Document:

<PAGE>   1
                                                                    EXHIBIT 10.1

        THIS LEASE, made and entered into as of the Date of Lease, by and
between NORTH VALLEY TECH LLC, a Delaware limited liability company, hereinafter
referred to as "Landlord", and WEBEX COMMUNICATIONS, INC., a Delaware
corporation, hereinafter referred to as "Tenant".

                                   WITNESSETH:

        In consideration of the covenants and agreements hereinafter set forth
to be performed by the parties hereto, it is agreed by and between Landlord and
Tenant as follows:

        1. DEFINITIONS AND BASIC TERMS. The following terms, whenever set forth
in initial capitals in this Lease, shall have the meanings set forth
hereinbelow, except as otherwise expressly provided therein, or unless the
context otherwise requires:

        (a)     Date of Lease:                   The date on which Landlord
                                                 executes the Lease, as set
                                                 forth on the signature page
                                                 hereof.

        (b)     Landlord's Mailing Address:      551 Fifth Avenue, Suite 1416
                                                 New York, NY  10136
                                                 Phone:  (212) 905-1100
                                                 Fax:  (212) 905-1102

        (c)     Tenant's Mailing Address:        Webex Communication, Inc.
                                                 100 Rose Orchard Way
                                                 San Jose, CA  95134
                                                 Phone:  (408) 435-7000
                                                 Fax:  (408) 435-7004

        (d)     Building:                        North Valley Tech Center
                                                 500 E. 84th Avenue
                                                 Thornton, Colorado  80229

        (e)     Premises:                        SUITE NUMBER C-10 located on
                                                 the first (1st) floor of the
                                                 Building, containing
                                                 approximately 12,639 RENTABLE
                                                 SQUARE FEET ("RSF") (which area
                                                 includes a proportionate share
                                                 of the Common Areas and
                                                 Facilities), as hatched or
                                                 outlined on the floor plan
                                                 attached hereto and made a part
                                                 hereof as Exhibit A.

        (f)     Initial Term:                    The period commencing on Date
                                                 of Lease and terminating on the
                                                 last day of the calendar month
                                                 in which the seventh (7th)
                                                 anniversary of the Rent
                                                 Commencement Date occurs.

        (g)     Term:                            The Initial Term and any
                                                 extensions thereof thereafter
                                                 in effect.

        (h)     Commencement Date:               Date of Lease.

        (i)     Rent Commencement Date:          The date that is the earlier
                                                 of: (i) date that Tenant first
                                                 occupies the Premises for the
                                                 conduct of the Permitted Use
                                                 (rather than for construction
                                                 of Tenant Improvements), or
                                                 (ii) ninety (90) days after the
                                                 Commencement Date.

        (j)     Termination Date:                The last day of the calendar
                                                 month in which the 7th
                                                 anniversary of the Rent
                                                 Commencement Date occurs.

<PAGE>   2
        (k)     Base Rent:                       The amounts, for the periods,
                                                 set forth below, payable in
                                                 monthly installments in
                                                 advance:

<TABLE>
<CAPTION>
                                                  Period      Annual       Monthly    Rate Per
                                                 (Years)     Base Rent   Installment     RSF.
                                                 -------     ---------   -----------  --------
                                               commencing
                                                  with
                                                Rent Date
<S>                                                         <C>          <C>          <C>
                                                   1 - 2    $221,182.50  $18,431.88*     $17.50

                                                     3       224,342.25    18,695.19      17.75

                                                    4-7      227,502.00    18,958.50      18.00
</TABLE>

                                                 * In addition to the Security
                                                 Deposit (as defined below),
                                                 Tenant shall pay an amount
                                                 equal to six (6) months Base
                                                 Rent (totaling One Hundred Ten
                                                 Thousand Five Hundred Ninety
                                                 One and 25/100 Dollars
                                                 ($110,591.25)) in advance on
                                                 Date of Lease (the "Prepaid
                                                 Rent"). The Prepaid Rent shall
                                                 be applied to the first year's
                                                 Base Rent and shall reduce the
                                                 remaining monthly Base Rent
                                                 payable by Tenant to Landlord
                                                 for the first year by one-half,
                                                 making the monthly obligation
                                                 for Base Rent in the first
                                                 twelve (12) months equal to
                                                 Nine Thousand Two Hundred
                                                 Fifteen and 94/100ths Dollars
                                                 ($9,215.94).

        (l)     Rent:                            The Base Rent or Adjusted Base
                                                 Rent, as the case may be, and
                                                 all other charges or sums
                                                 payable hereunder.

        (m)     Security Deposit:                One Hundred Ten Thousand Five
                                                 Hundred Ninety One and 25/100
                                                 Dollars ($110,591.25).

        (n)     Tenant's Share:                  The percentage which the RSF of
                                                 the Premises is of the total
                                                 RSF of the Building as of the
                                                 end of the calendar year, which
                                                 as of the end of the first
                                                 calendar year is agreed to be
                                                 2.64%. Adjustments to the RSF
                                                 of the Premises or the Building
                                                 will result in a proportionate
                                                 adjustment to the Percentage of
                                                 Tenant's Share.

        (o)     Permitted Use:                   General office purposes;
                                                 provided that the Premises
                                                 shall not be used as a "call
                                                 center" providing high-volume
                                                 inbound toll-free customer
                                                 service and technical support
                                                 services on behalf of third
                                                 party customers, or entities
                                                 unrelated to such third party
                                                 customers, or entities
                                                 requesting such services, or
                                                 (unless Tenant utilizes fewer
                                                 than 199 telephone workstations
                                                 in the Premises) providing for
                                                 third party customers or
                                                 entities, telephonic outbound
                                                 operations relating primarily
                                                 to database development,
                                                 marketing research, third party
                                                 telecommunications carrier call
                                                 verification services, or the
                                                 sale of telecommunications
                                                 services and software products,
                                                 services and support.

                                       2

<PAGE>   3
        (p)     Base Year:                       The calendar year commencing
                                                 January 1, 2001, and ending
                                                 December 31, 2001.

        (q)     Comparison Year:                 The first full calendar year
                                                 following the Base Year and
                                                 each subsequent full calendar
                                                 year of the Term.

        (r)     Operating Expenses:              All expenses incurred during
                                                 the Base Year or the Comparison
                                                 Year, in the operation,
                                                 improvement, repair,
                                                 replacement and maintenance of
                                                 the Building including, without
                                                 limitation, (i) the cost of
                                                 utilities, heat,
                                                 air-conditioning, insurance,
                                                 labor, cleaning materials and
                                                 supplies, and security, if any;
                                                 (ii) expenses for management,
                                                 maintenance of elevators and
                                                 mechanical systems, rubbish
                                                 removal, window washing and
                                                 other services, and roof
                                                 repairs; (iii) the operation,
                                                 improvement, repair,
                                                 replacement and maintenance of
                                                 the Building Common Areas and
                                                 Facilities including all
                                                 surfaces, floor and wall
                                                 coverings, decorative items,
                                                 and window coverings, lighting
                                                 facilities and exteriors; and
                                                 (iv) the cost of any operation,
                                                 improvement, repair,
                                                 replacement or maintenance
                                                 which does not materially add
                                                 to the value of the Building
                                                 nor appreciably prolongs its
                                                 life, but merely keeps the
                                                 Building in ordinarily
                                                 efficient operating condition,
                                                 except that if such
                                                 improvement, repair or
                                                 replacement results in a
                                                 substantial cost, labor or
                                                 energy saving, such cost shall
                                                 be deemed an Operating Expense.
                                                 To the extent Landlord elects
                                                 to do so, said costs may be
                                                 amortized over a reasonable
                                                 number of years, with an
                                                 appropriate finance charge, all
                                                 of which shall be considered an
                                                 Operating Expense.

        (s)     Taxes:                           Taxes and assessments, special
                                                 or otherwise, (including all
                                                 expenses incurred in connection
                                                 with disputing the amounts
                                                 thereof) and sewer charges, if
                                                 any, levied or assessed upon or
                                                 with respect to the Building
                                                 and the land upon which it is
                                                 located, or upon or against the
                                                 rent payable hereunder for the
                                                 privilege of leasing real
                                                 property.

        (t)     Common Areas and Facilities:     The common areas and facilities
                                                 of the Building including, but
                                                 not limited to, lobbies,
                                                 vestibules, stairways,
                                                 corridors, passenger and
                                                 freight elevators, truck docks,
                                                 parking areas, drives, aisles,
                                                 landscaped areas, planters, and
                                                 access roads.

        (u)     [Intentionally omitted]

        (v)     Broker:                          Landlord:CB Richard Ellis, Inc.
                                                 Tenant:  Colliers, Bennett,
                                                          and Kahnweiler

        (w)     Guarantor:                       None.

                                       3

<PAGE>   4
        2.      PREMISES; TERM.

                (a) Landlord hereby leases to Tenant and Tenant hereby leases
        from Landlord the Premises, for the Term and upon the conditions,
        covenants, and agreements hereinafter set forth.

                (b) Subject to paragraph 17 hereof Tenant shall have a
        nonexclusive right to use the Common Areas and Facilities of the
        Building which lead to and from the Premises and common restrooms shared
        with other tenants in the Building. Nothing herein contained shall be
        construed as a demise to Tenant of the roof, exterior walls of the
        Building, space outside the Premises, air rights above or outside of the
        Premises, or of the Common Areas and Facilities.

        3.      POSSESSION. Landlord shall not be subject to liability for
failure to deliver possession on the Commencement Date, and such failure shall
not affect the validity of this Lease nor the obligations of Tenant hereunder
nor extend the Term hereof. However, unless timely possession of the Premises to
Tenant is rendered impossible due to delays occasioned by Tenant, Rent shall not
accrue until possession of the Premises is tendered to Tenant. Landlord and
Tenant acknowledge that a portion of Landlord's Work, consisting of the
reinforcing of the existing floor infill area to achieve a live loading capacity
of 120 pounds per square foot, will be performed contemporaneously with the
performance of Tenant's Work in the Premises. Tenant shall forward to Landlord
for approval, which approval shall not be unreasonably withheld, a floor plan
that clearly shows those portions of the floor in the Premises where Tenant
desires that the live floor loading capacity be increased to 120 pounds per
square foot as aforesaid. Landlord will act upon Tenant's submission within five
(5) days of Landlord's receipt thereof (the "Floor Plan Receipt Date"). If
Landlord is unable to complete the Landlord Floor Work (as said term is defined
in Exhibit C hereto) within one hundred twenty (120) days after the Floor Plan
Receipt Date, subject to extension on a day for day basis for periods of delay
caused by Tenant, Tenant, as Tenant's sole remedy, and at Tenant's option, may
cancel the Lease and each party hereto shall have no further obligation to the
other; provided, however, that in such event Landlord shall promptly return to
Tenant the full amount of any Prepaid Rent and Security Deposit that has
previously been paid by Tenant.

        4.      RENT. Tenant shall pay Landlord the Rent, without deduction or
offset, in advance, on the first day of each calendar month during the Term
commencing on the Rent Commencement Date, at Landlord's Mailing Address, or at
such other place as Landlord may from time to time designate in writing. The
Prepaid Rent shall be paid upon execution hereof. The installment of Rent
payable for any partial calendar month shall be pro-rated. Checks delivered in
payment of Rent shall not constitute payment until paid by the drawee. The
covenant to pay Rent hereunder is independent of any other covenant contained in
this Lease.

        5.      RENT ESCALATION.

                (a) There shall be added to the Base Rent for each Comparison
        Year, Tenant's Share of the net aggregate increase, if any, in the
        amount of Operating Expenses and Taxes for the Comparison Year over
        those for the Base Year. The Base Rent as so increased is herein
        referred to as the "Adjusted Base Rent". The Adjusted Base Rent for any
        Comparison Year shall serve as the basis for an estimate of Adjusted
        Base Rent due for the next Comparison Year until the computation for
        that Comparison Year has been made. The difference between the actual
        increase in Operating Expenses and Taxes for any Comparison Year and the
        estimated Adjusted Base Rent for such Comparison Year shall be promptly
        paid by Tenant upon Tenant's receipt of a statement of such adjustment.
        After the Adjusted Base Rent has been established, it shall
        retroactively become payable from the beginning of the calendar year.
        The remaining monthly Rent installments shall be adjusted accordingly.
        Amounts due for any partial year of the Term in accordance with the
        foregoing shall be prorated on a calendar year basis.

                With respect to Taxes, the statement of adjustment shall
        reflect, as of the date prepared, Taxes incurred for the Base Year and
        for the Comparison Year, whether the same shall be definitive or subject
        to subsequent revision. Should Taxes for the Base Year or any Comparison
        Year be subsequently reduced or increased, Landlord shall recompute the
        Taxes using the amount of the Taxes for the Base Year as so reduced or
        increased for all Comparison Years prior to the Comparison Year in which
        the reduction or increase is granted. All changes to Adjusted Base

                                       4

<PAGE>   5
        Rent due from Tenant by reason thereof shall be payable within thirty
        (30) days after Tenant's receipt of the statement therefor.

                (b) Landlord shall, during Landlord's regular business hours,
        make available to Tenant records, in reasonable detail, of Operating
        Expenses and Taxes for the period covered by such statement or
        statements, for a period of sixty (60) days after the mailing of such
        statements to Tenant. If Tenant shall not dispute any item in any such
        statement within thirty (30) days following Tenant's receipt of such
        statement, Tenant shall be deemed to have waived any objection thereto.

        6.      SECURITY DEPOSIT.

                (a) Tenant has deposited with Landlord the Security Deposit, the
        receipt of which (if by check subject to collection) is hereby
        acknowledged. The Security Deposit shall be held by Landlord, in an
        interest bearing account, as security for full performance due of Tenant
        under this Lease. Upon expiration of the Term and written request
        therefor, the Security Deposit shall be returned to Tenant with
        interest, unless Landlord has reasonable cause to withhold all or a
        portion thereof.

                (b) If any Rent shall be overdue and unpaid, or should Landlord
        have made payments on behalf of Tenant, or should Tenant fail to perform
        any of the covenants or agreements of this Lease, then Landlord may,
        without prejudice to any other remedy which Landlord may have, apply all
        or a portion of the Security Deposit toward the payment of Rent, or
        toward any loss, damage or expense sustained by Landlord resulting
        therefrom. In such event Tenant shall forthwith restore the Security
        Deposit to the original sum.

                (c) In the event bankruptcy, insolvency, reorganization or other
        creditor-debtor proceedings shall be instituted by or against Tenant,
        its successors or assigns, or any guarantor of Tenant hereunder, the
        Security Deposit shall be deemed to be applied first to the payment of
        Rent due to Landlord for all periods prior to the institution of such
        proceedings. The balance of the Security Deposit, if any, may be
        retained by Landlord in partial liquidation of Landlord's damages.

                (d) In the event that Landlord's interest in the Premises is
        sold, transferred or assigned, the party acquiring the Premises shall
        assume Landlord's rights and obligations under this Lease and Landlord
        shall deliver the Security Deposit to the acquirer of such interest.
        Thereupon, Landlord shall be discharged and released from all further
        liability with respect to the Security Deposit and Tenant agrees to look
        solely to the new landlord for the return of the Security Deposit. This
        provision shall also apply to any subsequent transferees. No holder of a
        mortgage or deed of trust or lessor under a ground or underlying lease
        to which this Lease is or may be superior or subordinate shall be held
        responsible in connection with the Security Deposit, unless it has
        received the Security Deposit.

        7.      PERSONAL PROPERTY AND BUSINESS TAXES. Tenant shall pay, prior to
delinquency, all taxes assessed against or levied upon fixtures and all property
of Tenant located in the Premises. When possible, Tenant shall cause said
fixtures and property to be assessed and billed separately from the real
property of which the Premises form a part. In the event any or all of Tenant's
fixtures and property shall be assessed and taxed against Landlord, Tenant shall
pay said taxes within ten (10) days after receipt of a written statement setting
forth the amount of taxes applicable to Tenant's fixtures and property. Tenant
shall pay, prior to delinquency, all license fees and taxes imposed upon the
business of Tenant.

        8.      USE. Absent the prior written consent of Landlord, Tenant shall
not use the Premises other than for the Permitted Use. Tenant shall not use the
Premises in violation of any law or of the certificate of occupancy issued for
the Building. Within five (5) days' of receipt of a written notice from
Landlord, Tenant shall discontinue any use of the Premises which is declared
unlawful or which imposes any duty upon Landlord. Tenant shall not permit
anything to be done which will invalidate or increase the cost of insurance
covering the Building or property located therein. Tenant shall, upon demand,
reimburse Landlord for any additional premium charged by reason of Tenant's
failure to comply with the provisions hereof.

                                       5

<PAGE>   6
        9.      ALTERATIONS AND IMPROVEMENTS. Except as described on Exhibit C,
attached hereto and made a part hereof, Landlord shall not be required to alter
or improve the Premises or the Building. Tenant accepts the Premises in an "as
is" condition and agrees to perform alterations or improvements to the Premises
in accordance with plans and specifications prepared by a certified architect,
all at Tenant's sole cost and expense, subject to Landlord's prior approval
which shall not be unreasonably withheld, and in accordance with all applicable
laws, ordinances, rules and regulations. Prior to commencing any alteration or
improvement to the Premises, Tenant shall forward to Landlord three (3) sets of
blueprints and one (1) set of sepias of Tenant's proposed work. Landlord may in
its sole discretion impose requirements as to the manner of performance of any
work by or for Tenant in the Premises. All work shall be performed in a good and
workmanlike manner using quality material and shall be promptly completed,
lien-free, by a contractor who is insured, bonded and has been pre-approved by
Landlord. Prior to the commencement of such work, Tenant agrees to deliver to
Landlord a Certificate of Worker's Compensation insurance in statutory limits
from each contractor and subcontractor as well as evidence of automobile
insurance, including "non-owned" automobiles, covering personal injury, bodily
injury and property damage, including death resulting therefrom, in the combined
single limit amount of $1,000,000.00 and comprehensive general liability in the
combined single limit amount of $1,000,000.00, with Landlord listed as an
additional named insured.

        Landlord shall reimburse Tenant for the cost of renovation or
construction work performed by Tenant (excluding all consultation and design
fees), in the amount and manner hereinafter provided. The amount of such
reimbursement being hereinafter referred to as "Tenant's Allowance". It is
understood and agreed that Tenant's Allowance shall cover on the cost of the
construction to be completed by Tenant, hereinafter referred to as "Tenant's
Work", as delineated in the plans and specifications approved by Landlord.

        Tenant's Allowance shall not exceed a total amount of Two Hundred Fifty
Two Thousand Seven Hundred Eighty and 00/100 Dollars ($252,780.00), or the
actual cost of construction of Tenant's Work as evidenced by the lowest
competitive bid therefore, whichever is less.

        Landlord shall pay Tenant's Allowance to Tenant within thirty (30) days
of completion of Tenant's Work and satisfaction of the following conditions:

        (a) That Tenant is not in default under any of the conditions,
covenants, or agreements of this Lease;

        (b) [Intentionally Omitted];

        (c) That Tenant's Work has been completed and that Tenant's architect
has so certified to Landlord, subject, however, to Landlord's verification that
Tenant's Work has been completed;

        (d) That Tenant has furnished to Landlord Tenant's affidavit that
Tenant's Work has been completed to its satisfaction and in strict accordance
with the above-referenced plans and specifications, which affidavit may be
relied upon by Landlord; and

        (e) That Tenant has furnished to Landlord the affidavit of the general
contractor performing Tenant's Work to the effect that Tenant's Work has been
fully completed in accordance with the plans and specifications approved by
Landlord and that all subcontractors, laborers and materials for Tenant's Work
have been paid in full, and paid bills or paid invoices and such other evidence
of same is forwarded to Landlord.

        Tenant agrees that it will provide a description of all work invoices
and evidence of payment thereof, all in sufficient detail.

        Tenant shall provide Landlord with properly completed lien waivers
executed by Tenant's general contractor, and as to labor and materials valued in
excess of $5,000.00, every subcontractor and laborer participating in Tenant's
work, and every material supplier delivering materials directly to the Premises.
Tenant's failure to provide said lien waivers within thirty (30) days after the
completion of renovation work

                                       6

<PAGE>   7
in the Premises may be deemed a material default of this Lease. Tenant shall
also submit a Certificate of Occupancy to Landlord upon demand therefor.

        10.     OWNERSHIP OF IMPROVEMENTS.

                (a) All alterations and improvements in the Premises made by
        either party (except to Tenant's personal property, furniture and
        furnishings, signs and trade fixtures) shall become the property of
        Landlord and shall be surrendered with the Premises as provided for
        herein.

                (b) Tenant shall not encumber or assign its trade fixtures or
        other property in the Premises without the prior written consent of
        Landlord. Any consent hereunder shall apply solely to the transaction
        thereby authorized. Any violation of the terms of this provision may be
        deemed a Default of this Lease.

        11.     REPAIRS.

                (a) Landlord's obligation to make repairs to the Premises shall
        pertain only to the structural portions of the floor, ceiling, and
        perimeter walls, unless the necessity for such repairs shall have been
        occasioned by Tenant or any permitted subtenant or licensee of Tenant,
        or their respective employees, agents, contractors or any person, firm
        or corporation acting on its behalf, in which event Tenant agrees to
        make such repairs at Tenant's sole cost and expense. Except in cases of
        an emergency, Landlord shall not be required to commence any repair
        until after receipt of written notice from Tenant. Tenant shall allow
        Landlord reasonable time in which to commence and complete such repairs.
        Landlord shall use reasonable efforts to make such repairs with a
        minimum of inconvenience, disruption, or loss of business to Tenant.

                (b) Except as provided in subparagraph (a) of this paragraph,
        Tenant agrees to keep and maintain the Premises, the fixtures and
        equipment therein and the appurtenances thereto in good repair and
        condition at Tenant's own cost and expense, and to make all necessary
        repairs and replacements thereto. Tenant shall keep and maintain the
        Premises in a first-class condition throughout the Term. Tenant shall
        replace all damaged glass with glass of equal quality. In the case of
        damage or destruction by insurable casualty or by eminent domain, the
        obligations of Landlord and Tenant shall be controlled as hereinafter
        provided.

