenance of any arrangements so directed or required as
aforesaid and not at any time during the Term to do or omit or suffer to be done
or omitted on or about the Demised Premises any act or thing by reason of which
the Landlord may under any enactment incur or have imposed upon it or become
liable to pay any penalty damages compensation costs charges or expenses

To Comply with Fire Escape Requirements

5.6.2  At all times during the Term at the Tenant's expense to comply with all
requirements from time to time of the appropriate authority in relation to means
of escape from the Demised Premises in case of fire or other emergency and at
the expense of the Tenant to keep the Demised Premises sufficiently supplied and
equipped with fire fighting and extinguishing apparatus and appliances of a type
suitable in all respects to the type of user of or business manufacture process
or trade carried on upon the Demised Premises such apparatus and appliances to
be open to the inspection and to be maintained to the satisfaction of the
Landlord (so far as not opposed to the statutory obligation of the Tenant) and
also not to obstruct the access to or means of working such apparatus and
appliances by their operations at or connected with the Demised Premises

To Comply with Planning Requirements

5.7.1  At all times during the Term to comply in all respects with the
provisions and requirements of the Planning Acts and of all consents permissions
and conditions (if any) granted or imposed or having effect thereunder so far as
the same respectively relate to or affect the Demised Premises or any part
thereof or any operations works acts or things already or hereafter to be
carried out executed done or omitted thereon or the use thereof for any purpose
and

5.7.2  During the Term so often as occasion shall require at the expense in all
respects of the Tenant to obtain from (as the case may be) the Local Planning
Authority or the Secretary of State for the Environment all such consents and
permissions (if any) as may be required for the carrying out of any operations
on the Demised Premises or the institution or continuance thereon of any use
thereof which may constitute development within the meaning of the Planning Acts
but so that no application for planning permission shall be made without the
previous written consent of the Landlord which consent shall not be unreasonably
withheld and

5.7.3  To pay and satisfy any charge that may hereafter be imposed in respect of
the Demised Premises under the Planning Acts in respect of the carrying out or
maintenance of any such operations or the institution or continuance of any such
use as aforesaid and

5.7.4  Notwithstanding any consent which may be granted by the Landlord under
this deed not to carry out or make any alteration or addition to the Demised
Premises or any change of use thereof (being an alteration or addition or change
of use which is prohibited by or for which the Landlord's consent is required to
be obtained under this deed and for which a planning permission needs to be
obtained) before a planning permission therefor has been produced to the
Landlord and acknowledged by it in writing as satisfactory to it But so that the
Landlord may refuse so to express its satisfaction with any such planning
permission on the ground that the period thereof or any condition contained
therein or anything omitted therefrom in the reasonable opinion of the Surveyor
would be or be likely to be prejudicial to the Landlord's interest in the
Demised Premises or the Estate whether during the Term or following the
determination or expiration thereof and

5.7.5  Unless the Landlord shall otherwise direct to carry out and complete
before the expiration or sooner determination of the Term any works stipulated
to be carried out to the Demised Premises by a date subsequent to such
expiration or sooner determination as a condition of any planning permission
granted for any development begun before such expiration or sooner determination
and

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5.7.6  If and when called upon so to do to produce to the Landlord or the
Surveyor all such plans documents and other evidence as the Landlord may
reasonably require in order to satisfy it that the provisions of this covenant
have been complied with in all respects

To Provide details of notices etc.

5.8    Within fourteen days of becoming aware of the receipt of notice of the
same (whether by advertisement or not) to give full particulars to the Landlord
of any permission notice order or proposal for a notice or order made giver: or
issued to the Tenant its underlessees or the owner or occupier of the Demised
Premises by any Government Department Local or Public Authority or by any
competent authority under or by virtue of any statutory powers whether the same
shall be served directly on the Tenant or the original or a copy thereof be
received from any underlessee or other person and if so required by the Landlord
to produce such permission notice order or proposal for a notice or order to the
Landlord AND ALSO without delay to take-all reasonable or necessary steps to
comply with any such notice or order AND ALSO at the request of the Landlord to-
make or join with the Landlord in making such objections or representations
against or in respect of any such notice order or proposal as aforesaid as the
Landlord shall deem expedient (save where such objections or representations
shall not be in the Tenant's interests) but without cost to the Tenant

Powers of Entry

5.9    To permit the Landlord the Surveyor the licensees or tenants or occupiers
of adjoining property belonging to the Landlord if previously authorised in
writing by the Landlord with or without servants agents contractors licensees
and workmen at all reasonable times upon reasonable prior notice being given
(except in case of emergency) to enter upon the Demised Premises with all
necessary appliances:

5.9.1  To execute repairs alterations painting redecoration or other work to the
Property or any adjoining property which cannot otherwise be conveniently
effected

5.9.2  For the purpose of repairing cleansing emptying or maintaining or laying
or installing any Conduits and any sprinkler system in or under the Demised
Premises in connection with or for the accommodation of the Estate the Property
or the adjoining property

5.9.3  For all reasonable purposes in connection with the development of
adjoining property which cannot otherwise conveniently be effected

5.9.4  For the purpose of viewing the same and examining the state and condition
thereof and for the purpose of making any inspection which may be required for
the purposes of the Landlord and Tenant Acts 1927 and 1954 or any other Act for
the time being affecting the Demised Premises and for the purpose of taking
Schedules or inventories of the fixtures and things to be yielded up at the
expiration of the Term

5.9.5  To give to the Tenant (or leave upon the Demised Premises) a notice
specifying any repairs cleaning maintenance or painting that the Tenant has
failed to execute in breach of the terms of this Lease and to request the Tenant
immediately to execute the same

5.9.6  And for all reasonable purposes in connection with the execution and
carrying out of the Landlord's obligations hereunder

5.9.7  The person or persons exercising such rights doing as little damage as
may be practical to the Demised Premises and causing as little inconvenience as
Practicable and making good any damage thereby occasioned without unreasonable
delay at the expense of the Landlord or such person or persons but without
payment of any compensation for any annoyance nuisance noise vibration or
inconvenience caused to the Tenant in connection with the carrying on of its
business in the Demised Premises

Section 146 and 147 L.P.A. 1925 and other costs

                                      11
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5.10    To pay to the Landlord all reasonable and proper costs charges and
expenses (including without prejudice to the generality of the foregoing legal
costs and fees payable to a surveyor or architect and other professional fees
and commissions payable to a bailiff) which may be properly incurred or properly
payable

5.10.1  by the Landlord in or in contemplation of any proceedings relating to
the Demised Premises under Sections 146 and 147 of the Law of Property Act 1925
(whether or not any right of re-entry or forfeiture has been waived by the
Landlord)

5.10.2  incidental to or in contemplation of the preparation and service of a
Schedule of Dilapidations at any time during or within six months after the
expiration of the Term but relating in all cases only to dilapidations which
accrued prior to the expiration or sooner determination of the Term howsoever
the same may be determined

5.10.3  in connection with or procuring the remedying of any breach of covenant
on the part of the Tenant contained in these presents

5.10.4  obtaining payment of any arrears of rent or the rectification of any
breach by the Tenant of any of the covenants on the part of the Tenant and the
conditions contained in this Lease whether proved by Court proceedings or not

5.10.5  Upon making an application for any consent or approval which is required
under these presents and to disclose to the Landlord such information as the
Landlord may reasonably require and in particular but without prejudice to the
generality of the foregoing the Superior Landlord's and the Landlord's legal
expenses and Surveyors fees (including disbursements and stamp duty) in respect
of all licences and the copies thereof resulting from all such applications by
the Tenant including charges fees and disbursements actually incurred in cases
where consent is refused or the application is withdrawn and in addition to pay
a reasonable management charge to the Landlord (being not less than (Pounds)500)
for or in connection with any such application Provided that the Landlord agrees
that where it employs a surveyor for non-technical advice or services in
connection with any of the said applications then where such surveyor's services
or advice is given in the provision of services capable of being carried out by
the Landlord itself then the Landlord will not make a charge for its own time in
connection with such application

Letting Boards etc

5.11    To permit the Landlord or its agents and all persons by order in writing
of the Landlord or its agents to view the Demised Premises at reasonable hours
in the daytime without interruption provided an appointment for the purpose is
first made with the Tenant who shall not unreasonably refuse such appointment

To Pay Increased Cost Of Insurance etc.

5.12    Not to bring or permit to be brought on the Demised Premises any article
or substance nor to do omit or suffer to be done or omitted any act matter or
thing whatsoever the bringing doing or omission of which would make void or
voidable any policy of insurance issued subject to usual conditions in respect
of the Demised Premises or in respect of the Landlord's fixtures and fittings
therein or of any other part of the Estate or any adjoining property or would
cause the premiums payable in respect of any insurance effected in relation to
the Demised Premises or the Estate or any adjoining property to be increased
beyond the normal rate

Tenants Insurances

5.13.1  To insure and at all times keep insured the Demised Premises against all
third party public and occupiers liability risks including liability under the
Defective Premises Act 1972 and any liability under the indemnity provisions
hereinafter contained such insurances in all cases to be on such terms and for
such sums as the Landlord and any Superior Landlord shall reasonably require

5.13.2  To effect all such insurances in some insurance office of repute in the
joint names (if possible) of the Landlord any Superior Landlord and the Tenant

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5.13.3  Upon request by the Landlord or its agents (made not more frequently
than annually) to produce to the Landlord the policy or policies of such
insurances and the receipt for or evidence of payment of every premium for the
then current year payable in respect of such policy or policies

5.13.4  PROVIDED ALWAYS that if and whenever default shall be made in making and
maintaining such insurances as aforesaid Landlord may effect and maintain such
insurances and the Tenant shall pay all moneys paid by the Landlord for that
purpose to the Landlord upon demand and such moneys if not so paid shall be
recoverable as rent in arrear

Give notice of damage

5.14.1  In the event of the Demised Premises or any part thereof being destroyed
or damaged by any of the Insured Risks to give notice thereof to the Landlord as
soon as such destruction or damage shall come to the notice of the Tenant

Damage by Tenant rendering insurance irrecoverable

5.14.2  That in the event of the Demised Premises or any part of the Building or
any adjoining property being destroyed or damaged by any Insured Risks or other
risks insured against by the Landlord and the insurance money under any
insurance against the same effected herein by the Landlord being wholly or
partly irrecoverable by reasons solely or in part of any act or default of the
Tenant then in every such case the Tenant will forthwith (in addition to the
said rent) pay to- the Landlord the whole or (as the case may require) a fair
proportion of the cost (including professional or other fees) of completely
rebuilding and reinstating the same

Alterations Structural

5.15.1  Not to cut maim injure or make any attachment or addition to any of the
Structure or make any structural alterations to the Demised Premises

Alterations Non-Structural

5.15.2  Not to make any further or other alteration or addition whatsoever in or
to the Demised Premises without the consent in writing of the Landlord such
consent not to be unreasonably withheld and to remove any such alteration or
addition(including any partitions) at the end or sooner determination of the
Term if so required by and to the extent required by the Landlord and to make
good the Demised Premises to the satisfaction of the Landlord

Alterations Unapproved

5.15.3  In the event of any breach of such covenants as aforesaid the Tenant
shall immediately upon notice in writing from the Landlord requiring it so to do
remedy the same and on its failure so to do for the space of two months after
such notice then it shall be lawful for the Landlord and others authorised by
the Landlord to enter upon the Demised Premises and to remove such alterations
or additions and to execute such other requisite works and all expenses of so
doing shall on demand be paid to the Landlord by the Tenant and if not so paid
shall be recoverable as rent in arrear

User

5.16.1  Not to use or permit to be used the Demised Premises or any part thereof
for residential occupation or for carrying on any noisy noxious offensive or
dangerous trade or business or as a betting shop public house hotel or inn or
for any retail purpose direct to the public nor to use or permit or suffer the
Unit Car Park Spaces to be used otherwise than for the parking of motor cars and
light vans nor to do or suffer to be done thereon any act or thing which may be
become or cause a nuisance injury damage annoyance disturbance or inconvenience
to the Landlord or any Superior Landlord or other lessees of the Estate or
owners lessees. or occupiers of any adjoining or neighbouring premises or for
illegal or immoral purposes

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<PAGE>

5.16.2    Subject to the foregoing not to use or permit to be used the Demised
Premises or any part thereof other than as offices

Easements etc.

5.17.1    Not to stop up darken or obstruct any windows or lights belonging to
the Demised Premises or the adjoining property or permit any new window light
opening doorway path passage drain or other encroachment or easement to be made
or acquired in against out of or upon the Demised Premises which may be or grow
to the damage annoyance or inconvenience of the Landlord or any of its tenants
And that in case any such window light opening doorway path passage drain or
other encroachment or easement shall be made or acquired or attempted to be made
or acquired the Tenant will upon the same coming to its notice give immediate
notice thereof to the Landlord and will at the request and cost of the Landlord
adopt such means as may be reasonably required or deemed proper for preventing
any such encroachment or the acquisition of any such easement

Underletting and Assignment

5.18.1    Not to assign charge or underlet or part with or share the possession
or occupation of any part (as distinct from the whole) of the Demised Premises
other than a sub-letting of a Permitted Part

5.18.2    Not to assign charge underlet or part with or share the possession or
occupation of the whole of the Demised Premises or underlet a Permitted Part or
stand possessed thereof as trustee or agent for any other person PROVIDED ALWAYS
that if the Tenant shall at any time during the Term desire to assign or
underlet the Demised Premises as a whole or underlet a Permitted Part and shall
on each occasion procure

5.18.2.1  that the proposed assignee is a Qualifying Assignee

5.18.2.2  that the proposed assignee enter into a direct covenant with the
Landlord to pay the rent reserved by and to perform and observe the covenants
and conditions of this present lease during the residue then unexpired of the
Term or until this Underlease shall be assigned by such assignee with the
approval of the Landlord in accordance with this clause whichever is the shorter
period

5.18.2.3  that the Tenant and any guarantor under this Lease of the Tenant
(other than a guarantor who has become a guarantor under the provisions of this
clause 5.18.2.3) shall enter into the Authorised Guarantee

5.18.2.4  If the Landlord so reasonably requires such persons or company as the
Landlord may reasonably require shall act as a guarantor for an intended
assignee and shall enter into a direct covenant to guarantee the payment of the
rent reserved and the performance and observance of the covenants and conditions
of this present Underlease during the residue then unexpired of the Term or
until this Underlease shall he assigned by such assignee with the approval of
the Landlord in accordance with this clause whichever is the shorter period and
such guarantee shall mutatis mutandis be in accordance with the Surety Covenant

5.18.2.5  any intended underlessee shall covenant with the Landlord as from the
date of the Underlease to observe and perform the covenants and conditions
contained in the Underlease

5.18.2.6  any underlease granted by the Tenant shall be at the market rent then
obtainable on a letting with vacant possession and without a premium and shall
be granted with reviews of rent to coincide with the reviews of rent as are
provided for herein

5.18.2.7  any underlease granted by the Tenant shall contain covenants on the
part of the underlessee with the Tenant in terms corresponding with sub-clauses
5.18.1 and 5.18.2. hereof

5.18.2.8  any underlease of a Permitted Part shall:

5.18.2.8.1  not be for a term which would expire after the contractual term
hereby granted has expired

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<PAGE>

5.18.2.8.2  contain a covenant against any further underletting

5.18.2.8.3  exclude the provisions of Section 24-28 of the Landlord and Tenant
Act 1954 and such exclusion shall be approved by the appropriate Court

5.18.3   then but in such case only the Tenant shall subject to the prior
written consent of the Landlord which shall not be unreasonably withheld be
permitted to assign charge or underlet the Demised Premises as a whole or
underlet a Permitted Part

5.18.4   provided that the Tenant being a Limited Company may share occupation
of the Demised Premises with a Company which is either the Holding Company of
the Tenant or a Subsidiary Company of the Tenant or the Tenant's Holding Company
as those terms are defined by Section 736 of the Companies Act 1985 provided
that no such sharing of occupation shall be effected so as to afford the
relevant company security of tenure in the Premises

Enforcement of underleases

5.18.5.1 Not without the consent of the Landlord to vary the terms or waive the
benefit of any covenant of the underlessee or condition in an underlease of the
Premises

5.18.5.2 not without the consent of the Landlord (such consent not to be
unreasonably withheld) to accept a surrender of any underlease of the Premises

5.18.5.3 Diligently to enforce the covenants of the underlessee and the
conditions in an underlease of the Premises

5.18.5.4 Not without the consent of the Landlord to accept any sum or payment
in kind by way of commutation of the rent payable by an underlessee of the
Premises

5.18.5.5 Not to accept the payment of rent from an underlessee of the Premises
otherwise than by regular quarterly (or more frequent) payments in advance

5.18.5.6 Duly and punctually to exercise all rights to revise the rent reserved
by an underlease of the Premises and not to agree with an underlessee a revised
rent without the approval of the Landlord (such approval not to be unreasonably
withheld)

Registration

5.19     Within twenty eight days next after any assignment charge devolution or
underletting of the Demised Premises to give formal notice in writing to the
Landlord's Solicitors of such assignment devolution or underletting and of the
name and registered office or address of the assignee or underlessee (as the
case may be)   and to produce to the Landlord's Solicitors a certified copy of
the instrument effecting such assignment or devolution or underlease as the case
may be) and to pay a reasonable fee (not to be less than (Pounds)30.00) plus
Value Added Tax thereon for registration of every such notice together with any
registration fee payable to the Superior Landlord

Notice Boards and Signs

5.20     Not to place or affix any aerial sign signboard advertisement hoarding
fascia placard bill notice or other notification whatsoever to or upon the
outside of the Demised Premises or in or upon the windows thereof Provided that
the Tenant may within three months of the date hereof erect and thereafter
maintain a sign or signs indicating the name of the Tenant and the trade or
business carried on from the Demised Premises such sign to be of a design and in
a position first approved by the Landlord and on the expiration or sooner
determination of the Term to remove or efface any aerial sign signboard
advertisement hoarding fascia placard bill notice or other notification as
aforesaid and to make good any damage caused thereby to the reasonable
satisfaction of the Surveyor

Indemnity

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<PAGE>

5.21    To indemnify and keep indemnified the Landlord from all liability in
respect of any injury or the death of any person damage to any property movable
or immovable the infringement disturbance or destruction of any right easement
or privilege or otherwise by reason of or arising directly or indirectly out of

5.21.1  the repair state of repair condition or any alteration or attachment to
or to the user hereinbefore permitted of the Demised Premises

5.21.2  the act omission or default of the Tenant its underlessees or their
respective agents servants invitees or licensees

5.21.3  the use of cars or any other vehicles belonging to or under the control
of the Tenant on the Service Area and any other part of the Estate

5.21.4  any breach by the Tenant or any underlessee of the Tenant of any
covenant on the part of the Tenant or any condition herein contained and from
all proceedings costs claims and demands of whatsoever nature in respect of any
such liability or alleged liability

To park/load in allocated areas only

5.22    Not to cause congestion or obstruction on any access roadways or on any
part of the Forecourt or the Service Area and subject as aforesaid not to park
or to load or unload nor to permit persons doing business with the Tenant or the
occupier or occupiers of the Demised Premises to park or to load or unload any
goods or materials on to or from lorries or other vehicles save in those parts
of the Forecourt which shall have been designed for such purposes respectively
and to procure that each part of the Forecourt or the Service Area shall be so
used only by the type of vehicle intended to be used thereon and in any event
without causing damage thereto or to any neighbouring premises and without
annoyance or inconvenience to any Superior Landlord the Landlord or to its
lessees or other the occupiers of the Estate or any part thereof or the
occupiers of any adjoining or neighbouring property

Refuse and Storage of Materials

5.23    Not to bring onto the Demised Premises any dangerous inflammable
explosive noxious or offensive substance other than the Tenants usual stock in
trade of which prior written details have been provided to the Landlord's
insurers

To comply with Regulations

5.24    To comply with such lawful and reasonable regulations and directions
(including regulations or directions as to the means of bringing conduits into
the Demised Premises) as the Landlord may from time to time make or give for the
orderly convenient and proper management of the Estate or for the regulation of
vehicular traffic into from and within the Estate and the Service Area

Nuisance

5.25    To pay to the Landlord all costs charges and expenses which may be
incurred by the Landlord in abating a nuisance on or from the Demised Premises
whether or not caused by the Tenant and in executing all such works as may be
necessary for abating a nuisance in obedience to a notice served by a Local or
Public Authority

Noxious effluent

5.26    Not to allow to pass into the Conduits serving the Demised Premises any
oil grease or other noxious or deleterious effluent or other substance which may
become a source of danger or cause an obstruction in or injure the said Conduits
and in the event of any such obstruction or injury forthwith to make good such
damage to the satisfaction of the Surveyor

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<PAGE>

Excess weight etc.

5.27.1  Not to do or permit or suffer or bring in or upon the Demised Premises
anything which may throw on the Demised Premises or the Building any weight or
strain in excess of that which such premises are calculated to bear with due
margin for safety and not to permit or suffer to be installed any machinery on
the Demised Premises which shall be unduly noisy or cause dangerous vibrations

5.27.2  Not to attach or affix any item whatsoever to any structural part or
cladding of the Demised Premises without the prior consent in writing of the
Landlord

LANDLORDS COVENANTS

6.      THE LANDLORD HEREBY COVENANTS with the Tenant as follows:

Quiet Enjoyment

6.1     That the Tenant paying the respective rents hereby reserved and
observing and performing the several covenants and stipulations on the part of
the Tenant herein contained shall and may peaceably and quietly hold and enjoy
the Demised Premises during the Term without any lawful interruption or
disturbance from or by the Landlord or any person or persons lawfully or
equitably claiming under or in trust for it

To insure

6.2     That the Landlord will at all times during the Term (unless such
insurance shall be vitiated by any act or omission of the Tenant or their
respective agents or servants or save in respect of any one or more of the
Insured Risks as are not available) insure and keep insured the Property against
loss or damage by the Insured Risks or such other risks as the Landlord may
reasonably consider necessary or desirable in the Landlord from time to time
considers to be the full rebuilding or reinstatement value of the Property (but
subject to allowing for a reasonable excess) with provision for inflation to
cover the period of rebuilding or reinstatement (or such higher amount as the
Tenant shall require by notice in writing to the Landlord) including the cost of
demolition site clearance and shoring up any land or buildings and related costs
and architect's surveyors' and other professional fees and incidental expenses
consequent upon rebuilding or reinstatement together with three years' rack-rent
of the Demised Premises and three years estimated Service Charge applicable to
the Demised Premises (including an estimate for increased rent prior to a rent
review) and will whenever required (but not more frequently than once in every
calendar year) produce to the Tenant the policy or policies of such insurance or
other sufficient evidence of the nature extent and terms thereof and the receipt
for or other evidence of the payment of the last premium for the same and to
procure that the insurers waive any subrogation rights against the Tenant and in
case of destruction or damage by any of the risks aforesaid as soon as
practicable after the necessary labour and materials permits planning bye-laws
and any other necessary permission shall have been obtained will cause all
moneys received in respect of such insurance (other than for loss of rent) to be
forthwith laid out in reinstating the Demised Premises provided that the
Landlord shall be entitled to provide a different building on the site of the
Building from that presently thereon provided the same provides to the Tenant a
reasonably suitable and comparable alternative premises to that previously
constructed and making up any shortfall out of its own monies

Insurance or Tenants Improvements

6.2.2   Notwithstanding the provisions of Clause 6.2.1 hereof the Landlord shall
not be required to insure or to reinstate any items of fixtures fittings plant
or equipment installed by the Tenant during the Term notwithstanding that they
may have become Landlord's fixtures unless the Tenant shall have notified the
Landlord in writing of the said installation have advised the Landlord of the
cost thereof

To Manage and Provide Services

                                       17
<PAGE>

6.3     At all times throughout the Term in accordance with the principles of
good estate management to carry out provide manage and operate the Services or
to procure that the same are provided managed and operated by the Service
Operator in the case of the Part I Services PROVIDED nevertheless that:

6.3.1   in performing its obligations hereunder the Landlord shall be entitled
in its absolute discretion to employ agents managers and contractors as is
hereinafter provided and

6.3.2   neither the Landlord nor the Service Operator shall be responsible for
any temporary delay or stoppage in the performance or observance of such
obligations or for any temporary omission to perform the same due to any cause
or circumstances not within their respective control but they shall take all
adequate steps to remedy or make good the same as soon as practicable

6.3.3   the Landlord and the Service Operator may at their absolute discretion
but in the interests of good estate management as aforesaid withhold add to or
extend vary or make alterations to the Services from time to time

6.3.4   the references to the maintaining of specified equipment plant or
machinery herein shall apply only if and when such equipment plant or machinery
is in fact installed

6.3.5   where the Estate shares or has common services with any adjoining
building or estate then there shall be attributed to the Estate a fair
proportion to be determined by the Service Operator of the cost of such shared
facilities and the references to the Services or the cost of any such service
shall take into account the fact that some facilities or services are shared
facilities or services and where Services include the cost of services supplied
to or in connection with the Atrium then the cost of any such service shall take
into account the fact that such services are shared with the building or
property with which the use of the Atrium is shared

To observe the Head Lease

6.4     During the Term to pay the rent reserved by the Head Lease and to
observe and perform (so far as the Tenant is not liable for such performance on
its part herein contained) all the lessees covenants contained therein

7.      PROVIDED always and it is hereby expressly agreed as follows:

Proviso for Reentry

7.1     If:

7.1.2   the rents hereby reserved or any part thereof shall at any time be
unpaid for fourteen days after becoming payable (whether formally demanded or
not) or if any covenant on the Tenants part herein contained or any document
expressed to be supplemental to this Lease shall not be performed or observed

7.1.3   the Tenant shall:

7.1.3.1 enter into any arrangement or composition or scheme for the benefit of
its creditors or apply to the Court for an Interim Order under Part VIII of the
Insolvency Act 1986 or

7.1.3.2 permit any execution to be levied on the Demised Premises or

7.1.3.3 be unable (or has no reasonable prospect of being able) to pay a debt
within the meaning of Section 267 and/or 268 and/or 269 of the said Act or (not
being a company) shall become insolvent or bankrupt or have a Receiving Order
under Part VIII of the said Act made against him or if the Tenant is more than
one person all or any of such persons or

7.1.3.4 (being a company) have a Receiver appointed for it or Then (even if any
previous right of re-entry has been waived) and in any of the said cases it
shall be lawful for the Landlord at any time thereafter to re-enter upon the
Demised Premises or any part thereof in the name of the whole and thereupon this
demise shall absolutely determine

                                       18
<PAGE>

but without prejudice to the right of action of the Landlord against the Tenant
or the Surety in respect of any antecedent breach of the Tenant's covenants
herein contained