                (c) Following initial construction of the Premises Tenant may,
        at its own cost, paint, paper or change floor coverings, or otherwise
        alter the Premises, provided that (i) the structural integrity or value
        of the Building shall not be adversely affected; (ii) the cost of such
        alteration does not exceed Five Dollars ($5.00) per square foot; and
        (iii) the sprinkler system, if any, is not thereby affected. In all
        other instances, Tenant shall secure prior written approval of Landlord.
        Tenant shall submit to Landlord plans and specifications for such
        proposed work, together with the name of the contractor and a statement
        of the estimated cost thereof. Prior to starting such work, Tenant
        agrees to deliver to Landlord a certificate of worker's compensation
        insurance in statutory limits from Tenant's contractor as well as
        evidence of insurance coverages to be maintained by Tenant hereunder.
        Such work shall be promptly completed in accordance with such approved
        plans and specifications, applicable laws and ordinances, and rules and
        requirements of Landlord's insurance carriers, subject to the terms of
        Tenant's indemnity set forth under paragraph 16 hereof and Tenant's
        obligation to insure such liability under paragraph 28 hereof.

                (d) The term "repairs" shall include repairs, replacements,
        renewals, alterations, additions, improvements and betterments.

                (e) If Tenant shall fail or refuse to make repairs as set forth
        above, or if Landlord is required to make any repairs because of any act
        or omission of Tenant (or Tenant's permitted subtenant, business invitee
        or licensee, or their respective employees, agents or contractors, or
        any person, firm or corporation acting on Tenant's behalf), Landlord
        shall have the right, but not the obligation, upon ten (10) days' notice
        (except in case of an emergency), to enter upon the Premises to make
        such repairs, and add the cost thereof to the next installment of Rent
        due.

                                       7

<PAGE>   8
        12.     BUILDING SERVICES. Landlord shall furnish to the Premises,
during normal business hours Monday through Friday (6:00 A.M. - 6:00 P.M. Monday
- Friday; 8:00 A.M. - 12:00 P.M. Saturday), excluding usual holidays (New Year's
Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, Christmas),
reasonable amounts of air conditioning and heat, and shall furnish at all times
elevator service, electric current for normal lighting and office machines,
water for lavatory and drinking purposes, and janitorial and maintenance
services. Tenant shall give Landlord at least twenty-four (24) hours written
notice if Tenant requires air conditioning or heat on a Saturday, Sunday or
holiday, and agrees to pay Landlord all charges associated therewith.

        Tenant shall comply with all rules and regulations which Landlord
establishes for the protection of Building services. Landlord shall have free
access to all mechanical installations of Landlord at all times. Where failure
to furnish any of said utilities or services is caused by strikes, accidents, or
conditions beyond the control of Landlord, Landlord's failure shall neither be
deemed an eviction or disturbance of Tenant's use or possession of the Premises,
nor shall such failure render Landlord liable to Tenant, or relieve Tenant of
its Lease obligations.

        Tenant agrees not to use any apparatus or device which may increase the
amount of such services usually furnished to the Premises without the prior
written consent of Landlord. Landlord reserves the right to charge for such
increased services.

        13.     ELECTRICAL CURRENT. Electrical service is provided by Landlord
on a submetering basis. Said electrical service shall provide a design load of
up to 600 amps at 120/208 volts A/C, three phase to the Premises throughout the
Term. Tenant shall pay monthly to Landlord, as additional rental, the actual
cost of metered, monthly consumption of electrical service used in the Premises,
calculated at the rate chargeable to Tenant by the local utility company.

        Landlord may change the method of furnishing electric current upon at
least thirty (30) days notice. Thereafter Tenant shall, at Tenant's expense,
make such alternative arrangements as may be approved by Landlord in writing.
Base Rent may be adjusted to equitably reflect the inclusion or deletion of
electric service hereunder.

        Tenant covenants and agrees that its use of electric current shall never
exceed the capacity of existing feeders to the Premises, the Building, the
risers or wiring installations. Tenant shall make no alteration to electrical
service equipment in the Premises without obtaining the prior written consent of
Landlord in each instance. Except with Landlord's prior written consent, Tenant
may operate only reasonable quantities of standard household and office
equipment at the Premises. In the event Tenant installs or operates any other or
excessive electrical equipment without Landlord's prior written consent, Tenant
shall pay to Landlord, as and for liquidated damages, a sum equal to the
estimated additional cost to Landlord for the operation of such equipment. In
the event Tenant requests electric current in excess of the existing electrical
system capacity of the Building, and in the event Landlord consents to any such
increase, all work to increase such current shall be done at Tenant's sole cost
and expense, and the Base Rent shall be equitably adjusted to reflect the
additional cost to Landlord. Tenant agrees to promptly execute an Amendment and
Supplement to Lease to reflect any change in the Base Rent resulting from a
change in the method or quantity of electric service used at the Premises.

        Landlord shall not be deemed guilty of an eviction or disturbance of
Tenant's use and possession of the Premises nor shall Landlord be liable for the
failure of any supply in the electric current unless caused by Landlord's sole
gross negligence.

        14.     ACCESS. Landlord and its agents shall have the right to enter
the Premises at all reasonable times for the purpose of inspecting the Premises,
showing the Premises to prospective mortgagees or purchasers of the Building,
and making alterations, repairs, improvements or additions to the Premises or to
the Building for any purpose relating to the safety, protection or preservation
of the Premises, the Building or Landlord's interest. During the six (6) months
prior to the end of the Term, Landlord may show the Premises to prospective
tenants. If Tenant's representative shall not be present when such an entry by
Landlord is necessary or permitted hereunder, Landlord may enter by means of a
master key or may, after reasonable attempts to notify Tenant, enter forcibly
without liability to Tenant, except for any failure to exercise due care for
Tenant's property. Landlord shall neither be deemed guilty

                                       8

<PAGE>   9
of an eviction or disturbance of Tenant's use and possession of the Premises nor
shall Landlord be liable to Tenant in any manner on account of any entry
permitted hereunder.

        15.     INABILITY TO PERFORM. This Lease and the obligations of Tenant
hereunder shall not be affected because Landlord is unable to fulfill any of its
obligations hereunder or is delayed in doing so, if such inability or delay is
caused by reason of any cause beyond the control of Landlord.

        16.     INDEMNIFICATION. Tenant shall defend, indemnify and hold
Landlord harmless from any loss, cost, damage, expense (including reasonable
attorney fees) and liability of any nature arising out of the use or occupancy
of the Premises by Tenant, its agents and employees in or on the Premises, and
the approaches thereto, or arising or alleged to have arisen out of the acts or
omissions of Tenant's officers, agents, employees or invitees. Tenant, upon
notice from Landlord, shall defend the same, at Tenant's expense, by counsel
reasonably satisfactory to Landlord. Tenant hereby assumes all risk of damage to
property or injury to persons, in, upon or about the Premises from any cause
other than Landlord's gross negligence or that of Landlord's agents or
employees.

        Tenant releases Landlord from all liability for any damage to property
entrusted to employees of the Building, and for injury to persons or for loss of
or damage to any property by theft or otherwise, unless caused by or due to the
gross negligence of Landlord, its agents, or employees. Neither Landlord nor its
agents shall be liable for interference with light or other intangible rights,
nor for any latent defect in the Premises or in the Building of which Landlord
does not have actual knowledge. The foregoing sentence shall not detract from
Landlord's repair obligations under paragraph 11(a) hereof.

        17.     RIGHTS OF LANDLORD. Landlord reserves the following rights: (a)
to change the name of the Building without notice or liability to Tenant; (b) to
designate all sources furnishing sign painting or lettering and toilet supplies
used on the Premises; (c) if Tenant vacates the Premises at any time during the
last ninety (90) days of the Term, to decorate, remodel, repair, alter or
otherwise prepare the Premises for reoccupancy; (d) constantly to have pass keys
to the Premises; (e) to grant to anyone the exclusive right to conduct any
particular business in the Building; and (f) at any time, at Landlord's expense,
to decorate or make repairs, alterations, additions or improvements, in or to
the Building or any part thereof, including the Premises, including specifically
the right to alter, improve or rebuild the lobby of the Building. Except where
resulting from the gross negligence of Landlord, Landlord shall not be liable to
Tenant for any expense, injury, loss or damage resulting from any work so done
in or about the Premises or the Building.

        In connection with making repairs, alterations or additions hereunder,
Landlord shall have right to post necessary notices on the Premises, and shall
have right of access through the Premises, as well as the right to take
materials that may be required to perform the foregoing into and through the
Premises, as well as the right in the course of such work to close entrances,
doors, corridors, elevators, or other Building facilities or temporarily to
abate the operations of such facilities, without being deemed or held guilty of
an eviction of Tenant and without liability to Tenant. Rent shall not abate
while the foregoing is being performed and Tenant shall not be entitled to
maintain any offset or counterclaim for damages of any kind against Landlord by
reason thereof, unless caused by or due to the gross negligence of Landlord, its
agents, employees or assigns, all such claims being hereby expressly released by
the Tenant. All such work shall be done in such manner as to cause Tenant the
least inconvenience practicable

        18.     ASSIGNMENT AND SUBLETTING. Tenant shall not, without the prior
written consent of Landlord assign, convey, mortgage or sublet this Lease or any
interest herein, or allow any transfer hereof. Any assignment, conveyance,
mortgage or sublease shall be subject to terms and conditions acceptable to
Landlord, and shall not be unreasonably withheld provided that: (i) at the time
of any such proposed subletting or assignment, Tenant shall not be in default
under any of the conditions, covenants, or agreements of this Lease; (ii) the
sublessee or assignee is not, and has not been within the six (6) months
preceding Tenant's request for Landlord's consent, an occupant or related to an
occupant of the Building and intends only to occupy the Premises and its
appurtenances and conduct its business therein in accordance with the Permitted
Use and otherwise for the purposes permitted by the terms of this Lease; (iii)
the credit, financial responsibility, character, and business or professional
standing of the proposed tenant is satisfactory to Landlord; and (iv) the nature
of the proposed occupancy is not inconsistent with Landlord's commitments to
other occupants of the Building.

                                       9

<PAGE>   10
        19.     DAMAGE OR DESTRUCTION. If the Premises or the Building are
damaged by fire or other casualty insured under policies of insurance carried by
Landlord, the damage to the Building shall be repaired by and at the expense of
Landlord and the damage to the Premises shall be repaired by and at the expense
of Landlord and Tenant to the extent of their respective obligations to maintain
and repair the Premises pursuant to paragraph 11 hereof, provided such repairs
can, in Landlord's opinion, be made within fifteen (15) days after the
occurrence of such damage without the payment of overtime or other premiums.
There shall be no abatement of Rent by reason of any portion of the Premises
being unusable for a period of fifteen (15) days or less. If the damage is due
to the fault or neglect of Tenant or its employees, agents, or contractors there
shall be no abatement of Rent.

        If repairs cannot, in Landlord's opinion, be made within fifteen (15)
days, after the occurrence of such damage, Landlord may, following ten (10) days
notice, afford a reasonable time within which they are to be made. In such event
the Rent shall be prorated for the period within which the Premises are
untenantable.

        A total destruction of the Building in which the Premises are located
shall automatically terminate this Lease.

        20.     EMINENT DOMAIN. If the Premises, or so much thereof as to render
the balance unusable for the Permitted Use, shall be taken under power of
eminent domain, this Lease shall automatically terminate as of the later of the
date of such condemnation, or the date possession is taken by the condemning
authority, or as otherwise herein provided. Tenant hereby assigns to Landlord
any award which may be made in such taking or condemnation. In the event of a
partial taking which does not result in a termination of this Lease, Base Rent
shall be proportionately adjusted. Landlord may without any obligation or
liability to Tenant stipulate with any condemning authority for a judgment of
condemnation, and the date of taking under this clause shall then be deemed the
date agreed to under the terms of said stipulation.

        21.     TENANT'S DEFAULT. The occurrence of any of the following shall
constitute an event of Default:

                (a) The vacation, abandonment or desertion of the Premises by
        Tenant.

                (b) A failure by Tenant to have made any payment hereunder for
        seven (7) days after the date such payment was due.

                (c) A failure by Tenant to observe or perform any provision of
        this Lease for fifteen (15) days after written notice thereof from
        Landlord; provided that if such Default cannot reasonably be cured
        within such period, and Tenant promptly commences to cure such Default
        and thereafter diligently prosecutes the same to completion, Tenant
        shall not be deemed in Default.

                (d) The making by Tenant of any general assignment for the
        benefit of creditors, or the attachment, execution or other judicial
        seizure of substantially all of Tenant's assets located at the Premises
        or of Tenant's interest in this Lease.

        If an event of Default shall occur, Landlord may, at any time:

                    (i) re-enter the Premises and take possession thereof and of
                all property of Tenant therein and remove Tenant and all other
                parties from the Premises without terminating this Lease, and at
                any time relet the Premises, or any part thereof, upon such
                conditions and at such rental as Landlord deems proper; provided
                such rental is not less than rates commercially reasonable in
                the marketplace for comparable properties. In such event
                Landlord may receive and collect the rent from such reletting
                and apply it against any amounts due from Tenant hereunder,
                (plus expenses Landlord incurs in recovering possession of the
                Premises, placing the same in good condition, preparing the same
                for reletting, and all other related expenses, commissions and
                charges). Rent or other charges collected from a tenant to whom
                the Premises have been relet shall be applied to reduce any
                indebtedness due hereunder. Landlord shall not be deemed to

                                       10

<PAGE>   11
                have terminated this Lease or the liability of Tenant for the
                total liability hereunder by re-entry or any other act unless
                Landlord shall have specifically notified Tenant of Landlord's
                election to terminate this Lease.

                    (ii) give written notice to Tenant of Landlord's election to
                terminate this Lease. In the such event Landlord may recover
                from Tenant all damages related to Tenant's Default, including
                reasonable attorneys' fees; and

                    (iii) pursue any and all other rights and remedies that
                Landlord may have from time to time and at any time, at law or
                in equity or otherwise.

        In the event of Default, all of Tenant's trade fixtures, improvements
and other personal property shall be left on the Premises and Landlord shall
have the right to or remove, or store same, at the risk and expense of Tenant,
until all Defaults are cured. If Tenant shall fail to cure all Defaults and
remove said property within ten (10) days of Landlord's request, said property
shall be deemed abandoned by Tenant. In no event shall Landlord be responsible
for the preservation or safekeeping of Tenant's property.

        If Tenant shall Default in the payment of Rent and such Default
continues for two (2) consecutive months, or for a total of four (4) months in
any twenty-four (24) month period, or if Tenant shall Default in the performance
of any other covenant of this Lease more than three (3) times in any twenty-four
(24) month period then, notwithstanding that such Default shall have been cured,
any further similar Default shall be deemed deliberate and Landlord may
terminate this Lease without affording to Tenant an opportunity to cure such
Default.

        21A.    LANDLORD'S DEFAULT. In the event that Landlord shall fail to
observe or perform its obligations under this Lease for thirty (30) days after
notice thereof by Tenant to Landlord, its mortgagees and any ground or
underlying lessors of whom Tenant is given notice (provided that if such failure
cannot reasonably be cured within such 30-day period, such 30-day period shall
be deemed extended for such longer period as is reasonably necessary to cure
such failure provided that Landlord promptly commences to cure such failure and
thereafter diligently prosecutes the same to completion) and such failure (i)
has a material adverse effect on Tenant's Permitted Use as customarily
conducted, or (ii) precludes Tenant's normal business operations in the
Premises, or (iii) renders the Premises untenantable, then Tenant may seek to
recover damages from Landlord or other relief by appropriate legal proceedings.

        22.     RULES AND REGULATIONS. Tenant shall comply with the Rules and
Regulations attached hereto and made a part hereof as Exhibit B, and such other
rules and regulations as Landlord may adopt from time to time. Landlord shall
not be liable to Tenant for the breach of any lease by any other tenant in the
Building.

        23.     REQUIREMENTS OF LAW. Tenant shall, at its sole cost and expense,
promptly comply with all laws, orders, regulations and requirements of all
public authorities and any fire underwriters insurance rating agency or similar
organization which may impose any violation, order or duty upon Landlord or
Tenant with respect to the Premises, or with respect to the Building if arising
out of Tenant's use of the Premises. Tenant shall pay all costs, expenses,
fines, penalties or damages which may be imposed upon Landlord by reason of
Tenant's failure to comply with the provisions of this paragraph.

        24.     SURRENDER OF PREMISES. At the termination of this Lease Tenant
shall surrender the Premises (and all keys thereto) to Landlord in good
condition, reasonable wear and tear excepted. Tenant shall remove its trade
fixtures, personal property and signs, provided such removal will not damage the
Premises. If Tenant shall fail to remove said trade fixtures, personal property
and signs within five (5) days after termination, said property shall, at the
option of Landlord, either be deemed abandoned, or Landlord shall have the right
to remove and store said property, at Tenant's expense, without further notice
to or demand upon Tenant. Tenant shall be responsible for any and all charges
and expenses incurred by Landlord therefor. Tenant hereby indemnifies Landlord
against all losses, costs, damages, liabilities and expenses resulting from
Tenant's failure or delay in surrendering the Premises, including, without
limitation, claims made by any succeeding tenant founded on such delay. Tenant's
obligations under this paragraph shall survive the Term.

                                       11

<PAGE>   12
        25.     QUIET ENJOYMENT. Tenant, upon paying the Rent and performing the
other conditions, covenants, and agreements of this Lease, shall peaceably and
quietly have, hold and enjoy the Premises during the Term, without any hindrance
from Landlord or any person or persons claiming by, through or under Landlord,
subject to the terms of this Lease, and to any mortgages, ground or underlying
leases, agreements and encumbrances to which this Lease is or may be
subordinated.

        26.     LANDLORD'S LIEN. Landlord shall have a valid and subsisting lien
for the payment of all Rent upon Tenant's signs, fixtures and personal property
situated on the Premises. Such property shall not be removed therefrom without
the written consent of Landlord until all arrearages then due to Landlord
hereunder have been paid. Upon written request therefor, Tenant agrees to
execute such documents as Landlord deems reasonably necessary to perfect the
security interest granted hereby. In the event of Default by Tenant hereunder,
Landlord may, in addition to any other remedies provided herein or by law, enter
upon the Premises and take possession of signs, fixtures, furniture and other
personal property of Tenant without liability for trespass or conversion, and
sell the same with or without notice at public or private sale, at which
Landlord or its assigns may purchase and apply the proceeds, less expenses
connected therewith, as a credit against sums due by Tenant to Landlord. Any
surplus shall be paid to Tenant, and Tenant agrees to pay any deficiency
forthwith, upon demand. Landlord may foreclose said lien in the manner provided
by law. The lien herein granted to Landlord shall be in addition to any
landlord's lien that may at any time be provided by law.

        27.     LIENS. Tenant shall do all things reasonably necessary to
prevent the filing of any lien against the Building or the interest of the
Landlord or any underlying lessor therein or the interest of any mortgagee or
holder of any deed of trust covering the Building by reason of any services
claimed to have been performed or materials claimed to have been supplied to
Tenant, or anyone holding the Premises, or any part thereof, through or under
Tenant. Tenant shall cause such lien to be vacated and canceled of record within
thirty (30) days after the date of the filing thereof. If Tenant shall fail to
timely vacate or release such lien Landlord may do so, and Tenant shall repay to
Landlord all expenses, including reasonable attorneys' fees, incurred in
connection therewith.

        28.     INSURANCE.

                (a) Liability Insurance Carried by Tenant. Tenant shall obtain
        and keep in force during the Term Commercial General Liability insurance
        protecting Tenant and Landlord (as an additional insured) against claims
        for bodily injury, personal injury and property damage based upon,
        involving or arising out of the use, occupancy or maintenance of the
        Premises and all areas appurtenant thereto. Such insurance shall be on
        an occurrence basis providing single limit coverage in an amount not
        less than $1,000,000 per occurrence with an "Additional Insured-Managers
        or Landlords of Premises" Endorsement and shall contain an amendment to
        the Pollution Exclusion to cover damage caused by heat, smoke or fumes
        from a hostile fire. The limits of said insurance shall not serve to
        limit the liability of Tenant or relieve Tenant of any obligation
        hereunder. All insurance to be carried by Tenant shall be primary and
        not contributory with any similar insurance carried by Landlord, whose
        insurance shall be considered excess insurance only.

                (b) Liability Insurance Carried by Landlord. Landlord shall
        maintain insurance covering the Building in limits and with coverage
        generally deemed acceptable within the real estate industry. Landlord's
        insurance coverage shall be excess over Tenant's coverage required
        hereunder and Tenant shall not be named as an additional insured
        therein.

                (c) Tenant's Property Insurance. Tenant shall maintain insurance
        coverage on all of Tenant's personal property, and Tenant alterations in
        the Premises. Such insurance shall be full replacement cost coverage
        with a deductible not to exceed $1,000 per occurrence. The proceeds from
        such insurance shall be used by Tenant for the replacement of personal
        property or the restoration of Tenant alterations. Tenant shall provide
        Landlord with written evidence that such insurance is in force.

                (d) Insurance Policies. Insurance required hereunder shall be
        with a company duly licensed to transact business in the state where the
        Premises are located, and maintaining during the policy term a "General
        Policyholders Rating" of at least A X (or such other rating as may be

                                       12

<PAGE>   13
        required by a lender having a lien on the Premises) as set forth in the
        most current issue of "Best's Insurance Guide." Tenant shall not permit
        anything which could invalidate the insurance policies referred to
        herein. Tenant shall deliver to Landlord certificates evidencing the
        existence and amounts of insurance required hereunder, listing the
        insureds and loss payable clauses required by this Lease. Such policy
        shall be cancelable or subject to modification only after thirty (30)
        days written notice to Landlord. At least thirty (30) days prior to the
        expiration of such policies, Tenant shall furnish Landlord evidence of
        renewals or "insurance binders" evidencing renewal thereof. In the event
        Tenant fails to do so, Landlord may order such insurance and charge the
        cost thereof to Tenant as Rent.

        29.     WAIVER OF SUBROGATION. Without affecting any other rights or
remedies, Tenant and Landlord each hereby release and relieve each other, and
waive their right to recover damages against the other, for loss of or damage to
the other party's property arising out of or incident to the perils required to
be insured against under Paragraph 28. The effect of such release and waivers of
the right to recover damages shall not be limited by the amount of insurance
carried or required, or by any deductibles applicable thereto.

        30.     WAIVER. No waiver by Landlord of any provision of this Lease or
Landlord's consent to any act shall render unnecessary the obtaining of
Landlord's consent to or waiver of any subsequent act of Tenant or provision of
this Lease. No agreement to accept a surrender of the Premises shall be valid
unless in writing and signed by two (2) officers of Landlord.

        31.     UNAVOIDABLE DELAYS. If Landlord or Tenant (other than as to
Tenant's obligation to pay Rent) shall fail to timely perform any of its
obligations as a result of any labor disputes, inability to obtain labor or
materials, acts of God, governmental restrictions, regulations or controls,
enemy or hostile government action, civil commotion, fire or other casualty, or
any other condition beyond the reasonable control of the party obligated to
perform, then such failure shall not be deemed a breach of this Lease to the
extent of and for the time occasioned by such event. Lack of funds and inability
to procure financing shall not be deemed to be an event beyond the reasonable
control of Tenant. As a condition precedent to either party claiming or relying
upon an unavoidable delay, such party shall give ten (10) days written notice to
the other party of such event.

        32.     SUBORDINATION. This Lease is, unless Landlord shall otherwise
elect, subject and subordinate to all covenants, restrictions, easements and
encumbrances now or hereafter affecting the fee title to the Building and to all
ground and underlying leases and mortgages or financings which may be placed
against or affect the real property of which the Premises forms a part. The term
"mortgages" as used herein shall include trust indentures and deeds of trust. No
further instrument shall be necessary unless required by any such ground or
underlying lessor or mortgagee. Should any ground or underlying lessor or
mortgagee lease and/or mortgage the real property of which the Premises forms a
part, or any part thereof, or should Landlord or any ground or underlying lessor
or mortgagee for any other reason desire confirmation of such subordination,
Tenant shall execute and deliver, without charge, all documents (in form
acceptable to such ground or underlying lessor or mortgagee) subordinating this
Lease and Tenant's rights hereunder within ten (10) days of Landlord's written
request therefor.

        33.     NOTICE TO MORTGAGEE. Tenant shall not exercise any right to
terminate this Lease by reason of constructive or actual eviction, or in the
event of any act or omission by Landlord which would give Tenant the right to
terminate this Lease, until (i) Tenant shall have given written notice of such
act or omission to the holder of any first mortgage to which this Lease is
subject and subordinate (provided the name and address of such holder shall
previously have been furnished to Tenant) and (ii) a reasonable period of time
for remedying such act or omission shall have elapsed following the giving of
such notice, during which Landlord and/or the holder of such mortgage, or their
agents or employees, shall be entitled to enter the Premises and remedy such act
or omission. During the period between the giving of such notice and the
remedying of such act or omission, Rent shall be abated and apportioned to the
extent that any part of the Premises shall be untenantable.

        34.     ATTORNMENT. In the event of a sale, transfer, or assignment of
Landlord's interest in the Building or any part thereof, or in the event of any
proceedings brought for the foreclosure of, or in the event of the exercise of
any power of sale under any mortgage covering the Building or any part thereof,
or in the event of a cancellation or termination of any ground or underlying
lease covering the Building or

                                       13

<PAGE>   14
any part thereof, Tenant will attorn to and recognize such transferee,
purchaser, ground or underlying lessor or mortgagee as Landlord on the terms of
this Lease.

        35.     ESTOPPEL CERTIFICATE.

                (a) Tenant shall, upon not less than ten (10) days' written
        notice from Landlord, execute, acknowledge and deliver to Landlord a
        statement (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)
        and the dates to which Rent has been paid, and (ii) acknowledging that
        there are not, to Tenant's knowledge, any uncured defaults on the part
        of Landlord hereunder, or specifying such defaults, if any.

                (b) Tenant's failure to deliver such statement within ten (10)
        days' of written notice from Landlord shall be conclusive upon Tenant
        (i) that this Lease is in full force and effect, without modification
        except as may be represented by Landlord, (ii) that there are no uncured
        defaults in Landlord's performance, and (iii) that not more than one
        month's rental has been paid in advance.

        36.     INTEREST ON PAST DUE OBLIGATIONS. If Tenant shall fail to pay
any Rent after the same becomes due and payable, including bank drafts returned
unpaid, such unpaid amounts shall bear interest from the due date thereof to the
date of receipt of payment at the lesser of eighteen percent (18%) per annum, or
such other rate as is the highest legal rate of interest chargeable in the state
where the Building is located.

        37.     TRANSFER OF LANDLORD'S INTEREST. In the event of any transfer of
Landlord's interest in the Premises or in the real property of which the
Premises is a part, the transferor shall be automatically relieved of any and
all obligations and liabilities on the part of Landlord accruing from and after
the date of such transfer. In the event Landlord elects to cease operation of
the Building for any reason, Landlord shall provide Tenant with at least ninety
(90) days prior written notice. In the event of such election, Landlord may
terminate this Lease at anytime after said notice period has expired, provided
Landlord ceases to operate the Building for at least six (6) months.

        38.     HOLDING OVER. If Tenant shall hold over beyond the Termination
Date with the consent of Landlord, such holding over shall be construed to be a
month-to-month tenancy, terminable by either party at the end of the month
following at least thirty (30) days' written notice, and shall be subject to all
the terms and conditions of this Lease (so far as same are applicable to a
month-to-month tenancy) except Paragraph 1(i) of the Lease shall be amended to
redefine Base Rent as the amount, payable monthly, in advance, equal to the
greater of (a) one hundred fifty percent (150%) of the monthly installment of
Base Rent or (b) the then prevailing market rental rate for the Building.

        39.     [Intentionally Omitted]

        40.     ACCORD AND SATISFACTION. Payment by Tenant or receipt by
Landlord of a lesser amount than that stipulated herein for Rent shall, at the
option of Landlord, be deemed to be on account of the earliest stipulated Rent
then due. No endorsement or statement on a check or letter accompanying any
check or payment shall be deemed an accord and satisfaction; Landlord may accept
such check or payment without prejudice to Landlord's right to recover the
balance of such Rent or to pursue any other remedy in this Lease or at law.

        41.     ATTORNEYS' FEES. In the event that Landlord should bring suit
for possession of the Premises, for recovery of Rent, or because of the breach
of any provision of this Lease, or in the event that Tenant shall bring any
action for against Landlord arising out of this Lease, then all costs and
expenses, including reasonable attorneys' fees, incurred by the prevailing party
therein shall be paid by the other party.

        42.     FEES OR COMMISSIONS. The parties, warrant and represent that to
the best of their knowledge, other than the Broker defined at Paragraph 1(v)
hereof, there are no claims for broker's commissions or finder's fees in
connection with this Lease, and the misrepresenting party agrees to indemnify
and hold the other harmless from any liability which arises from any such claim.

                                       14

<PAGE>   15
Notwithstanding anything to the contrary, Landlord is responsible for the
broker's commissions or finder's fees in connection with this Lease in
accordance with Paragraph 1(v).

        43.     BUILDING NAME; RELATIONSHIP. Tenant shall not use the name of
the Building for any purpose other than as the address of the business or
profession to be conducted by Tenant in the Premises. Nothing contained in this
Lease shall be deemed to create any relationship other then that of Landlord and
Tenant. Landlord reserves the right to change the name of the Building without
the consent of Tenant and without incurring any liability to Tenant therefor.

        44.     PARTIAL INVALIDITY. If any provision of this Lease shall be held
void or invalid, the remainder of this Lease shall not be affected thereby, and
each provision of this Lease shall be valid and enforced to the fullest extent
permitted by law.

        45.     NOTICES. Every notice to be given under this Lease shall be in
writing and shall be sent by Certified or Registered Mail, postage prepaid,
return receipt requested, or by overnight courier, and shall be addressed: (a)
if to Landlord, to Landlord's Mailing Address, Attention: "Vice President -
Operations", and (b) if to Tenant, to Tenant's Mailing Address. Notice same
shall be deemed given when received or refused by the addressee. Either party
may designate, by written notice to the other party, any other address for
notice purposes. Either party hereto may give the other notice of the need for
emergency repairs by telephone or fax, provided such notice is promptly
confirmed in writing, as set forth above.

        46.     TIME OF ESSENCE. Time is of the essence with respect to the
performance of every provision of this Lease.

        47.     ENTIRE AGREEMENT; MISCELLANEOUS.

                (a) This Lease, the exhibits and addenda, if any, attached
        hereto, contain all of the agreements and understandings between the
        parties.

                (b) All prior conversations or writings between the parties
        hereto or their representatives are merged herein.

                (c) This Lease shall not be modified except in writing signed by
        both parties.

                (d) The submission of this Lease to Tenant prior to Landlord's
        execution shall be deemed solely for Tenant's consideration. Such
        submissions shall have no binding force or effect, shall not constitute
        an option for the leasing of the Premises by Tenant and shall not confer
        any rights or impose any obligations upon either party.

                (e) Any exhibit incorporated into this Lease which is
        inconsistent with any printed provision of this Lease shall supersede
        such printed provision only to the extent of such inconsistency.

                (f) The captions appearing herein are not intended to define,
        limit, or describe the intent of any paragraph.

                (g) Tenant agrees that Landlord may submit a copy of this Lease
        to its lender without obtaining the prior consent of Tenant.

        48.     CORPORATE TENANT. The persons executing this Lease warrant that,
if signing on behalf of a corporation, such corporation is duly organized or
qualified (if foreign) under the laws of, and is authorized to do business in,
the state where the Building is located, and that each such person executing
this Lease is authorized to sign and execute this Lease.

        49.     SUCCESSORS AND ASSIGNS. Except as otherwise provided in this
Lease, all of the conditions, covenants, and agreements of this Lease shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective heirs, personal representatives, successors and assigns. Each
provision of this Lease to be performed by Tenant shall be construed as both a
covenant and a condition,

                                       15

<PAGE>   16
and if Tenant shall be comprised of more than one individual and/or entity, they
shall all be bound, jointly and severally, by the provisions of this Lease.

        50.     ANNUAL FINANCIAL STATEMENT. Tenant agrees to submit to Landlord
within fifteen (15) days of each anniversary of the Commencement Date of this
Lease, a statement setting forth the financial condition of Tenant, and of
Tenant's Guarantor, if applicable. Said statement shall be certified by an
independent certified public accountant.

        51.     [Intentionally Omitted].

        52.     HAZARDOUS MATERIAL. Neither party shall cause or permit any
Hazardous Material, as defined below, to be brought upon, kept, stored,
utilized, disposed of or used in the Building. This restriction shall survive
the termination or expiration of this Lease. The party causing or permitting the
presence of Hazardous Material on the Premises and resulting in contamination of
the Premises or the Building, shall indemnify, defend and hold the other party
harmless from all claims, judgments, damages, penalties, fines, costs,
liabilities or losses (including, without limitation, diminution in value of the
Building, damages for the loss or restriction on use of rentable or usable space
or of any amenity of the Building, damages arising from any adverse impact on
marketing of space in the Building, and sums paid in settlement of claims,
attorneys' fees, consultant fees and expert fees) which arise during or after
the Term as a result of such contamination. This indemnification includes,
without limitation, costs incurred in connection with any investigation of site
conditions, and clean-up, remedial, removal or restoration work required by any
federal, state or local governmental agency or political subdivision. If the
Hazardous Material results in contamination of any part of the Building, the
party causing such contamination shall promptly take all actions at its own
expense as are necessary to remediate, provided that the other party's approval
of such remedial action shall first be obtained.

        The term "Hazardous Material" shall include hazardous or toxic
materials, wastes and substances which are defined, determined or identified as
such pursuant to present and future federal, state or local laws, rules or
regulations and judicial or administrative interpretation thereof. Standard
cleaning and materials and office equipment supplies for use in the normal
course of business shall not be deemed Hazardous Materials hereunder. Upon
reasonable notice, Landlord and its agents shall have the right to inspect the
Premises to determine whether Tenant is in compliance with this paragraph 52.

        53.     [Intentionally Omitted]

        54.     PARKING AND ACCESS. Landlord agrees to provide parking for at
least 4.0 passenger automobiles for each 1,000 square feet of RSF in the
Premises on the Commencement Date for the non-exclusive use of Tenant, other
occupants of the Building, and Tenant's invitees during the Term and any option
terms exercised hereunder, without charge therefor to Tenant other than the Rent
reserved hereunder.

        55.     RIGHT TO TERMINATE AFTER 60TH MONTH OF TERM. Provided that
Tenant is not in default under any of the conditions, covenants, or agreements
of this Lease, Tenant shall have an option, exercisable by written notice to
Landlord no longer than twelve (12) months nor fewer than six (6) months prior
to the expiration of the 60th month of the Term to terminate this Lease. Said
cancellation shall be effective as of the expiration of the 60th month of the
Term on the condition that (a) Tenant pays the unamortized portion of all
brokerage commissions and Tenant's Allowance paid by Landlord with respect to
this Lease (using an interest rate of twelve percent (12%) per annum and a term
of seven (7) calendar years), (b) Tenant pays all Rent and other sums due and
owing by Tenant to Landlord up to and including the date that said cancellation
is effective within twenty (20) days after said sums are demanded by Landlord;
and (c) Tenant executes a written termination agreement in form and substance
satisfactory to Landlord. Tenant agrees that it is liable for, and that said
sums demanded shall include, Rent, utility charges, taxes and assessments, and
Operating Expenses, the amount of which may have not yet been determined by
Landlord as of the date Tenant cancels this Lease, but which Tenant shall remain
liable for to the date of termination notwithstanding any such termination.

        56.     RIGHT OF FIRST REFUSAL. Provided that no event of Default shall
have occurred and be continuing beyond any applicable cure period, and subject
to all prior existing rights and the following

                                       16

<PAGE>   17
terms, in the event that during the term of this Lease Landlord receives a bona
fide offer to lease any space in the Building contiguous to the Premises
(hereinafter referred to as "Right of First Refusal Space"), Tenant shall have a
right of first refusal to lease such Right of First Refusal Space, upon the same
terms and conditions as are contained in any offer to lease such space that
Landlord is willing to accept (the "Offer").

        Tenant shall exercise said right of first refusal by giving Landlord
written notice thereof within ten (10) business days from the date that Tenant
receives written notice from Landlord stating that the terms of such Offer.
Tenant's failure to exercise said right of first refusal with respect to the
Right of First Refusal Space in the manner aforesaid shall be deemed a waiver of
said right of first refusal. In the event Tenant desires to lease the Right of
First Refusal Space, Tenant shall execute a supplement in form and substance
satisfactory to Landlord, confirming the leasing of the Right of First Refusal
Space and setting forth the annual base rent payable for said Right of First
Refusal Space, Tenant's Share applicable with respect thereto, and such other
terms and conditions as Landlord may require. The Right of First Refusal Space
shall be delivered to and leased by Tenant on the terms set forth in the Offer,
and otherwise pursuant to and in accordance with the provisions of this Lease.

        In the event that Tenant shall fail to execute a supplement modifying
this Lease as required hereby within thirty (30) days from the date Tenant
exercises its right of first refusal for said Right of First Refusal Space,
Landlord may execute said agreement on behalf of Tenant pursuant to a power of
attorney granted hereby for that purpose.

        The right of first refusal provided for herein shall be exercisable by
Tenant only and may not be assigned or transferred by operation of law or
otherwise. Tenant may exercise said right of first refusal on the condition that
it is not in default hereunder, and that Tenant has not sublet or assigned all
or any part of the Premises.

        Notwithstanding anything to the contrary, this Right of First Refusal is
subject and subordinate to existing right of first refusal or any other right of
any other tenant in the Building to said Right of First Refusal Space.

        57.     EXTENSION OPTION.

        (a) Tenant shall have the option, exercisable by giving written notice
(each, a "Renewal Notice") to Landlord not less than nine (9) months nor more
than twelve (12) months prior to the expiration of the Initial Term or the first
renewal term of this Lease (as the case may be), to renew and extend this Lease
for two (2) consecutive five-year renewal terms, each on the same terms as this
Lease except that the Base Rent shall be equal to the greater of (i) ninety five
percent (95%) of the Market Rate (as defined below), or (ii) the last year of
the Initial Term or the first renewal term of this Lease (as the case may be)
plus a three percent (3%) increase. Tenant's exercise of any renewal option
shall become irrevocable, subject to the parties' agreement on the Market Rate
for such renewal term, upon Landlord's receipt of the Renewal Notice.

        (b) Within ten (10) business days after Landlord's receipt of the
Renewal Notice, Landlord shall deliver to Tenant its determination of the Market
Rate; and if Tenant agrees with Landlord's determination, Tenant shall execute
an amendment and supplement to lease in form and substance reasonably
satisfactory to Landlord and Tenant, confirming the extension of this Lease and
setting forth the Base Rent payable during such renewal period. If Tenant
disagrees, Landlord and Tenant shall meet and confer at a mutually agreeable
time and place within thirty (30) days after Landlord's receipt of Tenant's
notice of disagreement in order to reach an agreement concerning the Market Rate
for the Premises for the applicable renewal term. If within sixty (60) days
after receipt of the Renewal Notice, Landlord and Tenant are unable to agree on
what Market Rate should be for the renewal term, the Market Rate for such
renewal term shall be determined by the appraisal procedure described in
subparagraph (c) below.

        (c) In the absence of an agreement between Landlord and Tenant on the
Market Rate for any renewal period during the time period specified in
subparagraph (b) above, within ninety (90) days after

                                       17

<PAGE>   18
Landlord's receipt of the Renewal Notice, Landlord and Tenant shall each appoint
an appraiser to determine the Market Rate for such renewal period by giving
written notice to the other party of the name, address and telephone number of
their respective appraisers. Each appraiser must (i) be a commercial leasing
broker for similar buildings in the Denver metropolitan area business district,
(ii) have at least ten years experience in commercial leasing brokerage in the
Denver metropolitan area business district, and (iii) not be affiliated with
Landlord or Tenant. The appraisers shall make their determination as to the
Market Rate for the renewal period within thirty (30) days after their
appointment. If the Market Rate determinations of the two appraisers vary from
each other by no more than 5%, the Market Rate for the renewal term shall be the
average of the two determinations. If the Market Rate determinations of the two
appraisers vary by more than 5%, the appraisers shall promptly select a third
appraiser who meets the qualifications set forth above. Such third appraiser
shall make its determination as to the Market Rate, and the Market Rate for the
renewal term shall be the average of the two appraisals which are closest to
each other. Landlord and Tenant shall share the cost of the third appraiser, but
shall each bear their own costs in connection with the appraiser that each
selects. Landlord and Tenant agree to be bound by the Market Rate as determined
in accordance with the appraisal procedure set forth herein.

        (d) The Market Rate for any renewal period determined by Landlord and
Tenant pursuant to subparagraph (b) above or by the appraisers selected pursuant
to subparagraph (c) above shall be based upon the following criteria:

                (i) There shall be taken into consideration the comparative
                rents of known lease agreements consummated within twelve (12)
                months prior to the applicable Renewal Notice for similar space
                in similar office buildings in the northern metropolitan Denver,
                Colorado area along the Interstate 25 and Interstate 36
                corridors;

                (ii) The value of the Tenant Improvements installed and paid for
                by Tenant shall not be considered; and

                (iii) In determining the Market Rate for the Premises for the
                applicable renewal period, there shall be taken into account the
                comparative rents described in subparagraph (i) above, provided
                that appropriate adjustments shall be made by taking into
                account (1) differences in length of lease terms, (2) the
                location of the Building, (3) the floor level at which the
                Premises is located, (4) the age, quality and amenities of the
                Building, (5) tenant improvement allowances and free rent
                concessions given, and (6) current operating expenses and
                impositions (taxes) for the Building.

        The option provided for herein shall be exercisable by Tenant and
Tenant's permitted assignee only and may not be assigned or transferred by
operation of law or otherwise except to a permitted assignee as part of the
assignment of this Lease. Tenant may exercise each such option on the condition
that it is not in default under the Lease beyond any applicable cure periods,
and that Tenant has not subleased or assigned all or part of the Premises in
violation of the provisions of this Lease.

        58.     SIGNAGE. Tenant may, at its sole cost and expense, provide a
suitable identification sign for inclusion on the Building's monument sign
located at the entrance to the Building on 84th Street, and for installation on
the Building facade above the entrance to the Premises, in either case subject
to and in accordance with Landlord's prior written approval, which shall not be
unreasonably withheld (which may include approval of the design, style, color,
engineering, location, methods of attachment and construction thereof. Tenant
shall maintain any such sign(s) or other installation in good condition and
repair. Other than such permitted sign(s), Tenant shall not place or install or
suffer to be placed or installed or maintain any sign upon or outside the
Premises or in or on the Building. Tenant shall not place or install or suffer
to be placed or installed or maintained on the exterior of the Premises any
awning, canopy, banner, flag, pennant, aerial, antenna of the like except as
otherwise indicated in this Lease; nor shall Tenant place or maintain on the
glass of any exterior window or door of the Premises any sign, decoration,
lettering, advertising matter, shade or blind or other thing of any kind.
Landlord shall have the right, with or without notice to Tenant, to remove any
signs installed by Tenant in violation of this paragraph and to charge

                                       18

<PAGE>   19
Tenant for the cost of such removal and/or any repairs necessitated thereby,
without liability to Tenant for such actions.

        59.     SATELLITE DISHES. Subject to approval by Landlord of plans by
Tenant, Tenant may erect up to two (2) satellite dishes on or near the Premises,
at a cost of $300 per month per satellite dish, in a location approved by
Landlord, to enable the Permitted Use. Said construction, installation and
subsequent maintenance of the satellite dishes shall be at Tenant's sole risk
and cost and in compliance with all applicable laws and ordinances. Tenant
agrees to indemnify and hold harmless Landlord from any injury or damage to
person or property, which may result from the erection or presence of such
satellite dishes. If either or both satellite dishes are installed on the roof
of the Premises or the Building, Tenant agrees to coordinate its work with
Landlord's roofing contractor prior to the commencement of any such work in
order to not void Landlord's roofing warranty. Subject to Landlord's approval,
Tenant shall have reasonable access to relevant portions of the roof for the
purpose of maintaining the satellite dishes.

        60.     EMERGENCY POWER. Subject to approval by Landlord of plans by
Tenant, Tenant may install a generator and diesel tank for supply of emergency
electricity to the Premises in a portion of the parking area designated by
Landlord. Said installation and subsequent maintenance of such generator and
diesel tank shall be at Tenant's sole risk and cost and in compliance with all
applicable laws and ordinances. Tenant agrees to indemnify and hold harmless
Landlord from any injury or damage to person or property which may result from
the installation or presence of such generator and diesel tank.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       19

<PAGE>   20
        IN WITNESS WHEREOF, Landlord and Tenant have executed the Lease, in
triplicate, as of the Date(s) set forth below their respective signatures
hereto.