Cesser of Rent in Case of Fire etc

7.2     In case the Building or any part thereof shall at any time during the
Term be so destroyed or damaged by any of the Insured Risks as to render the
Demised Premises unfit for occupation or use and the policy or policies effected
by the Landlord shall not have been vitiated or payment of the policy monies
refused in whole or in part in consequence of some act or default of the Tenant
the rent hereby reserved or a fair proportion thereof according to the nature
and extent of the damage sustained and in the event of any dispute the matter
shall be resolved as provided in the Disputes Procedure shall be forthwith
suspended until the Demised Premises shall be again rendered fit for occupation
or use

Power To Deal With Adjoining Land

7.3     The Landlord shall have power at all times without obtaining any consent
from or making compensation to the Tenant to deal with any property for the time
being belonging to the Landlord which adjoins or is opposite or near to the
Demised Premises as it may think fit to erect or suffer to be erected on such
adjoining neighbouring property any building whatsoever whether such building
shall or shall not affect or diminish the light or air which may now or at any
time or times during the Term be enjoyed by the Tenant or any tenants or
occupiers of the Demised Premises or any part thereof

Nothing Shall Limit The Landlords Right To Redevelop Adjoining Property

7.4     Nothing herein contained or implied shall impose or be deemed to impose
any restriction on the use of any land or buildings not comprised in this
Underlease and in particular nothing herein contained nor any of the rights
herein granted shall prevent or prohibit any part of the Estate or the Forecourt
from being built upon or rights thereover granted to third parties to the
exclusion of the Tenant save that in such circumstances where such might hinder
or limit any rights or amenities hereby granted to the Tenant the Tenant shall
be granted suitable alternative rights or amenities nor shall anything herein
contained give to the Tenant the benefit of or the right to enforce or to have
enforced or to prevent the release or modification of any covenant agreement or
condition entered into by any purchaser from or any lessee tenant or occupier of
the Landlord in respect of property not comprised in this Underlease or prevent
or restrict in any way the development of any land not comprised in this
Underlease

Landlord Not Liable For Acts Of Other Tenants etc

7.5     Subject to the Landlord taking all reasonable steps to prevent the same
the Landlord shall not be liable to the Tenant the Tenant's servants visitors
customers or others for any damage inconvenience loss or injury whatsoever
whether to the Demised Premises the furniture fittings stock or contents thereof
or any car or vehicles arising from:

7.5.1   any blocking or obstruction of the Service Area or the Forecourt

7.5.2   any negligence or act of the occupier (not being the Landlord personally
or any of its servants or employees) of any adjoining property

7.5.3   any interruption of any right of way or from any act neglect or default
of any other tenant of the Property or the Estate or any other persons

7.5.4   any defective workings failure stoppage or breakage of any water storage
tank pipe wires drain or other apparatus plant or machinery on the Property or
Estate or in any part thereof

No Warranty As To Use Planning Acts

                                       19
<PAGE>

7.6     Nothing herein contained shall be deemed to constitute any warranty by
the Landlord that the Demised Premises or any parts thereof are authorised under
the Planning Acts or otherwise for any use or for any specific purpose

Service of Notices

7.7     Any notice under this Underlease shall be in writing and any notice to
the Tenant shall without prejudice to the efficacy of any other mode of service
be sufficiently served if left addressed to the Tenant on the Demised Premises
or sent to the Tenant by Recorded Delivery or left at the Tenants last known
address in Great Britain or where the Tenant is a Limited Company if addressed
to its Registered Office as shown at the Companies Registry and any notice to
the Landlord shall be sufficiently served if sent by Recorded Delivery or left
at the last known address in Great Britain of the Landlord or where the Landlord
is a Limited Company if addressed to the Landlord at its Registered Office

Acceptance

7.8     No acceptance of or demand or receipt for rent by the Landlord after
knowledge or notice received by the Landlord or its agents of any breach of any
of the Tenant's covenants herein contained or implied shall operate as a waiver
in whole or part of any such breach or of the Landlord's rights of forfeiture or
re-entry in respect thereof but that any such breach shall for all the purposes.
of these presents be a continuing breach of covenant so long as such breach
shall be subsisting and no person taking any estate or interest under the Tenant
shall be entitled to set up any such acceptance of or demand or receipt for rent
as a defence in any action or proceeding by the Landlord

Action By Distress

7.9     If the Tenant shall make default in making payment to the Landlord of
any moneys becoming payable by the Tenant to the Landlord pursuant to any of the
Tenants covenants hereinbefore contained the amount owing may be recovered by
the Landlord by action or distress as if the same formed part of the rent
payable hereunder or as liquidated damages

Disputes Between Lessees

7.10    In case any dispute shall arise between the Tenant and/or other tenants
or occupiers of the remainder of the Property or the Estate or any other
neighbouring premises in connection with any easement right or privilege the
Landlord may (if it shall think fit) determine every such dispute in such manner
as the Landlord shall think reasonable (acting fairly and properly) and the
Tenant will submit to and abide by every such determination

Representations

7.11    The Tenant acknowledges that this Lease has not been entered into in
reliance wholly or partly on any statement or representation made by or on
behalf of the Landlord except any such statement or representation that is
expressly set out in this Lease or its solicitors replies to pre-contract
enquiries or correspondence

Tenant's Property

7.12    If after the Tenant has vacated the Demised Premises on the expiry of
the Term any property of the Tenant remains in or on the Demised Premises and
the Tenant fails to remove it within fourteen days after being requested in
writing by the Landlord to do so or if after using its best endeavours the
Landlord is unable to make such a request to the Tenant within a further
fourteen days from the first attempt so made by the Landlord:

7.12.1  the Landlord may as the agent of the Tenant sell such property and the
Tenant will indemnify the Landlord against any liability incurred by it to any
third party whose property shall have been sold by the Landlord in the mistaken
belief held in good faith (which shall be presumed unless the contrary be
proved) that such property belonged to the Tenant

                                       20
<PAGE>

7.12.2  if the Landlord having made reasonable efforts is unable to locate the
Tenant the Landlord shall be entitled to retain such proceeds of sale absolutely
unless the Tenant shall claim them within one year of the date upon which the
Tenant has vacated the Demised Premises

7.12.3  the Tenant shall indemnify the Landlord against any damage occasioned to
the Demised Premises and any actions claims proceedings costs expenses and
demands made against the Landlord caused by or related to the presence of the
property in or on the Demised Premises

Jurisdiction

7.13    For so long as the Lease is vested in Digital Island Inc

7.13.1  the rights and obligations of the parties under the Lease and all
documents supplemental thereto shall be governed by the laws of England

7.13.2  any legal action or proceedings against the Tenant with respect to any
matter arising under this Lease and any document supplemental thereto may be
brought in the English Courts

7.13.3  The Tenant irrevocably and unconditionally accepts the non-exclusive
jurisdiction of the English Courts in relation to anything arising under this
Lease or any document supplemental thereto

7.13.4  The Tenant Digital Island Inc irrevocably appoints Radcliffes of 5 Great
College Street London SW1P 3SJ as authorised to accept service on the Tenant in
England or Wales any notice under this Lease or any document supplemental there
to or under any statute and or process in the jurisdiction in the English Courts
in any legal action or proceeding arising under this Lease or any document
supplemental thereto

7.13.5  Should the Landlord bring any judicial proceedings in relation to any
matter arising under this Lease or any document supplemental thereto no immunity
from such judicial proceedings from attachment of its property or from execution
of judgement shall be claimed by the Tenant on the Tenant's behalf with respect
to the property of the Tenant any such immunity shall be waived by the Tenant

7.13.6  Nothing in the foregoing provisions should affect the right of the
Landlord to service process in any other manner permitted by law or to commence
any legal action or proceedings in any other jurisdiction

7.13.7  Any order declaration or other decision of the English Courts may be
enforced in the duly constituted Court of the country in which the Tenant (being
a company) is incorporated or (being an individual) is resident or in the Courts
of any other country in which the Tenant has assets and the Tenant undertakes to
submit to the jurisdiction of such Courts

RENTS REVIEW

Calculation or the Market Rent

8.1.1   The Market Rent may the any Review Period be agreed at any time between
the Landlord and the Tenant or (in the absence of agreement) shall be determined
not earlier than the Review Day by a person nominated in accordance with the
Disputes Procedure on the application of the Landlord or the Tenant made not
earlier than six months before the Review Day and so that in the case of such
determination in accordance with the Disputes Procedure the Market Rent shall be
such as shall be decided by such person nominated as aforesaid in accordance
with the following assumptions:

                                       21
<PAGE>

8.1.1.1 that the Demised Premises are fit for immediate occupation and use for
the purposes hereinafter referred to and all normal means of access thereto are
in existence and capable of normal use notwithstanding any disruption thereof
and that no work has been carried out thereon by the Tenant or its sub-tenants
or their predecessors in title during the Term which has diminished the rental
value of the Demised Premises and that in case the Demised Premises have been
destroyed or damaged they have been fully restored

8.1.1.2 that the Demised Premises are available to let by a willing Landlord to
a willing Tenant as a whole without a premium but with vacant possession and
subject to the provisions of this Lease (other than the amount of the rent
hereby reserved but including the provisions for rent review) for a term equal
to the unexpired residue of the term of this Lease

8.1.1.3 that the covenants herein contained on the part of the Landlord and the
Tenant have been fully performed and observed

8.1.1.4 that the Demised Premises may be used for any use within Classes B1 or
A2 of the Town & Country Planning (Use Classes) Order 1987 or for any other use
permitted hereunder

8.1.1.5 that the said willing tenant or tenants do not seek a rent free period
nor any reduction in rent or other inducement or incentive to allow them the
equivalent of a rent free period and in considering any comparable rents the
existence of any rent free period or any reduction in rent calculated to allow
for any rent free period or other inducement or incentive shall be ignored

AND having regard to open market rental values current at the Review Day but
disregarding:

8.1.1.6 any effect on rent of the fact that the Tenant its sub-tenants or their
respective predecessors in title have been in occupation of the Demised Premises

8.1.1.7 any goodwill attached to the Demised Premises since the commencement of
the Term from the carrying on thereat of the business of the Tenant thereon and

8.1.1.8 any increase in rental value of the Demised Premises attributable to
the existence at the relevant Review Day of any improvement thereto or any part
thereof carried out with consent when required during the Term and completed not
more than ten years before the relevant Review Day Provided that there shall not
be disregarded any increase in rental value attributable to improvements

8.1.1.8.1  carried out in pursuance of an obligation to the Landlord or its
predecessors in title by the Tenant its sub-tenants or their respective
predecessors in title

8.1.1.8.2  carried out at the expense of the Landlord or with contributions from
the Landlord either in whole or in part
Memorandum

8.1.2   As soon as the Market Rent shall be agreed or ascertained in accordance
with the terms. hereof (and if required by the Landlord so to do) the parties
hereto (including any Surety) will forthwith sign a Memorandum thereof on the
Lease and the Counterpart thereof specifying the yearly amount of the Market
Rent

Service Charge

8.2     The Tenant hereby further covenants to pay to the Landlord on demand

8.2.1   In respect of the Part I Services a Proportion of the amount incurred
from time to time by the Landlord in or towards the payment to the Service
Operator for the supplying of the Part I Services in accordance with the Head
Lease and any Deed of Covenant completed pursuant thereto

                                       22
<PAGE>

8.2.2   In respect of the Part II Services and the Atrium Services a Proportion
of the expenditure (which shall in addition to expenditure actually incurred be
deemed to include a reasonable provision for anticipated expenditure and an
amount equal to 15% of all such expenditure as aforesaid being a management fee
for the cost of managing all such services) incurred from time to time by the
Landlord or its Agent or Agents in or towards supplying the Part II Services and
the Atrium Services

8.2.3   Such payments together with Value Added Tax thereon shall be made in
accordance with the provisions hereinafter contained that is to say:

8.2.4   the Tenant will on each of the usual quarter days during the Term pay to
the Landlord on account of the Tenant's liability under this present covenant a
sum being one quarter of a Proportion of the estimated expenditure for the
Services year such estimate being based on the expenditure on the Services
during the immediately preceding period ending on the Account Day together with
an addition to take into account anticipated or increased expenditure PROVIDED
THAT during the period from the Service Charge Date to the next following
Account Day the Tenant shall pay quarterly to the Landlord on account of the
Tenant's liability under this present covenant the Advance Service Charge and so
in proportion for any period less than a quarter

8.2.5   if a Proportion of the expenditure incurred as aforesaid in any year
ending on the Account Day shall exceed the amount paid by the Tenant on account
during that year in accordance with the provisions hereinbefore contained the
Tenant shall within fourteen days after receiving notice in writing of the same
from the Landlord pay to the Landlord (in addition to any amount then due on
account under the provisions hereinbefore contained) a sum equal to such excess

8.2.6   if a Proportion of the expenditure incurred as aforesaid in any year
ending on the Account Day shall be less than the aggregate of the amounts paid
by the Tenant on account during that year under the provisions hereinbefore
contained the balance or difference shall be due to the Tenant and shall be
brought into account on the next quarter day

8.2.7   as soon as practicable after the Account Day in each year throughout the
Term the Landlord will furnish the Tenant with a statement containing a fair
summary of the heads of the expenditure on the Services during the relevant
period which statement shall be certified by an Accountant (who may be a person
employed by or otherwise connected with the Landlord)

Insurance Contribution

8.3     To pay on demand a Proportion of the premium for keeping the Property
insured against the Insured Risks and other insurable risks as the Landlord may
deem expedient or necessary in the full reinstatement value thereof including
architects' and surveyors' fees and three years loss of rent and insurance
against employers liability and third party risks together with the professional
fees incurred in ascertaining the full reinstatement value thereof as often as
may reasonably be deemed necessary

Disputes Procedure

9.1     Any difference or dispute between the Landlord and the Tenant arising
out of or in respect of the amount of any valuation required to be made under
this Underlease shall be referred to some independent and fit person to be
agreed upon by the Landlord and the Tenant or failing agreement to a person
nominated by the President for the time being of the Royal Institution of
Chartered Surveyors or if he shall not be available and able and willing to make
such appointment at the time of application therefor then by the next senior
officer of the said Institution who shall be so available and able and willing
or if no such officer of the said Institution shall be so available and able and
willing by such officer of such professional body of surveyors as the Landlord
shall designate and PROVIDED THAT if any such person nominated as aforesaid
shall relinquish his appointment or die or if it shall become apparent that for
any reason he will be unable to complete his duties hereunder the Landlord may
apply to the said President for a substitute to be appointed to his place which
procedure may be repeated as many times as necessary

9.2.1   Any person so nominated shall act as an expert and not as an arbitrator

                                       23
<PAGE>

9.2.2   such person shall afford the Landlord and the Tenant an opportunity to
make representations to him in writing whereupon his decision as an expert shall
be final and conclusive and binding upon the Landlord and the Tenant

9.3     All fees and expenses payable to any such person as aforesaid shall lie
in his award with which award the Landlord and the Tenant shall forthwith comply
Compensation

10.     ANY statutory right of the Tenant to claim compensation from the
Landlord on vacating the Demised Premises shall be excluded so far as the law
allows

Break Clause

11.     IF the Tenant shall desire to determine the Term at the expiration of
the fifth year of the Term and shall give to the Landlord not less than six
months previous notice in writing of such its desire then provided that

11.1    the Tenant shall deliver up the Demised Premises with vacant possession
at the expiration of the fifth year of the Term

11.2    the Tenant shall in addition to any rents paid or payable to the
Landlord pay to the Landlord on or before vacating the Demised Premises the sum
of forty seven thousand and seventy five pounds ((Pounds)47,075.00) together
with any value added tax properly payable thereon

then immediately on the expiration of such fifth year the Term shall thereupon
cease but without prejudice to the remedies of either party against the other in
respect of any antecedent claim or breach of covenant

Inherent Defects

12.     The Tenant shall have no liability under this Underlease whether
directly or indirectly by way of Service Charge for the remedying of or
consequences of any Initial Defect which the Landlord hereby covenants to make
good at no expense to the Tenant

Declaration as to Agreement for Lease

13      The Landlord and the Tenant hereby certify that there is no Agreement
for Lease (or Tack) to which this Lease (or Tack) gives effect

IN WITNESS whereof this Deed is executed in manner hereinafter appearing the day
and year first before written

THE FIRST SCHEDULE hereinbefore referred to:-

The Demise

ALL THOSE premises forming pall of the Building as shown for the purposes of
identification only edged with a red line on the Floor Plans TOGETHER WITH and
including:

1.      The paint and other finishes applied to the interior of the external
walls and internal load bearing columns but not any other part of the external
walls and internal load bearing columns

2.      The floor and the space below the same to and including the surface of
the sub-floor (if any)

3.      The ceiling finishes and the light fittings therein and the wiring above
the ceiling

                                       24
<PAGE>

4.      Any non-load-bearing internal walls wholly within the Demised Premises

5.      The inner half of the internal non-load-bearing walls dividing the
Demised Premises from other parts of the Building

6.      The doors and windows and the internal surfaces of the door and window
frames

7.      Conduits within and solely serving the Demised Premises

THE SECOND SCHEDULE hereinbefore referred to:-

Rights Granted to the Tenant

1.      Rights of free and uninterrupted passage and running of gas  electricity
water rainwater soil and sewerage to and from the Demised Premises into through
and along the Conduits which are now under upon or over the adjoining property

2.      Rights for the Tenant his servants and licensees (in common with the
Landlord and all persons having the like right) and subject to the right of the
Landlord to vary from time to time the route thereof and subject to such
reasonable security arrangements as may be made from time to time in relation to
the Atrium by the Lessee thereof to pass and repass over such part of the Atrium
the Service Area and the Forecourt and the Common Parts as is necessary to
obtain access to the Demised Premises subject however to compliance by the
Tenant with the following conditions:

2.1     the Tenant shall not use the Forecourt or the Service Area other than
the Unit Car Park spaces for the parking of vehicles

2.2     the Tenant shall comply with such directions as may from time to time be
given by the Landlord for the regulation and direction of traffic

2.3     any rights of way hereby granted over the Atrium shall be on foot only

3.      The right (in common as aforesaid) to use such address board frame (if
any) as may be displayed by the Landlord the amount of space of such address
board frame to be allotted to each tenant to be determined by the Surveyor whose
decision shall be final and binding upon the Tenant

4.      The exclusive right to use for the parking of light vans and cars only
the Unit Car Parking Spaces or such reasonably suitable alternative spaces as
may from time to time be designated by the Landlord in substitution therefor

5.      The non exclusive right to use such part of the Forecourt as is
necessary for the loading and unloading of vehicles provided that the same shall
not cause an obstruction to the turning and manoeuvring of other vehicles
loading and unloading from other premises on the Estate or the Property

6.      The right (in common with the Landlord and all persons having the like
right) to use the toilets forming part of the Common Parts

THE THIRD SCHEDULE hereinbefore referred to:-

Exceptions and Reservations

1.      The right to enter upon the Demised Premises after prior notice has been
given to the Tenant (except in case of emergency) for all or any of the purposes
for which the Tenant covenants to permit entry in this Underlease making good
forthwith all damage caused to the Demised Premises occasioned by the exercise
of such rights in accordance with the provisions in that regard hereinbefore
referred to

                                       25
<PAGE>

2.     The free and uninterrupted passage of water and soil through the pipes
drains and watercourses and of electricity and gas through the Conduits which
are now or may at any time during the Term be in on under or passing through or
over the Demised remises with the right

2.1     to construct and maintain new Conduits for the benefit of any adjoining
property and

2.2     the right to repair maintain and renew such existing and new Conduits

3.      The right to deal in any manner whatsoever with any of the land
belonging to the Landlord or any Superior Landlord adjoining opposite or near to
the Demised Premises or forming part of the Estate or the Property and to erect
maintain rebuild or alter or suffer to be erected maintained rebuilt or altered
on such adjoining opposite or neighbouring lands any buildings or structures
whatsoever whether such buildings shall or shall not affect or diminish the
light or air which may now or at any time hereafter be enjoyed for or in respect
of the Demised Premises or any building for the time being thereon and without
liability to pay compensation for any damage or loss caused by the affecting or
diminishing of such light or air

4.      The right to temporarily close as often as may be reasonably necessary
the Service Area or the Forecourt or the Common Parts or any part thereof for
the purposes of obtaining access to any Conduits and for maintaining repairing
or marking of the surface of the same and for any other reasonable purpose
Provided Always that the Landlord shall at all times maintain access to the
Demised Premises

THE FOURTH SCHEDULE hereinbefore referred to:-Part I

Services being the Services described in the Fourth Schedule to the Head Lease

1.      The maintaining renewing amending repairing cleansing draining and
lighting of the Service Area and all boundary walls fences features
identification notice boards display boards directional signs or nameplates
(including any notice boards display boards directional signs or other
nameplates whatsoever designed or provided for the benefit of or which relate to
the Estate whether or not contained within the Estate)

2.      The insuring of the Service Area other than such as are comprised within
the Building and all plant and equipment used in connection with the Part I
Services and all staff employed in connection with the Part I Services against
such risks as the Service Operator shall require and public or third party
liability risks and the payment of any valuation fee or for professional advice
in connection therewith

3.      The maintaining amending renewing repairing and keeping the Conduits
other than those which are both comprised within and used exclusively for the
benefit of the Building or any other building on the Estate which is let by the
Superior Landlord to any tenant

4.      The cultivating maintaining and renewing of all grass plants shrubs
trees hedges and garden and landscape areas of the Service Area and the keeping
of the same properly planted and free from weeds and any grass properly trimmed

5.      The providing for the security control and management of the Service
Area and traffic control within the Estate

6.      The periodic payments in respect of commission fees salaries or wages
National Health and Insurance Graduated Pensions Industrial Training levies
redundancy and similar or ancillary payments required by statute to be made by
the Service Operator (together with any value added tax thereon) in respect of
all persons (if any) from time to time employed or instructed by it for purposes
connected with the Estate to the extent that those persons are employed or
instructed for such purposes

7.      The payment of all rates taxes assessments and outgoings from time to
time payable in respect of the Service Area and vehicles equipment and plant
engaged or used in providing management and service facilities and amenities for
the Estate

                                       26
<PAGE>

8.      The payment of all charges assessments and outgoings to electricity gas
telephone and other public or statutory utilities in respect of the Estate to
the extent that such charges assessments and outgoings are not wholly reimbursed
to the Service Operator by the Tenant and/or any other tenant or third party and
in respect of the Service Area and for the accommodation of vehicles equipment
and plant engaged or used in providing management and service facilities and
amenities for the Estate

9.      The management of the Estate by the Landlord's agents or its own staff
including fees for the collection of rents and for computing the Insurance
Charge and the Service Charge

10.     The providing repairing maintaining amending and renewing and operating
of all electrical mechanical and other plant and equipment chattels fixtures and
fittings of ornament or utility which the Service Operator shall consider
appropriate or desirable

11.     The compliance with any Act of Parliament Statutory Instrument Order or
Regulation or Local Bye-Law relating to the whole or any part or parts of the
Service Area

THE FOURTH SCHEDULE hereinbefore referred to:-

Part II

The Part II Services.

1.      The maintaining renewing amending repairing painting treating and
cleansing draining and lighting of the Structure the Common Parts and the
exterior of the Building including the external cladding and glass therein

2.      The maintaining repairing renewing and general operating of all
electrical and mechanical or other equipment used in connection with the
Building including in particular (but without prejudice to the generality of the
foregoing) the lifts and the heating and ventilating and cooling system the fire
protection and security system and the computerised building management system
serving the Building

3.      The maintaining renewing amending repairing cleansing draining and
lighting (if any) of the Forecourt and all boundary walls fences or features
within the Property and identification notice boards display boards directional
signs or nameplates within the Property or the Atrium

4.      The insuring of the Common Parts and all the plant and equipment used in
connection with the Part II Services and all staff employed in connection with
the Part II Services against such risks as the Landlord shall require (including
without prejudice to the generality of the foregoing public or third party
liability)

5.      The maintaining amending renewing repairing and keeping the Conduits
within the Property other than those which are both comprised within and used
exclusively for the benefit of the Demised Premises

6       The cultivating maintaining and renewing of all grass plants shrubs
trees hedges and garden and landscape areas (if any) within the Property

7.      The paying of all rates taxes assessments and out goings from time to
time payable in respect of the Property but excluding such as relate to the
Demised Premises and any part of the Building let or to be let to an
occupational tenant

8.      The paying of independent professional valuations of the Property or the
Atrium or of any part thereof which shall be required by the Landlord for
determining to what amount the Property or the  Atrium or any part thereof
should be insured PROVIDED THAT there shall not be more than one such valuation
in any twelve month period

9.      The providing of security and control of the Common Parts and the
Forecourt

                                       27
<PAGE>

10.     The management of the Property and the Atrium by the Landlord's agents
or its own staff including fees for the collection of rents and for computing
the charge for Insurance and the Charge for the Services

11.     The repairing cleaning maintaining and renewing of all party walls
structures fences sewers drains pipes wires or other conveniences belonging or
which shall belong to or be used by the Property and adjoining or contiguous
premises

12.     The providing repairing maintaining amending and renewing of fire alarms
fire fighting and fire prevention equipment and fire hydrants Intruder alarm
equipment and internal communications system on the Property

13.     The complying with any Act of Parliament Statutory Instrument Order or
Regulation or Local Bye-Law relating to the whole or any part or parts of the
Property

14.     The collecting and compacting of refuse including the providing and the
repairing and the renewing of skips or other refuse containers and equipment for
the removal thereof and the removing and disposing thereof

15.     The paying of all charges assessments and outgoings for electricity gas
telephone and other public or statutory utilities in respect of the Property and
the Atrium to the extent that such charge assessments and outgoings are not
wholly reimbursed to the Landlord by the Tenant or any other tenant or third
party

16.     The employment (if so required by the Landlord) of such staff as may
reasonably be required or considered necessary or desirable to employ to
supervise and/or provide the Services including in this regard the provision and
maintenance of accommodation for such persons including managerial offices and
storage areas and the payment of all rates taxes outgoings and rent in respect
thereof (including a sum to cover a notional rent where such accommodation is
within the Building)

17.     The provision of such annual sums as the Landlord may deem reasonably
expedient in order to provide and maintain a reserve fund in respect of:

17.1    those items of expenditure (including the replacement and repair of the
Forecourt and the Common Parts and areas of the Property not comprised or
intended to be comprised in any lease of part thereof or of any part thereof or
any fixtures and fittings therein and thereon) which are not of an annual or
periodically recurring nature

17.2    such allowances in respect of depreciation as the Landlord may deem
expedient

18.     Any steps or proceedings taken by the Landlord in any attempt to prevent
any encroachment into against or upon the Property or any part thereof or any
acquisition of any new window light ventilator passage drainage or other
easement over or in respect of the Property or any part thereof by any person
whatsoever

19.      The payment of the share attributable to the Property of all costs
charges and expenses incurred in connection with or relating to the cleaning
repairing maintaining lighting renewing and rebuilding of all roads footpaths
landscape features walls (excluding dock walls) fences gutters drains pipes and
other facilities which shall at any time during the Term belong to or be capable
of being used or enjoyed by the Property or the lessees or occupiers thereof in
common or jointly with any other person or persons

20.     The provision of any other service which the Landlord in its sole
discretion acting in accordance under the principles of good estate management
may consider reasonably and properly necessary or desirable

THE FOURTH SCHEDULE hereinbefore referred to:-

Part III

The Atrium Services

                                       28
<PAGE>

1.      The repairing maintaining and renewing of the Atrium and the furniture
furnishings fixtures and fittings plant machinery flower and plant decorations
and other equipment therein the use of which is for the joint use of the
Building and the adjoining office building and any Conduits

2.      The cleaning decorating and painting of the Atrium and the fixtures and
fittings therein

3.      The lighting heating cooling and general operating of the Atrium and all
mechanical electrical or other equipment plant and machinery therein and the
payment of all charges and assessments and outgoings to the electricity gas
telephone and other public or statutory authorities for such services to the
Atrium

4.      The provision of staff for the maintenance of reception services
including the payment of their wages National Insurance contribution and similar
or ancillary payments

5.      The insurance of the Atrium in the full reinstatement value thereof
against loss or damage by the Insured Risks and such other risks as the Lessee
of the Atrium may reasonably require and the payment of the cost of an
independent professional valuation thereof from time to time for determining the
amount of any such insurance

6.      The insurance of the Superior Landlord of the Atrium against third party
risks and employers liability

7.      The payment of all rates taxes assessments and outgoings from time to
time payable in respect of the Atrium

8.      Complying with the other covenants and obligations on the part of the
Lessee contained in the Lease of the Atrium

THE FIFTH SCHEDULE hereinbefore referred to:-

The Surety Covenant

THE Surety HEREBY COVENANTS with the Landlord as follows:-

1.1     That the Tenant shall pay the rent hereby reserved and observe and
perform the covenants and conditions herein contained as well after as before
any disclaimer of this Underlease by any liquidator or trustee in bankruptcy and
that although as between the Tenant and the Surety the Surety may only be surety
for the Tenant as between the Surety and the Landlord the Surety shall be liable
as if the Surety were principal debtor or covenantor for all obligations herein
or in this Underlease contained and shall not be released or discharged by time
or indulgence being given to any arrangements or alteration of terms being made
with the Tenant or any other person or by any release or dealing by the Landlord
or by any act omission or thing whatsoever whether with or without the consent
of the Surety whereby the Surety as surety only might have been released or
discharged

1 2     That if the Tenant (not being a company) shall become bankrupt or (being
a company) shall enter into liquidation and the trustee in bankruptcy or the
liquidator shall disclaim this Underlease or if this Underlease shall be
forfeited and if the Landlord shall within three months after such disclaimer or
forfeiture by notice in writing require the Surety to accept an Underlease of
the Demised Premises for a term commensurate with the residue of the Term
remaining unexpired at the date of such disclaimer or forfeiture on the same
terms as this Underlease (such Underlease to take effect from the date of the
said disclaimer or forfeiture of rents corresponding with those payable under
this Underlease in respect of the period immediately before the said date but
subject to review at the same times as those at which reviews would have
occurred had this Underlease remained in existence) the Surety shall accept such
Underlease and execute and deliver to the Landlord a Counterpart thereof and pay
the Landlord's proper costs and expenses of and incidental to the grant thereof

THE SIXTH SCHEDULE hereinbefore referred to:-

Authorised Guarantee

                                       29
<PAGE>

PARTICULARS

Date

"The Landlord"

Registered Office

"The Tenant"

Registered Office

"The Assignee"

Registered Office

"The Premises"

"Lease"

                                       30
<PAGE>

THIS DEED is made between the Landlord and the Tenant on the date stated in the
Particulars

WHEREAS

The Tenant holds the Premises under the Lease and wishes to assign the Lease to
the Assignee and pursuant to the Lease the Landlord's consent is required to
such assignment ("the Assignment") and such consent is given subject to a
condition (inter alia) that the Tenant enters into a deed in the form of this
Deed

NOW THIS DEED WITNESSES as follows

I.      TENANTS OBLIGATIONS

The Tenant covenants with the Landlord as primary obligation

1.1     that the Assignee or the Tenant shall at all times during the period
("the Guarantee Period") from the completion of the Assignment until the
Assignee shall have ceased to be bound by the tenants covenants (which in this
Deed shall have the meaning attributed by Section 28(1) of the Landlord and
Tenant (Covenant) Act 1995 ("the 1995 Act")) contained in the Lease (including
the payment of the rents and all other sums payable under the Lease in the
manner and at the times specified in the Lease) duly perform and observe the
tenants covenants and shall indemnifying the Landlord in any way directly or
indirectly arising out of or arising out of or resulting from any default by the
Assignee in the performance and observance of the tenants covenants.

1.2     that if a liquidator trustee in bankruptcy or other competent personal
shall disclaim or surrender the Lease or the Lease shall be forfeited or the
Assignee shall die or cease to. exist (the date on which any such event occurs
being referred to in this Deed as ("the Relevant Date") then the Tenant shall
(if the Landlord so requires by notice in writing given to the Tenant within six
months after the Relevant Date) accept from and execute and deliver to the
Landlord a counterpart of a new Lease of the Premises for a term commencing on
the Relevant Date and continuing for the residue then remaining of the term of
the Lease such new Lease to be at the cost of the tenant and to be at the same
rents and subject to the same covenants conditions and provisions as are
contained in the Lease.

1.3     to pay any rent or other sums due from the Assignee and to observe and
perform all covenants and conditions on the Assignee's part contained in any
licence or other Deed entered into by agreement between the Landlord and the
Assignee pursuant to or by way of variation of the Lease and the Tenant shall
upon being requested to do so by the landlord join in any such licence or other
deed for the purposes of acknowledging that the covenants on the part of the
Tenant extend to the obligations under such Deed.

2.      WAIVER OF RIGHTS

The Tenant waives any right to require the Landlord to proceed against the
Assignee or to pursue any other remedy of any kind which may be available to the
Landlord before proceeding against the Tenant.

3.      MATTERS NOT AFFECTING LIABILITY

None of the following (or any combination of them) shall release determine
discharge or in any way lessen or affect the liability of the Tenant as
principal debtor under this Deed or otherwise prejudice or affect the liability
of the Tenant to accept a new lease in accordance with the provisions of this
Deed.

3.1     any neglect delay or indulgence or extension of time given by the
Landlord in enforcing payment of the rents or any other sums due under the Lease
or in enforcing the performance or observance of any of the tenant covenants

3.2     any refusal by the Landlord to accept rent tendered by or on behalf of
the Assignee if the Landlord believes there has been a breach of covenant by the
Assignee

3.3     the expiry or sooner determination of the term granted by the Lease

                                       31
<PAGE>

3.4     any variation of the terms of the Lease (including any reviews of the
rent payable thereunder) or the transfer of the Landlord's reversion in which
case the Tenant will be liable. under the terms of the Lease as so varied

3.5     any change in the constitution structure or powers of either the
Assignee the Tenant or the Landlord or the liquidation administration
receivership or bankruptcy (as the case may be) of either the Assignee or the
Tenant or the death or dissolution of the Assignee

3.6     any legal limitation or any immunity disability or incapacity of the
Assignee (whether or not known to the Landlord) or the fact that any dealings
with the Landlord by the Assignee may be outside or in excess of the powers of
the Assignee

3.7     the surrender of part of the Premises and where that happens the
liability of the Tenant under this Deed continues for the part of the Premises
not surrendered after making any necessary apportionments under the Law of the
Property Act 1925 section 140

3.8     an attempt to vary the Lease which takes effect as a matter of law as
the surrender of the Lease and the re-grant of a new lease of the Premises
(including but not limited to an attempt to vary the term of the Lease or the
extent of the Premises) and in such case the Tenant shall be liable as if the
Tenant had entered into covenants in the terms of this Deed in the new lease

3.9     any other act omission matter or thing of any kind by virtue of which
(but for this provision) the Tenant would be exonerated either wholly or in part
(other than a release executed and delivered as a deed by the Landlord or a
release effected by virtue of the 1995 Act)

4.      SUCCESSORS

This guarantee shall subsist for the benefit of the successors and assigns of
the Landlord under the Lease without the necessity for any assignment of it

IN WITNESS WHEREOF this Deed has been executed by the Tenant and is intended to
be and is hereby delivered on the date first above written

EXECUTED as a deed by   )

Limited by   )

Director

Secretary/Director

EXECUTED as a Deed (but not delivered   )

until the date hereof) by the said   )

Director

Secretary

EXECUTED as a Deed (but not delivered   )

until the date hereof) by the said DIGITAL   )

ISLAND INC in the presence of:-

Director

                                       32
<PAGE>

Director/Secretary

                                       33<PAGE>

                                                                   EXHIBIT 10.22

                                     LEASE

                                BY AND BETWEEN

                  CORPORATE TECHNOLOGY CENTRE ASSOCIATES LLC
                    a California limited liability company

                                  as Landlord

                                      and

                            DIGITAL ISLAND, INC-.,
                            a Delaware corporation

                                   as Tenant

                              September 10, 1999
<PAGE>

                                     LEASE

THIS LEASE, dated September 10, 1999 for reference purposes only, is made by and
between CORPORATE TECHNOLOGY CENTRE ASSOCIATES LLC, a California limited
liability company ("Landlord") and DIGITAL ISLAND, INC., a Delaware corporation
("Tenant"), to be effective and binding upon the parties as of the date the last
of the designated signatories to this Lease shall have executed this Lease (the
"Effective Date of this Lease").

ARTICLE 1
REFERENCE

1.1  References.  All references in this Lease (subject to any further
clarifications contained in this Lease) to the following terms shall have the
following meaning or refer to the respective address, person, date, time period,
amount, percentage, calendar year or fiscal year as below set forth:

Tenant's Address for Notice:                  45 Fremont Street, Suite 1200
                                              San Francisco, California 94105

Tenant's Representative:                      Director, Real Estate

Landlord's Address for Notices:               c/o Menlo Equities LLC
                                              525 University Avenue
                                              Suite 100
                                              Palo Alto, California 94301

Landlord's Representative:                    Henry Bullock/Richard Holmstrom

Phone Number:                                 (650) 326-9300

Lease Commencement Date:                      Six (6) Months after the Delivery
                                              of the Building Shell in
                                              accordance with Paragraph 2.4,
                                              estimated to be February 15, 2000.

Lease Term:                                   Eleven (11) years

Lease Expiration Date:                        Eleven (11) Years from the Actual
                                              Lease Commencement Date, unless
                                              earlier terminated by Landlord in
                                              accordance with the terms of this
                                              Lease, or extended by Tenant
                                              pursuant to Article 15.

Options to Renew:                             Three (3) option(s) to renew, each
                                              for a term of five (5) years each.

First Month's Prepaid Rent:                   $53,304.45

Tenant's Security Deposit:                    $1,300,000.00

Late Charge Amount:                           Five Percent (5%) of the
                                              Delinquent Amount

Tenant's Required Liability Coverage:         $5,000,000 Combined Single Limit

Tenant's Broker:                              Aaron Wangenheim, Staubach

Landlord's Broker:                            Steve Horton, CPS

Project:                                      That certain real property
                                              situated in the City of San Jose,
                                              County of Santa Clara, State of
                                              California, to be improved with a
                                              total of eight (8) building(s),
                                              and is commonly known as or
                                              otherwise described as follows:
                                              Corporate Technology Centre, San
                                              Jose,
<PAGE>

                                              California.

Property:                                     That certain real property
                                              situated in the City of San Jose,
                                              County of Santa Clara, State of
                                              California, as presently improved
                                              with one (1) building, which real
                                              property is shown on the Site Plan
                                              attached hereto as Exhibit "A."

Building:                                     That certain building on the
                                              Property in which the Leased
                                              Premises are located commonly
                                              known as 400 Holger Way, San Jose,
                                              California (the "Building")
                                              located on Parcel No. 5 of the
                                              Project, which Building is shown
                                              outlined on Exhibit "A" hereto.

Outside Areas:                                The "Outside Areas" shall mean all
                                              areas within Parcel No. 5 of the
                                              Project, which are located outside
                                              the Building, such as pedestrian
                                              walkways, parking areas,
                                              driveways, and drive aisles,
                                              landscaped areas, open areas and
                                              enclosed trash disposal areas.

Common Areas:                                 The "Common Areas" shall mean the
                                              lobby and restrooms on the first
                                              floor of the Building so long as
                                              there is more than one tenant of
                                              the Building. If Tenant is the
                                              only tenant of the Building, there
                                              shall be no Common Areas.

Leased Premises:                              Certain interior space within the
                                              Building consisting of
                                              approximately 56,410 square feet
                                              and, for purposes of this Lease,
                                              agreed to contain said number of
                                              square feet.

Tenant's Proportionate Share:                 The term "Tenant's Proportionate
                                              Share" shall mean the percentage
                                              obtained by dividing the rentable
                                              square footage of the Leased
                                              Premises at the time of
                                              calculation by the rentable square
                                              footage of the Building at the
                                              time of calculation. Such
                                              percentage is currently 73.83%. In
                                              the event that any portion of the
                                              Property is sold by Landlord, or
                                              the rentable square footage of the
                                              Leased Premises or the Property is
                                              otherwise changed, Tenant's
                                              Proportionate Share shall b%
                                              recalculated to equal the
                                              percentage described in the first
                                              sentence of this paragraph, so
                                              that the aggregate Tenant's
                                              Proportionate Share of all tenants
                                              of the Property shall equal 100%.
                                              In addition, Tenant's
                                              Proportionate Share is subject to
                                              adjustment in certain
                                              circumstances as described in
                                              Paragraphs 13.12 (b) and 13.12(c)
                                              below.

Base Monthly Rent:                            The term "Base Monthly Rent" shall
                                              mean the following:

                                              Period      Monthly Amount
                                              ------      --------------
                                              Months 1-6   $ 53,307.45

                                              Months 7-12  $106,614.90

                                              Commencing with Month 13 of the
                                              Lease Term and at the end of each
                                              12 month period thereafter, Base

                                       2
<PAGE>

                                              Monthly Rent shall be increased at
                                              a rate of 3.0% per annum
                                              compounded.

Use:                                          Installation, operation and
                                              maintenance of a data center or
                                              collocation facility, general
                                              office, other uses consistent with
                                              other uses at Corporate Technology
                                              Centre and any other uses as
                                              approved by Landlord in its sole
                                              and absolute discretion.

Exhibits:                                     The term "Exhibits" shall mean the
                                              Exhibits of this Lease which are
                                              described as follows:

                                              Exhibit "A" -Site Plan showing the
                                              Property and delineating the
                                              Building in which the Leased
                                              Premises are located.

                                              Exhibit "B" - Work Letter

                                              Exhibit "C" - Form of Tenant
                                              Estoppel Certificate

                                              Exhibit "D" - Form of Lease
                                              Commencement Date Certificate

                                              Exhibit "E"- Location of
                                              Equipment in Outside Areas

ARTICLE 2
LEASED PREMISES, TERM AND POSSESSION

                                       3
<PAGE>

2.1  Demise Of Leased Premises. Landlord hereby leases to Tenant and Tenant
hereby leases from Landlord for Tenant's own use in the conduct of Tenant's
business and not for purposes of speculating in real estate, for the Lease Term
and upon the terms and subject to the conditions of this Lease, that certain
interior space described in Article 1 as the Leased Premises, reserving and
excepting to Landlord the right to fifty percent (50%) of all assignment
consideration and excess rentals as provided in Article 7 below. Tenant's lease
of the Leased Premises, together with the appurtenant right to use the Outside
Areas as described in Paragraph 2.2 below, shall he conditioned upon and be
subject to the continuing compliance by Tenant with (i) all the terms and
conditions of this Lease, (ii) all Laws governing the use of the Leased Premises
and the Property, (iii) all Private Restrictions, easements and other matters
now of public record respecting the use of the Leased Premises and Property, and
(iv) all reasonable rules and regulations from time to time established by
Landlord.

2.2  Right To Use Outside Areas. As an appurtenant right to Tenant's right to
the use and occupancy of the Leased Premises, Tenant shall have the right to use
the Outside Areas in -conjunction with its use of the Leased Premises, subject
to the limitations Set forth in Paragraph 4.10. Tenant's right to so use the
Outside Areas shall be subject to the limitations on such use of the Leased
Premises as set forth in Article 1 and shall terminate concurrently with any
termination of this Lease.

2.3  Lease Commencement Date And Lease Term. The term of this Lease shall begin,
and the Lease Commencement Date shall be deemed to have occurred, on that date
which is six (6) months after Landlord's delivery to Tenant of the Building
Shell in accordance with Paragraph 2.4, which is anticipated to be that date set
forth in Article 1 (the "Lease Commencement Date"). The term of this Lease shall
in all events end on the Lease Expiration Date (as Set forth in Article 1). The
Lease Term shall be that period of time commencing on the Lease Commencement
Date and ending on the Lease Expiration Date (the "Lease Term"). In the event
that the Lease Commencement Date is on any date other than the date set forth in
Article 1 as the Lease Commencement Date, Landlord and Tenant agree to execute a
Lease Commencement Date Certificate in the form attached as Exhibit D, setting
forth the actual Lease Commencement Date as determined pursuant to this
Paragraph 2.3.

2.4  Delivery Of Possession. Landlord shall deliver the Leased Premises to
Tenant with the Building Shell (as defined below) substantially complete on the
Effective Date of this Lease. Landlord shall complete the electrical service
identified as Item 4 on Schedule I to the Work Letter (which shall not be deemed
part of the Building Shell) within ninety (90) days after the Effective Date of
this Lease. Tenant's obligation to pay Base Monthly Rent or Additional Rent
shall not commence until the such electrical service is provided. If Landlord is
unable to so deliver possession of the Building Shell to Tenant in the agreed
condition on the dates specified, Landlord shall not be in default under this
Lease, nor shall this Lease be void, voidable or cancelable by Tenant until the
lapse of sixty (60) days after the Effective Date of this Lease (the "delivery
grace period"). If Landlord is unable to deliver possession of the Leased
Premises- in the agreed condition to Tenant within the described delivery grace
period (including any extension thereof by reason of Force Majeure or the
actions or inactions of Tenant), then Tenant's sole remedy shall be to terminate
this Lease, and in no event shall Landlord be liable in damages to Tenant for
such delay. Tenant may not terminate this Lease at any time after the date
Landlord notifies Tenant that the Leased Premises have been put into the agreed
condition and are available for delivery to Tenant, unless Landlord's notice is
not given in good faith.

2.5  Performance Of Improvement Work.  Landlord shall, pursuant to the work
letter attached to and made a part of this Lease (the "Work Letter"), perform
the work described as "Building Shell" substantially as Set forth in the Work
Letter.  Tenant shall, pursuant to the Work Letter, perform the work described
as "Improvement Work" substantially as set forth in the Work Letter.  During
Tenant's construction of the Improvement Work, Tenant shall comply with all of
the terms and conditions of this Lease (including, without limitation, all
insurance requirements), provided that no Base Monthly Rent or Additional Rent
shall be due prior to the Lease Commencement Date.

2.6  Surrender Of Possession.

     (a)  Upon the expiration or upon the sooner termination of this Lease,
Tenant shall remove all of Tenant's signs from the exterior of the Building and,
subject to Section 6.2 below, shall remove all of Tenant's equipment, trade
fixtures, furniture, supplies, wall decorations and other personal property from
within the Leased Premises, the Building and the Outside Areas, and shall vacate
and surrender the Leased Premises, the Building, the Outside Areas and the
Property to Landlord in the same condition, broom clean, as existed at the time
the Improvement Work was

                                       4
<PAGE>

completed, reasonable wear and tear (and casualty, which is covered by Article
10) excepted. Tenant shall repair all damage to the Leased Premises, the
exterior of the Building and the Outside Areas caused by Tenant's removal of
Tenant's property. Tenant shall patch and refinish, to Landlord's reasonable
satisfaction, all penetrations made by Tenant or its employees to the floor,
walls or ceiling of the Leased Premises, whether such penetrations were made
with Landlord's approval or not. Tenant shall repair or replace all stained or
damaged ceiling tiles, wall coverings and floor coverings to the reasonable
satisfaction of Landlord. Tenant shall repair all damage caused by Tenant to the
exterior surface of the Building and the paved surfaces of the Outside Areas
and, where necessary, replace or resurface same. Tenant shall, subject to
Section 6.2 below, remove all Specialized Improvements (as defined in the Work
Letter) identified by Landlord pursuant to the Work Letter and shall repair all
damage to the Leased Premises, the Building and the Property caused by the
installation of the Specialized Improvements or their removal. In addition, and
without limiting the foregoing, Landlord may requite that Tenant remove any
improvements, alterations or modifications to the Leased Premises, the Building
or the Outside Areas to the extent (a) Tenant made such improvements,
alterations or modifications without Landlord's consent as permitted by
Paragraph 6.1, and (b) Tenant either (1) failed to request a determination by
Landlord at the time the improvements, alterations or modifications were made as
to whether the improvements, alterations or modifications could remain the
expiration or earlier termination of this Lease or (2) requested such
determination and Landlord notified Tenant at that time that the improvements,
alterations or modifications-must be removed at the expiration or earlier
termination of the Lease.

  (b) If the Leased Premises, the Building, the Outside Areas and the Property
are not surrendered to Landlord in the condition required by this paragraph at
the expiration or sooner termination of this Lease, Landlord may, at Tenant's
expense, so remove Tenant's signs, property and/or improvements not so removed
and make such repairs and replacements not so made or hire, at Tenant's expense,
independent contractors to perform such work.  Tenant shall be liable to
Landlord for all costs incurred by Landlord in returning the Leased Premises,
the Building and the Outside Areas to the required condition, together with
interest on all costs so incurred from the date paid by Landlord at the then
maximum rate of interest not prohibited or made usurious by law until paid.
Tenant shall pay to Landlord the amount of all costs so incurred plus such
interest thereon, within ten (10) days of Landlord's billing Tenant for same.
Tenant shall indemnify Landlord against loss or liability resulting from delay
by Tenant in surrendering the Leased Premises, including, without limitation,
any claims made by any succeeding Tenant or any losses to Landlord with respect
to lost opportunities to lease to succeeding tenants.

ARTICLE 3
RENT, LATE CHARGES AND SECURITY DEPOSITS

3.1  Base Monthly Rent. Commencing on the Lease Commencement Date (as determined
pursuant to Paragraph 2.3 above) and continuing throughout the Lease Term,
Tenant shall pay to Landlord, without prior demand therefor, in advance on the
first day of each calendar month, the amount set forth as "Base Monthly Rent" in
Article 1 (the "Base Monthly Rent"). In no event shall Base Monthly Rent
payments commence prior to the date Landlord delivers to Tenant the Building
Shell in accordance with the terms of this Lease.

3.2  Additional Rent. Commencing on the Lease Commencement Date (as determined
pursuant to Paragraph 2.3 above) and continuing throughout the Lease Term, in
addition to the Base Monthly Rent and to the extent not required by Landlord to
be contracted for and paid directly by Tenant, Tenant shall pay to Landlord as
additional rent (the "Additional Rent") the following amounts:

       (a) An amount equal to all Property operating Expenses (as defined in
Article 13) incurred by Landlord. Landlord shall deliver to Tenant Landlord's
reasonable estimate of any given expense (such as Landlord's Insurance Costs or
Real Property Taxes), or group of expenses, which it anticipates will be paid or
incurred for the ensuing calendar or fiscal year, as Landlord may determine, and
Tenant shall pay to Landlord an amount equal to the estimated amount of such
expenses for such year in equal monthly installments during such year with the
installments of Base Monthly Rent. Landlord reserves the right to change from
time to time (but not more frequently than once per year) the methods of billing
Tenant for any given expense or group of expenses or the periodic basis on which
such expenses are billed.

       (b) Landlord's share of the consideration received by Tenant upon certain
assignments and sublettings as required by Article 7.

                                       5
<PAGE>

       (c) Any legal fees and costs that Tenant is obligated to pay or reimburse
to Landlord pursuant to Article 13; and

       (d) Any other charges or reimbursements due Landlord from Tenant pursuant
to the terms of this Lease.

Notwithstanding the foregoing, Landlord may elect by written notice to Tenant to
have Tenant pay Real Property Taxes or any portion thereof directly to the
applicable taxing authority, in which case Tenant shall make such payments and
deliver satisfactory evidence of payment to Landlord no later than ten (10) days
before such Real Property Taxes become delinquent.

Tenant may cause an audit of Landlord's books and records to determine the
accuracy of Landlord's billings for Property Operating Expenses under this
Lease, provided Tenant commences such audit within sixty (60) days after
Tenant's receipt of the year-end statement described in Section 3.3 below
setting forth the annual reconciliation of the Property Operating Expenses.  If
such audit reveals that the actual Property Operating Expenses for any given
year were less than the amount that Tenant paid for Property Operating Expenses
for any such year, then Landlord shall pay to Tenant the excess.  If such audit
reveals a discrepancy of more than three (3%) percent of the actual amount of
any Property Operating Expenses charges, then Landlord shall pay the cost of the
audit.

                                       6
<PAGE>

3.3  Year-End Adjustments. If Landlord shall have elected to bill Tenant for:
the Property Operating Expenses (or any group of such expenses) on an estimated
basis in accordance with the provisions of Paragraph 3.2(a)(iii) above, Landlord
shall furnish to Tenant within three months following the end of the applicable
calendar or fiscal year, as the case may be, a statement setting forth (i) the
amount of such expenses paid or incurred during the just ended calendar or
fiscal year, as appropriate, and (ii) the amount that Tenant has paid to
Landlord for credit against such expenses for such period. If Tenant shall have
paid more than its obligation for such expenses for the stated period, Landlord
shall, at its election, either (i) credit the amount of such overpayment toward
the next ensuing payment or payments of Additional Rent that would otherwise be
due or (ii) refund in cash to Tenant the amount of such overpayment. If such
year-end statement shall show that Tenant did not pay its obligation for such
expenses in full, then Tenant shall pay to Landlord the amount of such
underpayment within thirty (30) days from Landlord's billing of same to Tenant.
The provisions of this Paragraph shall survive the expiration or sooner
termination of this Lease.