Signed and acknowledged in the     NORTH VALLEY TECH LLC, a Delaware limited
presence of:                       liability company

-----------------------------
First Witness as to Landlord       By:
                                        -----------------------------------
                                          David Schonberger, Vice President

-----------------------------
Second Witness as to Landlord                                      LANDLORD

                                             Date:
                                                   -----------------

Signed and acknowledged in the     WEBEX COMMUNICATIONS, INC.
presence of:

                                   By:
----------------------------       --------------------------------------
First Witness as to Tenant
                                   And:
                                       ----------------------------------
-----------------------------
Second Witness as to Tenant
                                                                     TENANT

                                             Date:
                                                   -----------------

               THIS LEASE MUST BE BOTH WITNESSED AND ACKNOWLEDGED

        THIS LEASE IS BEING FORWARDED FOR YOUR APPROVAL AND EXECUTION ON THE
        UNDERSTANDING THAT IT SHALL NOT BECOME EFFECTIVE UNTIL IT IS ACCEPTED BY
        LANDLORD AND ITS COUNSEL AND EXECUTED AND DELIVERED BY LANDLORD.

                                  EXHIBIT LIST

<TABLE>
<S>                          <C>
                    A        Floor Plan
                    B        Rules and Regulations
                    C        Landlord's Work
</TABLE>

                                       20

<PAGE>   21
STATE OF NEW YORK     )
                      ) SS:
COUNTY OF NEW YORK    )

        BEFORE ME, A NOTARY PUBLIC in and for said County and State, personally
appeared the above-named NORTH VALLEY TECH LLC, a Delaware limited liability
company, by David Schonberger, its Vice President, personally known to me or who
did furnish satisfactory identification, who being first duly sworn, did upon
oath acknowledge that he did sign the foregoing instrument as such officer on
behalf of said business trust and is duly authorized to do so, and that the same
is the free act and deed of said business trust, and his free act and deed
individually and as such officer.

        IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this
________ day of ____________________________, 2000.

                                    ----------------------------------------
                                    Notary Public
                                    [Seal]
                                    My commission expires:
                                                          ------------------

STATE OF              )
                      )  SS:
COUNTY OF             )

        BEFORE ME, A NOTARY PUBLIC in and for said County and State, personally
appeared the above-named WEBEX COMMUNICATIONS, INC., a Delaware corporation, by
__________________________, its _______________________, and
___________________________, its _______________________, who acknowledged that
they did sign the foregoing instrument and that the same is the free act and
deed of said corporation, and their free act and deed personally and as such
officers.

        IN TESTIMONY WHEREOF, I HAVE HEREUNTO SET my hand and official seal at
_______________________,this _____ day of ________________, 1997.

                                    ----------------------------------------
                                    Notary Public

                                       21

<PAGE>   22
                                    EXHIBIT B

                              RULES AND REGULATIONS

        A.      ADVERTISING AND SIGNS: Unless expressly permitted by Landlord,
no sign, advertisement, notice or other lettering shall be exhibited, inscribed,
painted or affixed on any part of the outside or inside of the Building, except
on the glass or panels of the doors of the Premises, and then only of subject
matter and in such color, size, style and material as shall conform to the
specifications of Landlord. Landlord reserves the right to remove all other
signs or lettering without notice to Tenant, at the expense of Tenant. Any
newspaper, magazine or other advertising done from the said Premises, or
referring to the said Premises, which in the opinion of Landlord is
objectionable shall be immediately discontinued upon notice from Landlord.

        B.      BICYCLE AND ANIMALS: Except as provided in this Lease, no
bicycle or other vehicle and no animal shall be brought or permitted to be in
the Premises or the Building without the prior consent of Landlord.

        C.      CLOSING AND LOCKING DOORS: Unless expressly permitted by
Landlord, all doors to the Premises are to be kept closed at all times except
while in actual use for entrance to or exit from such Premises. Tenant shall be
responsible for the locking of doors and the closing of transoms in and to the
Premises. Any damage resulting from neglect of this rule shall be paid by
Tenant.

        D.      MACHINERY: Landlord's written consent shall be first obtained
for the use or installation of all types of office machinery, generally
described as, but not limited to, machinery equipment, I.B.M. equipment,
refrigeration equipment, heating equipment, air conditioning apparatus, and all
other types of office machine equipment. This clause is not meant to refer to
the use or installation of such equipment as standard adding machines and
typewriters which are used on desks and similar office equipment.

        E.      UNSIGHTLY PLACEMENT OF EQUIPMENT: Unless expressly permitted by
Landlord, Tenant shall not place or allow anything to be against or near the
glass of partitions or doors or windows of the Premises which may diminish the
light in, or be unsightly from, halls or corridors.

        F.      LOCKS: Unless expressly permitted by Landlord, no additional
locks or similar devices shall be attached to any door and no keys other than
those provided by Landlord shall be made for any door. If more than two keys for
one lock are desired by Tenant, Landlord may provide the same upon payment by
Tenant. Upon termination of this Lease or of Tenant's possession, Tenant shall
surrender all keys of the Premises and shall explain to Landlord all combination
locks on safes, cabinets and vaults.

        G.      NOISES AND OTHER NUISANCES: Tenant shall not make or permit any
noise or odor that is objectionable to Landlord or to other occupants of the
Building to emanate from the Premises, and shall not create or maintain a
nuisance therein, and shall not unreasonably disturb, solicit or canvass any
occupant of the Building, and shall not do any act tending to injure the
reputation of the Building.

        H.      OBSTRUCTIONS: Unless expressly permitted by Landlord, Tenant
shall not obstruct, or use for the storage or for any purpose other than ingress
and egress, the sidewalks, entrances, passages, courts, corridors, vestibules,
halls, elevators and stairways of the Building and no floor mats shall be placed
in the corridors by Tenant.

        I.      SAFES OR HEAVY ARTICLES: Tenant shall not overload any floor.
Landlord may direct the routing and placement of safes and other heavy articles.
Safes, furniture and all large articles shall be brought into the Premises or
removed therefrom at such times and in such manner as Landlord shall direct and
at Tenant's sole risk and responsibility.

<PAGE>   23
        J.      TELEPHONE AND TELEGRAPH: No electric wires, telephones,
telegraphs, telegraph call boxes, antennas, aerial wires or other electrical
equipment or apparatus shall be installed inside or outside of the Building
without approval of Landlord.

        K.      NIGHT ENTRY: All persons desiring to enter or leave the Building
between the hours of 6:00 p.m. and 7:00 a.m. from Monday to Friday, inclusive,
and on all legal holidays, and from 1:00 p.m. on Saturday to 7:00 a.m. on the
following Monday, may be required to identify themselves by registration and/or
by other means satisfactory to Landlord and to establish to the satisfaction of
Landlord their right to enter or leave the Building.

        L.      SOLICITORS: Landlord reserves the right, but shall not be held
obligated, to exclude or eject from the Building any or all solicitors,
canvassers or peddlers, and any other class of persons and individuals who
conduct themselves in such a manner as in the judgment of Landlord constitutes
an annoyance to any tenants of the Building or an interference with Landlord's
operation of the Building, or who are otherwise undesirable. Tenant shall
cooperate with Landlord in preventing soliciting and peddling in the Building.

        M.      LIGHT FOR CLEANING: Tenant, at its expense, shall provide
artificial light and electric current for any cleaning, repairs, alterations or
other services in the Premises.

        N.      APPLICATION FOR SERVICES: Tenant shall make application at the
office of the Building for all cleaning, repairing, alteration or special
services. Employees of Landlord shall not perform any work or do anything
outside of the regular duties unless under special instruction from Landlord.

        O.      WINDOWS AND PROJECTIONS: Nothing shall be affixed to or
projected beyond the outside of the Building by Tenant without the proper
written consent of Landlord. If Tenant desires, and Landlord permits, blinds,
shades, awnings, or other form of outside or inside window covering, ventilating
equipment or similar devices, they shall be furnished and installed at the
expense of Tenant and must be of such shape, color, material and make as are
approved by Landlord. Tenant shall not place or permit to be placed any article
of any kind on the window ledges or elsewhere on the exterior walls, and shall
not throw or drop or permit to be thrown or dropped any article from any window
of the Building.

        P.      WEAPONS: Tenant shall not permit its employees, contractors, or
any other person under its control to bring into the Building any firearm or
weapon without first obtaining the written consent of Landlord.

        Q.      ADDITIONAL RULES: Landlord reserves the right to make such other
and further rules and regulations as in its judgment may from time to time be
needed or desired for the safety, care and cleanliness of the Premises and the
Building and for the preservation of good order therein, but shall not impair
the use and enjoyment of the Premises under the other terms and provisions of
the within Lease.

                                       2

<PAGE>   24
                                    EXHIBIT C

                                 LANDLORD'S WORK

1.      Landlord agrees to reinforce portions of the existing floor infill area
        as reasonably designated by Tenant at its sole cost and expense to
        achieve a live loading capacity of 120 pounds per square foot , pursuant
        to and in accordance with the provisions of paragraph 3 hereof
        (collectively, the "Landlord Floor Work").

2.      Landlord agrees to erect a wall at its sole cost and expense in the
        southwest corner of the infill area; said area shall be accessed from
        the outside by means of a door and metal stair.

3.      Landlord agrees to maintain the existence of the present utility
        corridor located to west of the Premises throughout the Term at no cost
        to Tenant.<PAGE>   1
                                                                    EXHIBIT 10.2

                                 LEASE AGREEMENT

        THIS LEASE, made this ____ day of ______________, 2000, between WDCI,
Inc., a Hawaii corporation, hereinafter called Landlord, and WebEx
Communications, Inc., a Delaware corporation, hereinafter called Tenant.

                                   WITNESSETH:

1.      BASIC LEASE TERMS. The following constitutes certain basic terms of this
        Lease as further described in this Lease.

        A.      PREMISES.

                Suite No. 500                                        28,351 s.f.
                Suite No. 310                                         5,962 s.f.
                Total Rentable Square Feet of the Premises           34,313 s.f.
                Total Usable Square Feet of the Premises             32,790 s.f.
                Rentable Square Feet of the Complex                 162,104 s.f.
                Tenant's Approx. Share of Total Rentable Area              21.2%

        B.      PERMITTED USE.

                  General Office
                ----------------------------------------------------------------
                ----------------------------------------------------------------
                ----------------------------------------------------------------

        C.      TERM.

                Total Lease Term                               Sixty (60) months
                Outside Commencement Date                      January 1, 2001

        D.      BASIC RENT.

<TABLE>
<S>                                                                                  <C>
                Month January 1, 2001 to and including Month December 31, 2001       $ 63,479.05 per month
                Month January 1, 2002 to and including Month December 31, 2002       $ 65,194.70 per month
                Month January 1, 2003 to and including Month December 31, 2003       $ 66,910.35 per month
                Month January 1, 2004 to and including Month December 31, 2004       $ 68,626.00 per month
                Month January 1, 2005 to and including Month December 31, 2005       $ 70,341.65 per month
</TABLE>

      E.        DIRECT EXPENSE BASE.  $0.56 per Rentable  sq. ft. per month.

      F.        PREPAID RENT. (SIX (6) MONTH'S RENT) $380,874.30

      G.        SECURITY DEPOSIT.  (FOUR (4) MONTH'S RENT) $253,916.20

      H.        PARKING SPACES.

<TABLE>
<S>                                                                     <C>
                No. of Spaces per 1,000 square feet of usable space     Approx.  4.5 spaces
                                                                              (See Addendum)
</TABLE>
      I.        ADDITIONAL PARAGRAPHS OR ADDENDA.

                Exhibit A - Premises
                Exhibit B - The Complex
                Exhibit C - Environmental Questionnaire
                Rules and Regulations
                Addendum No. One
                Work Agreement Addendum

      J.        OTHER.
                ----------------------------------------------------------------
                ----------------------------------------------------------------
                ----------------------------------------------------------------
                ----------------------------------------------------------------

      Landlord hereby leases to Tenant and Tenant hereby hires and takes from
Landlord those certain premises (the "Premises") outlined in red on Exhibit "A",
attached hereto and incorporated herein by this reference thereto more
particularly described as a portion of that certain building containing the
approximate number of rentable square feet shown in Paragraph 1A located at
Prospect Park Center, 2868 Prospect Park Drive, Rancho Cordova, California. The
suite number of the Premises is shown in Paragraph 1A. The Premises is agreed to
be the number of rentable square feet shown in Paragraph 1A regardless of the
actual size of the Premises. Tenant's leased Premises is estimated to be the
percentage of the total rentable area of the Complex shown in Paragraph 1A.

<PAGE>   2

      The total rentable square feet shall include the Premises and a pro-rata
share of the Common Area (as defined in Paragraph 6 below). Tenant's
proportionate share of Common Areas of the building in which the Premises are
located include, but is not limited to, common restrooms, hallways, atriums,
covered entrances or egresses, exterior smoking/lunch areas and covered loading
areas.

      As used herein the Complex ("Complex") shall mean and include all of the
land described in Exhibit "B", attached hereto, and all of the buildings,
improvements, fixtures and equipment now or hereafter situated on said land.

      This Lease is based upon and subject to the terms, covenants and
conditions hereinafter set forth and Tenant covenants as a material part of the
consideration for this Lease to perform and observe each and all of said terms,
covenants and conditions. This Lease is made upon the conditions of such
performance and observance.

2. USE. Tenant shall use the Premises only in conformance with applicable
governmental laws, regulations, rules and ordinances for the purpose shown in
Paragraph 1B and for no other purpose. Tenant shall not do or permit to be done
in or about the Premises or the Complex nor bring or keep or permit to be
brought or kept in or about the Premises or the Complex anything which is
prohibited by law or will in any way increase the existing rate of (or otherwise
affect) fire or any insurance covering the Premises or the Complex or any part
thereof, or any of its contents, or will cause cancellation of any Insurance
covering the Premises or the Complex or any part thereof, or any of its
contents. Tenant shall not do or permit to be done anything in, on or about the
Premises or the Complex which will in any way obstruct or interfere with the
rights of other tenants or occupants of the Complex or injure or annoy them, or
use or allow the Premises to be used for any improper, immoral, unlawful or
objectionable purpose, nor shall Tenant cause, maintain or permit any nuisance
in, on or about the Premises or the Complex. No sale by auction shall be
permitted on the Complex. Tenant shall not place any loads upon the floors,
walls or ceiling which endanger the structure, or use or store any harmful,
hazardous or toxic fluids or materials or other materials in or about the
Complex to include the drainage system of the building, or overload existing
electrical or other mechanical systems. No waste materials or refuse shall be
dumped or permitted to remain upon any part of the Premises or outside of the
building in which the Premises are a part, except in trash containers placed
inside exterior enclosures designated by Landlord for that purpose or inside of
the building proper where designated by Landlord. Other than where specifically
designated by Landlord, if any, there shall be no smoking anywhere in or
adjacent to the building including the area outside the building entrances. No
materials, supplies, equipment, finished products or semi-finished products, raw
materials or articles of any nature shall be stored upon or permitted to remain
outside the Premises or on any portion of Common Area of the Complex. Tenant
shall not place anything or allow anything to be placed near the glass of any
window, door partition or wall which may appear unsightly from outside the
Premises. No loudspeaker or other device, system or apparatus which can be heard
outside the Premises shall be used in or at the Premises without the prior
written consent of Landlord. Tenant shall not commit or suffer to be committed
any waste in or upon the Premises. Tenant shall indemnify, defend and hold
Landlord harmless against any loss, expense, damage, reasonable attorney's fees,
or liability arising out of the failure of Tenant to comply with the provisions
of this paragraph and any applicable law. Tenant shall comply with any covenant,
condition, or restriction ("CC&R's") affecting the Premises or the Complex. The
provisions of this paragraph are for the benefit of Landlord only and shall not
be construed to be for the benefit of any tenant or occupant of the Complex.

3. TERM.

      A. The term of this Lease shall be for the period shown in Paragraph 1C
and shall commence pursuant to Paragraph 3B below.

      B. The term of this Lease ("Term") shall commence when the first of the
following occurs:

            (a) One day after a Certificate of Occupancy (including a temporary
Certificate of Occupancy) or a signed final building inspection tag is provided
by the proper governmental agency, or, if the governmental agency having
jurisdiction over the area in which the Premises are situated does not issue
either of the above, then the same number of days after certification by
Landlord's architect or contractor that Landlord's construction work, if any,
has been completed; or

            (b) Upon the occupancy of the Premises by any of Tenant's personnel;
or

            (c) The Outside Commencement Date shown in Paragraph 1C ("Outside
Commencement Date").

4. POSSESSION.

      A. DELAY IN DELIVERY. If Landlord, for any reason whatsoever, cannot
deliver possession of said premises to Tenant at the commencement of said Term,
as hereinbefore specified, this Lease shall not be void or voidable; no
obligation of Tenant shall be affected thereby; nor shall Landlord or Landlord's
agents be liable to Tenant for any loss or damage resulting therefrom. The above
is, however, subject to the provision that the period of delay of delivery of
the Premises shall not exceed sixty (60) days from the Outside Commencement Date
(except those delays caused by Tenant, Acts of God, strikes, war, utilities,
governmental bodies, weather, unavailable materials, and delays beyond
Landlord's control shall be excluded in calculating such period) in which
instance Tenant, at its option, may, by written notice to Landlord, delivered
not later than seventy-five days from the Outside Commencement Date, terminate
this Lease.

      B. COMMENCEMENT AND CONFIRMATION. Within ten (10) days of Tenant taking
possession of the Premises, Landlord shall prepare and deliver to Tenant a
Commencement and Confirmation Letter which will specify the date upon which the
Term commenced, the date upon which the obligation to pay Basic Rent and expense
adjustments, if any, commenced, the date upon which the Term shall expire, and
the Monthly Basic Rent and Lease payment, along with an amendment to the Lease
("Amendment") modifying the Lease accordingly.

      Provided Tenant agrees with the information contained in the Commencement
and Confirmation Letter and Amendment, Tenant shall promptly execute and return
the Commencement and Confirmation Letter and Amendment to Landlord. When fully
executed and delivered, the Amendment shall supersede any inconsistent terms
contained in the Lease. If Tenant objects to anything contained in the
Commencement and Confirmation Letter or the Amendment, within ten (10) days of
receipt of the Commencement and Confirmation Letter and Amendment, Tenant shall
provide Landlord with a written statement setting forth the specific basis for
the objection(s). In the event that an informal resolution of the issues in
dispute is not reached, the dispute shall be resolved by Judicial Reference as
provided herein. The parties agree that until a binding determination is
rendered on the issue(s) in dispute, Landlord and Tenant shall proceed including
the payment of Basic Rent and expenses, as if

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<PAGE>   3
Landlord's Commencement and Confirmation Letter and Amendment were accurate and
acceptable. The parties shall thereafter make any adjustments required based
upon the resolution of the dispute.

5. RENT.

      A. BASIC RENT. Tenant agrees to pay to Landlord, monthly, at such place as
Landlord may designate without deduction, offset, prior notice, or demand, and
Landlord agrees to accept as Basic Rent for the leased Premises the total amount
set forth below in lawful money of the United States of America, payable as set
forth in Paragraph 1D. The Prepaid Rent as identified in Section 1F shall be
applied to the first six (6) months of Basic Rent.

      B. TIME FOR PAYMENT. Rent for the term of the Lease is due in advance on
the first day of each calendar month, with a five (5) day grace period for
payment. In the event that the term of this Lease commences on a date other than
the first day of a calendar month, on the date of commencement of the Term
hereof Tenant shall pay to Landlord as rent for the period from such date of
commencement to the first day of the next succeeding calendar month, that
proportion of the monthly rent hereunder which the number of days between such
date of commencement and the first day of the next succeeding calendar month
bears to thirty (30). In the event that the Term of this Lease for any reason
ends on a date other than the last day of a calendar month, on the first day of
the last calendar month of the term hereof Tenant shall pay to Landlord as rent
for the period from said first day of said last calendar month to and including
the last day of the term hereof that proportion of the monthly rent hereunder
which the number of days between said first day of said last calendar month and
the last day of the term hereof bears to thirty (30).

      C. LATE CHARGE. Notwithstanding any other provision of this Lease, if
Tenant is in default in the payment of rent or any other charge as set forth in
this Lease when due, or any part thereof, Tenant agrees to pay to Landlord, in
addition to the delinquent rent due, a late charge for each such payment in
default . Said late charges shall equal ten percent (10%) of the amount of such
payment in default.

      D. EXPENSE ADJUSTMENT.

            (a) For the purposes of this Paragraph 5D, the following terms are
defined as follows:

               (i) LEASE YEAR: Each calendar year constituting any portion of
the Term of this Lease.

              (ii) DIRECT EXPENSE BASE: The amount of the monthly Direct
Expenses (as defined below) which Landlord has utilized in establishing Tenant's
monthly Basic Rent and has included in Basic Rent and agrees to expend as
Landlord's share of operation expenses paid for and sustained is the amount per
rentable square foot per month shown in Paragraph 1E ("Direct Expenses Base").
Said sum shall constitute the maximum payable by Landlord as its contribution
toward the payment of Direct Expenses.

             (iii) DIRECT EXPENSES: For the purposes of this Lease, the term
"Direct Expenses" is defined as all direct costs incurred in the course of
ownership, operation, management, maintenance and repair of the Complex as
determined by standard accounting practices, calculated as billed based on the
assumption that the Complex is at least ninety percent (90%) occupied (excepting
electrical expenses which shall be based on usage or other equitable basis). If
the average occupancy of the Complex is under ninety percent (90%) occupied,
Landlord shall pay one hundred percent (100%) of the expenses relating to the
vacant space up to ninety percent (90%) occupancy. If the Complex occupancy is
at or above ninety percent (90%), Landlord shall bill Tenants for one hundred
percent (100%) of expenses using each Tenant's occupancy percentage to calculate
each Tenant's share of Direct Expenses.