3.4  Late Charge, And Interest On Rent In Default. Tenant acknowledges that the
late payment by Tenant of any monthly installment of Base Monthly Rent or any
Additional Rent will cause Landlord to incur certain costs and expenses not
contemplated under this Lease, the exact amounts of which are extremely
difficult or impractical to fix. Such costs and expenses will include without
limitation, administration and collection Costs and processing and accounting
expenses. Therefore, if any installment of Base Monthly Rent is not received by
Landlord from Tenant within ten (10) calendar days after the same becomes due,
Tenant shall immediately pay to Landlord slate charge in an amount equal to the
amount set forth in Article 1 as the "Late Charge Amount," and if any Additional
Rent is not received by Landlord within ten (10) calendar days after same
becomes due, Tenant shall immediately pay to Landlords late charge in an amount
equal to 5% of the Additional Rent not so paid. Landlord and Tenant agree that
this late charge represents a reasonable estimate of such Costs and expenses and
is fair compensation to Landlord for the anticipated loss Landlord would suffer
by reason of Tenant's failure to make timely payment. In no event shall this
provision for a late charge be deemed to grant to Tenant a grace period or
extension of time within which to pay any rental installment or prevent Landlord
from exercising any right or remedy available to Landlord upon Tenant's failure
to pay each rental installment due under this Lease when due, including the
right to terminate this Lease. If any rent remains delinquent for a period in
excess of ten (10) calendar days, then, in addition to such late charge, Tenant
shall pay to Landlord interest on any rent that is not so paid from said tenth
(10th) day at the then maximum rate of interest not prohibited or made usurious
by Law until paid.

3.5  Payment Of Rent. Except as specifically provided otherwise in this Lease,
all rent shall be paid in lawful money of the United States, without any
abatement, reduction or offset for any reason whatsoever, to Landlord at such
address as Landlord may designate from time to time. Tenant's obligation to pay
Base Monthly Rent and all Additional Rent shall be appropriately prorated at the
commencement and expiration of the Lease Term. The failure by Tenant to pay any
Additional Rent as required pursuant to this Lease when due shall be treated the
same as a failure by Tenant to pay Base Monthly Rent when due, and Landlord
shall have the same rights and remedies against Tenant as Landlord would have
had Tenant failed to pay the Base Monthly Rent when due.

3.6  Prepaid Rent. Tenant shall, upon execution of this Lease, pay to Landlord
the amount set forth in Article 1 as "First Month's Prepaid Rent" as prepayment
of rent for credit against the first payment of Base Monthly Rent due hereunder.

3.7  Security Deposit. Tenant has deposited or shall deposit with Landlord the
amount Set forth in Article 1 as the "Security Deposit" as security for the
performance by Tenant of the terms of this Lease to be performed by Tenant, and
not as prepayment of rent.

        (a) Landlord may apply such portion or portions of the Security Deposit
as are reasonably necessary for the following purposes: (i) to remedy any
default by Tenant in the payment of Base Monthly Rent or Additional Rent or a
late charge or interest on defaulted rent, or any other monetary payment
obligation of Tenant under this Lease; (ii) to repair damage to the Leased
Premises, the Building or the Outside Areas caused or permitted to occur by
Tenant; (iii) to clean and restore and repair the Leased Premises, the Building
or the Outside Areas following their surrender to Landlord if not surrendered in
the condition required pursuant to the provisions of Article 2, and (iv) to
remedy any other default of Tenant to the extent permitted by Law including,
without limitation, paying in full on Tenant's behalf any sums claimed by
materialmen or contractors of Tenant to be owing to them by Tenant for work done
or improvements made at Tenant's request to the Leased Premises. In this regard,
Tenant hereby waives any restriction on the uses to which the Security Deposit
may be applied as contained in Section 1950.7(c) of the

                                       7
<PAGE>

California Civil Code and/or any successor Statute. In the event the Security
Deposit or any portion thereof is so used, Tenant shall pay to Landlord,
promptly upon demand, an amount in cash Sufficient to restore the Security
Deposit to the full original sum. If Tenant fails to promptly restore the
Security Deposit and if Tenant shall have paid to Landlord any sums as "Last
Month's Prepaid Rent," Landlord may, in addition to any other remedy Landlord
may have under this Lease, reduce the amount of Tenant's Last Month's Prepaid
Rent by transferring all or portions of such Last Month's Prepaid Rent to
Tenant's Security Deposit until such Security Deposit is restored to the amount
set forth in Article 1. Landlord shall not be deemed a trustee of the Security
Deposit. Landlord may use the Security Deposit in Landlord's ordinary business
and shall not be required to segregate it from Landlord's general accounts.
Tenant shall not be entitled to any interest on the Security Deposit. If
Landlord transfers the Building or the Property during the Lease Term, Landlord
may pay the Security Deposit to any subsequent owner in conformity with the
provisions of Section 1950.7 of the California Civil Code and/or any successor
statute, in which event the transferring landlord shall be released from all
liability for the return of the Security Deposit. Tenant specifically grants to
Landlord (and Tenant hereby waives the provisions of California Civil Code
Section 1950.7 to the contrary) a period of forty five (45) days following a
surrender of the Leased Premises by Tenant to Landlord within which to inspect
the Leased Premises, obtain cost estimates for required restorations and
repairs, receive and verily workmen's billings therefor, and prepare a final
accounting with respect to the Security Deposit. In no event shall the Security
Deposit or any portion thereof, be considered prepaid rent.

     (b) Provided that Tenant is not then in default beyond any applicable
notice and cure period under this Lease (and has not been in default beyond any
applicable notice and cure period more than three (3) times during the Term of
this Lease), the Security Deposit shall be reduced by an amount equal to one
hundred forty four thousand ($144,000) commencing on the first day of the
thirteenth month of the Lease Term, and on each anniversary of such day, until
such time as the Security Deposit is equal to two (2) months' Base Monthly Rent
(determined based on the Base Monthly Rent payable at the time of such final
reduction).

     (c) Notwithstanding clause (b) above, in the event Tenant records a profit
for two consecutive quarters (as shown on its quarterly financial statements
prepared in accordance with generally accepted accounting principles), and
provided that Tenant is not then in default beyond any applicable notice and
cure period under this Lease (and has not been in default beyond any applicable
notice and cure period more than three (3) times during the Term of this Lease),
the Security Deposit shall be reduced to an amount equal to one (1) month's Base
Monthly Rent (determined based on the Base Monthly Rent payable at the time of
such reduction).

     (d) Notwithstanding clauses (b) and (c) above, in the event Tenant achieves
a "BB" credit rating from Standard & Poors, Moody's, or another rating agency
reasonably acceptable to Landlord, and provided that Tenant is not then in
default beyond any applicable notice and cure period under this Lease (and has
not been in default beyond any applicable notice and cure period more than three
(3) times during the Term of this Lease), the Security Deposit shall be reduced
to an amount equal to one (I) month's Base Monthly Rent (determined based on the
Base Monthly Rent payable at the time of such reduction).

     (e) Tenant may elect to maintain the Security Deposit in the form of a
letter of credit ("Letter of Credit") in lieu of cash, provided the following
conditions are met: The Letter of Credit shall be issued by and drawable upon
the Santa Clara office of Silicon Valley Bank. The Letter of Credit shall be in
a form acceptable to Landlord, name Landlord as beneficiary, be in the amount of
the Security Deposit, have a term of not less than one (1) year, permit multiple
drawings, be fully transferable by Landlord and otherwise be substantially in
the form of Exhibit F attached hereto.. If upon any transfer, any fees or
charges shall be imposed, then such fees or charges shall be payable solely by
Landlord and the Letter of Credit shall so specify. Tenant shall not less than
thirty (30) days prior to its expiry date replace the Letter of Credit with a
new Letter of Credit with a term of not less than one (1) year and otherwise
complying with the requirements of this Paragraph 3(e). If not later than thirty
(30) days prior to the expiry date of the Letter of Credit Tenant fails to
furnish to Landlord a replacement letter of credit in accordance with the terms
of this Paragraph 3(e), then Landlord shall have the right to draw the full
amount of the Letter of Credit, by sight draft on the Issuing Bank, and shall
hold the proceeds of the Letter of Credit pursuant to the terms of this
Paragraph 3(e) as a cash security deposit; provided, however, should Tenant
thereafter furnish to Landlord a Letter of Credit meeting the requirements of
this Paragraph 3(e), such cash proceeds, less all expenses incurred by Landlord,
shall be returned to Tenant. The Letter of Credit may, at Tenant's Option, be
replaced by a different Letter of Credit from a different issuing bank, provided
that the form of such replacement Letter of Credit shall be acceptable to
Landlord in

                                       8
<PAGE>

Landlord's sole discretion, and such issuing bank shall be acceptable to
Landlord in Landlord's reasonable discretion.

ARTICLE 4
USE OF LEASED PREMISES AND OUTSIDE AREA

                                       9
<PAGE>

4.1  Permitted Use.  Tenant shall be entitled to use the Leased Premises twenty-
four (24) hours a day, seven (7) days a week, solely for the Permitted Use" as
set forth in Article 1 and for no other purpose whatsoever. Tenant shall have
the right to vacate the Leased Premises at any time during the Term of this
Lease, provided Tenant maintains the Leased Premises in a clean and safe
condition as if fully occupied and as otherwise required by the terms of this
Lease. Tenant shall have no right of access, use or occupancy of the Building
roof except as expressly permitted herein.

4.2  General Limitations On Use. Tenant shall not do or permit anything to be
done in or about the Leased Premises, the Building, the Outside Areas or the
Property which does or could (i) jeopardize the structural integrity of the
Building or (ii) cause damage to any part of the Leased Premises, the Building,
the Outside Areas or the Property. Tenant shall not operate any equipment within
the Leased Premises which does or could (i) injure, vibrate or shake the Leased
Premises or the Building, (ii) damage the operation of any electrical, plumbing,
heating, ventilating or air conditioning systems within or servicing the Leased
Premises or the Building, or (iii) damage or impair the efficient operation of
the sprinkler system (if any) within or servicing the Leased Premises or the
Building. Tenant shall not install any equipment or antennas on or make any
penetrations of the exterior walls or roof of the Building, and shall not affix
any equipment to or make any penetrations or cuts in the floor, ceiling, walls
or roof of the Leased Premises except as expressly set forth herein. Tenant
shall not place any loads upon the floors, walls, ceiling or roof systems which
could endanger the structural integrity of the Building or damage its floors,
foundations or supporting structural components. Tenant shall not place any
explosive, flammable or harmful fluids or other waste materials in the drainage
Systems of the Leased Premises, the Building, the Outside Areas or the Property.
Tenant shall not drain or discharge any fluids in the landscaped areas or across
the paved areas of the Property. Tenant shall not commit nor permit to be
committed any waste in or about the Leased Premises, the Building, the Outside
Areas or the Property.

4.3  Noise And Emissions. All noise generated by Tenant in its use of the Leased
Premises shall be confined or muffled so that it does not unreasonably interfere
with the businesses of the occupants and/or users of adjacent properties. All
dust, fumes, odors and other emissions generated by Tenant's use of the Leased
Premises shall be sufficiently dissipated in accordance with sound environmental
practice and exhausted from the Leased Premises in such a manner so as not to
unreasonably interfere with the businesses of the occupants and/or users of
adjacent properties, or cause any damage to the Leased Premises, the Building,
the Outside Areas or the Property or any component part thereof or the property
of adjacent property owners.

4.4  Trash Disposal. Tenant shall provide trash bins or other adequate garbage
disposal facilities within the trash enclosure areas provided or permitted by
Landlord outside the Leased Premises sufficient for the interim disposal of all
of its trash, garbage and waste. All such trash, garbage and waste temporarily
stored in such areas shall be stored in such a manner so that it is not visible
from outside of such areas, and Tenant shall cause such trash, garbage and waste
to be regularly removed from the Property. Tenant shall keep the Leased Premises
and the Outside Areas in a clean, safe and neat condition free and clear of all
of Tenant's trash, garbage, waste and/or boxes, pallets and containers
containing same at all times.

4.5  Parking. Tenant, at no additional cost, shall have the non-exclusive use of
twenty (20) parking spaces located in the Outside Areas. In the event the Leased
Premises are converted to general office use, thereafter Tenant shall have the
use, during the hours of 8:00 a.m. to 5:30 p.m. only, of Tenant's Proportionate
Share of parking spaces on the Property, less the number of parking spaces used
for the Equipment (as defined in Paragraph 4.10). Tenant agrees to assume
responsibility for compliance by its employees and invitees with the reasonable
and uniformly applied parking provisions contained herein. If Tenant or its
employees park any vehicle within the Property in violation of these provisions,
then Landlord may, upon prior written notice to Tenant giving Tenant one (1) day
(or any applicable statutory notice period, if longer than one (1) day) to
remove such vehicle(s), in addition to any other remedies Landlord may have
under this Lease, charge Tenant, as Additional Rent, and Tenant agrees to pay,
as Additional Rent, One Hundred Dollars ($100) per day for each day or partial
day that each such vehicle is so parked within the Property. Landlord reserves
the right to grant easements and access rights to others for use of the parking
areas on the Property, provided that such grants do not materially interfere
with Tenant's use of the parking areas.

                                       10
<PAGE>

4.6  Signs. Except for business identification signs as provided in Paragraph
4.6, Tenant shall not place or install on or within any portion of the Leased
Premises, the exterior of the Building, the Outside Areas or the Property any
sign, advertisement, banner, placard, or picture which is visible from the
exterior of the Leased Premises. Tenant shall not place or install on or within
any portion of the Leased Premises, the exterior of the Building, the Outside
Areas or the Property any business identification sign which is visible from the
exterior of the Leased Premises until Landlord shall have approved in writing
and in its sole discretion the location, size, content, design, method of
attachment and material to be used in the making of such sign. Notwithstanding
the foregoing, Tenant shall have the right to install business identification
signage on one-half of any monument signage for the Building or one-half of
available Building signage, subject to Landlord's prior reasonable approval and
all requirements of the City of San Jose. Any sign, once approved by Landlord,
shall be installed at Tenant's sole cost and expense and only in strict
compliance with Landlord's approval, using a person reasonably approved by
Landlord to install same. Landlord may remove any signs (which have not been
approved in writing by Landlord), advertisements, banners, placards or pictures
so placed by Tenant on or within the Leased Premises, the exterior of the
Building, the Outside Areas or the Property and charge to Tenant the cost of
such removal, together with any coats incurred by Landlord to repair any damage
caused thereby, including any cost incurred to restore the surface (upon which
such sign was so affixed) to its original condition. Tenant shall remove all of
Tenant's signs, repair any damage caused thereby, and restore the surface upon
which the sign was affixed to its original condition, all to Landlord's
reasonable satisfaction, upon the termination of this Lease.

4.7  Compliance With Laws And Private Restrictions. Tenant shall abide by and
shall promptly observe and comply with, at its sole cost and expense, all Laws
and Private Restrictions respecting the use and occupancy of the Leased
Premises, the Building, the Outside Areas or the Property including, without
limitation, all Laws governing the use and/or disposal of hazardous materials,
and shall defend with competent counsel, indemnify and hold Landlord harmless
from any claims, damages or liability resulting from Tenant's failure to so
abide, observe, or comply. Tenant's obligations hereunder shall survive the
expiration or sooner termination of this Lease.

4.8  Compliance With Insurance Requirements. With respect to any insurance
policies required or permitted to be carried by Landlord in accordance with the
provisions of this Lease, Tenant shall not conduct nor permit any other person
to conduct any activities nor keep, store or use (or allow any other person to
keep, store or use) any item or thing within the Leased Premises, the Building,
the Outside Areas or the Property which (i) is prohibited under the terms of any
such policies, (ii) could result in the termination of the coverage afforded
under any of such policies, or (iii) could give to the insurance carrier the
right to cancel any of such policies. Tenant shall comply with all requirements
of any insurance company, insurance underwriter, or Board of Fire Underwriters
which are necessary to maintain, at standard rates, the insurance coverages
carried by either Landlord or Tenant pursuant to this Lease, provided such
compliance does not prohibit the Permitted Use by Tenant of the Leased Premises.
Tenant shall be solely responsible for the payment of any increase in insurance
rates caused by Tenant or its activities within the Leased Premises, the
Building, the Outside Areas or the Property.

4.9  Landlord's Right To Enter. Landlord and its agents shall have the right to
enter the Leased Premises during normal business hours after giving Tenant
twenty-four (24) hours prior notice (except in the event of an emergency, when
no notice shall be required) and subject to Tenant's reasonable security
measures for the purpose of (i) inspecting the same; (ii) showing the Leased
Premises to prospective purchasers, mortgagees or tenants; (iii) making
necessary alterations, additions or repairs; and (iv) performing any of Tenant's
obligations when Tenant has failed to do so. Landlord shall have the right to
enter the Leased premises during normal business hours (or as otherwise agreed),
subject to Tenant's reasonable security measures, for purposes of supplying any
maintenance or services agreed to be supplied by Landlord. Landlord shall have
the right to enter the Outside Areas during normal business hours for purposes
of (i) inspecting the exterior of the Building and the Outside Areas; (ii)
posting notices of nonresponsibility (and for such purposes Tenant shall provide
Landlord at least thirty days' prior written notice of any work to be performed
on the Leased Premises); and (iii) supplying any services to be provided by
Landlord. Any entry into the Leased Premises or the Outside Areas obtained by
Landlord in accordance with this paragraph shall not under any circumstances be
construed or deemed to be a forcible or unlawful entry into, or a detainer of;
the Leased Premises, or an eviction, actual or constructive of Tenant from the
Leased Premises or any portion thereof.

                                       11
<PAGE>

4.10 Use Of Outside Areas.  Except as expressly permitted by this Paragraph
4.15, Tenant shall use the Outside Areas solely for the purposes for which they
were designated and intended and for no other purposes whatsoever, and shall not
use any of the Outside Areas for the storage of its materials, supplies,
inventory or equipment.

        (a) Tenant shall be permitted to install in the Outside Areas behind the
Building (in the locations depicted on the plan attached as Exhibit E) security
cameras, concrete bollards, three (3) HVAC towers and pumps, transformers, three
(3) emergency generators, and above-ground or under-ground fuel tanks up to a
collective maximum capacity of 20,000 gallons to serve such generators
(collectively, the Equipment"), which Equipment shall be installed in accordance
with the terms of the Work Letter (including, without limitation, the
requirements to obtain Landlord's prior reasonable approval of all plans and
specifications therefor). Any fuel tanks shall be installed with the best
containment mechanisms available (as approved by Landlord in its reasonable
discretion), and otherwise in compliance all Laws. All Equipment shall be
screened, sound-proofed, and shall have secondary containment mechanisms (where
applicable). Any Concrete bollards shall be installed in a manner that does not
interfere with other tenants' use of or access to the Building (as determined by
Landlord in its reasonable discretion).

        (b) Tenant, in its use of the Outside Areas, shall at all times keep the
Outside Areas in a safe condition free and clear of all materials, equipment,
debris, trash (except within existing enclosed trash areas), inoperable
vehicles, and other items which are not specifically permitted by Landlord to be
stored or located thereon by Tenant. If, in the opinion of Landlord,
unauthorized persons are using any of the Outside Areas by reason of, or under
claim of; the express or implied authority or consent of Tenant, then Tenant,
upon demand of Landlord, shall restrain, to the fullest extent then allowed by
Law, such unauthorized use, and shall initiate such appropriate proceedings as
may be required to so restrain such use.

4.11 Environmental Protection.  Tenant's obligations under this Paragraph 4.1 1
shall survive the expiration or termination of this Lease.

        (a) As used herein, the term "Hazardous Materials" shall mean any toxic
or hazardous substance, material or waste or any pollutant or infectious or
radioactive material, including but not limited to those substances, materials
or wastes regulated now or in the future under any of the following statutes or
regulations and any and all of those substances included within the definitions
of "hazardous substances," "hazardous materials," "hazardous waste," "hazardous
chemical substance or mixture, imminently hazardous chemical substance or
mixture, toxic substances," "hazardous air pollutant," "toxic pollutant," or
"solid waste" in the (a) Comprehensive Environmental Response, Compensation and
Liability Act of 1990 ("CERCLA" or "Superfund"), as amended by the Superfund
Amendments and Reauthorization Act of 1986 ("SARA"), 42 U.S.C. (S) 9601 et seq.,
(b) Resource Conservation and Recovery Act of 1976 ("RCRA"), 42 U.S.C. (S) 6901
et seq., (c) Federal Water Pollution Control Act ("FSPCA"), 33 U.S.C. (S) 1251
et seq., (d) Clean Air Act ("CAA"), 42 U.S.C. (S) 7401 et seq., (e) Toxic
Substances Control Act ("TSCA"), 14 U.S.C. (S)2601 et seq., (f) Hazardous
Materials Transportation Act, 49 U.S.C. (S) 1801, et seq., (g)
Carpenter-Presley-Tanner-Hazardous Substance Account Act ("California
Superfund"), Cal. Health & Safety Code (S) 25300 et seq., (h) California
Hazardous Waste Control Act, Cal. Health & Safety code (S) 25100 et seq., (i)
Porter-Cologne Water Quality Control Act ("Porter-Cologne Act"), Cal. Water Code
(S) 13000 et seq., (j) Hazardous Waste Disposal Land Use Law, Cal. Health &
Safety codes (S) 25220 et seq., (k) Safe Drinking Water and Toxic Enforcement
Act of 1986 ("Proposition 65"), Cal. Health & Safety code (S) 25249.5 et seq.,
(l) Hazardous Substances Underground Storage Tank Law, Cal. Health & Safety code
(S) 25280 et seq., (m) Air Resources Law, Cal. Health & Safety Code (S) 39000 et
seq., and (n) regulations promulgated pursuant to said laws or any replacement
thereof, or as similar terms are defined in the federal, state and local laws,
Statutes, regulations, orders or rules. Hazardous Materials shall also mean any
and all other biohazardous wastes and substances, materials and wastes which
are, or in the future become, regulated under applicable Laws for the protection
of health or the environment, or which are classified as hazardous or toxic
substances, materials or wastes, pollutants or contaminants, as defined, listed
or regulated by any federal, state or local law, regulation or order or by
common law decision, including, without limitation, (i) trichloroethylene,
tetrachloroethylene, perchloroethylene and other chlorinated solvents, (ii) any
petroleum products or fractions thereof, (iii) asbestos, (iv) polychlorinted
biphenyls, (v) flammable explosives, (vi) urea formaldehyde, (vii) radioactive
materials and waste, and (viii) materials and wastes that are harmful to or may
threaten human health, ecology or the environment.

        (b) Notwithstanding anything to the contrary in this Lease, Tenant, at
its sole cost, shall comply with all Laws relating to the storage, use and
disposal of Hazardous Materials; provided however; that Tenant shall not be

                                       12
<PAGE>

responsible for contamination of the Leased Premises by Hazardous Materials
existing as of the date the Building Shell is delivered to Tenant unless caused
by Tenant. Landlord represents and warrants that it has no actual knowledge of
Hazardous Materials contamination at the Property as of the date hereof, except
as may be set forth in any environmental assessment reports provided to Tenant.
Tenant shall not store, use or dispose of any Hazardous Materials except for
those Hazardous Materials listed in a Hazardous Materials management plan
("HMMP") which Tenant shall deliver to Landlord upon execution of this Lease and
update at least annually with Landlord ("Permitted Materials") which may be
used, stored and disposed of provided (i) such Permitted Materials are used,
stored, transported, and disposed of in strict compliance with applicable laws,
(ii) such Permitted Materials shall be limited to the materials listed on and
may be used only in the quantities specified in the HMMP, and (iii) Tenant shall
provide Landlord with copies of all material safety data sheets and other
documentation required under applicable Laws in connection with Tenant's use of
Permitted Materials as and when such documentation is provided to any regulatory
authority having jurisdiction. In no event shall Tenant cause or permit to be
discharged into the plumbing or sewage system of the Building or onto the land
underlying or adjacent to the Building any Hazardous Materials. Subject to the
requirements herein, Tenant shall be permitted to install lead, acid or gel
batteries within the Leased Premises provided such batteries are sealed and
self-contained. Tenant shall be solely responsible for and shall defend,
indemnify, and hold Landlord and its agents harmless from and against all
claims, costs and liabilities, including attorneys' fees and costs, arising out
of or in connection with Tenant's storage, use and/or disposal of Hazardous
Materials the Leased Premises, the Building and/or the Property. If the presence
of Hazardous Materials on the Leased Premises, the Building and/or the Property
caused or permitted by Tenant results in contamination or deterioration of water
or soil, then Tenant shall promptly take any and all action necessary to clean
up such contamination, but the foregoing shall in no event be deemed to
constitute permission by Landlord to allow the presence of such Hazardous
Materials. At any time prior to the expiration of the Lease Term if Tenant has a
reasonable basis to suspect that there has been any release or the presence of
Hazardous Materials in the ground or groundwater on the Leased Premises which
did not exist upon commencement of the Lease Term, Tenant shall have the right
to conduct appropriate tests of water and soil and to deliver to Landlord the
results of such tests to demonstrate that no contamination in excess of
permitted levels has occurred as a result of Tenant's use of the Leased
Premises. Tenant shall further be solely responsible for, and shall defend,
indemnify, and hold Landlord and its agents harmless from and against all
claims, costs and liabilities, including attorneys' fees and costs, arising out
of or in connection with any removal, cleanup and restoration work and materials
required hereunder to return the Property to its condition existing prior to the
appearance of the Hazardous Materials. Tenant shall not be responsible for any
Hazardous Materials contamination caused by Landlord or Landlord's agents or
employees.

        (c) Upon termination or expiration of the Lease, Tenant at its sole
expense shall cause all Hazardous Materials placed in or about the Leased
Premises, the Building and/or the Property by Tenant, its agents, contractors,
or invitees, and all installations (whether interior or exterior) made by or on
behalf of Tenant relating to the storage, use, disposal or transportation of
Hazardous Materials to be removed from the property and transported for use,
storage or disposal in accordance and compliance with all Laws and other
requirements respecting Hazardous Materials used or permitted to be used by
Tenant. Tenant shall apply for and shall obtain from all appropriate regulatory
authorities (including any applicable fire department or regional water quality
control board) all permits, approvals and clearances necessary for the closure
of the Property and shall take all other actions as may be required to complete
the closure of the Building and the Property. In addition, prior to vacating the
Leased Premises, Tenant shall undertake and submit to Landlord an environmental
site assessment from an environmental consulting company reasonably acceptable
to Landlord which site assessment shall evidence Tenant's compliance with this
Paragraph 4.11.

        (d) At any time prior to expiration of the Lease Term, subject to
reasonable prior notice (not less than forty-eight (48) hours) and Tenant's
reasonable security requirements and provided such activities do not
unreasonably interfere with the conduct of Tenant's business at the Leased
Premises, Landlord shall have the right to enter in and upon the Property,
Building and Leased Premises in order to conduct appropriate tests of water and
soil to determine whether levels of any Hazardous Materials in excess of legally
permissible levels has occurred as a result of Tenant's use thereof. Landlord
shall furnish copies of all such test results and reports to Tenant and, at
Tenant's option and cost, shall permit split sampling for testing and analysis
by Tenant. Such testing shall be at Tenant's expense if Landlord has a
reasonable basis for suspecting and confirms the presence of Hazardous Materials
in the soil or surface or ground water in, on, under, or about the Property, the
Building or the Leased Premises, which has been caused by or resulted from the
activities of Tenant, its agents, contractors, or invitees.