      The following expenses are some but not all of the costs which are Direct
Expenses: (a) expenses of operation, management and maintenance of the Common
Areas of the Complex as set forth in Paragraph 7; (b) expenses of maintenance of
the Premises as set forth in Paragraph 11; (c) utility charges relating to the
Complex as set forth in Paragraph 12; (d) taxes relating to the Complex as set
forth in Paragraph 13; (e) expenses of insurance relating to the Complex as set
forth in Paragraph 16; (f) expenses of compliance as set forth in Paragraph 18;
(g) accounting and legal fees incurred in the Complex's ownership and operation;
and (h) management expenses relating to the operation, management and
maintenance of the Complex, whether managed by Landlord or by a property manager
or company, including employee salaries and benefits, clerical charges,
transportation, vehicle repairs, small tools and supply charges, postage, office
supplies, overtime pay, office overhead and utilities, space charges for on-site
manager's office (if any), and miscellaneous charges. The management expense
specified above is included in the Direct Expenses Base, and Landlord shall not
be required to keep separate records of management expenses for Tenant's leased
Premises.

            (b) In any Lease Year from and after 2002, if the actual Direct
Expenses paid or incurred by Landlord (expressed on a per month rentable square
foot basis) exceeds the Direct Expense Base, then Tenant shall pay Tenant's
share of such increased amount to Landlord as Additional Rent. Tenant shall not
be responsible to pay any increases in Direct Expenses for the 2001 Lease Year.
Landlord shall give to Tenant a statement of the Additional Rent payable by
Tenant hereunder which shall be due and payable within ten (10) of receipt. In
addition, Landlord may at or after the start of any Lease Year from and after
2002 notify Tenant of the amount which Landlord estimates will be Tenant's
monthly share of increased Direct Expenses for such Lease Year. For each
subsequent month, Tenant shall pay to Landlord monthly, in advance, one-twelfth
(1/12) of Landlord's estimate of the amount by which Direct Expenses for that
Lease Year shall exceed the Direct Expense Base. If, at the beginning of a Lease
Year, said Landlord's estimate is not available prior to the commencement of the
Lease Year, Tenant's payments to Landlord hereunder shall accrue and such
accrual shall become payable the month following receipt by Tenant of said
Landlord's estimate, and further payments shall be made monthly thereafter. At
the end of each Lease Year, said Landlord's estimate shall be reconciled as
compared to Landlord's actual Direct Expenses, with Tenant paying to Landlord,
within thirty (30) days of demand, any amount of actual Direct Expenses expended
by Landlord in excess of said Landlord's estimate, or Landlord, at its option,
crediting or refunding to Tenant (providing Tenant is not in default in the
performance of any of the terms, covenants and conditions of this Lease) any
amount of estimated payments made by Tenant in excess of Landlord's actual
Direct Expenses.

            (c) The respective obligations of Landlord and Tenant under this
paragraph shall survive the expiration or other termination of the term of this
Lease, even though the Tenant has vacated the premises, and when Landlord makes
the final determination of Tenant's percentage of Direct Expenses for the year
in which this Lease terminates, prorated in the proportion which the number of
days in such

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<PAGE>   4

calendar year preceding termination bears to 365, Tenant shall pay to Landlord,
within fifteen (15) days of demand, any amount of actual Direct Expenses
expended by Landlord in excess of said Landlord's estimate, or Landlord shall
refund to Tenant within fifteen (15) days any amount of estimated payments made
by Tenant in excess of Landlord's actual Direct Expenses.

      All charges, costs and expenses which Tenant is required to pay hereunder,
together with all interest and penalties, costs and expenses including
reasonable attorney's fees and legal expenses that may accrue thereto in the
event of Tenant's failure to pay such amounts, and all damages, reasonable costs
and expenses which Landlord may incur by reason of default of Tenant or failure
on Tenant's part to comply with the terms of this Lease shall be considered as
Additional Rent, and in the event of nonpayment by Tenant, Landlord shall have
all the rights and remedies with respect thereto as Landlord has for nonpayment
of rent.

            (d) The annual statement of increased Direct Expenses shall be made
by or verified by an accounting or auditing officer of Landlord. Within sixty
(60) days after receipt of the statement, Tenant shall be entitled, upon five
(5) days prior written notice and during normal business hours, at Landlord's
office or such other place as Landlord shall designate, to inspect and examine
those books and records of Landlord relating to the Direct Expenses for the
immediately preceding calendar year. Failure of Tenant to request such
inspection within sixty (60) days from receipt of the statement shall render
such statement conclusive and binding on Tenant.

                  Notwithstanding anything contained in this Paragraph 5D, the
monthly rental payable by Tenant shall in no event be less than the Basic Rent
set forth in Paragraphs 1D and 5A of this Lease.

      E. EXCLUSIONS FROM DIRECT EXPENSES. Exclusions from Direct Expenses shall
include Landlord's debt repayments, expenses directly or indirectly incurred by
Landlord solely for the benefit of any other tenant, cost of attracting tenants,
interest, leasing commissions, expenses incurred in construction of interior
improvements or otherwise in improving or decorating space solely for other
tenants or other occupants of vacant space; Landlord's cost of electricity and
other services sold or provided to tenants in the building for which Landlord is
reimbursed as a separate additional charge; depreciation of the building and
associated improvements; all items and services for which Tenant pays directly
to a third party; and costs of special services rendered to individual tenants
for which a special charge is made to that Tenant.

      F. PREPAID RENT. Upon the execution of this Lease, Tenant shall pay to
Landlord Prepaid Rent in the sum of amount shown in Paragraph 1F and if Tenant
is not in default of any provisions of this Lease, the Prepaid Rent shall be
applied toward the Basic Rent due for the first month of the term. In the event
Landlord does not accept this Lease, Landlord shall return said Prepaid Rent. If
any excess rent shall remain after the above amount is applied to the first
month's rental, such excess shall be applied to subsequent monthly installments
of annual Basic Rent until such Prepaid Rent is exhausted.

      G. PLACE OF PAYMENT OF RENT AND ADDITIONAL RENT. All Basic Rent and
Additional Rent and all other payments required hereunder shall be paid to
Landlord at the office of Landlord's agent at 2868 Prospect Park Drive, Suite
300, Rancho Cordova, CA 95670 or to such other person or to such other place as
Landlord may from time to time designate in writing.

      H. SECURITY DEPOSIT. Concurrently with Tenant's execution of this Lease,
Tenant shall deposit with Landlord the sum shown in Paragraph 1G. Said sum shall
be held by Landlord as a Security Deposit ("Deposit") for the faithful
performance by Tenant of all of the terms, covenants, and conditions of this
Lease to be kept and performed by Tenant during the term hereof. If Tenant
defaults with respect to any provision of this Lease, including, but not limited
to, the provisions relating to the payment of rent and any of the monetary sums
due herewith, Landlord may (but shall not be required to) use, apply or retain
all or any part of this Deposit for the payment of any other amount which
Landlord may spend by reason of Tenant's default or to compensate Landlord for
any other loss or damage which Landlord may suffer by reason of Tenant's
default. If any portion of said Deposit is so used or applied, Tenant shall,
within ten (10) days after written demand therefor, deposit cash with Landlord
in the amount sufficient to restore the Deposit to its original amount. Tenant's
failure to do so shall be a material breach of this Lease. Landlord shall not be
required to keep this Security Deposit separate from its general funds, and
Tenant shall not be entitled to interest on such Deposit. If Tenant fully and
faithfully performs every provision of this Lease to be performed by it, the
Deposit or any balance thereof shall be returned to Tenant (or at Landlord's
option, to the last assignee of Tenant's interest hereunder) at the expiration
of the Lease term and after Tenant has vacated the Premises. In the event of
termination of Landlord's interest in this Lease, Landlord shall transfer said
Deposit to Landlord's successor in interest whereupon Tenant agrees to release
Landlord from liability for the return of such Deposit or the accounting
therefor.

6. RULES AND REGULATIONS AND COMMON AREA. Subject to the terms and conditions of
this Lease and such Rules and Regulations as Landlord may from time to time
prescribe, Tenant and Tenant's employees, invitees and customers shall, in
common with other occupants of the Complex in which the Premises are located,
and their respective employees, invitees and customers, and others entitled to
the use thereof, have the nonexclusive right to use the access roads, parking
areas, lobby, hallways, restrooms, stairways and such other facilities provided
and designated by Landlord for the general use and convenience of the occupants
of the Complex in which the Premises are located. All areas in the Complex,
other than the Premises and the premises leased or available to lease to other
tenants shall be referred to herein as "Common Area". Tenant's right to use the
Common Area shall terminate upon the termination of the Lease. Landlord reserves
the right to promulgate such reasonable rules and regulations relating to the
use of the Common Area, and any part or parts thereof, as Landlord may deem
appropriate for the best interests of the occupants of the Complex. The Rules
and Regulations shall be binding upon Tenant upon delivery of a copy of them to
Tenant, and Tenant shall abide by them and cooperate in their observance. Such
Rules and Regulations may be amended by Landlord from time to time, with or
without advance notice, and all amendments shall be effective upon delivery of a
copy to Tenant. Landlord shall not be responsible to Tenant for the
non-performance by any other tenant or occupant of the Complex of any of said
Rules and Regulations. Tenant shall notify Landlord of any items in the Common
Area which require repair or replacement.

      Landlord reserves the right at any time to change the shape, size,
location, and extent of the Common Area, including but not limited to, the
arrangement or location of entrances or passageways, doors and doorways,
corridors, elevators, stairs, restrooms or other public parts of the Complex and
to change the name, number or designation by which the Complex is commonly
known, and none of the foregoing shall be deemed an actual or constructive
eviction of Tenant, or shall entitle Tenant to any reduction of rent hereunder.

7. EXPENSES OF OPERATION, MANAGEMENT AND MAINTENANCE OF THE COMMON AREAS OF THE
COMPLEX. Landlord shall operate, manage and maintain the Common Area. Expenses
of operation, management, maintenance and repair of the Common

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<PAGE>   5

Areas which are Direct Expenses include, but are not limited to, (1) license,
permit, and inspection fees; (2) security (if provided); (3) utility charges
including, but not limited to, water, gas, electricity, sewer service and waste
pickup; (4) all charges incurred in the maintenance of landscaped areas, ponds,
fountains, waterways, parking lots, sidewalks and driveways; (5) the cost of
operation, maintenance, and repair of the interior of the Common Area (including
lobbies, restrooms, janitor's closets, hallways, elevators, mechanical and
telephone rooms, stairwells, entrances, spaces above the ceilings, ceilings,
building exterior doors, skylights (if any), fire extinguishing systems)
including janitorial service for said Common Area; (6) the cost of operation,
maintenance, repair and replacement of the Common Area windows, window frames,
plate glass, glazing, truck doors, main plumbing systems (such as water and
drain lines, sinks, toilets, faucets, drains, showers and water fountains), main
electrical systems (such as panels, conduits, outlets, lighting fixtures, lamps,
bulbs, tubes and ballasts), main heating and air conditioning systems (such as
compressors, fans, air handlers, ducts, mixing boxes, thermostats, time clocks,
boilers, heaters, supply and return grills), store fronts, roofs, downspouts;
mechanical and structural elements, including structural roofing and exterior
surfaces to the buildings; (7) repairing and replacing non-structural roofing;
(8) the cost of repairing or replacing window coverings provided by Landlord,
carpeting, flooring materials, wall coverings, partitioning and other
furnishings in Common Areas which, as a result of normal use, require periodic
replacement; (9) supplies; (10) materials; (11) equipment and tools; (12) sales,
use and excise taxes on goods and services purchased by Landlord; (13) the cost
of capital expenditures which have the effect of reducing operating expenses,
provided, however, that in the event Landlord makes such capital improvements,
and if the capital improvement is less than One Dollar ($1.00) per rentable
square foot of the Complex, the cost will be allocated per Paragraph 5D, and
that in the event the cost is in excess of One Dollar ($1.00) per rentable
square foot of the Complex, Landlord shall amortize its investment in said
improvements (together with interest at the Prime Rate (as defined in Section 10
below) on the date the costs are incurred plus three percent (3%)) as an
operating expense in accordance with standard accounting practices, provided,
that such amortization is not at a rate greater than the anticipated savings in
the operating expenses; and (14) any other expense or charge, whether or not
hereinbefore described which in accordance with generally accepted accounting
and management practices would be considered an expense of managing, operating,
maintaining and repairing the Complex.

      In the event any of the above maintenance responsibilities cannot be
segregated from any other tenant(s) of Landlord where there is common usage with
other tenant(s), such maintenance responsibilities and charges shall be
allocated to the leased Premises by square footage or other equitable basis as
calculated and determined by Landlord.

      The manner in which the Common Area is maintained shall be at the sole
discretion of Landlord. In the event Landlord contracts with or hires a third
party to perform Common Area maintenance, Tenant acknowledges and agrees that
the amount paid to the third party is a proper and reasonable amount to be
charged for that item or service.

8. PARKING. Tenant shall have the right to use with other tenants or occupants
of the Complex the number of parking spaces per one thousand (1,000) usable
square feet leased to Tenant shown in Paragraph 1H in the common parking areas
of the Complex. Except for maintenance of the parking lot provided for herein,
parking shall be free to Tenant throughout the initial lease term unless charges
are imposed by any governmental agency having jurisdiction over the property.
Tenant agrees, that Tenant, Tenant's employees, agents, representatives and/or
invitees shall not use parking spaces in excess of the number of spaces
allocated to Tenant hereunder. Landlord shall have the right, at Landlord's
reasonable sole discretion, to specifically designate the location of Tenant's
parking spaces within the common parking areas of the Complex in the event of a
dispute among the tenants occupying the building and/or Complex referred to
herein, in which event Tenant agrees that Tenant, Tenant's employees, agents,
representatives and/or invitees shall not use any parking spaces other than
those parking spaces specifically designated by Landlord for to Tenant's use.
Said parking spaces, if specifically designated by Landlord to Tenant, may be
relocated by Landlord at any time, and from time to time. Landlord reserves the
right, at Landlord's reasonable sole discretion, to rescind any specific
designation of parking spaces, thereby returning Tenant's parking spaces to the
common parking area. Landlord shall give Tenant written notice of any change in
Tenant's parking spaces. Tenant shall not, at any time, park or permit to be
parked, any trucks or vehicles adjacent to the loading areas so as to interfere
in any way with the use of such areas, nor shall Tenant at any time park, or
permit the parking of Tenant's trucks or other vehicles or the trucks and
vehicles of Tenant's suppliers or others, in any portion of the Common Area not
designated by Landlord for such use by Tenant. Tenant shall not park nor permit
to be parked, any inoperative vehicles or equipment on any portion of the common
parking area or other common areas of the Complex. Tenant agrees to assume
responsibility for compliance by its employees and invitees with the parking
provisions contained herein. Tenant shall use the parking areas for vehicle
parking only, and shall not use the parking areas for storage.

9. ACCEPTANCE AND SURRENDER OF PREMISES. By entry hereunder, Tenant accepts the
Premises as being in good and sanitary order, condition and repair and accepts
the building and improvements included in the Premises in their condition on the
date of signing Lease and without representation or warranty by Landlord as to
the condition of such building or as to the use or occupancy which may be made
thereof. In the event Landlord constructs improvements for Tenant prior to
occupancy as part of this Lease, Landlord and Tenant shall prepare a punch list
within fifteen (15) days of occupancy which items shall be corrected within
thirty (30) days of submission of the punch list to Landlord. In the event that
any item(s) in the punch list cannot be corrected within thirty (30) days, it
shall be sufficient that Landlord has commenced correction of such item(s)
within the thirty (30) day period. Any exceptions to the foregoing must be by
written agreement executed by Landlord and Tenant. Tenant agrees on the last day
of the Lease Term, or on the sooner termination of this Lease, to surrender the
Premises promptly and peaceably to Landlord in at least as good condition and
repair as when Tenant commenced occupancy of the Premises, except normal wear
and tear and in accordance with the standards set forth in Paragraph 11 below.
Upon termination of the Lease and Tenant's surrendering the Premises, Landlord
may, at Tenant's expense, cause the Premises to meet the standards set forth in
Paragraph 11.

      Any alterations, additions, or improvements made in, to, or on the
Premises (except moveable trade fixtures installed at the expense of Tenant)
shall be removed at Tenant's sole expense prior to termination of the Lease Term
except that Tenant shall ascertain from Landlord not less than thirty (30) days
before the end of the Term whether Landlord desires to have the Premises or any
part or parts thereof restored to their condition and configuration as when the
Premises were delivered to Tenant and if Landlord shall so desire, then Tenant
shall restore (including repairing any damage caused during the Lease Term or by
the removal of Tenant's personal property or trade fixtures) said Premises or
such part or parts before the end of this Lease at Tenant's sole cost and
expense. Tenant, on or before the end of the Term or sooner termination of this
Lease, shall remove all of Tenant's personal property and trade fixtures from
the Premises, and all property not so removed on or before the end of the term
or sooner termination of this Lease shall be deemed abandoned by Tenant and
title to same shall thereupon pass to Landlord without compensation to Tenant.
Landlord may, upon termination of this Lease, remove all moveable furniture and
equipment so abandoned by Tenant, at Tenant's sole cost, and repair any damage
caused by such removal at Tenant's sole cost. If the Premises are not
surrendered at the end of the term or sooner termination of this Lease, Tenant
shall be treated as a holdover pursuant to Paragraph 30 below. and Tenant agrees
to indemnify, defend and hold Landlord harmless against loss or liability
resulting from the delay by Tenant in so surrendering the Premises including,
without

                                       5
<PAGE>   6

limitation, any claims made by any succeeding tenant founded on such delay.
Nothing contained herein shall be construed as an extension of the Term hereof
or as a consent of Landlord to any holding over by Tenant. The voluntary or
other surrender of this Lease or the Premises by Tenant or a mutual cancellation
of this Lease shall not work as a merger and, at the option of Landlord, shall
either terminate all or any existing subleases or subtenancies or operate as an
assignment to Landlord of all or any such subleases or subtenancies.

10. ALTERATIONS AND ADDITIONS. Tenant shall not make, or suffer to be made, any
alteration or addition to the Premises, or any part thereof, without the written
consent of Landlord first had and obtained by Tenant. Landlord agrees that such
consent shall not be unreasonably withheld. However, Landlord may withhold its
consent in its sole discretion if any proposed alteration will affect the
structural integrity or safety of the building, or its electrical, plumbing,
heating/ventilation/air-conditioning, mechanical or life safety systems. Tenant
shall furnish complete plans and specifications for the desired alterations.
Tenant shall pay to Landlord, upon demand, a review fee in the amount of the
actual cost incurred by Landlord for such review, four percent (4%) of the first
$50,000 of construction cost of alterations and two percent (2%) of the balance
of the construction cost of alterations to compensate Landlord for the cost of
review and approval of the plans and specifications, and for additional
administrative costs incurred in monitoring the construction of the alterations.
Landlord reserves the right to approve all contractors, laborers, materialmen
and suppliers proposed by Tenant to make such alterations and additions. Tenant
shall retain title to all moveable furniture and trade fixtures placed in the
Premises. All heating, lighting, electrical, air conditioning, partitioning,
draperies, carpeting, and floor installations made by Tenant, together with all
property that has become an integral part of the Premises, shall not be deemed
trade fixtures but shall become the property of Landlord immediately upon
construction or installation and may not be removed by Tenant. Tenant agrees
that it will not proceed to make such alteration or additions, without having
obtained written consent from Landlord to do so, which shall not be unreasonably
withheld and until five (5) days from the receipt of such consent, in order that
Landlord may post appropriate notices to avoid any liability to contractors,
laborers, materialmen or suppliers for payment for Tenant's improvements.
Subsequent to obtaining Landlord's written consent and prior to commencement of
construction of the alterations, Tenant shall deliver to Landlord a copy of the
building permit. Tenant will at all times permit such notices to be posted and
to remain posted until the completion of work. Tenant shall, if required by
Landlord, secure at Tenant's own cost and expense, a completion and lien
indemnity bond, satisfactory to Landlord, for such work. Tenant further
covenants and agrees that any mechanic's lien, stop notice or other lien filed
against the Premises or against the Complex for work claimed to have been done
for, or materials claimed to have been furnished to Tenant, will be discharged
by Tenant, by bond or otherwise, within ten (10) days after the filing thereof,
at the sole cost and expense of Tenant. Any exceptions to the foregoing must be
made in writing and executed by both Landlord and Tenant.

11. MAINTENANCE OF PREMISES. Landlord shall, at its expense subject to
reimbursement according to Paragraph 5D, keep and maintain the Premises in a
good standard of maintenance and repair. Landlord's maintenance and repair
responsibilities herein referred to include janitorial service (as reasonably
determined by Landlord), plumbing systems within the Premises, electrical
systems within the Premises, interior improvements within the Premises
(including replacement of burned out or broken light bulbs or ballasts,
maintaining all interior walls painted, or cleaned so that they appear freshly
painted, and repaired and replaced, if damaged; all floors cleaned and waxed;
all carpets cleaned and shampooed; all broken, marred or nonconforming
acoustical ceiling tiles replaced; all interior windows washed; the air
conditioning and heating systems serviced by a reputable and licensed service
firm and in good operating condition and repair), and heating and air
conditioning controls within the Premises. Tenant agrees to provide and use
carpet mats (of a type which allow air circulation under the mat) under all
rolling chairs or to otherwise be responsible for wear and tear of the carpet
caused by such rolling chairs if such wear and tear exceeds that caused by
normal foot traffic in surrounding areas. Areas of excessive wear shall be
replaced at Tenant's sole expense upon Lease termination. Tenant hereby waives
all rights to terminate the Lease, to require Landlord to put Premises in a
condition suitable for Tenant, and/or to make repairs and deduct the amount of
the repair from rent due under Lease, which rights are more specifically set
forth in subsection 1 of Section 1932 and Sections 1941 and 1942 of the
California Civil Code and under any similar law, statute or ordinance now or
hereafter in effect.

12. UTILITIES. Utility charges include and are limited to all charges for water,
gas, electricity, sewer service and waste pick-up.