                                       13
<PAGE>

        (e) Landlord may voluntarily cooperate in a reasonable manner with the
efforts of all governmental agencies in reducing actual or potential
environmental damage. Tenant shall not be entitled to terminate this Lease or to
any reduction in or abatement of rent by reason of such compliance or
cooperation. Tenant agrees at all times to cooperate fully with the requirements
of governmental agencies regulating, or otherwise involved in, the protection of
the environment.

4.12 Rules And Regulations. Landlord shall have the right from time to time to
establish reasonable rules and regulations and/or amendments or additions
thereto respecting the use of the Leased Premises and the Outside Areas for the
care and orderly management of the Property. Upon delivery to Tenant of a copy
of such rules and regulations or any amendments or additions thereto, Tenant
shall comply with such rules and regulations, provided that such rules and
regulations are uniformly applied to all tenants in the Building. A violation by
Tenant of any of such rules and regulations shall constitute a default by Tenant
under this Lease. If there is a conflict between the rules and regulations and
any of the provisions of this Lease, the provisions of this Lease shall prevail.
Landlord shall not be responsible or liable to Tenant for the violation of such
rules and regulations by any other tenant of the Property.

4.13 Reservations. Landlord reserves the right from time to time to grant,
without the consent or joinder of Tenant, such easements, rights of way and
dedications over the Property that Landlord deems necessary, and to cause the
recordation of parcel maps and restrictions, so long as such easements, rights
of way and dedications do not materially and adversely affect Tenant's use of
the Leased Premises or Outside Areas. Tenant agrees to execute any documents
reasonably requested by Landlord to effectuate any such easement rights,
dedications, maps or restrictions.

4.14 Roof. Notwithstanding any provision of this Lease to the contrary, Landlord
hereby reserves to itself and its designees rights of access, use and occupancy
of the Building roof, and Tenant shall have no right of access, use or occupancy
of the Building roof except as permitted herein and except to the extent
required in order to enable Tenant to perform Tenant's maintenance and repair
obligations pursuant to this Lease. Subject to Tenant's restoration and repair
obligations under Paragraph 2.6, Tenant shall have the right to install two (2)
receiving antennas and one (I) two foot microwave dish on the roof of the
Building in a location reasonably designated by Landlord (recognizing the
concurrent use of Landlord and any other tenant of the Building) provided such
antennas are adequately screened. With Landlord's prior written consent (which
shall not be unreasonably withheld), Tenant, for its own use and use by its
customers, may install other equipment on the roof of the Building so. long as
such equipment is the normal and customary type of equipment related to normal
and customary operation of the Building, such as HVAC units. Landlord agrees to
use commercially reasonable efforts to prohibit any use of the Building roof
which would damage Tenant's equipment on the Building roof and in the Leased
Premises. Landlord may permit any other tenant of the Building to install on the
Building roof equipment of the same type and character and with the same
capacity as the equipment maintained by Tenant on the Building roof.

ARTICLE 5
REPAIRS, MAINTENANCE, SERVICES AND UTILITIES

5.1  Repair And Maintenance.  Except in the case of damage to or destruction of
the Leased Premises, the Building, the Outside Areas or the Property caused by
an act of God or other peril, in which case the provisions of Article 10 shall
control, the parties shall have the following obligations and responsibilities
with respect to the repair and maintenance of the Leased Premises, the Building,
the Outside Areas, and the Property.

        (a) Tenant's Obligations. Tenant shall, at all times during the Lease
Term and at its sole cost and expense, regularly clean and continuously keep and
maintain in good order, condition and repair the Leased Premises and every part
thereof including, without limiting the generality of the foregoing, (i) all
interior walls, floors and ceilings, (ii) all windows, doors and skylights,
(iii) all electrical wiring, conduits, connectors and fixtures, (Iv) all
plumbing, pipes, sinks, toilets, faucets and drains, (v) all lighting fixtures,
bulbs and lamps and all heating, ventilating and air conditioning equipment, and
(vi) all entranceways to the Leased Premises. Tenant, if requested to do so by
Landlord, shall hire, at Tenant's sole cost and expense, a licensed heating,
ventilating and air conditioning contractor to regularly and periodically (not
less frequently than every three months) inspect and perform required
maintenance on the heating, ventilating and air conditioning equipment and
systems serving the Leased Premises, or alternatively, Landlord may, at its
election (if Landlord determines in its reasonable discretion

                                       14
<PAGE>

that Tenant is not adequately maintaining the heating, ventilating and air
conditioning equipment and systems serving the Leased Premises), contract in its
own name for such regular and periodic inspections of and maintenance on such
heating, ventilating and air conditioning equipment and systems and charge to
Tenant, as Additional Rent, the cost thereof. Tenant shall, at its sole cost and
expense, repair all damage to the Leased Premises, the Building, the Outside
Areas or the Property caused by the activities of Tenant, its employees,
invitees or contractors promptly following written notice from Landlord to so
repair such damages. If Tenant shall fail to perform the required maintenance or
fail to make repairs required of it pursuant to this paragraph within a
reasonable period of time following notice from Landlord to do so, then Landlord
may, at its election and without waiving any other remedy it may otherwise have
under this Lease or St law, perform such maintenance or make such repairs and
charge to Tenant, as Additions Rent, the costs so incurred by Landlord for same.
All glass within or a part of the Leased Premises, both interior and exterior,
is at the sole risk of Tenant and any broken glass shall promptly be replaced by
Tenant at Tenant's expense with glass of the same kind, size and quality. Tenant
may contract directly with a janitorial service company for the cleaning of the
Leased Premises.

        (b) Landlord's Obligation. Landlord shall, at all times during the Lease
Term, maintain in good condition and repair the foundation, roof structure,
load-bearing exterior walls of the Building, and the Outside Areas including the
parking areas and landscaping; provided that nothing contained herein shall
require Landlord to maintain any equipment installed by Tenant In the Outside
Areas. Landlord shall regularly and periodically sweep and clean the driveways
and parking areas. So long as there is more than one tenant in the Building,
Landlord shall maintain the Common Areas of the Building including restroom
supplies and janitor service during the times and in the manner that such
services are customarily furnished in comparable buildings in the area; provided
that in no event shall Landlord be obligated to furnish janitor service on
Saturdays, Sundays, or legal holidays. Landlord shall hire a licensed roofing
contractor to regularly and periodically (not less frequently than every three
months) inspect and perform required maintenance on the roof of the Building,
and charge to Tenant, as Additional Rent, the cost thereof The provisions of
this subparagraph (b) shall in no way limit the right of Landlord to charge to
Tenant, as Additional Rent pursuant to Article 3 (to the extent permitted
pursuant to Article 3), the costs incurred by Landlord in performing such
maintenance and/or making such repairs.

                                       15
<PAGE>

5.2  Utilities. Tenant shall arrange at its sole cost and expense and in its own
name, for the supply of gas and electricity to the Leased Premises. In the event
that electricity is not separately metered, Landlord shall cause such meters to
be installed at Landlord's sole cost and expense. Landlord shall maintain the
water meter(s) in its own name; provided, however, that if at any time during
the Lease Term Landlord shall require Tenant to put the water service in
Tenant's name, Tenant shall do So at Tenant's sole cost. Tenant shall be
responsible for determining if the local supplier of water, gas and electricity
can supply the needs of Tenant and whether or not the existing water, gas and
electrical distribution systems within the Building and the Leased Premises are
adequate for Tenant's needs. Tenant shall be responsible for determining if the
existing sanitary and storm sewer systems now servicing the Leased Premises and
the Property are adequate for Tenant's needs. Tenant shall pay all charges for
water, gas, electricity and storm and Sanitary sewer services as so supplied to
the Leased Premises, irrespective of whether or not the services are maintained
in Landlord's or Tenant's name. Tenant may Contract directly with a local
electricity provider to bring additional electricity to the Leased Premises.
Landlord agrees to use commercially reasonable efforts to assist Tenant in
obtaining additional electricity but shall not be required to expend any money
or incur any costs in doing so. Tenant shall provide to other tenants of the
Building access to and use of the electrical room installed by Tenant, subject
to reasonable prior notice and Tenant's reasonable security measures.

5.3  Security. Tenant acknowledges that Landlord has not undertaken any duty
whatsoever to provide security for the Leased Premises, the Building, the
Outside Areas or the Property and, accordingly, Landlord is not responsible for
the security of same or the protection of Tenant's property or Tenant's
employees, invitees or contractors. To the extent Tenant determines that such
security or protection services are advisable or necessary, Tenant shall arrange
for and pay the Costs of providing same.

5.4  Energy And Resource Consumption. Landlord may voluntarily cooperate in a
reasonable manner with the efforts of governmental agencies and/or utility
suppliers in reducing energy or other resource consumption within the Property,
provided that such Cooperation does not materially and adversely impact Tenant's
use of the Leased Premises. Tenant shall not be entitled to terminate this Lease
or to any reduction in or abatement of rent by reason of such compliance or
cooperation. Tenant agrees at all times to cooperate fully with Landlord and to
abide by all reasonable rules established by Landlord in order to comply with
the requirements of utility suppliers and governmental agencies regulating the
consumption of energy and/or other resources.

5.5  Limitation Of Landlord's Liability. Landlord shall not be liable to Tenant
for injury to Tenant, its employees, agents, invitees or Contractors, damage to
Tenant's property or loss of Tenant's business or profits, nor shall Tenant be
entitled to terminate this Lease or to any reduction in or abatement of rent by
reason of (i) Landlord's failure to provide security services or systems within
the Property for the protection of the Leased Premises, the Building or the
Outside Areas, or the protection of Tenant's property or Tenant's employees,
invitees, agents or contractors, or (ii) Landlord's failure to perform any
maintenance or repairs to the Leased Premises, the Building, the Outside Areas
or the Property until Tenant shall have first notified Landlord, in writing, of
the need for such maintenance or repairs, and then only after Landlord shall
have had a reasonable period of time following its receipt of such notice within
which to perform such maintenance or repairs, or (iii) any failure,
interruption, rationing or other curtailment in the supply of water, electric
Current, gas. or other utility service to the Leased Premises, the Building, the
Outside Areas or the Property from whatever cause (other than Landlord's gross
negligence or willful misconduct), or (iv) the unauthorized intrusion or entry
into the Leased Premises by third parties (other than Landlord).

ARTICLE 6
ALTERATIONS AND IMPROVEMENTS

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<PAGE>

6.1  By Tenant. Tenant shall not make any alterations to or modifications of the
Leased Premises or construct any improvements within the Leased Premises which
affect the structural components of the Leased Premises or Building until
Landlord shall have first approved, in writing, the plans and specifications
therefor, which approval may be withheld in Landlord's reasonable discretion,
provided that any such alterations, improvements or modifications shall be
removed at the expiration or earlier termination of this Lease and the Leased
Premises returned to their condition existing prior to such alterations,
improvements or modifications. Tenant may make non-structural alterations to or
modifications of the Leased Premises or construct any non-structural
improvements within the Leased Premises without Landlord's consent, provided
that (i) Tenant shall notify Landlord at least five (5) business days prior to
commencing such alterations, modifications or improvements, (ii) Landlord shall
have the right to receive final plans and specifications for such alterations,
modifications and/or improvements, and (iii) Tenant shall be obligated to remove
all such alterations, modifications and improvements in accordance with
Paragraph 2.6 hereof at the expiration or earlier termination of this Lease. At
Tenant's option, Tenant may submit a written request to Landlord requesting that
alterations, modifications or improvements made pursuant to this Paragraph 6.1
be allowed to remain at the expiration or earlier termination of this Lease,
which Landlord may decide in its sole and absolute discretion. If such request
is not made, Landlord may make an election to require removal at the expiration
or earlier termination of this Lease. All such modifications, alterations or
improvements shall be made, constructed or installed by Tenant at Tenant's
expense (including all permit fees and governmental charges related thereto),
using a licensed contractor, in substantial compliance with the plans and
specifications therefor previously provided to Landlord. All work undertaken by
Tenant shall be done in accordance with all Laws and in a good and workmanlike
manner using new materials of good quality. Tenant shall not commence the making
of any such modifications or alterations or the construction of any such
improvements until (i) all required governmental approvals and permits shall
have been obtained, (ii) all requirements regarding insurance imposed by this
Lease have been satisfied, (iii) Tenant shall have given Landlord at least five
(5) business days prior written notice of its intention to commence such work to
that Landlord may post and file notices of non-responsibility, and (iv) if
requested by Landlord, Tenant shall have obtained contingent liability and broad
form builder's risk insurance in an amount satisfactory to Landlord in its
reasonable discretion to cover any perils relating to the proposed work not
covered by insurance carried by Tenant pursuant to Article 9. In no event shall
Tenant make any modification, alterations or improvements whatsoever to the
Outside Areas or the exterior or structural components of the Building
including, without limitation, any cuts or penetrations in the floor, roof or
exterior walls of the Leased Premises except as expressly provided herein. As
used in this Article, the term "modifications, alterations and/or improvements"
shall include, without limitation, the installation of additional electrical
outlets, overhead lighting fixtures, drains, sinks, partitions, doorways, or the
like. Subject to Tenant's obligations under Paragraph 2.6 hereof (including,
without limitation, the obligation to remove and repair), Tenant shall have the
right, subject to Landlord's reasonable prior approval: (i) to use building
shafts or conduits between the Leased Premises and other parts of the Building
for the installation of maintenance of conduits, cables, ducts, pipes and other
devices for communications, data processing devices, supplementary HVAC and
other facilities Consistent with its use of the Leased Premises; and (ii) to
cover or block Out windows (including the installation of sheet rock walls on
the second floor of the Building) for the purpose of providing a more stable and
secure technical environment within the Premises (provided that such covering or
blocking does not affect the exterior appearance of the Building).

                                       17
<PAGE>

6.2  Ownership Of Improvements. All modifications, alterations and improvements
made or added to the Leased Premises by Tenant, including all HVAC towers and
equipment (other than Tenant's inventory, equipment, computers, security
systems, generators, UPS systems, transfer twitches, movable furniture, wall
decorations, trade fixtures and other personal property) shall be deemed real
property and a part of the Leased Premises, but shall remain the property of
Tenant during the Lease. Any such modifications, alterations or improvements,
once completed, shall not be altered or removed from the Leased Premises during
the Lease Term without Landlord's written approval first obtained in accordance
with the provisions of Paragraph 6.1 above. At the expiration or sooner
termination of this Lease, all such modifications, alterations and improvements,
including all HVAC towers and equipment, (other than Tenant's inventory,
equipment, computers, security systems, generators, UPS systems, transfer
twitches movable furniture, wall decorations, trade fixtures and other personal
property), shall automatically become the property of Landlord and shall be
surrendered to Landlord as part of the Leased Premises as required pursuant to
Article 2, unless Landlord shall require Tenant to remove any of such
modifications, alterations or improvements in accordance with the provisions of
Article 2, in which ease Tenant shall so remove same. Landlord shall have no
obligations to reimburse Tenant for all or any portion of the cost or value of
any such modifications, alterations or improvements so surrendered to Landlord.
All modifications, alterations or improvements which are installed or
constructed on or attached to the Leased Premises by Landlord and/or at
Landlord's expense shall be deemed real property and a part of the Leased
Premises and shall be property of Landlord. All lighting, plumbing, electrical,
heating, ventilating and air conditioning fixtures, partitioning, window
coverings, wall coverings and floor coverings installed by Tenant shall be
deemed improvements to the Leased Premises and not trade fixtures of Tenant.

6.3  Alterations Required By Law.  Tenant shall make all modifications,
alterations and improvements to the Leased Premises, at its sole cost, that are
required by any Law because of (i) Tenant's use or occupancy of the Leased
Premises, the Building, the Outside Areas or the Property, (ii) Tenant's
application for any permit or governmental approval, or (iii) Tenant's making of
any modifications, alterations or improvements to or within the Leased Premises.
If Landlord shall, at any time during the Lease Term, be required by any
governmental authority to make any modifications, alterations or improvements to
the Building or the Property, the cost incurred by Landlord in making such
modifications, alterations or improvements, including interest at a rate equal
to the greater of(a) 12%, or (b) the sum of that rate quoted by Wells Fargo
Bank, N.T. & S.A. from time to time as its prime rate, plus two percent (2%)
("Wells Prime Plus Two") (but in no event more than the maximum interest rate
permitted by law), shall be amortized by Landlord over the useful life of such
modifications, alterations or improvements, as determined in accordance with
generally accepted accounting principles, and the monthly amortized cost of such
modifications, alterations and improvements as so amortized shall be considered
a Property Maintenance Cost.

6.4  Liens. Tenant shall keep the Property and every part thereof free from any
lien, and shall pay when due all bills arising out of any work performed,
materials furnished, or obligations incurred by Tenant, its agents, employees or
contractors relating to the Property. If any such claim of lien is recorded
against Tenant's interest in this Lease, the Property or any part thereof,
Tenant shall bond against, discharge or otherwise cause such lien to be entirely
released within ten (10) days after the same has been recorded. Tenant's failure
to do so shall be conclusively deemed a material default under the terms of this
Lease.

ARTICLE 7
ASSIGNMENT AND SUBLETTING BY TENANT

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<PAGE>

7.1  By Tenant.  Tenant shall not sublet the Leased Premises or any portion
thereof or assign its interest in this Lease, whether voluntarily or by
operation of Law, without Landlord's prior written consent which shall not be
unreasonably withheld, conditioned or delayed.  Any attempted subletting or
assignment without Landlord's prior written consent, at Landlord's election,
shall constitute a default by Tenant under the terms of this Lease.  The
acceptance of rent by Landlord from any person or entity other than Tenant, or
the acceptance of rent by Landlord from Tenant with knowledge of a violation of
the provisions of this paragraph, shall not be deemed to be a waiver by Landlord
of any provision of this Article or this Lease or to be a consent to any
subletting by Tenant or any assignment of Tenant's interest in this Lease.  Co-
location use of the Leased Premises by Tenant's customers and vendors shall not
be considered an assignment or sublet for purposes hereof.  Without limiting the
circumstances in which it may be reasonable for Landlord to withhold its consent
to an assignment or subletting, Landlord and Tenant acknowledge that it shall be
reasonable for Landlord to withhold its consent in the following instances:

     (a) the proposed assignee or sublessee is a governmental agency;

     (b) in Landlord's reasonable judgment, the use of the Leased Premises by
the proposed assignee or sublessee would involve occupancy by other than a
Permitted Use, or would require increased services by Landlord;

     (c) in Landlord's reasonable judgment, the financial worth of the proposed
assignee does not meet the credit standards applied by Landlord;

     (d) the proposed assignee or sublessee (or any of its affiliates) has
beep in material default under a lease, has been in litigation with a previous
landlord, or in the ten years prior to the assignment or sublease has filed for
bankruptcy protection, has been the subject of an involuntary bankruptcy, or has
been adjudged insolvent

     (e) Landlord has experienced a previous material or monetary default by or
is in litigation with the proposed assignee or sublessee,

     (f) the use of the Leased Premises by the proposed assignee or sublessee
will violate any applicable law, ordinance or regulation;

     (g) the proposed assignee or sublessee is, as of the date of this Lease, a
tenant in the Building; or the proposed assignee or sublessee is a prospective
tenant from whom Landlord has a letter of interest within ninety (90) days prior
to the proposed assignment or sublease or to whom Landlord has made a written
leasing proposal; or at the time Tenant informed Landlord of its decision to
assign or sublet, Landlord identified to Tenant the proposed assignee or as a
prospective tenant;

     (h) the proposed assignment or sublease fails to include all of the terms
and provisions required to be included therein pursuant to this Article 7;

     (i) Tenant is in default of any obligation of Tenant under this Lease
beyond any applicable cure period, or Tenant has defaulted under this Lease on
three or more occasions during the 12 months preceding the date that Tenant
shall request consent; or

     (j) in the case of a subletting of less than the entire Leased Premises, if
the subletting would result in the division of the Leased Premises into more
than two subparcels or would require material improvements to be made outside of
the Leased Premises, which shall be the responsibility of Tenant.

                                       19
<PAGE>

7.2  Merger, Reorganization, or Sale of Assets.  Any dissolution, merger,
consolidation or other reorganization of Tenant, or the sale or other transfer
in the aggregate over the Lease Term of a controlling percentage of the capital
stock of Tenant, or the sale or transfer of all or a substantial portion of the
assets of Tenant, shall be deemed a voluntary assignment of Tenant's interest in
this Lease.  The phrase "controlling percentage" means the ownership of and the
right to vote stock possessing more than fifty percent of the total combined
voting power of all classes of Tenant's capital stock issued, outstanding and
entitled to vote for the election of directors.  If Tenant is a partnership, a
withdrawal or change, voluntary.  involuntary or by operation of Law, of any
general partner, or the dissolution of the partnership, shall be deemed a
voluntary assignment of Tenant's interest in this Lease.  Notwithstanding the
foregoing, Tenant may, without Landlord's prior written consent, sublet the
Leased Premises or assign this Lease to (individually, a "Permitted Assignee,"
collectively, "Permitted Assignees"): (i) a subsidiary, affiliate, division,
corporation or joint venture controlling, controlled by or under common control
with Tenant; or (ii) a successor corporation related to Tenant by merger,
consolidation, nonbankruptcy reorganization, or government action; provided that
any Permitted Assignee under (i) or (ii) above has the financial capability to
perform Tenant's obligations under this Lease.

7.3  Landlord's Election. If Tenant shall desire to assign its interest under
the Lease or to sublet the Leased Premises, Tenant must first notify Landlord,
in writing, of its intent to so assign or sublet, at least thirty (30) days in
advance of the date it intends to so assign its interest in this Lease or sublet
the Leased Premises but not sooner than one hundred eighty days (180) in advance
of such date, specifying in detail the terms of such proposed assignment or
subletting, including the name of the proposed assignee or sublessee, the
property assignee's or sublessee's intended use of the Leased Premises, current
financial statements (including a balance sheet, income statement and statement
of cash flow, all prepared in accordance with generally accepted accounting
principles) of such proposed assignee or sublessee, the form of documents to be
used in effectuating such assignment or subletting and such other information as
Landlord may reasonably request. Landlord shall have a period often (10)
business days following receipt of such notice and the required information
within which to do one of the following: (i) consent to such requested
assignment or subletting subject to Tenant's compliance with the conditions set
forth in Paragraph 7.4 below, or (ii) refuse to so consent to such requested
assignment or subletting (specifying the reasons for such refusal), provided
that such consent shall not be unreasonably refused. During such ten (10)
business day period, Tenant covenants and agrees to supply to Landlord, upon
request, all necessary or relevant information which Landlord may reasonably
request respecting such proposed assignment or subletting and/or the proposed
assignee or sublessee. Tenant's written request may also contain a request in
ALL CAPITALS BOLD FACE TYPE for Landlord to respond within ten (10) business
days. If Tenant includes such a request, and Landlord fails to respond within
such ten (10) business day period, the proposed assignment or subletting shall
be deemed approved.

7.4  Conditions To Landlord's Consent.  If Landlord elects to consent, or shall
have been ordered to so consent by a court of competent jurisdiction, to such
requested assignment or subletting, such consent shall be expressly conditioned
upon the occurrence of each of the conditions below set forth, and any purported
assignment or subletting made or ordered prior to the full and complete
satisfaction of each of the following conditions shall be void and, at the
election of Landlord, which election may be exercised at any time following such
a purported assignment or subletting but prior to the satisfaction of each of
the stated conditions, shall constitute a material default by Tenant under this
Lease until cured by satisfying in full each such condition by the assignee or
sublessee.  The conditions are as follows:

     (a) Landlord having approved in form and substance the assignment or
sublease agreement and any ancillary documents, which approval shall not be
unreasonably withheld by Landlord if the requirements of this Article 7 are
otherwise complied with.

     (b) Tenant and any subtenant having executed Landlord's standard form
"Consent to Sublease."

     (c) Each such sublessee or assignee having agreed, in writing satisfactory
to Landlord and its counsel and for the benefit of Landlord, to assume, to be
bound by, and to perform the obligations of this Lease to be performed by Tenant
which relate to space being subleased.

     (d) Tenant having fully and completely performed all of its obligations
under the terms of this Lease through and including the date of such assignment
or subletting.

                                       20
<PAGE>

     (e) Tenant having reimbursed to Landlord all reasonable costs and
reasonable attorneys' fees incurred by Landlord in conjunction with the
processing and documentation of any such requested subletting or assignment (up
to a maximum of $l,000).

     (f) Tenant having delivered to Landlord a complete and fully-executed
duplicate original of such sublease agreement or assignment agreement (as
applicabl e) and all related agreements.

     (g) Tenant having paid, or having agreed in writing to pay as to future
payments, to Landlord fifty percent (50%) of all assignment consideration or
excess rentals to be paid to Tenant or to any other on Tenant's behalf or for
Tenant's benefit for such assignment or subletting as follows:

          (i)       If Tenant assigns its interest under this Lease and if all
or a portion of the consideration for such assignment is to be paid by the
assignee at the time of the assignment, that Tenant shall have paid to Landlord
and Landlord shall have received an amount equal to fifty percent (50%) of the
assignment consideration so paid or to be paid (whichever is the greater) at the
time of the assignment by the assignee; or

          (ii)      If Tenant assigns its interest under this Lease and if
Tenant is to receive all or a portion of the consideration for such assignment
in future installments, that Tenant and Tenant's assignee shall have entered
into a written agreement with and for the benefit of Landlord satisfactory to
Landlord and its counsel whereby Tenant and Tenant's assignee jointly agree to
pay to Landlord an amount equal to fifty percent (50%) of all such future
assignment consideration installments to be paid by such assignee as and when
such assignment consideration is so paid.

          (iii)     If Tenant subleases the Leased Premises, that Tenant and
Tenant's sublessee shall have entered into a written agreement with and for the
benefit of Landlord satisfactory to Landlord and its counsel whereby Tenant and
Tenant's sublessee jointly agree to pay to Landlord fifty percent (50%) of all
excess rentals to be paid by such sublessee as and when such excess rentals are
so paid.

                                       21
<PAGE>

7.5  Assignment Consideration And Excess Rentals Defined.  For purposes of this
Article, including any amendment to this Article by way of addendum or other
writing, the term "assignment consideration" shall mean all consideration to be
paid by the assignee to Tenant pr to any other party on Tenant's behalf or for
Tenant's benefit as consideration for such assignment, after deduction for
reasonable leasing commissions paid by Tenant but without deductions for any
other costs or expenses (including, without limitation, tenant improvements,
capital improvements, building upgrades, permit fees, attorneys' fees, and other
consultants' fees) incurred by Tenant in connection with such assignment, and
the term "excess rentals" shall mean all consideration to be paid by the sub
lessee to Tenant or to any other party on Tenant's behalf or for Tenant's
benefit for the sublease of the Leased Premises in excess of the rent due to
Landlord under the terms of this Lease for the same period, after deduction
reasonable leasing commissions paid by Tenant (amortized over the term of the
sublease) but without deduction for any other costs or expenses (including,
without limitation, tenant improvements, capital improvements, building
upgrades, permit fees, attorneys' fees, and other consultants' fees) incurred by
Tenant in connection with such sublease.  Tenant agrees that the portion of any
assignment consideration and/or excess rentals arising from any assignment or
subletting by Tenant which is to be paid to Landlord pursuant to this Article
now is and shall then be the property of Landlord and not the property of
Tenant.