        Landlord shall not be liable for any failure to provide access to the
Premises, to assure the beneficial use of the Premises, or to furnish any
services or utilities when such failure is caused by natural occurrences, riots,
civil disturbances, insurrection, war, court order, public enemy, accidents,
breakage, strikes, lockouts, or other labor disputes, the making of or delays in
repairs, alterations or improvements to the Premises or the Complex, the
inability to obtain an adequate supply of fuel, gas, steam, water, electricity,
labor, or other supplies or by any other condition beyond Landlord's reasonable
control, and Tenant shall not be entitled to any damages resulting from such
failure, nor shall such failure relieve Tenant of the obligation to pay all sums
due hereunder or be construed as a constructive or other eviction of Tenant. If
any governmental entity promulgates or revises any statute, ordinance, or
building code, fire or other code, or imposes mandatory or voluntary controls or
guidelines on Landlord or the building or any part thereof, relating to the use
or conservation of energy water, gas, steam, light or electricity or the
provision of any other utility or service provided with respect to this Lease,
or if Landlord is required or elects to make alterations to the Building in
order to comply with such mandatory or voluntary controls or guidelines,
Landlord may, in its sole discretion, comply with such mandatory or voluntary
controls or guidelines or make such alterations to the Building.

      Provided that Tenant is not in default in the performance or observance of
any of the terms, covenants or conditions of this Lease to be performed or
observed by it, Landlord shall furnish to the Premises between the hours of 7:00
a.m. and 5:00 p.m., Mondays through Fridays (holidays excepted) and subject to
the rules and regulations of the Complex hereinbefore referred to, reasonable
quantities of water, gas and electricity suitable for the intended use of the
Premises and heat and air conditioning required in Landlord's judgment for the
comfortable use and occupation of the Premises for such purposes. Tenant agrees
that at all times it will cooperate fully with Landlord and abide by all
regulations and requirements that Landlord may prescribe for the proper
functioning and protection of the building heating, ventilating and air
conditioning systems. Whenever heat generating machines, equipment, or any other
devices (including exhaust fans) are used in the Premises by Tenant which affect
the temperature otherwise maintained by the air conditioning system, Landlord
shall have the right to install supplementary air conditioning units in Premises
and the cost thereof, including the cost of installation and the cost of
operation and maintenance thereof, shall be paid by Tenant to Landlord upon
demand by Landlord. Tenant will not, without the written consent of Landlord
which shall not be unreasonably withheld, use any apparatus or device in the
Premises, including, without limitation, electronic data processing machines or
machines using current in excess of 220 Volts which will in any way increase the
amount of electricity, gas, water or air conditioning usually furnished or
supplied to Premises being used as general office space, or connect with the
electric current (except through existing electrical outlets in the Premises),
or connect to gas or water pipes any apparatus or device for the purposes of
using electric current, gas, or water. If Tenant shall require water, gas, or
electric current in excess of that usually furnished or supplied to Premises
being used as general office space, Tenant shall first obtain the written
consent of Landlord, which consent shall not be unreasonably withheld and
Landlord may, at its option,

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<PAGE>   7

cause an electric current, gas, or water meter to be installed in the Premises
in order to measure the amount of electric current, gas or water consumed for
any such excess use. The cost of any such meter and of the installation,
maintenance and repair thereof as well as all charges for such excess water, gas
and electric current consumed (as determined by meter, hourly rate or other
reasonable basis and at the rates then charged by the furnishing public
utility); and any additional expense incurred by Landlord in keeping account of
electric current, gas, or water so consumed shall be paid by Tenant, and Tenant
agrees to pay Landlord therefor promptly upon demand by Landlord. In the event
of Tenant's monetary default, which default is not cured within the applicable
time allowed, Landlord shall have the right to terminate utilities to the
Premises.

      In the event any of the utility charges cannot be segregated from other
tenant(s) of Landlord or where there is common usage with other tenant(s), such
charges shall be allocated to the leased Premises by square footage, metered
usage or other equitable basis as calculated and determined by Landlord.

13. TAXES.

      A. REAL PROPERTY TAXES. The term "Real Property Taxes", as used in this
Lease, shall mean (i) all taxes, assessments, levies and other charges of any
kind or nature whatsoever, general and special, foreseen and unforeseen
(including all installments 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 of the Complex
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 against, or with respect to the value, occupancy or
use of, all or any portion of the Complex (as now constructed or as may at any
time hereafter be constructed, altered, or otherwise changed) or Landlord's
interest therein) any improvements located within the Complex (regardless of
ownership); the fixtures, equipment and other property of Landlord, real or
personal, that are an integral part of and located in the Complex; or parking
areas, public utilities, or energy within the Complex; (ii) all charges, levies
or fees imposed by reason of environmental regulation or other governmental
control of the Complex; and (iii) all costs and fees (including reasonable
attorneys' fees) incurred by Landlord in reasonably contesting any Real Property
Tax and in negotiating with public authorities as to any Real Property Tax. If
at any time during the term of this Lease the taxation or assessment of the
Complex prevailing as of the commencement date of this Lease shall be altered so
that in lieu of or in addition to any Real Property Tax described above there
shall be levied, assessed 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 or additional tax or charge (i) on the value, use or
occupancy of the Complex or Landlord's interest therein or (ii) on or measured
by the gross receipts, income or rentals from the Complex, on Landlord's
business of leasing the Complex, or computed in any manner with respect to the
operation of the Complex, then any such tax or charge, however designated, shall
be included within the meaning of the term "Real Property Taxes" for purposes of
this Lease. If any Real Property Tax is based upon property or rents unrelated
to the Complex, then only that part of such Real Property Tax is fairly
allocable to the Complex shall be included within the meaning of the term "Real
Property Taxes". Notwithstanding the foregoing, the term "Real Property Taxes"
shall not include estate, inheritance, gift or franchise taxes of Landlord or
the federal or state net income tax imposed on Landlord's income from all
sources. If any portion of the Real Property Tax is based upon excess assessed
valuation of interior improvements in the Premises (or other premises for the
exclusive use of tenants in the Complex) that are deemed to be taxes levied
against personal property of Tenant (or such other tenants) governed by the
provisions of 13B(a) below, then such portion shall not be included within the
meaning of the term "Real Property Taxes."

      B. TAXES ON TENANT'S PROPERTY. (a) Tenant shall be liable for and shall
pay ten (10) days before delinquency, all taxes levied against any personal
property or trade fixtures placed by Tenant in or about the Premises. If any
such taxes on Tenant's personal property or trade fixtures are levied against
Landlord or Landlord's property or if the assessed value of the Premises is
increased by the inclusion therein of a value placed upon such personal property
or trade fixtures of Tenant and if Landlord, pays the taxes based on such
increased assessment, which Landlord shall have the right to do regardless of
the validity thereof, Tenant shall within ten (10) days of demand repay to
Landlord the taxes so levied against Landlord, or the proportion of such taxes
resulting from such increase in the assessment; provided that in any such event
Tenant shall have the right, in the name of Landlord and with Landlord's full
cooperation, to bring suit in any court of competent jurisdiction to recover the
amount of such taxes so paid under protest, and any amount so recovered shall
belong to Tenant.

            (b) If the interior improvements in the Premises, whether installed,
and/or paid for by Landlord or Tenant and whether or not affixed to the real
property so as to become a part thereof, are assessed for Real Property Tax
purposes at a valuation higher than the valuation at which standard office
improvements in other space in the Complex are assessed, then the Real Property
Taxes and assessments levied against Landlord or the Complex by reason of such
excess assessed valuation shall be deemed to be taxes levied against personal
property of Tenant and shall be governed by the provisions of 13B(a) above. If
the records of the County Assessor are available and sufficiently detailed to
serve as a basis for determining whether said interior improvements are assessed
at a higher valuation than standard office improvements in other space in the
Complex, such records shall be binding on both the Landlord and the Tenant. If
the records of the County Assessor are not available or sufficiently detailed to
serve as a basis for making said determination, the actual cost of construction
shall be used.

14. LANDLORD'S INSURANCE. At all times during the term of this Lease, Landlord
will purchase and maintain, as part of Direct Expenses, Commercial Property
Insurance covering the Complex and Landlord's equipment and furnishings in such
reasonable amounts and with such reasonable coverages as determined by Landlord.
Tenant acknowledges that it shall not be a named insured on such policies and
that it has no right to receive any proceeds from any such insurance policies
carried by Landlord. Tenant further acknowledges that Landlord shall not be
required to carry (but shall have the right, in its sole discretion, and as a
Direct Expense, to carry) insurance covering (1) Tenant's property described in
paragraph 15 below; (2) Business Income Insurance against, or be responsible
for, any loss suffered by Landlord or Tenant due to interruption of Tenant's
business from any cause; (3) loss to the Complex resulting from Flood,
Earthquake, Windstorm or Hurricane; and (4) any other type of property or loss.
Tenant shall cooperate with Landlord's insurance companies in the adjustment of
any claims for any damage to the Complex.

15. TENANT'S INSURANCE. At all times during the term of this Lease, Tenant will
purchase and maintain, at Tenant's sole expense, the following insurance, in
amounts not less than those specified below or such other amounts as Landlord
may from time-to-time reasonably request, with insurance companies and on forms
satisfactory to Landlord.

      A. LIABILITY INSURANCE. Commercial General Liability Insurance written on
an "occurrence" form covering the use, occupancy and maintenance of the demised
Premises and all operations of the Tenant including: a) Premises Operations; b)
Independent Contractors;

                                       7
<PAGE>   8

c) Products - Completed Operations; d) Broad Form Property Damage; e) Blanket
Contractual Liability; f) Personal and Advertising Injury; g) Fire Legal
Liability; and h) Employees Named as Additional Insureds.

      Limits for such coverage shall be:

      Bodily Injury and Property Damage Combined Single Limit

      $1,000,000 per Occurrence
      $2,000,000 General Aggregate
      $2,000,000 Products and Completed Operations Aggregate

      Personal and Advertising Injury

      $1,000,000 per Person/Organization
                subject to
      $2,000,000 General Aggregate

      Fire Legal Liability

      $500,000 Any One Fire
                subject to
      $2,000,000 General Aggregate

      The policy shall further contain a provision that the General Aggregate
limit applies exclusively to Tenant's Premises.

      The policy shall contain an endorsement specifically naming the following
as additional insureds: Alexander & Baldwin, Inc. and A&B Properties, Inc. and
all of their officers and employees, with respect to the Tenant's use, occupancy
or maintenance of the Premises.

      The policy shall also contain an endorsement amending the "Other
Insurance" clause as follows:

            "The insurance afforded to Additional Insureds under this policy is
            primary insurance and the insurer will not seek contribution from
            other insurance available to the Additional Insureds."

            The policy shall contain a waiver of subrogation endorsement which
            specifically states:

            "The insurer waives any right of recovery they may have against
            Alexander & Baldwin, Inc., and A&B Properties, Inc., as Landlord,
            and all of their respective officers and employees, because of
            payments made under this policy."

      B. AUTOMOBILE INSURANCE. Automobile Liability Insurance to include
coverage for any owned, non-owned or hired automobiles and automobile
contractual liability with limits of: $1,000,000 per Person/$1,000,000 per
Accident - Bodily Injury; $1,000,000 per Accident - Property Damage; and such
other coverage as required by California law.

      The policy shall contain an endorsement naming the following as additional
insureds: Alexander & Baldwin, Inc. and A&B Properties, Inc. and all of their
officers and employees.

      C. WORKERS' COMPENSATION INSURANCE. Workers' Compensation coverage shall
be carried as required by California law to further include: Voluntary
Compensation Coverage, Other States' Coverage, and U.S. Longshore & Harbor
Workers' Compensation Coverage, if applicable, with statutory limits for
Workers' Compensation and limits for Employers' Liability of: $1,000,000.00 Each
Accident; $1,000,000.00 Disease - Policy Limit; and $1,000,000.00 Disease - Each
Employee.

      D. UMBRELLA INSURANCE. Umbrella Liability Insurance to be excess over the
Commercial General Liability, Automobile Liability, and Employers' Liability
Insurance. The Umbrella Liability policy shall be written on an "occurrence"
form with a limit of liability of $2,000,000.00 and a Self-Insured Retention no
greater than $10,000.

      The policy shall contain an endorsement naming the following as additional
insureds following the form of the underlying Commercial General Liability:
Alexander & Baldwin, Inc. and A&B Properties, Inc. and all of their officers and
employees.

      The policy shall also contain an endorsement amending the "Other
Insurance" clause as follows:

            "Subject to the terms and conditions of this policy, the insurance
            afforded to Additional Insureds, Alexander & Baldwin, Inc., and A&B
            Properties, Inc., and all of their officers and employees under this
            policy shall be considered to be primary to any insurance they may
            have in force which also applies to a loss covered hereunder and,
            further, the insurer shall not seek contribution from other
            insurance available to the Additional Insureds."

            The policy shall contain a waiver of subrogation endorsement which
            specifically states:

            "The insurer waives any right of recovery they may have against
            Alexander & Baldwin, Inc., and A&B Properties, Inc., as Landlord and
            all of their respective officers and employees because of payments
            made under this policy."

      The policy shall provide defense expense in addition to the limit of
liability stated in the policy.

                                       8
<PAGE>   9

      E. COMMERCIAL PROPERTY INSURANCE. Commercial Property Insurance covering
all Tenant's furniture, fixtures, machinery, equipment, stock and any other
personal property owned and/or used in Tenant's business and all leasehold
improvements constructed after the date of this Lease, whether made or acquired
at the Tenant's expense or Landlord's expense, in an amount equal to their full
replacement cost without deduction for depreciation. At a minimum, such policy
shall insure against destruction or damage by fire and other perils covered on
an ISO Causes of Loss - Special Form including Earthquake, Wind and Hurricane or
its equivalent. Such policy shall further provide Replacement Cost Coverage and
contain an Agreed Amount endorsement. Such policy shall not contain a per
occurrence deductible greater than $5,000. Tenant, with all reasonable speed,
will use all proceeds of such insurance, so long as this Lease remains in
effect, for rebuilding, repairing, replacing or otherwise reinstating the
improvements in a good and substantial manner pursuant to applicable building
laws and codes and the plan as shall have been approved in writing by Landlord.
Tenant will make up from its own funds any deficiency in such insurance
proceeds.

      Further, the policy shall contain a provision specifically naming the
following as additional insureds as their interest may appear: Alexander &
Baldwin, Inc. and A&B Properties, Inc. and all of their officers and employees.

      F. BUSINESS INCOME INSURANCE. Business Income and/or Extra Expense
Insurance in an amount sufficient to insure payment of rent and other fixed
costs, for a period of not less than 12 months, during any interruption of
Tenant's business by reason of Tenant's Premises or personal property being
damaged by fire or other perils covered on an ISO Causes of Loss - Special Form
or its equivalent. In addition, such coverage shall be written on an Agreed
Amount Basis. Tenant acknowledges that it assumes all risks of loss due to
interruption of Tenant's business by any cause.

      G. POLLUTION LIABILITY INSURANCE. If required by Landlord because of
special environmental concerns regarding the Tenant's operations, Pollution
Legal Liability Insurance covering claims for damage or injury caused by
hazardous materials, including, without limitation, bodily injury, wrongful
death, property damage, including loss of use, removal, cleanup and restoration
of work and materials necessary to return the Premises and any other property of
whatever nature located on the Premises to their condition existing prior to the
appearance of Tenant's hazardous materials on the Premises. The policy shall
contain a provision specifically naming Alexander & Baldwin, Inc. and A&B
Properties, Inc. and all of their officers and employees as additional insureds.
If such coverage is applicable, limits for Pollution Legal Liability coverage
shall be determined by Landlord.

16. GENERAL REQUIREMENTS.

      A. CERTIFICATE OF INSURANCE. Certificates of Insurance evidencing all such
insurance and acceptable to Landlord shall be filed with Landlord prior to
occupancy of the demised Premises and at least ten (10) days prior to the
expiration of the term of each policy thereafter. Such Certificates of Insurance
must specifically show all the special policy conditions required in this
Article including "additional insured", "waiver of subrogation", "notice of
cancellation", and "primary insurance" wording applicable to each policy.
Alternatively, a certified, true and complete copy of each properly endorsed
policy may be submitted.

      B. MINIMUM RATING. All coverage shall be written by an admitted insurer in
the State of California, with a current Best Rating of A-:7 or better.

      C. NOTICE OF CANCELLATION. All insurance policies required hereunder shall
be specifically endorsed to state that coverages afforded under the policies
will not be cancelled or allowed to expire until at least 60 days' prior written
notice has been mailed to the Landlord. The Certificate of Insurance for each
policy must state that "the issuing company will mail 60 days' written notice of
cancellation or modification to the certificate holder." The words "endeavor to"
and "failure to mail such notice shall impose no obligation for liability . . ."
are unacceptable and these two phrases must be crossed out if they appear in the
printed certificate form.

      D. REINSTATEMENT OF COVERAGE. If the limits of available liability
coverage required herein become substantially reduced as a result of claim
payments, Tenant shall immediately, at its own expense, purchase insurance to
reinstate the limits of liability coverage required by this Lease.

      E. CLAIM SETTLEMENT. Tenant shall not settle any claim or accept any
proceeds in satisfaction of any claim involving damage to the Premises or
liability of Landlord without Landlord's express prior written consent.

      F. BLANKET POLICY. Tenant may maintain the insurance required under this
Article under blanket or umbrella policies, as applicable, issued to Tenant
covering other properties owned or leased by Tenant; provided that the policies
otherwise comply with this Lease and allocate to the Premises the coverage
specified by this Lease, without possibility of reduction or coinsurance by
reason of, or damage to, any other properties named therein, and if the
insurance required by this Lease shall be effected by any such blanket or
umbrella policies, Tenant shall furnish to Landlord certified copies of policies
with schedules thereto attached showing the amount of insurance afforded by such
policies to the Premises.

      G. WAIVER OF SUBROGATION. Each party hereto waives on behalf of itself and
its insurers any claim it might otherwise have against the other party and all
of its affiliates, arising out of loss or damage, including consequential loss
or damage, to its own property within the Premises or the Complex if the damage
is or would be covered by any policy of insurance required to be provided
hereunder or otherwise maintained.

      H. ADEQUACY OF COVERAGE. Landlord, its agents and employees, make no
representation that the limits of liability specified to be carried by Tenant
pursuant to this Lease are adequate to protect Tenant. If Tenant believes that
any of such insurance coverage is inadequate, Tenant will obtain such additional
insurance coverage as Tenant deems adequate, at Tenant's sole expense.

      I. RESERVATION OF RIGHTS - CHANGES. Landlord hereby reserves the right to
make changes at any time to the insurance requirements herein should new
exposures be brought to light or new insurance products become available during
the term of this Lease. Tenant shall add as additional insureds to the insurance
policies required by this Lease such other persons as Landlord may from
time-to-time reasonably require.

                                       9
<PAGE>   10
17. INDEMNIFICATION. Tenant shall indemnify Landlord against and hold Landlord
harmless from any and all costs, claims or liability arising from: (a) Tenant's
use of the Premises or Complex; (b) the conduct of Tenant's business or anything
else done or permitted by Tenant to be done in or about the Premises or the
Complex, including any contamination of the Premises or the Complex or any other
property resulting from the presence or use of Hazardous Material caused or
permitted by Tenant; (c) injury to or death of any person or damage to or
destruction of property in or about the Premises by or from any cause
whatsoever, including without limitation, gas, oil, electricity or leakage of
any character from the roof, walls, or other portion of the Premises or the
Complex; (d) any breach or default in the performance of Tenant's obligations
under this Lease; (e) any misrepresentation or breach of warranty by Tenant
under this Lease; (f) any loss of or damage to property by theft or otherwise;
(g) any injury or damage to persons or property resulting from any casualty,
explosion, falling plaster or other masonry or glass, steam, gas, electricity,
water or rain which may leak from the pipes, appliances or plumbing therein or
from the roof, street, landscaped areas or from any other place or resulting
from any other cause whatsoever; or (h) other acts or omissions of Tenant;
except for any costs, claim or liability arising from Landlord's gross
negligence or willful misconduct. Tenant shall defend Landlord against any such
cost, claim or liability at Tenant's expense with counsel reasonably acceptable
to Landlord or, at Landlord's election, Tenant shall reimburse Landlord for any
legal fees or costs incurred by Landlord in connection with any such claim,
except for any claim arising out of Landlord's gross negligence or willful
misconduct. As a material part of the consideration to Landlord, Tenant assumes
all risk of damage to property or injury to persons in or about the Premises or
the Complex arising from any cause, and Tenant hereby waives all claims in
respect thereof against Landlord, except for any claim arising out of Landlord's
gross negligence or willful misconduct. As used herein, the term "Tenant" shall
include Tenant's employees, agents, contractors and invitees, if applicable.

18. COMPLIANCE. Tenant, at its sole cost and expense, shall promptly comply with
all laws, statutes, ordinances and governmental rules, regulations or
requirements now or thereafter in effect; with the requirements of any board of
fire underwriters or other similar body now or hereafter constituted; and with
any direction or occupancy certificate issued pursuant to law by any public
officer; provided, however, that no such failure shall be deemed a breach of the
provisions if Tenant, immediately upon notification, commences to remedy or
rectify said failure. The judgment of any court of competent jurisdiction or the
admission of Tenant in any action against Tenant, whether Landlord be a party
thereto or not, that Tenant has violated any such law, statute, ordinance or
governmental rule, regulation, requirement, direction or provision, shall be
conclusive of that fact as between Landlord and Tenant. Tenant shall, at its
sole cost and expense, comply with any and all requirements pertaining to said
Premises and the Complex, of any insurance organization or company, necessary
for the maintenance of reasonable fire and public liability insurance covering
the Premises or the Complex.

      In the event any governmental authority having jurisdiction over the
property promulgates or revises any law, ordinance or regulation, or building,
fire or other code, or imposes mandatory or voluntary controls or guidelines on
Landlord or the subject property of this Lease relating to the use or
conservation of energy, transportation management, utilities, or the reduction
of automobile or other emissions (collectively "controls") and in the event
Landlord is required or elects to make alterations to the property in order to
comply with such mandatory or voluntary controls, Landlord, may at its sole
discretion, comply with such controls or make such alterations to the property
related thereto. Such compliance and the making of such alterations shall not
constitute an eviction of Tenant, constructive or otherwise, or impose upon
Landlord any liability whatsoever, including, but not limited to, liability for
consequential damages or loss of business by Tenant.