7.6  Payments.  All payments required by this Article to be made to Landlord
shall be made in cash in full as and when they become due.  At the time Tenant,
Tenant's assignee or sublessee makes each such payment to Landlord, Tenant or
Tenant's assignee or sublessee, as the case may be, shall deliver to Landlord an
itemized statement in reasonable detail showing the method by which the amount
due Landlord was calculated and certified by the party making such payment as
true and correct.

7.7  Good Faith.  The rights granted to Tenant by this Article are granted in
consideration of Tenant's express covenant that all pertinent allocations which
are made by Tenant between the rental value of the Leased Premises and the value
of any of Tenant's personal property which may be conveyed or leased generally
concurrently with and which may reasonably be considered a part of the same
transaction as the permitted assignment or subletting shall be made fairly,
honestly and in good faith.  If Tenant shall breach this covenant, Landlord may
immediately declare Tenant to be in default under the terms of this Lease and
terminate this Lease and/or exercise any other rights and remedies Landlord
would have under the terms of this Lease in the case of a material default by
Tenant under this Lease.

7.8  Effect Of Landlord's Consent.  No subletting or assignment, even with the
consent of Landlord (and even to a Permitted Assignee) shall relieve Tenant of
its personal and primary obligation to pay rent and to perform all of the other
obligations to be performed by Tenant hereunder.  Consent by Landlord to one or
more assignments of Tenant's interest in this Lease or to one or more
sublettings of the Leased Premises shall not be deemed to be a consent to any
subsequent assignment or subletting.  If Landlord shall have been ordered by a
court of competent jurisdiction to consent to a requested assignment or
subletting, or such an assignment or subletting shall have been ordered by a
court of competent jurisdiction over the objection of Landlord, such assignment
or subletting shall not be binding between the assignee (or sublessee) and
Landlord until such time as all conditions set forth in Paragraph 7.4 above have
been fully satisfied (to the extent not then satisfied) by the assignee or
sublessee, including, without limitation, the payment to Landlord of all agreed
assignment considerations and/or excess rentals then due Landlord.

ARTICLE 8
LIMITATION ON LANDLORD'S LIABILITY AND INDEMNITY

                                       22
<PAGE>

8.1  Limitation On Landlord's Liability And Release. Landlord shall not be
liable to Tenant for, and Tenant hereby releases Landlord and its partners,
principals, members, officers, agents, employees, lenders, attorneys, and
consultants from, any and all liability, whether in contract, tort or on any
other basis, for any injury to or any damage sustained by Tenant, Tenant's
agents, employees, Contractors or invitees, any damage to Tenant's property, or
any loss to Tenant's business, loss of Tenant's profits or other financial loss
of Tenant resulting from or attributable to the condition of, the management
of, the repair or maintenance of, the protection of, the supply of services or
utilities to, the damage in or destruction of the Leased Premises, the Building,
the Property or the Outside Areas, including without limitation (i) the failure,
interruption, rationing or other curtailment or cessation in the supply of
electricity, water, gas or other utility service to the Property, the Building
or the Leased Premises; (ii) the vandalism or forcible entry into the Building
or the Leased Premises; (iii) the penetration of water into or onto any portion
of the Leased Premises; (iv) the failure to provide security and/or adequate
lighting in or about the Property, the Building or the Leased Premises, (v) the
failure of any mechanical Systems to function properly (such as the HVAC
systems); (vi) the blockage of access to any portion of the Property, the
Building or the Leased Premises, except that Tenant does not so release Landlord
from liability from any of the foregoing to the extent such damage was
proximately caused by Landlord's active negligence, willful misconduct, or
Landlord's failure to perform an obligation expressly undertaken pursuant to
this Lease after a reasonable period of time shall have lapsed following receipt
of written notice from Tenant to so perform such obligation. In this regard,
Tenant acknowledges that it is fully apprised of the provisions of Law relating
to releases, and particularly to those provisions contained in Section 1542 of
the California Civil Code which reads as follows:

          "A general release does not extend to claims which the
          creditor does not know or suspect to exist in his favor at
          the time of executing the release, which if known by him
          must have materially affected his settlement with the debtor."

Notwithstanding such statutory provision, and for the purpose of implementing a
full and complete release and discharge, Tenant hereby (i) waives the benefit of
such statutory provision and (ii) acknowledges that, subject to the exceptions
specifically set forth herein, the release and discharge set forth in this
paragraph is a full and complete settlement and release and discharge of all
claims and is intended to include in its effect, without limitation, all claims
which Tenant, as of the date hereof, does not know of or suspect to exist in its
favor.

8.2  Tenant's Indemnification Of Landlord.  Tenant shall defend with competent
counsel reasonably satisfactory to Landlord any claims made or legal actions
filed or threatened against Landlord with respect to the violation of any Law,
or the death, bodily injury, personal injury, property damage, or interference
with contractual or property rights suffered by any third party or resulting
from Tenant's use or occupancy of the Leased Premises, the Building or the
Outside Areas, or resulting from Tenant's activities in or about the Leased
Premises, the Building, the Outside Areas or the Property, and Tenant shall
indemnify and hold Landlord, Landlord's partners, principals, members,
employees, agents and contractors harmless from any loss liability, penalties,
or expense whatsoever (including any loss attributable to vacant space which
otherwise would have been leased, but for such activities) resulting therefrom,
except to the extent proximately caused by the gross negligence or willful
misconduct of Landlord.  This indemnity agreement shall survive the expiration
or sooner termination of this Lease.

ARTICLE 9
INSURANCE

9.1  Tenant's Insurance.  Tenant shall maintain insurance complying with all of
the following:

     (a) Tenant shall procure, pay for and keep in full force and effect, at all
times during the Lease Term, the following:

          (i) Commercial general liability insurance insuring Tenant against
liability for personal injury, bodily injury, death and damage to property
occurring within the Leased Premises, or resulting from Tenant's use or
occupancy of the Leased Premises, the Building, the Outside Areas or the
Property, or resulting from Tenant's activities in or about the Leased Premises
or the Property, with coverage in an amount equal to Tenant's Required Liability
Coverage (as set forth in Article 1), which insurance shall contain "Blanket
Contractual Liability" and "Broad Form Property Damage" amendments insuring
Tenant's performance of Tenant's obligations to indemnify Landlord as contained
in this Lease.

                                       23
<PAGE>

          (ii)  Fire and Property Damage insurance in so-called "fire and
extended coverage" insuring Tenant and Landlord against loss from physical
damage to the Leased Premises, Improvement Work, Tenant's personal property,
inventory, trade fixtures and any modifications, alterations or improvements
made by Tenant to or within the Leased Premises with coverage of not less than
100% of the full actual replacement cost thereof;

          (iii) Plate glass insurance, at actual replacement cost;

          (iv)  Boiler and Machinery Insurance, to limits which would restore
the Building in the event of damage or destruction due to mechanical failure;

          (v)   Product liability insurance (including, without limitation, if
food and/or beverages are distributed, sold and/or consumed within the Leased
Premises, to the extent obtainable, coverage for liability arising out of the
distribution, sale, use or consumption of food and/or beverages (including
alcoholic beverages, if applicable) at the Leased Premises for not less than
Tenant's Required Liability Coverage (as set forth in Article 1);

          (vi)  Workers' compensation insurance (statutory coverage) with
Employer's Liability in an amount not less than $1,000,000;

          (vii) Pollution Liability Insurance, with coverage in an amount equal
to Tenant's Required Liability Coverage naming Tenant, Landlord and Landlord's
lenders;

          (viii)Business Income/Extra Expense Insurance; and

          (ix)  With respect to making of alterations or the construction of
improvements (including the Improvement Work) or the like undertaken by Tenant,
course of destruction, commercial general liability, automobile liability, and
workers' compensation in an amount and with coverage reasonably satisfactory to
Landlord, naming Landlord as an additional insured.

     (b) Each policy of liability insurance required to be carried by Tenant
pursuant to this paragraph or actually carried by Tenant with respect to the
Leased Premises or the Property: (i) shall, except with respect to insurance
required by subparagraph (a)(vi) above, name Landlord, and such others as are
designated by Landlord, as additional insureds; (ii) shall be primary insurance
providing that the insurer shall be liable for the full amount of the loss, up
to and including the total amount of liability set forth in the declaration of
coverage, without the right of contribution from or prior payment by any other
insurance coverage of Landlord; (iii) shall be in a form reasonably satisfactory
to Landlord; (iv) shall be carried with companies reasonably acceptable to
Landlord with Best's ratings of at least A-and VII; (v) shall provide that such
policy shall not be subject to cancellation, lapse or change except after at
least thirty (30) days prior written notice to Landlord, and (vi) shall contain
a so-called "severability" or "cross liability" endorsement.  Each policy of
property insurance maintained by Tenant with respect to the Leased Premises or
the Property or any property therein (i) shall provide that such policy shall
not be subject to cancellation, lapse or change except after at least thirty
(30) days prior written notice to Landlord and (ii) shall contain a waiver
and/or a permission to waive by the insurer of any right of subrogation against
Landlord, its partners, principals, members, officers, employees, agents and
contractors, which might arise by reason of any payment under such policy or by
reason of any act or omission of Landlord, its partners, principals, members,
officers, employees, agents and contractors.

     (c) Prior to the time Tenant or any of its contractors enters the Leased
Premises, Tenant shall deliver to Landlord, with respect to each policy of
insurance required to be carried by Tenant pursuant to this Article, a
certificate of the insurer certifying in form reasonably satisfactory to
Landlord that a policy has been issued, premium paid, providing the coverage
required by this Paragraph and containing the provisions specified herein.  With
respect to each renewal or replacement of any such insurance, the requirements
of this Paragraph must be complied with not less than ten (10) days prior to the
expiration or cancellation of the policies being renewed or replaced.  If
Landlord's Lender, insurance broker, advisor or counsel reasonably determines at
any time that the amount of coverage set forth in Paragraph 9.1(a) for any
policy of insurance Tenant is required to carry pursuant to this Article 1s not
adequate, then Tenant shall increase the amount of coverage for such insurance
to such greater amount as Landlord's Lender, insurance broker, advisor or
counsel reasonably deems adequate, provided that such

                                       24
<PAGE>

increased coverage amounts are commonly required of tenants with similar
operations (including the use of Hazardous Materials) in similar type buildings
and areas.

9.2  Landlord's Insurance.  With respect to insurance maintained by Landlord:

          (a) Landlord shall maintain, as the minimum coverage required of it by
this Lease, fire and property damage insurance in so-called 'fire and extended
coverage" form insuring Landlord (and such others as Landlord may designate)
against loss from physical damage to the Building with coverage of not less than
one hundred percent (100%) of the full actual replacement cost thereof and
against loss of rents for a period of not less than six (6) months. Such fire
and property damage insurance, at Landlord's election but without any
requirements on Landlord's behalf to do so, (i) may be written in so-called "all
risk" form, excluding only those perils commonly excluded from such coverage by
Landlord's then property damage insurer; (ii) may provide coverage for physical
damage to the improvements so insured for up to the entire full actual
replacement cost thereof (iii) may be endorsed to cover loss or damage caused by
any additional perils against which Landlord may elect to insure, including
earthquake and/or flood; and/or (iv) may provide coverage for loss of rents for
a period of up to twelve months. Landlord shall not be required to cause such
insurance to cover any of Tenant's personal property, inventory, and trade
fixtures, or any modifications, alterations or improvements made or constructed
by Tenant to or within the Leased Premises. Landlord shall use commercially
reasonable efforts to obtain such insurance at competitive rates.

          (b) Landlord shall maintain commercial general liability insurance
insuring Landlord (and such others as are designated by Landlord) against
liability for personal injury, bodily injury, death, and damage to property
occurring in, on or about, or resulting from the use or occupancy of the
Property, or any portion thereof with combined single limit coverage of at least
Five Million Dollars ($5,000,000). Landlord may carry such greater coverage as
Landlord or Landlord's Lender, insurance broker, advisor or counsel may from
time to time determine is reasonably necessary for the adequate protection of
Landlord and the Property.

          (c) Landlord may maintain any other insurance which in the opinion of
its insurance broker, advisor or legal counsel is prudent in carry under the
given circumstances, provided such insurance is commonly carried by owners of
property similarly situated and operating under similar circumstances.

9.3  Mutual Waiver Of Subrogation.  Landlord hereby releases Tenant, and Tenant
hereby releases Landlord and its respective partners, principals, members,
officers, agents, employees and servants, from any and all liability for loss,
damage or injury to the property of the other in or about the Leased Premises or
the Property which is caused by or results from a peril or event or happening
which is covered by insurance actually carried and in force at the time of the
loss by the party sustaining such loss; provided, however, that such waiver
shall be effective only to the extent permitted by the insurance covering such
loss and to the extent such insurance is not prejudiced thereby.

ARTICLE 10
DAMAGE TO LEASED PREMISES

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<PAGE>

10.1 Landlord's Duty To Restore.  If the Leased Premises, the Building or the
Outside Area are damaged by any peril after the Effective Date of this Lease,
Landlord shall restore the same, as and when required by this paragraph, unless
this Lease is terminated by Landlord pursuant to Paragraph 10.3 or by Tenant
pursuant to Paragraph 10.4.  If this Lease is not so terminated, then upon the
issuance of all necessary governmental permits, Landlord shall commence and
diligently prosecute to completion the restoration of the Building Shell or the
Outside Area, as the case may be, to the extent then allowed by law, to
substantially the same condition in which it existed as of the date the Building
Shell was originally delivered to Tenant.  Landlord's obligation to restore
shall be limited to the improvements constructed by Landlord.  Landlord shall
have no obligation to restore the Improvement Work, or any other alterations,
modifications or improvements made by Tenant to the Leased Premises or any of
Tenant's personal property, inventory or trade fixtures.  Upon completion of the
restoration of the Building Shell by Landlord, Tenant shall forthwith at its
expense, replace or fully repair all of the Improvement Work and other
improvements constructed by Tenant to like or similar conditions as existed at
the time immediately prior to such damage or destruction.

10.2 Insurance Proceeds.  All insurance proceeds available from the fire and
property damage insurance carried by Landlord shall be paid to and become the
property of Landlord.  If this Lease is terminated pursuant to either Paragraph
10.3 or 10.4, all insurance proceeds available from insurance carried by Tenant
which cover loss of property that is Landlord's property shall be paid to and
become the property of Landlord, and the remainder of such proceeds shall be
paid to and become the property of Tenant.  In addition, all insurance proceeds
available from insurance carried by Tenant which covers Improvement Work
constructed with the Improvement Allowance, up to a maximum of the present value
of the unamortized Improvement Allowance (determined using an interest rate of
12%), shall be paid to and become the property of Landlord.  If this Lease is
not terminated pursuant to either Paragraph 10.3 or 10.4, all insurance proceeds
available from insurance carried by Tenant which cover loss to property that is
Landlord's property shall be paid to and become the property of Landlord, and
all proceeds available from such insurance which cover loss to property which
would only become the property of Landlord upon the termination of this Lease
shall be paid to and remain the property of Tenant.  The determination of
Landlord's property and Tenant's property shall be made pursuant to Paragraph
6.2.

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

          (a) The Building is damaged by any peril covered by valid and
collectible insurance actually carried by Landlord and in force at the time of
such damage or destruction (an "insured peril") to such an extent that the
estimated cost to restore the Building exceeds the lesser of (i) the insurance
proceeds available from insurance actually carried by Landlord due to all or any
portion of the insurance proceeds being otherwise applied by Landlord's lender,
or (ii) fifty percent of the then actual replacement cost thereof;

          (b) The Building is damaged by an uninsured peril, which peril
Landlord was not required to insure against pursuant to the provisions of
Article 9 of this Lease;

          (c) The Building is damaged by any peril and, because of the laws then
in force, the Building (i) cannot be restored at reasonable cost or (ii) if
restored, cannot be used for the same use being made thereof before such damage;

provided, however, that if Landlord elects to terminate the Lease pursuant to
this Paragraph 10.3, Tenant may elect by written notice to Landlord delivered
within thirty (30) days or receipt of Landlord's election, to pay the difference
between the costs to restore the Building and any available insurance proceeds
and upon such election and Tenant's deposit of such funds with Landlord (or
provide Landlord with a duly authorized and executed recourse promissory note
payable to Landlord in lieu of such funds), Landlord shall commence such
restoration.

                                       26
<PAGE>

10.4 Tenant's Right To Terminate.  If the Leased Premises, the Building or the
Outside Area are damaged by any peril and Landlord does not elect to terminate
this Lease or is not entitled to terminate this Lease pursuant to this Article,
then as soon as reasonably practicable, Landlord shall furnish Tenant with the
written opinion of Landlord's architect or construction consultant as to when
the restoration work required of Landlord may be complete.  Tenant shall have
the option to terminate this Lease in the event any of the following occurs,
which option may be exercised only by delivery to Landlord of a written notice
of election to terminate within thirty (30) days after Tenant receives from
Landlord the estimate of the time needed to complete such restoration:

          (a) If the time estimated to substantially complete the restoration
exceeds nine (9) months from and after the date the architect's or construction
consultant's written opinion is delivered; or

          (b) If the damage occurred within eighteen (18) months of the last day
of the Lease Term and the time estimated to substantially complete the
restoration exceeds one hundred eighty (180) days from and after the date such
restoration is commenced.

10.5 Tenant's Waiver.  Landlord and Tenant agree that the provisions of
Paragraph 10.4 above, captioned "Tenant's Right To Terminate", are intended to
supersede and replace the provisions contained in California Civil Code, Section
1932, Subdivision 2, and California Civil Code, Section 1934, and accordingly,
Tenant hereby waives the provisions of such Civil Code Sections and the
provisions of any successor Civil Code Sections or similar laws hereinafter
enacted.

10.6 Abatement Of Rent.  In the event of damage to the Leased Premises which
does not result in the termination of this Lease, the Base Monthly Rent (and any
Additional Rent) shall be temporarily abated from the date of such damage or
destruction through the period of restoration of the Building Shell in
proportion to the degree to which Tenant's use of the Leased Premises is
impaired by such damage.

ARTICLE 11
CONDEMNATION

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<PAGE>

11.1 Tenant's Right To Terminate. Except as otherwise provided in Paragraph 11.4
below regarding temporary takings, Tenant shall have the option to terminate
this Lease if; as a result of any taking, (i) all of the Leased Premises is
taken, or (ii) twenty-five percent (25%) or more of the Leased Premises is taken
and the part of the Leased Premises that remains cannot, within a reasonable
period of time, be made reasonably suitable for the continued operation of
Tenant's business. Tenant must exercise such option within a reasonable period
of time, to be effective on the later to occur of (i) the date that possession
of that portion of the Leased Premises that is condemned is taken by the
condemnor or (ii) the date Tenant vacated the Leased Premises.

11.2 Landlord's Right To Terminate. Except as otherwise provided in Paragraph
11.4 below regarding temporary takings, Landlord shall have the option to
terminate this Lease if, as a result of any taking, (i) all of the Leased
Premises is taken, (ii) twenty-five percent (25%) or more of the Leased Premises
is taken and the part of the Leased Premises that remains Cannot, within a
reasonable period of time, be made reasonably suitable for the continued
operation of Tenant's business, or (iii) because of the laws then in force, the
Leased Premises may not be used for the same use being made before such taking,
whether or not restored as required by Paragraph 11.3 below. Any such option to
terminate by Landlord must be exercised within a reasonable period of time, to
be effective as of the date possession is taken by the condemnor.

11.3 Restoration. If any part of the Leased Premises or the Building is taken
and this Lease is not terminated, then Landlord shall, to the extent not
prohibited by laws then in force, repair any damage occasioned thereby to the
remainder thereof to a condition reasonably suitable for Tenant's continued
operations and otherwise, to the extent practicable, in the manner and to the
extent provided in Paragraph 10.1.

11.4 Temporary Taking. Ifs portion of the Leased Premises is temporarily taken
for a period of six (6) months or less and such period does not extend beyond
the Lease Expiration Date, this Lease shall remain in effect. If any portion of
the Leased Premises is temporarily taken for a period which exceeds six (6)
months or which extends beyond the Lease Expiration Date, then the rights of
Landlord and Tenant shall be determined in accordance with Paragraphs 11.1 and
11.2 above.

11.5 Division Of Condemnation Award. Any award made for any taking of the
Property, the Building, or the Leased Premises, or any portion thereof, shall
belong to and be paid to Landlord, and Tenant hereby assigns to Landlord all of
its right, title and interest in any such award; provided, however, that Tenant
shall be entitled to receive any portion of the award that is made specifically
(i) for the taking of personal property, inventory or trade fixtures belonging
to Tenant, (ii) for the interruption of Tenant's business or its moving costs,
or (iii) for the value of any leasehold improvements installed and paid for by
Tenant. The rights of Landlord and Tenant regarding any condemnation shall be
determined as provided in this Article, and each party hereby waives the
provisions of Section 1265.130 of the California Code of Civil Procedure, and
the provisions of any similar law hereinafter enacted, allowing either party to
petition the Supreme Court to terminate this Lease and/or otherwise allocate
condemnation awards between Landlord and Tenant in the event of a taking of the
Leased Premises.

11.6 Abatement Of Rent. In the event of a taking of the Leased Premises which
does not result in a termination of this Lease (other than a temporary taking),
then, as of the date possession is taken by the condemning authority, the Base
Monthly Rent shall be reduced in the same proportion that the area of that part
of the Leased Premises so taken (less any addition to the area of the Leased
Premises by reason of any reconstruction) bears to the area of the Leased
Premises immediately prior to such taking.

11.7 Taking Defined. The term "taking" or "taken" as used in this Article 11
shall mean any transfer or conveyance of all or any portion of the Property to a
public or quasi-public agency or other entity having the power of eminent domain
pursuant to or as a result of the exercise of such power by such an agency,
including any inverse condemnation and/or any sale or transfer by Landlord of
all or any portion of the Property to such an agency under threat of
condemnation or the exercise of such power.

ARTICLE 12
DEFAULT AND REMEDIES

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<PAGE>

12.1 Events Of Tenant's Default.  Tenant shall be in default of its obligations
under this Lease if any of the following events occur:

  (a) Tenant shall have failed to pay Base Monthly Rent or any Additional Rent
when due; provided, however, that once but only once in any twelve (12) month
period during the Lease Term, Tenant shall be entitled to one written notice of
non-receipt of Base Monthly Rent or Additional Rent from Landlord, and Tenant
shall not be in default for such delinquency if such installment of Base Monthly
Rent or Additional Rent is received by Landlord within five (5) business days
after Tenant's receipt of such notice from Landlord; or

  (b) Tenant shall have done or permitted to be done any act, use or thing in
its use, occupancy or possession of the Leased Premises or the Building or the
Outside Areas which is prohibited by the terms of this Lease or Tenant shall
have failed to perform any term, covenant or condition of this Lease (except
those requiring the payment of Base Monthly Rent or Additional Rent, which
failures shall be governed by subparagraph (a) above) within thirty (30) days
after written notice from Landlord to Tenant specifying the nature of such
failure and requesting Tenant to perform same or within such longer period as is
reasonably required in the event such default is curable but not within such
thirty (30) day period, provided such cure is promptly commenced within such
thirty (30) day period and is thereafter diligently prosecuted to completion;
or; or

  (c) Tenant shall have sublet the Leased Premises or assigned or encumbered its
interest in this Lease in violation of the provisions contained in Article 7,
whether voluntarily or by operation of law; or

  (d) Tenant shall have abandoned the Leased Premises and failed to maintain the
Leased Premises in accordance with Paragraph 4.1 hereof; or

  (e) Tenant or any Guarantor of this Lease shall have permitted or suffered the
Sequestration or attachment of, or execution on, or the appointment of a
custodian or receiver with respect to, all or any substantial part of the
property or assets of Tenant (or such Guarantor) or any property or asset
essential to the conduct of Tenant's (or such Guarantor's) business, and Tenant
(or such Guarantor) shall have failed to obtain a return or release of the same
within sixty (60) days thereafter, or prior to sale pursuant to such
sequestration, attachment or levy, whichever is earlier; or

  (f) Tenant or any Guarantor of this Lease shall have made a general assignment
of all or a substantial part of its assets for the benefit of its creditors; or

  (g) Tenant or any Guarantor of this Lease shall have allowed (or sought) to
have entered against it a decree or order which: (i) grants or constitutes an
order for relief, appointment of a trustee, or condemnation or a reorganization
plan under the bankruptcy laws of the United States; (ii) approves as properly
filed a petition seeking liquidation or reorganization under said bankruptcy
laws or any other debtor's relief law or similar statute of the United States or
any state thereof, or (iii) otherwise directs the winding up or liquidation of
Tenant; provided, however, if any decree or order was entered without Tenant's
consent or over Tenant's objection, Landlord may not terminate this Lease
pursuant to this Subparagraph if such decree or order is rescinded or reversed
within sixty (60) days after its original entry; or

  (h) Tenant or any Guarantor of this Lease shall have availed itself of the
protection of any debtor's relief law, moratorium law or other similar law which
does not require the prior entry of a decree or order.

12.2 Landlord's Remedies. In the event of any default by Tenant, and without
limiting Landlord's right to indemnification as provided in Article 8.2,
Landlord shall have the following remedies, in addition to all other rights and
remedies provided by law or otherwise provided in this Lease, to which Landlord
may resort cumulatively, or in the alternative:

  (a) Landlord may, at Landlord's election, keep this Lease in effect and
enforce, by an action at law or in equity, all of its rights and remedies under
this Lease including, without limitation, (i) the right to recover the rent and
other sums as they become due by appropriate legal action, (ii) the right to
make payments required by Tenant, or perform Tenant's obligations and be
reimbursed by Tenant for the cost thereof with interest at the then maximum

                                       29
<PAGE>

rate of interest not prohibited by law from the date the sum is paid by Landlord
until Landlord is reimbursed by Tenant, and (iii) the remedies of injunctive
relief and specific performance to prevent Tenant from violating the terms of
this Lease and/or to compel Tenant to perform its obligations under this Lease,
as the case may be.

  (b) Landlord may, at Landlord's election, terminate this Lease by giving
Tenant written notice of termination, in which event this Lease shall terminate
on the date Set forth for termination in such notice, in which event Tenant
shall immediately surrender the Leased Premises to Landlord, and if Tenant fails
to do so, Landlord may, without prejudice to any other remedy which it may have
for possession or arrearages in rent, enter upon and take possession of the
Leased Premises and expel or remove Tenant and any other person who may be
occupying the Leased Premises or any part thereof, without being liable for
prosecution or any claim or damages therefor. Any termination under this
subparagraph shall not relieve Tenant from its obligation to pay to Landlord all
Base Monthly Rent and Additional Rent then or thereafter due, or any other sums
due or thereafter accruing to Landlord, or from any claim against Tenant for
damages previously accrued or then or thereafter accruing. In no event shall any
one or more of the following actions by Landlord, in the absence of a written
election by Landlord to terminate this Lease constitute a termination of this
Lease:

      (i)   Appointment of a receiver or keeper in order to protect Landlord's
interest hereunder;

      (ii)  Consent to any subletting of the Leased Premises or assignment of
this Lease by Tenant, whether pursuant to the provisions hereof or otherwise; or

      (iii) Any action taken by Landlord or its partners, principals, members,
officers, agents, employees, or servants, which is intended to mitigate the
adverse effects of any breach of this Lease by Tenant, including, without
limitation, any action taken to maintain and preserve the Leased Premises on any
action taken to re let the Leased Premises or any portion thereof for the
account at Tenant and in the name of Tenant.

  (c) In the event Tenant breaches this Lease and abandons the Leased Premises,
Landlord may terminate this Lease, but this Lease shall not terminate unless
Landlord gives Tenant written notice of termination. If Landlord does not
terminate this Lease by giving written notice of termination, Landlord may
enforce all its rights and remedies under this Lease, including the right and
remedies provided by 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 right to sublet or assign, subject only to reasonable
limitations"), as in effect on the Effective Date of this Lease.

  (d) In the event Landlord terminates this Lease, Landlord shall be entitled,
at Landlord's election, to the rights and remedies provided in California Civil
Code Section 1951.2, as in effect on the Effective Date of this Lease. For
purposes of computing damages pursuant to Section 1951.2, an interest rate equal
to the maximum rate of interest then not prohibited by law shall be used where
permitted. Such damages shall include, without limitation:

      (i)   The worth at the time of the award of the unpaid rent which had been
earned at the time of termination;

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

      (iii) Any other amount necessary to compensate Landlord for all detriment
proximately caused by Tenant's failure to perform Tenant's obligations under
this Lease, or which in the ordinary course of things would be likely to result
therefrom, including without limitation, the following.. (i) expenses for
cleaning, repairing or restoring the Leased Premises, (ii) expenses for
altering, remodeling or otherwise improving the Leased Premises for the purpose
of reletting, including removal of existing leasehold improvements and/or
installation of additional leasehold improvements (regardless of how the same is
funded, including reduction of rent, a direct payment or allowance to a new
tenant, or otherwise), (iii) broker's fees allocable to the remainder of the
term of this

                                       30
<PAGE>

Lease, advertising costs and other expenses of reletting the Leased Premises;
(iv) costs of carrying and maintaining the Leased Premises, such as taxes,
insurance premiums, utility charges and security precautions, (v) expenses
incurred in removing, disposing of and/or storing any of Tenant's personal
property, inventory or trade fixtures remaining therein; (vi) reasonable
attorney's fees, expert witness fees, court costs and other reasonable expenses
incurred by Landlord (but not limited to taxable costs) in retaking possession
of the Leased Premises, establishing damages hereunder, and releasing the Leased
Premises; and (vii) any other expenses, costs or damages otherwise incurred or
suffered as a result of Tenant's default.

12.3 Landlord's Default And Tenant's Remedies. In the event Landlord fails to
perform its obligations under this Lease, Landlord shall nevertheless not be in
default under the terms of this Lease until such time as Tenant shall have first
given Landlord written notice specifying the nature of such failure to perform
its obligations, and then only after Landlord shall have had thirty (30) days
following its receipt of such notice within which to perform such obligations;
provided that, if longer than thirty (30) days is reasonably required in order
to perform such obligations, Landlord shall have such longer period. In the
event of Landlord's default as above set forth, then, and only then, Tenant may
then proceed in equity or at law to compel Landlord to perform its obligations
and/or to recover damages proximately caused by such failure to perform (except
as and to the extent Tenant has waived its right to damages as provided in this
Lease).

12.4 Limitation or Tenant's Recourse. If Landlord is a corporation, trust,
partnership, joint venture, limited liability company, unincorporated
association, or other form of business entity, Tenant agrees that (i) the
obligations of Landlord under this Lease shall not constitute personal
obligations of the officers, directors, trustees, partners, joint venturers,
members, owners, stockholders, or other principals of such business entity, and
(ii) Tenant shall have recourse only to the property of such corporation, trust,
partnership, joint venture, limited liability company, unincorporated
association, or other form of business entity for the satisfaction of such
obligations and not against the assets of such officers, directors, trustees,
partners, joint venturers, members, owners, stockholders or principals.
Additionally, if Landlord is a partnership or limited liability company, then
Tenant covenants and agrees:

  (a) No partner or member of Landlord shall be sued or named as a party in any
Suit or action brought by Tenant with respect to any alleged breach of this
Lease (except to the extent necessary to secure jurisdiction over the
partnership and then only for that sole purpose);

  (b) No service of process shall be made against any partner or member of
Landlord except for the sole purpose of securing jurisdiction over the
partnership; and

  (c) No writ of execution will ever be levied against the assets of any partner
or member of Landlord other than to the extent of his or her interest in the
assets of the partnership or limited liability company constituting Landlord.

Tenant further agrees that each of the foregoing covenants and agreements shall
be enforceable by Landlord and by any partner or member of Landlord and shall be
applicable to any actual or alleged misrepresentation or nondisclosure made
regarding this Lease or the Leased Premises or any actual or alleged failure,
default or breach of any covenant or agreement either expressly or implicitly
contained in this Lease or imposed by statute or at common law.

12.5 Tenant's Waiver. Landlord and Tenant agree that the provisions of Paragraph
12.3 above are intended to supersede and replace the provisions of California
Civil Code Sections 1932(1), 1941 and 1942, and accordingly, Tenant hereby
waives the provisions of California Civil Code Sections 1932(1), 1941 and 1942
and/or any similar or successor law regarding Tenant's right to terminate this
Lease or to make repairs and deduct the expenses of such repairs from the rent
due under this Lease.

ARTICLE 13
GENERAL PROVISIONS

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<PAGE>

13.1 Taxes On Tenant's Property. Tenant shall pay before delinquency any and all
taxes, assessments, license fees, use fees, permit fees and public charges of
whatever nature or description levied, assessed or imposed against Tenant or
Landlord by a governmental agency arising Out of, caused by reason of or based
upon Tenant's estate in this Lease, Tenant's ownership of property, improvements
made by Tenant to the Leased Premises or the Outside Areas, improvements made by
Landlord for Tenant's use within the Leased Premises or the Outside Areas,
Tenant's use (or estimated use) of public facilities or services or Tenant's
consumption (or estimated consumption) of public utilities, energy, water or
other resources (collectively, "Tenant's Interest"). Upon demand by Landlord,
Tenant shall famish Landlord with satisfactory evidence of these payments. If
any such taxes, assessments, fees or public charges are levied against Landlord,
Landlord's property, the Building or the Property, or if the assessed value of
the Building or the Property is increased by the inclusion therein of a value
placed upon Tenant's Interest, regardless of the validity thereof Landlord shall
have the right to require Tenant to pay such taxes, and if not paid and
satisfactory evidence of payment delivered to Landlord at least ten days prior
to delinquency, then Landlord shall have the right to pay such taxes on Tenant's
behalf and to invoice Tenant for the same. Tenant shall, within the earlier to
occur of (a) thirty (30) days of the date it receives an invoice from Landlord
setting forth the amount of such taxes, assessments, fees, or public charge so
levied, or (b) the due date of such invoice, pay to Landlord, as Additional
Rent, the amount set forth in such invoice. Failure by Tenant to pay the amount
so invoiced within such time period shall be conclusively deemed a default by
Tenant under this Lease. Tenant shall have the right to bring Suit in any court
of competent jurisdiction to recover from the taxing authority the amount of any
such taxes, assessments, fees or public charges so paid.

13.2 Holding Over. This Lease shall terminate without further notice on the
Lease Expiration Date (as set forth in Article 1). Any holding over by Tenant
after expiration of the Lease Term shall neither constitute a renewal nor
extension of this Lease nor give Tenant any rights in or to the Leased Premises
except as expressly provided in this Paragraph. Any such holding over to which
Landlord has consented shall be construed to be a tenancy from month to month,
on the same terms and conditions herein specified insofar as applicable, except
that the Base Monthly Rent shall be increased to an amount equal to one hundred
fifty percent (150%) of the Base Monthly Rent payable during the last full month
immediately preceding such holding over Tenant acknowledges that if Tenant holds
over without Landlord's consent, such holding over may compromise or otherwise
affect Landlord's ability to enter into new leases with prospective tenants
regarding the Leased Premises. Therefore, if Tenant fails to surrender the
Leased Premises upon the expiration or termination of this Lease, in addition to
any other liabilities to Landlord accruing therefrom, Tenant shall protect,
defend, indemnify and hold Landlord harmless from and against all claims
resulting from such failure, including, without limiting the foregoing, any
claims made by any succeeding tenant founded upon such failure to surrender, and
any losses suffered by Landlord, including lost profits, resulting from such
failure to surrender.

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13.3 Subordination To Mortgages. This Lease is subject to and subordinate to all
ground leases, mortgages and deeds of trust which affect the Building or the
Property and which are of public record as of the Effective Date of this Lease,
and to all renewals, modifications, consolidations, replacements and extensions
thereof. However, if the lessor under any such ground lease or any lender
holding any such mortgage or deed of trust shall advise Landlord that it desires
or requires this Lease to be made prior and superior thereto, then, upon written
request of Landlord to Tenant, Tenant shall promptly execute, acknowledge and
deliver any and all customary or reasonable documents or instruments which
Landlord and such lessor or lender deems necessary or desirable to make this
Lease prior thereto Tenant hereby consents to Landlord's ground leasing the land
underlying the Building or the Property and/or encumbering the Building or the
Property as security for future loans on such terms as Landlord shall desire,
all of which future ground leases, mortgages or deeds of trust shall be subject
to and subordinate to this Lease. However, if any lessor under any such future
ground lease or any lender holding such future mortgage or deed of trust shall
desire or require that this Lease be made subject to and subordinate to such
future ground lease, mortgage or deed of trust, then Tenant agrees, within ten
days after Landlord's written request therefor, to execute, acknowledge and
deliver to Landlord any and all documents or instruments requested by Landlord
or by such lessor or lender as may be necessary or proper to assure the
subordination of this Lease to such future ground lease, mortgage or deed of
trust, but only if such lessor or lender agrees in writing to recognize Tenant's
rights under this Lease and agrees not to disturb Tenant's quiet possession of
the Leased Premises so long as Tenant is not in default under this Lease. If
Landlord assigns the Lease as security for a loan, Tenant agrees to execute such
documents as are reasonably requested by the lender and to provide reasonable
provisions in the Lease protecting such lender's security interest which are
customarily required by institutional lenders making loans secured by a deed of
trust. Landlord agrees to obtain a standard subordination, non-disturbance and
attornment agreement from the existing lender holding the deed of trust
encumbering the Property.

13.4 Tenant's Attornment Upon Foreclosure. Tenant shall, upon request, attorn
(i) to any purchaser of the Building or the Property at any foreclosure sale or
private sale conducted pursuant to any security instruments encumbering the
Building or the Property, (ii) to any grantee or transferee designated in any
deed given in lieu of foreclosure of any security interest encumbering the
Building or the Property, or (iii) to the lessor under an underlying ground
lease of the land underlying the Building or the Property, should such ground
lease be terminated; provided that such purchaser, grantee or lessor agrees in
writing to recognize Tenant's rights under this Lease and agrees not to disturb
Tenant's quiet possession of the Leased Premises so long as Tenant is not in
default hereunder.

13.5 Mortgagee Protection. In the event of any default on the part of Landlord,
Tenant will give notice by registered mail to any Lender or lessor under any
underlying ground lease who shall have requested, in writing, to Tenant that it
be provided with such notice, and Tenant shall offer such Lender or lessor a
reasonable opportunity to cure the default, including time to obtain possession
of the Leased Premises by power of sale or judicial foreclosure or other
appropriate legal proceedings if reasonably necessary to effect a cure.

13.6 Estoppel Certificate. Tenant will, following any request by Landlord,
promptly execute and deliver to Landlord an estoppel certificate substantially
in form attached as Exhibit C, (i) certifying that this Lease is unmodified and
in full force and effect, or, if modified, stating the nature of such
modification and certifying that this Lease, as so modified, is in full force
and effect, (ii) stating the date to which the rent and other charges are paid
in advance, if any, (iii) acknowledging that there are not, to Tenant's
knowledge, any uncured defaults on the part of Landlord hereunder, or specifying
such defaults if any are claimed, and (iv) certifying such other information
about this Lease as may be reasonably requested by Landlord, its Lender or
prospective lenders, investors or purchasers of the Building or the Property.
Tenant's failure to execute and deliver such estoppel certificate within ten
(10) business days after Landlord's request therefor shall be a material default
by Tenant under this Lease, and Landlord shall have all of the rights and
remedies available to Landlord as Landlord would otherwise have in the case of
any other material default by Tenant, including the right to terminate this
Lease and sue for damages proximately caused thereby, it being agreed and
understood by Tenant that Tenant's failure to so deliver such estoppel
certificate in a timely manner could result in Landlord being unable to perform
committed obligations to other third parties which were made by Landlord in
reliance upon this covenant of Tenant. Landlord and Tenant intend that any
statement delivered pursuant to this paragraph may be relied upon by any Lender
or purchaser or prospective Lender or purchaser of the Building, the Property,
or any interest in them.

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<PAGE>

13.7 Tenant's Financial Information. Tenant shall, within ten (10) business days
after Landlord's request therefor, deliver to Landlord a copy of Tenant's (and
any guarantor's) current financial Statements (including a balance sheet, income
statement and statement of cash flow, all prepared in accordance with generally
accepted accounting principles) and any such other information reasonably
requested by Landlord regarding Tenant's financial condition. Landlord shall be
entitled to disclose such financial statements or other information to its
Lender, to any present or prospective principal of or investor in Landlord, or
to any prospective Lender or purchaser of the Building, the Property, or any
portion thereof or interest therein. Any such financial statement or other
information which is marked "confidential" or "company secrets" (or is otherwise
similarly marked by Tenant) shall be confidential and shall not be disclosed by
Landlord to any third party except as specifically provided in this paragraph,
unless the same becomes a part of the public domain without the fault of
Landlord.

13.8 Transfer By Landlord. Landlord and its successors in interest shall have
the right to transfer their interest in the Building, the Property, or any
portion thereof at any time and to any person or entity. In the event of any
such transfer, the Landlord originally named herein (and in the case of any
subsequent transfer, the transferor), from the date of such transfer, (i) shall
be automatically relieved, without any further act by any person or entity, of
all liability for the performance of the obligations of the Landlord hereunder
which may accrue after the date of such transfer and (ii) shall be relieved of
all liability for the performance of the obligations of the Landlord hereunder
which have accrued before the date of transfer if its transferee agrees to
assume and perform all such prior obligations of the Landlord hereunder. Tenant
shall attorn to any such transferee. After the date of any such transfer, the
term "Landlord" as used herein shall mean the transferee of such interest in the
Building or the Property.

13.9 Force Majeure. The obligations of each of the parties under this Lease
(other than the obligations to pay money) shall be temporarily excused if such
party is prevented or delayed in performing such obligations by reason of any
strikes, lockouts or labor disputes; government restrictions, regulations,
controls, action or inaction; civil commotion; or extraordinary weather, fire or
other acts of God.

13.10 Notices. Any notice required or permitted to be given under this Lease
shall be in writing and (i) personally delivered, (ii) sent by United States
mail, registered or certified mail, postage prepaid, return receipt requested,
(iii) sent by Federal Express or similar nationally recognized overnight courier
service, or (iv) transmitted by facsimile with a hard copy sent within one (1)
business day by any of the foregoing means, and in all cases addressed as
follows, and such notice shall be deemed to have been given upon the date of
actual receipt or delivery (or refusal to accept delivery) at the address
specified below (or such other addresses as may be specified by notice in the
foregoing manner) as indicated on the return receipt or air bill:

     If to Landlord:            Corporate Technology Centre Associates LLC
                                c/o Menlo Equities LLC
                                525 University Avenue
                                Suite 100
                                Palo Alto, California 94301
                                Attention: Henry Bullock/Richard Holmstrom

     with a copy to:            Cooley Godward LLP
                                One Maritime Plaza
                                20th Floor
                                San Francisco, California 94111
                                Attention: Paul Churchill

     If to Tenant:              Digital Island, Inc.
                                45 Fremont Street, Suite 1200
                                San Francisco, California 94105
                                Attention: Director, Real Estate

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<PAGE>

     with a copy to:            Brobeck Phleger & Harrison LLP
                                Spear Street Tower
                                One Market
                                San Francisco, California 94105
                                Attention: Doug Van Gessel

Any notice given in accordance with the foregoing shall be deemed received upon
actual receipt or refusal to accept delivery.

13.11 Attorneys' Fees. In the event any party shall bring any action,
arbitration proceeding or legal proceeding alleging a breach of any provision of
this Lease, to recover rent, to terminate this Lease, or to enforce, protect,
determine or establish any term or covenant of this Lease or rights or duties
hereunder of either party, the prevailing party shall be entitled to recover
from the non-prevailing party as a part of such action or proceeding, or in a
separate action for that purpose brought within one year from the determination
of such proceeding, reasonable attorneys' fees, expert witness fees, court Costs
and other reasonable expenses incurred by the prevailing party.

13.12 Definitions. Any term that is given a special meaning by any provision in
this Lease shall, unless otherwise specifically stated, have such meaning
wherever used in this Lease or in any Addenda or amendment hereto. in addition
to the terms defined in Article 1, the following terms shall have the following
meanings:

     (a) Real Property Taxes. The term "Real Property Tax" or "Real Property
Taxes" shall each mean Tenant's Proportionate Share of(i) all taxes,
assessments, levies and other charges of any kind or nature whatsoever, general
and special, foreseen and unforeseen (including all instruments of principal and
interest required to pay any general or special assessments for public -
improvements and any increases resulting from reassessments caused by any change
in ownership or new Construction), now or hereafter imposed by any governmental-
or quasi-governmental authority or special district having the direct or
indirect power to tax or levy assessments, which are levied or assessed for
whatever reason against the Property or any portion thereof, or Landlord's
interest herein, or the fixtures, equipment and other property of Landlord that
is an integral part of the Property and located thereon, or Landlord's business
of owning, leasing or managing the Property or the gross receipts, income or
rentals from the Property, (ii) all charges, levies or fees imposed by any
governmental authority against Landlord by reason of or based upon the use of or
number of parking spaces within the Property, the amount of public services or
public utilities used or consumed (e.g. water, gas, electricity, sewage or waste
water disposal) at the Property, the number of person employed by tenants of the
Property, the size (whether measured in area, volume, number of tenants or
whatever) or the value of the Property, or the type of use or uses conducted
within the Property, and all costs and fees (including attorneys' fees)
reasonably incurred by Landlord in contesting any Real Property Tax and in
negotiating with public authorities as to any Real Property Tax, which amount
shall not exceed the Real Property Tax savings realized in any given year.
Notwithstanding the foregoing, Tenant shall be responsible for 100% of any
increases resulting from Real Property Tax reassessments due the Improvement
Work. If at any time during the Lease Term, the taxation or assessment of the
Property prevailing as of the Effective Date of this Lease shall be altered so
that in lieu of or in addition to any the Real Property Tax described above
there shall be levied, awarded or imposed (whether by reason of a change in the
method of taxation or assessment, creation of a new tax or charge, or any other
cause) an alternate, substitute, or additional use or charge (i) on the value,
size, use or occupancy of the Property or Landlord's interest therein or (ii) on
or measured by the gross receipts, income or rentals from the Property, or on
Landlord's business of owning, leasing or managing the Property or (iii)
computed in any manner with respect to the operation of the Property, then any
such tax or charge, however designated, shall be included within the meaning of
the terms "Real Property Tax" or "Real Property Taxes" for purposes of this
Lease. If any Real Property Tax is partly based upon property or rents unrelated
to the Property, then only that part of such Real Property Tax that is fairly
allocable to the Property shall be included within the meaning of the terms
"Real Property Tax" or "Real Property Taxes." Notwithstanding the foregoing, the
terms "Real Property Tax" or "Real Property Taxes" shall not include estate,
inheritance, transfer, gift or franchise taxes of Landlord or the federal or
state income tax imposed on Landlord's income from all sources.

     (b) Landlord's Insurance Costs. The term "Landlord's Insurance Costs" shall
mean Tenant's Proportionate Share of the costs to Landlord to carry and maintain
the policies of fire and property damage insurance for the Building and the
Property and general liability and any other insurance required or permitted to
be carried by Landlord pursuant to Article 9, together with any deductible
amounts paid by Landlord upon the occurrence of any

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<PAGE>

insured casualty or loss. If any of Landlord's Insurance Costs are partly based
upon property unrelated to the Property (e.g., another portion of the Project),
then only that part of Landlord's Insurance Costs that is fairly allocable to
the Property shall be included in Landlord's Insurance Costs hereunder.

     (c) Property Maintenance Costs. The term "Property Maintenance Costs" shall
mean Tenant's Proportionate Share of all Costs and expenses (except Landlord's
Insurance Costs and Real Property Taxes) paid or incurred by Landlord in
protecting, operating, maintaining, repairing and preserving the Property and
all part thereof, including without limitation, (i) market rate professional
management fees equal to 3% of gross revenues from the Property, (ii) the
amortizing portion of any costs incurred by Landlord in the making of any
modifications, alterations or improvements required by any governmental
authority as set forth in Article 6, which are 50 amortized during the Lease
Term, and (iii) such other costs as may be paid or incurred with respect to
operating, maintaining, and preserving the Property, such as repairing and
resurfacing the exterior surfaces of the Building (including roofs), repairing
and resurfacing paved areas, repairing and replacing structural parts of the
Building, and repairing and replacing, when necessary, electrical-, plumbing,
heating, ventilating and air conditioning systems serving the Building. If any
of the Property Maintenance Costs are partly based upon property unrelated to
the Property (e.g., another portion of the Project), then only that part of
Property Maintenance Costs that is fairly allocable to the Property shall be
included in the definition of Property Maintenance Costs hereunder.

     (d) Property Operating Expenses. The term "Property Operating Expenses"
shall mean and include all Real Property Taxes, plus all Landlord's Insurance
Costs, plus all Property Maintenance Costs. Notwithstanding the foregoing,
"Property Operating Expenses" shall not include the following (except to the
extent any of the following costs are incurred by Landlord as a result of
Tenant's failure to perform its obligations hereunder or are otherwise caused by
Tenant): (i) Landlord's debt service on any financing related to the Building or
the Property or rental under any ground lease or other underlying lease; (ii)
franchise, excess -profits or revenue tax, excise tax or inheritance tax, gift
tax, gains tax, franchise tax, corporation tax, capital levy transfer, estate,
succession, income taxes payable by Landlord; (iii) salaries, benefits and
related costs of Landlord's off-site administrative personnel (other than the
management fee); (iv) costs of utility usage for utility services separately
metered in the name of Tenant; (v) the cost of any items for which Landlord is
actually reimbursed by insurance proceeds or condemnation awards; (vi)
depreciation; (vii) real estate brokerage commissions, moving expenses, design
or engineering fees, rental concessions or credits, allowances, lease
assumptions, lease cancellation fees or other costs in each case incurred in
Landlord's procuring other tenants of the Building or Property; (viii)
advertising, promotional and marketing expenses; (ix) expenses for repairs or
maintenance (to the extent Landlord is fully reimbursed thereunder) which are
covered by warranties, guarantees or service contracts; (x) costs incurred by
Landlord by reason of the willful misconduct or gross negligence of Landlord,
(xi) costs of removal of Hazardous Materials placed on the Leased Premises by
Landlord or its agents or employees, (xii) repairs, alterations, additions,
improvements or replacements made to rectify or correct any defect in the
design, materials or workmanship of the Building Shell or Outside Areas which
existed as of the Effective Date of this Lease; (xiii) repairs, alterations,
additions, improvements or replacements to the Building Shell or Outside Areas
to comply with any Laws in effect as of the Effective Date of this Lease (where
compliance was required at such time); (xiv) Landlord's general administrative
expenses not related to the Property (other than the management fees set forth
above); (xv) costs (including permit, license and inspection fees) incurred in
renovating or otherwise improving, decorating, painting or altering space for
other tenants or other occupants or vacant space in the Building reserved for
other tenants (other than any common areas of the Building); (xvi) interest,
penalties or other costs arising Out of Landlord's failure to make timely
payment of its obligations, unless caused by Tenant's failure to meet its
obligations under this Lease; or (xvii) costs of removal of Hazardous Materials
from any area of the Property outside the Leased Premises unless (a) the
Hazardous Materials originated from the Leased Premises or (b) the Hazardous
Materials came to be located on the Property due to the negligence or willful
misconduct of Tenant or Tenant's agents, employees, contractors, or invitees.

     (e) Law. The term "Law" shall mean any judicial decisions and any statute,
constitution, ordinance, resolution, regulation, rule, administrative order, or
other requirements of any municipal, county, state, federal, or other
governmental agency or authority having jurisdiction over the parties to this
Lease, the Leased Premises, the Building or the Property, or any of them, in
effect either at the Effective Date of this Lease or at any time during the
Lease Term, including, without limitation, any regulation, order, or policy of
any quasi-official entity or body (e.g. a board of fire examiners or a public
utility or special district).

                                       36
<PAGE>

     (f) Lender. The term "Lender" shall mean the holder of any promissory note
or other evidence of indebtedness secured by the Property or any portion
thereof.

     (g) Private Restrictions. The term "Private Restrictions" shall mean (as
they may exist from time to time) any and all covenants, conditions and
restrictions, private agreements, easements, and any other recorded documents or
instruments affecting the use of the Property, the Building, the Leased
Premises, or the Outside Areas.

     (h) Rent. The term "Rent" shall mean collectively Base Monthly Rent and all
Additional Rent.

13.13  General Waivers.  One party's consent to or approval of any act by the
other party requiring the first party's consent or approval shall not be deemed
to waive or render unnecessary the first party's consent to or approval of any
subsequent similar act by the other party.  No waiver of any provision hereof,
or any waiver of any breach of any provision hereof, shall be effective unless
in writing and signed by the waiving party.  The receipt by Landlord of any rent
or payment with or without knowledge of the breach of any other provision hereof
shall not be deemed a waiver of any such breach.  No waiver of any provision of
this Lease shall be deemed a continuing waiver unless such waiver specifically
states so in writing and is signed by both Landlord and Tenant.  No delay or
omission in the exercise of any right or remedy accruing to either party upon
any breach by the other party under this Lease shall impair such right or remedy
or be construed as a waiver of any such breach theretofore or thereafter
occurring.  The waiver by either party of any breach of any provision of this
Lease shall not be deemed to be a waiver of any subsequent breach of the same or
any other provisions herein contained.