      Landlord agrees to bring the Complex, excluding the Premises leased to
Tenant and other premises leased to other tenants, into general compliance with
the Americans with Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.)
(the "Act") prior to the commencement date of this Lease. Tenant shall, at
Tenant's sole cost and expense, comply with any and all governmental laws,
ordinances, rules and regulations applicable to the Premises regarding access of
disabled persons, including without limitation, the Act and any other similar
federal, state, or county laws or ordinances and the rules, regulations and/or
guidelines adopted, published and/or promulgated thereunder (collectively, the
"Disability Access Laws"). Landlord shall not be liable for any failure by
Tenant to comply with the Disability Access Laws with respect to the Premises,
and Tenant expressly releases Landlord and Landlord's employees from any and all
liability for any failure by Tenant to so comply. Tenant shall indemnify, defend
and hold harmless Landlord and Landlord's employees from and against any and all
claims and demands for loss or damage, including claims for discrimination,
personal injury, monetary damage, or injunctive relief arising out of or in
connection with any failure or alleged failure of the Premises to comply with
the Disability Access Laws, and including all reasonable attorneys' and other
professional or consultants' fees, paid or incurred by Landlord and/or
Landlord's employees in connection with any such claims or demands including,
but not limited to, all costs related to any preventive measures which Landlord
or Landlord's employees may take prior to the filing of any action or to attempt
to prevent the filing of such action.

19. LIENS. Tenant shall keep the Premises and the Complex free from any liens or
stop notices arising out of any work performed, materials furnished or
obligations incurred by Tenant. In the event that Tenant shall not, within ten
(10) days following the imposition of such lien or stop notice cause the same to
be released of record, Landlord shall have, in addition to all other remedies
provided herein and by law, the right, but not the obligation to, cause the same
to be released by such means as it shall deem proper, including payment of the
claim giving rise to such lien. All sums paid by Landlord for such purpose, and
all expenses incurred by it in connection therewith, shall be payable to
Landlord by Tenant within ten (10) days of written demand, with interest at the
highest Prime Rate published in the Money Rates section of the Wall Street
Journal (or if the Wall Street Journal ceases publishing such rate, as published
by a comparable source) (the "Prime Rate").

20. ASSIGNMENT AND SUBLETTING. Tenant shall not assign, transfer, or hypothecate
the leasehold estate under this Lease, or any interest therein, and shall not
sublet the Premises, or any part thereof, or any right or privilege appurtenant
thereto, or suffer any other person or entity to occupy or use the Premises, or
any portion thereof, without, in each case, the prior written consent of
Landlord. As a condition for granting its consent to any subletting, Landlord
may require that Tenant agree to pay Landlord, as Additional Rent, all rents
received by Tenant from its subtenants in excess of the rent payable by Tenant
to Landlord hereunder. Tenant shall, by not less than ninety (90) days written
notice, advise Landlord of its intent to sublet the Premises or any portion
thereof for any part of the term hereof. Within thirty (30) days after receipt
of Tenant's notice, Landlord shall give approval or disapproval to Tenant to
sublease the portion of the Premises described in Tenant's notice on the date
specified in Tenant's notice. Landlord's approval to a sublease shall not be
unreasonably withheld Landlord shall also have the right to terminate this Lease
or that portion of the Premises described in Tenant's notice on the date
specified in Tenant's notice. If Tenant intends to sublet the entire Premises
and Landlord elects to terminate this Lease, this Lease shall be terminated on
the date specified in Tenant's notice. If, however, this Lease shall terminate
pursuant to the foregoing with respect to less than all of the Premises, the
rent, as defined and reserved hereinabove shall be adjusted on a pro rata basis
to the number of square feet retained by Tenant, and this Lease as so amended
shall continue in full force and effect. In the event Tenant is allowed to
assign, transfer or sublet the whole or any part of the Premises, with the prior
written consent of Landlord, which consent shall not be unreasonably withheld,
no assignee, transferee or subtenant shall assign or transfer this Lease,

                                       10
<PAGE>   11

either in whole or in part, or sublet the whole or any part of the Premises,
without also having obtained the prior written consent of Landlord. A consent of
Landlord to one assignment, transfer, hypothecation, subletting, occupation or
use by any other person shall not release Tenant from any of Tenant's
obligations hereunder or be deemed to be a consent to any subsequent similar or
dissimilar assignment, transfer, hypothecation, subletting, occupation or use by
any other person. Any such assignment, transfer, hypothecation, subletting,
occupation or use without such consent shall be void and shall constitute a
breach of this Lease by Tenant and shall, at the option of Landlord exercised by
written notice to Tenant, terminate this Lease. The leasehold estate under this
Lease shall not, nor shall any interest therein, be assignable for any purpose
by operation of law without the written consent of Landlord. As a condition to
its consent, Landlord may require Tenant to pay all reasonable expenses in
connection with the assignment and Landlord may require Tenant's assignee or
transferee (or other assignees or transferees) to assume in writing all of the
obligations under this Lease.

      If at any time during the term of this Lease the ownership of Tenant shall
be changed as a result of sale of assets, sale of stock, merger, consolidation
or otherwise so as to result in the change in the controlling interest in
Tenant, Tenant shall give immediate notice thereof to Landlord and obtain
Landlord's prior written consent. If Tenant is a corporation, a limited
liability company, an unincorporated association or a partnership, any
cumulative transfer, of any stock or interest in such corporation, limited
liability company, association or partnership greater than fifty-one percent
(51%) thereof, or any cumulative transfer (other than in the ordinary course of
business) of any assets of such corporation, association or partnership greater
than fifty-one percent (51%) thereof, shall be deemed a change in the
controlling interest within the meaning and provisions of this paragraph and
shall be subject to the provisions hereof; provided, however, that the foregoing
shall not apply to corporations, fifty percent (50%) or more of the stock of
which is traded through a national or regional exchange or over-the-counter.

21. PROTECTION OF LENDERS AND PURCHASERS.

      A. SUBORDINATION. Landlord shall have the right to subordinate this Lease
to any deed of trust or mortgage encumbering the Premises or the Complex, any
advances made on the security thereof and any renewals, modifications,
consolidations, replacements or extensions thereof, whenever made or recorded.
Tenant shall cooperate with Landlord and any lender or purchaser, which is
acquiring a security interest in the Premises, the Complex or the Lease. Tenant
shall execute such further documents and assurances as such lender or purchaser
may require, provided that Tenant's obligations under this Lease shall not be
increased in any material way (the performance of ministerial acts shall not be
deemed material), and Tenant shall not be deprived of its rights under this
Lease. Tenant's right to quiet possession of the Premises or the Complex during
the Lease term shall not be disturbed if Tenant pays the rent and performs all
of Tenant's obligations under this Lease and is not otherwise in default. If any
beneficiary or mortgagee elects to have this Lease prior to the lien of its deed
of trust or mortgage and gives written notice thereof to Tenant, this Lease
shall be deemed prior to such deed of trust or mortgage whether this Lease is
dated prior or subsequent to the date of said deed of trust or mortgage or the
date of recording thereof.

      B. ATTORNMENT. If Landlord's interest in the Premises or the Complex is
acquired by any beneficiary under a deed of trust, mortgagee or purchaser,
Tenant shall attorn to the transferee of or successor to Landlord's interest in
the Premises or the Complex and recognize such transferee or successor as
Landlord under this Lease, the party acquiring the Premises shall assume
Landlord's rights and obligations under this Lease and Tenant waives the
protection of any statute or rule of law which gives or purports to give Tenant
any right to terminate this Lease or surrender possession of the Premises or the
Complex upon the transfer of Landlord's interest.

      C. SIGNING OF DOCUMENTS. Tenant shall sign and deliver any instrument or
documents necessary or appropriate to evidence any such attornment or
subordination or agreement to do so. If Tenant fails to do so within ten (10)
days after written request, Tenant hereby makes, constitutes and irrevocably
appoints Landlord, or any transferee or successor of Landlord, the
attorney-in-fact of Tenant to execute and deliver any such instrument or
document.

      D. ESTOPPEL CERTIFICATES. (a) Upon Landlord's written request, Tenant
shall execute, acknowledge and deliver to Landlord a written statement
certifying: (i) that Tenant has accepted the Premises (or, if Tenant has not
done so, that Tenant has not accepted the Premises and specifying the reasons
therefor); (ii) the commencement and expiration dates of this Lease; (iii) that
none of the terms or provisions of this Lease have been changed (or if they have
been changed, stating how they have been changed); (iv) that this Lease has not
been canceled or terminated; (v) the last date of payment of the Basic Rent and
other charges and the time period covered by such payment; (vi) that Landlord is
not in default under this Lease (or, if Landlord is claimed to be in default,
stating the specific facts supporting Tenant's claim of default); (vii) the
capacity of the person executing the certificate and that such person is duly
authorized to execute the same on behalf of Tenant; (viii) that no notice has
been received by Tenant of any default which has not been cured, except as to
defaults specified in the certificate; (ix) the amount of any security deposit
and prepaid rent; (x) such other representations or information with respect to
Tenant or the Lease as Landlord may reasonably request or which any prospective
purchaser or encumbrancer of the Premises or the Complex may require. Tenant
shall deliver such statement to Landlord within ten (10) days after receipt of
Landlord's request. Landlord may give any such statement by Tenant to any
prospective purchaser or encumbrancer of the Premises or the Complex. Such
purchaser or encumbrancer may rely conclusively upon such statement as true and
correct.

            (b) If Tenant does not deliver such statement to Landlord within
such ten (10) day period, Landlord, and any prospective purchaser or
encumbrancer, may conclusively presume and rely upon the following facts: (i)
that the terms and provisions of this Lease have not been changed except as
otherwise represented by Landlord; (ii) that this Lease has not been canceled or
terminated except as otherwise represented by Landlord; (iii) that not more than
one month's Basic Rent or other charges have been paid in advance; and (iv) that
Landlord is not in default under the Lease. In such event, Tenant shall be
estopped from denying the truth of such facts.

      E. TENANT'S FINANCIAL CONDITION. Within twenty (20) days after written
request from Landlord which request Landlord may make from time to time or at
any time during the Lease Term, Tenant (and/or Guarantor) shall deliver to
Landlord (a) a current financial statement of Tenant and any Guarantor of this
Lease; and (b) to the extent not already delivered, financial statements of
Tenant and such Guarantor for the two (2) years prior to the current financial
statements delivered to Landlord. Such statements shall be prepared in
accordance with generally accepted accounting principles and certified as true
in all material respects by Tenant and Guarantor (if Tenant and/or Guarantor are
individuals) or by an authorized officer or general partner of Tenant and
Guarantor (if Tenant and/or Guarantor are a corporation or partnership,
respectively). In addition, Tenant shall deliver to any lender designated by
Landlord any financial statements required by such lender to facilitate the
financing or refinancing of the Complex. All financial statements shall be
confidential and shall be used only for the purposes set forth in this Lease.

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<PAGE>   12

22. ENTRY BY LANDLORD. Landlord (including agents, contractors, employees or
anyone else acting on behalf of Landlord) reserves, and shall at all reasonable
times have, the right to enter the Premises to inspect them; to perform any
services to be provided by Landlord hereunder; to make repairs or provide any
services to a contiguous tenant(s); to submit the Premises to prospective
purchasers, mortgagors or tenants; to post notices of non-responsibility; and to
alter, improve or repair the Premises or any portion of the Complex, all without
abatement of rent, and may erect scaffolding and other necessary structures in
or through the Premises where reasonably required by the character of the work
to be performed; provided, however that the business of Tenant shall be
interfered with to the least extent that is reasonably practical. For each of
the foregoing purposes, Landlord shall at all times have and retain a key with
which to unlock all of the doors in an emergency in order to obtain entry to the
Premises, and any entry to the Premises by Landlord by any of said means, or
otherwise, shall not under any circumstances be construed or deemed to be a
forcible or unlawful entry into or a detainer of the Premises or an eviction,
actual or constructive, of Tenant from the Premises or any portion thereof.

23. BANKRUPTCY. The commencement of a bankruptcy action or liquidation action or
reorganization action or insolvency action or an assignment of or by Tenant for
the benefit of creditors, or any similar action undertaken by Tenant, or the
insolvency of Tenant, shall, at Landlord's option, constitute a material breach
of this Lease by Tenant. If the trustee or receiver appointed to serve during a
bankruptcy, liquidation, reorganization, insolvency or similar action elects to
reject Tenant's unexpired Lease, the trustee or receiver shall notify Landlord
in writing within the shortest time period afforded by the Bankruptcy rules
and/or regulations. Subject to applicable law, Landlord shall have all rights
available to terminate Tenant's right to possession on an expedited basis and
proceed against Tenant for all damages.

      Within thirty (30) days after court approval of the assumption of this
Lease, the trustee or receiver shall cure (or provide adequate assurance to the
reasonable satisfaction of Landlord that the trustee or receiver shall cure) any
and all previous defaults under the unexpired Lease and shall compensate
Landlord for all actual pecuniary loss and shall provide adequate assurance of
future performance under said Lease to the reasonable satisfaction of Landlord.
Adequate assurance of future performance, as used herein, includes, but shall
not be limited to: (i) assurance of source and payment of rent, and other
consideration due under this Lease; (ii) assurance that the assumption or
assignment of this Lease will not breach substantially any provision, such as
radius, location, use, or exclusivity provision, in any agreement relating to
the above described Premises.

      Nothing contained in this paragraph shall affect the existing right of
Landlord to refuse to accept an assignment upon commencement of or in connection
with a bankruptcy, liquidation, reorganization or insolvency action or an
assignment of Tenant for the benefit of creditors or other similar act. Nothing
contained in this Lease shall be construed as giving or granting or creating an
equity in the demised Premises to Tenant. In no event shall the leasehold estate
under this Lease, or any interest therein, be assigned by voluntary or
involuntary bankruptcy proceeding without the prior written consent of Landlord.
In no event shall this Lease or any rights or privileges hereunder be an asset
of Tenant under any bankruptcy, insolvency or reorganization proceedings.

24. DEFAULT/REMEDIES. The failure to perform or honor any covenant, condition or
representation made under this Lease shall constitute a default hereunder by
Tenant upon the expiration of the appropriate grace period hereinafter provided.
Tenant shall have a period of five (5) days from the date of written notice from
Landlord within which to cure any default in the payment of rental or adjustment
thereto. Tenant shall have a period of five (5) days from the date of written
notice from Landlord within which to cure any other default under this Lease,
unless said default cannot be cured within five (5) days and Tenant has taken
steps to cure the default. Upon an uncured default of this Lease by Tenant,
Landlord shall have the following rights and remedies in addition to any other
rights or remedies available to Landlord at law or in equity:

            (a) The rights and remedies provided for by California Civil Code
Section 1951.2, including but not limited to, recovery of the worth at the time
of award of the amount by which the unpaid rent for the balance of the term
after the time of award exceeds the amount of rental loss for the same period
that Tenant proves could be reasonably avoided, as computed pursuant to
subsection (b) of said Section 1951.2. Any proof by Tenant under subparagraphs
(2) and (3) of Section 1951.2 of the California Civil Code of the amount of
rental loss that could be reasonably avoided shall be made in the following
manner: Landlord and Tenant shall each select a licensed real estate broker in
the business of renting property of the same type and use as the Premises and in
the same geographic vicinity. Such two (2) real estate brokers shall select a
third licensed real estate broker, and the three (3) licensed real estate
brokers so selected shall determine the amount of the rental loss that could be
reasonably avoided from the balance of the term of this Lease after the time of
award. In the event the three (3) real estate brokers cannot agree upon the
amount of rental loss, the parties agree to accept the middle value as final and
binding.

            (b) The rights and remedies provided by the California Civil Code
which allows Landlord to continue the Lease in effect and to enforce all of its
rights and remedies thereunder, including the right to recover rent as it
becomes due, for so long as Landlord does not terminate Tenant's right to
possession. For purposes of this Lease, acts of maintenance or preservation,
efforts to relet the Premises, or the appointment of a receiver upon Landlord's
initiative to protect its interest under this Lease shall not constitute a
termination of Tenant's right to possession.

            (c) The right to terminate this Lease by giving notice to Tenant in
accordance with the applicable law.

            (d) The right and power, as attorney-in-fact for Tenant, to enter
the Premises and remove therefrom all persons and property, to store such
property in a public warehouse or elsewhere at the cost of and for the account
of Tenant, and to sell such property and apply such proceeds therefrom pursuant
to applicable California law. Landlord, as attorney-in-fact for Tenant, may from
time to time sublet the Premises or any part thereof for such term or terms
(which may extend beyond the term of this Lease) and at such rent and such other
terms as Landlord in its reasonable sole discretion may deem advisable, with the
right to make alterations and repairs to the Premises. Upon each subletting, (i)
Tenant shall be immediately liable to pay Landlord, in addition to indebtedness
other than rent due hereunder, the reasonable cost of such subletting,
including, but not limited to, reasonable attorneys' fees, and any real estate
commissions actually paid, and the cost of such reasonable alterations and
repairs incurred by Landlord and the amount, if any, by which the rent hereunder
for the period of such subletting (to the extent such period does not exceed the
term hereof) exceeds the amount to be paid as rent for the Premises for such
period; or (ii) at the option of Landlord, rents received from such subletting
shall be applied first to payment of indebtedness other than rent due hereunder
from Tenant to Landlord; second, to the payment of any costs of such subletting
and of such alterations and repairs; third, to payment of rent due and unpaid
hereunder; and the residue, if any, shall be held by Landlord and applied in
payment of future rent as the same becomes due hereunder. If

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<PAGE>   13

Tenant has been credited with any rent to be received by such subletting under
option (i) and such rent shall not be promptly paid to Landlord by the
subtenant(s), or if such rentals received from such subletting under option (ii)
during any month be less than that to be paid during that month by Tenant
hereunder, Tenant shall pay any such deficiency to Landlord. Such deficiency
shall be calculated and paid monthly. For all purposes set forth in this
subparagraph (d), Landlord is hereby irrevocably appointed attorney-in-fact for
Tenant, with power of substitution. No taking possession of the Premises by
Landlord, as attorney-in-fact for Tenant, shall be construed as an election on
its part to terminate this Lease unless a written notice of such intention be
given to Tenant. Notwithstanding any such subletting without termination,
Landlord may at any time hereafter elect to terminate this Lease for such
previous breach.

            (e) The right to have a receiver appointed for Tenant upon
application by Landlord, to take possession of the Premises and to apply any
rental collected from the Premises and to exercise all other rights and remedies
granted to Landlord as attorney-in-fact for Tenant pursuant to subparagraph (d)
above.

25. ADDITIONAL SECURITY AND REMEDY UPON DEFAULT. As further security for
Tenant's obligations under this Lease, Tenant hereby grants to Landlord a
security interest in all of Tenant's personal property and such other personal
property of any kind or nature whatsoever, which is now or becomes a "fixture"
or attached to the Premises, together with all present and future attachments,
replacements and additions thereto and products and proceeds thereof. This
provision is intended to be a Security Agreement under the Uniform Commercial
Code as in force from time to time in California and Tenant shall execute any
and all documents necessary to perfect Landlord's security interest in the
personal property described above. In the event of Tenant's default, Landlord
shall have the rights afforded by the Uniform Commercial Code with respect to
the personal property covered by this paragraph. Landlord's interest in the
items set forth above as well as Tenant's personal property and or "fixtures"
shall constitute Landlord's additional security and nothing in this paragraph
shall be construed to limit or constitute a waiver of any of Landlord's rights
and remedies upon Tenant's default.

26. ABANDONMENT. Tenant shall not vacate or abandon the Premises at any time
during the term of this Lease; and if Tenant shall abandon, vacate or surrender
said Premises, or be dispossessed by the process of law, or otherwise, any
personal property belonging to Tenant left on the Premises shall be deemed to be
abandoned, at the option of Landlord, except such property as may be mortgaged
to Landlord.

27. DESTRUCTION. In the event the Premises are destroyed in whole or in part
from any cause, except for routine maintenance and repairs and incidental damage
and destruction caused from vandalism and accidents for which Tenant is
responsible under Paragraph 11, Landlord may, at its option:

            (a) Rebuild or restore the Premises to their condition prior to the
damage or destruction, or

            (b) Terminate this Lease.

      Landlord shall give Tenant notice in writing within thirty (30) days from
the partial destruction of the Premises of its election to either rebuild and
restore them, or to terminate this Lease. If Landlord elects to rebuild or
restore, Landlord agrees, at its expense, promptly to rebuild or restore the
Premises to their condition prior to the damage or destruction. If Landlord does
not complete the rebuilding or restoration within one hundred eighty (180) days
following the date of destruction (such period of time to be extended for delays
caused by the fault or neglect of Tenant or because of Acts of God, acts of
public agencies, labor disputes, strikes, fires, freight embargoes, rainy or
stormy weather, inability to obtain materials, supplies or fuels, acts of
contractors or subcontractors, or delay of the contractors or subcontractors due
to such causes or other contingencies beyond the control of Landlord), then
Tenant shall have the right to terminate this Lease by giving fifteen (15) days
prior written notice to Landlord. Notwithstanding anything herein to the
contrary, Landlord's obligation to rebuild or restore shall be limited to the
building and interior constructed by Landlord as they existed as of the
commencement date of the Lease and shall not include restoration of Tenant's
trade fixtures, equipment, merchandise, or any improvements, alterations or
additions made by Tenant to the Premises, which Tenant shall forthwith replace
or fully repair at Tenant's sole cost and expense provided this Lease is not
canceled according to the provisions above.

      The proceeds from any insurance required by this Lease or such other
insurance proceeds paid by reason of damage to or destruction of the Complex of
Premises, or any part thereof, shall belong to and be paid to Landlord subject
to the rights of any beneficiary of any deed of trust which constitutes an
encumbrance.

      Unless this Lease is terminated pursuant to the foregoing provisions, this
Lease shall remain in full force and effect. Tenant hereby expressly waives the
provisions of Section 1932(2) and Section 1933(4) of the California Civil Code.

      In the event that more than thirty-three and one third percent (33-1/3%)
of the building in which the Premises are situated is damaged or destroyed
(percentage of damage or destruction based on replacement cost) Landlord may
elect to terminate this Lease, whether the Premises be injured or not. Landlord
shall give Tenant notice in writing within thirty (30) days from such damage or
destruction of the building of its election to either rebuild and restore them,
or to terminate this Lease. In the event the destruction of the Premises is
caused by Tenant, Tenant shall pay the deductible portion of Landlord's
insurance proceeds.