13.14  Miscellaneous.  Should any provisions of this Lease prove to be invalid
or illegal, such invalidity or illegality shall in no way affect, impair or
invalidate any other provisions hereof, and such remaining provisions shall
remain in full force and effect.  Time is of the essence with respect to the
performance of every provision of this Lease in which time of performance is a
factor.  Any copy of this Lease which is executed by the parties shall be deemed
an original for all purposes.  This Lease shall, subject to the provisions
regarding assignment, apply to and bind the respective heirs, successors,
executors, administrators and assigns of Landlord and Tenant.  The term "party"
shall mean Landlord or Tenant as the context implies.  If Tenant consists of
more than one person or entity, then all members of Tenant shall be jointly and
severally liable hereunder.  This Lease shall be construed and enforced in
accordance with the Laws of the State in which the Leased Premises are located.
The captions in this Lease are for convenience only and shall not be construed
in the construction or interpretation of any provision hereof.  When the context
of this Lease requires, the neuter gender includes the masculine, the feminine,
a partnership, corporation, limited liability company, joint venture, or other
form of business entity, and the singular includes the plural.  The terms
"must," "shall," "will," and "agree" are mandatory.  The term "may" is
permissive.  When a party is required to do something by this Lease, it shall do
so at its sole cost and expense without right of reimbursement from the other
party unless specific provision is made therefor.  Where Landlord's consent is
required hereunder, the consent of any Lender may also be required (as
determined by Landlord in good faith).  Landlord and Tenant shall both be deemed
to have drafted this Lease, and the rule of construction that a document is to
be construed against the drafting party shall not be employed in the
construction or interpretation of this Lease.  Where Tenant is obligated not to
perform any act or is not permitted to perform any act, Tenant is also obligated
to restrain any others reasonably within its control, including agents,
invitees, contractors, subcontractors and employees, from performing such act.
Landlord shall not become or be deemed a partner or a joint Ventura with Tenant
by reason of any of the provisions of this Lease.

ARTICLE 14
CORPORATE AUTHORITY
BROKERS AND ENTIRE AGREEMENT

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<PAGE>

14.1 Corporate Authority.  If Tenant is a corporation, each individual executing
this Lease on behalf of such corporation represents and warrants that Tenant is
validly formed and duly authorized and existing, that Tenant is qualified to do
business in the State in which the Leased Premises are located, that Tenant has
the full right and legal authority to enter into this Lease, and that he or she
is duly authorized to execute and deliver this Lease on behalf of Tenant in
accordance with its terms.  Tenant shall, within thirty days after execution of
this Lease, deliver to Landlord a certified copy of the resolution of its board
of directors authorizing or ratifying the execution of this Lease and if Tenant
fails to do so, Landlord at its sole election may elect to terminate this Lease.

14.2 Brokerage Commissions.  Tenant and Landlord each represent, warrant and
agree that they have not had any dealings with any real estate broker(s),
leasing agent(s), finder(s) or salesmen, other than the Brokers (as named in
Article 1) with respect to the lease by it of the Leased Premises pursuant to
this Lease, and that Landlord will assume the obligation to pay Landlord's
Broker and Tenant's Broker and any other broker retained by Landlord to the
extent Set forth in Landlord's separate written agreement with such Brokers.
Tenant will assume all obligations and responsibility with respect to the
payment of any broker other than Tenant's Broker that Tenant retained. Each of
Landlord and Tenant will indemnify, defend with competent counsel, and hold the
other harmless from any liability for the payment of any real estate brokerage
commissions, leasing commissions or finder's fees claimed by any other real
estate broker(s), leasing agent(s), finder(s), or salesmen due to the other
party's breach of the representations, warranties and covenants made by such
party in this Section 14.2.

14.3 Entire Agreement.  This Lease and the Exhibits (as described in Article 1),
which Exhibits are by this reference incorporated herein, constitute the entire
agreement between the parties, and there are no other agreements, understandings
or representations between the parties relating to the lease by Landlord of the
Leased Premises to Tenant, except as expressed herein.  No subsequent changes,
modifications or additions to this Lease shall be binding upon the parties
unless in writing and signed by both Landlord and Tenant.

14.4 Landlord's Representations.  Tenant acknowledges that neither Landlord nor
any of its agents made any representations or warranties respecting the
Property, the Building or the Leased Premises, upon which Tenant relied in
entering into the Lease, which are not expressly set forth in this Lease.
Tenant further acknowledges that neither Landlord nor any of its agents made any
representations 55 to (i) whether the Leased Premises may be used for Tenant's
intended use under existing Law, or (ii) the suitability of the Leased Premises
for the conduct of Tenant's business, or (iii) the exact square footage of the
Leased Premises, and that Tenant relies solely upon its own investigations with
respect to such matters.  Tenant expressly waives any and all claims for damage
by reason of any statement, representation, warranty, promise or other agreement
of Landlord or Landlord's agent(s), if any, not contained in this Lease or in
any Exhibit attached hereto.

ARTICLE 15
OPTIONS TO EXTEND

15.1 So long as Digital Island, Inc. (or a Permitted Assignee) is the Tenant
hereunder and occupies the entirety of the Leased Premises, and subject to the
condition set forth in clause (b) below, Tenant shall have three (3) options to
extend (each an "Extension Option") the term of this Lease with respect to the
entirety of the Leased Premises, for a period of five (5) years each (each an
"Extension Period"), subject to the following conditions:

     (a) Each option to extend shall be exercised, if at all, by notice of
exercise given to Landlord by Tenant not more than fifteen months nor less than
twelve months prior to the expiration of the eleventh (11th) year of the Lease
Term or the expiration of the Extension Period then in effect, as applicable;

     (b) Anything herein to the contrary notwithstanding, if Tenant is in
default (beyond any applicable cure period) under any of the terms, covenants or
conditions of this Lease, either at the time Tenant exercises an Extension
Option or On the commencement date of the applicable Extension Period, Landlord
shall have, in addition to all of Landlord's other rights and remedies provided
in this Lease, the right to terminate such option(s) to extend upon notice to
Tenant.

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<PAGE>

15.2 1n the event the applicable Extension Option is exercised in a timely
fashion, the Lease shall be extended for the term of the applicable Extension
Period upon all of the terms and conditions of this Lease, provided that the
Base Monthly Rent for each extension period shall be the "Fair Market Rent" for
the Leased Premises, increased as set forth below.  For purposes hereof, "Fair
Market Rent" shall mean the Base Monthly Rent, that a third party tenant
executing a five (5) year lease for leased premises of similar size and with
similar quality improvements and tenant improvement allowance in Silicon Valley,
taking into account any and all tenant inducements offered in connection with
such leasing and the annual increases to Base Monthly Rent Set forth herein;
provided however, that the "Fair Market Rent" shall not take into account the
value of any alterations or improvements made to the Leased Premises by Tenant
at Tenant's sole cost and expense, which "Fair Market Rent" shall be determined
pursuant to the process described below.  At the end of the first twelve (12)
month period of any Extension Period, and at the end of each twelve (12) month
period thereafter during any Extension Period, Base Monthly Rent shall be
increased at a rate of 3.0% per annum compounded.

15.3 Within 30 days after receipt of Tenant's notice of exercise, Landlord shall
notify Tenant in writing of Landlord's estimate of the Base Monthly Rent for the
applicable Extension Period, based on the provisions of Paragraph 15.2 above.
Within 30 days after receipt of such notice from Landlord, Tenant shall have the
right either to (i) accept Landlord's statement of Base Monthly Rent as the Base
Monthly Rent for the applicable extension period; or (ii) elect to arbitrate
Landlord's estimate of Fair Market Rent, such arbitration to be conducted
pursuant to the provisions hereof Failure on the part of Tenant to require
arbitration of Fair Market Rent within such 30-day period shall constitute
acceptance of the Base Monthly Rent for the applicable Extension Period as
calculated by Landlord.  If Tenant elects arbitration, the arbitration shall be
concluded within 90 days after the date of Tenant's election, subject to
extension for an additional 30-day period if a third arbitrator is required and
does not act in a timely manner.  To the extent that arbitration has not been
completed prior to the expiration of any preceding period for which Base Monthly
Rent has been determined, Tenant shall pay Base Monthly Rent at the rate
calculated by Landlord, with the potential for an adjustment to be made once
Fair Market Rent is ultimately determined by arbitration.

15.4 In the event of arbitration, the judgment or the award rendered in any such
arbitration may be entered in any court having jurisdiction and shall be final
and binding between the parties.  The arbitration shall be conducted and
determined in the City and County of San Francisco in accordance with the then
prevailing rules of the American Arbitration Association or its successor for
arbitration of commercial disputes except to the extent that the procedures
mandated by such rules shall be modified as follows:

     (a) Tenant shall make, demand for arbitration in writing within 30 days
after service of Landlord's determination of Fair Market Rent given under
Paragraph 15.3 above, specifying therein the name and address of the person to
act as the arbitrator on its behalf. The arbitrator shall be qualified as a real
estate appraiser familiar with the Fair Market Rent of similar industrial,
research and development, or office space in the Silicon Valley area who would
qualify as an expert witness over objection to give opinion testimony addressed
to the issue in a court of competent jurisdiction. Failure on the part of Tenant
to make a proper demand in a timely manner for such arbitration shall constitute
a waiver of the right thereto. Within 15 days after the service of the demand
for arbitration, Landlord shall give notice to Tenant, specifying the name and
address of the person designated by Landlord to act as arbitrator on its behalf
who shall be similarly qualified. If Landlord fails to notify Tenant of the
appointment of its arbitrator, within or by the time above specified, then the
arbitrator appointed by Tenant shall be the arbitrator to determine the issue.

     (b) In the event that two arbitrators are chosen pursuant to Paragraph
15.4(a) above, the arbitrators so chosen shall, within 15 days after the second
arbitrator is appointed determine the Fair Market Rent. If the two arbitrators
shall be unable to agree upon a determination of Fair Market Rent within such
15-day period, they, themselves, shall appoint a third arbitrator, who shall be
a competent and impartial person with qualifications similar to those required
of the first two arbitrators pursuant to Paragraph 15.4(a). In the event they
are unable to agree upon such appointment within seven days after expiration of
such 15-day period, the third arbitrator shall be selected by the parties
themselves, if they can agree thereon, within a further period of 15 days. If
the parties do not so agree, then either party, on behalf of both, may request
appointment of such a qualified person by the then Chief Judge of the United
States District Court having jurisdiction over the County of Santa Clara, acting
in his private and not in his official capacity, and the other party shall not
raise any question as to such Judge's full power and jurisdiction to entertain
the application for and make the appointment. The three arbitrators shall decide
the dispute if it has not previously been resolved by following the procedure
set forth below.

                                       39
<PAGE>

     (c) Where an issue cannot be resolved by agreement between the two
arbitrators selected by Landlord and Tenant or settlement between the parties
during the course of arbitration, the issue shall be resolved by the three
arbitrators within 15 days of the appointment of the third arbitrator in
accordance with the following procedure. The arbitrator selected by each of the
parties shall state in writing his determination of the Fair Market Rent
supported by the reasons therefor with counterpart Copies to each party. The
arbitrators shall arrange for a simultaneous exchange of such proposed
resolutions. The role of the third arbitrator shall be to select which of the
two proposed resolutions most closely approximates his determination of Fair
Market Rent. The third arbitrator shall have no right to propose a middle ground
or any modification of either of the two proposed resolutions. The resolution he
chooses as most closely approximating his determination shall constitute the
decision of the arbitrators and be final and binding upon the parties.

     (d) In the event of a failure, refusal or inability of any arbitrator to
act, his successor shall be appointed by him, but in the case of the third
arbitrator, his successor shall be appointed in the same manner as provided for
appointment of the third arbitrator. The arbitrators shall decide the issue
within 15 days after the appointment of the third arbitrator. Any decision in
which the arbitrator appointed by Landlord and, the arbitrator appointed by
Tenant concur shall be binding and conclusive upon the parties. Each party shall
pay the fee and expenses of its respective arbitrator and both shall share the
fee and expenses of the third arbitrator, if any, and the attorneys' fees and
expenses of counsel for the respective parties and of witnesses shall be paid by
the respective party engaging such counsel or calling such witnesses.

     (e) The arbitrators shall have the right to consult experts and competent
authorities to obtain factual information or evidence pertaining to a
determination of Fair Market Rent, but any such consultation shall be made in
the presence of both parties with full right on their part to cross-examine. The
arbitrators shall render their decision and award in writing with Counterpart
copies to each party. The arbitrators shall have no power to modify the
provisions of this Lease.

ARTICLE 16
RIGHT OF FIRST REFUSAL

16.1 During the Option Period (as defined below) Tenant shall have a right of
first refusal (the "Right of First Refusal") to lease the remainder of the first
floor of the Building (the "Remaining Premises"), subject to the following
conditions:

     (a) The Remaining Premises is available and has not been leased to another
Tenant prior to commencement of the Option Period.

     (b) Digital Island, Inc. must be the Tenant hereunder and occupy the
entirety of the Leased Premises as of its exercise of the Right of First Refusal
granted herein; and

     (c) Anything herein to the contrary notwithstanding, if Tenant is in
default (beyond any applicable cure period) under any of the terms, covenants or
conditions of this Lease at the time Tenant exercises the Right of First
Refusal, Landlord shall have, in addition to all of Landlord's other rights and
remedies provided in this Lease, the right to terminate the Right of First
Refusal upon notice to Tenant.

As used herein, "Option Period" shall mean the period of time commencing six (6)
months after the Lease Commencement Date, and ending thirty (30) months
thereafter.  Prior to the commencement of the Option Period, Tenant shall have
no rights to the Remaining Premises and Landlord shall be free to lease the
Remaining Premises any third party tenant.

                                       40
<PAGE>

16.2 If at any time during the Option Period, Landlord identifies a tenant for
the Remaining Premises, then Landlord shall notify Tenant in writing and Tenant
shall have ten (10) days after receipt of Landlord's written notice to notify
Landlord in writing its election to lease the Remaining Premises.  The terms of
any leasing of the Remaining Premises by Tenant shall be on the same terms and
conditions as this Lease, including the Base Monthly Rent (on a per-square foot
basis) then in effect and the Improvement Allowance set forth in the Work Letter
(on a per square foot basis).  If Tenant timely provides Landlord with notice of
its election to lease the Remaining Premises within said ten (10) day period,
then the parties shall consummate the lease of the Remaining Premises by the
preparation and execution of an amendment to this Lease within thirty (30) days
after Landlord's receipt of Tenant's notice.  If Tenant does not indicate in
writing its election to lease such Remaining Premises within said ten (10) day
period, then Landlord shall have the right to lease the Remaining Premises to a
third party.

ARTICLE 17
TELEPHONE SERVICE

Notwithstanding any other provision of this Lease to the contrary:

     (a)  So long as the entirety of the Leased Premises is leased to Tenant:

               (i)   Landlord shall have no responsibility for providing to
Tenant any telephone equipment, including wiring, within the Leased Premises or
for providing telephone service or connections from the utility to the Leased
Premises; and

               (ii)  Landlord makes no warranty as to the quality, continuity or
availability of the telecommunications services in the Building, and Tenant
hereby waives any claim against Landlord for any actual or consequential damages
(including damages for loss of business) in the event Tenant's
telecommunications services in any way are interrupted, damaged or rendered less
effective, except to the extent caused by the grossly negligent or willful act
or omission by Landlord, its agents or employees. Tenant accepts the telephone
equipment (including, without limitation, the INC, as defined below) in its "AS-
IS" condition, and Tenant shall be solely responsible for contracting with a
reliable third party vendor to assume responsibility for the maintenance and
repair thereof (which contract shall contain provisions requiring such vendor to
inspect the INC periodically (the frequency of such inspections to be determined
by such vendor based on its experience and professional judgment), and requiring
such vendor to meet local and federal requirements for telecommunications
material and workmanship). Landlord shall not be liable to Tenant and Tenant
waives all claims against Landlord whatsoever, whether for personal injury,
property damage, loss of use of the Leased Premises, or otherwise, due to the
interruption or failure of telephone services to the Leased Premises. Tenant
hereby holds Landlord harmless and agrees to indemnify, protect and defend
Landlord from and against any liability for any damage, loss or expense due to
any failure or interruption of telephone service to the Leased Premises for any
reason.

     (b)  At such time as the entirety of the Leased Premise is no longer leased
to Tenant, Landlord shall in its sole discretion have the right, by written
notice to Tenant, to elect to assume limited responsibility for INC, as provided
below, and upon such assumption of responsibility by Landlord, this subparagraph
(b) shall apply prospectively.

               (i)  Landlord shall provide Tenant access to such quantity of
pairs in the Building intra-building network cable ("INC") as is determined to
be available by Landlord in its reasonable discretion. Tenant's access to the
INC shall be solely by arrangements made by Tenant, as Tenant may elect,
directly with Pacific Bell or Landlord (or such vendor as Landlord may
designate), and Tenant shall pay all reasonable charges as may be imposed in
connection therewith. Pacific Bell's charges shall be deemed to be reasonable.
Subject to the foregoing, Landlord shall have no responsibility for providing to
Tenant any telephone equipment, including wiring, within the Leased Premises or
for providing telephone service or connections from the utility to the Leased
Premises, except as required by law.

               (ii) Tenant may alter, modify, add to or disturb any telephone
wiring in the Leased Premises upon notice to Landlord. Tenant shall be liable to
Landlord for any damage to the telephone wiring in the Building due to the act,
negligent or otherwise, of Tenant or any employee, contractor or other agent of
Tenant. Tenant shall have no access to the telephone closets within the
Building, except in the manner and under reasonable procedures

                                       41
<PAGE>

established by Landlord. Tenant shall promptly notify Landlord of any actual or
suspected failure of telephone service to the Leased Premises.

               (iii)     All costs incurred by Landlord for the installation,
maintenance, repair and replacement of telephone wiring in the Building shall be
a Property Maintenance Cost.

               (iv)      Landlord makes no warranty as to the quality,
continuity or availability of the telecommunications services in the Building,
and Tenant hereby waives any claim against Landlord for any actual or
consequential damages (including damages for loss of business) in the event
Tenant's telecommunications services in any way are interrupted, damaged or
rendered less effective, except to the extent caused by the grossly negligent or
willful act or omission by Landlord, its agents or employees. Tenant
acknowledges that Landlord meets its duty of care to Tenant with respect to the
Building INC by contracting with a reliable third party vendor to assume
responsibility for the maintenance and repair thereof (which contract shall
contain provisions requiring such vendor to inspect the INC periodically (the
frequency of such inspections to be determined by such vendor based on its
experience and professional judgment), and requiring such vendor to meet local
and federal requirements for telecommunications material and workmanship).
Subject to the foregoing, Landlord shall not be liable to Tenant and Tenant
waives all claims against Landlord whatsoever, whether for personal injury,
property damage, loss of use of the Leased Premises, or otherwise, due to the
interruption or failure of telephone services to the Leased Premises. Tenant
hereby holds Landlord harmless and agrees to indemnify, protect and defend
Landlord from and against any liability for any damage, loss or expense due to
any failure or interruption of telephone service to the Leased Premises for any
reason. Tenant agrees to obtain loss of rental insurance adequate to cover any
damage, loss or expense occasioned by the interruption of telephone service.

IN WITNESS Whereof, Landlord and Tenant have executed this Lease as of the
respective dates below set forth with the intent to be legally bound thereby as
of the Effective Date of this Lease first above set forth.

LANDLORD:

CORPORATE TECHNOLOGY CENTRE ASSOCIATES LLC, a California limited liability
company

By:  Corporate Technology Centre Partners LLC, a California limited liability
company, Its Manager

By:  Menlo Equities LLC, a California limited liability company, Its Manager

By:  Diamant Investments LLC, a Delaware limited liability company, Its Member

By:  ___________________________________

Dated:_________________        Richard J. Holmstrom, Manager

TENANT:

DIGITAL ISLAND, INC., a Delaware corporation

Dated:_________________        By:___________________________________

Printed Name____________________________

Title:__________________________________

Dated:_________________        By:___________________________________

Printed Name____________________________

Title:__________________________________

                                       42
<PAGE>

                            FIRST AMENDMENT TO LEASE

This FIRST AMENDMENT TO LEASE (this "Amendment") is dated as of this _____ day
of October, 1999 by and between CORPORATE TECHNOLOGY CENTRE ASSOCIATES LLC, a
California limited liability company ("Landlord"), and DIGITAL ISLAND, INC., a
Delaware corporation ("Tenant").

                                    RECITALS

A.   Landlord and Tenant entered into a Lease dated September 10, 1999 (the
"Lease"), for premises (the "Premises") with a street address of 400 Holger Way,
San Jose, California, and more particularly described in the Lease;

B.   Tenant desires to lease the remainder of the Building from Landlord and
Landlord desires to lease the remainder of the Building to Tenant on the terms
and conditions set forth herein.

C.   Landlord and Tenant now desire to amend the Lease on the terms and
conditions set forth herein.  Capitalized terms used in this Amendment and not
otherwise defined shall have the meanings assigned to them in the Lease.

                                   AGREEMENT

Now THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

1.   Amendment.  This Lease is hereby amended as follows:

(a)  Lease Commencement Date.

(i)  The Lease Commencement Date set forth in Article 1 is hereby changed to
     March 17, 2000.

(ii) Paragraph 2.3 is deleted in its entirety and replaced with the following:

               The term of this Lease shall begin, and the Lease Commencement
               Date shall be deemed to have occurred; on the Lease Commencement
               Date set forth in Article 1 (the "Lease Commencement Date"). The
               term of this Lease shall in all events end on the Lease
               Expiration Date (as set forth in Article 1). The Lease Term shall
               be that period of time commencing on the Lease Commencement Date
               and ending on the Lease Expiration Date (the "Lease Term").

(b)  Prepaid Rent.  The amount of Prepaid Rent set forth in Article 1 is hereby
changed to $92,107.45.

(c)  Common Areas.  The term Common Areas set forth in Article 1 is hereby
deleted.

(d)  Leased Premises.  The definition of Leased Premises in Article 1 is hereby
deleted and replaced with the following:

               All the interior space within the Building, including stairwells,
               connecting walkways, and atriums, consisting of approximately
               76,410 square feet and, for purposes of this Lease, agreed to
               contain said number of square feet.

(e)  Tenant's Proportionate Share. The percentage "73.83%" set forth as Tenant's
Proportionate Share in Article 1 is hereby deleted and replaced with "100%".

                                       43
<PAGE>

(f)  Base Monthly Rent.  The schedule of Base Monthly Rent set forth in Article
     1 is hereby deleted and replaced with the following:

      Period                                       Monthly Amount

      3/17/00-9/16/00                              $ 92,107.45
      9/17/00-3/16/01                              $145,414.90

On March 17, 2001, and on March 17 of each year thereafter, Base Monthly Rent
shall be increased from the Monthly Amount then in effect at a rate of 3.0% per
annum compounded.

(g)  Parking.  The first two sentences of Paragraph 4.5 are hereby deleted and
     replaced with the following:

Tenant, at no additional cost, shall have the use of the parking spaces located
within the Property boundaries.

(h)  Signs.  Notwithstanding anything to the contrary contained in Paragraph
     4.6, Tenant shall have the right to install business identification signage
     on all monument signage for the Building and all available Building
     signage, subject to Landlord's prior reasonable approval and all
     requirements of the City of San Jose.  Tenant's signage installation shall
     otherwise comply with the requirements of Paragraph 4.6.

2.   Work Letter.  The Work Letter attached as Exhibit C is hereby amended as
follows:

(a)  Improvement Allowance.  The amount of the Improvement Allowance set forth
in Section 3(a) of the Work Letter is hereby changed to $2,242,300.

(b)  Schedule 1. Tenant hereby acknowledges and agrees that as of the date
hereof Landlord has fulfilled all of its obligations regarding electrical
service and equipment at the Building set forth in Item 4 of Schedule 1 to the
Work Letter, except as follows: Landlord shall be responsible for the cost of a
standard pad for the initial 4000 amp transformer (the "Initial Transformer").
Landlord shall deliver primary conduit to the Initial Transformer. Should the
existing primary conduit be suitable for delivery of the initial 4000 amp
service, Landlord's responsibility hereunder shall consist only of the cost of
connecting to the existing primary conduit. If the existing conduit is not
suitable, Landlord shall be responsible for all costs necessary for providing a
primary conduit to the Initial Transformer. Tenant has assumed the
responsibility with PG&E for delivery' of both Landlord's initial 4000 amp
service and Tenant's additional service. Landlord's responsibility hereunder
moving forward shall be limited to the cost of providing the pad and primary
conduit as outlined above, as well as continued support in connection with
relations with PG&E.

(c)  Schedule 2. Items 1 and 2 on Schedule 2 to the Work Letter are hereby
deleted in their entirety. The following is hereby added to the end of Schedule
2:

               The 20,000 square feet within the Building added to the Leased
               Premises by this First Amendment to Lease shall be built out as
               general office space, pursuant to plans and specifications to be
               approved by Landlord pursuant to the Work Letter.

3.   Ratification.  The Lease, as amended by this Amendment, is hereby ratified
by Landlord and Tenant and Landlord and Tenant hereby agree that the Lease, as
so amended, shall continue in full force and effect.

4.   Miscellaneous.

(a)  Voluntary Agreement. The parties have read this Amendment and on the advice
of counsel they have freely and voluntarily entered into this Amendment.

                                       44
<PAGE>

(b)  Attorney's Fees. If either party commences an action against the other
party arising out of or in connection with this Amendment, the prevailing party
shall be entitled to recover from the losing party reasonable attorney's fees
and costs of suit.

(c)  Successors. This Amendment shall be binding on and inure to the benefit of
the parties and their successors.

(d)  Counterparts. This Amendment may be signed in two or more counterparts.
When at least one such counterpart has been signed by each party, this Amendment
shall be deemed to have been fully executed, each counterpart shall be deemed to
be an original, and all counterparts shall be deemed to be one and the same
agreement.

IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the
date first written above.

LANDLORD:

CORPORATE TECHNOLOGY CENTRE ASSOCIATES LLC, a California limited liability
company

By:  Corporate Technology Centre Partners LLC, a California limited liability
company, Its Manager

By:  Menlo Equities LLC, a California limited liability company, Its Manager

By:  Menlo Equities, Inc., a California corporation, Its Managing Member

By:____________________________________

Dated:_________________            Henry D. Bullock, President

TENANT:

DIGITAL ISLAND, INC., a Delaware corporation

Dated:_________________        By:___________________________________

Printed Name____________________________

Title:__________________________________

Dated:_________________        By:___________________________________

Printed Name____________________________

Title:__________________________________

                                       45

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