28. EMINENT DOMAIN. If all or any part of the Premises shall be taken by any
public or quasi-public authority under the power of eminent domain or conveyance
in lieu thereof, this Lease shall terminate as to any portion of the Premises so
taken or conveyed on the date when title vests in the condemnor, and Landlord
shall be entitled to any and all payment, income, rent, award, or any interest
therein whatsoever which may be paid or made in connection with such taking or
conveyance, and Tenant shall have no claim against Landlord or otherwise for the
value of any unexpired term of this Lease. Notwithstanding the foregoing
paragraph, any compensation specifically awarded Tenant for loss of business,
Tenant's personal property, moving cost or loss of goodwill, shall be and remain
the property of Tenant.

      If (i) any action or proceeding is commenced for such taking of the
Premises or any part thereof, or if Landlord is advised in writing by any entity
or body having the right or power of condemnation of its intention to condemn
the Premises or any portion thereof, or (ii) any of the foregoing events occur
with respect to the taking of any space in the Complex not leased hereby, or if
any such spaces so taken are conveyed in lieu of such taking and Landlord shall
decide to discontinue the use and operation of the Complex, or decide to
demolish, alter or rebuild the Complex, then, in any of such events, Landlord
shall have the right to terminate this Lease by giving Tenant written notice
thereof within sixty (60) days of the date of receipt of said written notice, or
commencement of said action or proceeding, or taking conveyance, which
termination

                                       13
<PAGE>   14

shall take place as of the first to occur of the last day of the calendar month
next following the month in which such notice is given or the date on which
title to the Premises shall vest in the condemnor.

      In the event of such a partial taking or conveyance of the Premises, if
the portion of the Premises taken or conveyed is so substantial that the Tenant
can no longer reasonably conduct its business, Tenant shall have the privilege
of terminating this Lease within sixty (60) days from the date of such taking or
conveyance, upon written notice to Landlord of its intention to do so, and upon
giving of such notice this Lease shall terminate on the last day of the calendar
month next following the month in which such notice is given, upon payment by
Tenant of the rent from the date of such taking or conveyance to the date of
termination. If any assessments or Basic Rent has been paid in advance by
Tenant, Landlord shall refund to Tenant for the unexpired period for which
payment has been made within thirty (30) days from said termination.

      If a portion of the Premises be taken by condemnation or conveyance in
lieu thereof and neither Landlord nor Tenant shall terminate this Lease as
provided herein, this Lease shall continue in full force and effect as to the
part of the Premises not so taken or conveyed, and the rent herein shall be
apportioned as of the date of such taking or conveyance so that thereafter the
rent to be paid by Tenant shall be in the ratio that the area of the portion of
the Premises not so taken or conveyed bears to the total area of the Premises
prior to such taking.

29. SALE OR CONVEYANCE BY LANDLORD. In the event of a sale or conveyance of the
Complex or any interest therein, by any owner then constituting all or part of
Landlord, the transferor shall thereby be released from any liability for acts
or events occurring after said transfer upon any of the terms, covenants or
conditions (express or implied) herein contained in favor of Tenant. In such
event, insofar as such transfer is concerned, Tenant agrees to look solely to
the responsibility of the successor in interest of such transferor in and to the
Complex and this Lease. This Lease shall not be affected by any such sale or
conveyance, and Tenant agrees to attorn to the successor in interest of such
transferor and the successor in interest shall assume Landlord's rights and
obligations under this Lease.

30. HOLDING OVER. Any holding over by Tenant after expiration or other
termination of the term of this Lease with the written consent of Landlord
delivered to Tenant shall not constitute a renewal or extension of the Lease or
give Tenant any rights in or to the leased Premises except as expressly provided
in this Lease. Any holding over after the expiration or other termination of the
term of this Lease, with the consent of Landlord, 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 monthly Basic Rent shall be increased to
an amount equal to one hundred fifty percent (150%) of the monthly Basic Rent
and Additional Rent required during the last month of the Lease term.

31. CONSTRUCTION CHANGES. It is understood that the description of the Premises
and the location of duct work, plumbing and other facilities therein are subject
to such changes as Landlord or Landlord's architect determines to be desirable
in the course of construction of the Premises. No change in plans for any other
portions of the Complex shall affect the enforceability of this Lease or entitle
Tenant to any reduction of rent hereunder or result in any liability of Landlord
to Tenant. Landlord does not guarantee the accuracy of any drawings supplied to
Tenant and verification of the accuracy of such drawings rests with Tenant.

32. RIGHT OF LANDLORD TO PERFORM. All terms, covenants and conditions of this
Lease to be performed or observed by Tenant shall be performed or observed by
Tenant at Tenant's sole cost and expense and without any reduction of rent. If
Tenant shall fail to pay any sum of money, or other rent, required to be paid by
it hereunder or shall fail to perform any other term or covenant hereunder on
its part to be performed, and such failure shall continue for five (5) days
after written notice thereof by Landlord, Landlord, without waiving or releasing
Tenant from any obligation of Tenant hereunder, may, but shall not be obliged
to, make any such payment or perform any such other term or covenant on Tenant's
part to be performed. All sums so paid by Landlord and all necessary costs of
such performance by Landlord together with interest thereon at the rate of the
Prime Rate of interest plus two percent (2%) per annum from the date of such
payment on performance by Landlord, shall be paid (and Tenant covenants to make
such payment) to Landlord on demand by Landlord, and Landlord shall have (in
addition to any other right or remedy of Landlord) the same rights and remedies
in the event of nonpayment by Tenant as in the case of failure by Tenant in the
payment of rent hereunder.

33. ATTORNEYS' FEES.

      A. In the event of a dispute regarding possession of the Premises,
recovery of any sum due under this Lease, breach of any provision of this Lease,
or to enforce any right or obligation set forth herein, then all costs and
expenses, including reasonable attorneys' fees, incurred by the prevailing party
therein shall be paid by the other party, which obligation on the part of the
other party shall be deemed to have accrued on the date of the commencement of
such action and shall be enforceable whether or not the action is prosecuted to
judgment.

      B. In the event of a dispute between Landlord and Tenant which is resolved
by a Court or Judicial Reference as set forth herein, Landlord and Tenant agree,
notwithstanding Paragraph 33A above, that for purposes of determining the amount
of attorneys' fees to be awarded to the prevailing party, the Judge or Reference
shall consider, in addition to such evidence as is submitted, any written
settlement offers and the timing of such offers. In such event, if the Court or
Reference determines that the prevailing party rejected a settlement offer which
is equal to or greater than the net recovery obtained, the prevailing party
shall only be entitled to recover in attorneys' fees an amount which is not more
than twenty-five percent (25%) of the net recovery. The Court or Reference shall
also consider the amount originally demanded by the prevailing party and
depending on the ultimate net recovery, award the non-prevailing party, as an
offset, an amount up to twenty-five percent (25%) of the prevailing party's
total net recovery for successfully defending claims asserted by the prevailing
party.

      C. Should Landlord be named as a defendant in any suit brought against
Tenant by any third party in connection with or arising out of Tenant's
occupancy hereunder, Tenant shall indemnify and hold Landlord harmless from any
and all costs, expenses incurred (including reasonable attorneys' fees) as well
as any judgment rendered against Landlord, except to the extent a final judgment
of a court of competent jurisdiction establishes that the injury, loss, or
damage, was proximately caused by Landlord's gross negligence, or willful
misconduct.

34. JUDICIAL REFERENCE. The parties agree that, other than an action by Landlord
to obtain possession of the Premises, an action by Landlord seeking
indemnification from Tenant, or any action which seeks relief which can only be
obtained by Court proceeding, any dispute arising out of this Lease shall be
heard by a referee pursuant to the provisions of California Code of Civil
Procedure Section 638, et seq., for a determination to be made which shall be as
binding upon Landlord and Tenant as if tried by a court or jury. In the event of
such reference, the following provisions shall apply:

                                       14
<PAGE>   15
            (a) Within five (5) business days after service of a demand for
reference, Landlord and Tenant shall agree upon a single referee who shall then
try all issues in dispute, whether of fact or law, and then report his/her
findings and judgment thereon. If Landlord and Tenant are unable to agree upon a
referee, either Landlord or Tenant may seek to have one appointed pursuant to
Section 640 of the California Code of Civil Procedure by the presiding judge of
the Sacramento County Superior Court.

            (b) The compensation of the referee shall be such as is customarily
charged by referees for like services. The cost of such proceedings shall
initially be borne equally by Landlord and Tenant; however, the prevailing party
in such proceedings shall be entitled, in addition to all other costs, to
recover its contribution for the cost of the referee as an item of costs.

            (c) If a court reporter is required by any party, then a court
reporter shall be present at all proceedings and the fees of such court reporter
shall initially be borne by the party requesting the court reporter, or equally,
if both parties request a court reporter. Such fees shall be an item of
recoverable costs to the prevailing party.

            (d) The referee shall apply all California Rules of Procedure and
Evidence and shall apply the substantive law of California in deciding the
issues to be heard. Notice of any motion before the referee shall be given in
the manner prescribed by the California Code of Civil Procedure, all hearings
shall be set at the convenience of the referee, and venue for all hearings shall
be selected by the referee at a place in Sacramento County, California.

            (e) The referee's decision under California Code of Civil Procedure
Section 644 shall stand as the judgment of the court, subject to appellate
review as provided by the laws of the State.

            (f) Landlord and Tenant agree that any such dispute shall be decided
as soon as practicable following the selection or appointment of a referee. The
date of hearing for any proceedings shall be determined by agreement of the
parties and the referee, or if the parties cannot agree, then by the referee.

            (g) Without limiting the jurisdiction of the referee, Landlord and
Tenant specifically acknowledge that the referee shall have jurisdiction to
issue all legal and equitable relief including an award of damages, the issuance
of injunctions, and requiring the specific performance of any provisions of this
Lease.

            (h) In addition to any other relief awarded by the referee, the
referee shall award attorneys' fees to the prevailing party pursuant to
Paragraph 33(B) above.

35. WAIVER. The waiver by either party of the other party's failure to perform
or observe any term, covenant or condition herein contained to be performed or
observed by such waiving party shall not be deemed to be a waiver of such term,
covenant or condition or of any subsequent failure of the party failing to
perform or observe the same or any other such term, covenant or condition
therein contained, and no custom or practice which may develop between the
parties hereto during the term hereof shall be deemed a waiver of, or in any way
affect, the right of either party to insist upon performance and observance by
the other party in strict accordance with the terms hereof.

36. NOTICES. All notices, demands, requests, advice or designations which may be
or are required to be given by either party to the other hereunder shall be in
writing. All notices, demands, requests, advice or designations by Landlord to
Tenant shall be sufficiently given, made or delivered if personally served on
Tenant by leaving the same at the Premises or if sent by United States certified
or registered mail, postage prepaid, addressed to Tenant at the Premises. All
notices, demands, requests, advice or designations by Tenant to Landlord shall
be sent by United States certified or registered mail, postage prepaid,
addressed to Landlord at the offices of its agent at: 2868 Prospect Park Drive,
Suite 300, Rancho Cordova, CA 95670. Each notice, request, demand, advice or
designation referred to in this paragraph shall be deemed received on the date
of the personal service or mailing thereof in the manner herein provided, as the
case may be.

37. EXECUTION OF LEASE. This Lease may be executed in counterparts and, when all
counterpart documents are executed, the counterparts shall constitute a single
binding instrument. Landlord's delivery of this Lease to Tenant shall not be
deemed an offer to lease and shall not be binding until executed and delivered
by both Landlord and Tenant.

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

39. LIMITATION OF LIABILITY. In consideration of the benefits accruing
hereunder, Tenant and all successors and assigns covenant and agree that, in the
event of any actual or alleged failure, breach or default hereunder by Landlord:

            (a) the sole and exclusive remedy shall be against Landlord and
            Landlord's assets;

            (b) no partner of Landlord who does not have an interest in the
            Premises shall be sued or named as a party in any suit or action
            (except as may be necessary to secure jurisdiction of the
            partnership);

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

            (d) no partner of Landlord shall be required to answer or otherwise
            respond to a formal complaint or other proceeding who does not have
            an interest in the Premises;

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<PAGE>   16

            (e) no judgment will be taken against any partner of Landlord who
            does not have an interest in the Premises;

            (f) any judgment taken against any partner of Landlord may be
            vacated and set aside at any time without hearing who does not have
            an interest in the Premises;

            (g) no writ of execution will ever be levied against the assets of
            any partner of Landlord who does not have an interest in the
            Premises;

            (h) these covenants and agreements are enforceable both by Landlord
            and also by any partner of Landlord.

      Tenant agrees that each of the foregoing covenants and agreements shall
survive the termination of the Lease and be applicable to any covenant or
agreement either expressly contained in this Lease or imposed by statute or at
common law.

40. CORPORATE AUTHORITY. If Tenant is a corporation (or a partnership), each
individual executing this Lease on behalf of said corporation (or partnership)
represents and warrants that he/she is duly authorized to execute and deliver
this Lease on behalf of said corporation (or partnership) in accordance with the
by-laws of said corporation (or partnership in accordance with the partnership
agreement) and that this Lease is binding upon said corporation (or partnership)
in accordance with its terms. If Tenant is a corporation, Tenant shall, within
thirty (30) days after execution of this Lease, deliver to Landlord a certified
copy of the resolution of the Board of Directors of said corporation authorizing
or ratifying the execution of this Lease.

41. SIGNS. No sign, placard, picture, advertisement, name or notice shall be
inscribed, displayed or printed or affixed on or to any part of the outside of
the Premises or any exterior windows of the Premises without the written consent
of Landlord first had and obtained and Landlord shall have the right to remove
any such sign, placard, picture, advertisement, name or notice without notice to
and at the expense of Tenant. If Tenant is allowed to print or affix or in any
way place a sign in, on, or about the Premises, upon expiration or other sooner
termination of this Lease, Tenant at Tenant's sole cost and expense shall both
remove such sign and repair all damage in such a manner as to restore all
aspects of the appearance of the Premises to the condition prior to the
placement of said sign.

      All approved signs or lettering on outside doors shall be printed,
painted, affixed, inscribed and removed at the expense of Tenant by a person
approved of by Landlord.

      Tenant shall not place anything or allow anything to be placed near the
glass of any window, door partition or wall which may appear unsightly from
outside the Premises.

42. HAZARDOUS AND TOXIC MATERIALS.

      A. HAZARDOUS MATERIALS. Tenant covenants to comply with all laws relating
to Hazardous Materials with respect to the Premises and the Complex. Except for
general office supplies typically used in an office area in the ordinary course
of business (such as copier toner, liquid paper, glue, ink, and cleaning
solvents), for use in the manner for which they were designed and only in
accordance with all Hazardous Materials laws and the highest standards
prevailing in the industry for such use, and then only in such amounts as may be
normal for the business operations conducted by Tenant on the Premises. Tenant
(including its employees, agents, invitees or anyone acting by or on behalf of
Tenant) shall not use, handle, generate, manufacture, store or dispose of, on or
about the Premises or the Complex, or transport to or from the Premises or the
Complex, any flammable explosives, radioactive materials, hazardous wastes,
toxic substances, or any related materials or substances, including, without
limitation, any substance defined as or included in the definition of "hazardous
substances" under any applicable federal, state or local law, regulation or
ordinance (collectively, "Hazardous Materials").

      B. PERMITTED MATERIALS. Notwithstanding the above provisions, Tenant shall
have the right to use, generate and store on the Premises or the Complex, and
transport to and from the Premises or the Complex, those Hazardous Materials
listed which Tenant has identified on the list attached hereto and incorporated
herein by this reference which are used in the ordinary course of Tenant's
business (collectively, "Permitted Materials"); provided, however, that Tenant's
use, generation, storage and transport thereof is in strict compliance with all
applicable federal, state and local laws, regulations and ordinances. If no list
is attached to this Lease, Tenant acknowledges and agrees that there are no
Permitted Materials. Tenant's failure to obtain and maintain authorization from
all required state, federal or local agencies to transfer, store or use
Hazardous Materials shall be deemed a material default of this Lease.

      C. PERMITTED MATERIALS CLAIMS. Promptly upon Tenant obtaining actual
knowledge thereof, Tenant shall immediately notify Landlord in writing of (i)
any and all enforcement, cleanup, removal or other governmental or regulatory
actions instituted, completed or threatened with respect to the Permitted
Materials pursuant to any applicable federal, state or local law, ordinance or
regulation, and (ii) all claims made or threatened by any third party against
Tenant or the Premises or the Complex related to any damage, loss or injury,
whether to person or property, resulting from the Permitted Materials (the
matters set forth in clauses (i) and (ii) above are hereinafter referred to
collectively as "Permitted Materials Claims").

      D. CLEAN UP AND TENANT'S INDEMNITY. Tenant shall promptly take all actions
necessary, at its sole cost and expense, to return the Premises or Complex to
the condition existing prior to the introduction of any such Hazardous Materials
by Tenant or Tenant's employees, agents, invitees or anyone else acting by or on
behalf of Tenant, provided Landlord's approval of such actions shall first be
obtained.

      Tenant shall be solely responsible for and shall indemnify, defend (with
counsel reasonably approved by Landlord) and hold Landlord harmless from and
against any and all claims, judgments, suits, causes of action, damages,
penalties, fines, liabilities, losses and expenses (including without
limitation, investigation and clean-up costs, attorneys' fees, consultant fees
and court costs) which arise during or after the term of this Lease as a result
of the breach of any of the obligations and covenants by Tenant set forth in
this Paragraph 42, and/or any contamination of the Premises or the Complex
directly arising from the activities of Tenant.

      E. ENVIRONMENTAL INSPECTION. Landlord shall have the right, from time to
time, and upon not less than thirty (30) days written notice to Tenant, although
not more than annually except in the case of an emergency in which no notice
shall be required, to conduct an

                                       16
<PAGE>   17

inspection of the Premises or the Complex to determine the existence or presence
of Hazardous Materials within the Premises or the Complex. Landlord shall be
accompanied during said inspection by an available representative of Tenant.
Landlord shall have the right to enter and inspect materials brought into the
Premises or the Complex and the manufacturing processes utilized by the Tenant.
Landlord may, in its discretion, retain such experts to conduct the inspection,
perform the tests referred to herein, and to prepare a written report in
connection therewith. All costs and expenses incurred by Landlord under this
subsection shall be paid as Additional Rent by Tenant to Landlord.

      F. SURVIVAL. The foregoing covenants and indemnitee of Tenant shall
survive the expiration or earlier termination of the Lease.

43. MISCELLANEOUS AND GENERAL PROVISIONS.

      A. USE OF BUILDING NAME. Tenant shall not, without the written consent of
Landlord, use the name of the building or the Complex for any purpose other than
as the address of the business conducted by Tenant in the Premises.

      B. CHOICE OF LAW; SEVERABILITY. This Lease shall in all respects be
governed by and construed in accordance with the laws of the State of
California. If any provision of this Lease shall be invalid, unenforceable or
ineffective for any reason whatsoever, all other provisions hereof shall be and
remain in full force and effect.

      C. DEFINITION OF TERMS. The term "Premises" includes the space leased
hereby and any improvements now or hereafter installed therein or attached
thereto. The term "Landlord" or any pronoun used in place thereof includes the
plural as well as the singular and the successors and assigns of Landlord. The
term "Tenant" or any pronoun used in place thereof includes the plural as well
as the singular and individuals, firms, associations, partnerships and
corporations, and their and each of their respective heirs, executors,
administrators, successors and permitted assigns, according to the context
hereof and the provisions of this Lease shall inure to the benefit of and bind
such heirs, executors, administrators, successors and permitted assigns.

      The term "person" includes the plural as well as the singular and
individuals, firms, associations, partnerships and corporations. Words used in
any gender include other genders. If there be more than one Tenant, the
obligations of Tenant hereunder are joint and several. The paragraph headings of
this Lease are for convenience of reference only and shall have no effect upon
the construction or interpretation of any provision hereof.

      D. TIME OF ESSENCE. Time is of the essence of this Lease and of each and
all of its provisions.

      E. QUITCLAIM. At the expiration or earlier termination of this Lease,
Tenant shall execute, acknowledge and deliver to Landlord, within ten (10) days
after written demand from Landlord to Tenant, any quitclaim deed or other
document required by any reputable title company, licensed to operate in the
State of California, to remove the cloud or encumbrance created by this Lease
from the real property of which Tenant's Premises are a part.

      F. INCORPORATION OF PRIOR AGREEMENTS; AMENDMENTS. This instrument along
with any exhibits and attachments hereto constitutes the entire agreement
between Landlord and Tenant relative to the Premises and this agreement and the
exhibits and attachments may be altered, amended or revoked only by an
instrument in writing signed by both Landlord and Tenant. Landlord and Tenant
hereby agree that all prior or contemporaneous oral agreements between and among
themselves and their agents or representatives relative to the leasing of the
Premises are merged in or revoked by this agreement.

      G. RECORDING. Neither Landlord nor Tenant shall record this Lease or a
short form memorandum hereof without the consent of the other.

      H. AMENDMENTS FOR FINANCING. Tenant further agrees to execute any
amendments required by a lender to enable Landlord to obtain financing, so long
as Tenant's rights hereunder are not substantially affected.

      I. ADDITIONAL PARAGRAPHS AND ADDENDA. The Paragraphs and Addenda shown in
Paragraph 1I are added hereto and are included as a part of this lease.

      J. CLAUSES, PLATS AND RIDERS. Clauses, plats and riders, if any, signed by
Landlord and Tenant and endorsed on or affixed to this Lease are a part hereof.

      K. DIMINUTION OF LIGHT, AIR OR VIEW. Tenant covenants and agrees that no
diminution or shutting off of light, air or view by any structure which may be
hereafter erected (whether or not by Landlord) shall in any way affect this
Lease, entitle Tenant to any reduction of rent hereunder or result in any
liability of Landlord to Tenant.

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<PAGE>   18
IN WITNESS WHEREOF, Landlord and Tenant have executed and delivered this Lease
as of the date and year first above written.

LANDLORD:                                      TENANT:
WDCI, INC., A HAWAII CORPORATION               WEBEX COMMUNICATIONS, INC.,
CORPORATION                                     A DELAWARE CORPORATION

BY:                                            BY:
   ------------------------------------            -----------------------------
                                                   CRAIG KLOSTERMAN

TITLE:                                         TITLE: CHIEF FINANCIAL OFFICER
      ---------------------------------              ---------------------------

BY:                                            BY:
   ------------------------------------            -----------------------------

TITLE:                                         TITLE:
      ---------------------------------              ---------------------------

                                       18

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